BILL ANALYSIS Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair 35 (Furutani) Hearing Date: 08/02/2010 Amended: 08/02/2010 Consultant: Dan Troy Policy Vote: ED 5-2 _________________________________________________________________ ____ BILL SUMMARY: AB 35 would require 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. This bill would additionally add career technical education (CTE) as an option for fulfilling one course requirement necessary for high school graduation, and require the Department of Education to report on the number of pupils who took CTE to fulfill this graduation requirement, as specified. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2010-11 2011-12 2012-13 Fund CCCs $330 General SDE report $150 to $200, prior to 2015 General on CTE graduation course requirements _________________________________________________________________ ____ STAFF COMMENTS: This bill meets the criteria for referral to the Suspense File. Current 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. 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. This bill would requires the California Workforce Investment Board and the CCCCO and the BOG to develop a strategic plan, in conjunction with specified stakeholders, 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. The CWIB and the CCCC, in cooperation with Page 2 AB 35 (Furutani) Department of Education, would include recommendations in the strategic plan that address the contribution of career technical education to workforce development. According to the author, this bill is intended 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. The CCCCO would be required to staff the project and costs are estimated to be approximately $330,000 including staff and costs for stakeholder meetings, printing, and other miscellaneous activities. Recent amendments to this bill would incorporate contents from AB 2446 (Furutani), scheduled to be heard by this committee on August 2nd. These provisions would add career technical education as an option for fulfilling one course requirement necessary for high school graduation, and require a report from the Department of Education concerning the impact of that change to law. Staff understands that only the report was intended to be amended into this bill, though the link between the report and this bill is not clear. Costs for the report are estimated by the Department to be approximately $150,000 to $200,000. 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.