HOUSE BILL REPORT
ESHB 1846
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. |
As Passed House:
March 7, 2011
Title: An act relating to the aerospace training student loan program.
Brief Description: Creating the aerospace training student loan program.
Sponsors: House Committee on Labor & Workforce Development (originally sponsored by Representatives Eddy, Smith, Morris, Probst, Sells, Springer, Warnick, Liias, Stanford and Maxwell).
Brief History:
Committee Activity:
Labor & Workforce Development: 2/15/11, 2/16/11 [DPS];
Education Appropriations & Oversight: 2/18/11, 2/21/11 [DPS(LWD)].
Floor Activity:
Passed House: 3/7/11, 80-16.
Brief Summary of Engrossed Substitute Bill |
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HOUSE COMMITTEE ON LABOR & WORKFORCE DEVELOPMENT |
Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 9 members: Representatives Sells, Chair; Condotta, Ranking Minority Member; Shea, Assistant Ranking Minority Member; Fagan, Green, Kenney, Moeller, Roberts and Warnick.
Minority Report: Do not pass. Signed by 4 members: Representatives Reykdal, Vice Chair; Miloscia, Ormsby and Taylor.
Staff: Jill Reinmuth (786-7134).
HOUSE COMMITTEE ON EDUCATION APPROPRIATIONS & OVERSIGHT |
Majority Report: The substitute bill by Committee on Labor & Workforce Development be substituted therefor and the substitute bill do pass. Signed by 17 members: Representatives Haigh, Chair; Probst, Vice Chair; Anderson, Ranking Minority Member; Dammeier, Assistant Ranking Minority Member; Dahlquist, Frockt, Hargrove, Hope, Maxwell, Nealey, Orwall, Rolfes, Santos, Seaquist, Sells, Short and Stanford.
Minority Report: Do not pass. Signed by 1 member: Representative Reykdal.
Staff: Trista Zugel (786-7157).
Background:
The Washington Aerospace Training and Research Center was established in 2010 and is located on Paine Field in Everett. Offerings include customized training programs, as well as certificate programs. This center is operated by Edmonds Community College pursuant to a contract with the Aerospace Futures Alliance.
The Spokane Aerospace Technology Center is scheduled to open in 2011 and will be located at the Spokane International Airport. This center will offer various training programs, including the Spokane Community Colleges' aviation maintenance program.
The Aerospace Futures Alliance of Washington (Alliance) is an aerospace association of large and small aerospace companies. The Alliance is a nonprofit corporation.
The Higher Education Coordinating Board provides strategic planning, coordination, monitoring, and policy analysis for higher education. It also administers various state and federal financial aid programs.
Summary of Engrossed Substitute Bill:
The Aerospace Training Student Loan Program (Loan Program) for eligible students at certain aerospace training or educational programs is established.
An aerospace training or educational program (training program) is a course in the aerospace industry offered by the Washington Aerospace Training and Research Center or the Spokane Aerospace Technology Center. The training program must have an advisory committee that includes at least one member representing aerospace employers and at least one member from organized labor representing aerospace workers.
An eligible student is one who is registered for a training program. An eligible student also must be making satisfactory progress as defined by the training program, and have a declared intention to work in the aerospace industry in Washington.
The Higher Education Coordinating Board (Board) is required to administer the Loan Program, which must be designed in consultation with representatives of aerospace employers, aerospace workers, and the training programs.
The Board has the following powers and duties:
to select and screen eligible students to receive student loans, in coordination with representatives of the training programs;
to consider an eligible student's financial need;
to issue low-interest student loans;
to establish an annual loan limit equal to training costs minus other financial aid;
to define repayment terms;
to collect and manage repayments;
to solicit and accept grants and donations for the program; and
to adopt rules.
The Board is authorized to award student loans to eligible students from available funds. The student loans may not exceed one year of tuition and fees.
The Aerospace Training Student Loan Account (Account) is created. Appropriations are required for administrative costs, but not for student loans. All moneys received for the Loan Program must be deposited into the Account. The Account must be self-sustaining. Expenditures may be used solely for student loans and administrative costs.
The Board, in collaboration with the training programs, must submit reports regarding the Loan Program to the Governor and appropriate legislative committees by December 1 of each year. Annual reports must describe the design and implementation of the Loan Program. Annual reports also must include information about applicants, participants, and jobs in which participants are placed.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.
Staff Summary of Public Testimony (Labor & Workforce Development):
(In support) The training program brings people into living wage jobs relatively quickly. Students do not qualify for the usual sources of financial aid, because of the program's short duration. Any time someone can go from unemployment to a living wage within a matter of weeks, it should be encouraged.
The Washington Aerospace Training and Research Center in Everett is strong, and another will be up and running soon in Spokane. There is also a facility in Renton. These centers provide training for good paying jobs, and 85 percent of our graduates have jobs. These centers will help us address the aging of the aerospace workforce. As thousands retire in the next four or five years, there will be a skilled workforce ready to go. The short-term student loan program is crucial to the success of the training centers.
The aerospace training centers show what can be achieved when industry and academia partner. The centers provide solutions to problems facing the industry. They help link newly-skilled workers find jobs. They help the industry maintain a highly-skilled and competitive workforce. The industry needs community and technical college graduates with certificates in many different disciplines. The goal is to align certificates that meet needs for basic as well as technical skills across industry boundaries. The typical graduate has spent three to four months in training, and then has acquired the skills needed for entry into the industry.
The aerospace training centers are concerned with industry needs. Small suppliers and others need to find employees who are trained and ready to hit the floor. This bill would provide money for students who would not otherwise have the means.
(With concerns) Despite the fact that a highly-skilled workforce is the chief competitive advantage in aerospace in this global economy, the aerospace training centers concentrate on short-term training. This training is merely the beginning of the skill set needed in the industry. It does not build towards a career or a degree. It provides a temporary benefit for the industry, but it should also be a benefit to the workers.
The union has asked to be a part of the board at the aerospace training centers, but has not yet been able to achieve that. The state has a tradition of working with partners in industry, government, and labor, but labor has no role in this process.
There are concerns about selection standards and how they are set. There are also concerns about the use of public dollars for training. Given that there are 22,000 students in community and technical college programs that cannot receive State Need Grants, this does not seem to be the right time to appropriate public dollars for this loan program.
(Opposed) None.
Staff Summary of Public Testimony (Education Appropriations & Oversight):
(In support) There is a huge demand for aerospace workers. The current training program cannot graduate students fast enough. Those students who cannot afford the $2,500 fee now cannot get into the program. Traditional student loan programs are for those who are in a program for more than a semester and so these students do not qualify. This bill is not an appropriations bill, it is a framework bill. It sets up an account and a structure for loans and loan repayment. We are looking at several options to provide the initial funding for the program.
(Opposed) None.
Persons Testifying (Labor & Workforce Development): (In support) Representative Eddy, prime sponsor; Linda Lanham, Aerospace Futures Alliance; Michael Greenwood, Boeing; and Stephanie Davis, Diversified.
(With concerns) Larry Brown, International Association of Machinists and Aerospace Workers District Lodge 751.
Persons Testifying (Education Appropriations & Oversight): Trent House, Aerospace Futures Alliance.
Persons Signed In To Testify But Not Testifying (Labor & Workforce Development): None.
Persons Signed In To Testify But Not Testifying (Education Appropriations & Oversight): None.