BILL ANALYSIS SENATE COMMITTEE ON EDUCATION Gloria Romero, Chair 2009-2010 Regular Session BILL NO: AB 35 AUTHOR: Furutani AMENDED: June 15, 2010 FISCAL COMM: Yes HEARING DATE: June 23, 2010 URGENCY: No CONSULTANT:Kathleen Chavira SUBJECT : Education and Workforce Development KEY POLICY ISSUE Should the California Workforce Investment Board and the California Community Colleges be required to work together to develop a state strategic workforce development plan? SUMMARY This bill requires the California Workforce Investment Board (CWIB) to assist the Office of the Chancellor of the California Community Colleges (CCCCO) and the Board of Governors (BOG) to develop a strategic plan for connecting education and workforce development in the state. BACKGROUND Existing federal law, the Workforce Investment Act (WIA) of 1998, requires all states to form state workforce investment boards, and for Governors to designate local workforce investment areas and oversee local workforce investment boards. (Public Law 105-220) Existing state law establishes the California Workforce Investment Board (CWIB) and requires the CWIB to assist the Governor with promoting the development, oversight, and continuous development of a well-educated and highly skilled workforce, and also to assist in the development of the State Workforce Investment Plan. (Unemployment Insurance Code 14010) All members of the CWIB are appointed by the Governor with representatives from business, labor, public education, higher education, economic development, youth activities, employment and training, as well as the Legislature. Among its various responsibilities, the CWIB is responsible for coordinating the development of the State Strategic Plan for Title I of the Workforce Investment Act and for its submission to the Governor. AB 35 Page 2 Current law also establishes the California Community Colleges Economic and Workforce Development (EWD) Program as a primary mission of the California Community Colleges. This program is administered through the Community College Chancellor's Office. Current law states that the purpose of the EWD program is to advance California's economic growth and global competitiveness through education, training, and services that contribute to continuous work force improvement, technology, deployment, and business development. The Community Colleges work with employers, advisory committees, and agency partners to identify, on a region-by-region basis, workforce education and training needs, including the needs of small business. (Education Code 88525 and 88550.5) ANALYSIS This bill : 1) Requires the California Workforce Investment Board and the CCCCO and the BOG to develop a strategic plan for connecting education and workforce development in the state as part of the CWIB's next biennial review of California's Strategic Plan for Title I of the Workforce Investment Act of 1998 and the Wagner-Peyser Act. 2) Requires the CWIB and the CCCCO, in cooperation with the California Department of Education (CDE) and representatives from education, business and labor organizations to make specified recommendations in the strategic plan that address the workforce development contributions of academic and career technical education at all levels. 3) Requires the strategic plan to include, but not be limited to, specified elements. 4) Declares the Legislature's intent that the CWIB and CCCCO solicit the input of various specified groups in developing its recommendations. 5) Requires the CWIB and the CCCCO to report to the Governor and Legislature by July 1, 2011, sunsets the reporting provision on January 1, 2015, and requires the report to comply with specified Government Code provisions. 6) Requires the CCCCO to provide the staffing and resources necessary to develop and report the required strategic plan. 7) Expands the responsibilities of the CWIB to include a requirement that it assist the CCCCO in developing a strategic plan for connecting education and workforce development in the state. AB 35 Page 3 STAFF COMMENTS 1) Need for the bill . According to the author, this bill is needed to ensure that there is effective coordination and efficient use of the various resources that fund workforce development programs during a time of limited state revenues. While the CCCCO and the CWIB have produced strategic plans to guide the operation of their respective workforce development programs, and in spite of the fact that individual agency plans call for coordination, the author believes that there has been a lack of coordination among the workforce development partners. Codifying the requirement that these two entities work together to develop a state strategic plan would provide clarifying guidance to all agencies when implementing workforce development programs. Although prior legislation was vetoed by the Governor (who noted that a bill was not necessary to realize coordination with the different education segments), the author claims that since that veto there has been no significant progress in coordination to address the current workforce training needs of California. 2) California's Strategic Plan for Title I of the Workforce Investment Act . The CWIB is responsible for assisting the Governor in performing the duties and responsibilities required by the federal Workforce Investment Act of 1998. Among other things, the Act requires states to submit a strategic plan which is supposed to set the framework for development of a comprehensive workforce investment system linking economic and workforce development. Since the 2002 enactment of the Act, and in response to its various reauthorizations by Congress, the CWIB has periodically reviewed and revised the State strategic plan. It has evolved from a five-year plan, to a revised plan every two years and, most recently, to a strategic plan issued for a one year period from July 1, 2009 through July 30 2010. If it is the desire of the committee to move this bill, staff recommends the bill be amended to replace "biennial" on page 3 line 5 with "revision of" in order to accommodate the fluctuating time period for review of the plan. 3) Prior legislation . SB 365 (Portantino, 2007) would have required the California Postsecondary Education Commission (CPEC), in cooperation with the Labor and Workforce Development Agency, to convene a Task Force on State Workforce Needs. SB 365 was vetoed by the Governor, whose veto message read, in pertinent part: I am supportive of efforts to align state workforce needs with program development at postsecondary education institutions. However, statutory authority is not necessary for the California Postsecondary Education Commission to meet the objective of convening meetings with the relevant entities, and developing recommendations. Therefore, this bill is unnecessary. AB 35 Page 4 SUPPORT California Community College Association of Occupational Education South Bay Association of Chambers of Commerce (SBACC) OPPOSITION None received.