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Published March 2007

Public Funds for Training: Is Your Company Getting Its Share?

C. Michael Ferraro

It makes sense for these leaders to learn what types of worker-training programs are available, how to access these funds, the next steps required and critical deadlines. Some of these programs already are in the process of ramping up for this year.

It's also important to know how public funds for training are allocated to states through the federal Workforce Investment Act (WIA) of 1998, as well as through federal programs in education, health and human services, and economic development agencies.

The Federal Workforce Investment Act of 1998
WIA was designed to coordinate and streamline the large number of worker-training programs the federal government allocates to states and, in turn, to local governments to administer. It also established state and local workforce investment boards (WIBs) to help the coordination of all these worker-training programs though policies and program accountability measures. In addition, the legislation created the nation's One-Stop Career Centers, where all these programs are to be made available to individuals and businesses.

The biggest dynamic the legislation was supposed to change was to better involve and engage the local business communities and economic developers. The plan was to use these business/economic resources to help target training for local residents in the skills local employers most needed.

WIA is roughly a $4 billion program. By law, 85 percent of these training funds need to be allocated to local WIBs. Depending on the state, they get between $1 million and $25 million of WIA funding. Most other federal programs reside in social services and education, where each state decides how those resources are allocated to local governments.

But as more economic competitive programs are approved by Congress, more and more of them include a worker training component. More local board allocations are getting and staying in the $10 million range, either through WIA appropriations or through grants for which the local boards are eligible.

Local WIBs
One way to get access to workers trained with the skills your company needs is to reach out to the local WIB. It selects the programs and determines the program requirements for the use of its federally allocated WIA funds. By serving on a local WIB, or on one of its committees, you could help select which programs and skills training are needed most in your community or your organization.

Local boards are required to try to coordinate all the federal worker-training programs that come to local government. Some states allocate most of their federal training programs to local boards that decide how the funds are spent, but most states have not yet made that change. Check with your local WIB staff to find out what resources are available.

Federal Grant Opportunities
It's also worthwhile to look into specific grant opportunities to which you might have access. Grants come and go throughout the year, and you should keep apprised when they are available and how you can participate. Also keep in mind that in most cases, public funds don't come directly to the business but to a public institution in partnership with a business. Carefully reviewing the grant application is an important part of this process. Ensuring the training provided by the public institution or nonprofit meets your needs is your responsibility - the business' active participation is key and required in the grant application in most cases.

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