BILL ANALYSIS
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THIRD READING
Bill No: SB 410
Author: Ducheny (D)
Amended: 5/21/09
Vote: 21
SENATE LAB. & INDUS. RELATIONS COMMITTEE : 5-1, 4/29/09
AYES: DeSaulnier, Wyland, Ducheny, Leno, Yee
NOES: Hollingsworth
SENATE APPROPRIATIONS COMMITTEE : 7-5, 5/28/09
AYES: Kehoe, Corbett, DeSaulnier, Hancock, Leno, Oropeza,
Yee
NOES: Cox, Denham, Runner, Walters, Wyland
NO VOTE RECORDED: Wolk
SUBJECT : California Workforce Investment Act: federal
funding
SOURCE : Author
DIGEST : This bill seeks 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 relative to workforce
readiness programs.
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
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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 CWIB, no later than November 30,
regarding the training expenditures made by local workforce
investment boards in the prior fiscal year.
This bill makes findings and declarations on the current
state of unemployment in California and the need for job
training and supportive services, and declares that the
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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 requires the CWIB to develop policies, funding
recommendations, and strategies that will maximize funding
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:
1. Investing in regional workforce and economic development
strategies to build prosperous communities and
competitive industries.
2. Providing all Californians with access to high-quality
postsecondary education and skills training.
3. Providing working adults with opportunities to move up
the skill ladder.
4. Linking workforce preparation and institutions to create
pathways to high wage jobs.
5. Aligning program goals and measures to achieve a shared
vision of California's future and to ensure
accountability.
This bill requires 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 requires 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
as described, that are necessary to enable a person to
participate in the workforce training and development
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activities.
This bill ties the definition of "needs based services" and
the necessary requirements for receiving "needs based
services" to the existing federal Workforce Investment Act.
This bill requires 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.
This bill requires that the EDD's annual report on the
training expenditures made by local workforce investment
boards include:
1. Funds made available through the ARRA.
2. Training expenditures incurred by organizations funded
by the Governor's 15 percent discretionary fund from the
Workforce Investment Act of 1998.
This bill declared the intent of the Legislature that:
1. 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.
2. 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
On February 17, 2009, President Obama signed into law the
ARRA, which sought to use federal stimulus dollars to
combat the current economic recession. Last month, this
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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
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.
Prior legislation
SB 302 (Ducheny), Statutes of 2008, Chapter 376, created
the requirement that the Employment Development Department
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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
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Local: Yes
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12
Fund
Expansion of one stopUnknown major costs annually depending
Federal
career center serviceson cost of services and number of
persons receiving needs related
payments
SUPPORT : (Verified 5/28/09)
California Workforce Coalition
Community College League
AGB:do 5/29/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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