Transcript What is the sector approach?

Massachusetts
Workforce Competitiveness Trust
Fund
Advisory Committee Meeting
October 19, 2006
7/18/2015
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What is the sector approach?
A workforce development strategy that:
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Targets a specific industry
Creates education, training, and other supports for
workers that respond to the needs of the industry
Benefits
 Employers – get skilled workforce they need
 Workers – opportunity for skill attainment and career
advancement
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Needs the work of an intermediary with deep
knowledge of the industry to facilitate partnership
development and solution-generation
Often results in systemic change
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Other Leading States
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Pennsylvania – Industry Partnerships
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Michigan – Regional Skill Alliances
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Approximately $18 million since 2004
www.michigan.gov/rsa
Washington – Partner Sectoral Initiatives
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Over $40 million since 2005
www.paworkforce.state.pa.us
Approximately $10 million since 2000
www.wtb.wa.gov/IndustrySkillPanel.asp
Illinois – Critical Skill Shortage Initiatives
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$18 million
www.commerce.state.il.us/dceo/Bureaus/Workforce_Development/
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Massachusetts
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ECCLI (Extended Care Career Ladder
Initiative)
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NUCLI (Nursing Career Ladder Initiative)
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BEST (Building Essential Skills through
Training)
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BayStateWorks
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SkillWorks
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ECCLI:
Improving direct care worker skills and
work practices to improve the quality of care
provided in nursing homes and by home care orgs
 $33 million investment since 2000
State: $20 million
Match: $13 million
 158 employers – over 7,000 workers
 Some of the results reported:
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Workers:
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Employers:
Received average wage increase of $.96
per hour
Reported average cost savings of $47,000
Reported that average vacancy rate declined
from 11.4% to 1.4%
 www.commcorp.org/eccli/
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NUCLI:
Reduced the RN nursing shortage by
increasing number of graduates and improving the
nurse education pipeline
 $5.9 million investment
Federal: $2.9 million
Match: $3 million
 Partnership projects created in 4 regions of state
 823 graduated, 625 obtained RN licensure,
1013 in pipeline
 Brought forward nursing faculty shortage issue
 Supported development of the MA Center for Nursing
 www.commcorp.org/nucli/
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BEST:
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Supported industry driven
partnerships, addressing the workforce
development needs of businesses by building
$10.9 million investment
worker skills
State: $4.38 million
Match: $6.53 million
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Range of industries
3021 workers received services
37 companies participated
Some of the results reported:
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Workers:
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Employers:
Post program job retention rate of over 90% for
participants.
64% reported cost savings
68% reported positive return on investment
 www.commcorp.org/best/
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BayStateWorks:
Next round of BEST
 $11.4 million investment
State: $5.75 million
Match: $5.64 million
 Range of industries
 3,888 workers received services - 109 companies
participated
 Some results reported to date:
 Workers:
443 of 688 unemployed or pre-employed
participants placed in employment with average
starting salary of $25,680
Employed participants received average wage
increases of $1.48
 Employer impact research underway
 www.commcorp.org/baystateworks/
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SkillWorks:
Aims to help low-skill, lowincome residents move to family-sustaining jobs
while helping employers find and retain skilled
employees
 Collaborative effort on the part of philanthropy, government,
community organizations, unions, and employers
 $15 million over 5 years
 5 partnership projects in Greater Boston: building services,
healthcare (2), hotel services, automotive
 Results to date
2050 participants overall
350 of 650 pre-employed participants placed in employment with an
average wage increase of 10% - 34%
920 of 1400 incumbent participants received wage increases
 www.skill-works.org
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BEST I , II, BSW & SKILLWORKS COMBINED
Travel & Tourism
6%
Transportation
0%
Building & Other
Skilled Trades
15%
Customer Service
2%
Education
1%
Finance
4%
Technology
3%
Manufacturing
13%
Health Care
54%
Human Services
2%
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BEST I , II and BSW Combined plus Skillworks
Industry
Budget
Customer Service
$
489,729.00
Education
$
145,041.00
Finance
$
917,606.00
Health Care
$
5,639,656.50
Human Services
$
469,848.50
Manufacturing
$
1,708,050.00
Technology
$
543,989.00
Building & Other Skilled Trades
$
291,100.00
Transportation
$
65,000.00
Travel & Tourism
$
483,720.00
Total
$
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$
$
$
$
$
$
$
$
$
$
10,753,740.00 $
Match
320,090.00
324,113.50
566,078.00
6,047,160.00
266,450.00
2,706,911.00
310,443.00
438,932.00
20,977.50
146,040.00
$
$
$
$
$
$
$
$
$
$
11,147,195.00 $
Combined
809,819.00
469,154.50
1,483,684.00
11,686,816.50
736,298.50
4,414,961.00
854,432.00
730,032.00
85,977.50
629,760.00
Combined plus Skillworks
$
1,129,909.00
$
793,268.00
$
2,049,762.00
$
17,733,976.50
$
1,002,748.50
$
7,121,872.00
$
1,164,875.00
$
1,168,964.00
$
106,955.00
$
775,800.00
21,900,935.00 $
33,048,130.00
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We’ve been learning that the sector
approach………………..
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Builds relationships between employers,
education, and the workforce development system
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Directly connects workforce development to
economic development
Can be a powerful strategy to leverage resources
Can create partnerships that continue into the
future that anticipate and build infrastructure for
skilled workforce pipelines
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Sector Video
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Overview of
Workforce Competitiveness Trust Fund (WCTF)
WCTF Advisory Committee
October 19th
Big Picture
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Grants to partnerships of companies and/or employer associations, labor unions,
higher education, education/training providers, non-profits, Career Centers, and
WIBs.
Grants can be up to $500k, for up to 3 years, must be awarded competitively
within regional allocation formulas.
Range of eligible programs is extremely broad:
– From GED to post-secondary, skills training and support services
– Both youth and adults, employed and unemployed
– All industries, but must include healthcare and travel/tourism industries
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Fund to be administered by DWD and Commonwealth Corporation
One tool in a larger public workforce development tool box!
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Workforce Training Fund
Adult Education, Workplace Education Grants
TANF grants
One-Stop Career Centers
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Structure of Trust Fund
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Setup in Section 2.WWW of Chapter 29 of the Massachusetts General Laws
Expendable Trust Fund separate from general revenue account, funding does not
revert back to general revenue if unspent or require a re-appropriation each fiscal
year
Capitalized by the Legislature through the Stimulus Bill minimum appropriation
of $11 million from General Revenue
– Can appropriate up to the amount collected by Workforce Training Fund
– Requires additional appropriation or other recapitalization effort once initial capital
funding is spent (public or private)
– Appropriation revenue, other monies in the form of gifts/ grants/ private contributions to
the Fund, and investment income can be credited to the Fund
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Administered by Department of Workforce Development, contract with
Commonwealth Corporation for trust administration and program management
– Fund must be audited annually by an independent accountant
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Advisory Committee appointed by the Director of the Department of Workforce
Development
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Objectives of Trust Fund
Section 2.WWW (a)
 Develop employer and worker responsive programs
 Enhance worker skills, incomes, productivity, retention to increase business
competitiveness
 Train and employ the unemployed
 Improve employment and skill for low-income/ low-wage workers, special focus
on “family-sustaining” wages
 Training vulnerable youth on basic education (HS diploma) or to advance their
education to post-secondary or vocational schools
 Creating occupational skills for jobs with “career potential”
 Training “older workers” for new occupations
 “Improve the workforce development system by integrating employer and
worker needs more fully in program design”
 Leverage employer, public, philanthropic and other contributions and to act as
“match” to federal funding
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Use of Funding
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Planning activities to define employer need, create curriculum or refine programs
to employer need, determine feasibility of proposed intervention, plan partnerships,
identify education and skill needs of participants, link training initiatives with
career ladders, or develop case management and support services (Section
2.WWW(f))
Program/service activities (Section 2.WWW (a))
Support services including, but not limited to, transportation, childcare,
elimination of barriers to participation in training (Section 2.WWW (e))
Grants to critical industries, some portion dedicated to:
– Health Care (current and future labor force needs)
– Travel and Tourism (labor force needs and wage improvement strategies)
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3 year grant period (maximum)
Grants shall not exceed $500K
Requires “co-investment” from employers, philanthropic and public or private
organizations of 30% of grant award amount (Section 2.WWW (f))
7.5% cap on individual grants’ administration expenses (administration undefined)
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Eligible Applicants
The Universe of Organizations
 Employers, employer organizations
– Unionized employers must include unions as active participant in program design
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Local Workforce Investment Boards
Labor organizations
Community-based organizations
Higher education institutions (not limited to public)
Vocational education institutions
One-Stop Career Centers
Local workforce development entities
Non-profit education, training and other service providers
NOTE: All applicants must notify the local Workforce Investment Board of intent
to respond to RFP (Section 2.WWW (f))
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Target Population
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Incumbent workers (all types) (Section 2.WWW(a))
Unemployed (all types) (Section 2.WWW(a))
Low-income, low-wage, low-skilled workers (Section 2.WWW(a & f))
Youth (educationally or economically disadvantaged) (Section 2.WWW(a
& f))
Disabled Citizens (Section 2.WWW(f))
Older Workers (Section 2.WWW(a)) – not less than $1,000,000 spent on
projects benefiting this target pop
Industries of “Critical Consequence” to the Commonwealth (Section
2.WWW(f))
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Structure of Advisory Committee
Section 2.WWW (b) and (f)
 Represent constituencies and beneficiaries
of the Fund (see Membership Matrix)
– Two subcommittees on Health Care and Travel
& Tourism (additional appointments)
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No less than quarterly meetings
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Role of Advisory Committee
Section 2.WWW (b)
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Represent constituencies and beneficiaries of the Fund (see Membership Matrix)
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Assist DWD and CommCorp in general oversight of the Fund’s implementation
and:
– Supply constituent focused labor market information
– Review general programmatic guidelines
– Assist with identification of barriers to Fund’s efficiency and effectiveness
– Disseminate information about the Fund
– File report to Legislature and Committees by December 31st each year
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Define “regions” based on labor market factors (Section 2.WWW(f))
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Determine regional allocation formulas (Section 2.WWW(f))
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Determine apportionment of resource for grants between the general grant
program, health care, and travel & tourism
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Points for Further Discussion
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By-laws for Advisory Committee
Definition of “industries of critical consequence”
Regional definitions and allotments
Apportionment between industries
Programmatic Guidelines NOT included in
authorizing language (required partners etc)
Performance / Outcome measures for grants and
the Trust Fund
Others?
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Timeline
October – November 2006
Advisory Committee determinations on:
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Critical industries
Regional structure
Allocation of funds
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Between program areas (general program, healthcare, T&T)
Formula for regional distribution
Late November – Early December 2006
Release of Application\RFP
December 2006 – January 2007
Technical Assistance Period
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Timeline
Early February 2007
Applications\Proposals due
Late February 2007
Awards announced
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