December 1, 2015 The Honorable Larry Hogan, Governor The Honorable Thomas V. Mike Miller, Jr., President of the Senate The Honorable Michael E. Busch, Speaker of the House of Delegates Gentlemen: The Department of Labor, Licensing and Regulation recently convened the Youth Apprenticeship Advisory Committee, a group of business, labor, and other stakeholders, to explore the expansion of youth apprenticeships in Maryland pursuant to Chapter 646 of the Acts of 2014. The enclosed report will serve as a blueprint for the Maryland’s youth apprenticeship system, in an effort to engage a new generation of workers and employers in Maryland. The Committee’s charge is to evaluate the effectiveness of existing high school youth apprenticeship programs in the state, other states, and other countries. The Committee is further tasked with reviewing and identifying ways to implement high school youth apprenticeship programs in the State, reviewing and identifying means through which employers and organizations can obtain tax credits, grants, and other subsidies to support establishment and operation of high school youth apprenticeship programs, and setting targets for the number of apprenticeship opportunities for youth that the state should reach over the next three years. The Committee’s work was directed under the leadership of Dr. Arnold Packer, a specialist in labor economics with expertise in national and international apprenticeship systems. The Committee surveyed youth apprenticeship models in other states and countries as presented by Dr. Robert Lerman, founder of the American Institute of Innovative Apprenticeship. The Committee also heard from the Maryland State Department of Education and other State agencies regarding existing state resources and programs that could be leveraged in support a youth apprenticeship program. In addition, Committee members took part in the inaugural Transatlantic Apprenticeship Exchange Forum held in Washington, D.C. and Baltimore with representatives from the United Kingdom’s apprenticeship program. As we have learned with the more traditional trade-focused registered apprenticeship programs, apprenticeships are a win-win for the business and the apprentice alike. Studies show that apprenticeships can and do reduce turnover costs, increase job satisfaction and increase productivity. Apprenticeships offer employees the opportunity to earn while they learn and reduce sky-rocketing costs associated with education and training necessary to compete effectively in the workforce. The enclosed represents the sum of the Committee’s work to date and an outline for the Committee’s continued work. Twenty-first century businesses demand new ways of thinking that effectively meet complex challenges. I am proud to continue to work with the Committee, and the General Assembly to ensure that Maryland will lead the way in advancing workforce solutions that benefit Maryland’s employers, students, and workforce for decades to come. Best Regards, Kelly M. Schulz Secretary Department of Labor, Licensing and Regulation LARRY HOGAN, GOVERNOR • BOYD K. RUTHERFORD, LT. GOVERNOR • KELLY M. SCHULZ, SECRETARY ADVISORY COMMITTEE ROSTER Secretary of the Department of Labor Licensing and Regulation or the Secretary’s Designee: The Honorable Kelly M. Schulz State Superintendent of Schools or the State Superintendent’s Designee: Dr. Jack Smith Secretary of Commerce or the Secretary’s Designee: Roger Venezia Secretary of Juvenile Services or the Secretary’s Designee: Jay Cleary The Commissioner of Labor and Industry: Tom Meighen Two representatives of The Maryland Apprenticeship and Training Council (MATC): Edwin A. Cluster Jr. Grant B. Shmelzer, Exec. Dir., Independent Electrical Contractors, Chesapeake One representative of an employee organization: Brian S. Cavey, Joint Apprenticeship and Training Program Director of the International Association of Heat and Frost Insulators & Allied Workers, Local 24 One employer whose business has a non-joint apprenticeship program: Larry Robert Minnick Jr., CEO/President of Minnick’s, Inc. One representative from a community college: Nicanor “Nick” Diaz, Frederick Community College, Trustee One individual who holds a doctoral degree and specializes in labor economics with expertise in national and international apprenticeship systems: Dr. Arnold Packer, 2015 Chair One representative of a nonprofit organization involved with employee training and workforce development: Jason C. Roberts, Associated Builders and Contractors One representative from the Maryland Chamber of Commerce: Laleh Malek, McComick & Company, Inc. Committee Staff Kim Beard, Brandon Butler, Esq., Michael Harrison, Andi Morony, Erin Roth, Jeff Tosi Department of Labor, Licensing and Regulation YOUTH APPRENTICESHIP Advisory Committee Annual Report 2015 ii table of contents TRANSMITTAL LETTER ................................................................................................ …………................ ………. i ADVISORY COMMITTEE ROSTER ............................................................................................................................. ii EXECUTIVE SUMMARY ........................................................................................................................................ v INTRODUCTION: THE CREATION OF MARYLAND’S YOUTH EMPLOYMENT PIPELINE................................. 1 PART 1: THE SKILLS GAP & YOUTH EMPLOYMENT .............................................................................................. 1 PART 2: EXISTING TRAINING & EDUCATIONAL MODELS .................................................................................. 3 REGISTERED APPRENTICESHIP ............................................................................................................................. 3 PRE-APPRENTICESHIP ............................................................................................................................................ 4 YOUTH APPRENTICESHIP ..................................................................................................................................... 4 CAREER TECHNOLOGY EDUCATION (CTE) ..................................................................................................... 4 PART 3: LEVERAGING SUPPORT FOR YOUTH APPRENTICESHIPS ...................................................................... 5 CURRENT MARYLAND YOUTH APPRENTICESHIP EFFORTS ........................................................................... 5 APPRENTICESHIP MARYLAND PILOT PROGRAM .............................................................................................. 6 PART 4: NATIONAL MODELS OF YOUTH APPRENTICESHIP ............................................................................... 7 KEY FACTOR #1 – STRONG INDUSTRY BUY-IN ............................................................................................... 8 KEY FACTOR #2 – EDUCATOR BUY-IN .............................................................................................................. 8 KEY FACTOR #3 – MENTORSHIP ......................................................................................................................... 9 KEY FACTOR #4 – FINANCIAL INCENTIVES ...................................................................................................... 9 PART 5: COMMITTEE RECOMMENDATIONS AND CHALLENGES .................................................................... 10 BRIDGING THE GAP BETWEEN STUDENT SKILLS & EMPLOYER NEEDS ...................................................... 10 BRIDGING THE GAP BETWEEN POLICY & REGULATIONS ............................................................................ 11 BRIDGING THE GAP BETWEEN EDUCATION & TRAINING .......................................................................... 11 PART 6: RECOMMENDED LEGISLATION ............................................................................................................... 12 PART 7: CONCLUSION ............................................................................................................................................ 12 APPENDIX A - CAREER TECHNOLOGY EDUCATION CLUSTERS BY COUNTY ............................................. 13 APPENDIX B – U.S. APPRENTICESHIP MODELS .................................................................................................... 17 CASE STUDY 1: ARKANSAS ................................................................................................................................. 17 CASE STUDY 2: GEORGIA ................................................................................................................................... 18 YOUTH APPRENTICESHIP Advisory Committee Annual Report 2015 iii CASE STUDY 3: SOUTH CAROLINA .................................................................................................................. 21 CASE STUDY 4: WISCONSIN .............................................................................................................................. 22 APPENDIX C - FOREIGN APPRENTICESHIP MODELS .......................................................................................... 28 CASE STUDY 1: SWITZERLAND ......................................................................................................................... 29 CASE STUDY 2: GERMANY .................................................................................................................................. 30 CASE STUDY 3: CANADA ..................................................................................................................................