BILL ANALYSIS �
Senate Committee on Labor and Industrial Relations
Senator Ben Hueso, Chair
Date of Hearing: June 25, 2014 2013-2014 Regular
Session
Consultant: Alma Perez-Schwab Fiscal:Yes
Urgency: No
Bill No: AB 2148
Author: Mullin
As Introduced/Amended: June 19, 2014
SUBJECT
Workforce development: annual workforce metrics dashboard
KEY ISSUES
Should the Legislature require that the California Workforce
Investment Board (CWIB) develop a workforce metrics dashboard
that measures the state's investments in workforce development
and its impact on the labor market?
Should this metrics dashboard provide a status report on
credential and degree attainment, training completion and
earnings resulting from an individual's participation in
workforce education and training programs?
Should the Legislature require that the Employment Development
Department aggregate specified data regarding demographics,
earnings, and industry of employment to assist the CWIB in the
production of this metrics dashboard?
ANALYSIS
The federal Workforce Investment Act (WIA) of 1998 provides
funding for activities and programs for job training and
employment investment in which states may participate, including
work incentive and employment training outreach programs.
Following passage of the federal WIA, the state established the
California Workforce Investment Board (CWIB) and charged the
board with the responsibility of developing a unified, strategic
planning process to coordinate various education, training, and
employment programs into an integrated workforce development
system. There are 49 Local WIBs and within each local workforce
area there are one or more One-Stop Centers, which provide
access to career information, counseling, funding for education,
training and supportive services.
Among its responsibilities, the State Board must do the
following:
1) Develop the State Workforce Investment Plan;
2) Develop guidelines for continuous improvement and
operation of the workforce system;
3) Develop and modify allocation formulas for the
distribution of funds;
4) Assist the Governor in the alignment of the education
and workforce investment system to the needs of the state's
current and future workforce;
5) Certification and re-certification of local WIBs.
This Bill would additionally require that the California
Workforce Investment Board assist the Governor in the
development of an annual workforce metrics dashboard that
measures the state's investments in workforce development to
better understand their impact on the labor market.
Specifically, this bill would:
1) Require the CWIB to produce this metrics dashboard using
existing available data and resources that are currently
collected and accessible to state agencies.
2) Require the CWIB to convene workforce program partners
to develop a standardized set of inputs and outputs for the
workforce metrics dashboard and outlines that the dashboard
shall do all of the following:
a. Provide a status report on credential and
degree attainment, training completion, and
participant earnings from workforce education and
training programs. The CWIB shall publish and
Hearing Date: June 25, 2014 AB 2148
Consultant: Alma Perez-Schwab Page 2
Senate Committee on Labor and Industrial Relations
distribute the final report.
b. Provide demographic breakdowns, to the extent
possible, that include race, ethnicity, age, gender,
veteran status, wage and credential degree outcomes
and information on workforce outcomes in different
industry sectors.
c. Measure, at a minimum and to the extent
feasible within existing resources, the performance of
specified workforce programs currently operating.
d. Measure participant earnings using
unemployment insurance wage records in California, and
to the extent feasible, in other states.
3) Require that the Employment Development Department
assist the CWIB measure participant earnings by providing
the board with specified earnings data.
4) Authorize the State Department of Education (CDE) to
collect, and keep confidential, the social security numbers
of adults participating in adult education programs to
track and accurately reflect their participation on the
metrics dashboard. However, no individual shall be denied
participation for refusing to provide a social security
number.
5) Specify that the participating workforce programs shall
provide participant data in a standardized format to the
Employment Development Department (EDD).
6) Require the EDD to aggregate the data provided by the
participating workforce programs and report it organized by
demographics, earnings and industry of employment to assist
the CWIB in the production of the workforce metrics
dashboard.
COMMENTS
1. California Workforce Investment Board:
California's Workforce Investment Act allocation from the U.S.
Department of Labor has declined over the years from a high of
Hearing Date: June 25, 2014 AB 2148
Consultant: Alma Perez-Schwab Page 3
Senate Committee on Labor and Industrial Relations
$630 million in 2000-01 to $411 million in 2012-13.
California's WIA dollars are overseen by the 56-member CWIB,
of which 61% of the members represent the private sector, as
required by federal law. Among its primary duties, the CWIB
provides guidance to Local WIBs and is responsible for the
development of a unified, strategic plan to coordinate various
education, training, and employment programs that result in an
integrated workforce development system that supports economic
development. The plan is required to be updated at least
every 5 years in order to address the state's changing
economic, demographic, and workplace needs.
2. Need for this bill?
California has numerous state and local entities providing
academic and vocational education, workforce training, and
economic development activities. In recent years there has
been an increased emphasis at both the federal and state level
on integrating all these programs to the extent possible,
encouraging strategic planning and establishing methods to
measure performance and enhance accountability. Unfortunately,
although the various programs may measure individual outcomes,
there is currently no cross-system data collection effort in
place to measure and assess the effectiveness of these
programs and/or return on investments made. With this bill,
the author seeks to use currently collected data to obtain a
simple, useful snapshot of the collective impact of many of
the state's key workforce programs. The author believes this
annual snapshot would provide practitioners and policymakers
with data that would assist them in making informed investment
decisions.
3. Proponent Arguments :
According to the author, over the past decade, California's
major workforce development programs have begun working
together to improve participant outcomes and focus efforts
towards industries that provide individuals with career
opportunities. Unfortunately, the author argues, an important
missing link in reaching this goal is cross-system data
collection that provides evidence of the aggregate
effectiveness of these programs. According to proponents,
Hearing Date: June 25, 2014 AB 2148
Consultant: Alma Perez-Schwab Page 4
Senate Committee on Labor and Industrial Relations
instead of producing a combined report, programs are producing
their own individual reports in silos, creating a fractured
data reporting system. The goal of this bill is to bring these
separate reports together using currently collected data to
obtain a simple, useful snapshot of the collective impact of
the state's key workforce programs.
Proponents are also supportive of the provision that
authorizes the California Department of Education (CDE) to
confidentially collect social security numbers for adults
participating in adult education programs, a provision they
believe will help to better align local programs, measure
program effectiveness, and improve on program design and
delivery. Overall, proponents argue that the information to be
obtained through this bill would allow the state to measure
program effectiveness, improve program design and delivery and
improve alignment with the needs of industry.
4. Opponent Arguments :
None received.
5. Prior and Related Legislation :
SB 118 (Lieu) of 2013: Chaptered
This bill required the CWIB to incorporate specific principles
into the state's strategic plan that align the education and
workforce investment systems to the needs of the 21st century
economy. Additionally, the bill encouraged state and local
WIBs to collaborate with other public and private institutions
in adopting local and regional training and education
strategies across all delivery systems and making investments
outcome oriented and accountable, measuring results through
program completion, employment, and earnings.
SB 1022 (Huff) of 2014: Pending in Assembly Higher Education
Committee
This bill would require the California State University, and
requests the University of California, to provide labor market
prematriculation and outcome information on their graduates,
as specified, and to make this information publicly available
on their websites.
Hearing Date: June 25, 2014 AB 2148
Consultant: Alma Perez-Schwab Page 5
Senate Committee on Labor and Industrial Relations
SB 1141 (Hancock) of 2014: Pending in Assembly Insurance
Committee
This bill would require the director of EDD to permit the
Department of Corrections and Rehabilitation to obtain
quarterly wage data of former inmates who have been
incarcerated within the prison system in order to assess the
impact of rehabilitation services [or the lack of] on the
employment and earnings of former inmates.
SUPPORT
California Budget Project
California EDGE Coalition
California Hospital Association
California Labor Federation, AFL-CIO
California Manufacturing and Technology Association
California Workforce Association
Career Ladders Project for the California Community Colleges
National Council of La Raza
Policy Link
State Building and Construction Trades of California
Veterans Caucus of the California Democratic Party
OPPOSITION
None received
Hearing Date: June 25, 2014 AB 2148
Consultant: Alma Perez-Schwab Page 6
Senate Committee on Labor and Industrial Relations