Small Business: Workforce Development Consortia Provide Needed	 
Services (30-OCT-01, GAO-02-80).				 
								 
Small businesses often have serious difficulty finding skilled	 
employees, upgrading the skills of their existing employees, and 
identifying strategies to meet future workforce needs. The	 
Workforce Investment Act of 1998 seeks to address these workforce
development issues and to provide a greater employer focus to	 
federal training programs. Although these problems are common,	 
throughout the country small businesses in some areas have joined
with business and trade organizations, community colleges, and	 
other public and private groups to form workforce development	 
networks--often referred to as workforce consortia. This new	 
approach offers small businesses access to various workforce	 
development activities in which they might otherwise be unable to
participate. Limited information exists on the outcome of	 
workforce consortia at the sites GAO reviewed. There were no	 
systematic efforts to evaluate overall consortium effectiveness, 
but there were isolated attempts to monitor participation rates  
and assess the impact of specific activities on job retention and
future earnings.						 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-02-80						        
    ACCNO:   A02375						        
  TITLE:     Small Business: Workforce Development Consortia Provide  
Needed Services 						 
     DATE:   10/30/2001 
  SUBJECT:   Human resources utilization			 
	     Labor force					 
	     Labor supply					 
	     Regional development programs			 
	     Small business					 
	     Employment or training programs			 
	     Strategic planning 				 
	     HHS Temporary Assistance for Needy 		 
	     Families Program					 
								 

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GAO-02-80
     
Report to the Honorable Christopher S. Bond, Ranking Minority Member,
Committee on Small Business and Entrepreneurship, U. S. Senate

United States General Accounting Office

GAO

October 2001 SMALL BUSINESS Workforce Development Consortia Provide Needed
Services

GAO- 02- 80

Page i GAO- 02- 80 Consortia Provide Needed Services Letter 1

Results in Brief 2 Background 4 Community Organizations Form Consortia in
Response to Local

Workforce Needs. 8 Consortia Activities Address Current and Future Workforce
Needs 12 Community Workforce Development Consortia Share Key

Principles and Best Practices 18 Limited Information Available on Program
Outcomes 25 Conclusions 28 Agency Comments 28

Appendix I GAO Contacts and Staff Acknowledgments 30 GAO Contacts 30 Staff
Acknowledgments 30

Tables

Table 1: Community Workforce Development Consortia Overview 10 Table 2:
Community Consortia Targeted Business and Industry

Sectors 18 Table 3: The Workplace Learning Connection Student Participation

- Fiscal Years 1999 and 2000 27

Figure

Figure 1: An Example of a Community Workforce Consortium Consisting of
Individual Member Organizations and an Intermediary Organization 8

Abbreviations CATF Capital Area Training Foundation COWS Center on Wisconsin
Strategy CPCC Central Piedmont Community College STWOA School- to- Work
Opportunities Act of 1994 WIA Workforce Investment Act of 1998 WRTP
Wisconsin Regional Training Partnership Contents

Page 1 GAO- 02- 80 Consortia Provide Needed Services

October 30, 2001 The Honorable Christopher S. Bond Ranking Minority Member
Committee on Small Business

and Entrepreneurship, United States Senate

Dear Senator Bond: Small businesses often experience serious problems
finding skilled employees to fill immediate vacancies in their workforce,
upgrading the skills of their existing employees, and identifying strategies
to meet their future workforce needs. Unlike their larger counterparts,
small businesses typically have limited financial and human resources and
community relations staff to assist them in managing these important tasks.
When small businesses seek connections to potential new entrants into the
workforce- including youth- they face a perplexing array of public and
private employment and training service providers. In addition, the
businesses are often unaware of what assistance is available or who to turn
to for help in meeting their workforce development requirements. In past
work, we have found, for example, that federal and state employment and
training programs are often confusing for employers and participants alike
and that small businesses may face economic and informational barriers to
participation in these programs. 1 The Workforce Investment Act of 1998-
currently being implemented- was passed, in part, to address these workforce
development issues and to provide a greater employer focus to federal
training programs.

While these problems are common across communities, small businesses in some
areas are located where business and trade organizations, community
colleges, and other public and private organizations have partnered to
create workforce development networks- often referred to as workforce
consortia. This emerging industry- based approach offers small businesses
access to a variety of workforce development activities in which they might
otherwise be unable to participate. Small businesses can

1 Multiple Employment Training Programs: Overlapping Programs Indicate Need
for Closer Examination of Structure (GAO- 01- 71, Oct. 13, 2000). This study
identified 40 federally funded employment and training programs, for which a
key program goal is providing assistance to persons trying to find
employment or improve their job skills.

United States General Accounting Office Washington, DC 20548

Page 2 GAO- 02- 80 Consortia Provide Needed Services

use these consortia to leverage larger and broader influence and expertise
to better address their individual employment and training needs as well as
create future career pathways for youth. It was within this context that you
asked us to provide information on how small businesses are working with
these consortia to address their needs for skilled workers. Specifically,
you asked the following questions:

 What factors prompted communities to establish workforce development
consortia and what organizations participate in them?

 What activities do the consortia offer to assist small business?

 What do consortia partners view as the key principles and most effective
practices for implementing and sustaining workforce consortia?

 What is known about the outcomes of workforce consortia? To respond to
these questions, we identified and consulted with nationally recognized
experts in workforce development and officials from community workforce
consortia organizations. We also reviewed literature on community workforce
development efforts. On the basis of recommendations from these sources, we
identified communities with well- regarded community workforce development
efforts and selected four communities that had established consortia of
local organizations to address workforce needs. In making this selection, we
also considered the length of time the consortia had been operating as well
as including a variety of community sizes and economic bases. We conducted
on- site reviews of workforce consortia in Austin, Texas; Cedar Rapids,
Iowa; Charlotte, North Carolina; and Milwaukee, Wisconsin. 2 At each
location, we discussed consortia development, operations, and activities
with officials from key consortia organizations and with local small
business officials.

In each of the four communities we visited, consortia were formed in
response to individual community economic and workforce development needs.
In some locations, these needs were identified and examined through formal
studies on the community?s workforce conditions and future economic
challenges. For example, in Charlotte, North Carolina, business leaders
working with other community organizations sought to

2 We also gathered information on Jobs With a Future, an initiative in
Madison, Wisconsin, that is closely associated with the community workforce
development consortium in Milwaukee. Results in Brief

Page 3 GAO- 02- 80 Consortia Provide Needed Services

identify strategies to continue the business growth of the area while
exploring potential weaknesses in the local economy. In these communities,
local public and private organizations joined together to address existing
and emerging workforce development issues. Consortia varied somewhat in
membership and activities according to their area?s needs and resources but
were characterized by a strong business focus. Consortia were typically lead
by one or two key organizations, such as the chamber of commerce and
community college. Other consortia members often included local school
districts, workforce investment boards, business and trade associations, and
unions. In three of the four locations we visited, officials from consortia
organizations had established intermediary entities to help link all
consortium organizations and to act as a broker or provider of services.

Workforce consortia we reviewed connected small businesses to a coordinated
system of organizations and activities that provided the services and
information they needed to address both current and future workforce needs.
Current needs included identifying and hiring new employees as well as
training existing employees. Consortia activities to address businesses?
needs for new employees included activities like job fairs that brought
businesses together with job seekers and initiatives that linked businesses
with community- based organizations that had pools of potential employees.
Consortia activities to address training needs for existing employees
included, for example, industry- specific training in the use of
manufacturing technology and English as a second language classes for
improving worker/ supervisor communication. Consortia activities that
focused on future workforce needs were designed to create pathways for new
workers- particularly youth- into the job market. These included career
awareness activities for youth, such as job shadowing, and internships as
well as longer- term training, such as apprenticeships, in the skills needed
for a specific trade or technical career.

We found consortia organizations identified four important principles and a
number of associated best practices that, in their view, were critical to
the operation of their local consortium. According to consortia officials,
the key principles were (1) consortia focused primarily on businesses?
workforce needs and were organized around key industry sectors in their
community; (2) consortia organizations provided leadership and developed
ways to sustain on- going, positive working relationships among all
consortium partners; (3) consortia organizations made workforce development
activities accessible to both businesses and prospective workers; and (4)
consortia organizations used incentives to make participation in activities
attractive to small businesses. Consortia officials

Page 4 GAO- 02- 80 Consortia Provide Needed Services

identified a variety of best practices related to the four principles. For
example, to focus on businesses? needs, some consortia had established
industry sector workforce advisory groups, such as the Building Industry
Careers Alliance in Austin, Texas, and implemented industry- specific
employment and training initiatives. To provide leadership and sustain
positive working relationships, consortia organizations held regular
meetings and discussions to update each other on activities, and in some
communities, organizations shared working space. To provide access, several
consortia organizations had outreach staff to facilitate participation in
consortium activities. Finally, to provide incentives to attract business
participation, a state program in Iowa- administered by community colleges-
defrayed hiring and training costs for businesses creating new positions and
supported the development of custom training packages for existing
employees.

Limited information exists on the outcomes of workforce consortia at the
sites we visited. We found no systematic efforts to evaluate overall
consortium effectiveness, but there were isolated attempts to monitor
participation rates and assess the impact of specific activities on job
retention and future earnings. For example, the Wisconsin Regional Training
Partnership (WRTP) in Milwaukee, linked central city residents- many of whom
had less than a high school education- with employers who need workers. The
organization reported placing over 600 employees in manufacturing sector
jobs- most paying over $10. 00 per hour, plus health care, pension, tuition
reimbursement and other benefits. Additionally, the initiative reported that
after 1 year, 48 percent of these new employees remained in their jobs.

During the 1990s, employers- including small businesses- reported increasing
difficulty finding, hiring, training, and retaining employees with the
appropriate sets of skills. 3 This problem is due in part to that decade?s
unprecedented economic growth and the resulting record low unemployment
levels and has been compounded by the widespread and increasing use of
advanced technologies in nearly all sectors of the U. S. economy. The U. S.
Department of Labor reported that employment

3 Workforce Issues: A Top Priority for Chamber Members, Center for Workforce
Preparation, U. S. Chamber of Commerce, Washington, D. C. (1999).

The Impact of Training and Development on Recruitment and Retention, Council
for Adult and Experiential Learning, Chicago, Illinois (1999). Background

Page 5 GAO- 02- 80 Consortia Provide Needed Services

increased by nearly 21 million in the 1990s, 4 with the service sector-
which includes skilled jobs in health and legal services- showing the
greatest growth. Significant growth also occurred in high- skill
occupations, such as some types of manufacturing and automobile repair, that
now use computer technology in their work processes. Additionally, employers
report that many new job market entrants, especially youth, are not equipped
with the basic skills and job experience they need to succeed in the present
environment. Many have deficits in important employment readiness knowledge
and skills such as self- reliance, work ethics, teamwork, and
communications. Labor projects that the number of young adults, ages 16 to
24, will increase to 25.2 million, or 16.3 percent, of the civilian labor
force by 2008.

While all businesses face current and future workforce development
challenges, small businesses confront additional barriers- both economic and
informational- to meeting their workforce needs. Small business employers
typically have fewer economic resources and staff to devote to identifying,
hiring, training, and retaining employees. The employers may be discouraged
from participation in some federal or state workforce development programs
because they do not have the staff capacity to manage administrative
procedures. Additionally, because they may not be able to dedicate staff to
training and personnel matters, small businesses often have more difficulty
than larger employers obtaining information to help them identify and
address their workforce development needs. Finally, both large and small
businesses may hesitate to invest resources in training an employee who
could use the newly acquired skills to secure a better paying job elsewhere.
However, the impact of this ?free riding? might be greater on a small
business.

According to the Small Business Administration, the approximately 25 million
small businesses in the United States provide 67 percent of workers with
their first job or initial on- the- job training in basic skills and hire a
larger proportion of younger workers. Meeting the nation?s workforce needs-
including those of small business and youth- has been the focus of study and
activity by a variety of organizations at both the national and local
levels. In many communities, programs and services linking businesses to
potential employees or offering training to

4 ?Job Growth in the 1990s: a Retrospect?, Monthly Labor Review, December
2000 reports that nonfarm payroll employment increased from 107.9 million in
1989 to 128.8 million in 1999.

Page 6 GAO- 02- 80 Consortia Provide Needed Services

incumbent workers are available through entities such as job centers and
community colleges. However, these services may be fragmented among several
organizations, making it difficult for small businesses to identify and
obtain the range of services they need to solve their workforce problems.
Federal legislation, such as the School- to- Work Opportunities Act of 1994
(STWOA) 5 and the Workforce Investment Act of 1998 (WIA), 6 has encouraged
communities to create systems that address the education and training of
young adults and the workforce needs of business in a modern, competitive
work economy. WIA calls for a strong role for the private sector, with local
business- lead boards focusing on planning, policy development, and
oversight of the local workforce investment system. Recent studies and
reports have also pointed to cooperation and coordination among public and
private organizations as a promising way to address community workforce
needs. A report by the National Center on Education and the Economy notes
that recent global and national economic trends point to the need for local
workforce systems that will provide employers and workers with the support
they need for economic success. 7 Additionally, a report by the Center on
Wisconsin Strategy (COWS) at the University of Wisconsin states that
workforce development strategies increasingly depend on partnerships between
businesses and workers, among firms in specific industries, and between the
public and

5 STWOA authorized federal ?seed money? over a limited period of time to
states and local partnerships of business, labor, government, education, and
community organizations to develop school- to- work programs. The act
supported the creation of programs with three main elements: work- based
learning (providing participating students with work experience and on- the-
job training); school- based learning (upgrading and integrating the
academic and occupational skills participating students learn in school);
and program coordination to aid the planning, implementation, and operation
of the program. All 50 states received grants before the program was
terminated on October 1, 2001. The U. S. Departments of Education and Labor
jointly administered STWOA.

6 WIA was passed by the 105th Congress to foster a coherent employment and
training system. WIA provides the framework for a national workforce
preparation and employment system and funds a number of employment and
training programs across the nation. Effective July 1, 2000, WIA replaced
the Job Training Partnership Act. One of WIA?s major purposes is to increase
the occupational skills, employment, and earnings of program participants.
Services are provided to employers and job seekers- including adults,
dislocated workers, and youth- using a one- stop service delivery system
that coordinates training programs with employer needs.

7 Building a Highly Skilled Workforce: A Labor Market System for the 21st
Century, The Workforce Development Program of the National Center on
Education and the Economy, Washington, D. C., (1997).

Page 7 GAO- 02- 80 Consortia Provide Needed Services

private sector. 8 Finally, a policy statement by the Committee for Economic
Development suggests that an intermediary organization can play an important
role in helping establish and maintain community partnerships. 9 An
intermediary is an entity established by community organizations to act as a
focal point, linking businesses with educational institutions, community-
based organizations, and other local associations in a network- or
consortium- to address mutual goals. Intermediaries broker or provide
workforce development services and manage ongoing relations among consortium
members. Businesses may access consortium services and activities directly
through the intermediary or through their association with another
consortium organization. A community workforce consortium with an
intermediary organization could include many of the organizations shown in
figure 1, such as chambers of commerce, community colleges, school
districts, community- based organizations, business and trade associations,
and unions.

8 High Performance Partnerships: Winning Solutions for Employers and
Workers, Center on Wisconsin Strategy for the State of Wisconsin Department
of Workforce Development, Madison, WI, April (1999).

9 The Employer?s Role in Linking School and Work, A Policy Statement by the
Research and Policy Committee of the Committee for Economic Development, New
York (1998).

Page 8 GAO- 02- 80 Consortia Provide Needed Services

Figure 1: An Example of a Community Workforce Consortium Consisting of
Individual Member Organizations and an Intermediary Organization

Source: Prepared by GAO based on interpretation of the information received
from the consortia reviewed for this study.

In the four communities we reviewed- Austin, Texas; Cedar Rapids, Iowa;
Charlotte, North Carolina; and Milwaukee, Wisconsin- workforce development
consortia had been established in response to local businesses? needs and
spearheaded by key community organizations, such as the chamber of commerce
or local community college. In some cases, these needs had been identified
and examined as part of a formal study of local workforce conditions and
possible economic challenges. In others, consensus on community workforce
needs was reached by consortia organization officials. The consortia were
based primarily on cooperative relationships among community organizations
rather than on formal agreements. Consortium membership varied by individual
community but often included school districts, business and trade
organizations, labor unions, and community- based service organizations,
such as the YWCA and family services agencies. Consortia organization
officials also served as members of the local workforce investment boards
required under the Community

Organizations Form Consortia in Response to Local Workforce Needs.

Page 9 GAO- 02- 80 Consortia Provide Needed Services

Workforce Investment Act. 10 Additionally, consortia in Austin, Cedar
Rapids, and Milwaukee had created an intermediary organization to facilitate
the coordination and cooperation of workforce development activities among
consortium members and to act as a broker of information and services.

Funding for the consortia organizations was typically a ?patchwork? of
public and private sources. However, all the consortia we visited received
substantial financial support from private businesses and corporations or
from private not- for- profit organizations. For example, the Capital Area
Training Foundation (CATF) in Austin reported receiving fees from businesses
participating on advisory councils, the City of Austin, and Travis County.
The Workplace Learning Connection in Cedar Rapids reported receiving funding
from area corporations, Kirkwood Community College, and service fees paid by
participating school districts. Federal financial support also played an
important role in the consortia we reviewed. Both CATF and The Workplace
Learning Connection reported receiving federal School- to- Work funding and
WRTP in Milwaukee received a grant from the U. S. Department of Labor to
train low- income workers for jobs in higher paying fields such as
construction, data networking, and manufacturing. See table 1.

10 Under the act, a majority of board members must be representatives of
local area business.

Page 10 GAO- 02- 80 Consortia Provide Needed Services

Table 1: Community Workforce Development Consortia Overview Community
Austin, Texas Cedar Rapids, Iowa Charlotte, North

Carolina Milwaukee, Wisconsin

Intermediary organization Capital Area Training

Foundation The Workplace Learning Connection None Wisconsin Regional

Training Partnership Participating organizations

 Greater Austin Chamber of Commerce

 Austin Community College

 City of Austin

 Travis County

 Capital Area Workforce Development Board

 Travis County school districts

 Business and trade associations, such as Austin Hotel/ Motel Association,
Austin Automotive Dealers Association, and the Association of Builders and
Contractors

 Kirkwood Community College

 Cedar Rapids Area Chamber of Commerce

 Grant Wood Area Education Agency- an organization of area public school
districts

 Business and trade associations, such as the Plumbing, Heating and Cooling
Contractors Association

 Unions, such as the International Brotherhood of Electrical Workers

 Charlotte Chamber of Commerce

 Central Piedmont Community College

 University of North Carolina at Charlotte

 Charlotte- Mecklenburg School District

 Charlotte- Mecklenburg Workforce Development Board

 Business and trade associations, such as the Association of General
Contractors and the Flexographic Technical Association

 Wisconsin AFL- CIO,

 Greater Milwaukee Committee

 Milwaukee Area Technical College,

 Center on Wisconsin Strategy

 Milwaukee Jobs Initiative

 Community- based organizations, such as the YWCA, Goodwill Industries, and
Milwaukee Housing Authority

Business sector focus Automotive technology,

construction, financial, health care, hospitality, information technology,
and semiconductors

Agriculture, biotechnology, health care, general services, information
technology, and manufacturing

Financial services, transportation and distribution services, manufacturing,
innovative technology, professional services, and travel and entertainment

Manufacturing, construction, health care, hospitality, technology, and
transportation

Examples of intermediary funding sources

 Greater Austin Chamber of Commerce

 School- to- Work Opportunity Act grants

 City of Austin

 Travis County

 Capital Area Workforce Development Board

 Community Action Network

 Private industry contributions

 Steering Committee membership fees

 Grant Wood Area Education Agency

 Kirkwood Community College

 Iowa School to Work

 McLeod USA

 Rockwell Collins

 Cedar Rapids Area Chamber of Commerce

No intermediary: Member organizations support their own participation in
consortium activities

 Annie E. Casey Foundation

 U. S. Department of Labor

 Wisconsin Manufacturing Extension Partnership

 Wisconsin Department of Workforce Development

 Milwaukee Area and Waukesha County Technical Colleges

 Milwaukee Foundation

 Bader Foundation Source: Prepared by GAO using information received from
the consortia reviewed for this study.

Page 11 GAO- 02- 80 Consortia Provide Needed Services

While consortia varied according to individual community needs and
resources, Charlotte and Milwaukee were examples of the evolution and
organization of community workforce efforts.

 Charlotte, North Carolina - In 1998, a group of Charlotte business
leaders, working with the Charlotte Chamber of Commerce, initiated a study-
Advantage Carolina. 11 The goal of the study was to determine how Charlotte
could capitalize on its economic advantages to ensure continued prosperity
for the region. Additionally, it explored the strengths and weaknesses of
the local economy and how to maximize what was viewed as the tradition of
public and private teamwork. Local business, government, and nonprofit
organization leaders helped guide the effort. The study- updated in 2000 and
2001- identified the area?s primary economic challenges and several
initiatives to address them. One initiative- the workforce development
continuum- specifically addressed the challenge of building a competitive,
promotable, and sustainable workforce. Specific objectives of this
initiative included conducting research on workforce needs and trends,
building a Web site for job seekers and employers, and building
collaboration between higher education institutions, Charlotte- Mecklenburg
Schools, and industry.

To implement study initiatives, the Charlotte Chamber of Commerce and
Central Piedmont Community College (CPCC) assumed important workforce
development leadership roles that helped foster a community consortium. CPCC
provided contract and custom training for local businesses, a variety of
technical and trade curricula, and several initiatives aimed at training and
employing the disadvantaged. As an outgrowth of the Advantage Carolina
study, the community college conducted a survey of local employers to
determine current and future workforce needs. The Chamber of Commerce has
also conducted workshops to address the specific workforce hiring needs of
small businesses and, according to a school official, has worked closely
with the school district to identify businesses to participate in work-
based learning activities, such as job shadowing and internships. Other
consortium participants included the Charlotte- Mecklenburg Schools, the
Workforce Development Board, and business and trade organizations. According
to officials, the Chamber of Commerce and its activities were funded through
member dues and participation fees. Advantage Carolina initiatives were
funded with a combination of public and private funds.

11 Advantage Carolina, Charlotte Chamber of Commerce, Charlotte, North
Carolina, (1999).

Page 12 GAO- 02- 80 Consortia Provide Needed Services

 Milwaukee, Wisconsin- In the early 1990s, business, government, and labor
leaders in Milwaukee reached consensus about the need to preserve the area?s
manufacturing industry and keep jobs in the area that pay enough to support
families. The leaders determined that by working together they could help
sustain industry and help ensure that existing workers could advance in a
career track and young people could move into entry level jobs. The leaders
convened a series of meetings with the Center on Wisconsin Strategy at the
University of Wisconsin to discuss the idea and, in 1992, the center
brokered an agreement between the parties to form a steering committee to
guide the creation of the Wisconsin Regional Training Partnership (WRTP).
The WRTP received funding in 1997 from a local nonprofit organization- the
Milwaukee Jobs Initiative- to improve the economic prospects of central city
families by linking them with training and jobs. WRTP worked with local
community- based organizations that provided pools of potential employees
for businesses with jobs to fill.

WRTP recently expanded to provide workforce development services to
additional business sectors, including construction, health care,
hospitality, technology, and transportation. The Milwaukee Area Technical
College worked under contract with WRTP to provide pre- employment and job
training for program participants. Activities were funded by numerous
sources, including the Annie E. Casey Foundation, the U. S. Departments of
Labor and Health and Human Services, the Milwaukee Foundation, Milwaukee
County, the City of Milwaukee, and other Milwaukee- area philanthropic and
corporate sponsors.

Small businesses can seek solutions to their workforce problems by linking
with a consortium of community organizations that help them address both
their current and future workforce development issues. Small businesses in
the communities we visited participated in these consortia by joining member
organizations or engaging in their activities. Consortia activities to help
businesses meet current workforce needs centered on finding and hiring new
employees as well as on training existing employees. Activities to address
future workforce needs focused on creating career pathways for potential
workers- particularly youth.

Small businesses that link with a community consortium- either directly
through an intermediary or through another consortium organization- can
benefit from consortium services that address their current workforce
development needs and problems. Current needs include both hiring new
employees and training existing employees. To meet these needs, Consortia
Activities

Address Current and Future Workforce Needs

Consortia Provide Employment and Training Services to Address Current
Workforce Needs

Page 13 GAO- 02- 80 Consortia Provide Needed Services

businesses must identify, recruit, and hire workers to fill current job
vacancies. Additionally, businesses must maintain and upgrade the skills of
the existing workforce to stay current with changes in technology and allow
for future growth. Consortia can be instrumental in helping businesses
connect with prospective employees who are equipped with the appropriate job
skills and, in some cases, the pre- employment skills and social supports
they need to be successful jobholders. In the consortia we reviewed, we
found a variety of activities that were designed to meet businesses?
immediate employment needs, including job fairs to provide a venue for
businesses and prospective employees to come together, initiatives with
community- based organizations that targeted the disadvantaged, and WIA one-
stop job centers. Specific examples of what we found include the following:

 In Milwaukee, the WRTP- a consortium intermediary organization- worked
with community- based organizations such as the YWCA and the Milwaukee
Housing Authority to link businesses with pools of potential employees. The
prospective employees were offered employment based on their current
qualifications or their completion of the requisite training classes in
specific job skills and pre- employment skills such as communication and
goal setting. WRTP also worked with the community organizations to help
prospective employees secure job retention services such as day care and
transportation.

 Central Piedmont Community College, one of Charlotte?s consortium leaders,
sponsored Pathways to Employment- a 12 to14 week welfare to work program
that provided academic, social, and job- specific training to prepare
welfare recipients to enter the workforce as skilled employees. Pathways to
Employment linked CPCC with the local Department of Social Services,
community businesses, and other organizations to move participants from
welfare to work. Pathways prepared students for employment in five
curriculum areas: customer service representative, medical office
administration, medical reimbursement specialist, hospital unit coordinator,
and office information systems specialist. These curriculum areas were
developed based on community workforce needs. Pathways developed
partnerships with local employers to assist students in attaining employment
after graduation. Businesses participating in the program agreed to consider
program graduates for employment.

 The Capital of Texas Eastview Workforce Center- one of three WIA workforce
board job centers in Austin and a consortium member- was located on a campus
of Austin Community College and across the street from a low- income housing
facility. One of the goals of the center was to

Page 14 GAO- 02- 80 Consortia Provide Needed Services

help both large and small businesses in the community find employees who are
ready to work and have the appropriate job skills. The Center sponsored a
job fair each Thursday where businesses could talk with prospective
employees. According to a center official, most of the businesses that used
the center have fewer than 100 employees. The consortium linked with Huston-
Tillotson College, a local historically black 4- year institution that
provided computer training on site. Daily classes were also offered in job
search skills, including resume writing and interviewing techniques.

Consortia we reviewed also offered a wide range of activities to meet the
training needs for the existing workers of small businesses. According to
consortia organization officials, training provided these incumbent workers
with the skills to keep current with evolving technology, revised laws and
regulations, safety standards, and job processes. Training can help
companies retain and sustain their current workforce and provide
opportunities for potential business expansion and growth, as well as foster
employee advancement. Businesses often looked to consortium members such as
technical and community colleges to provide training for incumbent workers.
However, other consortia organizations may also provide training for the
existing workforce. Incumbent worker training opportunities in the consortia
we reviewed included:

 In Cedar Rapids, the Chamber of Commerce, partnering with Kirkwood
Community College, worked with local businesses to address their workforce
training needs. This project received funding from Iowa?s Accelerated Career
Education initiative, which has allocated funds for community colleges to
develop accelerated training programs to meet the needs of industry. Recent
activities in Cedar Rapids focused on three industry sectors- manufacturing,
information technology, and press operators. Small businesses? incumbent
workers could receive training in a variety of areas including upgrading
computer skills, workplace communication and conflict resolution, and
advanced training for new generations of equipment. Specific job- skills
courses included blueprint reading, industrial math, and electrical/
mechanical technician training.

 In Austin, the Community Technology and Training Centers- sponsored by
consortium intermediary Capital Area Training Foundation, and located at two
local high schools in low- income neighborhoods- were open to participants
at no cost during non- school hours. They offered a range of computer
classes from basic skills courses to advanced software training, but with an
emphasis on business skills. The centers also provided free Internet access
and career guidance services. According to an official,

Page 15 GAO- 02- 80 Consortia Provide Needed Services

small businesses participated by sending employees for training and some
sponsored internships through the center.

 In Milwaukee, WRTP was originally established to help the manufacturing
industry upgrade worker skills in response to changing technology. This
consortium organization continued to address incumbent worker skills in the
manufacturing sector and expanded to include additional industry sectors.
WRTP assisted businesses in developing education and training programs. For
example, according to a union official, WRTP worked with both the union and
management of a local foundry to provide the mostly Spanish speaking workers
with English as a second language and math training to help them communicate
and work more effectively and qualify for higher skill jobs. WRTP?s menu of
employer services for incumbent workers also included providing technical
assistance with the implementation of work- based learning and mentoring
systems, development of worker training programs such as on- site learning
centers and apprenticeship programs, and the development of innovative
strategies for reducing absenteeism and turnover.

Small businesses and consortium officials in the communities we visited said
that they believed participation in career pathway activities- particularly
for youth and young adults- was an important way for them to ensure that
businesses will have a skilled workforce available in the future. Career
pathway activities offered by consortia organizations were intended to
expand students? employment horizons by exposing them to the wide variety of
future career opportunities available to them. Some consortia career pathway
activities prepared students for employment by providing work- based
learning opportunities, such as summer internships at a job site. Others,
like apprenticeships, provided longer- term training in a specific trade or
technical field.

In the communities we visited, business participation in consortium
activities to introduce middle and high school students to career
opportunities included short- term interactions between business officials
and students, such as a business representative speaking to an automotive
repair class or taking students on a tour of a manufacturing plant.
Additionally, consortia offered opportunities for businesses to participate
in more extensive work- based learning experiences like providing
internships and part- time jobs. Specific examples include the following:

 In Austin and Cedar Rapids, the consortia intermediary organizations- CATF
and The Workplace Learning Connection- sponsored internships, job shadowing,
and industry tours to increase middle and high school Consortia Offer
Activities

to Small Businesses That Guide Young Adults to Future Workforce
Opportunities

Page 16 GAO- 02- 80 Consortia Provide Needed Services

students? awareness of the connection between academic studies and their
future career opportunities. Speaker?s bureaus in several industry sectors
also connected professionals to students in the classroom. The
intermediaries also worked with employers to provide opportunities for high
school teachers to participate in job- site activities, such as summer
internships or the teacher at work program, that expanded their
understanding of the business world and provided practical experience and
relevant information they could incorporate into their curricula. These
intermediary activities were supported, in part, with school- to- work
funding.

 Consortium member Charlotte Mecklenburg School District offered a range of
work- based learning opportunities that included internships to explore
career areas, classroom- related job experience with businesses and
community agencies, and job shadowing for students to observe business
professionals and learn about work environments in their fields of interest.
The district also partnered with local businesses to sponsor summer
internships for students enrolled in its Finance and Travel and Tourism
career academies. 12 In addition, a school district official reported that
the district would open a new technical high school in 2002. The school will
teach curricula based on the six key industry sectors identified in the
Advantage Carolina report from the Charlotte Chamber of Commerce. The
technical school will have business partners that will provide technical
expertise as well as some of the faculty.

Longer- term training programs offered by consortium organizations, such as
apprenticeships and cooperative (co- op) education programs also created
future career pathways. Apprenticeship and co- op programs provided
businesses with the opportunity to train future employees in the skills
needed for a specific technical or trade career. Apprenticeships are usually
several years in duration and apprentices work part- or full- time and
attend classes part time. In co- op programs, students may alternate periods
of time working full time with attending class full time. These programs
typically linked businesses with local technical and community colleges and
sometimes secondary schools. Businesses worked with the community colleges
in developing and updating the curricula, teaching

12 A career academy is a small high school learning community, organized as
a ?schoolwithin-

a- school,? that aims to (1) create a more personalized and supportive
environment for students and teachers and (2) provide career- oriented
course work and experience. See

At- Risk Youth: School- Community Collaborations Focus on Improving Student
Outcomes

(GAO- 01- 66).

Page 17 GAO- 02- 80 Consortia Provide Needed Services

classes, and providing training on the job- site. Businesses could also
participate in apprenticeship programs through their trade associations.
Programs in the locations we visited included:

 In Charlotte, six manufacturing companies have partnered with Central
Piedmont Community College to develop Apprenticeship 2000. Apprentices
typically began working part- time for the company in their senior year of
high school, and were employed full- time upon graduation while taking
coursework at CPCC. The apprentices were paid for all work and daytime
classroom hours as well as tuition and fees. After completion of the 4- year
program, students received an associate of applied science degree from the
community college and a journeyman?s certificate from the North Carolina
Department of Labor. The college also sponsored a coop program leading to a
2- year associate degree in automotive repair, according to an official.
Students spent the first 8 weeks in classroom training and the remainder of
the semester working at a car dealership.

 In Milwaukee, automobile dealerships have participated in consortium
activities with Milwaukee Public Schools through a youth apprenticeship
program for high school juniors and seniors. During the 2- year program,
students studied auto mechanics at school and worked part- time at a
dealership during the school year and full- time during the summer. Each
student was assigned to work with and be mentored by a master mechanic. The
curriculum was provided and the program certified by the National Automotive
Technician Foundation, which represents all major automobile manufacturers.

 In Cedar Rapids, representatives from construction trade unions active in
the local consortium said they sponsored apprenticeship programs and worked
with Kirkwood Community College to provide the educational component while
the trade unions provided the on- the- job training. Union officials
reported that they targeted the apprenticeship programs to young adults-
over 21- because they generally are more mature and have some work
experience. In addition, according to officials, many of the job- sites can
be hazardous and challenging, and younger workers tend not to be as careful
or attentive to their work.

Page 18 GAO- 02- 80 Consortia Provide Needed Services

We found that consortia organizations shared important principles and
related best practices that they believe are essential in implementing and
sustaining workforce development activities. Consortia officials we
interviewed identified four key principles common to all of the communities
we visited: (1) activities are focused primarily on businesses? workforce
needs and are structured around key industry sectors represented in their
community; (2) consortium organizations provide leadership and maintain on-
going, positive working relationships with their partners; (3) workforce
development activities are accessible by both businesses and prospective
employees; and (4) consortium organizations create ways to make
participation in activities more attractive to small businesses.

All of the locations we visited had identified key industry sectors in their
communities and had organized their workforce development efforts to target
local businesses? needs in those sectors. Several consortia officials told
us that organizing by industry sectors is an effective and efficient
approach because businesses in the same sectors often have similar workforce
issues and can work together to resolve them. Table 2 shows the targeted
business and industry sectors in each community consortium we reviewed.

Table 2: Community Consortia Targeted Business and Industry Sectors
Community consortium Targeted business and industry sectors

Austin, Texas Automotive technology, construction, finance, health care,
hospitality, information technology, and semiconductors Cedar Rapids, Iowa
Agriculture and biotechnology, health care, general

services, information technology, and manufacturing Charlotte, North
Carolina Financial services, transportation and distribution services,

manufacturing, innovative technology, professional services, and travel and
entertainment Milwaukee, Wisconsin Manufacturing, construction, health care,
hospitality,

technology, and transportation Source: Prepared by GAO using information
from the consortia reviewed for this study.

 In Cedar Rapids and Charlotte, the sector focus grew out of studies done
on community economic issues. Both studies identified important local
industry sectors and the workforce needs of each sector. According to
officials, many small businesses were represented in each sector, especially
in the manufacturing, construction, and automotive sectors. Community

Workforce Development Consortia Share Key Principles and Best Practices

Activities Organized Around Industry Sectors to Meet Businesses? Needs

Page 19 GAO- 02- 80 Consortia Provide Needed Services

 Kirkwood Community College in Cedar Rapids initiated a study- Skills 2000
to determine local workforce needs 13 . The study surveyed 33 major area
businesses representing five key industry sectors: manufacturing,
information technology, health care, agriculture and biotechnology, and
general services. Each industry sector identified a mismatch between the
skills they wanted in employees and the skills in the available workforce.
Kirkwood, working with other consortium members, used this study to develop
specific training programs based upon the needs of local businesses in those
sectors. One example is the Press Consortium Training Program where 13 small
printing companies joined together with Kirkwood to address their training
needs in an effort to remain competitive and current with new technologies.
They developed and implemented six 10- week training modules for incumbent
press assistants and press operators to receive training in press
operations, essential skills, sales, and customer service. Project members
reported that they have shifted the focus from competing with each other for
qualified employees to working together to promote the printing industry.

 In Charlotte, the Advantage Carolina study, done in 1998, identified six
key industry sectors that consortium organizations used to identify local
workforce development issues. Three sectors represented already existing
industry clusters: financial services, transportation and distribution
services, and manufacturing. Three represented emerging industries:
innovative technology, professional services, and travel and entertainment.
Together they accounted for 60 percent of Charlotte?s employment growth
between 1980 and 1999. Representatives from each of the sectors reported the
critical issues associated with each sector and identified strategies to
address them. Workforce development and training was a theme common to all
six sectors, and several consortium efforts address the workforce needs
identified by business. For example, the chamber of commerce?s Information
Technology Collaborative initiative- implemented in response to their
Advantage Carolina study- addressed the need for skilled workers by
developing information technology certification programs and by linking
students with businesses.

 The Capital Area Training Foundation- Austin?s intermediary- convened
seven industry- lead steering committees that collaborate with educators and
employers to develop workforce solutions for the key industry sectors

13 Skills 2000 Commission Report, Kirkwood Community College, Cedar Rapids,
Iowa, (1999).

Page 20 GAO- 02- 80 Consortia Provide Needed Services

in the community. Targeted industries included semiconductor manufacturing,
construction, finance, hospitality, information technology, automotive
technology, and health care. The steering committees were responsible for
engaging employers in designing career pathways; sponsoring work- based
learning experiences for students and teachers; and linking employers
directly with schools and post- secondary institutions. One example of the
steering committees was the Building Industry Construction Alliance, which
according to an official, included about 75 businesses and several other
consortium organizations. The Alliance also worked with local high schools
and educational institutions to develop career pathways for the construction
trades.

 In Milwaukee, the industry sector approach to workforce development began
when WRTP established a manufacturing steering committee to assist employers
and unions in the manufacturing sector in improving employment security for
current employees and career opportunities for community residents. This
committee played the important role of monitoring the health of local
manufacturing businesses to help guide workforce development activities in
their communities. WRTP has since expanded to include other industry sectors
such as construction, hospitality, technology, transportation, and health
care, and currently works with over 100 member businesses and unions.

Consortia we reviewed were loose alliances of organizations, but had
established firm consensus on both community problems and goals among
consortia members. Key consortia organizations provided leadership and
developed close working relationships with other member organizations in an
effort to implement and sustain workforce development activities in their
communities. Officials at some locations cited leadership as a vital
component of the operations of workforce consortia. Additionally, some
consortia officials we spoke with said that close coordination and
communication among organizations was critical in meeting local workforce
needs. Consortia efforts to encourage strong leadership and promote positive
working relationships included:

 In Austin, several consortium organizations including Austin Community
College, the Capital Area Training Foundation, the Workforce Development
Board, the Tech- Prep Consortium, and the Capital Area Education and Careers
Partnership co- located their offices in Austin Community College?s Highland
Business Center. College officials told us that the centralization of these
organizations took place under the leadership of the president of the
community college, who believed that having consortium members in the same
location would promote Consortia Provide

Leadership and Sustain Positive Working Relationships

Page 21 GAO- 02- 80 Consortia Provide Needed Services

coordination and better serve the organizations and the community.
Consortium officials reported that co- location also facilitates regular
communication, scheduling of meetings, and fosters the feeling of
collegiality in working across organizations that often have different, but
complementary, missions.

 Consortium organization officials in Charlotte reported that the Charlotte
Chamber of Commerce had taken the lead in workforce development by convening
all of the key consortium organizations and facilitating regular
communication among these members. According to one official, the chamber
also recognized the need to form a business and education collaborative
infrastructure to direct the management of pertinent education issues. The
chamber worked closely with local business representatives and public
officials to establish 17 key initiatives- including the Information
Technology Collaborative and the Workforce Development Continuum- that grew
out of the Advantage Carolina study. The chamber also encouraged consortium
organizations to participate on multiple boards and committees and partner
with other consortium members on specific activities. For example, chamber
officials told us that the Director of Workforce and Professional
Development at the chamber had a seat on the local WIA workforce development
board. In addition, the chamber sponsored a Small Business Round Table every
other month where organizations serving small businesses meet to discuss
what they are doing and to coordinate dates of activities and events.
Organizations included are the Small Business Technical Development Center
at Central Piedmont Community College, the Small Business Administration,
City of Charlotte, Mecklenburg County and the Metrolina Entrepreneur
Council, an organization of small companies- many of them technology based.
In addition, according to an official, the chamber has recognized the need
to form a business/ educational collaborative infrastructure to direct the
management of pertinent educational issues.

 In Milwaukee, officials from area unions told us that the leadership of
the Wisconsin Regional Training Partnership has helped build close working
relations between union and management that are critical to maintaining and
sustaining workforce development activities. The officials said the WRTP had
credibility with the unions from the beginning because nearly all of the
WRTP staff had union experience and that WRTP provided the link between the
unions, educational institutions, and other consortium organizations for
workforce development activities. At each business working with WRTP on
workforce development, there was a union cochair of the activities. At the
regional and local level there were union representatives on all of the
committees that implement WRTP goals and

Page 22 GAO- 02- 80 Consortia Provide Needed Services

initiatives. Consortium officials said that the relationship- built by the
union, employers, and WRTP- was now established and would continue even if
the economy changes and the labor market weakens.

Workforce development activities that are convenient and easily accessible
help engage small businesses and increase awareness of employment
opportunities for prospective workers. Small businesses and consortia
officials alike emphasized the importance of easy access for small business
owners and potential employees. Consortia organizations offered multiple
doorways into workforce development activities for small businesses through
member organizations or intermediary outreach. Consortia used strategies
such as providing outreach services to local small businesses to inform them
of opportunities in workforce development activities and assisting
prospective employees overcome potential barriers to employment such as
finding childcare services. Additionally, since businesses differ in the
amount of time and resources they have available to devote to workforce
development, consortia offered a range of participation options to make
workforce development activities accessible to all businesses. Examples of
how consortia we visited provided easy access to activities included:

 Kirkwood Training Services, a division of continuing education at Kirkwood
Community College in Cedar Rapids, had program directors that Kirkwood
officials told us were considered the ?sales and marketing team? and
facilitated business participation. Officials explained that the program
directors met with both small and large businesses and developed customized
training as well as industry sector training programs. The program directors
called on local businesses to discuss training needs and training
opportunities. Kirkwood Training Services contracted with over 150
businesses a year to provide customized training services. Small businesses
could choose from several different options to access workforce development
activities that met their workforce training needs. For example, Kirkwood
Community College developed industry sector training programs where like-
businesses pool resources for training. In one of them, eight call center
businesses combined efforts with Kirkwood to create an 11- week customer
call center program. Training included work skills, telephone skills, and
etiquette and customer service skills. The customer call center program
enabled all eight industry partners to have access to a pool of qualified
potential employees and share the training costs. Additionally, Kirkwood
Training Services offered computer- based training at its training center,
including computer training modules and instructional software to provide
online skill- specific training in selected fields such as information
technology, safety, and workplace basics. Activities Easily

Accessible to Businesses and Prospective Workers

Page 23 GAO- 02- 80 Consortia Provide Needed Services

Officials reported that small businesses could use the center for employee
training, and the center was open in the early mornings and in the evenings
as well as during the workday to provide easy access.

 WRTP officials in Milwaukee recognized that difficult family and financial
circumstances could present serious access problems to employment for many
prospective employees. To address these issues, WRTP officials told us that
they worked with community- based organizations to help lowincome clients
identify and overcome barriers to employment such as difficulty in finding
childcare programs or the necessary transportation that could otherwise
prevent them from succeeding in the workplace. WRTP also helped prospective
employees develop back- up plans so that if, for example, a daycare provider
gets sick, employees have other organizations or people that will help.

 Industry liaison staff at the intermediaries in Austin and Cedar Rapids
facilitated businesses? access to workforce development activities by
offering a variety of ways to participate. Additionally, liaison staff
helped businesses decide which activities best suit their workforce needs.
These ranged from a single speaking engagement at a local school to
providing on- the- job training to a student intern. The intermediaries also
offered high school students an assortment of work- based learning
opportunities ranging from company tours to apprenticeships. In Cedar
Rapids, liaison staff at the intermediary, The Workplace Learning
Connection, stressed the importance of workforce development activities
being easy for everyone to use- businesses, schools, and students- because
if they were not, participation would suffer.

 The Charlotte- Mecklenburg School District reported employing four people
that provide outreach to local businesses to engage them in schoolto- career
programs in area high schools. These staff informed businesses on how to
become involved in community workforce development activities and how this
participation might be a financial benefit to them. High school students
were connected with the businesses in work- based learning activities such
as job shadowing, internships, and apprenticeships. School district
officials reported that small businesses chose their level of involvement
based on their resources and workforce needs by working closely with the
school district staff.

Consortia officials told us that incentives make participating in workforce
development activities more appealing to small businesses. Officials said
that they engage businesses in workforce development activities by pointing
out a number of specific benefits. Some noted that providing Incentives
Attract Small

Business Participation

Page 24 GAO- 02- 80 Consortia Provide Needed Services

businesses with skilled workers to meet their workforce needs could be a
significant enough incentive to participate. Other incentives in the
locations we visited included the possibility of longer- term benefits such
as building the future workforce by connecting high school students with
local businesses. Additionally, in some consortia, financial incentives
attracted businesses to become involved in workforce development activities.

 In Cedar Rapids, Kirkwood Community College provided financial incentives
for businesses to participate in workforce development activities through
two state jobs training programs that lower training costs. Kirkwood
officials said that businesses learn about these programs through direct
mail marketing, seminars, outreach from staff at Kirkwood Training Services,
and also by word- of- mouth.

The first jobs training program, the Iowa Industrial New Jobs Training
Program, was created in 1983 to provide an economic incentive to new or
expanding industries in Iowa. Eligible companies that were creating new
positions or new jobs could receive state funding for training administered
through their local community college. The community college district in
which a qualifying business is located initially pays the costs of the
training program- financing it through the sale of job training certificates
(bonds.) The community college is repaid over a 10- year period by the
business diverting 1.5 or 3 percent of the state payroll tax it withholds on
the employees? wages for the newly created jobs. Property tax revenues,
resulting from capital improvements, might also be used for repayments.
Repayment of the certificates does not involve additional taxes to the
businesses. The training certificate amount a business receives depends on
the number of jobs it creates and the wages it pays those positions.

The second jobs program, the Iowa Jobs Training Program, was created to help
Iowa businesses fund customized training for current employees. Community
colleges assisted businesses with the development of training programs that
were funded by cash awards through the Iowa Department of Economic
Development. The maximum amount of funding was $25,000 for each project, and
businesses could receive a maximum of $50,000 over 3 years. Eligible
applicants included businesses engaged in manufacturing, processing,
assembling products, warehousing, wholesaling, or conducting research and
development. Reimbursable services included skill assessment, adult basic
education, and the cost of training services, materials, and professional
services.

Page 25 GAO- 02- 80 Consortia Provide Needed Services

 In Milwaukee, officials at WRTP reported they were able to provide
services to individual businesses at no out of pocket cost using grant money
received from a variety of sources, including the Annie E. Casey Foundation
and the U. S. Department of Labor. WRTP services included technical
assistance with the transition to new technologies and work processes,
expansion of worker education and training programs, improvement of work-
based learning and mentoring systems, adoption of innovative strategies for
reducing absenteeism and turnover, and development of cost- effective
alternatives to temporary employment agencies. Employers contributed in-
kind support by providing equipment, materials, and job shadowing and
mentoring opportunities. One business official we spoke with acknowledged
that he saw a significant cost incentive to using WRTP?s free employment
services. He said that by working with WRTP, he will save the approximately
$3,000 per employee he would have to spend if he worked with a temporary
employment agency to identify potential employees.

 Consortium organization officials in Charlotte told us that businesses
benefit from participation in activities such as speaking engagements and
teaching courses because they can have first opportunity to recruit
potential new employees. For example, the Information Technology program at
Central Piedmont Community College was a five- to six- level certificate
program that asks business members to speak or teach. The officials report
that the program had about 100 part- time instructors, half of whom are from
small businesses. Additionally, a CPCC official reported that the college
provided training assistance, at no cost, to North Carolina businesses that
create new full- time manufacturing and customer service positions. Two
programs, New and Expanding Business Industry and Focused Industrial
Training, provided customized training services that included pre-
employment training, on- site instruction, and materials. A third state-
funded program- In- plant Training- also assisted businesses, at no cost, in
providing employees with in- service training in basic job skills.

Outcome studies of workforce development activities at the sites we visited
were limited in scope. We found that some consortia organizations in some
locations reported collecting data to monitor the number of participants in
activities such as job fairs and internships, employee placements following
completion of training programs, and employment retention and advancement
from local workforce development initiatives. However, officials said that
consortia organizations did not have systems in place to evaluate the
overall effectiveness of workforce development activities in their
community. Outcome information for specific activities Limited Information

Available on Program Outcomes

Page 26 GAO- 02- 80 Consortia Provide Needed Services

on participation, employee placement, and employment and retention rates
included:

 In Milwaukee, WRTP?s Manufacturing Jobs Connection project targets central
city residents- many of whom have limited work experience and less than a
high school education, according to a program official. The project reported
that- since its inception in 1997, 202 participants have completed the
program?s customized training and nearly all were placed in manufacturing
jobs. Fifty- seven of the placements were with small businesses of 100 or
fewer employees- earning an average wage of $10.75 per hour. As of January
2000, the employees? job retention rate was 68 percent for 3 months, 63
percent for 6 months, and 48 percent for 12 months. According to an
official, WRTP has placed more than 1,000 employees in jobs- over 600 in
manufacturing- since 1997 with most jobs paying at least $10.00 per hour,
plus health care, pension, tuition reimbursement, and other benefits. The
project also reported an increase in program participants? annual earnings
from about $9,000 to $23,000 per year in the first year on the job.

 In Austin, CATF- the consortium intermediary- reported placing over 2,000
high school students in summer internships in 2000 as well as 1,350 middle
school students in job shadowing activities during the 2001 school year. The
annual Greater Austin @ Work High School Career Fair sponsored by CATF
attracted 2,600 students from 25 high schools and over 170 employers,
colleges and universities, and community- based organizations in 2000.
Additionally, CATF?s Construction Gateway Program, a five- week job-
training program for the construction trades, has graduated 504 trainees in
the past 6 years- many of them incarcerated youth. Of the participants who
graduated between 1994 and 1999, 259 were subsequently employed in the
construction field. Program officials were planning to use a workforce
commission database to survey the program?s graduates to determine their
work progress since graduation.

 In Charlotte, Central Piedmont Community College had several programs that
tracked participation and retention rates. For example, the Pathways to
Employment program had 70 to 80 participants per semester, most of

Page 27 GAO- 02- 80 Consortia Provide Needed Services

whom received Temporary Aid for Needy Families (TANF) 14 . Pathways was a
short- term training program designed to prepare participants to enter the
workforce as skilled employees in areas including customer service, heating
and air conditioning, medical office administration and early childhood
development. Program officials reported an 80 percent job placement rate and
a 75 to 80 percent retention rate after 3 months. In Apprenticeship 2000- a
4- year program where participants work and attend community college
classes- officials reported there were 45 apprentices participating at the
time of our review. Outcome information is not formally collected; however,
a representative from one company told us that only 2 of the 28 apprentices
it has sponsored have dropped out since the program's inception.

 In Cedar Rapids, The Workplace Learning Connection tracked participation
rates for all work- based learning activities. Reported levels of student
participation in these activities increased from fiscal years 1999 through
fiscal year 2000 as shown in table 3.

Table 3: The Workplace Learning Connection Student Participation - Fiscal
Years 1999 and 2000

The Workplace Learning Connection services Student participation

fiscal year 1999 Student participation fiscal year 2000

Job shadows 1, 152 2,800 Internships 100 150 Student tours Minimal 2,250
Teacher tours Minimal 270 Teacher @ Work Program 24 50 Teacher inservices
Minimal 250 Classroom speakers 0 4, 125 Career fairs 0 175 Source: Prepared
by GAO using The Workplace Learning Connection data.

Additionally, the intermediary reported that 37 students who had served as
unpaid interns with local businesses in fiscal year 2000 were later hired as
paid part- time employees. The Workplace Learning Connection officials told
us that they also measured the success of activities by the continuing

14 TANF was created as part of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 to replace cash assistance under the
Aid to Families with Dependent Children. It specifies several broad goals
including ending the dependence of needy parents on government benefits by
promoting job preparation, work, and marriage. TANF makes $16.8 billion in
federal funds available to states each year through 2002.

Page 28 GAO- 02- 80 Consortia Provide Needed Services

use of their services by the schools- since the schools pay a fee for
service. At the time of our review, the intermediary had memoranda of
understanding with 29 of the 33 school districts in its region. Kirkwood
Community College in Cedar Rapids reported that it, along with 268
participating businesses, has generated about 19, 000 new jobs through the
Iowa Industrial New Jobs Training Program since 1983.

Partnerships among private sector groups, local governments, and their
public agencies continue to emerge as an important force in addressing local
workforce development problems. These partnerships, often prompted by
adverse or changing local economic conditions, have strong business
leadership, focus, and financial support. They address the disconnect
between the community?s employers- especially small businesses- and
workforce development services designed to identify and prepare entry level
workers, upgrade the skills of existing workers, and create career pathways
for young adults. Within each community we visited, the capacity to address
these workforce development needs was present. What had been missing was a
consistent and stable mechanism to link businesses to the employment and
training resources they needed. While the consortia followed similar paths
in their approach, each location addressed its problems by mobilizing the
unique strengths of its locale, adapting to the special circumstances of the
community. Often found in these communities, and partners with the
consortia, were the efforts of both current and past federal initiatives-
local WIA boards and partnerships established under the School- to- Work
Program. The infrastructure created by federal initiatives like these, that
can support new service entities operating in harmony with existing service
systems, appears to be a promising way of promoting broad national goals
while providing the local discretion necessary to create solutions to fit
with local problems.

We provided officials at the Department of Labor and consortia officials
from Austin, Cedar Rapids, Charlotte, and Milwaukee an opportunity to
comment on a draft of this report. All reviewing officials generally agreed
with the contents of the report and some provided clarifications and
technical comments that we incorporated where appropriate.

We performed our review from September 2000 to July 2001 in accordance with
generally accepted government auditing standards. Conclusions

Agency Comments

Page 29 GAO- 02- 80 Consortia Provide Needed Services

As agreed with your office, unless you publicly release its contents
earlier, we will make no further distribution of this report until 30 days
after its issue date. At that time, we will send copies of this report to
the Honorable Elaine L. Chao, Secretary of Labor, appropriate congressional
committees, and other interested parties. We will also make copies available
to others on request.

Please contact me on (202) 512- 7215 if you or your staff have any questions
about this report. Key contributors to this report are listed in appendix I.

Sincerely yours, Marnie S. Shaul Director, Education, Workforce,

and Income Security Issues

Appendix I: GAO Contacts and Staff Acknowledgments

Page 30 GAO- 02- 80 Consortia Provide Needed Services

David D. Bellis, (415) 904- 2272 Susan J. Lawless, (206) 287- 4792

In addition to those named above, the following individuals made important
contributions to this report: Lisa A. Lusk, Scott R. McNabb, Dianne L.
Whitman- Miner, Howard J. Wial, James P. Wright, Jonathan H. Barker, and
Richard P. Burkard. Appendix I: GAO Contacts and Staff

Acknowledgments GAO Contacts Staff Acknowledgments

(102012)

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