Regional Councils Build
Local Work Forces

By Laurie Thompson, Director of Programs, NADO Research Foundation

In testimony before the Joint Economic Committee, U.S. Congress, in November 2002, Federal Reserve Bank Chairman Alan Greenspan stated, “Forces have continued to weigh on the economy: the lengthy adjustment of capital spending, the fallout from the revelations of corporate malfeasance, the further decline in equity values, and heightened geopolitical risks.” He noted the economy has hit a “soft patch,” one that is being felt particularly hard in rural areas.

While the nation is challenged by a turbulent economy, regional councils continue to offer programs that can build their local work force to attract new and retain existing businesses, generate opportunities for entrepreneurial growth, eliminate shortages, and offer training and jobs for dislocated workers.

Rural Virginia Set to Cure Health Care Worker Shortage

The Central Shenandoah Planning District Commission (PDC), comprised of five counties, five cities and 11 towns, in the Shenandoah Valley of Virginia, facilitated a regional approach to workforce development. According to Darryl Crawford, a PDC senior planner, “The PDC’s role was to put together the players, coordinate resources, assist with the program planning process, and work with a consultant, Sandi Scannelli of Education Training Corporation in Staunton, Virginia, who secured a $2.4 million, two year Department of Labor grant for the region.”

A network of organizations, including the PDC, the Shenandoah Valley Partnership (SVP), the Shenandoah Valley Workforce Investment Board (WIB), community colleges and technical schools, and other public and private sector stakeholders throughout the five county – five city region was utilized to develop a regional approach. The SVP provides policy direction, while the WIB administers the workforce training grant that focuses on three sectors: health care, precision and advanced manufacturing, and information technology, telecommunications and electronics. Project Director Sharon Johnson reported that the health care sector of the training grant has generated much interest and has been a great success.

“Recognizing there is a nursing shortage in the region, the WIB convened key hospital and educational leaders to discuss ways to train more Licensed Practical Nurses, Registered Nurses, and Bachelor of Science Nurses. We soon learned the schools had waiting lists for the nursing programs because they did not have the capacity to enroll additional students,” reported Johnson. After establishing memorandums of understanding with three schools in the region and one that is just outside the PDC region but serves two of its counties, the WIB also used grant funds to hire instructors at three of the colleges, increasing their capacity to enroll students.

To help students pursue their career goals, the WIB set-aside grant funds for 177 scholarships. Students commit to a work and residency agreement that requires them to work in a health care facility in the region (one year of work for each year they receive a scholarship). The WIB is working with VaLiance Health, an integrated network of independent, community-focused health care providers, to place graduates in their hospitals. Recently, the WIB began working with long term care facilities to establish agreements to place graduates. The WIB helps students develop career plans, prepare resumes, enhance their interview skills, and also coordinates local job fairs. The first group of 62 students will graduate in the spring of 2003.

The WIB in partnership with VaLiance Health is currently approaching participating hospitals to assess the feasibility of hospital funding for the additional instructor positions once the grant ends.

Louisiana Work Force Aged to Perfection

The Acadiana Regional Development District (ARDD), an EDA-funded district located in Lafayette, serves eight parishes located in the heart of Louisiana’s Cajun country. Stan McGee, ARDD’s Executive Director, said they are currently challenged by a labor shortage and an abundance of “dislocated” workers – retirees, laid off workers, career switchers, and others re-entering the labor force. To capitalize on the expanding older work force, the ARDD established 55 Plus, a program that trains and matches older workers to jobs throughout the region.

“There are several options for potential employers who are looking for mature employees to add to their workforce. On-the-job training is just one service offered to employers and participants. ARDD offers job search workshops to assist participants with job search, self examination, resume writing, interview techniques, employment barriers and highlighting skills to prospective employers,” reported McGee.

Through 55 Plus, ARDD has trained more than 1,800 people since 1984. 1,260 people have been placed in jobs throughout the region. “The program is a very successful solution for older workers who are not ready to retire or who need to continue working. Due to the labor shortage, many seniors have been called out of retirement,” said McGee.

While 55 Plus has helped match older workers with jobs, there have been a few disappointments. ARDD found it necessary to discontinue an offshore catering program that trained older workers in all areas of food preparation and serving and helped them find jobs on oil rigs in the Gulf of Mexico. It became increasingly difficult to monitor the older workers on-site, as required by the grant, because of state regulations that prohibited site visits from ARDD.

ARDD is also helping entrepreneurs of all ages start businesses. With a three-year, $5 million welfare-to-work grant from the U.S. Department of Labor Employment and Training Administration (ETA), ARDD has established a collaborative program that includes an entrepreneurship component.

A 72-hour training module covers business startup and management. With funds from the state Department of Economic Development, the ARDD helps entrepreneurs with startup loans. Through a program housed at Tulane University, ARDD works with clients to save money for a new business through Individual Development Accounts (IDAs) by offering $4 for every $1 the client saves. They are also working with local banks to use the Community Reinvestment Act requirements to work with entrepreneurs. ARDD also works with the state as the regional service provider for microenterprise and entrepreneurship training. In the spring of 2003, ARDD will work with the state and the Association for Enterprise Opportunity to conduct a two-day training session on these topics.

For more information contact: Darryl Crawford at 540/885-8174 or darryl@cspdc.org; Sharon Johnson at 540/885-2002 or sharonj@valleyworkforce.com; or Stan McGee at 337/886-7782.

Local Governments in New Mexico Have Key Role

“The Workforce Investment program in New Mexico has recognized the need to have councils of governments (COGs) involved,” said Lee Tillman, Executive Director of the Eastern Plains COG (EPCOG). “As a result of the COG involvement, the program gives a tremendous opportunity for local governments to be fundamentally involved throughout program development and delivery - the first time ever in the state,” continued Tillman.

EPCOG, an EDA-funded economic development district, administers the Workforce Investment Board for 12 counties in eastern New Mexico (seven counties in its service area and five in an adjacent district). Tillman said in addition to providing workforce training and a skilled workforce, EPCOG is committed to helping local governments meet the objectives of the Work Force Investment Act. “The Act is recognition that a skilled work force is a fundamental economic strategy to attract and retain businesses,” explained Tillman.

EPCOG relies on two approaches to improve the region’s workforce: on the job training (OJT) provided in cooperation with employers; and the One Stop Career Centers that brings together a broad range of agencies to serve the needs of both employees and employers. As required in the act, performance goals have been established for the entered employment rate, the retention rate, earnings change and credentialing rate. Their goals include a 67 percent placement rate, and a 75 percent retention rate after six months on the job. Since operations began in July 2000, they have realized a 54 percent placement rate and a 73 percent retention rate. “As we get better in managing performance outcomes, these percentages will all go up, but the important thing is that we’re establishing criteria for monitoring performance,” Tillman said.

Local businesses are pleased with the program’s results. Jimmie Shearer, President and CEO of Sunland Peanut, a 45-employee business located in Portales also chairs the 51-member Eastern Area Workforce Development Board. Sunland, the largest Valencia peanut processor in the U.S. and the only peanut butter manufacturer in the state, has hired three employees through the OJT program and several through the One Stop. Shearer, recently appointed to the National Standards Peanut Board, reported that the program has “helped Sunland hire several people that would not have been hired without the training they received from the work force program.”

For more information, contact: Lee Tillman, 505/762-7714 or ltillman@epcog.org; Jimmie Shearer, 505/356-6638 or jshearer@sunlandinc.com.

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