BILL ANALYSIS Ó AB 848 Page 1 Date of Hearing: May 18, 2011 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 848 (Campos) - As Amended: May 11, 2011 Policy Committee: Labor and Employment Vote: 6-0 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY This bill requires the Superintendent of Public Instruction (SPI) or the Chancellor of the Community Colleges to require recipients of the state apprenticeship funding for building and trade programs to report annually, prior to receiving reimbursement, information concerning educational outcomes. Specifically, this bill: 1)Requires the programs to report the number and percentages of apprentices who have received postsecondary educational credit (including the amount of credit earned) and the number/percentage of apprentice graduates who have completed a postsecondary degree. 2)Requires the SPI or the Chancellor to determine the format for collection and presentation of this information so as to best convey pupil progress toward degree completion for each participating institution. This measure further requires the information, upon request, to be provided to the Division of Apprenticeship Standards (DAS) in the Department of Industrial Relations (DIR). FISCAL EFFECT 1)GF administrative costs, likely less than $100,000, to SDE and CCCs to report specified information about building and trade apprenticeship programs, as specified. Current law requires SDE to collect specified information from apprenticeship programs and CCCs contribute program information to this report. AB 848 Page 2 2)The 2010 Budget Act allocated $15.7 million GF/98 to the State Department of Education (SDE) apprenticeship programs. The budget further required programs to be reimbursed $5.04 per instructional hour. This allocation includes a 19.8% reduction. 3)The 2010 Budget Act allocated $7.1 million GF/98 to the California Community College (CCC) apprenticeship programs. The budget further required programs to be reimbursed $5.04 per instructional hour. As part of the 2009 budget process, CCCs were given complete discretion over the use of these program funds. Therefore, CCCs are authorized to use this funding for any educational purpose. COMMENTS 1)Background . Apprenticeship programs are offered for a specified length of time, usually three to five years, and include on-the-job training and classroom related and supplemental instruction (RSI). According to DAS, each program operates under apprenticeship training standards agreed to by labor and/or management in accordance with state and federal law. Statute requires the joint apprenticeship committee to determine the standards, with help from DAS. Local education agencies (LEAs) and CCCs partner with apprenticeship program sponsors in sharing the responsibility for RSI development and delivery. According to SDE, it supports 35 regional occupational centers and programs (ROC/P) and LEA adult education programs with over 200 apprenticeship programs supporting over 40,000 registered apprentices. The CCC reports it has approximately 25,000 apprentices enrolled in over 160 apprenticeship programs comprised of a total of 66 trades/crafts titles located on 39 campuses. CCC also states that in many of the RSI apprenticeship programs an apprentice can earn a certificate or degree (Associate of Arts or Associate of Science). All programs offered by LEAs and CCCs are required to be approved by DAS. LEAs and CCCs receive funding based on the actual number of hours in RSI coursework. Each LEA is capped on the number of hours of instruction it can claim for reimbursement. 2)Rationale . Proponents of this measure (State Building and Construction Trades Council) argue the number of credits AB 848 Page 3 received for individuals enrolled in CCC apprenticeship programs varies among districts and between campuses within a district. They contend this bill will identify programs successful in allocating RSI credits to program participants. 3)Existing law requires, pursuant to the annual budget act, the SPI to report to the Department of Finance (DOF) and the Legislature not later than February 1 of each year on the amount of funds expended, and the hours of RSI offered in, the apprenticeship program during the prior FY, as specified. Statute also requires programs, as a condition of receiving funding, to provide the necessary information to the SPI in order to complete the report. Pursuant to the annual budget act, the Chancellor is required to develop criteria for apprenticeship programs and submit that for review along with an annual progress report on program implementation to the Legislative Analyst, the Office of the Secretary for Education, and DOF no later than December 1 of each year. The report is required to include summaries of allocations and expenditures by program and by district, where applicable. 4)Will this report provide information necessary to meet the author's intent ? The author indicates the bill's intent is to know which apprenticeship programs are successful in ensuring students receive a postsecondary degree. However, statue does not require apprentice program graduates to receive an associate degree. While the information is valuable to determine which programs are helping individuals achieve postsecondary success, it may be misleading to the public if a program is not successful in this regard because the program is not required to ensure individuals receive an associate degree. Also, this measure only requires programs that receive RSI funding to report specified information. According to the CCCs, however, there are apprenticeship programs operating who do not receive this funding. Should not the state have information from all programs? The author may wish to consider these issues. Analysis Prepared by : Kimberly Rodriguez / APPR. / (916) 319-2081 AB 848 Page 4