Workforce Development System in a Global Marketplace Joy Howland Development Director, RATEC Board Member, Seattle SIM May 24, 2005.

Workforce Workforce Development System Development System in a Global Marketplacein a Global Marketplace

Joy Howland Joy Howland Development Director, RATECDevelopment Director, RATEC

Board Member, Seattle SIMBoard Member, Seattle SIMMay 24, 2005May 24, 2005

Presentation OverviewPresentation Overview

I. Types of Funding & Structure

II. A System in Transition

III. Services Provided

IV. System Involvement & Participation

V. Q&A

Types of FundingTypes of Funding

• Workforce Information Act (WIA) Adult Program– WIA Dislocated Worker Program– Up for reauthorization this fall (currently in Senate)

• Trade Adjustment Act (TAA)

• Dept of Labor (competitive & non-competitive grants)– Training– Curriculum Development– Special programs

Funding Distribution

Workforce Investment Act & Trade Adjustment Act

– Allocated by state as federal pass-through

– Administered by locally by Workforce Development Boards • WorkSource One-Stop system (nationwide)• Community and Technical Colleges• Workforce Intermediaries

Funding Structure & Distribution

Federal Competitive and Non-Competitive Grants

Refocusing of Federal funding priorities & initiatives:– Community Based Job Training Initiative – Eligible applicants are Community & Tech Colleges

• Multi-state programs or regional• Strong public-private partnerships• Capacity Building Projects• High-demand Training

IT has been identified as high-demand!IT has been identified as high-demand!

Presentation OverviewPresentation Overview

I. Types of Funding & Structure

II. A System in Transition

I. Services Provided

II. System Involvement & Participation

III. Q&A

Wisconsin: Service Economy

Employment Sector 2004 Growth:• Professional and Business Svcs: 5.7%5.7% • Education and Health Svcs: 2.8%• Construction: 2.4%

Manufacturing – higher than US average growthhigher than US average growth• 1.9% growth this year• Q1 2000 employment 598,800 versus

expected employment level of 541,300 in 2010

Illinois – Workforce Demand

Bachelor DegreeBachelor Degree

1. Registered Nurse

2. Elementary School Teachers

3. Accountants & Auditors

4.4. Computer Systems AnalystsComputer Systems Analysts

5. Preschool Teachers

6.6. ProgrammersProgrammers

7. Insurance Sales Associates

8.8. Computer Software EngineersComputer Software Engineers

Illinois – Workforce Demand

Bachelor’s Degree +Bachelor’s Degree +

1. General & Operations Managers

2. Sales Managers

3. Lawyers

4. Financial Managers

5. Administrative Service Managers

6.6. Computer & Information Systems ManagersComputer & Information Systems Managers

7. Pharmacists

8. Human Resource Managers

Transition to Service Economy

Based on what we know about our regional and national economies, how is the Workforce Development System addressing these demands?

Wisconsin’s WIA State Plan

• Retain & create high-wage jobs

• Prepare workers for tomorrow’s economy

• Add value to WI’s economic base

• Create & unleash knowledge to build emerging industries

• Tap WI’s full urban potential

• Implement strategies regionally

• Lower regulatory burdens, keep standards high; and

• Build a world class infrastructure

Governor Doyle’s Plan WIA Plan

8 Strategic Economic Development Goals for the State

Grow Wisconsin – Best Practices

Job CreationJob Creation• Create a comprehensive business climate by

adopting a single-factor sales taxsingle-factor sales tax, investing in long-term infrastructure planslong-term infrastructure plans, streamlining and offering incentives to help site energy plants and transmission lines, and creating an urban venture urban venture capital fund.capital fund.

• Invest in people by providing $50 million $50 million workforce trainingworkforce training, expanding job-training programs, funding youth apprenticeship program, facilitating transfers between technical and state college system and raising the minimum wage.

Grow Wisconsin – Best Practices

• Invest in business by generating $300 million$300 million in seed and VC funds

• $200 million through New Markets tax credits$200 million through New Markets tax credits, targeting clusters through workforce development

• Investing in researchInvesting in research to win federal grants and commercialize research, and creating entrepreneur programs.

• Reform regulations – make government more responsive.

Grow Wisconsin: Progress

Senate Bill 261 – Regular Session 2003

…creating a qualified new business venture tax credit and a capital gains tax exemption regarding investments in certified venture capital funds and qualified new business new business venturesventures, requiring a study of new Wisconsin businesses, facilitating the development of certain investor networks, and granting rule-making authority.

Grow Wisconsin: Progress

Senate Bill 129 (2005-06 Legislature)Transfers the administration of this grant program to the

Technical College System (TCS) Board and makes the

following changes to the program:

(1) requires the TCS district boards annually to designate, based upon regional need, the types of businesses to be given preference in awarding grants;

(2) requires that an eligible business employ no more than no more than 100 full-time employees100 full-time employees; and

(3) requires a business that receives a grant to provide matching fundsmatching funds for the entire amount offor the entire amount of the grant the grant, unless the board finds that the business is subject to extreme financial hardship.

Presentation OverviewPresentation Overview

I. Types of Funding & Structure

II. A System in Transition

III.III. Services ProvidedServices Provided

IV. System Involvement & Participation

V. Q&A

WIA Funded Services

One-Stop Career Centers– Unemployed workers– Employer Services– Other populations (youth, disabled, veteran, etc)

State Workforce Board– Special Programs for Employee Training (WIA or

non-WIA)•Layoff aversion•Hiring•Under-employed workers

WIA Funded Services

Rapid Response– Large layoffs and plant closures

• Worker Adjustment and Retraining Notification (WARN) Act

– Required for employers with 100+ full-time employees

– Between 50 – 499 employees if they represent at least 33% of the total active workforce, excluding any part-time employees or;

– 500 or more employees (excluding part-time employees)

WIA Funded Services

Rapid Response services

• Labor Market Information

• Job Search and placement assistance

• On-the-job training (wage requirement)

• Classroom training (wage requirement)

• Entrepreneurial training

• Referral to basic and remedial education

Trade Adjustment Act Reform

Trade Adjustment Assistance Equity for Service Workers Act of 2004

• Proposed House and Senate Bills in 108th Congress

• Reform act to include service sector workers and businesses– Workers would have to provide evidence that their jobs were

lost because of increases imports, competitive foreign services or contract production or services relocated offshore

– Business affected by trade could apply for grants for training to increase competitiveness

Update on proposed legislation?

Dept of Labor: GrantsDept of Labor: Grants

Department of Labor – Employment & Training Administration (ETA)

Competitively Funded Programs– ETA initiate's the Solicitation for Grant Applications

(SGA) – SGA’s are announced in Federal Register and on

DOL website– Typically 45-60 days from notice to submission

date

Employment & Training Administration

Dept of Labor Grants: Training

H1B Technical Training Grant

• RATEC received $1.5 million for private sector 1.28 million of which was allocated directly to companies to train IT staff.

Results:• 575 IT employees575 IT employees among 24 firms24 firms completed

training• 311311 employees reported being able to take on

additional job responsibilities• 7474 certifications gained• 167 167 employees received wage increase as a

result of training totaling $1,032,040$1,032,040 million in annual wage gains

Dept of Labor: Grants

Competitively funded programs primarily serve adult populations for the purposes of:

– Incumbent worker training (employees)– Skills Shortage Initiatives– Capacity Building– Consortium Building– Apprenticeship Programs– Partnership Building– Youth & Untapped workforce

The DOL also accepts unsolicited proposals

Unsolicited Grants

Presentation OverviewPresentation Overview

I. Types of Funding & Structure

II. A System in Transition

I. Services Provided

II.II. System Involvement & ParticipationSystem Involvement & Participation

III. Q&A

Reasons for Getting Involved

• Millions of dollars go into this system every year – companies should take advantage of these funds for the benefit of their employees and the business

• There has become increased overlap between economic and workforce development initiatives/funding

• The Workforce Development system has expertise in easing employee transitions…but there is a learning curve

• It is like voting, if you do not participate, then you can not expect it to meet your needs

System ParticipationSystem Participation

Local Participation:• State Workforce Investment Boards & Economic

Development Councils are good entry points

• State and federal congressional representatives

• Governor’s office

Federal Participation:

• The Dept of Labor has a Business Relations Division

Before You Get Involved

• Know your time constraints and be clear on your level of commitment– Are you there to affect change or to be a customer?

• Set a timeframe for participation and reflect on the value-add of your time

– Understand that not all free money is good money• Government regulations & requirements can be too time

consuming for business and can severely diminish the ROI

– Understand what your business needs and objectives are

Participation & PartnershipParticipation & Partnership

• Open the lines of communication with your state’s Workforce Investment Board– Share your needs or concerns and challenge them to

come up with a solution

– If a solution does not currently exist, be prepared to put some time and resources on the table

• Private Sector contribution = Public sector funds• Note: This does not always have to be cash

Participation & Partnership

– Leverage connections with local trade and non-profit organizations – they can help represent you and others with the same interests or needs

– If presented with an opportunity to access funds or to be involved in a grant proposal, ask for the requirements up front or help create

– Remember that it should get easier to participate in the system – not harder

Questions?

Contact Information

Joy HowlandJoy Howland

Development Director, RATECDevelopment Director, RATEC

Seattle SIM Board MemberSeattle SIM Board Member

Bellevue, WABellevue, WA

Telephone: 425.564.2192

Email: [email protected]