Governor's Workforce Investment Board
Executive Committee Meeting
July 9, 2002
Committee Members Present:Chair Haley Beaudry,
Verdell Jackson, Wendy Keating, Chuck Olson, Gary Willis, Dick
Brown, Lew Grill, Caroline Brown, Carol Brooker, Jerry Driscoll,
Committee Members Absent: Becky Erickson
Supporting Staff: Desiree Taggart, Emily
Guests: Kelly Chapman, Connie Kinsey, Sue Mohr,
Chair Haley Beaudry called the meeting to order at 10:40 am.
I. Roll Call
Roll call was taken and a quorum was
II. Review Minutes
The minutes of the April 11, 2002 Executive Committee meeting
III. Legislative & Other Issues
Desiree Taggart explained that the Economic Development and
Business Retention Committee is looking at developing mechanisms to
create a worker training fund that is contains a great deal of
flexibility for the employers and potential trainee. They have
asked Desiree to look at tax increment financing. In this type of
funding the new income taxes derived from new jobs would be
diverted for training. The committee is evaluating this option. In
addition, the Department of Labor and Industry is looking at the
excess Unemployment Insurance Trust Fund. Desiree also explained
that the Governor is aware of the need for an incumbent
worker-training fund and is a strong supporter of this critical
component of moving Montana's economy forward.
Wendy Keating is having staff review applicable laws to make
sure the Unemployment Trust Fund will not be jeopardized and
determine a safe level to draw down to. Items they are considering
is that the funds would need to be diverted and the need to keep
the employer schedule at its' current rate. There is already a
small diversion of funds for the Wage & Hour Program and
funding about 43% of local job service office budgets.
One concern area noted is that the projections for worker
shortages are very bad for Montana.
Chair Haley Beaudry explained that with the regular session
upcoming and the special session to begin in a few weeks, there is
a great need to get draft legislation started.
Desiree Taggart went on to explain that most of the other states
that use part of their Unemployment Insurance Trust Fund or
tax increment financing for incumbent worker-training started by
diverting $500,000 to $700,000 the first year and three to five
million each year after.
Wendy Keating explained that Montana's 12-month balance in the
fund is about 158 million and that one of the reasons that Montana
is not financially as bad off as some states is because we had more
than just 12-months worth of funds. Dick Brown asked about
how other states are doing it. Is it a grant or a gift?
Desiree explained that some states have requirements such
The eligible jobs have to pay a certain wage.
Individuals must be in the job for six months.
Only primary industries are eligible (export 80%+ out of
Companies must enter into contract to provide for repayment if
the specified criteria are not met.
Desiree explained that theEconomic Development and Business
Retention Committee would present a recommendation to the Executive
Committee and full board in October. Dick Brown explained
that the possibility of running a program to reemploy nurses.
Desiree Taggart added that there are funds designed for training
and does not preclude health care she suggested that interested
parties could contact Anne Desche of the Department of Commerce.
Gary Willis commented that several hospitals are looking for nurses
out of Canada and that it makes more sense to hire locally.
Desiree explained that House Bill 469 says that the Department
of Public Health and Human Services should coordinate with the
Department of Labor and Industry. This enables that Governor to
move Vocational Rehabilitation, Food Stamp Employment and Training
and other programs in to the Department of Labor and
Industry. Wendy Keating reported on the State Agency
Management Team that has been formed to address coordination
efforts. She explained that it is difficult for bureaucrats to look
objectively at what they are doing and not find benefits. Right now
they are trying to find the benefits involved in restructuring
state government. There seem to be reasons for leaving the programs
where they were and just as many or more for moving them to the
Department of Labor and Industry. She added that everyone was
working hard to be objective and credited the Department of Public
Health and Human Services for being very open to possibilities.
Desiree Taggart reiterated that these are difficult decisions
since many agencies don't want to lose a program and many don't
want to gain a program either. She added that the changes
nationally are bringing TANF and Workforce programs together.
Wendy Keating explained that business needs and how best to meet
those needs is at the heart of this issue. Lew Grill
commented that knowing if the TANF program would be incorporated
into the Workforce Investment Act might be a key factor. He went on
to suggest that it might be hard to argue for change when the
current system just earned Montana a 2.2 million dollar bonus.
Wendy Keating explained that one of the reasons for moving TANF
is to help welfare recipients learn to use the workforce
Leroy Bingham stated that TANF it is an employment program at
its' heart and explained that some tribes that are using 477 have
already integrated TANF. Verdell Jackson suggested that
putting TANF and the Workforce Investment Act together emphasizes
the fact that most people want to work. What about the people
that want to work but cannot get a job because of physical or
mental limitations? Is there a provision where pay can be reduced
(below minimum wage) and supplemental income can be provided?
Jerry Driscoll that there are some limited provisions for this type
of support. Desiree Taggart explained that TANF is currently
showing as a mandatory partner in the reauthorization.
Leroy Bingham explained that the Regulatory Committee met on
July 8, 2002 and made a decision to pursue finalization of a
document outlining Workforce Development Programs for Individuals
and Programs for Business. He asked that the committee members
review the document at their convenience and provide feedback. He
also explained that the Regulatory Committee has already begun a
list of changes to be made to the document. The plan is to present
a finalized version for approval at the October full board meeting.
Leroy further explained that the Regulatory Committee also decided
to design some guiding principles for the One Stops (JobLINC
Centers) in the hopes of improving and increasing the number and
quality of One Stops in Montana. Staff has been asked to gather
information from other states. One of the issues will be to define
collocation in relation to the One Stops as well as define some
other terms to provide system wide consistency. Desiree
Taggart added that Dennis Lerum, speaking from experience at the
meeting on July 8th, felt that the program document could be very
helpful in many applications and prompted a discussion regarding
who would receive the document such as Legislators and
educators. Verdell Jackson stated that he was glad to see the
document and feels that it will be very helpful. Desiree
Taggart mentioned that this would be a living document that will be
updated each year. Gary Willis added that the document would
have been very helpful in the Accountability Committee meeting
recently held. The Executive Committee made comments
regarding additions and changes.
According to Leroy Bingham, the Regulatory Committee decided to
add a page dedicated specifically to tribal programs. He added that
one of the reasons for presenting the document to the full board
was to gain support from the board and apply pressure on programs
to provide the information needed.
Dick Brown inquired about how the itinerant services are being
provided across the state. Leroy Bingham explained that a lot of
them are staffed in the specified town one day by one program and
another by a different program in the same location. He added that
one of the reasons for creating some guiding principles is that the
Butte One Stop works so well and it seems that other sites across
the state could improve as they have.
Verdell and Leroy asked Desiree to break out the state and
federal funding figures separately on the budget page.
Desiree Taggart explained that one of the other intents of the
document is to eliminate some of the problems with programs being
questioned for closing because of assumptions that they are state
Prompted by Caroline Brown, Leroy Bingham explained in general
terms how the information on the reservations will be listed.
- System Performance Indicators
Desiree Taggart explained that when the Accountability Committee
met on June 21, 2002 they decided that they needed more information
on performance indicators. The committee wants to find some
performance indicators that are versatile across the system and
could be used for marketing Montana's workforce system. They will
be looking to other states for examples. Gary Willis added that the
Workforce Development Programs for Individuals and Programs for
Business document would have been of great assistance in their
discussion. He reported that the committee did a lot of goal
setting. They looked at system measurements as well as many other
topics in relation to performance. Desiree Taggart explained
that one of the benefits of the committee is that it is comprised
completely of private sector members. Some of the members feel
strongly about sharing some of the processes that are currently
being used in their companies. Verdell Jackson stated that in
areas where we are creating flexibility by removing regulations it
is important to have performance indicators in place. Desiree
Taggart reminded the committee that one of Governor Martz' main
topics she addressed for the board was regarding system wide
accountability. Verdell Jackson suggested that the
standardized tests that are used across the nation be looked at.
Stating that Montana only uses the minimum required. Most
regulations are directed at class size and staffing. The local
communities need the flexibility to make decisions. Desiree
Taggart agreed to address the Accountability Committee with
Chair Haley Beaudry asked Desiree what could be done to gain
information on the performance indicators for the Welfare to Work
program, Displace Homemakers and others. Desiree explained
that the Displaced Homemaker program does not have performance
indicators in their reporting requirements. Jerry Driscoll added
that the legislature requires information on the number served,
jobs acquired, wages, retention, etc. Verdell stated that
when the Project Challenge Program went to the legislature they
provided very detailed information, which enabled them to receive
the funds they asked for. He asked Desiree to explain the federal
performance indicators. She responded that the entire Workforce
Investment Act has 17 indicators.
How many entered into a job
At what wage
How long was the retention
If they went into training did they get a credential?
Was it related to employment?
Jerry Driscoll said there was a problem with how the data was
gathered. For some of the data they just used Montana Unemployment
information, which did not track those that did not need to file
taxes here. When this problem arose phone calls had to be made.
Desiree Taggart explained that the retention numbers are
required to be received from Unemployment Insurance. Jerry
asked, "If Unemployment Insurance can check to see if a person has
worked anywhere in the nation why can't we track them for
Verdell Jackson reported that some areas track students using
income tax forms. Gary Willis explained that the Department
of Revenue also tracks employment. Desiree explained that
there is no leeway in the Workforce Investment Act performance
indicators. Leroy Bingham added that in one of the Indian programs
they added a community benefits measurement because in one segment
of the program they found some flexibility. This may be good
information when building system indicators
Western Governors' Association - Policy
Desiree Taggart explained that Governor Martz was recently
elected Chair of the Western Governors' Association. As Chair she
can embrace three issues to tackle. One of the issues Governor
Martz has chosen is Workforce Development and Education. The
committee reviewed the first policy that has been created in
regards to Workforce Development from the Western Governors'
Association. Desiree explained that there is no action needed at
this time from the board. She explained that there seems to be a
lot of concern nationwide in regards to "super waivers" but a lot
of thought has gone in to the policy and the push is to give the
local states/communities the power. Verdell Jackson explained
that Oregon has received waivers allowing them to more flexibly
spend educational funds. Lew Grill asked how "regional and
local economies" are defined for the purposes of the policy.
Desiree explained that there is no hard definition.
Leroy Bingham stated concern over helping only those that are
most in need. He added that some areas are writing and running
multiple programs as one, which enables better and increased
service. Leroy reported tripling the services provided by combining
programs and that this was done without increasing funds.
- Temporary Assistance to Needy Families - Performance
Taggart explained that Gail Gray who sits on the Regulatory
Committee explained at the July 8, 2002 meeting about the 2.2
million dollars in bonuses that Montana received. Gail will present
information at the full board meeting on July 16, 2002. The issues
may be making recommendations to the Governor regarding possible
uses of the funds. Leroy Bingham added that one of the
factors allowing Montana to receive the bonus funds was that
Montana ranked number one in the nation for welfare recipients that
entered employment. Chair Haley Beaudry added that one of the
issues would be to figure out what the board could do.
IV. Other Business
V. Public Comment
VI. Establish Meeting Date
October 3, 2002
Chair Haley Beaudry adjourned the meeting at 1:50 p.m.
Next full board meeting (After July 16th) will be in