BILL ANALYSIS
Senate Committee on Labor and Industrial Relations
Mark DeSaulnier, Chair
Date of Hearing: April 29, 2009 2009-2010 Regular
Session
Consultant: Gideon L. Baum Fiscal:Yes
Urgency: No
Bill No: SB 410
Author: Ducheny
Version: As Amended April 27, 2009
SUBJECT
California Workforce Investment Act: federal funding.
KEY ISSUE
Should the Legislature require that job training be the priority
for the American Recovery and Reinvestment Act funds going to
local workforce investment boards, expand the definition of
training programs to apprenticeship and pre-apprenticeship
programs, and require additional reporting requirements to track
the use of these funds?
PURPOSE
To provide greater oversight over the spending of the American
Recovery and Reinvestment Act funds, as well as to set clear
legislative goals and priorities for the use of those funds.
ANALYSIS
Existing federal law in the Workforce Investment Act (WIA) of
1998 requires all states to form state workforce investment
boards, and for Governors to designate local workforce
investment areas and oversee local workforce investment boards.
WIA requires that 85 percent of the federal funds supplied for
the Act go to the local workforce investment boards, with the
remainder allocated for state discretionary purposes.
The Workforce Investment Act of 1998 also establishes the
"One-Stop" delivery system as the access point for
employment-related and training services, and requires that the
local workforce investment boards select the operator of a
"One-Stop" center through a competitive process or may designate
a consortia of not less than three partners to operate a center.
Existing federal law in the American Recovery and Reinvestment
Act of 2009 (ARRA) allocates additional WIA funds over the
2009-2010 and 2010-2011 fiscal years. ARRA also makes
additional funds available nationally through competitive grants
which may be accessed, among other groups, by state workforce
investment boards and local workforce investment boards.
Existing state law establishes the California Workforce
Investment Board (CWIB), and requires the CWIB to assist the
Governor with promoting the development, oversight, and
continuous development of a well-educated and highly skilled
workforce, and also assist in the development of the State
Workforce Investment Plan.
Existing state law declares the intent of the Legislature to
deliver comprehensive workforce services to jobseekers,
students, and employers at those comprehensive one-stop career
centers to, among other things, make outreach, intake, job
search and placement assistance, and other related services
available in one location.
Existing state law requires the Employment Development
Department (EDD) to report annually to the Governor, the
Legislature, and the California Workforce Investment Board
(CWIB), no later than November 30, regarding the training
expenditures made by local workforce investment boards in the
prior fiscal year.
This bill would make findings and declarations on the current
state of unemployment in California and the need for job
training and supportive services, and declare that the
collaboration and leveraging of existing resources among
workforce investment boards and educational providers is an
effective way to increase job training services to Californians.
This bill would require the CWIB to develop policies, funding
recommendations, and strategies that will maximize funding
Hearing Date: April 29, 2009 SB 410
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Senate Committee on Labor and Industrial Relations
across all workforce programs for developing and enhancing the
skills of Californians in order to meet the needs of
California's businesses using the guiding principles of:
a) Investing in regional workforce and economic development
strategies to build prosperous communities and competitive
industries;
b) Providing all Californians with access to high-quality
postsecondary education and skills training;
c) Providing working adults with opportunities to move up
the skill ladder;
d) Linking workforce preparation and institutions to create
pathways to high wage jobs; and
e) Aligning program goals and measures to achieve a shared
vision of California's future and to ensure accountability.
This bill would require that the priority for funding available
through the federal American Recovery and Reinvestment Act of
2009 for local workforce investment boards must be for
increasing training services, and would require training
priorities to be consistent with those identified in that act.
This bill would require the one-stop career centers, given
sufficient resources, to coordinate with training providers, and
educational institutions and agencies to deliver comprehensive
supportive services to individuals enrolled in job training
programs. Supportive services may include, but are not limited
to, transportation, child care, dependent care, housing, and
needs-related payments that are necessary to enable a person to
participate in the workforce training and development
activities.
This bill would tie the definition of "needs based services" and
the necessary requirements for receiving "needs based services"
to the existing federal Workforce Investment Act.
This bill would require local workforce investment boards, in
consultation with one-stop centers and other community service
providers, to form a policy on supportive services addressing
referral of unemployed individuals and funding options for
supportive services.
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Senate Committee on Labor and Industrial Relations
This bill would require that the Employment Development
Department's annual report on the training expenditures made by
local workforce investment boards include:
a) Funds made available through the American Recovery and
Reinvestment Act of 2009; and
b) Training expenditures incurred by organizations funded
by the Governor's 15 percent discretionary fund from the
Workforce Investment Act of 1998.
This bill would declare the intent of the Legislature that:
a) Local workforce investment boards and community colleges
develop innovative strategies to provide training that
accommodates the needs of unemployed or underemployed
adults, can provide certificates and credentials through
flexible schedules, and implement new approaches to
delivering job skills training and education; and
b) Other intensive services, such as out-of-area job search
assistance, literacy activities related to workforce
readiness, relocation assistance, internships, and work
experience programs also be provided at those one-stop
career centers to individuals who have met specified
requirements, based on an assessment or individual
employment plan.
COMMENTS
1. Need for this bill?
On February 17, 2009, President Obama signed into law the
American Recovery and Reinvestment Act (ARRA), which sought to
use federal stimulus dollars to combat the current economic
recession. Last month, this Committee held an informational
hearing on the state of the economy, as well as how the
stimulus funds would affect California. As that hearing, the
Legislative Analyst's Office (LAO) stated that an additional
$494 million over the 2009-2010 and 2010-2011 fiscal years, on
top of the $491 million allocated for fiscal year 2009-2010.
As was stated earlier, most of the funds will go to the local
workforce investment boards - $427 million of the WIA funds
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Senate Committee on Labor and Industrial Relations
for the 2009-2010 fiscal year and approximately an additional
$420 million over the 2009-2010 and 2010-2011 fiscal years.
During the buildup to the passage of the ARRA, Senator
Ducheny's office began discussions with local workforce
investment boards and other workforce development partners on
their current fiscal priorities, how they will handle the
influx of ARRA stimulus funds, and if California law complies
with federal law and federal Department of Labor regulations.
This bill is the fruit of those discussions.
In brief, the bill requires that job training be the priority
for the ARRA funds going to local workforce investment boards,
expands the definition of training programs to apprenticeship
and pre-apprenticeship programs, allows for the use of
training funds for supportive services to keep individuals
enrolled in the job training programs, and requires additional
reporting requirements to track the use of these funds.
2. Proponent Arguments :
Proponents argue that SB 410 will increase the number of
Californians who have access to training and increase the
collaboration of the public workforce system, educational
institutions, organized labor, and other training providers.
Proponents also argue that SB 410 will increase completion
rates for students in training programs, as studies have shown
that programs with training and supportive services, such as
case management, child care, and transportation are more
effective in increasing completion rates for students.
Finally, proponents believe that SB 410 recognizes the needs
of California's businesses and workforce in a declining
economy, and provides training that is good for business and
good for economic growth.
3. Opponent Arguments :
None received.
4. Prior Legislation :
SB 302 (Ducheny), Statutes of 2008, Chapter 376, created the
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Senate Committee on Labor and Industrial Relations
requirement that the Employment Development Department (EDD)
report annually on the training expenditures made by local
workforce investment boards in the prior fiscal year, and
authorized additional accounting practices.
SB 293 (Ducheny), Statutes of 2006, Chapter 630, restructured
the local workforce investment boards and the state workforce
investment boards, as well as authorized the submittal of
unified local plans for welfare-to-work programs.
SUPPORT
American Federation of State, County and Municipal Employees,
AFL-CIO
California Community College Association for Occupational
Education
California Workforce Association
OPPOSITION
None received.
* * *
Hearing Date: April 29, 2009 SB 410
Consultant: Gideon L. Baum Page 6
Senate Committee on Labor and Industrial Relations