BILL ANALYSIS Ó
AJR 13
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ASSEMBLY THIRD READING
AJR 13 (Campos)
As Amended April 3, 2013
Majority vote
ECONOMIC DEVELOPMENT 8-0
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|Ayes:|Medina, Mansoor, Daly, | |
| |Fong, Fox, Melendez, V. | |
| |Manuel Pérez, Brown | |
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SUMMARY : Memorializes the Legislature's support for
Congressional action to reverse the suspension of new student
enrollments in the Job Corps Program, to prevent any limits to
student enrollment until other cost-saving measures have been
exhausted, and to maintain the full range of educational and
employment services provided by the Job Corps. Specifically,
this resolution :
1)Makes the following legislative findings:
a) California serves 5,373 disadvantaged youth between 16
and 24 years of age through its seven Jobs Corps centers,
making California's program the largest in the country.
Combined economic activity stimulated by the Job Corps
centers in California is $243,726,519 and 2,971 local jobs
have been created.
b) Job Corps centers are a vital component of California's
workforce development system by providing high school
diplomas, career technical education, and related social
skills. Following their time in the Jobs Corps, graduates
are ready to obtain and hold a job, enroll in advanced
training, attend college, or enter the Armed Forces.
c) The United States Department of Labor's (DOL) decision
appears to be inequitably balancing a budget shortfall on
the backs of the disadvantaged youth it is entrusted to
serve when other alternatives are available for closing the
shortfall.
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2)Resolves that the Assembly and the Senate of the State of
California urge United States congressional action to reverse
the suspension of new student enrollments in the Job Corps, to
prevent any limits to student enrollment until other
cost-saving measures have been exhausted, and to maintain the
full range of educational and employment services provided by
the Job Corps.
COMMENTS : This resolution seeks state legislative support for
federal advocacy to reverse the suspension of new student
enrollments in the federal Job Corps.
Beginning in 2011, Job Corps experienced severe financial
difficulties due to a poorly planned growth in expenditures and,
primarily, institutional weaknesses in Job Corps' contracting
procedures. At issue is whether it is appropriate for at-risk
youth to suffer for administrative failures. AJR 13 proposes
the Legislature advocate for the immediate training needs of
potential Jobs Corps clients.
Federal Job Corps Program : The Job Corps is a $1.7 billion
residential training program for at-risk youth, ages 16-24.
Administered through DOL, the program provides education,
training, and support services (including housing) for
approximately 60,000 underserved youths. The Job Corps has
traditionally been a successful program; in 2011, Job Corps
helped 58.4% of its students find a job and 15% enter college.
Of the 125 Job Corps centers nationwide, seven are in California
located in the cities of San Francisco, San Jose, Sacramento,
Long Beach, Los Angeles, San Bernardino, and San Diego. The
California centers can serve a total of 3,382 under-privileged
youth when at full capacity.
On January 28, 2013, Job Corps instructed all centers to
temporarily suspend all enrollments, except for runaway,
homeless, and foster care candidates, due to a budgetary
shortfall of $61 million. It is estimated that the impact of
the freeze is dropping enrollment by an average of 1,000 youth
per week nationwide. The suspension of enrollments was
instituted as a cost-savings measure and is unrelated to
sequestration.
Causes of Job Corps Enrollment Suspension : While poor planning
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for program growth in 2011 caused many problems, the primary
fiscal issues came from the Job Corps' lack of contract
oversight. Job Corps operates largely through
cost-reimbursement contracts, and these require constant
oversight in order to manage or predict the costs, while
providing little protection from cost over-runs. In the most
recent quarters additional fiscal oversight has fixed most of
the issues. The DOL has stated, however, that the savings found
through administrative fixes cannot technically be immediately
applied to the reopening of Job Corps enrollment because of the
continued unpredictability of contractor cost overruns.
Recent audits by the Office of Inspector General (OIG), an
independent entity within the DOL, found numerous areas of
concern with the 97 privately-contracted Job Corps centers. The
majority of these problems were the result of a deficiency in
program monitoring tools and control protocols regarding
contractual spending trends. As suggested by recent audits, the
Job Corps has instituted a number of changes to increase savings
and fiscal oversight. This includes the addition of financial
officers to provide oversight of Job Corps procurement, strict
and frequent financial reporting, a reduction in student
stipends, and renegotiations with current contractors.
Investigation by the OIG is still ongoing and is scheduled to be
completed in May 2013.
Current Status of the Job Corps Enrollment Suspension : As of
March 26, 2013, new enrollment into the Job Corps was still
suspended. Assembly Jobs, Economic Development, and the Economy
Committee staff contacted the DOL and was informed that the
suspension is tentatively scheduled to continue through June 30,
2013. According to the National Job Corps, if the suspension
continues as planned, as many as 30,000 youth nationwide will be
denied access to critical education and training and an
estimated 10,000 staff jobs will be lost.
Analysis Prepared by : Toni Symonds and Zachary Hutsell / J.,
E.D. & E. / (916) 319-2090
FN: 0000129
AJR 13
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