BILL ANALYSIS Ó
AB 2719
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Date of Hearing: April 19, 2016
ASSEMBLY COMMITTEE ON JOBS, ECONOMIC DEVELOPMENT, AND THE ECONOMY
Eduardo Garcia, Chair
AB 2719
(Eduardo Garcia) - As Amended April 12, 2016
SUBJECT: Workforce development: out of school youth
SUMMARY: Adds out-of-school youth to the list of individuals who have
significant barriers to employment under the state statute relating to
the federal Workforce Innovation and Opportunity Act. The bill also
requires a workforce development board to prioritize schools providing
free public high school diplomas over other providers, when making
recommendations to clients about the appropriate education provider to
assist them in earning a high school diploma. Specifically, this
bill:
1)Adds out-of-school youth to the definition of Individuals with
Employment Barriers, as defined in federal law.
2)Defines "local workforce development system stakeholders" to mean
owners of businesses or other business executives with policymaking
or hiring authority, representatives of local area labor
organizations, representatives of community-based organizations that
have demonstrated experience in addressing the employment needs of
individuals with barriers to employment, and representatives of area
schools and colleges including, but not limited to, schools that
serve out-of-school youth through exclusive partnerships with any of
the following:
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a) The California Workforce Development Board (CWD) or local
workforce development board;
b) Federally affiliated Youth Build programs;
c) Federal job corps training or instruction provided pursuant to
a memorandum of understanding with the federal provider; and
d) The California Conservation Corp or local conservation corps
certified by the California Conservation Corp, as specified.
3)Specifically identifies "out-of-school youth" as an individual with
barriers to employment. Under existing law, the CWD Plan is
required to develop strategies to support the use of career pathways
by individuals with barriers to employment.
4)Specifically identifies "individuals with barriers to employment"
among the groups of individuals the CWD is required to develop
strategies for providing effective outreach to and improved access
to the workforce development system.
5)Expands the list of training policies and investments on which the
CWD makes recommendations to include California high school diplomas
from schools accredited by the Western Association of Schools and
Colleges. This list of policies and investments is designed to
offer a variety of career opportunities while upgrading the skills
of California's workforce.
6)Expands the list of groups that are required to be considered when
CWD advises the Governor on ways to develop and continuously improve
services through the local one-stop delivery system to include
entrepreneurs. The current list includes workers, job seekers, and
employers.
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7)Specifies that the currently required status report on credential
attainment, include the attainment of California high school
diplomas by out-of-school youth from a school accredited by the
Western Association of Schools and Colleges. The CWD is also
required to request an opportunity to present relevant portions of
the credential attainment report to the State Board of Education and
the California Community College Board, as specified.
8)Specifically identifies out-of-school youth as one of the customer
groups that a workforce development board will be evaluated as to
whether they met or exceed their performance goal when designating
high performing boards.
9)Specifically identifies public schools that serve out-of-school
youth through Department of Labor funding as one of the groups high
performing boards included within the local planning process.
10)Requires that the already mandated youth strategy address the
workforce preparation needs of out-of-school youth and other
individuals facing barriers to employment.
11)Adds specificity to the local plan of the workforce development
board relative to out-of-school youth by including them within the
analysis of education programs available to increase learning gains
and to track the number of diplomas from high schools accredited by
the Western Association of Schools and Colleges, as specified.
12)Adds out-of-school youth to the list of groups who required to
receive priority training and career services at America's Job
Centers. Groups currently on the list include adult recipients of
public assistance, other low-income adults, and individuals who are
basic skills deficient.
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13)Authorizes certain public schools that provide instruction
exclusively through partnerships with Department of Labor to apply
to local workforce development boards to provide basic skills
training and skills necessary for attaining a secondary school
diploma.
a) Requires priority for schools accredited by the Western
Association of Schools and Colleges.
b) Defines schools that serve out-of-school youth through
exclusive partnerships between secondary schools and the CWD,
local workforce development board, a federally affiliated Youth
Build programs; federal job corps training, as specified; the
California Conservation Corps; or a local conservation corps.
14)Includes a general cost disclaimer.
EXISTING LAW:
1)Establishes the CWD, comprised of members appointed by the Governor
and the appropriate presiding officer(s) of each house of the
Legislature, and specifies that the executive director of the CWD
report to the Secretary of the California Labor and Workforce
Development Agency.
2)Designates the CWD as the state entity responsible for assisting the
state in meeting the requirements of the federal Workforce
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Innovation and Opportunity Act 2014, as well as assisting the
Governor in the development, oversight, and continuous improvement
of California's workforce investment system.
3)Requires the CWD to assist the Governor in the development of
strategies to support the use of career pathways for the purpose of
providing individuals, including low-skilled adults, youth, and
individuals with barriers to employment, and including individuals
with disabilities, disabilities and out-of-school youth, with
workforce investment activities, education, and supportive services
to enter or retain employment. To the extent permissible under state
and federal laws, these policies and strategies should support
linkages between kindergarten and grades 1 to 12, inclusive, and
community college educational systems in order to help secure
educational and career advancement.
4)Requires an annual status report on credential attainment, including
training completion, degree attainment, and participant earnings
from workforce education and training programs.
5)Requires the CWD to establish an evaluation process for the purpose
of designating high performing workforce development boards, which
includes, but is not limited to, meeting and exceeding performance
goals, demonstration of an inclusive local planning processes, and
demonstration of training programs that promote skills development
and career ladders relevant to the needs of each workforce
investment area's regional labor market and high-wage industry
sectors.
6)Requires workforce development boards to develop local plans that
include the following:
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a) An analysis of the regional economic conditions, including,
existing and emerging in-demand industry sectors and occupations
and the employment needs of employers;
b) An analysis of the knowledge and skills needed to meet the
employment needs, as specified;
c) An analysis of the workforce in the region, including
individuals with barriers to employment;
d) An analysis of the workforce development activities and an
analysis of the strengths and weaknesses of such services to
address the identified education and skill needs of the workforce
and the employment needs of employers in the region;
e) A description of the local board's strategic vision and goals;
and
f) Provide a strategy to achieve the strategic vision and goals.
EXISTING FEDERAL LAW:
1)Authorizes the Workforce Innovation and Opportunity Act of 2014 for
the purpose of:
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a) Increasing access to the employment, education, training, and
support services that individuals need to succeed in the labor
market, especially individuals who face barriers to employment;
b) Supporting the alignment of workforce investment, education,
and economic development systems in support of a comprehensive,
accessible, and high-quality workforce development system in the
U.S.;
c) Improving the quality and labor market relevance of workforce
investment, education, and economic development efforts to
provide America's workers with the skills and credentials
necessary to secure and advance in employment with
family-sustaining wages and to provide America's employers with
the skilled workers the employers need to succeed in a global
economy;
d) Promoting improvement in the structure of and delivery of
services through the UUS workforce development system to better
address the employment and skill needs of workers, jobseekers,
and employers;
e) Increasing the prosperity of workers and employers in the
U.S., the economic growth of communities, regions, and states,
and the global competitiveness of the U.S.; and
f) To provide workforce investment activities, through statewide
and local workforce development systems, that increase the
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employment, retention, and earnings of participants, and increase
attainment of recognized postsecondary credentials by
participants, and as a result, improve the quality of the
workforce, reduce welfare dependency, increase economic
self-sufficiency, meet the skill requirements of employers, and
enhance the productivity and competitiveness of the Nation.
2)Defines "out-of-school youth" as an individual between the ages of
16 and 24; who is not attending any school at the time eligibility
is determined, and meets one or more conditions of being:
a) A school dropout;
b) A youth who is within the age of compulsory school attendance,
but has not attended school for at least the most recent complete
school year calendar quarter;
c) A recipient of a secondary school diploma or its recognized
equivalent who is a low-income individual and is basic skills
deficient; or an English language learner;
d) An individual who is subject to the juvenile or adult justice
system;
e) A homeless individual, as defined, a homeless child or youth,
as defined; a runaway, in foster care or has aged out of the
foster care system; a child eligible for assistance under section
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677 of title 42, or in an out-of-home placement;
f) An individual who is pregnant or parenting;
g) A youth who is an individual with a disability;
h) A low-income individual who requires additional assistance to
enter or complete an educational program or to secure or hold
employment;
For the purpose of this definition, the term "low-income"
individual, also includes a youth living in a high-poverty area.
3)Requires that not less than 75% of funds allocated to a state for
youth programs be made available for programs and services that
serve out-of-school youth. This requirement applies both statewide
and at the individual workforce development board level. Federal
law allows a state or board to lower the percentage of funds that
serve out-of-school youth to 50%, if the board determines that there
is not sufficient need and that a lower amount is sufficient.
4)Requires federal funds dedicated to youth activities be used for 14
program elements, including:
a) Tutoring, study skills training, and instruction leading to
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secondary school completion, including;
b) Dropout prevention strategies;
c) Alternative secondary school offerings or dropout recovery
services;
d) Paid and unpaid work experiences with an academic and
occupational education component;
e) Occupational skill training, with a focus on recognized
postsecondary credentials and in-demand occupations;
f) Leadership development activities (e.g., community service,
peer-centered activities);
g) Supportive services;
h) Adult mentoring;
i) Follow-up services for at least 12 months after program
completion;
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j) Comprehensive guidance and counseling, including drug and
alcohol abuse counseling;
aa) Integrated education and training for a specific occupation or
cluster;
bb) Financial literacy education;
cc) Entrepreneurial skills training;
dd) Services that provide labor market information about in-demand
industry sectors and occupations; and
ee) Postsecondary preparation and transition activities.
FISCAL EFFECT: Unknown
POLICY ISSUE FRAME
Every 26 seconds another young person fails to finish high school.
California accounts for more than one million of these students each
year. Since 2002, California has had an Education Code provision that
allows schools partnering with Department of Labor programs to work
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with youth over 19 to obtain a public school diploma. Improving the
alignment of California's workforce development system with schools
serving out-of-school youth is an important step to stemming the flood
of dropouts and strengthening California workforce system.
While services to out-of-school youth are treated as a priority under
the federal Workforce Innovation and Opportunity Act, current state
law is silent. Current state law also does not provide statutory
direction as to the accreditation of the schools who can offer
out-of-school youth high school diplomas. AB 2719 highlights the
importance of serving out-of-school youth within the broader workforce
development system. The analysis includes background on the federal
Workforce Innovation and Opportunity, out-of-school youth and
California's evolving economy, including income inequality. Amendments
are discussed in Comment #4.
COMMENTS:
1)Out of School Youth: The federal Workforce Innovation and
Opportunity Act was signed into law in July 2014 and represents the
single most significant change in federal workforce policy in over
15 years. The Act supersedes the federal Workforce Investment Act
of 1998, which expired under its own terms in 2003. The new federal
Act also amends the Adult Education and Family Literacy Act, the
Wagner-Peyser Act, and the Rehabilitation Act of 1973.
While still retaining some of the core elements of the former
workforce act, the Workforce Innovation and Opportunity Act presents
a broader vision for youth and youth training and education
programs. According to the federal Employment and Training
Administration, the new federal act is intended to support an
integrated service delivery system and to provide a framework for
leveraging other federal, state, local, and nonprofit resources and
partnerships to support in-school and out-of-school youth. Among
other things, the Workforce Innovation and Opportunity Act
implements the following:
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At least 75% of state and local youth funding is required to
be used for out-of-school youth;
While youth councils are no longer required, local workforce
development boards are encouraged to designate a standing Youth
Committee to contribute the critical youth voice and perspectives
to board activities and actions.
Out-of-school youth are defined as 16 to 24, not attending any
school, and meet one of a series economic, social, or education
challenges.
In-school-youth are defined as 14 to 21, attending school, be
of low-income and meet one of a slightly different set of
economic, social, or education challenges.
There are five new youth program elements, including financial
literacy; entrepreneurship, services that provide local labor
market information; activities that help youth transition to
postsecondary education and training; and education offered
concurrently with other workforce preparation activities.
At least 20% of local youth formula funds are required to be
used for work experiences, including summer and year round
employment pre-apprenticeship, on-the-job training, or
internships.
Given the significance of these changes and the broad range of
options for implementation, statutory inclusion and public policy
debate are appropriate. Currently, these new federal rules are
applicable, but not transparent.
1)Workforce Innovation Opportunity Act and California Workforce Board:
Enacted in 2014, Workforce Innovation and Opportunity Act provides
states with federal funding for job training and employment
investment activities and programs, including work incentive and
employment training outreach programs. Distribution of the funds is
based on a set formula which includes specified economic and
demographic data and flows to the state through three primary
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programs: Adult, Youth, and Dislocated Workers.
California's workforce development funding from the U.S. Department
of Labor has declined over the years from a high of $630 million in
2000-01 to $397 million in 2016-17. Federal law dictates that 85%
of Adult and Youth formula funds, and 60% of Dislocated Worker
formula funds, are distributed to local workforce development
boards. Funding for the state's activities is derived from the 15%
discretionary funds.
California received approximately $401 million for program year
2015-16, with $321.5 million being allocated to local workforce
development boards to provide services for adults, laid-off workers,
and youth, and $80.5 million remaining at the state-level for
program oversight and discretionary programs.
California's federal workforce dollars are overseen by the 51-member
CWD, of which 51% of the members represent the private sector, as
required by federal law. The CWD has a staff of 18 authorized
positions and is currently led by Executive Director Tim Rainey. In
2008, a Green Collar Jobs Council was established to address the
workforce development needs of the emerging clean and green economy.
Among its primary duties, the CWD provides guidance to local
workforce boards and is responsible for the development of a
unified, strategic plan to coordinate various education, training,
and employment programs that result in an integrated workforce
development system that supports economic development. The plan is
required to be updated at least every 2 years in order to address
the state's changing economic, demographic, and workplace needs.
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The CWD has submitted its first plan under the Workforce Innovation
and Opportunity Act to the U.S. Labor Department and is expected to
receive final word on its acceptance in July 2016.
There are 48 local workforce development boards that plan for and
oversee the workforce system at the local and regional levels.
Local workforce boards are comprised of a range of workforce
stakeholders, a majority of which are required to be representatives
from business. Each local workforce development board has one or
more One-Stop Centers, now referred to as America's Career Centers,
which provide access to career information, counseling, and funding
for education, training, and supportive services.
3)Income Disparities: California's overall economic growth and
increase in jobs has outpaced the U.S. in general, often ranking the
state within the top five states in terms of its economic condition.
This success, however, has not been consistent throughout the state
with many regions and certain population groups still experiencing
recession-related poor economic conditions.
According to the U.S. Census Bureau, California's poverty rate is
16.4% as compared to a national rate of 15.6%. It is estimated that
nearly a quarter of the California's children (22.7%) are living in
households with annual incomes below the federal poverty line.
Contributing factors to these poverty rates are stagnate wage rates,
an increasing concentration of annual income among the highest
income earning individuals, and differing job opportunities in the
post-recession economy.
A review of the most recent unemployment numbers in the chart below
illustrates this expanding pattern of economic disparity between
regions and population groups in California.
-------------------------------------------------------------
| Unemployment February 2016 (not seasonally adjusted) |
-------------------------------------------------------------
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|---------------+---------------+-+---------------+-------------|
| | Unemployment | | |Unemployment |
| | Rate | | | Rate |
|---------------+---------------+-+---------------+-------------|
|California | 5.7% | |California | 5.7% |
|---------------+---------------+-+---------------+-------------|
|Colusa County | 21.6% | |Blacks | 10.8% |
| | | | | |
| | | | | |
|---------------+---------------+-+---------------+-------------|
|Imperial | 18.6% | |Hispanics | 7.4% |
|County | | | | |
| | | | | |
|---------------+---------------+-+---------------+-------------|
|Los Angeles | 5.5% | |Whites | 5.8% |
|County | | | | |
| | | | | |
|---------------+---------------+-+---------------+-------------|
|Orange County | 4.0% | |16 to 19 year | 20.5% |
| | | |olds | |
| | | | | |
| | | | | |
|---------------+---------------+-+---------------+-------------|
|Riverside | 5.9% | |20 to 24 year | 10.9% |
|County | | |olds | |
| | | | | |
| | | | | |
|---------------+---------------+-+---------------+-------------|
|San Bernardino | 5.6% | |25 to 34 year | 6.2% |
|County | | |olds | |
| | | | | |
| | | | | |
---------------------------------------------------------------
--------------------------------------------------------------
|San Mateo | 3.0% | | |
|County | | | |
| | | |Source: California |
| | | |Employment Development |
| | | |Department |
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--------------------------------------------------------------
|Tulare County | 12.1% | | |
|---------------+---------------+-+----------------------------|
|Ventura County | 5.1% | | |
--------------------------------------------------------------
While the state's unemployment rate for February 2016 (not
seasonally adjusted) was 5.7%, some areas of the state had lower
rates, while others were considerably higher. San Mateo County
recorded the lowest at 3.0% and Colusa County experienced the
highest unemployment rate at 21.6%. For the first time in more than
a year, Imperial County did not have the highest unemployment rate
in the state. Inland areas generally reported unemployment rates
above the statewide average. As the chart above shows, Tulare
County's unemployment rate was 12.1% and Riverside County was
recorded as 5.9%. Coastal areas overall had lower rates than the
state's, with Orange County at 4.0%, Los Angeles County at 5.5%, and
Ventura County at 5.1%. Under the federal Workforce Innovation and
Opportunity Act, high unemployment is considered any rate above
6.5%.
Looking more specifically at different population groups, the data
also shows the great discrepancies between the statewide rate and
key subgroups, including unemployment among Blacks and Hispanics
being 10.8% and 7.4% respectively. For the youngest members of the
workforce obtaining quality jobs remains a significant issue with
unemployment among 16 to 24 years being well above the state
average, ranging from 20.5% to 10.9%. According to February's
figures, one-in-five of California's next generation of workers is
unemployed. Below are some additional facts on out-of-school youth,
unemployment and education attainment.
For the 2013-2014 term, California's statewide enrollment
total was 1.9 million students for grades 9-12. The dropout
total among grades 9-12 was 61,600 students, not including those
who dropped out and then re-enrolled.
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Nearly 45,000 out of 1.1 million high school students
classified as socioeconomically disadvantaged students dropped
out of school for the 2013-2014 term.
Over 17,500 out of 284,413 California high school students
classified as English learners dropped out of school for the
2013-2014 school term.
At the height of the recession, the overall unemployment rate
for California residents in the state with a bachelor's degree or
higher was 7.2%, compared to 14.2% for high school graduates with
no college experience.
Once out of work, 47.9% of unemployed residents with
bachelor's and higher degrees experience periods of unemployment
longer than 26 weeks. For unemployed residents with only a high
school diploma, once out of work, 50.1% experienced periods of
unemployment of 27 weeks or more.
The International Monetary Fund believes that youth
unemployment has broad social consequences and contributes
significantly to growing income inequality in advanced economies.
Achieving job growth within globally competitive industries and
addressing the state's growing income disparities may require
different community and economic development approaches, as well as
more coordinated efforts by industry, labor, nonprofits, and
government on a range of issues, including education, workforce
training, infrastructure repair and expansion, entrepreneurship, and
finance, among others. Implementation of WIOA offers a unique and
important opportunity to address the challenges of California's most
vulnerable populations.
4)Amendments: Staff understands that the author will request that the
committee adopt the following amendments:
a) Streamline the definition of schools that operate in
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partnership with the Department of Labor;
b) Remove several references to "out-of-school youth" where there
was already a reference to individuals that face barriers to
employment;
c) Remove the tracking of school diplomas from the workforce
metrics dashboard to allow more time to discuss the current
reporting process;
d) Remove a reference to high school diploma from an adult and
dislocated list of training policies and activities;
e) Add an illustrative list of secondary and postsecondary
education providers to include adult education consortiums,
school districts, schools operating in partnership with the
Department of Labor, and community colleges partnering with local
workforce boards;
f) Remove the requirement to specifically assess at-risk-youth
schools, and instead add a general reference to individuals that
face barriers to employment; and
g) Remove requirement that local boards prioritize California
accredited schools when selecting high school diploma programs
for clients and, instead, require boards to consider California
accreditation when determining the best fit for out-of-school
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youth.
The author has also noted that he is working and will continue to
work with the Administration and stakeholder groups as this measure
moves along.
5)Related Legislation: Below is a list of the related bills.
a) AB 80 (Campos) Interagency Task Force on the Status of Boys
and Men: This bill would have established a 20-member
Interagency Task Force on the Status of Boys and Men of Color.
Issues to be addressed by the Task Force would include, but not
be limited to, employment and wealth creation, health and safety,
education, and juvenile justice. Status: Vetoed by the
Governor, 2015. Governor's Veto Message: How state policy can be
tailored to promote the well-being of boys and men of color is
profoundly important. These issues, however, are best addressed
through concrete actions, not another non-binding commission.
The Legislature and the Administration are working on the
critical issues raised by this bill, such as the Local Control
Funding Formula, healthcare expansion and criminal justice
reform. Much more can be done, and I am committed to advancing
this work.
b) AB 288 (Holden) College and Career Pathways: This bill
authorizes the governing board of a community college district to
enter into a College and Career Access Pathways (CCAP)
partnership with the governing board of a school district within
its immediate service area, as specified, to offer or expand dual
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enrollment opportunities for students who may not already be
college bound or who are underrepresented in higher education.
The goal of the agreements is to develop seamless pathways for
students from high school to community college for
career-technical education or preparation for transfer, improve
high school graduation rates, or help high school pupils achieve
college and career readiness. The bill includes specific
conditions which must be met prior to the adoption of such an
agreement. The authority in this measure sunsets on January 1,
2022. Status: Signed by the Governor, Chapter 618, Statutes of
2015.
c) AB 1058 (Atkins) Second Chance Program: This bill establishes
the Second Chance Program under the administrative direction of
the Department of Corrections for the purpose of investing in
community-based programs, services, and initiatives for formerly
incarcerated individuals in need of mental health and substance
use treatment services. The grant program will be funded through
the savings resulting from the implementation of Proposition 47,
the Safe Neighborhoods and Schools Act of 2014, and other
specified sources. The bill also extends the sunset on the
Social Innovation Financing Program until 2022. Status: Signed
by the Governor, Chapter 748, Statutes of 2015.
d) AB 1093 (E. Garcia) Supervised Population Workforce Training
Grant Program: This bill expedites the allocation of funding
under the existing Supervised Population Workforce Training Grant
Program, which is administered through the California Workforce
Development Board. Status: Signed by the Governor, Chapter 220,
Statutes of 2015. In addition, $1.5 million was authorized in
2015-16 Budget for additional funding rounds.
e) AB 1270 (E. Garcia) California Workforce Innovation and
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Opportunity Act: This bill aligns California statute with the
new requirements of the federal Workforce Innovation and
Opportunity Act of 2014. The bill sets the foundation for policy
changes in 2016 through SB 45 (Mendoza). Status: Signed by the
Governor, Chapter 94, Statutes of 2015.
f) SB 42 (Liu) Higher Education Accountability: This bill would
have established the Office of Higher Education Performance and
Accountability to provide statewide postsecondary education
planning and coordination, as specified. Status: Vetoed by the
Governor, 2015. Governor's Veto Message: The call to improve
postsecondary educational outcomes is laudable. The goals
established by SB 195 in 2013 - improving access and success,
aligning degrees and credentials with the state's economic,
workforce and civic needs, and ensuring the effective and
efficient use of resources - are still important measures that
should guide us in developing higher education policies for the
state. While there is much work to be done to improve higher
education, I am not convinced we need a new office and an
advisory board, especially of the kind this bill proposes, to get
the job done.
g) SB 172 (Liu) High School Exit Exam: This bill suspends the
exit exam requirement for receiving a high school diploma. The
suspension applies in school year 2015-16 through 2017-18.
Status: Signed by the Governor, Chapter 572, Statutes of 2015.
REGISTERED SUPPORT / OPPOSITION:
Support
SIATech California (Sponsor)
California Association of Local Conservation Corps
California Charter Schools Association Advocates
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California School Boards Association
California Urban Partnership
John Muir Charter Schools
National Association of Social Workers
Riverside County Superintendent of Schools
YouthBuild Charter School of California
Opposition
None Received
Analysis Prepared by:Toni Symonds / J., E.D., & E. / (916) 319-2090