Minnesota WorkForce Centers

Issue 20: wib news bulletin - april 2009	kathy.sweeney@state.mn.us

ARRA to preserve and create jobs

By Workforce Development Director Bonnie Elsey,
Minnesota Department of Employment and Economic Development

Minnesotans, like most Americans, are feeling the impact of a deep recession. The workforce development system has never been more relevant and must respond quickly, efficiently and transparently to assist Minnesotans through this difficult time. The system must also be forward looking to assure we are assisting workers in acquiring the skills that businesses will need when the economy recovers.

The American Recovery and Investment Act of 2009 (ARRA) is investing substantial resources in America’s workforce. The intent of ARRA is to:

• Preserve and create jobs;
• Speed up the nation’s economic recovery; and
• Assist those most impacted by the recession.

The guiding principles of ARRA are:

• Be transparent and accountable for all money and outcomes;
• Spend the money quickly and wisely
• Spend resources effectively and efficiently, increasing our service capacity by 100 percent;
• Report widely and frequently on our spending and accomplishments; and
• Serve dual customers: job seekers and businesses.

The intended outcomes of ARRA are to:

• Substantially increase (to 70 percent) the number of customers in training;
• Concurrently spend our 2009 funding allocations;
• Double the number of customers served;
• Focus on moving low-income adults to the middle class;
• Provide an economic boost to the economy by providing summer employment for youth; and
• Upgrade American workers' skills to be globally competitive.

Our ARRA investments must support the needs of regional economies in order to be most effective. Training should focus on occupational skills needed by existing and emerging employers. We must work closely with our partners including Adult Basic Education, institutions of higher education, registered apprenticeships, economic development, and employment and training providers. We must clearly articulate a pathway for low-income workers by providing stackable credentials, diplomas or certifications that lead to middle class employment.

ARRA places a high emphasis on creating jobs by building on our nations infrastructure including roads, bridges, broadband and other telecommunication networks. The act also places a high emphasis on Green Jobs especially in the energy efficiency sector and renewable energy sector. Weatherization and building retrofits will likely provide the greatest number of green jobs in the short term and require the least amount of training. Renewable energies will require more investment and create jobs related to wind, solar, geothermal, and hydropower. These jobs are more technical and require some post-secondary education. Renewable energy jobs are also more capital intensive and the economy will affect businesses' and consumers' willingness and ability to invest. ARRA targets advancements in the health care industry as well. Most jobs in this area require some level of post-secondary education.

ARRA differs from the traditional Workforce Investment Act (WIA) programs in a few major areas:

• Allows contracts with institutions of higher education;
• Allows local Workforce Investment Boards to pay full cost of training up front;
• Allows performance-based contracts with institutions of higher education; and
• Provides automatic accreditation for any institution of higher education.

The differences portray the obvious intent of the authors to erase any barriers that would inhibit the system to quickly enroll job seekers in training.

Under ARRA, all veterans and eligible spouses of veterans receive top priority of service in any program. Other populations who receive priority of service are public assistance recipients and low-income adults in WIA adult programs and youth up to age 24 who are disconnected to work or school in WIA Youth programs.

ARRA also provides temporary supplemental funding for the Unemployment Insurance (UI), Job Service, and Re-employment Services Program (RES). Re-employment Services (RES) staff focus on providing job seeking skills workshops and connecting UI applicants to employment or other services such as the Dislocated Worker Program. Job Service is also required to serve more job seekers and employers by providing labor exchange services.

We have high expectations for our staff to succeed. We expect them to provide exceptional customer service and exhibit empathy with customers. Staff need to communicate well and demonstrate listening skills, problem-solving skills, and respect for customers, colleagues and management.

I will close with the wisdom of Franklin Roosevelt when he stated: "There is no greater demoralizing condition of mankind than unemployment." The workforce system will respect that human condition and do all we can to bring dignity back to each Minnesotan.

View the overview of U.S. Department of Labor – Employment and Training Administration (U.S. DOL/ETA) implementation strategy for WIA and Wagner-Peyser funding under the American Recovery and Reinvestment Act at wdr.doleta.gov/directives/corr_doc.cfm?DOCN=2717 .

The Allotments for training and employment services as specified under ARRA can also be viewed at wdr.doleta.gov/directives/corr_doc.cfm?DOCN=2718 .

Read a letter to the Workforce Investment Boards from Bonnie Elsey that was sent March 6, 2009, at www.positivelyminnesota.com/workforce/arra/040209letter.doc .

View information pertaining to ARRA at www.positivelyminnesota.com/workforce/arra/staff.ppt .

If you want additional information, go to the U.S. DOL Recovery site at www.doleta.gov/Recovery/eta_default.cfm#PressReleases .

For information on education and the recovery, go to the U.S. Department of Education Web site at www.ed.gov/policy/gen/leg/recovery/index.html .

For further questions, contact kathy.sweeney@state.mn.us .

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