Full Council Meeting Minutes-April 23, 2003

Guests:
Erik Aamoth, Marty Adams, Liz Biel, Jerry Briggs, Jane Delage, Jean Dunn, Mark Enger, Howard Glad, Lee Helgen, Mark Jacobs, Elizabeth Janson, Randy Johnson, Brad Lehto, Mark McAfee, Bruce Nauth, Greg O’Connor, Dave Senf, Robert Stapleton, Daniel Swalm, Carrie Thomas, Dennis Yecke, Jim Zentner

Staff:
Mary Rothchild, Kathy Sweeney, Luke Weisberg, Koryn Zewers

Roger opened the meeting and welcomed everyone.

1) Members reviewed the meeting summary from 1/17/03. The summary was approved by all members present.

2) Roger Hale reviewed the Chair’s Report distributed prior to the meeting. He highlighted the Preeminence Minnesota 2003 Portfolio Report and discussed the three workforce development challenges the state must face: meeting the need for more workers with more skills in Minnesota’s economy, while still addressing the short-term labor surplus; helping Minnesotans advance in their careers and earn more; and, continuing to support a “system” that efficiently and effectively helps both employers and jobseekers. He said that these themes have been highlighted in our written products and that we continue to refine them as members of the new Administration become familiar with the GWDC’s work. Roger noted that the balance of the meeting was organized around the Preeminence challenges so we can begin to see how we are, in fact, addressing the challenges we have described.

3) A Workforce with the Skills to Succeed

A. Sandra Peterson gave the Emerging Worker Committee Report. She said the committee is currently developing their workplan and plans to present a draft workplan at the July 18^th GWDC meeting. The committee will meet with the Youth Council Chairs the afternoon of April 23^rd to discuss the current barriers for providing services to youth, how to better integrate the Youth Councils with other workforce development efforts, and to discuss what the Youth Councils need to be more successful. Sandra said the committee is concentrating on the role of career and technical education in the state and the effect career and technical education has on sustaining communities.

B. LaDonna Boyd presented the Sustaining and Enhancing the Workforce Committee’s (SEWF) work to develop a briefing paper to describe workforce issues in the health care industry. LaDonna credited Mary Rothchild for creating the briefing paper, with input from the SEWF committee. Mary Rothchild said the Heath Education – Industry Partnership and many K-12 partnerships have contributed to this work as well as individuals from other organizations. The briefing paper includes data to quantify our health care workforce shortages. Mary thanked the University of Minnesota Health Careers Institute for their efforts around this project. Mary stated that the number of vacancies has decreased within the health care sector with the current recession. However, there is still a skills gap in this area. Advancing nursing programs will be the Minnesota State College and Universities System’s (MnSCU) primary legislative activity this spring because many students are waiting to be a part of heath care programs. However, there are not enough teachers to meet the economic need. Also, the need for health care workers will increase due to the aging of the baby boomer population. Therefore, the problem will need long-term solutions. LaDonna and Mary opened discussion on the issue.

Norb Conzemius said management poses a larger problem within the health care industry than the actual shortage in the number of nurses themselves. He said there are too many part-time and not enough full-time nurses to fill the need. Mary Rothchild said workers within the health care industry tend to enter their field later in life and contract issues affect full-time versus part-time employment. The flexibility of nursing attracts people to enter the field and even though many nurses are considered part-time, they still work full-time hours. Also, there is a high turnover rate within the health care industry, and the more education a person has within the health care field the more likely that person is to remain within the field. Wayne DeBruin noted that his company, Crenlo, Inc. laid-off thirty-five employees, and two of those employees who took voluntary lay-off were going to pursue careers in the heath care industry. LaDonna Boyd discussed the last Health Care Booster Session hosted by the Governor’s Workforce Development Council, MN Job Skills Partnership Board, and Health Care Education-Industry Partnership, which brought together people who are working to address current health care needs.

Roger Hale said his understanding was that students are waiting to get into health care training programs, and MnSCU currently has a six million dollar request into the Legislature to help fund health care training. Michael Murphy said the request is still being pursued. However, MnSCU is not sure how much funding they will receive for this effort. Mary Rothchild stated that money is needed from state and federal funds to help support training. Roger said the labor shortage is nationwide and asked if Minnesota would have a better chance pursuing money from the federal government in order to meet this challenge. Michael Murphy said there is support from Senator Norm Coleman’s office. However, there is a long list of requests for this funding, and it is hard for taxpayers to understand why MnSCU cannot just accept the students who wish to enroll in health care related classes and programs. Jim Johnson said the lack of clinical sites is the biggest issue for the MnSCU campuses. LaDonna Boyd stated the GWDC needs to continue to build awareness around this topic and needs to heighten its activity. Sandra Peterson suggested the GWDC or another entity should forward copies of the reports on the health care shortages to high school counselors. Willy Negaard asked which Legislative members sit on the House and Senate committees that deal with funding for the health care initiatives, and Harry Mares suggested GWDC members should contact members within each of their districts in order to build support within the state Legislature.

C. Mark Enger, President, Fairview Southdale Hospital and Chair, Workforce Development Task Force, Minnesota Hospital Association discussed with the GWDC the future challenges and opportunities surrounding the health care industry. Health care costs are a national issue and the health care industry has an aging workforce. Mark commented on the career opportunities for youth within the health care field. However, there is more glamour and work-life appeal in other science fields. In 2020 there will be more health care workers eligible for retirement than the number of people coming into the system, and there will be a critical shortage of workers before 2020. By 2007 there will be a shortage of 6, 000 Registered Nurses alone, and post-secondary education is needed in order to perform in the health care workforce. Mark suggested that the workforce development system must focus on access to the supply of individuals who could enter the workforce. For example, the Hospital Assocation’s Workforce Development Task Force has created a communications campaign for the K-12 system and has created a statewide electronic clearinghouse to share opportunities within the health care industry. Mark stressed that collaboration on workforce shortages is a key to economic success and expansion of the base MnSCU programs will play an important role. Liz Biel added that the hospital is providing adjunct faculty for MnSCU campuses. This example provides a model for MnSCU to reach out to employers more to help support faculty within the educational system. Also, Mark Enger added that they are working with nursing leaders in order to improve working conditions for nurses, which will help attract more people to the field. Mark encouraged the GWDC to create awareness, look at long-term investments, and push for new and innovative ways to encourage youth to enter the heath care field. LaDonna thanked Mark for bringing his perspectives to the Council’s discussion.

4) A Larger Workforce

A. Jan Wiessner gave the Self-Reliance Committee report and said the committee has met three times recently to focus on the challenges new Americans face in Minnesota. Jan discussed the complications undocumented workers face. She also referenced a paper Rachel Hillman of the Department of Economic Security Research Office composed which highlights the issues. Jan also talked about the presentations at the GWDC 2003 Spring Leadership Institute that will focus on new Americans in order to raise awareness within the workforce development system about these issues. Willy Negaard added he has been trying to work with Minnesota dairy and pork producers, however, communication on this issue has been difficult. Willy said the effort must be business-driven because businesses are afraid the government will take over. Willy also referenced a report written by Ramon Leon (and updated by Rachel Hillman) that will be distributed at the Spring Leadership Institute highlighting the impact of latino workers in our economy. Bruce Corrie also mentioned a report written by James Kielkopf on this topic. Bruce said Ramon Leon’s report provides personal experiences, and James Kiekopf’s report provides a broader perspective. Bruce suggested the GWDC should focus on one main workforce development issue around new Americans such as the issues undocumented workers face. For example, Minnesota is not a hospitable environment for new Americans due to current state and federal policies and the state does not recognize them as people who contribute to society.

Roger Hale said he believes the GWDC can approach these issues in three ways: create greater awareness of the issues, connect with employers who employ undocumented workers, and be part of a national voice on these issues. Bruce Corrie stated the increased fear undocumented workers have in Minnesota may lead to an increase in companies exploiting those workers. Housing, health care, and other issues must be addressed as well. Leah Schwachtgen added that undocumented workers also have an impact on the state’s educational system, and school districts are wondering how to address issues around undocumented workers as well. Jan Wiessner stated education is needed for children and adults, and English as a Second Language (ESL) courses are needed. Jan said she hopes the Self-Reliance Committee will come up with a few recommendations regarding these issues. Sandra Peterson stated Community Education programs offering ESL and Early Childhood Development Courses are filled with the immigrant population. However, with the proposed funding cuts, programs will have to charge additional fees for these programs.

Roger Hale commented that the business community can either benefit or suffer from changes in immigration policy, so he stressed the importance of making them aware of the issues and trade-offs that go with them. Rod Haworth said that he is uncomfortable with Minnesota building its economy on an illegal workforce. Undocumented workers live with substandard wages and working conditions, and they are an invisible population when it comes to health care, education, and other needs. Morally, exploiting these people is not correct, and businesses should not be built on this. Wayne DeBruin commented on the bureaucracy of the INS and the ways in which it adds work for employers. There was additional discussion on the issues of undocumented workers and the dangers of Minnesota supporting/relying on them as an important source of labor. Sandra Peterson commented that Jaye Rykunyk would be a good source for information surrounding issues with the INS. Roger suggested the committee use the Spring Leadership Institute to provide direction for their work and to focus on projected outcomes.

B. Kathy Sweeney provided an update on the Families Forward event held at the Minnesota International Institute and said it provided an opportunity to bring Self-Reliance Committee members into the Families Forward discussions. The event was to raise awareness around issues facing new Americans. Willy Negaard added that another focus of the event was training new Americans in the health care field and that it was very valuable for both Families Forward participants and Self-Reliance committee members.

5) Strengthening the System

A. Harry Mares provide an update on MDES/DTED merger and said they are reviewing a number of studies that were done in years past about merging the two departments. They will integrate business and community development efforts with a strong focus on the customer. Minnesota must draw good businesses to the area because good businesses will draw highly skilled workers and this will help Minnesota function better in a global economy. Matt Kramer added that the merger will occur in two phases. The first phase will include the practical side of the merger, including infrastructure, human resources, fiscal, etc. By July 1, 2003 very little will have changed. After July 1, the second phase will begin and will entail merging services in the field and streamlining the current workforce and economic development systems. A new name has not been chosen for the agency at this time.

Roger Hale added that the two agencies are like two different cultures coming together and questioned how these two cultures will be merged. Commissioner Kramer noted that, in his experience, no merger is successful on day one. Sound mergers begin with strong leadership and the agencies are beginning to build a unified culture through leadership teams. Many people are excited but also nervous. Roger added that mergers such as the one that formed the Minnesota State Colleges and Universities System and the merger of General Mills and Pillsbury also took time. David Nasby added that it takes a great deal of hard work for two cultures to grow together. Michael Murphy said that an overarching vision of the merged entities must be there. Harry Mares said he worked with the MnSCU merger and a key to success is to treat people with respect and understand where they are coming from. Leadership has to sell the idea that the combined agency will be better. Matt Kramer added the agencies are in the middle of developing the model. However, they do not know what the actual relationship will look like yet.

B. Koryn Zewers provided an update on the planning progress for the 2003 Spring Leadership Institute. The conference will focus on the three challenges outlined in the Preeminence Minnesota 2003 Portfolio Report including the need for more workers with more skills, career and income progression for Minnesotans, and strengthening the workforce development system. Curtis Austin of Workforce Florida, Inc., Keith Bird of the Kentucky Community and Technical College System, and Nancy Mills of AFL-CIO, Working for America Institute will be the keynote speakers at the event.

C. Wayne DeBruin provided an update on the Creating System Excellence Committee’s work to advance the WorkForce Center Strategic Plan recommendations. Wayne stated the committee will have quarterly meetings in order to measure progress on the recommendations that are largely being implemented by the state agency. He added that the recommendation regarding succession planning has been controversial, and the committee will work with key stakeholders in order to further the recommendations. Wayne also said the beta-testing of the credentialing process is moving forward, and the committee will have more to share at the July GWDC meeting.

D. Roger Hale began the Executive Committee report by asking Luke Weisberg to discuss a possible strategy document for the GWDC. Luke said that GWDC leaders and staff have begun to discuss with Commissioner Kramer and Erik Aamoth a possible strategy document that would take the three challenges and solutions outlined in the Preeminence Minnesota 2003 Portfolio Report and turn it back to the state agencies and local leadership to gather information on programmatic activity at the state and local level that “add up” to meeting the challenges. Luke said the document could be finished by this fall. He noted that the Executive Committee is still reviewing the actual Preeminence Minnesota language (challenges and solutions) and may still make small changes to them based on feedback from the Governor and other stakeholders. Michael Murphy questioned if this would provide for a strategic shift for the GWDC. Roger acknowledged that this is a possibility.

Roger also recognized Bryce Miller and Deb Serum of the Department of Economic Security Policy, Planning, and Measures Office who did much of the work on the Minnesota Inventory of Publicly-Funded Workforce Development Programs.

Roger Hale then moved to discussion of the Workforce Investment Act (WIA) “Governor’s 15% set-aside” funds. Luke noted that Erik Aamoth has been leading the process of reviewing historical and proposed fund distribution for the Departments of Economic Security (DES) and Trade and Economic Development (DTED). Erik Aamoth said he and Dennis Yecke have begun to review the history of how the money has been spent and noted that the 2003 budget lacks the carry-over funds the state has benefited from in previous years. Currently DES and DTED are determining how allocations have been made, where it is currently being spent, and what the state’s priorities are for this money. Erik encouraged the GWDC to provide input on how the funds should be spent because they do not necessarily want to spend the money in the same way as in the past. Roger acknowledged the increase in communication and collaboration between the two agencies and commended them for taking this approach. Luke added that the Executive Committee has been tracking this closely and will report out at the July GWDC meeting on the status of the “Governor’s 15% set-aside” budget. Roger encouraged Council members and other stakeholders to channel their feedback on workforce development system priorities through Executive Committee members.

E. Kathy Sweeney opened the discussion on cross-appointments with the State Rehabilitation Council. Rod Haworth, Chair, State Rehabilitation Council for the Blind (SRCB), commented on his experience as a cross-appointee between the GWDC and SRCB. He said the cross-appointment allowed him to learn more about the issues at hand. Rod stressed the importance of the cross-appointment position and the need for on-going interaction among the councils that deal with workforce development. Rod volunteered to apply to be a part of the State Rehabilitation Council, and Willy Negaard volunteered as well.

6) Update on federal and state legislative action

A. Kathy Sweeney discussed the House of Representatives Bill 1261 and stated John Kline and Betty McCollum have met with agency staff to inform them of the agencies’ position on the bill. Erik Aamoth added that Representative Kline is just learning about the Workforce Investment Act because he is new to the process and the House is moving the bill very quickly. Kathy Sweeney stated that Mary Ellen Novotny is the point person for developing Minnesota’s perspective on WIA reauthorization.

B. Luke Weisberg provided a state-level legislative update and handed out a narrative and worksheet outlining several key issues moving through the state Legislature that impact workforce development. He encouraged members to review the document and contact legislators, as appropriate, on issues of concern. Luke noted that Representative Gunther’s committee is recommending a reduction in the number of Workforce Service Areas in the state and that his committee is asking the GWDC to study this and report back to the House and Senate committees by next January. Finally, Luke noted that the written products distributed were presented by GWDC leadership to the House and Senate committees in February.

7) Other Business

Kathy Sweeney provided GWDC members with travel expense and per diem information and forms. Roger Hale reminded members to attend the Spring Leadership Institute on May 20^th and 21^st in Saint Cloud and the next GWDC meeting on July 18^th. The meeting was adjourned at 11:30 am.