1 BUILDING AND CONSTRUCTION TRADES DEMONSTRATION PROJECTS 2 DISCUSSION PAPER 3 4 Background 5 6 When Hurricane Harvey hit in August 2017, thousands of Texas homes were destroyed, further 7 exacerbating the need for building and construction trades, with a strong demand for residential 8 construction. Storm surge, catastrophic and widespread flooding, and damaging winds 9 devastated homes in coastal communities, Houston, and surrounding areas of southeastern Texas. 10 Five local workforce development areas (workforce areas) along the Texas coast were hardest 11 hit, with most of the counties in these areas declared to be part of the Presidential Disaster 12 Declaration. These workforce areas include Deep East Texas, Southeast Texas, Gulf Coast, 13 Golden Crescent and Coastal Bend. Three other workforce areas, Rural Capital, Alamo, and 14 Brazos Valley, were also impacted. In addition to funds made available for temporary clean up 15 jobs, these federal dislocated worker grants were also provided to community colleges in the 16 impacted areas to address a shortage of skilled labor in the construction industry through short- 17 term, fast track training courses. Adults dislocated by Hurricane Harvey can be served through 18 the existing federal dislocated worker grants in impacted Board areas, to participate in either 19 temporary clean-up work, or to engage in construction related training.

20 A dire need for construction workers existed prior to Hurricane Harvey; and a 2014 survey of 21 Texas construction companies confirmed that need stating that:

22  35 percent had difficulty filling professional and craft worker positions; and 23  33 percent had difficulty filling their craft worker positions but did not have issues 24 finding professional position candidates.

26 The existing construction workforce has been called into action to support the recovery efforts 27 along the Texas coast, and we continue to have a need across the state to build the skills of the 28 next generation of building and construction skilled trade workers going forward.

29 30 Issue 31 Hurricane Harvey created additional demand for building and construction trades including 32 carpenters, plumbers, pipefitters, welders, masons, and electricians in the Harvey impacted areas, 33 and in other parts of the state that were already suffering a shortage of construction workers. 34 Additional support for workforce development training is needed to assist Texas adults by 35 preparing them for employment in high-demand occupations in the building and construction 36 trades. Additional grants focusing on building and construction trades statewide will support the 37 building of the talent pipeline for this industry and ensure we have the needed workforce.

38 39 Decision Points

DP – Building and Construction Trades Demonstration Projects – Notebook 12142017 1 Staff seeks direction in the following:

2  providing $800,000 in WIOA funds to continue to support Texas community and 3 technical college programs that provide training to Texas individuals 18 years of age and 4 older to prepare them for employment in high-demand occupations in the building and 5 construction trades; 6  capping the maximum amount of individual awards at $400,000; 7  capping the maximum amount of the cost per participant at $3,000; and, 8  prohibiting the use of funds for equipment over $5000. 9 10

DP – Building and Construction Trades Demonstration Projects – Notebook 12142017