Consolidated Fiscal Note Session

Transcription

1 Consolidated Fiscal Note Session Bill #: H (R) Complete Date: 03/25/13 Chief Author: MAHONEY, TIM Title: LABOR MRKT INFO DATA PUBLICATION REQ Fiscal Impact Yes No State Local Fee/Departmental Earnings Tax Revenue Agencies: Employment & Economic Dev Dept (03/25/13) Office of Higher Education (03/11/13) State Colleges & Universities (03/11/13) This table reflects fiscal impact to state government. Local government impact is reflected in the narrative only. Dollars (in thousands) FY13 FY14 FY15 FY16 FY17 Net Expenditures General Fund Employment & Economic Dev Dept MN State Colleges/Universities Fund State Colleges & Universities Revenues Federal Fund Employment & Economic Dev Dept Net Cost <Savings> General Fund Employment & Economic Dev Dept MN State Colleges/Universities Fund State Colleges & Universities Federal Fund (200) (200) (200) (200) Employment & Economic Dev Dept (200) (200) (200) (200) Total Cost <Savings> to the State FY13 FY14 FY15 FY16 FY17 Full Time Equivalents General Fund Employment & Economic Dev Dept MN State Colleges/Universities Fund State Colleges & Universities Total FTE Consolidated EBO Comments I have reviewed this Fiscal Note for accuracy and content. EBO Signature: ELISABETH HAMMER Date: 03/25/13Phone: H (R) Page 1 of 11

2 Fiscal Note Session Bill #: H (R) Complete Date: 03/25/13 Chief Author: MAHONEY, TIM Title: LABOR MRKT INFO DATA PUBLICATION REQ Fiscal Impact Yes No State Local Fee/Departmental Earnings Tax Revenue Agency Name: Employment & Economic Dev Dept This table reflects fiscal impact to state government. Local government impact is reflected in the narrative only. Dollars (in thousands) FY13 FY14 FY15 FY16 FY17 Expenditures General Fund Less Agency Can Absorb Net Expenditures General Fund Revenues Federal Fund Net Cost <Savings> General Fund Federal Fund (200) (200) (200) (200) Total Cost <Savings> to the State FY13 FY14 FY15 FY16 FY17 Full Time Equivalents General Fund Total FTE H (R) Page 2 of 11

3 Bill Description DEED will be responding to Sections 1 and 2. Section 1: Section 1 requires that DEED develop, maintain and publish various measures of labor market analysis demand and supply indicators necessary for effective decision-making by: a) jobseekers as they search for desirable employment opportunities, b) students as they choose their desired career path and educational objectives, c) employers as they attempt to fill positions with qualified candidates, and d) post-secondary institutions as they determine program offerings. Section 2: Section 2 requires the commissioner, through local workforce centers, to assist individuals in identifying and obtaining industry-recognized credentials for jobs in demand. This section also requires staff at workforce centers to consult and cooperate with training institutions to identify credential programs to individuals. This section would require workforce centers to share current job vacancies in a specific manner. Assumptions Section 1: Job Vacancy Survey This bill requires the publication of top job vacancies by occupation, industry and region (Sections 1(a)(2) and 1(b)(2)). These data are currently produced through a bi-annual survey of Minnesota businesses funded by an annual grant from the US Department of Labor. This Workforce Information Grant has a number of mandatory deliverables while the job vacancy survey is the primary discretionary activity that DEED/Labor Market Information (LMI) conducts under this funding. Anticipated sequestration cuts will eliminate much of the funding needed to continue discretionary activities under this grant, including funds currently dedicated to this vacancy survey. Staffing: Funding for 2 FTE Office Administrative Specialist Seniors and 1 FTE Research Analysis Specialist is required for FY14 and forward. Required costs: FY 2014 FY 2015 FY 2016 FY2017 Salary & Benefits $ 174,094 $ 179,243 $ 185,393 $ 191,200 Other Operating Costs $ 45,373 $ 46,094 $ 46,955 $ 47,768 Total $ 219,467 $ 225,337 $ 232,348 $ 238,968 Sequestration: Information from the Department of Labor regarding workforce information funding and the affects from sequestration are just beginning to flow to states. As that information becomes clearer, state funding for the job vacancy survey may not be necessary. The fiscal note reflects the cost of job vacancy survey and reflects current federal funding in the revenue lines of the table on page 1, thus showing this cost and funding as neutral. If DOL funds were no longer available, the revenue line would show zero thus adding additional cost to the state. Workforce Data Quality Initiative (WDQI) and Research Analysis This bill requires the production of information on educational requirements of employment and employment outcomes of recent post-secondary graduates (Section 1(a)(3), 1(b)(1) and 1(b)(2)). DEED/LMI received a 3-year grant in 2010 to develop a longitudinal system for matching post-secondary educational records with employment records under the US Department of Labor s Workforce Data Quality Initiative (WDQI). It is through this longitudinal matching that the informational requirements of this bill could be met. The WDQI grant ends in November 2013, at which time an operational system will be in place. However, sustained funding beyond November is required to continue to maintain the system, populate it with new data as it becomes available, and to produce and publish the content available through the system for public use. In addition to staff required for this purpose, additional staff are needed to collect, produce and publish the other informational requirements of H (R) Page 3 of 11

4 the bill, including projected future workforce requirements and qualifications, credential and educational requirements, career opportunities, and wage and salary information. Staffing: Funding requirements for these activities include 1 FTE Research Analysis Supervisor Senior and 4 FTE Research Analysis Specialists. Required costs: FY 2014 FY 2015 FY 2016 FY2017 Salary & Benefits $ 393,155 $ 402,567 $ 412,207 $ 422,018 Other Operating Costs $ 90,042 $ 91,359 $ 92,709 $ 94,083 Total $ 483,197 $ 493,926 $ 504,916 $ 516,101 Online Publication The bill requires that DEED develop the capacity to post the information required on an easily accessible and readable web site. Staffing: Funding for 2 FTE Information Technology Specialist 3 staff for one year (FY14) is required for the purpose of web development. Information Technology: $60,000 per year on an ongoing basis is required for IT hosting, maintenance and equipment costs. Required Costs: FY 2014 FY 2015 FY 2016 FY2017 Salary & Benefits $ 158,646 Other Operating Costs $ 36,210 IT Costs $ 60,000 $ 60,000 $ 60,000 Total $ 194,856 $ 60,000 $ 60,000 $ 60,000 Section 2: To provide individuals with information about industry-recognized credentials particularly in high demand jobs, Workforce Center staff would direct individuals to ISEEK, the state of Minnesota s web-based source for information about career and education planning. It includes, for example, a ranking of the top fifty careers anticipated through 2020, information about credential requirements, and courses of study and training at postsecondary institutions. ISEEK is a collaboration of a number of state entities including Department of Employment and Economic Development and Minnesota State Colleges and Universities among others. In addition, Career One-Stop, the federal website for job seeking and career planning which includes a database of approximately 6,000 certifications and credentials recognized by industry in a searchable format to assist job seekers in understanding what is required for certain occupations. Minnesotaworks.net provides job seekers and employers with the opportunity to search for each other last calendar year there were over 550,000 jobs vacancies posted on Minnesotaworks.net. These on-line resources are available to any job seeker, including at Workforce Centers. Workforce Center staff offer assistance in using these tools and can provide a written guide for step-by-step instructions to access the appropriate information for posting and dissemination to customers. Expenditure and/or Revenue Formula Expenditure estimates and staffing levels are based on current program costs. Section 1: Total Cost Projection for Section 1 H (R) Page 4 of 11

5 FY 2014 FY 2015 FY 2016 FY2017 Salary & Benefits $ 725,895 $ 581,810 $ 597,600 $ 613,218 Other Operating Costs $ 171,625 $ 137,453 $ 139,664 $ 141,851 IT Hosting Costs $ 60,000 $ 60,000 $ 60,000 Total $ 897,520 $ 779,263 $ 797,264 $ 815,069 The Salary and Benefits estimate in the above table is based on the midpoint of: o 2 FTE- Office Admin Specialists Seniors, o 5 FTE-Research Analysis Specialists, o 1 FTE-Research Analysis Supervisor Seniors and; o 2 FTE-Information Tech Spec 3 in FY2014 for web development The Other Operating Costs estimate in the above table includes supplies, equipment, travel, space, communications, training, and indirect costs. The IT Hosting Costs estimate in the above table include cost estimates for IT Hosting from MN.IT services. Section 2: There is no fiscal cost for section 2 of this bill. Long-Term Fiscal Considerations Section 1: Data collection and analysis, including administrative and IT support, would require ongoing funding. Section 2: There are no long-term fiscal considerations for section 2. Local Government Costs Section 1: There are no local government costs for section 1. Section 2: There are no local government costs for section 2. References/Sources Steve Hine- Labor Market Information Brian Allie, CIO-MN.IT (DEED) Bonnie Elsey, Senior Administration Officer - Workforce Development Division. FN Coord Signature: MIKE MEYER Date: 03/25/13 Phone: EBO Comments I have reviewed this Fiscal Note for accuracy and content. EBO Signature: ELISABETH HAMMER Date: 03/25/13 Phone: H (R) Page 5 of 11

6 Fiscal Note Session Bill #: H (R) Complete Date: 03/11/13 Chief Author: MAHONEY, TIM Title: LABOR MRKT INFO DATA PUBLICATION REQ Fiscal Impact Yes No State Local Fee/Departmental Earnings Tax Revenue Agency Name: Office of Higher Education This table reflects fiscal impact to state government. Local government impact is reflected in the narrative only. Dollars (in thousands) FY13 FY14 FY15 FY16 FY17 Expenditures Less Agency Can Absorb Net Expenditures Revenues Net Cost <Savings> Total Cost <Savings> to the State Full Time Equivalents Total FTE FY13 FY14 FY15 FY16 FY17 H (R) Page 6 of 11

7 Bill Description Requirement to provide labor market information data. The Commissioner of the Department of Employment and Economic Development must, in collaboration with the Office of Higher Education and local workforce center boards, publish labor market analysis supply and demand reports, statewide and by region. The supply and demand reports must: 1) Identify the state and regional industry sectors and occupations with the highest current and projected job growth; 2) Identify top job vacancies by state and regional industry sectors and occupations; 3) Provide information on the education attainment of the current state and regional workforce; 4) Identify the expected number of graduates in industry-recognized credential and degree programs by career field; 5) Identify the completion rate and average debt per student of industry-recognized credential and degree programs by career field; 6) Identify higher education institutions offering industry-recognized credential and degree programs in high jobgrowth career fields; 7) Make projections on future state and regional job growth by education level; and 8) Utilize employer surveys to identify the credentials and skills needed for employment in high job-growth occupations. The statewide report and regional reports shall each present side-by-side comparisons of: 1) New job growth and total job openings by education level compared with educational attainment levels of current workforce; 2) Current and projected top high-growth, high-pay industries by number of new jobs and median salaries compared with top annual graduates by major or credential; and 3) Top job vacancies requiring some postsecondary credential. Each of these vacancies should be directly linked to information about what credentials are required, where in the state and region those credentials can be obtained, the completion and credential attainment rate of each of those credential programs, the average debt per student who attains each credential, and median wages for the job vacancy. Please note: We were asked to revise this Fiscal Note to include the SCS0899A-1 amendment dated 3/8/2013. The Office of Higher Education s costs would not increase with the A1 amendment. Assumptions The information required from the Office of Higher Education is already available, so the Office of Higher Education assumes the cost to OHE of this bill is zero. The U.S Department of Education has a regulation, called the gainful employment regulation, which requires postsecondary institutions to provide data on career training programs at public, for-profit and non-profit schools. The regulation covers nearly all programs at for-profit postsecondary institutions, many programs at public twoyear institutions and a few programs at public and private not-for-profit four-year institutions. The regulation requires institutions to provide information on career training programs, including median debt by program of study and debt to earnings ratios. Since postsecondary institutions already produce this data for the U.S. Department of Education, they could also provide it to DEED. The Office of Higher Education will help provide the data from the U.S. Department of Education to DEED. However, the programs of study included in this data are limited to those that are considered career training. The Office of Higher Education collected information on average cumulative debt for students receiving postsecondary certificates and degrees in the academic year, and intends to collect similar data in future years. This data is for the type of degree, it is not specific to the program of study. For example, it includes average cumulative debt for all sub-baccalaureate certificates from each institution as one amount (90% of certificate recipients at Normandale Community borrowed, and the average amount was $9,900). These data from OHE could be used to supply the data on average debt per student for each credential However, it is important to note that the data is not specific to a student s program of study. OHE will provide this data to DEED. H (R) Page 7 of 11

8 Please note: We were asked to revise this Fiscal Note to include the SCS0899A-1 amendment dated 3/8/2013. The Office of Higher Education s costs would not increase with the A1 amendment. Full-time Equivalents None Expenditure and/or Revenue Formula None Long Term Fiscal Considerations None Local Government Costs None References/Sources Federal gainful employment data on median debt by program of study and debt to earnings ratios by program of study is available from the U.S. Department of Education s Student Financial Aid Data Center at Fiscal Note Coordinator Signature: Tricia Grimes Date: March 8, 2013 FN Coord Signature: TRICIA GRIMES Date: 03/11/13 Phone: EBO Comments I have reviewed this Fiscal Note for accuracy and content. EBO Signature: ELIZABETH CONNOR Date: 03/11/13 Phone: H (R) Page 8 of 11

9 Fiscal Note Session Bill #: H (R) Complete Date: 03/11/13 Chief Author: MAHONEY, TIM Title: LABOR MRKT INFO DATA PUBLICATION REQ Fiscal Impact Yes No State Local Fee/Departmental Earnings Tax Revenue Agency Name: State Colleges & Universities This table reflects fiscal impact to state government. Local government impact is reflected in the narrative only. Dollars (in thousands) FY13 FY14 FY15 FY16 FY17 Expenditures MN State Colleges/Universities Fund Less Agency Can Absorb Net Expenditures MN State Colleges/Universities Fund Revenues Net Cost <Savings> MN State Colleges/Universities Fund Total Cost <Savings> to the State FY13 FY14 FY15 FY16 FY17 Full Time Equivalents MN State Colleges/Universities Fund Total FTE H (R) Page 9 of 11

10 Bill Description SF 899, section 1 requires the Department of Employment and Economic Development (DEED), in collaboration with the Office of Higher Education and local workforce center boards, to publish labor market analysis supply and demand reports, statewide and by region. The legislation specifies the information to be included in the reports, including the expected number of graduates in industry-recognized programs by career field; the completion rate and average debt per student of programs by career field; and the higher education institutions offering industryrecognized programs in high job-growth career fields. Section 2 requires DEED to provide services at local workforce centers that help individuals identify and obtain credentials for jobs, particularly jobs in high demand. Requires workforce centers to consult with postsecondary institutions to identify programs. Section 3 requires Minnesota State Colleges and Universities (MnSCU) to use this information when deciding course and program offerings and to provide an internet link to this data on its website. Section 4 requires specific workforce councils to work with local public school districts to provide career and postsecondary counseling to high school students. Assumptions 1. MnSCU will provide DEED information on the expected number of graduates, completion rates and average debt for each identified program. 2. Preparing this information will initially require approximately four person months of staff time to develop. 3. To update and validate the data in subsequent years will require staff time equivalent to two person weeks annually. 4. The costs of the requirements under section 3 are not significant and can be absorbed by the system. 5. The costs related to section 4 have no fiscal impact on MnSCU. Expenditure and/or Revenue Formula 1. Staff time required to develop and analyze required data Senior Research Associate staff position: $110,000 salary and benefits 0.33 FTE = $36, Ongoing staff time required to complete and validate the analysis annually: Senior Research Associate staff time: 0.04 FTE $110,000 salary and benefits = $4,400 Long-Term Fiscal Considerations This cost of annually updating and validating this data is on-going. Local Government Impact There is no local government impact. References/Sources Craig Schoenecker, System Director of Research Mike López, Associate Vice Chancellor for Student Affairs Agency Contact Name: Craig Schoenecker FN Coord Signature: DEBORAH BEDNARZ Date: 03/11/13 Phone: H (R) Page 10 of 11

11 EBO Comments I have reviewed this Fiscal Note for accuracy and content. EBO Signature: ELIZABETH CONNOR Date: 03/11/13 Phone: H (R) Page 11 of 11