Idaho Workforce Development Council s1

IDAHO WORKFORCE DEVELOPMENT COUNCIL June 13, 2013 – Draft Meeting Minutes

Welcome and Introductions Council Chair Tim Komberec called the meeting to order at 9 a.m. and welcomed everyone. Chair Komberec announced that John Chatburn, Phil Clifton, Jody Lewis, Brad Murray, Jan Nielsen, and Robert Poyser will not be attending today. Chair Komberec introduced Luci McDonald sitting in for Darrel Anderson, Terry Patterson for Jerry Beck, Raymond Grosshans for Richard Holman, Roy Valdez for Roger Madsen, Randy Shroll for Jeff Sayer, and Luci Willits representing Tom Luna.

Agenda Review Chair Komberec reviewed the agenda and no additions were requested.

Consent Agenda Chair Komberec explained that the consent agenda has been reviewed and approved by the executive committee.

Chair Komberec asked Idaho Department of Labor Assistant Deputy Director Dwight Johnson to explain the consent agenda which includes: • Minutes from March 13, 2013 council meeting • Approval of Change in WIA Income Eligibility Criteria (Transmittal #1)

Chair Komberec accepted a motion by Mike Rush, seconded by Tony Fernandez to approve the consent agenda with a correction to the March minutes, page 4 changing to seven forums; the items on the consent agenda were approved unanimously by voice vote.

Economic Outlook Chair Komberec introduced Idaho Department of Labor Chief Research Officer Bob Uhlenkott who presented an economic outlook report to the council.

Mr. Uhlenkott thanked the council for recently endorsing the annual Workforce Information Grant and discussed the four measures of Goal 1 (Create Jobs that Sustain Idaho Workers and Grow the Economy):  Measure 1 - Reduce Idaho’s unemployment rate by 40 percent by 2015. The U.S. rate for May was released at 7.6% and in April, Idaho’s rate was at 6.1%. The increased labor force participation could edge rates up, but Idaho’s aging workforce put pressure on a falling labor force participation rate.  Measure 2 - Reduce Idaho’s underemployment rate by 40 percent by 2015. Total unemployed workers plus discouraged workers shows the unemployment rate at 7%. Those persons employed part time, working less than 35 hours per week who want to work full time and gave an economic reason for working part time, the UI rate is at 13.5%. These individuals are sometimes referred to as involuntary part-time workers.  Measure 3 - Create 40,000 jobs with $12 or better wage rates with health benefits by 2015. It is estimated since 2010 around 9,000 to 10,000 jobs will have been created by the end of 2012.  Measure 4 - Attain the Governor’s “Project 60” goal Idaho’s Gross Domestic Product (GDP) grew by 2.0% in 2012 down from 2.5% in 2010 and 2.6% in 2011. To reach 60 Billion GDP in 2013 it would take exactly 3% nominal GDP growth this year, but Idaho is on pace for 2014.

Mr. Uhlenkott explained the Industry and Occupational Short Term Projections and highlighted the “silver tsunami” problem that is affecting Idaho’s economy. He emphasized the service sectors are definitely

of 9 Minutes of June 13, 2013 increasing and jobs requiring more education are growing. Idaho is very slowly evolving into a more sophisticated workforce, but the biggest problem in our economy seems to be a skills mismatch.

Discussion followed with questions from council members about how this data informed the discussion on the need for a more educated workforce.

Eligible Training Provider (ETP) Process Improvement (Transmittal #2) Chair Komberec introduced Idaho Department of Labor Senior Planner Rico Barrera to provide an update on a proposed new ETP process to the council.

Mr. Barrera explained that the Workforce Investment Act requires states to approve training providers before WIA funds can be used to pay for participants’ occupational training. The primary requirement for inclusion to the list is registration and compliance with the State Board of Education’s statutes for proprietary schools.

Mr. Barrera said that to address the council’s concerns, the proposed new process will incorporate several outcome-based criteria for inclusion to the Eligible Training Provider (ETP) list. These criteria would include having training providers make available the number of students enrolled in a proposed program, the number of students completing those programs, the employment rate of these students and the average earnings of these students once employed.

The new ETP list process will be facilitated by the Idaho Department of Labor’s new labor exchange and multi-program management information syiSTEM America’s Job Link Alliance (AJLA). The new computer- based syiSTEM will require each training provider to apply online and respond to the new eligibility criteria questions established by the council. Once the AJLA database contains historical data, it will generate training provider outcomes for WIA participants enrolled in their programs. Mr. Barrera explained that the state would notify current providers of the process change, allow providers time to compile the individual program information and begin enforcing the new process in July PY 2014.

Chair Komberec accepted a motion by B. J. Swanson, seconded by John Young to approve transmittal #2; transmittal #2 was approved unanimously by voice vote.

The council approved the proposal but requested additional details on the process to assure it was not overly burdensome for state colleges and universities. Rico and Allison McClintick from the State Board of Education will address these concerns and report at the October council meeting.

WIA Budget Disbursement (Transmittal #3) Chair Komberec asked Idaho Department of Labor Workforce Bureau Chief Marsha Wright to review the Workforce Investment Act PY 2013 funding levels.

Ms. Wright explained that the Workforce Investment Act (WIA) and Employment Services (ES) program allotments were negatively impacted because of the relative drop in Idaho’s unemployment rate. In addition, the U.S. Department of Labor applied funding sequestration during the first quarter of 2013.

Ms. Wright reported that the overall funding for the state’s formula for workforce programs decreased significantly for the coming year. The WIA Adult program allocations decreased 5.5 percent, the Youth program allocations decreased 10.0 percent and the Dislocated Worker program allocations decreased 15.2 percent from PY 2012. Ms. Wright said that despite the reductions, the department will continue to implement strategies that will allow us to maintain the highest level of service delivery possible and help Idahoans return to employment.

of 9 Minutes of June 13, 2013 Ms. Wright explained that the department has recently applied for a Dislocated Worker National Emergency Grant (NEG) which focuses on the older worker population to provide extra funding.

Transfer of WIA Funds (Transmittal #4) Chair Komberec recognized Idaho Department of Labor Senior Planner Rico Barrera to explain the waiver request to transfer funds between WIA Adult and Dislocated Worker programs.

Mr. Barrera explained that under the Workforce Investment Act (WIA), a state receives separate funding allocations for administering its Adult and Dislocated worker programs. Recent federal appropriations allow transfer up to 30 percent of funds in a program year between these two programs with the governor’s approval.

During the last council meeting, the council took advantage of the federal law and approved a new policy to transfer funding of up to 30 percent of a program year’s allocation between the programs, subject to the governor’s approval. This waiver request will allow transfer of funds up to 50 percent of a program year’s allocation between the programs.

Chair Komberec accepted a motion by Bert Glandon, seconded by Mike Rush to approve transmittal #4; transmittal #4 was approved unanimously by voice vote.

WIA Employment Service Performance Measures (Transmittal #5) Chair Komberec asked Idaho Department of Labor Senior Planner Cheryl Foster to explain the proposed performance measures for the WIA and Employment Service programs.

Ms. Foster explained under the 1998 Workforce Investment Act, states must propose expected levels of performance for each of the common performance measures.

Ms. Foster said that the following are Idaho’s proposed performance goals for PY 2013: WIA Adult Programs 1. Entered Employment Rate 84.0% 2. Retention Rate 88.0% 3. Average 6 Month Earnings $12,500

WIA Dislocated Worker Program 4. Entered Employment Rate 87.0% 5. Retention Rate 90.2% 6. Average 6 Month Earnings $15,000

WIA Youth 7. Placement in Employment or Education 79.6% 8. Youth Attainment of a Degree or Certificate 80.1% 9. Literacy and Numeracy Gains 38.6%

Wagner Peyser 1. Entered Employment Rate 60.0% 2. Retention Rate 80.0% 3. Average 6 Month Earnings $13,000

Ms. Foster explained that if a state meets or exceeds its performance measures for the programs administered under the Workforce Investment Act, Carl Perkins (PTE) and Adult Basic Education federal grants, it is eligible to apply and receive incentive funds to help further improve its performance. This year, the Idaho Department of Labor, Adult Basic Education and Professional Technical Education programs each Page 3 of 9 Minutes of June 13, 2013 exceed their performance measures and are eligible to apply for a $667,000 incentive grant. Representatives from Adult Basic Education, Professional Technical Education and the Department of Labor have discussed various proposals and will submit their grant application by June 24.

WIA Reauthorization Congressional Update Chair Komberec introduced Idaho Department of Labor Senior Planner Gordon Graff who presented an update on the reauthorization of the Workforce Investment Act (WIA) to the council.

Mr. Graff explained that the original Workforce Investment Act of 1998 is the primary federal program that supports workforce development activities, coordinates multiple employment programs, and provides service delivery through 3,000 job centers (On Stops) nationwide with 25 job centers in Idaho.

Mr. Graff reported that the WIA was originally authorized for five years and expired in 2003. For the last ten years the Workforce Investment Act programs have been funded through the annual appropriations process. In the 113th Congress, the House Committee on Education and the Workforce created HR 803, the Supporting Knowledge and Investing in Lifelong Skills Act (SKILLS Act) which passed the House March 15, 2013. The Senate Committee on Health, Education, Labor and Pensions (HELP) is working on legislation to reauthorize the Workforce Investment Act (WIA) using the June 2011 discussion drafts. iSTEM Update Chair Komberec introduced State Board of Education Special Projects Manager Allison McClintick to provide an Idaho Science, Technology, Engineering, and Mathematics (iSTEM) update to the council.

Special Projects Manager McClintick reported that iSTEM was formed in 2010 by business and industry leaders and education stakeholders who wanted to provide professional development and resources for students and teachers in iSTEM education.

Ms. McClintick said that iSTEM education provides K-12 teachers with skills, knowledge, tools, and resources, brings inquiry-based, problem-based learning and 21st century technology into the classrooms, provides the network of support for rural and urban schools and connects business, industry, and government to education. Ms. McClintick explained that by forming 87 partnerships in Idaho, six regional centers have been established and nearly 1650 educators have been trained which has impacted over 49,000 students.

Ms. McClintick introduced Dr. Louis Nadelson, BSU professor who presented an update on iSTEM education activities and explained that teachers have content knowledge but lack context, school iSTEM is not aligned with workforce iSTEM and increasing the capacity for K-12 to address 21 st century skills are some of the workforce development challenges.

Dr. Nadelson reported the regional summer institutes for iSTEM are located at: . Eastern Idaho Technical College, Idaho Falls June 17-19 . Idaho State University, Pocatello June 17-20 . North Idaho College, Coeur d’Alene June 17-20 . College of Southern Idaho, Twin Falls June 24-27 . College of Western Idaho, Caldwell June 25-27

Dr. Nadelson reported that the state is teaching 500 teachers this summer in iSTEM academies but have 2,000 on a waiting list. It costs about $1,500 to $2,000 per teacher.

Tom Kohler, a high school teacher from Idaho Falls demonstrated iSTEM teaching techniques with a hands- on demonstration that was very engaging for council members.

Discussion followed on how the state could expand this program to get more teachers trained quickly. Page 4 of 9 Minutes of June 13, 2013 Report from Chair Komberec Chair Komberec announced that the Forrest M. Bird Charter Schools in Sandpoint will receive a $5 million grant from the Albertson Foundation to offer nine credits of aerospace training to high school students. A majority of the training will be offered online so any high school student in the state will be able to participate. This successful grant proposal is the direct result of bringing together education and industry in the Idaho Aerospace Alliance.

Chair Komberec reported that the Albertson Foundation’s commitment to promote education reform efforts in rural schools will be a great place for innovation due to the close relationships and support from the community. The Albertson Foundation will also be conducting Idaho-specific research on developing best practices to transform education in rural and frontier schools.

Chair Komberec explained that the next council meeting will be held on Wednesday, Oct. 2 nd. This date change will allow U.S. Department of Labor Regional Administrator Virginia Hamilton and Director Roger Madsen to attend. This will be Director Madsen’s last meeting before his retirement in November.

Chair Komberec announced that Dwight Johnson has changed responsibilities at the Department of Labor and today will be his last time as lead staff for the council. Sue Simmons, the Department’s Deputy Director will assume the lead staff responsibility. Chair Komberec thanked Dwight for his service and for the tremendous staff assistance from the Department of Labor and other state agencies that support the council.

Sector Strategy Presentation Chair Komberec introduced Idaho Department of Labor Regional Business Specialist Brent Tolman to explain the sector strategy approach which is critical for Idaho’s economic development.

Regional Business Specialist Brent Tolman quoted the following studies: o The Georgetown Center on Education and the Workforce projects that by 2020 nearly two out of every three U.S. jobs will require some postsecondary education or training. o A recent McKinsey Survey finds 64 percent of companies cannot find qualified applicants for management, scientific, engineering or technical positions. o A National Manufacturing Institute survey finds that 67 percent of small and midsize manufacturers report moderate to severe workforce shortages and predict this will get only worse.

Mr. Tolman explained that the vision of sector strategies is to bolster regional economic competitiveness by aligning industry, education, economic and workforce development. The goal is to help education providers more effectively respond to the workforce needs of business by developing a regional approach that focuses on key industry clusters and creates career paths for workers. Mr. Tolman said the benefits of sector strategies for Industry are 84% increased productivity, 41% reduced turnover, 19% less rework, 23% fewer customer complaints and 100% of the employers said their participation was valuable. Mr. Tolman said the benefits of sector strategies for Workers are 48% of workers exit poverty earn significantly more ($4500 over 24 months) and have higher quality jobs with benefits including health insurance, paid vacation and sick leave. Mr. Tolman said current and emerging skill gaps can be addressed, traditional geopolitical boundaries can be overcome and there is better alignment of state programs and resources serving businesses and workers by implementing sector strategies.

WDTF Sector Strategy Grant RFP Criteria and Process (Transmittal #6) Page 5 of 9 Minutes of June 13, 2013 Chair Komberec introduced Idaho Department of Labor State Workforce Development Trust Fund (WDTF) Coordinator Jenny Hemly to discuss the proposed criteria and RFP process for the new grant.

Ms. Hemly reported that the WDTF Industry Sector Grant pilot program will offer a maximum of $3,000,000 in awards with a maximum of three awards. Idaho public post-secondary institutions will be eligible to apply for a two-year WDTF Industry Sector Grant for up to $1,000,000 per application.

Ms. Hemly said the goal of the WDTF Industry Sector Grant is to increase employment and wages of Idaho workers by providing training to meet the needs of industry sector(s) to develop an applicant pool of skilled workers for Idaho businesses.

Ms. Hemly explained the draft guidelines and criteria for this grant are: . Applicant must be an Idaho public postsecondary institution, a minimum of three businesses who have the similar occupational training needs, a 25 percent cash match from business partners, and a targeted occupation labor market analysis that identifies the training needs for the industry

. The grant recipient and grant administrator is the public post-secondary institution

. The sector partner cash match will be required upfront when the project begins

. Partner businesses must sell a majority of their products or services (more than 50%) outside the area in which they are located

. Occupations must pay $12+ an hour as supported with labor market information or pledged by employer partners

. Administrative costs will not exceed five percent of the WDTF grant award

. Equipment can be purchased with the 25 percent cash match; grant funds cannot be used to purchase equipment

. Grant will be approved for two years with the option for a one year no cost extension

Chair Komberec accepted a motion by Linda Clark, seconded by Bert Glandon to approve transmittal #6. Discussion followed on the purchase of equipment criteria. Staff expressed concern about using taxpayer dollars to purchase equipment but Dr. Rush, Dr. Fernandez and Dr. Glandon said they trusted the Commerce and Labor Directors to make good decisions about when equipment was not appropriate and argued that in some cases they felt equipment purchases might be an essential component of a successful training program. They stated they didn’t want to eliminate potentially good proposals by a blanket prohibition on equipment purchases.

Chair Komberec accepted an amended motion by Mike Rush, seconded by Mike Nelson to transmittal #6 which would eliminate the proposed prohibition on using grant funds to purchase equipment; transmittal #6 as amended was approved unanimously by voice vote.

Policy Discussion on possible other WDTF programs (Transmittal #7) Chair Komberec asked Idaho Department of Labor Assistant Deputy Director Dwight Johnson to review other possible ideas for other Workforce Development Training Fund (WDTF) programs.

Assistant Deputy Director Johnson explained that the statutory language of the WDTF mandates that money in the training fund be used “to provide training for skills necessary for specific economic opportunities and industrial expansion initiatives” and “to provide training to upgrade the skills of currently

of 9 Minutes of June 13, 2013 employed workers at risk of being permanently laid off . . . based on procedures, criteria and performance measures established by the [workforce development] council”.

Mr. Johnson explained that on May 8, 2012 the WDTF Talent Development Program was approved by the council and it was designed to provide immediate assistance to current and former Idaho unemployment insurance claimants during the recent economic downturn. The program allows grants to eligible companies to train employees who are filling job vacancies provided the company hires an applicant who is currently receiving or who has exhausted unemployment insurance benefits. Because the state’s unemployment rate has now fallen below seven percent this program is currently inactive.

Discussion followed of possible programs to expand the use of WDTF dollars: • Re-instate the WDTF Talent Development Program by eliminating the current seven percent unemployment rate. • Mike Nelson proposed a WDTF sponsored scholarship program for incumbent workers to gain a certificate, associate’s degree, bachelor’s degree, master’s degree, or registered apprenticeship training program. An employee would be identified through an application process to enroll at an Idaho post-secondary educational institution in a field of study related to the company’s identified workforce needs. The company would contribute 25 percent of the scholarship and the remaining would come from the WDTF. The goal would be to increase wage gains and promotional opportunities for current employees through enhanced educational attainment. (No action taken) • John Young proposed the idea that the Commercial Real Estate construction industry could receive the same exemption as the health care industry to receive WDTF even though they don’t sell 50% of their services and products outside the area. (No action taken - a formal proposal will be presented at the October council meeting)

Chair Komberec accepted a motion by Bert Glandon, seconded by Ken Wiesmore to approve the WDTF “Talent Development Program” by eliminating the current seven percent unemployment rate; the WDTF “Talent Development Program” was approved unanimously by voice vote.

Update on the Educational Attainment Task Force Recommendations Chair Komberec asked co-chair of the Educational Attainment Task Force Bert Glandon to give an update on the meeting with the Governor’s office on the task force recommendations.

Co-Chair Glandon reported on the positive Governor’s response to the Educational Attainment Task Force recommendations. Co-Chair Glandon explained that Co-Chair Komberec, himself and others will be traveling to Twin Falls, June 20th to discuss with the State Board of Education the following eight recommendations: 1. Credit for Prior Learning 5. Career Readiness Tools 2. Education Transparency Metrics 6. Industry Advisory Committees 3. Career and College Counseling 7. Credential Benchmark Survey 4. Workforce Development Training Fund 8. Industry/Education Partnership Event Sector Grant

Topic for Next Task Force Chair Komberec explained that at the Executive Committee meeting on May 15th the committee discussed ideas for possible topics for another task force. After consideration, the Executive Committee’s recommendation is that the council focus its efforts on making sure the recommendations of the Educational Attainment Task Force come to completion rather than setting up a another task force on a new topic. Discussion followed and the council agreed with the Executive Committee’s recommendation.

of 9 Minutes of June 13, 2013 Chairman Komberec expressed his desire to have an “action plan” developed by staff for each of the recommendations for the next council meeting and expressed his personal interest in pursuing the industry/education partnership event.

Discussion followed on using an existing event such as the annual iSTEM conference or annual PTE conference as potential venues to partner. Jay Larson was of the opinion that it would be better to establish a new event that was not partnered with other priorities. There was unanimous agreement that any successful event must be led by business and the idea was proposed that the Idaho Business for Education organization might be an ideal organization to partner with for sponsoring this event. Bert Glandon and Jay Larsen volunteered to meet with Rod Gramer to discuss this idea and report back to the council at their next meeting.

Chair Komberec announced that the next council meeting will be held Wednesday, October 2, 2013 and the meeting adjourned at 3 p.m.

Attendance

Members Darrel Anderson (substitute Luci McDonald) Tom Luna (substitute Luci Willits) Dick Armstrong (absent) Roger Madsen (substitute Roy Valdez) Gerald Beck (substitute Terry Patterson) Shirley McFaddan Kara Besst Brad Murray (absent) John Chatburn (absent) Mike Nelson Linda Clark Jan Nielsen (absent) Philip Clifton (absent) Robert Poyser (absent) Tony Fernandez Brent Reinke (substitute Terresa Baldridge) Russell Gee Mike Rush Bert Glandon Jeff Sayer (substitute Randy Shroll) Sam Haws David Schmitz Richard Holman (substitute Ray Grosshans) B. J. Swanson Tim Komberec Rian Van Leuven (absent) Brady Kraft Aaron White Alex LaBeau Kenneth Wiesmore Jay Larsen John Young Jody Lewis (absent)

Guests Ricia Lasso Don Alveshere Allison McClintick Rico Barrera Vera McCrink Larry Belisle Terry Butikofer Denise McDonald Scott Fenwick Patricia Nelson Cheryl Foster Carol Padovan Gordon Graff Carl Powell Evelyn Grime Marie Price Jenny Hemly Carmela Ramirez Dan Holmes Todd Schwarz Dwight Johnson Linda Strickland Tom Kohler Brent Tolman

of 9 Minutes of June 13, 2013 Bob Uhlenkott Marsha Wright

of 9 Minutes of June 13, 2013