SHRM Leadership Conference

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SHRM Leadership Conference
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Accessing and Influencing Public Funds for
Workforce Readiness
Section Title (12 point Arial color white)

• Introduction
• Michael Layman, SHRM Government Affairs
• Michael Ferraro, President/CEO, TRAINING
  SOLUTIONS, Inc.
• Jim Van Erden, VP, DTI Associates

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Overview

• Goal
• To provide a perspective on the Federal
  Governments approach to workforce readiness
• Objectives
• Increase Understanding of Federal Workforce
  Policy
• Review Some Promising Examples

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The Workforce

• A workforce in change
• Baby boomers will eventually leave in large
  numbers
• Boomers have high education levels
• Technology changing the workplace and the nature
  of work
• Need for constant skill upgrading and learning of
  new skills
• Returns to education are increasing
• Gen x/ys have huge skill gapsalso different
  expectations
• Global issues remain a critical driver
• Workforce is increasingly diverse

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The Federal Workforce System

• From the Federal Perspective,
• it is not a Unified Theory
• Federal Programs
• Difficult to Develop
• Reactive in nature
• Harder to Change
• Often lack Focus
• Have a variety of convoluted
• delivery systems

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The Federal Workforce System II

• Federal programs
• The Stove Pipe Principle is alive and well
• Congressional Committees have limited
  jurisdiction
• Program Accountability--in the public eye
• Performance difficult to measure
• State and Local programs must survive and deliver
  services in a complex environment
• Value of the intervention (ROI) outputs/inputs
  how to measure and determine?

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Federal Programs and Business

• Role of Business has evolved over last two
  decades.
• Then Federal programs focused on individuals
  who
• Are hard to serve
• Have significant barriers to entry
• Lack current market skills
• Lack basic work ready skills
• Have trouble negotiating labor markets
• Focus was on the individual seen as the client or
  customer
• Now Business seen as the ultimate customer and
• Federal legislation rewritten to encompass
  business views and needs
• New emphasis on aligning workforce systems to
  active labor markets
• Aggressive coalition/partnership models developed
  with business
• Business input and engagement actively sought

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Funding of Services

• Funding for Federal Services provided thru
• Formula Grants to Local Agencies
• Formula Grants to States
• Direct Benefits (Entitlements)
• Tax Code
• FY 200636.03B (Excludes Energy DOD)
• Very Limited Funding Directly to Business

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Federal Programs Level II

• Department of Labor
• WIA 3.0B, Formula Grants to
  States, Serv 1.1m Tng, JS, One-Stops
• Wagner-Peyser 715m, Formula Grants to States,
  Serv 13.3m Labor Exchange
• TAA 260m, Direct Benefits
  Serv 120k Tng, OJT, Ed
• Department of Education
• Pell Grants 13.1B, Thru 4-year
  institutions, Serv 5.3m, Higher Ed
• Perkins Voc-Ed 1.2B, Formula Grants to
  States, Serv 6m, Vocational Ed
• Adult Ed 579m, Formula Grants to
  States, Serv 2.7m Basic Skills
• Voc-Rehab 2.7B, Formula Grants to
  States, Serv 1.4m Varied-JS
• Department of Health and Human Services
• TANF 16.5B, Formula Grants to
  States, Serv 4.5/2m VariedJS-Sup
• Social SBG 1.7B, Formula Grants to
  States, Serv 14.6m Voc-Ed, JS
• Comm SBG 670m, Formula Grants to States,
  Serv 15m GED, Job Skills

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Federal Programs Level II

• Department of Agriculture
• Food Stamps 122m, Formula Grants to States,
  Serv INA Basic Skills
• Department of Housing and Urban Development
• CDBG 3.7B, Formula Grants to
  States, Serv INA, Varied
• HOPE 6 100m, Competitive Grants to PHA,
  Serv INA, Necessary Services
• Multitude of Similar Programs
• Department of Treasury
• Hope LLL 6B, Tax Preference,
  Serv 7.2m, Post Secondary
• Tuition Fees 2B, Tax Preference,
  Serv 3.4m Post Secondary
• Student Loan .8B Tax Preference,
  Serv 6.6m, Post Secondary
• Emply Tuition .6B Tax Preference,
  Serv INA, Post Secondary

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TANF Subsidized Private Sector Employment

• Subsidized Private Sector Employment means
  employment in the private sector for which the
  employer receives a subsidy from TANF or other
  public funds to offset some or all of the wages
  and costs of employing a recipient.
• Examples of What Counts.
• Participation on a job where the employer
  receives a subsidy and the participant is paid
  wages and receives the same benefits as
  unsubsidized employees who perform similar work.
• Examples include a job where
• TANF funds that would otherwise be paid as
  benefits instead reimburse some or all of the
  employers costs for wages, benefits, taxes, and
  insurance and
• A third-party (e.g., nonprofit organization) acts
  as a temporary staffing agency and is paid a fee
  from TANF to cover the participants salary and
  support services.

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Opportunity

• Out of Economic crisis new opportunities
• Defense Downsizing JTPA WIA
• A New Administration
• Green Jobs
• Infrastructure
• Promising Demonstrations
• WIRED
• Web 2.0 Social Networking

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Contact

• Jim Van Erden
• VP Civilian Services
• DTI Associates A Kratos Company
• 703.299.1653
• 703.727.4822
• jvanerden_at_dtihq.com

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Overview

• Objectives
• Workforce Investment Act
• Government funded training
• Workforce boards
• One stop career centers
• Federal/State job training grants and initiatives
• Your involvement
• QA
• Checklist
• Next steps

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Looking For A Catalyst?

• Can the publicly funded workforce system be a
  catalyst to help solve some (or all) of the
  workforce readiness issues your organization and
  community are facing?

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Workforce Investment Act of 1998
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Workforce Investment Act of 1998

• 4 billion dollar program
• 3 funding streams adult, dislocated and youth
• Creates state and local workforce boards
• Coordinates 17 workforce training programs
• Creates the nations One Stop Career Centers

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Allocation for Training/ES 2008 (proposed)
32.7 Billion
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State of Training Industry

• ASTD 2007 State of the Industry Report
• 129.6 Billion

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Virginias Workforce Programs

• 17 Local Workforce Board Areas in Virginia

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Virginias Workforce Programs (2005)

• Secretary of Health and Human Resources
• 4 Agencies 133 Million
• Secretary of Commerce and Trade
• 4 Agencies 73 Million
• Secretary of Education
• 2 Agencies l 32.1 Million
• Secretary of Public Safety
• 2 Agencies 13.3 Million

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Virginias Workforce Programs
12 Agencies/26 Programs 252 million 30 million
allocated to local workforce boards
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Texas Workforce Programs 2008

• Support an employer driven system
• 9 programs 436 Million
• Business Services
• 5 programs 37 Million
• Child Care Services
• 5 programs 488 Million
• Unemployment Insurance
• 4 programs 93 Million

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Texas Workforce Programs 2008

• 22 Programs/1 Agency
• 1.054 Billon
• All allocated to the local workforce boards of
  Texas

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Workforce Boards
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State Board Membership

• Governor
• 2 members of each house chamber
• Representatives of business (chairman)
• Chief elected official representing cities and
  counties
• Representative of labor
• Representative of youth activities
• Representatives of those who deliver workforce
  services
• Lead agency with responsibilities for programs
  carried out by one stop partners
• Others as so appointed by the Governor

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Local Board Membership

• Representatives of business (chairman)
• Chief elected officials
• Representative of labor
• Representative of youth activities
• Representatives of those who deliver workforce
  services
• Others as so appointed by the Governor
• Local school representatives (K-12)
• Community-based organizations
• Economic development agencies
• One-Stop partner representatives

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A Perfect Workforce Board Member?

• Someone who is PHR Certified
• Someone who is SPHR Certified

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Apply to serve on a Workforce Board

• State
• Contact your Governors office
• Office of Workforce Development
• Check with you state elected representative
• Apply
• Local Board
• Contact your chief locally elected official
• Contact your local board executive director
• Apply

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Board Responsibility-Eligible Training Providers

• Board select programs
• Programs must meet certain criteria
• Programs get re-selected in a pre-determined time
  period
• Programs come from both the public and the
  private sector

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Board Role-Individual Training Accounts

• Local boards decide on amount
• Used as third level of service
• Tied to approved training providers
• Range from 3000 to 9000
• Approved providers need to apply regularly and
  get approval from boards

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Board Responsibility-Industry Workforce Needs

• Community Audits
• Skill Assessments
• Industry Surveys
• Industry Cluster Development
• Economic Development Analysis
• Community Forums

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Local Board Budgets (sampling)

• NYC WIB 77,500,000 (2007)
• Workforce Central Florida 26,085,541 (2006)
• Alamo, TX WIB 79,980,645 (2007)
• Gulf Coast, TX WIB 209,053,703 (2007)
• Average WIB gets 10-15 Million per year

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Board Responsibility-Opportunities to Engage

• Apply to be a board member
• Serve as an industry cluster expert
• Meet with the staff or the local WIB
• Be a business partner on a state or federal grant
  opportunity for the local WIB
• Speak to your local board at a meeting

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One Stop Career Centers
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One Stop Career Centers

• Designed to administer 17 partner programs under
  WIA (and other partners and education)
• Offering 3 levels of service
• Core
• Intensive
• Training (Individual Training Accounts)

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One-Stop Services

• Core services are labor market information,
  initial assessment of skill levels, and job
  search and placement assistance. Also, self help
  services.
• Intensive services are available to eligible
  unemployed individuals who have completed at
  least one core service, but have not been able to
  obtain employment.
• Training services are available to eligible
  individuals who have met the requirements.

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One Stop Career Centers Role

• Empowering partners to collaborate
• Raising funds through fee-based services, grants
  and contributions from partners and state and
  local government
• Better integration of partner programs
• Improved operations and service delivery (despite
  lack of direct funds for one-stop operations)
• To work with both unemployed and underemployed
  citizens

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Career Centers Role (For Job Seekers)

• Ensures them ready access to needed services
• Qualified staff to better understand all
  available one-stop services
• Consolidation of case management systems and
  services
• Available labor supply information
• Business services center
• Reduce wait time and duplication of services

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Career Centers Role (For Employers)

• Dedicated staff with special relationships with
  the business community
• Providing tailored services to meet employer
  needs
• Better understand the labor market
• Location to hold interviews and job fairs
• Business related services
• Re-training/employment services for employees

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One Stop Center-Your Involvement

• Meet with center manager and business services
  staff
• Share with staff the current skill needs of your
  organization
• Learn about training grant opportunities
• Serve as a business advisor to the center
• Conduct interviews at the center

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Job Training Grants and Initiatives
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Virginia-DC-Maryland Metro Tech Program

• Program ran from 2000-2005
• 20 million spent in IT worker training
• Businesses involvement required
• One stop center involvement required
• 3406 participants trained
• Over 90 entered employment
• Model for future Wired Grants

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WIRED Grants

• Workforce Innovation in Regional Economic
  DevelopmentDOL Administered
• Governors submitted 3 regional applications
• Each area will receive 15 million over three
  years
• Three rounds have been awarded
• Winners included
• http//www.doleta.gov/wired/regions/

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WIRED Grants

• Wired Grant Regions

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WIA Award Funding 2006

• These state are eligible to receive incentive
  awards for program year 2006 (adult funds)
• Arizona 1,112,979
• Connecticut 953,347
• Illinois 2,148,397
• Missouri 1,186,870
• Montana 849,786
• Ohio 1,783,568
• South Carolina 1,111,549
• South Dakota 821,995

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Federal Training and Education Tax Credits

• Hope Tax Credit
• Individuals can subtract 1650 per year in
  tuition and qualified college costs from taxes
  they own when they file their Federal tax
  returns.
• Lifetime Learning Tax Credit
• Individuals can subtract up to 2000 per a year
  in tuition and qualified college costs from the
  taxes owed when filing their returns.

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State Funding Opportunities

• State and Local Grant Opportunities

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State Funded Customized Training Programs DOL
2006 Study

• Iowa 62,295,000
• California 52,182,000
• Louisiana 44,137,000
• Missouri 31,300,000
• Pennsylvania 30,000,000
• New Jersey 28,700,000
• Mississippi 27,853,000
• Texas 25,000,000
• Georgia 22,350,000
• Massachusetts 21,000,000

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Florida Incumbent Worker Program

• The Incumbent Worker Training Program provides
  grants for customized training for existing for
  profit businesses. Workforce Florida, Inc.
  administers the program.
• Established in 1999, the program has provided
  customized training for over 50,000 employees for
  more than 500 businesses throughout the state.
• Total funding 3.6 million for 2007.
• http//www.workforceflorida.com/wages/wfi/employer
  s/iwt.htm

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Texas Skills Development Fund

• The Skills Development Fund program assists
  businesses and trade unions by financing the
  design and implementation of customized job
  training.
• During Fiscal Year 2007 (09/01/06 08/31/07),
  TWC awarded 55 grants totaling 25,059,808, which
  served 281 businesses, generated 7,073 new jobs
  and upgraded the skills of 13,758 workers in
  existing jobs.
• For fiscal year 2008, TWC has 25 million in
  Skills Development Funds. Grants for a single
  business may be limited to 500,000.
• For More Information
• http//www.twc.state.tx.us/svcs/funds/sdfintro.htm
  l

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Pennsylvania Industry Partner Training Grants

• 15 Million in 2008
• Cluster grants from 5K to 150K
• Local WIBs are fiscal agents for the grants
• Focused on targeted industries
• Training grants up to 400K
• More information
• http//www.paworkforce.state.pa.us

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Virginia Jobs Incentive Program

• 25 New full-time jobs-with benefits
• Pay must be over 8 per hour
• 50 of companies business must be from out of
  state
• Training per employee up to 1000
• Total per project up to 200K
• http//www.dba.state.va.us/workforce/default.asp

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Californias 40 Million Grants

• October 2008
• Employment Training Panel allocate 28.7 million
  to 101 businesses to train 20,000 workers in
  expanding industries (health care, green and bio
  tech)
• Employee Development Department will soliciting
  12 million to help train war veterans in
  California.

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State Training Tax Credits

• 14 States Offer Training Tax Credits
• Alabama Arkansas
• Colorado Connecticut
• Georgia Kansas
• Kentucky Louisiana
• Mississippi New York
• Ohio Rhode Island
• Virginia Washington
• (Highlighted in March 2007 Training and
  Development Magazine)

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Georgia Retraining Tax Credits

• Georgia Business Expansion Support Act 1994
• Credits for
• One half the direct costs of training
• 500 per approved training program, per year, per
  full time employee who completes an approved
  program
• Eligible Training Programs
• Retraining on newly installed equipment
• Retraining on new technologies TQM, ISO 9000
• Eligible Retraining Costs
• Instructor salaries, employee wages, development
  of retraining program, materials and supplies,
  equipment used, reasonable travel costs

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Your state grants and tax credit plan

• Contact your state Economic Agencies
• Find grant opportunities for retraining staff
• Contact EDAs in states you may be expanding
• Contact your state representatives, labor
  departments workforce development departments,
  state higher education institutions for training
  grants and tax credit information.

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Ideal Local Workforce Board

• Business representation
• High growth and local industry
• Locally elected officials
• Who can speak for all local government, economic
  development
• K-12 education
• Superintendents representative
• Higher education presidents
• Talent management experts
• Communities of practice

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Federal Involvement

• Go to DOLETA.gov site and Grants.gov and register
  for grant alerts.
• Go to Workforce3one.org site and register for
  programs about your industry, state or community.
• Ask to be a volunteer as a business
  representative in an industry cluster study or
  discussion.
• Be aware of and involved with other federal
  education legislation.

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State Involvement

• Contact state leaders on your state workforce
  board.
• Meet with education leaders in your state.
• Plan a meeting with state representative about
  workforce readiness and accountability.
• Be aware of current state grant and tax credit
  opportunities.
• Offer to serve in some capacity as a volunteer.

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One-Stop Involvement

• Visit local One-Stop center.
• Meeting with center staff and leadership.
• Discuss business products and services available.
• Share your workforce and training needs.
• Volunteer in some capacity to the center.

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Local Involvement

• Meet with your local executive director or senior
  staff of your local board.
• Meet with education leaders at all levels in your
  community and discuss workforce readiness issues
  facing your organization.
• Build a partnership with local education/workforce
  boards and staffs.
• Volunteer to serve on in some capacity.

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Workforce Readiness Checklist

• www.trainingsolutions.com/pdf/SHRM08.pdf

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Contact

• C. Michael Ferraro
• President/CEO
• TRAINING SOLUTIONS, Inc.
• 703-318-0838
• Ferraro_at_trainingsolutions.com

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Questions?
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Contacts

• Jim Van Erden
• VP Civilian Services
• DTI Associates A Kratos Company
• 703.299.1653
• 703.727.4822
• jvanerden_at_dtihq.com
• C. Michael Ferraro
• President/CEO
• TRAINING SOLUTIONS, Inc.
• 703-318-0838
• Ferraro_at_trainingsolutions.com