BILL ANALYSIS �
AB 1910
Page 1
GOVERNOR'S VETO
AB 1910 (Gray)
As Amended August 18, 2014
2/3 vote
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|ASSEMBLY: |69-2 |(May 23, 2014) |SENATE: |32-0 |(August 20, |
| | | | | |2014) |
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|ASSEMBLY: |68-1 |(August 22, | | | |
| | |2014) | | | |
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Original Committee Reference: J., E.D. & E.
SUMMARY : Establishes the San Joaquin Valley Regional Economic
Planning and Preparedness Council (SJVREPPC) to develop an oil
and natural gas workforce strategic initiative to meet the
workforce needs of the San Joaquin Valley's expanding energy
economy. The SJVREPPC is comprised of current California
Workforce Investment Board (CWIB) members. Other state
agencies, higher education institutions, and industry
representatives, as well as philanthropic and nongovernmental
groups may serve as consultants to the SJVREPPC. The SJVREPPC
is required to report annually on the status and outcome of its
activities.
The Senate amendments specify an additional member of the
SJVREPPC.
EXISTING LAW establishes the CWIB, comprised of members
appointed by the Governor and the appropriate presiding
officer(s) of each house of the Legislature. The CWIB is
responsible for assisting the state in meeting the requirements
of the federal Workforce Investment Act of 1998 (WIA), as well
as assisting the Governor in the development, oversight, and
continuous improvement of California's workforce investment
system.
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FISCAL EFFECT : According to the Senate Appropriations
Committee, implementation of this measure will result in
$110,000 in ongoing costs to the CWIB. While some of these
moneys may come from federal funds, the analysis notes that
challenging federal budget climate may require the state to
provide some General Fund dollars in the out-years.
COMMENTS : This bill calls for the establishment of a special
council within the CWIB which would be tasked with the
development of a strategy to meet the workforce training needs
of San Joaquin Valley oil industry. The SJVREPPC would work in
partnership with the San Joaquin Valley Partnership and other
public and private stakeholders.
In deliberating on the merits of the measure, Members may wish
to consider the current economic challenges facing the San
Joaquin Valley and the opportunities that energy related jobs
could provide. Below is a brief discussion of these issues, the
policy committee analysis includes a more comprehensive
discussion.
The San Joaquin Valley: For the past several decades, the San
Joaquin Valley has been one of the fastest growing regions in
the nation. Fueled by rising housing prices in the Bay Area and
lower land values in the San Joaquin Valley, the population
rapidly expanded without similar levels of economic growth.
Even prior to the recession, poverty rates within the San
Joaquin Valley were substantially higher that the rest of the
state and the nation; 22%, 13%, and 12% respectively. And,
while other regions were recovering from the recession, 50% of
the population in the San Joaquin Valley lived in poverty in
2012, as compared to 35% for the statewide average. Per capita
income also lagged with $31,533 per household income within the
region, as compared to the statewide rate of $44,550. One of
the region's largest challenges lies in lack of education and
training of the working age population. The chart below shows
that 30% of working age population has less than a high school
education and among Latinos the percentage is higher with nearly
half (48%) not completing high school or receiving some sort of
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certificate.
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| Educational Attainment by Race and Ethnicity |
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|----------------+-----------+-----------+-----------+-----------|
| | Less than | High | Some |Bachelor's |
| | High | School, |College or | Degree or |
| | School | GED, or |Associates | Higher |
| | |Alternative| Degree | |
| | | | | |
| | |Certificate| | |
| | | | | |
|----------------+-----------+-----------+-----------+-----------|
|Hispanic and | 48% | 24% | 22% | 6% |
|Latino | | | | |
|----------------+-----------+-----------+-----------+-----------|
|Multiple and | 43% | 24% | 24% | 8% |
|Other | | | | |
|----------------+-----------+-----------+-----------+-----------|
|Black or | 19% | 27% | 41% | 13% |
|African | | | | |
|American | | | | |
|----------------+-----------+-----------+-----------+-----------|
|White | 12% | 28 % | 38% | 23% |
|----------------+-----------+-----------+-----------+-----------|
|Asian | 25% | 19% | 26% | 30% |
|----------------+-----------+-----------+-----------+-----------|
|Regional Total | 30% | 25% | 30% | 15% |
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| Source: 2013 Economic Summit Briefing Book for the San Joaquin |
|Valley |
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Already one of the key industries in the San Joaquin Valley, the
petroleum industry is continuing to grow. Production within the
San Joaquin Valley accounts for 74% of all oil and 65% of all
gas production in California. The petroleum industry, with its
AB 1910
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related industries, supports 52,271 jobs (3.1% of all jobs) in
the San Joaquin Valley, and has an annual payroll of $4.08
billion. The industry generates $23.6 billion in sales for
businesses located in the San Joaquin Valley, representing 10%
total sales. Estimated annual taxes generated by the petroleum
industry in the San Joaquin Valley are $364.9 million in sales
taxes and $386 million in property taxes.
In the future, job gains range between 2,151 and 34,485.
Without a targeted workforce program for the residents of the
San Joaquin Valley, a majority of these new jobs could go to
people outside the region. This bill calls on the state to
facilitate the development of a comprehensive education and
workforce training program to leverage the economic
opportunities provided by the oil industry to benefit the people
of the Valley.
GOVERNOR'S VETO MESSAGE :
This bill would require the California Workforce
Investment Board to establish the San Joaquin
Valley Regional Economic Planning and
Preparedness Council to develop an oil and
natural gas workforce strategic initiative and
report its activities to the legislature by April
1 each year.
The state has a number of programs in place for
improving San Joaquin Valley's workforce skills:
the "SlingShot Program" and the California
Partnership for the San Joaquin Valley. The
SlingShot Program was created in 2014 to
accelerate income mobility by encouraging
business, workforce development and education
leaders to formulate strategies to address
employment challenges at the regional level. The
California Partnership for the San Joaquin Valley
was founded in 2005 as a public-private
partnership focused on improving the region's
economic vitality and quality of life for its
residents.
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I continue to believe that initiatives such as
the one proposed in this bill should be driven at
the regional level through consensus among
industry, labor, regional economic development
organizations, local workforce investment boards,
and local governments.
Analysis Prepared by : Toni Symonds / J., E.D. & E. / (916)
319-2090
FN: 0005620