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Skilled Trades Training Fund

Skilled Trades Training Fund . AN OUTSTANDING OPPORTUNITY FOR MICHIGAN. Skilled Trades Training Fund Facts. In Governor Snyder's 2014 budget Ten million d ollars To be used for short term training needs for employers (less than 3 months)

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Skilled Trades Training Fund

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  1. Skilled Trades Training Fund AN OUTSTANDING OPPORTUNITY FOR MICHIGAN

  2. Skilled Trades Training Fund Facts • In Governor Snyder's 2014 budget • Ten million dollars • To be used for short term training needs for employers (less than 3 months) • Will fill in the gaps that are created by federal restrictions • Partner inclusive • User friendly • Plan is to be paperless process • Designed to work at the speed of business

  3. Allowable Training • Training programs funded by the STTF must: • Fill a documented talent need experienced by an eligible participating business • Must lead to full-time employment or continued employment • Examples of allowable training include: • Classroom • OJT • Customized • Incumbent Worker • USDOL Registered or Veterans Administration Approved Apprenticeships

  4. Employer Expectations • Actively involved in planning and designing of training • Commit to hire the persons trained • Pay wages to trainees that are equal or greater than the current regional occupational wage for the applicable job title • Enter into a training agreement with the sponsoring MWA • Share outcomes and success stories • Use www.mitalent.org and the sponsoring MWA to post job openings for new workers

  5. Trainee Expectations • Be a suitable match for the employer prior to training • Commit to complete training • Be willing to work for the sponsoring employer(s)

  6. Anticipated Outcomes • Jobs Created – 1,500 • Jobs Retained – 2,500 • Training completion rate – 75% • Employment rate following training completion – 80% • Employment retention rate at six months – 70% • Hourly wages at six months - $13.95

  7. Training Duration and Targets With the exception of USDOL or Veterans Administration Registered Apprenticeships training duration should not exceed three months Targeted amounts are as follows: • Classroom/Customized $1,500 • Incumbent Worker $1,500 • OJT $1,500 • Apprenticeship $3,000

  8. Who Can Request an Application Requests for an application can come from: • Michigan Works Agencies • WDA Industry Cluster Directors • MEDC Business Development Managers • Local Economic Developers • Community Colleges/other training partners • Employers

  9. Application Process • Request for an STTF Application is made to Michigan Works! Designated Business Services Professional (BSP) who manages the application process • BSP’s will coordinate the processes with the referring partners and the employer(s)

  10. MWA Designated Business Services Professionals

  11. MEDC Business Development Managers Contact Information

  12. Application Process • Designated BSP conducts a fact finding to determine : • If regional and local funds can be used first • If funding streams can be blended to achieve the outcomes for the customer(s) • If the training request meets the employers needs • What other options may provide a better solution • If STTF is appropriate: • A STTF application is emailed to the employer(s) to be filled out and returned to the MWA. Lets review the Application

  13. Application • PDF Format • Two Pages • Type and Tab Process • Can be saved /emailed • Has 4 Sections • #1 Employer Info • #2 Training Info • #3 Employer Signature • #4 MWA Info • STTF Final Forms\Michigan Skilled Trades Training Program Application.pdf

  14. Section Four • Cluster Info • Partner Info • Matching Fund Info • Local Regional Fund Info • MWA WIA/Trade Contributions • Project Estimates • Recommendation Section • Rational for Project • MWA Signature Section • Save, Print and Submit Buttons

  15. Application Addendums • Cluster Application can have addendums attached with company additional information use the • If more people are to be trained than the application allows room for use the Additional Names Addendum:

  16. Additional Employer Addendum

  17. Additional Names Addendum

  18. Leveraged Funds Section #4 • Section #4 will reveal the Leveraged Funds • We are tracking and reporting Leveraged Funds • Leveraged Funds show ROI to the Legislature • Gives us a rational for future funding • Examples: • Employer match • Federal • MEDC • Local

  19. Application Process Continued Application is a three step process: • Employer(s) completes sections 1-3 on the application, emails it to the Designated Michigan Works BSP • MWA reviews the application for accuracy, completes the second part of the application and makes a recommendation to fund or deny the applicationand submits it to: skilled@michigan.gov • WDA reviews application and responds in three business days No hard copies of applications will be accepted

  20. Implementation • Designated MWA BSP contacts the customer and referring partner to inform them of the funding decision • Upon approval, your training agreementis drafted and signed by the designated employer representative and the designated MWA representative. Copies are kept on file for future monitoring • Training cycle begins

  21. Training Agreement • Currently MWAs may use local training agreements • Goal is to move toward a consistent contract for subsequent years • Contracts must contain all STTF requirements • OJT sliding payment scale • Class list • Payroll register/record

  22. Upon Completion of Training • Designated MWA BSP follows up on results • Completes the Skilled Trades Training Fund Verification Form: (Next Slide) • A six month follow up is required using the same form • The Verification Form is emailed to: skilled@michigan.gov

  23. Skilled Trades Training Fund Verification Form and Six Month Follow-up Form

  24. Training Payment Process Funding awarded to the MWA • MWA will pay the training provider and/or employer • Consistent with approved documentation of the eligible costs • Up to five percent of an award may be used by the MWA for administrative costs • Project lead activities • Conducting the fact finding, application, and implementation process • Identifying all available funding sources • Tracking and reporting of project outcomes and follow-up activities

  25. Classroom Training Payment • At training completion MWA submits the STTF verification form • WDA reviews verification form for payment approval • Funding awarded through Purchase Order • MWA pays training provider for costs consistent with the approved application

  26. OJT Payment • At completion of six month retention period MWA submits the verification and follow-up form • WDA reviews form for payment approval • Funding awarded through Purchase Order • MWA reimburses the employer for costs consistent with the approved application • Actual reimbursement based on retention table below • OJT reimbursement is a single payment at retention

  27. Monitoring • Classroom training • Class roster • Sign-in sheets • OJT • Payroll register closest to the six month pay period • Redact all other employees information • Only need to record actual trainee information • Records should be retained for three years

  28. FAQ’s and Questions

  29. Contact Information Patty Vanaman vanamanp@michigan.gov

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