Michigan New Jobs Training Program

1. Michigan New Jobs Training Program Michigan Community College Association Professional Development: Pay-As-You-Go-Model May 2010

2. Introduction • Trainers • Daniel Phelan, President, Jackson Community College • Eric Williams, Executive Director of Economic Development, Grand Rapids Community College • Sharon Miller, Dean of Economic and Workforce Development, Oakland Community College • Agenda • Pay-As-You-Go Program Mechanics • Case: Grand Rapids Community College • Packaging & Marketing

3. Pay-As-You-Go Program MechanicsDAN PHELAN

4. Operational Considerations • Essentially three major phases to a MNJTP: Initial Communications/Verification, Preliminary Agreement and Final Agreement; • Contractual agreements (other than pay-as-you go) are a contingent liability to the College; • While only the final agreement requires board authorization, be sure to determine what your board requirements might be beyond the law; • Go slowly on your first agreement and over-communicate with the board, and keep MCCA in the loop; and • Consider setting aside institutional administrative allowance.

5. Project Sizing • Determine, in advance, your institution’s (i.e., Board’s) level of risk comfort – how conservative are you? • Key data points: • Number of net new jobs • Wage rate per job • Number of exemptions or average exemption rate • Number of years of the agreement • Consideration of a wage escalator • Lending Interest rates • PAYG Option • Other

6. Project Sizing • Recommend the use of a project template for each project • Current draft model • Use resultant data to drive financial instrumentation selection • Fund balance • Loan • Bond • PAYG • Prepare repayment schedule with lender or develop one internally

7. Project Tracking • Core Template elements: • Track jobs by tracking the individual – reconcile monthly • Track payments by the employer – reconcile monthly • Establish defined and budgeted training plan in advance – reconcile expenses monthly • Obtain payroll registers from the employer each month

8. Project Template • Demonstration of template draft

9. Lessons Learned: Grand Rapids Community College ERIC WILLIAMS

10. Sizing Project

11. Financing Options & Pay-As-You-Go

12. Due Diligence & Contract

13. Administrative Processes

14. Packaging & Marketing SHARON MILLER

15. Marketing • New Customized Materials • Brochures & Forms • Relationship Building • Paradigm shift – explain it repeatedly • Schmoozing economic developers • Michigan Works • Company visits have increased tenfold in the last 60 days

16. Bundling Attraction Packets and Commitment Letters • True partnering with economic development • Joint proposals (sample) • Built on the staff investment chart from MEGA • The BSP Model – Oakland County Business Service Team • Creating work for the future…we’re going to be really busy in two year

17. Company Visits • New customized materials • Most common misunderstandings: • OJT is not an option • Only the new hires not the incumbents can be trained • Allowable training expenses: Equipment Purchases • Stick to the basics on a first visit and have the right people attend: Finance/HR/Training

18. Administrative Fee Components • New Customized Materials • Be prepared to explain it • Don’t forget the expense of creating the legislation • You can view us as a check book or a valued partner serving as your training department

19. Questions and Wrap-Up Dan Phelan, PhelanDanielJ@jccmi.edu Eric Williams, EWilliam@grcc.edu Sharon Miller, SEMILLER@oaklandcc.edu Adriana Nichols, anichols@mcca.org Treasury: Sue Martin, MartinSK@michigan.gov MEDC: Stefanie Ridenau,ridenours@michigan.org DELEG: Lauren Royston, RoystonL@michigan.gov