Legislative Update

Legislative budget proposals released
As lawmakers wrestle with tough decisions for how to close a $6 billion shortfall projected for the state's 2009-2010 budget, many worthwhile initiatives are at risk of becoming casualties of the economic downturn     -- and many areas of the state budget, including Florida's workforce system, are again facing cuts. House and Senate Appropriations Committees recently released their first round of budget proposals.

In the Senate, where Transportation and Economic Development Appropriations Chairman and Workforce Florida Board member Senator Mike Fasano has consistently expressed his top priority is funding early learning, the Quick Response Training (QRT) program would face the severest cut, going from $5 million to zero. The program -- a staple of the state's economic development toolkit and a popular resource for businesses in Florida -- reimburses companies for a portion of their customized training expenses for workers in newly created jobs. It is administered by Workforce Florida and funded through the state's Penalty and Interest Trust Fund. The current Senate budget shifts the QRT funding to the School Readiness program to make up for a loss of general revenue. The House Transportation and Economic Development Appropriations Committee, however, led by Representative Richard Glorioso, recommends $2 million for QRT. In recognition of how instrumental the grant program is to the state's business expansion efforts, Rep. Glorioso also has said he will try to find additional funds, if possible. The Governor has recommended $4 million for QRT. Ultimately, QRT funding will be part of a negotiated compromise between Representative Glorioso and Senator Fasano and their respective chambers.

That the 16-year-old QRT program would be a prospect for a funding reduction is not entirely surprising in this extraordinarily difficult fiscal crisis. The program, however, merits attention from lawmakers, who are trying to strike a balance between meeting critical needs and continuing to invest in sound programs that support economic opportunities for the state now and in the future. QRT is such a program. It also is a key contributor to Florida's reputation among businesses, site selection consultants, economic developers and others for having some of the best workforce training programs in the nation. QRT grants often are awarded in high-skill, high-wage targeted industry sectors that support our goal of diversifying the state economy. From July 2000 to June 2008, Workforce Florida awarded more than $59 million in QRT grants, including money recaptured from unused awards and directed to new companies, to train nearly 67,000 Floridians. For every $1 in public funds invested in QRT, companies have invested $14.35 into training for their employees. An analysis by the Florida Education and Training Placement Information Program (FETPIP) shows workers trained using QRT grants saw their wages increase on average by 116 percent during the first year after training. That is a strong confirmation of both the value of skills upgrade training to a company's bottom line and the pocketbooks of those who gain new knowledge and expertise that allows them to become more productive on the job.

The news at the Capitol is not all grim, however. I'm thankful to Representative Glorioso and Senator Fasano as well as members of both transportation and economic development appropriations committees for their continued support for workforce funding in other budget areas. One example is their alignment with the Workforce Florida Board's recommendation to fully fund Workforce Florida's operational budget. Despite increasing demands and challenges for Florida's workforce system, the statewide workforce investment board charged with policy setting and oversight has functioned with essentially the same operational budget since it was created by the Legislature through the Workforce Innovation Act of 2000. I have met with both Representative Glorioso and Senator Fasano and I look forward to continuing to work with them to support existing and new strategies for meeting Florida's workforce needs.

Workforce Stimulus Funds Released
The efforts of Florida's workforce system partners -- state and local -- to put federal stimulus funds to work continue to move forward. These efforts are aimed at helping the unemployed get back to work, improving the skills of those seeking to enter or advance in the workforce and supporting the competitiveness of businesses by investing in training for their employees. Governor Charlie Crist announced on March 20 that $165 million in American Recovery and Reinvestment Act (ARRA) funds for deployment through Florida's workforce system have been released pending full budget authority from the Legislature. Through the leadership of the Governor as well as the Florida House and Senate, the workforce system already has received a legislative nod to begin using stimulus funding. The Governor's announcement followed action on March 18 by the Workforce Florida Board's Executive Committee to allocate funding to the statewide and local workforce investment boards.

It's important to note that while the workforce stimulus funding is available to Florida over three budget years, the U.S. Department of Labor in its guidance has firmly emphasized federal expectations that funds will be invested efficiently and effectively now through June 30, 2010, to aid in local, state and national economic recovery. Florida's workforce system is committed to do so with transparency and accountability.

Florida's 24 Regional Workforce Boards will receive $138 million or about 84 percent of the stimulus funds directly, including $20 million in state-level funding that the Executive Committee directed immediately to the boards to help laid-off workers and people who lose their jobs when their employers go out of business. The funds were allocated using state and federal formulas. The allocations range from $771,000 for Florida's smallest workforce region, Florida Crown Workforce Board, which serves Columbia, Dixie, Gilchrist and Union counties, to $21.8 million for its largest, the South Florida Workforce Board, which serves Miami-Dade and Monroe counties. The amount available to each workforce region can be found by clicking here. Each Regional Workforce Board is working on a plan to deploy stimulus funds to best meet the workforce needs of people and businesses in the communities they serve consistent with ARRA guidelines and objectives that include a priority for unemployed and underemployed workers as well as people seeking to overcome barriers to employment.

Workforce Florida's staff is working on recommendations to the board for about $27 million in state-level funding that will be invested consistent with ARRA intent and state economic development priorities. Our system's No. 1 priority is responding to the employment and training needs of unemployed Floridians, while also creating and investing in long-term, talent-development strategies that support a robust, post-recession economic future for Florida. One such initiative is the anticipated expansion -- to other parts of the state and other healthcare companies and workforce partners -- of the well-received Employ Florida Healthcare Workforce Initiative. The initiative began to take shape earlier this year. It will be funded by Workforce Florida with leveraged funds from Regional Workforce Boards and healthcare companies. Under the pilot project, four local workforce boards in South Florida are working with HCA Inc. to recruit and train entry-level workers as well as provide skills upgrades for current employees to move into high-demand healthcare occupations.

Meanwhile, Workforce Florida, the Agency for Workforce Innovation (AWI) and the Florida Workforce Development Association have come together to form stimulus-related working groups. These groups will aid in our system's implementation of ARRA and the effective deployment of funds as well as better position Florida strategically for competitive grant opportunities such as the $750 million available through the U.S. Department of Labor for training and placement in high-growth and emerging industry sectors including renewable energy.

Florida is one of 16 states that the U.S. Government Accountability Office (GAO) will closely monitor for the use and outcomes of federal stimulus funds. Florida's total share of ARRA funding is $13.4 billion. To better coordinate with other areas and align with the state's overall ARRA efforts, in particular those that support job creation and retention, Workforce Florida is now participating in weekly Implementation Team teleconferences led by the Florida Office of Economic Recovery. That office is headed by Don Winstead, a Workforce Florida Board designee. (More information on Don's role can be found later in this report.) Agency for Workforce Innovation Interim Director Cynthia Lorenzo also participates in the Governor's Stimulus Working Group for state agencies.

Whether through services and resources available in any of the nearly 90 One-Stop Centers throughout the state, the Employ Florida Marketplace, the state's comprehensive online job-matching and labor market tool at EmployFlorida.com, Workforce Florida-led programs such as Quick Response Training and Incumbent Worker Training and initiatives such as Employ Florida Banner Centers, or other new and innovative strategies still to come, our collective efforts carry great urgency during these challenging economic times. At 9.4 percent, Florida's unemployment rate is the highest it's been in 33 years. Sustaining businesses by connecting them with qualified workers and boosting their employees' skills through training is fundamental to our efforts to stimulate the economy. With the continuing support of Governor Crist and the Legislature, I'm confident that Florida's workforce system will continue to rise to the challenges before us.

Don Winstead Appointed to Oversee Florida Office of Economic Recovery
Appointed earlier this month as the Special Advisor to the Governor for the Implementation of the American Recovery and Reinvestment Act, Don Winstead has joked that he hopes he gives special advice. Florida's workforce system knows that's exactly what he delivers. As the Deputy Secretary for the Department of Children and Families and a designee serving on the Workforce Florida Board, Don has been an engaged leader and guiding force for developing policies that have contributed to the success of the state workforce system in helping Floridians transition from welfare to work and self-sufficiency. His new appointment by Governor Crist is a strong recognition of the experience, knowledge and wisdom he brings to Florida's efforts to strategically invest federal stimulus funds. To no one's surprise, Don has been hard at work leading the new Florida Office of Economic Recovery. The Governor, joined by Don, recently unveiled the state's new Web site to track funds and answer Floridians' questions related to state stimulus spending.