The majority of federal employment and training efforts are not training or even direct employment service provision.[3] Since passing the Area Redevelopment Act in 1961, the federal government has been actively involved in employment and training policy. In more recent decades, and consistent with the trend toward devolution to the states of other federal-mandated activities, the federal government has largely been a funder of state-facilitated programming.
Perhaps the two most influential acts in this space are the Workforce Innovation and Opportunity Act and the Carl D. Perkins Career and Technical Education Act. Federal programs under the WIOA, managed by the Department of Labor’s Employment and Training Administration, support employment and training services through formula grants to states. The ETA’s total budget request for training and employment services, much of which is authorized by WIOA, included $490 million for adult training programs and $666 million for training displaced workers. But the overall budget of the program fell by more than one-third between 2018 and 2019, from $3.3 to $2 billion.[4]
Perkins, managed by the U.S. Department of Education, also provides grants to states. This money is awarded to educational institutions — at the high school and postsecondary levels — to support programs of study within the broader designation of career and technical education, or CTE, also known as vocational training. Over $1.2 billion dollars was appropriated for Perkins in 2019.[5]
There are other federal programs, aimed at the most recent perceived skills training needs, but these programs are much smaller than the WIOA or Perkins. They include programs implemented through the U.S. Department of Labor, such as the Scaling Apprenticeship Through Sector-Based Strategies and the Trade Adjustment Assistance program. The former incentivizes public-private apprenticeship programs in select industries, while the latter assists U.S. workers who lose their jobs due to foreign competition.[6]
Other training-oriented grants emanate from the federal level but are designed only for low-income program participants.[*] While these are more modest in scale than WIOA or Perkins, they supplement the other public programs discussed below. Though WIOA is not limited strictly to low-income people, it requires states to prioritize those with barriers to employment, including those with disability, recipients of public assistance and other low-income groups.[7]
With the notable exceptions of funding CTE in public high schools and occupational programs in state-funded community colleges, the state of Michigan does not directly operate any major skills training programs. But state funding for training and employment services, including job “connecting” services, have become more important due to federal devolution and one-stop career center requirements of federal WIOA grants.
Despite a new emphasis on the need for modern workforce development, most of Michigan’s efforts toward workforce development are rather traditional, that is, facilitated by conventional high schools and community colleges, as they have been for decades. What is relatively new in Michigan are workforce development initiatives that appear only indirectly related to training. Most of these efforts issue from the authority of Michigan’s Department of Talent and Economic Development and largely consist of connecting jobseekers with general employment services, such as job openings, training programs and broad career services and guidance.
For example, the Michigan Economic Development Corporation is the state’s marketing department for workforce development efforts. Its Going PRO in Michigan campaign aims to elevate the reputation and exposure of skilled trades through its own publicity efforts and making electronic publicity tools available free online. The MEDC also provides an online interface, Pure Michigan Talent Connect, that facilitates matching jobseekers with employers as well as training opportunities, mostly offered by community colleges, private companies or private nonprofits.[8]
The state also operates Michigan Works!, which functions through 16 independent regional centers and receives local, state and federal support.[9] State statute defines it as a “coordinated system for delivery of workforce development programs and services,” but, like the MEDC’s programs, Michigan Works! does not provide its own skill training programs.[10] Rather, it seems to primarily focus on providing jobseekers with consultation and job-search assistance.
The state does provide grants for some training programs, however. The Going PRO Talent Fund has since 2014 provided grants to employers that train and retain workers. Firms can be reimbursed up to $3,000 per employee for the cost of providing training through classroom instruction, on-the-job or through an apprenticeship, if the employee is retained for at least 90 days.[11] In June 2018, this was codified into state statute.[12] According to the state, this fund has supported the training efforts of 2,234 companies from 2014-2018, with the average size grant to employers of about $32,000.[13]
The Marshall Plan for Talent also offers $59 million in “innovation grants” to so-called “talent consortia,” made up of some combination of businesses, industry associations, educational institutions and community organizations that support “curriculum creation, project-based certification programs, equipment, full-time staff, industry mentors, professional development, competency-based pilot programs, cybersecurity incentives, career navigators and teacher shortage relief programs.”[14]
While direct provision of training by the state occurs largely through high school CTE programs and community colleges, traditional funding of these can be supplemented at different intervals with special funding efforts. For example, in December 2017 the Michigan Department of Education announced $12.5 million in grants for CTE centers around the state, $5 million of which would be allocated through a competitive grant process resulting in multiple grants ranging from $100,000 to $1 million each.[15]
[*] For example, the U.S. Department of Housing and Urban Development’s Jobs-Plus program awards grants to public housing agencies for employment-related programming including training. The Department of Labor emphasizes occupational skills training in its selection criteria for nonprofit and public entities that would target low-income youth with the assistance of a federal YouthBuild grant. “JPI Jobs Plus Initiative Program” (U.S. Department of Housing and Urban Development, 2019), https://perma.cc/FDS3-RAAQ; “U.S. Department of Labor YouthBuild” (YouthBuild USA, Inc., 2019), https://perma.cc/4H6W-XCBN.