HB 177 SOLOWORKER
PROGRAM
How Did We Get Those Numbers?
Attrition: 1446
Unemployment: 294
Growth: 143 ________________________
1,883
How Many Economic Base Jobs Do We Need?
A group of people from the EDC, the COG, and the community was convened twice during the Jobs Council and once after to reaffirm these numbers. These numbers were then reviewed without challenge by economists.
Import substitution is technically not economic base in nature as it seeks to replace goods and services purchased from outside the economy with those produced internally by attracting, expanding and starting local suppliers.
Theater Activities Jobs Potential
Traditional Economic Development
Recruiting, expansion and retention of major employers 225
Federal Government Liaison BRAC defense efforts, Health, Education 100
Film and Digital Media Film, TV, games 0
Entrepreneurship Innovation to Enterprise, start ups, tech transfer 0
Solopreneurship and solo/remote work
Freelancers, 1099 contractors, independent workers 450
Visitor Driven Tourism, hospitality, transit services 250
Retirement Affluent retirement strategies 200
Agriculture New crop Development 325
Extractives and Energy Mining, oil & gas, power plants, wind, solar, bio 400
Import Substitution* Produce locally instead of importing 0
Total 1950
Where can we get 1,883 jobs?
Is There Enough Job Potential?
E-base jobs needed: 1,883 E-base jobs potential: 1,950
SoloWorks: Job Creation Plan by Location
SoloWorks
Cibola URBAN 1 RURAL 1 RURAL 2 URBAN 2 RURAL 3 RURAL 4 TTL (year) TTL (agg)
Year 1 0
Year 2 35 0 0 0
35 35
Year 3 50 35 35 35 0 0 0 155 190
Year 4 60 50 50 50 35 35 35 315 505
Year 5 70 60 60 60 50 50 50 400 905
Year 6 70 70 70 70 60 60 60 460 1365
Year 7 70 70 70 70 70 70 70 490 1855
Year 8 70 70 70 70 70 70 70 490 2345
Year 9 70 70 70 70 70 70 70 490 2835
Year 10 70 70 70 70 70 70 70 490 3325
Facility TTL 565 495 495 495 425 425 425
Strategic Partners ü CELab ü CCEDF
ü NMSU Grants ü NWNM COG
ü SBDC at NMSU Grants ü ABQ Fatpipe
ü NM EDD ü USDA
ü Cibola Workforce Connections Office ü Continental Divide Electric Co-Op
ü Homestake Mining Company
Workforce Needs: Workforce Training Ø Medium to highly technical skilled Ø Soft skills Ø Vocational trades and skills
Education System Ø Integration of more online resources with
hands on applications Ø SoloWorks now has its own Learning
Management System
How Does a SoloWork Program Find Workers?
u Social media presence on Facebook, Twitter, LinkedIn, Instagram
u Website
u Word of mouth u Coverage by local and state media
SoloWorks: Target Populations
u Disabled* u Trailing Spouses* u High School
Graduates u College Graduates/
Students
u SAH Parents, Caretakers*
u Chronically poor, underemployed, hard to employ, domestic issues*
u Retirees* * Potential sources of greater workforce participation percentage
How Does a SoloWork Program Train workers?
Ø Saylor Academy – Variety, including Customer Service, Business Skills, Spreadsheets, Time Management
Ø HubSpot – Marketing Ø Lisa Wells – S/B Virtual assistant Ø DigitalGarage – Marketing & analysis Ø Career Step - Medical Billing and Coding Ø Kelly Services – Applications and Materials Ø Microsoft Digital Literacy Curriculum – Digital
Literacy and Computer Basics
How Does a SoloWork Program Place Workers?
u Lisa R. Wells – Virtual assistant placement assistance post training
u Career Step – Partnered with RCM Staffing, which staffs 400 healthcare institutions.
u Virtual Call Center Partners – They use a platform that facilitates jobs with around 30 Fortune 500 companies in customer service, technical support, and sales positions
u Multiple staffing alliances
SoloWorks: Target Industries
u Customer Service
u Technical Support/IT
u Programming/CS/ Software Dev
u Healthcare Industry (Medical Billing/Coding)
u E-Commerce
u Art/Creation
u Writing/Editing
u Translation/Transcription
u Bookkeeping
u Virtual Assisting
u Social Media
How does a SoloWork Program Aggregate workers?
u Backend ecosystem for support and retention
u Five-year career planning and management
u Mentorship and accountability programs
Coming Soon…..
Ø TESOL/TEFL certifications Ø Translation/interpretation certifications Ø Actively courting several staffing agencies Ø Social Work and Support Mechanism
The Word is Out…..
High Country News: Remote Work https://www.hcn.org/articles/state-of-change-in-rural-new-mexico-soloworks-learns-how-to-make-remote-work-work PBS: New Mexico In Focus – The State of Change https://www.newmexicopbs.org/productions/newmexicoinfocus/tag/soloworks/
7 Cities Productions https://youtu.be/r3h4EMZuM3s?t=1722
u Year 1: 35 u Year 2: 50 u Year 3: 60 u Year 4+: 70
Per Location
By the Numbers….. October 2016 – December 2017 Applied: 95 Intake: 52 Started training: 35 Finished/finishing training: 25 Placement: 12 Retained: 2
By the Numbers….. February 1 – June 30, 2018 Applied: 115 Intake: 52 Started training: 43 Finished/finishing training: 35 At placement: 15 Placed (FT): 5 Placed (PT): 5
Searching to Sustain…. ü Past Funding Awards: NMFA 2016;
RBDG 2016, NMEDD 2016 & 2017 ü Current Grant Applications Submitted for 2018:
USDA Rural Business Development Grant, PNM Resources New Mexico Gas Company Wal-Mart Continental Divide Electric Cooperative FMCS HHS
ü 2018 Grant Awards Received to date:
NMEDD SoloWorker Grant - $38,500 Homestake Mining Co. - $35,000
How Can You Help Create These Jobs?
What is the appropriation for?
u Creation of 350 economic base jobs
u Appropriation pays $3,500-5,000 post performance for every new economic base job created.
u Continuation of 2017 programs: Grants, Las Vegas, Tucumcari and Las Cruces
u Three or more new programs statewide
u Programs end in July without this appropriation
What is the SoloWorks Model?
u Over the last seven years the CELab, a 501c3 think tank, has been working on developing a practical and cost-effective approach to procuring solo economic base jobs.
u SoloWorks is a job creation program that grows the state economy by procuring jobs that can be done remotely from home or a co-working space.
u This is one of the few job creation programs that will work in NM’s rural communities.
u First of its kind, pioneered in NM
Research Concept Plan Prototype
Minimum Viable Product
Mature
1
National Employer W2
2
Solopreneur
3
Entry-Level
4
Surrogate Corporate Platform
5
Out of State Soloworker Recruiting
5 Core Program Approaches
SoloWorks Center Model
How does the SoloWorks model work?
u The program recruits and qualifies local residents who want to work full time remotely,
u Trains them
u Places them in jobs with one of 70 national employers participating in the program.
u Once they have a job, they can work from home or in the center’s co-working space.
u The program then helps them advance to higher paying jobs.
Program Users
SoloWorks Program
u Cibola Communities EDF
u Las Vegas San Miguel EDC
u Tucumcari EDC
Community Developed Solopreneur model
u GrowRaton
u Mesilla Valley EDA
Problems with Fiscal Impact Report
u This is a new program. There is no precedent for a Solowork or Solowork Centers program approach as an economic base job creation program in this state or any other.
u The Cibola 2016-‐27 pilot cannot be effec6vely used as the basis for the state’s FIR
u Even if the FIR correctly es6mated the cost/performance using the current program plans, it does not account for differences between the JTIP model which includes matching grant awards to startup applicants and the new program funding model proposed which may not or should not include state startup funds.
Program History
• 2012 CELab MRCOG Pilot • Inspired Jobs Council to endorse a pilot for a solowork job
creation program prototype
• 2016 Legislature passed and Governor signed a bill for solowork pilot but did not fund it.
• 2016-2017 CELab/CCEDF Pilot • CELab and a consortium of service providers bootsrapped a
six month pilot program in Cibola County using grant funds and community match in cash and in-kind.
• 12 new economic base Jobs Created over 5 months • This inspired state legislature to fund a statewide program
• 2017-2018 Statewide NMEDD program • State funding: $350,000 out of JTIP ($220,000 committed
but yet unspent)
q1 q2 q3 q4 q1 q2 q3 q4 q1 q2 q3 q4USDA Cibola PilotLas VegasTucumcari
Program end
Pre-‐PlanningPlanning
2016 2017 2018
Operation
HB177 passed unanimously in both houses
HB2 $1M made available from JTIP
Contracts signedwith NMEDD
Communities awarded funds
Appropriation for FY19: $1.5M for 350 jobs
Program History (cont.)
LegendQ1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4 Pre-‐planning
USDA Cibola Pilot StartupCibola Program RampLas Vegas Program StabilizeTucumcari Program
2016 2017 2018Program History Timeline
2016 Cibola Pilot Costs Cash In Kind Total
Startup $ 34,286 $ 22,200 $ 56,486 Facility $ -‐ $ 60,000 $ 60,000 OperaBon $ 40,687 $ 2,200 $ 42,887 Program development $ 20,214 $ 29,109 $ 49,322 Total $ 95,187 $ 113,508 $ 208,694
$56,486
$60,000 $42,887
$49,322
2016 Cibola Pilot Cost Breakdown
Startup
Facility
Operation
Program development
$-
$50,000
$100,000
$150,000
$200,000
$250,000
Cash
In Kind
Return on Investment
u NMEDD created 775 rural jobs in NM in FY17. Funding solowork on an annual basis is estimated to grow that number to 1,200 jobs per year within three years of the program’s existence.
u The state historically has had difficulty creating e-base jobs in rural areas at a significant scale, NMEDD needs a rural solution
u Programs using the SoloWorks model should be able to break even at 4 jobs per month, assuming an award of $3,500 per job post-performance.
u The program is new and has limited historical data but has been proven to be able to create new e-base jobs in rural areas.
Solowork program compared to other state job creation programs
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
Cost per job breakdown Solowork
Lab partnership with small business tax credit
Technology jobs and R&D tax credit
High-wage jobs tax credit
NM Partnership
LEDA
JTIP
NMEDD
Retention
u Program retention is currently at 33% (5 retained of 12 placements)
u Target is 50% for at least one year
u Area of focus for program development
Are the jobs high wage?
u Starting wages for the program range from $9-12 per hour but, long-term, the program is designed to up-place workers to higher wage positions. Over half of those placed in the Grants pilot received raises within 3-6 months, 3 of whom were brought up to $15/hr.
u Soloworkers avoid regular transportation expenses, allowing for them to sustain a higher standard of living on lower wages.
Projected Performance
FY19 SoloWorks Center Performance Es6mates 2019
FY19 Totals
Q3
Q4
Q1
Q2
Jobs Funds Jobs Funds Jobs Funds Jobs Funds Jobs Funds
Cibola Program 15 $ 52,500 15 $ 52,500 15 $ 52,500 15 $ 52,500 60 $ 210,000
Las Vegas Program 15 $ 52,500 15 $ 52,500 15 $ 52,500 15 $ 52,500 60 $ 210,000
Tucumcari Program 10 $ 35,000 10 $ 35,000 15 $ 52,500 15 $ 52,500 50 $ 175,000
170 $ 595,000
Recommended rules for FY19 Appropriation
u Any appropriation would need to include adequate funding for administration at NMEDD for this program
u This program should not continue under JTIP but have its own statute and appropriation. The JTIP statutes are misaligned with this program model and JTIP staff do not have the time or resources to manage this program.
u Funding for this program should continue to be post-performance per job created with a set amount allowed for starting up new programs as issued by NMEDD in FY17.
u Committed funds should be non-reverting.
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