LEGISLATIVE FISCAL ESTIMATE

[First Reprint]

ASSEMBLY, No. 5213

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: MARCH 10, 2025

 

 

SUMMARY

 

Synopsis:

Establishes “New Economy Opportunity Skills System Pilot Program” to strengthen alignment and collaboration between local workforce development boards, community colleges, and county vocational school districts; makes appropriation.

Type of Impact:

Three-year expenditure increase for the State, community colleges, and county vocational school districts.

Agencies Affected:

Department of Labor and Workforce Development; community colleges; counties.

 

 

Office of Legislative Services Estimate

Fiscal Impact

Three-Year Duration of Pilot Program

 

State Expenditure Increase

Indeterminate

 

Expenditure Increase to Community Colleges

Indeterminate

 

County Expenditure Increase

Indeterminate

 

 

 

 

·         The Office of Legislative Services (OLS) finds that the bill will result in an indeterminate three-year increase in State expenditures for the State Employment and Training Commission to undertake the New Economy Opportunity Skills System Pilot Program in three areas in the State.  The OLS lacks the informational basis to determine the size of the annual expenditure increase because the magnitude will depend on operational and administrative decisions to be made by the commission regarding the scope of the program. 

·         Certain community colleges and county vocational school districts are also likely to incur an indeterminate amount of cost increases during the three-year pilot program due to the development and implementation of workforce training programs, along with their other responsibilities under the pilot program.  Moreover, the bill’s designation of community colleges and county vocational school districts as the preferred provider of postsecondary education, workforce training, and adult literacy programs for State workforce development services could lead to an indeterminate amount of additional cost increases for these community colleges and county vocational school districts. 

 

 

BILL DESCRIPTION

 

      This bill establishes the New Economy Opportunity Skills System Pilot Program to strengthen the strategic alignment and collaboration between the operations of local workforce development boards, community colleges, and county vocational school districts.  The State Employment and Training Commission, which is in but not of the Department of Labor and Workforce Development, is to initiate the pilot program in three local areas and the program is to include:

      (1)  joint development and implementation of workforce training programs with an emphasis on industry-recognized credentials;

      (2)  collaborative efforts for branding, outreach, and marketing to increase awareness of available training and career services;

      (3)  integrated planning and coordination of funding resources to maximize the impact of State and federal support for workforce development; and

      (4)  performance evaluation based on appropriate metrics aligned with State and federal workforce development programs to assess participant outcomes, program effectiveness, and other measures as required under federal and State law.

      The commission, in consultation with the New Jersey Council of County Colleges and the New Jersey Council of County Vocational-Technical Schools, is also required to develop a strategy for strengthening Statewide alignment and collaboration between local workforce development boards, community colleges, and county vocational school districts.  The strategy is to include a guideline for scaling the pilot program to other areas of the State, recommendations for legislative or regulatory changes needed to facilitate integration, and an implementation timeline and resource plan for Statewide integration.  The commission is required to submit an annual report to the Governor and the Legislature on the progress and outcomes of the pilot program and its implementation.

      The bill also designates community colleges and county vocational school districts as the preferred provider of postsecondary education, workforce training, and adult literacy programs for State workforce development services.

      The bill appropriates available State funds, including from the New Jersey Workforce Development Partnership Fund and the Supplemental Workforce Fund for Basic Skills, to the State Employment and Training Commission for the implementation of the pilot program.  If federal funds become available, the commission is to utilize those funds as the primary source of funding before State funds, if necessary, are expended. 

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS finds that the bill will result in an indeterminate three-year increase in State expenditures for the State Employment and Training Commission to undertake the New Economy Opportunity Skills System Pilot Program in three areas in the State.  The bill appropriates to the commission an unspecified amount of available federal and State funds to implement the pilot program.  The OLS lacks the informational basis to determine the size of the annual expenditure increase because the magnitude will depend on operational and administrative decisions to be made by the commission regarding the scope of the program.  The OLS notes that the commission, along with the New Jersey Council of Community Colleges and the New Jersey Council of County Vocational-Technical Schools, is to develop a strategy to strengthen Statewide strategic alignment and collaboration between local workforce development boards, community colleges, and post-secondary programs in county vocational school districts.  The strategy is to include guidelines for scaling the pilot program to other areas of the State and an implementation timeline and resource plan for Statewide integration.  To the extent the pilot program is expanded to other areas of the State beyond the initial three locations, State costs would further increase.

      Certain community colleges and county vocational school districts are also likely to incur an indeterminate amount of cost increases during the three-year pilot program due to the development and implementation of workforce training programs, along with their other responsibilities under the pilot program.  Moreover, the bill’s designation of community colleges and county vocational school districts as the preferred provider of postsecondary education, workforce training, and adult literacy programs for State workforce development services could lead to an indeterminate amount of additional cost increases for these community colleges and county vocational school districts. 

 

Section:

Commerce, Labor and Industry

Analyst:

John Gaudioso

Assistant Fiscal Analyst

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).