UPDATE FROM THE CALIFORNIA STATE CAPITOL Amy Blumberg & Stephen Baiter April 24, 2014

WELCOME  Lots of activity in the Workforce Development area in the State Capitol right now  Critical policy and budget decisions are being made  Up to us to weigh in and have our voice heard

AGENDA  Introductions  Political Landscape  California’s Fiscal Outlook  Legislative Landscape  CWA’s Legislative Agenda  Top 10 Legislation  Call to Action – How you can stay informed and weigh in  Questions and Answers

Introductions  Name, Organization, Location  What would you like to get out of the presentation OR  Briefly share a current project you are working on that you are excited about

Amy Blumberg  Lobbyist for CA Workforce Association since 2012  Rose & Kindel/Grayling since 2004  Capitol staff for 5 years  Specialize in working with associations, grassroots advocacy  BA in History, UC Santa Barbara  MPA Univ. of Southern California

Stephen Baiter  Executive Director, Workforce Development Board of Contra Costa County  Chair, Legislative Committee  More than 20 years experience in economic and workforce development  BA Political Science, Boston College  MPA, California State University East Bay

Political Landscape  2014 is an Election Year  Primary Election is on Tuesday, June 3  All Assembly Members are on the Ballot unless they are termed out  Even numbered Senate Seats are on the ballot  Several longtime members of Congress are retiring

Political Landscape continued  State Senate has been distracted by FBI investigations/arrests/convictions of 3 Senators who have been suspended:  Senator Ron Calderon (D-Montebello)  Senator Rodrick Wright (D-Los Angeles)  Senator Leland Yee (D-San Francisco)

Democratic Supermajority  State Senate –Dems no longer have supermajority  28 Democrats (3 suspended)  12 Republicans  State Assembly – Dems narrowly have 2/3  55 Democrats  24 Republicans  1 vacancy

Assembly races  Will Democrats be able to retain supermajority?  Competitive seats  32 nd AD – Bakersfield –Rudy Salas (D)  36 th AD – Antelope Valley Steve Fox (D)  44 th AD – Ventura Co. – Jeff Gorell (R)

Assembly races continued  60 th AD – Riverside Co – Eric Linder (R)  65 th AD- Orange County – Quirk- Silva (D)  66 th AD – LA Beach areas – Muratsuchi (D)

Senate Races  Not many competitive races  SD 6 (Sacramento) – Dem vs. Dem  Asm. Richard Pan vs. Roger Dickinson  SB 34 (Orange County)  Former Asm. Jose Solorio (D) vs. Janet Nguyen (R) Orange County Supervisor

Leadership Changes  New Assembly Speaker, Toni Atkins (D-San Diego) will be sworn in on May 12  Asm. Republican Leader Connie Conway is termed out  Senate President Pro Tem Steinberg is termed out  Senator Kevin de Leon (D-Los Angeles) will become the new President Pro Tem late this year

California’s Fiscal Outlook  Much improved since 2011  Addressed $20 billion budget deficit  $151 Billion in General Fund and Special Funds for Budget  $11 Billion more than revised spending level  Proposes $2.3 Billion Reserve

Improved Fiscal Condition  Stock market recovery in 2013  Temporary Tax Revenues from Prop. 30  Recovering economy  Few new ongoing spending commitments by Legislature outside of Prop. 98 (Education)

Governor’s Proposed State Budget  End 2014–15 with $2.3 billion reserve  $9.5 billion Pay Down State Debt :  $11.8 Billion for Proposition 98 (K-14 Education) Above 2013–14 Budget Act Levels  Small increases in the budgets for CCC, CSU and UC  Infrastructure – $815 million one-time funds for deferred maintenance projects  Project operating surplus of $1.7 billion in 2015–16, growing to $2.3 billion in 2017–18

Governor’s Proposed Budget  Allocates $850 million in Cap and Trade revenues to various programs, $250 million for High Speed Rail, $200 million for low emission vehicle program  $618 million for various water related programs  $105 million ongoing increase for the judicial branch

May Budget Revision  Increased revenue forecasted for Governor’s May Budget revision (mid May)  Governor is stressing fiscal restraint  Some Legislative Interest in restoring deep cuts to health and human services  Many organizations interested in funding now that fiscal outlook is better  Lots of competing priorities

Busy Legislative Year  2 nd Year of a 2 Year Legislative Session  1 st House Policy Deadline – May 16  1 st House Fiscal Deadline – May 23  House of Origin Deadline – May 30  Primary Election – June 3  Budget Must be passed by June 15

Busy Legislative Year  Deadline for Leg Measures to qualify for November Ballot – June 26  2 nd House Policy Deadline – June 27  2 nd House Fiscal Deadline – August 15  Sine Die is August 31, 2014  Governor has until September 30 to take action on legislation sent to his desk  November 4 – General Election

CWA’s Legislative Agenda  Top 10 List  Monitoring many more bills that impact the workforce development system, customers and businesses  List is a living document

CWA’s Legislative Committee  Meets/conference call monthly  Representatives from across the state  Provide recommendations to the Executive Committee  Give insight on real world impact of legislation

CWA’s Legislative Platform  Document that forms the basis for taking positions on legislation  Support efforts that help facilitate services for adults, dislocated workers, youth  Support incentives for businesses to allow them to invest in and hire staff

CWA’s Legislative Platform continued  Preserve Local control  Oppose cuts in funding that impede ability to provide services  Support increased preparation in schools for students to enter the workforce

Top 10 Legislation  SPONSORED BILLS/BUDGET ITEMS  SUPPORT  SUPPORT IF AMENDED  WATCH

Top 10 Legislation- SPONSORED  Work Based Learning for Out of School Youth and Young Adults  Formerly AB 2615 (Muratsuchi)  Seeks $ 25 million in the State Budget for work based learning for out of school youth and young adults  Public or private sector placement  Competitive grant program administered by the CA Workforce Investment Board  Matching grants are required

Need for funding for Work Based Learning  Unemployment rate for youth and young adults ages is 20.2% the 4 th highest in the nation  High school dropout rate is over 13%  California has not invested in job training for youth since 1999 and it was $1 million in funding for the whole state

What is Work Based Learning?  Academic & career rich work experiences  Ex. Youth Ecology Corps offered in Marin County and Riverside County  Youth Build – construction of homes in conjunction with Habitat for Humanity  Biotech internship in San Diego  LA City & LA County, Marin, Oakland, Orange County, Richmond, San Francisco, San Diego, Sonoma County

Benefits of Work Based Learning  Connects youth back to school to obtain high school diploma, GED, certificate, pursuing 4 higher education  Gets youth and young adults interested in careers  Often leads to full time jobs  Shown to reduce crime rates

Work Based Learning  CWA members placed 15,000 youth in summer youth employment last year  Proposed funding will allow an additional 12,500 youth to participate  Will complement Career Pathways Trust that will benefit in-school youth

Work Based Learning continued  Status: Pending  Engaged with several budget subcommittees  Working with members of Assembly and Senate Budget Committee to try and get funding in the budget  Will have better sense of possibility for funding after May Revise is released

Assembly Budget Committee  27 members 17 Democrats, 10 Republicans  Asm. Nancy Skinner (D-Berkeley) Chair  Asm. Jeff Gorell (R-Camarillo) Vice-Chair  Asm. Al Muratsuchi (D-Torrance) Chair, Asm. Budget Subcommittee on Education Finance  Asm. Reggie Jones-Sawyer (D-Los Angeles) Budget Subcommittee on Public Safety  Asm. Tom Daly (D-Anaheim) Chair, Asm. Budget Subcommittee on State Administration

Senate Budget Committee  16 members, 11 Democrats, 5 Republicans  Senator Mark Leno (D-San Francisco) Chair  Senator Jim Nielsen (R-Gerber) Vice Chair  Senator Marty Block (D-San Diego) Chair Budget Subcommittee on Education  Senator Richard Roth (D-Riverside) Chair, Budget Subcommittee on State Administration  Senator Loni Hancock (D-Berkeley) Chair, Subcommittee on Corrections & Public Safety

Top 10 List - SUPPORT BILLS  AB 2060 (V.M. Perez)  AB 2148 (Mullin)  AB 1920 (Campos)  AB 2308 (Stone)  AB 2235 (Buchanan)

AB 2060 (V.M. Perez) Supervised Population Workforce Training Grant Program  Grant program for job training for recently reduced prisoners administered by CWIB  Requires matching funds  Counties are eligible to apply  Requesting amendments to allow LWIBs to be able to apply for grants or require counties to partner with LWIBs to deliver job training services

AB 2060 (V.M. Perez) continued  Status: Hearing in Asm. Jobs Committee on 4/29  Sponsor: Policy Link  Position: Support

AB 2148 (Mullin) Annual Workforce Metrics Dashboard  Requires CWIB to assist the Governor in developing an annual report card that measures the state’s human capital investments in workforce development, credential and degree attainment and wage gain outcomes of workforce education and training programs  Status: Hearing in Asm. Labor Committee on 4/23  Position: Support  Sponsor: CA Edge Coalition

AB 2148 (Mullin) continued  Uses existing reporting information  Allows Adult Education to collect Social Security numbers so that also participate in sharing data/outcomes

AB 1920 (Campos) Board of State and Community Corrections  Requires that the services provided by the Board of State and Community Corrections include job training and employment opportunities and the target population include at-risk youth.  Position: Support  Sponsor: Youth Build

AB 2308 (Stone) Prisoners: ID cards  Requires the Department of Corrections to ensure that all inmates released from state prisons have valid identification cards.  Basic item necessary for employment  Status: In the Asm. Appropriations Committee  Position: Support

AB 2235 (Buchanan) K-16 Public School Facilities Bond Act  Places 2014 School Bond on the November 3 ballot to provide aid to school districts, county superintendents of schools, county boards of education, charter schools, the California Community Colleges, UC, Hastings Law School, and the CSU to construct and modernize education facilities

AB 2235 (Buchanan) K-16 Public School Facilities Bond Act continued  Status: Hearing in Asm. Higher Ed Committee on 4/22  Position: Support, will generate jobs

Top 10 List- SUPPORT IF AMENDED  SB 923 (Pavley)  SB 1028 (Jackson)

SB 923 (Pavley) Educational Apprenticeship Innovation Act  Enacts the Educational Apprenticeship Innovation Act.  Awards a competitive grant, the Educational Apprenticeship Innovation Prize to school districts, county offices of education, charter schools, and community college campuses to promote apprenticeships, pre- apprenticeships, and career pathways among local educational agencies, institutions of higher education, and businesses of importance to local economies.

SB 923 (Pavley) Education Apprenticeship Innovation Act continued  Status: Hearing in Senate Appropriations Committee on 4/28.  Position: Support if Amended  Suggested amendments to have LWIBs and business involved selection committee, tap into WIB resources and not create duplicative committees/structures

SB 1028 (Jackson) Cal Grant C: long term unemployed  Sets aside 2,500 Cal Grant C awards for the long-term unemployed, increases amount of grant, creates flexibility in how funds are spent

SB 1028 (Jackson) Cal Grant C: long term unemployed Requires the CA Student Aid Commission to:  prioritize occupational training programs and industry clusters  develop a plan to publicize the grant award program to long-term unemployed  make students receiving awards aware of job search and placement services available through WIBs.

SB 1028 (Jackson) continued  Status: Hearing in Sen. Education Committee on 4/30.  Position: Support if Amended  Requesting amendment to get clarification that Cal Grant C count as leveraged funds under SB 734 require

TOP 10 LIST - WATCH BILLS  AB 1543 (Holden)  AB 1569 (Rodriguez)  AB 1797 (Rodriguez)  AB 1910 (Gray)

Top 10 List - WATCH  AB 1950 (Campos)  AB 2261 (Gorell)  AB 2670 (Medina)  SB 923 (Leno)

AB 1543 (Holden)  Requires that an employer ordering a mass layoff, relocation or termination provide a written notice to GO-BIZ.  Requires EDD to post the notice on its website  Status: In Asm. Appropriations Committee  Position: Watch

AB 1569 (Rodriguez)  Allows a $2000 tax credit beginning on or after January 1, 2016, - January 1, 2020 against taxes imposed under tax law for each registered apprentice trained by the taxpayer in the taxable year.  Status: In Asm. Revenue & Taxation Committee  Position: Watch

AB 1797 (Rodriguez)  Requires CWIB, in consultation with the Division of Apprenticeship Standards, to identify “earn and learn” job training opportunities in allied health professions  Develop ways to identify, assess, and prepare a pool of qualified candidates seeking to enter “earn and learn” job training models.

AB 1797 (Rodriguez)  The bill would require CWIB on or before December 1, 2015, to submit a report with findings and recommendations.  Status: Hearing in Asm. Labor Committee on 4/23.  Position: Watch

AB 1910 (Gray)  Require the CWIB to establish the San Joaquin Valley Regional Economic Planning and Preparedness Council  Identify and develop the framework, funding, strategies, programs, partnerships, to address the growing need for a highly skilled and well-trained workforce to meet the needs of the San Joaquin Valley’s emerging technology and energy sector.

AB 1910 (Gray)  Report to the Legislature, by April 1 each year, on the status of its activities and its development of an oil and natural gas workforce strategic initiative.  Status: Asm. Jobs Committee on 4/22  Position: Watch

AB 1950 (Campos)  Creates the Career Education Incentive Program within the Department of Education.  Authorizes school districts, county offices of education, charter schools, and community college districts to establish career education consortia.  Appropriates $250 million in the Budget Act for the Career Education Incentive Program to provide one-to-one matching grant funding to eligible career education consortia.

AB 1950 (Campos) continued  Status: Hearing in Asm. Education Committee on 4/30.  Position: Watch

AB 2261 (Gorell)  Creates a Veterans Services and Workforce Development Division within the Department of Veterans Affairs to develop a Transitional Assistance Program, oversee the Local Veterans Employment Representatives (LVER) and Disabled Veterans Outreach Program (DVOP).

AB 2261 (Gorell) continued  Staff to be transferred to the Veterans Services and Workforce Division.  Heads of a state agency or department must report to the Secretary of Veterans Affairs when a new program is established that may assist veterans.

AB 2261 (Gorell) continued  Status: In Asm. Veterans Affairs Committee  Position: Watch

AB 2670 (Medina) Small Business Technical Assistance Act of 2014  GO-Biz to serve as the lead state entity for overseeing the state’s participation with the federal Small Business Development Center Program.  Allows GO-Biz or any other state entity to contract with an Administrative Lead Center established under the federal program.

AB 2670 (Medina)  Status: Approved in the Asm. Jobs Committee on 4/22.  Position: Watch

SB 935 (Leno) Minimum wage  Increases the minimum wage, on January 1, 2015, to $11 per hour, on January 1, 2016, to not less than $12 per hour, and on and after January 1, 2017, to not less than $13 per hour.  The bill would further require the automatic adjustment of the minimum wage annually thereafter, to maintain employee purchasing power. The automatically adjusted minimum wage adjustment would be calculated using the California Consumer Price Index

SB 935 (Leno) Minimum wage  Status: On Sen. Appropriations Suspense File  Position: Watch

Call to Action How to stay informed:  Check out website for legislative updates  Get involved in the Legislative Committee  Schedule a legislative visit with your legislator, discuss the need for funding for work based learning for out of school youth and young adults

Call to Action continued  Respond to requests for information about how legislation would impact your area, # of youth you work with each year, etc.  Quickly Write letters of support or opposition for work based learning funding or other proposals  Participate in Day at the Capitol

Legislative ideas for 2015?  It’s never to early to start thinking about proposals for 2015  Legislative solution to problem you come across?  Inefficiencies that can be addressed?  Current law that impedes ability to provide services?

Questions?

Thank You Amy Blumberg  ayling.com ayling.com  Stephen Baiter  unty.us unty.us  (925)