AWIB pushes state apprenticeship agency recognition to expand Alaska apprenticeships

Juneau — The Alaska Workforce Investment Board told the Senate Labor and Commerce Committee on Jan. 29 that apprenticeships are growing in the state and that recognition as a State Apprenticeship Agency (SAA) could ease program expansion and local responsiveness.

"We believe that [transitioning to an SAA] can strengthen partnerships, create high quality apprenticeship programs, and ensure readiness to meet current and future workforce needs," AWIB Director Dirk Craft said, summarizing the board's recommendation after a multi‑state review.

AWIB reported current apprenticeship metrics and grant activity. Director Craft said there were 2,292 apprentices and 418 participating employers in FY25, and that Alaska ranks seventh in active apprentices as a share of its labor force (0.6% vs. a national average of about 0.31%). The board also highlighted that in FY24 there were 361 completer apprentices with an average wage of $36.83 an hour.

Federal grants and state support: AWIB outlined federal State Apprenticeship Expansion and equity grants the board administers and announced a $5.2 million competitive award the board and the Department of Education and Early Development will use to pilot teacher apprenticeships, with Bristol Bay Career Regional and Technical Education Consortium serving as an initial grantee. Paloma Harbor, director of the Division of Employment and Training Services, told the committee the department provided roughly $600,000 in federal support to 283 apprentices last fiscal year and $1.9 million in STEP funds to 360 customers.

Why seek SAA recognition: AWIB said Alaska's geography and dispersed population make some federally prescribed approaches hard to apply and slow down businesses that need to move quickly. "Greater autonomy and control would allow us to better tailor apprenticeship programs for Alaska's diverse industries and communities," Craft said, noting other states have completed the transition and provided models.

Process and staffing questions: Craft told the committee the transition would require legislation, close coordination with the U.S. Department of Labor Office of Apprenticeship and a regulatory framework that complies with federal requirements (the board cited 29 CFR part 2930). He said the board has tentatively estimated an initial SAA staff of about three people but emphasized that final staffing depends on how responsibilities are allocated and whether some grant administration remains with AWIB or the department.

Senators asked about employer costs, youth pathways and board membership. AWIB said apprenticeship is a paid, employer‑led model that reduces turnover and training costs over time, and that AWIB and partners are working to expand pre‑apprenticeship and youth opportunities.

Ending: AWIB representatives said apprenticeship expansion — including teacher apprenticeships and non‑traditional sectors such as maritime and tourism — is a priority and recommended further study and stakeholder engagement before any formal legislative proposal.