gao-02-80 small business: workforce development consortia ... · while all businesses face current...

Report to the HonorableChristopher S. Bond, Ranking MinorityMember, Committee on Small Businessand Entrepreneurship, U.S. Senate

United States General Accounting Office

GAO

October 2001 SMALL BUSINESS

WorkforceDevelopmentConsortia ProvideNeeded Services

GAO-02-80

Page i GAO-02-80 Consortia Provide Needed Services

Letter 1

Results in Brief 2Background 4Community Organizations Form Consortia in Response to Local

Workforce Needs. 8Consortia Activities Address Current and Future Workforce Needs 12Community Workforce Development Consortia Share Key

Principles and Best Practices 18Limited Information Available on Program Outcomes 25Conclusions 28Agency Comments 28

Appendix I GAO Contacts and Staff Acknowledgments 30

GAO Contacts 30Staff Acknowledgments 30

Tables

Table 1: Community Workforce Development Consortia Overview 10Table 2: Community Consortia Targeted Business and Industry

Sectors 18Table 3: The Workplace Learning Connection Student Participation

- Fiscal Years 1999 and 2000 27

Figure

Figure 1: An Example of a Community Workforce ConsortiumConsisting of Individual Member Organizations and anIntermediary Organization 8

Abbreviations

CATF Capital Area Training FoundationCOWS Center on Wisconsin StrategyCPCC Central Piedmont Community CollegeSTWOA School-to-Work Opportunities Act of 1994WIA Workforce Investment Act of 1998WRTP Wisconsin Regional Training Partnership

Contents

GAO-02-80 Consortia Provide Needed Services

October 30, 2001

The Honorable Christopher S. BondRanking Minority MemberCommittee on Small Business and Entrepreneurship,United States Senate

Dear Senator Bond:

Small businesses often experience serious problems finding skilledemployees to fill immediate vacancies in their workforce, upgrading theskills of their existing employees, and identifying strategies to meet theirfuture workforce needs. Unlike their larger counterparts, small businessestypically have limited financial and human resources and communityrelations staff to assist them in managing these important tasks. Whensmall businesses seek connections to potential new entrants into theworkforce—including youth—they face a perplexing array of public andprivate employment and training service providers. In addition, thebusinesses are often unaware of what assistance is available or who toturn to for help in meeting their workforce development requirements. Inpast work, we have found, for example, that federal and state employmentand training programs are often confusing for employers and participantsalike and that small businesses may face economic and informationalbarriers to participation in these programs.1 The Workforce InvestmentAct of 1998—currently being implemented—was passed, in part, toaddress these workforce development issues and to provide a greateremployer focus to federal training programs.

While these problems are common across communities, small businessesin some areas are located where business and trade organizations,community colleges, and other public and private organizations havepartnered to create workforce development networks—often referred toas workforce consortia. This emerging industry-based approach offerssmall businesses access to a variety of workforce development activities inwhich they might otherwise be unable to participate. Small businesses can

1Multiple Employment Training Programs: Overlapping Programs Indicate Need for

Closer Examination of Structure (GAO-01-71, Oct. 13, 2000). This study identified 40federally funded employment and training programs, for which a key program goal isproviding assistance to persons trying to find employment or improve their job skills.

United States General Accounting Office

Washington, DC 20548


use these consortia to leverage larger and broader influence and expertiseto better address their individual employment and training needs as wellas create future career pathways for youth. It was within this context thatyou asked us to provide information on how small businesses are workingwith these consortia to address their needs for skilled workers.Specifically, you asked the following questions:

• What factors prompted communities to establish workforce developmentconsortia and what organizations participate in them?

• What activities do the consortia offer to assist small business?• What do consortia partners view as the key principles and most effective

practices for implementing and sustaining workforce consortia?• What is known about the outcomes of workforce consortia?

To respond to these questions, we identified and consulted with nationallyrecognized experts in workforce development and officials fromcommunity workforce consortia organizations. We also reviewedliterature on community workforce development efforts. On the basis ofrecommendations from these sources, we identified communities withwell-regarded community workforce development efforts and selectedfour communities that had established consortia of local organizations toaddress workforce needs. In making this selection, we also considered thelength of time the consortia had been operating as well as including avariety of community sizes and economic bases. We conducted on-sitereviews of workforce consortia in Austin, Texas; Cedar Rapids, Iowa;Charlotte, North Carolina; and Milwaukee, Wisconsin.2 At each location,we discussed consortia development, operations, and activities withofficials from key consortia organizations and with local small businessofficials.

In each of the four communities we visited, consortia were formed inresponse to individual community economic and workforce developmentneeds. In some locations, these needs were identified and examinedthrough formal studies on the community’s workforce conditions andfuture economic challenges. For example, in Charlotte, North Carolina,business leaders working with other community organizations sought to

2We also gathered information on Jobs With a Future, an initiative in Madison, Wisconsin,that is closely associated with the community workforce development consortium inMilwaukee.

Results in Brief


identify strategies to continue the business growth of the area whileexploring potential weaknesses in the local economy. In thesecommunities, local public and private organizations joined together toaddress existing and emerging workforce development issues. Consortiavaried somewhat in membership and activities according to their area’sneeds and resources but were characterized by a strong business focus.Consortia were typically lead by one or two key organizations, such as thechamber of commerce and community college. Other consortia membersoften included local school districts, workforce investment boards,business and trade associations, and unions. In three of the four locationswe visited, officials from consortia organizations had establishedintermediary entities to help link all consortium organizations and to actas a broker or provider of services.

Workforce consortia we reviewed connected small businesses to acoordinated system of organizations and activities that provided theservices and information they needed to address both current and futureworkforce needs. Current needs included identifying and hiring newemployees as well as training existing employees. Consortia activities toaddress businesses’ needs for new employees included activities like jobfairs that brought businesses together with job seekers and initiatives thatlinked businesses with community-based organizations that had pools ofpotential employees. Consortia activities to address training needs forexisting employees included, for example, industry-specific training in theuse of manufacturing technology and English as a second language classesfor improving worker/supervisor communication. Consortia activities thatfocused on future workforce needs were designed to create pathways fornew workers—particularly youth—into the job market. These includedcareer awareness activities for youth, such as job shadowing, andinternships as well as longer-term training, such as apprenticeships, in theskills needed for a specific trade or technical career.

We found consortia organizations identified four important principles anda number of associated best practices that, in their view, were critical tothe operation of their local consortium. According to consortia officials,the key principles were (1) consortia focused primarily on businesses’workforce needs and were organized around key industry sectors in theircommunity; (2) consortia organizations provided leadership anddeveloped ways to sustain on-going, positive working relationships amongall consortium partners; (3) consortia organizations made workforcedevelopment activities accessible to both businesses and prospectiveworkers; and (4) consortia organizations used incentives to makeparticipation in activities attractive to small businesses. Consortia officials


identified a variety of best practices related to the four principles. Forexample, to focus on businesses’ needs, some consortia had establishedindustry sector workforce advisory groups, such as the Building IndustryCareers Alliance in Austin, Texas, and implemented industry-specificemployment and training initiatives. To provide leadership and sustainpositive working relationships, consortia organizations held regularmeetings and discussions to update each other on activities, and in somecommunities, organizations shared working space. To provide access,several consortia organizations had outreach staff to facilitateparticipation in consortium activities. Finally, to provide incentives toattract business participation, a state program in Iowa—administered bycommunity colleges—defrayed hiring and training costs for businessescreating new positions and supported the development of custom trainingpackages for existing employees.

Limited information exists on the outcomes of workforce consortia at thesites we visited. We found no systematic efforts to evaluate overallconsortium effectiveness, but there were isolated attempts to monitorparticipation rates and assess the impact of specific activities on jobretention and future earnings. For example, the Wisconsin RegionalTraining Partnership (WRTP) in Milwaukee, linked central city residents—many of whom had less than a high school education—with employerswho need workers. The organization reported placing over 600 employeesin manufacturing sector jobs—most paying over $10.00 per hour, plushealth care, pension, tuition reimbursement and other benefits.Additionally, the initiative reported that after 1 year, 48 percent of thesenew employees remained in their jobs.

During the 1990s, employers—including small businesses—reportedincreasing difficulty finding, hiring, training, and retaining employees withthe appropriate sets of skills.3 This problem is due in part to that decade’sunprecedented economic growth and the resulting record lowunemployment levels and has been compounded by the widespread andincreasing use of advanced technologies in nearly all sectors of the U.S.economy. The U.S. Department of Labor reported that employment

3Workforce Issues: A Top Priority for Chamber Members, Center for Workforce

Preparation, U.S. Chamber of Commerce, Washington, D.C. (1999).

The Impact of Training and Development on Recruitment and Retention, Council forAdult and Experiential Learning, Chicago, Illinois (1999).

Background


increased by nearly 21 million in the 1990s,4 with the service sector—which includes skilled jobs in health and legal services—showing thegreatest growth. Significant growth also occurred in high-skilloccupations, such as some types of manufacturing and automobile repair,that now use computer technology in their work processes. Additionally,employers report that many new job market entrants, especially youth, arenot equipped with the basic skills and job experience they need to succeedin the present environment. Many have deficits in important employmentreadiness knowledge and skills such as self-reliance, work ethics,teamwork, and communications. Labor projects that the number of youngadults, ages 16 to 24, will increase to 25.2 million, or 16.3 percent, of thecivilian labor force by 2008.

While all businesses face current and future workforce developmentchallenges, small businesses confront additional barriers—both economicand informational—to meeting their workforce needs. Small businessemployers typically have fewer economic resources and staff to devote toidentifying, hiring, training, and retaining employees. The employers maybe discouraged from participation in some federal or state workforcedevelopment programs because they do not have the staff capacity tomanage administrative procedures. Additionally, because they may not beable to dedicate staff to training and personnel matters, small businessesoften have more difficulty than larger employers obtaining information tohelp them identify and address their workforce development needs.Finally, both large and small businesses may hesitate to invest resources intraining an employee who could use the newly acquired skills to secure abetter paying job elsewhere. However, the impact of this “free riding”might be greater on a small business.

According to the Small Business Administration, the approximately 25million small businesses in the United States provide 67 percent ofworkers with their first job or initial on-the-job training in basic skills andhire a larger proportion of younger workers. Meeting the nation’sworkforce needs—including those of small business and youth—has beenthe focus of study and activity by a variety of organizations at both thenational and local levels. In many communities, programs and serviceslinking businesses to potential employees or offering training to

4“Job Growth in the 1990s: a Retrospect”, Monthly Labor Review, December 2000 reportsthat nonfarm payroll employment increased from 107.9 million in 1989 to 128.8 million in1999.


incumbent workers are available through entities such as job centers andcommunity colleges. However, these services may be fragmented amongseveral organizations, making it difficult for small businesses to identifyand obtain the range of services they need to solve their workforceproblems. Federal legislation, such as the School-to-Work OpportunitiesAct of 1994 (STWOA)5 and the Workforce Investment Act of 1998 (WIA), 6

has encouraged communities to create systems that address the educationand training of young adults and the workforce needs of business in amodern, competitive work economy. WIA calls for a strong role for theprivate sector, with local business-lead boards focusing on planning,policy development, and oversight of the local workforce investmentsystem. Recent studies and reports have also pointed to cooperation andcoordination among public and private organizations as a promising wayto address community workforce needs. A report by the National Centeron Education and the Economy notes that recent global and nationaleconomic trends point to the need for local workforce systems that willprovide employers and workers with the support they need for economicsuccess.7 Additionally, a report by the Center on Wisconsin Strategy(COWS) at the University of Wisconsin states that workforce developmentstrategies increasingly depend on partnerships between businesses andworkers, among firms in specific industries, and between the public and

5STWOA authorized federal “seed money” over a limited period of time to states and localpartnerships of business, labor, government, education, and community organizations todevelop school-to-work programs. The act supported the creation of programs with threemain elements: work-based learning (providing participating students with workexperience and on-the-job training); school-based learning (upgrading and integrating theacademic and occupational skills participating students learn in school); and programcoordination to aid the planning, implementation, and operation of the program. All 50states received grants before the program was terminated on October 1, 2001. The U.S.Departments of Education and Labor jointly administered STWOA.

6WIA was passed by the 105th Congress to foster a coherent employment and trainingsystem. WIA provides the framework for a national workforce preparation andemployment system and funds a number of employment and training programs across thenation. Effective July 1, 2000, WIA replaced the Job Training Partnership Act. One of WIA’smajor purposes is to increase the occupational skills, employment, and earnings ofprogram participants. Services are provided to employers and job seekers—includingadults, dislocated workers, and youth—using a one-stop service delivery system thatcoordinates training programs with employer needs.

7Building a Highly Skilled Workforce: A Labor Market System for the 21st Century, The

Workforce Development Program of the National Center on Education and the Economy,Washington, D.C., (1997).


private sector.8 Finally, a policy statement by the Committee for EconomicDevelopment suggests that an intermediary organization can play animportant role in helping establish and maintain community partnerships.9

An intermediary is an entity established by community organizations to actas a focal point, linking businesses with educational institutions,community-based organizations, and other local associations in anetwork—or consortium—to address mutual goals. Intermediaries brokeror provide workforce development services and manage ongoing relationsamong consortium members. Businesses may access consortium servicesand activities directly through the intermediary or through theirassociation with another consortium organization. A communityworkforce consortium with an intermediary organization could includemany of the organizations shown in figure 1, such as chambers ofcommerce, community colleges, school districts, community-basedorganizations, business and trade associations, and unions.

8High Performance Partnerships: Winning Solutions for Employers and Workers, Center

on Wisconsin Strategy for the State of Wisconsin Department of Workforce Development,Madison, WI, April (1999).

9The Employer’s Role in Linking School and Work, A Policy Statement by the Research

and Policy Committee of the Committee for Economic Development, New York (1998).


Figure 1: An Example of a Community Workforce Consortium Consisting of Individual Member Organizations and an

Intermediary Organization

Source: Prepared by GAO based on interpretation of the information received from the consortiareviewed for this study.

In the four communities we reviewed—Austin, Texas; Cedar Rapids, Iowa;Charlotte, North Carolina; and Milwaukee, Wisconsin—workforcedevelopment consortia had been established in response to localbusinesses’ needs and spearheaded by key community organizations, suchas the chamber of commerce or local community college. In some cases,these needs had been identified and examined as part of a formal study oflocal workforce conditions and possible economic challenges. In others,consensus on community workforce needs was reached by consortiaorganization officials. The consortia were based primarily on cooperativerelationships among community organizations rather than on formalagreements. Consortium membership varied by individual community butoften included school districts, business and trade organizations, laborunions, and community-based service organizations, such as the YWCAand family services agencies. Consortia organization officials also servedas members of the local workforce investment boards required under the

CommunityOrganizations FormConsortia inResponse to LocalWorkforce Needs.


Workforce Investment Act.10 Additionally, consortia in Austin, CedarRapids, and Milwaukee had created an intermediary organization tofacilitate the coordination and cooperation of workforce developmentactivities among consortium members and to act as a broker ofinformation and services.

Funding for the consortia organizations was typically a “patchwork” ofpublic and private sources. However, all the consortia we visited receivedsubstantial financial support from private businesses and corporations orfrom private not-for-profit organizations. For example, the Capital AreaTraining Foundation (CATF) in Austin reported receiving fees frombusinesses participating on advisory councils, the City of Austin, andTravis County. The Workplace Learning Connection in Cedar Rapidsreported receiving funding from area corporations, Kirkwood CommunityCollege, and service fees paid by participating school districts. Federalfinancial support also played an important role in the consortia wereviewed. Both CATF and The Workplace Learning Connection reportedreceiving federal School-to-Work funding and WRTP in Milwaukeereceived a grant from the U.S. Department of Labor to train low-incomeworkers for jobs in higher paying fields such as construction, datanetworking, and manufacturing. See table 1.

10Under the act, a majority of board members must be representatives of local areabusiness.


Table 1: Community Workforce Development Consortia Overview

Community Austin, Texas Cedar Rapids, IowaCharlotte, NorthCarolina Milwaukee, Wisconsin

Intermediaryorganization

Capital Area TrainingFoundation

The Workplace LearningConnection

None Wisconsin RegionalTraining Partnership

Participatingorganizations

• Greater AustinChamber ofCommerce

• Austin CommunityCollege

• City of Austin• Travis County• Capital Area

WorkforceDevelopment Board

• Travis County schooldistricts

• Business and tradeassociations, such asAustin Hotel/MotelAssociation, AustinAutomotive DealersAssociation, and theAssociation ofBuilders andContractors

• Kirkwood CommunityCollege

• Cedar Rapids AreaChamber of Commerce

• Grant Wood AreaEducation Agency—anorganization of areapublic school districts

• Business and tradeassociations, such asthe Plumbing, Heatingand CoolingContractors Association

• Unions, such as theInternationalBrotherhood ofElectrical Workers

• Charlotte Chamber ofCommerce

• Central PiedmontCommunity College

• University of NorthCarolina at Charlotte

• Charlotte-MecklenburgSchool District

• Charlotte-MecklenburgWorkforceDevelopment Board

• Business and tradeassociations, such asthe Association ofGeneral Contractorsand the FlexographicTechnical Association

• Wisconsin AFL-CIO,• Greater Milwaukee

Committee• Milwaukee Area

Technical College,• Center on Wisconsin

Strategy• Milwaukee Jobs

Initiative• Community-based

organizations, such asthe YWCA, GoodwillIndustries, andMilwaukee HousingAuthority

Business sectorfocus

Automotive technology,construction, financial,health care, hospitality,information technology,and semiconductors

Agriculture, biotechnology,health care, generalservices, informationtechnology, andmanufacturing

Financial services,transportation anddistribution services,manufacturing, innovativetechnology, professionalservices, and travel andentertainment

Manufacturing,construction, health care,hospitality, technology,and transportation

Examples ofintermediary fundingsources

• Greater AustinChamber ofCommerce

• School-to-WorkOpportunity Actgrants

• City of Austin• Travis County• Capital Area

WorkforceDevelopment Board

• Community ActionNetwork

• Private industrycontributions

• Steering Committeemembership fees

• Grant Wood AreaEducation Agency

• Kirkwood CommunityCollege

• Iowa School to Work• McLeod USA• Rockwell Collins• Cedar Rapids Area

Chamber of Commerce

No intermediary: Memberorganizations support theirown participation inconsortium activities

• Annie E. CaseyFoundation

• U.S. Department ofLabor

• WisconsinManufacturingExtension Partnership

• Wisconsin Departmentof WorkforceDevelopment

• Milwaukee Area andWaukesha CountyTechnical Colleges

• Milwaukee Foundation• Bader Foundation

Source: Prepared by GAO using information received from the consortia reviewed for this study.


While consortia varied according to individual community needs andresources, Charlotte and Milwaukee were examples of the evolution andorganization of community workforce efforts.

• Charlotte, North Carolina — In 1998, a group of Charlotte businessleaders, working with the Charlotte Chamber of Commerce, initiated astudy—Advantage Carolina.11 The goal of the study was to determine howCharlotte could capitalize on its economic advantages to ensure continuedprosperity for the region. Additionally, it explored the strengths andweaknesses of the local economy and how to maximize what was viewedas the tradition of public and private teamwork. Local business,government, and nonprofit organization leaders helped guide the effort.The study—updated in 2000 and 2001—identified the area’s primaryeconomic challenges and several initiatives to address them. Oneinitiative—the workforce development continuum—specifically addressedthe challenge of building a competitive, promotable, and sustainableworkforce. Specific objectives of this initiative included conductingresearch on workforce needs and trends, building a Web site for jobseekers and employers, and building collaboration between highereducation institutions, Charlotte-Mecklenburg Schools, and industry.

To implement study initiatives, the Charlotte Chamber of Commerce andCentral Piedmont Community College (CPCC) assumed importantworkforce development leadership roles that helped foster a communityconsortium. CPCC provided contract and custom training for localbusinesses, a variety of technical and trade curricula, and severalinitiatives aimed at training and employing the disadvantaged. As anoutgrowth of the Advantage Carolina study, the community collegeconducted a survey of local employers to determine current and futureworkforce needs. The Chamber of Commerce has also conductedworkshops to address the specific workforce hiring needs of smallbusinesses and, according to a school official, has worked closely with theschool district to identify businesses to participate in work-based learningactivities, such as job shadowing and internships. Other consortiumparticipants included the Charlotte-Mecklenburg Schools, the WorkforceDevelopment Board, and business and trade organizations. According toofficials, the Chamber of Commerce and its activities were funded throughmember dues and participation fees. Advantage Carolina initiatives werefunded with a combination of public and private funds.

11

Advantage Carolina, Charlotte Chamber of Commerce, Charlotte, North Carolina, (1999).


• Milwaukee, Wisconsin—In the early 1990s, business, government, andlabor leaders in Milwaukee reached consensus about the need to preservethe area’s manufacturing industry and keep jobs in the area that payenough to support families. The leaders determined that by workingtogether they could help sustain industry and help ensure that existingworkers could advance in a career track and young people could moveinto entry level jobs. The leaders convened a series of meetings with theCenter on Wisconsin Strategy at the University of Wisconsin to discuss theidea and, in 1992, the center brokered an agreement between the parties toform a steering committee to guide the creation of the Wisconsin RegionalTraining Partnership (WRTP). The WRTP received funding in 1997 from alocal nonprofit organization—the Milwaukee Jobs Initiative—to improvethe economic prospects of central city families by linking them withtraining and jobs. WRTP worked with local community-basedorganizations that provided pools of potential employees for businesseswith jobs to fill.

WRTP recently expanded to provide workforce development services toadditional business sectors, including construction, health care,hospitality, technology, and transportation. The Milwaukee Area TechnicalCollege worked under contract with WRTP to provide pre-employmentand job training for program participants. Activities were funded bynumerous sources, including the Annie E. Casey Foundation, the U.S.Departments of Labor and Health and Human Services, the MilwaukeeFoundation, Milwaukee County, the City of Milwaukee, and otherMilwaukee-area philanthropic and corporate sponsors.

Small businesses can seek solutions to their workforce problems bylinking with a consortium of community organizations that help themaddress both their current and future workforce development issues.Small businesses in the communities we visited participated in theseconsortia by joining member organizations or engaging in their activities.Consortia activities to help businesses meet current workforce needscentered on finding and hiring new employees as well as on trainingexisting employees. Activities to address future workforce needs focusedon creating career pathways for potential workers—particularly youth.

Small businesses that link with a community consortium—either directlythrough an intermediary or through another consortium organization—canbenefit from consortium services that address their current workforcedevelopment needs and problems. Current needs include both hiring newemployees and training existing employees. To meet these needs,

Consortia ActivitiesAddress Current andFuture WorkforceNeeds

Consortia ProvideEmployment and TrainingServices to AddressCurrent Workforce Needs


businesses must identify, recruit, and hire workers to fill current jobvacancies. Additionally, businesses must maintain and upgrade the skillsof the existing workforce to stay current with changes in technology andallow for future growth. Consortia can be instrumental in helpingbusinesses connect with prospective employees who are equipped withthe appropriate job skills and, in some cases, the pre-employment skillsand social supports they need to be successful jobholders. In the consortiawe reviewed, we found a variety of activities that were designed to meetbusinesses’ immediate employment needs, including job fairs to provide avenue for businesses and prospective employees to come together,initiatives with community-based organizations that targeted thedisadvantaged, and WIA one-stop job centers. Specific examples of whatwe found include the following:

• In Milwaukee, the WRTP—a consortium intermediary organization—worked with community-based organizations such as the YWCA and theMilwaukee Housing Authority to link businesses with pools of potentialemployees. The prospective employees were offered employment basedon their current qualifications or their completion of the requisite trainingclasses in specific job skills and pre-employment skills such ascommunication and goal setting. WRTP also worked with the communityorganizations to help prospective employees secure job retention servicessuch as day care and transportation.

• Central Piedmont Community College, one of Charlotte’s consortiumleaders, sponsored Pathways to Employment—a 12 to14 week welfare towork program that provided academic, social, and job-specific training toprepare welfare recipients to enter the workforce as skilled employees.Pathways to Employment linked CPCC with the local Department ofSocial Services, community businesses, and other organizations to moveparticipants from welfare to work. Pathways prepared students foremployment in five curriculum areas: customer service representative,medical office administration, medical reimbursement specialist, hospitalunit coordinator, and office information systems specialist. Thesecurriculum areas were developed based on community workforce needs.Pathways developed partnerships with local employers to assist studentsin attaining employment after graduation. Businesses participating in theprogram agreed to consider program graduates for employment.

• The Capital of Texas Eastview Workforce Center—one of three WIAworkforce board job centers in Austin and a consortium member—waslocated on a campus of Austin Community College and across the streetfrom a low-income housing facility. One of the goals of the center was to


help both large and small businesses in the community find employeeswho are ready to work and have the appropriate job skills. The Centersponsored a job fair each Thursday where businesses could talk withprospective employees. According to a center official, most of thebusinesses that used the center have fewer than 100 employees. Theconsortium linked with Huston-Tillotson College, a local historically black4-year institution that provided computer training on site. Daily classeswere also offered in job search skills, including resume writing andinterviewing techniques.

Consortia we reviewed also offered a wide range of activities to meet thetraining needs for the existing workers of small businesses. According toconsortia organization officials, training provided these incumbentworkers with the skills to keep current with evolving technology, revisedlaws and regulations, safety standards, and job processes. Training canhelp companies retain and sustain their current workforce and provideopportunities for potential business expansion and growth, as well asfoster employee advancement. Businesses often looked to consortiummembers such as technical and community colleges to provide training forincumbent workers. However, other consortia organizations may alsoprovide training for the existing workforce. Incumbent worker trainingopportunities in the consortia we reviewed included:

• In Cedar Rapids, the Chamber of Commerce, partnering with KirkwoodCommunity College, worked with local businesses to address theirworkforce training needs. This project received funding from Iowa’sAccelerated Career Education initiative, which has allocated funds forcommunity colleges to develop accelerated training programs to meet theneeds of industry. Recent activities in Cedar Rapids focused on threeindustry sectors—manufacturing, information technology, and pressoperators. Small businesses’ incumbent workers could receive training ina variety of areas including upgrading computer skills, workplacecommunication and conflict resolution, and advanced training for newgenerations of equipment. Specific job-skills courses included blueprintreading, industrial math, and electrical/mechanical technician training.

• In Austin, the Community Technology and Training Centers—sponsoredby consortium intermediary Capital Area Training Foundation, and locatedat two local high schools in low-income neighborhoods—were open toparticipants at no cost during non-school hours. They offered a range ofcomputer classes from basic skills courses to advanced software training,but with an emphasis on business skills. The centers also provided freeInternet access and career guidance services. According to an official,


small businesses participated by sending employees for training and somesponsored internships through the center.

• In Milwaukee, WRTP was originally established to help the manufacturingindustry upgrade worker skills in response to changing technology. Thisconsortium organization continued to address incumbent worker skills inthe manufacturing sector and expanded to include additional industrysectors. WRTP assisted businesses in developing education and trainingprograms. For example, according to a union official, WRTP worked withboth the union and management of a local foundry to provide the mostlySpanish speaking workers with English as a second language and mathtraining to help them communicate and work more effectively and qualifyfor higher skill jobs. WRTP’s menu of employer services for incumbentworkers also included providing technical assistance with theimplementation of work-based learning and mentoring systems,development of worker training programs such as on-site learning centersand apprenticeship programs, and the development of innovativestrategies for reducing absenteeism and turnover.

Small businesses and consortium officials in the communities we visitedsaid that they believed participation in career pathway activities—particularly for youth and young adults—was an important way for themto ensure that businesses will have a skilled workforce available in thefuture. Career pathway activities offered by consortia organizations wereintended to expand students’ employment horizons by exposing them tothe wide variety of future career opportunities available to them. Someconsortia career pathway activities prepared students for employment byproviding work-based learning opportunities, such as summer internshipsat a job site. Others, like apprenticeships, provided longer-term training ina specific trade or technical field.

In the communities we visited, business participation in consortiumactivities to introduce middle and high school students to careeropportunities included short-term interactions between business officialsand students, such as a business representative speaking to an automotiverepair class or taking students on a tour of a manufacturing plant.Additionally, consortia offered opportunities for businesses to participatein more extensive work-based learning experiences like providinginternships and part-time jobs. Specific examples include the following:

• In Austin and Cedar Rapids, the consortia intermediary organizations—CATF and The Workplace Learning Connection—sponsored internships,job shadowing, and industry tours to increase middle and high school

Consortia Offer Activitiesto Small Businesses ThatGuide Young Adults toFuture WorkforceOpportunities


students’ awareness of the connection between academic studies and theirfuture career opportunities. Speaker’s bureaus in several industry sectorsalso connected professionals to students in the classroom. Theintermediaries also worked with employers to provide opportunities forhigh school teachers to participate in job-site activities, such as summerinternships or the teacher at work program, that expanded theirunderstanding of the business world and provided practical experienceand relevant information they could incorporate into their curricula.These intermediary activities were supported, in part, with school-to-workfunding.

• Consortium member Charlotte Mecklenburg School District offered arange of work-based learning opportunities that included internships toexplore career areas, classroom-related job experience with businessesand community agencies, and job shadowing for students to observebusiness professionals and learn about work environments in their fieldsof interest. The district also partnered with local businesses to sponsorsummer internships for students enrolled in its Finance and Travel andTourism career academies.12 In addition, a school district official reportedthat the district would open a new technical high school in 2002. Theschool will teach curricula based on the six key industry sectors identifiedin the Advantage Carolina report from the Charlotte Chamber ofCommerce. The technical school will have business partners that willprovide technical expertise as well as some of the faculty.

Longer-term training programs offered by consortium organizations, suchas apprenticeships and cooperative (co-op) education programs alsocreated future career pathways. Apprenticeship and co-op programsprovided businesses with the opportunity to train future employees in theskills needed for a specific technical or trade career. Apprenticeships areusually several years in duration and apprentices work part- or full-timeand attend classes part time. In co-op programs, students may alternateperiods of time working full time with attending class full time. Theseprograms typically linked businesses with local technical and communitycolleges and sometimes secondary schools. Businesses worked with thecommunity colleges in developing and updating the curricula, teaching

12A career academy is a small high school learning community, organized as a “school-within-a-school,” that aims to (1) create a more personalized and supportive environmentfor students and teachers and (2) provide career-oriented course work and experience. SeeAt-Risk Youth: School-Community Collaborations Focus on Improving Student Outcomes

(GAO-01-66).


classes, and providing training on the job-site. Businesses could alsoparticipate in apprenticeship programs through their trade associations.Programs in the locations we visited included:

• In Charlotte, six manufacturing companies have partnered with CentralPiedmont Community College to develop Apprenticeship 2000.Apprentices typically began working part-time for the company in theirsenior year of high school, and were employed full-time upon graduationwhile taking coursework at CPCC. The apprentices were paid for all workand daytime classroom hours as well as tuition and fees. After completionof the 4-year program, students received an associate of applied sciencedegree from the community college and a journeyman’s certificate fromthe North Carolina Department of Labor. The college also sponsored a co-op program leading to a 2-year associate degree in automotive repair,according to an official. Students spent the first 8 weeks in classroomtraining and the remainder of the semester working at a car dealership.

• In Milwaukee, automobile dealerships have participated in consortiumactivities with Milwaukee Public Schools through a youth apprenticeshipprogram for high school juniors and seniors. During the 2-year program,students studied auto mechanics at school and worked part-time at adealership during the school year and full-time during the summer. Eachstudent was assigned to work with and be mentored by a mastermechanic. The curriculum was provided and the program certified by theNational Automotive Technician Foundation, which represents all majorautomobile manufacturers.

• In Cedar Rapids, representatives from construction trade unions active inthe local consortium said they sponsored apprenticeship programs andworked with Kirkwood Community College to provide the educationalcomponent while the trade unions provided the on-the-job training. Unionofficials reported that they targeted the apprenticeship programs to youngadults—over 21—because they generally are more mature and have somework experience. In addition, according to officials, many of the job-sitescan be hazardous and challenging, and younger workers tend not to be ascareful or attentive to their work.


We found that consortia organizations shared important principles andrelated best practices that they believe are essential in implementing andsustaining workforce development activities. Consortia officials weinterviewed identified four key principles common to all of thecommunities we visited: (1) activities are focused primarily on businesses’workforce needs and are structured around key industry sectorsrepresented in their community; (2) consortium organizations provideleadership and maintain on-going, positive working relationships withtheir partners; (3) workforce development activities are accessible by bothbusinesses and prospective employees; and (4) consortium organizationscreate ways to make participation in activities more attractive to smallbusinesses.

All of the locations we visited had identified key industry sectors in theircommunities and had organized their workforce development efforts totarget local businesses’ needs in those sectors. Several consortia officialstold us that organizing by industry sectors is an effective and efficientapproach because businesses in the same sectors often have similarworkforce issues and can work together to resolve them. Table 2 showsthe targeted business and industry sectors in each community consortiumwe reviewed.

Table 2: Community Consortia Targeted Business and Industry Sectors

Community consortium Targeted business and industry sectorsAustin, Texas Automotive technology, construction, finance, health care,

hospitality, information technology, and semiconductorsCedar Rapids, Iowa Agriculture and biotechnology, health care, general

services, information technology, and manufacturingCharlotte, North Carolina Financial services, transportation and distribution services,

manufacturing, innovative technology, professionalservices, and travel and entertainment

Milwaukee, Wisconsin Manufacturing, construction, health care, hospitality,technology, and transportation

Source: Prepared by GAO using information from the consortia reviewed for this study.

• In Cedar Rapids and Charlotte, the sector focus grew out of studies doneon community economic issues. Both studies identified important localindustry sectors and the workforce needs of each sector. According toofficials, many small businesses were represented in each sector,especially in the manufacturing, construction, and automotive sectors.

CommunityWorkforceDevelopmentConsortia Share KeyPrinciples and BestPractices

Activities OrganizedAround Industry Sectors toMeet Businesses’ Needs


• Kirkwood Community College in Cedar Rapids initiated a study—Skills2000 to determine local workforce needs13. The study surveyed 33 majorarea businesses representing five key industry sectors: manufacturing,information technology, health care, agriculture and biotechnology, andgeneral services. Each industry sector identified a mismatch between theskills they wanted in employees and the skills in the available workforce.Kirkwood, working with other consortium members, used this study todevelop specific training programs based upon the needs of localbusinesses in those sectors. One example is the Press Consortium TrainingProgram where 13 small printing companies joined together withKirkwood to address their training needs in an effort to remaincompetitive and current with new technologies. They developed andimplemented six 10-week training modules for incumbent press assistantsand press operators to receive training in press operations, essential skills,sales, and customer service. Project members reported that they haveshifted the focus from competing with each other for qualified employeesto working together to promote the printing industry.

• In Charlotte, the Advantage Carolina study, done in 1998, identified six keyindustry sectors that consortium organizations used to identify localworkforce development issues. Three sectors represented already existingindustry clusters: financial services, transportation and distributionservices, and manufacturing. Three represented emerging industries:innovative technology, professional services, and travel andentertainment. Together they accounted for 60 percent of Charlotte’semployment growth between 1980 and 1999. Representatives from each ofthe sectors reported the critical issues associated with each sector andidentified strategies to address them. Workforce development and trainingwas a theme common to all six sectors, and several consortium effortsaddress the workforce needs identified by business. For example, thechamber of commerce’s Information Technology Collaborative initiative—implemented in response to their Advantage Carolina study—addressedthe need for skilled workers by developing information technologycertification programs and by linking students with businesses.

• The Capital Area Training Foundation—Austin’s intermediary—convenedseven industry-lead steering committees that collaborate with educatorsand employers to develop workforce solutions for the key industry sectors

13

Skills 2000 Commission Report, Kirkwood Community College, Cedar Rapids, Iowa,(1999).


in the community. Targeted industries included semiconductormanufacturing, construction, finance, hospitality, information technology,automotive technology, and health care. The steering committees wereresponsible for engaging employers in designing career pathways;sponsoring work-based learning experiences for students and teachers;and linking employers directly with schools and post-secondaryinstitutions. One example of the steering committees was the BuildingIndustry Construction Alliance, which according to an official, includedabout 75 businesses and several other consortium organizations. TheAlliance also worked with local high schools and educational institutionsto develop career pathways for the construction trades.

• In Milwaukee, the industry sector approach to workforce developmentbegan when WRTP established a manufacturing steering committee toassist employers and unions in the manufacturing sector in improvingemployment security for current employees and career opportunities forcommunity residents. This committee played the important role ofmonitoring the health of local manufacturing businesses to help guideworkforce development activities in their communities. WRTP has sinceexpanded to include other industry sectors such as construction,hospitality, technology, transportation, and health care, and currentlyworks with over 100 member businesses and unions.

Consortia we reviewed were loose alliances of organizations, but hadestablished firm consensus on both community problems and goals amongconsortia members. Key consortia organizations provided leadership anddeveloped close working relationships with other member organizations inan effort to implement and sustain workforce development activities intheir communities. Officials at some locations cited leadership as a vitalcomponent of the operations of workforce consortia. Additionally, someconsortia officials we spoke with said that close coordination andcommunication among organizations was critical in meeting localworkforce needs. Consortia efforts to encourage strong leadership andpromote positive working relationships included:

• In Austin, several consortium organizations including Austin CommunityCollege, the Capital Area Training Foundation, the WorkforceDevelopment Board, the Tech-Prep Consortium, and the Capital AreaEducation and Careers Partnership co-located their offices in AustinCommunity College’s Highland Business Center. College officials told usthat the centralization of these organizations took place under theleadership of the president of the community college, who believed thathaving consortium members in the same location would promote

Consortia ProvideLeadership and SustainPositive WorkingRelationships


coordination and better serve the organizations and the community.Consortium officials reported that co-location also facilitates regularcommunication, scheduling of meetings, and fosters the feeling ofcollegiality in working across organizations that often have different, butcomplementary, missions.

• Consortium organization officials in Charlotte reported that the CharlotteChamber of Commerce had taken the lead in workforce development byconvening all of the key consortium organizations and facilitating regularcommunication among these members. According to one official, thechamber also recognized the need to form a business and educationcollaborative infrastructure to direct the management of pertinenteducation issues. The chamber worked closely with local businessrepresentatives and public officials to establish 17 key initiatives—including the Information Technology Collaborative and the WorkforceDevelopment Continuum—that grew out of the Advantage Carolina study.The chamber also encouraged consortium organizations to participate onmultiple boards and committees and partner with other consortiummembers on specific activities. For example, chamber officials told us thatthe Director of Workforce and Professional Development at the chamberhad a seat on the local WIA workforce development board. In addition, thechamber sponsored a Small Business Round Table every other monthwhere organizations serving small businesses meet to discuss what theyare doing and to coordinate dates of activities and events. Organizationsincluded are the Small Business Technical Development Center at CentralPiedmont Community College, the Small Business Administration, City ofCharlotte, Mecklenburg County and the Metrolina Entrepreneur Council,an organization of small companies—many of them technology based. Inaddition, according to an official, the chamber has recognized the need toform a business/educational collaborative infrastructure to direct themanagement of pertinent educational issues.

• In Milwaukee, officials from area unions told us that the leadership of theWisconsin Regional Training Partnership has helped build close workingrelations between union and management that are critical to maintainingand sustaining workforce development activities. The officials said theWRTP had credibility with the unions from the beginning because nearlyall of the WRTP staff had union experience and that WRTP provided thelink between the unions, educational institutions, and other consortiumorganizations for workforce development activities. At each businessworking with WRTP on workforce development, there was a union co-chair of the activities. At the regional and local level there were unionrepresentatives on all of the committees that implement WRTP goals and


initiatives. Consortium officials said that the relationship—built by theunion, employers, and WRTP—was now established and would continueeven if the economy changes and the labor market weakens.

Workforce development activities that are convenient and easilyaccessible help engage small businesses and increase awareness ofemployment opportunities for prospective workers. Small businesses andconsortia officials alike emphasized the importance of easy access forsmall business owners and potential employees. Consortia organizationsoffered multiple doorways into workforce development activities for smallbusinesses through member organizations or intermediary outreach.Consortia used strategies such as providing outreach services to localsmall businesses to inform them of opportunities in workforcedevelopment activities and assisting prospective employees overcomepotential barriers to employment such as finding childcare services.Additionally, since businesses differ in the amount of time and resourcesthey have available to devote to workforce development, consortia offereda range of participation options to make workforce development activitiesaccessible to all businesses. Examples of how consortia we visitedprovided easy access to activities included:

• Kirkwood Training Services, a division of continuing education atKirkwood Community College in Cedar Rapids, had program directors thatKirkwood officials told us were considered the “sales and marketing team”and facilitated business participation. Officials explained that the programdirectors met with both small and large businesses and developedcustomized training as well as industry sector training programs. Theprogram directors called on local businesses to discuss training needs andtraining opportunities. Kirkwood Training Services contracted with over150 businesses a year to provide customized training services. Smallbusinesses could choose from several different options to accessworkforce development activities that met their workforce training needs.For example, Kirkwood Community College developed industry sectortraining programs where like-businesses pool resources for training. Inone of them, eight call center businesses combined efforts with Kirkwoodto create an 11-week customer call center program. Training includedwork skills, telephone skills, and etiquette and customer service skills. Thecustomer call center program enabled all eight industry partners to haveaccess to a pool of qualified potential employees and share the trainingcosts. Additionally, Kirkwood Training Services offered computer-basedtraining at its training center, including computer training modules andinstructional software to provide online skill-specific training in selectedfields such as information technology, safety, and workplace basics.

Activities EasilyAccessible to Businessesand Prospective Workers


Officials reported that small businesses could use the center for employeetraining, and the center was open in the early mornings and in theevenings as well as during the workday to provide easy access.

• WRTP officials in Milwaukee recognized that difficult family and financialcircumstances could present serious access problems to employment formany prospective employees. To address these issues, WRTP officials toldus that they worked with community-based organizations to help low-income clients identify and overcome barriers to employment such asdifficulty in finding childcare programs or the necessary transportationthat could otherwise prevent them from succeeding in the workplace.WRTP also helped prospective employees develop back-up plans so that if,for example, a daycare provider gets sick, employees have otherorganizations or people that will help.

• Industry liaison staff at the intermediaries in Austin and Cedar Rapidsfacilitated businesses’ access to workforce development activities byoffering a variety of ways to participate. Additionally, liaison staff helpedbusinesses decide which activities best suit their workforce needs. Theseranged from a single speaking engagement at a local school to providingon-the-job training to a student intern. The intermediaries also offered highschool students an assortment of work-based learning opportunitiesranging from company tours to apprenticeships. In Cedar Rapids, liaisonstaff at the intermediary, The Workplace Learning Connection, stressedthe importance of workforce development activities being easy foreveryone to use—businesses, schools, and students—because if they werenot, participation would suffer.

• The Charlotte-Mecklenburg School District reported employing fourpeople that provide outreach to local businesses to engage them in school-to-career programs in area high schools. These staff informed businesseson how to become involved in community workforce developmentactivities and how this participation might be a financial benefit to them.High school students were connected with the businesses in work-basedlearning activities such as job shadowing, internships, andapprenticeships. School district officials reported that small businesseschose their level of involvement based on their resources and workforceneeds by working closely with the school district staff.

Consortia officials told us that incentives make participating in workforcedevelopment activities more appealing to small businesses. Officials saidthat they engage businesses in workforce development activities bypointing out a number of specific benefits. Some noted that providing

Incentives Attract SmallBusiness Participation


businesses with skilled workers to meet their workforce needs could be asignificant enough incentive to participate. Other incentives in thelocations we visited included the possibility of longer-term benefits suchas building the future workforce by connecting high school students withlocal businesses. Additionally, in some consortia, financial incentivesattracted businesses to become involved in workforce developmentactivities.

• In Cedar Rapids, Kirkwood Community College provided financialincentives for businesses to participate in workforce developmentactivities through two state jobs training programs that lower trainingcosts. Kirkwood officials said that businesses learn about these programsthrough direct mail marketing, seminars, outreach from staff at KirkwoodTraining Services, and also by word-of-mouth.

The first jobs training program, the Iowa Industrial New Jobs TrainingProgram, was created in 1983 to provide an economic incentive to new orexpanding industries in Iowa. Eligible companies that were creating newpositions or new jobs could receive state funding for training administeredthrough their local community college. The community college district inwhich a qualifying business is located initially pays the costs of thetraining program—financing it through the sale of job training certificates(bonds.) The community college is repaid over a 10-year period by thebusiness diverting 1.5 or 3 percent of the state payroll tax it withholds onthe employees’ wages for the newly created jobs. Property tax revenues,resulting from capital improvements, might also be used for repayments.Repayment of the certificates does not involve additional taxes to thebusinesses. The training certificate amount a business receives depends onthe number of jobs it creates and the wages it pays those positions.

The second jobs program, the Iowa Jobs Training Program, was created tohelp Iowa businesses fund customized training for current employees.Community colleges assisted businesses with the development of trainingprograms that were funded by cash awards through the Iowa Departmentof Economic Development. The maximum amount of funding was $25,000for each project, and businesses could receive a maximum of $50,000 over3 years. Eligible applicants included businesses engaged in manufacturing,processing, assembling products, warehousing, wholesaling, or conductingresearch and development. Reimbursable services included skillassessment, adult basic education, and the cost of training services,materials, and professional services.


• In Milwaukee, officials at WRTP reported they were able to provideservices to individual businesses at no out of pocket cost using grantmoney received from a variety of sources, including the Annie E. CaseyFoundation and the U.S. Department of Labor. WRTP services includedtechnical assistance with the transition to new technologies and workprocesses, expansion of worker education and training programs,improvement of work-based learning and mentoring systems, adoption ofinnovative strategies for reducing absenteeism and turnover, anddevelopment of cost-effective alternatives to temporary employmentagencies. Employers contributed in-kind support by providing equipment,materials, and job shadowing and mentoring opportunities. One businessofficial we spoke with acknowledged that he saw a significant costincentive to using WRTP’s free employment services. He said that byworking with WRTP, he will save the approximately $3,000 per employeehe would have to spend if he worked with a temporary employmentagency to identify potential employees.

• Consortium organization officials in Charlotte told us that businessesbenefit from participation in activities such as speaking engagements andteaching courses because they can have first opportunity to recruitpotential new employees. For example, the Information Technologyprogram at Central Piedmont Community College was a five- to six-levelcertificate program that asks business members to speak or teach. Theofficials report that the program had about 100 part-time instructors, halfof whom are from small businesses. Additionally, a CPCC official reportedthat the college provided training assistance, at no cost, to North Carolinabusinesses that create new full-time manufacturing and customer servicepositions. Two programs, New and Expanding Business Industry andFocused Industrial Training, provided customized training services thatincluded pre-employment training, on-site instruction, and materials. Athird state-funded program—In-plant Training—also assisted businesses,at no cost, in providing employees with in-service training in basic jobskills.

Outcome studies of workforce development activities at the sites wevisited were limited in scope. We found that some consortia organizationsin some locations reported collecting data to monitor the number ofparticipants in activities such as job fairs and internships, employeeplacements following completion of training programs, and employmentretention and advancement from local workforce development initiatives.However, officials said that consortia organizations did not have systemsin place to evaluate the overall effectiveness of workforce developmentactivities in their community. Outcome information for specific activities

Limited InformationAvailable on ProgramOutcomes


on participation, employee placement, and employment and retentionrates included:

• In Milwaukee, WRTP’s Manufacturing Jobs Connection project targetscentral city residents—many of whom have limited work experience andless than a high school education, according to a program official. Theproject reported that—since its inception in 1997, 202 participants havecompleted the program’s customized training and nearly all were placed inmanufacturing jobs. Fifty-seven of the placements were with smallbusinesses of 100 or fewer employees—earning an average wage of $10.75per hour. As of January 2000, the employees’ job retention rate was 68percent for 3 months, 63 percent for 6 months, and 48 percent for 12months. According to an official, WRTP has placed more than 1,000employees in jobs—over 600 in manufacturing—since 1997 with most jobspaying at least $10.00 per hour, plus health care, pension, tuitionreimbursement, and other benefits. The project also reported an increasein program participants’ annual earnings from about $9,000 to $23,000 peryear in the first year on the job.

• In Austin, CATF—the consortium intermediary—reported placing over2,000 high school students in summer internships in 2000 as well as 1,350middle school students in job shadowing activities during the 2001 schoolyear. The annual Greater Austin @ Work High School Career Fairsponsored by CATF attracted 2,600 students from 25 high schools and over170 employers, colleges and universities, and community-basedorganizations in 2000. Additionally, CATF’s Construction GatewayProgram, a five-week job-training program for the construction trades, hasgraduated 504 trainees in the past 6 years—many of them incarceratedyouth. Of the participants who graduated between 1994 and 1999, 259 weresubsequently employed in the construction field. Program officials wereplanning to use a workforce commission database to survey the program’sgraduates to determine their work progress since graduation.

• In Charlotte, Central Piedmont Community College had several programsthat tracked participation and retention rates. For example, the Pathwaysto Employment program had 70 to 80 participants per semester, most of


whom received Temporary Aid for Needy Families (TANF)14. Pathwayswas a short-term training program designed to prepare participants toenter the workforce as skilled employees in areas including customerservice, heating and air conditioning, medical office administration andearly childhood development. Program officials reported an 80 percent jobplacement rate and a 75 to 80 percent retention rate after 3 months. InApprenticeship 2000—a 4-year program where participants work andattend community college classes—officials reported there were 45apprentices participating at the time of our review. Outcome informationis not formally collected; however, a representative from one companytold us that only 2 of the 28 apprentices it has sponsored have dropped outsince the program's inception.

• In Cedar Rapids, The Workplace Learning Connection trackedparticipation rates for all work-based learning activities. Reported levels ofstudent participation in these activities increased from fiscal years 1999through fiscal year 2000 as shown in table 3.

Table 3: The Workplace Learning Connection Student Participation - Fiscal Years1999 and 2000

The Workplace LearningConnection services

Student participationfiscal year 1999

Student participationfiscal year 2000

Job shadows 1,152 2,800Internships 100 150Student tours Minimal 2,250Teacher tours Minimal 270Teacher @ Work Program 24 50Teacher inservices Minimal 250Classroom speakers 0 4,125Career fairs 0 175

Source: Prepared by GAO using The Workplace Learning Connection data.

Additionally, the intermediary reported that 37 students who had served asunpaid interns with local businesses in fiscal year 2000 were later hired aspaid part-time employees. The Workplace Learning Connection officialstold us that they also measured the success of activities by the continuing

14TANF was created as part of the Personal Responsibility and Work OpportunityReconciliation Act of 1996 to replace cash assistance under the Aid to Families withDependent Children. It specifies several broad goals including ending the dependence ofneedy parents on government benefits by promoting job preparation, work, and marriage.TANF makes $16.8 billion in federal funds available to states each year through 2002.


use of their services by the schools—since the schools pay a fee forservice. At the time of our review, the intermediary had memoranda ofunderstanding with 29 of the 33 school districts in its region. KirkwoodCommunity College in Cedar Rapids reported that it, along with 268participating businesses, has generated about 19,000 new jobs through theIowa Industrial New Jobs Training Program since 1983.

Partnerships among private sector groups, local governments, and theirpublic agencies continue to emerge as an important force in addressinglocal workforce development problems. These partnerships, oftenprompted by adverse or changing local economic conditions, have strongbusiness leadership, focus, and financial support. They address thedisconnect between the community’s employers—especially smallbusinesses—and workforce development services designed to identify andprepare entry level workers, upgrade the skills of existing workers, andcreate career pathways for young adults. Within each community wevisited, the capacity to address these workforce development needs waspresent. What had been missing was a consistent and stable mechanism tolink businesses to the employment and training resources they needed.While the consortia followed similar paths in their approach, each locationaddressed its problems by mobilizing the unique strengths of its locale,adapting to the special circumstances of the community. Often found inthese communities, and partners with the consortia, were the efforts ofboth current and past federal initiatives—local WIA boards andpartnerships established under the School-to-Work Program. Theinfrastructure created by federal initiatives like these, that can supportnew service entities operating in harmony with existing service systems,appears to be a promising way of promoting broad national goals whileproviding the local discretion necessary to create solutions to fit with localproblems.

We provided officials at the Department of Labor and consortia officialsfrom Austin, Cedar Rapids, Charlotte, and Milwaukee an opportunity tocomment on a draft of this report. All reviewing officials generally agreedwith the contents of the report and some provided clarifications andtechnical comments that we incorporated where appropriate.

We performed our review from September 2000 to July 2001 in accordancewith generally accepted government auditing standards.

Conclusions

Agency Comments


As agreed with your office, unless you publicly release its contents earlier,we will make no further distribution of this report until 30 days after itsissue date. At that time, we will send copies of this report to theHonorable Elaine L. Chao, Secretary of Labor, appropriate congressionalcommittees, and other interested parties. We will also make copiesavailable to others on request.

Please contact me on (202) 512-7215 if you or your staff have anyquestions about this report. Key contributors to this report are listed inappendix I.

Sincerely yours,

Marnie S. ShaulDirector, Education, Workforce, and Income Security Issues

Appendix I: GAO Contacts and Staff

Acknowledgments

Page 30 GAO-02-80 Consortia Provide Needed Services

David D. Bellis, (415) 904-2272Susan J. Lawless, (206) 287-4792

In addition to those named above, the following individuals madeimportant contributions to this report: Lisa A. Lusk, Scott R. McNabb,Dianne L. Whitman-Miner, Howard J. Wial, James P. Wright, Jonathan H.Barker, and Richard P. Burkard.

Appendix I: GAO Contacts and StaffAcknowledgments

GAO Contacts

StaffAcknowledgments

(102012)

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