BILL ANALYSIS AB 35 Page 1 Date of Hearing: January 21, 2010 ASSEMBLY COMMITTEE ON APPROPRIATIONS Kevin De Leon, Chair AB 35 (Furutani) - As Amended: January 4, 2010 Policy Committee: Higher EducationVote:7-0 JEDE 7-0 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY This bill requires the California Postsecondary Education Commission (CPEC) to develop a strategic plan for connecting education and workforce development and to report its recommendations by July 1, 2011. Specifically, this bill: 1)Requires CPEC to work with the State Department of Education (SDE), the Workforce Investment Board (WIB) and representatives from education, business and labor organizations to develop a strategic plan regarding the contribution of academic and career technical education to workforce development. 2)Requires the strategic plan to address the current state collection of data on future workforce needs and appropriate measures for improving data collection, the alignment of workforce needs with future postsecondary education programs and capacity, strategies for fostering long-term improvements in workers' skills and knowledge, and methods for closing the skills gap and strengthening the nexus between education and the workforce. FISCAL EFFECT One-time General Fund cost of about $125,000 for CPEC for a consulting contract and for coordinating preparation of the strategic plan. Costs for SDE and WIB to participate in this process would be absorbable. AB 35 Page 2 COMMENTS 1)Purpose . The author argues that more can be done to strengthen coordination between the community colleges, adult education, high school career technical programs, and WIBs. He asserts that, while many agencies are involved in workforce development planning, these agencies fail to work cohesively, resulting in a lack of statewide direction and coordination on workforce development. The author believes that requiring lead agencies involved in education to work together on a strategic plan will "begin the conversation and reevaluation of the state's method of educating and training the majority of the workforce." 2)CPEC Resources Limited . While supportive of the policy goal of this bill, CPEC is unable to absorb the additional cost of preparing a strategic plan. The commission's General Fund budget has been flat or declining over the last several years, and is currently only about 50% of its 2000-01 level. Due to concerns about CPECs limited resources and overly broad mission, SB 316 (Scott)/Chapter 514 of 2008, stated legislative intent with respect to the commission's workload priorities and deleted several of the commission's statutory reporting requirements. 3)Prior Legislation . In 2007, AB 365 (Portantino), which required CPEC to convene a task force regarding state workforce needs, was vetoed. The governor argued that such statutory authority was not necessary in order for CPEC to meet the objectives of the bill. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081