BILL NUMBER: SB 974	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Steinberg
   (Coauthor: Senator Hancock)

                        FEBRUARY 8, 2010

   An act to add Section 88560 to the Education Code, relating to
taxation.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 974, as introduced, Steinberg. Income tax: credit: career
pathways investment credit.
   The Personal Income Tax Law and Corporation Tax Law authorize
various credits against the taxes imposed by those laws.
   This bill would find and declare that the deep economic recession
in California requires strategic investments to educate and prepare
the workforce to fuel the next state of economic growth. This bill
would find and declare that if the dropout crisis is left unchecked,
the rate of middle and high school dropouts will increase. This bill
would state the intent of the Legislature to enact legislation to
ensure that the state's tax expenditure investments are rigorously
evaluated and to establish fiscal incentives, such as tax credits,
that encourage California businesses to enter into partnerships with
schools to strengthen education and develop career skills.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 88560 is added to the Education Code, to read:
   88560.  (a) The Legislature finds and declares the following:
   (1) The deep economic recession that has gripped California
requires a timely response and strategic investments to educate and
prepare the workforce that will help fuel the next stage of the state'
s economic growth.
   (2) The swift recovery of the California economy faces an obstacle
in the high numbers of young people dropping out of the state's
middle and high schools. Longitudinal data show that fewer than 70
percent of 9th graders in California graduate from high school in
four years. According to the State Department of Education, some
85,000 middle and high school pupils are abandoning secondary schools
annually.
   (3) If the dropout crisis is left unchecked, demographic trends
suggest that the rate of future dropouts will increase. The Public
Policy Institute of California predicts there will be twice as many
high school dropouts in California in 2025 as there will be jobs to
support them.
   (4) According to a 2007 study by the California Dropout Research
Project, each cohort of dropouts costs California more than $46
billion in total economic losses over the lifetimes of those
dropouts.
   (5) The fastest growing occupations in the coming years are
expected to be those that require scientific, technical, engineering,
or math (STEM) skills, such as jobs in biotechnology, digital media
arts, green technology, or computer-related and health-related
fields.
   (6) A 2006 poll of at-risk California 9th and 10th graders by
Peter D. Hart Research Associates found that six in 10 pupils were
not motivated to succeed in school. Of those pupils, more than 90
percent said they would be more engaged in their education if classes
helped them acquire skills and knowledge relevant to future careers.

   (7) Comprehensive programs that link challenging academics with
demanding career and technical education create engaging pathways to
further education, advanced training, and productive jobs in high
opportunity careers. They keep students on track to a diploma,
postsecondary credentials, and lasting career success.
   (8) New research from the Public Policy Institute of California
suggests that the state's enterprise zone tax credit program has not
significantly increased job creation or the employment of
hard-to-hire individuals, as was intended. Two aspects of the program
that were poorly designed and have produced an especially poor
return on investment, Targeted Employment Areas (TEA) and retroactive
vouchering, should be phased out in favor of fiscal incentives that
enhance workforce development for the jobs of the future and that
have a beneficial impact on high school graduation rates.
   (b) It is the intent of the Legislature to do the following:
   (1) Evaluate the state's tax expenditure investments as rigorously
as it evaluates the state's spending programs.
   (2) Establish fiscal incentives, such as tax credits, that
encourage California businesses and industry to enter into
partnerships with schools that strengthen middle and high school
education statewide. These partnerships will connect students and
teachers to real-world experience that provides sustained exposure to
applied academics, skill development, work-related education, and
potential future employers. This experience will keep students
engaged and on track to graduation, further education, and productive
careers.
   (c) As used in this section, "tax expenditure" means a credit,
deduction, exclusion, exemption, or any other tax benefit as may be
provided for by state law.