BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 923
                                                                  Page  1

          Date of Hearing:   July 2, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    SB 923 (Pavley) - As Amended:  June 17, 2014 

          Policy Committee:                             EducationVote:6-0

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

           SUMMARY  

          This bill establishes the Educational Apprenticeship Innovation  
          Prize (EdPrize) for purposes of promoting apprenticeships,  
          pre-apprenticeships, and career pathways between local  
          educational agencies, institutions of higher education, and  
          businesses of importance to local economies.  Further, this bill  
          requires the Superintendent of Public Instruction (SPI) to  
          distribute EdPrize grants on a competitive basis, pursuant to  
          specified criteria and subject to funding in the annual Budget  
          Act. 

           FISCAL EFFECT  

          Unknown ongoing General Fund /P98 costs, potentially in the  
          millions, for EdPrize grant awards.  

          Funding for the EdPrize is contingent upon funding in the annual  
          Budget Act.  The 2014-15 Budget Act provides $250 million in  
          one-time funding for the Career Pathways Trust (Trust) to  
          provide competitive grant funding for career pathway programs.  
          The implementing statute requires the SPI to give special  
          consideration to several applicants, including EdPrize  
          apprenticeship opportunities. The cost of this bill depends on  
          the number of grants awarded and the amount of each grant  
          provided for EdPrize apprenticeships under the Trust.

          COMMENTS  

           1)Purpose  .  According to the author, the EdPrize is  
            complementary to linked learning and other initiatives  
            associated with the Career Pathways Trust. The EdPrize  
            specifically targets the development of apprenticeships,  








                                                                  SB 923
                                                                  Page  2

            pre-apprenticeships, and other forms of hands-on work-based  
            learning.  The author contends there is a lack of local  
            coordination and state guidance in creating apprenticeships,  
            pre-apprenticeships, and other forms of work-based learning  
            and sees this bill as a way to support youth employment and  
            training.
                      
           2)Career Pathways Trust (Trust)  .  AB 86 (Committee on Budget),  
            Chapter 48, Statutes of 2013, created the Trust and provided  
            $250 million in one-time competitive grant awards to school  
            districts, county superintendents, charter schools, and CCCs  
            to develop career pathway programs.  According to CDE, there  
            were 123 eligible applications totaling $709 million in  
            requested grants, nearly triple the $250 million in available  
            funding.  In May, 2014, CDE announced awards to nearly 40  
            recipients. Grant awards varied from $15 million to $600,000.   
            Grantees have through the 2017-18 fiscal year to expend these  
            funds. 

          The 2014-15 Budget Act provides a second round of funding or the  
          Trust.  The budget includes an additional $250 million for  
          purposes similar to those established under AB 86.  The statute  
          requires the SPI to establish a request for application (RFA)  
          process and determine the process for administering grant  
          awards.  

          Different from the first round of Trust funding, the  
          implementing statute requires the SPI to give special  
          consideration to a number of applicants.  This includes programs  
          that establish or strengthen legal career pathways, programs  
          that include pathways to a baccalaureate degree through  
          California Community Colleges (as proposed under SB 850 of this  
          session) or EdPrize apprenticeships, as proposed by this bill.  


           Analysis Prepared by  :    Misty Feusahrens / APPR. / (916)  
          319-2081