BILL ANALYSIS
AJR 45
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ASSEMBLY THIRD READING
AJR 45 (Fong)
As Amended August 16, 2010
Majority vote
LABOR AND EMPLOYMENT 5-0
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|Ayes:|Swanson, Bill Berryhill, | | |
| |Furutani, Monning, Yamada | | |
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| | | | |
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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 with a college education in California are
27% 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.
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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.
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
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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
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, pending in the
Senate, 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 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.
Analysis Prepared by : Lorie Erickson / L. & E. / (916) 319-2091
FN: 0005915
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