Advantages

							            Advantages Associated with Stable
                 Funding for State Supported
                        Workforce Education


Jason V. Pugh
Associate Executive Director
Workforce, Career and Technical Education
Mississippi State Board for Community and Junior Colleges
    About the Mississippi System of
         Workforce Training
Q: What is the mission?

A: The mission is to provide training to existing
  businesses located within the state inclusive
  of new and expanding businesses, employees
  and/or new hires.
    About the Mississippi System of
         Workforce Training

Q: What is the role of the SBCJC?

 A: The SBCJC provides oversight and
   accountability for state appropriated project
   funding.
        About the Mississippi System of
             Workforce Training
Q: How does the SBCJC ensure fiscal accountability?

   By ensuring that colleges are investing project dollars in training that has been
    requested by existing businesses and not in other activities.

   By providing broad based fiscal guidelines for projects that promote equity in
    training expenditures across the state.

   By monitoring training events to ensure that training is occurring according to the
    pre-determined plan between the business and the college.

   By aiding the colleges in professional development and training curriculum
    matters as they relate to the delivery of a quality training program.

   By monitoring training expenditures and projects on a post-event basis and
    providing technical assistance to the colleges as needed.
    About the Mississippi System of
         Workforce Training

Q: What training is taking place?

A: The SBCJC quantifies all training activity
  according to 42 different types of training
  categories. FY2006 projections are for over
  35,000 sections of these 42 training categories
  across the state.
          About the Mississippi System of
               Workforce Training
Q: What kind of training is taking place?
Manufacturing            Hospitality                 Corrections
   Measurements            Basic Skills               Basic Skills
   Industrial Math         Housekeeping               Construction Trades
   Blueprint Reading       Customer Service
                            Oral Communications     Healthcare
Non-Profit/Govt             Computer Applications      Medical Billing
   Basic Skills                                        Medical Coding
Computer Applications   Multi-Sector                   Computer Applications
Oral   Communication       Welding                    Oral Communication
Customer    Service        Computer Applications      Customer Service
                                                          # of Sections




                                                        10000



                                                         2000
                                                         4000
                                                         6000
                                                         8000



                                                            0
                                               Safety



                                   Medical/Healthcare


                                            Industrial
                                           Production

                                      Computer Use &
                                       Applications

                                       Quality Control
                                        Management




FY2005
                                    Customer Service




FY2006
         Training Category/Class
                                   Personal Dev. Skills
                                                                            Example: # of Training Sections
                                                                          (FY2006 Projected vs. FY2005 Actual)
                                                                                                                      Workforce Training




                                   Supervisory/Leade
                                         rship


                                           Basic Skills
                                                                                                                 About the Mississippi System of




                                      Pre-employment
                                          Training
   In FY2006 Mississippi’s workforce training
    was approximately 16.5M.

   In FY2006 Mississippi’s community and
    junior college workforce training centers
    trained over 140,000 individuals.
            About Stable Funding for
              Workforce Training
Why even talk about it?
   Mississippi’s process of year to year general fund
    appropriations to support workforce training
    contains factors that can adversely affect workforce
    training in our state.
       Vulnerability of funding to economic conditions.
       Lack of inflationary funding mechanism.
       Inability to plan long range and strategically.
       Constant “wrangling” over funding throughout legislative
        session.
         About Stable Funding for
           Workforce Training

Questions

   How do other states fund state supported
    workforce training programs? (background)
   Do states that have stable funding sources
    exhibit some type of advantage over those
    that do not? (current question)
 How do other states   General Fund &
fund state supported   Employer Taxes
 workforce training
    programs?


General                                   Employer
Funds                                      Taxes
                             General
                              Fund,
                            Employer
                            Taxes, &
                              Other
                            Revenues




  General                                 Employer
  Fund &                                  Taxes &
   Other                                   Other
  Revenue                                 Revenue




                        Other Revenue
                       Lottery/Employee
                            Tax, etc.
            About Stable Funding for
              Workforce Training
How do other states fund state supported workforce training programs?
            About Stable Funding for
              Workforce Training
How do other states fund state supported workforce training programs?


       California was the first state to provide stable funding in
        1982.
       Six (6) additional states followed suit in the 1980’s.
       Seventeen (17) states made the move during the 1990’s.
       Two (2) states have made the move since 2000, including
        Mississippi.
                About Stable Funding for
                  Workforce Training
                Do states that have stable funding sources exhibit
                 some type of advantage over those that do not?
Methodology

   The Null Hypothesis - States with a stable funding
    source for state supported workforce training do not illustrate
    a competitive advantage over states utilizing general
    appropriations or other funds for workforce training.


   The Tool – Standard Statistical Testing on a set of
    Economic Indicators with a demonstrated link to workforce
    training.
          About Stable Funding for
            Workforce Training
          Do states that have stable funding sources exhibit
           some type of advantage over those that do not?

Economic Indicators

   Industry Attraction
   Workforce Participation Rate
   Wage Growth
   Per Capita Personal Income
   Employment Growth
          About Stable Funding for
            Workforce Training
          Do states that have stable funding sources exhibit
           some type of advantage over those that do not?

Results
   Of the five economic indicators chosen to
    study, only per capita personal income
    demonstrated a statistically significant
    difference between those states employing
    stable funding sources for workforce training.
         The Mississippi System of
            Workforce Training
   Mississippi became the 25th state in the nation
    to provide some form of stable funding for
    workforce training in 2005.

   Mississippi’s method utilizes UI based
    employer taxes to generate revenue.
            The Mississippi System of
               Workforce Training
The Experience May be Better Than the Research
   What are the result of the original issues after
    implementation of this fund?
       Vulnerability of funding to economic conditions.
           Reduced!
       Lack of inflationary funding mechanism.
           Done!
       Inability to plan long range and strategically.
           Improving!
       Constant “wrangling” over funding throughout legislative
        session.
                                    The Mississippi System of
                                       Workforce Training
                                                 The new questions.
          Mississippi Economic Base by Industry 2004                                                        FY2006 Training by Industry
                   (Source: SWIB State Plan)
                               Extractive
                                      1%                                                                                        M ulti Sector
                                                                                                              Government
                                                                                                                 11%                  8%
                       Government                                                    Financial Activities
                          22%                                                                3%

                                                                                        Information
                                                                                             1%
                                                              Services
                                                                32%        Trade, Transportation
                                                                                & Utilities
                                                                                     4%



Financial Activities
        4%

        Information
             1%                                                                                                                                 Services
                                                                                                                                                  39%




                                                            Construction
                                                                4%                        M anufacturing
           Trade, Transportation
                & Utilities                                                                    32%
                    20%
                                           M anufacturing
                                                16%                                                                          Construction
                                                                                                                                 2%
The Mississippi System of
   Workforce Training