The Working Poor Families ProjecT Policy BrieF  summer 2011 imProving access To aPPrenTiceshiP: sTrengThening sTaTe Policies and PracTices

david altstadt 1

inTroducTion The Working Poor Families ProjecT although the labor market is flush with out-of-work job seekers strengthening state Policies for competing for few employment opportunities, businesses are america’s Working Poor still reporting difficulty finding qualified staff. 3 This skills mismatch has persisted despite rising enrollment in millions of american postsecondary education and training programs. 4 The media is breadwinners work hard to awash with stories of unemployed workers returning to school support their families. But, for retraining only to remain jobless upon graduation because despite their determination and their career choice or newly acquired skills do not meet the effort, many are mired in low- needs of employers. 5 if left unchecked, these mismatches could wage jobs that provide likely worsen in the coming years as the u.s. economy emerges inadequate benefits and offer from the great recession radically transformed from a few opportunities for advancement. in fact, nearly generation ago—requiring workers who have a different and one in three american working more advanced set of skills to fill growing occupations in service, families now earn wages so low technology, and knowledge-based fields. 6 that they have difficulty surviving financially. 2 more than ever before, it is critical that the united states invests more deeply in education and skills development launched in 2002 and currently strategies that are driven by the demands of the labor market supported by the annie e. and, while doing so, are readily accessible to all levels of the casey, Ford, joyce, and mott labor force. Fortunately, a tried and true approach already exists foundations, the Working Poor for directly tying education to employment, ensuring that Families Project is a national workers acquire skills and work experiences needed to fill actual initiative that works to improve these economic conditions. The jobs. apprenticeship, wrongly pigeonholed as an on-the-job project partners with state training apparatus solely for unionized construction trades, is nonprofit organizations and ripe for a rebirth as the nation’s premier pathway to higher supports their policy efforts to education and sustainable careers across a wide range of better prepare america’s industries, work settings, and geographic regions. working families for a more secure economic future. For apprenticeship to reach its potential, both public and private sectors will need to commit to providing support. For more information: Typically, employers have borne most, if not all, of the costs of www.workingpoorfamilies.org developing apprenticeship programs and training and paying apprentices, while federal and state governments have assumed

Working Poor Families Project | www.workingpoorfamilies.org | [email protected] | (301) 657-1480 advisory and policing roles, setting and enforcing considered employees of the firms and standards for programs choosing to register with organizations where they are training. Private them. government investment and outreach is employers, industry associations, labor- critical to building a more robust apprenticeship management organizations, and the u.s. military system. all sponsor apprenticeships programs, generally taking on the responsibility to develop, operate, The Working Poor Families ProjecT (WPFP) and pay for training on their own. supports efforts of state nonprofit organizations to strengthen state policies that can assist families The u.s. department of labor office of striving to work their way into the middle class and apprenticeship (oa) oversees the national system achieve economic security. WPFP encourages its of registered apprenticeship programs. To attain partners to engage state policymakers to ensure formal registration, apprenticeship sponsors must that postsecondary education and skills comply with federal rules governing content, development programs sufficiently serve and quality, and length of training, as well as safety, capably prepare low-skilled adults for family- wage, and equal employment protections for sustaining careers—in short, educate and train apprentices. 8 registered programs must provide a them for growing occupations that can support minimum of 2,000 hours of on-the-job learning and their families economically. To do so, states need to 144 hours of related classroom instruction; align systems and resources toward market-driven, however, programs can avoid time-based skill-building strategies such as apprenticeship. requirements by establishing competency-based assessments. in return, their apprentices are a few states, including several with WPFP awarded a portable, industry-recognized certificate partners, are in the forefront of advancing public of completion demonstrating their attainment of policies that support a broad-based expansion of journey-level status. apprenticeships. This brief describes state efforts for engaging employers through outreach, employer outreach, program registration, and apprentice recruitment, and training subsidies enforcement activities are carried out in the field while strengthening linkages to postsecondary and by either oa field staff 9 or state personnel, workforce development systems and improving depending on whether a given state has sought rates of entry and successful completion of low- direct oversight authority as 26 states and the skilled adults. The brief makes specific policy district of columbia have done. 10 a state labor or recommendations and suggests strategies for education department typically assumes the ensuring their passage. oversight duties and, for federal purposes, is identified as the “state apprenticeship agency,” or saa. states with a saa are mandated to convene aPPrenTiceshiP model and governmenT an apprenticeship council comprised of union, sTandards management, and other stakeholders to advise and aid in oversight duties. an apprenticeship is a wage-paying job that incorporates extensive workplace and classroom any state, regardless of its federally recognized training in preparation for a highly skilled role, can and should take steps to increase occupation. apprentices earn incremental wage apprenticeship participation. saa states can set increases based on their demonstrated proficiency and enforce their own standards on registered in an array of job tasks as well as related academic apprenticeship programs. as a result, some content. Training ranges in length from one to six apprenticeship programs only meet state years depending on the occupation, but most requirements and, therefore, are not listed in the programs last four years. 7 upon successful national registry. Typically, this is the case when completion, apprentices attain journey-level status states approve programs in occupational fields not in their chosen profession. apprentices are yet vetted by the federal government as

Working Poor Families Project | www.workingpoorfamilies.org 2 apprenticeable (at least three saa states have to sponsored solely by employers. 14 in addition, most approve programs in a new apprenticeable field to employer-sponsored apprenticeships provide less obtain federal recognition). generous wages and benefits than union apprenticeships. aside from federal- and state-approved programs, an untold number of employers operate informal, expanding apprenticeship would seem well worth unregulated apprenticeships, in which case the effort, considering these benefits: apprentices may not be trained or paid properly and could face difficulty proving their journey-level  apprenticeship leads to family-sustaining qualifications to other potential employers. careers. For Fiscal year 2008, the labor department reported that the average The labor department reports that nearly 430,000 hourly wage for a journeyperson who individuals participated in federal and state completed an apprenticeship was $23.94, approved apprenticeships in Fiscal year 2010; which translates to $49,795 annually. 15 That 29,000 apprenticeship sponsors representing wage is more than double what is needed to 250,000 employers offer programs. The national take a family of four out of poverty ($10.55), registered system consists of 1,000 apprenticeable while exceeding the threshold needed for occupations, 11 yet half of all registered apprentices greater self-sufficiency ($21.11). By are training to work in the construction trades. comparison, two-thirds of u.s. jobs fall While the construction sector was crippled by the under occupations with median wages below economic downturn, apprenticeship is growing in the sufficiency level. 16 12 transportation and communications sectors and  apprenticeship produces larger earnings taking root in health care. several of the top bump. after accounting for total training apprenticeable occupations are in non-trade costs, apprenticeship produces a positive positions, such as chefs, childcare development earnings gain of $269,000 over a lifetime, specialists, dental assistants, fire medics, and law much higher than $96,000–$123,000 13 enforcement agents. projected for community college students union-based employers sponsor more than half of and about $40,000 per trainee of Workforce 17 all registered apprenticeships, while the other half investment act programs. are nonunion. although employer sponsorship is  apprenticeship trains workers at far less perhaps a more politically tenable solution for public expense. The number of registered spurring apprenticeship expansion in union hostile apprentices equals roughly the combined regions of the nation, private sponsors have not yet number of individuals receiving training measured up to union-based sponsors when through the adult and dislocated Worker comparing quality of skills development, work programs of the Workforce investment act, opportunities, and graduation rates. For instance, the job corps, and Trade adjustment construction apprentices enrolled in programs that assistance, 18 yet the federal government are sponsored jointly by unions and contractors are spends 190 times more on these programs more likely to complete training and are less likely than the budget for the office of to drop out than those enrolled in programs apprenticeship. 19

Working Poor Families Project | www.workingpoorfamilies.org 3 Box 1. a BrieF noTe on daTa

in the past, the u.s. department of labor has published relatively few data elements about the registered apprenticeship system. To more fully understand the successes and challenges of apprentice - ship, this brief largely relies on information collected from individual states as well as survey data produced by researchers, most notably robert lerman of the urban institute, cihan Bilginsoy of the uni - versity of utah, and the government accountability office. For instance, gao has surveyed 10 states with large apprenticeship participation that were able to provide apprentice data by industry, sponsor, and occupation, as well as some information on completions, on-time completions, and wages. 20 Washing - ton is among a few states that report a fairly comprehensive set of apprenticeship data to measure program performance. 21

The labor department does maintain a large database of individual-level records for apprentices partici - pating in programs in the 25 states where it has direct oversight and from state apprenticeship agencies that have chosen to report into this system (there are currently eight saa states that do so). The other saa states maintain their own data and collect various pieces of information on apprenticeship. But, these states provide the labor department with only aggregate counts of active and new apprentices, pro - gram completers, and active and new programs.

changes are afoot. The labor department is collaborating with saas to expand the number of data ele - ments reported federally. The office of apprenticeship has provided incentives including limited grant funds to encourage and facilitate this data sharing on a quarterly basis. oa does not currently have regu - latory authority to compel states to provide this individual-level data. The expanded data elements would cover:

 Total number of active served  Total number of Programs served  Total number of active apprentices  Total number of active Programs  Total number of apprentices in Programs  Total number of Provisional Programs with five (5) or more apprentices registered  Total number of new apprentices  Total number of Programs with five (5) or more apprentices  Beginning count (BoP)  Total number of new Programs with five (5)  ending count (eoP) or more apprentices  number of interim credentials issued  Total number of employers served  number of completion certificates issued  Total number of labor/management  number of completers Programs registered  apprentice average Beginning Wage (Wages  Total number of unilateral Programs range from $8.67 - $32.31) registered  apprentice average completion Wage  Beginning of Period (BoP) (Wages range from $8.67 - $57.74)  Total number of Programs with  gender: active male competency-based occupations  gender: active Female  Total number of Programs with hybrid  minority: active male occupations  minority: active Female  Total number of Programs with interim credentials  veteran: active male  end of Period (eoP)  veteran: active Female

Working Poor Families Project | www.workingpoorfamilies.org 4 challenges and oPPorTuniTies For oBsTacles To enTry For under-rePresenTed aPPrenTiceshiP exPansion Workers any attempt at expansion will wrestle with several another important challenge is broadening access challenges regarding employer engagement, to apprenticeship. in the short-term, the economic enrollment of disadvantaged workers, high training downturn has sharply reduced apprenticeship costs, and low completion rates. With these opportunities, particularly in traditional fields like challenges come opportunities to build stronger construction, because many experienced tradesmen linkages to postsecondary and workforce are out of work. however, even after the economy development systems to ensure publicly supported finally rebounds, disadvantaged and low-skilled skill-building efforts align to labor market adults could continue to struggle penetrating demands. apprenticeship fields, whether in construction or emerging high-tech and health care fields. diFFiculTy engaging emPloyers in recent years, apprenticeship programs have The biggest challenge in expanding the role of enrolled some low-skilled and disadvantaged apprenticeships in workforce development is adults: one-quarter of active apprentices did not increasing the number of employers and industry finish high school or only have a ged and one- sectors that offer apprenticeships. although 97 third are minorities. debunking the youth label, percent of registered apprenticeship sponsors three-quarters of apprenticeships are filled by recently surveyed say they would recommend the adults older than 24, with 28 percent over age 35. 28 programs to others, 22 the number of apprenticeship however, their ability to persist and complete offerings has stagnated in recent years. due to the programs is questionable, as discussed below. economic downturn, it can be assumed that moreover, enrollment of women remains low, at 5 employers have fewer jobs and fewer resources to percent across all apprenticeship fields. 29 devote to extensive training. apprenticeship does not come cheap. While public sector expenses have recognizing the need to expand access to more been relatively low, employers and apprentices minorities and women, the registered system has invest at least $1 billion per year. 23 long held sponsors with five or more apprentices to affirmative action requirements for recruitment expansion teeters as much on the public sector and selection. 30 To be most meaningful, however, helping to lower employer cost of apprentice the compliance must be monitored and enforced. in training as on increasing penetration within 2004, oa field staff reviewed only 4 percent of occupations and industries that are growing and programs in the 23 states where it had direct need a highly skilled workforce. it has been oversight. 31 as enforcement reportedly weakened in suggested that the office of apprenticeship could do past decades, the participation of women in more to systematically identify new occupations construction apprenticeships has deteriorated. 32 suitable for apprenticeship programs and address employer concerns over requirements that have improved enforcement alone will not solve the deterred program development. 24 gaining a issue. recruitment of apprentices remains fairly foothold in some industries and regions of the insular. Two-thirds of sponsors report that their country also will take shedding the perception of a current employees are an effective source for union and construction training apparatus, while recruiting new apprentices, and 40 percent cite maintaining their high standards for training and educational institutions that deliver related 33 wages. as an initial step, oa has published reports instruction. in contrast, one-stop career centers highlighting successful apprenticeship programs receive low marks as do “pre-apprenticeship” 34 and strategies in emerging fields, including health programs. The bottom line, it would seem, is that care, 25 health information technology, 26 and green learning about apprenticeship opportunities is energy. 27 difficult for workers who either lack personal ties to current apprentices or are not currently enrolled in relevant coursework. Working Poor Families Project | www.workingpoorfamilies.org 5 Pre-apprenticeship programs differ greatly in the applying for apprenticeships and employers from quality and breadth of services provided to setting up or expanding apprenticeship programs. participants. generally, programs include basic, among sponsors surveyed, 70 percent of programs introductory information about an apprenticeable covered apprentices’ tuition costs for related occupation; some form of entry-level education and courses at community colleges. 38 This still leaves a skills covering job readiness, specific vocational and sizeable portion of apprentices footing the bill. occupational elements; and a range of supportive aside from paying for tuition and textbooks, many services. many programs offer hands-on work apprentices have to pay for work tools and clothing. experience, stipends, or training wages. a range of nonprofit, public, and private-sector entities loW comPleTion raTes operate and fund programs. nonprofit community Persistence in apprenticeship programs also poses and faith-based organizations are the most common a major problem. in construction trades, nearly six program providers, and federal, state, and local in 10 registered apprentices fail to complete governments are among the most frequent and training, 39 a trend that is worsening. 40 across 35 largest contributors of funding. apprenticeable fields, completion rates are 41 a recent national survey of construction pre- substantially better for some programs and some 42 apprenticeship programs found relatively few states while generally worse for women and 43 achieved high placement rates in apprenticeships. 36 minorities. in california, among other states, This can be attributed in part to the sharp decline union-based construction programs have achieved 44 in construction jobs that stemmed from economic higher completion rates than non-union providers. recession. according to the survey, there were other The office of apprenticeship does not track the 45 factors at play. First, many pre-apprenticeship reasons for non-completions; however, according programs operate in markets with limited to sponsors recently surveyed by the urban apprenticeship opportunities even in the best of institute, a third identified personal issues and times. second, many programs may steer performance problems on the job or in classroom as participants who are not a good fit or are not ready the most common causes for attrition of their 46 away from apprenticeship. Their primary goal is to apprentices. academic readiness is more likely a place participants in family-sustaining jobs, barrier for the one-quarter of apprentices who did whether or not it is in an apprenticeship or, even, a not finish high school or only have a ged. related occupational field. 37 insuFFicienT Ties To educaTion and WorkForce on the other hand, unions and worker advocates sysTems have criticized some pre-apprenticeship programs closer collaboration with community colleges and for exploitative labor practices, in which they workforce development systems could strengthen funnel cheap, unskilled labor to construction employer outreach, reduce training costs, and contractors, thereby undercutting the training rigor improve individuals’ access and success in and wage progression of the apprenticeship system. apprenticeships as well as in college. however, a acknowledging the range of shortcomings, number of barriers prevent leveraging education programs using the moniker “apprenticeship prep” and workforce systems to their fullest. issues are re-emphasizing the necessity for placing include incorporating apprenticeship within college participants in registered apprenticeships. degrees and utilizing the workforce system to recruit apprentices and pay for training. high Training cosTs The relationship between technical colleges and Tuition costs are yet another barrier for apprentices apprenticeship programs varies by state, trade, and receiving technical instruction through community local area. community colleges deliver the related colleges, primarily for non-union programs. high technical instruction for an estimated 10 to 32 costs can preclude some low-income adults from percent of apprentices, according to recent surveys.

Working Poor Families Project | www.workingpoorfamilies.org 6 By contrast, more than half of unionized apprenticeship programs also face barriers to construction apprentices receive technical building closer ties with the public workforce instruction at their sponsor’s facility. 47 growing this development system. many one-stop officials are partnership would represent a dependable training wary of using Wia funds to subsidize training and and recruiting grounds for sponsors, while equipment costs for apprentices, out of concern that delivering to colleges a fertile crop of motivated participation in apprenticeships does not satisfy students to raise enrollment revenue and, Wia performance measures. Their major sticking potentially, degree attainment rates—just as point is how and when to exit apprentices from the critical in an era of heightened accountability. most Wia system in order to report gainful employment. importantly, linking apprenticeship to college as further evidence of poor alignment between Wia would expose students to new fields and forms of and apprenticeship systems, saa and oa staff is learning, while building a steady pathway to a not usually co-located at one-stops. doing so would college degree for apprentices. although a provide a home base in local areas for postsecondary credential does not carry the apprenticeship staff to recruit and support program reputation of a journey card in the construction, sponsors, while helping one-stop personnel to college education can open doors to higher-level promote apprenticeship as a viable employment managerial positions in the trades, while in other and training option for their clients. industries like advanced manufacturing and healthcare, college is critical for career recenT Federal eFForTs To imProve advancement. aPPrenTiceshiP

For years, apprenticeship sponsors have worked in the past few years, the u.s. department of successfully with community colleges to award labor has attempted to address several of these college credit to apprentices for education and job- challenges. The agency recently revised related skills acquired through apprenticeship apprenticeship rules 49 in an effort to entice more programs. This has enabled apprentices to earn employers and industries into offering credit for related technical instruction delivered apprenticeships. revised rules allow greater through colleges, bypass classes for which they flexibility in program delivery (such as competency- have already mastered the competencies, and earn based and distance learning approaches), quicker an associate’s degree in less time and for less preliminary program approvals, and for state money. however, available research suggests only a licensures and other industry-recognized small share of apprentices are pursuing associate’s credentials to count toward apprenticeship degrees or even having their workplace learning requirements. meanwhile, dol has established and academic courses count toward a degree. 48 new quality control measures to thwart dismal moreover, when credit-articulation agreements are apprenticeship completion rates. Work also is put in place, they do not usually apply to other underway to build stronger ties between colleges in which apprentices may wish to enroll apprenticeship and the workforce development and are not binding for other apprenticeship system, as well as education institutions. oa field programs. This piecemeal approach inhibits officials are now held accountable to performance student transfers mid-degree and does little to goals around strengthening collaboration in their enhance educational and career pathways for state. dol also requires state apprenticeship apprentices across the registered system. moreover, agencies to demonstrate that they are making a lack of system-wide linkages between linkages and coordinating with their state’s apprenticeship programs and colleges inhibits the workforce development system as well as economic implementation of other state policies, such as development strategies. in addition, dol has setting uniform tuition rates for related technical issued guidance and convened regional workshops instruction and accrediting classroom training to demonstrate to states and local workforce areas delivered by apprenticeship providers. how Wia can support apprenticeship (see Table 1).

Working Poor Families Project | www.workingpoorfamilies.org 7 Table 1: dol recommendations for leveraging Wia to support apprenticeship51 Policy idea reQuiremenTs advanTages

award individual awarded per apprentice, subject to eligi - makes apprenticeships more affordable for low- Training accounts to bility for Wia adult or dislocated Worker income and unemployed individuals. support related class - programs and inability to obtain grant room instruction. assistance from other sources to pay for education and skills development. deliver customized development of a course of education and encourages employers to start up or expand appren - training to support skills development for an employer or ticeship programs, which is of particular importance related classroom group of employers, acting as apprentice - in states with low sponsorship of apprenticeship pro - instruction. ship sponsor. requires sponsor to pay for grams and low union density. at least 50 percent of the cost of education and skills development (states can apply for waivers to reduce matching require - ment for small to medium sized employers) and to commit to hire or con - tinue to employ trainees. education and skills development programs developed and delivered by one-stops or partner agencies.

award on-the-job awarded to employers to pay for up to 50 like customized training, encourages employers to Training (ojT) funds percent of apprentice wages earned during start up or expand apprenticeship programs; of par - to subsidize training workplace-based education and skills ticular importance in states with low sponsorship of wages. development. states can apply for a apprenticeship programs and low union density. waiver to reduce the required match to 25 percent for small employers. education and skills development programs devel - oped and delivered by apprenticeship sponsor. use discretionary and considerable flexibility exists for the use Provides a flexible, albeit limited, state-level funding incentive funds to sup - of governors’ statewide 15 percent funds source to support apprenticeship and preparatory port apprenticeship and incentive funds. no requirements for programs. states can use the funds for any number of and preparatory pro - employer match or eligibility criteria for activities, such as to: grams. individuals. - Provide seed money for the development of new programs - award incentive money for apprenticeship sponsors that expand apprentice slots - cover tuition costs for related classroom instruction, subsidize apprentice wages - spur on other program innovations. Promote apprentice - no federal requirement exists for dissemi - suggested one-stop activities include: ship through one-stop nating apprenticeship information routinely integrate information about apprenticeship career center system. through one-stop career center system. and preparatory programs into career guidance and career exploration services - integrate apprenticeship electronic database with the state job matching system - co-locate apprenticeship staff at one-stops to strengthen partnerships with case managers and to promote programs to clients and employers - co-sponsor career fairs with apprenticeship staff - coordinate development of apprenticeship prep pro - grams between apprenticeship sponsors and community-based organizations.

Working Poor Families Project | www.workingpoorfamilies.org 8 similarly, dol is hoping to establish a definition 1. encouraging more emPloyers To oFFer and quality framework for pre-apprenticeship aPPrenTiceshiPs programs. dol is working with an advisory committee to iron out details and will then provide state strategies to engage more employers in technical assistance to oa field offices and saa offering apprenticeships include stepping up staff. outreach to potential program sponsors through community colleges and one-stop career centers, Finally, to ensure greater accountability, the u.s. offering incentives for creating apprenticeship department of labor recently changed rules to positions, awarding competitive grants to support require states with oversight duties to establish its program development, and defraying the cost of state apprenticeship agency, not its apprenticeship related technical instruction through community council, as the entity ultimately responsible for colleges and vocational schools. program approval and regulatory enforcement. 50 This ensures state governments have a vested leading the way is south carolina. at the urging of interest in the quality of apprenticeship programs. the state chamber of commerce, 53 south carolina yet, considering that the registered apprenticeship has invested in a series of strategies to persuade system is decentralized, the federal government employers to offer apprenticeships as a way to meet still needs states to take on a more willing and their skilled workforce needs. since 2007, these active interest in expanding apprenticeship, efforts have cultivated new apprenticeships and including those states without oversight authority. programs, raising once meager levels by a rate of one new program a week, with nearly a three-fold learning From sTaTe innovaTion increase in active apprentices. To accomplish this, south carolina has poured between $700,000 and While the federal government can play an $1 million a year of general revenue into the state’s important role in expanding and strengthening technical college system to promote and support the opportunities for the apprenticeship system, development of apprenticeship programs. 54 The several states are taking proactive and innovative initiative, apprenticeship carolina, guides steps to (1) encourage employers to offer employers through the process of developing apprenticeships, (2) improve access to and success apprenticeship programs, identifying appropriate in apprenticeships, particularly for low-skilled and service providers and resources, and drawing up disadvantaged adults, and (3) enhance apprentices’ and submitting paperwork mandated for federal pathways to postsecondary degrees and industry- registration. apprenticeship carolina now recognized credentials. states have taken these generates more than 60 percent of the state’s strides whether or not they have federally granted apprenticeship leads. 55 oversight authority, strong or weak union ties, or long-established or more recent involvement with in a state as unfriendly to unions as it is to federal the apprenticeship model. most of their efforts intervention, the college system has become the transcend any particular industry sector. face of the south carolina’s apprenticeship outreach efforts. oa field staff largely works behind in addition, states have adopted a number of the scenes, approving apprenticeship program policies and strategies, most notably apprenticeship applications and conducting compliance reviews. 56 utilization requirements, to increase the use and The college system assists potential program funding of apprenticeships on publicly funded sponsors whether or not they wish to use one of the construction projects. These efforts are discussed in campuses to deliver related technical instruction. detail in the Working Poor Families Project’s 2010 despite the open-access policy, apprenticeship report, Building opportunity: how states can carolina has bolstered ties between apprenticeship leverage capital and infrastructure investments programs and community colleges: more than half 52 to Put Working Families on a Path to good jobs . of sponsors use the technical college for at least some portion of their training, and about 15 percent

Working Poor Families Project | www.workingpoorfamilies.org 9 of programs incorporate an associate’s degree into stop employees as “apprenticeship specialists” to their apprenticeship requirements. 57 supplement the federal office. The effort has paid off. one-stop specialists recruited half of the state’s To aid outreach efforts, south carolina offers new apprenticeship programs in 2010. Their financial incentives to employers to develop accomplishments are due in large part to their apprenticeship programs and employ apprentices. closer relationships with local employers and their The south carolina small Business chamber of ability to more readily access Wia and federal on- commerce successfully lobbied the state to enact a the-job Training money to support apprenticeship $1,000 tax credit that employers can claim for each sponsors. alaska has modified its Wia state Plan registered apprentice they employ per year for up and other workforce development policy documents 58 to four years of employment. in addition, the state to include apprenticeship. 61 as a result, alaska has Workforce investment Board has contributed a expanded registered apprenticeship programs and total of $1.65 million in Wia funds to aid active apprentices three-fold since the late 1990s. 62 apprenticeship sponsors: $1 million was awarded many of the new programs are for non-construction competitively to seed new programs, while the occupations, like office manager, dental hygienist, remaining funds provide ongoing support to and auto mechanic. programs. in addition, local WiBs have received incentive money for creating a plan to increase the kansas, which oversees registered apprenticeship number of apprenticeships in their areas. 59 some directly, has stationed state apprenticeship agency local WiBs also have awarded extra points on staff at local one-stops to conduct employer incumbent worker training applications to outreach in those local areas. The state also has employers who intend to use the funds to support trained economic development staff so they can apprenticeships. Through this effort, state and local share with employers the basics about WiBs have funded about one-fifth of all registered apprenticeship. as a service to employers, the one- apprenticeship programs, one-third of which are in stop in Wichita serves as the recruitment grounds the healthcare field. 60 other growing for apprenticeship sponsors. The Wichita one-stop apprenticeship fields in south carolina include posts apprenticeship openings on the state job bank advanced manufacturing and information and offers to screen and refer qualified applicants technology. to program sponsors. according to one-stop officials, apprenticeship sponsors, including labor- several other states have developed similar management organizations, appreciate the hiring strategies to encourage greater employer support because they typically do not have the staff participation in apprenticeships. to vet apprenticeship applications properly. in addition, the one-stop pitches its services as a way increasing ouTreach To emPloyers for sponsors to comply with eeo rules because of To expand apprenticeship programs in their states, the diversity of jobseekers walking through its alaska and kansas have used local one-stop doors each day. career centers as a major recruitment grounds for new sponsors. alaska has stepped up its outreach oFFering incenTives For hiring aPPrenTices efforts out of a concern that state residents lack the several other states offer tax credits and other skills to compete with out-of-state workers for good- incentives to employers for providing jobs to paying jobs. considering apprenticeship as one of apprentices. unlike south carolina, most other the best routes to skills development and jobs for states limit eligibility to certain industries. The residents, state officials have directed staff time most generous, new jersey offers a one-time and Wia resources to promote the training model financial incentive to manufacturing industry to employers. as a federally administered employers of up to $5,000 for each new or current apprenticeship state, employer outreach had been employee sponsored as a registered apprentice. 63 the sole responsibility of the two-person oa field connecticut and rhode island each offer employers staff. since 2008 the state has trained 25 local one- up to $4,800. connecticut targets manufacturing,

Working Poor Families Project | www.workingpoorfamilies.org 10 construction, and plastics-related trades; 64 and community colleges draw on to offer workforce rhode island targets machine tool, metal, and training to employers, including technical plastic trades. 65 michigan66 and arkansas67 each instruction for apprenticeship programs as well as have tax credits of up to $2,000 for youth support for pre-apprenticeship programs. 76 apprentices. Finally, louisiana and West virginia give employers a tax break of $1,000. The former 2. imProving ParTiciPanT access To and has not set any industry-specific criteria (although success in aPPrenTiceshiPs the credit is due to expire at the end of 2011), 68 several states have launched other strategies to while the latter targets the construction trades. 69 increase rates of entry and completion by low- cuTTing TuiTion cosTs skilled and disadvantaged workers. strategies include recruiting individuals for apprenticeships several states have sought ways to cut employer through one-stops, supporting pre-apprentices and costs for related technical instruction delivered strengthening their ties to apprenticeship through community colleges and vocational schools. programs, and providing outreach to active This strategy aims both to attract new program apprentices in an effort to raise completion rates. sponsors and establish closer ties between apprenticeship and public training institutions. sTePPing uP recruiTmenT and Training Through one-sToPs The Washington state community and Technical college Board discounts tuition for related in kansas, job seekers as well as employers benefit technical instruction, waiving half the credit-hour from apprenticeship recruitment through the or clock-hour rates. 70 The state Board also sets Wichita one-stop. one-stop caseworkers discuss minimum rates, adjusted biennially, for contractual apprenticeship with jobseekers who otherwise may training as well as facility rentals, in the event that not have considered that option. rather than program sponsors need classroom space to handle simply disregard unqualified candidates, the one- technical instruction themselves. 71 Washington stop helps individuals to improve their skills so established the fee schedule in 2007 to ensure they can retest. They also help them find a uniformity across community colleges. Previously, temporary job until apprenticeships are offered sponsors obtained different deals from different again in their field of choice. in addition, one-stop colleges, while colleges suffered financial losses caseworkers meet with newly hired apprentices to when serving apprenticeship programs with few determine if they need and are eligible for either students enrolled in classes. 72 Wia-funded supportive services, which can pay for work supplies and textbooks, or an individual as funding permits, the maine department of Training account, which can cover tuition for labor underwrites up to 50 percent of tuition costs related technical instruction. 77 through public education institutions. 73 virginia provides employers with a tax credit to defray costs other one-stops in kansas do not provide this for putting their workers through apprenticeship or level of assistance. in lieu of a strong state noncredit training. 74 employers can claim 30 example, Wichita demonstrates what other local percent of costs for workers who attend classes at one-stops and state workforce development virginia community colleges or $100 per worker systems can do to support client entry into attending private schools. This tax credit is limited apprenticeships. according to Wichita staff, states to $2,500 per year. kansas has used federal and local workforce areas do not need to request stimulus grant money to cover the cost of related federal waivers or adopt new policies to strengthen technical instruction for apprentices in the state’s ties to apprenticeships. rather, they already have growing energy and advanced manufacturing federal authority to (1) make state apprenticeship sectors. 75 eligibility is limited to dislocated agency staff a mandated partner of local one-stops, workers. Finally, Florida has established a flexible (2) automatically add apprenticeship programs to funding pot that local school districts and the Wia eligible training provider list, ensuring

Working Poor Families Project | www.workingpoorfamilies.org 11 that apprentices can qualify for funds, and (3) use apprenticeships or, more generally, jobs on Wia funds to serve apprentices and report construction projects. The program, known as the apprenticeship attainment toward Wia indiana Plan, is a vestige of the War on Poverty, performance measures. on the latter point, Wichita which spawned hometown Plans around the staff notes that apprentices can meet Wia country to help federal contractors fulfill their employment goals only if they register through the minority and women recruitment requirements; the one-stop before applying and accepting an federal criteria and approval process for hometown apprenticeship. active apprentices can be exited Plans is spelled out in regulations still in effect. 86 from the Wia system 90 days after receiving their While other states have long jettisoned their last service. 78 operation of hometown Plans, indiana has maintained its support at $400,000 per year, Wisconsin has identified several policy steps to appropriated through a special fund of its improve the integration of Wia and apprenticeship unemployment insurance system. nowadays, the through its statewide sector strategy framework, indiana Plan handles affirmative action mandates known as regional industry skills education for contractors on federal projects; and program 79 80 (rise). The rise action plan was developed by staff draws up and undertakes recruitment the Wisconsin Technical college system and the activities, such as attending job fairs. in addition, Wisconsin department of Workforce development, the indiana Plan operates a pre-apprenticeship and funded in part through a “shifting gears” program based on the aFl-cio’s multi-craft pre- grant from the joyce Foundation. The plan seeks to apprentice curriculum. 87 it pitches the program to align workforce, education, and apprenticeship labor-management apprenticeship sponsors as an systems to develop career pathways in high- effective way for them to find qualified apprentice demand, well-paid career fields—building on applicants while complying with recruitment goals 81 successful programs across the state. for minorities and women. enhancing Pre-aPPrenTice PaThWays To aside from funding pre-apprenticeship programs or aPPrenTiceshiPs training opportunities for specific construction states have stepped up funding and oversight of projects, other states have taken a different pre-apprenticeship programs as yet another approach to strengthen pre-apprenticeships across strategy for improving entry into apprenticeships a wide range of industries and occupations. for low-income and under-represented individuals. Florida, maine, and massachusetts are among the Primarily, these efforts have focused on the states that have established a formal registration construction sector but could be expanded into process for pre-apprenticeship programs. in other apprenticeable occupations. general, the approval process is designed to set minimum standards for entry, training content, and several states have leveraged public infrastructure treatment of pre-apprentices, while requiring ties money to pay for construction pre-apprenticeship to registered apprenticeship programs (see Table 2). programs targeting low-income, low-skilled adults, These state-level standards ensure quality control, minorities, and women. Wisconsin,82 michigan,83 but generally allow programs the flexibility to and minnesota84 each have drawn down federal design and deliver program content as they see fit. highway money, and new jersey85 has tapped state although state rules typically focus on high school school construction funds to prepare under- youth enrolled in secondary career-technical represented individuals for building trades jobs and education, they also have been applied to adult apprenticeships. (see the Building opportunity participants and community colleges. report for more information.) massachusetts’ policy requires that pre- For several decades, indiana has funded a apprenticeship providers sign a formal agreement statewide program to prepare and recruit under- with a registered apprenticeship sponsor, spelling represented individuals for building trades out the sort of advanced standing that program

Working Poor Families Project | www.workingpoorfamilies.org 12 Table 2: state regulations for Pre-apprenticeship Programs

Florida88 maine89 massachusetts90

Primary objective Provide Florida residents with The successful completion of The pre-apprenticeship program educational and training oppor - training courses will enable a should provide the graduates tunities to enable them, upon participant to meet the quali - with the skills needed to completion of pre-apprentice - fying standards for the successfully pass the interview ship training, to obtain entrance apprenticeship or apprentice - process in order to enter a full into a registered apprenticeship ships for which the participant registered apprentice program. program. has expressed a serious inter - est. involvement of registered must be sponsored by appren - undefined role in program must hold a written agreement apprenticeship sponsor ticeship program. delivery. with an apprenticeship program.

Training tied to one or yes yes yes more apprenticeable occu - pations

entry into apprenticeship apprenticeship sponsors shall yes. requires a “letter of agreement must establish a pre - give primary consideration for intent to hire” upon successful determined policy for awarding admission to persons who com - completion of program. credit to pre-apprentices who plete sponsor’s are accepted into a registered preapprenticeship program. apprenticeship program. new apprentices shall be exempted from repeating any related course of instruction, if they pass a competency exami - nation. Program length 6-24 months not to exceed 24 months not defined related Technical instruc - required. if offered, sponsor required. not to exceed 750 required. recommends 150 tion sets hours. hours. hours for each year of pre- must be enrolled in vocational apprenticeship. school apprenticeship sponsor must approve content.

instructional provider apprenticeship sponsor, school school districts, colleges, and undefined training facility districts, and colleges others

on-the-job Training not required. if offered, sponsor required. not less than 250 restricted. Work on construction sets length and must pay at hours in two-year programs. projects is not permitted until least minimum wage. must pay at least minimum full status as apprentices is wage. reached. Worker ratios up to 2 pre-apprentices for 1 pre-apprentice for every 3 not defined. every 3 journey workers in con - journey workers. struction; otherwise, ratios are established by program commit - tee.

safety training required required required eeo activities required required not stated

Process for deregistering yes yes yes programs and terminating enrollment of individuals

Working Poor Families Project | www.workingpoorfamilies.org 13 completers can expect if they become an apprentice. at least five states— Florida, indiana, new jersey, some arrangements provide pre-apprentices with West virginia, and Wisconsin—have established as much as six months of credit toward bold and innovative policies for rewarding apprenticeship work hours or class time. apprentices with a significant portion of college credits toward an associate’s degree, which can be according to a recent survey by the aspen institute, completed at any community and technical college the majority of pre-apprenticeship providers do not in the state. These statewide credit articulation 91 favor strict program requirements. among their agreements, unlike those that only bind a single chief concerns, many programs suggested that they college and apprenticeship program, provide a might have to turn away individuals who do not uniform pathway for all apprentices across all have sufficient basic skills rather than working apprenticeship programs to complete college in less with them for a longer time. in addition, they do time for less money. not want to be judged harshly for placements in non-apprenticeship jobs, even though that might be each state has taken a different approach for how a good first step for particular participants. They program content is delivered and evaluated and for also cautioned against having the same how academic credits are assigned to a degree. in performance standards year after year in a cyclical indiana, Wisconsin, and West virginia, hours spent industry, like construction. in related technical instruction and on-the-job training components of registered apprenticeship Providing ouTreach To acTive aPPrenTices program often fulfill all degree-specific Wisconsin funds a mentorship program for building requirements aside from general education courses. trades apprentices in an effort to improve in new jersey, the number of credits depends on completion rates, which a legislative study found the agreement between an apprenticeship sponsor were particularly dismal for african americans. 92 and college, which other colleges are required to The state labor department leveraged $100,000 in recognize. Florida takes a different approach Wia discretionary dollars to award competitive altogether, by awarding credit for the attainment of grants to two community-based organizations in industry-recognized credentials that have been milwaukee and madison. 93 under the initiative, embedded in apprenticeship program curriculum registered apprentices are paired with mentors who rather than basing credits on time spent in the have past apprenticeship experience to talk classroom and at the job site. indiana, Wisconsin, through work and personal issues. For instance, and West virginia have community college systems mentors, many of whom are minorities and women that ease the way for the enactment of statewide themselves, help apprentices distinguish between articulation policies. however, creative steps taken workplace treatment that is typical for apprentices by Florida and new jersey prove statewide and those that are acts of discrimination due to articulation policies are still possible in states their race and gender. unfortunately, newly elected where colleges operate more independently and, governor scott Walker has discontinued the use of often times, in competition. Wia funding for the program. moreover, the role of community colleges in Worth noting, ohio researchers have produced a delivering related technical instruction also varies. best practices guide on how to improve completion in Wisconsin and West virginia, the majority of rates for construction apprenticeship programs, apprentices attend state college and technical drawing on successes and insights of workers and colleges, arguably making it easier to award employers in the cincinnati metro area. 94 credits; whereas, in indiana and new jersey, apprenticeship sponsors typically provide the 3. imProving aPPrenTices’ PiPelines To training themselves. in new jersey, this has PosTsecondary and indusTry-recognized spawned a more time-consuming and costly credenTials evaluation process, which may not be sustainable. Finally, indiana has the most aggressive degree

Working Poor Families Project | www.workingpoorfamilies.org 14 attainment policy, requiring apprentices to indiana is the only state to require apprentices to graduate from college before they can obtain complete an associate’s degree in order to obtain journey-level status. as a downside, indiana has set journey-level status. 100 The degree requirement was higher educational standards for entering established in the mid-1990s, initially as a pilot apprenticeships, making them less accessible for project, in response to employers’ expectations for low-skilled adults. in contrast, other states have workers with college degrees. The state’s ivy Tech sought to award credit for apprenticeship content community college system provides articulated as a way to encourage apprentices, who may not credit for labor-management apprenticeship consider themselves college material, to continue programs, while vincennes university works with their education. nonunion sponsors. as established through its long-standing state For the former, apprentices co-enroll in ivy Tech apprenticeship law, Wisconsin bestows on the and the apprenticeship program. apprenticeship state’s community and technical college system the sponsors handle related technical instruction, while responsibility for delivering related technical ivy Tech offers the general education courses, instruction for registered apprenticeship typically contextualized to the competencies needed programs. 95 The college system has established for the particular apprenticeable occupation and standards and procedures for granting 39 credits offered at convenient times and online to for related technical instruction and ojT toward accommodate the busy work schedules of the journeyworker associate in applied science apprentices. When the program was first conceived, (jW-aas) degree. 96 apprentices need to complete representatives of the indiana commission of an additional 21 credits in general education higher education, ivy Tech, and others visited courses to attain their degree. apprentices can apprenticeship programs to evaluate the quality of choose when, if at all, to enroll in the coursework. training and ensure their credit-worthiness. according to state officials, 468 apprentices have however, they discontinued this formal evaluation enrolled in the jW-aas degree program over the process after recognizing that the labor- past 11 years, and 204 have graduated. in 2010, 29 management apprenticeship programs are typically apprentices attained the degree, the largest based on well-vetted nationwide curricula. graduation class to date. 97 Wisconsin is unique among the 50 states in requiring that employers in all, apprentices earn 19 credits in general pay apprentices for both time worked and time education and 66 to 75 credits through spent in the required classroom instruction. 98 apprenticeship training toward an associate of although apprentices are responsible for paying for applied science; hours in on-the-job training books and tuition, the wage benefit effectively equate to two credits a semester. The degree defrays these costs. apprentices are not offered this articulates as two years of credit toward bachelor’s wage benefit while attending general education degrees offered at indiana state, indiana courses. university–Purdue, sullivan university, and indiana Wesleyan. ivy Tech is able to offer the in West virginia, the community and technical degree at no charge to apprentices and their college system has formed an agreement with oa sponsors because money made available through field staff and the state’s building and construction the state’s unemployment insurance trust fund trades council to award at least 42 credits toward covers the cost of textbooks and instructors. due to an associate in applied science in occupational the degree completion requirements, studies. 99 apprentices earn 30 to 40 credits for apprenticeship sponsors typically restrict program related technical instruction and 12 credits for ojT, entry to applicants who hold at least a high school leaving 20 general education credits for completion diploma or ged. of degree. The state also awards academic credits for on-the-job training that apprentices receive in new jersey evaluates the credit-worthiness of early childhood education programs. training delivered by apprenticeship sponsors, although funding cuts may derail the effort.

Working Poor Families Project | www.workingpoorfamilies.org 15 conceived by governor jon corzine before leaving 15 credits toward an associate in engineering office in 2010, nj Place has received funds through Technology. after a lobbying effort, the Florida the state’s unemployment insurance trust fund to department of education formally recognized the cover the cost of program evaluations conducted by credit-worthiness of mssc and, since then, more national accreditors such as the american council than 100 other industry-recognized certificates. on education. Through this process, apprenticeship now, any Florida college that offers students the programs have been assigned between 25 and 45 mssc certification has to do so for-credit. so far, credits toward an associate of applied science the Banner center has sold its apprenticeship degree. each apprenticeship program establishes curriculum to nine other Florida community an articulation agreement with one of the county colleges, incorporating credits for the mssc based, independently run community colleges; certification in their degree offerings. Banner staff however, nj Place policies mandate that other suggests that awarding credits for the certificate community colleges accept credits and offer in- has opened the door for apprentices who otherwise county tuition rates for apprentices from across the would not have considered college. state who may want to complete their degree there. This enables apprentices to “enroll” in the college Table 3: statewide credit articulation Policies that offers the most credits toward a degree and Program elements that articulate to then transfer to their local college to complete credit toward degree degree requirements. By doing so, new jersey is related on-the-job industry- supporting system building while optimizing Technical Training recognized educational opportunities for apprentices and the courses credentials use of state resources. Florida P nj Place initially evaluated apprenticeship indiana Pa P programs in building trades, but has since expanded coverage to include automobile new jersey PB P engineering technology, certified nursing assistant, West virginia c and culinary and corrections positions, among P P others. however, accreditors have since raised Wisconsin Pd P evaluation rates and ui funds are drying up, putting the future of nj Place in jeopardy. a indiana’s ivy Tech college system awards credit for courses delivered by apprenticeship sponsors. Finally, Florida is piloting an effort that awards college credits for industry-recognized credentials B new jersey Place evaluates credit-worthiness of that have been embedded in apprenticeship courses delivered through apprenticeship sponsor. curriculum. The certificates are evaluated for their c credit-worthiness rather than program curriculum, For courses delivered through West virginia community and Technical college system. class and work time, and quality of instructors. d For courses delivered through Wisconsin Technical The articulation policy grew out of an effort to college system. create a new apprenticeship program for existing employees of a major manufacturing firm. Program curriculum was designed by the state’s Banner center for advanced manufacturing, an industry- sTaTe Policy recommendaTions specific organization funded through the state WiB to grow businesses by tapping workforce and states have several policy and program options for economic development services. 101 The Banner expanding access to apprenticeship programs for center’s curriculum incorporated the low-income, low-skilled adults. states have adopted manufacturing skill standards certification, for some of these options already, while others have yet which Polk state university has agreed to award to be applied. given the current funding climate,

Working Poor Families Project | www.workingpoorfamilies.org 16 recommendations are identified as either budget- sTeP uP recruiTmenT and Training Through neutral or investment strategies. in general, states one-sToPs should look for ways to tie apprenticeship to their sector partnership and career pathway initiatives. 5. add the state or federal apprenticeship doing so would likely spur growth of office to the list of mandated partners for apprenticeships in high-demand, non-construction the state Wia system, and require their co- sectors; and encourage innovations such as interim location at local one-stop career centers credentials, which provide apprentices with (budget neutral ). momentum points toward program completion as 6. adopt a policy that automatically adds well as industry recognized skillsets. additionally, apprenticeship sponsors to the Wia eligible sector strategies and career pathways initiatives training list ( budget neutral ). provide a framework for strengthening alignment 7. ensure that apprenticeship is listed as a with workforce and education systems in ways that permissible employment and training model connect apprenticeship to college degrees and Wia in the state Wia plan, as well as other state resources. workforce development initiatives ( budget neutral ). encourage emPloyers To oFFer more aPPrenTiceshiPs 8. issue guidance to local one-stops explaining effective strategies for promoting and 1. expand apprenticeship promotion efforts by supporting apprenticeship, including increasing staff levels of the state engaging employers as apprenticeship apprenticeship agency or, in case of states sponsors, offering to assist in their overseen by federal staff, by supporting recruitment and screening activities, and positions within community college or actively informing one-stop clients about workforce development agencies to conduct apprenticeable opportunities and using employer outreach and advance systems available Wia formula funds to support alignment ( investment ). their training and equipment needs. Provide 2. give employers a state tax credit for each technical assistance on proper registration apprentice in each year of their employment. and reporting process to ensure states should consider awarding employers apprenticeship placements count toward a higher credit for employing low-skilled or Wia performance measures ( budget disadvantaged workers as registered neutral ). apprentices ( investment ). 9. leverage Wia discretionary funds to create 3. establish competitive grants to develop and incentive money awarded to local one-stops expand apprenticeship programs in high- that have engaged employers as growth, high-demand occupations. add apprenticeship sponsors, supported weight or extra points for proposals that recruitment through one-stop, and have well-defined strategies and goals for increased number of clients entering employing under-represented and low- apprenticeships ( investment ). income individuals as apprentices, 10. modify the Wia state plan to ensure at least exceeding equal employment opportunity 5 percent of local formula funds go to compliance requirements ( investment ). support apprenticeship recruitment and 4. identify and promote apprenticeship as an training ( investment ). allowable use of incumbent worker training enhance Pre-aPPrenTice PaThWays To money awarded to employers. add weight or aPPrenTiceshiPs extra points to proposals that have well- defined strategies and goals for engaging 11. establish a state certification process for entry-level, low-wage employees in registering pre-apprentices and ensuring apprenticeships ( budget neutral ). quality control of programs. standards

Working Poor Families Project | www.workingpoorfamilies.org 17 should set wage and safety protections for leverage educaTional sysTem To suPPorT pre-apprentices and establish requirements aPPrenTiceshiP and imProve PiPelines To that pre-apprenticeship programs form a PosTsecondary and indusTry-recognized partnership with at least one registered credenTials apprenticeship program. The formal partnerships must spell out advanced 16. develop statewide process for awarding standing that pre-apprentices attain if college credit toward a degree for related accepted as an apprentice; however, states technical instruction, on-the-job training, should avoid setting overly prescriptive and embedded industry-recognized standards for program design and delivery credential ( budget impact depending on so not to quash innovation or discourage strategy undertaken ). enrollment of hard-to-employ individuals 17. establish statewide uniform tuition rate for (budget neutral ). related technical instruction delivered at 12. award competitive grants to launch or community colleges and subsidized with expand pre-apprenticeship programs in state higher education funds ( investment ). compliance with above-mentioned state 18. ensure apprenticeship training is an standards. grants should be targeted to allowable use of state funds that go to school high-growth, high-demand occupations and districts and community colleges for career- provide training opportunities for low- technical education (budget neutral). skilled adults, not just youth. grantees otherwise, consider establishing funding should articulate a plan for bridging gaps source to support apprenticeship training between community, labor, and employers, through public education institutions and for using Wia funds in creative ways to (investment ). support training and related services 19. utilize unemployment insurance Trust (investment ). Fund dollars to support related technical Provide ouTreach To acTive aPPrenTices instruction costs, credit articulation processes, and/or curriculum development 13. award competitive grants for mentorship for apprenticeships in new or emerging programs that engage apprentices at risk of fields ( investment ). non-completion ( investment ). 14. Fund and train staff at one-stops, community colleges, and/or community- based organizations to act as “retention specialists” who work directly with employers to reduce attrition among active apprentices ( investment ). 15. establish a pilot project, with competitive grant money, for apprenticeship programs that incorporate academic remediation into related technical instruction (modeled after Washington i-BesT or similar successful initiatives) to support apprentices at risk of non-completion due to academic deficiencies (investment ).

Working Poor Families Project | www.workingpoorfamilies.org 18 conclusion TiPs For Building The case apprenticeship holds the promise of providing good jobs and a path to self-sufficiency. however, unless For aPPrenTiceshiP exPansion states take bold actions to expand apprenticeship opportunities and strengthen entry and completion,  request access to data collected on low-skilled, low-wage adults may be left behind. apprenticeship programs, enrollments, and outcomes broken out by several states have enacted programmatic and demographics. if the state resists or does policy innovations to encourage employer not have the data to respond to the development of apprenticeships, increase request, engage legislators or the state recruitment, preparation, and completion rates of inspector general to conduct their own under-represented individuals, and build audit of apprenticeship system. apprentices’ pathways to postsecondary and  enlist the business community to industry-recognized credentials. along the way, champion apprenticeships as an effective states have formed closer ties between the strategy for building a highly skilled registered apprenticeship system and community workforce. college, workforce development, and pre-  engage oa apprenticeship staff. Their apprenticeship programs. states have leveraged job performance depends on actively numerous funding sources to aid in apprenticeship working to improve alignment with expansion and services, including Wia, ojT, community colleges and workforce general revenue, federal construction funds, bonds, development agencies. The same goes for and the unemployment insurance Trust Fund, as state apprenticeship agencies. well as enactment of tax breaks.  replicate and/or continue momentum of With state budgets running thin for education, regional action clinics as a way to share workforce development, it is imperative that states information and boost coordination find innovative, sustainable ways to support among key stakeholders in the state. apprenticeship. Based on the experience of many states, this report recommends a variety of budget neutral strategies, as well as some that require financial investment.

For questions about this policy brief or the Working Poor Families Project contact: Brandon roberts [email protected] (301) 657-1480

Working Poor Families Project | www.workingpoorfamilies.org 19 endnoTes www.nytimes.com/2010/07/02/business/economy/02manufact uring.html?_r=1 . 1 The author is the Principal of david altstadt consulting, llc, a private consulting firm that delivers in research, 4 selingo, jeffrey j. “enrollments are up but money isn't: communications, and project management services for community-college leaders now have to confront this education and skills development initiatives. The author challenge.” The chronicle of higher education , april 5, 2009: would like to thank the following individuals who agreed to http://chronicle.com/article/enrollments-are-up-but- be interviewed for this report: office of apprenticeship money/42685 . administrator john ladd, his deputy dana daugherty, and 5 assistant marisa nixon; john hakala, oa state director for goodman, Peter. “after Training, still scrambling for alaska; david Wallace, director of the massachusetts employment.” The new york Times , july 18, 2010: division of apprentice Training; jeanine nagrod, executive www.nytimes.com/2010/07/19/business/19training.html?_r=1 director, nj Place; ann marie stieritz vice President of &emc=eta1 . south carolina Technical college system; melinda eagle, Fletcher, michael a. “retrained for green jobs, but still director of apprenticeship carolina; eric roe, director of waiting on work.” The Washington Post , november 22, 2010: Banner center for manufacturing, Florida; ken olsen http://www.washingtonpost.com/wp- apprenticeship Program director, Florida department of dyn/content/article/2010/11/22/ar2010112207583.html?refer education; kenneth milnes, oa state director for West rer=emailarticle . virginia; linda sorrell, director of Policy and Planning, Workforce alliance of south central kansas; loretta shelley, 6 carnevale, anthony P. and nicole smith and jeff strohl. director of kansas apprenticeship Program; john delgado, help Wanted: Projections of jobs and education oa state director for indiana; Teresa hess, director of requirements Through 2018 . georgetown university. 2010: apprenticeship Training and grants administration for ivy http://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/Fullrep Tech community college; dax ramsey, indiana Plan; karen ort.pdf . morgan, director of the Wisconsin Bureau of apprenticeship standards; melinda nichols, apprenticeship Program gros, daniel. “The skills deficit.” Project syndicate. manager, and michael Thurman of Washington state; Pat september 3, 2010: http://www.project- Ward, Workforce education Program administrator for syndicate.org/commentary/gros12/english . Washington state Board for community & Technical colleges. in addition, the author would like to acknowledge 7 u.s. department of labor office of apprenticeship. FaQs, robert lerman for his exceptional research and data updated: march 09, 2010: http://www.doleta.gov/oa/faqs.cfm . collection. additional thanks to several Working Poor 8 Families Project partners and friends for sharing their For more information on program quality and apprentice knowledge, including judith Berman, maureen conway, Bob welfare and wage standards, see 29 cFr Part 29, in giloth, karen morgan, and sarah White. as always, special particular §29.4–6: thanks to Brandon roberts and deborah Povich for their http://www.doleta.gov/oa/pdf/Finalrule29cFrPart29.pdf . For guidance and support on this paper. equal employment opportunity requirements, see Title 29, cFr Part 30: h ttp://ecfr.gpoaccess.gov/cgi/t/text/text- 2 Brandon roberts, deborah Povich and mark mather. great idx?c=ecfr&sid=99c9a20e960f56be66f17ae91b52c888&rgn=di recession hit hard at america’s Working Poor: nearly 1 in 3 v5&view=text&node=29:1.1.1.1.23&idno=29 . Working Families in united states are low-income , Working 9 Poor Families Project, december 2010, p.1. list of office of apprenticeship field staff: http://www.doleta.gov/oa/stateoffices.cfm . 3 american Worker survey Telebriefing: Findings from the 10 american Worker and american employer surveys For a current list of state apprenticeship agencies, see: commissioned by Business roundtable’s springboard Project . http://www.doleta.gov/oa/stateagencies.cfm . The Business roundtable: 2010: 11 see http://businessroundtable.org/studies-and-reports/american- http://www.iowaworkforce.org/apprenticeship/apprenticeable worker-survey-telebriefing/ . occupations.pdf . Whitehouse, mark. “some Firms struggle to hire despite 12 lerman, robert. Training Tomorrow’s Workforce: high unemployment.” The Wall street journal , august 9, community college and apprenticeship as collaborative 2010: routes to rewarding careers . center for american Progress. http://online.wsj.com/article_email/sB1000142405274870489 december 2009: 5004575395491314812452- http://www.americanprogress.org/issues/2009/12/pdf/comm_c lmyQjaxmTawmdawodewndgyWj.html . olleges_apprenticeships.pdf . rich, motoko. “Factory jobs return, but employers Find 13 FaQs, 2010 skills shortage.” The new york Times , july 1, 2010:

Working Poor Families Project | www.workingpoorfamilies.org 20 14 Bilginsoy, cihan. “delivering skills: apprenticeship http://www.doleta.gov/oa/pdf/hiT_healthcare_report.pdf . Program sponsorship and Transition and Training.” industrial relations , vol. 46, no. 4. october 2007. 27 The greening of registered apprenticeship: an environmental scan of the impact of green jobs on registered apprenticeship Programs: labor can Better use registered apprenticeship and implications for Workforce data to Target oversight . government accountability office. development . u.s. department of labor. june 2009: Prepared for u.s. senate committee on health, education, http://www.doleta.gov/oa/pdf/greening_apprenticeship.pdf . labor, and Pensions. august 2005: www.gao.gov/new.items/d05886.pdf . 28 lerman 2009.

15 FaQs, 2010 29 ibid.

16 Working Poor Families Project analysis of may 2010 30 For equal employment opportunity requirements, see Title occupational employment statistics, Bls. 29, cFr Part 30: http://ecfr.gpoaccess.gov/cgi/t/text/text- idx?c=ecfr&sid=99c9a20e960f56be66f17ae91b52c888&rgn=di 17 kevin hollenbeck, “state use of Workforce system net v5&view=text&node=29:1.1.1.1.23&idno=29 . impact estimates and rates of return,” presented at the association for Public Policy and management meetings. los 31 gao 2005. angeles, california, november 2008. 32 Berik, gunseli and cihan Bilginsoy. still a Wedge in the 18 kelly mikelson and demetra nightingale. 2004. door. Women Training for the construction Trades in the estimating Public and Private expenditures on occupational u.s. university of utah. Working Paper no: 2005-05. Training in the united states . report to the u.s. october 2005: department of labor. employment and Training http://www.econ.utah.edu/activities/papers/2005_05.pdf . administration. http://www.urban.org . 33 lerman 2009B. 19 lerman 2009. 34 ibid. 20 registered apprenticeship Programs: labor can Better 35 use data to Target oversight. government accountability conway, maureen and allison gerber and matt helmer. office. 2005: http://www.gao.gov/new.items/d05886.pdf . construction Pre-apprenticeship Programs: interviews with Field leaders . aspen institute. 2010: 21 Workforce Training results report: apprenticeship. http://www.aspenwsi.org/Publications/10-014.pdf . Washington state Workforce Training and education 36 coordinating Board. december 2008: conway, maureen and allison gerber. construction Pre- http://www.wtb.wa.gov/documents/WTr_apprenticeship.pdf . apprenticeship Programs: results from a national survey . aspen institute. july 2009: 22 lerman, robert and lauren eyster and kate chambers. http://www.aspenwsi.org/publications/09-007.pdf . The Benefits and challenges of registered apprenticeship: 37 The sponsors’ Perspective . The urban institute. march 2009: ibid. http://www.urban.org/uploadedPdF/411907_registered_appr 38 lerman 2009. enticeship.pdf . 39 glover, robert and cihan Bilginsoy. “registered 23 registered apprenticeships: labor could do more to apprenticeship in u.s. construction industry.” education expand to other occupations. u.s. government and Training . vol. 47, no. 4. Page 337–349. 2005: accountability office. september 2001: http://www.cpwr.com/pdfs/Bilginsoy%20and%20glover.pdf . http://www.gao.gov/new.items/d01940.pdf . 40 gao 2005. 24 ibid. 41 lerman 2009B. 25 using registered apprenticeship to Build and Fill healthcare career Paths: a response to critical healthcare gao 2005 Workforce needs and healthcare reform . u.s. department of labor. undated: 42 gao 2005. http://www.doleta.gov/oa/pdf/apprenticeship_Build_healthc are_Paths.pdf . also see: “an evaluation: minorities and Women in construction Trade apprenticeships.” department of 26 using registered apprenticeship to Build and Fill career Workforce development. legislative audit Bureau. report Paths in health information Technology: a response to 10-12, september 2010: critical healthcare Workforce needs and healthcare http://legis.wisconsin.gov/lab/reports/10-12highlights.htm . reform . u.s. department of labor. undated:

Working Poor Families Project | www.workingpoorfamilies.org 21 43 glover et al 2005. 58 see section 12-6-3477 of the south carolina code of laws: http://www.scstatehouse.gov/code/t12c006.htm . steward, keisha and Theresa o’Brien-Turco. changing the outcome: closing the gap to completion in greater 59 south carolina department of employment and cincinnati’s apprenticeship Programs . Pad 793: capstone Workforce. Py 2008 Workforce investment act report . Project. dr. ahmed. december 6, 2010. Prepared for the u.s. department of labor employment and Training administration. october 1, 2009: Workforce Training results report: apprenticeship . http://www.doleta.gov/performance/results/annualreports/P Washington state Workforce Training and education y2008/sc_annual_report_2008.pdf. coordinating Board. december 2008: http://www.wtb.wa.gov/documents/WTr_apprenticeship.pdf . 60 stieritz 2011.

44 Wilson, corrine. construction apprenticeship Programs: 61 alaska Wia state Plan: http://labor.state.ak.us/awib career Training for california’s recovery . center on Policy initiatives. september 2009: alaska gas line Workforce Plan: http://labor.state.ak.us http://www.onlinecpi.org/downloads/construction%20appren ticeship%20Programs%20report.pdf . alaska health Workforce Plan: www.ashnha.org/content/images/stories/20100427- 45 gao 2005. workforceplan-v4.pdf

46 lerman 2009B. alaska career & Technical education Plan: http://labor.alaska.gov/awib/cte.htm 47 lerman 2009. Building alaska’s construction Workforce: 48 ibid. http://labor.state.ak.us/awib/2007-mtg-binder/construction- training-plan.pdf 49 see 29 cFr Part 29: http://www.doleta.gov/oa/pdf/Finalrule29cFrPart29 .pdf alaska Workforce investment Board resolutions (see 07-05): http://labor.alaska.gov/awib/resolutions.htm 50 For more information, see § 29.13 of above federal rule. 62 “apprenticeships in alaska.” alaska economic Trends . vol. 51 Training and employment guidance letter no. 02-07: 29 no. 2, alaska department of labor. 2009: leveraging registered apprenticeship as a Workforce http://labor.alaska.gov/trends/feb09.pdf . development strategy for the Workforce investment system: http://wdr.doleta.gov/directives/attach/Tegl/tegl2007/Tegl 63 new jersey registered apprenticeship incentive Program 2-07.pdf . for the manufacturing industry: http://lwd.dol.state.nj.us/labor/employer/training/registered_ 52 see: apprenticeship_manufacturing.html . http://www.workingpoorfamilies.org/pdfs/Building_opportuni ty.pdf . 64 connecticut tax credits for apprenticeship training in manufacturing, construction and plastics-related trades. 53 The south carolina chamber of commerce published two http://search.cga.state.ct.us/dtsearch_pub_statutes.asp?cmd= reports to encourage apprenticeship development: the 2002 getdoc&docid=8211&index=i%3a%5czindex%5csurs&hitco report, apprenticeship: an important avenue for Building a unt=2&hits=2b2+2b3+&hc=4&req=%28number+contains+12 skilled Workforce in south carolina %2d217g%29&item=0 . https://21stcenturyapprenticeship.workforce3one.org/view/20 01027280545678076 and the 2003 report, apprenticeships in 65 rhode island Tax credit for machine tool, metal trade or south carolina: Baseline report and recommendations plastic process technician apprenticeships https://21stcenturyapprenticeship.workforce3one.org/view/20 http://www.rilin.state.ri.us/statutes/title44/44-11/44-11- 01027280191812384 . 41.htm .

54 The south carolina general assembly embedded the funds 66 michigan’s school-To-registered apprenticeship Program for apprenticeship carolina within the overall budget for the http://www.state.mi.us/career/core/pdfactsheet/schoolToregi south carolina Technical college system with the ster-104_cP.html . understanding that they would be used for the purpose of expanding registered apprenticeship in the state. 67 arkansas youth apprenticeship Tax incentive for employers: 55 author interview of ann marie stieritz, march 23, 2011. http://ace.arkansas.gov/youthapprenticeship/Taxincentivesfo remployers.doc . 56 ibid. 68 louisiana registered apprenticeship Tax credit: 57 lerman 2009.

Working Poor Families Project | www.workingpoorfamilies.org 22 http://www.legis.state.la.us/lss/lss.asp?doc=453221 . htm .

69 West virginia apprenticeship Training Tax credits: 83 michigan road construction apprentice readiness http://www.legis.state.wv.us/Wvcode/code.cfm?chap=11&a program: www.michigan.gov/nwlb/0,1607,7-242-52874- rt=13W#13W . 210085--,00.html .

70 Wac 131-28-026 84 minnesota statute requiring use of training funds and http://apps.leg.wa.gov/wac/default.aspx?cite=131-28-026 . submission of biannual report: https://www.revisor.leg.state.mn.us/statutes/?id=174.03 . 71 Washington state Board of community and Technical colleges’ fee schedule for related technical instruction: 85 new jersey construction Trades Training Program for http://www.sbctc.edu/college/workforce/2010_11_fee_guidance Women and minorities: .pdf . www.doleta.gov/Performance/results/annualreports/Py2007 /nj_Wia_annual_report_narrative-2008.pdf . 72 Washington apprenticeship Funding guidelines: http://www.sbctc.edu/college/workforce/apprenticeshipguideli 86 see page 150–151 of chapter 60 of federal regulations: nes_june07.pdf . office of Federal contract compliance Programs, equal employment opportunity: 73 see 5a-i: http://www.gpo.gov/fdsys/pkg/cFr-2010-title41- http://www.mainelegislature.org/legis/statutes/26/title26sec2 vol1/pdf/cFr-2010-title41-vol1-subtitleB-chap60.pdf . 006.html . 87 more information, see: http://www.efficiencycities.org/wp- 74 virginia Worker retraining Tax credit: content/uploads/062309/BcTd%20TriFold_v6.pdf . http://www.tax.virginia.gov/Web_PdFs/busforms/Wrc.pdf . 88 Pre-apprenticeship 6a-23.010. Florida administrative 75 kansas demonstration Projects Targeting dislocated code: Workers: https://www.flrules.org/gateway/notice_Files.asp?id=976287 http://www.kansasapprenticeship.org/Pages/dislocatedWorke 3. rgrant.aspx . 89 maine department of labor (1992). “apprenticeship rules: 76 For more information on the Florida Workforce rules relating to labor standards for registration of pre- development education Fund, see apprenticeship programs.” 26 mrsa §2006: http://www.oppaga.state.fl.us/reports/pdf/0156rpt.pdf , as well www.maine.gov/sos/cec/rules/12/181/181c003.doc . as apprenticeship specific information at http://www.oppaga.state.fl.us/profiles/2121/ . connecticut state regulation setting standards/registration process for youth pre-apprenticeship program. see sec. 31- 77 author interview with linda sorrell , april 5, 2011. 51d-2(f) and sec. 31-51d-3.(b): www.ctdol.state.ct.us/progsupt/appren/appregs.htm . 78 ibid. 90 chapter 7.00: apprenticeship Training. code of 79 For more information on Wisconsin rise, see: massachusetts regulations. see: 7.05: registration for Pre- http://risepartnership.org/ . apprentices and Pre-apprentice Programs: http://www.mass.gov/elwd/docs/dat/single_column_regulati 80 Policy recommendations and action Plan for Wisconsin ons_6dec10.pdf. rise. updated February 2010: http://risepartnership.org/pdf/policy_agenda.pdf . 91 conway, maureen et al. 2010.

81 For more information on best practices, see: mapping 92 legislative audit Bureau. 2010. green career Pathways: job Training infrastructure and opportunities in Wisconsin . The apollo alliance and the 93 For more information on the Wisconsin regional Training center on Wisconsin strategy. january 2010: Partnership (WrTP)/Big sTeP (one of the two organizations http://apolloalliance.org/wp- awarded funding), see page 8 of the apollo alliance report content/uploads/2010/01/mappingreportwisconsinjan27.pdf . (2010): http://apolloalliance.org/wp- content/uploads/2010/01/mappingreportwisconsinjan27.pdf . 82 Wisconsin’s Transportation alliance for new solutions program: 94 Bready, Pat et al. construction apprentice retention: Best www.dot.wisconsin.gov/business/engrserv/newsletter/qtr1/tra Practice research . greater cincinnati Workforce network: ns.htm . note: the governor Walker’s administration has july 2011: suspended apprenticeship requirements on highway http://dl.dropbox.com/u/1915207/construction%20apprentice construction projects. see: %20retention%20-%20Final%20report- http://dwd.wisconsin.gov/apprenticeship/executive_order108. %20P.%20Bready%20et%20al.pdf .

Working Poor Families Project | www.workingpoorfamilies.org 23 95 see 38.001: https://docs.legis.wisconsin.gov/statutes/statutes/38 . also see: 2.60.1: http://systemattic.wtcsystem.edu/instruction/esm/2.0- Program-standards/2.60.1-aPPrenTiceshiP-Programs .doc .

96 see 6.12.1: http://systemattic.wtcsystem.edu/instruction/esm/6.0- apprentice-related/6.12.1-Technical-studies-journeyworker- aas.doc .

97 author interview with karen morgan, director of the Wisconsin Bureau of apprenticeship standards, may 2, 2011.

98 see: http://dwd.wisconsin.gov/apprenticeship/faq/faq2.htm .

99 see: http://www.wvctcs.org/downloads/aas%20in%20occupationa l%20development.pdf .

100 see: http://www.ivytech.edu/workforce- solutions/apprenticeship-national.html .

101 see: http://www.banner-mfg.org/ .

Working Poor Families Project | www.workingpoorfamilies.org 24