Authority and Study Objectives

Adopted by the 1997 Session of the General Assembly, House Joint Resolution No. 622 established an 18-member joint subcommittee to study noncredit education for workforce training in Virginia. Noting that effective workforce training is "critical to the well-being of the economy of the Commonwealth of Virginia," the resolution stated that the "demand on community colleges by business and industry for continuous education, training, and retraining to provide a highly skilled workforce is steadily increasing." The resolution contended that the Commonwealth's lack of support for noncredit workforce training may have enabled competitor states to surpass Virginia in workforce development tied to the needs of business and industry. Finally, the resolution called for an examination of "the needs of business and industry, the lack of funding for noncredit training and retraining courses requested by business and industry, and the absence of a public policy to provide sound and continuous training opportunities for businesses in the Commonwealth."

The joint subcommittee was specifically charged to:

(i) "identify the courses and programs of study in highest demand by business and industry in the Commonwealth;
(ii) develop a process for assessing the future demand and appropriate public policy for noncredit education and workforce training programs;
(iii) recommend the appropriate share of the costs of such programs to be borne by the Commonwealth; and
(iv) recommend initiatives that will sustain a highly skilled labor force to meet the needs of existing business and industry and facilitate the recruitment of new businesses to the Commonwealth."

The joint subcommittee was to confer with representatives of business and industry, including, but not limited to, the Virginia State Chamber of Commerce; the Virginia Economic Development Partnership; local government, business, and industry; and persons with expertise in regional economic development. The joint subcommittee was directed to submit its findings and recommendations to the Governor and the 1998 Session of the General Assembly.

Preparing a Skilled Workforce

Experts contend that traditional development strategies emphasizing business recruitment are no longer sufficient to compete in this new economy; states should instead address not only quality physical infrastructure and technology transfer, but also the preparation of a highly skilled work force--one that is capable of assuming greater responsibility for a wide variety of tasks and possesses the flexibility and skills required to make decisions and to adapt to changing tasks. Because individuals currently in the workforce must keep apace with ongoing changes in technology and business, continuing education and workforce training must be available to provide opportunities to acquire or upgrade job skills.

The Role of the Community College in Workforce Training

Community colleges have attempted to bridge the gap between existing and required workplace skills, emerging as the primary provider of workforce training, aside from employers, by offering programs on a contractual basis for public and private employers. Many corporations find that community colleges offer high-quality training at costs 10 to 20 percent less than those of professional trainers. As an added incentive, community colleges in some states provide "guarantees" that allow a graduate of technical programs to take courses free of charge until the employer is satisfied with the particular employee's skills. While the employer investment nationally in worker training remains at about $30 billion annually, some states are moving to invest public funds in training efforts.

Education and Workforce Training in the Commonwealth

While committed to pursuing improvements in the quality of public education and in the skills of future workers, government leaders in the Commonwealth are keenly aware of the critical importance of providing appropriate training and retraining for the current workforce and have devoted many legislative and executive efforts to this issue in recent years. Among those entities exploring this issue in recent years are the Governor's Advisory Committee on Workforce Virginia 2000: A Partnership for Excellence, the Workforce Leadership Council, the Commission on the University of the 21st Century, the Virginia Community College System, and the Secretaries of Education and Commerce and Trade. The year 1993 witnessed the establishment of an array of intertwining education and workforce training initiatives, such as the Virginia Business-Education Partnership Program (VBEPP), the Advisory Council on the Business-Education Partnership Program, and the Workforce 2000 Advocacy Council.

Workforce training efforts in Virginia are provided through a plethora of entities, such as the Virginia Economic Development Partnership: the Department of Business Assistance, established in 1996 and supplanting the Department of Economic Development; the Small Business Advisory Board; the Departments of Minority Business Enterprise, Labor and Industry, and Social Services (through its Virginia Independence Program and Virginia Initiative for Employment not Welfare); the Governor's Employment and Training Department (which participates in programs offered through the federal Job Training Partnership Act); and the Virginia Employment Commission (through its Virginia State Job Service division).

It is the Virginia Community College System (VCCS), however, that may be seen as a "broker' of workforce development providing a full range of services, technological expertise, and resources to local businesses. Within its multi-faceted mission is its commitment to provide not only two-year academic programs and occupational training but also contractual training for business and industry and continuing and developmental education. The institutions may coordinate with businesses to improve the skills of current workers or offer training for the under- or unemployed. Instruction may be creditor noncredit-bearing. The VCCS served over 90,000 individuals in noncredit workforce training efforts in 1997.

While state general fund moneys support credit-bearing courses at Virginia community colleges, noncredit instruction--including workforce training for business and industry--receives no direct state support, a practice in effect since the System's creation over 30 years ago. Individuals enrolled in credit-bearing special training courses pay regular community college tuition; the institution also receives full-time-equivalent credit for these students. In the case of noncredit training, it is the client who will pay full tuition as well as fees for overhead costs.

The VCCS identified phasing in state general fund support for noncredit courses as a priority in 1997. The Commonwealth currently provides approximately $10 million annually to the Department of Business Assistance for employee training for new or expanding businesses; the Department, in turn, uses these funds to contract with community colleges and others to provide the necessary instruction. Contending that Virginia is at a competitive disadvantage in funding workforce development for existing businesses, and noting that North Carolina provides support for noncredit instruction at reduced rates, VCCS and the State Council of Higher Education recommended that the Commonwealth appropriate $500,000 to the Virginia Economic Development Partnership for pilot initiatives of state funding for workforce training provided pursuant to industry contracts. The proposal was not enacted by the 1997 Session of the General Assembly; instead, this legislative study committee was created to examine the issue in a more comprehensive way.

Conclusions and Recommendations

Recognizing that affordable noncredit instruction in our community colleges will not only aid in the recruitment of new business as well as in the retention and growth of existing industry but also contribute to the ongoing development of the educated, flexible workforce so essential to the economic prosperity of the Commonwealth, the joint subcommittee makes the following recommendations:

Recommendation 1: That the definition of "comprehensive community college" in the Code of Virginia be amended 10 include the provision of noncredit training and retraining courses and programs of varying lengths to meet the needs of business and industry and that the Code of Virginia designate the VCCS as the state agency with primary responsibility for workforce training at or below the associate degree level.

Recommendation 2: That the Commonwealth establish a funding mechanism for certified training programs offered by community colleges at a ratio of 70 percent general funds and 30 percent nongeneral funds, and that the State Council of Higher Education develop guidelines to recognize and provide general fund support for noncredit FTEs in facility utilization and space justification, equipment, and position allocation measures in recognition of the intrinsic value of non-credit instruction and its role in workforce training.

Recommendation 3: That state funding be provided for workforce development staff positions at each community college campus, based upon enrollment as well as business and industry needs.

Recommendation 4: That four High Skills Workforce Development Centers, located in Northern Virginia, the Roanoke Valley, the Peninsula, and the Danville area, be established in the 1998-2000 biennium to (i) coordinate specific high-skills training needs of particular regions and industries; (ii) provide skills assessments and job counseling for workers seeking retraining; (iii) identify regional high-skills training needs; (iv) develop industry skills standards and the related curricula to provide such skills; and (v) certify courses as well as students meeting such skills standards; that these Centers be supported by public and private funds, with state funding not to exceed 75 percent and local public and private contributions providing a minimum of 25 percent; that the Commonwealth provide funding for the establishment or expansion of Institutes of Excellence, initiatives comprised of industry-led consortia to train and retrain adequate numbers of workers for high-wage, high-demand occupations. such as the semiconductor industry, information technologies, and high performance manufacturing; and that these Institutes may be housed at and be part of the Workforce Development Centers.

Recommendation 5: That each High Skills Workforce Development Center be guided by a local Workforce Training Council, comprised of business and industry representatives to (i) coordinate the workforce development needs of the region between business and industry and the local education and training providers; (ii) advise the statewide Workforce Training Council; (iii) coordinate the area's workforce training efforts by identifying and measuring available and potential segments of the workforce for recruiting workers into high-demand areas with worker shortages, developing a marketing strategy targeted toward motivating potential workers to obtain the necessary skill levels to move into the new workforce, and providing ready-to-go education and training programs to provide the appropriate skill levels; that each council shall include at least one community college president, a representative of local government, a superintendent of schools, a local chamber of commerce executive director, and a proprietary and/or private college or school representative; that two-thirds of the members shall be executives in the business and industry in the region; that the local community college provide staffing to the councils; and that partnerships already established through the Regional Competitiveness Act may serve as local workforce training councils.

Recommendation 6: That a Statewide Workforce Training Council, comprised of business and industry representatives from all regions of the Commonwealth, be established to meet workforce development needs; that this Council be comprised of the Director of the Department of Business Assistance Services, the Chancellor of the Virginia Community College System, the Director of the State Council of Higher Education, the President of the Center for Innovative Technology, the Executive Director of the Virginia Economic Development Partnership, the Director of the Governor's Employment and Training Department, the President of the Virginia Chamber of Commerce, and 18 members as follows: a representative of a statewide manufacturing organization, a representative of a labor organization, a representative of the Virginia Employment Commission, and a representative of proprietary schools, to be appointed by the Governor, and 14 chief executive officers from businesses and industries across the Commonwealth, one of whom shall be appointed by the Governor, seven of whom shall he appointed by the Speaker of the House of Delegates, and six of whom shall be appointed by the Senate Committee on Privileges and Elections; that the appointed members shall serve four-year terms; that the chairman and vice chairman be elected from the business and industry members of the Council; that the Council (i) identify current and emerging workforce needs of the business community, (ii) assess potential markets for increasing the number of workers available to business and industry, (iii) forecast and identify training requirements for the new workforce, (iv) create strategies that will match trained workers with available jobs, such as development of a statewide workport concept, and (v) certify courses and programs of training as appropriate and responding to the needs of business and industry; and that staffing for the Council be provided by the Virginia Community College System.

Recommendation 7: That state funding for the Workforce Services Program within the Department of Business Assistance be increased to ensure that additional new and expanding businesses have access to their services.

Recommendation 8: That, to encourage institutions to develop non-credit courses and respond quickly to training needs of local industries, additional flexibility be provided regarding the ability to collect and expend the non-general fund revenues associated with such courses, carry funds across fiscal years, and hire necessary faculty and support staff.