Transcript SWAMMEI Background Cost of Education

S WA M M E I B U S I N E S S PA R T N E R S
S E P T E M B E R 23 , 20 1 4
P O I NT S O F DISCUSS ION
❶ SWAMMEI Background
❷ Cost of Education -The Status Quo
❸ Big Shifts in 2-Year Colleges
❹ SWAMMEI - What’s in it for you?
❺ Questions
P O I NT S O F DISCUSS ION
❶ SWAMMEI Background
Major Objectives of USDOL
MA J O R SYST EMIC SHIFT S T HR OUG H:
• Meet workforce needs of local business and industry
• Robust communication
• Target low-skilled adult workers
• Align workforce development efforts of Montana
Department of Labor and two-year colleges
• Reduce cost of education/debt load for students
P O I NT S O F DISCUSS ION
❷ Cost of Education -The Status Quo
Issue Number 1
B U S INESSES NE E D HI G HLY S K I L LE D E MP LOYE ES B U T MT WAG E S
R E MA IN R E L AT IVELY LO W – NO R E T U R N O N I NVE S T MENT
• Tuition and fees run $3,266 - $5,064 per year
• Federal “Cost of Attendance” (inc. books, housing, etc.) $5,000$8,000/semester
• Loss of income while in school FT  PT work
• Loan default rates @ 5-20% in two-year colleges
• Accepting a 4-year return on investment as reasonable:
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Completed 1 semester training = $12.50/hour wage
Completed 2 semesters training (CAS) = $15/hour wage
Completed 3 semesters training = $17.50/hour wage
Completed 4 semesters training (AAS) = $20/hour wage
Issue #1 (Continued)
• In 2011, 66% of Montana’s AAS students didn’t graduate.
• For the 1 out of 3 students that do graduate:
• It takes the average graduate 3.16 years to complete a “2-year” program
• Earn $2.50/hour more after graduation (than high-school graduates)
• An aspect of this is that Montana wages remain relatively low in comparison
to other states (very low outside of Bakken-related salaries)
• For most Montana students, the return of investment for
pursuing AAS degrees is a 10+ year endeavor!
• This doesn’t serve students and won’t fill the pipeline…both the
cost of education and wages need to shift for the skills-gap to get
filled
Issue Number 1 (continued)
WHE N A SK E D WHAT S K I L L -LEVEL, WHAT S E T O F CO MP E T ENCIE S,
WHAT E X PE RIENCES D O YO U NE E D I N YO U R E MP LOYE ES:
• We (the Workforce Development System) are excited to train workers to
any skill-proficiency level, but if your wages don’t pencil out with the
cost of obtaining those skills… it will still result in a small pool of
applicants to your positions
• Several ways that we can collectively begin to address this…SWAMMEI
allows us to initiate several strategies to help
P O I NT S O F DISCUSS ION
❸ Big Shifts in 2-Year Colleges
SWAMMEI in Brief
$24.9 million
IN T HR E E YE A R S WE WILL:
• 8 stacked credential occupational programs
• More on and off ramps into programs (quicker and cheaper)
• Embedded industry-recognized credentials into academic programs
• Invest in more than $6.6 million dollars of new equipment and $6
million more in contractual services = top notch programs
• Create mechanisms to efficiently share courses across the 2-year
system, particularly benefitting isolated rural students/businesses
• Pilot sector strategy partnerships as an approach for coordinating an
industry-wide approach to workforce development
SWAMMEI
8 MA IN A R E A S O F ACA D E MI C F O CU S ( L E A D CO L L E GE)
• Welding and Welding Fabrication (Great Falls College MSU)
• Manufacturing (Flathead Valley Community College)
• Machining, Industrial Maintenance and Industrial Electronics
• Industrial Safety (City College)
• Energy Technician (Missoula College)
• Diesel Technology (Helena College and MSU Northern)
• CDL/Heavy Equipment Operators (no lead)
• Entrepreneurship (Missoula College) – endorsement only
P O I NT S O F DISCUSS ION
❹ SWAMMEI - What’s in it for you?
Issue Number 2
I CA N’ T FIND T HE R I G HT E M P LOYE ES ( I . E . N E W E M P LOY EE S
D O N’ T HAVE T HE R I G HT CO MP E T ENCIES)
• Curriculum
• Enhanced through input
• Alignment across programs in the state
• Industry-Recognized Credentials
• Alignment across nation
• Sector Strategies
• Apprenticeship
State-of-the-Art Programs
CU R R I CULUM:
• We earnestly want your input into the skills and competencies that
students should have when they graduate  please get in touch with
one of our Workforce Navigators
• At the foundational level – programs are being aligned across the state
 you can expect a worker to arrive with the same skills/competencies
from any college in our program
• Sector Strategies will allow your industry to tell us (workforce
development system) what you need as one voice
State-of-the-Art Programs
CU R R I CULUM: INDUSTR Y -R ECOGNIZ ED CR EDENTIALS
• Third party accountability for colleges
• Alignment with businesses across the U.S.
• Machining = National Institute of Metalworking Skills (NIMS®)
• Industrial Electronics = Electronics Technician Association – International (ETA-I®)
• Welding = NCCER (American Welding Society (AWS Sense))
• Energy Technology = NCCER (Electronics Technicians)
• Diesel Technology = American Equipment Distributors (AED)
• Industrial Maintenance = TBD (likely NIMS)
Sector Strategies
CR O SS -INDUST RY CO NS I STE NCY: MA NU FACTUR ING A ND E NE R GY
INDUST RIE S
• Occupational Titles
• Common expectation of competencies
• Common expectations @ wages
• Responsiveness of Workforce Development System
• Growth of Industry
Apprenticeship
NOT YO U R G R AND DADDY’S APPR ENTICESHIP:
• If the issue is that new employee candidates:
• Don’t have enough training…
• Don’t have training specific to your specific equipment/culture…
• Need a test run…
• Apprenticeship might be an answer
• Collaboration between your business (on-the-job training) and colleges (classroom
education)
• Incentives
Issue Number 3
I CA N’ T FIND T HE R I G HT E MP LOYE ES
• Wages?
• Hiring
• NCRC assessment
• Workforce Navigators
• Apprenticeship
Hiring
• National Career Readiness Certificate (NCRC)
• Workforce Navigators in 14 regions across the state
• Solicit input from you
• Deliver skilled candidates to your door
Issue Number 4
MY CUR R E NT E MP LOY EES NE E D A D D I T I ONA L T R A I NI NG
• Continuing Ed for short-term training
• Incumbent worker training dollars
• More significant training jumps
• Stacked credential model
Stacked Credential Model vs. Traditional 2-year
Traditional Degrees
Associate of Applied
Science (AAS*)
(e.g. 64 credits)
Currently 66% of Montana’s
AAS students do not
complete the AAS Degree
• CAS Degree
Certificate of Applied
Science (CAS)
(e.g. 34 credits)
Stacked Credential Model
Tier IV CTS
(e.g. 16 credits)
Tier III CTS
(e.g. 16 credits)
Tier II CTS
(e.g. 16 credits)
Tier I Certificate of
Technical Studies (e.g.
16 credits)
Alt. Tier III/IV
• AAS Degree
New Outcomes
Apprenticeship
Current Outcomes
Alt. Tier II
• Tier IV CTS or AAS
• Industry-Recognized Credential
• Pre-apprenticeship or apprenticeship
• Tier II CTS
• Industry-Recognized Credential
• Pre-apprenticeship or apprenticeship
• Tier II CTS or CAS (with both tiers)
• Industry-Recognized Credential
• Pre-apprenticeship or apprenticeship
• Certificate of Technical Studies (CTS)
• Industry-Recognized Credential
• Pre-apprenticeship
❶ Let’s shape programs to meet your needs
❷ Let’s Pilot Some Hiring Aids
° National Career Readiness Certificate (NCRC)
° Industry-recognized credentials
° Workforce Navigators
° Apprenticeships
❸ If you need something different – Come talk to us.
❹ Consider participating in Sector Strategy dialogue
❺ Consider cost of training when determining wage
levels
P O I NT S O F DISCUSS ION
❺ Questions??
FOR MORE INFORMATION:
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SWA MMEI PR OJ ECT DIR ECTOR
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