Economic Development Work Force Training =

An Example: Travis County Funds long and short term job training out of economic development funds. One long term work force development program, Capital IDEA, has received over $700, funding in a 2 year period.

Why would they do that?

 Today, Economic Development Requires a Skilled Work Force.

 Relocating Companies show preference for locations offering a skilled local work force

 Health Care is one of the  fastest expanding service industries

 Most health care and technical jobs require long term training

Why would they continue to fund this program? SO,

What kind of return does Travis get for the dollars invested?

Evaluation Approach Considered participants % covered by Texas Unemployment Insurance Average quarterly earnings % eligible for unemployment insurance benefits % receiving unemployment benefits 2, 6, and 10 quarters after leaving program for all programs 14 and 18 quarters for those programs having data Using Texas UI wage records and claims files

Impacts Analysis of Short Term Programs Overall mixed results 1 program had strong positive results on employment, earnings, and UI eligibility and claims—the only short term program to have positive association with earnings 2 short term programs significantly associated with lower earnings

Impact Analysis of Long Term Training Capital Idea was only Long Term Program supported Positive, statistically significant impact on earnings Strongly associated with increased employment Strongly associated with eligibility for UI benefits

Study Conclusion: Longer term investments in skills-training yield large, lasting returns in the labor market even seven years after services have ended.

Skill QUEST, Inc. is the Dallas-Collin program equivalent to Capital IDEA.

Capital Idea Description Non-profit workforce intermediary offering: Occupational Skills Training Extensive Support Services Long Term High Demand, High Skill Jobs Starting Salary at $16+ per Hour-(now $18) Fully ¾ in Nursing and Allied Health Careers Training Provided Through Community Colleges

Application Process for Capital Idea Extensive Orientation and Enrollment Process Academic, Financial, Career Assessments To Identify Candidates Having Math and Language Skills for Success Ability to Withstand Financial Pressures during Training The Drive and Determination to Succeed

Wrap-around Services To Ensure Success Weekly Counseling/Instruction/Peer Support Sessions (Vision, Initiative, Perseverance) VIP Sessions on Soft Skills Childcare Assistance Transportation Assistance Other Emergency Assistance Urged to Give Back to Community

Participation in Capital IDEA Associated with 10.9%age point increase in average earnings 10.8% age point increase in monetary eligibility for UI $1223 increase in average quarterly earnings-over comparison group

Factors Included in Evaluation Opportunity Cost Incremental Impacts (estimated v Comparison Group) Fringe Benefits Employer Productivity and Reduced Vacancy Days Taxes Welfare and Food Stamps

Skill QUEST, Inc. is the Dallas-Collin program equivalent to Capital Idea.

Participants Tax Payers Society The same Return on Investment for Economic Development? Can We Afford Not to Offer Dallas