BILL ANALYSIS Ó SB 1028 Page 1 SENATE THIRD READING SB 1028 (Jackson) As Amended August 22, 2014 Majority vote SENATE VOTE :28-9 HIGHER EDUCATION 13-0 APPROPRIATIONS 13-3 ----------------------------------------------------------------- |Ayes:|Williams, Chávez, Bloom, |Ayes:|Gatto, Bocanegra, | | |Fong, Fox, Jones-Sawyer, | |Bradford, | | |Levine, Linder, Medina, | |Ian Calderon, Campos, | | |Olsen, Quirk-Silva, | |Eggman, Gomez, Holden, | | |Weber, Wilk | |Linder, Pan, Quirk, | | | | |Ridley-Thomas, Weber | |-----+--------------------------+-----+--------------------------| | | |Nays:|Donnelly, Jones, Wagner | | | | | | ----------------------------------------------------------------- SUMMARY : Requires special consideration for Cal Grant C awards, administered by the California Student Aid Commission (CSAC), to be provided to specified socially or economically disadvantaged students. Specifically, this bill : 1)Requires special consideration be given to the social and economic situations of students applying for Cal Grant C awards, giving additional weight to disadvantaged applicants, applicants who face economic hardship, and applicants who face particular barriers to employment, with criteria including all of the following: a) Family income and household size; b) Student or parent's household status, including whether the student is a single parent or the child of a single parent; and c) The employment status of the applicant and whether the applicant is unemployed, giving greater weight to the long-term unemployed. 2)Provides that Cal Grant C awards may be used for, in additional to training and equipment costs, living expenses. SB 1028 Page 2 3)Requires CSAC to, when identifying areas of training where Cal Grant C awards may be used, consult with the Economic and Workforce Development Division of the California Community Colleges Chancellor's Office (CCC EWD), the California Workforce Investment Board (CWIB), and to the extent feasible, representatives of leading competitive and emerging industry clusters, workforce professionals, and career technical educators to determine which occupational training programs and industry clusters should be prioritized. 4)Requires areas of occupational and technical training to be updated by January 1, 2016. 5)Clarifies the job quality criteria for Cal Grant C award prioritization to include jobs that are a part of a well-articulated career pathway to a job providing economic security, among other clarifying changes; and requires programs to meet, at least, either the aforementioned criteria or high salary and wage projection criteria. 6)Requires CSAC to consult with the Employment Development Department (EDD), CCC EWD, and CWIB to publicize the existence of the Cal Grant C award program and to make students receiving awards aware of job search and placement services available through EDD and local workforce investment boards. FISCAL EFFECT : According to the Assembly Appropriations Committee, General Fund costs to CSAC of around $80,000 for one staff to oversee program modifications and coordination with EDD, CCC [EWD], and WIB on outreach to targeted cohorts. Costs to the other entities should be minor and absorbable. COMMENTS : According to the author, the aftermath of the most recent recession is notable for the severity of long-term unemployment levels. In 2010, approximately 45% of the unemployed in the United States has been unemployed for six months or longer (the highest percentage since the Great Depression), while in January 2014, long-term unemployment remained at 2.5 times the national pre-crisis average. California has one of the highest long-term unemployment rates in the country. In February 2014, about 640,000 workers were unemployed for six months or longer. The author notes that there is currently no training program that specifically targets the long-term unemployed in SB 1028 Page 3 California, though there are training programs that they may qualify for, like the Workforce Investment Act dislocated worker program. That program typically provides access to short term job training programs, but does so for only a very small fraction of those who might benefit from the program. This bill differs in that it specifically targets the long-term unemployed and provides access to longer-term occupational training, up to two years, and focuses on growth industries and occupations, providing skills that are in demand by employers. Analysis Prepared by : Laura Metune / HIGHER ED. / (916) 319-3960 FN: 0005188