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Wednesday, May 16, 2012
New Report report analyzes Chicago region’s public workforce development funding
The Chicago Jobs Council, in cooperation with the Workforce Boards of Metropolitan Chicago, produced a report analyzing the region’s public workforce development funding. This report is the first Chicago regional analysis of its kind, and builds on two earlier CJC reports (Big Shoulders, Big Challenges; 2005 and 2007) that analyzed public workforce development funding in the city of Chicago.
The report shows that — in spite of an economic imperative to invest in the skills of our workforce — only $290 per resident living in poverty is available from public sources for workforce development services.
The report highlights that 69% of the region’s public funding for workforce development services stems from federal sources – a noteworthy figure given the steep reductions in federal funding for workforce development over the past several years. Current Congressional recommendations to continue to reduce or eliminate workforce programs are alarming.
The report analyzes a broad spectrum of workforce development-related programs across three categories: Adult Education & Literacy; Job Readiness & Job Placement; and Occupational Training. The diversity of programs means residents with a range of workforce development and career advancement needs can be served. As a “second chance” system for those who have not yet succeed in traditional education systems, the region’s economy depends on the workforce development system to be responsive to the unique yet diverse needs of the lowest-skilled.
The report is a reminder that the metropolitan Chicago region has limited funding to ensure that all residents, especially those with the lowest skills, can gain skills and get on a career pathway. Advocates, policy makers, and other stakeholders must focus on investment in workforce services and training, so that no one is left behind in the current challenging labor market.
To download a copy of the report, click here. For more information on the report, its methodology, and findings, please contact Megan Winzeler, megan@cjc.net.
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Friday, April 13, 2012
New Report Shows the Power of Transitional Jobs to Reduce Poverty
A new report by the Social Impact Research Center at Heartland Alliance summarizes the findings from an Urban Institute report that models what the impact on poverty would be in Illinois if the state adopted 5 of the policy recommendations of the Illinois Commission on the Elimination of Poverty. One of the policies studied is the implementation of a statewide Transitional Jobs program – a policy that the Chicago Jobs Council and its Illinois Works for the Future partners proposed and the Commission adopted in its 2010 report.
The policies tested were:
- the creation of a statewide Transitional Jobs program
- an increase in the TANF cash grant,
- an increase in the TANF participation rate,
- an expansion of rental housing subsidies,
- new two year community college scholarships,
Amongst these policies, a statewide transitional jobs program of 40,000 people was shown to have the greatest impact in alleviating both poverty and extreme poverty. Implementing multiple policies at the same time has the greatest impact, but for workforce development advocates this is more evidence for increased investment in transitional jobs programs. Check out the report and spread it far and wide.
The Illinois Commission on the Elimination of Poverty, established in 2008, set a goal of cutting extreme poverty (which is defined as being below 50 percent of the poverty threshold) in half by 2015. For more on the Commission, click here.
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Monday, March 5, 2012
Illinois Budget Update
Governor Quinn gave his State Budget address on February 22nd where he laid out his plans and ideas for next year’s budget. The Governor spelled out the problems that Illinois is facing in terms of ballooning pension payments, rising Medicaid costs, and 8 to 9 billion dollars worth of unpaid back bills. Quinn’s FY 2013 budget calls for more belt tightening from the state and would spend $425 million less than in the current FY 2012 budget.
Quinn plans to cut the state’s costs by closing or consolidating 59 state facilities. Fourteen of the proposed closures include state operated developmental centers, mental health centers, and corrections facilities including Tamms “Super Max” prison and Dwight Correctional Center. People would be transferred from services in these institutions to community services or other correctional centers in the case of the prison closures.
The Governor was praised by legislative leaders for honestly calling out the problems that Illinois faces, but received criticism for not giving details on how he would deal with the two biggest drivers of the budget crisis, state pension costs and Medicaid. On those two topics, the Governor’s budget proposes no specific ideas, but has put together a bipartisan working group to look at the pension problem and will provide recommendations by April 17th. He further called on the legislature to stay in town until the hard work is done to address these issues and put Illinois on a more stable course.
In the meantime this past Wednesday, the House Revenue Committee voted on a resolution to use $33.7 billion as the revenue number for the amount of money that can be spent this year in the budget. This number is $200 million dollars less than the one that the Governor used to design his budget proposal. This results in another $200 million in cuts on top of the $425 million in cuts that came from the Governor’s budget. The good news is that the Revenue Committee passed a joint resolution which now heads over to the Senate. If they concur, both chambers will have agreed upon a baseline number with which to start the appropriations process. This will make it easier to advocate for funding levels for programs if both chambers are agreeing on the same top line budget numbers.
Next week (March 8th) the Revenue Committee will vote on percentages of the $33.7 billion to be distributed to the various committees. They will then begin decisions on how to appropriate the money within their jurisdiction.
For more information, please contact Dan Lyonsmith at 312.252.0460 x301 or dan@cjc.net.
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Illinois Pathways Launch
On February 9th, Governor Quinn launched Illinois Pathways, a state-led Science, Technology, Engineering, and Mathematics (STEM) education initiative designed to support college and career readiness for all Illinois students.
Illinois Pathways consists of two key components: STEM programs of study that target nine industry sectors and STEM learning exchanges, which are public private networks of educators, businesses, and workforce development stakeholders.
The P-20 STEM programs of study will align education and career planning to academic and career interests; provide access to work-based learning opportunities; provide college & career assessment; offer orientation courses that provide common foundational skills across clusters, called “orientation” at high school and “bridge” as an on-ramp for adults; offer common pathways skills and reduced switching costs; offer dual credit in “gateway” courses to improve transfer and reduce costs; and build program capacity through academic core, CTE courses, electives, regional centers, virtual courses, and college courses.
The STEM Learning Exchanges will provide curriculum resources; expand access to classroom and laboratory space, equipment, and related educational resources; support student organizations and their major activities; provide internships and other work‐based learning opportunities; sponsor challenges and provide project management resources; provide professional development resources for teachers and school administrators; provide career development and outreach resources; review P‐20 Program of Study model and transitions to post‐secondary academic and training programs; and review talent pipeline performance.
Click here for more information on Illinois Pathways and here for links to videos of the initiative’s launch event.
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IWF Campaign Endorsers Speak Out on Resolving State Budget
The Decatur and West Suburban Jobs Councils, along with Helping Hands of Springfield, submitted letters to the editor that asked our General Assembly officials to get serious about solving the State’s fiscal problems.
Using recent data from the Center on Tax and Budget Accountability (www.ctbaonline.org), the letters focused primarily on the state’s antiquated tax system not generating enough revenue to fund basic services for Illinois residents. The letters also pointed out that Illinois has lost 118,000 jobs due to the underfunding of human services in the past ten years. This advocacy was designed to show the real consequences of budget cuts and advocate for strategies to resolve the state’s fiscal problems that do not involve budget cuts.
Dennis McCann, Director of People’s Resource Center and Chair of the West Suburban Jobs Council’s (WSJC) Advocacy Committee, valued the opportunity to link workforce, economic development, and human services goals in WSJC’s letter. “We appreciated the opportunity to weigh-in on the state budget and thank the Chicago Jobs Council for keeping us on the cutting edge of its innovative advocacy work,” said McCann.
Brenda Johnson, Executive Director, of Helping Hands of Springfield welcomed an opportunity to address the state’s fiscal problems. “When you hear people talk about the state budget, it can be hard to figure out how we can make a difference,” said Johnson. “Thanks to being part of this letter to the editor campaign, I realize that we can add value by educating the public about our state’s financial situation. The reason our state is in bad shape is really quite simple despite what our politicians say. We have been running a structural deficit for the last thirty years thanks to a flat income tax that does not bring in enough revenue to pay for basic services like education, human services, healthcare, and public safety.”
The letters were published in the Chicago Tribune, Springfield Journal-Register, Daily Herald, Decatur Herald and Review, and Chicago Sun Times—Oak Brook and Clarendon Hills. Links to the published letters can be found on the Illinois Works for the Future’s website by clicking here.
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Budgeting for Results Summary
Budgeting for Results is a major change from the traditional process of state budgeting which begins with the introduction of the Governor’s budget, uses historic baseline amounts, and then appropriates funding at higher or lower levels from the previous year’s allocation. The Budgeting for Results process instead begins with the existing revenue, defines the (statewide) goals, allocates revenue to the defined goals, measures performance, and finally evaluates outcomes. Three pieces of legislation, Senate Bill 3660, Senate Bill 3708 and House Bill 5424 were enacted in the previous General Assembly to put Budgeting for Results into place.
The Governor’s six proposed outcomes are education, economic development, public safety, human services, improvement of the quality of life, and state government efficiency.
A commission appointed by the Governor began meeting in August 2011 to help guide the implementation process of Budgeting for Results by making recommendations on the Governor’s proposed outcomes and goals, allocating a percentage of the FY2012 budget to each goal, and reviewing the termination of state mandates.
In the November 1, 2011 report, the commission recommended changes to the result’s language and provided example goals and sub-goals. The commission also added a seventh outcome, healthcare, and plans to use return on investment (ROI) in the allocation process.
As the commission continues to meet, it will continue to develop goals and sub-goals, examine ways in which the state can address outstanding accumulated liabilities, and review mandates and statutory transfers out for amendment or elimination. Mandates are funding requirements made by law whereas a transfer out is the automatic movement of money between funds that by state statute goes directly to a certain fund or program without General Assembly oversight. Statutory changes need to be made by the General Assembly in order to amend or eliminate any mandates. A total of $2.1 billion of the state budget consists of automatic transfers out.
The recommendations #20, #21 and #22 in the commission’s November report were made in response to testimony provided at two public hearings. Recommendation #20 asks that existing metrics currently being used by organizations may be considered for use as part of Budgeting for Results process. Recommendation #21 asks that the process of implementing Budgeting for Results maintain an awareness of unintended consequences, such as encouraging providers to focus on easy to serve populations instead of those most in need of services. Recommendation #22 asks that the process of creating new metrics take into account the challenge of measuring success when the result may be the absence of a negative outcome and that there be ways to diversify the process of determining success.
The report can be found at the Budgeting for Results commission website by clicking here.
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Wednesday, February 8, 2012
Letters to the Editor
Illinois Works for the Future has collaborated with its partners across the state with a series of letters to the editor in response to the State of Illinois’ current fiscal situation. Submitted letters focused primarily on the state’s antiquated tax system not collecting enough revenue to fund sufficient basic services for its citizens.
The following letters were published in various media outlets throughout the state:
- Daily Herald — Suburban Chicago, Illinois: “Budget cuts also can cut jobs” Feb. 8, 2012
- Chicago Sun-Times, Oak Brook — Oak Brook, Illinois: “Budget cuts are bad medicine” Feb. 5, 2012
- Chicago Sun-Times, Clarendon Hills — Clarendon Hills, Illinois: “Budget cuts are bad medicine” Feb. 5, 2012
- State Journal-Register — Springfield, Illinois: “Budget cuts hurt real people” Feb. 1, 2012
- Herald & Review — Decatur, Illinois: “Taxes, not spending, are the root of state’s budget problems” Jan. 26, 2012
- Chicago Tribune — Chicago, Illinois: “Illinois Budget” Jan. 26, 2012
- Chicago Tribune — Chicago, Illinois: “Help adults boost their basic skills” Jan. 25, 2012
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Thursday, November 17, 2011
Legislative Report: Veto Session Round-up
The Illinois State Legislature recently finished up their regularly scheduled Veto Session to try and complete any unfinished business left over from regular session. A number of important items were passed but even more went undone. The House will reconvene on November 29th to continue to work on outstanding legislation.
During the first week of Veto Session, state lawmakers overrode the Governor’s veto of the controversial Smart Grid legislation, and also passed a rider bill that provides more protections for consumers than what was included in the original bill. The legislation allows Ameren to raise consumer electric rates by 2.5% annually to compensate them for 3.2 billion dollars of investment in smart grid technology which will allow for better monitoring of energy usage and improved response to outages. Ameren and ComEd are also required to create 2,450 jobs in Illinois through this legislation. The rider bill, which passed the legislature but has not yet been signed into law by Governor Quinn, would also require that the electric companies contribute an additional 60 million dollars toward low income rate relief and further infrastructure improvement aimed at protecting against blackouts.
Some other important legislation which passed includes:
- A bill which restores solvency to the Unemployment Insurance Fund. The fund was in jeopardy due to the large number of unemployed Illinoisans over the past few years which had left the fund with a debt of two billion dollars. This fix to the UI Fund will save businesses and taxpayers a significant amount of money over the next few years.
- A Regional Superintendants’ Salary bill which found money to pay school superintendants from the local Personal Property Tax Replacement fund. Governor Quinn vetoed their salaries out of the budget in July, and many of them have been working without pay since then.
- Finally a bill was passed that would allow the City of Chicago to use Speed Cameras to issue tickets to people driving over the speed limit near parks and schools.
Bills that were left unfinished and may continue to be worked on later this month include:
- Whether or not to give a 100 million dollar Tax Break to the Chicago Mercantile Exchange (CME.) As a part of that package other businesses, such as Sears, might also get state tax relief and the Governor wants to see an increase to the Illinois Earned Income Tax Credit (EITC) for low income earners as part of any deal for CME.
- A Gaming Expansion bill which would create five new casinos (including one in Chicago).
- A Budget Reallocation bill that will keep seven state facilities open for the rest of this fiscal year that the Governor was planning to close. This budget reallocation bill would also restore about 60 million dollars to community mental health, homeless, and substance abuse services that were inadvertently cut during the appropriations process last summer. Under the compromise in this bill six state facilities would still close, but gradually over the course of the next two years.
IWF will continue to monitor all legislative activities when lawmakers reconvene after the Thanksgiving Holiday. For more information, please contact Dan Lyonsmith at 312.252.0460 x301 or dan@cjc.net.
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Employment Taskforce in Aurora Develops Collaborative Transitional Jobs Program Proposal
Members of the Aurora Homelessness Initiative’s Employment Taskforce reached a tentative agreement between six nonprofit organizations to start a pilot transitional jobs program that will serve homeless individuals in the Aurora area. A transitional job is a time-limited, subsidized position that combines real work, skill development, and supportive services to transition participants into the labor market.
The Aurora Homelessness Initiative (AHI) is a collaboration of organizations that work to reduce the number of homeless residents in the Aurora area. Mayor Tom Weisner launched the AHI in 2006 and the initiative made employment a priority by creating a taskforce to focus solely on this issue.
Members of the employment taskforce include the Quad County Urban League, Hope for Tomorrow, Waubonsee Community College, Hesed House, Wayside Cross Ministries, and the Chicago Jobs Council.
The taskforce conducted site visits in Chicago to learn from successful models of service delivery from the following transitional jobs providers: The Cara Program, Heartland Alliance, and Inspiration Corporation. The group also consulted with staff from the National Transitional Jobs Network to help inform their program.
After doing research into the transitional jobs model, the group developed an agreement between the member agencies regarding which role each one will play in a pilot transitional jobs program. The group is now actively seeking funding to launch the program.
For more information about this collaborative project, please contact Steve Simmons, Senior Policy Associate at the Chicago Jobs Council, at 312-252-0435 or steve@cjc.net.
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Illinois Lawmakers and Stakeholders Receive Latest IWF Report
Earlier this month, representatives from the Illinois Works for the Future (IWF) campaign distributed copies of its latest report to state lawmakers and key stakeholders. The report, entitled Putting the Workforce at the Center of Economic Development: Leaders from across Illinois call for Investment in Skills, includes findings and recommendations to inform state-level strategies for building Illinois’ workforce skills.
The letter educates lawmakers and stakeholders about the struggles many Illinoisans face in finding employment and gaining the necessary skills required for future jobs during this economic downturn. IWF leadership calls for the state of Illinois to elevate investment in adult workforce skills to the top of its economic development priorities by:
- Implementing the 21st Century Workforce Development Fund;
- Developing career pathways for low-skilled adults;
- Further advancing the integration of workforce and economic development policy and strategy; and
- Supporting innovation in communities and regions with smaller populations, so that they can be competitive for state, federal, and private workforce funding opportunities.
IWF also recommends that the state ensure that local innovation translates into state-level strategies to build on the skills of the workforce and ensure future economic competitiveness in Illinois.
The report, which was released in early Fall 2011, was informed by a series of community forums IWF leadership held with local leaders in five communities across the state. The forums helped build a statewide picture of local workforce and economic development priorities and needs. The full report can be found here.
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