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Local News

Workforce funding reduced in budget bill

By LYDIA COTTRELL lcottrell@timesobserver.com
POSTED: June 10, 2009

To rebuild the economy, the commonwealth must continue investing in workforce development and training initiatives that help workers improve their skills and find good jobs, Pennsylvania Labor and Industry Secretary Sandi Vito said Monday.

Heidi Powley, director of workforce development for the Warren County Chamber of Business and Industry, couldn't agree more.

Senate Bill 850, which proposes a state budget that holds the line on taxes at the expense of program funding, calls for more than $16 million in workforce development cuts including $3,613,000 for industry partnerships and $12,754,000 for industry partnership worker training activities.

"Thousands of businesses and workers are better able to weather this recession because our workforce development initiatives align employer needs with worker education and training efforts," Vito said. "Right now - in this challenging economy when we're working hard to ensure that our citizens and employers have all the tools they need to compete and succeed is when we need to continue investing in proven, successful worker training initiatives."

Warren County falls under the Northwest PA Workforce Investment Board (NWPA WIB), which also serves Clarion, Crawford, Erie, Forest, and Venango counties.

According to Powley, there are 11 industry partnerships in the region: agriculture, electronics manufacturing service, energy, food processing, gas and oil, building and construction, lumber and wood, healthcare, metals, plastics and transportation economic education network. Approximately 26 businesses within Warren County participate in the industry partnerships at varying activity levels.

Industry partnerships are the funding resource for training grants for incumbent workers.

"The incumbent worker training grants that are available to employers have proven to be successful in our region," Powley said.

In the 2007-08 fiscal year, Warren County businesses received over $125,000 in training grants and trained over 1,000 employees through the Workforce Investment Board and the Workforce and Economic Development Network of Pennsylvania. Since 2005, county businesses have received approximately $157,000 in training grant reimbursements as a result of the industry partnerships.

"To take away the resource that helps strengthen business and our economy would be devastating," she said. "We can't afford to widen the skill gaps or to fall behind the competition.

Across the state, approximately 6,300 employers are active in 77 industry partnerships; more than 73,000 employees have improved their skills and wages as a direct result of the training these partnerships provide.

When asked if funding cuts for workforce development seemed counterproductive in a struggling economy, Powley said, "Every year there are various cuts and eliminations to the state budget. This year is no exception. The difference is, businesses are struggling more than ever to stay competitive, some are struggling just to stay afloat. To propose funding cuts to workforce development will absolutely prove to be a catastrophic to our region. We need a trained, skilled workforce."

Powley believes the opportunities afforded by workforce development will keep local businesses going during economic changes as industries evolve.

"With the government focusing on green collar jobs and energy, the funding for training is even more critical," she said. "Local businesses have already seen a shift in manufacturing. Without the skilled workforce needed to keep up with these changes, our region will simply fall off the map."

Senate Bill 850 has been referred to the House Appropriations Committee.

 
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View Comments: | 1-1 | Post a comment
Morrison
06-11-09 6:49 AM
It's redistributing the wealth. Building a new America. Social justice. Change. Wait 'til he adds 40 million Latina to the population.Things will be so much better.

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