Although many businesses cite the difficulty of finding qualified employees as their single biggest challenge, many throughout Alaska can't find jobs. This labor disconnection not only affects day-to-day business, but also limits Alaska's opportunity for long-term growth.
Governor Palin has signed four bills that provide more support for working Alaskans and strengthen our businesses and communities. The bills increase unemployment benefits, extend the state training program, extend education tax credits to vocational programs and increase funding for vocational education.
Unemployment insurance is a safety net that protects Alaska families when jobs are scarce. By helping keep workers in Alaska, it ensures that businesses have experienced workers available. The maximum unemployment insurance weekly benefit will increase from $248 to $370 beginning Jan. 1. That places Alaska at the midpoint among states, rather than the fourth lowest in the nation. The benefit hadn't been raised since 1997. The legislation also protects the privacy of Alaskans applying for unemployment benefits by ensuring that claim information remains confidential.
The State Training and Employment Program has been extended for two years. Operated by the department of labor, the program has trained more than 24,000 Alaska workers over the last 19 years. About 94 percent of STEP trainees are employed within 12 months. STEP participants earned more than $71 million in Alaska wages in the year following their training. More than 90 percent of STEP participants remain in Alaska.
Businesses now have a strong state financial incentive to support vocational education. Effective Jan. 1, existing state education tax credits for contributions up to $150,000 will be extended to include secondary school vocational programs and state-operated vocational and technical schools. Until now, the credit had only applied to contributions made to colleges and universities. The credit can now be used against state taxes on insurance, corporate income, oil and gas production, oil and gas property, mining license, fisheries business or fishery resource landing.
The allocation to the Technical Vocational Education Account has been increased and the funds can be distributed to a wider range of training facilities.
But we have more work ahead of us.
At over 6 percent our unemployment rate is higher than it should be -- and this hardship is concentrated in certain regions, industries and populations, such as people with disabilities. The Department of Labor will continue to improve our services to prepare unemployed and underemployed workers. We are also working harder to train Alaskans for the high-paying jobs that currently go to nonresidents.
Alaska has grown by developing its natural resources. The decline in our oil production makes it imperative for our state to pursue new and expanded industrial opportunities. The AGIA gasline license authorized by the Legislature creates a platform for long-term growth and prosperity. Now is the time to plant and carefully tend, if we are to harvest a future of good jobs for Alaska's sons and daughters.
Alaskans should have the right to get good jobs -- not by heading south, but in our hometowns in our home state. We should not have to abandon family and heritage, and the land we love, to earn a future.
Click Bishop, a life-long Alaskan, serves as commissioner of the Alaska Department of Labor and Workforce Development.
By CLICK BISHOP