Bridges - Spring 2010

8/9/2019 Bridges - Spring 2010

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T h e F e e r a l r e s e r v e B a k F s T . l s : C e T r a l T a m e r C a s e C m y

PUBLISHED QUARTERLY

BY THE COMMUNITY

DEvELOPMENT

DEPARTMENT OF

THE FEDERAL RESERvE

BANK OF ST. LOUIS

L i i g L d A d C u i i pig 2010

Bidg w w w . s t l o u i s f e d . o r g

By Andrew Pack

When there isa devastat-

ing naturaldisaster, governors andstates are the rst line ofdefense, and the federalgovernment is the secondline of defense. Gover-nors must ensure that theNational Guard is readyto protect citizens living in

the disaster area and must askthe federal government to sendhelp quickly. Similarly, duringan economic crisis like the cur-rent one, governors are on thefront lines, ensuring that theirstates get people back to workas soon as possible.

To accomplish this, governors

and states must make sure thathelp from the federal govern-ment with creating a morecompetitive workforce comesquickly and effectively. Federal,

state and localgovernments mustwork together, usinglong-term and innovativeapproaches to create a work-force that will meet the chal-lenges of tomorrow.

A recent report from theMcKinsey Global Institutefound that 71 percent of U.S.workers are in jobs for whichthere is low demand, an over-

supply of eligibleworkers or both.1 This iscreating a ood of unemployedpeople in the United States that

will not stop unless governorshave the authority to useworkforce dollars in innovativeways that t the people whoneed jobs in their states. State

ofcials know theireconomies, industries

and workforce thebest. Therefore, to

create a U.S. work-force that has the skillsemployers need, statesmust have the exibility

to funnel workforce dollarsinto the industries that arestrongest in their states.

Some think workforce skillstraining is something we do foremployers, to attract industriesand jobs, Gov. Haley Barboursaid in the 2010 Mississippi Stateof the State Address. Thatstrue, but thats only part of it. Ibelieve workforce developmentand skills training are something

we owe our working people...tohelp them increase their wagesand get better benets.2

When it Comes to Workforce, tates atter

continued on Page 2

4-9 annnthe eonWorkforce develoment

n ill nos, entcky,

ssor an ennessee 0

$81,850,844

TENNESSEE

$569,590,661

8TH DISTRICT TOTAL

$3,793,364,125

U.S. Total (50 states

& Puerto Rico) $78,634,177

MISSOURI

$32,250,346

ARKANSAS

$48,297,776MISSISSIPPI

$194,605,672

ILLINOIS

$77,749,626INDIANA

$56,202,220

KENTUCKY

arra Funding fo eigt itict stt

www.ol.ov/recovery/ma/ma-eta.htm

Calenar

iN

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e

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l k G l e e r s a C m m T e s#

2

in ths isse...Governors across the United

States are identifying workforcedevelopment and job creation astheir top priorities for 2010 andbeyond. In fact, in their 2009State of the State Addresses, 87percent of governors mentionedcreating a more educated work-force to compete in the 21stcentury as one of their highestpriorities, according to theNational Governors Association.3

In February of 2009, thefederal government tried toanswer many of the governorsrequests by including nearly$4 billion in the AmericanRecovery and Reinvestment Act(ARRA) to be given to states forworkforce development and jobtraining.4 States in the Fed-

eral Reserves Eighth Districtreceived a total of nearly 15percent of the $4 billion. (Seemap on p. 1.) The bulk ofthe funds went to WorkforceInvestment Act (WIA) Youthand Dislocated Workers activi-ties. The rest of the fundingfrom the ARRA went to state

departments of labor employ-ment services and unemploy-ment compensation. Thisfunding allowed cash-strappedstates to continue services toworkers and to the unemployedat a critical time. However,longer-term policies thatbenet the workforce of the

future are needed. This moneywas desperately needed by thestates and helpful in the shortterm, but more must be doneto create longer-term policies

that will truly benet the U.S.workforce in the future.

While the federal govern-ments workforce policies arefocused on allocation of work-force funds, state governmentsare instrumental in making surethese funds actually improvethe workforce in their states.

According to the National Gov-ernors Associations GovernorsPrinciples to Ensure WorkforceExcellence, workforce policieswould be more effective if: Education and training for the

workforce were more respon-sive to the needs of businessesnow and in the future.

Workforce policies betweenfederal agencies and the stateand local levels were morestreamlined and collaborative.

Funding was more reliableand exible to allow for more

innovative workforce policieson a state and local level.

State and local workforcesystems were more integratedto reduce administrative costs.5

Governors want to enacttransformative legislation thatwill authorize them to proac-

tively implement innovations,build broad and inclusive part-nerships, and activate struc-tural reforms across education,workforce and economicdevelopment systems, accord-ing to the National Governors

Association.6 But to do this,Congress and the administra-

tion must move to more long-term workforce policies thatare not one-size-ts-all.

While investments in jobcreation are sorely needed,

tates attercontinued from Page 1

By Allen North

Workforce

development is

a critical component of our countrys

and communities economic

strategies. Where there is a

vibrant, educated workforce with

the skills employers need, there is

a foundation for individual asset

building and community economicgrowth. Without a strong work-

force, such asset building and

growth cannot occur.

Considering todays economy and

the high rate of unemployment,

rebuilding a powerful labor pool is

a pressing need for our country.

This issue ofBridges focuses on

the topic of workforce development

and what is being done to

strengthen Americas workforce.

In the cover story, Fed public

policy specialist Andrew Pack takes

a high-level look at the federal

governments workforce develop-

ment programs and how they are

implemented at the state level. He

emphasizes that state governments

bear the responsibility for building

strong workforces because they

know their economies better than

anyone. At the same time, the

author cautions that states will not

succeed at this task unless they

are authorized to use federal

monies in ways that are appropri-

ate for their economies.

Also in this issue, representa-tives of several state and local

governments in the Eighth District

addressed the following questions:

What are the workforce devel-

opment priorities in your state?

What policies have been

implemented to address the

needs of the displaced?

What, if any, new industry sectors

have located in your state?

With workforce development andjob creation a top priority in 2010,

one commonality iterated by all

state-level representatives is the

necessity to build workforces that

align workers skills with the needs

of employers. For some states, that

means collaborating with community

colleges on retraining programs. In

several states, it means a focus on

green jobs and technology. For one

state, it means retraining blue-collar

workers for white-collar jobs.

Finally, several programs that

help people re-enter the workplace

are highlighted. These programs,

and others like them, may be of

interest to nancial institutions.

Investments or loans made to

these types of organizations are

eligible for consideration under the

Community Reinvestment Act

(CRA) as they support economic

development, primarily in low- and

moderate-income communities.

Allen North is vice president in the

Federal Reserve Bank of St. Louis

Banking Supervision and RegulationDivision, with responsibilities for

Consumer and Community Affairs.


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By Jean Morisseau-Kuni

The State of Illinois takes aholistic approach toworkforce development

through cohesive programs thatbalance economic development,human services, trainingprograms and technology. Adivision within the Departmentof Commerce and EconomicOpportunity, the states lead

agency responsible for economicdevelopment, ensures thatworkforce development is animportant component of thestates commitment to economicgrowth and job creation.

A large, populous state, Illinoishas vastly diverse regions withinits borders. Chicago, the nations

third-largest city, is located inthe north; the middle of the stateis home to Springeld, the statecapital, and a thriving agricul-tural economy that continuesinto the southern region wherethe Shawnee National Forestand a number of wineries havecreated an economy dependent

on agriculture and tourism.Meeting the needs of those seek-ing employment and employersin such diverse economies andgeographies would be next toimpossible if standard trainingprograms were applied acrossthe entire state. However, work-force development in Illinois is

as diverse as its geography.

One Size Does Not Fit All

The state government set up26 Workforce Investment Boards

(WIBs) that provide small,regional approaches to workforcedevelopment. Each WIB is com-posed of local leaders from busi-ness and government sectors,including manufacturing, tech-nology, service and education.Each WIB has the mission ofensuring that programs offeredin their region meet current andfuture local needs.

WIBs carry out their mis-

sion through a hand-in-gloverelationship with local commu-nity colleges. The communitycolleges provide job trainingand education programs to meetthe ever-changing needs of thecommunity, employers and jobseekers. WIBs and communitycolleges currently are collaborat-

ing to increase programs that willmeet the growing demand for jobskills in green technology.

When someone comes tous looking for employment, welook at the whole person, saidRick Stubbleeld of the Mid

America Workforce InvestmentBoard (WIB 24). Mid America

serves ve Illinois counties inthe St. Louis MSA: St. Clair,Monroe, Randolph, Clintonand Washington.

Daily we work with jobseekers who have multiple bar-riers that keep them from beingdesirable employees, includinglack of a primary school educa-

tion, homelessness, addictionsand mental illnesses. Before weplace that person in a trainingprogram or with an employer, wehave to address the barriers. Our

goal is to ensure that when anindividual is placed in a job, theyare capable, both physically andmentally, to thrive and becomean asset to the employer,Stubbleeld said.

Job seekers access workforceservices through several portals.Traditional walk-in Career Cen-ters are located in every countywhere counselors guide clientsthrough the job-search process

and help them nd training andhuman service programs. Jobseekers who prefer an electronicapproach to their search canaccess WorkNets, an onlinesystem that matches skills to jobopenings, ideas for new careerpaths and training programs.

Workforce development has

been challenging in Illinois as theranks of unemployed continueto grow in the slowing economy.Many of the newly unemployedhave families to support andneed to nd a new career pathquickly. This issue has caused

WIBs and community collegesto retool some existing programs

and search for new programs thatare completed within three to sixmonths while continuing to offertraditional training programs.

Illinois also offers training pro-grams for youths through publichigh schools. Tutoring, mentor-ing and soft-skill programs helpthem hone skills for sustain-

able employment. WIBs alsowork with employers to createprograms that offer summer jobsand internships to high schooland college-aged youth.

Workforce Development

in a Bi-State Region

WIBs in both the Illinoisand Missouri St. Louis MSA

are active members of the

St. Louis Regional Chamber and

Growth Association (RCGA).

Working with businesses on

both sides of the Mississippi

River, the RCGAs core mission

is to make the bi-state region a

desirable place to live and work

and to position the region to

grow a strong economy with

high employment. Currently,

the RCGA is bringing WIBs

and community college training

administrators from Missouri

and Illinois together to discuss

the need for a regional work-force development collaborative.

As a region, both states also

need to reposition themselves

to attract new businesses and

expand existing businesses by

raising the capacity of the local

talent pool. We need to ensure

that talent is part of the equationand not an afterthought, said

Dick Fleming, RCGA president.

He also said St. Louis is posi-

tioning itself to become a green

belt economy by participating

in the Rockefeller Brothers Fund

pilot Greenprint program.

Jean Morisseau-Kuni is a commu-

nity development specialist at the

Federal Reserve Bank of St. Louis.

illnos:A Holstc Aroach to Workforce develoment


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By Jean Morisseau-Kuni

Kathy Lambert openedDress for SuccessMid-west, a chapter of Dress

for Success Worldwide, in theSt. Louis area to help womenliving in poverty obtain the basicskills and clothes they neededwhen seeking employment. Whatshe quickly realized was thather clients wanted and deserved

more than interview skills andpresentable clothing in order toobtain a minimum-wage job.

Kathy listened as her clientsshared their stories of beingbeat down by a system thatdid little to help them moveout of poverty. She knew thatuntil these women believed in

themselves, they would neverbecome self-sufcient, nan-cially stable and able to providea better life for their children.

Her desire to help her clientseventually led Kathy and herhusband, Brad, to create Connec-tions to Success (CtS), whichthey co-direct. As the nonprot

has grown, now helping bothmen and womenmany ofwhom are ex-offendersCtSsmission has remained the same:to help clients develop a planand access the resources theyneed to become self-sufcient.

The organization offers a vari-ety of programs. At the start,

every CtS client goes through anintensive assessment program tohelp them identify their strengths,weaknesses and desires. CtSstaff spend one-on-one time

with clients to get to know them

as individuals. Their goal is tohelp clients nd their niche, bothin CtS programs and in life.

Everything that we do isaddressing our goal of helpingour clients to succeed, Bradsaid. We look at every aspectof our clients lives in order toguide them into programs that

will best benet them.One of those programs is

Pathways to Success, whichhelps ex-offenders adapt to lifeoutside of prison and to re-enter the workforce.

An indicator of the programssuccess is the success of its clients.To date, Pathways to Success has

helped more than 300 ex-offend-ers. Kathy said 70 percent ofex-offenders who complete theprogram receive living-wage

job placement versus thenational average of 40 percent.The recidivism rate also dropsto 16 percent for CtS graduatesversus 44 percent nationally, she

said. Pathways to Success waschosen as a model program bythe U.S. Department of Justice,which said it saves the Bureauof Prisons approximately

$3 million dollars annually.

Taxpayers also benet fromother CtS programs that pre-pare participants for the work-ing world, encourage them toseek higher educational experi-ences and help them becomeless reliant on taxpayer-paidprograms like Medicaid andsubsidized housing. Those

programs include:Professional Womens Group

Women learn proper businessetiquette, dress and skills thatwill help them succeed at work.

Wheels for SuccessThisprogram helps clients obtain avehicle after they complete theirtraining program. While many

of the vehicles are donated, CtSworks with local auto dealersto obtain affordable vehicles forclients. The Wheels for Successprogram has been instrumentalin helping many clients keeptheir jobs, Brad said. Its justcommon sense: If you donthave a way to get to work, you

will lose your job.Faith and Family ConnectionsThis faith-based mentoringprogram works with churchesthroughout the metropolitan

area to help clients build posi-tive inuences in their lives bysurrounding them with peoplewho care about them.

Leading Ladies LeadershipGraduates of the Professional

Womens Group give back toCtS by acting as mentors andleading discussion groups fornewcomers.

Both Lamberts say they owetheir success to their staff and

to their board of directors.We want the best and

actively seek staff and boardmembers who bring somethingwe need to the table, Kathysaid. Our board of directors isan intricate part of our organi-zation and not only appreciatesbut understands our mission.

Using their diversely differentbackgrounds and talent, boardmembers meet regularly at fullboard meetings and in smallercommittees, providing businessand program expertise thatsupport the nonprots mission.

The staff at CtS are hard-working, innovative and

caring, Kathy said. That kindof caring allows CtS to helppeople become productive,tax-paying citizens who canbelieve in their dreams and inthemselves, Kathy said.

For more information, visitwww.connectionstosuccess.org/index.php.

Jean Morisseau-Kuni is a commu-nity development specialist at theFederal Reserve Bank of St. Louis.

Fnn Connectons n the greater t. Los Area

Graduates of a recent Pathways to Success program.



By Faith Weekly

The Kentucky WorkforceInvestment Board, chargedwith creating a statewide

workforce training and develop-ment plan, is undergoing a totalreorganization and will have anew strategic plan by late spring.

Joseph Meyer, acting secretaryof Kentuckys Education and

Workforce Development

Cabinet, outlined the priorities:rst, align the states workforcesystem and education standards;second, align workforce pro-grams with the states economicdevelopment goals; third, improveand simplify the system; and,fourth, improve overall cus-tomer service.

In Kentucky, workforcedevelopment activities arespread throughout many gov-ernment agencies, and a varietyof programs lie outside thedirect control of the WorkforceDevelopment Cabinet.

Unemployment has climbedsteadily during the recent nancial

crisis. Based on gures fromlast October, sectors that havebeen most affected in Kentuckyare construction, manufacturingand service. Construction lostthe highest number of jobs: adecrease of 21 percent or 17,600

jobs. The manufacturingindustry lost 32,900 jobs, a

14 percent decrease.Many of the manufacturing joblosses were seen in Kentuckyslarge automotive industry. Thestate is home to Toyota and

Ford plants and a GM plant thatproduces the Corvette. Forty-one of Kentuckys counties arelisted as trade impacted byautomotive industry restructuring,meaning there was a loss of jobsresulting from internationaltrade impacts. Twenty-four ofKentuckys counties are consid-ered signicantly trade impacted.The state has received assistancethrough the Community Trade

Adjustment Assistance Program,part of the American Recoveryand Reinvestment Act of 2009.The program is intended to helpcreate and retain jobs by providingproject grants to communitiesthat have experienced or arethreatened by job loss resultingfrom international trade impacts.

The only sectors that experi-enced job growth in Kentuckywere education and health care.

The reorganization of theWorkforce Investment Boardwill yield a long-term impact,Meyer said. The aim is toprepare Kentuckys citizens forsustainable jobs in the future.

The reorganization will createa much more business-drivensystem. Meyer foresees theestablishment of a how to runyour own business programthrough Kentuckys One StopCenters. The programs willstart in the summer.

There are some service busi-

nesses that people can get into ifthey have support and guid-ance, so we want to place a verystrong statewide effort on entre-preneurshiplarge and small.

We dont foresee a signicantreduction in unemployment inthe state or growth in employ-ment opportunities. Its going tobe a slow recovery, so we thinkthese sorts of services will bevery valuable, Meyer said.

The Fort Knox Base Realign-ment and Closure reorganiza-tion will consolidate the ArmyHuman Resource Commandwith approximately 3,100

mostly civilian personnel at FortKnox, Ky. Its expected thatbetween $800 million and $900million worth of constructionwill take place at Fort Knox forthe BRAC reorganization andfor base modernization projects.The BRAC reorganization atFort Knox will be completed by

September 2011. The addi-tion of the Human ResourceCommand at Fort Knox willadd several thousand white-collar jobs. The local marketdoes not have a sufcient poolof qualied workers to ll those

jobs, so it is anticipated that aninux of out-of-state workers

will follow their jobs from otherstates, Meyer said. In responseto this, a consortia of collegesand trainers in Radcliff, Ky., willhelp train Kentuckians with theskills needed to qualify primar-ily for white-collar jobs. Havingpeople at the appropriate skilllevel is an ongoing concern for

state ofcials who see the poten-tial for defense industry contrac-tors locating in Kentucky.

Clean and renewable energyis an industry that has recently

come to Kentucky. Energyis a huge part of the Kentuckyeconomy in the eastern part ofthe state as well as the westernpart of the state, Meyer said.

The state has plans todevelop a new training pro-gram for green jobs as partof its economic developmentand workforce developmentstrategy, although they are stillin the early stages. The Ken-

tucky Community & TechnicalCollege System is developinga curriculum for green jobs.Kentucky currently is retrain-ing plumbers and pipe tters ingreen and energy efciencystandards. Workers are beingprovided with chemical engi-neering training and certica-

tions for a new solar cell plantin Tennessee. Another train-ing program is being startedfor smart grid technology, andKentuckys Finance Cabinet hascreated a clean energy corps toprovide training for energy audi-tors for a statewide weatheriza-tion program.

Meyer said Kentucky is chal-lenged because it is a state withnumerous regional economies asopposed to statewide econo-mies. The state has a total ofseven regions that are multistateeconomies. Only a few of theeconomies are totally connedto the state.

Faith Weekly is a communitydevelopment specialist at theLouisville Branch of the FederalReserve Bank of St. Louis.

entcky:tratey promotes ntrerenersh



By Faith Weekly

An innovative partner-ship between NortonHealthcare and Making

Connections Louisville providesresidents of the citys mostunderserved neighborhoodswith entry-level positions andthe opportunity to advance inone of the most in-demandelds today.

Making Connections is a10-city national initiative sup-ported by the Annie E. CaseyFoundation and other localfunders. The goal of MakingConnections Louisville is toclose the gaps in housing, edu-cation and jobs and to improvethe quality of life for families

residing in four inner-cityneighborhoods: Smoketown,Shelby Park, California andPhoenix Hill.

About six years ago, MakingConnections Louisville broughttogether different stakeholdersto discuss how to close thosegaps in housing, education and

jobs. From that process, a focuson sector-based employmentemerged. Health care (speci-cally, Norton Healthcare) andlogistics (specically, UPS) wereidentied as sectors that offeredopportunities for entry-levelpositions with potential foradvancement and strongbenets packages.

In 2005, Making ConnectionsLouisville launched a four-month pilot program. Onlyseven employees were initially

employed in the Making Con-nections Louisville neighbor-hoods with those companies.Subsequently, a goal of employ-ing 40 residents was set.

Although residents were ndingjobs, many did not retain thembecause they lacked an under-standing of how a huge opera-tion, such as a hospital, actuallyworks. What the coordinatorsdiscovered was that participantswere losing jobs for reasons thatcould have been addressed in

pre-employment and post-employment coaching. Today,even before applying for aposition at Norton Healthcare,participants receive pre-employ-ment coaching.

Norton Healthcare was alreadyin the community and neededa skilled workforce for entry-level positions. For the pastfour years, Norton Healthcareemployee Michelle Williams hasworked in its Ofce of Work-force Development as manager

of the Making ConnectionsLouisville program. Her roleas career coach means thatshe helps Making ConnectionsLouisville employees nd child

care, establish career goals andnavigate educational opportu-nities within Norton Health-care to prepare for continuingeducation and health-relatedcareer opportunities. She alsois responsible for introducingthem to all of the benets thatNorton Healthcare offers its

employees, including nancialassistance toward homeowner-ship and computer purchases.

During the rst 30 days ofemployment, Williams checksin weekly with the new hires.During the second 60 days ofemployment, she checks inevery two weeks and monthlywith the manager.

Michelles job is so importantbecause she is playing manydifferent roles: Norton navigator,workforce coach, benets spe-

cialist. She is steeped in Nor-ton culture as well as networkculture and can really pinpointwhat is needed, said Dana

Jackson, Making ConnectionsLouisville site coordinator.

Jackson emphasized that theprogram is based on a legitimatebusiness need for workers to llentry-level positions in the dietaryand housekeeping departmentsand as patient care associates.

Through the program, 57 peopleare now employed. The chal-lenges are to keep participantsengaged in other areas of theMaking Connections networkand to make sure they aretaking advantage of companybenets, she said.

So success is not measured by

simply I have a job, Jacksonsaid. Norton is an outstandingpartner. What I like aboutNorton is that at various levelswithin a large organization,people are thinking about howthey can implement the MakingConnections initiative. Theyhave taken it (Making Connec-

tions), theyve embraced it andembedded it in their organiza-tion. In a lot of ways, it is intheir DNA, Jackson said.

Last summer, Norton expandedthe program into additionalunderserved neighborhoods.

Faith Weekly is a communitydevelopment specialist at theLouisville Branch of the FederalReserve Bank of St. Louis.

partnersh Creates pelne to Jobs for Losvlle esents

After completing the Making Connections Louisville program, Shavelle Gordon (left) founda job in housekeeping at Norton Healthcare and support from Norton manager MichelleWilliams (right). Gordon has since become a nursing assistant and is studying to be a nurse.



By Kathy Moore Cowan

Matt Kisber, commis-sioner of the TennesseeDepartment of Com-

munity and Economic Develop-ment, admits that Tennesseehistorically is not the rst statethat comes to peoples mindswhen they think about green

jobs. However, the Pew Centeron the States ranks Tennessee as

one of the three fastest-growingstates in the country in greencollar jobs. Between 1998 and2007, green jobs in Tennesseegrew at a rate of 18.2 percent,doubling the national rate of9.1 percent. From all indica-tions, more growth in thisindustry is expected.

Memphis BioWorks Foundationrecently received a $2.9 milliongrant for job training in energyefciency and renewable energyoccupations; and, last year, thegovernor announced the devel-opment of the West TennesseeSolar Farm (Haywood County),a ve-megawatt, 20-acre power

generation facility. To makesure Tennessee maintains aleadership position not just inmanufacturing of products butin the innovation that takesplace, the Tennessee SolarInstitute is being developed inEast Tennessee as a partnershipbetween the state, the Universityof Tennessee and Oak RidgeNational Laboratories.

Another new industry in Ten-nessee is high-value distributionand logistics, where a company

brings in and warehouses a par-tially completed project, com-pletes it based on the customersdemands, and then distributesit to the customer. The medicaldevice manufacturing indus-try is one example. Memphishas become the center of thisindustry in the country. Also,headquarters function activityhas increased. More companiesare moving their divisional,

regional and global headquartersto Tennessee. Almost 50 cor-porate headquarters have beenrecruited to the state in the lastseven years. The state also hasbeen successful in expanding itsautomotive industry, landing a

Volkswagen automotive manu-facturing plant in Chattanooga

that should begin productionnext year.

To strengthen the states abil-ity to recruit new companies,the governor established the FastTrack process, a multi-depart-mental procedure to respond tocompanies interested in comingto Tennessee. The commis-

sioners of Labor and WorkforceDevelopment, Community andEconomic Development, Educa-tion and Human Service makeup the Jobs Cabinet, where thesedepartments work together togenerate a proposal within 24hours of a companys request.This has helped Tennessee besuccessful despite the currenteconomy, Kisber said.

Although there have beensuccesses in the state as a whole,there are a number of regions

that have lost businesses. Forexample, a General Motors Plant(formerly Saturn) in Middle Ten-nessee closed, resulting in a lossof 5,000 jobs.

To address the needs of dis-placed workers, Susan Cowden,administrator of workforcedevelopment in the Depart-ment of Labor and WorkforceDevelopment, said the statehas extended unemployment

benets and conducted outreachto the unemployed, encourag-ing them to get retraining inhigh-growth sectors such asbiomedical, energy, health careand information technology.The American Recovery andReinvestment Act (ARRA) fundshave enabled the state to pay for

additional classes from approvedtraining providers in instanceswhere classes are full and wherenew classes are needed foremerging industries. As theunemployment rate has doubled,the funds have allowed the stateto double the number of peoplereceiving workforce services.

In Perry, Lauderdale and Han-cock counties, some of the hard-est hit by unemployment, thestate has implemented the sub-sidized employment program,where people work in the pri-vate and public sectors on jobsthat are 100 percent subsidizedwith public monies. Fundscome from the Temporary

Assistance for Needy Families(TANF) program administeredby the Department of HumanServices. Additional funds from

ARRA have subsequently been

used, requiring less stringent

eligibility criteria and result-ing in more displaced workers

being helped. Cowden antici-

pates using this model in other

economically depressed counties

where the unemployment rate is

high and the primary industry

has closed.

West Tennessee has his-

torically had low educational

attainment levels relative to the

rest of the state and the country

and persistently high levels of

unemployment. Education is

by far the most important aspect

in making a decision where to

invest capital and locate jobs

because todays workers have to

do more than just have a strong

back, he said. The state has

made signicant improvements

in education in the last seven

years to prepare Tennesseans

for the jobs of tomorrowmost

notably the establishment of a

pre-kindergarten program, rais-

ing achievement standards, reor-

ganization of higher education,

and research enhancements to

the University of Tennessee and

other higher education facilities.

Kathy Moore Cowan is a senior

community development special-ist at the Memphis Branch of the

Federal Reserve Bank of St. Louis.

ennessee:Focs is on green Jobs, Fast rack ervce



By Teresa Cheeks Wilson

In 2007, Tennessee welfarerecipients became subject tostrict federal guidelines that

limited their welfare eligibilityand required them to work ortake part in activities that wouldlead to full-time employment. Anew mandate set a lifetime maxi-mum of 60 months of publicassistance. To help unemployed

welfare recipients make the tran-sition back to work, the statesDepartment of Human Servicesturned to SEEDCO, a nationalnonprot with extensive experi-ence in developing and oversee-ing welfare-to-work programs.

One of the programs SEEDCOadministers is Career Steps, a

performance-based workforcedevelopment program thatprovides job training, placementservices and ongoing support forShelby County residents transi-tioning from public assistance toeconomic self-sufciency.

Career Steps is a joint venturebetween SEEDCO, the Tennessee

Department of Human Services,United Way of the Mid-South andlocal nonprot agencies. We usepractical, effective strategies toaddress the challenges confrontingindividuals who are strugglingto leave poverty and achieveeconomic progress, said SondraHowell, career developmentmanager of SEEDCO.

The programs primary objec-tives are to help unemployed orunderemployed public assistancerecipients become economically

self-sufcient and to work withMemphis regional employers tomeet their employment needsand strengthen the local economy.The Career Steps program

assists thousands of ShelbyCounty residents in gaining thenecessary skills needed to besuccessful in the workplace.

Services offered are: Job readiness and referrals:

Trained employment coun-selors work with participantsto assess job readiness and

help them determine careerpathways. Counselors identifyand address possible barriersto employment, such as lackof transportation, the needfor appropriate work cloth-ing and mental health orsubstance abuse issues.

Training and professionaldevelopment: Participantswith limited or no workplaceexperience receive a widerange of training and skills-development opportunities.

The Career Steps programplaces entry-level workersin temporary, unpaid jobassignments (internships)averaging 20 to 30 hours per

week and allowing them toimprove their employmentprospects. At any giventime, there are approximately1,500 participants in theCareer Steps program.

Job development and place-ment: Job opportunities areidentied and workers are

placed in positions that usetheir skills and background.In 2009, more than 300 par-ticipants transitioned directlyinto employment from theCareer Steps program.

Transitioning from welfare:SEEDCO continues to workwith participants after theyare employed by providingsupport in connecting themto transitional benets suchas health care, food stampsand child care assistance.

SEEDCO works in partnershipwith the Regional MemphisChamber of Commerce toaddress the training and hir-ing needs of the high-growthlogistics, health care andretail/hospitality sectors ofthe community.Services provided to employ-

ers include: Stafng and retention at no

cost to the employer: Entry-

level workers are placed intemporary, unpaid job assign-ments to help employers llopen positions and connectthem to skilled job seekers.Once an individual is hired,SEEDCO continues to workwith that individual for ninemonths, ensuring they have

support services and trainingneeded to successfully meetthe demands of the job.

Customized training: Workinghand-in-hand with industryemployers, SEEDCO developscustomized training that pre-pares the workforce for specicpositions within a sector.

Connection to businessincentives: SEEDCO helpsemployers take advantage offederal tax credits and stateinitiatives that provide bonuspayments to companies thathire, train and retain thoseleaving public assistance.

Teresa Cheeks Wilson is a com-munity development specialist atthe Memphis Branch of the FederalReserve Bank of St. Louis.

ennesseeans ake tes from Welfare to ew Careers

Career Steps, a job training program, offers Tennessee residents computer training andhelp with developing a resume.


10/120l k G l e e r s a C m m T e s

The region served by the Federal Reserve Bank of

St. Louis encompasses all of Arkansas and parts of Illinois,

Indiana, Kentucky, Mississippi, Missouri and Tennessee.

spaG giNLoan Fund Designed To Boost

Helena-West Helena Revitalization

Southern Bancorp CapitalPartners, the nonprot develop-ment afliate of Southern Ban-corp, has launched a new loanfund with the goal of encourag-ing revitalization and growthin downtown Helena-West Hel-ena, Ark. Funds can be usedto start a business, expand or

relocate an existing business,or buy or renovate a historichome. Historic housing loanscan be used for the purchase orrenovation of historic housingor commercial buildings in thedevelopment district. Propertymust be listed or eligible forlisting in the National Register

of Historic Places.Small business loans can be

used to nance a new business,expand an existing business,develop loft apartments orsupport activities that stimulatedowntown revitalization.

Loansmust berepaid inseven to 20 yearsat interest ratesranging from 3 percentto 4 percent. Borrowers do notneed to be residents of PhillipsCounty to qualify. Credit coun-seling is available for borrowerswho do not yet qualify.

The Downtown Loan Fund issupported by a program-relatedinvestment (PRI) from the Wal-ton Family Foundation.

Contact Steve Toney [email protected] formore information.

Mississippi State Creates

Workforce UniversityThe Research and Curriculum

Unit (RCU) at Mississippi StateUniversity has established theMississippi Workforce University,a research and outreach orga-nization dedicated to develop-

ing the states workforce andachieving employers organiza-tional goals. The RCU studiesworkforce development in Mis-sissippi and connects educationand training to the workforceand workforce providers.

In addition to developingtraditional materials suchas manuals and videos, theworkforce development teamhas created an online work-force education resourceportal that provides access toe-learning materials, curriculaand other training materials

and resources. Customizedtraining modules for the devel-opment of industry-specic,proprietary and nonproprietarytraining modules are availablein a manual, video or technol-ogy-based format. Standard-ized, generic training modulesinclude blueprint reading, basic

math, precision measurementand mechanical maintenance.Technology-based trainingtools, such as podcasts, wikis,blogs, screencasts, demonstra-tion tools, collaboration toolsand webinars also are available.The universitys Media Library/Media Center is the connectionto its training materials as wellas those found in other univer-sity libraries. Certied trainersare qualied to offer FranklinCovey Focus, HRDQ Flight

from Savo Supervisory Skillssimulation and Meyers-BriggsType Indicator.

Located in Starkville, Miss.,Mississippi State Universityworks closely with the Mis-sissippi Workforce Education

Program at the State Board ofCommunity and Jr. Colleges,the Mississippi Department ofEducation, the 15 Mississippicommunity and junior colleges,statewide training providersand Mississippi companies.

For information, contactCathy Davis, coordinator, or

Lemond Irvin, project man-ager, at 662-325-2510.

Fed Web Site, Pub Explain

Credit Card Rules

Credit card rules that took effect Feb.

22 are the topic of an interactive web site

and a new publication from the Federal

Reserve. The web site and publication are

designed to help consumers understand

new protections available under these rules.

The publication, What You Need to

Know: New Credit Card Rules, is available

on a printer-friendly web page: www.feder-

alreserve.gov/consumerinfo/wyntk_credit-

cardrules.htm.The new web site, which can be found

at www.federalreserve.gov/creditcard,

explains how the rules affect credit card

users. Two interactive features will allow

consumers to learn more about the terms

and fees of credit card offers and about the

new features of their monthly statements.

In addition, basic facts about common

credit card options, interest rates and fees

are also provided. Consumers will nd a

glossary of common credit card terms for

quick reference.

The site also provides information

about common credit card problems,

such as lost or stolen cards.

Have you

Ad


11/12# T h e T e r e T a T w w w . s T l s F e . r G

BidgBridges is a publication of the Commu-nity Development Ofce of the FederalReserve Bank of St. Louis. It is intendedto inform bankers, community develop-ment organizations, representatives of

state and local government agencies andothers in the Eighth District about cur-rent issues and initiatives in communityand economic development. The EighthDistrict includes the state of Arkansasand parts of Illinois, Indiana, Kentucky,Mississippi, Missouri and Tennessee.

Glenda WilsonAssistant Vice Presidentand Managing Editor314-444-8317

Yvonne SparksSenior Manager314-444-8650

Linda FischerEditor314-444-8979

Lyn HaralsonSpecial Edition Contributor501-324-8240

Community Development staff

St. Louis: Matthew Ashby

314-444-8891Jean Morisseau-Kuni314-444-8646Eileen Wolngton314-444-8308

Memphis: Teresa Cheeks901-579-4101Kathy Moore Cowan901-579-4103

Little Rock: Lyn Haralson501-324-8240

Amy Simpkins501-324-8268

Louisville: Lisa Locke502-568-9292Faith Weekly502-568-9216

The views expressed in Bridges are notnecessarily those of the Federal ReserveBank of St. Louis or the Federal ReserveSystem. Material herein may be reprintedor abstracted as long as Bridges is credited.Please provide the editor with a copy of

any reprinted articles.

Free subscriptions and additional copiesare available by calling 314-444-8761 orby e-mail to [email protected].

Follow the St. Louis Fedon Twitter and YouTube.

Twitterhttp://twitter.com/stlouisfed

YouTube

http://youtube.com/stlouisfed

APiL

29Closing the Gap: Improving Low-Income

and Minority Community Access to

WealthSt. Louis

Sponsor: Metropolitan St. Louis Equal

Housing Opportunity Council

www.ehocstl.org

MAY

1St. Louis Regional Neighborhoods

ConferenceSt. LouisSponsors: St. Louis Association of

Community Organizations, Harris-Stowe

State University and SIUE Institute for

Urban Research

618-650-5254

www.siue.edu/iur

3-7NeighborWorks Training InstitutePhoenix

Sponsor: NeighborWorks

www.nw.org

6-7Improving Quality of Life through

Comprehensive Community Economic

DevelopmentIndianapolis

Sponsor: Indiana Association for Community

Economic Development

(additional training through August)

317-920-2300

10-13CDFA Development Finance

SummitPortland, Ore.

Sponsor: Council of Development

Finance Agencies

www.cdfa.net

10-13National Microenterprise Conference &

Training InstituteArlington, Va.

Sponsors: Association for EnterpriseOpportunity and Small Business

Administration

703-847-7760

http://microenterpriseconference.org

12-14Rethink. Recover. Rebuild. Reinventing

Older CommunitiesPhiladelphia

Sponsor: Federal Reserve Bank of

Philadelphia

www.philadelphiafed.org/community-development/events

JUN

9-10Housing Policy: Who Pays, Who Plays, and

Who Wins?Cleveland

Sponsor: Federal Reserve Bank of Cleveland

www.clevelandfed.org/Community_

Development/events/PS2010/Index.cfmwww.cfsinnovation.com/home

9-11Underbanked Financial ForumMiami

Sponsor: Center for Financial

Services Innovation

www.cfsinnovation.com/home

9-12Conference on Serving the Underserved

and Latino Credit Union Conference

Pittsburgh

Sponsors: National Federation of Community

Development Credit Unions and the Network

of Latino Credit Unions and Professionals

www.cdcu.coop

29Housings Great Fall: The Effect of

House-Price Declines on Homeowner

EquityLittle Rock, Ark.

Sponsor: Federal Reserve Bank of St. Louis,

Little Rock Branch

501-324-8296

www.stlouisfed.org/community_

development/events

CALNdAReader Poll

The Federal Reserve is interested in

workforce development and its impact

on the economy. What is your commu-

nitys biggest workforce challenge?

Keeping young people in the area to

work in local businesses.

Attracting people outside the com-

munity to work in local businesses.

Lack of workforce/affordable housing.

Loss or lack of a major employer.

Lack of skills to ll existing work

opportunities.

Take the poll at www.stlouisfed.org/

community_development/. Results are

not scientic and are for informational

purposes only.

The previous poll focused on credit

reports and asked: How often do you

check your credit report? Based on

50 responses:

32 percent said once every few years

30 percent said once a year

20 percent said never

18 percent said several times a year


12/12

PRSRT STD

U.S. PoSTage

paid

ST. LoUiS, Mo

PeRMiT No. 444

>>>Only Online

In addition to the print version,each issue ofBridges offers articlesthat are exclusively online. Thesearticles expand on topics in the cur-rent issue. Online articles for thespring issue ofBridges are relatedto workforce development. They are:

>>> What is WorkforceDevelopment?

>>> Career ReadinessCerticate MeasuresEssential Skills

>>> Accelerated Job TrainingSeen as Key to MissourisRecovery

>>> Arkansas: An IntegratedWorkforce DevelopmentStrategy

in Community Development

Human Capital and the Future

June 24, 2010

Topics: the development of human

capital through entrepreneurship,small business development, asset

development, wealth creation andnancial literacy.

Social Capital and the Future

August 26, 2010

Topics: strategies for implementing

innovation, meeting and group facili-tation designs, social entrepreneur-

ship, and ideation and collaboration.

Financial Capital and

the FutureNovember 10, 2010

Topic: nonprot anddevelopment nance.

These videoconferences also will be broadcast to any group that has videoconferencing capabilities and

registers to participate as a local discussion site. For information, contact Matthew Ashby at 314-444-8891

or go to www.stlouisfed.org/community_development

New Voices, Fresh IdeasA public policy dialogue serieson the future of community development

Sponsor: Federal Reserve Bank of St. LouisLocations: St. Louis, Little Rock, Louisville, Memphis

P.O. Box 442

St. Louis, MO 63166

STLOUISFED.ORG

Bridges - Spring 2010

Documents

Transcript of Bridges - Spring 2010