| Washington State House of Representatives Office of Program Research |
BILL ANALYSIS |
| Higher Education Committee | |
2SSB 5743
This analysis was prepared by non-partisan legislative staff for the use of legislative members in
their deliberations. This analysis is not a part of the legislation nor does it constitute a
statement of legislative intent.
Brief Description: Linking economic clusters and quality management practices to customized training.
Sponsors: Senate Committee on Ways & Means (originally sponsored by Senators Kastama, Kilmer and Shin).
Brief Summary of Second Substitute Bill |
|
|
Hearing Date: 3/19/07
Staff: Jennifer Thornton (786-7111).
Background:
Job Skills Program
The Job Skills Program (JSP), created by the Legislature in 1983, is a state-supported program
that provides customized training for employers. The JSP delivers training to new hires or
current employees at their work-site or in a classroom. The Workforce Training and Education
Coordinating Board (WTECB) found in 2004 that training through the JSP was associated with a
10 percent increase in worker's earnings.
The JSP is administered by the State Board for Community and Technical Colleges (SBCTC),
and businesses contribute a dollar-for dollar cash or in-kind match. The JSP supports areas with
new and growing industries, locations where the local population does not have the skills needed
to stay employed, and those regions impacted by economic changes that cause large-scale job
loss. During the current biennium, the state provided $2.95 million for the JSP grants, with an
additional $1 million earmarked for Boeing, for training a total of 2,900 workers. An additional
$3 million in employer requests to train 2,100 workers were not provided due to funding
constraints.
Clusters
A cluster is a geographic concentration of interconnected companies, specialized suppliers,
service providers, firms in related industries, and association institutions (for example,
universities, standards agencies, and trade associations) in particular fields that compete but also
cooperate. A cluster exists when there is a high concentration of such partners within a
geographic region. The existence of an unusually high number of firms and jobs in an industry in
an area generally provides evidence that that area has a comparative advantage over other areas
for that industry.
Washington has a number of workforce development programs administered by different
agencies that have targeted programs to support economic clusters, including:
Summary of Bill:
It is state policy to ensure that skill training programs are closely linked to cluster and industry
specific public investments.
As part of the JSP, the SBCTC is to: (1) develop additional mechanisms for identifying and
outreaching to firms with a strong potential to be globally competitive after participating in the
JSP; and (2) encourage businesses participating in the program to participate in training and
workshops designed to improve company productivity and effectiveness.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.