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SPONSOR: |
HEC |
DATE TYPED: |
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HB |
CS/160/aHAFC |
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SHORT TITLE: |
Workforce Training Act |
SB |
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ANALYST: |
Collard/Williams |
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APPROPRIATION
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Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
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FY03 |
FY04 |
FY03 |
FY04 |
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NFI
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See Narrative |
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(Parenthesis
( ) Indicate Expenditure Decreases)
Duplicates SB 418
Relates to HB 392, HB 394, HJM 103, SB 368, SB
370, SB 221 and SB 14
Relates to funding in SB 655
Responses
Received From
New
Mexico Labor Department
Commission
on Higher Education
Economic
Development Department
New
Mexico State Department of Education
SUMMARY
Synopsis
of HAFC Amendment
The House Appropriations and Finance Committee Amendment
adjusts the formula calculation from projected number of students to projected
student credit hours and adds language to require a credit-hour equivalent of
courses normally considered under the tier-2 undergraduate funding level. This amendment addresses some of the CHE
concerns outlined below. The amendment
also removes the appropriation. Funding
is included in Senate Bill 655.
Synopsis
of Original Bill
The committee substitute for House Bill 160
appropriates $300,000 from the general fund to the Commission on Higher
Education to implement the Workforce Investment Act.
Significant Issues
The
committee substitute for House Bill 160 creates a Workforce Training Program to
provide customized, non-credit training opportunities at
CHE
notes the formula contained in the committee substitute for House Bill 160
raises the following issues:
·
formula
treatment of courses bearing credit versus courses without credit;
·
the
number of students in training compared to the number of hours of training;
·
instructional
costs of the workforce training programs
·
approval
of workforce training courses
Credit
courses versus courses without credit –
The
Blue Ribbon Task Force Base Plus formula model uses the per course credit hours
to determine funding per student per course.
For example, a 3 hour lab course which awards 1 hour of student credit
generates 1 unit of formula funding per student. A 3 hour theory course which awards 3 hours
of student credit generates 3 units of formula funding per student. The committee substitute for House Bill 160
does not stipulate the treatment of non credit course contact hours.
Number
of students in training compared to the number of hours of training required –
The
formula in the committee substitute for House Bill 160 instructs the commission
to distribute workforce training funds based upon the number of students
enrolled in a customized training program.
Distribution of funds based upon the number of students without
consideration of the number of contact hours required for completion of a
training program will result in the inequitable funding of non-credit
courses. Per
Instructional
costs of the workforce training programs –
The
Blue Ribbon Task Force Base Plus formula model does change the methodology by
which public higher education in New Mexico is funded; and even though the
instructional cost model has not been updated in quite a few years, the Blue
Ribbon model continues to be based upon the instructional costs borne by
institutions in offering academic courses.
In the committee substitute for House Bill 160, the commission is
directed to use Tier II of the undergraduate funding level in calculating the
non-credit course value. A cost study of
the non-credit courses has not been conducted.
It can not be determined whether or not the Tier II funding level would
be adequate to meet the needs of the institutions. Per
Approval
of workforce training courses –
The
committee substitute for House Bill 160 does not provide a mechanism by which
non-credit courses are approved prior to funding. Per the “Feasibility of Funding Non-Credit
Instruction at Community Colleges for Work-force Development” report prepared
by David McKinney, “all states that fund non-credit instruction appear to have
policies and procedures in place that limit non-credit instructional support
only for workforce training type programs.
They require prior approval of courses funded or have approved a
syllabus of courses.”
FISCAL
IMPLICATIONS
The
appropriation of $300.0 contained in this bill is a recurring expense to the
general fund. Any unexpended or unencumbered balance remaining at the end of
FY04 shall revert to the general fund.
ADMINISTRATIVE
IMPLICATIONS
The
CHE notes beginning in the second year
of implementation funding is to be distributed based upon the number of
students enrolled in customized training in the prior year at all of the
community colleges participating in the workforce training program. CHE maintains a state-level, statewide Data
Editing and Reporting System (DEAR).
Institutions submit student data to the commission via DEAR.
Currently, neither non-credit courses nor students
in non-credit courses are reported to the commission. In order to run the formula in the committee
substitute for House Bill 160, the commission would be required to modify DEAR
so that non-credit course data could be submitted to the commission. Additionally, the institutions would be
required to modify their processes so that they may collect and submit the data
to the commission.
Neither administrative funding nor additional FTE
for these modifications are included in this bill.
The
New Mexico Labor Department (NMDOL) indicates enactment of this bill will
require an increase in staffing of the One-Stop-Operators to investigate
whether a participant is receiving state funding that duplicates the federal
Workforce Investment Act funding already being provided to the participant.
DUPLICATION
and RELATIONSHIP
House Bill 160
duplicates Senate Bill 418. The committee
substitute for House Bill 160 relates to House Bill 392, House Bill 394, Senate
Bill 368, Senate Bill 370, Senate Bill 221, and Senate Bill 14 as they all
implement portions of the Blue Ribbon Task Force Base Plus
Incentives funding model.
TECHNICAL ISSUES
NMDOL notes the legislation contains no
standards for determining eligibility for participation in the program and no
provision for the issuance of regulations to clarify eligibility issues.
OTHER SUBSTANTIVE ISSUES
CHE notes that while
in-plant training is geared toward employers and Workforce Investment Act
programs are aimed at unemployed or under employed individuals, the Workforce
Training Act is directed at training for persons already employed.
CHE also notes in the 2002 interim, the Commission on
Higher Education named a Blue Ribbon Task Force to determine the desire and
necessity for recommending a significant change in
·
Supports
both increased access and economic development for
·
Makes
the funding model easier to understand, and
·
Rewards
successful institutions, successful students, and success in serving
In
the Task Force discussions, non-credit workforce training was not
forgotten. As the community colleges
have not been required to submit non-credit course information to the commission
via DEAR, many community colleges have not implemented internal systems for
collecting non-credit data. Thus, the
decision was made to not seek a formal formula addition for non-credit courses
at this point in time. However, the
commission is committed to seeking formula change for non-credit courses upon
the collection and submission of needed non-credit course data.
As
an alternative, the Blue Ribbon Task Force recommended the creation of the Work
Force Skills Development Fund. The
commission has recommended $1 million be appropriated to this matching fund for
broad-based entry-level high-skills training programs which will result in economic
development for the State of
NMDOL notes that the committee substitute for
House Bill 160 includes the same training concepts as are federally mandated by
the Workforce Investment Act, and is concerned about duplication of
services. There are a
number of duplicative or similar workforce training programs throughout many
departments in the state. It would
benefit the state to consolidate these programs under one umbrella, namely the
Office of Workforce Programs in the Governor’s office, to streamline and not
duplicate workforce development services across the state. The following departments have some sort of
workforce development or training program:
· Commission
for the Blind;
· Commission
on Higher Education;
· Commission
on the Status of Women;
· Corrections
Department;
· State
Department of Public Education;
· Labor
Department;
· Economic
Development Department;
· Energy,
Minerals and Natural Resources Department;
· Governor’s
Office;
·
Human
Services Department;
·
State
Agency on Aging;
·
State
Highway and Transportation Department; and
·
Veterans’
Service Commission.
KBC:AW/njw:yr