BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  ACR 119
                                                                  Page  1

          Date of Hearing:   April 22, 2014

                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION
                                 Das Williams, Chair
                 ACR 119 (Muratsuchi) - As Introduced:  March 6, 2014
           
          SUBJECT  :   Community colleges: career technical education.

          SUMMARY  :  Encourages the Chancellor of the California Community  
          Colleges (CCC), in consultation with affected stakeholders,  
          including, but not limited to, experts in the field of career  
          technical education (CTE), business and industry  
          representatives, and faculty, to develop at least three options  
          to address the long-term funding needs of CTE and other  
          workforce and training programs at CCC campuses, in a manner  
          that adequately funds the programs that regions deem valuable to  
          their economies; and, to submit those options to the Legislature  
          before June 1, 2015.  Specifically,  this resolution  :  

          1)Makes numerous declarations and findings, including the  
            following:

             a)   The CCC is the nation's largest system of higher  
               education with 112 colleges that serve more than 2.3  
               million students each academic year; 

             b)   The CCCs play an important role in boosting our state's  
               economy, and provide students with the education, training,  
               and skills necessary to keep our state and nation globally  
               competitive;

             c)   The CCCs offer a broad array of career oriented courses,  
               certificates, and associate degrees through CTE or other  
               workforce and training programs;

             d)   Recent high school graduates, under?employed and  
               unemployed adults, incumbent workers searching for career  
               advancement, veterans, and college graduates seeking  
               retraining can all benefit from CTE and other workforce and  
               training programs;

             e)   A college degree or industry-recognized certificate is  
               the principal pathway to personal economic security;

             f)   After several years of budget cuts during the recession,  








                                                                 ACR 119
                                                                  Page  2

               CCC, CTE, and other workforce and training course offerings  
               have been reduced;

             g)   California has seen cutbacks of more than $500 million  
               in programs that prepare individuals for employment;

             h)   CTE and other workforce programs are often expensive due  
               to the need for smaller class sizes and specialized  
               equipment and facilities;

             i)   Prioritizing existing CTE and other workforce and  
               training resources in major regional industry sectors may  
               help close the skills gap in our state's labor force;

             j)   CTE and workforce programs in the CCCs have lacked  
               adequate long-term funding to meet the needs of today's  
               growing economy; and,

             aa)  Any change to funding for CTE and other workforce and  
               training programs at the CCC requires the enactment of  
               legislation.

          2)Encourages the CCC Chancellor, in consultation with affected  
            stakeholders, including, but not limited to, a) experts in the  
            field of CTE; b) business and industry representatives; and,  
            c) faculty, to develop at least three options to address the  
            long-term funding needs of CTE and other workforce and  
            training programs at CCC campuses, in a manner that adequately  
            funds the programs that regions deem valuable to their  
            economies, and to submit those options to the Legislature  
            before June 1, 2015.

          3)Specifies that it is the intent of the Legislature during the  
            2015-16 Regular Session to address the long-term funding needs  
            of CTE and other workforce and training programs at CCC  
            campuses. 

           FISCAL EFFECT  :   Unknown

           COMMENTS  :    Background  .  According to the March 2014 Centers of  
          Excellence for Labor Market Research report entitled, "Focus  
          2015 - Occupational Employment & Career Technical Education in  
          California", there are more than 18.6 million people in the  
          state's labor force.  As of February 2014, the unemployment rate  
          for California dropped to 8%, a decrease of 1.4% since February  








                                                                  ACR 119
                                                                  Page  3

          of 2103.  Over the 12 month span, the number of employed  
          increased by 233,500 while the labor force overall decreased  
          slightly by approximately 13,000 participants.  The report finds  
          that:  1) there are more than 1.3 million job openings projected  
          for California through 2015, with CTE relevant occupations  
          accounting for over 175,000 jobs; 2) the overall greatest demand  
          for CTE relevant occupational groups will be for postsecondary  
          non-degree awards - with more than 23,000 new jobs and close to  
          45,000 replacement jobs needing this level of preparation; and,  
          3) the projected demand for workers in CTE relevant occupations  
          through 2015 cuts across a variety of community college sectors  
          (which are programs and courses designed to train workers for a  
          specific industry or occupation).

          The Institute for Higher Education Leadership Policy (IHELP)  
          released a report in August 2013 entitled, "Workforce  
          Investments:  State Strategies to Preserve Higher-Cost Career  
          Education Programs in Community and Technical Colleges", which  
          found that California's current funding structure creates a  
          fiscal disincentive to support high-cost programs.  IHELP  
          studied the CTE funding practices of 20 states, which could  
          potentially be adapted to California.  

           Need for the resolution  .  According to the author, "Despite the  
          impact that CCC CTE and workforce development programs have on  
          the state's workforce, California has seen cutbacks of more than  
          $500 million to programs that prepare individuals for employment  
          in recent years." The author argues that with many CTE courses  
          being more expensive on a per-student basis, there is a  
          constraint on maintaining and increasing program offerings that  
          meet the needs of regional economies.  The author states,  
          "Funding for these [CTE] programs are often allocated through a  
          competitive grant process.  As colleges chase specialized grant  
          opportunities, the mission of CTE and workforce development gets  
          shaped by these grants, and prevents the development of a  
          coherent, system wide vision and strategy."
           
          State budget shortfalls  .  Over the span of several years, the  
          state has not been able to support CTE programs.  According to  
          California EDGE Coalition, the limited resources given to the  
          CCC by the state, has led to a 10-year decline in CTE's share of  
          overall system enrollment.  California EDGE Coalition argues  
          that the lack of funding to the CCC by the state, "threatens to  
          undermine the state's ability to meet the need for skilled  
          workers in key and emerging regional industries."  The decline  








                                                                  ACR 119
                                                                  Page  4

          in CTE course offerings translates to CCC students not being  
          able to have access to the courses they need in order to earn a  
          postsecondary non-degree award from the CCC and enter into a CTE  
          relevant occupation.

           Existing efforts and recommendations  .  The Economic and  
          Workforce Development (EWD) program within the CCC Chancellor's  
          Office (CCCCO) exists to bridge the gap between workforce needs  
          and skills training provided by CCC.  The EWD collaborates with  
          employers, organized labor, local communities, community  
          colleges and other educational entities.  The Economic  
          Development Program Advisory Committee and Workforce & Economic  
          Performance Advisory Committee are advisory bodies to the EWD.   
          According to the CCCCO, these advisory committees are in the  
          process of reviewing various options (based on a series of  
          recent reports on CTE, including IHELP's) and making  
          recommendations regarding CTE program funding.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Community College Association for Occupational  
          Education
          California EDGE Coalition
          California Manufactures & Technology Association
          Faculty Association of California Community Colleges
          State Building and Construction Trades Council, AFL-CIO
          Torrance Unified School District

           Opposition 
           
          None on file.
           

          Analysis Prepared by  :    Jeanice Warden / HIGHER ED. / (916)  
          319-3960