Work Force Training =

Economic Development Long Term Work Force Training =Capital IdeaSkill QUESTProject QUEST1 Example 1: Travis County/Austin Funds long and short term job training now out of economic development funds, but really treated as non-dedicated general revenue. Both county and city funding began as dedicated from a 10-year tax abatement agreement.One long term work force development program, Capital IDEA, has received over $700,000.00 funding in a 2 year period.2Example 2: Bexar/San AntonioHave funded long term training for over 20 years, usually between 2 and 3 million dollars. The original $2 million was a mix of CDBG and general fund. Over the years, the funding has predominantly come out of economic development funds . This year, 1.3 million dollars to Project QUEST from the city of San Antonio is under the Economic Development Department. $85,000 comes from Bexar County in 2013-2014 budget year.3 Why would they do that?

4 Today, Economic Development Requires a Skilled Work Force.

5Relocating Companies show preference for locations offering a skilled local work force

6 Health Care is one of the fastest expanding service industries

7 Most health care and technical jobs require long term training

8Why would Austin and San Antonio continue to fund these programs?SO,

9What kind of return do these counties and municipalities get for the dollars invested?

10

11

12

13Evaluation Approach Considered% covered by Texas Unemployment InsuranceAverage quarterly earnings% eligible for unemployment insurance benefits% receiving unemployment benefits2, 6, and 10 quarters after leaving program for all programs14 and 18 quarters for those programs having dataUsing Texas UI wage records and claims files

14Impacts Analysis of Short Term ProgramsOverall mixed results

1 program had strong positive results on employment, earnings, and UI eligibility and claimsthe only short term program to have positive association with earnings

2 short term programs significantly associated with lower earnings

15

16Impact Analysis of Long Term TrainingCapital Idea was only Long Term Program supportedPositive, statistically significant impact on earningsStrongly associated with increased employmentStrongly associated with eligibility for UI benefits

17 Study Conclusion:Longer term investments in skills-training yield large, lasting returns in the labor market even seven years after services have ended.18Skill QUEST, Inc. is the Dallas-Collin program equivalent to Capital IDEA and Project QUEST..

19

20Capital Idea, Project QUEST, Skill QUEST DescriptionNon-profit workforce intermediary offering:Occupational Skills TrainingExtensive Support ServicesLong TermHigh Demand, High Skill JobsStarting Salary at $16+ per Hour-(now $18)Fully in Nursing and Allied Health CareersTraining Provided Through Community Colleges

21Application Process for ProgramsExtensive Orientation and Enrollment Process Academic, Financial, Career AssessmentsTo Identify Candidates HavingMath and Language Skills for SuccessAbility to Withstand Financial Pressures during TrainingThe Drive and Determination to Succeed

22Wrap-around Services To Ensure SuccessWeekly Counseling/Instruction/Peer Support Sessions(Vision, Initiative, Perseverance) VIP Sessions on Soft Skills and Life SkillsChildcare Assistance (3 children = $1,200+ a month)Transportation AssistanceOther Emergency AssistanceUrged to Give Back to Community

23

Hello. I am Miranda Bluitt. I am a graduate of the QUEST program and am working at Dallas Regional Medical Center in the Emergency Room as a Registered Nurse. At 17, I graduated from South Oak Cliff High School in Dallas and entered the military as a response to 9-11. I served in both Iraq and Kuwait.

When I returned to the United States, I met a civilian who became my husband. At his insistence, I left a promising career in the military and I moved back to Dallas where he lived. We had two children, a daughter Daizjia, who is now 6 and a son, Elijah, who is now one. I began to think about returning to school, and, at the same time, my husband began to think that he no longer wanted to be married. He left us because he felt he wasnt ready for marriage, so at that time I filed for divorce and legal separation which left me with two children and little or no money. How could I go back to school? I heard about QUEST, applied and was accepted. That meant that my school, books, and transportation would be paid for. Because my grandmother was able to care for my children, I didnt use childcare which is also offered. I was able to concentrate on becoming an RN.

I did my last rotation at Dallas Regional Medical Center ER where my coworkers and supervisors recognized my potential. Because they thought that I would be an asset to their program, they hired me. Without the Quest program none of this would have happened.24Ray Marshall Research Studies Show that Participation in Capital IDEAAssociated with 10.9%age point increase in average earnings10.8% age point increase in monetary eligibility for UI$1223 increase in average quarterly earnings-over comparison group

2517 graduates who have already entered the work force were earning on average less than $8,000 a year at entry into the Skill QUEST program and are all now earning on average $43,356.87. Most over $45,000, several $50,000-$60,000. Skill QUEST Dallas Example26

27Factors Included in ROI EvaluationOpportunity CostIncremental Impacts (estimated v Comparison Group)Fringe BenefitsEmployer Productivity and Reduced Vacancy DaysTaxesWelfare and Food Stamps28

29

30

31Skill QUEST, Inc. is the Dallas-Collin program equivalent to Capital Idea and is now preparing to expand from 130 to 300 participants.

32ParticipantsTax PayersSocietyThe same Return on Investment for Economic Development? Can We Afford to Not Offer Dallas

33