John Bouman_Opportunity Dividend Summit

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John Bouman_Opportunity Dividend Summit

  1. 1. Targeting Middle-Skills Jobs: Education, Training and Completion Opportunity Dividend Summit CEOs for Cities and the United Way of Southeastern Michigan March 2, 2010 Sargent Shriver National Center on Poverty law Taking action to end poverty
  2. 2. Shriver Center <ul><li>The Sargent Shriver National Center on Poverty Law is a national law and policy center that aims to build opportunity and social justice through policy development, communications, and diverse advocacy strategies </li></ul><ul><li>Founded in 1967, based in Chicago </li></ul><ul><li>www.povertylaw.org </li></ul><ul><li>Multi-issue expertise across “silos”, including workforce and work supports issues </li></ul>Sargent Shriver National Center on Poverty law Taking action to end poverty
  3. 3. Miss Congeniality (two of them) <ul><li>ARRA TANF Emergency and Contingency Fund – public jobs program – with 80% federal funds and many ways to access the other 20%. Potentially $250M for Michigan. http://www.cbpp.org/cms/index.cfm?fa=view&id=3097 </li></ul><ul><li>Health Care Reform – immense jobs engine as well as entrepreneurship opportunities. And don’t downplay its role in enabling workers to escape poverty. </li></ul>Sargent Shriver National Center on Poverty law Taking action to end poverty
  4. 4. Middle-Skills Jobs <ul><li>More than high school but less than 4-year college degree </li></ul><ul><li>Middle class pay and career paths </li></ul><ul><li>Many different fields: truck drivers, health technicians, white collar, green jobs, manufacturing, trades </li></ul><ul><li>Education and training: Community colleges, apprenticeship programs, non-profit training providers, private career schools </li></ul><ul><li>Aimed at kids AND incumbent workers </li></ul>Sargent Shriver National Center on Poverty law Taking action to end poverty
  5. 5. Michigan and Middle Skills Jobs <ul><li>Middle-skills = 51% of the workforce </li></ul><ul><li>Close to half of all job openings to 2016 </li></ul><ul><li>Sales and related 183,940 </li></ul><ul><li>Office and admin. 192,820 </li></ul><ul><li>Construction 44,680 </li></ul><ul><li>Installation and Repair 40,690 </li></ul><ul><li>Production 98,800 </li></ul><ul><li>Transportation and hauling 85,650 </li></ul><ul><li>Total 646,580 </li></ul>Sargent Shriver National Center on Poverty law Taking action to end poverty
  6. 6. National Attention <ul><li>National Skills Coalition (formerly Workforce Alliance), www.nationalskillscoalition.org </li></ul><ul><li>Skills2Compete Campaign launched in 2007 with “America’s Forgotten Middle-Skill Jobs”, www.nationalskillscoalition.org </li></ul>Sargent Shriver National Center on Poverty law Taking action to end poverty
  7. 7. Key Michigan Report <ul><li>Skills2Compete-Michigan Campaign, www.skills2compete.org/Michigan </li></ul><ul><li>“ Michigan’s Forgotten Middle Skill Jobs: Meeting the Demands of a 21 st Century Economy” (October 2009), http://www.nationalskillscoalition.org/assets/reports-/skills2compete_forgottenjobs_mi_2009-10.pdf </li></ul>Sargent Shriver National Center on Poverty law Taking action to end poverty
  8. 8. Michigan – Strong Start <ul><li>No Worker Left Behind initiative reaching original goal of 100,000 enrolled </li></ul><ul><li>Strong examples of community college, technical school, training provider, apprenticeship and business association projects </li></ul><ul><li>ARRA (stimulus) projects, WIA, etc. </li></ul>Sargent Shriver National Center on Poverty law Taking action to end poverty
  9. 9. Michigan – Policy Agenda <ul><li>Basic skills needed prior to middle skills </li></ul><ul><li>A guarantee: </li></ul><ul><li>Every Michigander should have access to the equivalent of at least two years of education or training past high school—leading to a vocational credential, industry certification, or one’s first two years of college—to be pursued at whatever point and pace makes sense for individual workers and industries. Every person must also have access to the basic skills needed to pursue such education. </li></ul>Sargent Shriver National Center on Poverty law Taking action to end poverty
  10. 10. Short Term Agenda: Program Completion <ul><li>“ [F]rom a salary and opportunity standpoint, earning a one-year credential or associates degree is often better than failing to complete a four-year degree.” </li></ul><ul><li>Graduated Success: Sustainable Economic Opportunity Through One- and Two-Year Credentials, Demos (2010) http://www.demos.org/pubs/graduated_success_Final.pdf </li></ul>Sargent Shriver National Center on Poverty law Taking action to end poverty
  11. 11. Completion, cont. <ul><li>Key component of earnings is completion of whatever course is undertaken </li></ul><ul><li>Course-for-course, the returns on earning power are similar for two-year and four-year degrees: twice as many courses completed= double earning power </li></ul><ul><li>But two-year completers earn more than four-year non-graduaters </li></ul>Sargent Shriver National Center on Poverty law Taking action to end poverty
  12. 12. Completion, cont. <ul><li>Certificate holders earn 27% higher than those with no post-secondary credential ($8,000, Florida study) </li></ul><ul><li>Associate degree holders earn 8% more ($2,300) </li></ul><ul><li>Bachelors degree holders 35% more ($12,000) </li></ul>Sargent Shriver National Center on Poverty law Taking action to end poverty
  13. 13. Many Fail to Complete <ul><li>Nearly four out of 10 (38 percent) of those who enroll in occupational certificate programs fail to earn a credential of any type within six years. </li></ul><ul><li>Nearly six out of 10 (58 percent) of students seeking an associates degree in an occupational field fail to obtain a credential of any type within six years of starting their studies </li></ul>Sargent Shriver National Center on Poverty law Taking action to end poverty
  14. 14. Barriers to Completion <ul><li>Financing education and living expenses (through work) while keeping up with one’s studies </li></ul><ul><li>Job demands </li></ul><ul><li>Family demands </li></ul><ul><li>Lack of necessary academic preparation </li></ul>Sargent Shriver National Center on Poverty law Taking action to end poverty
  15. 15. Barriers -- Financial <ul><li>Tuition, books, educational expenses plus rent, utilities, food, transportation, health care, child care </li></ul><ul><li>In academic year 2007-08, 99 percent of the lowest income students attending a community college for either a certificate or an associates degree had an average of $7,147 in unmet expenses after taking into account all the grants they received. </li></ul>Sargent Shriver National Center on Poverty law Taking action to end poverty
  16. 16. Barriers -- Work <ul><li>Three-fourths of certificate and associate degree students have jobs </li></ul><ul><li>39% of those work full time </li></ul><ul><li>Occupational certificate seekers least likely to enroll full time </li></ul><ul><li>Competing demands decrease likelihood of completion </li></ul>Sargent Shriver National Center on Poverty law Taking action to end poverty
  17. 17. Barriers – unprepared <ul><li>60% of community college students must first take remedial courses </li></ul><ul><li>Few take any upper level math or science courses in high school </li></ul><ul><li>Some need to develop study habits and time management skills </li></ul>Sargent Shriver National Center on Poverty law Taking action to end poverty
  18. 18. Idea: Focus Hard on Post-Secondary Completion <ul><li>Continue to develop the programs – make progress on the policy agenda of addressing basic skills and building the opportunities to take certificate and degree programs </li></ul><ul><li>WIA, community colleges, student aid, ARRA funds of several kinds including green jobs and TANF </li></ul>Sargent Shriver National Center on Poverty law Taking action to end poverty
  19. 19. Focus on Barriers <ul><li>Case management -- individualized </li></ul><ul><li>Cost – student aid, stipends, living expenses, child care, health care, rent and utilities, TANF </li></ul><ul><li>Completion bonuses </li></ul><ul><li>Time demands – work leaves timed to foster completion </li></ul><ul><li>Preparation – tutors, mentors, bridge programs from basic skills to middle skills </li></ul>Sargent Shriver National Center on Poverty law Taking action to end poverty
  20. 20. For more information <ul><li>John Bouman </li></ul><ul><li>President </li></ul><ul><li>Sargent Shriver National Center on Poverty Law </li></ul><ul><li>50 E. Washington, Suite 500 </li></ul><ul><li>Chicago, IL 60602 </li></ul><ul><li>(312) 368-2671 </li></ul><ul><li>[email_address] </li></ul><ul><li>www.povertylaw.org </li></ul>Sargent Shriver National Center on Poverty law Taking action to end poverty

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