BILL ANALYSIS
AJR 45
Page 1
Date of Hearing: August 11, 2010
ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
Sandre Swanson, Chair
AJR 45 (Fong) - As Introduced: June 29, 2010
SUBJECT : Lifelong Learning Accounts.
SUMMARY : Urges the federal government to create and fund
programs that encourage learning such as Lifelong Learning
Accounts (LiLAs), in California. Specifically, this resolution
makes the following legislative statements:
1)California has a lower percentage of young adults, ages 25 to
34, who have completed high school or who have earned a
college degree than the national average. Sixty-six percent
of California's working adults, ages 18 to 64, over 15 million
adults, are without an associate's degree, college degree or a
higher degree.
2)Working-age adults in California are twenty-seven percent more
likely to participate in the workforce than those with only a
high school diploma.
3)The lifetime earnings of Californians with a college education
are more than double those of Californians without this
education. Persons with a college education also have fewer
health problems, are less likely to commit crimes, are more
likely to participate in civic activities, and are able to
create more resources for the state.
4)The federal government encourages the citizens of the United
States to gain more education so as to enable the country to
compete more effectively in the global economy.
5)All levels of government could encourage savings to pay for
higher education opportunities for working adults to allow
those adults to acquire new skills, raise their standard of
living, and prepare them to be part of the workforce in our
changing economy.
6)LiLAs have been shown to be an effective method to encourage
employers and employees to set aside money to pay for tuition,
fees, supplies, materials and books necessary for further
education and training.
AJR 45
Page 2
7)The Legislature supports the creation of innovative programs
that encourage lifelong learning, including LiLAs that might
be available through funding from the federal government
because those programs will lead to a more skilled workforce
which will, in turn, help California maintain its role as an
economic leader in today's changing economy.
COMMENTS : LiLAs are worker-owned, employer-matched portable
accounts that can be used throughout the workers' lifetime.
These accounts encourage employees to save for their own
education and training as well as encouraging them to save for
the future educational needs of their children.
According to the author, California is one of a handful of
states that has a pilot project to demonstrate the effectiveness
of LiLAs. California's LiLA project is operated by San
Francisco Jewish Vocational Service in partnership with Council
for Adult and Experiential Learning (CAEL). Currently, four
employers are sponsoring LiLAs for their workers, three of which
are in the health care sector and one in the public sector.
Participants have used their LiLAs for vocational training and
academic classes. The career advising component assists older
workers in contemplating a career change or advancement with
their current employer. The results have been positive and form
the basis for this resolution which would seek to replicate
these programs in other areas of the state and throughout the
nation.
In addition, policy leaders in Washington D.C. have recognized
the importance of LiLAs. House Resolution 5715 (Larson) was
introduced on July 13, 2010 to create and fund LiLAs. The
author states this resolution is a joint effort by the Senate
and the Assembly of the state of California to encourage the
federal government to establish Lifelong Learning Accounts to
help employees save for additional training and education. The
state of California is sending a clear message to the federal
government: we want innovative policy capable of meeting
evolving workforce needs and contributing to the overall
prosperity of our nation.
The author summarizes by stating, LiLAs are similar in concept
to 401(k) accounts, but the funds can be used for education and
training throughout one's lifetime. The ultimate vision is that
LiLAs will become a standard offering in employee compensation
AJR 45
Page 3
packages, putting money for education and training within reach
of every American worker. The Lifelong Learning Accounts
program will give millions of Americans an opportunity to
develop the skills necessary to compete in an increasingly
knowledge-based economy. Creating savings accounts to finance
education and training for career development will enable
millions of hard working men and women to advance their careers
and earnings.
The Council for Adult and Experiential Learning (CAEL) states
this resolution grew out of a successful LiLA project in the Bay
Area, which was overseen by the Jewish Vocational Service (JVS).
Private sector employees working for healthcare providers as
well as a public sector participating agency, a local community
college in close partnership with their union were involved in
this project. LiLAs allow these employees to set aside funds
for their educational needs. The JVS project is one of several
demonstration projects funded by private foundations and state
or local governments that are taking place in Illinois, Maine,
Kansas, Missouri, New York and Washington.
CAEL argues that this resolution helps put California in line
for funds that may be made available by the federal government
and other sources to assist in the development and
implementation of the program with the introduction of HR 5715
(Larson) which would, among other things, provide employer and
refundable employee tax credits for LiLA contributions.
RELATED LEGISLATION :
AB 1320 (Fong) of 2009 would, beginning January 1, 2012, create
a Lifelong Learning Accounts Initiative Program for the purpose
of providing grants to employers and employees to be used to
establish individual lifelong learning accounts (LiLAs) for the
deposit to be used by those employees and employers for the
purposes related to lifelong education and training. AB 1320
shall only be implemented if the Director of Finance makes a
written determination that there are sufficient funds from non
General Fund sources available for the purposes of the bill.
The bill is currently on the Senate Appropriations suspense
file.
REGISTERED SUPPORT / OPPOSITION :
AJR 45
Page 4
Support
Council for Adult and Experiential Learning (CAEL)
Opposition
None on file.
Analysis Prepared by : Lorie Erickson / L. & E. / (916)
319-2091