SENATE BILL REPORT

SB 5560

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.

Background: The Job Skills Program (Program), created in 1983, provides short-term training customized to meet businesses' specific needs. The Program awards grants to licensed educational institutions that work in partnership with business and industry to deliver training to new or current employees at the worksite or in a classroom. Financial support from business and industry must be equal to or greater than the amount of the grant, and may be in the form of cash or in-kind resources.

The Program was funded at $2.725 million from the general fund for fiscal year 2012 and fiscal year 2013 of the biennium, for a total of $5.5 million. The budget proviso requires the State Board of Community and Technical Colleges (SBCTC) to make an annual report to the Legislature regarding the implementation of the Program, listing the scope of grant awards, the distribution of funds by educational sector and region, and the results of the partnerships supported by the funds.

The Program is administered by SBCTC. SBCTC must work collaboratively with the Workforce Training Customer Advisory Committee to assure that the grant program meets certain statutorily established criteria. In addition, the Program must give priority to applications that:

propose training of transferable skills;
coordinate with other cluster-based programs;
propose industry-based credentialing;
propose increased capacity for educational institutions that can be available to industry and students beyond the grant recipients; and
are from firms in strategic industry clusters as identified by the state or local areas.

Summary of Bill (Recommended Substitute): The Job Skills Program account is created in the state Treasury. All receipts from appropriations must be deposited into the account, and money may be spent only after appropriation. Expenditures from the account may be used only for the Program.

A non-appropriated account called the Job Skills Program Trust account is also created. All receipts from gifts, grants, or endowments from public and private sources must be deposited into this account. Expenditures from the account may be used only for the Program. Only the executive director of SBCTC or their designee may authorize expenditures from the trust account.

The commitment of financial support from businesses with an annual gross business income of $500,000 or more must be equal to or greater than the amount of the requested job skills grant. The commitment of financial support from businesses with an annual gross income of less than $500,000 must be equal to the trainees' salaries and benefits while in training.

The Program gives priority to, but not exclusively to, the following types of applications:

those with training that provides college credit or leads to a recognized industry credential;
those from consortia of colleges; and
those from consortia of firms.

Beginning January 1, 2014, and every year thereafter, SBCTC must provide the Legislature and the Governor with a report describing the activities and outcomes of the Program.

Staff Summary of Public Testimony (Higher Education): PRO: This is a solid program. When the program went through the lean process we saw there were areas that could be improved. The program is a large convenience to businesses. Funds can be rolled over. Small businesses are significantly under-represented. The changes in this bill will help these small businesses participate. No extra funding needed. Carlile Inc. went through this program with great results. Carlile Inc. adopted a lot of the training from the program. Carlile Inc. appreciated this program because it does not have a lot of extra profits to improve training or skills. Impact Washington partners with the program and it allows them to approach smaller companies. The cost match is a challenge for smaller companies. These are a couple of examples of the program helping companies. The program must be finished within a certain timeframe. Impact Washington partners with other agencies such as the Department of Commerce. The program is a benefit used by companies to recruit new employees.