OKLAHOMA CITY — A bill that could bring major changes to how Oklahoma funds higher education and career tech programs to meet workforce development needs passed a key Senate subcommittee on Tuesday. .
Senate Bill 1358 would give a recently created state commission greater power to target funding to produce workers with in-demand degrees, certifications and skill sets.
The Oklahoma Workforce Commission, created last year, will be responsible for managing the $200 million appropriated this year to the Workforce Development Revolving Fund. The committee will also be responsible for any additional funds it may receive through appropriations in the future.
The bill's author, Sen. Adam Pugh (R-Edmond), said the state needs to focus more on producing young people trained for careers in high-demand fields such as aerospace, health care, cybersecurity and education. He said there is. He said higher education and career tech officials must embrace the Workforce Commission's goal of helping “realign and prioritize” programs to better serve the nation. Ta.
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The senator, who chairs the Senate Education Subcommittee and is a member of the Select Committee on Business Retention and Economic Development, said he has traveled the state meeting with leaders of large industry and small business owners. Stated.
“By far, their biggest issue is workforce,” he said.
Pew said there are currently about 21,000 job openings in the state that require a college degree and about 15,000 that require certifications typically earned through CareerTech training. .
“Overall, what we have is a numbers problem, a math problem. Trying to grow the economy is fine, but we don't have enough people to fill our jobs,” Pew said. he said.
He added that approximately 7,200 students are on the waiting list to access the CareerTech program and there are no slots available for them. “Some of this funding will be used first to eliminate waiting lists and then used to (address needs) in areas of the economy that are growing, such as aerospace,” Pugh said. Stated.
The Workforce Commission, a nine-member panel made up of business and legislative leaders appointed by the governor, responded to news that Panasonic and Tesla considered but ultimately decided against relocating to Oklahoma. was established last year.
The new commission is supported by the State Chamber Research Foundation, which cited a 2023 Business Leaders Poll that highlighted workforce challenges expressed by state businesses. Half of the business leaders surveyed said they have the greatest difficulty finding skilled and qualified workers, and Oklahoma's education system should focus more on providing students with the specialized skills to meet workforce needs. He said it should be placed.
Pew said the first $200 million in the Workforce Development Revolving Fund is a “one-time” amount that Congress can spend, including reserves carried over from the past two fiscal years and savings identified in some programs. He said it would be taken out of the funds.
“Then let’s try this out on a trial basis,” he said, “and if it’s successful, we’ll come back and discuss it.” “If[higher education institutions and career tech]can align what our economy needs and what our workforce needs and be innovative in ways that support economic growth for our state, then these You will be able to withdraw your funds for many years into the future. ”
Some senators on the subcommittee, including Sen. Dave Rader (R-Tulsa) and Sen. Julie Daniels (R-Bartlesville), cited the “daunting” price tag that comes with the bill. However, he ultimately voted in favor.
“I understand this is a significant amount of money that could potentially turn into a permanent claim,” Pugh responded. “But as we take a lot more money and go after out-of-state and sometimes international companies and pay them to locate here, we focus on the workforce and say, ‘Locate here. We don’t have to pay companies to do that.’” Because the workforce they need is here, and they need to be based here. ”
The committee voted 8-3 to refer the bill to the Senate Appropriations Committee, but one member declined to vote for personal reasons, citing constitutional privilege. One of the no votes, Sen. Dusty Devers (R-Elgin), supports “performance-based” budgeting for education, but said the millions of dollars attached to the bill would go back to taxpayers. He said that he thought it would be more appropriate to do so.
“We're in a dilemma where we're struggling with the cost of living and inflation and yet we're talking about tax cuts,” Devers said. “If I have $200 million to spend on something, I'm going to send it back to the taxpayers. Frankly, I'm convinced they're better at deciding how to spend money than the government. I am.”
Devers said he's also concerned about state interference in what he says should be a “competitive market” to meet labor needs.
Pew countered that passing the bill “means investing in building the skill sets for our children and then turning our economy around and allowing it to grow naturally.”
“But it has to be intentional,” he said.