State of California Employment Training Panel

What's New

No ETP Funding Available Until the Budget is Passed

We want to take this opportunity to update the business community in California on when the ETP program will begin accepting new applications for training funds. We cannot fund any projects in Fiscal Year 2010-11 until after the State Budget Act has passed. Even then, there are many pending applications from the prior Fiscal Year that will be processed on a first priority basis.

Because of this continuing uncertainty regarding ETP's appropriation for the current Fiscal Year, ETP will not open the online orientation or pre-application process for new proposals until after a determination of funding availability can be made with the adoption of a new state budget. Further information will be posted on this website as soon as it becomes available.

In the meantime, please be aware that ETP does not charge any sort of filing fee to apply for funds. Should you have further questions regarding the application process, please contact our Economic Development Unit.

PUBLIC COMMENT: 8 RULEMAKING ACTIONS

The public comment period is now open for eight Rulemaking Actions approved by the Panel on June 25, 2010 as part of its Economic Stimulus Initiative – Phase 2.  As set forth in the Notice, comments will be accepted from July 30 through September 13, 2010.  See the Initial Statement of Reasons to review the necessity of each action.  The proposed actions are listed below.  Follow the links to review the strikeout-and-underline text.

The proposed actions are listed below. Follow the links to preview the strikeout-and-underline text prior to the public comment period.

Adopt

Section 4451, Alternative Funding Source.

Amend

Section 4400, Definitions ("training")
Section 4401.5, Eligible Employer
Section 4405, Funding Limitations
Section 4417, Secure Job
Section 4427, Temporary Agency
Section 4429, High Unemployment Area
Section 4447, Unearned Payments

New Section 4451 would establish basic guidelines for funding by an alternative source, other than the Employment Training Tax.

The seven amendments are designed to improve new-hire placements and make it easier for employers to access ETP funds, in response to the ongoing economic downturn in California. (See especially Section 4429, making it more feasible to designate High Unemployment Areas.)

Staff will follow the Panel's policy direction as reflected in these rulemaking actions in developing proposals for FY 2010/11, to the extent they reflect current practice and favor stakeholder interests. Except that the proposed amendments to the definitions of "Productive Laboratory" at Section 4400(y)(2)(B) and "E-Learning" at Section 4400(y)(4) will not be implemented until after all public comments have been received, and the rulemaking process has been completed.

CA ENERGY COMMISSION APPROVES $6 MILLION IN AB 118 FUNDING FOR ETP

At its business meeting on May 5, the California Energy Commission (CEC) approved $6 million for ETP to fund training for both incumbent and unemployed workers in alternative and renewable fuels and vehicle technologies, under AB 118.  These funds will become available soon.

ETP BUDGET UPDATE

In January 2010, the Governor released his proposed Budget for Fiscal Year 2010-2011. The Governor's budget proposals will next be considered by the Legislature in Budget Hearings over the next several months. Ongoing updates on ETP's proposed Fiscal Year 2010-2011 will be provided on the Panel's Home Page.

LEGISLATIVE UPDATE

Several proposed bills have a potential impact on, or may be of special interest to the ETP program. For information on these bills, please click here.

Reduced Funding

Given a projected $17.6 million shortfall in the Employment Training Fund (ETF) for the current year, the Panel entered the September 25, 2009 meeting with only $6.8 million in available funds for 2009-10. As a result the Panel approved the following actions:

  1. Reduce all projects by 50 percent (with a floor of $75,000) as presented in September, and as will be presented in October.
  2. Deny requests for exemptions to the funding caps that were imposed by the Panel in August.
  3. Set-aside $1 million for Small Business proposals for the remainder of FY 2009-10;
  4. Set-aside $500,000 for Critical Proposals for the remainder of FY 2009-10.
  5. Apply the maximum substantial contribution to agreements and amendments (Phase II funding).

In addition, staff has begun taking administrative steps to address this deficit condition, by stopping acceptance of applications for FY 2009-10 effective immediately, except for federal funding sources (see below); and suspending the Online Registration, Orientation and Pre-Application processes effective immediately, except for federal funding sources.

Staff will work closely with stakeholders, including all pre-applicants and applicants in the "pipeline" to ensure as smooth a transition as possible to the adjustment in funding availability.

ECONOMIC STIMULUS INITIATIVE

The Panel approved the second phase of an Economic Stimulus Initiative in concept at its meeting on April 23, 2010. The overall goal of this Initiative is to foster the successful outcome of new-hire training for unemployed and displaced workers, and to re-skill incumbent workers in the industry sectors hardest hit by the economic recession. The second-phase concept paper may be viewed under the Panel Packet tab for April 2010, or by this link . The first-phase concept paper may be viewed under the Panel Packet tab for February 2009.

The first phase was immediately implemented through an increase in the payment rate for new-hire training from $17 to $20 per hour, followed by a series of regulation amendments that took effect in February 2010. The second phase will also require regulation amendments as outlined in the concept paper. Draft language for the proposed amendments will be presented to the Panel at its meeting in June 2010 prior to publishing a notice for public comment.

ALTERNATE FUNDING SOURCES

The Panel has reviewed Draft Guidelines for the use of alternative-source funds under the AB 118 Program, to be administered by ETP in partnership with the California Energy Commission (CEC). This program would provide ETP with an overall $6 million to support the Alternative and Renewable Fuel and Vehicle Technology Program that was created some two years ago by AB 118. The program's goal is to transform California's fuel and vehicle types to meet the state's climate change policies. Final guidelines will be provided on this website as soon as they become available. For information on the AB 118 program and the application process, please contact the Economic Development Unit at EDU@etp.ca.gov.

The Panel has encumbered all of its available federal funding in the current fiscal year for the Clean Energy Workforce Training Program and the Non-Profit Nurse Training Program. The Panel will continue to fund additional projects from alternative sources in the remainder of FY 2009-10, primarily for “green” job skills.

Green ETP

Each year, ETP identifies priority industries in need of training support for employees, which ultimately help keep California businesses competitive in a global marketplace. At the same time, ETP partners with public and private groups such as colleges and universities, technology communities, labor, local workforce investment boards, and other state entities to further expand funding workforce development and economic opportunities. Green technology has become a key industry to which ETP has approved training contracts and is expanding upon because of employment growth opportunities.