Issue Position: Career and Tech Education - "Ready To Work"

Issue Position

Like so many Marylanders, my family's story in this country was built on the foundation of education; when my grandmother came to the United States as a domestic servant, she hoped that one day her son would become the first in our family to attend college.

Our State, and our role in the global economy, looks much different now than it did then. We've spent the past seven years building an innovation economy here in Maryland -- an economy in which our workers compete for good-paying jobs in an increasingly competitive international market. And while many things have changed, education remains the vehicle through which so many will succeed. But the way we think about education is changing, and Career and Technology Education ("CTE") -- once dismissed as a vocational "alternative" to traditional classroom learning -- is becoming an increasingly critical part of Maryland's path towards a promising future.

Our commitment to preparing our students to compete for jobs isn't new -- CTE programs in schools throughout our State are already national models, we've increased by 25% the number of Science, Technology, Engineering, and Math ("STEM") degrees awarded, and this past legislative session, we created a $2 million Early College Innovation Fund to support an expansion of early college access programs, providing an accelerated pathway for CTE and STEM students.

But our work is far from finished. We have an incentive to continue our commitment to CTE: as we look to the future, we know that 38% of the new jobs in our State won't require a bachelor's degree, but will require some kind of advanced learning beyond a high school diploma.

In order to prepare our students for those jobs, we're going to increase our annual investment in public school construction $160 million by 2018 (FY2019) and dedicate $100 million to CTE facility construction over four years; we'll expand CTE program completion through the Early College Innovation Fund; we'll increase the number of high school students graduating with both a CTE certification and a diploma; we'll work with -- and incentivize -- employers to create internship programs that prepare our students for tomorrow's jobs; and we'll bring stakeholders to the table, in a more consistent way, through the creation of a standing Committee on Career and Technology Education within the Governor's P-20 Leadership Council.

Our State has made progress: today, 3 in 5 Maryland students are currently accessing CTE programs. We're going to expand these programs, improve them, and create new educational opportunities where they're needed. As we look to the future, we're going to ensure that all of Maryland's high school students have access and the choice to develop the skills today which will help them compete for the jobs and careers of tomorrow.

Sincerely,

Lt. Governor Anthony G. Brown

What We've Achieved

Progress: Over the past seven years, Maryland has:

Made Record Investments

* Made record investments in the construction of Maryland's public schools -- an average of $340 million per year.
* Increased annual operating dollars for schools by $1.5 billion -- 35% growth since 2007.
* Passed the Baltimore City Public Schools Construction and Revitalization Act, which will enable Baltimore City to invest $1.1 billion to modernize some of the oldest schools in the State.
* Passed the Early College Innovation Fund, investing in partnerships between high schools and community colleges that provide students with skills, education, and credentials in high-demand fields.

Increased Student Performance and Achievement

* Closed the income achievement gap more than any other state. Improved student achievement and school, college and career readiness by over 25%, two years in advance of our 2015 target.
* Reduced high school dropout rates by 1.4% since 2010 and achieved the highest graduation rate in recent history in 2011.
* Increased skills training by 17.4% since FY2010.

Improved Educational Data Systems

* Developed and implemented the Maryland Longitudinal Data System, which integrates our education and workforce data systems. This allows us to track the progress of our students as they move through school and into careers.

Mission: The Brown-Ulman Administration is committed to the life-long success of every Marylander. That success begins with high quality preschool and requires that every student have the opportunity to learn and train in the highest quality facilities that we can offer. To provide a path for all Marylanders, we will invest in our public school infrastructure to deliver a high quality education to every child; and give each student choices and an opportunity to learn the skills necessary for jobs in today's economy.
1. Increase Annual Investments in Public School Construction $160 Million by FY2019 and Dedicate $100 Million to CTE Infrastructure Over Four Years

Earlier this year, the Brown-Ulman Administration committed to set a new high water mark for public school construction by reaching $500 million in annual investments. In order to meet this goal, we will increase our annual investment by $160 million by FY2019, of which we will dedicate $100 million to Career and Technology Education ("CTE") facilities over four years.

CTE offers our students options that prepare them for success in today's economy. Whether he or she wants to be a carpenter, machinist, cosmetologist, certified nurse assistant, chef, or information technician, CTE programming is designed to develop skills that prepare students to enter the workforce.

Facts about CTE:

* National statistics show that, on average, high school students engaged in CTE programs graduate at a rate of over 90%, compared to the national average of close to 75%.
* Students are eight to ten times less likely to drop out at 11th and 12th grade, when enrolled in a CTE program.
* Of the 46.8 million US job openings projected between 2008 and 2018, approximately one-third require an associate's degree or certificate and one-quarter require only a high school diploma. Compare this to the one-third of total jobs for which a bachelors or advanced degree is a prerequisite.

To deliver new facilities, we will utilize a combination of grant funding, state and local bonding, Public-Private Partnerships, as well as traditional state financing.

A. Dedicate $100 Million in Competitive Grants for New Investments in CTE Facility Construction

The Brown-Ulman Administration will bolster Maryland's commitment to CTE education through a 4-year, $100 million competitive grant program for CTE infrastructure across our State. We will dedicate $10 million in FY2016 for CTE facility design and construction, and add $10 million to the annual investment for the following three years, reaching $40 million annually in FY2019 and a total of $100 million. These grants, combined with average local matching investments of $50 million, will result in approximately $150 million in total CTE facility investments. This $150 million is equivalent to constructing three new facilities similar to Howard County Public Schools' Applications and Research Laboratory or the new Dorchester Career and Technology Center in Cambridge. Through competition, the grant will target investments in school systems that demonstrate a commitment to CTE expansion and improvement.

Proposals that meet the following criteria will be given the highest score:

* Curriculum either creates new CTE opportunities for students in the geographical reach of the proposed project or expands an existing CTE program in high demand among local students
* Training addresses a workforce shortage or emerging industry in Maryland
* School partners with local business for investment in construction, operation, and ongoing programming
* Program offers certification by high school completion or college/technical school credit
* Facility doubles as regional testing center for CTE

By building new and upgrading existing CTE centers and CTE-focused high schools, we will better prepare more students to enter the workforce and grow our economy by attracting employers demanding a skilled workforce.

Cost: This program will be funded at $10 million (capital) in FY2016, $20 million (capital) in FY2017, $30 million (capital) in FY2018 and $40 million (capital) in FY2019.

B. Leverage State and Local Bonding Authority

In 2013, we stood with Mayor Stephanie Rawlings-Blake, the Baltimore City Board of School Commissioners, and the Baltimore City Delegation to dedicate $20 million in State and $40 million in City funding to secure up to $1.1 billion in bond revenue for City school construction. This investment will renovate or replace some of the oldest schools in Maryland, which, on average, have not been updated in 39 years.

This model should be explored for other interested counties, mindful of our spending affordability guidelines, which ensure that we borrow responsibly and at the lowest possible interest rates. We will also consider the ability of local school districts to effectively manage this volume of funding.

Together, we will work with county governments and boards of education across the State, to responsibly leverage State and local capital investments to make every Maryland school a place we are proud to educate our children.

Cost: This initiative will not require any additional funding.

C. Utilize Public-Private Partnerships to Bring New Facilities Online

In 2013, I led the effort to pass new legislation expanding the use of public-private partnerships ("P3s") in Maryland. P3s combine the strengths of the public and private sector in order to deliver high quality infrastructure projects. P3s provide us the flexibility and agility to respond to emerging priorities without disturbing other projects already in the funding queue. In partnership with labor and industry, we will utilize P3s as one tool to expand-- not to supplant -- the way we invest in Maryland's education infrastructure.

In FY2016, we will invest $1 million in our operating budget to staff and provide analysis for P3 school construction projects. The following year, we will double that funding, to $2 million in order to complete the analysis. In FY2017 and FY2018, we will continue staff funding for implementation of P3s at $1 million. Among these projects, we will prioritize proposals for CTE facilities, where we will train a growing number of Maryland students to enter the workforce. In FY2018 and 2019, we will make an annual capital investment in P3 projects of $10 million and $20 million, respectively.

Maryland's local boards of education have already begun discussing the benefits of utilizing P3s for school construction. These will likely include projects that:
* Involve new, vertical construction;
* Include a number of central office and support buildings as well as schools;
* Are located within reasonable geographical proximity of one another; and
* Together have a construction value of at least $100 million.

The Brown-Ulman Administration will work with local boards of education to support these efforts, where State investment will generate the maximum potential benefit to students and local education systems.

Cost: This program will be funded at $1 million (operating) in FY2016, FY2018, FY2019; $2 million (operating) in FY2017; and $10 million (capital) in FY2018 and $20 million (capital) in FY2019.

School Construction Investment

(*Assuming $340 million baseline investment.)

CTE Construction Grant
2. Increase CTE Program of Study Completion to 40% by 2018 and Expand Early College Innovation Fund to $20 Million

In President Obama's 2013 State of the Union Address, he called upon our education system to provide American students with opportunities to earn tangible skills and certifications by the time they graduate high school. In November of 2013, the President announced the Youth CareerConnect Grant, a $100 million federal investment in partnerships between high schools, colleges, and businesses to enhance learning experiences designed to prepare students for in-demand careers, including CTE programs.

CTE options currently exist in all 24 counties across our great State. They are administered through various "programs of study," based upon state-standardized models that typically "consist of four sequential courses that each strengthen and deepen a student's knowledge and understanding of the subject."

Although the number and types of CTE options available to students vary widely from county to county and school to school, as of 2012, nearly 60% of high school students in Maryland had exposure to at least one CTE course.

Number of State Programs of Study Implemented by School System

Despite growing CTE course enrollment, of all high school graduates in 2012, only 21% (12,527) completed a CTE program of study.

By 2018, we aim to raise the bar for CTE program of study completion to 40%. We will do this through the capital investments outlined above and by programmatic operating investment.

In 2013, the O'Malley-Brown Administration led the charge for college and career readiness by passing the Early College Innovation Fund. Earlier this year, we invested $2 million in six partnerships between public schools and community colleges to begin development of programs that allow high school students to earn college credits, which set students on the path to CTE and STEM-related careers.

These programs are a critical tool for our State's ability to prepare students for the modern job market. To enhance options for CTE education and guide more students to CTE program completion, we will increase this investment tenfold, to $20 million annually.

Cost: This program will be funded at $20 million (operating) in FY2016 and continuing through FY2019.
3. Increase Number of Students Graduating with Both High School Diploma and CTE Certification by 3,000 by Expanding Access to Testing Centers for CTE Credentials

Wherever possible, a CTE program of study should culminate in a certification examination. We aim to graduate 3,000 more students annually who have earned both a diploma and certificate or license by the end of 2018. In 2012, 4,681 Maryland high school students graduated with both a diploma and a certificate or license in their field of study. That means, in 2012, only 37% of CTE program of study graduates received a certification or license at the completion of their high school career.

A 2009 report from the P-20 Leadership Council's CTE Task Force indicates a need to invest in regional testing centers to ensure that students take and pass industry-recognized examinations that result in marketable certification credentials for youth entering the workforce. We will focus both programmatic investments and CTE construction dollars on the development of facilities that will provide examinations on site and offer testing to other students in the region.

We will also partner with local boards of education to ensure that no student is prevented from taking an examination due to financial difficulty. The cost of a certification examination ranges from $15 to $200, at an average of approximately $100. We will dedicate $1 million annually to provide needs-based scholarships for CTE examinations to approximately 10,000 eligible high school students.

Cost: This program will be funded at $1 million (operating) in FY2016 and continuing through FY2019.
4. Create New Opportunities for Experiential Learning Through the "Career Ready Maryland" Business Tax Credit

A 2012 report of construction industry professionals showed that 71% of survey participants believed Maryland's education system and the industry were not doing enough to create a future workforce pipeline. The two top suggestions to improve workforce preparedness, were:

* "Strengthen the Focus on CTE, Apprenticeship and Career Pathways Programs;" and
* "Improve Partnerships Between Business and Education."

The success of Maryland students and Maryland businesses are linked. We will work with employers to build the workforce pipeline through continued cooperation in course design and by creating new incentives for on-the-job training.

There's no substitute for experience. Whether training to be a carpenter or a computer technician, on-the-job learning is a critical component to workforce readiness. Unfortunately, too few students have access to internships that will help them to explore a career and prepare for the working world.

According to a 2012 Maryland State Department of Education Survey, only 57% of students participating in a CTE program had completed an internship (36%) or cooperative learning experience (21%). A survey of companies with more than 100 employees done the same year showed that 69% had hired interns to become full-time employees. In order to build the pipeline from school to career, we must create internship opportunities.

The Brown-Ulman Administration will create the "Career Ready Maryland" annual tax credit up to $3,000 per student for employers who offer experience-enhancing internships to students between the ages of 16 and 21 and who are currently enrolled in a CTE program of study at a Maryland high school or community college.

To maximize participation across the State, we will work to make these learning experiences a value proposition for both students and employers while streamlining processes for tax credit authorizations.

Cost: This program will be funded at $3 million (operating) beginning in FY2016 and continuing through FY2019. The program will cap enrollment at 1,000 credits per year.
5. Grow CTE Opportunities Through Enhanced Communication and Collaboration Among Stakeholders

While we have made notable progress in CTE education in the last seven years, we must continue to build on our success. Many of our accomplishments have been the result of collaboration and communication of stakeholders across the public and private sectors. The Governor's Workforce Investment Board and the P-20 Leadership Council have made significant contributions to the State's CTE policy.

In order to continue to refine CTE programs, we will establish a standing Committee on Career and Technology Education within the Governor's P-20 Leadership Council. The focus of this committee will be tofacilitate knowledge and data sharing between state agencies, educational institutions and the business community concerning factors impacting CTE content and delivery. They will advise on strategies to address workforce shortages, emerging industries, internships, apprenticeships, as well as leveraging CTE to expand Maryland businesses and attract new employers. The Committee will be comprised of business leaders, labor, representatives of local boards of education, private educational institutions and the following agencies:
* Department of Business and Economic Development
* Department of Education
* Department of Labor, Licensing and Regulation
* Governor's Workforce Investment Board
* Maryland Higher Education Commission
* University System of Maryland

Cost: This initiative will not require any additional funding.
Costs and Implementation

We will responsibly invest in the following projects and programs to achieve our goals:

Capital Investment and Operating Investment

Funding Source

To fund these important initiatives, we will prioritize the capital budget, dedicate Corporate Income Tax revenues, and improve our State's buying power through Strategic Sourcing. We will work with our partners in the General Assembly, State agencies, and stakeholders across Maryland to ensure that school construction is a top infrastructure investment priority. Throughout this effort, we will remain mindful of current projects in the funding queue, spending and debt affordability guidelines, and preserving Maryland's AAA bond rating.

Dedicate a Portion of Corporate Income Tax Revenue

Studies show that businesses are motivated by the quality of the education system when choosing to locate or remain in a particular jurisdiction. There is also evidence that investments in public education bear a direct relationship to employment growth.

Due to the importance that a highly-trained workforce plays in the success of Maryland corporations, we will dedicate a portion of Corporate Income Tax revenues to pay for the operating costs necessary to meet our objectives.

The Department of Legislative Services estimates that one percentage point of Corporate Income Tax receipts in FY2015 will amount to $162.2 million. The Corporate Income Tax funds the Transportation Trust Fund ("TTF"), the Higher Education Investment Fund ("HEIF") and the General Fund, all of which are critical to the State's public services.

Without impacting revenues to the TTF or HEIF, we will dedicate the equivalent of one half of a percentage point (0.5%) of the 8.25% Corporate Income Tax to fund these programs, or approximately $81.1 million.

Strategic Sourcing Savings

In May of this year, the Board of Public Works received a report on State procurement processes. The consultant's analysis indicated Maryland could save millions of dollars annually through improvements in its purchasing system. The report recommends that the State pilot a Strategic Sourcing initiative across several agencies.

Strategic Sourcing leverages the collective buying power of State government agencies, working in cooperation, to achieve the greatest value from public dollars. Strategic Sourcing also analyzes total lifecycle costs of a product before an investment is made, in order to determine the actual long-term value. The report indicates that, "States with similar budgets to Maryland implementing statewide procurement initiatives such as strategic sourcing regularly save over $100M annually."

New York , California , Pennsylvania , Georgia , Texas , North Carolina and other states have all achieved significant annual budget savings through Strategic Sourcing initiatives.

We will establish a pilot initiative for Strategic Sourcing in FY2016 to identify its benefits and learn how to appropriately expand it to maximize savings by FY2019. We project annual operating savings of $10 million in FY2017, $50 million in 2018, and $100 million in FY2019.
sota Department of Administration, Enterprise Data Analytics Program, 6/27/11

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