DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of
the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of
the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Kleckley HB No. 1033
Abstract: Establishes the "Workforce and Innovation for a Stronger Economy Fund" for the
funding of degree and certificate production and research priorities in high demand fields
to meet the state's current and future workforce innovation needs.
Proposed law creates the "Workforce and Innovation for a Stronger Economy Fund," hereinafter
referred to as the "WISE fund", within the state treasury as a special fund for the purpose of
funding degree and certificate production and research priorities in high demand fields through
programs offered by La.'s public postsecondary education institutions to meet the state's current
and future workforce and innovation needs.
Proposed law requires the state treasurer to deposit $40 million into the WISE fund at the
beginning of each fiscal year, subject to appropriation by the legislature.
Proposed law requires that monies in the WISE fund be appropriated to the Board of Regents
(board) to be distributed to and used by postsecondary education institutions in accordance with a
statewide workforce demand and gap analysis to be developed and provided for in proposed law.
Proposed law requires that funds be used towards the degree and certificate production and
research priorities pursuant to the workforce demand and gap analysis according to
implementation plans.
Proposed law provides that any funding distributed to an institution that is not spent at the end of
a fiscal year shall be available for use by the institution in the next fiscal year.
Proposed law requires that funding only be distributed by the board if the management board
certifies on behalf of the receiving institution that a match of no less than 20% of the amount to
be distributed has been guaranteed by a private entity. Provides that the certification shall detail
the type of private match to be provided; however, the Workforce and Innovation for a Stronger
Economy Fund Strategic Planning (WISE) Council may authorize a match in types other than
provided for in proposed law upon request of the system president.
Proposed law establishes the WISE Council comprised of the president-chancellor of the
Louisiana State University System, the president of the Southern University System, the
president of the University of Louisiana System, the president of the Louisiana Community and
Technical College System, the commissioner of higher education, the secretary of the Dept. of
Economic Development (DED), the executive director of the La. Workforce Commission (LWC), and the chairman of the La. Workforce Investment Council.
Proposed law provides a method of distribution of funds developed by the WISE Council as
follows:
(1)80% of the funds distributed based on degree and certificate production in fields required
for Four and Five STAR Jobs, or its successor, as defined by the LWC and weighted by
cost.
(2)20% of funds distributed based on federally funded research expenditures as defined by
the National Science Foundation.
Requires the WISE Council to review and approve a statewide workforce demand and gap
analysis which shall be approved by the board.
Proposed law further provides that the methodology for distribution be evaluated no more than
once every three years unless a majority of the WISE Council vote to reevaluate the methodology
more often.
Proposed law requires the WISE Council to develop statewide workforce and gap analysis to
include:
(1)Statewide and regional degree and certificate production and research priorities based on
an analysis of credential completion and workforce demand.
(2)A prioritization of high demand degree and certificate production based on data provided
by DED and the LWC.
Proposed law requires the WISE Council and the Board of Regents to review and approve the
statewide workforce and gap analysis. Proposed law further requires the WISE Council to
review implementation plans submitted by the institutions.
Proposed law requires the system presidents to annually report to the WISE Council on progress
towards degree and certificate and research priorities and implementation plans. Requires that
the board provide annual reports to the senate committees on education and finance and the
house committees on education and appropriations.
Proposed law requires that the statewide workforce demand and gap analysis, including any
revisions of the analysis, distribution of funds, and implementation plans be posted on the board
website.
Proposed law authorizes the WISE Council to create policies and procedures for its own
management. Requires the WISE Council to meet no less than two times per year.
Proposed law authorizes the promulgation of rules developed jointly and collaboratively by the commissioner of higher education and the system presidents for the administration of the fund
and requires that prior to final adoption, the rules be approved by the WISE Council.
Proposed law provides that the WISE fund shall be in addition to, and separate from, any monies
appropriated or allocated to any postsecondary education management board. Allocations from
the WISE fund shall not be included in the board's funding formula calculation, nor shall it
supplant any state general fund allocations provided to institutions. Provides that the availability
of the WISE fund shall not in any way substitute, limit, or otherwise affect the allocation of any
funds otherwise available to those institutions under state or federal laws.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 17:3138.2)
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Appropriations to the original
bill.
1. Added provision that deposit of monies into the WISE Fund is subject to
appropriation by the legislature.
2. Added language regarding money that is unspent or unobligated at the end of a fiscal
year; provides that it can be used in subsequent fiscal years.
3. Changed those responsible for developing the distribution of the funding from the
president-chancellor of the Louisiana State University System and the presidents of
the Southern University System, the University of Louisiana System, and of the
Community and Technical College System, and the commissioner of higher education
in consultation with the secretary of the Department of Economic Development
(DED), the executive director of the La. Workforce Commission (LWC), and the
chairman of the La. Workforce Investment Council to all the members of the WISE
Council.
4. Added that the method of distribution of the funds to the institutions include that 80%
of the funds be distributed based on degree completion and 20% of the funds be
distributed based on research.
5. Added that the statewide workforce and gap analysis is updated no more than every
three years, unless the majority of the council votes to update the analysis more often.
6. Added review and approval by the WISE Council of an institutions' implementation
plans regarding their use of the funding and the expected outcomes.
7. Changed the minimum number of times the WISE Council meets from four to two and provides that the meetings are mandatory rather than permissive.
House Floor Amendments to the engrossed bill.
1. Clarified which items are included in the reports to the legislative committees.