Workforce Impact Review Essential to Economic Development Council Work

9/23/2011 4:49:16 PM

Dear Colleagues:

As the Regional Economic Councils proceed with their work, I look forward to the distribution of $1 billion in grants, with some concern that the workforce development needs might get lost in the planning and procurement process. While most of the attention is on the meetings of the Councils and discussions, it will be interesting to see how distribution of these funds takes place. The Councils cannot give away money, but they can recommend strategies for distribution of these funds in order to affect economic development and job growth. For actual distribution of funds, the State’s procurement rules remain in place.

An amount of $200 million will be allocated to four (4) regions based upon their strategic plans. Another $800 million will come directly through previously committed funds from state agencies and public authorities. We need to think beyond the November 15, 2011 deadline for each Council to complete their planning process and make certain that in the end, a trained workforce is ready to carry out the many projects resulting from the Regional Council initiatives.

Incorporation of Workforce Impact Statements

The question is what can any of us do to affect this process and help it succeed? I am offering an idea.

Across the country businesses are encouraged to move into a region which offers tax abatements and improved physical infrastructure. They also need skilled workers. The Metropolitan Transportation Authority’s (MTA’s) experience with purchasing rail cars from Kawasaki, in Yonkers, comes to mind. Approximately 10 years ago, the MTA issued a Request for Proposals (RFP) without requiring a workforce impact statement as part of the bid. After winning that contract from the MTA, Kawasaki decided regional workers did not have the new skills required. Rather than working with regional employers, Workforce Investment Boards (WIBs), state agencies, schools, unions and training providers to develop the appropriate skills, Kawasaki brought workers in from Japan under special visas. These temporary workers came, worked and brought their skills and New York taxpayer funds home with them.

While we can be glad the jobs were in located here, New York State missed an opportunity to strengthen our regional economy and skill base and capacity for future projects. With that example in mind, I am concerned the regions will not utilize available funds to strengthen the local skill base and will miss the opportunity for ongoing economic development. As a remedy, I am proposing language to be added to each region’s strategic plan. We have heard of Environmental Impact Statements (EIS) required before building a project. I propose a Workforce Impact Statement for public grants. If we succeed in introducing this wording, the regions will highlight the economic value of a highly skilled and adaptable workforce and multiply the value of awarded funds.

Workforce Impact Statement for Insertion into Regional Economic Plans

“In order to foster New York State job creation, hire unemployed workers and build a foundation for a stronger regional economy, the (Name of Region) Economic Council recommends that any Requests for Proposals (RFP) or similar procurement instruments for grants of public funds to be allocated through this process require the applicant to submit a Workforce Impact Statement (WIS). This workforce analysis must identify the workforce skills needed to accomplish the purpose of the grant, an applicable skills inventory of workers available within a 50 mile radius of the project and a strategy for hiring or retraining workers to meet the demands of the project. The training strategy will include an inventory of strategic partners within the region and their proposed role in addressing the workforce demands of the applicant.”
There is a consensus in this country demanding that government must help stimulate jobs. This language enables the Regional Councils and then New York State to do just that. It is common practice for applicants for public funds to attach letters of support. This process asks the applicant to take the next step and directly pay attention to jobs.

Please share your views on this proposal back with me and pass this language onto anyone you know who is participating in a Regional Economic Council. The state agencies are beginning to issue RFPs for the $800 million dollars. WDI will continue to monitor this process and assist anyone who wants to discuss the Regional Economic Councils with us.

Best wishes,

Ed Murphy
Executive Director

Ed Murphy

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