The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Jerry J. Guillot.
DIGEST
Alario (SB 526)
Proposed law creates the "Workforce and Innovation for a Stronger Economy Fund," hereinafter
"fund," within the state treasury as a special fund for the purpose of funding degree and
certificate production and research productivity in high demand fields through programs offered
by Louisiana's public higher education institutions to meet the state's current and future
workforce needs. Provides that monies in the fund shall be invested in the same manner as
monies in the general fund. Provides that interest earned on investment of monies in the fund
shall be credited to the fund and that unexpended and unencumbered monies in the fund at the
end of the fiscal year shall remain in the fund.
Directs the state treasurer to deposit into the fund at the beginning of each fiscal year no less than
$40 million. Provides that monies in the fund shall be appropriated and administered as provided
in proposed law.
Provides that monies in the fund shall be appropriated to the Board of Regents (board) to be
distributed and used in accordance with a statewide workforce demand and gap analysis to be
developed and provided in proposed law. Provides that funding shall only be distributed by the
board upon receipt of certification by the management board on behalf of the receiving institution
that a match no less than 25% of the amount to be distributed has been guaranteed by a private
non-state or non-federal entity. Provides that the certification shall detail the type of private
match to be provided, which shall include cash, in-kind donation of technology, construction
materials, facility modification or construction, internships, scholarships, sponsorship of staff or
faculty, endowed faculty or tangible property. However, the Workforce and Innovation for a
Stronger Economy Fund Strategic Planning (WISE) Council may waive this requirements of
proposed law to allow donation types not authorized by proposed law upon request of the system
president.
Provides that funds allocated shall be expended towards the degree and certificate production and
research productivity targets pursuant to the workforce demand and gap analysis produced by the
WISE Council and according to implementation plans which shall be created by each system
president.
Provides that the president-chancellor of the Louisiana State University System, president of the
Southern University System, president of the University of Louisiana System, president 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), executive
director of the La. Workforce Commission (LWC), and the chairman of the La. Workforce
Investment Council shall develop the distribution and allocation of monies in the fund in
alignment with the statewide workforce demand and gap analysis. Provides a method of distribution of funds based on:
(1)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)Federally funded research expenditures as defined by the National Science Foundation.
Establishes the WISE Council as an independent subcommittee of the Board of Regents
comprised of the president-chancellor of Louisiana State University, the president of the
Southern University System, the president of the University of Louisiana System, the president of
the Community and Technical College System, the commissioner of higher education, the
secretary of the DED, the executive director of the LWC, and the chairman of the La. Workforce
Investment Council, or their successors. Provides that the council shall review and approve a
statewide workforce demand and gap analysis which shall be approved by the board.
Provides that the statewide workforce and gap analysis shall include:
(1)Statewide and regional degree and certificate production and research productivity targets
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.
Requires that the system presidents report annually to the WISE Council on progress towards
degree and certificate and research productivity targets and implementation plans.
Requires that the statewide workforce demand and gap analysis, including any revisions,
distribution of funds, and implementation plans be posted on the board website.
Authorizes the WISE Council to create policies and procedures for its own management but may
meet no less than four times per year.
Requires that the board, on behalf of postsecondary education, provide annual reporting to the
Senate Committee on Education, Senate Committee on Finance, the House Committee on
Education, and the House Committee on Appropriation.
Authorizes the board to promulgate 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.
Provides that the fund is in addition to, and separate from, any monies appropriated or allocated
to any postsecondary management board. Allocations from this fund shall not be included in the
board funding formula calculation, nor shall it supplant any allocations provided to institutions
through the funding formula. Provides that the availability of the 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 the governor or lapse of time for gubernatorial action.
(Adds R.S. 17:3138.2)