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