Higher Education Committee advances SB 638 to create statewide workforce coordinating entity

The Assembly Higher Education Committee on a special hearing voted to pass SB 638 to the Appropriations Committee after debate over how to structure and fund a proposed statewide workforce coordinating entity.

Senator Richard Padilla, the bill’s author, told the committee SB 638 “does primarily two things: it creates a coordinating entity or body… and adopt regulations to better administer programs related to career tech education, career pathways, and workforce development.” Padilla said the measure also directs additional resources to high-unemployment, low-income regions and ties into the state’s broader workforce and career-education policy work.

Supporters said a central coordinating body would reduce fragmentation across existing state workforce and education programs. Alex Graves of the Association of Independent California Colleges and Universities said the association “recognize[s] the value that a statewide education workforce coordinating entity can provide to the state, to policy makers, to students, families, and employers.” Ziba Creason, executive director of the California EDGE Coalition, said the bill “is about coalition building” and praised alignment with the state’s cradle-to-career data efforts.

Committee members pressed the author and witnesses on several recurring concerns. Padilla acknowledged the budget allocation in the adopted budget was reduced from an initial $5,000,000 proposed in January to $1,500,000 in the May revision and said the bill is intended to be part of a broader negotiation among legislative leadership and the governor about the entity’s final form and funding.

Several members, including Assemblymember DeMaio, questioned whether the new body would duplicate existing functions performed by the California Workforce Development Board, the California Community Colleges Chancellor’s Office, the State Board of Education and local workforce boards. “I do not see a single value added role in this new body. I see duplication,” DeMaio said, urging a slower, more deliberative approach that could include an audit or delaying the measure.

Other members, including Assemblymember Marcucci, said the status quo is not delivering coordinated results and expressed support for continued work to create a unified system.

The committee’s discussion repeatedly returned to three concrete tensions: (1) whether the coordinating entity should be an operational body with authority or an advisory council, (2) whether the $1.5 million budget allocation is sufficient to carry out the many duties listed in the bill, and (3) how to avoid duplicative work with existing state boards and programs.

After final remarks, the committee recorded a roll-call vote sending SB 638 to the Appropriations Committee. The roll call as recorded in the hearing transcript shows the following votes: Fong (Aye), Berner (Aye), Jackson (Aye), Marcucci (Aye), Aguiar-Curry (Aye), Haney (Aye), DeMaio (No), Jeff Gonzales (No), Tongipa (No); Celeste Rodriguez recorded as not voting. Committee staff announced the measure was passed to Appropriations.

SB 638 will next be considered in the Appropriations Committee and remains subject to further negotiation and possible amendment in the tri-party discussions Padilla referenced.