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GWDC Full Council Meeting Minutes
Friday, July 18, 2003
Dakota County WorkForce Center - Room 110 B/C
Council Members Present
Gordon Aanerud
Peggy Ann Anderholm
LaDonna Boyd
Bruce Corrie
Don Gerdesmeier
Rod Haworth
Jim Johnson
Commissioner Matt Kramer
David MacKenzie
John Molinaro
Michael Murphy for Chancellor McCormick
Lynne Osterman
Sandra Peterson
Julie Rosen
Leah Schwachtgen
Guests: Erik Aamoth, Marty Adams, Jamie Anderson, Lynne Batzli, Windy Block, Norm Champ, Linda DeHaven, Jean Dunn, Bonnie Elsey, Connie Giles, Howard Glad, Mike Haney, Lee Helgen, Mark Jacobs, Kristin Keller, Bruce Nauth, Dave Niermann, Greg O’Connor, Jim Smalley, Carrie Thomas, Dennis Yecke, Jim Zenter
Staff: Viola Curtis, Kathy Sweeney, Luke Weisberg, Koryn Zewers
LaDonna Boyd opened the meeting and welcomed everyone to the Dakota County WorkForce Center – Northern Area. She gave a brief summary of services available at the WorkForce Center and invited Council members to take a short tour of the Center. After the tours, Roger Hale reconvened Council members and introduced two new Council members: Representative Lynne Osterman and Senator Julie Rosen.
1. Review and approval of the April 23, 2003 meeting summary. The meeting summary was approved as written.
2. Roger Hale reviewed the Chair’s Report distributed prior to the meeting. Roger elaborated on his meeting with Governor Tim Pawlenty which also included Council Vice-Chair Don Gerdesmeier, DEED Commissioner Matt Kramer, Governor’s Office staff Ward Einess, and Luke Weisberg. Governor Pawlenty clearly sees a skilled workforce as Minnesota’s competitive advantage and sees opportunity to pursue sector-specific efforts, e.g., bioscience and others. The Governor encouraged Roger and Matt Kramer to continue clarifying the role of the GWDC relative to the Department of Employment and Economic Development (DEED) and appreciated the work that the GWDC and DEED would do together to bring greater coordination among business, labor, local elected officials, and the educational community to better serve businesses and Minnesota workers. Governor Pawlenty also commented that business owners are always being seduced by other states to leave Minnesota because of business climate issues. He also asked what role WorkForce Centers play now given Internet/electronic access to job search tools? Roger suggested that focusing on the Preeminence Minnesota framework might help us address the long-term labor force needs business faces.
3. The Executive Committee met several times over the last couple of months. Roger reported that the Committee made some revisions to The Preeminence Minnesota framework and the GWDC workplan in order to reflect thinking of the Pawlenty Administration in the three challenges and solution areas: future labor shortages/skill shortages, career and income progression, and system building. Roger noted that even though the unemployment rate is rather high now and is not improving dramatically, the lack of skilled workers will be the chokepoint in the next couple of years. In addition, the second challenge suggests that the workforce development system must ensure workers have access to job opportunities and educational choices. Roger highlighted a few other elements of the workplan and noted that Joan Volkmuth (not present) asked that MnSCU be included as a key partner in section A.1. of the workplan. Roger asked for discussion and approval of the GWDC workplan. The workplan was approved without further discussion.
Roger then asked for discussion and approval of the GWDC budget. Luke provided a brief summary of the budget, clarifying that the fiscal year 2003 budget is almost complete (for comparison purposes). Luke also highlighted that the GWDC made a smaller request from the WIA 15 percent set-aside funds, so the 2004-05 budget is leaner than in years past. There were questions and discussion about the Spring Leadership Institute.
Commissioner Matt Kramer asked why the Spring Leadership Institute is not in the fiscal year 2004/2005 budget. Commissioner Kramer said attendees suggested the conference was very well done, and they wanted more opportunities for that type of learning. Luke Weisberg said the GWDC is attempting to create a more coherent calendar of statewide events that would bring together the GWDC’s Spring Leadership Institute, the Workforce Minnesota Conference led by the University of Minnesota and Minnesota State Colleges and Universities System and the DTED Development Conference. These three might be blended so there is a cycle with the Workforce Minnesota conference will be held in the fall of 2004, and the Spring Leadership Institute held again in 2005. In addition, smaller events centered around capacity building for Local Workforce Councils could be held.
Michael Murphy added that the annual Economic Development Association of Minnesota (EDAM) Conference focuses on what people need to know in this field, the current case studies, and what Minnesota needs in order to develop (e.g., biosciences initiative). He suggested that the Workforce Minnesota conference has a broader base, and can help develop common ground among different partners, and choose industry-specific initiatives to focus learning. Roger Hale asked if there is a way to engage business leadership more directly in workforce development efforts. Michael Murphy responded conferences should be business and industry specific. If government would like to engage businesses, then the conferences need to be more specific in conveying information about a series of activities and what those activities will lead to for business development. PeggyAnn Anderholm agreed, noting that she often feels like one of very few business people who attend workforce development conferences. There was additional discussion about how the GWDC can work to engage employers in such efforts, with Jim Johnson suggesting we reach out to trade and business associations. Luke also commented that in recent discussions with Erik Aamoth and Bonnie Elsey from DEED, there has been talk of holding more WorkForce Center partner meetings for frontline staff, managers, and leaders of the WorkForce Center System. These partner meetings would focus more on the workings of the WorkForce Center System and allow other statewide events to focus more on strategic direction and policy.
Roger asked for a motion to approve the budget. It was so moved and approved.
Erik Aamoth provided a brief update on the allocation of the Governor’s Workforce Investment Act (WIA) 15 percent discretionary budget. Erik said the MN Job Skills Partnership Board (MJSP) made a portion of those funds available through an RFP process for a wide variety of system activities. Gordon Aanerud questioned why part of these funds would be available through an RFP process, seeming to go “outside” the WorkForce Center system. Erik responded that the MJSP Board felt that would be the best way to stimulate innovative ideas for system-building activities. Dennis Yecke emphasized that the funds were only a portion of the overall 15% budget and the RFP process creates several opportunities for programs to provide services that will help create jobs. In the past, a majority of the funds have gone to state organizations for infrastructure. DEED is trying to have a new focus on stimulating innovation through new activities. Gordon responded that there is such a strong demand for Dislocated Worker Program dollars at the local level, (his area has already run out of those funds) that he questioned using the funds for other purposes. Dennis reiterated that the funds allocated through the RFP are not coming out of the formula funding available to local areas.
Michael asked what came from the GWDC’s recommendations regarding the discretionary funds. Luke Weisberg responded that some of those recommendations are being addressed, in part. However, with the merger and the decrease in funding many of the funds were allocated in the same manner as in the past. Based on what DEED has stated, the GWDC will have more of an opportunity to comment on the allocation of those funds in the future. Roger Hale asked if the MJSP is still discussing the idea of an RFP process, and Erik Aamoth clarified that they have already made a decision to move forward with the RFP.
Sandra Peterson provided an update on the “Developing the Emerging Workforce Committee”. She said the committee has been meeting with a broad base of constituents around the role of career and technical education in Minnesota. In April, the committee met with Youth Council Chairs to discuss what the Youth Councils are currently concentrating on and to determine what their role could be regarding career and technical education. In addition, the committee presented at the 2003 Spring Leadership Institute and received feedback from workforce development professionals at that time. Sandra said the committee will develop their goals at their next meeting and hopes to have a report ready for the full council by January. Two of the areas the committee has focused on thus far have been career exploration and skill attainment for the emerging workforce. Sandra also noted that she was recently on public radio discussing career and technical education in Minnesota’s high schools and added that one of the major issues is lack of communication regarding what tools are available to assist schools in providing career exploration and skill attainment information.
John Molinaro added that the workforce development partnership that he is a part of discussed the lack of funding for career counselors. School counselors have several roles in today’s schools, and they spend the least time focusing on career counseling. In order to provide career exploration in schools, the schools will need more counselors. Someone will have to mandate and fund this in order for students to get this type of assistance. Leah Schwachtgen added that career exploration, not career planning, is what students really need. She said some students know what they want to be when they are in 9th grade. Other students do not know what they want to become when they are seniors in high school. The best thing the state can do for them is to provide them with opportunities to explore careers.
LaDonna Boyd gave an overview of the Sustaining and Enhancing the Workforce Committee’s current initiatives. She said they met last month and continue to focus on the shortage of workers within the healthcare industry. At their last meeting, Kristin Juliar gave a summary of some of the activities that are going on within MnSCU regarding the healthcare industry, and LaDonna provided a handout to GWDC members regarding Kristin’s presentation. LaDonna added the committee would like to expand its focus by reviewing industries such as the biosciences. In addition, a number of the McKnight Families Forward partners are working on sector-specific initiatives, and the committee would like the GWDC to support those grantees in attending a sector-based conference being held in Boston in September. LaDonna also said the committee will continue to work on the toolbox strategy the committee presented to the GWDC last year.
Jim Johnson added that the GWDC should also look at nanotechnology as a possible field to support. Jim said nanotechnology is a clean technology that is based in science, which helps to build machines at the molecular level. The federal government has already agreed to invest 60-70 billion dollars in the development of this field, and he believes Minnesota should take advantage of this new field. Jim added that the technology could be a great opportunity for rural Minnesota because the development of it can happen anywhere. Bruce Corrie added that there are many emerging careers in the technological fields. However, he could not find information regarding what schools are leaders in many of these technological fields. Michael Murphy added that it is important for MnSCU to hear about new sectors that are emerging, so they can prepare and go after funds that would be made available for training in these areas. LaDonna said Jim Johnson will present at their next committee meeting.
Lynne Batzli and Bonnie Elsey gave an update on federal initiatives. They handed out a written narrative and highlighted the issues coming up in discussion of reauthorization of the Workforce Investment Act (WIA). This past Spring, the House of Representatives passed their version of the reauthorization bill. Although there is interest in a bi-partisan bill, several issues remain as stumbling blocks.
The Senate is still working on their bill; these and other issues may be resolved before the Senate passes a bill; or, key issues will need to be resolved in conference committee. DEED has taken the lead in developing a “state” position and is working with the Minnesota Workforce Council Association (MWCA) to articulate points of agreement and disagreement.
Lee Helgen provided an update on the MWCA’s stance on WIA reauthorization, and he shared a draft handout with the GWDC on their positions. Lee said the MWCA supports vision setting from the one-stop operating consortium at the local level and greater delegation of power to the Local Workforce Councils. He also said the MWCA is lobbying for the federal law to include that the state workforce investment boards should have representatives that are nominated by the local workforce investment boards. Roger Hale asked Lee to clarify if the issues he is discussing are at risk in WIA, and Lee responded that they are all up for discussion.
Lee also clarified where the MWCA stands on some of the issues Bonnie Elsey brought up previously. MWCA agrees with DEED regarding block granting of program dollars. However, they disagree on funding splits. MWCA believe the local areas should receive 75 percent of the funding and the state should receive 25 percent because services need to be more locally driven. MWCA would like to see more discussion regarding additional funding for infrastructure and would like to see waivers used more in order to use the federal funds to best meet local needs. Lee also emphasized that regional planning is best identified and facilitated at the local level rather than through a state mandate.
Roger asked Lee if the MWCA is negotiating with DEED or if the MWCA’s position is a part of a larger effort in Washington D.C. Lee said that they are coordinating with the national organizations to which Local Workforce Council members belong (National Association of Workforce Boards, National Association of Counties, etc.). Michael Murphy stated that it will be important for Minnesota to speak with one voice, so it does not appear as though workforce development partners are competing for funds. Roger questioned the feasibility of creating a unified position in Minnesota since the House is finished and the Senate will work on this in late August or September. The next GWDC meeting is not until October, so the GWDC would have a difficult time facilitating a unified position around these issues. After additional discussion, it was agreed that staff would highlight salient issues on which there are key differences of opinion. As appropriate, GWDC staff will alert GWDC members to these issues when they are up for consideration in the Senate so that members can respond. If there are significant differences of opinion within the state, the GWDC will bring issues up for discussion with the Governor directly.
Roger also asked that, in future communication of issues regarding WIA reauthorization, GWDC staff would highlight: a) what’s changing; b) how DEED feels about the change; c) how the MWCA feels about the change; and d) what other opinions within the state and/or from other states might shape the GWDC’s thinking on a particular matter.
Dislocated Worker Program Study Committee Report: Roger reported that he had asked Norb Conzemius to chair the Ad Hoc Committee completing the Dislocated Worker Program study. Roger reported that he had spoken briefly with Representative Gunther yesterday who helped to clarify the legislative intent of this study. Representative Gunther said the Legislature has questions regarding who needs training and who needs placement services. In addition, the Legislature is trying to determine if more flexibility is needed around program funding and what the balance of funding should be between mass-layoffs and small-scale lay-offs. The Legislature recognizes that there is a greater demand for training; however, there is also the concern that some training programs may be duplicative. Roger referred members to the proposed study outline for further detail. The Ad Hoc committee is currently being formed and will have four meetings through the next several months, with a report to the Legislature by January 15, 2004. Roger asked for approval of the study proposal as presented and discussed. The proposal was moved and approved.
Bruce Corrie provided the Self-Reliance Committee update noting that the committee continues to look at what role new immigrants and minorities can play in Minnesota’s workforce. The Committee, with the assistance of Rachel Hillman of DEED, developed a paper that provided a perspective on how new immigrants and minorities affect the economy in Minnesota. The Committee also sponsored a workshop at the 2003 Spring Leadership Institute, which focused on what Iowa is doing to welcome new immigrants to their communities. Bruce said the Self-Reliance Committee will continue to develop their work and will be collaborating and co-staffed by the Department of Education and Department of Human Services.
Commissioner Matt Kramer gave an update on the merger of the Departments of Economic Security and Trade and Economic Development into the Department of Employment and Economic Development. Commissioner Kramer said the official merger is over; however, internally the merger will take some time. The potential to tie workforce and economic development together is incredibly powerful, and the agency will continue to work towards creating the most efficient and effective organization possible.
Rod Haworth offered a brief update on the Rehabilitation Council. Rod discussed how Tom Stinson at the Spring Leadership Institute talked about long-term labor shortages. However, what was painfully absent was the lack of workshops on how people with disabilities could help meet these labor shortage needs. The State Rehabilitation Council and the State Services for the Blind Council have really made some progress in this area, integrating people with disabilities back into the workforce. Rod said he would like to see this on a future agenda.
Dave MacKenzie provided an update on the work of the Creating System Excellence Committee and asked Windy Block and Jim Smalley to offer their thoughts and feedback on the WorkForce Center credentialing process that was developed by the committee over the past year and a half. Windy, the Vice-Chair of the Southwest Minnesota Local Workforce Council, talked about how their region has worked to create an effective Local Workforce Council over the past few years. He said they have been actively listening to the advice from the National Association of Workforce Boards. Windy said their Local Workforce Council took on the challenge of beta-testing the credentialing process because it included regional planning and management; it provided the opportunity to look internally at the WorkForce Center System; and, the Southwest Local Workforce Council could see the applicability in how the process affected its work.
Jim Smalley, a staff person to the Southwest Local Workforce Council, gave an overview of a memo he sent the Creating System Excellence Committee before the meeting. Jim said the WorkForce Center management team in Southwest Minnesota worked on the credentialing process for about six months. However, members of the management team were involved in the development of the process for over a year. When the management team originally began working on credentialing their WorkForce Centers, there was some hesitation on the part of some of the WorkForce Center partners. However, the credentialing process seemed to breakdown some of the barriers among the partners. The credentialing process brought the partners together around a common theme and helped to provide focus for their efforts. The partners did not have any issues with the level one criteria, and the local workforce council is excited to begin reviewing the level two criteria to determine what they want their WorkForce Centers to concentrate on.
David MacKenzie also provided a brief update on the Workforce Service Area Study, which the committee will begin to discuss after this meeting concludes. The committee will review the governance role of the Local Workforce Councils and strategies for improving that role, and they will also review the configuration of the Workforce Service Areas to determine if the boundaries help to promote effective and efficient service delivery. Dave stated the committee will hold open meetings in order to hear from all entities and will try to hear everyone’s input.
Roger Hale concluded the meeting by stating that the next meeting will be held on Friday, October 10th. The location will be determined at a later point.
The meeting was adjourned.
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