Minnesota Workforce Council Association
UPDATE

April 7, 2006

In this issue:

 

§          State Supplemental Budget Update

§          Federal Updates- WIA, TANF

§          New CLASP Report Regarding Partnering with Business to Advance Low Wage Workers

§          Joyce Foundation Initiative

§          Minnesota Development Conference Call for Presentations

 

STATE SUPPLEMENTAL BUDGET UPDATE

Tuesday, the Senate Finance Committee marked up the Senate Supplemental Budget bill.   The Senate is moving forward with one comprehensive proposal; Senator Cohen said in introductory remarks that having one supplemental spending bill reduces the "anarchy" of passing and negotiating a separate bill for each budget area. He said Senate leadership agreed to split the projected surpluses in the general fund and the tax relief account equally between the Finance and Tax Committees. Several amendments were offered, but none of them affected portions of the Economic Development (lead- Senator Sams) or Human Services (lead- Senator Berglin) budgets which pertain to issues of particular interest to the Workforce System.  The finance bill will now go to the Senate floor.

 

The House, unlike the Senate, is moving each of the committee budget bills separately.  Tusday night, the House Ways and Means Committee marked up the Jobs and Economic Opportunity Policy and Finance bill (Representative Gunther).  Several amendments were offered.  Of particular interest, Representative Karen Clark offered an amendment which directs excess funds from the Food Assistance Program to Learn to Earn, Minnesota Youth Program, and YouthBuild.  The amendment passed by voice vote.

 

Once the House and Senate have passed the bills through their respective chambers, conferees will be named.  A couple of the obstacles that must be addressed before much progress can occur beyond that point is some agreement on spending targets and whether there will be one large bill as the Senate is constructing, or several budget bills as the House is preparing.

 

Initiatives Included in Supplemental Spending Bills

 

House Jobs and Economic Opportunity Finance Committee:

$750,000 was available to fund activities in this committee's jurisdiction, including TANF funds.

  • uses $27 million in TANF to fund MFIP child care grants and DWP grants, but moves $20 million in general funds out of human services

  • provides small increases for MFIP child care grants ($.3 million for FY08-09)

  • increases basic sliding fee child care ($.5 million in FY06-07)

  • allows MFIP expenditures made on behalf of any minor child who is part of a two-parent

  • eligible household as allowable expenditures under the separately funded state program;

  • these expenditures would not count toward the Federal requirements.

  • allocates $450,000 from the Workforce Development Fund for a pilot project to encourage the licensure in Minnesota of foreign-trained health care professionals (HF3578, added by amendment in markup by Representative Clark)

  • directs excess general fund dollars from the Food Assistance Program to the Minnesota Youth Program.  Funding levels are $401,000 for FY07 and $200,500 for FY08

 

Senate HHS Budget Division:

  • includes Senator Berglin’s MFIP WorkPREP initiative (a new program funded with state dollars for MFIP households with barriers to employment)

  • eliminates the 5% reduction so Counties receive their full consolidated fund allocation.  If the Department chooses, they can finance performance-based incentives from the Commissioner’s Innovation Fund

  • repeals MFIP $50 subsidized housing penalty

  • includes both health care and child care provider rate increases

 

Senate Agriculture, Environment, and Economic Development Budget Division:

A total of $4.150 million general fund appropriations are included in the measure and the total from all funds is $9.680 million.

  • allocates $1.92 million dollars per year from the Workforce Development Fund to Minneapolis summer employment programs, of which $250,000 each year must  go to Learn-to-Earn

  • allocates $250,000 (one time) from the Workforce Development Fund to the West Central Initiative in Fergus Falls to implement and operate Northern Connections.  The appropriation must be matched by an equal amount of non-state money

 

Both House and Senate include modifications to the Partnership Program and the Pathways Program.  Current law states that “up to 25% of a job skills partnership board grant may be used for pre-employment training.”  The new language allows more flexibility by striking “25%” and replacing it with “a portion.”

FEDERAL SUPPORT FOR INCREASED WIA FUNDING CONTINUES

The Senate Dear Colleague letter to the Labor-HHS Appropriations Committee requesting the restoration of funding for WIA and Employment Services programs to FY 05 levels has been submitted.  As you will recall, both Senator Dayton and Senator Coleman supported the letter.

The House letter to the Appropriators supporting WIA was submitted on Friday.  Minnesota Congress members McCollum, Oberstar and Peterson signed on to the letter.

TANF RULE WRITING UNDERWAY

As outlined in previous MWCA Updates, the passage of the Federal Deficit Reduction Act included reauthorization of the Temporary Assistance for Needy Families (TANF) program.  Since then, the Federal Department of Health and Human Services has begun writing new rules, including work activity definitions and state performance reporting that will govern TANF programs. 

MWCA has actively encouraged the Minnesota Delegation to send a letter to HHS Secretary Leavitt asking the Department to adopt TANF rules that will: allow state flexibility; define work activities broadly enough to allow Minnesota to continue to receive credit for employment and pre-employment activities; discourage diversion of resources to new administrative functions; and delay the implementation deadline to 2008.  Representatives McCollum and Ramstad have been asked to lead the effort to gather support of the entire Minnesota Delegation for this letter.

CLASP ISSUES REPORT ON GOVERNMENT PARTERNERSHIPS WITH BUSINESSES           TO HELP LOW-WAGE WORKERS

(from the National Governor’s Association)

The Center for Law and Social Policy (CLASP) has released a report entitled, “Wising Up: How Government Can Partner with Business to Increase Skills and Advance Low-Wage Workers” by Amy-Ellen Duke, Karin Martinson, and Julie Strawn.  The report examines five training partnerships underway in four states that demonstrate how states and local governments have partnered with business and industry to train low-wage workers and encourage the creation and retention of “good” jobs—those that pay enough to support a family and offer health care, sick leave, and other important benefits.  The report offers innovative practices, challenges, and lessons learned for states and localities.

 

The authors identified three models that appear to be the most common at the state and local level:  Incumbent Worker and Customized Training Programs; Career Ladders or Pathways; and State Skills Certificates and Panels.  Five initiatives in Georgia, Kentucky, Louisiana, and Massachusetts were examined.  The report makes several recommendations for states and localities interested in establishing partnerships with businesses to advance low-wage workers:

  • When using public funds for training partnerships, find creative ways to ensure that the training benefits low-wage workers—for example, by targeting training grants according to workers’ skills, job level, occupational cluster or sector, and/or geographic region.

  • Link the training provided to wage increases or job promotions.

  • Incorporate basic education and English language instruction into training so that it is accessible to lower-skilled workers.

  • Wherever possible, require business partners to provide paid release time for training.

  • Offer on-site training, preferable during work hours, or flexible scheduling at off-site locations.

  • Help workers earn college certificates and degrees over time by offering transferable college credit for partnership training.

  • Support workers’ participation in training with career and academic counseling, tutoring, soft-skills training, opportunities for peer networking, and other supportive services, such as child care.

The report includes in-depth profiles of each training partnership, and includes contact information for readers interested in learning more.  To access the report, go to: http://www.clasp.org/publications/wise_up_2006.pdf

 

JOYCE FOUNDATION INVESTIGATES ACCESSIBILITY ISSUES FOR LOW SKILL AND ADULT LEARNERS

The Joyce Foundation recently approved a $10 million, three-year initiative to foster policy innovation and coordination among workforce, welfare, economic development and education systems in up to four states.  The three-year goal is to begin to institutionalize state policy change that will build on what is working and offer new strategies to improve access and success for low-skilled adult learners.  The initiative will focus on ensuring that low-skilled working adults can gain the credentials and experience they need to compete for high-demand, better-wage jobs.

On behalf of the Joyce Foundation, Workforce Strategy Center is visiting six Midwestern states, including Minnesota, to hold conversations with stakeholders to learn how to structure the initiative.  Participants in the Minnesota sessions included representatives from DEED, GWDC, DHS, Department of Education, the Governor’s Office, Non-Profit providers, MnSCU, and MWCA.  Following the state visits, the Joyce Foundation will make decisions regarding how to structure the initiative.

MINNESOTA DEVELOPMENT CONFERENCE CALL FOR PRESENTATIONS

The Minnesota Development Conference, of which MWCA is a co-sponsor, will be held on October 4th and 5th.   This year’s theme is “Accelerating Innovation and Entrepreneurship.”  The Call for Presentations was posted this week on the DEED website - the deadline for proposals is Monday, May 15.  www.deed.state.mn.us

SAVE THE DATE!

MWCA’s Annual Summer Meeting will be held in Duluth again this year.  Details to come, but please save the dates of August 8 (evening welcome reception), August 9, and August 10 (morning only).

If you wish to be added or removed from this distribution list, you may request to

 do so by e-mailing aolson@mncounties.org.