View All
March 17, 2010

NH WORKFORCE INVESTMENT BOARD QUARTERLY MEETING -
March 17, 2010

Meeting Location: Dept. of Resources and Economic Development
172 Pembroke Rd., Concord, NH

Members/Proxies Present: Dick Anagnost (Chair), George Bald, Kevin Cash, David Cioffi, George Copadis, Dwight Davis, Dave Juvet, Jay Kahn, Elizabeth Leadbeater, Carl Lindblade, Tara Reardon, Terry Smith (Dick Anagnost held proxy for Steven Schubert this meeting)

Others Present: Fran Alain, Jackie Heuser, Cynthia Hunzelman, Pam Oliwa, Michael Power, Amanda Shaffer, Bonnie St. Jean, Cathy Yeager

Members Not Present: Denise Benson, Betsy DeVries, Dick Dunfey, Debra Grabowski, Ruth Griffin, Richard Gustafson, Gale Hennessy, Bill Hatch, Linda Kangur, Paul Leather, Alan Reische, Deborah Reynolds, Steven Schubert, Steven Shulman, James Wagner

Handouts: Meeting Packet and New Hampshire Working

Call to Order: Chair Anagnost called the meeting to order at 2:09pm.

December 16, 2009 Meeting Minutes: Carl Lindblade moved to accept the December 16, 2009 meeting minutes as circulated. Kevin Cash seconded. David Cioffi noted a typo in the word "networking" on the top of the 2nd page. Lindblade moved to accept with the amendment. The motion passed unanimously.

Committee Meeting Minutes: George Copadis moved to accept the committee minutes as presented. Jay Kahn seconded. The motion passed unanimously.

Statewide Funding Recommendation: Jackie Heuser asked attendees to turn to Tab 3. Currently we have $567,138.41 (10% ARRA discretionary funds) at the state level. Staff recommend allocating those federal funds to service providers for expenditure at the local level for adults and dislocated workers. This would result in additional training slots and additional local staff to assist with the increase in program participants. If approved by the board, staff will make the recommendation to the Governor for final approval. The group discussed over-extended staff operating under large caseloads, continuing ITAs supported by formula funding beyond April 2010, the impact on new PY allocations expected July 1st, concern about people on UI and in training programs falling off the UI system, and the need to obligate and expend ARRA discretionary funds by June 30.2011.

Jay Kahn moved to approve the allocation recommendation. Commissioner Copadis seconded. The motion passed unanimously.

Eligible Training Provider Waiver: Jackie Heuser reported that a federal review has been completed, and Amanda Shaffer (Region I Federal Representative) commented that it went very well. UDSOL believes NH is out of compliance with ETP continuing eligibility procedures and is recommending that the state submit a process wavier to bring the state into compliance. Staff prepared a wavier for the board to review. The board discussed the OWO staff recommendation to submit the waiver to USDOL.

Jay Kahn moved to approve submission of the waiver. David Cioffi seconded. The motion passed unanimously.

Procurement of Major Service Contracts: Goodwill Industries has indicated an interest in bidding for WIA service provider contracts; adult and dislocated worker services and, maybe, youth. Board members were directed to the current Procurement Policy in the board packet. Staff is recommending that an RFP for the major service provider contracts be issued in September 2010 followed by committee review and provider selection in December or January 2011, allowing a 6-month ramp-up period prior to the start of a new program year in July 2011. Board members discussed the current policy, including the requirement that a service provider be able to demonstrate the ability to operate a "statewide" program in order to be considered for contracting. The board recommended that the current Procurement Policy be revised to align with State policy and procedures. The board at the June 2010 meeting will review the revised policy.

Jay Kahn made a motion to accept staff recommendation to begin the RFP process in September for fiscal year 2012. Kevin Cash seconded. The motion passed unanimously.

Discussion Topics & Updates on Workforce Activities:
NH Working Initiative - Commissioner Reardon provided New Hampshire Working and described the three components: Stay at Work, Return to Work, and (effective January 2011) Get Ready to Work. Seventeen states currently offer work-share which is designed to divert layoffs. The Commissioner explained work-hour reductions, coordination with identically reduced wages and unemployment benefits (part of SB-501), requirements that employers keep benefits in place, and NHES approval of plans up to 26 weeks for non-seasonal workers. A NHES team has been established to implement SB-501, requiring use of multiple software, form development, and staff coordination. Get Ready to Work was rolled out recently to help unemployed claimants identify a job opportunity and train with the employer. With a limit of up to 24 hours a week six weeks a year, it is important that claimants and employers are well matched. An employer and trainee agreement has been developed for signatures, and it clearly identifies expected skill sets. Training employer and trainee surveys are used. The program is currently used in Georgia and in Texas where 50% to 60% participating workers acquire the positions. NH claimants and businesses are anxious to begin the program. Responding to funding questions, Tara Reardon noted that Return to Work claimants receive employment benefits for the standard 26-week limit.

Regarding Return to Work program worker's compensation matters, Comm. Reardon noted that an interim solution and long-term "belt & suspenders" remedy have been developed. She explained coverage under the state's policy with administrative service dollar-for-dollar claim reimbursement. There may be a legislative amendment tack on providing appropriate statutory language allowing NH to buy a policy, for which an RFP will be put out soon. The form signed by employers and trainees makes it clear that worker's compensation is not provided. Protection will be covered by the state or department policy. Comm. Reardon explained New Hampshire Working's aggressive marketing including to small companies. Business roundtables are occurring and there are community television station public service announcements, connections to BIA and Chambers, and contacts with retail merchant groups. Each of the 13 One Stops has an employer service representative. An orientation video has been created that can be accessed on the web site (along with the PSAs) and may be viewed on U-tube.

Chair Anagnost asked Comm. Reardon about the UTF. She reported that interest-free borrowing started the beginning of March. Anticipating what needs to be borrowed, arrangements had been made with US DOL in advance. Requiring $20 million for March, a request has been made for the next quarter. By the end of May (with tax receipts) it is expected that payback will be completed. Borrowing is likely to be necessary again in the fall. Next years fiscal impact has been estimated and, although lobbying for another interest-free year, interest could be about $1.7 million. With the help of businesses, NH has made tax changes for this year assuring next year's solvency. NH Working programs have been considered in the estimates.

Elevate America - Michael Power reported that NH's G&C is being asked to approve Elevate America. In February 2009, Microsoft Corporation initiated the program in 12 states. Comm. Reardon, Jackie Heuser and others learned about the program through news articles and began communicating with Microsoft to bring it to NH.

Microsoft is providing vouchers for on-line pre-recorded product training free of charge. According to a formula Microsoft uses based on employment rates and population, NH would receive 5625 vouchers valued at about $300 per each ($1.7 million). Recipients would be able to select preferred Microsoft product training and apply online. Voucher recipients must complete their program within 90 days. Some vouchers would be available to IT professionals for more advanced training. A 3rd segment would include an examination for Microsoft certification, highly sought by employers. Microsoft hopes by 2012 to have issued two million vouchers.

Local Economic Dynamics (LED) Update - There has been a push to get NH to buy into LED. Offered through the US Census Bureau, LED provides national and local workforce development and economic development quarterly data through a suite of programs. Data can be accessed by businesses, transportation officials, emergency management, etc. Forty-nine states have signed up for the free-of-charge, web-based program. Because of NH statues, permission from the legislature is required to send wage and data information to the US Census Bureau, required to enter the program. Two years ago, security concerns about information data breaches got in the way of NH's passage. US Census officials visited NH to explain the program and emphasize security features. Senator Margaret Hassan re-introduced the program to the senate. There will be a senate hearing soon.

Amanda Shaffer noticed how busy NH is, and she was excited to hear about the possibility for NH to participate in LED.

Federal Program/Fiscal Review/AARA Audit - Heuser reported that a comprehensive federal review was recently completed with six to ten federal guests including Amanda Shaffer and her staff. There was review of all OWO operations under WIA and, this time, fiscal review was limited to Berlin and Manchester. NH's case notes were sited as a best practice and NH staff have been invited to train on effective case note techniques at an upcoming DOL sponsored staff training event Heuser summarized other positives such as NH's commitment to serve a very difficult population and a focus on offering worker training. NH has had a healthy mix of supporting the One Stop infrastructure costs while at the same time making sure sufficient funds are available to support training. Amanda Shaffer added that on the NHES side, there are many positives such as the Job Club and staff maintaining a positive demeanor despite being stressed. She noticed that the North Country population tends to work very hard despite all the downturns. Carl Lindblade commented about the resilience and dedication of that population to survive, and their established work ethic. The White Mountain Community College is highly proactive, so efforts directed there are received well. Lindblade is aware of Mill Duncan's research completed recently at UNH underscoring the spirit of the North Country's residents. Ms. Shaffer has reviewed the Coos County report and will take another look focusing on Mill Duncan's conclusions. Dwight Davis recently spent a few days up North. He spoke to a group of youth at White Mountain Regional High School and visited Woodsville. Dwight Davis let Commissioner Bald know that some students sent questions (along with their names) for him to answer about what Concord is doing for them. George Bald expressed enjoying working with the resilient people of the North Country. Times are tough. Forty-five out of fifty states have had a 20% or greater revenue reduction. Comm. Bald indicated that he will respond to the young peoples' inquiries and will try to visit the region, especially the high schools.

WOC, Inc. Audit: A WOC, Inc. audit report was recently completed. There were no major findings. Cynthia Hunzelman pointed out that the final WOC, Inc. fiscal year ended last June, so the final statement for the entity will be submitted after one more audit the end of this month.

Layoff Aversion - Fran Alain walked attendees through a Power Point presentation after summarizing her background and qualifications to focus on industry issues. In addition to acquiring degrees, she spent three years on field and literary research on the psychological and sociological effects of layoffs and downsizing. She provided an overview of the basis of what she does and a general understanding of how she does it, the challenges she faces, and outreaching. Ms. Alain needs information to do her job well, including from companies so she relies on receiving data. Good aversion strategies can possibly save 25% of the jobs. Helping companies address issues at hand to divert a layoff, much activity is applicable in their recovery time and prompts resuming hiring. Ms. Alain has created a 5-page model of layoffs and an anatomy of crisis and change in businesses, which guide her determining when to jump in effectively. She reviewed pre-layoff / actual layoff / post-layoff / recovery phases, employee speculation (and fostering a sense of security among remaining employees), company climate changes, calling in resources and critical partners for joint intervention, follow ups, issue assessment, possible resolutions, and developing cure plans. It is important to change mindsets, maintaining confidentiality, address reluctance to work with "the state," be informed early on, identify quantified successes, and keep up with industry data.

Washington Update - OWO staff is aware of the focus on the Rapid Response process. It is important to remember that aversion is a piece of the partnership. Michael Power, Fran Alain, and Pam Oliwa are working on several projects specific to RR. The MOU is being updated and will likely be reviewed with the board at the June 4th meeting.

WIA reauthorization is not, yet, happening. Jackie Heuser summarized some hopes that have been discussed at the local level including on-the-job training and connection with jobs. Amanda Schafer noted that on-the-job training will probably be ramped up. It is likely that summer youth programs will suffer because of the lack of authorization.

Other Business Not Itemized on the Agenda
UI Extensions - Terry Smith wondered if UI extensions are linked to a particular unemployment rate. Comm. Reardon responded that existing EUC monies are extended only to April 5th. Those not in the program before that date will begin a new program. A version passed by the house and senate would extend it to December 31st, but there will be some compromising. Ms. Reardon clarified that there will be no "new weeks" but on existing programs those completing the first tier of EUC will begin the second tier. Those having gone through all their eligible tiers will run out of benefits. The third tier, requiring legislation, provides $1 million administrative funds going into the adult training fund beginning 01/01/11. It is likely that the funds will support assessing peoples' skill sets and providing remedial classes.

Job Training Fund - Michael Power reported that $2,272,000 has been distributed. Via matching, employers have added $890,000. Therefore, $5.4 million has been generated for new training in the last 18 to 24 months benefiting 6,591 employees.

Job Corps - Chair Anagnost reported inching forward. Good news is that he is close to reaching an agreement with the City of Manchester to extend facilities to the site and install a pump station, etc. On the downside, the Project Labor Agreement issue is in a black hole with no resolution in sight.

Citizen of the Year - The Board acknowledged Dick Anagnost's recent recognition as Manchester's Citizen of the Year. Chair Anagnost received a round of applause.

The meeting was adjourned at 3:38pm.