[Senate Hearing 111-1047]
[From the U.S. Government Publishing Office]
S. Hrg. 111-1047
A STRONGER WORKFORCE INVESTMENT SYSTEM FOR A STRONGER ECONOMY
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HEARING
OF THE
COMMITTEE ON HEALTH, EDUCATION,
LABOR, AND PENSIONS
UNITED STATES SENATE
ONE HUNDRED ELEVENTH CONGRESS
SECOND SESSION
ON
EXAMINING A STRONGER WORKFORCE INVESTMENT SYSTEM FOR A STRONGER ECONOMY
__________
FEBRUARY 24, 2010
__________
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COMMITTEE ON HEALTH, EDUCATION, LABOR, AND PENSIONS
TOM HARKIN, Iowa, Chairman
CHRISTOPHER J. DODD, Connecticut
BARBARA A. MIKULSKI, Maryland
JEFF BINGAMAN, New Mexico
PATTY MURRAY, Washington
JACK REED, Rhode Island
BERNARD SANDERS (I), Vermont
SHERROD BROWN, Ohio
ROBERT P. CASEY, JR., Pennsylvania
KAY R. HAGAN, North Carolina
JEFF MERKLEY, Oregon
AL FRANKEN, Minnesota
MICHAEL F. BENNET, Colorado
MICHAEL B. ENZI, Wyoming
JUDD GREGG, New Hampshire
LAMAR ALEXANDER, Tennessee
RICHARD BURR, North Carolina
JOHNNY ISAKSON, Georgia
JOHN McCAIN, Arizona
ORRIN G. HATCH, Utah
LISA MURKOWSKI, Alaska
TOM COBURN, M.D., Oklahoma
PAT ROBERTS, Kansas
Daniel Smith, Staff Director
Frank Macchiarola, Republican Staff Director and Chief Counsel
(ii)
C O N T E N T S
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STATEMENTS
WEDNESDAY, FEBRUARY 24, 2010
Page
Harkin, Hon. Tom, Chairman, Committee on Health, Education,
Labor, and Pensions, opening statement......................... 1
Carnevale, Anthony P., Research Professor and Director,
Georgetown University Center on Education and the Workforce,
Washington, DC................................................. 3
Prepared statement........................................... 4
Enzi, Hon. Michael B., a U.S. Senator from the State of Wyoming,
opening statement.............................................. 8
Casey, Hon. Robert P., Jr., a U.S. Senator from the State of
Pennsylvania................................................... 10
Carbone, Joseph M., President and CEO, The Workplace, Inc.,
Southwestern Connecticut's Workforce Development Board,
Bridgeport, CT................................................. 10
Prepared statement........................................... 13
Stalknecht, Paul, President and CEO, Air Conditioning Contractors
of America, Arlington, VA...................................... 16
Prepared statement........................................... 18
Feldman, Cheryl, Executive Director, District 1199C Training and
Upgrading Fund, Philadelphia, PA............................... 21
Prepared statement........................................... 22
Templin, Robert, Jr., President, Northern Virginia Community
College (NOVA), Annandale, VA.................................. 29
Prepared statement........................................... 30
Brown, Hon. Sherrod, a U.S. Senator from the State of Ohio....... 37
Prepared statement........................................... 39
Franken, Hon. Al, a U.S. Senator from the State of Minnesota..... 40
Reed, Hon. Jack, a U.S. Senator from the State of Rhode Island... 42
ADDITIONAL MATERIAL
Dodd, Hon. Christopher J., a U.S. Senator from the State of
Connecticut.................................................... 54
Murray, Hon. Patty, a U.S. Senator from the State of Washington,
prepared statement............................................. 54
Bennet, Hon. Michael F., a U.S. Senator from the State of
Colorado, prepared statement................................... 55
Hagan, Hon. Kay R., a U.S. Senator from the State of North
Carolina, prepared statement................................... 56
Response by Anthony Carnevale to questions of:
Senator Harkin............................................... 57
Senator Enzi................................................. 61
Senator Murray............................................... 62
Senator Reed................................................. 63
Senator Brown................................................ 63
Senator Hagan................................................ 63
Senator Bennet............................................... 64
(iii)
Response by Joseph M. Carbone to questions of:
Senator Harkin............................................... 65
Senator Enzi................................................. 66
Senator Murray............................................... 67
Senator Reed................................................. 69
Senator Hagan................................................ 69
Senator Bennet............................................... 70
Response by Paul Stalknecht to questions of:
Senator Harkin............................................... 71
Senator Enzi................................................. 72
Senator Murray............................................... 72
Senator Reed................................................. 72
Senator Brown................................................ 73
Senator Hagan................................................ 73
Senator Bennet............................................... 73
Response by Cheryl Feldman to questions of:
Senator Harkin............................................... 74
Senator Enzi................................................. 76
Senator Murray............................................... 77
Senator Reed................................................. 78
Senator Brown................................................ 78
Senator Hagan................................................ 81
Senator Bennet............................................... 82
Response by Robert Templin, Jr. to questions of:
Senator Harkin............................................... 83
Senator Enzi................................................. 86
Senator Mikulski............................................. 86
Senator Murray............................................... 87
Senator Reed................................................. 88
Senator Brown................................................ 89
Senator Hagan................................................ 90
Senator Bennet............................................... 91
A STRONGER WORKFORCE INVESTMENT SYSTEM FOR A STRONGER ECONOMY
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WEDNESDAY, FEBRUARY 24, 2010
U.S. Senate,
Committee on Health, Education, Labor, and Pensions,
Washington, DC.
The committee met, pursuant to notice, at 11:00 a.m. in
Room SD-430, Dirksen Senate Office Building, Hon. Tom Harkin,
chairman of the committee, presiding.
Present: Senators Harkin, Reed, Brown, Casey, Franken, and
Enzi.
Opening Statement of Senator Harkin
The Chairman. The Health, Education, Labor, and Pensions
Committee will come to order.
Today, we are starting a series of hearings on the
reauthorization of the Workforce Investment Act, which, by the
way, has not been reauthorized since 2003, and there have been
a lot of changes in our country, in the workforce, and in what
we need for future economic success in this country since that
point in time.
I apologize. We have two votes, as you know, and I assume
that others will be showing up here in due course. I apologize
at the beginning. I have a healthcare meeting that I have to
attend at 11 a.m., and the Senator from Pennsylvania, Senator
Casey, has graciously volunteered to take over the chair when I
have to leave, and I appreciate that very much.
Senator Enzi, I assume, will be here very shortly.
In his State of the Union address last month, President
Obama made clear his commitment to getting Americans back to
work. As he put it, job creation is ``our No. 1 focus for
2010.''
That is why we must act swiftly to ensure that American
workers have the education, skills training, and supports they
need to compete and thrive in a 21st century global job market,
and that is why we have convened this hearing today to examine
the future of the Workforce Investment Act, as we move toward
reauthorization of this important program.
I want to thank all of my colleagues on this committee,
especially our Ranking Member, Senator Enzi, and also Senators
Murray and Isakson, who, as chair and Ranking Member of the
Employment and Workplace Safety Subcommittee, have shown great
leadership over the past decade on issues relating to workforce
development. I appreciate their work and their partnership on
reauthorizing WIA, as we call it, the Workforce Investment Act.
I also want to thank their staffs, who continue to work
tirelessly and in a bipartisan fashion.
And I thank our witnesses for being here today.
Despite some success of the Recovery Act in jump-starting
some economic growth, the official national unemployment rate
remains high at just under 10 percent. In my State, it is about
7 percent.
In part, these harsh realities are the consequences of an
unusually deep recession, but they also reflect a lack of
training and education in large segments of our workforce.
Recent studies indicate that more than 40 percent of U.S.
workers do not have the basic skills to do their jobs. In an
era of massive layoffs and downsizing, it is more important
than ever that job seekers have access to the education and
training they need to shift careers and adjust to a changing
economy.
Developing and maintaining a highly trained and highly
educated workforce is paramount for our economic success. If
businesses are unable to find workers in this country who have
the education and training to fill the jobs of the 21st
century, they will be compelled to look abroad to remain
competitive, and our economy will suffer accordingly.
Today, we will hear from experts who are working to improve
and strengthen our Nation's workforce development system. I
read most of the summaries of your testimonies, last evening.
They are very good. I appreciate that.
All of your full statements will be made a part of the
record in their entirety, and I would hope that each of you
would summarize them so that we can get into a discussion with
you on that.
I look forward to hearing about ways to encourage
collaboration, shared accountability for the education and
employment needs of all Americans, especially to those with
barriers to employment. I am especially interested in what we
do to help people with disabilities get into the workplace.
I mentioned that we have about 10 percent unemployment in
this country. Now, it is higher among African-Americans, higher
among Hispanics, teens. That pales in comparison with the
unemployment statistics among people with disabilities. About
64 percent of people with disabilities who want to work, who
are capable of working, are unemployed--64 percent. That ought
to shock our conscience.
These are people who want to work--can work with a modicum
of support, with the help of the ADA and other things that we
have done--who can be employed. We need to find how we can
train them and get them equipped again to enter and advance in
the job market of the 21st century.
Again, I thank our expert witnesses for being here. I will
introduce each of you as we go along. I will leave the record
open at this point for Senator Enzi to make his opening
statement when he arrives, if he would care to do so.
First, we have Anthony P. Carnevale, a research professor
and director of the Georgetown University Center on Education
and the Workforce. Mr. Carnevale will discuss the importance of
the workforce investment system in supporting the education and
employment needs of job seekers, workers, and employers.
Joseph M. Carbone--it is Carbone?
Mr. Carbone. Yes.
The Chairman. President and chief executive officer of The
WorkPlace, Inc., of Connecticut. Mr. Carbone will describe his
work to integrate workforce investment services for individuals
with disabilities.
Mr. Paul Stalknecht, president and CEO of Air Conditioning
Contractors of America. Mr. Stalknecht is a business leader who
will describe his engagement with the workforce system as a
business owner.
Then we have Cheryl Feldman, executive director, District
1199C Training and Upgrading Fund at the Breslin Learning
Center in Pennsylvania. Ms. Feldman will describe the role that
labor can play in partnership with business to develop
education and employment programs that lead to good jobs.
And we have Robert Templin, president of the Northern
Virginia Community College, NOVA. Mr. Templin will discuss the
value of sector partnerships, those that align education and
employment training services to the employment needs of a
particular industry or employer, and the role that education
should play in supporting the workforce investment system.
I might just add, Mr. Templin, I met with some people from
the Iowa community colleges earlier this morning, and they were
talking about this bill and how community colleges can be
integrated into this whole system. I look forward to hearing
more about that, about how community colleges can be involved.
With that, I will recognize Mr. Carnevale, who, of course,
is no stranger to this committee and has been involved in job
training and workforce development issues for a number of
years.
Again, your testimony will be made part of the record. If
you summarize it--we will leave it at 5 minutes. If you need a
little more than that, don't worry about it.
STATEMENT OF ANTHONY P. CARNEVALE, RESEARCH PROFESSOR AND
DIRECTOR, GEORGETOWN UNIVERSITY CENTER ON EDUCATION AND THE
WORKFORCE, WASHINGTON, DC
Mr. Carnevale. One point I want to make early on is that I
think, and I think most people agree, we are in the early
phases of a recovery. I think, when all is said and done, the
National Bureau of Economic Research will say that the
recession officially ended in November or December of this past
year.
That doesn't mean that we are going to have a robust jobs
recovery. I think we all agree, who fool with these things,
that we are not talking about unemployment anywhere below 9.2
or 9.3 this year and that we have a slow, long, and what is
often called a jobless recovery. That is, the economy will
recover a long time before it starts creating the jobs we need.
It is the case, I think pretty clearly, that over the next
decade or so, given the size of the baby boom retirement
especially, that we will create something on the order of 47
million jobs, with about 14 million new jobs. The rest will be
jobs that we get because people retire.
The striking thing about those jobs is that a very
substantial share, about 64 percent, will require some kind of
post-secondary education or training. Not necessarily a college
degree, maybe a certificate or an industry-based certification
or also a B.A., and so on. The essential change in the American
labor market, especially since 1980, has been the increasing
demand for post-secondary level skill of various kinds.
In a sense, we are not set up to deal with this. We have a
Labor Department that deals with jobs, an Education Department
that deals with education, and we don't connect the two very
well. My bias is that the Obama budget provides us an
opportunity to begin doing that.
The President has requested $261 million set aside for
innovations that would link or, as his budget statement says,
break down the silos between the Education Department and Labor
Department. And I really do believe that in terms of helping
Americans quickly and effectively and not to mention cost
effectively, that linking education and education programs and
training programs with real jobs is the way that we are going
to have to start thinking about doing this, especially given
the fiscal austerity we face going forward.
I would argue for a couple of things. One is where we can
get it, and it is always scarce. We need to try and get
learning and earning programs, where employers and education
and training institutions, public and private, participate
together to provide learning that includes learning in a
classroom and learning on the job. Those are always hard to
come by.
The easier thing to do is to build compressed learning
programs. Instead of taking 2 years to get an A.A., programs
that march straight through and do it in 12 or 13 months max.
Or a certificate in 7 or 8 months, where you go to school
pretty much full-time if you can. If not, you go every Saturday
for 8 to 10 months with a lot of the frills and extra education
along the way cut out.
It is the only way that experienced workers and people who
are working, which is the vast majority of college students now
as well, can really move through these systems with any speed
and effectiveness. And finally, I think none of this will work
very well until we build information systems and counseling
that tell people where the jobs are, how much they will make,
that will make some sense of the education they get as they try
to move toward employment.
A couple final points. One is that we have moved tens of
millions of people through UI. That is the people who have
applied for unemployment insurance since the recession began.
Very few of them ever got talked to or got counseling or ran
into an information system that helped them figure out what
their prospects were. They were left untouched and feel
untouched, I think.
The second thing is that the information systems to do this
are available. We just had some difficulty because of the silos
in our governmental systems in hooking these things to
education and training programs.
Thank you, Mr. Chairman.
[The prepared statement of Dr. Carnevale follows:]
Prepared Statement of Anthony P. Carnevale
The mismatch between job growth and skill is a growing problem in
the American economy. Thus, our ability to align our huge investments
in post-secondary education and training programs funded by DOE with
job openings and labor market services funded by DOL has become
crucial. This mismatch will only accelerate over the next 3 years as
the economy recovers and moves back toward a 5 percent non-inflationary
rate of unemployment. The Obama administration has given us a strong
start in aligning DOL and DOE programs by asking for a set aside of
$261 million ``breaking down program silos'' between DOE and DOL by
creating ``Workforce Innovation Partnerships.''
Our own projections at The Georgetown Center on Education and the
Workforce (The Center) show a painfully slow but robust recovery. We
aren't likely to recover our pre-recession job levels for another 24
months. And it will be 36 more months before we achieve an unemployment
rate approaching 5 percent and create enough jobs to employ the new job
seekers who came into the labor market since December 2007 when this
recession began.
We are back from the brink of economic collapse and I strongly
suspect that National Bureau of Economic Research will eventually
decide--retrospectively--that this recession ended sometime between
November of last year and March of this year. 2010 should end with net
positive job growth. The recession may be over in this technical sense
but it is far from over in labor markets. Our own projections at The
Center find that we won't recover the 8 million-plus jobs we've lost
until 2012. It may take us until 2015 to get back to the jobs we lost
and add enough new jobs to employ the newly minted entrants job seekers
who have come into the workforce since the recession began.
Jobs that require at least some post-secondary education will lead
the recovery. The future of job growth in the United States is one in
which more and more workers will require post-secondary education or
training. Between 2008 and 2018, the economy will create 47 million job
openings--consisting of 14 million net new jobs and 33 million
replacement jobs, those necessary to replace workers who retire, become
disabled or die (see Figure 2). Nearly two-thirds of these jobs_about
64 percent_will require workers who have at least some college
education or better. Some 34 percent will require at least a Bachelor's
degree, while 30 percent will require some college or a 2-year
Associate's degree. Only 36 percent of those 47 million jobs will
require workers with only a high school diploma or less.
As the recovery proceeds slowly over the next 3 years there will be
a growing mismatch between job openings and growing post-secondary
education and training requirements. Our success in helping our fellow
Americans in adapting to these new labor market realities will depend
more and more on our ability to break down the silos between our post-
secondary education and training programs, job openings and career
pathways.
If we fail, many existing and new workers will be left behind as
the wage structure continues to take the shape of an hour-glass with
the post-secondary educated and trained workers concentrating at the
top and the workers with high school or less falling towards the
bottom.
Our projections show that between now and 2018 the economy will
create 30 million jobs that will require at least some college or
better but if current trends continue:
We will fall short of meeting the demand by at least
3 million college-educated Americans.
A growing share of Americans will be left behind
with no access to the middle class as industry and occupational
growth as well as wage advantages shifts away from jobs that
require only high school or less and towards industries and
occupations that require at least some post-secondary education
or training.
If the past is any guide this shortfall will raise
the wages of post-secondary haves vs. post-secondary have-nots
as the recovery picks up momentum.
Technology is automating repetitive tasks and activities in jobs.
As a result, more and more jobs tasks and activities left to people at
work are non-repetitive. Sometimes these tasks and activities require
high school or less, like working at a fast food outlet or digging a
ditch. Other times, in professional, managerial and technical jobs,
these non-repetitive tasks require high levels of knowledge, skills and
developed abilities.
The non-repetitive tasks in professional, managerial and technical
jobs tend to require post-secondary levels of knowledge, skills and
developed abilities. These educated workers have been in increasing
demand since the mid-1980s so their wages are much higher than people
who perform non-repetitive tasks in low-wage jobs. As a result, the
wages of post-secondary educated workers have been rising relative to
workers with high school or less (the rise faltering briefly in 2001-
2002 and of course during the recessions) ever since the mid-1980s.
The industries with the highest concentrations of post-secondary
educated workers are growing the fastest leaving workers with high
school or less stranded in sometimes large, but slow growing low-wage
industries. For many workers these low-wage jobs should be transitional
but are not because of education barriers to mobility.
The top tier of employers with post-secondary concentrations
includes a cluster of fast-growing services industries. These each have
workforces dominated--75 percent to 90 percent--by workers with at
least some post-secondary education or training. These include:
Information Services;
Professional and Business Services;
Financial Services;
Private Education and Training Services;
Healthcare Services; and
Government and Public Education Services.
The middle tier of post-secondary concentration includes
Construction and a set of old line services industries where the share
of workers with higher education hovers around 50 percent. These
include:
Construction;
Transportation and Utilities Services;
Wholesale and Retail Trade Services;
Leisure and Hospitality Services; and
Personal Services.
The bottom tier includes mostly goods production in Manufacturing
and Natural Resources, where the share of post-secondary workers ranges
between 30 percent and 40 percent of industry workforces.
Demand for post-secondary education is tied more closely to
occupations than industries. With the exception of healthcare support
occupations, occupations with the fastest growth have the highest share
of post-secondary education.
Occupational clusters with the most intensive concentrations of
post-secondary workers include:
Science, Technology, Engineering, Mathematics and
Social Science (STEM), 93 percent;
Education and Training Occupations, 93 percent;
Healthcare Practitioners and Technicians, 92
percent;
Community Services, 89 percent; and
Managerial and Professional Office occupations, 83
percent.
Those five clusters represent more than 20 percent of total
occupational employment and 45 percent of all jobs for post-secondary
workers.
A second tier of post-secondary intensity includes two occupational
clusters where more than half of the incumbent workers have at least
some college education or better. These are:
Sales and Office Support, 60 percent; and
Healthcare Support occupations, 52 percent.
A third tier of occupations consists of two clusters where less
than half of the workers have at least some college education or
better, including:
Food and Personal Services, 41 percent; and
Blue Collar occupations, 34 percent.
WIA and the Employment Services still provide irreplaceable income
support and labor market services that connect education and training
to real jobs, but the core human capital development function in
workforce development has shifted to DOE \1\ (1) making access to post-
secondary education and training a crucial programmatic element in
employment policy and (2) making employability a crucial performance
standard for secondary and post-secondary education.
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\1\ This shift has been reflected in appropriations in the case in
the United States since the 1980-1981 recession. In the 1980-1981
recession, the intuitive programmatic response to the jobs problem
heavily favored employment and short term training policy over
education policy. The programmatic centerpiece that grew out of the
Carter stimulus in response to the 1980-1981 recession was the
Comprehensive Employment and Training Act (CETA). The core programmatic
mission in response to the jobs problem was led by the Employment and
Training Administration (ETA) in the U.S. Department of Labor.
``Employment and training policy'' peaked in the Carter years.
CETA and its progeny, The Job Training Partnership Act (JTPA) and
the current Workforce Investment Act (WIA) have waned ever since 1979.
If WIA, the current version of CETA, were to be funded at the same
levels in the last Carter budget, it would be funded at almost $25
billion. WIA the current version of CETA is funded somewhere between $3
and $4 billion.
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My own view is that the committee should focus on breaking down the
silos between the U.S. Employment Services, the One-Stops and the
Nations' education, training and retraining providers, especially in
secondary and post-secondary education and training. Breaking down the
silos between our Department of Labor (DOL) and Department of Education
(DOE) programs is crucial to both successful workforce development and
successful secondary and post-secondary education policies.
Both the Labor and Education Departments have a role in building a
modern workforce development system. The Employment and Training
Administration (ETA) of the U.S. Department of Labor provides critical
employment services and a real world connection to real jobs in real
labor markets. Post-Secondary education, especially community colleges,
have become the crucial education and training provider for workforce
development and retraining. Making the connection between the WIA on
one side of the mall and post-secondary education on the other is the
crucial element in the development of an effective workforce
development and retraining system.
The Obama administration has given us a place to start. In its DOL
budget request for fiscal year 2011 the Administration is asking for a
setaside of $261 million to create Workforce Innovation Partnership
between DOE and DOL for ``breaking down program silos'' including a 5
percent setaside for ``learn and earn programs.''
President Obama's new budget proposal is the first on record that
explicitly recognizes the need to integrate WIA and USDOE programs.
It's Department of Labor Budget request proposes:
`` (A) Workforce Innovation Partnership with the Department
of Education and establishes two innovation funds that will
support and test promising approaches to job training as well
as encourage States and localities to work across programmatic
silos to improve services.''
We can best use the $261 million requested in President Obama's
2011 Budget for ``breaking down program silos'' between DOL and DOE for
funding demonstration projects that develop existing best practices
such as:
Highly structured ``learn and earn programs'' like
apprenticeship and on-the-job training,'' as requested by the
President;
Compressed occupational training programs that
integrate basic skills preparation with fast and intensive
occupational training leading to post-secondary certificates
with previously demonstrated labor market value;
Job and skill counseling for unemployed and
underemployed experienced workers and working students tied to
state-of-the-art information on earnings trajectories and
career pathways;
Accountability systems for maximizing the labor
market value of post-secondary education and training programs
by tying post-secondary transcript data funded under the ARRA
with employer wage records data currently housed in the U.S.
Employment Services.
And for statewide and nationwide development of on-line job
search systems (Job Exchanges) tied to (Learning Exchanges)
that match job openings and career pathways to available
courses offered by post-secondary institutions as well as on-
line courseware.
The Chairman. Thank you, Mr. Carnevale. I will follow up
later about the role of community colleges, too, in that
education.
I yield now to our Ranking Member, Senator Enzi, who has
been a great leader in this area for many, many years.
Opening Statement of Senator Enzi
Senator Enzi. Thank you, Mr. Chairman.
I apologize for being late. I want to thank you for holding
the hearing on this important issue.
The Senate has done a good job on this twice before. We
passed it unanimously through the Senate. I am glad that we are
working off of that bill and working to get something done. I
suspect, and from what I have read in the statements, that we
are probably in agreement with everybody.
I appreciate your comments about the community college
because they are an important part of education and workforce
development to the recovery of our economy. This hearing is
also important because we are really talking about jobs. While
we need to create more jobs, that isn't enough. We need to
create a workforce that has the skills to fill those jobs.
The facts are that 8 in 10 jobs require some skilled post-
secondary credential. Yet more than 12 million adults in the
labor force today don't have a high school credential. More
than 18 million adults between the ages of 18 and 64 have not
graduated from high school and, therefore, do not qualify for
most of the jobs in the current economy. Over 51 million adults
in the same age range have no college education and are in low-
wage jobs.
Additionally, occupations that usually require a post-
secondary degree are expected to account for nearly half of all
new jobs from 2008 to 2018 and a third of all total job
openings. Workers without skills won't be able to take
advantage of new job opportunities. Any gains in employment
will be short-lived, and employers will be unable to find the
skilled workforce they need to grow and compete.
The jobs that will be created when our economy picks up
will be middle skill jobs that require education and training
beyond the high school level. Workers have to be ready to fill
these jobs by quickly acquiring new skills and having ongoing
access to quality education and skills training so they can
turn those jobs into careers.
According to a recent Business Roundtable report, 60
percent of businesses are experiencing difficulty in finding
qualified applicants for current job openings. This is
occurring despite our high unemployment rates. Business depends
on having workers with the necessary skills to perform jobs
safely and effectively.
Our economy depends on business to expand and create jobs--
which cannot happen if skilled workers are not available to
fill those jobs. What we are discussing today is a way to help
solve this problem and not only put people back to work, but
help them keep their jobs and advance in their jobs.
It has been over 10 years since WIA was first enacted, and
now, more than ever, we need to modernize and strengthen the
system, building on what has worked. America's workers and
employers need to be confident that the workforce development
system will provide the skills that are needed to keep jobs in
America and keep us competitive in the 21st century economy.
With an unemployment rate of almost 10 percent and a
widening skills gap for our students and workers, we need to
have in place a workforce development system that will meet the
challenges of the global economy and the 21st century
workplace. We need to help workers secure the skills they need
for the jobs being created as our economy comes out of the
economic downturn, and we need to make sure that employers have
skilled workers in order to be competitive.
I am pleased that we will hear today from a panel of
witnesses who understand what a successful workforce
development system is. A strong education and workforce
development system is critical for our students and workers to
be prepared to meet the ever-escalating knowledge and skills of
the 21st century.
For this reason, I am committed to working with the
Administration and my Senate and House colleagues to put
together a bipartisan bill that reauthorizes, strengthens, and
modernizes WIA, a complete jobs bill. I would mention again
that it has been the House that we have had trouble getting
this through, but I have mentioned to Chairman Miller every
time that I see him that we need to get WIA done, and he is in
agreement. But we will have to get that last step done.
Thank you, Mr. Chairman.
The Chairman. Well, thank you very much, Senator Enzi.
Hopefully, we can get it done. We have got to get it done this
year. We have just got to. We are going to get it done.
Again, I apologize. I have to leave to go to a healthcare
meeting. Senator Casey has agreed to----
Senator Enzi. I understand. We are all working on the
healthcare problem.
[Laughter.]
We can get something done.
The Chairman. Thank you.
Statement of Senator Casey
Senator Casey [presiding]. Well, thank you very much.
Why don't we continue with the witnesses' statements?
Mr. Carbone.
STATEMENT OF JOSEPH M. CARBONE, PRESIDENT AND CEO, THE
WORKPLACE, INC., SOUTHWESTERN CONNECTICUT'S WORKFORCE
DEVELOPMENT BOARD, BRIDGEPORT, CT
Mr. Carbone. OK. Thank you very, very much, Senator, and
thank you for inviting me.
I am Joe Carbone. I am president and CEO for The Workplace,
Inc. We act as the WIB for southwestern Connecticut.
In some respects, Congress has been looking at the
reauthorization issue for a good number of years, and I think
that it has worked to our advantage because we now have a
chance to evaluate our system from the perspective of how it
has operated during times of real good economy and exactly how
it would operate in a very, very bad economy, the recession.
I think that the experience--and I speak for my region, and
I have been there for 14 years--is such that I can feel that
the system is certainly fundamentally sound, but it is not
perfect. There are certain elements to this system that I think
are worth preserving and, I think, have enabled the American
workforce system, under the Workforce Investment Act, to play a
critical role in advancing careers for people and meeting the
needs for businesses.
Part of the act was to create this hub in the system that
we call the One-Stop, and I think experience in the last 10,
11, 12 years is such that the One-Stops are natural kinds of
magnets for people who need our assistance and businesses who
need our help as well. Workforce investment boards can be a
neutral broker. When you put together a collaboration of many
different kinds of partners, some of which actually compete
with one another, it is important to have an agent of fairness
at the very top of that system. I think that has worked well.
They are business-led. A majority of the members of the
board are from business, and in many cases, they serve not just
as members of the board, but to help to kind of alert boards to
trends and things that are happening with respect to
businesses' needs that are very, very important.
The partner base of any One-Stop system, as I mentioned
before, is extremely diverse, and you do not just have the
required partners in your system, but you--by the very nature
of the region, you can add partners that might be from the
faith-based area. Organized labor play a major role in programs
in my region.
It is important that the workforce board, workforce
investment board use part of this act as sort of the glue for
the system, keeping everybody together and keeping everyone's
time and efforts as really productive as possible.
Clearly, the system is showing that it is flexible. It can
respond in times of prosperity, and it can easily make the
shift if we have a period of a recession like we just
experienced.
The way the act was written, it brings the free-market
system into our business. I think that was a very, very
important feature. With respect to contracts that are offered
by workforce investment boards, they are all out there, and
they are bid in a competitive way. The training community,
where people get ITAs, individual training accounts, you have
choice for customer, and you have a system that workforce
boards can make richer and richer every day, taking, again, the
for-profit trainers, the not-for-profit, and the public.
Now, all of this happens as workforce investments boards
under this system get money that is the so-called ``formula
dollars.'' That opens the doors and creates the system on a
local level. Communities have choice. If communities wish to
simply administer the three lines of funding, they can do that.
If they wish to make workforce development an enterprise of
sort, they can do that.
With respect to the integration of services, there is value
added created every time that that happens. It is a very
important feature for all boards to pursue.
A couple of ideas with respect to disability services, and
I know this is important to Senator Harkin. We took the Office
of Vocational Rehabilitation Services, which is part of the
State, the Bureau for the Blind, and we actually created a
situation where the conferencing of cases are done with
caseworkers in our One-Stop system. So nothing is lost. Nothing
is missed. They can take advantage of every possible program
that is out there that can be helpful.
We have done the same with respect to youth programs, using
business to create interns, using foundations to help us create
Web sites and other mechanisms that can help to advance the
interest of young people. We have done the same with respect to
veterans, involving institutions that offer them residential
places to stay, services of our State Department of Labor and
other entities that can work with the partnership at the One-
Stop level.
I have seven ideas of ways in which I think this committee
and the reauthorization process can make the workforce
investment boards at the ground level better. If they are
better at the ground level, it is better services to everybody.
Provide incentives for WIBs to think and operate in a
regional way.
Provide incentives for WIBs to leverage the formula dollars
to grow the business. Formula dollars alone do not allow
imagination or innovation in the system. It is important that
they think ``grow the business'' all the time.
Provide incentives for WIBs to create real value added
through the integration of services and partners. Most times,
that doesn't happen, and it doesn't simply happen because it is
mentioned in the act. The WIBs must earn the respect of
everybody to make it happen.
Provide incentives to States to explore a data-driven
system to determine workforce investment districts, the
catchment districts. There is a science to good districts that
contribute to an exciting workforce system, and it is important
that that happened.
There ought to be incentives provided so that States and
local areas increase the number of ITAs, that is the fruit of
our labor, one of the most important things that we do every
single year.
I was asked to give a couple of examples of where this kind
of ``grow the business'' mentality has helped us in our region.
This approach in my region, southwestern Connecticut, 36
percent of my budget is formula dollars, and 64 percent is
nonformula dollars. You can do this best if you are a 501(c)(3)
and not part of Government, but it means that you can actively
compete for Federal, State, and other competitive grants. You
can solicit contributions that are basically philanthropic in
nature from foundations.
With respect to competitive grants--and we have won many in
disability services, in veterans services, in the green sector,
and many others--they total about $50 million in the last
several years for us. With respect to ITAs, we have raised over
$4 million from the private sector, and that has enabled us to
grant 1,700 more people opportunities to get trained.
I can go on, but let me just make one last point. There are
two creative things that I think are important to this
committee. With respect to our summer programs, we had over 700
youth employed. We made a conscious choice to dedicate a
quarter of the jobs to kids with certifiable disabilities.
We had 25 percent of them. They worked for businesses. We
had contracts with 80 for-profit businesses. They had
meaningful experiences throughout the summer. A good workforce
board will have the contacts with businesses to make that
happen.
In addition to that, we created a mortgage crisis job
training program, which links the job training system with the
foreclosure problems in our State. We are doing it for the
whole State of Connecticut. We are at the table when families
are facing foreclosure and need to grow earnings. There is a
chart in the information that I filed that shows the value of
education with respect to growing wages.
All of that is very important. That has been our
experience. I think it is a choice between whether you are
simply administering the programs of the Workforce Investment
Act or whether you grow your business and make it an exciting
place to be.
Thank you very much.
[The prepared statement of Mr. Carbone follows:]
The Workplace, Inc.,
Bridgeport, CT 06604,
February 24, 2010.
Senator Tom Harkin, Chairman,
Committee on Health, Education, Labor, and Pensions,
U.S. Senate,
Washington, DC 20510-6300.
Re: Testimony for ``A Stronger Workforce Investment System for a
Stronger Economy'' Hearing
Dear Senator Harkin and HELP Committee Members: Thank you for the
opportunity to provide input on this important topic. The American
workforce system has the potential to play a pivotal role in economic
recovery and regional competitiveness, as I hope my testimony will
illustrate.
My organization, The WorkPlace, Inc., is a private 501(c)(3) not-
for-profit which has served as southwestern Connecticut's Workforce
Investment Board (and predecessor Private Industry Council) for 26
years. Although there are some differences in how States set up their
systems, and differences in local market needs and priorities, our
experience is broadly representative. Like other WIB's, we are guided
by a Board of Directors representing business, labor, and other WIA-
mandated partners and key stakeholders.
Thank you very much for the opportunity to share these thoughts
with you.
Joseph M. Carbone,
President and Chief Executive Officer, The WorkPlace, Inc.
______
Prepared Statement of Joseph M. Carbone
``Moving Beyond the Formula''
1. the critical role the workforce investment system plays in
addressing the employment, education, and skill needs of its dual
customers--workers, job seekers and employers
The system is fundamentally sound but imperfect.
It has responded to the challenge of a recession far
beyond what was imagined by the makers of the Workforce Investment Act
(WIA).
The Act enables WIBs to play a critical role during times
of recession as well as prosperity.
One-Stops are the hub of the system; they act as
natural magnets for unemployed, underemployed, and employed
individuals, as well as businesses needing workers.
Workforce Investment Boards (WIB's) can be neutral
brokers, which is a necessary factor in bringing together many
diverse and competing partners.
WIBs are business-led, and they become the natural
place for businesses to turn to when they need workers.
WIBs connect partners; the Act identifies the
required partners and suggests others as well. However, it
takes WIBs with credibility to keep the partnership together
and make it productive.
WIBs are flexible and able to change as economic
conditions dictate; for example less training and more
education in a deep & prolonged downturn.
The Workforce Investment Act enables WIBs to lead a
free-market system of job training. As a regional planning
entity and not a competitor for training business, they can
select from proposals and programs from for-profit, not-for-
profit, and government providers. The customer and taxpayer
interest can come first.
Formula funding provides the seeds for the local
system, as well as program support.
WIB's received ARRA/stimulus investments under
similar rules to the formula funds, which enabled the system to
adjust to the new requirements brought about by high
unemployment and many new customers needing service.
The Workforce Investment Act offers local communities
a choice--their WIB can be the administrator of the three pools
of funding under the formula system, or they can choose to do
that PLUS a far more enterprising approach.
2. new and innovative practices used to better integrate services to
more effectively meet the needs of workers and employers, including
barriers to such practices
Some WIBs and One-Stops are finding creative ways to work with
multiple partners to better integrate services. Here are a few examples
from our experience in Connecticut:
Older Workers have been fully integrated into the One-Stop
system. By using SCSEP (Senior Community Service Employment Program) as
a true training model, we have been able to provide skills upgrades and
job placements to unemployed workers over age 55. We leverage and
integrate the following:
WIA Core Services (job search, computer workshops,
professional development)
Community Colleges (skills training certificates)
Local Government (serve as host agencies)
Business (Adecco and other placement agencies have
signed on to place older workers in skill-specific permanent
placements. GoliathJobs.com has developed a Web site
specifically to connect older workers with job openings.)
People With Disabilities: The Voc-Rehab agencies (e.g.
Bureau of Rehabilitative Services and Bureau of Education Services for
the Blind) are on-site in our Bridgeport One-Stop once per week to do
case conferencing with One-Stop staff. In addition, we utilize our PWI
(Projects With Industry grant) funding to provide placement, working
closely with local employers.
Youth: targeted youth programs have helped to provide more
services to at-risk youth. With private funding (JPMorgan Chase and
others) we have established the following:
A youth Web site, designed by Bridgeport students,
whose content includes job training, employment, and college
resources.
An allied health exploration program that provides
students the opportunity to understand careers in allied health
(beyond nursing assistant) and to work as interns during the
summer.
Summer internships in the arts, and with local
industrial employers (including Sikorsky and Derecktor
Shipyards).
In each of these programs, we work with the local
school system and the business partner to identify the
appropriate kids. This could not have happened with WIA dollars
due to the stringent income guidelines and the performance
outcomes.
Veterans: our program for Homeless Veterans built
partnerships with Homes for the Brave (a residential center for
homeless veterans), the VA Hospital, Department of Labor Veterans
Services, and many other local agencies. Veterans in the program
received intensive career services, training, job placement, and
permanent housing through a multi-level collaboration.
Community Resource Center: in response to the deep and
prolonged recession, we got funding from the local United Way to use
our One-Stop as a point of delivery for meeting basic needs. This new
Center awarded small grants for rental assistance, utilities, and
transportation. In addition, the Center partnered with local agencies
that provided assistance to people in need of food, shelter, housing,
day care, medical insurance, and legal services. This created a
stronger network of partners and expanded awareness of services
available in the One-Stop.
3. ways to promote innovation in the structure and delivery of
america's workforce system to increase the prosperity of america's
workers and employers, the economic growth of states and regions, and
the global competitiveness of the united states
Innovation is the tool WIBs need to use to engage partners in
endeavors of common interest, to solidify their role as system leader,
and to add a flavor of excitement and progressiveness to the local
system. Here are my 7 suggestions:
Provide incentives for WIBs to think and operate
regionally.
Provide incentives for WIBs to leverage their formula
allocation for growth.
Provide incentives for WIBs to create value-added through
the integration of partner services at the One-Stop level.
Provide incentives to States to explore a data-driven
approach to the creation of WIB catchment regions.
Provide incentives for WIBs and States to increase the
annual investment in ITAs (Individual Training Accounts), both in
number and in choice for customers.
Provide incentives for WIBs to study and determine through
analysis the special populations that will become central for their
work.
Provide incentives to keep the workforce investment system
in a mode of building capacity all the time.
4. what we have done to improve the knowledge and skills of the
nation's workforce . . . with family-sustaining wages . . .
particularly america's youth
Go Beyond Formula Funding
Reliance solely on formula dollars will inhibit ability to
become a regional leader and limit ability to serve special
populations.
With ``leveraging'' approach, (current budget without
ARRA), WorkPlace, Inc. non-formula now 64 percent (1.7 times
formula) (i.e. formula is 36 percent of total).
Process of leveraging helps to engage partners.
Particularly as a 501(c)(3) private not-for-profit, WIB
has ability to move beyond formula:
Actively compete for grants.
Solicit money from philanthropic corporate and
foundation sources.
Create fee-for-service.
Competitive grants have added to our services,
capabilities, and impact.
WIRED has enabled us to create partnership with New
York (CT-NY Talent for Growth).
High-Growth grants supported workforce development in
the Advanced Manufacturing and Finance/Insurance sectors.
Six grants (multiple sources) built our Disability
Services Center in Bridgeport One-Stop, the most comprehensive
in the State, and linked to additional services.
Five grants in Veterans Services provided intensive
training and employment to Homeless and other Veterans.
Four grants for Brownfields Environmental Remediation
provided technical training and launched graduates into well-
paying jobs in promising careers.
Total of $50 million over 12 years.
Maximize use of ITA's (Individual Training Accounts)
Best path to family-sustaining wages is improving skills &
knowledge of workers (see ``Education Pays'' chart from BLS).
We make ``stretch'' commitment to ITA's every year
through the budget process.
We created privately funded ``WorkPlace
Scholarships'' which have provided training opportunities for
more than 1,700 people ($4 million over the past 13 years).
Use a ``grow-the-business'' model to deliver better services. Here are
some of the things we've done at The WorkPlace in line with
this model:
Disability Services Center in One-Stop (``EveryOne
Works'')
Started with competitive grant; when it ended we
chose to use WIA $$ to continue staffing. Other grants and
State funds have expanded it over time.
Voc-Rehab partners are engaged (BRS, BESB); we have a
common interest in helping people with disabilities get jobs.
Summer Youth 2009 (ARRA funding)
We placed over 700 youth in summer employment,
including 24 percent who had certified disabilities.
Worked with more than 140 employers (80 private);
indemnified them. Our ``capacity'' helps in having contacts
with businesses to place that many in summer jobs.
Linked regular WIA-funded youth to summer operations.
Mortgage Crisis Job Training Program
Created a new program in response to growing
foreclosures, connecting people to the workforce system to
prevent foreclosure and increase their earnings potential.
Utilized State funds, in conjunction with leveraging
WIA core services (e.g., financial literacy workshops).
WIRED (CT-NY Talent for Growth)
We have established cross-state collaborations among
training providers, community colleges, economic development,
business organizations, and community-based organizations, led
by WIBs.
This initiative has helped us to think from a
regional perspective.
summary
In summary, we are all dedicated to ensuring people who are
unemployed get all the services they need, and to serving people in
Special Populations. There's a lot of responsibility given to the local
delivery system, but WIBs don't carry a big stick--they must earn the
respect of their communities and partners. The capacity of WIB's is key
to a credible system.
What's needed is to make WIBs a robust enterprise, to grow the
business, and to broaden the partnerships. I ask you to look at the
local system and give them all the tools they need to make the impact
America needs.
Thank you very much for the opportunity to share these thoughts
with you.
Senator Casey. Thank you very much.
Mr. Stalknecht.
STATEMENT OF PAUL STALKNECHT, PRESIDENT AND CEO, AIR
CONDITIONING CONTRACTORS OF AMERICA, ARLINGTON, VA
Mr. Stalknecht. Good morning. My name is Paul Stalknecht,
and I am the president and chief executive officer of the Air
Conditioning Contractors of America. This morning, I will
summarize my submitted written testimony.
ACCA serves and represents the small businesses that
design, install, and maintain indoor heating, ventilation, air
conditioning, and refrigeration, HVACR, systems. Our corporate
membership of 4,000 includes more than 3,000 contracting
businesses in every State in the country.
I do not profess to be an expert on all the details of the
Workforce Investment Act. I can only speak to some concerns and
opinions of the industry I represent.
More than half of ACCA's members have fewer than 10
employees. Industry-wide, 60 percent of HVAC contracting firms
generate less than $1 million in annual revenue. Yet according
to the 2007 Economic Census, altogether we employ nearly
200,000 mechanics, installers, helpers, and related personnel,
and these workers have an average salary of approximately
$46,500 a year.
Our industry's ability to add skilled employees has not
kept up with our overall growth. The problem is going to get
worse for us as more building owners and homeowners, fueled by
Government incentives and mandates, seek to install new, more
energy-efficient heating and cooling systems.
So I ask you, why does an industry that offers good,
stable, financially attractive careers--American-made jobs,
created by American entrepreneurs, jobs that cannot be shipped
overseas--have such a hard time filling these jobs, especially
when 30 percent of high school students and 50 percent of
minority students still drop out? Something is not clicking.
As the committee considers the reauthorization of the
Workforce Investment Act and new directions for the Federal
Government's policy for the workforce investment system, allow
me to make a few recommendations and observations based on the
experiences of ACCA members across the Nation.
First, Congress needs to create Federal policies that
change the culture of job training and career counseling. The
HVAC industry should be an attractive and rewarding option for
those who do not seek a degree beyond secondary school. While
you need certain skill levels and a base educational foundation
to work in our industry, you do not need a 4-year college
degree to get started.
Unfortunately, young people and, to some extent, educators
look down on skilled trades that still offer tremendous
opportunity, job security, a comfortable lifestyle, and a
career path to entrepreneur-
ialism and business ownership. It seems to be a cultural
miscon-
nect.
Many business owners in the HVAC industry do not have a 4-
year college degree because they started out as a tradesman. As
they climbed the career ladder, they learned their business and
management skills as they progressed. In contrast, the college-
educated business owners who entered the HVAC industry needed
to learn their technical skills as they, too, went along. Two
different education paths to success, but our society seems to
only highlight the college route.
We have seen firsthand the disconnect in workforce
development. In our experiences, the limited resources of
schools and the perception about work in a ``blue collar''
field hampers the success of efforts in guiding students to the
skilled trades.
Second, on-the-job training must be part of any
apprenticeship program in order to be a success. Ours is a
technically skilled workforce, and we need to create career
paths and opportunities for students and workers. The HVAC
industry and other trades require structured education and
apprenticeship programs to ensure that our technicians are job-
site ready. You simply cannot walk off the street and repair a
heating and cooling system.
Community colleges, trade schools, and apprentice programs
graduate thousands of students a year, but these programs would
work more effectively if the Federal Government made money
available to support on-the-job training with local contractors
in the trade so trainees can round out their trade skills.
Third, Federal policies should be expanded to encourage and
support locally developed and accredited apprenticeship
programs that already exist. ACCA's National Capital Chapter in
the Washington, DC area oversees a successful apprenticeship
program in conjunction with Montgomery Community College and
area contractors to train students to be skilled HVAC
technicians.
This rigorous 4-year program requires 640 hours of class
instruction and 8,000 hours of on-the-job training with a
sponsoring employer. With a retention rate of 65 percent, well
above the national average of 43 percent, this program has been
a tremendous success, graduating some 337 students in the last
18 years.
One common complaint is the Federal and State bureaucracy
to start up and administer an apprenticeship program. What is
needed is a change in policy to streamline the process for
start-up programs and those already in existence. I would ask
you to please refer to my submitted comments for a more
thorough explanation of my recommendations and comments.
And finally, recognizing some changes need to be made in
the workforce investment system philosophically, ACCA and its
members support reauthorization of the Workforce Investment
Act. With that, I will conclude my comments and would be happy
to answer any questions you may have.
Again, thank you for the opportunity to testify before you
today.
[The prepared statement of Mr. Stalknecht follows:]
Prepared Statement of Paul Stalknecht
Good morning. My name is Paul Stalknecht and I am the president and
chief executive officer of the Air Conditioning Contractors of America.
ACCA is a national trade association with roots extending back to the
early part of the 20th century. We serve and represent the small
businesses that design, install and maintain indoor heating,
ventilation, air conditioning and refrigeration (HVACR) systems. Our
corporate membership of 4,000 includes more than 3,000 contracting
businesses in every State in the country.
I do not profess to be an expert on all the details of the
Workforce Investment Act. I can only speak to some concerns and
opinions of the industry I represent.
When I say ACCA represents small businesses, I mean really small
businesses. More than half of our members have fewer than 10 employees.
Industry-wide, 60 percent of HVACR contracting firms generate less than
$1 million in annual revenue.
Yet according to the 2007 Economic Census, altogether we employ
nearly 200,000 mechanics, installers, helpers and related personnel,
and these workers have an above average salary of $46,500 per employee.
But our industry's ability to add skilled employees has not kept up
with our overall growth. Between 2002 and 2007, the value of business
performed by HVACR contractors grew 35 percent, but total employees
grew only 2 percent.
In fact, prior to the current economic crisis and the fall of the
construction market, our industry was faced with a major crisis of its
own--a workforce crisis. There simply were not enough skilled workers
to fill all of the positions available.
The current economic and construction slowdown has eased up on the
pressure many contractors have been facing over the last decade. But
this is only a temporary stay--and certainly not one that we seek to
extend. As the economy improves, we will once again find ourselves with
more work than people. The problem is going to get worse for us as more
building owners and homeowners, fueled by government incentives and
mandates, seek to install new, more energy-efficient heating and
cooling systems.
According to the Bureau of Labor Statistics Office of Occupational
Statistics and Employment Projections, the need for HVACR mechanics and
installers will grow 28 percent between 2008 and 2018.
So I ask you, why does an industry that offers good, stable and
financially attractive careers--American-made jobs, created by American
entrepreneurs, jobs that cannot be shipped overseas--have such a hard
time filling those jobs? Especially when 30 percent of high school
students--50 percent of minority students--still drop out? Something is
not clicking.
The Federal Government provides funding and resources through the
Workforce Investment Act for programs that assist job seekers and
employers. Over the last 12 years, the Workforce Investment Act has
helped job seekers find the careers that interest them, direct them
toward the training they need to be competent in their chosen field so
they are attractive to employers, and ultimately connect them with a
job. A potential job seeker can find information about a rewarding
career path in the HVACR industry and other technical trades using a
local One-Stop Career Center or the Department of Labor's
www.careeronestop.org Web site.
While these programs are helping, ACCA finds that the demand for
employees in the technical fields is still not being met, especially
given the need for green jobs.
As the committee considers the reauthorization of the Workforce
Investment Act and new directions for the Federal Government's policy
for the workforce investment system, allow me to make a few
recommendations and observations based on the experiences of ACCA
members across the Nation.
First, Congress needs to create Federal policies that change the
``culture'' of job training and career counseling. The HVACR industry
should be an attractive and rewarding option for those who do not seek
a degree beyond secondary school. While you need certain skill levels
and a base educational foundation to work in the HVACR industry, you
don't need a 4-year college degree. In the last few decades, it seems
our society has denigrated the skilled trades in favor of 4-year
colleges. Government policy and cultural shifts have created a world
where young people ``look down'' on the skilled trades that still offer
tremendous opportunity, job security, a comfortable lifestyle, and a
career path to entrepreneurialism and business ownership.
According to the BLS, only 16.4 percent of workers employed as
HVACR technicians and installers between the ages of 25 and 44 hold an
associate's degree, bachelor's degree or higher. Overall, nearly 27
percent of workers between the ages of 25 and 44 employed in the HVACR
industry have attended some college without graduating.
Many business owners in the HVACR industry do not have a 4-year
college degree. They started out as tradesmen--some perhaps getting
their start through a Workforce Investment Act program (or one of its
predecessors). As they climbed the career ladder, they learned their
business and management skills on the fly. In contrast, the college
educated business owners who entered the HVACR industry needed to learn
their technical skills as they went along. Two different education
paths to success, but our society seems only to highlight the college
route.
There are students with no interest in a 4-year degree who are
being pushed to attend one anyway. They take on debt they don't want so
that they can get a job they don't want which often pays less than they
would have been making after 4 years of working in the HVACR industry.
And there are students so disillusioned by our educational system
that they drop out of it altogether. High school dropouts still make up
an alarming percentage of our children, nearly 30 percent. It does not
appear that we are doing all that we can, as a society, to help our
young people identify their strengths and the right career paths they
should take to exploit them.
Members of ACCA's Michigan chapter have first-hand experience with
this disconnect in workforce development. Some of our contractor
members in Michigan have taken a proactive approach by working with
teachers and guidance counselors, getting on curriculum planning
committees and school boards, and participating in job fairs. In their
experiences, the limited resources of schools and the perception about
work in a ``blue collar'' field hampered the success of their efforts.
This culture and attitude needs to change.
Second, on-the-job training must be part of any apprenticeship
program in order to be a success. Ours is a technically skilled
workforce and we need to create career paths and opportunities for
students and workers to gain entry into the good-paying green collar
jobs offered by the HVACR industry and other skilled trades. Work in
the HVACR industry requires structured education and apprenticeship
programs to ensure that our technicians are able to do the job and do
it right. You can't just walk in off the street and repair a heating or
cooling system, which is why on-the-job training must be a key
component to training.
Community colleges, trade schools, and apprenticeship programs
graduate students but in many cases they lack specific skills because
they didn't have on-the-job training. These programs would work more
effectively if the Federal Government made money available to support
on-the-job training with local contractors in the trade so trainees can
round out their skill sets.
Programs developed at the State and local levels through the
Workforce Investment Boards should emphasize on-the-job training as
part of any job training program. It boosts the confidence of the
employee and it helps establish a better educational foundation to
build one's career.
Third, Federal policies should be expanded to encourage and support
locally developed and accredited apprenticeship programs that already
exist. ACCA's National Capital Chapter in the Washington, DC area
oversees a successful apprenticeship program in conjunction with
Montgomery Community College and area contractors to train students to
be skilled HVACR technicians. This 4-year program requires 640 hours of
class instruction and 8,000 hours of on-the-job training with a
sponsoring employer. Class sizes range from 32 to 41 students, with a
retention rate of 65 percent--well above the national average of 43
percent for a similar program. Since 1992, the apprenticeship program
has graduated 337 students. Upon graduation, participants receive a
recognized certificate and earn credits toward an associate's degree.
And they are able to apply for their Journeyman's license without
taking the State exam.
One common complaint by program administrators is compliance with
Federal paper work and recordkeeping requirements for certification.
Apprenticeship program administrators must jump through many
bureaucratic hoops to gain approval from State and Federal agencies,
including the Department of Labor and the Veterans Administration.
What's needed is a change in policy to streamline the process for start
up programs and those already in existence.
Fourth, Congress should continue to support and expand the roles of
the Workforce Investment Boards across the country. Workforce
Investment Boards work best because they involve local business leaders
along with representatives from schools and trades. Unfortunately on
many boards, the 51 percent business majority is theoretical with many
meetings having few business attendees. Therefore, to ensure that
business engagement occurs at each meeting, we recommend that a quorum
of business people must be present. In addition, the composition of
these boards should be modified to reduce the number of federally
mandated partners while still ensuring the voices of all stakeholders
are heard. These business-majority boards should provide general
oversight of the local system including oversight of the One-Stop
Career Centers and provide a forum for coordination among various
agencies and organizations.
Finally, I urge you to consider assisting small businesses that
develop their own in-house training. Several ACCA member companies that
qualify as small businesses have created their own apprenticeship
programs with rigorous standards that are recognized by the Department
of Labor. These are especially critical in rural areas where trainees
may find limited options for training.
For example, ACCA member company Service Legends of Des Moines, IA,
developed an apprenticeship program approved by the Department of Labor
that trains employees from the ground up. Interest is so great that
Service Legends receives 120 applicants per month as job seekers aim to
join their team.
Improving our Nation's workforce investment system is a complicated
but necessary effort. Our economy needs a continuous supply of highly
skilled workers to expand. I know that high school guidance counselors
are overworked, underpaid, and often uninformed about the value of
skilled trade careers. Perhaps in larger high schools, or high schools
with an unusually high drop-out rate, at least one guidance counselor
should become proficient in technical trade opportunities and assigned
to only handle technical trades placements.
ACCA's member companies are the foot soldiers in the new movement
to install and service energy efficient infrastructure in American
homes and buildings. If our economy is to grow, employers will need a
steady stream of qualified applicants to replace employees lost to
attrition and fulfill the expected needs of the future.
With that I will conclude my comments and would be happy to answer
any questions you may have. Thank you again for this opportunity to
testify before you.
Senator Casey. Well, thank you very much.
Ms. Feldman, I was handed a note that said that you got 10
stitches in your forehead last night?
Ms. Feldman. Yes.
Senator Casey. Well, then----
Ms. Feldman. I would like to give a shout-out actually to
the emergency room team at George Washington University
Hospital. They did a great job.
[Laughter.]
Senator Casey. Well, you can take a half an hour for your
statement if you would like.
[Laughter.]
STATEMENT OF CHERYL FELDMAN, EXECUTIVE DIRECTOR, DISTRICT 1199C
TRAINING AND UPGRADING FUND, PHILADELPHIA, PA
Ms. Feldman. Thank you for inviting me today.
My name is Cheryl Feldman. I am director of District 1199C
Training and Upgrading Fund in your fair city of Philadelphia.
The fund is a labor-management partnership of 49 area
healthcare employers in Philadelphia and South Jersey and the
AFSCME-
affiliated National Union of Hospital and Health Care
Employees. Accompanying me today is the president of our union,
Henry Nicholas.
Senator Casey. You now have more time.
[Laughter.]
Ms. Feldman. I thank you for this opportunity.
I only have limited time. I only can tell you about a
portion of our work. My main point is that we are uniquely
situated within our industry, as a labor-management
partnership, to bring together public programs, private sector
firms, and private industry dollars to solve our healthcare
workforce challenges.
We use WIA title I funds to train workers, title II funds
to teach workers reading and writing and math for the
workplace, and TANF dollars to help low-income women get on a
career path. We work with local universities and community
colleges and local employers to help healthcare workers get
time off to attend specially designed credit-bearing programs
that lead to college degrees. We work with youth to interest
them in health careers and incumbent workers already in the
industry who are looking for new options for advancement.
The State and local WIA job training system and literacy
system are indispensable partners for us. Federal WIA policies
could make our balancing act much easier if they didn't create
the silos, the barriers against aligning adult basic ed with
technical training, with public assistance, with work supports,
with work release programs. It is a lot to manage.
Due to State budget cuts in Pennsylvania, our workforce
literacy program has been cut by 30 percent. We have 400 people
on a waiting list right now. If there weren't the silos, we
could blend our literacy and workforce programs together and
get those folks started in healthcare careers.
WIA could make a much greater investment in sector
strategies such as ours, much as our State has done through its
industry partnership initiatives. Ultimately, WIA needs to be
much better funded to help programs like ours grow and serve
the larger number of workers and employers seeking our
services.
Our labor-management fund offers a powerful solution to
Philadelphia's challenges because we simultaneously address the
skill needs of low-income workers and the talent needs of our
regional businesses. Our partnership brings together multiple
employers in the same industry to identify talent gaps. Then we
help prepare the low-skilled adults to fill these available,
mid-skilled positions, which are still available in healthcare.
This sector approach builds on the mutual interest that the
employers and the workers have and provides an excellent
example of the innovative ``industry partnership'' model
through our Pennsylvania Department of Labor and Industry.
Thanks to our State leadership, there are now more than 70
industry-led partnerships in Pennsylvania that are similar to
ours that engage 6,300 businesses and help to train more than
75,000 workers.
An example--Elizabeth Vasquez. At 19, she enrolled in our
TANF-funded nurse aide training program, and you spoke at her
graduation, Senator Casey. Upon completion, she obtained a
unionized nurse aide job.
Because her employer contributed 1.5 percent of gross
payroll through its collective bargaining agreement, Elizabeth
had access to the Training Fund's education benefits, and so
she went to practical nursing and tripled her wages. Now she is
completing a registered nursing program in three semesters as a
result of our LPN to RN articulation with the community
college.
Our Jobs to Careers Behavioral Health Program, working with
incumbent workers, we have done a little bit about what Tony
Carnevale said. We have embedded the training in the workplace
so that there is a combination of traditional classroom hours
and on-the-job learning assignments. Students get 21 college
credits for this work. It articulates directly into an
associate and then a bachelor's degree.
The program speaks for itself. We have had 100 percent of
the graduates receive wage increases, with promotions in some
cases. Many are now in college, and new employers are
implementing this innovative program.
By leveraging public and private funding, the fund's labor-
management partnership has helped over 100,000 workers in our
35 years. And we are not alone. Other labor-management
partnerships in healthcare and other industries are engaged in
equally compelling work.
I would like to emphasize that with long-term resources,
which is what we need, we can replicate innovative and
sustainable workforce initiatives that prepare adults and youth
with the skills to compete in the global economy.
I thank you so much for having me today.
[The prepared statement of Ms. Feldman follows:]
Prepared Statement of Cheryl Feldman
Chairman Harkin and honorable members of the committee, thank you
for inviting me to participate in today's hearing. My name is Cheryl
Feldman and I am Director of the District 1199C Training & Upgrading
Fund. The Fund is a labor management partnership of 49 Philadelphia
area and South Jersey healthcare employers and the AFSCME-affiliated
National Union of Hospital and Health Care Employees. I thank you for
the honor and the opportunity to share our experience in creating a
workforce strategy that integrates education and training with career
pathways linked to quality jobs.
With limited time, I can only tell you about a portion of the work
we do with a wide range of healthcare workers and employers. My written
testimony will go into more detail. But, my main point to be made today
is that we are uniquely situated within our industry, as a labor-
management partnership, to bring together a wide range of public
programs, private-sector firms, and private industry dollars to help
solve our city's healthcare workforce challenges. We use WIA title I
funds to train workers, WIA title II funds to teach workers reading,
writing, and math skills needed in the workplace, and TANF dollars to
help low-income women get on a career path. We work with local
universities and local employers to help healthcare workers get time
off to attend specially designed credit-bearing programs that lead to
college degrees. We work with youth to interest them in health careers,
and we work with incumbent workers already in the industry who are
looking for new options for advancement.
The State and local WIA title I job training system and title II
literacy system are indispensable partners. But Federal WIA policies
could make our balancing act much easier if they did not create
barriers against aligning adult basic education, technical training,
public assistance, work supports and work release for workers in our
industry. Due to State budget cuts in Pennsylvania, our workforce
literacy program has been cut by 30 percent resulting in a waiting list
of over 400 applicants wanting to come in our program. Without the
existing silos, we could potentially enroll some of those on the
waiting list in blended literacy-skills training programs and get them
started in healthcare careers.
WIA could make a much greater investment in sector strategies such
as ours, much as our State has already done through its Industry
Partnership program. And, ultimately, WIA needs to be much better
funded, to help programs like ours grow and serve the larger number of
workers and employers who are seeking our services.
Our Fund in 1974 began with 15 hospital service workers in a GED
class held around a folding table in the union hall. Today, we host a
fully-equipped learning center in the heart of downtown Philadelphia
and satellite locations in the region that educate 3,200 youth and
adult students annually. We have opened doors to career advancement and
prepared students to play a role in the healthcare workplace of the
future with GED, literacy, skills training, college preparatory and
degree programs. We also provide 18,000 Philadelphia area community
residents with a variety of services, including testing for healthcare
credentials, GED testing, VITA tax preparation, job placement services,
academic assessments, and career counseling.
Philadelphia is currently experiencing parallel workforce crises:
employers in the region lack a strong talent pipeline to fill critical
jobs, while an alarmingly high percentage of adults are in the labor
force only marginally or not at all. Indeed, 70 percent of jobs in our
city require basic literacy skills, but less than 50 percent of our
residents possess these minimum skills. Healthcare is no exception. Our
industry, comprising 15 percent of Philadelphia's economy, is showing
growth during the recession but the new jobs require literate, trained
workers.
Our Fund offers a powerful solution to Philadelphia's challenges by
simultaneously addressing the skill needs of low-income workers and the
talent needs of regional businesses. Our partnership brings together
multiple employers in the same industry to identify talent gaps. Then,
we help prepare low-skilled adults to fill these available, mid-skilled
positions. This sector approach builds on the mutual interest of
employers and workers, and provides an excellent example of the
innovative ``industry partnership'' model that the Pennsylvania
Department of Labor & Industry has launched statewide. Thanks to State
leadership, there are now more than 70 industry-led partnerships
similar to ours, engaging more than 6,300 businesses and helping to
train more than 75,000 workers.
In the 35 years since the Fund was created, this unique
collaboration of employers and labor has never once reached an impasse.
We have built a strong alliance that is able to assess the rapidly
evolving needs of today's healthcare workplace with labor market data
provided by the Pennsylvania Center for Health Careers and the State
workforce system. In response to the nursing shortage of the late
1990's, we leveraged H-1B funding with Training Fund and employer
dollars to train 1,700 nurses and allied health staff in partnership
with area schools. We called this initiative the New Faces Program,
encouraging non-traditional students, immigrants, and youth to take
advantage of the shortage to enter a healthcare career. As hospitals
move toward adoption of Electronic Health Records, we are engaged in
proactive discussions about how best to prepare frontline healthcare
and clerical workers to expand their technology skills.
The trajectory of Elizabeth Vasquez exemplifies how programs that
address employers' workforce needs also benefit individuals. At 19,
Elizabeth enrolled in our TANF funded Nurse Aide training program. Upon
completion, she obtained a unionized Nurse Aide job. Because her
employer contributed 1.5 percent of gross payroll through its
collective bargaining agreement, Elizabeth had access to the Training
Fund's educational benefits to train as a Practical Nurse, tripling her
hourly wages. Elizabeth is now completing a Registered Nursing Program
in three semesters as a result of Training Fund and State Industry
Partnership funding which helped create an LPN to RN Articulation
Program.
Our Jobs to Careers Program uses innovative best practices to
retool and advance incumbent workers along a career pathway. Job
competencies are embedded in a work-based curriculum that replaces
traditional classroom hours with on-the-job learning assignments. An
accelerated literacy component ensures academic success. Cohorts of
workers attend the program together on release time from their job,
receiving support from peers, supervisors, and a Career Coach. Twenty-
one college credits, articulating with Associate's and Bachelor's
Degrees, are awarded for completion of the technical training. The
outcomes speak for themselves. One hundred percent of the graduates
have received wage increases with promotions in some cases, many are
now college students, and new employers are implementing the program.
As a member of the Philadelphia Youth Council, I am delighted that
we are investing in our future healthcare workers by expanding youth
pipeline programs. Subsidized employment is making it possible for
healthcare employers to open their doors to young workers in
internships and supported work programs with opportunities to
transition into unsubsidized jobs. ARRA funding is providing the
opportunity to create innovative industry pipeline programs for in-
school youth and GED to college programs for out-of-school youth. By
allowing alternative eligibility criteria for WIA funding we will
ensure that even more disadvantaged youth can participate.
By leveraging public and private funding, the Fund's labor
management partnership has helped over 100,000 workers secure and
advance in careers with family sustaining wages. We are not alone.
Other labor management partnerships in healthcare and other industries
are engaged in equally compelling work. We can build greater capacity
with dedicated workforce and literacy funding for sector work as part
of the national workforce development system. With long-term resources,
we can replicate innovative and sustainable workforce initiatives that
prepare adults and youth with the skills to compete in the global
economy.
Thank you very much for the opportunity to speak today.
______
Attachment--District 1199C Training & Upgrading Fund: Helping Today's
Healthcare Workers Prepare for tomorrow's Workplace*
the history
The District 1199C Training & Upgrading Fund has played a critical
role in offering academic, career exposure and workforce development
opportunities to youth and adults in Philadelphia for 35 years.
Tomorrow's healthcare needs drive our training and education agenda.
Occupational projections from the Bureau of Labor Statistics indicate
that within the next decade, 45 percent of the jobs will require a
post-secondary credential compared with only 25 percent today. In
addition to our current offerings, we are preparing for future jobs
such as health information technology and preparing future workers by,
for example, strengthening the youth pipeline into entry level
healthcare careers.
---------------------------------------------------------------------------
* The District 1199C Training & Upgrading Fund is a Labor-
Management Partnership dedicated to providing access to healthcare
employment for current and future workers while also serving the
educational and training needs of our Delaware Valley healthcare
employers.
---------------------------------------------------------------------------
the highlights
Scope of Service: Providing Career Pathways in Healthcare
In fiscal year 2009, we served a total of 17,856 people. The Fund's
expansive offerings include programs in nursing, allied health,
behavioral health, computer technology, college prep and collegiate
partnerships programs. We provide a variety of services including
American Red Cross Nurse Aide testing, VITA tax preparation, job
placement services, academic assessment services and healthcare career
exposure workshops. The Fund offers a part-time practical nursing
program designed for working people. Half of the students of District
1199C Training & Upgrading Fund are members of the Training Fund and
half are community residents--dislocated and unemployed workers as well
as immigrants.
Employer Engagement: Meeting Employer Needs for a Qualified Workforce
We are the educational arm of our 49 employer partners. The Fund
has multi-employer sector initiatives including customized career
advancement training for entry-level workers, licensure and
certification review classes and skills-based classes that support the
delivery of quality care. Temple University Health Systems has co-
chaired the Fund's Board of Directors for 20 years.
Adult Academic Readiness Services: Accelerating Transition to Post-
Secondary Education
In fiscal year 2009, we provided educational services to 3,200
students. Our programs range from GED/Adult Diploma programs to
healthcare contextualized English, mathematics and ESL classes as well
as a variety of technical training programs resulting in an industry-
recognized credential that articulates with college credits and degree
programs. We provide blended preparatory and technical bridge curricula
that enable students to accelerate learning and successfully transition
into post-secondary.
Youth Pipeline Services: Preparing the Future Workforce
The Fund offers a variety of programs that serve close to 400 youth
annually. We have partnered with the School District of Philadelphia
and Philadelphia Academies for 15 years to host a Health Career Day
targeting 10th-12th graders, exposing them to healthcare careers, and
for the past 2 years we have sponsored Job Shadowing Day for high
school students. In partnership with the Philadelphia Youth Network, we
also offer the Summer Health Exploration Program, the GED to College
Program, the Nurse Aide Training for Out-of-School Youth Program and
the 21st Century Continuum Program for 11th and 12th graders at Lincoln
High School, a collaboration of the Philadelphia Academies Inc.,
Community College of Philadelphia, Children's Hospital of Philadelphia
and the Fund.
Career Pathways Counseling & Placement: Offering Supportive Services
The Fund provides comprehensive coaching to support students in
achieving their career advancement goals. A career counselor helps
individuals create an individual educational plan as well as help
individuals with resume development, interviewing skills, and job
placement.
Funding
In fiscal year 2009, the Fund leveraged $2.8 million. We were
awarded public and foundation grants from 16 organizations to enhance
programs and expand our services. Our funders include the National Fund
for Workforce Solutions, the U.S. Department of Labor, the Pennsylvania
Departments of Labor and Industry and of Education, the city of
Philadelphia, the Robert Wood Johnson Foundation, the Hitachi
Foundation, the Knight Foundation, the William Penn Foundation, the
Annie E. Casey Foundation and United Way of southeastern Pennsylvania.
the collaborations
Pennsylvania Center for Health Careers
Philadelphia Council for College and Career Success
Life Science Career Alliance
Philadelphia Academies Inc.
School District of Philadelphia's Perkins Advisory Council
Citywide Health and Life Sciences Advisory Council
Workforce Solutions Collaborative
Careerlink Philadelphia North Advisory Committee
National Network of Sector Partners
The National Skills Coalition
President's Economic Recovery Advisory Board Education &
Training Subcommittee Healthcare Workforce Meeting
Education Works
educational and career advancement programs in healthcare change lives
and improve patient care and prepare employees for tomorrow's workplace
In Healthcare Today, Every Employee Counts
Delivering top-quality healthcare while remaining financially sound
has never been easy. But today's healthcare providers face greater
challenges than ever before:
Severe shortages and high turnover of nurses, allied
health professionals and direct care workers;
Competition from new forms of healthcare delivery;
Constant demands to update technology and equipment; and
Steep cuts in governmental funding.
To survive and thrive, successful healthcare organizations must
find cost-effective ways to prepare employees for a more complex,
demanding workplace. At a time when providers must do more with less,
the skill level of every employee counts.
Education Works--for the Entire Organization
Employee educational and career advancement programs strengthen the
organization's ability to:
Prepare for changes that are constantly reshaping
healthcare practice and policy;
Maximize the knowledge and skills of those already on the
job;
Create life-changing opportunities, particularly for
workers in low-wage, low-skill positions;
Reduce the high cost of turnover by retaining skilled
workers; and
Attract workers trained to meet the needs of your
organization.
As employees advance, so does the entire organization. Workers gain
greater skill, job satisfaction, career advancement--and the ability to
deliver better quality patient care.
Providing ``Industry-Specific'' Training to Healthcare Providers
Because they are based on the challenges employees face every day,
``industry-specific'' educational programs achieve greater lasting
benefits for employers and employees than general academic programs. In
the Philadelphia region, the District 1199C Training & Upgrading Fund
is one of the leading providers of educational and training programs
specifically tailored to employees in the healthcare industry.
Opening Doors to Life-Changing Opportunities
Every year, nearly 5,000 employees enroll in training and
educational programs offered by the Training Fund at the Breslin
Learning Center and area schools of nursing and allied health. These
students are a vital asset to their employers and enjoy the benefits of
greater job satisfaction, higher wages and the opportunity to
contribute to the quality of care in their organization.
providing vital educational resources for the healthcare providers
in the philadelphia region
The Training Fund--Partnering With 54 Regional Healthcare and Human
Services Employers
Because most healthcare employers do not have the time or resources
to develop full-service educational programs of their own, a unique
collaboration was formed between District 1199C and healthcare
providers in southeastern Pennsylvania and southern New Jersey. Since
1974, this educational partnership has:
Improved patient care;
Helped thousands of employees move up the career ladder
while on the job;
Boosted employer recruitment and retention efforts;
Attracted new workers to the healthcare field; and
Enabled employers to build a more skilled, diverse
workforce.
The Training Fund is a jointly managed, non-profit trust of
District 1199C of the National Union of Hospital & Healthcare
Employees, AFSCME and 54 healthcare employers in the Philadelphia
region. The Fund serves more than 17,000 Delaware Valley residents
annually.
Providing Vital Resources to the Region's Healthcare Employers
The Training Fund helps regional healthcare providers gain access
to valuable expertise and resources through its network of governmental
agencies, labor and business organizations, grass-roots community-based
organizations, foundations, area colleges and universities, the School
District of Philadelphia and the William Penn School District in
Delaware County. These links enable the Training Fund to take a leading
role in shaping healthcare policy and practice, to collaborate on new
initiatives and to keep employers and workers current with changes in
the field.
The U.S. Department of Labor and the PA Department of Labor and
Industry have awarded the Training Fund millions of dollars in Federal
and State grants for nursing and allied health programs. The Training
Fund has been recognized as a national model for its innovative
programs in healthcare career advancement.
A One-Stop Resource for Health Career Training
from basic education to specialty training programs
At the Fund's spacious, well-equipped Center City Philadelphia
location, at satellite centers in the region or customized programs at
your worksite, the Training Fund offers a wide range of programs,
including:
Basic Academic Preparation
Basic education, literacy and English as a Second Language
(ESL) programs;
Tuition-free, self-paced adult high school diploma
program;
GED preparation;
Pre-college academic enrichment/preparation for higher
education;
Pre-nursing programs; and
IC3 Certification in Microsoft Word, Excel and Internet
computing.
Professional Programs in Healthcare and Human Services
Nurse Aide and Extended Nursing Duties;
Licensed Practical Nurse (LPN);
Funding for Associate, Bachelor, Registered Nurse, and
Allied Health degrees;
Behavioral Health College Program;
Child Development;
Allied Health Technical Programs; and
Health Information Technology.
Flexible, Part-Time Collegiate Programs Leading to Degrees
Articulation of the Training Fund's Practical Nursing
Program (LPN) with the Registered Nursing Program of Community College
of Philadelphia (Under development).
30-credit certificate and 60-credit Associate Degree
program in Behavioral Health offered at the Training Fund. This program
articulates with Philadelphia University's Behavioral Health and Human
Services bachelor's degree program.
Philadelphia University Prerequisite Courses for Nursing
and Allied Health. College-level credit prerequisites are now offered
at the Breslin Learning Center in collaboration with Philadelphia
University--in flexible evening, morning, and weekend formats.
Workforce Development and Employment Services
The Training Fund Placement Service works with more than 100
healthcare facilities to refer pre-screened, qualified job candidates,
including program graduates, new entrants to health-care and
experienced employees looking to advance in their field.
Customized Educational and Organizational Development Programs
Training Fund staff also work with employers to create customized
solutions for specific educational or training objectives, based on the
needs of the organization and skill levels of the employees. These have
included: specialty skills training to fulfill mandated insurance
regulations; pre-nursing/pre-allied health; effective communication
skills; multi-cultural and cross-cultural understanding; English as a
Second Language (ESL) and basic foundation skills in reading, writing
and mathematics; conflict management; mentoring training for frontline
direct care workers and job coach training for their supervisors.
helping healthcare workers advance up the career ladder
Helping Employees Pursue Their Education While on the Job
Juggling full-time jobs and family responsibilities can make it
challenging for many adults to re-enter the classroom. The Training
Fund helps ease the transition through a range of services:
confidential academic and vocational counseling, academic and career
interest assessments, and assistance with resume writing, interviewing
and job search. While in the program, participants receive mentoring
from Training Fund faculty and staff to encourage, motivate and guide
them toward their educational and career goals.
Flexible Scheduling Helps Everyone Succeed
To help insure the success of full-time employees attending
training programs, the Fund works with employers to offer release-time
programs, either on or off the clock. Working adults can choose from
among flexible, part-time programs, offered 7 days a week in two
shifts.
Offering Many Convenient Locations
Students may attend educational programs at:
The Training Fund's Thomas Breslin Learning Center in
downtown Philadelphia;
Our satellite location in Cherry Hill, NJ; and
Customized career ladder programs at the employer's
workplace.
Full Educational and Financial Benefits for Partnering Employers
Employers who contribute to the District 1199C Training Fund can
obtain the highest level of education and training benefits for their
employees. Government funding obtained by the Training Fund helps
employers leverage their training investment and expand opportunities
for member employees, who are eligible for three levels of educational
funding support:
Tuition reimbursement up to $5,000 per year for approved
courses, workshops, seminars and conferences at area colleges,
universities and vocational programs as well as programs by accrediting
organizations.
Full-time scholarships covering tuition up to $10,000 per
year for up to 2 years of study.
Free continuing education programs with flexible (day,
evening and weekend) schedules at the Breslin Learning Center and
satellite locations. Many classes are open to community members, as
well as union members.
Healthcare Training Programs Open to Community Members
Community members who wish to attend programs at the Training Fund,
or healthcare employees who are not covered by the educational benefit
may pursue educational programs at the Training Fund at a non-profit
tuition rate, or may be eligible for free training through a range of
government programs.
transforming philadelphia's healthcare workforce
Creating a Pipeline for New Healthcare Workers
As the healthcare industry copes with a severe shortage of
qualified workers, the Training Fund is helping employers by creating a
pipeline to new employees. By virtue of its credibility and well-
established reputation in the community, the Training Fund successfully
attracts incumbent workers, minorities, immigrants and young people
into the field of healthcare, and provides employers with greater
access to a more diverse, skilled workforce.
Preparing Youth for Careers in Healthcare
The Training Fund has partnered with the School District of
Philadelphia through its health-care academies and Citywide Health
Advisory Council, as well as with the Philadelphia Youth Network to
create high-quality secondary school curricula and work-based learning
opportunities for youth interested in careers in healthcare. The
Training Fund has led efforts to draw more in-school and out-of-school
youth to careers in the healthcare field and better prepare them to
pursue higher education and professional careers.
Designing Career Ladders for Other Settings and Industries
As healthcare delivery has changed, the Training Fund's educational
offerings have moved beyond hospitals to include long-term care
facilities, mental health and retardation programs, home care and
community-based agencies. In addition, the Training Fund develops
educational programs for other industries to enable workers to move up
the career ladder within their particular organization. The Fund works
with employers to integrate instructions in reading, writing, math, and
ESL with the specific work skills needed on the job. Examples include
transit workers, parking facility attendants and university dining
service employees.
For More Information:
The District 1199C Training & Upgrading Fund provides significant
employee benefits to member agencies. If you need more information
about the work of the Training Fund, please contact us at:
District 1199C Training & Upgrading Fund: 1319 Locust Street,
Philadelphia, PA 19107, (215) 735-555 (voice); (215) 735-7910
(fax).
Thomas Breslin Learning Center: 100 South Broad Street, 10th Floor,
Philadelphia, PA 19110, (215) 568-2220 (voice); (215) 563-4683
(fax).
District 1199C South Jersey Office: 401 Route 70 East, Cherry Hill, NJ
08034, (856) 428-8355 (voice); (856) 428-6705 (fax).
Web site: www.1199ctraining.org.
E-mail: [email protected].
Senator Casey. Thank you very much, Ms. Feldman.
Mr. Templin.
STATEMENT OF ROBERT TEMPLIN, JR., PRESIDENT, NORTHERN VIRGINIA
COMMUNITY COLLEGE (NOVA), ANNANDALE, VA
Mr. Templin. Mr. Chairman, members of the committee, thank
you very much for having me today.
My name is Bob Templin. I am the president of Northern
Virginia Community College, or what we call NOVA, and we have
72,000 students enrolled in post-secondary education, most
often leading to a credential that is valuable in the
workplace.
In addition, we train over 20,000 workers annually, and we
are one of the largest and most ethnically diverse institutions
of higher education in America. We are only 1 out of nearly
1,200 community colleges across the country, and we represent
44 percent of the Nation's undergraduate students that are
enrolled today. That is about 7 million students that are in
credit programs and another 5 million that are in the
workforce.
I am going to try to connect the dots of what we have been
talking about today, that as the economy begins to grow and
jobs are created, the jobs with the greatest livable wage, with
the greatest opportunity, are going to be middle-tier jobs that
require more education than high school, but not necessarily
the baccalaureate.
Under our current programs, often we are encouraged to
develop through community-based organizations job training
programs that lead to entry-level jobs, and that is great. That
is not sufficient. Low-wage earners who get entry-level jobs
without a post-secondary credential will be the first laid off
when the economy turns down or there is a change in technology.
We have to connect WIA-funded programs to encourage
individuals to continue their education to accomplish a post-
secondary degree. It needs to be an explicit component.
Now that post-secondary credential doesn't have to be a
college degree. It can be an industry certification. It can be
completion of apprenticeship. Too often we allow individuals to
stop at the very moment they begin to experience success. We
have to explicitly link and encourage innovation between
players in the WIA system and measure their performance and
accountability against results of their clients receiving post-
secondary credentials.
If we can do that linkage, we can pull people out of
poverty and into family-sustainable wage jobs. In my testimony,
I have given three examples of how that could be done. One of
them is a program that NOVA operates with a comprehensive
social service organization that helps families in poverty.
Most of them are immigrant.
That program prepares individuals to do entry-level office
work using Microsoft Office software, to serve as receptionists
and administrative assistants in medical offices. When they
complete that program, because of the linkage that it has with
NOVA, they have completed almost one semester of college
credit.
Their employers agree when they hire them to encourage them
to continue their education toward an associate degree, and
they help reimburse tuition for that expense. As a consequence,
almost half of the graduates from the community-based program
receive an entry-level job and then continue their education
toward a credential.
They have a future. They will have a stackable, portable
credential that, in the event that they are laid off, they will
have a credential that they can go to another employer and
receive a job.
A second example is in an area for youngsters who have
graduated from high school, but have no plan. Perhaps no one in
their family ever went to college. They don't know what careers
are available and what to do. Northern Virginia Community
College created a link with a community-based organization
called Year Up.
That Year Up provides classroom instruction for about 6
months with a paid wage and then an apprenticeship. The
students don't think they are going to college, but when they
complete that program, they have skills for an entry-level job
and 18 college credits through Northern Virginia Community
College and an employer that insists that they continue their
education toward an associate degree.
Once again, a person moving at the IT help desk level has a
wage but, without a credential, has no chance of progressing.
With an associate degree, they have a future, a portable
degree, and the opportunity to continue their education at a
university.
A third example fits right into the disabled community that
the chairman spoke about earlier. Imagine for a moment,
Goodwill Industries International has 180 regional offices
across the United States helping the disabled to get entry-
level skills, and that is wonderful. What would happen is--
those 180 regional offices connected with America's 1,200
community colleges and created the option for college credit
for them to get the skills, get the credit, and then continue
their education and to have a career opportunity.
WIA reauthorization needs to encourage collaboration across
sectors and put a premium on the achievement of post-secondary
market-valued credentials.
Thank you very much, Mr. Chairman.
[The prepared statement of Mr. Templin follows:]
Prepared Statement of Robert G. Templin, Jr.*
Chairman Harkin, Ranking Member Enzi, and distinguished members of
the committee, thank you for the opportunity to address you today. My
name is Bob Templin and I am the president of Northern Virginia
Community College, or ``NOVA'' as our students call us. NOVA is an open
door, public community college offering credit programs through the
associate degree level, as well as workforce development programs.
Serving over 72,000 students annually in degree credit programs and
20,000 in workforce development courses, NOVA is one of the largest and
most ethnically diverse institutions of higher education in the United
States.
---------------------------------------------------------------------------
* Note: Portions of this testimony are excerpts or adaptations of
the American Association of Community College's white paper entitled,
``AACC WIA Reauthorization Priorities.'' However, this testimony does
not necessarily reflect the entire or official position of AACC.
---------------------------------------------------------------------------
I have come to speak with you today about the need for our Nation
to create an integrated workforce development system that offers a
seamless delivery of services to address employment, education, and
skill needs of workers, job seekers, and employers.
the next economic recovery: who will benefit?
Even as the unsettled economy continues to behave in volatile ways,
forecasters are predicting that a new generation of innovations (from
energy, the life sciences, green technologies, health care reform, and
information technology) hold the promise not only of driving economic
recovery, but also of sparking another extended period of economic
expansion in America. If such forecasts are on target, there will be
many opportunities for those who are ready to take advantage of the
economic updrafts. But during the last economic expansion, too many
poor Americans did not gain lift from these updrafts. During the next
economic expansion, our country must take the initiative, anticipate
labor market changes before or as they occur, and then use these
changes to create new economic opportunities for all of our people,
including those from low-income neighborhoods. What should our country
be doing now that will help our poor people and low-income communities
soar when the economy rises again?
Even when skill shortages re-emerge, adults and youth living in
low-income communities are likely to be left out of the picture, unless
special efforts are made. They not only lack the specific skill sets
required for the changing economy, they often lack the foundational
knowledge needed to acquire higher-level skills, and they most often
lack a market-valued portable credential. The poor frequently are the
last to benefit from economic expansion and among the first to be
affected by downturns in the economy such as the current recession.
Entry-level skill training represents only one part of what is required
for a worker to secure and retain meaningful employment. Without
broader foundational knowledge, post-secondary level training, a
portable credential, and actual job experience, narrowly focused skill
development too often results in a one-way ticket to entry level jobs
that are the first to be lost at the next technology innovation or
economic downturn.
building a workforce system with family-sustaining wages
The challenge is that we have to move beyond a preoccupation with
short-term entry-level skills training and move toward a workforce
development system that encourages training that leads to both
employment and a post-secondary credential and provides employment with
family-sustaining wages.
In reauthorizing the Workforce Investment Act (WIA), Congress
should reform the workforce system with the goal of providing workers
access not only to immediate employment, but simultaneous access to
portable and ``stackable'' post-secondary credentials leading to
sustainable-wage jobs. Currently, WIA and other workforce development
programs are not doing enough to establish clear and multiple pathways
to market-valued post-secondary credentials for workers, especially
those with low-skill levels. Too often training providers operate in
relative isolation providing entry-level training skills that do not
result in a portable and market-valued credential. And, they are not
incentivized to work as part of a larger workforce system, across
organizational boundaries, to create a seamless pipeline that develops
low-skill individuals into higher-skill workers who can find and
maintain employment in higher-wage jobs. To do this, the workforce
investment system must spur greater degrees of innovation and
collaboration between key stakeholders.
the role of america's community colleges in the new workforce system
One of those key stakeholders is America's community colleges. With
the proposed American Graduation Initiative (AGI), the current
Administration has recognized the importance of community colleges in
making the United States a world leader in higher education attainment
by 2020. I urge the Senate to pass that critical legislation. For the
same reasons that underlie the broad AGI initiative, community colleges
should play a central role in the WIA system as well. Community
colleges are the primary ``on ramp'' for the majority of low-wage and
first-generation college goers in America. Community colleges are
America's public asset in moving low-skill workers into higher-paying
careers. Whether it be educating low-skilled adults and those with
limited English proficiency and transitioning them to post-secondary
education, developing and offering cutting-edge occupational programs,
or working directly with businesses to help train their workers,
community colleges are a natural hub of the workforce development
system. But too often, community colleges are regarded as mere vendors
in a system where they should be looked upon and behave as true
partners.
Some States have positioned community colleges strategically as the
hub of their workforce development system. For example, in my home
State of Virginia, the Governor asked the community college system to
administer the WIA program and to serve as staff to the State workforce
investment board. The reasoning behind this move was simple: in an era
in which high school is no longer the finish line, State and Federal
programs should utilize and support the public asset that anchors
workforce development at the post-secondary education level--the
community college. On a national level, however, WIA is essentially
agnostic as to training providers. Prioritizing the role of community
colleges is key to strengthening the system overall. Community colleges
are the closest thing this country has to a national network of
ubiquitous, low-cost and high-quality training providers, and the WIA
legislation should reflect that. Community colleges are a national
asset that WIA is not leveraging to its fullest.
One such community college is Northern Virginia Community College.
NOVA has developed new ways that community colleges and community-based
non-profit job training programs can work together to help low-income
Americans secure higher paying jobs and long-term career advancement by
rapidly progressing toward a post-secondary credential. I would like to
describe three such partnerships between NOVA and community-based
organizations to help illustrate the points I want to make regarding
WIA reauthorization.
training futures
One of these is a program that integrates the training provided by
a community-based organization with NOVA's post-secondary certificate
program in office administration. For the past 6 years, NOVA has teamed
with Northern Virginia Family Service (NVFS), a community-based 501(c)3
non-profit organization that assists low-income families with
challenges that range from health and housing issues to economic
concerns and traumatic crises. NVFS has a training program named
Training Futures (TF) that targets underemployed and unemployed
Northern Virginia family breadwinners. Three-fourths of the trainees
are immigrants. Most are stuck in dead-end retail, service and manual
labor jobs paying an average wage of $10.00 an hour with no benefits.
Two-thirds are trying to raise families with an average annual income
of $20,000. Many of these family breadwinners wake up every day knowing
they may be just one missed paycheck from receiving an eviction notice.
Without upgrading their skills for new jobs, these working poor can
remain stuck for years living on the edge of homelessness. And, without
a post-secondary credential, their chances of upward mobility are slim
to none.
Training Futures delivers a 24-week comprehensive training and
internship program targeted at entry-level health care office
administration jobs. Because of its partnership with NOVA, TF graduates
leave the program with marketable skills and a jump start toward a
college degree with 17 college credits. Through this community college-
nonprofit workforce development partnership, over 500 low-income
trainees at Training Futures have earned college credits to help them
launch and advance new careers. Earning college credits gives TF
graduates an edge in competing for scores of job openings in northern
Virginia that list ``some college preferred'' on job ads. Despite the
recession and decline in hiring, Training Futures' job placement
outcomes have remained in the 80 percent range.
According to a recent third-party survey, one-third of TF's
graduates have continued working toward an associate degree at NOVA
after graduating from the program. Were it not for the special
collaboration between NOVA and Training Futures, it is likely that most
program completers would have little prospect of achieving a post-
secondary credential or career mobility. By creating an ``on ramp'' to
college, NOVA and TF have created the pathway for continuing
professional development that helps graduates accelerate their career
advancement and job security, with two-thirds of graduates reporting
promotions. It also contributes to nearly doubling of graduates'
earnings to over $35,000 at the time of the graduate survey. In
addition to graduates' wage increases, the survey also documented an 82
percent increase in home ownership, doubling of the proportion of
trainees receiving employment benefits such as health care insurance,
and doubling of average family savings.
year up
Year Up is another example of a community-based non-profit that
teams with NOVA in the Washington, DC metro area. It offers a 1-year,
intensive training program, providing a combination of technical and
professional skills in information technology, an educational stipend
and corporate internships. Working with NOVA, the program offers a
semester's worth of college credit to those completing the program.
Year Up students are young adults between the ages of 18 and 24 who
know they can do better than remaining in minimum-wage jobs. Some are
single parents. But with only a high school education, they lack the
skills, experience, and credentials to launch themselves onto a career
track. They see Year Up as their launching pad for both an IT career
and a start in college, especially now that graduates receive college
credit from Northern Virginia Community College. Within 4 months of
graduation, nearly 80 percent of Year Up completers are employed with
average earnings of over $35,000 a year. Year Up currently serves more
than 1,600 students a year at sites in Atlanta, Boston, Providence, New
York City, San Francisco, and Washington, DC.
goodwill industries international
A third example of community college-CBO partnership illustrates
the potential power that a collaborative relationship between America's
community colleges and community-based nonprofits could have if scaled
nationally. Last November, national leaders from Goodwill Industries
International, the Nation's largest non-profit job training provider,
teamed with NOVA and a group of America's community colleges to chart a
national strategy to help thousands of low-income Americans nationwide
achieve extraordinary job and college attainment results. The vision is
to create a national workforce development strategy between the
Nation's community colleges and Goodwill Industries International, to
provide skills training to low-
income individuals and to create an explicit pathway toward a post-
secondary credential and a family-sustaining wage with healthcare and
retirement benefits. Such a partnership between America's 1,200
community colleges and Goodwill Industries offices nationally that
serve 1.5 million low-income and disabled individuals annually offers
an unprecedented opportunity for our country to help low-income
Americans achieve self sufficiency and build a more competitive
economy.
the current wia environment
In northern Virginia, NOVA and the Northern Virginia Workforce
Investment Board have a strong history of collaboration, focusing on:
targeted industry and occupational training, particularly
in nursing and allied health worker training and teaming through a WIA
Community-Based Job Training Grant;
job placement within high impact employers and industries.
In Northern Virginia, NOVA has consistently been the largest training
provider of WIA training programs in the region;
collaborative service strategies, such as workforce board-
administered career centers on NOVA campuses or NOVA employer outreach
teams based at Northern Virginia Workforce Board's Comprehensive
Workforce Centers; and
win-win efforts on behalf of both workers and the region's
businesses. In 2009, the Northern Virginia Workforce Board funded an
economic feasibility study to develop a new workforce development
center on one of NOVA's campuses. That study will be the basis by which
NOVA will seek additional State funding to build this center.
But, even with the strong relationship with the northern Virginia
WIB, NOVA's CBO partnerships all face significant challenges in
qualifying for or working with WIA funding due to WIA's current
emphasis:
Funding tends to favor short-term skills training and
immediate employment rather than supporting longer-term career
development and transitions toward achieving a post-secondary
credential;
Establishing trainee/student eligibility is a cumbersome
and difficult process, leading many community colleges and CBOs to
direct their efforts to other than WIA-supported training;
Community colleges tend to be regarded as simply another
training provider rather than a critical hub of the public workforce
development system;
There are few incentives to recognize or reward
collaboration, innovation, or leveraging resources between key players
within the workforce development system;
Funding criteria emphasize direct training services rather
than critical capacity building that incentivizes effective programs to
achieve scale and sustainability.
recommendations offered for consideration in wia reauthorization
1. Strengthen Pathways to Post-Secondary Credential Attainment
The Nation's economy requires that an unprecedented increase in the
percentage of the population who achieve market-valued post-secondary
credentials. Achieving this goal will require a multi-faceted effort on
the parts of institutions, States and the Federal Government. This
effort will only succeed if we are effective in reaching out to
populations that are currently underrepresented in post-secondary
education, such as those participants in CBO training programs, and
design training pathways at the post-secondary level that lead to high-
wage employment. In WIA reauthorization, Congress has a significant
opportunity to assist this effort by providing support for increased
linkages between community-based organizations that do workforce
training and post-secondary education institutions such as community
colleges. The CBO-to-postsecondary ``pipeline'' is vital to achieving
the post-secondary credential achievement rates that are required to
maintain our Nation's economic competitiveness.
To improve the functioning of the CBO-to-postsecondary pipeline,
the following features are recommended:
Add ``transition to post-secondary education and
training'' to the purposes of the act and the definition of adult
education, and clarify throughout the act that transition programs can
and should be funded with WIA funds.
Include a measure of the total number of people served by
the workforce development system who make the transition to post-
secondary education and training in the performance accountability
system.
Require eligible agencies to consider, when deciding on
local grants and contracts, whether grantees offer explicit provisions
for post-secondary transition.
Prioritize youth programs that have strong connections to
post-secondary education.
2. Encourage Collaboration & Innovation Between Key Workforce
Development Stake Holders
Congress should think broadly about the most effective ways to
administer WIA funds at the regional and local level, to ensure the
proper mix between assisting participant access to training and the
development of training capacity:
Authorize sector initiatives. Sector initiatives bring
together training providers, businesses, WIBs, economic development and
other key partners to develop training programs and train workers and
provide other services to help important local business sectors thrive.
These initiatives are a particularly effective way of ensuring that
workers are receiving training for available, good jobs. WIA should
provide State and local areas with ample latitude to design such
initiatives that best suit their needs. Community colleges should be
regarded as key partners in any such program that receives WIA support.
The Community-Based Job Training Grant program provides a model that
should be used when designing sector initiatives within the WIA formula
programs.
Establish incentive grants to reward innovative and
effective programs. Incentive grants should reward more than just
meeting a numerical benchmark. They should spur the innovative,
effective and coordinated approaches devised at the State and local
levels that other areas should emulate. Effective utilization of
community colleges--community-based partnerships should be one of the
considerations in deciding grant recipients.
Help successful programs scale so they can increase their
impact and be sustainable.
Promote and ensure an efficient and effective coordination
of investments and services across a wide range of programs, providers,
and systems, particularly those such as WIA's own adult, dislocated,
and youth funding, Wagner-Peyser Employment Services, Trade Adjustment
Assistance, Pell grants for Unemployment Insurance claimants, and Re-
employment Eligibility Assessment.
Strengthen ties to such programs as Carl Perkins, TANF,
ABE, Food Stamps Training programs, and other programs that seek to
provide skills development and employment assistance to our Nation's
workers. Congress should insist that these programs be administered
consistently at the One-Stop Employment Centers, rather than the
multiple other methods of service delivery. This one action will move
the system towards greater integration, on behalf of the job seeker.
3. Provide More Support for the Expansion of Training Capacity
Community colleges place top priority on efforts to help students
access
post-secondary education and training. However, many community colleges
are straining to serve all the students who are enrolling. In economic
downturns such as the one we are now experiencing, double-digit
percentage increases in enrollment from one year to the next are the
norm. According to a recent survey by the American Association of
Community Colleges (AACC), community college enrollments have increased
by 16.9 percent in the last 2 years. These enrollment increases are
often not covered by State appropriations, so colleges are forced to
raise tuition (if they have that authority), cut expenses to the bone,
or turn students away from their programs. Often, it will be a
combination of all three. The average community college derives
approximately 20 percent of its revenue through tuition and fees, which
gives some idea of the percentage of the college's actual program costs
that are covered by individual training accounts.
WIA should provide more direct support for additional training
capacity at community colleges. Without a Federal priority on
developing this capacity, WIA participants will continue to face less
effective, more expensive options if they wish to immediately access
training. Businesses will struggle to find candidates with the skills
that they need for available jobs.
Congress can take some simple, but meaningful, steps in this
direction under the current WIA structure:
Authorize the Community-Based Job Training Grants
(CBJTGs), which were created in 2004 in response to this capacity
crunch. The CBJTGs are a sector initiative that is funded and is
working. The program should be authorized as it was originally
envisioned, namely a national competitive grant program that awards
grants to community colleges, working in partnership with local WIBs,
businesses and other key stakeholders to expand training capacity at
the college and train workers for high-demand occupations.
Unfortunately, the Administration has proposed the elimination of this
program in its fiscal year 2011 budget. The support this program offers
is crucial, and it would be a mistake to eliminate it. As I mentioned
earlier, it should also be a model for incorporating sector strategies
into the WIA formula programs.
Give local workforce boards greater flexibility to utilize
training contracts, especially with low-tuition training providers such
as community colleges. This approach was taken in the American Recovery
and Reinvestment Act because Congress recognized it as a way to
expeditiously and effectively train workers and stimulate the economy.
It should be made a permanent part of WIA.
conclusion
America's community-based non-profit organizations have several
distinctive strengths often not found in American higher education.
CBO's are particularly successful in reaching low-income populations
who are not in school. Many of these participants need entry-level job
skills, additional support services in order to complete job training
programs, and quick job placement results that are often not available
from colleges. America's 1,400 non-profit CBO workforce development
providers serve several million adults annually. Their entry-level job
training programs represent a great beginning, but typically they are
not sufficient to move low-skill workers into sustainable careers with
livable wages and benefits. For that to happen, some form of post-
secondary credential is needed. America's 1,177 community colleges can
do the job of linking CBO job training with college opportunity.
College credentials are America's surest ticket to long-term success.
Americans with associate degrees earn 29 percent more than high school
graduates, and are 30 percent less likely to be unemployed.
CBO's and community colleges offer complementary assets. Community
colleges and community-based organizations already have mission
alignment to train moderate-income young adults and low-wage workers.
CBO's excel at job skills training, job placement, and specialized
support services for immediate job and wage-gain results. Community
colleges provide low-cost college education opportunities, access to
Federal financial aid (Pell grants) and college credentials for long-
term career advancement.
Together, the Nation's community colleges and community-based
organizations can form key components of a comprehensive workforce
development system operating to the benefit of workers, the unemployed
and America's businesses, IF they join their extraordinary job training
and educational outcomes together. What is needed is a workforce system
that incentivizes them to work as one.
Thank you, Mr. Chairman and members of the committee for this
opportunity to speak with you today.
Senator Casey. Thank you very much.
I am going to, for purposes of moving our hearing along,
postpone my questioning. I will turn first to our Ranking
Member, Senator Enzi, and then go to Senator Brown. I know
Senator Brown has to leave, and we will try to be as flexible
as we can with other members as well.
Senator Enzi.
Senator Enzi. Thank you, Mr. Chairman.
I have to do some work on healthcare, too. This is equally
important to healthcare. I want you to know that it bears that
kind of importance for me. We have been working on it for
years, and it is time to get it done.
I appreciate the comments of everybody. They have been
excellent. It doesn't matter who we have testifying, even with
Governors and veterans and others that we have had testify in
past hearings, the message is pretty much all the same. And
that is we really need to do something in this area, that we
need to get rid of the silos, build in some flexibility, and
there needs to be increased funding.
Now, I believe that if we ever get this reauthorized, there
will be more funding. Right now, we are not using all of the
funds because of the silos, and that is a counter argument to
provide more funding. I think we can make the changes.
I will begin with Mr. Stalknecht. Last week, I was in
Wyoming. I went to an organization that is now nationwide. They
train mechanics for diesel trucks and cars and do what you were
talking about. It is called WyoTech. I agree that we need to
change the culture, and we need to have the on-the-job
training. I am committed to a workforce system that job seekers
and employers can use.
How can we continue to engage business to be a part of the
decisions related to skill training, to education, and
workforce development? What types of roles does business find
most meaningful?
Mr. Stalknecht. Thank you, Senator.
Small businesses and the ones I represent, as I indicated
before, average about $1 million revenue, less than 10
employees. Obviously, we have some that are much larger. It is
time constraints that they have as business owners, trying to
operate a small business and also working with some of the WIA
boards around the country.
Their frustration is the bureaucracy that is there and the
inertia that happens at some of these workforce development
boards, where they spend a lot of time, and they just don't
have the time to give. They sort of lose their interest in
that.
If there is some way that they can streamline the processes
at these workforce development boards, where it would be more
objective to the effort rather than just continually having
meetings and meetings and requiring small businesses to attend.
They just don't have the time. There has to be some
flexibility, as we heard from my colleagues here today, in some
of these activities, but more importantly, recognizing the
constraints on the small businesses. They want to help, but
they just don't have the time in many cases.
Senator Enzi. In some of the hearings I have held, the
number of small businesses has been small--they said, ``How
come that is all that showed up?'' I said, ``Well, if they had
enough people to come to a meeting that they didn't think was
worthwhile, they would fire them.''
[Laughter.]
Mr. Templin, as a former small business owner, I believe
that it is important to encourage entrepreneurship in
communities, and that is why I host an inventors conference
each year in Wyoming, which opens the door to businesses to
help make ideas a reality. Based on your experience, how can
community programs that train entrepreneurs impact the
workforce development system, and what, if anything, could
reauthorization include to encourage more entrepreneurship in
the communities?
Mr. Templin. That is an excellent question. Community
colleges are just at the early stages of making linkages
between entrepreneurs and formal training, and we have
significant models of success. Unfortunately, the stovepipes
that we have between WIA training and higher education training
tend to have different rules and different metrics that create
different incentives.
Consequently, it is the unusual community college that
works with the workforce investment board around the area of
entrepreneurship. More likely, they are going to develop a
relationship with a community-based nonprofit that is already
serving minority, low income, or immigrant populations and
encourage those students to enter their continuing education or
credit courses without a connection to WIA.
It is a missing opportunity for us to work across
boundaries and to integrate the region's resources to the
benefit of our people.
Senator Enzi. Thank you. My time is almost up.
I have questions for all of you, and I appreciate you
volunteering to be on this panel. I hope that you will answer
some questions in writing because we can usually get into a
little bit more detail. It is really the detail that helps us
on this.
I would appreciate that, and I will yield back the rest of
my time.
Senator Casey. Thank you, Senator Enzi.
Senator Brown.
Statement of Senator Brown
Senator Brown. Thank you very much, Mr. Chair. Thanks for
going a bit out of order. I appreciate that.
Ms. Feldman, I would like to ask you about sectors and the
importance that you have attached to it and the community
colleges, Dr. Templin, the importance that you have attached to
it. Our SECTORS Act, our legislation is basically founded on,
as Senator Enzi suggested, that it is from the bottom up. That
you work with local businesses, local labor unions, local
workforce investment boards, and local schools, universities,
especially community colleges. My State has a terrific network
of them, as many other States do.
One example in Ohio of where this has worked. In Fremont,
Ohio, a city not too far from Lake Erie, they have had a marine
trade sector partnership. It is in northwest Ohio. Most of the
boats registered in Lake Erie, some 400,000, are not far or are
in the northwest part of the State between Cleveland and
Toledo.
There is a demand for trained skilled labor in the marine
trade industry, but they simply don't have enough people in
those that are skilled to do the kind of maintenance and other
things for these 400,000 boats that are registered there.
Talk to me about, and you think about--I think any one of
us could take a tour of our States and point out, for instance,
I would say in Toledo, Toledo has more solar energy
manufacturing jobs than any city in the country. That would be
something that local businesses and community college would
want to concentrate on. Or you could go to Philadelphia. You
could go different places and do the same around the country.
A couple of questions. What, in your mind, Ms. Feldman, are
the key elements of effective sectors partnerships? Also, how
do existing WIA programs help or hinder the development of more
robust sector partnerships? If you could speak generally and as
specific as you can about both of those?
Ms. Feldman. OK. I think what makes sector partnerships
work, first of all, is you have to have an innovative leader to
the partnership. That can vary from community to community. In
some cases, it might be a community college. In other cases, it
might be a WIB or it might be a labor-management partnership.
I think there has to be flexibility in letting that bubble
up out of the community or the region that is involved because
that workforce intermediary has to be respected to bring those
partners around the table, multiple partners. To really
initiate workforce programs that are not just run of the mill,
but involve a lot of innovation, which requires that people
break down the barriers between their various organizations and
work together to create the kind of innovative opportunities
that are possible.
The other piece is it has to be results-oriented, in my
opinion. The work of that sector needs to really look at data,
carefully analyze the labor market data, and then decide on a
strategy driven by that data that is going to get results for
that industry. That employer voice is really important. The
labor voice is really important in determining that. All voices
need to be heard at that table.
I think I could give you some examples. In Philadelphia,
for example, we were able to actually use an H-1B grant, as
opposed to a WIA grant, to train 1,700 nurses that met the
nursing needs across numerous employers. Forty-five schools
were involved in this partnership at the community college
level, at the hospital level, schools of nursing, as well as at
the university level.
In order to make that happen, we had to have the support of
the businesses because they provided a lot of in-kind and cash
match to it. We had to have the support of the WIA system to
embrace it and support it. Most importantly, I think we needed
a leader, and that came in the form of our labor-management
partnership that had the vision that this was possible.
Senator Brown. Let me interrupt you for a second.
Ms. Feldman. Yes.
Senator Brown. What you just said about a leader, and what
you said earlier, that it is important that someone rise to the
occasion on this. If we integrate this SECTORS Act into our
reauthorization, as most people, I think, in both parties want
to see us do something along those lines as a central part of
workforce investment, can we assume that in community after
community, creating it this way will make the leader rise to
the top? Is there a way of guaranteeing that?
I mean, we don't obviously mandate it needs to be in this
case a community college, this place a business leader, this
time a union leader, this time a workforce investment board
person. I mean, how do we build this so it produces one or two
or three people that are really going to pick it up like that?
Ms. Feldman. I think this is where the legislation really
needs to support flexibility and really needs to support the
opportunity for communities to come forward and say here is
this track record. We already have capacity. We don't have to
start from scratch. As opposed to initiatives which constantly
ask us to form new partnerships and prove something when it is
already existing. Are you following me?
The WIA legislation has not been particularly supportive of
sector initiatives. The only reason we have been able to do it
successfully in Philadelphia is because of the industry
partnership model that was established at the State and also
our training fund, our Taft-Hartley fund, which created this
industry partnership in 1974. We have 49 employers that pay 1.5
percent of gross payroll into the Taft-Hartley fund.
We all sit around the same table. We all have common
interests to resolve the problems that face us as an industry.
Senator Brown. OK. Thank you very much.
Thanks, Mr. Chairman.
[The prepared statement of Senator Brown follows:]
Prepared Statement of Senator Brown
Thank you, Chairman Harkin and Senator Enzi for calling
this hearing. And thank you to the witnesses for joining us
this morning.
The reauthorization of the Workforce Investment Act should
be a central plank in our jobs recovery strategy.
At this point last year, we were hemorrhaging jobs at a
rate of more than 600,000 per month. Today, we have stopped the
bleeding but economists tell us that the job market will not
fully recover for several years.
According to the Bureau of Labor Statistics, since the
start of the recession, 5 million people have joined the ranks
of the long-term unemployed. We now have 6.3 million workers
who have been without jobs for 27 weeks or more compared to 1.3
million at the start of the recession. In Ohio, 641,000 people
are unemployed--an increase of 196,000 from last year.
Even during these very tough times in the job market, I
hear from employers who are struggling to find workers with the
skills that are needed to grow their businesses. Some of these
are in the technology, health, and energy sectors. There has
been a mismatch between our education and job training programs
and the emerging sectors in our economy.
That is why I introduced the Strengthening Employment
Clusters to Organize Regional Success Act--also known as the
SECTORS Act to align our education, job training, and economic
development with key industry sectors to strengthen regional
economies. We know that sectoral strategies work, yet our
stove-piped workforce systems do not facilitate them.
Consider the results of the marine trades sector to
partnership in Fremont, OH. In and around the rural communities
that surround Lake Erie, marine trade occupations are difficult
to recruit and maintain a high level of expertise. But each
year, there are more than 400,000 boats registered in Ohio,
with most in northwest Ohio. So, there is a demand for trained
skilled labor in the marine trades industry. Labor and
community colleges, along with the WIBs, have teamed up with
employers to develop the ``Skills for Life'' Marine Trades
Training Initiative.
This is just one example in my State, but there are dozens
more in Iowa, Wyoming, Washington, and Georgia.
We cannot return to sustainable job and wage growth without
modernizing our workforce investment system. I am eager to hear
the witnesses' recommendations on how we can break down the
silos in the current system and create the conditions for
advancement for our workers and for our economy.
Thank you.
Senator Casey. Senator Reed.
Senator Reed. I yield to Senator Franken.
Statement of Senator Franken
Senator Franken. Thank you, Senator.
I guess I will go to Mr. Stalknecht. You represent small
businesses, right, that do air conditioning, and you basically
use WIA and workforce investment boards as a source of the
people you represent, source of getting good workers, right?
Mr. Stalknecht. Senator, that is one avenue we use. I don't
know specifically to the extent of how widespread it is in our
industry. We do know that, in fact, we had some information on
that, and I can provide it to you a little bit later on, as to
the placements from the WIA into the HVAC industry. I don't
have that right at my fingertips.
What we found most successful in our industry is two
things. One is when we developed our own apprenticeship
programs that were funded by the local contractor in
conjunction with, for example, Montgomery Community College.
Then we also found that many companies, the ones who are a
little bit bigger of scale, had the ability to create their own
apprenticeship program. We had one very successful one, Service
Legends in Des Moines, IA, for example. They created their own
program, and they get, from what I understand, over 100
applicants a month just to go into that program.
The question we have is, is when we have these companies
that can afford to have apprenticeship programs and we have
then an interest in the community, there is a disconnect where
we don't get them from the high school feeder system into the
industry. That is really our frustration because what we found
in our experiences in dealing with guidance counselors around
the country, they just are not proficient in understanding the
opportunities in the skilled trades.
Senator Franken. They can go to a board, a workforce
investment board and get referrals?
Mr. Stalknecht. That is correct. We have to back that up a
little bit and get some information into the high school
guidance counselors, into the high school systems about skilled
trades. Not just for our industry, but you have the electrical
trades. You have the plumbing trades. You have the construction
trades, the whole gamut of a skilled workforce base.
Senator Franken. Is it fair to say, and I will ask this of
everyone, that one of the jobs of WIA is to be sort of a one-
stop shopping place for both people who need jobs and local
people who need employees? Anybody?
Mr. Carnevale. Well, there is a distinction. That is, there
are the U.S. employment services, which are a separate
institution pretty much entirely, that are separated from the
WIA One-Stops. The employment services are where we keep
information on what the--that is where you apply if you are
looking for a job.
The opportunity loss there, I think, because it is our
labor exchange, is that people--I think we are talking 30
million or so in this recession--have applied for unemployment
insurance, and nobody ever gave them any conversation,
counseling, and the information they might need to figure out
what they are going to do next.
The One-Stops have essentially been an attempt to do that,
but they have become very separated from the core institution
where the data is, which is in the employment where the people
come and where the data is. For instance, if you wanted to know
whether we should fund this industry partnership or not, first
thing I would want to know is are there going to be any jobs
there based on retirement of current workers and on projected
growth?
You would have to figure that out from the trends. If
someone started a brand-new industry, you wouldn't have much to
say about it. I am not sure you would want to start brand-new
industries with public money, frankly. I think you would want
some kind of track record.
If you wanted to know what the wages are, the employment
service knows. They track the wages of all Americans on a
quarterly basis, and they can tell you which occupations pay
and which don't. In many respects, we separated our WIA system
from the mother ship over the last quite a few years.
Senator Franken. You are saying we should get more
coordination?
Mr. Carnevale. I am saying in the end that I think
reorganizing institutions tends to be a waste of time. I think
we ought to do this with information. That is, we ought to know
where the jobs are going to be, what they are going to pay. We
ought to know the programs we put people into. If we attach the
programs to the wage records that are kept by the employment
service, we can know exactly how much they made and if they
were employed as a result of the program.
I would coordinate these institutions with information
systems and counseling, not by reorganizing the institutions
themselves.
Senator Franken. OK. I am out of my time. Mr. Chairman, may
I ask Mr. Templin one question?
Senator Casey. You may.
Senator Franken. Thank you.
I have heard concerns from representatives of both business
and labor organizations in Minnesota about training offerings
in their community, and in some areas, community college
programs vital to local businesses have been cut, and in
others, community college programs have been created that
appear to duplicate existing training programs provided by
labor organizations. For example, the IBEW in Rochester, MN, is
training their workers in working on wind energy, and at the
same time, some of the community colleges are doing the same.
The jobs just aren't there.
Has this been a problem that you have run into, and can you
suggest strategies for ensuring better coordination between
training programs?
Mr. Templin. I have seen some duplication, but not what I
would call unnecessary duplication. In other words, I have seen
multiple providers in a particular space where the demand for
jobs really is there.
In cases where demand is projected, but not currently
there, I would hope that WIA would encourage this collaboration
across lines so that the union and the community college could
develop appropriate divisions of labor. A union will not be
able very easily to grant a portable credential that you can
stack toward a bachelor's degree if an individual experiences
success and wants to go on.
Similarly, a community college probably cannot create the
kind of workplace training that a union can create. We need
incentives that cause these institutions to work together for
greater efficiency and effectiveness and hold them accountable
for it.
Senator Franken. Thank you. Thank you very much.
Thank you, Mr. Chairman.
Senator Casey. Thank you, Senator Franken.
Senator Reed.
Statement of Senator Reed
Senator Reed. Thank you very much, Mr. Chairman.
Thank you for your excellent testimony.
Let me address a question to you individually and to the
whole panel, which reflects some of the comments that were
raised in Senator Franken's question. What is the general
ability and adequacy of aligning training programs with jobs,
which, we hope, is going to be part of the reauthorization? How
do we make sure that we are responding to the jobs of the
immediate present and the near future and not training the
proverbial rope-maker or something like that?
Mr. Carnevale, do you have any thoughts? Just quickly your
comments, and we will go down the line.
Mr. Carnevale. Yes. To be sort of mechanical about it, I
would use employer-based wage records, which are reported
quarterly, tie those to transcript curriculums wherever they
come from, proprietary schools or community colleges, 4-year,
unions, or whatever. Thereby, I would know whether or not
somebody got a job, how many hours they worked, and how much
they made as a result of completing the program.
Then I would use that same information as counseling
information for the workers themselves. The information is not
useful to the workers, I think, unless there is some counseling
as a piece to it.
We do not do a very good job at all of connecting our
programs to current or prospective labor demand. We largely
operate on the basis of whatever somebody wrote in the U.S.
News and World Report this week.
Green jobs is a case in point. Between now and 2018, we
will probably have about 3 million green jobs, probably 5
million or 6 million openings given retirements. That is out of
162 million jobs.
There is a certain sort of style factor that goes decade by
decade with jobs. We do have the data. That is what is pretty
stunning about all this.
Senator Reed. Thank you.
Mr. Carbone.
Mr. Carbone. Yes, this is, I think, part of a leadership
role on a regional level for workforce investment boards. We
are supposed to be a voice. We are supposed to be a convener.
Our job is to collect the data, interpret it, and communicate
it.
It seems to me that it brings it down to that local
delivery level again. That if it is functioning as it is
prescribed under the Workforce Investment Act, all the partners
are getting all the information, and it is the same
information, and there is leadership at the top of the system
to ensure that all the partners are cooperating. Which means
that the trainers are getting programs ready that are
consistent with economic trends, that everybody is not trying
to do the exact same thing.
We are taking the best of what the community colleges can
do or training from the labor side or other groups. It is being
done in a way in which there is leadership to it.
I think the act clearly gives that responsibility at the
local level to workforce investment boards. I think what is
incumbent upon this committee as you consider the
reauthorization is to put the tools in the act to make sure all
workforce boards do what workforce boards are supposed to do.
Senator Reed. Mr. Stalknecht.
Mr. Stalknecht. Yes. My recommendation would be to look at
some of the private sector apprenticeship programs that are
ongoing right now, that are very successful. As the one
illustrated that I talked about before with the Washington, DC
area capital, they receive, to the best of my knowledge, very
little or no Government funding.
The problem we have is trying to expand those successful
models around the country, which can work. We know they can.
The problem with supporting a private sector type of
apprenticeship program, it could be tied in very easily to some
of the workforce boards, but there are models out there in
various private sector industries that do work, and we need to
find out why they work, why they are successful.
They are jobs. They are the energy-related jobs that are
out there. We just need to find mechanisms to expand them
throughout the country for the workforce that we need of the
future.
Senator Reed. Before I recognize Ms. Feldman, would it be
helpful to require or as part of the Federal contracting
process, at least give credit for apprenticeship programs as an
incentive to move the process along? Has that been considered?
Mr. Stalknecht. We have a program in the National Capital
Chapter that works with Montgomery Community College. As I
indicated before, there is about 640 classroom hours and 8,000
on-the-job hours. There is an accreditation program that goes
along with recognition of the on-the-job training.
Senator Reed. My thought would be if, for example, one of
the factors in a contract for a radar system was a plus for a
valid apprenticeship program in the applicant, would that be
helpful, in your view?
Mr. Stalknecht. Well, it would be something to think about,
and I would assume it would be very helpful. Recognizing that
in the HVAC industry, we are a microcosm of business in
general, where probably about 90 percent of the businesses in
the industry are nonunion. So they are smaller companies. What
we have is very, very good union apprenticeship programs, but
where we need help and support is to represent those 90 percent
of businesses that are not union and don't have the wherewithal
to put together an apprenticeship program.
You take the residential side. Residential are the
technicians or the businesses that serve your home and
everybody in this room. Probably 99 percent of those companies
are nonunion. And what we need to find is the workforce to help
that and programs that would help the nonunion contractors with
apprenticeship programs.
Senator Reed. Ms. Feldman, would you like to respond to
your comrades' comments, or respond to the issue of aligning
supply and demand?
Ms. Feldman. I would like to do both. In terms of, first,
the aligning jobs, I think that is where the sector approach
that Senator Brown was talking about is really important.
Because when you get employers and labor and others around the
table from the same sector--health and life sciences, for
example--they know what is going on on the ground, and they
know where the jobs are going. That kind of strategic thinking,
as part of that sector approach, is really important.
In Pennsylvania, we established the Pennsylvania Center for
Healthcare, which is a statewide sector for the healthcare
industry. We have done incredible data work to identify where
the jobs are and where they are going through 2016, and it has
driven then all the decisions we are making in the State
through the WIB level and through our partnership. So I think
that sector approach is really important.
In terms of apprenticeships, we have done some in our
union. Not as much as the construction trades, but I think that
there are models certainly on the labor side that are really
beneficial to linking apprenticeship to college credits and to
the credentials that they need so that it is more of a portable
credential that is recognized across the industry.
We have become a big fan of giving credit for technical
training. I think that kind of model brings in the community
college piece, the labor piece, the employer piece. Once you
have a model like that, it can be replicated, and I think that
is really important.
Senator Reed. Thank you.
Mr. Templin.
Mr. Templin. My advice would be that taking pieces of what
have been said, that the watch word isn't a cookie cutter
approach, but that the WIB must be given flexibility. In a
sector strategy, the WIB might not be the appropriate
organization to lead the sector activity, but it could be very
important to convening it and supporting it.
With regard to data, having data available for the sector--
meaning the employers, labor, and the training providers--to
talk with one another is incredibly important to connect jobs,
training with jobs. Just looking at the data through the WIB
without that conversation is not necessarily valuable. Let me
give you a case in point.
Right now, if you talk to at least hospitals in this
region, healthcare systems in this region, they will tell you
that they are not hiring many RNs. That doesn't mean that there
is not a shortage. It takes years to develop that talent.
If we crank down the system so that there aren't people in
the pipeline, without a conversation and go only by the data,
you will be seriously misled. It only works when industry is
involved not as a spectator, but as a business proposition,
knowing that it is vital to their future and that they are
giving something, not just taking something, but they are
contributing something.
And that training organizations are held accountable not
just for completing programs, but placing graduates in real
jobs. That is what the WIB can do as a facilitator in a
process. It doesn't have to always be the actor in a sector
strategy. It often doesn't have the expertise, but it does have
a framework that if it is given flexibility can help this
country a great deal.
Senator Reed. Thank you very much.
Thank you, Mr. Chairman.
Senator Casey. Thank you, Senator Reed.
I want to thank our witnesses for your testimony. I have a
number of questions. Let me just start by way of a comment.
I have often said--and it might be somewhat of an
exaggeration, but I think it is within the ballpark of what is
out there in the real world--that if you had to boil down to
two words what is the biggest economic challenge the
Commonwealth of Pennsylvania faces, and I think it is true
across the country, you could probably boil it down to those
two words meaning ``workforce development.''
Obviously, when you talk about this subject and you say
flatly that that is one of, if not the central challenge of our
economy going forward, there is a lot under that umbrella.
Obviously, when you talk about if you are going to have a
workforce development or a skills strategy so that we can
compete in the world economy, that means that a child gets
healthcare, nutrition, and early learning. It means that we
have good primary and secondary education. It means that we
have the whole range of higher education opportunities. It
means that we have great training programs in place.
It is easy to say it in two words, but it does imply, I
think, having a lot of pillars to undergird that goal. I know
that in Pennsylvania--and Ms. Feldman referred to a couple of
examples. I know that in Pennsylvania, we have made great
strides not only with the implementation of the act and making
improvements, but she just mentioned, for example, the regional
partnerships.
We have talked a lot about partnerships today, and I am
looking at a--I won't obviously read all this. It is a
publication by the State industry partnerships in Pennsylvania.
Here on page 7, you have the Northeastern Pennsylvania Regional
Healthcare Industry Partnership, as well as the South Central
Pennsylvania Healthcare Partnership.
It is happening, I know, not only in Pennsylvania, but in
other States. We can further develop that.
One additional comment about what I have seen in
Pennsylvania, especially when I was in State government for a
decade, the remarkable story of community colleges. We have 14
in Pennsylvania. We could probably use a few more.
Maybe one of the most unheralded, underrated,
underestimated, underappreciated education sectors that I can
think of or, for that matter, beyond education. Tremendous
strides we have made because of the impact of our community
colleges.
Let me get to a question. But before I do, I do want to
recognize someone over the right shoulder of Ms. Feldman, Henry
Nicholas, a distinguished labor leader with tremendous
experience, real experience in training people for the jobs of
the future in healthcare. Henry, we are grateful you are here.
Next time we have one of these, we will add a chair and you can
come up and provide testimony.
Your work has been your testimony for a lot of years. We
are grateful for your leadership.
I wanted to get back to some of the questions we have moved
through before, and I want to try as best we can, and I won't
direct these in every instance to an individual witness but
have people jump in when you want to. Two broad questions--one
about flexibility and the other about this, it has been
expressed in different ways, but something that I have heard
over the years when I have been on the road, so to speak,
listening to the complaints, concerns, or criticisms about our
workforce development system and, in particular, the act.
Some of this is a little dated because I think we have made
progress on it. Just this disconnect between the needs of
employers and what or who is coming through the pipeline, that
basic disconnect.
I know, Ms. Feldman, I will start with you, but I want to
involve everyone in this. On I think it is the second page of
your testimony, you say, ``Employers in the region lack a
strong talent pipeline to fill critical jobs.'' Now I have
heard this over the years in a lot of different contexts. Not
just they lack enough of a pipeline of a specific skill. That
is one thing I have heard.
I have also heard that sometimes there is a broader base
and a sometimes lower, but important skill level. If someone is
hired to work in an office as something as basic and
fundamental as a receptionist, they don't know sometimes how to
answer a telephone. They don't know how to interact with
people. They don't have some basic literacy skills. Then it
goes above that to higher and much more precise skill levels.
I wanted to have you comment on that in the context of
Philadelphia and Pennsylvania. Then I want to have others weigh
in as well.
Ms. Feldman. I really thank you for that opportunity
because one of the things we haven't talked about today is the
importance of literacy, and what we are finding in Philadelphia
is that--and there is a great publication called Tale of Two
Cities put out by our Philadelphia WIB.
Senator Casey. I have it here, actually.
Ms. Feldman. There you go. That 50 percent----
Senator Casey. I am sorry. This is called Help Wanted. But
it is similar.
Ms. Feldman. OK, same. Second edition. Fifty percent of our
citizens in Philadelphia do not have the literacy skills
needed, and that includes working people. We seem to focus, you
know, on the needs of the K through 12 system. We have adults
who are working and not working who don't have the literacy
skills to serve as that talent pipeline for employers.
The statistics we came up with in Philadelphia was that 30
percent of the jobs require some kind of higher level--not even
higher level, but some real literacy skill. We have 50 percent
of our population trying to squeeze into 30 percent of the
jobs. That is a real problem.
What happens in the WIA system is we don't have the funds,
and sometimes it is expensive. We don't have the funds to
really work with that--with half of our population who are
ready, willing, and able to get the skills they need to move
into real jobs in the healthcare system. With the budget cuts
at the State, part of our literacy money comes from the Feds,
part comes from the State--30 percent cut in the State budget.
I don't see literacy being addressed in the WIA Act as
something----
Senator Casey. I was going to ask you that.
Ms. Feldman. As something that can be used to really impact
this pipeline. The employers need the talent pool, and the
workers need the jobs. But without that piece that is missing,
how are we going to get there? I mean, there are so many great
models, including ones that we have developed, but we don't
have the funding for it.
It really is an enigma to me why we can't understand that
our economy is being held hostage by the lack of literacy
skills of huge chunks in our population.
Senator Casey. I want to involve others. In addition to
literacy, just on this question of the disconnect because
business leaders have said to me over the years--well, they
have said a couple of things about sometimes they don't feel
adequately represented on workforce investment boards. I think
we have probably made progress on that.
The main point they make is ``I need this skill level'' or
``Five of us business leaders need this skill level coming
through the pipeline, and we are not getting it.'' Anyone else
on this issue? We can maybe just start left to right. That
might be easier.
Mr. Carnevale.
Mr. Carnevale. I think part of what we are dealing with
here is there has been a fundamental change in what is required
at work. In 1969, which is the last good data we have, about
almost 60 percent of people who were high school dropouts were
in the middle class. That is, they were in jobs that gave them
earnings in the middle five deciles in the income distribution.
They weren't in the bottom three, and they weren't in the top
three.
Now, almost the same number, almost 60 percent of people
who are high school dropouts are in the bottom two deciles of
the earnings distribution. So this has been a fight. I mean, we
have all been involved in this for a long time, trying to
upgrade the overall skill quality.
The other thing I would say is that we have a huge mismatch
problem. Most Americans are either working in an industry or an
occupation that is not growing and is unlikely to grow very
much and where wages are not growing. Where the jobs and the
wages are growing, we are under producing talent, both through
the education system and in workplace systems.
Senator Casey. In your testimony, actually, the first line
of your testimony, you describe the mismatch as between job
growth and skill.
Mr. Carnevale. Yes, it is pretty striking. This recession,
the last three recessions have accelerated this change. It is a
new phenomenon in American economics, and that is that things
change more in recessions now than they do when the economy
grows robustly. Recessions kill off high school and dropout
jobs very rapidly and institutions that house them.
Senator Casey. Mr. Carbone.
Mr. Carbone. Yes. As part of my written testimony, I
included a chart that we use at The WorkPlace every day, which
is education and training pays. It shows in the year 2008, the
differential based upon education as to what the average weekly
wage was and the corresponding unemployment rate.
That is the basis for it, there is almost never enough
money to do a literacy program the way it ought to be done.
Again, if a workforce investment board is able to coordinate
all of the dollars and the agencies and the entities that offer
some kind of literacy assistance in the community, you can make
a lot better use of the money that is there in terms of the
return on investment.
We actually have programs in literacy done right from the
One-Stop system itself. We get resources from the adult ed
departments of the communities of our region, and right there,
when people are there to talk to their counselors and talk
about careers, we enroll them in classes at the One-Stop.
We have extended it now because we don't have a lot of jobs
to give out. Jobs are scarce so we are now doing it evenings.
We are doing it weekends. We have done a lot more of putting
learning into our system.
The issue of literacy that was raised is a very, very
important one. If there is a reason for ensuring that you have
a good infrastructure on a local level to attract funding from
a whole variety of sources, I mean, we are always going to
probably say that there is not enough of money in the system. I
keep getting us back and bringing us back. The local system
that this act does create is supposed to lead the system, and
in doing so, there are other sources.
My remarks today are entitled ``Beyond Formula Funding.''
Formula funding ought to be a leverage point to grow from there
to bring other resources into your system to do things as godly
as this. I mean, this is one of the most important objectives
that I think workforce investment boards have, and yet it is
one that stares us in the face. I don't think any of us can
look at it and say that we are doing enough in this area.
The disconnect issue that you raise here, Senator, is one
that I think we have heard earlier today and I think we will
hear it almost everywhere that you go. If we are going to bring
businesses to the table, like this gentleman on my left, again,
the workforce investment board has to have the credibility to
understand the data and to understand that they are busy
people, make the best use of their time. Either you can be
helpful or you can't, but don't ever put somebody in a position
where they feel like their time is being wasted.
It brings us back to the point that as you move forward to
reauthorize this act, pay attention to that local delivery
point. We often defer that to the States, and I am not
suggesting that we don't. Among the recommendations that I made
is, be it the Department of Labor or another entity, to provide
incentives for States to actually create a data-driven system
to determine what is a region.
What is it? Are they comfortable political boundaries, or
is it the economy and commuter patterns and a lot of other
issues, common industries, things of that sort? There is a
science to it.
When it is done that way, workforce boards are empowered
with resources and minds and ideas to do a lot more and truly
lead that system.
Senator Casey. Mr. Stalknecht.
Mr. Stalknecht. The responses were well stated by my
colleagues. I really have nothing more to add to that.
Senator Casey. Mr. Templin, anything?
Mr. Templin. I would like to leave you with a thought. A
number of the Senators today have indicated their personal
knowledge about community colleges and the wonderful jobs they
do. Without pointing fingers, I would suggest that too often,
in too many instances, the connection between workforce
investment boards and community colleges aren't as strong as
they need to be.
If we would think for a moment that, in effect, America's
community colleges represent a public workforce system that
isn't being leveraged to its fullest ability. We are considered
under WIA as just another training provider rather than a
strategic resource, an asset that the Nation has to leverage.
I would hope that as WIA reauthorization takes place that
we look at the Nation's community colleges from a strategic
perspective and not only create a place at the table, but
expect them to perform. I am not sure that that is always the
case.
I would recommend that America's community colleges
represent a powerful delivery system in workforce training and
development, that they have a responsibility and a place at the
table as a partner, as a hub of the workforce system, not
simply just another training provider.
Senator Casey. That is great. If you could provide a
specific change for the reauthorization that would incorporate
that theme, we would appreciate that. That is why we have these
hearings. At least that is the reason for having a hearing.
I did want to ask two or three more. I know we are a little
bit over time, but I don't see anyone ready to kick us out. I
wanted to ask a question that Senator Harkin raised that
focuses on those with a disability in the context of the so-
called One-Stop locations.
Apparently, when you talk about One-Stop places in our
workforce development system, there isn't a great history on
them being effective at serving individuals with disabilities,
and I want to get your sense of that and why that is. If you
don't agree with that, I would like to hear why.
But if we can accept that premise, why that is and how can
we correct that problem in the context of a One-Stop location
and an individual with a disability, why doesn't that seem to
work as well as we had hoped?
Mr. Templin. Senator, if I might?
Senator Casey. Sure.
Mr. Templin. I think too often we think of the workforce
investment board in the sense that it has to be the center of
everything. The One-Stop, by its nature, is supposed to bring
resources together.
In fact, when you are looking at targeted populations like
those with disabilities, it might make more sense to go to
where the programs are that serve them. I will use as an
example, as I did earlier, Goodwill International, one of the
largest training providers working with the disabled.
Just as community colleges are places where lots of people
come, we have learned that we have to go to where the people
are. We have to deliver our systems to those places that are
working well, rather than expecting them to come to us. I think
that the workforce investment board as a centerpiece is a
concept, but it doesn't mean that everyone has to go there for
everything.
If we can develop the capability of reaching out to where
the people are, where they are being successful, then it is
much more likely that we will be able to serve them.
Senator Casey. Going to them, I mean, just the question of
location or access is a big part. Is that what you are saying?
Mr. Templin. The concept of a One-Stop isn't a physical
location.
Senator Casey. Mm-hmm. Right.
Mr. Templin. It is an essence of service, of integrated
services that meet people where they are, in times and places
that are convenient to them. Too often, we think of One-Stops
as a physical location that everybody has to be at in order for
anything to get done.
Senator Casey. I was using that phrase ``location.'' I
probably shouldn't.
Mr. Carbone.
Mr. Carbone. Yes, actually, that is what One-Stops are
really put there for. I mean, they are supposed to be, under
the purest form of the Workforce Investment Act, to create this
umbrella entity where under one roof you would have access to a
host of services, career being central, but anything that was
needed to be supportive to that.
Senator Casey. But you agree it is a problem?
Mr. Carbone. I agree it is a problem, but I do think it can
be corrected. Again, I think it has to do with the leadership
of the workforce investment board, getting agencies to really
collaborate.
I gave a couple of examples when I spoke earlier----
Senator Casey. In your testimony, right.
Mr. Carbone [continuing]. About two entities of the State
of Connecticut that serve people with disabilities. Very
important to us. They actually spend a day, a week at our
center. Several other agencies, including the Goodwill and
others, have a seat at the table at our One-Stop system.
They are brought in. They are not there 5 days a week all
day, but they are brought in at particular times. The case
counselors, the managers of the activities there, know exactly
what everybody does, when they are going to be there, and we
try to coordinate and take advantage of every program that is
offered.
Senator Casey. Do you call it case conferencing?
Mr. Carbone. Yes, case conferencing means with the State of
Connecticut, in order to give assistance to a person with
disabilities, it is on a most in need kind of a basis. A
discussion between the counselors from the State and the
counselors at the One-Stop about what is the most in need at
this moment is important. That conversation keeps the State
entities tied to the One-Stop.
Both of those State entities actually spend a full day a
week each at the One-Stop. So everybody knows each other.
Everybody does work together. There is not conflict here. There
doesn't need to be.
Now there are a host of other private not-for-profits that
offer services to people with disabilities. As I stated in my
testimony, we have received a number of special competitive
grants to serve people with disabilities. We actually have a
disability service center at our comprehensive One-Stop in
Bridgeport.
Again, you need extra dollars beyond the formula dollars in
order to be able to more adequately serve people with
disabilities. From the One-Stop, that is exactly where it is
supposed to be. Under the purest sense, people are supposed to
be able to go to that one location and not just get help with
career, but whatever supportive services are needed to be
successful in that endeavor.
It is incumbent upon the regions to bring together that
partnership. Even if they are not there in person, for the
counselors to know what they can do, who does it, how it is
done, and to involve our case counselors with that entity. That
is exactly what the purpose of One-Stops were when the
Workforce Investment Act was passed some 12 years ago.
Senator Casey. I know we have to wrap up. Ms. Feldman, do
you have a comment?
Ms. Feldman. Just a quick one. I also think we should
recognize the disability advocates. In Pennsylvania, we have
the Centers for Independent Living.
Senator Casey. Yes.
Ms. Feldman. I don't think that we are really moving in the
right direction by not having them at the table as part of the
solution. They are on the outside looking in. I would say that
there is great opportunity and potential to bring them to the
table and really work together as partners as to how to address
the issues.
Because they have their own workforce programs also that
they initiate on their own, but if it is not part of the WIB
system or the WIA system, it is not being recognized when there
are some really exciting things happening. I would say that we
need to focus on this from the perspective that they need to be
at the table, driving this agenda.
Senator Casey. OK. Before they kick us out of here, I
better wrap up. I wanted to make a comment that may elicit
written responses just in the interest of time. What I want to
end with is what I might call a lightning round. Everybody has
20 seconds to make their 20-second message on what we should
do, providing us the kind of guidance that we need for specific
changes during reauthorization to make the act better.
I know it is hard to do it in 20 seconds, but if you can
just make one quick point. Before we do that, this is something
you may want to followup on in writing, or we may want to
develop further at another hearing. One of the problems that we
have in Washington is that we pass major pieces of legislation
over time, and sometimes they are not integrated. There is not
a seamless integration or a coordination or a strategic focus
to major pieces of legislation.
I will give you one example that may elicit some written
commentary. We are in the midst of talking about reauthorizing
the Workforce Investment Act. A couple of years ago, we passed
the America Competes Act, which has, as many, almost everybody
in the room knows, has as its central focus, for example, the
STEM disciplines--science, technology, engineering, math.
We are just beginning, through funding and the Obama
administration's focus on this, beginning not just to fund it
and make it a priority, but we have to think about
strategically how do you make those two massive pieces of
legislation work together? I am not sure that has been thought
through, and if it has, it hasn't been emphasized enough. Think
about that as you provide further guidance.
Let me go from right to left, Mr. Templin, for your 20-
second message on what we should do on reauthorization?
Mr. Templin. Sector strategies work. Community colleges can
and should be one of the hubs of any workforce system, and we
need to incentivize training that moves beyond entry level and
moves toward a post-secondary credential.
Senator Casey. Thank you.
Ms. Feldman.
Ms. Feldman. Sector strategies work. I also believe that
labor-management partnerships need to be considered as a huge
resource to build capacity within the sector strategies, that
we need to break down the silos between literacy and workforce
development and fund literacy. We need the opportunity to build
the stackable credentials connected to college credits that
give credit for technical training, moving into collegiate
training, and producing portable skills.
Senator Casey. Thank you.
Mr. Stalknecht.
Mr. Stalknecht. I would say to try to help change the
messaging in this country that skilled trades offer tremendous
opportunities for jobs and future growth and career paths to
entrepreneurialism and business ownership. It would be about
that. And yes, the cooperation with the sectors, business
sectors is very, very important for the future workforce
development.
Senator Casey. Thank you.
Mr. Carbone.
Mr. Carbone. All of these wonderful ideas and wonderful
programs and certainly worthy programs will eventually make
their way down to the local delivery level. Let us not ignore
it. Let us provide the incentives in the act to encourage every
State to make them robust, exciting, interesting, and
enterprising institutions.
Senator Casey. Thank you.
Mr. Carnevale.
Mr. Carnevale. I would emphasize that the real challenge
here is integrating these different systems. Bob Templin
represents community colleges and the post-secondary system. In
a sense, it is a carrier. It is several hundred billion dollars
in public money.
The workforce investment system is four. If we fund it at
the level we funded it in 1979, it would be 25. It is a small
institution. Essentially, what it can do that has the highest
return is leverage the big institutions. If you can use the
workforce investment system to get the education system, the
disability apparatus, all the other big ships of the line
focused on jobs, that is where my bias is, that we should use
this money for building capacity, not for services directly,
frankly.
Senator Casey. Well, thank you very much.
Let me just say for the record that the record will remain
open for more written commentary or both from our witnesses and
from individual Senators. Unless you don't want your testimony
to be part of the record, it will be made part of the record.
Some were doing summaries of your statements. We want to make
sure that you know that your whole statement will be in the
record.
That goes for Senators as well.
Senator Casey. Unless there is nothing further, this
hearing is adjourned.
[Additional material follows.]
ADDITIONAL MATERIAL
Prepared Statement of Senator Dodd
Mr. Chairman, I want to thank you for holding this hearing,
and for your leadership on the Workforce Investment Act
reauthorization.
We all know that our unemployment rate is unacceptably
high. Too many people have lost their jobs, have been unable to
find work, have simply given up. These are good workers,
talented and dedicated, and just as their families are
suffering from the loss of the income that accompanies a good
job, so too is our Nation suffering from the loss of their
productivity.
In my State of Connecticut, we are seeing more clearly than
ever that our economy is changing. Many of the industries that
built Connecticut's prosperity during the 20th century are in
decline, a fact sadly driven home with every plant that closes
and every blue-collar job that is lost.
The sad but unavoidable truth is that many of those jobs
aren't coming back. But that doesn't mean Connecticut's economy
can't rebound. And it doesn't mean these workers can't
contribute.
In fact, America needs those workers back on the job if
we're to remain on top in an increasingly competitive global
economy. That means we must empower our businesses--and we must
empower our workforce. And there is no better way to do that
than through job training.
American workers are the best in the world when equipped
with the knowledge and training to take on the jobs of the 21st
century.
And today, I'm proud that we're joined by a man who knows
that better than anyone.
Joe Carbone is the President and CEO of The WorkPlace,
Inc., a 26-year old non-profit that serves as the Workforce
Investment Board in southern Connecticut.
Through its innovative use of career coaching, training,
education, and counseling programs, the WorkPlace has carefully
managed more than $200 million in public funds and helped tens
of thousands of people in Connecticut reach for better jobs and
better lives.
The success of the WorkPlace stems from its work to bring
together Federal agencies, State government, and the private
sector. It is that kind of cooperation and commitment that will
be critical as we seek to get our economy back on track and put
people back to work.
I'm proud to have Joe here today and look forward to
hearing his thoughts on how we can replicate his successful
model across the country.
Thank you.
Prepared Statement of Senator Murray
Thank you Chairman Harkin and Senator Enzi for calling this
very important hearing today.
Personally, I can't remember a more important time than
right now for our workforce investment system.
Our worker training system is the place they can turn to
help get a leg up--the place where workers can obtain new
skills or increase their education levels to get and keep
permanent, family-wage jobs.
And the value of our workforce system has only increased as
our economy has changed.
That's because, as I have seen when traveling to many of
the new high-tech manufacturing plants and growing industries
in my home State--the needs of our employers have fundamentally
shifted.
Today the skill sets needed by employers that are actually
expanding and hiring increasingly require at least 1 year of
post-secondary training or education, and a degree,
certificate, or credential that has real value in the labor
market.
So it's very clear today that we have an obligation as a
nation to improve the systems and services these workers rely
on for their continuing education and training.
We need to ensure that as demand on our workforce system
rises due to this recession, we are also building our workforce
system to handle the strain.
And it's abundantly clear that demand is growing. In fact,
over the past 3 years the number of adults served by our
workforce system has increased by 200 percent; increasing from
1.7 million in 2006 to 5.2 million in 2008.
Reauthorizing WIA is only the first step that is necessary
to improve our Nation's workforce development system and meet
this growing challenge--but it is a critical one. And it comes
at a critical time.
So I'm glad that we have put together such a wide ranging
panel and I really look forward to a productive discussion on
how we can best strengthen our workforce system to meet the new
realities our job seekers face.
Prepared Statement of Senator Bennet
I would like to thank Chairman Harkin and Ranking Member
Enzi for holding this hearing and their efforts to reauthorize
the Workforce Investment Act. Reauthorization of WIA must be a
key part of our economic recovery. Too many workers are either
out of work or are underemployed. These workers need a
workforce development system that is accessible and enables
them to get back on their feet. Beyond these workers, though,
all workers need a workforce development system that provides
them the opportunity to obtain the skills for upward mobility.
The economic realities of today mean that education must not
stop at the school house door, but be a lifelong experience.
We will struggle to compete in the global economy if we do
not update our current system to fit the needs of our economy.
It is necessary that we make sure that American workers have
the skills to take on jobs in emerging industries such as clean
energy, health care and technology. In my State of Colorado, 49
percent of workers are middle skilled--meaning that these
workers are in jobs that require more than a high school
degree, but less than a 4-year degree.
Whether it is reforming the current workforce development
system or finding new ways to connect workers to the skills
sought by emerging sectors, there needs to be a sustained
effort to train and retrain these workers. We also need to look
more broadly at our education system to make sure we are
connecting our youth to the skills demanded by business.
Last month, I held a ``Putting Colorado to Work Jobs
Forum.'' This Forum brought together key leaders from business,
labor, the State workforce development system and academia to
discuss how to grow the Colorado economy. One of our most
important roundtables focused on workforce training. We had
participants from across the State share best practices and
offer suggestions for reaching both employed and unemployed
workers in need of training. This helped provide both an urban
and rural perspective of what the State and local communities
are currently doing to train workers, as well as offer
suggestions for how to improve workforce training.
Two key takeaways from this conversation were the need to
have a workforce development system that is flexible and
improve engagement with business. We need flexibility because
the types of jobs being created in the State require different
skills than 10 years ago. The system also needs to be flexible
in terms of the types of workers being trained. There is a
growing number of English language learners in our workforce.
We need to be make sure we are reaching these workers and
providing training responsive to their needs. We also need to
have small businesses at the table collaborating on how best to
train their current and future workers. Small business is the
driver of our economy. Engaging small business will help drive
results since business owners understand best what skills are
in demand. This will also help to connect workers being trained
with jobs that are available.
Our economy is changing and the skills required to compete
are evolving. It is my hope that today's testimony and future
conversations focused on the reauthorization of the Workforce
Investment Act are centered on this. My staff has provided a
list of my priorities to the committee that I hope to see
included in a reauthorization. I look forward to future
conversations about how we can move this legislation forward.
Prepared Statement of Senator Hagan
Thank you, Mr. Chairman, for holding this hearing, and
thank you to all of the witnesses. I am thrilled to have the
opportunity to be here and to talk about this critical piece of
legislation.
North Carolina, like many States, is seeing some of the
highest unemployment rates we've ever seen--in fact, we hit a
new record high rate of 11.2 percent this past December. My No.
1 focus right now is jobs, jobs, jobs, and a critical piece of
the solution is workforce training. I think my State has a few
advantages--we have one of the best community college systems
in the country, the businesses in our State are active players
in the workforce system, and all of the stakeholders are coming
together to make sure that we are doing everything we can to
invigorate our economy, equip our workers with the skills they
need, and make our State a great place to do business, However,
we still have a long road ahead, and reauthorizing and updating
the Workforce Investment Act will be an important step along
that path.
I am looking forward to hearing more about how we can
improve delivery of services, help dislocated and underemployed
workers update their skill sets, and better streamline and
integrate the various pieces of the Workforce Investment Act,
from assistance for dislocated workers, to adult education
workers with disabilities to youth training programs. I also
look forward to supporting the great work that is already being
done in my State, and providing the resources, flexibility and
accountability so we can continue to attract innovative
businesses and workers.
Response by Anthony Carnevale to Questions of Senator Harkin, Senator
Enzi, Senator Murray, Senator Reed, Senator Brown, Senator Hagan, and
Senator Bennet
questions of senator harkin
Question 1. In your testimony you indicate that 64 percent of job
openings between 2008 and 2018 will require at least some post-
secondary education. What is the single most important change we can
make to the act during reauthorization to ensure that our young people
are prepared for these jobs?
Answer 1. WIA and post-secondary education and training programs
tends to operate as if the Internet was never invented. The most
important thing to do is to create internet-based information and
counseling systems capability that connects job openings, job
projections and career pathway to post-secondary education and
training. With this information in hand we could provide useful
information and counseling. The information required exists in a
variety of government agencies but no one has connected the dots
between the information and the people who need it. To do so will
require a major culture change in the executive and legislative
branches that can overcome the governmental silos.
The required information already exists, like books in the library
existed prior to the age of the Internet. If you know where to go and
are skilled in using the information, then you can get it, but if not
you are out of luck. It is not simply a matter of connecting the dots
in the information across institutional and cultural boundaries; it is
also about creating a user friendly internet-based dashboard usable to
individuals at home, in libraries, and a wide variety of government
agencies, CBO's, private employers and education institutions that are
interested in jobs and skill requirements.
Like most information and service systems connected to computer
technology at your bank machine or on Internet, the core efficiency
improvements comes from the interaction of the technology and the tools
attached to it in combination with the participation of the consumer.
WIA is way too small and isolated to provide real counseling and
other intermediary services that connects people to jobs and skill
upgrading. The only real affordable alternative is to bring information
and counseling services to the public online.
(1) We could provide the information and counseling necessary to
help those looking for jobs to find the jobs that are open as well as
target jobs that are likely to be open in the future.
Currently there are roughly 3,000,000 job openings every day in the
United States both in particular industries like healthcare due to
industry growth and across a much broader array of industries because
of retirements and other reasons that cause people to withdraw from an
occupation. The number of daily job openings will grow to 7,000,000 per
day within 5 years as the recovery proceeds.
(2) An information and counseling system that helps those who have
lost good jobs or cannot find one to expand their job search beyond
their geographic boundaries and the personal and occupational networks
available to them.
(3) An information and counseling system that helps people discern
the marginal value of additional post-secondary education or training
for improving their economic prospects.
(4) An information and counseling system that matches post-
secondary education and training curriculums to job openings and viable
career pathways. It should also make available information about public
funding for their education and training.
(5) A system that ties wage data to education and training programs
and also allows education and training program providers to figure out
if their programs are generating earnings and employment. Real-time job
openings data would also tell providers what occupations are in demand
and what certificates, industry certifications and degrees are
requested by job advertisements.
We do not have this information and counseling system at present.
The information is, for the most part, available but has never been
integrated or assembled in easily accessible online formats.
States and One-Stops do have job openings data as
submitted by employers but their job openings information is generally
incomplete and varies in quality and accessibility. More complete data
on job openings is available. Federal regulations give employers an EEO
and a Federal contracting check-off if they submit full openings data
to Job Central in Indianapolis, IN. Many but not most States ``scrape''
job openings from online Web sites. No States have tied this job
openings data to post-secondary education and training curriculums
using student transcripts or other curriculum data sources.
Since the 1930's, every State has wage records data but
very few (e.g. Florida, Washington State) have tied wage records to
post-secondary certificates and degrees.
More than 60 million people have applied for UI during this
recession and only a small portion have ever spoken with a real person.
We cannot afford traditional counseling as it exists, and particularly
personal counseling that offers the kind of state-of-the-art
information I am describing here. Person-to-person counseling, whether
face-to-face or over the Internet on Skype, is labor intensive. We
already face a huge counseling deficit in our K-12 system, and jobs and
skill development counseling, for all practical purposes, is non-
existent for adults.
The need for these information and counseling capabilities is more
necessary as the pace of economic change increase and we move through
the greatest restructuring of the economy and employer/employee work
relationships since the shift from agriculture to industry a century
ago.
Evidence of the need for these kinds of capabilities is already
evident in the rapid development of private sector capabilities in
response to the increasing churn in the job market. But these service
capabilities are still relatively primitive in the public domain. The
private economy has already been investing in these capabilities for
some time. The fee-based employment services industry including
employment placement agencies, temporary help services, and
professional employer organizations is already a $208 billion industry
and is projected to grow by another $90 billion over the next decade as
demand for temporary help grows at every skill level.
There are a variety of online job boards like Monster,
CareerBuilder, etc. However, these only include a small share of job
openings and do not come with any tools to match individual skills and
experience to jobs, to match available education and training to jobs
or to provide information on earnings, occupational skills, skill
assessments or projections. Nor do the business models in these private
job boards allow for development of these tools or access to them for
people who cannot afford to pay.
Question 2. Iowa has lost more than 60,000 jobs in the last 2
years--mostly in the manufacturing sector. Many of the new job
opportunities require workers to upgrade and advance their education
and employment skills. How can the reauthorization of the Workforce
Investment Act be used to encourage and support individuals seeking to
obtain and advance in 21st century careers?
Answer 2. Iowa, like many States, suffers from a decline in the
manufacturing and natural resource industries. But it is important to
note that there will continue to be job openings in both of these
industries. In the next decade there will be job openings for
manufacturing and natural resource workers due to the retirement and
advanced age of current workers. With the exception of coal, which will
grow, all openings in these industries will come from retirement.
Ultimately, the number of jobs in manufacturing and natural
resources will decline. Along with construction and finance,
manufacturing jobs have taken the hardest hits in the recession and
will come back strong. In the first years of the recovery job growth in
manufacturing, like other hard hit industries, will appear promising.
To some extent, though, the recovery in these industries is a false
dawn. With the exception of finance, these industries will continue to
decline in employment and certainly as a share of overall employment
due to productivity growth within the industries themselves.
True job growth in the next decade will come in high skill services
industries with relatively high post-secondary education requirements.
Post-Secondary education will lead growth in both industries and
occupations between 2008 and 2018.
With the exception of Leisure and Hospitality Services,
the fastest growing industries have the highest concentrations of post-
secondary education demand. At least 75 percent of employees in five of
the six fastest growing industries require post-secondary education or
training.\1\ These five industries include 40 percent of all employment
in 2018.
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\1\ The six fastest growing clusters and their post-secondary
concentrations include: Healthcare Services (75 percent), Private
Educational Services (86 percent), Professional and Business Services,
Leisure and Hospitality (46 percent), Financial Services (82 percent)
and Information Services (92 percent).
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With the exception of Healthcare Support Occupations, the
fastest growing occupational groups also have the highest
concentrations of post-secondary education demand. Roughly 90 percent
of the jobs in four of the five fastest growing occupations require
post-secondary education.\2\
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\2\ The six fastest growing occupation clusters and their post-
secondary concentrations include: Healthcare Support (53 percent),
Healthcare Professional and Technical Occupations (93 percent),
Education (93 percent), STEM (90 percent) and Community Services and
the Arts (89 percent).
As a result of these shifts, by the end of the recession, we will
need more post-secondary education and training for adults whose jobs
in these industries have been lost, adults who will have to change
their industry, and probably their occupation. The best and cheapest
way to provide this, is, as I stated in my testimony, is by sponsoring
compressed and accelerated programs for certificates in high-demand
occupations. These programs will cut more than a year from normal
---------------------------------------------------------------------------
educational programs and grant certificates with labor-market value.
Question 3. Can you explain further how ``siloing'' hurts the
workforce investment system's ability to leverage resources and
strengthen supports for job seekers and employers. How do you propose
we break down these silos through reauthorization? How can One-Stops
more effectively serve the increasing numbers of individuals seeking
education and employment services and supports? What strategies have
successful One-Stops employed to meet increased needs?
Answer 3. Because of its market flexibility the American economy
has always created and destroyed jobs faster than any other. This
flexibility is clearly an enormous part of our international
competitive advantage and needs to be preserved. The job churning that
comes with that flexibility has been accelerating since the eighties
because of the fundamental structural changes that come with the shift
from a manufacturing economy to a post-industrial services economy. The
basic mechanism at work is advancing computer technology, which
automates repetitive tasks and increases the value of non repetitive
functions in all jobs. Jobs with high levels of non-repetitive tasks
are growing and jobs dominated by repetitive tasks are declining. The
value-added from non-repetitive jobs like design, management, finance,
marketing, professional and business services is growing.
The iPod is an example of a product where less than 5 percent of
the cost and value comes from manufacturing and the rest of the value
and cost comes from service occupations.
Non-repetitive tasks create two kinds of jobs: low-wage service
jobs like fast food servers and waiters and high-wage service jobs like
designers and brain surgeons. Similarly, non-repetitive tasks create
demand for high-level and low-level general skills. Brain surgeons and
food servers at fast food outlets both perform non-repetitive tasks. So
the two kinds of jobs that survive computer automation and ``off-
shoring'' are low-wage/low-skill jobs that require high school or less
and high wage high skill jobs that require varying degrees of post-
secondary education or training.
As a result education has become employment policy. Our problem is
that the alignment between our post-secondary education institutions
and our labor markets is very weak. Our institutional silos and our
politics make it very hard to align education policy, most importantly
post-secondary education policy, with employment.
Prior to the information and Internet revolution we might have
tried to force this alignment by eliminating the Department of Labor
and the Department of Education and combining them into a Department of
Human Resources. This was a hot proposal in the early seventies
originating with the Nixon administration and supported by many members
of the Senate who wanted a stronger focus on human resources, including
my old boss Ed Muskie. But this is a bad idea for many reasons as well
as a political stomach ache.
In modern times we can better align our post-secondary education
and training system with labor markets by using information and outcome
standards rather than governmental reorganization. It is this kind of
information system I have discussed above and referred to in my
testimony.
We do not want the education system enslaved to the economy.
Education has more missions than making good workers for the economy;
those other missions need to be preserved and supported. At the same
time, however, in the knowledge economy, education is the only
institution we have for preparing people for middle class jobs.
Furthermore, people with no access to middle class jobs, especially
those who become unemployed or chronically underemployed, find it very
difficult to be good citizens, good parents, or good neighbors.
Consequently, if educators don't empower people as workers they
undermine their mission to empower their student as autonomous
individuals, citizens and full members of the community.
It is increasingly obvious that we cannot afford a universal post-
secondary education and training system at the current costs of our
post-secondary system. We need to build education programs that move
working students and adults into good jobs as efficiently as possible.
This is why I recommend:
Structured ``learn and earn'' programs like
apprenticeship, structured work experience, as well as paid internships
and paid work study programs for students;
Credentialed learning that leads to both employability and
further learning;
Compressed and accelerated occupational training programs
that provide credit for prior learning (CPL), integrate basic skills
preparation with fast and intensive occupational training, leading to
post-secondary certificates with clearly demonstrated labor-market
value;
Modular programs that allow for exit and re-entry and
create transparent pathways among certificates, industry based
certifications, and degrees;
The development of blended forms of instruction that mix
online, work-based and classroom learning;
Job and skill counseling for unemployed and underemployed
experienced workers and working students tied to state-of-the-art
information on earnings trajectories and career pathways;
The provision of family support including child care;
Accountability systems for maximizing the labor-market
value of post-secondary education and training programs by tying post-
secondary transcript data with employer wage records data currently
housed in the U.S. Employment Services; and
Alignment between statewide, regional and nationwide
online job boards (Job Exchanges) tied to (Learning Exchanges) that
match job openings and career pathways to available courses offered by
post-secondary institutions as well as online courseware.
In addition to these program interventions for adults and post-
secondary students who are working, there is also a need to revive
Career and Technical Education programs at the high school level as
alternative pathways to post-secondary education and training or to
industry-based certificates and certifications that make students
employable after high school.
Question 4. In your testimony, you said that recessions ``kill-off
'' low-skill jobs, changing the labor market more than in times of
economic growth. Going forward, what will the current recession mean
for youth, and especially youth with disabilities, who have
traditionally relied on low-skill jobs? How can the act be improved to
better support this population?
Answer 4. One of the ironies in the current American labor market
is that more advantaged a youth is, the more likely he or she will be
able to find work in part because they live in the communities where
the retail jobs are concentrated. The labor market for disadvantaged
youth and youth with disabilities has been in decline for decades. In
order to give them access to work experience and career ladders we need
to do so with highly targeted and structured programs that would
provide subsidies and ``learn and earn'' curriculums leading to stable
employment.
In general, however, youth, including disabled youth face a labor
market where success will depend on their ability to stay in school
through high school and to get at least some post-secondary education.
All youth programs need to be guided by that developmental imperative.
In the current recession with so many college graduates out of
work, young people, and many adults, understandably believe that post-
secondary education is no longer a ticket to the middle class. They
couldn't be more wrong.
Adults need to help young people to understand that increasingly
post-secondary education and training has become the threshold
requirement for middle class jobs. And the future promises more of the
same.
Our projections show that in 2018 there will be 162
million jobs. One-hundred one million of those jobs, representing 64
percent of all jobs will require
post-secondary education including:
16 million jobs for people with graduate degrees;
37 million jobs for people with BA degrees;
20 million jobs for people with AA's;
28 million jobs for people with some college but no
degree;
13 million jobs for people with post-secondary
certificates;
44 million jobs for High School Graduates; and
16 million jobs for high school dropouts.
Our projections forecast that between 2008 and 2018, the economy
will create 47 million job openings: job vacancies, 14 million new
jobs, and 33 million job openings to replace retiring baby boomers and
others who leave occupations permanently. Job openings that require at
least some post-secondary education or training will make up 64 percent
of all job openings and will include the majority of long-term career
jobs. We project a cumulative increase of:
5 million more job openings for people with Master's
Degrees or better;
11 million more job openings for people with Bachelor's
Degrees;
14 million job openings for people with some college or
AA's;
15 million job openings for people with post-secondary
Certificates \3\;
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\3\ There is undoubtedly double counting of certificates because
many certificate holders are also reported as having ``some college but
no degree.''
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17 million jobs for people with high school or less.\4\
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\4\ Job openings that require only high school or less tend to be
over-counted because many of them are in low-wage service occupations
and industries with large shares of part-time jobs or jobs with very
high turnover. Low-wage service jobs account for about 20 percent of
the jobs but only 14 percent of the hours worked in the economy. Many
workers in these jobs are just passing through low-wage/low-skill jobs
as part of a natural career progression. Jobs that require post-
secondary education or training are more likely to be career jobs.
There are many more brain surgeons who used to be cashiers than there
are cashiers who used to be brain surgeons, but the statistics tend to
treat the two jobs equally. For example, for every new job for cashiers
that will open up between 2008 and 2018, there will be another 13 job
openings to replace people who leave the cashier occupation. By way of
contrast, for every new job for physicians there will only be 0.8 job
openings to fill the jobs of physicians who leave the occupation.
Roughly half the workers in low-skill/low-wage occupations move into
higher wage categories within 5 years. Ultimately about 11 percent of
Americans are stuck in low-wage/low-skill jobs.
Question 5. How can technology improve the workforce system? Have
you seen any promising examples of technology helping the system reach
new populations?
Answer 5. In current dollars the workforce system was funded at
about $25 billion in 1979 and is currently funded at less than $4.0
billion. If anything, the need for workforce information and counseling
has grown as the funding has declined. The only way to make the
workforce system effective at matching people to jobs and the skill
they need to get those jobs is through information technology.
Technology allows a different service delivery model. It reduces the
labor intensity of providing services and empowers the client to
customize the service to themselves. Technology reduces the need to
provide services and enables people to serve themselves. It is the only
way workforce services can be scaled up dramatically, given current and
emerging funding constraints.
Promising examples of public systems that approach state-of-the-art
are the use of advanced job boards in New Jersey and New York, and
there are also many others.
We desperately need public investment in the development of
internet-based public information and counseling systems that connect
job openings to careers and training opportunities. Developing an
effective system on the national level would be a remarkably low-cost
venture, costing no more than $15 million to build basic capabilities
that could be used by State and local governments, post-secondary
education and training institutions, community-based organizations, the
military, and assistance programs for individuals with disabilities.
questions of senator enzi
Question 1. Many of today's workers are working in jobs that did
not exist 5 years ago. How can the education and workforce development
system prepare workers to be successful and advance in jobs that
haven't yet been created?
Answer 1. Current capacity to project and predict job growth and
skills requirements goes far beyond current government practices or
their use in or One-Stops or educational institutions. The primary
reason we do a poor job of connecting skill training to jobs is that
training resides in education agencies and labor-market services
resides in the DOL. As a result, for example, neither the DOE nor the
BLS projects the relationship between emerging jobs and skill
requirements. The BLS, for example holds education and training
constant in its employment projections. This makes them consistently
low in measuring education and skill demand. Their 2008 data for
example understates post-secondary demand by almost 13 million jobs,
compared with the actual number as measured by the Census Bureau.
We know quite a bit about where jobs will and will not be. Because
of advances in computer technology that allow us to scrape job
advertisements and employer Web sites across the economy we can read
and aggregate job openings and qualifications requested across the
economy on a daily basis for well over 80 percent of all job openings.
This information is being used in the private sector for a variety of
purposes, but public agencies show little interest in developing it as
a basic foundation for a modern Labor Exchange or to guide training.
We also know more about jobs that will be available in the near
future because of data improvements. We know, for example, that jobs
will decline in manufacturing and natural resources. We know in some
detail about the coming job growth in health care as well as
professional and business services. Our failure has been our
inattention to building information systems that tie training to the
employer wage records that have been in existence since the 1930s. One
approach is connecting wage records to transcripts in order to connect
education to jobs that exist and those who pay. And the second is to do
a lot more serious work connecting job openings to the labor market and
to job seekers through information systems.
Question 2. Given the economic downturn and high unemployment
rates, many more individuals are seeking services offered through One-
Stops. How can One-Stops more efficiently serve the growing numbers of
people who need education and job training in order to be prepared for
the jobs that will be available when the economy returns? What
strategies have successful One-Stops used to make sure the demand from
both workers and employers is met?
Answer 2. The great deficit in the American workforce development
system is twofold. The first is information, and the second is
counseling. Given the size of the WIA system, it is simply not possible
to provide all the counseling required by unemployed and underemployed
workers or to fulfill the needs of employers. We will never have enough
money to provide sufficient counseling. The way forward is using
technology, not face-to-face advising, and to use technology to triage
populations and reserve the advising for those most in need, and those
unable to find employment through the use of information alone.
Systems that have relied on more labor-intensive counseling
strategies have collapsed under the weight of this recession.
Therefore, emerging best practices all begin with a core investment in
internet-based information and technology.
Question 3. The labor market is demanding increased academic and
technical skills. Employers are looking for formal recognized academic
and technical credentials such as a high school diploma, an Associate's
degree, and industry-recognized certifications. With this in mind: Is
there need to change the outcome measures for WIA? Should there be more
weight on completion and credentials and less on placement and wages?
Is the system capable of delivering these outcomes?
Answer 3. Currently the WIA system is based on placement outcomes.
Measures of outcome should be value-added measures, meaning that all
measures of success should focus on employment and earnings. In
general, however, the message in the growing importance of post-
secondary education and training as the arbiter of opportunity is that
we need to integrate labor market and post-secondary education
services.
It would be a mistake to develop a system based on certificates for
certificates' sake. Certificates have no value unless they result in
increased employability. The best composite measure of success will
measure improvement in person's prospects relative to their initial
circumstances. This approach would discourage counselors from
practicing ``cream-skimming'' by which they take the most employable
and find them placements, and instead encourage them to help those who
need the most help and can benefit the most from that additional
attention.
questions of senator murray
Question 1. As you discuss in your testimony, if current trends in
education and workforce development continue, even with robust job
growth over the coming years, we will fall short of meeting the demand
by at least 3 million college-educated Americans, and a growing share
of Americans will be left behind with no access to the middle class.
What, in your opinion, is the single most important step we can
take at the Federal level to change these trends and make sure we have
the skilled workforce necessary to meet emerging needs?
Answer 1. In simplest terms, the most effective strategy is to
align post-secondary education and training with employment services
and labor markets. Presently there is no accountability system tying
curriculums to wage records and other measures of employability. As a
result, curriculums are not built on a view towards matching
curriculums with job openings in occupations and occupation clusters.
Question 2. As Congress considers reauthorization of the Workforce
Investment Act and other education, training, and employment policies,
what are your recommendations for common accountability elements that
demonstrate the labor-market value of post-secondary education and
training programs?
Answer 2. The simplest and most immediately available way is to
connect
post-secondary education and training with post-secondary transcripts
and wage records available on a quarterly basis both nationally and
from every labor market in the country.
questions of senator reed
Question 1. There are more than 16,000 public libraries in the
United States, most of which provide job/career information and
resources, such as access to computers so that patrons can search for
jobs and file for government services such as unemployment benefits;
take classes on resume writing; and access business databases. In the
economic downturn, libraries are a community resource increasingly in
demand, especially by those who are unemployed.
How can we better integrate libraries into our workforce system so
that they receive the support they need to continue providing these
services to the public?
Answer 1. All libraries, along with public and private institutions
and even private homes should share in the common internet-based
information systems discussed in my initial response above.
The FCC Broadband initiative is one advance that could help break
down program silos, increasing points of contact so that every American
can access the tools they need to connect to the job market. However,
this program can only be as effective at promoting employment as the
jobs-focused information sources we develop.
Question 2. There is evidence that the unemployed are opting to use
their local library for services that the One-Stops are designed to
provide due to location or other reasons. One-Stops are also referring
users to libraries for job assistance or collaborating with libraries
to provide help to job seekers, such as in North Carolina.
How can we support and expand these collaborations? Would co-
locating One-Stops within libraries better serve job seekers?
Answer 2. The institutions should not be moved. The information and
the counseling should be available to the people who need it, wherever
they are. The information, the exchanges and the overall information
systems discussed above should be developed and should be made publicly
available through the Internet, to private homes, post-secondary
institutions and libraries alike.
question of senator brown
Question. In your testimony, you state that 64 percent of job
openings between 2008 and 2018 will require at least some post-
secondary education. However, the National Commission on Adult Literacy
has reported that 80-90 million adults do not have the basic education
and communication skills required for post-secondary education or
family sustaining jobs. Our adult education programs funded through WIA
reach only 3 million adults annually? How do we close that enormous
gap?
Answer. Given the limits on public resources, the best use of adult
education funding is a part of occupationally based training programs.
Too often, basic skills and adult education programs focus on academic
curriculums in reading and math that can discourage potential
participants. The state-of-the-art in this arena is in integrating
basic skills preparation with occupational training or upgrading. Given
existing resources, this should be the priority.
questions of senator hagan
Question 1. Research shows that every 9 seconds in America, a
student becomes a dropout. That being said, I believe that as we
consider President Obama's challenge for our country--to gain an
additional 5 million community college degrees and certificates by
2020, it is critical to consider the role in which community colleges
can play in reconnecting dropouts to the workforce. There is evidence
that many GED recipients get their GED and just stop there. They do not
recognize the value of or even think that they have the option of
obtaining an Associates or even a 4-year degree. What are your thoughts
on ways that we can support young adults who have dropped out of school
to not only get a GED, but to understand how important it is to obtain
a post-secondary degree?
Answer 1. The primary way to get people interested in post-
secondary education and training is tying it to opportunities for
better jobs. We can encourage young adults to stay in the education
system by tying job openings and career pathways in very explicit ways
to compressed post-secondary curriculums that will move people toward
certificates and degrees with a clear, measurable labor-market value as
quickly as possible.
Question 2. North Carolina needs and wants to expand its training
abilities for jobs that require a working knowledge of modern machines
and programs, such as health care and advanced manufacturing.
Unfortunately, it's also much more expensive to equip a facility to
train those workers versus workers who do not need to be familiar with
such expensive equipment--for example, it can be up to 50 percent more
expensive to train someone in the field of health care. Can you share
any thoughts about how we can help States pay for this kind of
equipment and facilities when necessary to train workers to meet the
needs of local businesses? Have other States confronted this issue, and
if so, what are the lessons we've learned?
Answer 2. For the most part, post-secondary institutions are funded
on the basis of their full-time equivalent (FTE) students, and most
programs and the students who participate in them are treated as though
they were the same. As a result, post-secondary institutions are
encouraged to move students through the lowest-cost and most
traditional programs. In general this encourages academic AA degrees
with less labor-market value rather than occupational AA's or
Certificates in high-demand fields. Those programs do not match with
employment opportunities. We need funding systems that move beyond the
FTE-centric one that weigh student loads against the costs of different
programs, and as needed, provide additional funding to those that
require more expensive labs, personnel, etc. Some States do weight
programs differently, but it is a relatively small number, and this
practice is going out of vogue due to the recession and funding cuts.
Question 3. While the One-Stop system appears to have the very best
intentions, my State has found it difficult to offer services in all
rural locations at all times. Some of the entities that are located at
a One-Stop center might only be available certain hours of the day or
certain days of the week. Some people in our State have started to
offer virtual services to increase the availability in rural areas, and
the option has been met with positive feedback thus far. Have virtual
One-Stops been attempted elsewhere in the country? If so, have they
been successful? What are the lessons or guidance for Congress so we
can encourage more innovation like this, either virtual programs or
otherwise, with the goal of increasing availability to job seekers,
particularly in rural areas?
Answer 3. The use of information technology, satellite systems and
distance learning programs are growing very rapidly in rural areas,
particularly where in-person job and educational counseling systems are
relatively rare. The great leap forward will be providing these
services on the Internet, so that individuals will not have to travel
long distances to counseling centers or locations with satellite
hookups.
questions of senator bennet
Question 1. What role can business play in furthering workforce
development? Are there on the ground examples of private sector
initiatives that have helped to close skill gaps in our economy? Where
do you think the law can be improved to foster more partnerships
between business and workforce development providers? What are some
ways that the private sector, government, non-profits and labor can
partner in the development of our workforce?
Answer 1. The most effective training programs are those that
combine learning in classrooms with learning on the job. There are ways
to promote these. Apprenticeship programs are the most intensive models
of this kind. One way to promote these kinds of partnerships is by
encouraging apprenticeship programs to use community colleges in order
to get certification for skills learned at the workplace. Another
alternative is to use work study money to pay for ``learn-and-earn''
programs, including internships in the private sectors.
Given the coming retirement boom among the baby boomer generation,
over the next decade employers will have to hire 33 million more
workers. As retirements mount, this should create an opportunity to
fill skill shortages. There is a clear need to align post-secondary
curriculums with present and future workforce needs. Employers should
play a clear goal in providing labor-market information to help form
education and training policy and shape curriculums.
Question 2. Do you find the current workforce development system to
be responsive to emerging industries and employment opportunities in
energy and health care? Do you find the training in these fields and
resources required for such training to be different? Are there
training models on the State level that we should replicate nationally?
Answer 2. Job openings in energy and green jobs, including public
utilities will be largely growth from the retirement of existing
workers. So-called ``green jobs'' will total around 2.5 million new
jobs by 2018, compared to 4.1 million new jobs and 3.3 replacement jobs
in healthcare. Due to the rapidity of retirement, there are
likely to be some shortages. The ability of the One-Stops to serve
energy, health care and other industries depends almost entirely on the
sophistication of their job openings data, and that quality currently
varies significantly.
In general it is useful to follow industry growth but people work
in occupations and skills are tied to occupations. Industries include
many occupations with very different skill levels and pay levels. Hence
any strategy that focuses on industry needs to simultaneously focus on
occupations. Many industries that will grow will not produce many jobs.
This is true both for old line industries like manufacturing, natural
resources, and utilities, and for many of the fastest growing
industries.
Because of its extraordinary productivity, Information Services is
distinguished by its output growth and the intensity of its demand for
post-secondary education more than for its employment share.
Information Services produced $769 billion in output in 1998, grew to
$1.1 trillion in 2008, and is projected to grow to $1.9 trillion in
2018. Information Services moved from our ninth largest industry in
overall output in 1989, to seventh in 2008, and is projected to move
into sixth by 2018. Information Services employs only about 2 percent
of the workforce, which ranked it among the three smallest industry
employers in 2008 and it will not grow substantially between now and
2018.
Response by Joseph M. Carbone to Questions of Senator Harkin, Senator
Enzi, Senator Murray, Senator Reed, Senator Hagan, and Senator Bennet
questions of senator harkin
Question 1a. You've achieved great success working to ensure the
One-Stop Centers you operate are fully accessible. What types of
incentives can the Federal Government provide workforce investment
boards and One-Stops to ensure that the system is physically and
virtually accessible to individuals with disabilities?
Answer 1a. Require accessibility; WIBs and One-Stops should be in
compliance with ADAA for all public spaces.
For virtual access, provide incentives for WIB's to develop a
virtual system.
Question 1b. How can we better use the workforce system to address
the educational and employment needs of individuals with disabilities
through reauthorization?
Answer 1b. Provide dedicated funding streams/incentives for serving
people with disabilities.
Create specific funding streams for Adults with
Disabilities (AD) Youth with Disabilities (YD)
Establish performance metrics that address the needs of
special populations
Leverage Federal Voc Rehab funding to support.
Hard cash contribution to One-Stop Service or;
Reinforce Voc Rehab staff as a mandated partner in the
system.
Provide incentives to WIB's that find creative ways of connecting
the partner base.
Solidify the system, using WIB's role as convener/planner/
voice.
Question 2. How can we hold the WIBs accountable for ensuring that
plans, policies and practices reflect the needs of all populations, not
just those that are more easily served or are closer to achieving
performance outcomes?
Answer 2. Do it! Write it into the act. Require WIBs to submit a
plan and actual performance re: services to People with Disabilities.
Provide bonus for good performance, and threaten sanctions if poor
performance.
Question 3. It's important to me that individuals with disabilities
are able to access resources and support, no matter which door they
enter. How can the workforce investment system be improved to better
align and coordinate services provided through the Vocational
Rehabilitation system and the One-Stop system?
Answer 3. One-Stops should be required to work out specific times
of the week where Voc-Rehab staff are at the One-Stops.
Use Case Conferencing as an effective means of integrating
services.
Local WIBs could be required to submit annual reports on how they
are coordinating service with Voc-Rehab.
questions of senator enzi
Question 1a. The One-Stop Centers that you operate are all
systematically and pragmatically accessible. What specific steps did
you take to make sure people with disabilities had access to the
services in your One-Stops?
Answer 1a. We're located in, and specifically chose, a building
that meets the requirements of accessibility.
Question 1b. As a followup to my first question, what advice would
you give the committee, as we work to reauthorize WIA, to help people
with disabilities access and utilize the services available at One-Stop
Centers throughout the country?
Answer 1b. It takes a local commitment, but it ought to be
specified in the act that failure to comply with ADAA could lead to
sanctions. For those not in compliance, work out a timetable.
Question 2. It is my belief that the Workforce Investment Act is a
piece of legislation that brings together multiple skill development
and training providers in one place in order to provide such services
to job seekers, help create a more advanced workforce, and help
employers find employees--qualified, well-trained employees. This
philosophy includes people with disabilities. What is the ideal
relationship between the One-Stop Center and the Vocational
Rehabilitation program when attempting to achieve these goals?
Answer 2. Some degree of co-location; Commitment to Case
Conferencing; and Training of One-Stop Case Managers (and other staff)
on working with People with Disabilities, and knowledge of entities in
community which can be assistive.
Question 3. Certain people believe that the One-Stop Centers should
be able to offer services to anyone who comes through the door and
referrals to the Vocational Rehabilitation program should take place
only for people with the most significant disabilities, yet the overall
One-Stop system cannot obviate responsibility and must continue to work
with the Vocational Rehabilitation program to assure that the
individual receives the training and support they need. Would you agree
with that statement? Do you have anything to add? Finally, how do we
get to that point?
Answer 3. With Case Conferencing, two staff people who are expert
in their respective fields reach agreement on most in need customers. A
One-Stop Case Manager, a Voc-Rehab Case Manager, and often a Job Coach
and others together develop plans to ensure that people with
disabilities have access to WIA services.
It is important to ensure connections between the One-Stop and Voc-
Rehab agencies because training and work are different. The role of
WIBs is to make sure training is in an in-demand field, and to make
connection to employment after training.
Question 4. Please describe how your organization, Workplace, works
with employers, small, medium-sized, and large? How does the
``WorkPlace'' help employers understand the economic development needs
of their communities?
Answer 4. The WorkPlace provides training funds to upgrade the
skills of workers and to ensure that Connecticut employers are more
competitive in a global economy. Beyond funding from the State of
Connecticut we have aggressively pursued competitive grants from the
Federal Government and private foundations. Customized training
programs are designed to benefit both employees and businesses by
enhancing the skills of workers, thereby increasing their productivity
and the competitiveness of employers. Our objective is to enhance
employees' performance in their current positions and prepare them for
future advancement.
We assist employers in defining the goals and objectives they wish
to achieve through selected training initiatives. At times this will
necessitate the development of customized curriculum for individual
business needs. If needed we help employers determine the skill gaps of
their employees through assessments. Additionally we leverage our
extensive network of public and private training providers to procure
the best solution for employers.
The need for each of these services is dependent upon the size of
the business we are assisting. Frequently small businesses do not have
the internal resources to support employee development programs and
will require assistance every step of the way. Large businesses
typically have a handle on the development needs of employees but are
not aware of local training providers. They look to the workforce board
for quality training providers, partnership development and project
management skills.
In addition, we conduct a ``Community Audit & Needs Assessment''
planning process periodically in which we both survey business needs
and provide information back to employers and other stakeholders.
Question 5. As the demand for academic and technical credentials
increase, there is a growing need to ensure that the delivery system is
effective, efficient and user friendly. The workforce development
system could be improved by using more technology. The system could
benefit from being more cost effective and capable of continuous
access. Is the WIA system prepared to deliver more training through
recognized on-line systems? Should WIA be making use of social
networking tools and communications?
Answer 5. In this area, like others (above), one way to encourage
this would be to include in an annual performance evaluation of WIBs a
question such as ``how is your WIB taking advantage of technology?''
Not all WIBs can take full advantage of technology, including on-
line training systems; if they are too small, they won't have the
resources to support use of technology which is continuously changing.
The WIA system should make better use of technologies--including
distance learning, Second Life, Skype, and other tools--which provide
the ability to reach more individuals.
Social networking, used in a targeted and informed way, makes
sense. Our system needs to reach potential customers (including
businesses) where they go to get trusted information.
Question 6. There is a growing need for WIA administrators,
community colleges, vocational educators, and students to have ongoing
access to consumer friendly labor-market information that will clearly
identify the high-wage, high-demand jobs, the credentials needed to
secure those jobs, and the institutions and training programs that
offer these credentials. Do the WIA program managers and the One-Stop
operators have access to clear labor market information? Is the
information specific and consumer friendly? What recommendations do you
have for the development of more robust and consumer friendly labor-
market information?
Answer 6. In general, available labor market information is
excellent, and new tools are becoming available all the time.
One of the best (but little-used) tools is O*NET, which has a
wealth of occupation-specific information. Consumers find this very
valuable.
USDOL/ETA does a good job hosting webinars, communities of
practice, and Web sites which promote the use of new and existing tools
and information by workforce professionals. Some of these could be made
available for use by consumers.
questions of senator murray
Question 1. You have talked about the need for the workforce
development system in general, and workforce boards in particular, to
be more flexible, responsive, and innovative. I know that you run a
number of programs in your region that are great examples. One of those
is your Mortgage Crisis Job Training Program that was designed to
connect people to the workforce system to prevent foreclosure and
increase their earnings potential.
Please provide some results from this program and the
characteristics that boards need to demonstrate to be better able to
develop and offer these kinds of responsive and innovative programs.
Mortgage Crisis: Job Training Program
------------------------------------------------------------------------
Program
Program metrics to date
------------------------------------------------------------------------
People Assessed for Program Eligibility........................ 1,226
Training Scholarships Awarded.................................. 577
Provide Career Coaching \1\.................................... 971
Employment Support Services \2\................................ 1,580
Financial Literacy............................................. 704
Credit Counseling.............................................. 376
------------------------------------------------------------------------
\1\ Provide Career Coaching includes: Information on career pathways &
required skills and Review training opportunities.
\2\ Employment Support Services includes: Resume Prep; Interview Prep;
Assistance With Employment Applications; and Referral to One-Stop
Workshops.
Mortgage Crisis: Job Training Program--[continuing]
------------------------------------------------------------------------
-------------------------------------------------------------------------
1. The only program of its kind in the United States. The Mortgage
Crisis Job Training Programs is a unique partnership of Connecticut's
workforce system and the Connecticut Housing Finance Authority.
2. Currently 993 homeowners are enrolled in the MCJTP and receiving
services. Of this population 470 are unemployed.
3. Even with minimal recruitment efforts over the past 6 months, 780
homeowners are waiting to meet with a program specialist and verify
their eligibility for the program.
4. Since the program's inception we have issued 577 training
scholarships in topics as diverse as Health Care, Office Management,
IT, Cosmetology and Financial Services. Of the 577 (380 completed, 58
did not complete, 139 training is ongoing).
5. Even with the current high unemployment rate, 78 homeowners have
found new jobs and 19 others obtained a second job.
6. In partnership with CHFA, Judicial Mediators and Housing Counselors
we have helped 136 homeowners avoid foreclosure. (70 Loan
Modifications, 50 New Payment Plans, 7 Participants in EMAP, 9 Sale of
home)
Answer 1. In order to develop and offer responsive and innovative
programs such as the Mortgage Crisis Job Training Program, boards need
to demonstrate characteristics which enable them to move out of their
traditional areas of expertise. Innovation is found through
collaboration and exploration of new partnerships which maximize
competencies of other organizations. Below is a list of characteristics
which we believe have led to our successful partnerships and new
programs:
1. Senior managers need to seek and find the common causes. These
are issues where the resources of the workforce development system can
partially address problems and with strong partnerships complete
solutions can be identified.
2. When building partnerships, do not assume you know all the
capabilities of your potential partners. Taking the time to learn about
other organizations may reveal hidden resources.
3. When soliciting the support of the business community, it is
essential to use professional practices.
4. Understand what is important for each partner and what they need
to get out of the program.
5. Take the time to learn about the people, processes and
terminology of partners. Spend the time up front to help their key
people understand your program & their role.
6. Make room for different levels of commitment.
7. Networking works.
8. Boards need to remember that workforce development is relevant
to many challenges, and potential partners abound. It is important to
reach out to others and let them know what you can bring to the table.
9. As part of WIA Reauthorization, USDOL should be directed to
connect the American Workforce System with Regional Foreclosure
Mitigation efforts.
We The Workplace will be happy to help.
Question 2. To what extent has being a non-profit, 501(c)(3)
organization helped or hindered you in your work and in meeting your
goals?
Answer 2. Being a non-profit 501(c)(3) has helped The WorkPlace,
Inc. tremendously. It provides the flexibility to raise funds, easily
subcontract with partners, and develop additional programs to meet the
needs of participants.
For example, we solicit private funding for ``WorkPlace
Scholarships'' and other programs. This has generated value-added of
more than $7 million over the past 13 years, creating incremental
training opportunities.
A non-profit has fewer limitations and can use Federal funds as
leverage to create a larger system.
The act should provide incentives for States and regions to move
the system to 501(c)(3)'s.
Question 3. As Congress considers reauthorization of the Workforce
Investment Act, what specific recommendations do you have for building
the system's capacity to respond to a changing economic climate?
Answer 3. This question is at the heart of the system. There needs
to be a direct relationship between formula funding and the economic
situation--more real-time vs. the current lag (of at least a year).
Funding needs to be more closely ``on-track'' with conditions.
For example, current economic conditions are quite different from
those considered in the act. The infusion from ARRA, when cutoff, will
leave the system facing a ``steep cliff.''
Base line numbers could be established, then the key elements of
capacity for One-Stops adjusted (with supportive funding) in response
to changing conditions: Space, Staff, and Services (the ``3S's''). Set
benchmarks for WIBs to ensure adequate resources to meet training and
job search needs.
questions of senator reed
Question 1. There are more than 16,000 public libraries in the
United States, most of which provide job/career information and
resources, such as access to computers so that patrons can search for
jobs and file for government services such as unemployment benefits;
take classes on resume writing; and access business databases. In the
economic downturn, libraries are a community resource increasingly in
demand, especially by those who are unemployed.
How can we better integrate libraries into our workforce system so
that they receive the support they need to continue providing these
services to the public?
Answer 1. Natural integration opportunities include distance
learning (e.g. One-Stop workshops shown at libraries via streaming
video) and One-Stop staff located at libraries.
Question 2. There is evidence that the unemployed are opting to use
their local library for services that the One-Stops are designed to
provide due to location or other reasons. One-Stops are also referring
users to libraries for job assistance or collaborating with libraries
to provide help to job seekers, such as in North Carolina.
How can we support and expand these collaborations? Would co-
locating One-Stops within libraries better serve job seekers?
Answer 2. Consider requiring (as part of WIB annual performance
report) an update on the WIB's/One-Stops' interaction with/connection
to libraries.
Continued partnership building is the most likely way to identify
specific arrangements which could benefit each community.
questions of senator hagan
Question 1. Research shows that every 9 seconds in America, a
student becomes a dropout. That being said, I believe that as we
consider President Obama's challenge for our country--to gain an
additional 5 million community college degrees and certificates by
2020, it is critical to consider the role in which community colleges
can play in reconnecting dropouts to the workforce. There is evidence
that many GED recipients get their GED and just stop there. They do not
recognize the value of or even think that they have the option of
obtaining an Associates or even a 4-year degree. What are your thoughts
on ways that we can support young adults who have dropped out of school
to not only get a GED, but to understand how important it is to obtain
a post-secondary degree.
Answer 1. We need to provide continued exposure to careers and
earning potential (Bureau of Labor Statistics data on how ``Education
Pays'' and insulates you from unemployment is compelling to most
youth.) In addition, key elements include mentors from business,
opportunities for work experience (Summer Youth programs are very
important here), and project-based learning.
WIB accountability could include: ``what is your WIB doing to
recruit and connect these youth?'' and ``what is your WIB doing to keep
the issue of dropouts on the agenda of your community?''
Question 2. North Carolina needs and wants to expand its training
abilities for jobs that require a working knowledge of modern machines
and programs, such as health care and advanced manufacturing.
Unfortunately, it's also much more expensive to equip a facility to
train those workers versus workers who do not need to be familiar with
such expensive equipment--for example, it can be up to 50 percent more
expensive to train someone in the field of health care. Can you share
any thoughts about how we can help States pay for this kind of
equipment and facilities when necessary to train workers to meet the
needs of local businesses? Have other States confronted this issue, and
if so, what are the lessons we've learned?
Answer 2. No comment.
Question 3. While the One-Stop system appears to have the very best
intentions, my State has found it difficult to offer services in all
rural locations at all times. Some of the entities that are located at
a One-Stop Center might only be available certain hours of the day or
certain days of the week. Some people in our State have started to
offer virtual services to increase the availability in rural areas, and
the option has been met with positive feedback thus far. Have virtual
One-Stops been attempted elsewhere in the country? If so, have they
been successful? What are the lessons or guidance for Congress so we
can encourage more innovation like this, either virtual programs or
otherwise, with the goal of increasing availability to job seekers,
particularly in rural areas?
Answer 3. No comment.
questions of senator bennet
Question 1a. What role can business play in furthering workforce
development?
Answer 1a. Businesses can participate on WIB Boards and committees.
Their input is critical in developing curricula and competency models,
ensuring relevance of education and training to their needs. They can
participate by providing opportunities for work experience, including
internships and apprenticeships. Businesses can help with early
exposure to careers through School-to-Career and other programs.
Question 1b. Are there on the ground examples of private sector
initiatives that have helped to close skill gaps in our economy?
Answer 1b. In Connecticut, insurance and financial service
organizations made significant contributions to the development of the
Insurance and Financial Services Center for Educational Excellence (IFF
CEE) which was created through a high-growth grant award from the U.S.
Department of Labor. Business leaders gave their time and expertise by
participating on committees that created Connecticut's first 2-year
associates degree in Insurance and Financial Services. Essential to
this effort was the input of senior managers who saw the value of
creating a pipeline where workers could enter and move up career
ladders.
Question 1c. Where do you think the law can be improved to foster
more partnerships between business and workforce development providers?
Answer 1c. Business partnerships as part of service delivery should
be a key measure for WIB performance.
Larger, stronger WIBs with more of a regional focus are better
positioned to demonstrate the value of the local delivery system to
businesses and other providers.
Question 1d. What are some ways that the private sector,
government, non-profits and labor can partner in the development of our
workforce?
Answer 1d. Regional initiatives (like WIRED) and sector-based
initiatives provide excellent reasons to partner--developing a talent
pipeline and enhancing competitiveness. Major initiatives should invite
all these stakeholders ``into the tent'' and define meaningful roles
for each, in relation to the challenge/opportunity in focus. Education
is another critical partner for most workforce development initiatives.
Question 2a. Do you find the current workforce development system
to be responsive to emerging industries and employment opportunities in
energy and health care?
Answer 2a. Yes, to the extent possible. In the health care field, a
significant portion of ITA dollars are used to train individuals in
entry-level health care occupations (Certified Nursing Asst.; Patient
Care technician). It is difficult to move people along a career ladder
to mid-level positions because of the length of programs (WIA ITA's are
focused on short-term training that must result in a nationally-
recognized credential) and the significant educational gap among
participants. WIA funding is not conducive to remedial education
courses.
In energy, there are a number of courses and certifications that
are being developed as we focus more on ``Green'' occupations. The
workforce system is definitely responding well, in large part due to
the separate funding streams that have provided dedicated funding--such
as, Pathways Out of Poverty (Dept of Labor); Weatherization (Dept of
Energy). The system, including both private and non-profit training
providers, responds to the market. It is responding to opportunities in
energy and health care in a somewhat fragmented, localized way, but it
is responding.
WIBs serve as regional planning entities; with relatively little
money, our job is to run a system with a multitude of partners, many of
which have money for specific populations and needs. Planning for
emerging needs is essential to shifting supply to meet demand. The
``responsiveness of the system to emerging needs'' should be a key
measure for WIBs, separate and beyond One-Stop performance measures.
Question 2b. Do you find the training in these fields and resources
required for such training to be different?
Answer 2b. Yes, many of the energy or green jobs training program
are short-term by nature and provide many options for those with
barriers and/or limited education. In the healthcare arena, additional
resources are necessary to bring many participants to the educational
level that's necessary to move into higher levels (i.e., nursing and
allied health occupations).
Question 2c. Are there training models on the State level that we
should replicate nationally?
Answer 2c. USDOL is in the best position to identify best practices
and create a process for replication. This is a value-added role and
might be formalized as an ``after-grant'' activity.
In addition, intermediaries have emerged in support of ``sector-
based'' initiatives and ``regional'' development initiatives. These
could be encouraged, with linkage to government as appropriate. There
are not particular barriers to knowledge-sharing, but it needs a point
of coordination.
Response of Paul Stalknecht to Questions of Senator Harkin, Senator
Enzi, Senator Murray, Senator Reed, Senator Brown, Senator Hagan, and
Senator Bennet
questions of senator harkin
Question 1. How can the act be changed to improve and encourage
broad support and participation from the business community? What role
can business play in helping workers, especially out-of-school or
disadvantaged youth, develop the skills and experiences needed to gain
and advance in 21st Century careers?
Answer 1. In my view, the business community wants to see an
optimized workforce development system through the Workforce Investment
Act. Small business owners don't always have the resources to be active
participants on Workforce Investment Boards, but they can participate
in other ways. For example, many small business owners in the HVACR
industry employ apprentices from local apprenticeship programs and
community colleges. The act could strengthen this arrangement so that
more prospective HVACR technicians could find on-the-job training and a
potential future employer.
Question 2. In what ways should ``on-the-job'' training,
apprenticeships, and other supported employment opportunities be
included in the reauthorization? What should we do to ensure that
students are able to access the educational and career training and
supports needed to be successful in the 21st century labor market?
Answer 2. Technicians in the HVACR industry need on-the-job
training to compliment their classroom studies. Incentives to small
businesses to provide on-the-job training as part of an apprenticeship
program or an associate's degree would create more opportunities for
education and career training. A common complaint from employers is
that recent graduates from community colleges lack the ability to be
placed in the field right away. If the Federal Government made funding
or incentives available to support on-the-job training with local
contractors in the trade, trainees would be able to hit the ground
running.
Question 3. How would a new emphasis on on-the-job training help
individuals with disabilities enter into and succeed in the workforce?
Are there examples of apprenticeship programs that do a good job of
integrating and supporting individuals with disabilities?
Answer 3. The general and detailed work activities required of
HVACR technicians may prevent some individuals with certain
disabilities from performing those tasks. I am not aware of any
examples of apprenticeship programs that integrate and support
individuals with disabilities.
Question 4. What changes can we make in reauthorization to address
the unique needs for small and rural businesses?
Answer 4. Congress should consider assisting small businesses that
develop their own in-house training programs, especially in rural areas
where alternatives may not exist. Several ACCA member companies that
qualify as small businesses have created their own apprenticeship
programs with rigorous standards that are recognized and certified by
the Department of Labor. These are especially critical in rural areas
where trainees may not have access to an associate's degree. I would
recommend Congress provide financial support to small business and
trade association apprenticeship programs. And I would encourage an
effort to streamline the approval process for certification.
questions of senator enzi
Question 1. In the air conditioning industry what are the common
knowledge and skill gaps for those workers entering the industry for
the first time? How has your industry worked with community colleges
and other training providers to make sure entrants are prepared?
Answer 1. On-the-job training is crucial since a trained technician
will face many different kinds of HVACR systems and problems in the
field. Many contractors have found new recruits that lack on-the-job
training are not ready to work on their own. The apprenticeship
programs developed and managed by ACCA chapters work with local
community colleges to provide slots for students to work as
apprentices. On-the-job training is part of the curriculum and a
requirement in order to earn a certificate.
Question 2. As a former small business owner, I believe it is
critical for small businesses to attract, retain, and grow a skilled
workforce. What role can business play in helping workers get the
skills they need to grow and advance in the workforce?
Answer 2. Along with providing on-the-job technical training,
apprenticeship with small businesses can expose trainees to the skills
it takes to run a business. Too many graduates of an apprenticeship
program or certificate program excel at the technical side of the HVACR
business, but lack the accounting, management, and finance skills to
succeed. Future programs could include programs to teach these skills.
questions of senator murray
Question 1a. I believe apprenticeships are one of the most under-
utilized resources we have to prepare workers for careers with good
wages, benefits and long-term prospects for stable employment.
Based on your experience, how can we improve apprenticeships?
Answer 1a. Congress can support the apprenticeships offered through
specialty trade organizations like ACCA at the chapter level. One
common complaint by program administrators is compliance with Federal
paperwork and recordkeeping requirements for certification.
Apprenticeship program administrators must jump through many
bureaucratic hoops to gain approval from State and Federal agencies,
including the Department of Labor and the Veterans Administration.
What's needed is a change in policy to streamline the process for start
up programs and those already in existence.
Question 1b. How can we use apprenticeships better in rural areas?
Answer 1b. To facilitate apprenticeships in outlying areas, the
government should partner with trade associations and rural small
businesses that want to provide apprenticeships and training. ACCA
chapters and members have found success in attracting interested
students to these apprenticeships and training programs. In many
places, the number of applicants outnumbers the slots available.
Question2. Where do your members most often turn to get the
training and education their employees need?
Answer 2. In the HVACR industry, contractors turn to local chapter
apprenticeship programs and community colleges for training and
education.
questions of senator reed
Question 1. There are more than 16,000 public libraries in the
United States, most of which provide job/career information and
resources, such as access to computers so that patrons can search for
jobs and file for government services such as unemployment benefits;
take classes on resume writing; and access business databases. In the
economic downturn, libraries are a community resource increasingly in
demand, especially by those who are unemployed.
How can we better integrate libraries into our workforce system so
that they receive the support they need to continue providing these
services to the public?
Answer 1. The answer may be to integrate the workforce system so
that more library patrons can access information online.
Question 2. There is evidence that the unemployed are opting to use
their local library for services that the One-Stops are designed to
provide due to location or other reasons. One-Stops are also referring
users to libraries for job assistance or collaborating with libraries
to provide help to job seekers, such as in North Carolina.
How can we support and expand these collaborations? Would co-
locating One-Stops within libraries better serve job seekers?
Answer 2. Again, making more information available online and
simplifying the information so that anyone can access it quickly and
easily.
question of senator brown
Question. What are some ways that our Workforce Investment Act
System could better meet the employment needs of small businesses?
Answer. Small businesses don't always have the resources to
integrate or fully utilize the programs created under the Workforce
Investment Act system. There appears to be a disconnect between the
potential employers in the specialty trades and workers looking for a
career. Apprenticeship and training programs that require on-the-job
training with a contractor often lead to a job offer from the
contractor.
questions of senator hagan
Question 1. Research shows that every 9 seconds in America, a
student becomes a dropout. That being said, I believe that as we
consider President Obama's challenge for our country--to gain an
additional 5 million community college degrees and certificates by
2020, it is critical to consider the role in which community colleges
can play in reconnecting dropouts to the workforce. There is evidence
that many GED recipients get their GED and just stop there. They do not
recognize the value of or even think that they have the option of
obtaining an Associates or even a 4-year degree. What are your thoughts
on ways that we can support young adults who have dropped out of school
to not only get a GED, but to understand how important it is to obtain
a post-secondary degree?
Answer 1. First, Congress needs to create Federal policies that
change the ``culture'' of job training and career counseling. The HVACR
industry should be an attractive and rewarding option for those who do
not seek a degree beyond secondary school. While you need certain skill
levels and a base educational foundation to work in the HVACR industry,
you don't need a 4-year college degree. In the last few decades, it
seems our society has denigrated the skilled trades in favor of 4-year
colleges. Government policy and cultural shifts have created a world
where young people ``look down'' on the skilled trades that still offer
tremendous opportunity, job security, a comfortable lifestyle, and a
career path to entrepreneurialism and business ownership.
Question 2. North Carolina needs and wants to expand its training
abilities for jobs that require a working knowledge of modern machines
and programs, such as health care and advanced manufacturing.
Unfortunately, it's also much more expensive to equip a facility to
train those workers versus workers who do not need to be familiar with
such expensive equipment--for example, it can be up to 50 percent more
expensive to train someone in the field of health care. Can you share
any thoughts about how we can help States pay for this kind of
equipment and facilities when necessary to train workers to meet the
needs of local businesses? Have other States confronted this issue, and
if so, what are the lessons we've learned?
Answer 2. An HVACR technician needs on-the-job training in order to
succeed. There are thousands of contractors across America willing to
open their doors to apprentices in community colleges and other
training programs. This arrangement does not require extra facilities
with expensive equipment.
Question 3. While the One-Stop system appears to have the very best
intentions, my State has found it difficult to offer services in all
rural locations at all times. Some of the entities that are located at
a One Stop Center might only be available certain hours of the day or
certain days of the week. Some people in our State have started to
offer virtual services to increase the availability in rural areas, and
the option has been met with positive feedback thus far. Have virtual
One-Stops been attempted elsewhere in the country? If so, have they
been successful? What are the lessons or guidance for Congress so we
can encourage more innovation like this, either virtual programs or
otherwise, with the goal of increasing availability to job seekers,
particularly in rural areas?
Answer 3. ACCA cannot speak to the questions of the success of the
virtual One-Stop Career Centers but our experience with online webinars
and other training has shown increasing acceptance in the HVACR
industry.
questions of senator bennet
Question 1. What role can business play in furthering workforce
development? Are there on the ground examples of private sector
initiatives that have helped to close skill gaps in our economy? Where
do you think the law can be improved to foster more partnerships
between business and workforce development providers? What are some
ways that the private sector, government, non-profits and labor can
partner in the development of our workforce?
Answer 1. Many small businesses in the HVACR industry have created
successful apprenticeship programs that are certified by the Department
of Labor. The same is true for local chapters of ACCA. The curriculums
require classroom and on-the-job training. In some cases, the programs
work with local community colleges and participants can earn a 2-year
certificate or a 4-year degree. Yet these small businesses and local
organizations get little or no help from the State or Federal
Governments. The Workforce Investment Act needs to encourage these
programs, especially in rural areas, where there may not be
alternatives.
Question 2. Do you find the current workforce development system to
be responsive to emerging industries and employment opportunities in
energy and health care? Do you find the training in these fields and
resources required for such training to be different? Are there
training models on the State level that we should replicate nationally?
Answer 2. The HVACR industry is on the forefront of the energy
efficiency movement since so much residential and commercial energy
consumption is used for heating, cooling, and ventilation. As new
energy efficient technologies emerge, the training will have to keep
up. To provide the level of energy savings promised by new HVAC
equipment, the actual installation in the field must be accurately and
professionally executed.
Response by Cheryl Feldman to Questions of Senator Harkin, Senator
Enzi, Senator Murray, Senator Reed, Senator Brown, Senator Hagan, and
Senator Bennet
questions of senator harkin
Question 1. 1199C is a shining example of how resources and
partners can be leveraged to provide job seekers with education and
career pathways that are seamless, comprehensive, and lead to good jobs
(those with family sustaining wages and opportunities for advancement).
How can we support and strengthen education and career pipelines that
provide opportunities for individuals, especially individuals with
barriers to employment, to obtain and advance in 21st century careers?
Answer 1. A major barrier to employment is low literacy skills that
prevent individuals from accessing education and training opportunities
connected to career pathways. Individuals with barriers to employment
often need support from adult education programs to address their
literacy needs, and they need support from skills training programs to
provide them with the skills needed by employers. Below I describe
policies that would better align the adult education and workforce
systems to provide job seekers with a more seamless experience that
addresses both their literacy and job training needs. Individuals with
barriers to employment also need programs that include a strong
counseling component, which is usually not possible given the current
funding constraints. Job seekers with challenging barriers will have
much greater success if programmatic funding allows for high quality
educational programming along with fiscal support for full time
counselors/career coaches.
There are many things that can be done to strengthen education and
career pipelines by better aligning K-12 education, adult basic
education, occupational training, and higher education to allow
individuals to move more easily across programs and between
institutions. One immediate opportunity to address this issue is to
include policies that better align title I (occupation training) and
title II (adult and family literacy) in the reauthorization of the
Workforce Investment Act. Such policies include:
Title I
Clarify that the focus of the program should be on the provision of
high quality education, training and related services which provide
individuals with the necessary skills and experience to access jobs
that pay family-supporting wages and have advancement potential.
Eliminate the ``sequence of services'' provisions and
allow individuals to immediately access needed services;
Establish a required percentage (consistent with current
averages) of WIA formula funding that must be spent by States and
localities on worker services, with an emphasis on training; and
Clarify that WIA funds can be used in conjunction with
Pell grants to ensure that low-income students receive the full support
they need to succeed in training.
Increase the focus and capacity to serve individuals who have
limited skills or have other barriers to economic success.
Ensure that lower-skill individuals have a priority of
service for education, training and related services; and
Allow local areas the flexibility to provide training
through Individual Training Accounts (ITAs) or contract training, as
appropriate.
Revamp the current performance measurement system.
Require use of an empirically supportable methodology to
adjust performance levels based on participant characteristics and
labor-market conditions;
Review and revise current performance measures to
encourage provision of services to individuals who have limited skills
or have barriers to employment; and
Develop and, over time, implement a system of shared
accountability across workforce and other education and training
programs.
Improve coordination between the workforce development and adult
education systems and promote better integration of occupational
training, basic skills, and English language services.
Require States to set targets that steadily increase over
time the percentage of participants co-enrolled in WIA titles I and II.
Title II
Set the purpose of title II to assist students to attain career and
post-secondary success.
Explicitly allow the three required local activities
funded by title II--Adult education and literacy services (including
workplace literacy services), Family literacy services, and English
literacy services to be provided before or in combination with work or
post-secondary education and training and recognize that program
strategies can include, but are not limited to, approaches that
integrate basic skills and post-secondary education and training
content or which may dual or concurrently enroll students in basic
skills and post-secondary education and training.
Mandate that a portion of federally funded title II State grants be
used for seeding and scaling up approaches that integrate basic skills
and post-secondary education and training or which dual or concurrently
enroll students in basic skills and post-secondary education and
training.
Expand work-based literacy and increase access to adult education
for lower-skilled incumbent workers in other ways--for example, through
flexible delivery modes, including weekend, compressed, or accelerated
formats, and technology-based strategies.
Question 2. What are your recommendations for improving labor-
management partnership participation in the workforce investment
system?
Answer 2. Labor management partnerships are usually multi-employer
industry partnerships (although they sometimes involve only one large
employer) that support and provide workforce programs which
simultaneously meet employer and worker needs. Like workforce
intermediaries, they engage both large and small employers. These
partnerships have the capacity to develop and implement large-scale
workforce interventions. In general, more long-term initiatives will
enable labor management partnerships to build capacity to create larger
interventions with greater opportunity for sustainability. My
recommendations for improving labor-management partnership
participation in the workforce investment system are as follows:
(1) Create incentives for career ladder education for newly placed
workers that continues post-employment by incentivizing educational
providers to offer programs that meet at the times and locations that
are accessible to the working adult. Workers would be able to take an
entry level position while continuing to train for better paid and more
skilled jobs. This approach of supporting ongoing workforce development
would not only benefit job seekers but also provide opportunities to
incumbent workers to move up a career ladder while creating room for
new workers to begin employment. (2) Create labor management
partnership demonstration projects that support capacity building in
connecting the unemployed and dislocated workers to industry-based
career ladder opportunities and simultaneously allow for low-wage
workers to advance. (3) Create more opportunities for multi-employer,
sector-based education and employment projects. (4) Create more
opportunities for addressing the education and training needs of low-
wage and mid-wage incumbent workers with the goal of helping them
access career advancement opportunities at the same time that
employers' needs for a high-skilled workforce are addressed. (5) Create
incentives for the development of new labor/management partnerships as
one way of expanding industry-based training and education. (6) Support
the National AFL-CIO (Working for America Institute) to provide
technical assistance and other capacity building support that enables
labor management partnerships to participate more fully in the
workforce investment system.
Question 3. How has your partnership with the Workforce Investment
Board been beneficial or meaningful? How can we improve the climate for
WIB partnerships in reauthorizing the law?
Answer 3. Our partnership with the WIB has been extremely
beneficial in Philadelphia. As a result of the efforts of the WIB, the
RCEP, and the Youth Council, public agencies, private agencies, and
businesses have aligned to create a system to address the needs of
youth (Project U-Turn), of adults with literacy needs (EXCEL
Philadelphia), and adults without degrees (Graduate! Philadelphia). The
District 1199C Training & Upgrading Fund has actively supported and
engaged with each of these initiatives. We are attempting to build
seamless delivery systems in lieu of the fragmented systems that have
existed for decades. Under the leadership of Mayor Nutter, we are
working together as a city to bring the resources to bear that will
halve our high school dropout rate and double our college graduation
rate. In reauthorizing WIA, it would be beneficial for WIB's to be
viewed as responsible for the workforce system rather than a single set
of services, and therefore focused on building strong, supportive
collaborations with partners like the District 1199C Training &
Upgrading Fund to achieve strategic goals that address the workforce
needs of the local community.
question of senator enzi
Question. There are approximately 30 million Americans who have not
completed high school and 58 million who have completed high school but
have no post-secondary education credential. Is the WIA system capable
of providing services to these 88 million people? Is the WIA system
capable of providing more academic remediation, or high school degrees?
Is the system prepared to focus on industry recognized certifications?
If not, what are the legislative or regulatory constraints? What are
the fiscal constraints?
Answer. When WIA passed in 1998, there was a promise of additional
resources to support implementation. Those resources did not
materialize, and in real dollars, we have seen a 47.1 percent reduction
in Pennsylvania's WIA appropriation since 2002. (In non-inflation
adjusted dollars, the percent reduction is 35.2 percent.) At the same
time, the gap has significantly widened between where people are (in
terms of literacy levels, occupational skills, and degrees) and what
businesses need to compete in a global economy. These are simply
realities the system faces. So in my estimation, the idea that we can
achieve efficiencies sufficient to offset these losses and
fundamentally expand services into new areas while maintaining all
current functions may be unrealistic. Therefore, leveraging and
aligning resources is our best path to building a human capital system
in this country that is positioned to take on these new challenges.
Under current funding levels, of course, it is not possible for the
WIA system to provide services to the 88 million adults currently in
the labor force who could benefit from obtaining post-secondary
education leading to an industry recognized credential, vocation
certificate, or Associate's Degree. The system currently lacks the
funding to purchase the education and training and supportive services
such workers require, and also the capacity necessary to provide such
services for so many individuals. Realistically, no system--K-12,
higher education, adult basic education, or occupational training--is
uniquely equipped to provide services to this population.
However, it is critical that Federal policymakers address this
problem. The National Skills Coalition has documented that nearly half
of all jobs in our economy now and for the foreseeable future are
``middle skill'' jobs requiring more than a high school diploma, but
not necessarily a 4-year college degree. Another 30 percent of all jobs
require a 4-year degree or beyond. This means that 8 out of 10 jobs in
our economy are beyond the skills of approximately 60 percent of our
current workforce. We must recognize that workforce education and
training is not a ``second chance'' or ``last chance'' system for
individuals who have failed in other systems, but rather is an integral
part of a system by which workers in this country obtain the skills
they need to enter and succeed in the labor market. Our Nation will
struggle to maintain our competitive position in the global economy if
we fail to address the existing skills deficit in our workforce.
The WIA system is uniquely positioned to begin to address this
problem. If the WIA system were restructured, and adequately resourced,
to truly serve as a ``no wrong door'' entry point for workers into
adult basic education, occupational training, and higher education--and
these systems were much better aligned to allow both integration of
programs (i.e., combined occupational and literacy training, dual or
concurrent enrollment, real career pathways that allow for the
combination of work and learning, etc.) and seamless transitions across
programs (i.e., articulation agreements, pre-apprenticeship programs,
on-going supportive services, etc.)--it could function as a kind of
intersection point across numerous Federal programs and funding streams
and serve many, many more people.
The system is prepared to focus on industry-recognized credentials,
and is already doing so in many places, including Pennsylvania. Areas
that have adopted industry or sector partnership models, in particular,
are very conscious of the need to ensure that workers can obtain
industry recognized credentials, and work very closely with employers
to develop curriculum that lead to credentials that have value to those
employers. However, there is a great deal of variability across
existing credentials and what has value to one employer may not have
value to another. It would be important, and extremely useful, for the
Federal Government to convene and advance meaningful conversations
about how we determine what is a credential that has value to an
employer in the labor market--and by extension, how we invest Federal
training and higher education dollars. The Federal Government should
not attempt to define what counts as a meaningful industry recognized
credential. Just as the Federal Government does not try to define what
counts as a college degree, but rather sets the broad outlines of the
accreditation process, the Federal Government should strive to help set
the broad outlines of the process by which employers (working with
other key stakeholders such as labor management partnerships) develop
industry-recognized credentials.
questions of senator murray
Question 1a. One of the most challenging aspects of our system is
how best to provide education and training opportunities to incumbent
workers in a way that balances the needs of employers and the workers'
family obligations.
Based on your experience, how can we better provide work-based
learning and on-the-job-training opportunities in our workforce
development systems?
Answer 1a. Federal dollars are relatively rigid and subject to
intense oversight. This can limit the willingness of local entities
that are liable for these dollars to innovate. Further, much of the
activity from the USDOL prior to last year was focused on finding
things wrong rather than defining what works and helping others to
replicate it. Clarifying congressional intent in the law would help,
particularly around the technical assistance role the Federal
departments can play in assisting local areas to use dollars in new and
innovative ways that help people secure and maintain employment, and
assist employers in increasing their productivity and growth.
An example of an innovative, extremely successful strategy used by
labor management partnerships and employer-based partnerships is the
use of work-based learning as part of a career advancement strategy for
incumbent workers. The success of work-based learning depends on a
number of factors. Most important is the need for release time or paid
time for participating in an instructional program, which is often not
an allowable cost within federally funded projects. Release time
enables incumbent workers to participate in education and still meet
their family obligations. Other important aspects of work-based
learning include: preparatory, basic skills instruction along with job
skills training to ensure that the worker can be successful;
counseling/career coaching support to ensure that the worker is
supported in the learning experience; engaging supervisors in the
learning experience to ensure that the employer is engaged in the
instructional design; and, connecting work-based learning to an
industry-recognized credential and access to college credits. Lastly,
whenever possible, it is important that successful completion of work-
based learning related to skills needed on the job results in a wage
increase for the worker. These work-based learning programs are often
lengthy and time consuming to design and implement. Giving partnerships
the flexibility to implement these types of work-based learning
programs will enable workers to successfully advance in their careers
and enable employers to grow their own high-skilled workforce.
Question 1b. How has your organization's partnership with your
local workforce board been beneficial to meeting to your goals?
Answer 1b. Our partnership with the WIB has been extremely
beneficial in Philadelphia. As a result of the efforts of the WIB, the
RCEP, and the Youth Council, public agencies, private agencies, and
businesses have aligned to create a system to address the needs of
youth (Project U-Turn), of adults with literacy needs (EXCEL
Philadelphia), and adults without degrees (Graduate! Philadelphia). The
District 1199C Training & Upgrading Fund has actively supported and
engaged with each of these initiatives. We are attempting to build
seamless delivery systems in lieu of the fragmented systems that have
existed for decades. Under the leadership of Mayor Nutter, we are
working together as a city to bring the resources to bear that will
halve our high school dropout rate and double our college graduation
rate. We have worked with the WIB to build a workforce system rather
than a single set of services, working to achieve strategic goals that
address the needs of our local community.
questions of senator reed
Question 1a. There are more than 16,000 public libraries in the
United States, most of which provide job/career information and
resources, such as access to computers so that patrons can search for
jobs and file for government services such as unemployment benefits;
take classes on resume writing; and access business databases. In the
economic downturn, libraries are a community resource increasingly in
demand, especially by those who are unemployed.
How can we better integrate libraries into our workforce system so
that they receive the support they need to continue providing these
services to the public?
Question 1b. There is evidence that the unemployed are opting to
use their local library for services that the One-Stops are designed to
provide due to location or other reasons. One-Stops are also referring
users to libraries for job assistance or collaborating with libraries
to provide help to job seekers, such as in North Carolina.
How can we support and expand these collaborations? Would co-
locating One-Stops within libraries better serve job seekers'
Answers 1a and b. The greater use of libraries to deliver workforce
services is a great idea, if those libraries have existing resources
(e.g., are appropriately staffed and have space) and if there is a
commitment at the library leadership level to these services. That is
something that can only be determined locally. In addition to
libraries, other excellent vehicles which can successfully deliver
workforce services may include recreation centers, schools, community-
based organizations, union halls, or labor management partnership
learning centers. The key point is to enable decisionmaking at the
local level that allows for flexibility based on local opportunities
and conditions.
Our labor management partnership works closely with the library
system in Philadelphia. In fact, the Philadelphia Mayor's Commission on
Literacy, which is tasked with coordinating all of the city's adult
education agencies, operates within the Free Library of Philadelphia. I
would be happy to seek input from the Free Library of Philadelphia on
your questions if you wish. Please let me know if you would like me to
followup, and I would be happy to do so.
question of senator brown
Question. I am interested in hearing more about your experience in
implementing sectors strategies. What are the key elements of effective
sectors partnerships? How do existing WIA programs help or hinder the
development of robust sector partnerships?
Answer. Key elements of effective sector partnerships can be
expressed in two ways: those that are crucial generally and those that
are crucial to the planning, design, and partnership building phase of
sector partnership development.
Key Elements That Are Crucial Generally
The goal of a sector partnership is to make it possible for
individuals with low incomes and/or low skills to obtain good jobs,
while addressing the needs of multiple employers in an industry sector,
and of job seekers and workers in that industry sector.
Sector partnerships share the following characteristics:
1. Focus intensively on an industry within a regional labor market,
and multiple employers in the industry, over a sustained period of
time.
2. Are led by a workforce intermediary, including labor management
partnerships, with credibility in the industry.
3. Create new pathways for low-wage workers into the industry with
the opportunity to access good jobs and careers.
4. Achieve systemic changes that are ``win-win'' for employers,
workers, and the community.
In regard to systemic changes, sector partnerships focus on three
areas:
Education/training, support services, and business
services (both the services themselves, and the ways they partner/
coordinate);
Industry practice; and
Public policy.
Sector partnerships pursue three strategies:
Increase access to good jobs;
Improve the quality of jobs; and
Support job creation.
Most pursue the first strategy. Increasingly, sector partnerships
also pursue the second strategy. A few sector initiatives pursue the
third strategy. Predictions of slow job growth over the coming decade
create great concern, and sector partnerships are well-positioned to
develop the capacity to support job creation.
Several success factors of sector partnerships for involving
employers in an industry sector and meeting their needs include:
Deep knowledge of industry, its culture, and employers'
needs;
Credibility with industry, or an effective strategy to
gain it;
Entrepreneurial character;
Capacity to develop solutions for businesses and workers;
Meaningful measures of results, and effective ways to
report;
Focus on quick response to changing industry needs;
Commitment to long-term involvement; and
Governance that involves business and labor leaders in key
decisions.
Success factors of sector partnerships for recruiting workers and
meeting their needs include:
Deep understanding of workers' and job seekers' needs and
perspectives;
Credibility with community and labor leaders;
Effective communication vehicles;
Programmatic capacity to address specific needs regarding
skill development and support services; and
Influence to bring about systems changes that increase
access and retention in programs and employment.
How Existing WIA Programs Help or Hinder the Development of Robust
Sector Partnerships
WIA focuses resources on individuals who are unemployed. However,
most low-income people are members of the ``working poor.'' WIA should
provide resources for post-employment services that make it possible
for those who have low incomes
and/or limited skills to advance along career paths to good jobs.
WIA limits funding for ``admin'' in ways that make it difficult to
support intermediary services that are crucial to sector partnerships.
WIA provisions supporting sector partnerships should target resources
to organizations with the key characteristics and capacities of
industry sector-focused workforce intermediaries.
Characteristics of a workforce intermediary include the following:
It has an entrepreneurial culture.
It has a results-driven focus that promotes flexibility
and accountability amongst partners.
It has the capacity to act as a project manager and to
manage partnerships with multiple organizations in order to deliver
services that respond to the needs of the industry and its workforce.
It has the capacity to manage multiple sources of funding
in order to meet the needs of an industry's employers and workforce.
It has expertise and credibility with the industry
sector's employers and labor, and an understanding of the sector and
the needs of its employers, its workforce, and its potential workforce.
It has or develops an awareness of best and promising
practices in service delivery.
It has or develops an understanding of systems change and
a commitment to accomplishing it.
It plays a strong role in solving the workforce needs of
the industry and addressing the need for good jobs for the community
and its workers.
The workforce intermediary has several specific roles in
implementing the sector initiative:
Work across jurisdictional boundaries to manage sector
initiative partners' activities throughout the regional labor market
within which the sector initiative operates and has impact.
Coordinate the sector initiative's employer and/or
workforce service delivery, providing a level and data-driven
management capacity, information systems to coordinate the flow of
services across multiple agencies to employers and individuals, and
monitor outcomes for industry, workers, and job seekers.
Improve data collection and analysis capacity, and the use
of it to drive sector initiative activities.
Anticipate challenges and technical assistance needs.
Build the capacity of service providers to better meet the
needs of employers and job-seekers.
Bring about efforts to update understanding of employers',
workers', and job seekers' needs, ensuring that service provider
practices change to address these needs, and ensuring that systems
change objectives do so.
Stimulate systems change, lead efforts to identify systems
change strategies and to pursue them, and monitor the sector
initiative's progress.
Bring about a structure for governance of the partnership
and participate in it.
Secure financial support, involve sector initiative
partners in doing so, and manage multiple funding streams so resources
can be used most flexibly to meet the needs of employers, workers, and
job seekers.
Examine possible areas for expansion of the sector
initiative and its sustainability.
Market the sector initiative; publicize progress.
Workforce Investment Boards and One-Stops may or may not be best
suited to be workforce intermediaries that lead and manage sector
partnerships, but the flow of WIA funding currently encourages them to
play the intermediary role. Instead, WIA should incent funding of
organizations that support the goal of sector partnerships identified
above, and have the characteristics and capacity to be workforce
intermediaries, including labor-management partnerships, community-
based organizations, and others.
A large amount of WIA funding supports One-Stop Career Centers and
the One-Stop infrastructure. In general, the role of the One-Stops is
short-term and transactional (focused on job-matching). Sector
partnerships have greater impact because they are long-term and
relational, making it possible for them to meet the needs of multiple
employers (improving productivity, developing the workplace as a
learning environment, increasing productivity, improving job quality,
and developing career paths), multiple workers (pre- and post-
employment assistance, long-term skill development, advancement along
career paths), and achieving systems change.
Currently WIA organizes services by groups of job seekers/workers
(e.g., Adults, dislocated workers, youth). Instead, WIA should be
designed to support advancement of those with low incomes and/or skills
to good jobs, while reducing the division of services by category of
job seekers/worker, so that programs can meet the needs of multiple
categories of job seekers and workers and employers' related needs.
Currently WIA's performance measures only focus on outcomes for job
seekers and workers, and their short horizons make it difficult to
dedicate resources to long-term skill development for those with low
incomes and/or limited skills. They also make it difficult to meet
industry sector needs over the long-term, and provide post-employment
services that support workers' advancement up career paths. Finally, by
focusing on worker outcomes rather than addressing a broader set of
issues, current performance measures only obtain programmatic
information, rather than addressing systems change. Instead,
performance measures should address longer timeframes, and should
address the following areas: benefits to workers, benefits to
employers, the quality of sector partnerships, and the impact on
systems change.
Sector partnerships coordinate multiple funding sources to support
their work, and States that support sector partnerships align multiple
agencies strategies and resources. However, currently, WIA does little
to incent coordination of other systems' strategies and resources; nor
does it ease the burden sector initiatives face of coordinating
multiple funding sources. WIA provisions should incent funding to align
with its purpose of supporting sector partnerships that have the above-
stated goal by providing for matching funds for funding from sources
such as States, local governments, labor-management partnerships, and
foundations.
Key Elements That Are Crucial to the Research, Design, and Partnership
Building Phase
Key tasks in the research, design, and partnership building phase
include:
Convene key industry employers and unions.
Convene key service delivery partners.
Work with employers, unions and labor management
partnerships, education and community partners to set vision/mission.
Manage analysis of the regional labor market, including
which industry sector and occupations to address, which employers to
work with and how, worker needs, the union role, and capacity of
potential service delivery partners.
Work with employers, unions, and partners to design
operations and systems change.
Manage development of start-up plan and raise funding for
start-up and ongoing operations.
How Existing WIA Programs Help or Hinder the Development of Robust
Sector Partnerships
WIA's funding is largely tied to programmatic outcomes. As a
result, research, design, and partnership building activities are
crucial to meeting employer and worker needs. Additionally, sector
partnerships are often under-capitalized during the start-up phase;
further, funding often ends too quickly for sector partnerships to
complete start-up and produce outcomes at significant scale. WIA
funding should support planning grants and 2- and 3-year long
operational grants. Operational grants would be contingent on
achievement of key research, design, and partnership building outcomes.
questions of senator hagan
Question 1. Research shows that every 9 seconds in America, a
student becomes a dropout. That being said, I believe that as we
consider President Obama's challenge for our country--to gain an
additional 5 million community college degrees and certificates by
2020, it is critical to consider the role in which community colleges
can play in reconnecting dropouts to the workforce. There is evidence
that many GED recipients get their GED and just stop there. They do not
recognize the value of or even think that they have the option of
obtaining an Associates or even a 4-year degree. What are your thoughts
on ways that we can support young adults who have dropped out of school
to not only get a GED, but to understand how important it is to obtain
a post-secondary degree?
Answer 1. The system has historically focused on the acquisition of
the GED as a terminal credential. In order to encourage young people to
go beyond the GED, the culture and mind set must be changed to embed
the conversation about post-secondary credentials as an integral
component and expectation of the program from the beginning. GED
programs must do more than just ``expose'' young people to college
through college tours and the like but must ensure that they are
academically preparing young people to be successful in college without
remediation. Furthermore, in the same way that early and middle college
high school models and dual enrollment enable youth to earn college
credits while in high school, we need to export these types of models
to the GED system. Finally, the GED program cannot stand on its own but
must include work and experiential learning opportunities as well as
social supports that remove barriers and encourage persistence to and
through the associates and/or baccalaureate degree.
Question 2. North Carolina needs and wants to expand its training
abilities for jobs that require a working knowledge of modern machines
and programs, such as health care and advanced manufacturing.
Unfortunately, it's also much more expensive to equip a facility to
train those workers versus workers who do not need to be familiar with
such expensive equipment--for example, it can be up to 50 percent more
expensive to train someone in the field of health care. Can you share
any thoughts about how we can help States pay for this kind of
equipment and facilities when necessary to train workers to meet the
needs of local businesses? Have other States confronted this issue, and
if so, what are the lessons we've learned?
Answer 2. The question here is not how you get equipment the first
time, but how you keep it state-of-the-art, which is not a one-time
investment. Would Congress create some incentives for business to
donate equipment to training/education providers? What about some
credit to vendors for greatly reduced purchase prices for those
institutions that use the equipment solely for training? Or incentives
(and waivers) to companies that allow the use of their facility for
non-employee training?
Question 3. While the One-Stop system appears to have the very best
intentions, my State has found it difficult to offer services in all
rural locations at all times. Some of the entities that are located at
a One-Stop Center might only be available certain hours of the day or
certain days of the week. Some people in our State have started to
offer virtual services to increase the availability in rural areas, and
the option has been met with positive feedback thus far. Have virtual
One-Stops been attempted elsewhere in the country? If so, have they
been successful? What are the lessons or guidance for Congress so we
can encourage more innovation like this, either virtual programs or
otherwise, with the goal of increasing availability to job seekers,
particularly in rural areas?
Answer 3. I am not familiar with virtual One-Stops. Distance
learning can be used to help obtain a GED or even access skills
training.
questions of senator bennet
Question 1. What role can business play in furthering workforce
development? Are there on the ground examples of private sector
initiatives that have helped to close skill gaps in our economy? Where
do you think the law can be improved to foster more partnerships
between business and workforce development providers? What are some
ways that the private sector, government, non-profits and labor can
partner in the development of our workforce?
Answer 1. Business and labor can, and in many places do, play a
central role in furthering workforce development. Particularly in areas
that have adopted industry or sector partnership models, business and
labor are leading drivers of the workforce development system. In
particular, there are numerous examples in which labor management
partnerships have provided leadership in developing innovative
workforce models that meet the dual needs of employers and workers/job
seekers. The District 1199C Training & Upgrading Fund, for example, has
served as the lead in bringing together partners in the Jobs to Careers
and National Fund for Workforce Solutions initiatives. These are
private sector initiatives that have leveraged private employer and
foundation funding with public dollars to implement long term workforce
interventions with significant impact.
Sector partnerships organize the stakeholders connected with a
specific local or regional industry--multiple firms, labor management
partnerships, education and training providers, and workforce and
education systems to develop workforce development strategies within
the industry. Successful sector partnerships leverage partner resources
to address both short- and long-term human capital needs of a
particular sector, including by analyzing current labor markets and
identifying barriers to employment within the industry; developing
cross-firm skill standards, curricula, and training programs; and
developing occupational career ladders to ensure workers of all skill
levels can advance within the industry.
Sector partnerships are active in nearly 40 States and the District
of Columbia. While many sector partnerships are driven at the local
level, some States have made sectoral initiatives a central part of
their overall workforce development strategies. For example,
Pennsylvania has nearly 80 partnerships serving more than 6,000 firms
across the Commonwealth, and more than 70,000 workers have received
training and related services as part of the program. Pennsylvania
partnerships have leveraged nearly $40 million in cash and in-kind
contributions from participating employers since 2005. Washington State
has also adopted sector strategies at the statewide level, and has
established more than 50 ``industry skill panels'' in 16 key industries
since 2000. The National Governors Association, the Corporation for a
Skilled Workforce, and the National Network of Sector Partners have
partnered on a multi-year project to accelerate State adoption of
sector strategies. The project includes a Policy Academy for States
looking to create or expand sectoral models, as well as a peer-to-peer
Learning Network of six States with significant sectoral experience.
Sector partnerships differ from Workforce Investment boards (WIBs)
and One-Stop Career Centers in key ways. One-Stop Career Centers are
designed to be universal employment and training resources, meaning
that they provide services to all job seekers--and all businesses--
within a local workforce area, while WIBs are intended to have broad
representation from the business community. Sector partnerships, by
contrast, work within a single, specific industry that has been
identified as critical to local or regional economic success. As a
result, sector partnerships develop a depth of understanding of a
specific sector that is neither practical nor desirable for a WIB.
Sector partnerships are not meant to replace WIBs--in fact, WIBs are a
key partner in many successful sector partnerships--nor are they meant
to offer the universal services of One-Stop Career Centers. Instead,
they are designed to help a local area or region develop depth and
capacity within targeted, specific industries in ways that complement
broader workforce efforts.
Sector partnerships are guided by employers and often focus, at
least initially, on skilling up an incumbent workforce. However, well-
designed sector partnerships can also have significant positive impacts
on low-income workers. According to a multi-year, random assignment
impact study conducted by the public interest research group Public/
Private Ventures, participants in sector-based training programs earned
an average of 18.3 percent (or about $4,500) more than a control group
over the 24-month period of the study. In addition, participants in
sector programs were more likely to work in jobs with benefits,
including health insurance and paid time off, and were more likely to
find consistent work--about 1.3 additional months of employment over
the 2-year period than the control group average.
A 2002 report from the Aspen Institute similarly showed improved
labor market outcomes for low-income workers in seven sector programs
across the country. Participants saw an average increase in hourly
wages of 31 percent over the 2 years of the study period, and 39
percent of participants had been able to move out of poverty on the
basis of their personal income alone.
Although Congress established a sector grant program as part of the
recently reauthorized Trade Adjustment Assistance (TAA) program, this
program is only available for communities impacted by foreign trade and
it has not yet been funded. WIA does not explicitly support sector
partnerships, meaning that there is limited Federal support for these
initiatives, and coordination between sector programs and other
elements of the workforce system can sometimes be limited.
Senators Brown (D-OH) and Snowe (R-ME), have introduced the
``Strengthening Employment Clusters to Organize Regional Success
(SECTORS) Act'' (S. 777), and have advocated for its inclusion in WIA
reauthorization. The SECTORS Act would amend WIA to provide designated
funding and distinct performance measures for industry or sector
partnerships. The bill would establish a series of 1-year planning
grants and 3-year implementation grants to eligible partnerships
comprised of employers, labor organizations, local WIBs, post-secondary
educational institutions, State workforce agencies or other entities
providing State employment services. Partnerships receiving grant funds
would be responsible for meeting a range of strategic objectives,
including identifying training needs of multiple businesses; helping
post-secondary educational institutions and training institutions align
curricula and programs to industry demands; developing and
strengthening career ladders within and across companies; and improving
job quality through improving wages, benefits, and working conditions.
Question 2. Do you find the current workforce development system to
be responsive to emerging industries and employment opportunities in
energy and health care? Do you find the training in these fields and
resources required for such training to be different? Are there
training models on the State level that we should replicate nationally?
Answer 2. Models for service delivery exist at the local level more
often than at the State level. The challenge with emerging industries
is that until you have employers and labor at the table defining their
workforce needs, you cannot design tailored services (one way to do
this is to engage in the retraining of incumbent workers as industries
or companies morph). On the other hand, the opportunity with emerging
industries is that the public workforce system is on level ground with
private vendors and has an equal opportunity to develop the supply
pipeline--the advantage being that populations that are the target of
public investments (veterans, disconnected youth, dislocated workers,
economically marginalized adults, etc.) have a good shot at filling
industry's need for emerging employment opportunities.
Response by Robert Templin, Jr. to Questions of Senator Harkin, Senator
Enzi, Senator Mikulski, Senator Murray, Senator Reed, Senator Brown,
Senator Hagan, and Senator Bennet
questions of senator harkin
Question 1. What is the single most important thing that community
colleges can do to help meet President Obama's goal--for the United
States to again lead the world in college completion rates. And what is
the single most important thing that community colleges can do to
ensure a competitive workforce now and in the future?
Answer 1. The answer to both questions is the same: The single most
important thing that community colleges can do to help meet President
Obama's goal and ensure a competitive workforce is for them to serve as
the ``on ramp'' for the growing number of Americans needing post-
secondary education, and once enrolled, these students need to be
assisted by community colleges in completing a post-secondary
credential in increasing numbers. If we are to reach the President's
goal, many more Americans who have traditionally been left on the
periphery of higher education, must become active and successful
learners in post-secondary education and they must achieve market-
valued credentials. Among the target groups are recent high school
graduates who would be the first in their family to go to college, high
school dropouts, 17-24-year-old high school graduates who are out of
school and who lack the training for a family-sustaining wage, low-
income wage earners, minorities, and immigrants. Community colleges are
America's best national resource for achieving the President's goal.
Question 2. How can the workforce investment system help students
with disabilities transition from education or employment skill
training programs into meaningful careers with opportunities for
growth? What do we need to do in order to better support students who
face barriers to accessing and succeeding in post-secondary education
programs or employment?
Answer 2. The current workforce investment system does not provide
resources to meet the needs of students with disabilities who need
support and guidance to help them advance from the classroom to the
workforce. Student transition from high school and community college
should begin in a student's freshman year of high school with
opportunities to assess interests in the context of career exploration.
All students should exit high school with career and post-secondary
education navigation skills that will serve them for a lifetime.
Many students with disabilities face employment barriers that make
the move from education to the workforce more difficult. These students
should have IEP-
directed services at both the secondary school and post-secondary
education levels that leverage the full array of resources from the
Workforce Investment Act-funded system and community-based
organizations while they are in school or attending community college.
While career navigation sets the course for these individuals,
access to supports is essential to make the journey. Such individuals
would benefit from the expertise of community-based organizations, such
as Goodwill Industries, that have the experience and resources to help
students with disabilities and disconnected youth to advance into
college, the workforce, and careers. As established local stakeholders,
such community-based organizations are strongly positioned to help
students with employment barriers learn specialized skills required by
local businesses and employers. Community-based organization's
experience helping people with a range of barriers equips them to help
students navigate a complex, often fragmented, maze of supports
administered by numerous Federal agencies including the Departments of
Labor, Education, Health and Human Services and others.
Students with disabilities and other barriers need assistance in
securing supports such as:
training,
appropriate professional clothing,
reliable transportation,
tools and materials,
assistive technology,
childcare,
stable housing,
help navigating ``benefit cliffs'' (sudden drops in
benefits like TANF, Medicaid, or SSI people experience when
transitioning to work), and
assistance in adjusting to the workplace.
It is recommended that our country establish a clear multi-system
goal of career and college readiness for all students; establish a
multi-systemic structure involving the Departments of Education, Labor,
and other agencies as needed, that provide career guidance to youth
(ages 14-24) with priority given to youth with disabilities and other
youth with characteristics that put them at higher risk of becoming
court-involved, homeless, or otherwise disconnected; and provide
funding for this specific program.
Question 3. How can the act be reauthorized to encourage and
support community college involvement with the workforce investment
system?
Answer 3. The American Association of Community Colleges (AACC) has
developed a comprehensive set of recommendations for WIA
reauthorization. Most of these recommendations directly answer this
question, and I have provided a copy of those recommendations for your
reference. (Attachment A) In brief, WIA should be authorized with an
eye towards cementing the community college role in planning and
executing workforce development strategies at the State, regional and
local levels. Customer choice, as implemented in the Individual
Training Accounts, should be better balanced with other types of
``cohort'' approaches that prioritize the use of community colleges for
training, including direct support for community college training
capacity at the national level, increased use of training contracts and
sector initiatives like the ones funded by the Community-Based Job
Training Grants. These approaches better address the need that
community colleges have to expand their training capacity. Finally,
though their impact has been muted by DOL-granted waivers in many
States, the subsequent eligibility requirements for training providers
must be significantly altered. Regionally accredited, public
institutions of higher education should be automatically eligible to
participate in the workforce system.
Question 4. Iowa's community colleges are essential partners in
training and upgrading the skills of job seekers and workers--for
example, by providing training opportunities to soon-to-be-released
inmates. How can community colleges work more efficiently with the
workforce system to ensure that individuals gain access to the courses
and credentials they need. How can community colleges do a better job
of working with local businesses to ensure those courses lead to good
jobs?
Answer 4. We must build upon and emphasize regional market
approaches that answer threshold questions regarding what jobs are
available now and in the future, what skills and credentials are needed
for those jobs, and what skills gaps there are in the workforce. After
those questions are answered, cohesive business-driven plans must be
formulated and executed to address the identified employment needs.
Sector-based initiatives that bring all the stakeholders together in a
focused way are particularly effective structures for doing all of
these things. Community colleges must endeavor to work more closely
with businesses and the workforce system as they devise and refine
their education and training programs, such as through the effective
use business advisory boards and by having representatives on WIA
boards. Perhaps most importantly, colleges must work closely with the
workforce system to ensure that workers coming into the system are
aware of all the tools available to them to help them access the
training and credentials they need, particularly those offered by
Federal and State student aid programs.
Question 5. What key challenges will community colleges face as
demand for their courses continues to grow and the economy changes?
Answer 5. The overarching challenge that community colleges face is
one of capacity, and many of the AACC recommendations for WIA
reauthorization address the issue of how the system can better help
colleges expand their training capacity in the face of growing demand.
In addition, and outside the scope of the WIA bill itself, community
colleges face tremendous challenges in expanding and modernizing their
facilities to meet this demand. Estimates put this need at well north
of $10 billion. The need is particularly acute for career and technical
education programs that require specialized facilities and equipment.
The American Graduation Initiative recognized this need by proposing to
provide $2.5 billion in seed money for community college facilities,
and there was nearly money for this purpose in the American Recovery
and Reinvestment Act. Chairman Harkin has been an outstanding champion
for facilities funds for community colleges, and we look forward to
continue working with him to realize Federal support in this area.
One other challenge, particularly in some career and technical
education programs, is the ability to hire and retain the faculty
needed not only to expand, but to maintain current training capacity.
There are two principal forces at work here. First, since the average
community college derives approximately 60 percent of its revenues from
State and local support, recent declines in this support have severely
impaired the colleges' ability to maintain sufficient faculty levels.
Second, in many workforce programs, the salaries offered by the
industries we are training for are much larger than those that colleges
are able to offer to its faculty. This problem is especially acute in
the nursing and allied health fields, but it is by no means isolated to
them.
Question 6. In your experience, what characterizes the most
effective partnerships between community colleges and secondary
schools?
Answer 6. The four critical elements characterizing effective
partnerships between community colleges and secondary schools are: