BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Kevin de León, Chair SB 1022 (Huff) - Public Postsecondary Education: Labor Market Information Amended: April 22, 2014 Policy Vote: Education 6-0 Urgency: No Mandate: No Hearing Date: May 23, 2014 Consultant: Jacqueline Wong-Hernandez SUSPENSE FILE. Bill Summary: SB 1022 requires the California State University (CSU), and requests the University of California (UC), to provide labor market prematriculation and outcome information on their graduates, as specified, and to make this information publicly available on the internet websites of the respective segments by June 1, 2016. This bill further requires the information to be updated annually by June 1 of each year. Fiscal Impact (as approved on May 23, 2014): CSU and UC: Minor ongoing workload increase for the CSU and the UC to collect, publish, and annually update the required data. Employment Development Department (EDD): Potential workload to amend existing contracts with the UC and CSU would be minor and absorbable to the department. Background: Existing law requires the EDD director to permit the use of any information in his or her possession to the extent necessary for any of several specified purposes, including: To enable the Chancellor of the California Community Colleges (CCC) to obtain quarterly wage data, on students who have attended one or more community colleges, to assess the impact of education on the employment and earnings of students, to conduct the annual evaluation of district-level and individual college performance in achieving priority educational outcomes, and to submit required reports to the Legislature and the Governor. To enable the California Department of Education, the UC, the CSU, and the Chancellor of the CCC, pursuant to SB 1022 (Huff) Page 1 specified federal law requirements to obtain quarterly wage data, commencing July 1, 2010, on students who have attended their respective systems to assess the impact of education on the employment and earnings of those students, to conduct the annual analysis of district-level and individual district or postsecondary education system performance in achieving priority educational outcomes, and to submit the required reports to the Legislature and the Governor. This information is to be provided to the extent permitted by federal statutes and regulations. (Unemployment Insurance Code 1095) Proposed Law: This bill requires the CSU, and requests the UC, to publicly provide labor market prematriculation and outcome information relating to their graduates. Specifically, the information must include, but not be limited to, salary information by industry. The information provided must use data that includes, but is not limited to, information provided by the EDD and the segments' own databases, and must meet all the following requirements: a) be presented in terms of easily understood labor market measures; b) be aggregated to the system-wide level and by particular areas of study; and, c) provide data relating to graduates one or two years and five years after graduation. This bill further requires that the information be made publicly available on the respective segments' internet websites no later than June 1, 2016, and updated annually thereafter by June 1. Staff Comments: The UC and CSU both have the authority to implement the provisions of this bill without legislation. The UC has indicated that is does not expect to incur significant additional workload or costs to implement the bill. The CSU has indicated that it intends to collect and publish online the labor market information required in this bill, but that to do so by June 1, 2016 would require an additional data staff person dedicated to completing that work. Ongoing costs to update data would be minor and absorbable. This bill specifically requires that the segments include data provided by the EDD, which currently has agreements in place SB 1022 (Huff) Page 2 with both the CSU and UC to provide wage data on a reimbursable basis. This bill does not appear to impact the data already being provided to the segments or manner in which it is provided. The EDD has indicated, however, that the contracts may require amendments to allow the CSU and UC to post EDD data on their websites. Committee amendments remove the original June 1, 2015 deadline.