Federal legislation has the Michigan Works! association concerned it will tie their hands when it comes to how they allocate their spending.
Following approval of the ‘A Stronger Workforce for America Act’ by the U.S. House Education & Workforce Committee today, Michigan Works! Association CEO Ryan Hundt issued the following statement:
“The Michigan Works! network appreciates the efforts to strengthen and modernize America’s workforce system, but we have concerns regarding provisions within this bill package that could impact the effectiveness and flexibility of our local workforce development efforts in Michigan. The Michigan Works! Association remains committed to advocating for a workforce development system that is flexible, responsive, and attuned to the unique needs of our communities. We hope to continue working with our legislators and stakeholders to address our concerns to ensure our workforce system can effectively serve Michigan’s job seekers and employers.”
Michigan Works! detailed their concerns with the bill:
1. 50% Training Requirement: The mandate for local workforce development boards to allocate 50% of their funding for training presents a significant challenge. This federal requirement could limit our ability to remain responsive to the rapidly changing needs of local employers. Moreover, the lack of a clear definition of what constitutes ‘training’ under this mandate could lead to ambiguity and inconsistency in program implementation. Our priority is to ensure that workforce development strategies are tailored to local economic conditions and employer needs, and this requirement could impede that flexibility.
2. Increased Governor’s Set-aside for “Critical Industries Fund”: The proposal to increase the Governor’s set-aside fund by 10% to establish a “critical industries fund” raises concerns about the potential reduction of resources available to local workforce development systems. While the intent to focus on critical industries is understandable, this shift in funding risks duplicating services that are already being effectively delivered at the local level. It is essential that funding remains adequate to support the unique workforce needs of local job seekers and employers.
3. Redesignation of Local Workforce Development Areas: The proposed redesignation of local workforce development areas is another area of concern. This move could diminish local accountability and stifle innovation, which are cornerstones of a demand-driven workforce system. It is crucial that the voice and needs of the business community remain at the forefront of workforce development strategies. Local expertise and engagement are key to creating effective, employer-responsive programs.
The House committee issued a statement saying the changes are necessary.
“When the Workforce Innovation and Opportunity Act (WIOA) was enacted in 2014, it made crucial improvements to streamline the maze of federal workforce development programs and enhance accountability through a single set of performance metrics. However, almost a decade later, significant challenges persist that impede the workforce system’s ability to provide high-quality services to job seekers and employers.”
Approved on a bipartisan basis in committee, the legislation must still be considered by the full House of Representatives.
