This article is from Cal-Tax Digest, published
by the California Taxpayers' Association.
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Job training programs are like Baskin-Robbins ice cream flavors - numerous, usually appealing to the eye, and very subjective when it comes to comparison shopping.

Dozens of different government-funded efforts have been created over the years with the common objective of helping people learn skills that will help them get a job, keep a job, or get a better job. Employers also benefit when applicants and employees are more skilled and ready to work.

Last year, Congress updated the federal job training law, renaming it the Workforce Investment Act. California must now comply with its provisions to receive the $2 billion per year that funds over 20 programs, mostly through Private Industry Councils (PIC) at the local level.

In California, the Legislature is treating the new federal law as an opportunity to review and improve the state's efforts in preparing people for work and giving employers a significant role in designing programs.

Toward this end, SB 43 has been introduced, and these are the key elements:

• The state Workforce Investment Board will have a majority of business representatives.
• A report card will measure the success of each training program based on tracking whether trainees later found jobs.
• The state board must integrate labor market information and economic development data to make expenditure decisions for training relevant to California's dynamic business growth.
• Education agencies that provide occupational training will be included on the state and local boards along with such traditional agencies as the Employment Development Department.
• One-stop centers will be developed so employers and job seekers can find help at a single point of service. All government-funded programs will be under one roof.
• The Private Industry Councils will be expanded to include more partners such as community colleges and the welfare-to-work program (CalWorks).

The business community, including Cal-Tax, was instrumental in 1992 in the creation of the Employment Training Panel (ETP). This program takes a small bite out of the Unemployment Insurance tax paid by employers. This $100 million-a-year program, dedicated primarily to upgrade training for front-line workers, has two unique features: Employers get the money to do the training rather than a training agency; and payment is made only for successful graduates of the training.

Grants will be awarded by a panel of seven representatives of business and labor appointed by the governor and the Legislature. In the new state legislation, ETP should be brought into the fold as a part of the state Workforce Investment Board and the panel should be advisory rather than the sole determinant of who gets the money. Originally, the program was aimed at manufacturing workers, particularly in aerospace. In recent years the panel has awarded grants for training of hotel service employees - a dubious priority for a program that was intended to help businesses create a highly skilled workforce in industries that might otherwise move out of California.

The new federal law requires state compliance by July of 2000. Right now is the time for employers and Cal-Tax to help analyze the world of workforce development and help the Legislature write the new state law.