HIGH-DEMAND JOB TRAINING INITIATIVE

DISCUSSION PAPER

Background

On July 8, 2014, the Commission approved the dedication of $1 million of Workforce Investment Act (WIA) statewide funding to Local Workforce Development Boards (Boards) for the High-DemandJob Training initiative. Under this initiative, funding was made available for a two-year period for development of theHigh-Demand Job Training Grant program (program). Under this program, Boards that partner with a local economic development corporation(EDC) that dedicated economic development sales tax to jobtraining are eligible for WIA funding. Boards are eligible to receive upto $75,000 per project to be used as a 100 percent matchto the local economic development sales tax fundingdedicated to job training. These job training programs arealigned with high-demand jobs in the local workforcedevelopment area (workforce area) as defined by the local Board.

Issue

Texas employers continue to identify training needs to improve the individuals’ skill sets for jobs in high-demand occupations in their communities. Some Boards are collaborating with EDCs, which are funded by the Texas economic development sales tax, to develop job training programs to meet these training needs. The Texas economic development sales tax is an important tool for more than 500 communities across Texas to attract jobs and create wealth. EDCs are statutorily authorized to spend local economic development sales tax funds for job training.

To strengthen partnerships with communities, leverage available state and local resources, and foster collaboration with EDCs to promote training for high-demand occupations in Texas,

the Texas Workforce Commission (TWC)willleverage resources for necessary job training in high-demand occupations identified by Boards. Under the program, TWC will provide matching funds to Boards to partner with EDCs that are allocating local funds to job training projects.

Recommendations

Staff recommends the following:

  • Fund the High-Demand Job Training initiative with $1 million in Workforce Innovation and Opportunity Act (WIOA) statewideactivity funds over a two-year period;
  • Award funds to workforce areas; and
  • Provide a 100 percent local spending matchof up to $75,000 per project with a limit of one project per Board per year.

Staff also recommends implementing the programthrough a Request for Application process, as follows:

  • Eligible offerors are Boards that partner with EDCs.
  • EDCs will initiate projects to implement jobtraining programs with Boards.
  • The Board will determine if a proposed training program aligns with local efforts to support training for high-demand jobs.
  • Boards may then choose to partner with EDCs and apply to TWC for funds.

Staff also recommends that:

  • training costs be consistent with local limits as determined by the Board;
  • the key metric for the grant program bethe number of individuals trained in high-demand occupations; and
  • funds be used for any WIOA-eligible jobtraining activities,including:

skills assessments;

job screening;

scholarships for additional trainees; and

job placement.

DP High-Demand Job Training Initiative (Notebook) 74048

April 5, 2016 Commission Meeting Agenda Item