Grant Programs for Industry-Focused Job Training

1. Grant Programs for Industry-Focused Job Training Lauren Eyster, Urban Institute Demetra Nightingale, Johns Hopkins University June 2009

2. Topics Covered Background on federal government’s involvement in promoting industry-focused job training Major grant/demonstration programs funded by DOL Evaluations of the DOL grant programs Future directions and implications for industry-focused job training programs

3. Background Providing workers with employment and training 1960s & 1970s Manpower Development and Training Act 1962 Comprehensive Employment and Training Act 1973 Meeting employer demand1980s & 1990s Job Training Partnership Act 1982 Workforce Investment Act (WIA) 1998 Recent “re-balance” in Recovery Act and Obama Budget

4. Training Grants Expansion WIA: Dual customer focus—employers/industry PLUS workers Grant and demonstration programs, within WIA and special initiatives, to test innovative approaches. “Skills shortage” (SCANS and H1-B) and welfare reform (WtW) (Clinton) “Demand driven” sectoral approaches (BRG (Bush)

5. Recent Sectoral Training Grant Programs High-Growth Job Training Initiative (HGJTI)--Began in 2001 Community-Based Job Training Grants (CBJTG)--Began in 2005 Workforce Innovation in Regional Economic Development (WIRED)--Began in 2005 ARRA (Recovery Act) Grant Programs—Beginning in 2009

6. HGJTI or “High Growth” Grants Purposes: Capacity-building Job training for high growth, high demand sectors Scale: Over 160 grants since 2001 Broad range of grantees Sectoral Focus: Changed over 7 years of grant program based on industry needs

7. HGJTI Sectors • Health Care • Information Technology • Biotechnology • Geospatial Technology • Automotive • Retail • Advanced Mfg. • Construction • Transportation • Hospitality • Financial Services • Energy

8. CBJTG or “Community Based” Grants Purposes: Expand capacity of community colleges to train for high demand/high growth sectors Job training through strategic partnerships between business and training providers Sectoral Focus: Many of the same industries as High Growth but over half are in health care Scale: 211 grants awarded as of 12/2008 Grantees are community colleges or workforce investment agencies.

9. Recovery Act: General Overview Regarding Employment • Objectives of the Act • Job Creation–save and create jobs • Economic Recovery—promote and speed recovery • Fiscal relief for state and local governments • Economic relief for workers and families • Do above in ways that will also address major national needs (long-neglected)—education, infrastructure, health care • Structure of the Act • Tax Cuts and Credits—economic stimulus and alleviation of hardships • Infrastructure Projects—economic stimulus, fiscal relief, and investments in infrastructure • Budget supplements and grants programs—fiscal relief, economic stimulus through targeted spending

10. Recovery Act: Key E&T Provisions • WIA supplemental funding nationwide • Adult training ($500 million) • Youth services, including summer activities ($1.2 billion) • Dislocated worker services, including reserve grants ($200 million) • Competitive grants for high growth training ($750 million nationwide) • Green jobs sectors ($500 million) • Health and other sectors ($250 million) • ES/UI modernization ($400 million nationwide) • TAA Reauthorization/expansion TAA and adds grants programs: • Communities Grant program ($56.25 million nationwide, administered by the U.S. Department of Commerce) • Community College and Career Training Program ($90 million nationwide, administered by USDOL) • Sector Partnership Grants ($90 million nationwide, administered by USDOL) • SCEP expansion ($120 million nationwide) • Youthbuild expansion ($50 million nationwide)

11. Green Jobs Sectors? • Energy-efficient building, construction, and retrofits industries • Renewable electric power • Energy efficient and advanced drive train vehicle • Biofuels • Deconstruction and materials use • Energy efficiency assessment serving the residential, commercial, or industrial sectors • Manufacturers that produce sustainable products using environmentally sustainable processes and materials.

12. Evidence of Effectiveness or “Promise” of Industry-focused Training • San Jose CET • WtW grant projects • Welfare experiments • Skills certification (apprenticeship and industry) • Community college programs

13. Evaluations of DOL Grant Programs HGJTI Evaluation Document and examine the various models and projects that are operating Identify innovative features and potentially promising strategies Assess the implementation of capacity-building and job training projects and programs Analyze employment and earnings outcomes/impacts from job training projects—5 projects CBJTG Evaluation Similar but does not include the impact analysis

14. Findings to Date - HGJTI Implementation Challenges Difficulties recruiting training participants Lack of experience in federal grants management Turf issues Difficulties securing active cooperation of partner organizations vital to meeting project goals

15. Findings to Date – HGJTI (continued) Implementation Lessons Employers are important partners in implementing all aspects of an industry-driven project. New training technologies should be explored and used to provide better training delivery mechanisms. Instructors from industry are needed, but they can be difficult to retain. Projects need to be flexible to respond to changes in the external environment. Resource and cash contributions, especially from employers, are difficult to secure. Having hands-on training components is as important as classroom training.

16. Future Directions Potential innovations from the Recovery Act grant programs (Green Jobs, Health new jobs, TAA $$, summer youth) Challenges with the Recovery Act (spend and speed vs. innovation and effectiveness; recession context) ISIS tests of education/training/ industry focus Community college innovations (e.g., I-BEST, learning communities, pathways/Bridges) Need for evidence base