Keystone Research Maps Workforce Strategy for Rendell

Recommendations in Report Commissioned and Transmitted by Schweiker

“Growing Faster” Initiative Would Use Public Money To Launch Private Partnerships That Meet Skill, Career Needs

KRC Calls for Further Discussion of Proposals

Harrisburg – The Keystone Research Center today unveiled A Workforce Development Agenda for Pennsylvania’s New Governor, an independent assessment of the Pennsylvania workforce system commissioned last year by Governor Schweiker, and based on interviews with 50 policymakers and practitioners across Pennsylvania.

KRC finds that Pennsylvania has a bewildering maze of 47 different employment and training programs that receive $1.3 billion in funding and span five major agencies. These programs may help particular workers served but do not have an impact on the overall health of the job market or long-term economic development.

The report suggests that, to be successful, the new Governor’s jobs agenda must overcome departmental turf battles and use workforce dollars to create regional training partnerships linked with key industry clusters. KRC proposes a “Growing Faster” program to seed fund such partnerships, using public workforce dollars to boost skill development, productivity, and economic opportunity strategically.

In a January 17 letter transmitting the report to Governor Rendell, former Governor Schweiker said “KRC’s solidly grounded policy recommendations deserve close attention as you develop workforce strategies in partnership with the State Workforce Investment Board (SWIB). These recommendations provide a guide to how you might build on my efforts on workforce development (similar to the way the Early Childhood Task Force provided a guide in that area).” (The SWIB is a public-private board with policy and oversight responsibility within the workforce system)

While some have called for eliminating workforce programs, Stephen Herzenberg, KRC economist and report co-author said redirected public dollars have a key role to play. “The workforce infrastructure – industry partnerships, occupational networks, and educational institutions– is as pivotal in a knowledge-based economy as the transportation and telecommunications infrastructure were in our national mass manufacturing economy.” According to Herzenberg, this workforce infrastructure will not emerge automatically via the “invisible hand” of the market any more than did the infrastructures that fueled growth in the “old economy.” Regions that invest too little or ineffectively in learning and career supports will see their economic position deteriorate.

Highlights of the KRC’s nine recommendations to the new Governor include the following:

1. That the next Governor must promote collaboration and teamwork on workforce issues among state Departments. One way to promote collaboration would be through an interagency workforce and economic development team or “Cabinet.”

2. That the next Governor must build the capacity of public workforce professionals and key private stakeholders to collaborate in creating effective industry and occupational training partnerships. This could be done would be through professional development for local workforce staff and boards; the seed funding of a labor workforce development institute; the creation of a Pennsylvania Network of Sector Practitioners modeled on a new national network, and encouraging top business leaders to “give back a week” each year to collaborating with workforce partnerships that improve their bottom line.

3. That Pennsylvania launch the “Growing Faster” initiative to seed-fund and strengthen training partnerships linked with key industry or occupational clusters in regional economies. Rather than requiring new state dollars, Growing Faster could be done through an expansion of the state’s Critical Job Training Grant program, creatively mixing state and federal dollars and supplementing them with foundation support. The overall pool should have enough flexibility that dollars are available not only for training but also for the pivotal task of building employer (and where relevant, union) commitment to new partnerships.

In an innovative twist on the research process, Keystone is inviting those interested to participate in an on-going discussion of its new workforce paper on the KRC Web site. To sign up to participate, go to www.keystoneresearch.org. “The version released today is a ‘discussion draft’ that aims to stimulate additional dialogue with practitioners, policymakers, and the public,” said Peter Wiley, KRC Communications Director. “This dialogue will help us refine our analysis and recommendations before presenting the report to the next State Workforce Investment Board meeting in March. We are sending an invitation to participate in this discussion to all of Pennsylvania’s County Commissioners.”

The Keystone Research Center, a non-partisan Harrisburg-based think tank, is a leading source of independent research and analysis on Pennsylvania’s economy and public policy.

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