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Introduction INTRODUCTION Iowa’s workforce training programs have evolved from a business expansion incentive tool into a comprehensive, targeted human resource tool available to all Iowa businesses. The mission of IDED’s Workforce Development initiative is: to work in partnership with public/private service providers and other state agencies to actively promote Iowa’s preeminence in new employee training, incumbent worker preparation, lifelong learning, and development and expansion of the state’s labor pool to enhance the state’s businesses’ competitiveness, thus keeping companies located in Iowa and raising the wages of Iowa workers. Iowa’s industry-driven workforce development programs and services enhance Iowa’s economic well being by increasing the skills of an already productive Iowa workforce. Iowans, with their unmatched work ethic, are acquiring skills that will increase their earning and improve the competitiveness of Iowa businesses. By leveraging training resources, filling funding gaps in human resource development initiatives, and sponsoring business consortia that address common employment training needs, the skills of Iowa’s workers are enhanced, allowing its industries to grow. Iowa training dollars can be used to provide the following services: - Basic Adult Education - Skill Assessment - Job related counseling - Training services of a community college or another educational institution - Training related materials, equipment, software and supplies - Testing and evaluation of employees - Cost of training services for company, college or contracted trainer - Reimbursement of training travel costs for employees - Contracted or professional services Eligible applicants include Iowa businesses engaged in manufacturing, processing, assembling products, warehousing, wholesaling, or conducting research and development. Businesses engaged in the provision of services that have customers outside of Iowa are also eligible. 1 IOWA NEW JOBS TRAINING PROGRAM (260E) The Iowa New Jobs Training Program assists businesses which are creating new positions or new jobs. If a company is expanding its operations or locating a new facility in the state of Iowa, the New Jobs Training Program can provide flexible funding to meet a variety of training and employee development needs. The assistance available ranges from highly specialized educational programs to basic skill training for new positions. The community college district in which the new or expanding business is located issues training certificates (bonds) to pay for the training costs. These certificates are repaid by diverting 1.5 percent of the increased payroll withholding tax revenues resulting for the creation of the new jobs. Property tax revenues, resulting from capital improvements, may also be used for repayment. An additional 1.5 percent supplemental withholding credit, designed to promote the creation of high-quality jobs within Iowa, provides additional funding for companies participating in the Iowa New Jobs Training Program. The amount of supplemental withholding credit is dependent upon the individual jobs that meet the current wage requirements and upon the wages paid to the individuals in these jobs. Eligibility for the supplemental credit is based on a one-time determination of the starting wage. The dollar amount available for training through the program is dependent upon the training and development needs and projected tax revenue available to repay the certificates. Applications for this program must be made through the local community college. A detailed listing of the Iowa New Jobs Training Program projects that have been funded since FY 83 are listed in Appendix A. THE IOWA JOBS TRAINING PROGRAM (260F) The Iowa Jobs Training Program helps Iowa businesses fund customized training programs for current employees. The program is designed to foster growth and competitiveness of Iowa's business and industry by helping build workforce skills and expertise to not only compete but to excel. Each of Iowa's community colleges works with the companies to develop training programs that are funded through forgivable loans. The maximum award is $25,000 for each project at a business site. A business site may be approved for multiple projects, with maximum funding over three years not to exceed $50,000. A cash match is required by the company for projects exceeding $4,999. 2 In FY 01 the Iowa Jobs Training Program funded 348 projects, spending $5,272,047 on training 11,997 Iowa workers. Some examples of the types of training that the program has funded include: ISO 9000, computer training, safety training, supervisory training, team building and others. Community College Businesses Network funded five projects, spending $700,000.00 on training 1331 Iowa workers. A list of the Iowa Jobs Training Program projects are listed in Appendix B. Community College Business Network and Consortium projects are also included. APPRENTICESHIP PROGRAM The Apprenticeship Program funds projects that increase the skills of workers through a combination of classroom and on-the-job training. This program has been established to fund high-technology apprenticeship programs, or those programs that are utilizing the most up-to- date technologies that are available in the workplace. Apprenticeship programs positively impact workers' skills and thus enhance participants' earning capacity. Businesses also benefit by having well trained employees, resulting in more efficient productions and greater profitability. All apprenticeship projects funded through IDED must be approved by the Bureau of Apprenticeship and Training. Application for this program must be made through a local community college. During FY 00 the Apprenticeship program received funding of $1,050,000. This funding was allocated to the community college based on a percentage of contact hours in FY 00. A total of 48 projects were funded. BUSINESS NETWORK TRAINING PROGRAM The Business Network Training Program fosters the growth and competitiveness of Iowa's workforce and industry by developing Iowa's workforce through a group effort. Projects must be for networks of five or more businesses from two or more community college districts, which have identified a common training need. A network can be sponsored by a business, trade association, labor organization, community college or other incorporated entity. Applications for this program can be made to either a community college or to the Iowa Department of Economic Development. 3 Eligible businesses include those engaged in manufacturing, processing, assembling products warehousing, wholesaling, or conducting research and development. Businesses engaged in provision of services, such as financial services and information technology, which have customers outside of Iowa, are also eligible. In FY 01 Department Sponsored Business Network funded four projects, spending $300,000.00 on training 892 Iowa workers. INNOVATIVE SKILL DEVELOPMENT PROGRAM The Innovative Skills Development Program addresses Iowa's current and future workforce needs. Program services are prioritized in support of projects which concentrate on skill development for new or emerging technologies, as well as enhancement of current technological skills. Individual businesses, business consortiums, trade or labor organizations, educational institutions, and other public or private non-profit organizations which represent a majority of individuals or businesses that will benefit from training may apply for program services. Innovative Skills Development Program awards are made as grants. Allowable activities range from assessment and curriculum development, to participant outreach and counseling, to tuition payment. Applications are made directly to the Iowa Department of Economic Development. Funding was not available in FY01. TARGETED INDUSTRY TRAINING PROGRAM The Targeted Industry Training Program funds human resource development needs for specific industries which have been identified as essential to the diversification and growth of Iowa's economy. Targeted Industry projects are approved for a maximum period of two years. The project must be completed by the agreed completion date. Program awards are issued as grants. Funds are accrued over the course of the year as Workforce Development Fund monies are diverted quarterly. The maximum award is determined by IDED based on availability of program funds. Individual businesses, a consortium of businesses, or trade or labor organizations engaged in the following targeted industries may apply: 4 - Value-added agricultural products - Insurance and financial services - Plastics - Metals - Printing, paper or packaging products - Drugs and pharmaceuticals - Software development - Instruments, measuring devices and medical instruments - Recycling In FY 01 Targeted Industries Training Programs funded four projects, spending $700,000.00 on training 3811 Iowa workers. ACELERATED CAREER EDUCATION - 260G The Accelerated Career Education program, enacted by the Legislature in 1999, supports the development or expansion of educational programs at the state’s community colleges that address critical workforce needs in Iowa businesses. The legislation contained three components: vertical infrastructure, program job credits and student aid. In FY 01 monies were expended for the vertical infrastructure component. Iowa's 15 Community Colleges shared $5.3 million worth of awards. An essential element of the application was for the colleges to increase their number of students by expanding
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