Case Study

Business Expansion Incentive Program – Austin, TX

The City of Austin has experienced two decades of rapid growth and expansion, which has led to challenges around equity and inclusion. In 2018, the City adopted new guiding principles, which put “equitable prosperity, opportunity, and affordability” at the center of the City’s economic development policy. The City retooled its incentive programs to align with this policy, prioritizing small and local businesses, hiring residents with barriers to employment, and paying a living wage.

Austin’s Business Expansion Incentive Program offers three types of assistance:

1. Local Austin Business: Offers up to 3% wage reimbursement per job/per year maxing out at $1,800, and up to 50% property tax reimbursement. The incentive is available to all registered Austin businesses, which pay Austin’s living wage.
2. Targeted Hiring: Provides $3,000 per target job/per year and up to 50% property tax reimbursement for the creation of 1 job in targeted populations or for residents who have barriers to employment, and pay Austin’s living wage.
3. Relocating: Offers a 3% wage reimbursement per job/per year maxing out at $1,800, and up to 50% property tax reimbursement for businesses new to the city and creating 75+ jobs over 10 year paying Austin’s living wage.

While still open to larger and relocating employers, typical of most incentive programs, the City’s Local Austin Business and Targeted Hiring programs have eligibility criteria designed to allow smaller, local businesses to qualify for these incentives. Program elements include:

• All incentive projects are evaluated by staff using a cost benefit analysis to determine fiscal impact. Importantly, to ensure smaller local firms can qualify, the City does not require the project to have a net revenue positive impact for the City, but it must be revenue neutral.
• Austin uses a return on investment calculus, which includes a broad definition of community benefits such as development and hiring underrepresented groups; demonstrating diversity, inclusion, and equity practices and policies; neighborhood connection; local partnerships; sustainable business practices; and civic engagement.
• The City provides bonus qualifiers for small businesses, cooperatively owned businesses, businesses, which engage local music and arts community, and businesses that provide on-site day care.
• All three incentives require that qualifying jobs must pay the Austin living wage of $15 per hour.
• All grants are performance based and quality controls include a third-party audit system.
• While most incentive projects must be approved by the City Council, the Economic Development Department is able to negotiate and award incentive deals up to $61,000 per project for a total up to $5 million per year.

Small businesses and MWBEs have benefited from the City’s new individualized focus on smaller incentive deals.

For example, a local minority-owned restaurant, L’Oca d’Oro, agreed to retain 20 individuals over 5 years from the program’s targeted population, and make 10 new hires. In return, the restaurant receives $2,000 annually on a declining basis for each retained employee and $220 per year for each new hire.

Another minority-owned firm, AllPro Hospitality Staffing, committed to creating 10 new jobs under the targeted hiring incentive.

Case Study

City of Boston

In 2020, the City of Boston drew down $2.5M of CARES Act Federal relief funding to launch a marketing campaign to market the city to Black and Brown residents and visitors.

The campaign’s goals were to “build Boston’s brand as a travel destination, increase awareness and active promotion, and drive visits to Boston from diverse local and regional visitors.“ It was part of the city’s strategy to build back a stronger and more equitable economy.

In particular, the campaign sought to “examine the ways in which Boston communicates about the offerings of the city, and highlight attractions and events that speak to the experiences of people of color.”

The Greater Boston Convention & Visitors Bureau selected two award-winning agencies with deep roots in the city. One was Boston’s oldest, minorityowned and operated marketing communications agency. The other was a Boston-based, minority owned, award-winning creative branding, design,
and advertising agency.

They soon discovered that the city had allowed others to create a narrative of Boston as an all white, masculine, sports- and alcohol- dominated city. Visitors and some residents had low awareness of the city’s vibrant Black neighborhoods, and the contributions of Black and Brown residents to the city.

The campaign featured different Boston neighborhoods with neighborhood maps and guides and short-form videos, as well as social media influencers from some of the city’s oldest Black neighborhoods. It also celebrated Black and Brownowned businesses in local and national media, in order to drive local spend.

Like many campaigns during the pandemic, its primary audience was local residents. However, as travel becomes safer, the city plans to continue its efforts to encourage a wider audience to change their perceptions and, ultimately, actions.

Case Study #1

Workforce Income Share Agreement Fund, San Diego, CA

In 2019, the San Diego Workforce Partnership (SDWP) established a new model for expanding access to training in high-growth industries called the Workforce Income Share Agreement Fund. An Income Share Agreement (ISA) is an alternative way to pay for education, where there are no upfront costs to the student.

Instead, the student agrees to pay a small proportion of their income after landing a job above a minimum income threshold. This threshold also means payments stop if income falls below the identified wage or the individual experiences a period of unemployment. Not only is there a strict cap on the maximum that students repay, each dollar repaid replenishes the fund for future students.

This innovative financing mechanism increases equity by basing access to funding on competency, need and motivation rather than traditional indicators such as credit scores, savings rates or educational achievement. While the specific terms vary slightly depending on the program, students will pay back between 6% and 8% of their income for 36–60 months.

The San Diego Workforce Income Share Agreement Fund provides $6,500 in funding per student and is inclusive of education and wraparound services. Students may pay up to 1.8X the cost of the contract, a max of $11,700, based on their individual earnings. Students repay between 6%-8% of their income, based on the program once they earn above $40,000 per year. Income determination excludes public assistance, disability benefits, alimony/ child support and social security, but does include pensions.

The model offers access to UC San Diego Extension certification programs lasting 9–15 months in fastgrowing technology fields with career readiness, mentoring and job placement support. As well as receiving instruction from industry professionals at UCSD Extension, participants in the program also have access to extensive career counseling, placement and supportive services.

Current UCSD Extension eligible programs are in the business management and information technology sectors. A complete list of programs, including targeted careers and starting salary, are available at UCSD Extension’s ISA site.

Adapt This Approach:

Workforce Partnership received a grant to test, document and amplify good practices for the application of ISAs as innovative workforce training financing models, and has since established the Outcomes Center, which serves as a hub for tools, resources and learnings around new and innovative outcomes-focused funding models.

The steps below are also outlined in an ISA Development Lifecyle located in the Outcomes Center, which includes additional detail, suggestions and strategies that correspond with each step. Visit this tool and others in the Outcomes Center to support local adoption of this model.

Resources:

• Specific terms of Workforce Partnership’s ISA payment model
• Income Share Agreement basics
• Key feasibility considerations when designing an ISA to determine if the program is a good candidate for this model
• A framework to help workforce agencies build ISAs centered around quality jobs
• An ISA Development Lifecyle for developing an ISA lifecycle
• Workforce Partnership’s Outcomes Center

Case Study #2

FastForward Program – Virginia

In 2016, the Virginia Assembly codified the New Economy Workforce Grant Program, which was quickly rebranded FastForward by the Virginia Community College system. FastForward provides a pay-for-performance model for funding noncredit workforce training that leads to a credential in a high demand field. FastForward program specifics:

• Courses are 6–12 weeks, on average, and designed so students can continue working while earning a credential.
• Program is delivered by Virginia’s Community Colleges and is designed to help students enter and advance in a career pathway. Some credentials stack based on skill (e.g., basic and advanced), while some stack to allow the student to become a more well-rounded job candidate (e.g., Certified Clinical Medical Assistant, EKG Technician, Phlebotomy
• Technician). Some programs may offer a short internship or externship before graduating and can also propel the student towards an associate degree.
• Costs vary, but the average out-of-pocket cost is $1,100, and financial assistance may cut costs even more.
• A career coach at the local community college helps participants explore training options, pursue financial aid for the up-front payment (if needed) and access wraparound services such as transportation and childcare. This additional support is critical as many of FastFoward’s students face multiple barriers. Over half of FastForward students are minorities; students are twice as likely to receive SNAP/TANF benefits as other college students; and over 70% have dependents to support.
• The program offers in-person and online training programs for 40 high-demand careers in the following industries: logistics and transportation, healthcare, welding and manufacturing, skilled trades, information technology, business and customer service and education.

Resources:

• FastForward: Credentials for a Career that Matters
• Workforce Credentials: The Pathway to Virginia’s New Middle Class Report
• National Skills Coalition: Middle Skill Jobs By State – Virginia
• New Economy Workforce Credential Grant Fund and Program – State Law

Case Study #1

Mayor’s Youth Employment Program (MYEP), Charlotte, NC

Program Overview:

• July 6–August 7
• Mondays–Thursdays from 9:30–2:30
• 315 Participants
• 20 Team Leads
• Teams of 4–5
• $900 Scholarship

The Mayor’s Youth Employment Program has been connecting youth in Charlotte with local employers since 1986 with a focus on leveraging relationships with businesses and the community to provide meaningful, career-oriented internships for youth. While MYEP had traditionally provided in-person experiences, it was clear early in 2020 that in-person internships were not an option for the over 500 students enrolled in the program.

In March, the City of Charlotte’s MYEP team began reimagining what a virtual internship might look like. Through a connection with the Charlotte Executive Leadership Council (CELC), the team contracted with Radius Learning, a company that develops workbased education pathways with the private sector and academic institutions. They immediately began to re-engineer the MYEP’s summer experience and were quickly joined by Charlotte-Mecklenburg Schools (CMS) and LinkedIn Learning in the effort to identify and secure funding, human capital resources, and learning assets.

Over a period of weeks, the aforementioned partners, also known as the MYEP Virtual Pathways Team, collaborated with leading employers in the region to develop five virtual pathways:

• Advanced Manufacturing
• Business & Finance
• Technology
• Innovation
• Healthcare

Charlotte employers shared learning and development content and information on their skills profiles, which Radius then incorporated into five week pathway experiences for MYEP participants. Each pathway included 100 hours of skills-based tasks simulating future jobs and was aligned with an overall project related to a real-world challenge in the community. The MYEP Virtual Pathways Team worked to design experiences so youth felt like they had a job, rather than watching someone else do a job, in order to create buy-in and opportunities for growth. They also were intentional about designing work-based learning activities through which participants would experience success and have a sense of contributing towards the greater good.

Case Study #2

DTE Energy “Work From Anywhere”
Toolkit and Summer Youth Internship Program, Detroit, MI

Program Overview:

• Training stipend of $15/hr
• Up to $450 per week
• Up to 10,000 residents by September 2021
• Anticipate 80% receiving wraparound support

DTE Energy (NYSE: DTE) is a Detroit-based diversified energy company serving more than 3 million electric and natural gas customers in Michigan. Since 2017, DTE has worked directly with the city of Detroit on a variety of workforce and talent development efforts that align with the company’s aspirations to be a “Force for Growth” and promote prosperity in the communities where DTE’s 10,000- plus employees live and serve.

This includes projects that move the organization closer to achieving DTE’s “Employment and Education” goals including:

• Closing the digital divide impacting Detroit schoolchildren
• Providing FIRST Robotics sponsorships
• Hosting and participating in workshops and educational programs
• Providing training and work-based experiences that include internships and cooperatives

DTE believes internships offer a win-win opportunity for the company to share knowledge with the next generation of leaders and position youth for future success in a learning environment that also fills DTE’s talent pipeline with motivated, prepared candidates.

As a result of this commitment, DTE traditionally employs or sponsors 1,500 students annually: 850 interns on-site and 650 students through the DTE Energy Foundation that are supported through programs such as Grow Detroit Young Talent (GYDT), a summer program that serves 8,000 youth.

In early 2020, when it was clear the COVID-19 pandemic would greatly impact its summer intern programs, DTE leaders knew they needed to find a way to sustain these opportunities for students. DTE leaders formed an emergency planning team comprising experts who had worked together to tackle big workforce and talent challenges for more than three years.

A key partner in this effort was the Detroit Employment Solutions Corporation (DESC), the City of Detroit’s workforce agency and one of 16 Michigan Works! agencies statewide. The team met weekly to transition its on-site internship approach into a full virtual program. Team members knew converting internship programs to a virtual or “work from anywhere” office needed to include new and creative ways to complete meaningful work, collaborate with leaders and co-workers, and stay socially connected without meeting in person.

As a result of these efforts, DTE reimagined the structure of its programs, and provided a corporate contribution in March 2020 of $1,000,000 for stipends for their career pathway interns, and the deployment of virtual work experience platforms. DTE’s Workforce Development team also developed a Work From Anywhere Toolkit to aid other companies moving to virtual internships. In the summer of 2020, DTE served more than 500 interns, including 86 high school students. Stipends for high school students ranged from $11 to $13 per hour during a six-week experience with engaging activities and training designed to build employability skills.

Youth virtually connected with mentors daily and had opportunities to connect with their peers the same way. They also engaged with two web-based platforms as part of their internship program: 1) Educational Data Systems, Inc. (EDSI) provided a variety of virtual instructor-led training specific to the energy industry, using a project-based approach through cohorts of students to provide practical application of skills; and 2) Virtual Job Shadow provided career exploration opportunities.

Case Study

Nashville, TN: Financial Empowerment Center

The Nashville Financial Empowerment Center (FEC) operates under a simple premise: that an “increase in the economic well-being of any Nashvillian improves the overall economic climate of the whole city.” Founded in 2013, the Nashville FEC is a free 1-1 counseling program for all residents in Nashville provided by the government and United Way. Counselors will help with a variety of personal finance issues — such as how to negotiate debt, what to look for in a loan, or even just general financial literacy.

The City recognized the need to establish the center because there was a relative lack of financial empowerment services in the city. After researching nonprofits that work in the space, it settled on a partnership with United Way, given the organization’s visibility and track record in this space. Nashville chose to place the FEC within the Mayor’s office to ensure prominence and attention. It has since established an office dedicated to implementing financial counseling and integrating it with other government and social services (e.g., affordable housing). Nashville set aside ~$250,000 per year to cover the shared costs with United Way.

As the FEC was growing, Nashville made a dedicated effort to attract and develop partnerships. The City hosted a summit with existing and prospective partners in the community to discuss how best to provide counseling, and identify additional opportunities for collaboration. They used these partners to better understand residents’ needs (e.g., debt reduction, increasing savings) and how the center could best reach and support residents. These same partners provide ongoing feedback to the FEC to help them continually improve their offerings. For example, they have prioritized hiring counselors who speak Spanish as a primary or secondary language after they noticed that Spanish was the main language of 12.4% of clients.

Since it was launched in 2013, the Center has helped 7,700 clients reduce their debt by $14.2 million and increase their savings by $2.9 million. It has made a concerted effort to reach out and serve low-income and people of color. 54% of FEC clients identified as African American/Black and 21.2% identified as Latino/Latina. Nearly 18% had not completed high school and 61.8% of clients had very low incomes (relative to the median income). The FEC also conducted targeted outreach to certain sectors of the population (e.g., low-wage workers, those seeking assistance with food, utility, etc.) to determine how the center could be helpful.

Case Study #1

Baltimore Health Corps

Baltimore City Mayor’s Office of Employment Development- Baltimore, MD

Program Overview:

• Temporary employment for over 300 community members
• Focus on career pathways within health care
• Upskilling training available
• Support services for workers

In March of 2020, the Baltimore City Health Department, Baltimore City Mayor’s Office for Employment Development (MOED), Mayor’s Office of Performance and Innovation, Baltimore Corps, the Baltimore Civic Fund, HealthCare Access Maryland, Bloomberg Philanthropies’ Innovation Team (i-team), and Jhpiego, a Johns Hopkins University affiliate, partnered to address the dual need of responding to the public health crisis caused by the pandemic and rapid reskilling and reemployment of the available workforce.

The new initiative, the Baltimore Health Corps, focuses on contact tracing, a method of identifying people exposed to the novel coronavirus, with the intent of preventing and containing transmission.

Resources:

• Baltimore Health Corps website
• Baltimore Health Corps job listings
• Baltimore Mayor’s Office of Employment Development website
• Rockefeller Foundation press release

Case Study #2

Train for Jobs SA, San Antonio, TX

Program Overview:

• Training stipend of $15/hr
• Up to $450 per week
• Up to 10,000 residents by September 2021
• Anticipate 80% receiving wraparound support

In May 2020, Workforce Solutions Alamo (WSA), in partnership with the City of San Antonio and Bexar County, established Train for Jobs SA, a training program designed to quickly upskill dislocated individuals for high-growth industries and occupations.

In addition to free training, participants also receive weekly stipends and significant wraparound services to support successful completion of the program and then placement into a job. The program was made possible through the commitment of the City of San Antonio and Bexar County officials who prioritized workforce development as their leading strategy to guide the city into and through recovery from the pandemic.

The overall goal of the program is to provide economic stability for those who are displaced as well as ensure the talent needed to support local industry is available as businesses begin to recover. Train for Jobs SA aims to serve up to 10,000 San Antonio and Bexar County residents by September 2021.

Eligible participants enroll via phone, and once in the program, complete a skills and career assessment. Participants may then be enrolled in high school equivalency preparation, or short-term, long-term or on-the-job training, all of which are aligned to in demand occupations in the city’s target industries and growth occupations. There are a myriad of training courses available, both on and off of their Eligible Training Provider List (ETPL).

Qualified participants are eligible to receive stipends of $15/hour (for between a minimum of 6 hours and a maximum of 30 hours per week) for actual time spent in an approved training program, up to a maximum of $450 stipend per week. The stipend is made available for the full length of the training, with a focus on participants attaining new skills or credentials and keeping them engaged after the training to advance on a career pathway.

Train for Jobs SA is also a key driver supporting the City of San Antonio’s long-term goal of decreasing economic segregation. The program developed and uses an equity matrix questionnaire to identify participants in specific areas who are more at risk and prioritize them for enrollment and additional services.

Up to 80% of program participants are anticipated to receive comprehensive wraparound support such as case management, career navigation, and connection to other Workforce Innovation and Opportunity Act (WIOA)-funded services.

Resources:

• Train for Jobs SA informational site
• Participant site
• Workforce Solutions Alamo site
• San Antonio equity maps
• San Antonio, TX press release – $2 Million Dislocated Worker Upskilling Grant
• San Antonio, TX press release – $450 Stipend for Retraining

Case Study

Birmingham, Alabama “TIP TAP TOP” Program

Shipt ​was a start-up founded in Birmingham, AL, ​in 2014. The online grocery delivery platform grew rapidly and was ​acquired by Target in 2017. ​After acquisition, the company projected 881 jobs would be added over the next three years, but the question was where those jobs would be located: would they place those jobs in the Bay Area – where some employees were already based? ​Would they move jobs and headquarters to Minneapolis where Target is headquartered? Or, would they keep those jobs in Birmingham?

The City of Birmingham realized that to ensure Shipt and Target would keep jobs in their city, it would need to incentivize them to stay. But, the City did not want to just offer incentives that lowered tax collection without furthering economic development goals. Therefore, the City developed an innovative incentive program: “TIP TAP TOP.” All three elements described below are tax abatements against the taxes that SHIPT owes the City in exchange for the investment in three areas:

• Talent Investment Program (TIP): Shipt invests in training for “demand-driven” occupations via occupational tax abatements. The program focuses on recruiting people for positions that are difficult to source locally (e.g., web developers, software engineers) who relocate and move to the area. It could include providing supplemental salary, relocation assistance, etc.
• Talent Acceleration Program (TAP): Shipt supports tuition assistance, learning, and skill development designated for enabling existing low-wage and lower-skilled employees to grow into other positions within the company. This includes enrolling in skill training programs, classes, and other entities.
• Talent Optimization Program (TOP): Shipt supports the hiring of local talent, training, and development (e.g. management training and continuing education) for current employees; and the attraction of national talent. This is the main element of the program and includes targeted funding to hire local university students.

Shipt is responsible for all program expenses and is only able to apply for reimbursement for a portion (up to ~$1.76M). In its draft project agreement (attached), Birmingham explicitly describes which costs are eligible/ not eligible for reimbursement, and Shipt only receives reimbursement after successful implementation (e.g., only can receive reimbursement for TOP if new local talent is hired).

Birmingham implemented the program in 2018 and convinced Shipt to keep jobs — and expand — locally. The City has a robust set of success metrics to evaluate the program (see document in resources section). All the above incentives are only provided based on individuals who have successfully gone through the program.

Other examples:

Several other cities have implemented similar, targeted incentives programs. For example, Austin’s Business Expansion Incentive Program provides support for businesses that are growing and looking to hire local, hiring employees with barriers, or reconsidering moving to Austin. These incentives include some wage reimbursement and are paid out annually at the end of the year. To apply, businesses can submit an incentive inquiry to start the process.

The program offers incentives to three types of businesses:

1. Local Austin businesses (e.g., those already based in the area)
   • Businesses that are growing locally can get up to 3% wages reimbursement per job / per year (max $1,800) and up to 50% property tax reimbursement
   • To be eligible for these incentives, businesses must have registered and been operational in Austin for at least 12 months and have created at least 5 jobs over 5 years paying (at minimum) the Austin living wage.
2. Employers hiring targeted populations
   • Businesses hiring employees with barriers can receive up to $3,000 per target job / per year and up to 50% property tax reimbursement
   • To be eligible for these incentives, businesses must have created 1 job for targeted populations and the pay must be (at minimum) the Austin living wage
3. Businesses relocating to Austin.
   • Businesses that relocate to Austin can get up to 3% wages reimbursement per job / per year (max $1,800) and up to 50% property tax reimbursement
   • To be eligible for these incentives, businesses must have no significant presence in Austin (defined as 5 or fewer Austin employees) and create at least 75 jobs over 10 years paying (at minimum) the Austin living wage.

Case Study #1

The City of Charlotte’s Mayor’s Youth Employment Program, Charlotte, NC

Program Overview:

• July 6–August 7
• Mondays–Thursdays from 9:30–2:30
• 315 Participants
• 20 Team Leads
• Teams of 4–5
• $900 Scholarship

The Mayor’s Youth Employment Program has been connecting youth in Charlotte with local employers since 1986 with a focus on leveraging relationships with businesses and the community to provide meaningful, career-oriented internships for youth. While MYEP had traditionally provided in-person experiences, it was clear early in 2020 that in-person internships were not an option for the over 500 students enrolled in the program.

In March, the City of Charlotte’s MYEP team began reimagining what a virtual internship might look like. Through a connection with the Charlotte Executive Leadership Council (CELC), the team contracted with Radius Learning, a company that develops workbased education pathways with the private sector and academic institutions. They immediately began to re-engineer the MYEP’s summer experience and were quickly joined by Charlotte-Mecklenburg Schools (CMS) and LinkedIn Learning in the effort to identify and secure funding, human capital resources, and learning assets.

Over a period of weeks, the aforementioned partners, also known as the MYEP Virtual Pathways Team, collaborated with leading employers in the region to develop five virtual pathways:

• Advanced Manufacturing
• Business & Finance
• Technology
• Innovation
• Healthcare

Charlotte employers shared learning and development content and information on their skills profiles, which Radius then incorporated into five week pathway experiences for MYEP participants. Each pathway included 100 hours of skills-based tasks simulating future jobs and was aligned with an overall project related to a real-world challenge in the community. The MYEP Virtual Pathways Team worked to design experiences so youth felt like they had a job, rather than watching someone else do a job, in order to create buy-in and opportunities for growth. They also were intentional about designing work-based learning activities through which participants would experience success and have a sense of contributing towards the greater good.

Case Study #2

DTE Energy “Work From Anywhere”
Toolkit and Summer Youth
Internship Program, Detroit, MI

• Training stipend of $15/hr
• Up to $450 per week
• Up to 10,000 residents by September 2021
• Anticipate 80% receiving wraparound support

DTE Energy (NYSE: DTE) is a Detroit-based diversified energy company serving more than 3 million electric and natural gas customers in Michigan. Since 2017, DTE has worked directly with the city of Detroit on a variety of workforce and talent development efforts that align with the company’s aspirations to be a “Force for Growth” and promote prosperity in the communities where DTE’s 10,000- plus employees live and serve.

This includes projects that move the organization closer to achieving DTE’s “Employment and Education” goals including:

• Closing the digital divide impacting Detroit schoolchildren
• Providing FIRST Robotics sponsorships
• Hosting and participating in workshops and educational programs
• Providing training and work-based experiences that include internships and cooperatives

DTE believes internships offer a win-win opportunity for the company to share knowledge with the next generation of leaders and position youth for future success in a learning environment that also fills DTE’s talent pipeline with motivated, prepared candidates.

As a result of this commitment, DTE traditionally employs or sponsors 1,500 students annually: 850 interns on-site and 650 students through the DTE Energy Foundation that are supported through programs such as Grow Detroit Young Talent (GYDT), a summer program that serves 8,000 youth.

In early 2020, when it was clear the COVID-19 pandemic would greatly impact its summer intern programs, DTE leaders knew they needed to find a way to sustain these opportunities for students. DTE leaders formed an emergency planning team comprising experts who had worked together to tackle big workforce and talent challenges for more than three years.

A key partner in this effort was the Detroit Employment Solutions Corporation (DESC), the City of Detroit’s workforce agency and one of 16 Michigan Works! agencies statewide. The team met weekly to transition its on-site internship approach into a full virtual program. Team members knew converting internship programs to a virtual or “work from anywhere” office needed to include new and creative ways to complete meaningful work, collaborate with leaders and co-workers, and stay socially connected without meeting in person.

As a result of these efforts, DTE reimagined the structure of its programs, and provided a corporate contribution in March 2020 of $1,000,000 for stipends for their career pathway interns, and the deployment of virtual work experience platforms. DTE’s Workforce Development team also developed a Work From Anywhere Toolkit to aid other companies moving to virtual internships. In the summer of 2020, DTE served more than 500 interns, including 86 high school students. Stipends for high school students ranged from $11 to $13 per hour during a six-week experience with engaging activities and training designed to build employability skills.

Youth virtually connected with mentors daily and had opportunities to connect with their peers the same way. They also engaged with two web-based platforms as part of their internship program: 1) Educational Data Systems, Inc. (EDSI) provided a variety of virtual instructor-led training specific to the energy industry, using a project-based approach through cohorts of students to provide practical application of skills; and 2) Virtual Job Shadow provided career exploration opportunities.

Resources:

• DTE Work From Anywhere Toolkit
• DTE-Produced Video Featuring Students & Mentors
• Michigan Energy Workforce Development Consortium (MEWDC)
• Center for Energy Workforce Development

Case Study #1

Workforce Income Share Agreement Fund, San Diego, CA

In 2019, the San Diego Workforce Partnership (SDWP) established a new model for expanding access to training in high-growth industries called the Workforce Income Share Agreement Fund. An Income Share Agreement (ISA) is an alternative way to pay for education, where there are no upfront costs to the student.

Instead, the student agrees to pay a small proportion of their income after landing a job above a minimum income threshold. This threshold also means payments stop if income falls below the identified wage or the individual experiences a period of unemployment. Not only is there a strict cap on the maximum that students repay, each dollar repaid replenishes the fund for future students.

This innovative financing mechanism increases equity by basing access to funding on competency, need and motivation rather than traditional indicators such as credit scores, savings rates or educational achievement. While the specific terms vary slightly depending on the program, students will pay back between 6% and 8% of their income for 36–60 months.

The San Diego Workforce Income Share Agreement Fund provides $6,500 in funding per student and is inclusive of education and wraparound services. Students may pay up to 1.8X the cost of the contract, a max of $11,700, based on their individual earnings. Students repay between 6%-8% of their income, based on the program once they earn above $40,000 per year. Income determination excludes public assistance, disability benefits, alimony/ child support and social security, but does include pensions.

The model offers access to UC San Diego Extension certification programs lasting 9–15 months in fastgrowing technology fields with career readiness, mentoring and job placement support. As well as receiving instruction from industry professionals at UCSD Extension, participants in the program also have access to extensive career counseling, placement and supportive services.

Current UCSD Extension eligible programs are in the business management and information technology sectors. A complete list of programs, including targeted careers and starting salary, are available at UCSD Extension’s ISA site.

Adapt this approach:

Workforce Partnership received a grant to test, document and amplify good practices for the application of ISAs as innovative workforce training financing models, and has since established the Outcomes Center, which serves as a hub for tools, resources and learnings around new and innovative outcomes-focused funding models.

The steps below are also outlined in an ISA Development Lifecyle located in the Outcomes Center, which includes additional detail, suggestions and strategies that correspond with each step. Visit this tool and others in the Outcomes Center to support local adoption of this model.

Resources:

• Specific terms of Workforce Partnership’s ISA payment model
• Income Share Agreement basics
• Key feasibility considerations when designing an ISA to determine if the program is a good candidate for this model
• A framework to help workforce agencies build ISAs centered around quality jobs
• An ISA Development Lifecyle for developing an ISA lifecycle
• Workforce Partnership’s Outcomes Center

Case Study #2

FastForward Program – Virginia

In 2016, the Virginia Assembly codified the New Economy Workforce Grant Program, which was quickly rebranded FastForward by the Virginia Community College system. FastForward provides a pay-for-performance model for funding noncredit workforce training that leads to a credential in a high demand field. FastForward program specifics:

• Courses are 6–12 weeks, on average, and designed so students can continue working while earning a credential.
• Program is delivered by Virginia’s Community Colleges and is designed to help students enter and advance in a career pathway. Some credentials stack based on skill (e.g., basic and advanced), while some stack to allow the student to become a more well-rounded job candidate (e.g., Certified Clinical Medical Assistant, EKG Technician, Phlebotomy
• Technician). Some programs may offer a short internship or externship before graduating and can also propel the student towards an associate degree.
• Costs vary, but the average out-of-pocket cost is $1,100, and financial assistance may cut costs even more.
• A career coach at the local community college helps participants explore training options, pursue financial aid for the up-front payment (if needed) and access wraparound services such as transportation and childcare. This additional support is critical as many of FastFoward’s students face multiple barriers. Over half of FastForward students are minorities; students are twice as likely to receive SNAP/TANF benefits as other college students; and over 70% have dependents to support.
• The program offers in-person and online training programs for 40 high-demand careers in the following industries: logistics and transportation, healthcare, welding and manufacturing, skilled trades, information technology, business and customer service and education.

Resources:

• FastForward: Credentials for a Career that Matters
• Workforce Credentials: The Pathway to Virginia’s New Middle Class Report
• New Economy Workforce Credential Grant Fund and Program – State Law

Case Study

California: Labor Development Board – High Road Training Partnerships

The California Workforce Development Board, with technical assistance from the UC Berkeley and UCLA Labor Centers, and the COWS research center at the University of Wisconsin, Madison, implemented an initiative to magnify, scale, and expand eight High Road Training Partnerships (HRTPs) as a model for workforce and economic development in partnership with area businesses, unions and community groups. The initiative provides technical assistance and project funding for HRTPs to enhance their industry-led problem solving, upskilling, and training work, focusing on racial equity, low-carbon climate goals, and job quality. It reaches across several sectors including hospitality, health care, building services, construction, transit, freight and goods movement, public services, and water and utilities, and advances existing and new industry partnerships as they identify needs and opportunities for workers and industries, solve for those needs through a partnership model, and craft real-time, worker-centered training to upskill and cross-train workers for career progression, in order to prepare diverse new entrants for quality jobs and increase competitiveness for employers.

HRTPs are effective because they are demand-driven and industry-led, deriving analysis and solutions in real-time from the workers and managers who understand the industry. Rather than the traditional approach to workforce development – which has workers cycling through established courses focused on skills that may not be relevant – the HRTPs bring together industry leaders, unions and worker centers to understand what skills and supports are needed, develop solutions, and “pull in” workforce development and educational institutions. This key principle – that industry partnership, including management and worker wisdom, is essential – enables the HRTPs to dynamically adapt, solve problems, and meet demand. This is especially critical during times of heightened economic uncertainty like the COVID crisis and recovery, when the needs and capacities of workers, employers, and communities are rapidly evolving.

One long-standing HRTP – the Education Fund (SEIU-UHW and Joint Employer Education Fund) – focuses on upskilling for health care workers. The program is available for union members and provides training through various outlets including its “Advance Your Career (AYC)” initiative, which provides reimbursement for relevant programs that enable workers to be promoted. The results are promising – 93% of participants graduate and graduates have a 40% higher internal job mobility, with a 36% average wage increase. Additionally, the program is over 80% women and 70% people of color.

Note: While this initiative was established by a state workforce board, cities can replicate this model by supporting the work of existing HRTPs and the development of new HRTPs. Depending on capacity, cities can start with one key sector and expand as resources allow. Look to see if there are public and private sector unions and employers who are doing HRTP work in other areas of the country and support expansion of their work to your city; identify industries where there is growing demand and partner with local unions, anchor businesses, education institutions, and the workforce system to build a high road partnership.