BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1315
                                                                  Page  1

          Date of Hearing:   May 27, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   AB 1315 (Furutani) - As Amended:  May 11, 2011 

          Policy Committee:                              Education 
          Vote:9-1

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              No

           SUMMARY  

          This bill establishes Gateway Centers (GC) to be operated by 
          local adult schools and community colleges (CCs) to leverage 
          multiple education and workforce investment funding and improve 
          the transition of adult learners into entry-level degree or 
          certificate training programs that are linked to employment.  
          Specifically, this bill: 

          1)Requires GCs to the do the following: (a) be jointly designed 
            by local and regional partners in adult education and CC 
            programs; (b) report on program outcomes; (c) secure matching 
            funds, as specified; (d) focus on developing models for 
            improving the transition of individuals with weak basic skills 
            to postsecondary education, including providing evidence-based 
            instructional practices, student support services, and 
            professional development for GC instructors, as specified. 

          2)Establishes the GC council to do the following: 

             a)   Identify federal and state resources to fund GC centers 
               (i.e., federal Workforce Investment Act (WIA), federal Carl 
               Perkins Career Technical Education (CTE), adult education, 
               and CC funds).
             b)   Develop a request for application to participate in the 
               GCs no later than April 15, 2012, contingent upon the 
               identification of funding. 
             c)   Fund a minimum of three GC sites, beginning no later 
               than September 1, 2012, contingent upon the identification 
               of funding.
             d)   Prepare a final report to the Legislature and the 
               governor by January 15, 2016 on the outcomes of the GCs.  








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               Requires the report to include recommendations regarding 
               how the State Department of Education (SDE) and the CCs can 
               align institutions and programs more effectively and 
               increase instructional outcomes for students, as specified. 
                

          3)Sunsets the GCs on January 1, 2017.  

           FISCAL EFFECT  

          1)GF/98 costs, likely between $300,000 and $600,000, to fund 
            three GCs, as specified in this measure.  This bill does not 
            indicate the amount of grant funding each GC will be awarded; 
            however, it is reasonable to assume each GC would receive a 
            minimum of $100,000 to staff and provide programs pursuant to 
            this measure.  This bill also specifies grants would not be 
            awarded until funding is identified.  The committee notes 
            local education agencies (LEAs) and CCs have experienced 
            severe budget reductions over the last several years.  In 
            fact, many LEAs have significantly reduced their adult 
            education program offerings in order to redirect their GF/98 
            allocations for these programs to other purposes and instead, 
            have utilized federal funds to maintain minimal programs.  

          2)GF administrative costs, of at least $200,000, to the GC 
            Council to administer the grant program and submit a final 
            report, as specified.  

          3)The 2010 Budget Act allocated approximately $600 million GF/98 
            for adult education programs.  LEAs do not have to use these 
            funds to provide adult education programs.  Under categorical 
            program flexibility, an LEA can use these funds for any 
            educational purpose it deems appropriate. 

          4)The 2010 Budget Act allocated a total of $78 million in 
            federal Carl Perkins funding to adult education programs.    

           COMMENTS  

           1)Rationale  .  According to the author, "In ten years 75% of 
            available jobs will require some postsecondary education and 
            nearly 40% of adult Californians will have only a high-school 
            degree or less. The current method of workforce preparation 
            has great potential to address the individual needs of this 
            diverse population.  However, more can be done to strengthen 








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            the coordination between the silos of the varying workforce 
            providers.  There is growing evidence from research, other 
            states, and innovative programs in California that changes in 
            program alignment, integration, and teaching methods 
            accelerate students' ability to address their basic skills 
            barriers and attain a credential or transfer degree."  

            This bill establishes Gateway Centers to be operated by local 
            adult schools and community colleges to leverage multiple 
            education and workforce investment funding and improve the 
            transition of adult learners into entry-level degree or 
            certificate training programs that are linked to employment.  

           2)Existing law  establishes adult education, a voluntary program 
            that provides courses in 10 instructional areas including 
            basic skills, English as a second language, CTE, home 
            economics, and parent education. Current law allows school 
            districts, county offices of education, community colleges, 
            and other organizations to establish adult education programs. 
            The state supports these adult schools based on average daily 
            attendance (ADA), which equals 525 hours per unit of classroom 
            seat time. According to the SDE, there were 320 adult 
            education programs serving approximately 1.2 million students 
            in 2008-09. Likewise, SDE reports adult programs earned 
            approximately 250,000 ADA during this time period.  


            The federal Adult Education and Family Literacy Act, enacted 
            as Title II of WIA, provides federal funding to supplement 
            adult education programs in both public and private non-profit 
            institutions. These funds supplement adult basic education, 
            English as a second language, and adult secondary education 
            programs. The goal of this program is to enable adults to 
            become more employable, productive, and responsible citizens 
            through literacy.  According to SDE, approximately 235 
            agencies received $81.6 million in federal Title II WIA funds. 
             

            The WIA was established by federal law in 1998 for purposes of 
            job training and workforce development. It requires states to 
            form state workforce investment boards, and requires governors 
            to designate local workforce investment areas and oversee 
            local workforce investment boards for purposes of coordinating 
            and distributing job training funds. 









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            In California WIA funds are provided through the state CWIB 
            and 49 local boards.  The state board receives 15% of the 
            state's WIA allocation, and the remaining 75% is allocated to 
            the local boards.  CWIB works with the governor to provide 
            policy guidance on how to spend these funds.  Likewise, each 
            board determines how they spend their funds in accordance with 
            the workforce needs of their areas.  
           
          3)Adult education funding part of categorical flexibility  .  As 
            part of the February 2009 budget package, SB 4 X3 (Ducheny), 
            Third Extraordinary Session, Chapter 12, Statutes of 2009, 
            provided LEAs with unprecedented fiscal and policy flexibility 
            related to over 40 categorical programs, including adult 
            education, between the 2008-09 fiscal year (FY) to the 2012-13 
            FY. Specifically, any LEA that received funding for specified 
            categorical programs, including adult education, in the 
            2008-09 FY is authorized to use this funding for any other 
            educational purpose until the 2012-13 FY. The LEA may choose 
            to continue operating the categorical program that it received 
            funding for or redirect it for any other educational purpose 
            it deems appropriate. SB 70 (Committee on Budget and Fiscal 
            Review), Chapter 7, Statutes of 2011, extended this 
            flexibility until the 2014-15 FY.  



           Analysis Prepared by  :    Kimberly Rodriguez / APPR. / (916) 
          319-2081