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Pennsylvania’s 21st Century Workforce Initiatives Overview • 21st Century Economic Realities • PA Workforce Development Goals • Job Ready PA Investments • Focus on Targeted Industry Clusters • Discussion The Knowledge Based Economy “Today, the knowledge required to run the economy which is far more complex than in our past, is both deeper and broader than ever before. We need to ensure that education in the United States, formal or otherwise, is supplying skills adequate for the effective functioning of our economy.” …………Alan Greenspan, Former Chairman of the Board of Governors of the US Federal Reserve, at the Greater Omaha Chamber of Commerce 2004 Annual Meeting, Omaha, 20 February 2004 21st Century Economic Realities • Rapidly changing new technologies • Globalization • Shift to a service-dominated economy • Business restructuring • Erosion of career ladders • Increase in career and job changes 21st Century Economic Realities Median Personal Income of Pennsylvania Workers Median Personal Income of Pennsylvania Workers, Ages 18-64, by by Educational Attainment, 2005 Educational Attainment, 2005 0 Less than a High School Diploma High School Diploma or GED only Some College, No degree Associates Degree Bachelor's Degree Post-Graduate Degree 10000 20000 30000 40000 50000 60000 70000 $17,001 $25,263 $26,581 $35,000 $45,480 $61,012 21st Century Economic Realities Unskilled jobs are disappearing and demand for higher skills is rising Source: U.S. Bureau of Census and Pennsylvania Department of Labor and Industry, Center for Workforce Information and Analysis (Pennsylvania statewide) PA Workforce Development Goals • Strengthen Pennsylvania Industries and Create Industry-Led Training Strategies • Increase Opportunities for Pennsylvania’s Residents • Prepare Our Youth for the Careers of Tomorrow • Implement Rigorous Accountability Standards Job Ready PA: $91 million in new investment Job Ready PA: Keeping Pennsylvania Competitive; Creating Opportunities 2006 - 2007 Proposed Budget New State Funds Redirected Funds Creating Industry Partnerships Incumbent Worker Training Workforce Advancement Grant For Education (WAGE) Advanced Technology Workers Community College ** Career & Technical Education High School Reform – Project 720 Tutoring Expanding Nurse Education Capacity $5,000,000 $15,000,000 $10,000,000 $3,000,000 $12,600,000 $2,955,000 $9,000,000 $66,000,000 $10,000,000 $8,000,000 $10,000,000 **Increased funding for community colleges of $22.8 million in fiscal year 05/06, the largest increase in 15 years, is enhanced with another increase of $12.6 million in fiscal year 06/07 Job Ready PA: Industry Partnerships Strengthen Pennsylvania Industries and Create Industry-Led Training Strategies • Develop Regional Industry Partnerships – Align training and education resources to industry demand – Aggregate training needs – Promote industry-recognized certifications and develop career ladders within and between firms Pennsylvania’s Workforce System Must Be Industry-Led: Nationally Award Winning Cluster Analysis 2002 Average Monthly Employment 867,868 81,564 786,304 2002 Average Annual Wages $39,366 $64,457 $36,763 Business and Financial Services Education Advanced Materials and Diversified Manufacturing Chemicals, Rubber and Plastics Electronics Metals and Metal Fabrication Printing Vehicle and Vehicle Equipment 776,404 536,572 495,482 79,936 75,760 141,001 42,397 45,029 $42,845 $35,121 $43,061 $46,643 $50,792 $41,060 $37,196 $48,267 Building and Construction 347,795 $40,927 Agriculture and Food Production Food Processing 314,088 86,865 $26,308 $36,106 Information and Communication Services Logistics and Transportation Lumber Wood and Paper Targeted Industry Clusters 209,442 136,946 105,525 3,790,122 $56,742 $36,588 $34,317 $39,741 Total Statewide Percent of Total in Targeted Clusters 5,507,323 68.80% $35,791 111.00% Targeted Industry Cluster Life Sciences Bio-Medical Health Care Focus on High Priority Occupations • Aligns workforce training and education dollars with targeted industry clusters • Defined as: – Job categories in demand by employers – Have higher skill needs – Most likely to provide family-sustaining wages Focus on High Priority Occupations • High Priority Occupations Will Govern: – Equipment and curriculum development grants to Career and Technical Education centers – WAGE - financial aid for working adults – Community College stipends for credit workforce development courses and reimbursement for noncredit workforce development courses – Equipment grants for areas of the state that are educationally underserved Job Ready PA Investments Increase Opportunities for Pennsylvania’s Residents • Opportunities for those already employed – Train 7,000 incumbent workers in targeted industries – Provide 10,000 adult students with financial aid through Workforce Assistance Grants for Education (WAGE) – Increased funding for community colleges Industry led Initiatives Keep Businesses Competitive and Create Opportunity Address Pennsylvania’s Critical Health Career Needs A $40 million PHEAA funded initiative supporting PA Center for Health Career’s Nurse Education Capacity Recommendations: – Nurse Educator Fellowships – Clinical Education Expansion Programs – Attraction and Retention Projects Make Getting More Education and a Degree More Affordable for Adults Accelerate Degree Attainment Core-to-Core Articulation – Require colleges to accept all credits from one community college to another and from community colleges to 4-year colleges and universities – Accelerate degree attainment by making credits transferable Make Getting More Education and A Degree More Affordable for Adults Accelerate Degree Attainment Prior Learning Assessment • Develop a credit course or a non-credit instructional program that assists students in evaluating and awards credit for knowledge and skills gained from non-traditional education and work experience • Accelerate degree attainment through prior learning assessment Higher Education in the 2006-07 Budget: Pennsylvania is making significant investments in higher education funding in the 2006-07 budget, increasing funding by 3.7 percent. According to a 2005-06 study by the College Board, Pennsylvania had the best national ranking for tuition at four-year public institutions. 5.0% increase for the Community Colleges . . . . ...... ... $ 264.7 M 4.5% operating increase for State System of Higher Education ……………... $483.0 M 4.0% operating increases for the State-Related Universities Penn State University . . . . .......................... University of Pittsburgh . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Temple University . . . ........................... Lincoln University . . . . ........................... Total – State-Related Universities . . . . . . . . . . . . . . . . . . $322.4 M $163.1 M $168.7 M $13.5 M $667.7 M 3.0% for Non-State Related Universities and Colleges . . . . $ 87.5 M 4.9% increase for the Pennsylvania Higher Education Assistance Agency’s Grants to Students program . . . . . 119.4% for SciTech Scholarships . . . . . . . . . . . . . . . . . . . . . Expansion of clinical education opportunities and student retention activities to address a projected shortage of nurses ... $386.2 M $ 6.8 M $ 10.0 M Job Ready PA Investments Prepare Our Youth for the Careers of Tomorrow •Improve the skills of high school graduates –Project 720 –Dual Enrollment –Career and Technical Education Performance Management Plan Implemented July 1, 2004 •Workforce and economic indicators demonstrating how Pennsylvania compares to other states •Common quantitative measures for all programs •Strategic measures that determine whether the program met overall commonwealth goals •Publish Annual Reports High Performance Local Workforce Investment Boards Prepare Our Youth for the Careers of Tomorrow •Set new standards based on industry needs, high priority occupations •Demand high performance - $22 million in incentives •Provide technical assistance •Require corrective action •Institute interventions Discussion & Questions For more information on any projects contact our office at (717) 783-7184 Online at www.paworkforce.state.pa.us