Assessment of the Strong Workforce Program

analysis full 2026-27 BUDGET Assessment of the Strong Workforce Program GABRIEL PETEK | LEGISLATIVE ANALYST DECEMBER 2025 www.lao.ca.gov 1 analysis full AN LAO REPORT 2 LEGISLATIVE ANALYST’S OFFICE analysis full AN LAO REPORT Executive Summary Career Technical Education (CTE) Is a Key Part of the Community Colleges’ Mission. CTE prepares students to work in a broad range of industry sectors, including information technology, business, and health. CTE accounts for nearly one-third of instruction at the California Community Colleges (CCC). Like other community college instruction, CTE is primarily supported by general purpose apportionment funding. Several smaller state categorical programs and federal programs provide additional CTE funding. Those programs help address the higher instructional costs of CTE, which are due mainly to the need for specialized equipment and smaller class sizes. A Decade Ago, State Created Strong Workforce Program (SWP) to Enhance CTE. In 2016-17, the state created SWP to increase the availability and quality of CTE. Like other workforce development programs, SWP is linked to the broader state goal of preparing individuals for jobs, thus promoting their economic mobility while also providing a skilled workforce for industry. Under SWP, community college districts are grouped into eight regional consortia. Statute requires these consortia to develop regional workforce development plans in collaboration with other stakeholders. The state provides $290 million ongoing Proposition 98 General Fund for SWP (though it is redirecting $60 million of this amount to another purpose annually through 2028-29). Of the annual amount, about 60 percent is allocated to local districts and about 40 percent is allocated to the regional consortia. Statute directs the CCC Chancellor’s Office to allocate both shares according to a formula that accounts for CTE enrollment levels, unemployment rates, projected job openings, and certain performance measures. Program Implementation Varies Among Regions. Although all consortia are participating in regional planning, the extent of regional coordination varies by consortium. Five of the eight consortia designate a majority of their regional funds toward projects selected centrally, while the other three consortia pass the majority of their regional funds through to districts to make spending decisions locally. Nonetheless, administrators we spoke with at both types of consortia indicate that regional coordination has had some benefits. For example, it has made it easier for districts to combine funding for strategic purposes, including purchasing, marketing, curriculum development, and professional development. Program Spending Has Generally Aligned With Program Objectives. SWP funds generally are supporting activities related to increasing CTE availability and quality. Common examples include hiring program faculty and staff as well as updating program equipment to align with industry needs. Districts and consortia are showing sufficient demand for SWP funding, allocating the majority of their funds toward specific purposes within one year of appropriation. Spending down these funds, however, typically takes a few years, with administrators often attributing this time line to the length of hiring, purchasing, and construction processes. Chancellor’s Office Has Revisited Certain CTE Policies Under Program. The statute creating SWP directed the Chancellor’s Office to revisit certain systemwide policies related to CTE, with the goals of streamlining curriculum development and facilitating instructor hiring. In response, the Chancellor’s Office developed new regulations that delegate the approval of certain new curricula to local districts without additional state review. In addition, the Chancellor’s Office and the Academic Senate developed new guidance to help districts use a process www.lao.ca.gov 3 analysis full AN LAO REPORT called equivalency to hire industry professionals who would not otherwise meet minimum qualifications to teach at CCC. Despite these efforts, administrators and stakeholders suggest the lengthy curriculum development process and limited pool of instructors remain constraints to expanding CTE. CTE Enrollment Has Increased Since Program Began. Since 2015-16 (the year before SWP began), the estimated share of total CCC enrollment in CTE courses has increased from 27 percent to 31 percent. This reverses a historical trend in which CTE had been decreasing as a share of total enrollment for many years prior to SWP. One possible explanation is that the additional SWP funding has allowed colleges to expand high-cost programs, as intended. The increase in CTE enrollment may also reflect other factors, however, such as a shift in student demand toward these programs. CTE Awards Have Also Increased, but Likely Due to Other Factors. Since 2015-16, the number of CCC students earning any CTE award has increased by 50 percent, with particularly rapid growth among certificates. The number of CCC students earning non-CTE awards, however, has increased even faster. This suggests the increase in awards likely reflects factors beyond SWP, potentially including systemwide efforts to improve student outcomes as well as incentives for districts to confer more awards under the current CCC funding formula. Impact of Program on Students’ Labor Market Outcomes Is Unclear. The Chancellor’s Office does not report on the employment rate of former CTE students. Instead, it reports on the percentage of former CTE students whose current job is related to their field of study. This data is collected through a survey to which only a small share of former CTE students respond. Better data is available on the earnings of former students who are now employed. A data sharing agreement with the Employment Development Department allows the Chancellor’s Office to report on students’ median annual earnings, their median change in earnings from before entering to after exiting college, and the percentage of students attaining a living wage. Since 2015-16, all three of these earnings measures have improved for former CTE students. All three earnings measures have also improved at somewhat similar rates for non-CTE students, however, suggesting these improvements are likely due to labor market dynamics beyond SWP. Broader Workforce Coordination Issues Remain. Although the state is making some progress toward SWP’s objectives, its experience with the program raises a few issues related to workforce coordination more broadly. First, SWP is one of several workforce development programs that involve regional planning. These programs are using different sets of regions to meet similar planning requirements, resulting in inefficiency and fragmentation. Second, community colleges and local workforce development boards are undertaking similar activities related to employer engagement and labor market research, leading to duplication of effort. Third, the use of different performance measures in different workforce development programs hampers the state’s ability to monitor effectiveness across those programs. The Legislature could consider various actions extending beyond the scope of SWP to address these issues, including adopting a unified set of regions for planning, clarifying the respective roles of the community college system and the workforce development boards, and aligning performance measures across workforce development programs. 4 LEGISLATIVE ANALYST’S OFFICE analysis full AN LAO REPORT INTRODUCTION In 2016-17, the state created the Strong of its progress toward meeting its objectives. Workforce Program (SWP) to increase the We begin by providing background on CTE and availability and quality of career technical education SWP. We then analyze SWP implementation and (CTE) at the California Community Colleges (CCC). outcomes. We conclude by raising a few issues for Like other workforce development programs, the Legislature to consider relating to workforce SWP is broadly intended to prepare individuals coordination more broadly. (This report focuses for higher-paying jobs, thus promoting their on the community college component of SWP. economic mobility while also providing a skilled We discuss the K-12 component in a separate brief, workforce for employers. As the program nears Overview of K-12 Career Technical Education.) its tenth year, this report provides an assessment BACKGROUND In this section, we first provide background CTE Courses Span a Broad Range of Industry on community college CTE programs and funding Sectors. The CCC Chancellor’s Office has sources, then describe the key components organized CTE into 12 industry sectors. As Figure 1 of SWP. shows, the largest sectors by enrollment are information and communication technologies, Career Technical Education Figure 1 CTE Is a Key Part of the Largest CTE Sectors Are Community Colleges’ Mission. Information Technology, Business, and Health The CCC system consists of 115 community colleges operated CCC Estimated Full-Time Equivalent Students, 2024-25ª by 72 locally governed districts, plus one statewide online college Information and Communication Technologies overseen by the system’s Board of Governors. Under state law, Business and Entrepreneurship the system’s primary mission is Health to provide academic and CTE Public Safety instruction at the lower-division Education and Human undergraduate level. CTE accounts Development for about 30 percent of instruction Energy, Construction, and Utilities across the CCC system, based on Advanced Transportation the estimated number of full-time and Logistics equivalent (FTE) students. Like Advanced Manufacturing most other community college Retail, Hospitality, and Tourism instruction, the majority of CTE Agriculture, Water, and instruction is offered for credit. Environmental Technologies About 5 percent of CTE instruction Life Sciences and Biotechnology is noncredit, typically consisting Global Trade of short-term programs at the 15,000 30,000 45,000 60,000 75,000 precollegiate level. ª Reflects estimates based on data reported in the Chancellor's Office's DataMart platform as of November 2025. CTE = career technical education. www.lao.ca.gov 5 analysis full AN LAO REPORT business and entrepreneurship, and health. These certificates, about 30 percent of associate degrees, three sectors together account for more than half of and all bachelor’s degrees awarded by CCC. total CTE instruction. State Primarily Supports CTE Through Community Colleges Award CTE Certificates Apportionments. Community colleges receive and Degrees. Like other community college the bulk of funding for their core operations programs, CTE programs typically lead to either through apportionments. The state pays for certificates or associate degrees. Community apportionments using Proposition 98 funding, colleges offer CTE certificates in many areas, with which consists of state General Fund and local just a few examples being accounting, computer property tax revenue. Since 2018-19, the state networking, and medical assisting. CTE certificates has allocated apportionments to districts using generally focus on occupational skills, and they the Student Centered Funding Formula (SCFF). require anywhere from a few months to more than Under SCFF, districts generate funding based one year of full-time study. By comparison, CTE on their enrollment, their low-income student associate degrees include both occupational skills counts, and certain student outcomes (such as and general education, and they typically entail two the number of students completing a certificate or years of full-time study. Since 2015, state law has degree). We estimate CTE instruction generates also authorized CCC to offer bachelor’s degrees about $3 billion in apportionments annually. if those programs do not duplicate programs This represents nearly 90 percent of Proposition 98 offered by the California State University or the funding for CTE, as Figure 2 shows. While districts University of California. CCC has since launched generally have broad discretion over apportionment bachelor’s degrees in fields such as dental hygiene, spending, a state requirement known as the emergency management, and biomanufacturing. “50 percent law” specifies that at least half of these In total, CTE accounts for about 45 percent of funds must go toward the salaries and benefits of classroom instructors. Figure 2 Several State Programs Support Community College CTE Ongoing Proposition 98 Funding (In Millions), 2025-26 Program Description Funding Apportionments Provides general purpose funding to community college districts. Amount reflects estimated $3,003a share of funding generated by CTE programs. CCC Strong Workforce Provides funding to community college districts and regional consortia to increase the 290b Program availability and quality of CTE programs. CCC Apprenticeships Supports the classroom instruction component of existing apprenticeship programs, as well 66c as grants to support the launch of new apprenticeship programs in nontraditional sectors. Economic and Workforce Provides funding primarily for regional coordination around CTE programs, employer 23 Development Program engagement, and labor market research. California Adult Education Provides funding for precollegiate education. Amount reflects estimated share of program 16d Program funding spent on noncredit CTE programs at CCC. Calbright College Provides short-term, competency-based online programs for working adults. 15 Nursing Program Support Funds enrollment growth and student support in community college nursing programs. 13 Total $3,427 a Amount assumes 30 percent of apportionment funding is generated by CTE, reflecting the approximate share of instruction that is classified as CTE. b Of this amount, $60 million annually through 2028-29 is designated for a nursing initiative. Amount excludes $164 million ongoing for the K-12 Strong Workforce Program. c Amount excludes $62 million ongoing for apprenticeships affiliated with K-12 local education agencies. d Amount assumes 12 percent of program funding goes to CCC based on historical trends, and CCC in turn spends 20 percent of those funds on CTE courses based on the approximate share of noncredit instruction that is classified as CTE. CTE = career technical education. 6 LEGISLATIVE ANALYST’S OFFICE analysis full AN LAO REPORT State Also Funds Several CTE Categorical attainment, employment, earnings, and retention Programs. The largest of these programs is with the same employer. Beyond setting these SWP, which we describe further in the next planning requirements, WIOA provides funding for section. Another notable categorical program various workforce-related programs. In 2023-24, is the Economic and Workforce Development 18 CCC districts reported receiving $8 million in (EWD) program, which primarily supports regional WIOA funds, though much of this funding was coordination, employer engagement, and labor likely for instruction in basic skills (such as English market research activities. Other categorical language and literacy) rather than CTE. programs fund specific types of CTE programs, Strong Workforce Program including apprenticeships (programs that combine paid on-the-job training with related classroom CCC Convened Task Force to Examine Ways instruction), noncredit programs, online programs, to Improve CTE. In 2014, the CCC Board of and nursing programs. Governors convened the Task Force on Workforce, Job Creation, and a Strong Economy—commonly Federal Perkins Funding Supports CTE. known as the “Strong Workforce Task Force”—to In addition to state funding, CCC receives federal examine ways to produce more industry-valued funding for CTE through the Strengthening Career and Technical Education for the 21st Century Act certificates and degrees. The task force consisted (Perkins V). In 2025-26, CCC is receiving $74 million of 26 members representing CCC and its external in Perkins V funds. Of this amount, $65 million is for stakeholders, including workforce agencies, local CTE program costs. The Chancellor’s Office industry, and labor. The task force developed a allocates these funds across all local community series of recommendations for improving CTE college districts according to their count of CTE in several key areas, including funding, regional students who are economically disadvantaged. coordination, outcomes data, curriculum, and (Under the Perkins V program, students are faculty. In fall 2015, the Board of Governors adopted typically identified as economically disadvantaged the task force’s recommendations and requested a based on their receipt of need-based financial $200 million ongoing systemwide augmentation to aid or other public assistance.) An additional implement them. $7.1 million supports state leadership activities State Created New Program to Expand CTE to improve CTE, including regional coordination. Availability and Quality. The 2016-17 state budget The remaining $2.6 million supports state-level funded the Board of Governors’ request, providing program administration. $200 million ongoing Proposition 98 General Fund to create SWP. Subsequent augmentations have Federal Workforce Innovation and brought the program funding level to $290 million Opportunity Act (WIOA) Sets Planning Requirements. In California, WIOA is administered ongoing. (Of this amount, $60 million is currently primarily by the California Workforce Development being redirected to a nursing initiative, as we Board and 45 local workforce development boards. discuss in the box on page 11.) The program’s Under WIOA and associated state law, each of statutory objective is “expanding the availability these boards is required to have representation of high-quality, industry-valued career technical from industry, labor, and education, with more education and workforce development courses, than half of the members on each board coming programs, pathways, credentials, certificates, and from industry. The state board, the local boards, degrees.” This objective is commonly summarized and 15 regional planning units comprised of local as providing “more and better” CTE. Statute links boards are each required once every four years to this objective to the broader goal of preparing develop an overarching strategic plan for preparing individuals for jobs, thus promoting their economic a skilled workforce. These plans are required to set mobility while also providing a skilled workforce performance goals using specific measures related for industry. to participants’ skill gains, certificate or degree www.lao.ca.gov 7 analysis full AN LAO REPORT Program Is Intended to Address High Cost in their regional labor market (such as job growth of CTE Instruction. One key issue the Strong within specific sectors) and adjust their spending Workforce Task Force identified was that CTE priorities accordingly. programs tend to have relatively high instructional Funding Consists of a Local Share and costs. These costs are largely driven by a need a Regional Share. Under statute, the annual for specialized equipment and facilities as well appropriations for SWP are divided into two main as smaller class sizes. The task force believed shares—a local share comprising 60 percent of the that colleges had a disincentive to expand these funds and a regional share comprising 40 percent. programs because they received the same (Before calculating these shares, the Chancellor’s per-student apportionment funding rate as Office may set aside up to 5 percent of total SWP lower-cost programs. SWP was intended to help funds for systemwide activities.) The local share address this disincentive by providing categorical is allocated directly to districts, while the regional funding to expand CTE. share is allocated to the eight SWP consortia. Program Emphasizes Regional Coordination. Both shares are to be used for purposes that As a condition of receiving SWP funds, community align with program objectives and meet the needs college districts are required to participate in of local and regional economies, as identified in regional consortia. Statute specifies that the SWP regional plans. Beyond this, districts and consortia regional consortia are to align to the extent possible have broad discretion over how to spend the funds. with the WIOA regional planning units and expand Statute Creates Formula for Allocating upon existing CCC consortium infrastructure. Local and Regional Shares. The Chancellor’s The Chancellor’s Office has chosen to implement Office must allocate both shares according to a SWP using a set of existing consortia it created in four-part formula, as Figure 4 shows. Under this the 1990s to review new CTE program curricula. formula, a district or consortium receives more Figure 3 shows these eight consortia. Beyond SWP funding if it has more CTE students, a higher funding, these consortia receive EWD funding. unemployment rate (suggesting more training In 2025-26, EWD is providing the consortia with demand from job seekers), more projected job $12 million ongoing Proposition 98 General Fund openings, and better outcomes. Statute specifies to support employer engagement activities. EWD that outcomes are to be assessed using the also is providing $7 million ongoing Proposition 98 WIOA performance measures. The Chancellor’s General Fund for labor market research centers Office, however, is using a somewhat different intended to support consortia planning and other set of performance measures it selected with CTE activities. Additionally, the consortia are input from a committee of CCC representatives. receiving $2.6 million in federal Perkins V funding As Figure 4 shows, these measures include a mix for their general operations. of academic and labor market outcomes. Districts Program Has Certain Planning Requirements. and consortia receive a certain number of points Statute requires each SWP consortium to for each student who attains these outcomes, develop a four-year plan. The plan is to include with points generally doubled if the student is various components, including the consortium’s economically disadvantaged (as defined under governance model, an analysis of regional labor the Perkins V program). Certain outcomes related market needs, an inventory of regional and local to students’ employment and earnings reflect the spending priorities, measurable regional goals, program’s broader goal of preparing individuals for and a description of how the plan aligns with other higher-paying jobs. regional workforce development plans (such as Statute Directs Chancellor’s Office to WIOA plans). Each consortium is to collaborate Expedite Curriculum Approval. The legislation on planning with external stakeholders, including creating SWP required the Chancellor’s Office to local workforce development boards, industry, and develop and implement various policies to improve labor representatives. The plan is to be updated CTE—including a plan to streamline curriculum annually, allowing the consortia to monitor changes approval. The CCC curriculum approval process is 8 LEGISLATIVE ANALYST’S OFFICE analysis full AN LAO REPORT established in systemwide regulations Figure 3 and guidance. At the time SWP was created, the process involved many SWP Is Implemented Through Eight Regional Consortia steps at the local, regional, and state levels. Each new CTE course or program had to be reviewed by the district’s curriculum committee and governing board, the regional consortium, North/Far North and finally the Chancellor’s Office. (The process was similar for non-CTE courses and programs, except that these did not require review by the regional consortium.) The Strong Workforce Task Force believed this process could be slowing the Bay Area development of CTE programs, making it harder for colleges to keep pace with Central Valley/Mother Lode changing industry needs. Statute Also Directs Chancellor’s Office to Eliminate Barriers to Hiring Instructors. The legislation South Central Coast creating SWP also required the Inland Empire/Desert Chancellor’s Office to develop policies that eliminate barriers to hiring CTE Los Angeles Orange County instructors, including by reevaluating San Diego/Imperial the minimum qualifications for those positions. In general, to be hired as a CCC instructor, an individual SWP = Strong Workforce Program. must meet certain systemwide minimum qualifications or other criteria that their district approves Figure 4 through a local process known as SWP Allocation Formula Has Four Components “equivalency.” The Chancellor’s Office Formula Used for Regional and Local Funds developed and periodically updates the minimum qualifications based on recommendations from the Academic Senate of the California Community Colleges. At the time SWP was Projected Job Openings • Attainment of 9+ CTE units or created, the minimum qualifications 17% noncredit milestone • Completion of CTE certificate, Unemployment Rate for many CTE disciplines were either degree, or apprenticeship 33% a bachelor’s degree and two years of Performance • Transfer to four-year university Measures • Employment in job closely related professional experience or an associate 17% to field of study • Median annual earnings after degree and six years of professional program exit experience. Certain CTE disciplines, • Change in earnings, before program entry to after exit such as business and nursing, required a CTE FTE Students • Attainment of living wage 33% master’s degree. The Strong Workforce Task Force believed these requirements might be limiting the pool of industry professionals who could serve as SWP = Strong Workforce Program; CTE = career technical education, and FTE = full-time equivalent. CTE instructors. www.lao.ca.gov 9 analysis full AN LAO REPORT ASSESSMENT In this section, we analyze how well SWP is CCC Administrators Indicate Some meeting its objectives of increasing the availability Benefits to Regional Coordination. Based on and quality of CTE. First, we examine whether conversations with both consortium and district program implementation has been consistent administrators, regional coordination under SWP with these objectives. Then, we review program has had benefits. Anecdotally, it has allowed outcomes, with a focus on trends at CCC over the districts to combine their resources for various past decade in CTE student enrollment, award purposes, including equipment and software completions, employment, and earnings. purchases, marketing campaigns, curriculum development, and professional development. Program Implementation Some administrators also indicate that consortia Regional Consortia Are Mostly Meeting have become more effective at reviewing new Planning Requirements. Under SWP, all eight program curricula under SWP, potentially helping consortia have developed four-year regional plans. reduce unnecessary program duplication across As of this writing, five consortia have updated colleges. Data quantifying these benefits, however, their plan within the past year, while the other is not available. three most recently updated their plan between Use of Funds Is Broadly Consistent With one and two years ago. Although the plans vary Program Objectives. Based on our review of in content, they generally cover most of the key regional plans and spending data, SWP funds components required under statute. One common generally are supporting activities related to exception is that many plans do not identify projects increasing the availability and quality of CTE. supported by the local share, as these spending As Figure 5 shows, the regional and local shares decisions are typically made by districts without the support a range of expenses. Nearly half of both consortium’s involvement. shares go toward employee compensation, which Extent of Coordination Varies Across includes salaries and benefits for CTE instructors as Regions. Of the eight consortia, five designate a well as a broad range of non-instructional positions majority of their SWP regional share toward projects such as CTE deans and career services staff. (One selected centrally by the consortium. The other reason the share going toward instructional salaries three consortia (Bay Area, North/Far North, and is not larger is that the 50 percent law leads districts South Central Coast) designate only a small to cover these costs primarily using apportionments percentage of their regional share toward such rather than categorical funds.) Beyond employee projects. These three consortia allocate the majority compensation, the next largest expense type for of their regional share to their member community the local share is capital outlay, which typically college districts, with the districts deciding locally consists of purchasing equipment and renovating how to spend these funds. On the one hand, applied learning spaces. For the regional share, this latter approach does not promote as much a notable amount of funding goes toward “other” strategic planning and regional coordination—key expenses, common examples of which include components of the SWP program. On the other professional development, program marketing, hand, CCC administrators in these three regions labor market research, software licenses, and other indicate their decentralized approach provides contracted services. more flexibility for their districts to address local Districts and Consortia Are Showing priorities, which can be particularly helpful given Sufficient Demand for Funding. Based on their regions are geographically dispersed or have data from the Chancellor’s Office, districts and distinct sub-regional economies. consortia allocate the majority of their SWP funds toward specific purposes within one year. 10 LEGISLATIVE ANALYST’S OFFICE analysis full AN LAO REPORT For example, 94 percent of 2024-25 SWP funds need to be reviewed by their regional consortium.) had been allocated toward specific purposes by To qualify for this streamlined process, new CTE June 30, 2025. Spending down the funds takes programs must meet certain criteria, including longer, however—typically two or three years. having their courses aligned with a common Administrators indicate this is because SWP course numbering system. CTE programs that do spending often involves lengthy purchasing, not meet these criteria for streamlined approval construction, or hiring processes after allocation still require state review, though this step may decisions have been made. As a result, a large amount of SWP Figure 5 funding that has been allocated SWP Funding Supports Various CTE Expenses toward specific purposes (often in the few hundreds of millions of Expenditures of 2022-23 Fundsª dollars) is not yet spent at any given time. Because there are planned Local Share Regional Share uses for these funds, redirecting them has programmatic impacts. This is likely occurring with the recent redirection of SWP funds toward a new nursing initiative, as we discuss in the nearby box. Curriculum Approval Process Has Been Streamlined, but Still Takes Time. In response to the statutory requirement to Instructional Salaries Non-Instructional Salaries streamline curriculum approval, the Employee Benefits Chancellor’s Office has developed Supplies and Materials new regulations. These regulations Capital Outlayb delegate the review of all new Otherc courses and many new programs to local governing boards, without a Reflects data provided by Chancellor's Office in September 2025. requiring additional state review b Includes equipment and facilities. c Includes professional development, program marketing, labor market research, software licenses, from the Chancellor’s Office. (As and other contracted services. before, new CTE programs still SWP = Strong Workforce Program and CTE = career technical education. Rebuilding Nursing Infrastructure Grant Program Recent Redirection of Strong Workforce Funds Is Likely Impacting Programs. The 2024-25 budget redirected $60 million from the Strong Workforce Program (SWP) toward the Rebuilding Nursing Infrastructure Grant Program, a new initiative that awards competitive grants to districts to develop or expand nursing programs. The redirection is to occur for five years, effectively reducing the annual SWP funding level from $290 million to $230 million through 2028-29. The state took this budget action based on data showing that districts and consortia had a large amount of unspent funding from previous years. Since then, more detailed data has become available showing that districts and consortia had already allocated much of that funding toward specific purposes—suggesting there was demand for the higher funding level. Accordingly, some administrators indicate the redirection of SWP funds toward the nursing initiative is having negative impacts on other career technical education programs, such as by leaving less funding available to develop new programs or update program equipment. www.lao.ca.gov 11 analysis full AN LAO REPORT occur faster than before because of the overall year before SWP began) to 2024-25, CTE as a share reduction in curriculum review workload at the of total enrollment increased from 27 percent to Chancellor’s Office. Despite this new process, 31 percent. CCC administrators indicate it still commonly takes CTE Enrollment Increases Could Be Due to 18 months or more to develop a new CTE program. SWP or Other Factors. One possible reason that Based on conversations with CCC administrators CTE is increasing as a share of enrollment is that and external stakeholders, there is still a common SWP funding has helped overcome the disincentive perception among industry that this process moves for colleges to expand high-cost programs, as slowly relative to changes in employer demand. intended. The trend may also reflect other factors, Hiring Instructors Likely Remains a Barrier however, such as a shift in student demand toward to CTE Expansion. In response to the statutory CTE programs. One sign that other factors may be requirement to eliminate barriers to hiring CTE involved is that CTE enrollment is also increasing instructors, the Chancellor’s Office and the as a share of total enrollment in other states. Based Academic Senate established a work group on on the most recent National Student Clearinghouse minimum qualifications. Although the work group fall enrollment report, we estimate the percentage did not recommend notable changes to minimum of community college students majoring in CTE qualifications, it did develop new guidance to help programs nationally increased from 47 percent in districts use the existing equivalency process. fall 2019 to 49 percent in fall 2024. This guidance is intended to facilitate the hiring CTE Enrollment Is Up in Most Regions. of industry professionals who do not have certain Over the past decade, the estimated number of academic degrees but have demonstrated FTE students enrolled in CTE increased notably in equivalent skills through work experience. Data five of the eight SWP regions, as Figure 7 shows. is not available on whether the use of equivalency Meanwhile, CTE enrollment was about flat in has increased since this guidance was issued. two regions and declined in one region. During Based on conversations with CCC administrators, this period, the Central Valley/Mother Lode and hiring instructors remains a key constraint to the Inland Empire/Desert regions had by far the expanding CTE. In addition to finding instructors fastest rates of CTE enrollment growth. These two who meet minimum qualifications, administrators cited barriers related to providing competitive Figure 6 pay, particularly in fields where Historical Downward Trend in individuals can earn much higher CTE Enrollment Has Reversed salaries working in industry CTE as Share of Total Estimated CCC Full-Time Equivalent Studentsª than teaching. Program Outcomes 33% Start of Strong Workforce Program In Break From Earlier Trend, 32 CTE Is Increasing as Share 31 of Total Enrollment. Figure 6 30 shows CTE as a percentage of 29 total estimated CCC FTE students 28 since 1992-93, the earliest year 27 for which the Chancellor’s Office 26 reports this data. For nearly 25 25 years prior to the creation of SWP, 24 CTE had generally been decreasing as a share of total enrollment. 1992-93 1996-97 2000-01 2004-05 2008-09 2012-13 2016-17 2020-21 2024-25 As Figure 6 shows, this trend has ª Reflects estimates based on data reported in the Chancellor's Office's DataMart platform as of November 2025. since reversed. From 2015-16 (the CTE = career technical education. 12 LEGISLATIVE ANALYST’S OFFICE analysis full AN LAO REPORT Figure 7 regions also had the most robust non-CTE enrollment trends, likely CTE Enrollment Has Outpaced reflecting broader demographic Non-CTE Enrollment in Most Regions growth. In all but one region (Orange Percent Change in Estimated CCC FTE Students, County), CTE enrollment outpaced 2024-25 Compared to 2015-16ª non-CTE enrollment during the period. CTE Enrollment Is Up Across Central Valley/Mother Lode All Major Sectors. While the estimated number of FTE students Inland Empire/Desert enrolled in all major industry sectors South Central Coast has grown over the past decade, Statewide Total the growth rate has varied notably San Diego/Imperial by sector, as Figure 8 shows. The Los Angeles fastest growth rates occurred in two smaller sectors: (1) agriculture, water, North Far North CTE Non-CTE and environmental technologies Bay Area and (2) advanced transportation Orange County and logistics. Health, a much larger -30% -20 -10 10 20 30 40 50% sector, also had a relatively fast ª Reflects estimates based on data reported in the Chancellor's Office's DataMart platform as of November 2025. growth rate. Education and human CTE = career technical education and FTE = full-time equivalent. development, meanwhile, had the lowest growth rate. CTE Awards Have Increased Figure 8 Substantially, Likely Due to Factors CTE Enrollment Has Grown Beyond SWP. The Chancellor’s Fastest in Agriculture and Transportation Office provides data on students’ academic and labor market outcomes Percent Change in Estimated CCC FTE Students by Sector, through DataVista, a public 2024-25 Compared to 2015-16ª dashboard launched in fall 2024. Based on this data, the number of students earning any CTE award Education and Human Development increased by 50 percent from 2015-16 Public Safety to 2023-24. Figure 9 on the next Information and Communication Technologies page shows the increase by award type. During this period, the number Business and Entrepreneurship of students earning each type of Advanced Manufacturing CTE award increased significantly. Energy, Construction, and Utilities The number of students earning each Retail, Hospitality, and Tourism of these types of awards in non-CTE fields, however, increased even faster. Health This suggests the increase in CTE Advanced Transportation and Logistics awards likely reflects broader factors Agriculture, Water, and Environmental Technologies beyond SWP. For example, these factors might include systemwide 5 10 15 20 25 30 35 40% efforts to improve student outcomes as well as an incentive created under ª Reflects estimates based on data reported in the Chancellor's Office's DataMart platform as of November 2025. SCFF for districts to confer more CTE = career technical education and FTE = full-time equivalent. awards in order to generate more Note: Size of bubble reflects FTE students in 2024-25. Chart excludes the two smallest sectors apportionment funding. (Global Trade and Life Sciences/Biotechnology), which enroll fewer than 1 percent of CTE students combined. www.lao.ca.gov 13 analysis full AN LAO REPORT SWP performance measure looks Figure 9 at how closely the current jobs of Increase in Non-CTE Awards former CTE students are related to their field of study. Data on this Outpaces Increases in CTE Awards measure comes from a survey Estimated Percent Change in CCC Students Earning Awards, that CCC sends to former CTE 2023-24 Compared to 2015-16 students who exited college about 18 months to two years earlier. Since 2015-16, the percentage Associate Degrees CTE Non-CTE of employed respondents who reported their job is very closely or closely related to their field of study has been in the range of 71 percent Credit Certificates CTE Non-CTE to 74 percent. (The survey defines “very close” to mean the job is in the same field, while it defines “close” to mean that the job is in a different Noncredit Certificates CTE Non-CTE field but still uses what the student learned.) We do not know, however, 50 100 150 200% whether these respondents are representative of CTE students Note: Size of bubble reflects number of students earning awards in 2023-24. Data comes from Chancellor's Office's DataVista Platform as of October 2025. Students who earned multiple more broadly, especially because awards of the same type are counted once in that category, while students who earned multiple only a small share of students types of awards are counted in multiple categories. receiving the survey choose to CTE = career technical education. respond (between 14 percent and 33 percent annually). Data on Employment Outcomes Has Notable Earnings Outcomes Differ for CTE Versus Limitations. One common way to measure the Non-CTE Students. To measure earnings outcomes effectiveness of workforce development programs for former students who are now employed, the is by examining participants’ employment rates, as Chancellor’s Office has a data sharing agreement the nearby box discusses. The employment rate with the Employment Development Department. for CTE students after exiting college is not one of Figure 10 summarizes trends in three earnings the SWP performance measures, however, and measures for former students who enrolled in CTE this data is not reported. Instead, the most relevant Effectiveness of Workforce Development Programs Research on Workforce Development Programs Has Had Mixed Findings. Over the years, numerous studies have examined the effectiveness of workforce development programs. Some studies have found that these programs increase participants’ employment and/or earnings, while other studies have found no effect. A 2022 report commissioned by the U.S. Department of Health and Human Services’ Office of Planning, Research, and Evaluation reviewed existing studies of 144 employment and training programs for low-income individuals. It concluded that these programs on average had small, positive effects for participants (equivalent to an annual earnings increase of about $1,000), with the effect size varying across programs. Based on the broader research, some of the most effective workforce development programs have certain shared characteristics, including a focus on specific high-demand industry sectors and work-based learning components. 14 LEGISLATIVE ANALYST’S OFFICE analysis full AN LAO REPORT Figure 10 Earnings Have Generally Improved for CTE and Non-CTE Students Three Earnings Measures, CCC Students Median Change in Earnings, Median Annual Earnings After Exit Attained Living Wage After Exit Before Entry to After Exit $50,000 50% 50% CTE students 40,000 40 40 Non-CTE students 30,000 30 30 20,000 20 20 10,000 10 10 2015-16 2017-18 2019-20 2021-22 2015-16 2017-18 2019-20 2021-22 2015-16 2017-18 2019-20 2021-22 Note: The CCC Chancellor's Office receives earnings data from the Employment Development Department on former CCC students employed in California, except those who are federal employees, military employees, or self-employed. The figure shows students by the year they last enrolled at CCC. "CTE students" refers to students who enrolled in at least one CTE course that year, while "Non-CTE students" refers to students who enrolled in at least one non-CTE course that year. The first chart reflects estimated median annual earnings for these students in the year after they last enrolled. The second chart reflects the percentage of these students who attained a living wage, based on comparing their earnings in the year after they last enrolled with certain estimated expenses for a single adult in their district's county. The third chart reflects the median percent change in earnings for these students from two quarters prior to the start of the academic year they first enrolled to two quarters after the end of the academic year they last enrolled. CTE = career technical education. courses compared to former students who enrolled measures, and at somewhat similar rates as CTE in non-CTE courses. (Some students are included students. This suggests the earnings improvements in both categories.) In the year after exiting college, reflect factors beyond SWP, likely including the former CTE students have higher median annual overall growth in wages in the broader economy earnings than non-CTE students. Correspondingly, during the period. a higher share of former CTE students than non-CTE Some Regions Have Seen Larger students attain a living wage, based on certain Improvements in Earnings Measures. Figure 11 estimated expenses for a single adult in their county. shows the median change in earnings from before The median change in earnings from before entering entering to after exiting college for CTE students to after exiting college, however, is slightly lower for CTE students than non-CTE students. One possible explanation for this Figure 11 combination of outcomes is that CTE Earnings Improvements Vary Somewhat by Region students could on average have higher Median Change in Earnings for CCC CTE Students wages than non-CTE students before entering college. 2022-23 Compared Earnings Have Improved, Likely 2015-16a 2022-23a to 2015-16b Reflecting Broader Factors Beyond San Diego/Imperial 20% 30% 9.9% SWP. From 2015-16 to 2022-23, all Orange County 22 31 9.4 Central Valley/Mother Lode 24 31 7.8 three earnings measures in Figure 10 Inland Empire/Desert 27 33 5.4 improved for CTE students. This might Bay Area 28 31 3.6 be a sign that SWP is making progress Los Angeles 25 29 3.5 toward the broader economic South Central Coast 25 28 3.3 North/Far North 25 28 3.0 goal of preparing individuals for a Reflects median percent change in earnings for CTE students from two quarters prior to the start higher-paying jobs. During this period, of the academic year they first enrolled to two quarters after the end of the academic year they last however, non-CTE students also saw enrolled. Earnings are adjusted for inflation. Figure shows data for students who last enrolled in the selected years and enrolled in at least one CTE course in that year. improvements in all three earnings b Reflects percentage point improvement in median change in earnings. CTE = career technical education. www.lao.ca.gov 15 analysis full AN LAO REPORT by region. Of the three earnings measures, this one largest improvements, the consortia make SWP arguably comes closest to reflecting the added regional spending decisions centrally. This might value of college. All regions saw improvements be a sign that better regional coordination is in this measure between 2015-16 and 2022-23. contributing to larger improvements in the industry For example, in the San Diego/Imperial region, value of CTE programs. It is also possible, however, CTE students who last enrolled in 2015-16 saw a that other factors (such as regional differences in median earnings increase of 20 percent, while CTE labor markets) are leading some regions to see students who last enrolled in 2022-23 saw a median larger improvements than others on this particular earnings increase of 30 percent—an improvement performance measure. Looking across all SWP of 10 percentage points over the period. measures, there is not a clear pattern of some The amount of this improvement varied across regions consistently seeing larger improvements regions. Notably, in the four regions that saw the than others since the beginning of the program. ISSUES TO CONSIDER In this section, we raise a few issues for the Regional Planning Remains Fragmented Legislature to consider stemming from our review of Across Workforce Development Programs. SWP. Although the state is making progress toward The state’s workforce development efforts require SWP objectives, its experience with the program significant coordination to ensure that its many raises several key questions related to planning, different education and training providers are coordination, and oversight across workforce producing workers that align with the needs of its development programs more broadly. numerous employers. One way the state has tried State Has Made Some Progress Toward to address this coordination challenge is through SWP Objectives. Over the past decade, SWP regional planning. Regional planning is a key has funded many activities that support the component of not only SWP and WIOA, but also program’s objectives of increasing CTE availability various other state programs such as the California (such as hiring faculty) and CTE quality (such as Adult Education Program, the California Jobs First updating program equipment to align with industry Initiative, and the K-16 Regional Collaboratives. needs). Likewise, enrollment in CTE courses has These programs, however, are using different increased, and the number of students completing sets of regional coordinating entities to meet CTE certificates and degrees has grown notably. similar planning requirements. The current While SWP funding could have contributed to these approach is inefficient, as it requires many of the trends, the trends also could reflect other factors— same groups (including community colleges, such as shifts in student enrollment demand, workforce development boards, and industry systemwide efforts to improve student outcomes, representatives) to participate in multiple planning and incentives under SCFF for districts to confer efforts with overlapping objectives. Keeping these more awards. Moreover, based on our analysis, it planning efforts separate may also contribute to is difficult to conclude how well SWP is achieving fragmentation in program delivery. To address the broader economic goal of preparing individuals these issues, the Legislature could consider moving for higher-paying jobs. Data on employment toward one unified set of regions and planning outcomes for CTE students is incomplete, and data requirements across workforce development on earnings show similar trends among CTE and programs. A unified set of regions could plan more non-CTE students. These findings suggest broader holistically and better coordinate the use of federal dynamics in the labor market could be at work. and state workforce development funding. The Legislature could weigh all of this information State Has Duplicative Structures for when considering future programmatic or funding Assessing Industry Needs. As part of its efforts to decisions related to SWP. improve the quality of CTE, the community college 16 LEGISLATIVE ANALYST’S OFFICE analysis full AN LAO REPORT system has created a structure to assess industry Different Performance Measures Across needs using employer engagement staff and Programs Weakens Oversight. Although statute labor market research centers. A similar structure requires the use of WIOA performance measures also exists in the workforce development system. in SWP, the program instead uses its own set of Local boards are also responsible for employer measures. This makes it more challenging for engagement, with more than half of each board’s the Legislature to monitor effectiveness across members coming from industry. Moreover, local workforce development programs. For example, boards also conduct labor market research, often while the percentage of participants who are using the same public data sets and purchasing employed after exiting the program is a key the same proprietary analytics tools as CCC’s performance measure for WIOA programs, this labor market research centers. Although these data is not reported for SWP. The Legislature activities are important to ensuring that workforce could consider directing the Chancellor’s Office development programs have industry value, having to use WIOA performance measures in SWP, as two systems responsible for the same work is originally intended. Doing so would make it easier inefficient. To reduce duplication of effort, the to combine outcomes data across programs, Legislature could consider clarifying the roles of providing a more complete view of the state’s the community college system and the workforce efforts to promote economic mobility and prepare a development system as it relates to assessing skilled workforce. It would also allow the Legislature industry needs. to compare outcomes across programs in a more consistent way. www.lao.ca.gov 17 analysis full AN LAO REPORT 18 LEGISLATIVE ANALYST’S OFFICE analysis full AN LAO REPORT www.lao.ca.gov 19 analysis full AN LAO REPORT LAO PUBLICATIONS This report was prepared by Lisa Qing, and reviewed by Jennifer Pacella and Ross Brown. The Legislative Analyst’s Office (LAO) is a nonpartisan office that provides fiscal and policy information and advice to the Legislature. To request publications call (916) 445-4656. This report and others, as well as an e-mail subscription service, are available on the LAO’s website at www.lao.ca.gov. The LAO is located at 925 L Street, Suite 1000, Sacramento, California 95814. 20 LEGISLATIVE ANALYST’S OFFICE