Workforce Development: ½% Set-Aside for Training

ISAIAH acts from faith values to assure that public funding should have a direct and justly-distributed public benefit.  A series of Federal appropriations for highway construction have made one public benefit, namely, construction-skills training, available to un-employed and under-employed people. Currently, Minnesota receives approximately $1 billion/year in federal transportation funding.  Federal law permits ½% of these funds to be set aside by the state for training new workers into transportation construction jobs.  This would be about $5 million new dollars for training in Minnesota!  This benefit, however, is not automatic or even required of states.  ISAIAH’s campaign is working with the state and other stakeholders to assure maximum benefit from the law is gained and does flow to those who can benefit from this opportunity. Truly, this isn’t a training or even a jobs campaign; this is a careers campaign!

Background
Workforce development projects, such as the ½% set-aside, represent an important part of the overall effort to rebuild economically depressed areas. Our transportation system is our greatest ongoing public works project. Congressional analysis has shown that every $1 billion in federal infrastructure, such as highway construction, creates an estimated 47,500 jobs.  Transportation construction jobs, including apprenticeship positions, typically pay more than twice the minimum wage and include health and other benefits. 

Training new workers to be part of the transportation construction workforce opens a long term economic opportunity for them. Every year we invest in building or repairing our transportation system.  Every year we should invest in connecting our community members to opportunities to train for these jobs.  

Congress has recognized these facts and encourages states to take advantage of the opportunity.  The following is written into law:

It is the sense of Congress that Federal transportation projects should facilitate and encourage the collaboration between interested persons, including Federal, State, and local governments, community colleges, apprentice programs, local high schools, and other community-based organizations that have an interest in improving the job skills and low-income individuals, to help leverage scarce training and community resources and to help ensure local participation in the building of transportation projects.

 Missouri Example:  Success from our Sister Affiliate (MCU)

Metropolitan Congregations United (MCU), a St. Louis area Gamaliel affiliate, forged an agreement with the Missouri Department of Transportation, labor, contractors and other community groups to use the ½% training set aside in one of the largest highway construction projects in the state’s history. This precedent-setting agreement was signed in June 2006.  It is a model that Gamaliel groups around the country, including ISAIAH, are campaigning to replicate.

 ISAIAH’s Campaign – Recruitment > Training > Living-wage Jobs

Our goal is to negotiate an agreement in Minnesota for the 2007 construction season that equals or exceeds Missouri’s.  Over the last year, ISAIAH leaders from the Metro Equity Committee, in partnership with the caucuses, have established relationships with the parties key to a workable agreement.  This includes the Minnesota Department of Transportation, Construction contractors, labor in construction trades, and community focused groups that can help recruit and train the young people who can benefit from the program.

This initiative is good for Minnesotans.  Construction jobs pay living wages and there is a big need for new people because many current construction workers will retire soon and need to be replaced. 		  

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