BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
964 (Alquist)
Hearing Date: 05/27/2010 Amended: 4/22/2010
Consultant: Mark McKenzie Policy Vote: T&H 6-2
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BILL SUMMARY: SB 964 would appropriate $500,000 from the
High-Speed Passenger Train Bond Fund to the High Speed Rail
Authority (HSRA) to fund the activities specified in the bill.
Specifically, this bill would:
Require HSRA and the Employment Development Department (EDD)
to establish an advisory committee, as specified, to advise
HSRA and EDD on the availability of skilled labor force by
region for the construction, operation, and maintenance of the
high-speed trail system, the availability of workforce
training programs, and the availability of funding for those
programs.
Require HSRA to contract with EDD to conduct a labor market
assessment of the projected needs and deficiencies of the
workforce necessary to complete the construction, operation,
and maintenance of the high-speed train network.
Require the assessment to include a recommended strategy to
ensure that workforce training programs are available to
facilitate the availability of an in-state workforce for
construction of the project to the maximum extent feasible.
Require the assessment to be submitted to the Legislature by
January 1, 2012, and incorporated into the HSRA's biennial
revised business plan.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
Appropriation $500 Bond*
Training programs potential cost pressures to fund
trainingGeneral/
programs to the extent that deficiencies
exist Special
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* High-Speed Passenger Train Bond Fund
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STAFF COMMENTS: SUSPENSE FILE.
Existing law, the Safe, Reliable High-Speed Passenger Train Bond
Act for the 21st Century, approved by the voters as Proposition
1A at the November 2008 general election, provides $9 billion in
funding for high-speed rail redevelopment and $950 million for
improvements to urban rail transit systems, intercity rail, and
commuter rail. Of the $9 billion in bond funds approved for the
high-speed rail system, the bond act specifies that no more than
10% of the funds ($900 million) may be used for environmental
studies, planning, and preliminary engineering. The bond act
also specifies that up to two percent of the total proceeds may
be used for the administration of the HSRA. SB 964 would
require that the appropriation for the purposes specified in the
bill would be allocated from the funds set aside for
environmental studies, planning, and preliminary engineering.
This is intended to ensure that bond funds used to assess
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SB 964 (Alquist)
workforce availability and prepare for construction of the rail
network are not allocated from funds available for capital
projects.
Participation in the advisory committee would impose minor
staffing costs on the HSRA and EDD. Staff notes that, based on
previous labor market assessments performed by EDD and the
unique nature of the high speed rail project, this bill would
require an in depth review of the technological expertise,
education, training, and materials necessary for the
construction and operation of the system, and may also require
several consulting contracts with experts in various aspects of
the high-speed train industry. EDD does not have a detailed
cost estimate for the bill at this time, but the $500,000
appropriation specified in the bill may be inadequate to fund
the high speed rail workforce market assessment and related
requirements. The one-year timeframe for completion of the
assessment may also be problematic. There may be additional
cost pressures created by the bill to the extent that the
appropriation in inadequate and the timelines are infeasible.
Staff notes that this bill could create cost pressure issues if
the assessment identifies deficiencies that cannot be addressed
with available training programs. If training programs are
insufficient or lack a funding source, there could be pressure
to provide state funding for workforce training. The high-speed
rail system will ultimately be funded by a combination of state,
federal, and private funding. The provision of training
programs could be one aspect of the project in which the private
sector could respond by providing the tools necessary to ensure
availability of a skilled in-state workforce.
Staff notes that SB 372 (Steinberg), which was held on this
Committee's Suspense File in 2007, would have would have
required the Superintendent of Public Instruction to prepare, in
conjunction with the HSRA, an inventory of future educational
and vocational courses necessary for the high-speed train
system. This bill would have also required the development of
courses of study to meet the need for skills associated with
building and operating the system. Costs to implement the
course development requirements of SB 372 were estimated to be
in the range of $400,000.