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Minnesota FastTRAC From Random Acts of Excellence to Strategic System

Change

Presentation to the Governor’s Workforce Development Council

Inez Wildwood, Chair, MN FastTRAC Systems Leadership TeamKathy Sweeney, DEED

Linda Lade, MnSCU

May 14, 2009

Agenda

Thank you  for your leadership Review of the workforce challenges and the

FastTRAC solutions to date Identify emerging opportunities with the

American Recovery and Reinvestment Act Ask for your continued input and support

individually and collectively. We would like to meet with you or your reps in one month to review our emerging proposal for  additional Joyce Foundation investments.

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Joyce Foundation provided a “big picture” of Minnesota’s opportunities for improvement and a willingness to partner for solutions

Joyce Foundation’s 2006 analysis and observations ofMinnesota’s priority needs; Minnesota should improve student transitions to credit-

bearing postsecondary programs from such areas as developmental (college remedial) education, adult basic education, and English literacy.

Define cross cutting adult and postsecondary education, workforce education, economic development, and human services goals and accountability measures for the advancement of low-skilled adult workers and improve data capacity to track student transitions within education and in the labor market.

Joyce Foundation investments; 2007 planning grant to Minnesota 1/07 - 6/08 (GWDC) 2008 implementation grant to Minnesota 8/08 - 12/09

(MnSCU and ABE leads, DEED staffing ) Minnesota invited to apply for an additional 2-year

implementation (2010-2011)

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Minnesota’s Workforce Challenges 2009

Reduced K-12 population after 2008 means that improving high school student educational attainment is not sufficient to solve today and tomorrow’s workforce and skill shortages

Today’s population of adults over 25 represents 2/3 of the 2020 workforce

Current unemployment and underemployment of rising percentage of Minnesota’s workforce

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Adult Minnesotan’s Occupational Preparation needs Improvement for Today’s Global Economy Current “in demand occupations” require a

high school diploma plus additional postsecondary occupational credentials…this trend will continue to grow

Twenty to sixty percent of Minnesota adults lack the functional literacy skills to be accepted into postsecondary educational programs

Inadequate educational and occupational skill preparation is a major cause of low wages and stagnant income for individuals and their families

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Educational Data; Adults in Minnesota(age 18-64*)

659,505 of the 3.2 million in the Minnesota workforce are underprepared for occupational success (1 in 5)

61,327 speak little or no English 251,210 have not completed high school (or

equivalent)

346,968 are not prepared for college or skilled work: High School diploma only, in families earning less than a living wage (not ESL)

* Center for Adult and Experiential Learning (CAEL) and National Center for Higher Education Management Systems

Minnesota FastTRAC

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Exclusive Categories

Note: Incarcerated population not separated out. Source: U.S. Census Bureau, 2005 ACS; PUMS

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FastTRAC Focus Population

Low-wage/educationally underprepared workers who are unable to compete for better jobs

Twenty percent of Minnesota’s labor force are significantly underprepared educationally

unemployed or underemployed low-income/wages lacking basic and technical skills for

competitive employment native and non-native English speakers

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Key data on Minnesota’s Adult Occupational Education and Training Systems

Three out of every four WorkForce Center (WFC) customers (universal and program enrollees) lack postsecondary occupational credentials

ABE will serve more than 75,000 adults this year; 12% of the eligible ABE population

Only 1 in 12 ABE completers go on to Higher Education

Demand for adult training services has increased significantly in WFC, ABE and MnSCU in the last six months

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Challenges Identified - MN FastTRAC

Program eligibility limitations:• Narrowly-focused workforce training dollars• Financial aid requirements and family/school/financial

constraints limit access to higher education• Limited alignment between ABE, higher education

and occupational training create a “silo” effect and are inefficient

Labor market information (skill and demand):• Shortcomings limit the communication of supply and

demand info to those involved (employers, intermediaries, and employed/unemployed workers)

Barriers to sharing and managing information:• Compartmentalized management

information systems (ABE, Higher Ed., Workforce)

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Minnesota FastTRAC Partners and Investors

Minnesota State Colleges and Universities-Office of the Chancellor (OOC) and MN Department of Education-Adult Basic Education (ABE) are the co-leads

Department of Employment and Economic Development (DEED) provides staffing

Governor’s Workforce Development Council (GWDC) provided start up leadership

Department of Human Services (DHS) Office of Higher Education (OHE) Department of Labor and Industry (DLI) Community-based organizations Employers WorkForce Centers, Workforce Service Areas, ABE

providers, other frontline service providers Joyce Foundation

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MN FastTRAC Goals 2007- 2009

Create a state-level “stackable credentials” education and training framework for low-wage, educationally underprepared adults that integrates Adult Basic Education, occupational training, postsecondary degrees and certificate programs.

A framework provides Minnesotans access to a seamless educational system with pathways to many options

A framework enables the acquisition, recognition and portability of credentials (e.g., certificates, diplomas and degree) across education and training systems.

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Elements of FastTRAC Approach

Accelerated educational programming Career pathway development Multi-level, industry-recognized credentials Contextualized and competency-based curricula Bridge programming Flexible entry points Connections with regional demand-driven job

needs Support services specific to adult students Comprehensive student records which travel with

the student Apprenticeships, on the job training, etc. Credit for prior learning

Emerging  FastTRAC Opportunities in the American Recovery and Reinvestment Act (ARRA) $4 Billion for workforce development has been committed by the Obama

administration and the U.S. Congress (54% of ARRA created positions require at least a postsecondary credential)

The President and Congressional Leadership are using their “bully pulpits” to urge Americans to get at least one year of postsecondary education and to use any periods of unemployment to re-skill themselves

DEED leadership under Bonnie Elsey has already made commitments to use $2 million of ARRA funds to invest in additional FastTRAC work this year. $1.5 million has already been made available to local WIBs in Minnesota and another $.5 million will be available through competitive proposals in another month. DEED leadership has also put new policies in place to require WIBs to purchase skill training which incorporates the Fast TRAC approach

MnSCU leadership under Linda Baer is supporting  a systemwide coordinated rapid response to the workforce training investments of the ARRA as well as to dislocated workers training needs.

ABE Leadership under Barry Shaffer has increased their support of referrals from WorkForce Centers for training services for persons who need basic computer skill training.

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More Information

For more information on the MinnesotaFastTRAC initiative, www.cte.mnscu.edu

For more information on additional DEED initiatives,www.deed.state.mn.us/workforce/prosperity

For more information on additional MnSCU initiatives,www.stimulusprojectmnscu.edu

Contacts:Mary Schmidt, mary.schmidt@state.mn.us Anne Marie Leland, anne.leland@state.mn.usKathy Sweeney, kathy.sweeney@state.mn.us

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FastTRAC Policy Agenda Continues to Evolve FastTRAC’s state teams develop policy agenda and action

plan - Systems Leadership Team- Stackable Credentials Team- Student Support Services Team- Data and Information Team

Seven incubators test innovations in bridge programming and student support services for adults to inform policy agenda

Related MN initiatives influence policy agenda- Educational Training Collaboratives - Perkins- NGA Sector Academy- ABE Transitions

National and state experience offers lessons- Washington IBEST - Wisconsin RISE- Other Shifting Gears states

Technical assistance from Joyce Foundation

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FastTRAC is Aligned with Federal Stimulus Priorities and Discretionary Funds

FastTRAC is consistent with U.S. Dept. of Labor GuidanceLetter for formula and discretionary WIA funds: Under such a dual-customer approach, seamless career

pathways are developed and offered, and support services and needs-based payments are available, making it far easier for young people and adults, particularly those most in need, to advance and persist through progressive levels of the education and job training system as quickly as possible and gain education and workforce skills of demonstrated value at each level…close alignment with jobs and industries important to local and regional economies [page 3]

To provide career assessments, remedial and occupational training and job search assistance [page 5]

WIA funds may be used for adult education, including basic or English language education…as long as they are provided in connection with occupational skill training. [page 7]

Priority is low income individuals, and ensure that supportive services are made available to support their employment and training needs [page 7]

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Preliminary Recommendations for Embedding FastTRAC Policies into Education and Training Systems

Help fill support service funding gap as supportive services are too restrictive to adequately respond to demand

Be flexible to work with employers and programs for part-time/temporary jobs (“family-supporting wage” may not be realistic in near term) or alternatives while participants wait for jobs

Basic, work-readiness, soft skills training remains priority

Continue to identify industries with entry level jobs and the skills needed

Explore potential roles for Workforce centers, namely: OJT placement, provision of training dollars and support services for eligible participants; making FastTRAC program WIA-eligible

Focus on alignment on assessment, placement and curriculum between ABE and MnSCU occupational skills training opportunities

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Findings for Building the Framework…Regarding Curriculum and Delivery

Short-term (8 hours to 12 weeks per course) Modular Online optionso Hands-on learning that incorporates actual work

tasks, some OJTo Curriculum targets soft skills in combination with

occupational skillso Contextualized learning, vocabularyo Student cohorts (incumbent and new entrants)o Curriculum already availableo Customized Training for trainer options

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Findings for Building the Framework…Impact of the Recession

More applicants, not more qualified applicants (math and reading aptitudes)

more requests/enrollments in ABE more requests for short-term training

Employers have less time to invest in partnership and fewer incumbent workers to send to training

Participants dropping out due to multiple barriers Fewer support service funds available because more

demand for scarce resources Fewer FT manufacturing placements so trainings on

hold; healthcare holding up for time being Longer job-searches

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Findings for Building the Framework… Regarding Program Financing and Sustainability

Temporary funding (grants) is the norm for all programs, both for programming and for student support services

Making connections with ABE helps expand funding base

MJSP is helpful but insufficient (too restrictive as currently administered)

Few examples of MnSCU institution reducing tuition cost

Few examples of employers providing cash (scholarships); tuition reimbursement and in-kind is norm

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Findings for Building the Framework…Regarding Partnerships

Partnerships are organic; a program is about relationships: reaching agreement on who will do what and holding each other accountable

Every incubator had a strong MnSCU institution as a partner (financing/tuition, counseling, facilities, instruction, curriculum development)

Most partnerships had a strong non-profit CBO (who sometimes was also an ABE provider) that focused on support services, outreach to employers, delivering training, among other things

Getting a stronger connection to ABE was most common effort for strengthening the partnership, including additional funding (need to assess ABE role in “basic skills development”, referral and recruitment)

Only one incubator had a WFC at the core or lead partner; WFC/WIBs roles were more typical for referrals, program-eligible supports, and job search assistance

ABE providers in greater MN have part-time staff, limiting ABE availability

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Next Steps for MN FastTRAC

Draw lessons from ETC grantees Draw lessons from ABE and WFC

inventory of coordination/collaboration Monitor FastTRAC Supplement (ARRA

funds) $1.5 million to local WIBs Issue RFP for FastTRAC programming Formulate policy agenda (due July ’09)

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Policy Agenda and Work Plan