North Dakota Legislative Workforce Committee Minutes from Fargo on May 26

NORTH DAKOTA LEGISLATIVE MANAGEMENT
Minutes of the
WORKFORCE COMMITTEE
Wednesday, May 26, 2010
Room 370, Richard H. Barry Hall, North Dakota State University
Fargo, North Dakota
Senator Tony S. Grindberg, Chairman, called the
meeting to order at 9:00 a.m.
Members present: Senators Tony S. Grindberg,
Tim Flakoll, Ray Holmberg, Karen K. Krebsbach,
Dave Nething, Larry J. Robinson, Mac Schneider;
Representatives Donald L. Clark, Eliot Glassheim,
Nancy Johnson, Lee Kaldor, Lisa Meier, Corey Mock,
Lee Myxter, Michael R. Nathe, Ken Svedjan, Clark
Williams
Members absent: Senators Tom Seymour,
Ryan M. Taylor
Others present: Representative Al Carlson,
member of the Legislative Management, was also in
attendance.
See Appendix A for additional persons present.
It was moved by Senator Nething, seconded by
Senator Holmberg, and carried on a voice vote
that the minutes of the March 30, 2010, and
March 31, 2010, meetings be approved as
distributed.
Chairman Grindberg welcomed the committee
members to the North Dakota State University
campus. He reviewed the Workforce Committee's
study charges and reviewed the tentative meeting
schedule for the remainder of the interim. He said the
committee will tentatively plan to meet in Bismarck on
June 9, 2010, to participate in the North Dakota
University System's interim study of the TrainND
system, will meet in July in Bismarck, and will plan on
holding its final meeting in September in Grand Forks.
He said the July meeting will be an opportunity for
members to request bill drafts and at the September
meeting the committee will finalize any bill drafts
requested.
Chairman Grindberg said he recently returned from
the Council of State Governments meeting in New
York, which he attended with Senator Holmberg. He
said he attended meetings regarding the state of the
economy, at which presenters spoke highly of North
Dakota. He said the United States Chamber of
Commerce recently released a document entitled
Enterprising States Creating Jobs, Economic
Development, and Prosperity in Challenging Times.
He said this document shows North Dakota in a
positive light.
Chairman Grindberg called on Mr. Craig Whitney,
President and CEO, Chamber of Commerce of Fargo
Moorhead, Moorhead, Minnesota, for comments
regarding the committee's studies. Mr. Whitney said
he recently began this position, having moved from
the Phoenix area. He stated the health of the
Chamber of Commerce of Fargo Moorhead is better
than that of the Phoenix area chamber of commerce.
He said he is looking forward to the challenges of this
new position, and upcoming chamber events include a
health care forum, at which issues related to federal
health care reform legislation will be addressed.
Chairman Grindberg called on Mr. Eric Johnson,
CEO, and Mr. David Bartholomay, Vice President,
Avenet Web Solutions, Minneapolis, Minnesota, for a
presentation regarding the company's eFolio webbased
portfolio management system. They made a
computer presentation (Appendix B).
In response to a question from Representative
Nathe, Mr. Johnson said in the case of the services
provided by Avenet for Minnesota students through
Avenet's partnership with the Minnesota State
Colleges and University System, Avenet does not
directly assist the students in preparing their eFolios.
However, he said, Avenet could provide this
assistance if that is what the contract with the client
provided.
Dr. John Richman, President, State College of
Science, Wahpeton, stated his institution uses an
Avenet product for an accreditation system.
In response to a question from Senator Flakoll,
Mr. Johnson said if a student is under age 18, access
to that student's site would require a password. He
said in the course of the online setup, data is
requested regarding the user's age. He said to the
extent this system is used in schools, the faculty
provides a check and balance to ensure the
appropriate content of the material.
In response to a question from Senator Flakoll,
Mr. Johnson said there are Google analytics built into
the eFolio program.
In response to a question from Senator Nething,
Mr. Johnson said the eFolio services are only effective
to the extent that students and jobseekers utilize the
program. He said Avenet's eFolio product is the first
and perhaps only product that has moved from
education to the workforce. He said within the
education arena Avenet is in the top seven service
providers. He said he envisions the eFolio services
as a lifelong tool that continues to grow with the
student following graduation and entrance to the
workforce.
In response to a question from Senator Schneider,
Mr. Johnson said the Avenet eFolio system is
complementary to Linkedin and Facebook. He said it
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can be used in conjunction with other services offered
through higher education, certification, and
competencies.
In response to a question from Representative
Mock, Dr. Richman said the State College of Science
uses the eFolio system for accreditation. He said it is
his understanding that one of the agricultural
programs at the University of North Dakota uses an
eFolio program, which is not provided through Avenet.
Additionally, he said, the State College of Science is
just now expanding its eFolio services to include
broader student use.
Senator Grindberg said he sees the potential value
in having all North Dakota higher education graduates
participate in an eFolio program. He said the data
relating to graduates is potentially valuable to help the
state discover education and workforce gaps.
Mr. Johnson said an additional value to an eFolio
product is that the state can use it to market job
opportunities to North Dakota graduates who have
since left the state.
In response to a question from Senator Nething,
Mr. Johnson said there are a variety of models the
state could use in implementing an eFolio system
provided by Avenet. He said for example in
Minnesota the eFolio product is education-based and
is just now spreading to the workforce. However, he
said, in Pennsylvania the Avenet product is workforcebased,
and some universities are just beginning to
use the program. He said if North Dakota were to
utilize the eFolio program by Avenet, the program
could be fully utilized in both education and workforce
due in large part to the strong connectivity in North
Dakota between workforce and education.
Mr. Johnson said if a state such as North Dakota
were to contract with Avenet to use its product, the
investment at the low end might cost several hundred
thousand dollars. However, he said, there are several
variables in the spectrum of services that might be
offered through the eFolio product such as customer
service and whether or how the eFolio product is
integrated with other systems. He said all of these
variables would have an impact on the cost of
implementing the product.
In response to a question from Senator Flakoll
regarding the approximate cost per student to use a
product such as Avenet's eFolio, Mr. Johnson said it
would be very tough to answer that question because
the number of users may vary at any given time. He
said although the Avenet eFolio service could be
calculated on a per person basis, it is important to
realize there would be some one-time costs and some
ongoing costs that would make this calculation
difficult.
Chairman Grindberg called on Dr. Marsha
Krotseng, Vice Chancellor for Strategic Planning,
North Dakota University System, for comments
regarding the Avenet eFolio services. She distributed
a document (Appendix C) regarding eFolio services
used by the University System.
In response to a question from Representative
Svedjan, Dr. Krotseng said if an eFolio product was
utilized in North Dakota, it may be possible to link the
program with the American College Test WorkKeys
program.
Dr. Krotseng said she is aware of at least five
institutions of higher education in the state which
utilize an eFolio system. Mr. Randall Thursby, Chief
Information Officer, North Dakota University System,
Fargo, stated to his knowledge none of the campuses
in North Dakota cooperate with each other in the
utilization of an eFolio system.
Senator Nething raised the question of which North
Dakota stakeholders would be most appropriate to
lead a group in establishing a matrix of current eFolio
services used in the state. Senator Grindberg said it
may be appropriate to request the North Dakota
Workforce Development Council to take the lead in
this project.
In response to a question from Senator Flakoll
regarding the relationship between an eFolio portfolio
management system and the longitudinal data
system, Dr. Krotseng said it is possible an eFolio
product could supplement the longitudinal data
system. Mr. Thursby said he envisions an eFolio
system complementing the state longitudinal data
system. He said the longitudinal data collected
reflects what has already happened, whereas an
eFolio program reflects real-time data.
Dr. Krotseng informed committee members that
they would be receiving an invitation to participate in
an upcoming workforce training forum that will be
conducted by the State Board of Higher Education as
part of the study on the status of the training activities
provided by the four institutions of higher education
assigned primary responsibility for workforce training
in the state. She said the study is required under
Section 2 of 2009 Senate Bill No. 2019. She said the
members of the Workforce Committee will be
representing the Legislative Assembly as required
under the study charge. She said as part of the
workforce training forum, participants will be
requested to complete a short online survey.
Dr. Krotseng said it has been approximately
10 years since the workforce training system was
created, and it seems appropriate to evaluate the
system at this time. She said the information and
valuable input that will be gathered at the workforce
training forum will be used as a stepping stone to
move forward and improve the system.
Dr. Krotseng commented regarding issues relating
to resident and nonresident students. She distributed
the May 2010 Current Issues in Higher Education
(Appendix D). She said this document addresses the
benefits of nonresident students to the state and to
the University System.
In response to a question from Representative
Glassheim, Dr. Krotseng said that as the longitudinal
data system is implemented, there should be more
data available regarding retention of out-of-state
students following graduation. She said she is not
Workforce 3 May 26, 2010
certain what the residency requirements are for
foreign and other out-of-state students but will provide
this data at a future meeting.
In response to a question from Senator Schneider
regarding the number of foreign students in the state
and data regarding retention, Dr. Krotseng said she
will provide this data to the committee members at a
future meeting. Senator Flakoll said he believes there
is approximately an 18 percent retention rate of
foreign students following graduation.
In response to a question from Representative
Nathe regarding the number of nonresident students
versus the number of resident students who receive
tuition waivers, Dr. Krotseng said she will check and
see if this data is available.
Chairman Grindberg called on Mr. Jim Hirsch,
Director, Division of Workforce Development,
Department of Commerce, for a computer
presentation (Appendix E) regarding an update on the
activities of the North Dakota Workforce Development
Council. Additionally, Mr. Hirsch's written testimony is
attached as Appendix F.
In response to a question from Senator Flakoll
regarding what steps are being taken to provide
students with career information under North Dakota
Century Code Section 54-60-18--the career specialist
initiative, Mr. Hirsch said information is being provided
regarding which jobs are open and pay ranges of
different jobs, as well as the educational requirements
for these jobs. He said the Department of Commerce
website serves as a clearinghouse to link students to
relevant information, such as directing students to the
websites of our community colleges.
In response to a question from Representative
Kaldor, Mr. Hirsch said the data regarding net
workforce migration is based on United States Census
Bureau data.
Senator Nething said the legislative opportunities
Mr. Hirsch raises relating to positively impacting the
talent pipeline in North Dakota seem very valuable.
He said it seems important for the North Dakota
Workforce Development Council to have a plan to
introduce legislation to further these opportunities.
Chairman Grindberg called on Ms. Maren Daley,
Executive Director, Job Service North Dakota, for
comments regarding the Workforce 20/20 program.
Ms. Daley provided a written handout (Appendix G).
She said during the 2011 legislative session, Job
Service North Dakota will seek to change the current
Workforce 20/20 requirement that requires that
50 percent of the Workforce 20/20 funding must be
used for projects for new or expanding businesses in
North Dakota.
Ms. Daley said as of this date, five
Workforce 20/20 applications have been declined or
put on hold because they did not provide for new or
expanding businesses.
In response to a question from Representative
Kaldor regarding how Job Service North Dakota
tracks distribution of Workforce 20/20 funds as it
relates to new or expanding businesses, Ms. Daley
said Job Service North Dakota tracks this data with
every application. She said there are some
challenges in tracking this data, such as the situation
in which an application is approved but then not used.
She said Job Service North Dakota tries to reasonably
track this data and to comply with the funding
requirements.
Ms. Daley said proposed legislative changes for
2011 will seek to provide a more workable framework
that continues to recognize priorities but also makes
funding available as appropriate.
Representative Glassheim questioned whether it
might be possible to deal with the Workforce 20/20
issues before the end of the current biennium.
Ms. Daley said she seeks the guidance of the
Legislative Council and the Legislative Assembly as it
relates to legislative intent of the Workforce 20/20
funding provision.
Representative Svedjan questioned whether there
is anything the Legislative Assembly can do to
address Workforce 20/20 funding issues. He said he
views the holdup in projects as being an unintended
consequence of the legislative funding language.
Senator Grindberg said it might be helpful for Job
Service North Dakota to request an Attorney
General's opinion regarding the funding. Additionally,
he said, it is possible that by January 2011, the
economic conditions in the state may have changed,
and there may be no issues relating to the
Workforce 20/20 funding.
Senator Nething said by January 2011 the
Legislative Assembly and Job Service North Dakota
should have a better idea of the state of the situation
relating to Workforce 20/20 funding. He said at that
point, if necessary, emergency legislation can be
passed to adjust the issue before the end of the
biennium.
Chairman Grindberg called on committee counsel
to present the results of the survey of centers of
excellence private sector partners. Committee
counsel said the centers of excellence were contacted
via e-mail and requested to forward the online survey
link to each of the center's private sector partners.
She said as of this date, most of the centers had
complied with this request; however, survey
responses are still trickling in. She said the online
survey will be kept open to give the private sector
partners an opportunity to complete the survey. She
distributed a copy of the survey response data
(Appendix H) that has been collected.
In response to a question from Senator Schneider,
committee counsel said she can try to gather
information to provide at a future meeting regarding
how many private sector partners participate in the
centers of excellence program. In response to a
question from Representative Svedjan regarding
some of the comments provided in the survey,
committee counsel said the survey responses were
anonymous, and unless a private sector participant
voluntarily identified himself or herself, we are not able
Workforce 4 May 26, 2010
to identify who made which comments or which
survey responses.
Chairman Grindberg called on Mr. Shane C.
Goettle, Commissioner, Department of Commerce,
regarding the North Dakota Economic Development
Foundation's strategic plan for economic development
and related accountability standards, measurements,
and benchmarks to evaluate the Department of
Commerce's effectiveness of implementing the
strategic plan. Mr. Goettle's written testimony is
attached as Appendix I.
Mr. Goettle said the North Dakota economic
development performance measures for 2010 through
2020 were approved by the North Dakota Economic
Development Foundation on May 6, 2010.
In response to a question from Senator Holmberg,
Mr. Goettle said the performance measures will be
reevaluated annually and adjustments will be made
accordingly.
In response to a question from Senator Holmberg
regarding goal No. 3--to accelerate innovation and
entrepreneurship in targeted industries and emerging
technologies, Mr. Goettle said in tracking the
reportable data, there are several variables related to
intellectual research which will need to be finalized.
In response to a question from Representative
Meier, Mr. Goettle said as it relates to goal
No. 6--enhancing North Dakota's image, he is not
certain of the exact amount of money spent to
advertise North Dakota; however, as currency values
have changed to make North Dakota a favorable
destination for Canadians, more advertising money
has been shifted to target Canadians.
In response to a question from Senator Krebsbach
regarding goal No. 1--creating, attracting, and
retaining quality jobs in the workforce in targeted
industries and high-demand occupations, Mr. Goettle
said he is not certain what the current population data
is relating to the number of births versus the number
of deaths. He said he can get this information and
provide it at a future meeting.
Chairman Grindberg called on Mr. Goettle and
Mr. Thomas P. Miller and Mr. Jim Wheeler, Thomas P.
Miller and Associates, Indianapolis, Indiana, to
comment regarding the Department of Commerce and
Centers of Excellence Commission best practices
review of the centers of excellence program.
Mr. Goettle distributed the Centers of Excellence
Annual Report for 2009, a copy of which is on file in
the Legislative Council office.
Mr. Miller and Mr. Wheeler made a computer
presentation (Appendix J) regarding the centers of
excellence best practices review that will be
conducted. They said the centers of excellence best
practices review should be completed and prepared
for presentation to the committee at its upcoming July
meeting.
Chairman Grindberg called on Mr. Mark Nisbet,
Chairman, Centers of Excellence Commission, Fargo,
to introduce Mr. G. Michael Alder, Chairman, National
Centers of Excellence, Birmingham, Alabama. He
said Mr. Alder will be a presenter at tomorrow's
Centers of Excellence Summit.
Mr. Alder made a computer presentation
(Appendix K). He said he commends the Legislative
Assembly for its vision in investing in the centers of
excellence program. He said when the committee
receives the centers of excellence best practices
review report from Thomas P. Miller and Associates,
he encourages the committee not to get too
concerned with fitting North Dakota's centers of
excellence program into a mold and attempting to
micromanage the program. He said a centers of
excellence program such as North Dakota's needs to
be given time to mature; therefore, he encourages the
Legislative Assembly to be patient.
Mr. Alder said the North Dakota centers of
excellence program seems to be making good
headway, as it is still a very young program. He said
it is very important in looking at centers of excellence
programs to realize that most states have centers of
excellence programs that relate to economic
development not research. He said there is no
problem with these programs focusing on economic
development, it is just that all parties involved need to
recognize the focus, and it is helpful to clarify this
focus.
In response to a question from Senator Holmberg,
Mr. Alder said it is a reality that in a centers of
excellence program failure comes, and it comes quite
often. He said a successful centers of excellence
program needs to be transparent. For example, he
said, in Pennsylvania the citizens of the state
understand the program, and they therefore accept
the fact that failure will occur.
In response to a question from Representative
Johnson regarding federal and state technology
partnership program funds (FAST grants), Mr. Alder
said the FAST grants will offer states matching funds.
He said the program will offer a state/federal
partnership under which federal money will get the
benefit of state oversight, and the federal money will
be used to help resource-constrained states.
In response to a question from Senator Nething
regarding possible tax benefits of centers of
excellence, Mr. Alder said he does not believe North
Dakota tracks tax consequences of its centers of
excellence program, but again he reminded the
committee to give young centers of excellence time to
mature.
In response to a question from Representative
Glassheim, Mr. Alder said the best practices review
being performed by Thomas P. Miller and Associates
could include return on investment statistics. He said
it is his belief centers of excellence are not corporate
welfare but are instead investments in research and
development.
Representative Kaldor said some skeptics believe
that the private sector should be responsible without
using state funds. He said he seeks information to
respond to these skeptics. Mr. Alder said centers of
excellence programs are used as a gap closer. He
Workforce 5 May 26, 2010
said the programs help companies take a product of
research to the marketplace.
In response to a question from Senator Robinson,
Mr. Alder said approximately 44 states have centers
of excellence programs. However, he said, not all
states identify their programs as centers of excellence
programs. He said each of these programs is similar
in that it is a technology deployment program. He
said the committee members may be interested in
reviewing the data available at his website--
www.nationalcoe.org.
Senator Robinson said he thinks North Dakota
centers of excellence have done a good job in job
collection data and in keeping the Legislative
Assembly informed and educated. He said he thinks
it would be very helpful for legislators to actually see
each of the centers of excellence, and perhaps this
could be accomplished by interim committees
conducting meetings at the centers across the state.
Mr. Alder said he agrees with Senator Robinson
that it is important for legislators to actually see the
centers and how they are functioning. He said it might
be realistic to have legislators review one center per
year.
Chairman Grindberg called on Dr. Bill Krivarchka,
Director, Eastern North Dakota Area Health Education
Center, Mayville, and Ms. Mary Amundson, North
Dakota Area Health Education Center, University of
North Dakota School of Medicine and Health
Sciences, Grand Forks, for comments regarding the
status of the workforce activities of the North Dakota
area health education centers. They distributed
written testimony (Appendix L) and written material,
which is on file in the Legislative Council office.
Dr. Krivarchka said that health education centers
are not new, and North Dakota is the 49th state to
implement area health education centers. He said the
Eastern North Dakota Area Health Education Center,
located in Mayville, was the first area health education
center in North Dakota and was established
15 months ago.
Dr. Krivarchka said the primary purpose of the area
health education centers is to get health care services
to rural North Dakota. He said once medical providers
are in a rural community, the medical providers
become a part of the community.
Dr. Krivarchka said some of the area health
education center activities include kindergarten
through grade 12 students participating and learning
about career opportunities in health care fields.
Additionally, he said, the area health education
centers assist health care profession students to
locate in rural communities. For example, he said,
assistance is provided in helping nursing students do
rotations in rural communities.
In response to a question from Senator Nething
regarding what the Legislative Assembly is being
asked to do to assist the North Dakota area health
education centers, Dr. Krivarchka said eventually the
program will need state funding. He said the program
costs $850,000 per year in matching funds. He said
at this point in establishing a program in the state, he
has been in contact with state agencies to help secure
this funding.
In response to a question from Representative
Kaldor, Ms. Amundson said it is her hope that the
area health education centers can work with rural
communities to help high school graduates be betterprepared
to enter health care fields. She said it is a
tough challenge for North Dakota to essentially grow
its own health care professionals, and this can in part
be accomplished by planting the seed in the minds of
kindergarten through grade 12 students.
In response to a question from Senator Robinson,
Dr. Krivarchka said rural communities are going to
have to invest in helping medical providers, such as
dentists, start up rural practices.
No further work remaining, Chairman Grindberg
adjourned the committee meeting at 4:15 p.m.
___________________________________________
Jennifer S. N. Clark
Committee Counsel
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