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May 28 th , 2014 Metropolitan Council Chambers 390 N. Robert St, Saint Paul, MN

May 28 th , 2014 Metropolitan Council Chambers 390 N. Robert St, Saint Paul, MN. Hennepin County Workforce Development. Education to Employment Program. May 28, 2014. Workforce Challenges. Aging Workforce - Estimated Retirements through 2020.

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May 28 th , 2014 Metropolitan Council Chambers 390 N. Robert St, Saint Paul, MN

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  1. May 28th, 2014 Metropolitan Council Chambers 390 N. Robert St, Saint Paul, MN

  2. Hennepin County Workforce Development Education to Employment Program May 28, 2014

  3. Workforce Challenges Aging Workforce - Estimated Retirements through 2020 Source: Hennepin County Human Resources, March 2013.

  4. Workforce Challenges Aging Workforce - Estimated Retirements through 2020 * Includes Sheriff’s Office, County Attorney’s Office, Department of Community Corrections and Rehabilitation, and Emergency Management; does not include District Court and Public Defender. Source: Hennepin County Human Resources, March 2013.

  5. Sector- Based Job Opportunities* • Employment Vacancies • Attrition Rate: • 8-10% each year • Estimated Retirement: • 32% through 2020** • Minnesota labor force growth is projected to slow from 0.5% in 2013 to 0.1% in 2020, resulting in a workforce shortage. *** * Specialized Training Opportunities ** Source: Estimated Retirements. Hennepin County Department of Human Resources, March 2013. *** Source: Minnesota Demographic Center, December 2013.

  6. Workforce Challenges Unemployment Source: Minnesota Department of Employment and Economic Development, January 2014.

  7. Workforce Challenges Unemployment Disparities Source: U.S. Bureau of Labor Statistics, 2010.

  8. Workforce Challenges Demographic Projections Minneapolis-St. Paul Population by Race and Ethnicity, 2010-2040. Source: What Lies Ahead: Population, Household and Employment Forecasts to 2040, Metropolitan Council, April 2012.

  9. Hennepin County Workforce Challenges Alignment and Coordination of Workforce Programs • 65+ programs and initiatives • 40+ external partners • Workforce coordinator position

  10. Hennepin County Workforce and Employment Development Activities (Internal and External) DRAFT 4/3/14 Hennepin County Board County Administration Government Partners Educational and Research Partners • MN Dept. of Employment and Economic Development • MN Dept. of Human Services • Minnesota Workforce Centers • Workforce Investment Boards (Hennepin-Carver and Minneapolis) • City of Minneapolis (CPED, METP) • Other city partners • University of Minnesota • MCTC • Summit Academy • Itasca Project • PPL • Better Futures • NCRT • Foundation Collaboration Purchasing and Contract Services Human Resources • Internships (Step-Up, SCOPE) • Recruitment • Workforce Planning • Leadership Development • Knowledge Transfer • Training • Onboarding • Affirmative Action Program • SBE Program • Workforce Entry Program • Prevailing Wage Program Health Human Services Operations Service Providers Public Works Public Safety Partners Community Partners • PPL • Summit Academy • HIRED • Twin Cities RISE • Emerge Workforce • YouthLink • Employment Action Center • American Indian OIC • Northside Achievement Zone • Greater MSP • Better Futures • Habitat • GMHC • Downtown Council • United Way • Urban League • “100 Hard Hats” Consortium • African Community Services • CAPI USA • Jewish Family and Children’s Services • Eastside Neighborhood Services • Goodwill Easter Seals • Hmong American Partnerships • Lifetrack Resources • Lutheran Social Services • Perspectives Inc. • Resource Inc. • St. Stephen’s • RISE Inc. • METP • Goodwill Easter Seals • HIRED • United Way • Tree Trust • PPL • Resource Inc. • MNPAVE • Eastside Neighborhood Services • Takoda Institute of Higher Learning • Refugee Employment Services • Twin Cities RISE • African Community Services • American Indian OIC • CAPI USA • Emerge • Hmong American Partnerships • Jewish Family and Children’s Services • Lifetrack Resources • Lutheran Social Services • Perspectives Inc. • MN DEED • St. Stephen’s • RISE Inc. • Adult • Work/Study Release Program • Sentencing to Serve • Productive Day Enterprises • Industries Program Public Health Information Technology Housing, Community Works and Transit Internal Services • HealthWorks • Public Health Nurse Training • Genesys Works Program Eligibility and Child Support • Hennepin County Workforce Centers • STS Homes/Summit Training Program Library • Employment Services • MFIP Services • Diversionary Work Program • Workforce Investment Network (WIN) • SNAP E and T • FATHER Project Hennepin Health • Juvenile • Juvenile Detention Alternatives Initiative • Sentencing to Serve • County Home School Programs • Hennepin County Adult Learning • Franklin Learning Center • Job and Small Business Programming • ACF Partnership • Online Job Resources • Skills Training and Assessment • New Provider Types • Life Style Overview Surveys • Employment Pays Program Community Works • Community Works Contracting NorthPoint Health and Wellness Environmental Services Community-Based Services County Attorney • NorthPoint Achievement Zone • Gateway Project • Community Health Worker • Northside Workforce Investment Network (WIN) • Northside Fresh Economic Work Team • Computer Lab/Job Club • Employment Counselors • Health – Workforce Training Models • Employee Training and Certifications • Recycling Contracts (PPL/Better Futures) • Deconstruction Activities • Prevailing Wage Program • Internships • Work and Economic Resource Center • Workforce Planning • Workforce Resources Center for Innovation and Excellence • A-GRAD • Hennepin –University Partnership Sheriff’s Office Assessment and Case Management • Internships • Citizen Academy • Diversity Recruitment Resident and Real Estate Services • Day Training and Habilitation • Vocational Services Program • Tax forfeited Properties • Deconstruction Activities Veterans’ Services Public Affairs • Vocational Rehab • GI Bill for the 21st Century • Minnesota GI Bill : Hennepin County Government Medical Examiner • Leadership Academy • Communications Support : External Entities • Medical Student Rotation • Fellowship Program

  11. 10 Hennepin County and External Workforce Entities Workforce Investment Boards MN DEED Other Municipalities Federal City of Minneapolis State/Region Local Cities Minnesota Workforce Centers Hennepin County Service Providers (i.e., Twin Cities RISE) Service Providers (i.e., United Way) Community Partners Private Sector Educational Institutions Community Organizations (i.e., NAZ) County Contracts Research Partners (i.e., Itasca Project) : Government Entities : External Organizations Training Partners (i.e., Summit Academy)

  12. Workforce Development Findings Finding Possible Action How can we position the county to have the right workforce at the right time? Minnesota labor force growth is projected to slow from 0.5% in 2013 to 0.1% in 2020, resulting in a workforce shortage. Source: Minnesota Demographic Center, December 2013. • Work with private and non-profit sectors to train and match employees. • Partner with colleges, universities and training programs to develop a strong future workforce. By 2018, 70% of job openings will require a credential. (i.e., certifcation, licensure, associate’s degree, bachelor’s degree). Source: Georgetown University Center on Education and the Workforce, June 2010.

  13. Current Workforce Development Efforts

  14. Recommended Workforce Development Strategies

  15. Hennepin County Workforce Leadership Council Membership: Employers Hennepin County Educational Institutions Workforce Investment Boards Leadership Governance Policy Partnerships Function: Fundraising Networking Innovation Education and Training Purpose: • Provide internships and employment opportunities • Develop sector-based workforce

  16. Workforce Master Cooperative Agreement • Workforce Leadership Council • Initial Members: Hennepin County, MCTC, MNSCU, Downtown Council, other private and public sector partners • Formal framework to establish training • Statements of work for specific job curriculum (i.e., IT, health) • Scholarships • Curriculum development costs • Internships • Employment opportunities

  17. Master Cooperative Agreement Structure Hennepin County Workforce Leadership Council Private Sector Public Sector Hennepin County Educational Institutions Sector-Based Education and Training Internships Employment Opportunities

  18. Human Services Representative FastTRAC Program: • 41 participants • 8 ½ month program Education and Training: • Project for Pride in Living (PPL) • Minneapolis Community and Technical College (MCTC) Internships: • Hennepin County Human Services Department • Graduation: June 2014 Employment Opportunities: • Hennepin County • Certification • Other counties

  19. Evaluation of Job Classifications • Recognizing Educational Equivalencies • Salary by Education Level in Hennepin County High School Diploma Associate’s Degree Median Median Source: Wanted Analytics, March 2014.

  20. Next Steps • Approve Workforce Master Cooperative Agreement • Workforce Leadership Council Creation • Statements of work • Approve $200,000 contingency transfer (Resolution 13-0316R1) for curriculum development • Evaluation of: • Job classifications • Internship best practices • User-friendly job postings

  21. May 28th, 2014 Metropolitan Council Chambers 390 N. Robert St, Saint Paul, MN

  22. TC3:FUTURES

  23. ECONOMIC EQUITY EQUALS (EQ) • Mobility/Proximity • Central Business District and Access • Mass transit accessibility • Marketable Skills/Education • Short-term (< 2 years) credentialed certification focused on applicable, market-ready skills • Relationships/Social Networks • Social Capital = critical linkage to skilled employment and economic opportunity

  24. MFSA: THE TEST MARKET • Developments and Progress • Began workforce procurement efforts January 2014 • Partnered with Mortenson/Thor and subs to develop workforce projections. • Procuring workforce for 10 major tradesover life of project, including specialty trades. • EAF Update • 90 skilled candidates currently available for employment on the project. • 54 candidates complete training and ready for project demand June 30th . • 38 Specialty Trade training candidates complete training and ready for project demand September 8th. • Job Fair yielded 600 candidates

  25. THE TC3 SYSTEM DEMAND FORECAST SUPPLY REPORTING Jurisdictions EAF Owners General and Subcontractors EAF Community Outreach Partners Training Partners Union Partners Outreach # Enrollment # Graduation # Placement # Retention # Financial Reporting Project I.D. Workforce Need Functions Functions Forecast Labor Needs Training Cycles Marketing Intake Assessment TrainingPlacement

  26. KEY ACCOMPLISHMENTS • Establishment of Administrative and Forecasting Protocols and Procedures across agencies (owners, general and subcontractors): • TC3 Operations Management • Contract Management • Data Management and Forecasting • EAF Process Management • Measurement and Evaluation • Establishment of outreach, training, and placement targets to manage and deliver a skilled workforce: • Developed recruiting & training targets • Developed training schedules • Subcontractor agreements with training & outreach partners

  27. MOBILIZING THE (UN)SKILLED WORKFORCE • Identification & Recruitment of a skilled labor pool • 435 Candidates skilled/unskilled in the EAF database • 90 skilled workers placement ready. Recruited from job fair. • 120 skilled and/or unskilled completing assessments • 225 in training and/or training ready

  28. COORDINATED ADULT WORKFORCE SYSTEM Outreach Partners Somali Education & Social Advocacy Center Latino Economic Development Council Community Standards Initiative Training Partners

  29. SAOIC: BUILDING A CONSTRUCTION WORKFORCE

  30. KEY STAKEHOLDERS: TC3 MOMENTUM The outlined jurisdictions below have been engaged in discussions on TC3 and expressed interest to adopt: • City of Minneapolis Public Works • 300 retirements over the next 5 years • Hennepin County Public Works • Capital Improvement Plan 2014-2018 • $676,694,222 • MET Council • 2014-2018: $1,082,000,000 • Projected SWRT budget between $1.673-$1.683 billion

  31. POTENTIAL OPPORTUNITIES… DOWNTOWN EAST • Creates 1,000 construction jobs over 24 months • Expands full-time employment opportunities in downtown Minneapolis • Critical linkage to adjoining neighborhoods and community access NICOLLET CORRIDOR • Vertical and horizontal construction development • $50 million direct spending • 1,000 additional full-time jobs in Downtown Minneapolis post-construction (retail, hospitality, customer service, business administration)

  32. IN DOWNTOWN MINNEAPOLIS HCMC • $191 million, 322,000 square foot medical clinic and specialty center • Opening in 2016 Kraus Anderson HQ • 80,000 square foot headquarters in the heart of downtown Minneapolis. • $15 million projected costs • HQ scheduled to open in 2015

  33. MARKET NEED

  34. MIDDLE SCHOOL & HIGH SCHOOL PLATFORM • Extra-Curricular Development at Middle School Platform (Harvest Prep Middle School) • Ongoing discussion with Minneapolis Public Schools & continue to navigate the political system • Identified critical adult education GAP in the community: GED Adult Basic Education BRIDGE STRATEGY: (RE)CONSTRUCT THE GED Challenge: Expand GED population to mobilize workforce Over 40% of the MFIP population in North Minneapolis does not have a GED or High School Diploma. Opportunity: GED Fast Track to Construction Need for fast track Workforce GED Training to address adult education gap to prepare adults for vocational education and training. Opportunity to tailor GED track to meet pre-apprentice training requirements.

  35. INFRASTRUCTURE DEVELOPMENT POLICY • Market leaders to adopt: • Hennepin County • City of Minneapolis • MET Council • Penetrate bureaucracy operating procedures • Legislative support • State and Local Financing

  36. CHALLENGES & OPPORTUNITIES CHALLENGES: • Snail pace of bureaucracy • Partnership Management • CBO patience • Outreach capacity • Union politics • Unity of interests OPPORTUNITIES: • $2 billion in construction in Downtown Minneapolis • Carlson Consulting Enterprise key findings: • Future worker shortages • Impact of racism • Vertical expansion of EAF

  37. NEXT STEPS • Secure market leaders: • City of Minneapolis Public Works • Hennepin County Public Works • MET Council • Operationalize TC3 Framework • Business Plan • Customer Expansion Platform for workforce development S3 • TC3 serves as the basis for a workforce development system (S3) expanding beyond the construction sector. • High growth industries as identified by the U.S. Department of Labor High Growth Job Training Initiative include: • Manufacturing, Hospitality, Retail, and Healthcare.

  38. May 28th, 2014 Metropolitan Council Chambers 390 N. Robert St, Saint Paul, MN

  39. New NDC Logo Here East Metro Job Creation Fund supported by the St. Paul Foundation through a Program Related Investment This means we have to pay it back with interest

  40. Who we are? Jan Jordet Senior Director Consulting & Financing Services 612-259-6566 jjordet@meda.net Mike LaFave Vice President & Chief Operating Officer 651-379-8424 mlafave@ndc-mn.org

  41. 43 years old – founded by corporate executives • Vision – thriving communities through equal economic opportunity • Mission - helping entrepreneurs of color succeed! • Core services provide: • Access to information/consulting • Access to financing • Access to government • and corporate markets • One-on-one consulting model aimed at bringing minority-owned businesses to scale • www.meda.net

  42. NDC PAGE • Formed in 1993 • Mission: Empower low income entrepreneurs in specific low income communities as revitalization strategy • Building neighborhood economies from within • People and Place based approach • Core services: • Entrepreneur Training • Small Business Lending • Technical Assistance/Business coaching • Equitable Real Estate Development www.ndc-mn.org

  43. Why financing? • Studies from local, regional and national entities have shown: • People of color are more often declined financing with all things being equal • When receiving financing, people of color often receive higher interest rates than white counterparts • Greatest obstacle to business success for MBEs is identified as access to financing

  44. Entrepreneurs are job creators! East Metro Job Creation Fund Each organization received $1 million in capital

  45. PRI Terms • Meda and NDC have ten years to deploy the $1 million – different markets/approaches • Goal is to make loans to mid-market businesses in the East Metro with a goal of creating new jobs benefitting low-income residents and giving specific attention to residents of color.

  46. Entrepreneurs of color employ more people of color! • Meda’s survey of about 200 companies annually shows that minority-owned business enterprises (MBEs) are more likely to hire other people of color. • Newest survey from 2013 shows that 42% of all MBE employees were people of color. • and86% were paid a living wage or more!

  47. Examples: • Small remodeling construction company - $50,000 for working capital – created 2 jobs ($15/hr) • Small insulation company - $17,500 to secure a bond for union workers – retained 4 jobs ($23/hr) • Newly acquired excavation and sewer company - $50,000 equity-like capital - retained 15 jobs ($26/hour) • Expansion of small manufacturer - $175,000 creating 4 jobs ($22/hr)

  48. Examples: • Food manufacturing company - $150,000 Equipment Loan - created 15 new jobs retained 20 jobs ($16/hr) • Sheet rock installation company - $100,000 working capital loan; added 3 new permanent jobs/15 temporary jobs ($23/hr) • Small construction company - $50,000 working capital line of credit – created 3 new jobs (15/hr)

  49. Access to capital necessary but not sufficient • Technical Assistance is critical! • In each example, NDC and Meda spent numerous hour working 1 on 1 with entrepreneurs to: • Build their capacity • Enhance skills • Connect them to networks • Prepare them to utilize capital effectively • Build sustainable businesses

  50. Economic Equitycreates thriving communities • Thanks to the St. Paul Foundation for entering this type of philanthropy • McKnight Foundation is also funding a collaborative effort for economic equity in transit oriented development projects • Other private and community foundations are recognizing the power of business ownership • Successful entrepreneurs not only create jobs but build wealth in communities left behind by a history of institutional inequities

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