BILL ANALYSIS �
SB 1402
Page 1
SENATE THIRD READING
SB 1402 (Lieu)
As Amended August 20, 2012
Majority vote
SENATE VOTE :38-0
HIGHER EDUCATION 8-0 ECONOMIC DEVELOPMENT 6-0
-----------------------------------------------------------------
|Ayes:|Block, Olsen, Brownley, |Ayes:|V. Manuel P�rez, Grove, |
| |Fong, Galgiani, Lara, | |Beall, Block, Hueso, |
| |Miller, Portantino | |Morrell |
| | | | |
-----------------------------------------------------------------
APPROPRIATIONS 17-0
-----------------------------------------------------------------
|Ayes:|Gatto, Harkey, | | |
| |Blumenfield, Bradford, | | |
| |Charles Calderon, Campos, | | |
| |Davis, Donnelly, Fuentes, | | |
| |Hall, Hill, Cedillo, | | |
| |Mitchell, Nielsen, Norby, | | |
| |Solorio, Wagner | | |
| | | | |
-----------------------------------------------------------------
SUMMARY : Recasts and revises Education Code provisions
regarding the California Community Colleges (CCC) Economic and
Workforce Development Program (EWDP), and extends the program's
sunset date from January 1, 2013, to January 1, 2018.
Specifically, this bill makes the following modifications to the
EWDP:
1)Adds six principles to the program's mission, including
collaboration with other institutions, making data driven and
evidenced-based funding decisions, and developing strong
partnerships with the private sector.
2)Updates the mission of the EWDP to reflect the need to
implement sector strategies that align with labor markets.
3)Enhances the role of the program's advisory committee to
ensure that funding is responsive to changing local market
SB 1402
Page 2
needs.
4)Specifies minimum program outcome measures to be implemented
by the CCC Chancellor's Office.
5)Requires the Chancellor's Office, by January 1, 2015, to
contract for an independent evaluation of the program's
effectiveness, the findings of which shall be provided to the
Legislature by March 1, 2016.
FISCAL EFFECT : According to Assembly Appropriations Committee,
significant annual General Fund (Proposition 98) cost pressure
to extend the EWDP beyond the current sunset date. Since
2009-10, when significant budget reductions were enacted across
the CCC, annual EWDP funding has totaled $22.9 million. (In
2008-09, funding for the program totaled $46.7 million.)
COMMENTS : The EWDP, first established in statute in 1991, is
intended to advance the state's economic growth and global
competitiveness through education and services that contribute
to continuous workforce improvement, technology deployment, and
business development consistent with the needs of the state's
regional economies. Community colleges and business partners
form consortia to identify regional workforce needs and
priorities, provide assistance to small businesses in the region
through local EWD Centers, and train workers. The partnerships
enable the colleges to develop curricula that address the
training needs of local industry.
The 2010-11 EWDP Annual Report shows that CCCs play an integral
role in helping California build its workforce despite budget
cuts and stagnant economic growth. The report noted that during
the reporting period, 929 people received a job through EWDP,
while an additional 9,475 people were able to retain their job
through EWDP services. A one-time return-on-investment report
conducted by Time Structures, Inc. found that from 2002-2009,
EWDP assisted an average of 41,000 businesses, 107,000 students
and trainees, and placed 4,300 individuals in jobs. The report
revealed that it cost the state of California an average of $589
to train each worker in a highly concentrated one-time course.
Each newly trained worker earned a higher wage, subsequently
paying an additional $450 in state and local taxes over the next
three years. The report indicated that the workers' higher tax
payments returned almost 80% of the state's costs for the
SB 1402
Page 3
training.
According to the author, this bill is necessary to extend the
expiring EWDP sunset and to improve the program's ability to
respond to changing economic conditions, accountability for
investments and performance, integration with career technical
education (CTE) programs.
Analysis Prepared by : Sandra Fried / HIGHER ED. / (916)
319-3960
FN: 0004996