BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
1559 (Monning)
Hearing Date: 8/17/2009 Amended: 8/17/2009
Consultant: Bob Franzoia Policy Vote: L&IR 5-1
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BILL SUMMARY: AB 1559 would require the California Workforce
Investment Board (CWIB), in collaboration with local workforce
investment boards (LWIBs), to establish the California Youth at
Work Program (CYWP), for the purposes of providing summer job
training and work experience opportunities for youth in the
state. This bill would additionally provide that it shall be
the duty of LWIBs to facilitate the implementation of summer
youth training programs through partnerships and effective
collaboration. Because this bill imposes new duties on LWIBs
with respect to the implementation of these programs, this bill
would impose a state mandated local program.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
California Youth at Work Unknown, major costs
ongoingGeneral*
Program
* Federal American Recovery and Reinvestment Act (ARRA) of 2009
until exhausted, then General Funds ongoing
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STAFF COMMENTS: This bill meets the criteria for referral to the
Suspense File.
The federal American Recovery and Reinvestment Act includes $1.2
billion in funding for Workforce Investment Act (WIA) youth
employment programs nationwide and increases the age of persons
eligible for such programs from 21 to 24 years.
California received $186,622,034 for this purpose with a federal
mandate for an emphasis on a vigorous summer youth program.
WIA funds are distributed by the Employment Development
Department (EDD) who allocates 85 percent of the funds to LWIBs
and retains 15 percent for WIA programs at the Governor's
discretion with policy guidance from the CWIB. This 15 percent
is administered by EDD. The ARRA funds that were received to
supplement WIA funding are disbursed according to existing WIA
formulas. The LWIBs then develop their own programs that are in
compliance with the WIA, and EDD oversees compliance on how the
funds are spent.
The CYWP proposed by this bill would provide that:
- The CYWP must focus primarily on providing summer job training
and work experience opportunities for youth in the state, and
that the period of "summer" shall be from May 1 through
September 30 of each year, but that start and end dates may
vary.
- The CYWP must include a work experience component that
conforms to the Workforce Investment Act of 1998 and its
implementing regulations.
Page 2
AB 1559 (Monning)
- CYWP services shall target low-income youth and certain youth
populations facing barriers to employment.
- Eligible youth who participate in the CYWP shall be between 14
and 24 years of age.
- Ages or stipends may be provided to youth in a classroom-based
component of a summer employment opportunity.
The Senate Labor and Industrial Relations Committee noted the
following:
After the passage of the ARRA, the federal Department of Labor
released a Training and Employment Guidance Letter (TEGL) that
provided specific policy guidance and instructions for how to
expend ARRA funds. One area of focus in the TEGL was on youth
job programs, and how those program funds should be expended,
what programs are allowable, and what definitions should be
used when setting the parameters of youth programs.
Specifically, the TEGL notes the following when discussing
youth programming:
While the Act does not limit the use of the
Recovery Act funds to summer employment, the
Congressional explanatory statement for the Act
states that "the conferees are particularly
interested in these funds being used to create
summer employment opportunities for youth." ETA
[Employment Training Administration] strongly
encourages states and local areas to use as much
of these funds as possible to operate expanded
summer youth employment opportunities during the
summer of 2009, and provide as many youth as
possible with summer employment opportunities?.
Currently, the local workforce investment boards, in
partnership with the California Workforce Investment Board and
local partners, are rolling out summer youth training programs
geared for each specific workforce area for more than 47,000
young people. The job training programs include computer
repair, solar panel installation and weatherization, website
design, and other trades specific to the local workforce
needs.
The provisions of this bill are consistent with ARRA guidelines
and ARRA funds may be used to fund the implementation of the
CYWP. This funding is currently available in 2009-10 and part
of 2010-11 for summer youth programs but is not available
ongoing. When all ARRA funds for this purpose are expended, the
CYWP will become a General Fund obligation. In order to limit
new General Fund costs, staff recommends this bill be amended to
require any mandated WIB costs be reimbursed with ARRA funds and
to terminate the program when there is no longer sufficient ARRA
or other federal funds to pay for the program.