Trends in Workforce Development: Leveraging State Economic Development Resources to Create Job Opportunities for

People with Disabilities

November 10, 2009

Kathy Krepcio, Executive Director

John J. Heldrich Center for Workforce Development

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The NTAR Leadership Center

Established in September 2007 through a grant from the U.S. Department of Labor’s Office of Disability Employment Policy (ODEP).

A collaboration of partners with expertise in workforce and economic development, disability employment, financial education and asset building, and leadership development.

Created for the purpose of building capacity and leadership at the federal, state, and local levels to enable change across workforce development and disability-specific systems that will increase employment for adults with disabilities.

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Objective

Provide an introduction to State Economic Development Agencies and Activities

• What is the mission of state/local economic development agencies (EDAs)?

• What tools and techniques do they use to do their job?

• Where are opportunities for partnerships?

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Mission of Economic Development Agencies (EDAs):

To provide assistance to public, private and non-profit businesses that want to locate within a state, start a business, or expand their operations

Objective – grow the state’s economy, create jobs, improve the state’s infrastructure to support economic growth

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Tools and Techniques

Financial Tools

• Designed to give firms access to low interest direct loans or financing through bonds, loan guarantees, lines of credit (all usually with lower private market interest rates) and tax incentives

• Different from grants in that there is an expectation of repayment and a return on investment

• Rationale – to help firms to:• Locate/Move into the state• Remain in the state• Expand business operations within the state• Start a new business venture

• Lending programs vary from state to state depending on factors important to the state

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Solutions to Advance Opportunities for People with Disabilities: What Can States Do?

Target companies that specifically agree to recruit state/local residents including but not limited to people with disabilities

Give favorable consideration for financing to firms that look to meet state economic growth strategies, state policy objectives, and state workforce development goals and needs – providing they meet other standard qualifications such as ability to repay

States can pursue legislation encouraging state EDAs to set target goals for companies to recruit a diversified workforce if a firm seeks state EDA financial support

States have the ability to put together financial packages that can attract firms that have established programs or histories of recruiting and hiring people with disabilities

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Tools and TechniquesTax Incentives and Credits

• Tax incentives are intended to create jobs by rewarding firms that relocate to or remain in the state.

• Tax credits or exemptions are usually applied against either corporate business taxes or sales tax

• Typically linked to the number of jobs created or retained by the firm, to the purchase of manufacturing equipment, to R&D or technology investments, or to the location of a business in a particular area of the state (advance state policy and/or economic objectives)

• May be offered to particular industries the state is attempting to cultivate or attract (such as renewable energy, biotechnology)

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Solutions to Advance Opportunities for People with Disabilities: What Can States Do?

• Establish State Tax Credit programs that encourage firms to recruit and hire people with disabilities (Maryland, Tennessee, and New York)

• Offer state tax incentive priorities to firms that agree to recruitment individuals with disabilities, or to businesses owned by an individual with a disability

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Tools and Techniques

Training and Technical Assistance Tools

• Offer information and provide guidance to help businesses navigate through government regulations and requirements

• Provide business development resources, expertise and support services

• Offer small business incubators for start up businesses in areas of economic importance (e.g., lab space, commercial kitchen space, office space, etc)

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Solutions to Advance Opportunities for People with Disabilities: What Can States Do?

State EDAs can assist nonprofit organizations with low cost financing for land and building acquisition, equipment, furniture and fixtures, refinancing of existing, high interest conventional debt or access to other capital to build and/or expand training centers or small business incubators

State EDAs can assist nonprofit organizations with pre-development loans and business resource expertise for social business enterprise support

State EDA can provide access to entrepreneurial and technical training to nonprofits and/or disability owned businesses or business start ups

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Tools and TechniquesPolicy Tools

• EDA activities generally targeted toward encouraging the growth and maintenance of specific types of business or aimed at growing the economies of specific communities. Firms or projects that meet state-established criteria are considered to be good candidates for receiving financial support packages from states

• Common State EDA Policy Criteria Categories• Location: e.g., firms that locate in distressed areas• Targeted Industries: e.g., advanced manufacturing, green energy• Diversity: Businesses that are owned by historically underrepresented

populations such as women and minorities• Social Responsibility: Firms that invest in ‘green’ buildings, urban

renewal, etc.

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Aligning Economic Development to Responsive State Workforce Solutions – Common Tactics

Creating partnerships between state workforce activities and employers that currently meet state economic growth objectives – ‘Sector’ strategies with key state industries/business

Developing a large, single coordinated state or regional worker education and skills training programs that supports state economic growth targets– Michigan “No Worker Left Behind”

Developing and financing customized training programs for new and existing workers in partnership with industries targeted for future economic development aid– Connecticut and Walgreens

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Aligning Economic Development to Responsive State Workforce Solutions – New Tactics

Enacting legislation to codify a priority consideration of state economic development and workforce development resources for individuals with disabilities

Partnering with state EDA to conduct targeted outreach to individuals with disabilities about state business start up technical assistance and training

Working with state EDA officials to facilitate partnerships between businesses known to EDA who are looking to expand and/or relocate in the state with public or non-profit agencies that work with job seekers with disabilities to assist with recruitment and outreach to potential workers

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Questions

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NTAR Leadership Center

For Further Information:

“Leveraging State Economic Development Resources to Create Job Opportunities for People with Disabilities” by Allison Kopicki, Kathy Krepcio, and Carl Van Horn

www.ntarcenter.org

Kathy Krepcio, John J. Heldrich Center for Workforce Development, Rutgers University

– krepcio@rutgers.edu or 732-932-4100, ext. 6306