The leader of the California State Senate says the way to encourage more and stronger bonds between industry and education is through, well, bonds.
With California facing a shortage of qualified workers for 21st century jobs, Senate President pro Tempore Darrell Steinberg wants to entice businesses to become more involved in job training by asking them to invest in a new type of school bond that would fund programs that infuse career education into traditional academic courses. Businesses that invest would see a guaranteed return on their investment, Steinberg said.
Steinberg, D-Sacramento, has introduced Senate Bill 594, which would allow California to issue workforce development bonds to pay for these programs in high schools and community colleges. Businesses – especially those in high-growth job areas – would buy the bonds, and the rate of repayment would be tied to specific student outcomes, such as graduation rates, apprenticeships or jobs for students.
“The state will not only return your principal on the bond, but we will give you a rate of return higher than what you could earn if you invested that same million dollars or $5 million in a traditional Wall Street instrument,” Steinberg said during an interview in his Capitol office.
The bill, which comes up for its first hearing Wednesday, would represent a new direction in California’s efforts to build school-business partnerships. Still, significant questions remain about the proposal, such as specifics on how the program would work and how businesses would recoup their money. Supporters of SB 594 expect the bill will go through some major revisions before it’s