SENATE BILL REPORT

SB 5325

BYSenators Lee, Johnson and Sellar; by request of Governor

Establishing the Washington employment futures program.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 24, 1989; February 24, 1989

Majority Report:  That Substitute Senate Bill No. 5325 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways & Means.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; McMullen, Murray, Smitherman, Warnke, West.

Senate Staff:Jack Brummel (786-7428)

                  February 27, 1989

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, FEBRUARY 24, 1989

BACKGROUND:

A skilled and flexible workforce is recognized as essential to the state's capacity to compete in the world economy.  With reductions in federal funding, the demand for state support for training has grown.

A number of states have adopted a method for funding training programs which relies on the mechanism used by the unemployment insurance trust fund.

SUMMARY:

The Washington Employment Futures Program is established in the Department of Employment Security.  The program includes linkages between the services of the department's job service centers and the employment and training system, and provides for vocational counseling, training, and related services, and improvements to the Labor Market Information Program.  The commissioner shall appoint an advisory board to provide oversight and advice on the use of funds.

The employment futures fund is established to provide the resources for the Employment Futures Program.  Fund contributions are collected by the department from employers at a rate of six one-hundredths of 1 percent of employee wages.  Contributions will be collected from January 1, 1989 to December 31, 1993.  The unemployment insurance tax collected from employers is reduced by an amount equivalent to that collected for the employment futures fund.  An evaluation of program implementation and outcomes will be conducted.

EFFECT OF PROPOSED SUBSTITUTE:

The provisions for appointment of an advisory board are eliminated.  A state Job Training Coordinating Council is created to carry out planning, coordinate family services, assess adequacy of programs, address literacy issues, provide oversight, and make recommendations for distribution of the employment futures fund.  The Governor may transfer planning and oversight functions of other entities to the council.  The council is to assess data on supply, demand, and operation of training programs, training funding needs, and make recommendations for use of employment futures fund by December 1, 1990.  State agencies which offer training services are to submit yearly plans to the council for review prior to final adoption.  Service Delivery Areas and Private Industry Councils are established consistent with the federal Job Training Partnership Act.  A dislocated worker assistance program is to be established by the Employment Security Department.  Employment futures funds will not be used until appropriated by the Legislature.

Appropriation:    $21.1 million to the Department of Employment Security from the employment futures fund

Revenue:    yes

Fiscal Note:      requested

Senate Committee - Testified: Henry Beauchamp, Doug Marshall, AWB (pro); Mike Ryherd, Joint Council of Teamsters (pro); Joan Gaumer, Jobs Coalition (pro); Paul Knox, Economic Development Board (pro); Isiah Turner, Employment Security Department (pro); Dan McConnor, SBCCE (pro); Jeff Johnson, State Labor Council (con); Jeff Greendorfer, California Employment and Training Board