BILL ANALYSIS Ó
AB 2642
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Date of Hearing: May 11, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2642 (Eduardo Garcia) - As Amended April 26, 2016
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|Policy |Jobs, Economic Development, |Vote:|9 - 0 |
|Committee: |and the Economy | | |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill creates the Breaking Barriers to Employment
Initiative, administered by the Secretary of Labor and Workforce
Development (Secretary), to provide two year grants to community
based organizations (CBOs), to assist individuals with barriers
to employment, including providing access to remedial education
and work readiness skills necessary to transition to career
pathways. Specifically, this bill:
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1)Authorizes the Secretary to assign all or part of the
administration of the initiative to one or more entities
within the agency's oversight or another state entity, if the
other state entity agrees and meets certain requirements.
2)Provides for a lead CBO to use their expertise in remedial
education and workforce readiness, to collaborate with a lead
workforce board to design a program that supports the
transition of participants to career pathways and sector
strategies.
3)Requires the Secretary, or his or her delegate, to consult
with public and private stakeholders, including nonprofit
CBOs, local WIBs, local governments, and other entities that
serve individuals who face barriers to employment, to assist
in development of the initiative.
4) Makes implementation of the initiative subject to an
appropriation by the Legislature, and contingent upon the
Secretary notifying the Department of Finance that sufficient
moneys have been appropriated and deposited in the
Consolidated Work Program Fund (CWPF). Specifies the Secretary
is responsible for oversight and monitoring of any funds
awarded for the initiative.
5)Requires the Secretary to develop criteria for the selection
of grant recipients and for technical assistance to grantees.
Specifies the grants are awarded on a competitive basis and
evaluated based on the lead CBO's demonstrated capacity to
serve the targeted populations. Grantees must specify
objectives and measurements to measure success.
6)Eligible grant activities include: English language
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improvement training, basic skills and adult education, high
school diploma and GED acquisition, skills and vocational
training, work experience, on-the-job training, stipends for
trainees, entrepreneurship training, earn-as-you-learn,
industry certifications, preapprenticeship programs,
mentoring, and other remedial education and work readiness
skills.
7)Requires grant recipients to report to the Secretary annually
on the use of funds, workforce training outcomes, and any
other information required by the Secretary.
8)Requires the Secretary, by January 1, 2018, to annually post
online a status report of the implementation of the
initiative, information aggregated by grant recipients, and
overall progress of the programs.
FISCAL EFFECT:
1)Administrative cost pressures to the California Workforce
Investment Board (CWDB), in the range of $270,000, assuming a
$10 million appropriation for this program. This bill is
contingent upon a future appropriation from the Legislature.
Given the goals and tasks outlined in the bill, assuming a $10
million appropriation seems reasonable. CWDB states they do
not believe federal funds could be used for purposes of this
initiative.
2)Administrative cost pressures to the Employment Development
Department (EDD) of approximately $1.2 million to administer
this new grant initiative. Approximately one-third of these
costs would be associated with one-time costs to change to the
CalJOBS system, since the grant evaluation and performance
criteria outlined in the bill do not align with those
established for WIOA.
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Implementation of this bill is contingent upon sufficient
money deposited in the Consolidated Work Program Fund (CWPF)
for purposes of the initiative. According to EDD, the CWPF is
designated to receive federal funds only and is not an
appropriate destination for any state monies appropriated for
(or private funds donated to) the Breaking Barriers to
Employment Initiative.
COMMENTS:
1)Purpose. According to the sponsor, the California Workforce
Association, between current openings and baby boomer
retirements, California businesses expect to have 4.4 million
middle skill job openings in the next decade. Disconnected
populations and populations with barriers to employment
comprise a large amount of California's potential workforce.
It is not just a social imperative that we help these people
enter into the skilled workforce, but an economic imperative
as well. This bill would develop a grant program for which
Workforce Boards and Community-Based Organizations would join
forces to apply for to break barriers to gainful employment
and help fill business needs.
2)Background. The federal Workforce Innovation and Opportunity
Act (WIOA) of 2014 reauthorized the nation's employment,
training, adult education, and vocational rehabilitation
programs created under WIA. California's Unified Strategic
Workforce Development Plan (State Plan) outlines a
comprehensive four-year strategy for investing federal
workforce training and employment service dollars in a manner
that aligns and coordinates six core WIOA funded programs. One
of the state goals is in the State Plan is to produce one
million "middle-skill" industry valued and recognized
postsecondary credentials. "Middle-skill" jobs are those that
require more than a high school education but do not require a
four-year degree. To meet this goal, the State Plan
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anticipates doubling the number of people enrolled in
apprenticeship programs.
In 2012, there were 1.9 million unfilled middle skill jobs.
This number is expected to grow as one-third of middle skill
workers retire over the next ten years. According to the
author, the competitive grant program created by this bill
will build upon key objectives in the State Plan by assisting
individuals to obtain the fundamental skills necessary to
prepare for work in high priority industries, leverage
multiple services to meet a worker's individual needs, and
target people who face systemic barriers to employment.
Analysis Prepared by:Misty Feusahrens / APPR. / (916)
319-2081