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DOCUMENT RESUME ED 352 450 1111"" CE 062 507 AUTHOR Wulf, Douglas; And Others TITLE Evaluation of the Job Retraining Program. INSTITUTION Iowa State Legislative Fiscal Bureau, Des Moines. PUB DATE Jul 91 NOTE 57p. PUB TYPE Reports Evaluative/Feasibility (142) EDRS PRICE MF01/PC03 Plus Postage. DESCRIPTORS Adult Vocational Education; Community Colleges; Dislocated Workers; *Educational Administration; Educational Finance; *Educational Planning; Educational Policy; Education Work Relationship; Government School Relationship; Inservice Education; *Job Training;ltLabor Force Development; Postsecondary Education; Reentry Workers; *Retraining; *School Business Relationship; State Programs; Two Year Colleges IDENTIFIERS *Iowa ABSTRACT Iowa's Job Retraining Program was evaluated through a review of operations, surveys/interviews with community college staff, and survey responses from 43% of the business participants. Resulting recommendations were as follows: (1) retaining the program in the Department of Economic Development rather than transferring it to the state's 15 community colleges; (2) improving program planning by having the community colleges submit a list of "probable" applications for the first 6 months of the fiscal year and then another for the second 6 months; (3) eliminating the requirement that businesses meet only one of three crite is to be eligible for a grant or forgivable loan or at least providing a measurable way to judge an increase in the quality of positions; (4) encouraging smaller companies to participate by proposing alternative funding and reducing or eliminating the required one-to-one match; (5) asking the Department of Education to offer community colleges some incentives for providing Job Retraining Program instructors; and (6) using a single form on which businesses can provide available information for evaluation. (The document describes the program, its operation, and the comments of program staff; summarizes the survey and interviews with the staff of participating community colleges; and reports the results of the survey of business participants.) (CML) *********************************************************************** Reproductions supplied by EDRS are the best that can be made from the original document. ***********************************************************************

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Page 1: DOCUMENT RESUME ED 352 450 CE 062 507 INSTITUTION …DOCUMENT RESUME. ED 352 450. 1111"" CE 062 507. AUTHOR Wulf, Douglas; And Others TITLE Evaluation of the Job Retraining Program

DOCUMENT RESUME

ED 352 450

1111""

CE 062 507

AUTHOR Wulf, Douglas; And Others

TITLE Evaluation of the Job Retraining Program.

INSTITUTION Iowa State Legislative Fiscal Bureau, Des Moines.

PUB DATE Jul 91

NOTE 57p.

PUB TYPE Reports Evaluative/Feasibility (142)

EDRS PRICE MF01/PC03 Plus Postage.

DESCRIPTORS Adult Vocational Education; Community Colleges;Dislocated Workers; *Educational Administration;Educational Finance; *Educational Planning;Educational Policy; Education Work Relationship;Government School Relationship; Inservice Education;

*Job Training;ltLabor Force Development;Postsecondary Education; Reentry Workers;*Retraining; *School Business Relationship; StatePrograms; Two Year Colleges

IDENTIFIERS *Iowa

ABSTRACTIowa's Job Retraining Program was evaluated through a

review of operations, surveys/interviews with community college

staff, and survey responses from 43% of the business participants.

Resulting recommendations were as follows: (1) retaining the program

in the Department of Economic Development rather than transferring it

to the state's 15 community colleges; (2) improving program planning

by having the community colleges submit a list of "probable"

applications for the first 6 months of the fiscal year and then

another for the second 6 months; (3) eliminating the requirement that

businesses meet only one of three crite is to be eligible for a grant

or forgivable loan or at least providing a measurable way to judge an

increase in the quality of positions; (4) encouraging smaller

companies to participate by proposing alternative funding and

reducing or eliminating the required one-to-one match; (5) asking the

Department of Education to offer community colleges some incentives

for providing Job Retraining Program instructors; and (6) using a

single form on which businesses can provide available information for

evaluation. (The document describes the program, its operation, and

the comments of program staff; summarizes the survey and interviews

with the staff of participating community colleges; and reports the

results of the survey of business participants.) (CML)

***********************************************************************

Reproductions supplied by EDRS are the best that can be madefrom the original document.

***********************************************************************

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yr1. I

-eti= , r

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tis

U.S. DEPARTMENT OF EDUCATIONOttrce,ot Educational Research and Improvement

EDIJCATIONA LRESOURCES

INFORMATIONCENTERERIC)

This document has been reproduced asreceived Irom the person or organizationoriginating it

0 Minor changes have been made to improvereproductrOn quality

Points of view or opinions stated m this docu-

ment do not neCeSsarily represent officialOERI position or policy

"PERMISS;ZDN TO REPRODUCE THISMATERIAL HAS BEEN GRANTED BY

TO THE EDUCATIONAL RESOURCESINFORMATION CENTER (ERIC).

Page 3: DOCUMENT RESUME ED 352 450 CE 062 507 INSTITUTION …DOCUMENT RESUME. ED 352 450. 1111"" CE 062 507. AUTHOR Wulf, Douglas; And Others TITLE Evaluation of the Job Retraining Program

DENNIS C. PROUTYDIRECTOR

515/281-5279

July 1991

STATE OF IOWALEGISLATIVE FISCAL BUREAU

The Honorable Bob ArnouldChairperson of the Legislative CouncilState Capitol

Dear Chairperson Arnould:

STATE CAPITOLDES MOINES. IOWA

50319

During the 1989 Legislative Session, the General Assembly passed House File 550, whichrequired the Legislative Fiscal Bureau (LFB), to conduct an evaluation of the Job RetrainingProgram of the Department of Economic Development. Interest in this Program wasprompted by the recognition of the General Assembly that Iowa businesses have a need toretrain employees, modify operational processes, and retool equipment in order to maintain acompetitive edge in a rapidly changing technological environment.

The Program has operated for two fiscal years, and 90 companies have been awarded $3.3million in financial assistance. These projects will provide retraining to approximately 14,000Iowa employees, at an average State cost of $256 per employee.

The report contains several recommendations and policy options presented for the Departmentof Economic Development and General Assembly's consideration. Additionally, theLegislative Council is asked to extend the study through the end of FY 1993, to provide anopportunity to measure some of the economic impacts of the Program.

The LFB received the cooperation of the Department of Economic Development and thirteenof the Iowa community colleges in the collection of information necessary for the completionof this report. Additionally, 43% of the businesses receiving assistance provided informationabout the Program from their perspective.

The report was prepared by Douglas Wulf (project supervisor), John Hawley, Sue Lerdal andJon Studer, with assistance from Nicole Navara. If you have any questions regarding thisreport or wish to see copies of the specific questions asked in the business or communitycollege surveys, please contact Douglas Wulf (281-3250) or John Hawley (281-7799).

Respectfully submitted,

D o las P. WulfPrincipal Legislative Analyst

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Introduction

Iowa has developed a variety of programs aimed at assisting businesses to maintain a competitiveadvantage and train employees to obtain the skills necessary to assure a well-trained and productive

work force. The majority of the programs have been aimed at business start-up or expamica and the

training of new employees. However, the Legislature has determined that there is also a demand

among existing businesses which need to adopt new technologies and diversify product lines in order

to retain competitive and viable operations. These companies often are not adding staff, but have aneed to retool both the physical plant and the equipment and machinery base.

In an effort to provide assistance to companies in this situation, the General Assembly passed HouseFile 550 (The Job Retraining Act) creating the Job Retraining Program at the Department ofEconomic Development (DED) during the 1989 Legislative Session. The Job Retraining Program isdesigned to assist companies in retraining current employees in areas where new technologies arebeing implemented through retooling, and without the training provided, the companies will losetheir competitiveness and ultimately lay off employees. It was the intention of the Legislature theProgram benefit both businesses and employees. Businesses would benefit by maintaining viability

in a competitive world market. Employees would benefit by increasing the overall skill level ofIowa employees, thus increasing the pool of employees which have the skills necessary for thedemands of the future job market. The Program would, if it operated as intended, help Iowa firms

maintain or even expand their respective market share, foster business expansion, stimulate jobcreation in some industries, and at a minimum insure job retention.

Included in the Legislation was a mandate that the DED prepare and submit an Annual Report prior

to each Legislative Session on the progress of the Program. The first Annual Report was submittedto the Legislative Fiscal Committee on June 12, 1991 and copies are available from the DED or the

Legislative Fiscal. Bureau (LFB).

Additionally, the LFB was required to conduct an evaluation of the Program. The LFB wasinstructed to, at a minimum, consider the following items in its review of the Program:

1. The number of loans, forgivable loans, or grants provided.

2. The number of loans defaulted.

3. The average size of the business receiving retraining assistance.

4. The effect of the programs upon wages of participating workers and nonparticipating

workers.

5. The effect of retraining programs on the State's economy.

This report includes a three-phase review of the Program. First, a descriptive overview of the

Program, its operations within the DED and the comments of Program staff about its operation.Second, a summary of the results of a survey and interviews with community colleges involved inidentifying businesses with retraining needs and assisting those businesses in the application and

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training process. Finally, a review of the results of a phone survey with a sample of businessparticipants.

Program Operations At DED

The Job Retraining Program legislation provides that a business can apply for assistance from theDED which would enable it to retrain employees to meet its retooling needs, provided that thebusiness will retrain existing employees. A participating business can use the assistance provided topay for basic adult education (math, reading, etc.) which are necessary for the employee to functionsuccessfully in the workplace, or to pay for job specific training (training required to handle newmachinery, new methodologies, new management practices, etc.). Additionally, vocational and skillassessment services and testing, training facilities, equipment essential to the training, trainingmaterials and supplies, college and company administrative expenses, and salaries of the trainers areappropriate Program-related expenses.

According to the DED, applications are submitted by Iowa's community colleges on behalf of thebusinesses which are applying for assistance. The colleges market the Program and recruit eligiblebusinesses for participation. After an application is received, the DED conducts a review of theapplications and can accept, deny, or request modification of the application. Each project is scoredon a variety of factors established in the administrative rules for the Program. Among the factorsincluded are the following:

1. The quality of the jobs to receive the retraining.

2. Whether there is a new operation or market diversification involved.

3. Whether there is a new manufacturing process being established.

4. Past performance of the retraining agency.

5. Feasibility of the retraining project.

6. The need of the company for the project to avoid layoffs.

7. The viability of the company.

8. The level of company funds being invested in retraining.

Initially, a panel of 7 members (6 staff from DED and one representative from the Department ofEducation) met formally to discuss each application and jointly determine if a project should receivefunding. However, the Department has modified its procedure so that 4 DED staff membersindependently review the applications and only meet as a panel if there are significant problems withthe application or a member feels that the application should be denied.

Businesses must demonstrate how the retooling efforts impact the skill needs of their employees,provide a minimum matching financial contribution of one-to-one, illustrate how theretooling/retraining project will open new or diversified market opportunities or create a new

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manufacturing or managerial process, and explain the feasibility of the retraining plan. In order toreceive a forgivable loan or a grant, businesses must also show one of the following:

1. A net increase in the number of employment positions.

2. A net increase in the wages paid to participating workers.

3. A net increase in the quality of the employment positions held by participating workers.

Once the applications are approved, a contract is drawn up with the business, the sponsoringcommunity college, and the DED all as signatories. The award is then advanced to the communitycollege which in turn reimburses the business for actual retraining expenditures. CommunityColleges charge the business fees for the services they provide. Fees charged to the businesses varyby project and by community college for the application and administration of the projects.Application fees charged to date range from $55 to $1,500 and an administrative fee may either becharged as a part of the instructional costs if the community college does the training or as apercentage of the award (ranging from 10% to 13.97%). A 13.86% administrative fee is permittedunder the Iowa Industrial New Jobs Training Program (280B Program) and evidently an assumptionhas been made that a similar fee is permitted under the Job Retraining Program. The 280B Programprovides similar types of training for businesses creating new jobs for new or expanding businesses.

The majority of the training has been conducted by trainers from the community colleges either atthe community college or at the business site. However, some of the projects have utilized in-housetrainers or trainers from the private sector with the funds merely passing through the communitycollege for audit and accounting purposes. The community colleges still charge the administrativefee to those businesses which elect to nave someone other than community college faculty orassociates conduct the training.

Program Funding Allocations

Currently, program funding is allocated on a formula based upon the population of the communitycollege district. (Appendix A provides a breakdown of the allocations made to each communitycollege for FY 1990 and FY 1991). Awards are determined by the DED, the Department ofRevenue and Finance approves the amount and then funds are dispersed to the community collegesby the DED. The Program allows community colleges to sponsor more applications for funds thanare available to the college with the understanding that if funds allocated are not fully utilized bysome community colleges the funds will become available for other projects after March 1. Fundingfor FY 1991 was reduced from $2.0 million to $1.5 million as a result of the deappropriationsduring the 1991 Legislative Session. The General Fund appropriation is $1.0 million for FY 1992.

Analysis of the Training Program

Appendix B details the total number of projects receiving funding for FY 1990 was 36 (a total of 38were approved, but 2 businesses declined) and in FY 1991 was 54. Of these, all single businessapplications received forgivable loans. Consortium applications, or applications to provide similar

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training to a number of businesses at the same time, were funded with grants. Funding levelsranged from $4,464 to $50,000, with an average award being $36,515.

One eligibility requirement for the funding is that a business must match the funding requested at aminimum of one-to-one. Matching levels ranged from $9,152 to $1,000,000, with an averagebusiness investment of $118,075. The average ratio of business investment to State funding wasthree-to-one. Not all of the businesses investments were cash, as the Program allows investment inequipment and staff time to be counted toward the match.

The size of the businesses receiving funding ranged from 9 to 2,770 employees. The averagenumber of employees was 508. The following is a breakdown of the number of employees and thenunper of businesses receiving awards in each size range.

Number of Employees Number of Businesses

50 employees or less 13

51 - 100 employees 16

101 - 250 employees 17

251 - 500 employees 15

501 - 1000 employees 16

1001 or more employees

Total 90

There are 13,721 employees that will receive training through this Program the first two fiscal yearsat a total cost of $3.3 million. The average per employee State cost of training is $256, with a rangeof $46 to $4,167 per employee. Smaller companies were more likely than larger companies to traina larger percentage of the total employees of the business.

Types of training provided included a wide array of machine specific training, cross-training ofpersonnel, basic skills training, supervisory skills training, and management skills training. Below isa breakdown of the number of projects providing various types of training. (Note that the number oftypes of training provided are more than the number of business participants due to the fact thatmany businesses provided multiple types of training for various levels of employees.)

1. Machine or process specific training - 12

2. Basic education or basic skills related to industry - 13

3. Team, supervisory, and management training (e.g., Statistical Process Control, QualityCircles, Team Building, Total Quality Management, Just-in-Time) - 46

4. Computer related skills - 14

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5. Training trainers - 5

6. Miscellaneous other training - 5

Success Rates and Economic Impacts

As noted by the DED in the Annual Report presented to the Legislative Fiscal Committee on June12, 1991, it is too early to quantify the results of the Program on the success of training and impacts

on the economy. Only a few companies have completed all phases of the training, which can takeup to two years. Questions that need to be addressed in this area cannot be answered until at leastthe companies which were funded during FY 1990 complete the training and further data can becollected.

Efforts are currently in process to collect sufficient information on the companies that complete (orfail to complete) the contracted training schedule. Working with the Department of EmploymentServices (DES) and the LFB, the DED has developed a set of measures for which data is or will beavailable to provide the information necessary to answer questions in this area. Examples ofquestions to be addressed include:

1. Were the contract requirements met?

2. Did the employees completing training receive the salary increases noted in theproposals?

3. Have the companies retained the staffing levels they had prior to the training or have theyexpanded or reduced the number of employees?

4. Has the company's market share increase or declined?

5. Are individuals who were trained still employed by the business? Still in the industry?Still in the State?

6. How have businesses which utilized the Program fared in comparison to other businessesin the same industry and region?

This type of information will be made available largely through the DES data banks, and datacollection is expected to begin early in FY 1992.

DED Staff Concerns and Recommendations

Staff of the DED stated that the Program has been operating satisfactorily. After several initialmodifications of the procedures for reviewing and approving applications, the methodology has beenconstant for approximately the past year.

In relation to the application procedures, the DED staff noted in the Annual Report that largerbusinesses were at a distinct advantage in completing all application requirements as much of thenecessary data was already being collected by them. Smaller businesses often had to create a new or

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modified record-keeping system to accommodate the Program. This concern was raised bybusinesses which were interviewed and by some community college staff. The DED recommendedchanges to the application procedure relating to financial and other documentation, some of whichwere adopted during the 1991 Legislative Session in HF 498 (Iowa Retraining Act), which shotildreduce the increased paperwork for smaller businesses.

The DED would like to have the ability to establish simplified procedures for smaller companiesrequesting assistance at levels under $5,000, and procedures for paying consulting fees to experts towork with companies over several years rather than the current two-year limit for the training. Thelatter situation was also noted by some of the respondents in the business survey.

Finally, the DED staff stated that the relationship with the community colleges needs to beimproved. According to the DED, some colleges were committing more funds for projects thanwere available for the fiscal year. This results in projects having to be carried over to the next fiscalyear, or only partial funding provided in the first fiscal year and the remaining funding coming fromthe following fiscal year's allocation. The DED staff noted that this causes confusion for somebusinesses which believe that the DED may be delaying the project after all the effort the businessput into the application process.

The DED also believed that certain programs offered by different colleges could be utilized bybusinesses in other districts, but that the competition between the colleges was not conducive tosharing programs on a regular basis.

Results Of Survey Of/And Interviews With Community College Staff

In order to obtain the views of the community colleges a survey instrument was designed and sent tothe colleges' designees for this Program. All but two of the colleges responded to the questionnaire.Additionally, two of the community colleges were selected for more in depth input and staff of theLFB visited each location and conducted an in-depth interview. The results of the survey andinterviews are summarized below. A summary of the responses to the survey instrument ispresented in Appendix C.

As with any new Program, it takes time for administrative rules to be adopted and implemented,staff to be hired, and for potential applicants to become familiar with the Program. Comments fromthe community colleges were varied on many of the issues which were discussed. It was apparentthat community college implementation and satisfaction with the Program varied depending upon thesize of the community college and their understanding of the governmental oversight process.

Program Solicitation

The com nity colleges develop and utilize a file of businesses with which they contact andcommunicate a regular basis. When a new program such as the Job Retraining Program isinstituted, the community colleges notify the businesses in the file of the opportunities for funding

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and the process for application. Nearly all of the businesses receiving assistance from this Programwere notified in this manner. The remainder either inquired of the community college upon hearingof the Program or learned of the Program through trade publications or the Department of EconomicDevelopment's (DED) Digest. a monthly publication.

The procedure for soliciting businesses appears to work effectively provided the communitycolleges' files are inclusive of all eligible businesses in their area and they notify business of theopportunities for Program eligibility. Some businesses may be missed through this approach, andone business specifically mentioned that better advertisement of the Program in trade journals wouldbe helpful to small businesses.

Application Procedure

To participate in this Program, businesses must complete an application. The community colleges'provide assistance to the businesses during the application processes. The community collegessubmit the applications to the DED on behalf of the businesses. If the applications are incomplete orunclear, they are returned to the community college for clarification. In some cases, the DED hascontacted the businesses directly for additional information or explanations.

As noted above, the DED review panel initially met monthly as a review committee to evaluate anddiscuss applications. The process has been streamlined by dispersing applications to committeemembers for review and comments as the applications arrive at the DED. The community collegeshave some concern with the turn-around time for the applications and would like to see the processexpedited even further. This was also a concern noted by at least two businesses that responded tothe business survey. One business noted that it had taken 5 months to receive notification from theDED of the,award and another stated that it had only two weeks notice from the community collegeto complete all necessary paperwork for the application.

The community colleges stated that the DED could improve the process by setting an internalone-week deadline for turn-around after the application has been received. To do this, the DEDcould assign two personnel to review all applications under the Program. This would expedite theprocess over using a team approach, it would eliminate delay due to leave and other commitments,and would provide greater consistency in application evaluation.

There were some complaints from the community colleges about the amount of information requiredin the applications themselves. Most of the required information in the applications was specified inthe original legislation. The legislation was amended during the 1991 Legislative Session tostreamline several of the requirements, some of which were deemed to be unnecessary and somewhich provided an advantage toward larger businesses. The community colleges suggested that theDED should review the application with input from the community colleges and seek to eliminatethe criteria not related to the Program itself.

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Award Notification

In at least one case, a business had been notified of a pending award by the DED, although thecommunity college board of directors had not given final approval for community collegeparticipation. The businesses were later notified of the denial of award after receiving approvalfrom the DED. As the community colleges are the link between business and the DED, it wouldreduce the potential for dissatisfaction among the applicants if the community colleges were assignedthe responsibility to notify the business of approval/denial of the application following the decisionof the local board of directors.

Program Funding Allocations

Currently, Program funding is allocated on a formula based upon the population of the communitycollege district (Appendix A). Allocatnns are calculated by the DED and then funds are dispersedto the community colleges via the State Treasurer's Office. The community colleges would prefer toreceive direct appropriations from the State and conduct the application review process themselves.The colleges state this would expedite the application process, would reduce the amount ofbureaucracy, and would reduce administrative costs in the DED.

Comments

Community colleges would like to see greater resources provided by the State to fund this Program.It appears that the current funding level is not enough to meet the current and future demand forretraining funds. The community college representatives state that the demand for job retraining willincrease dramatically in the future due to the rapid technological changes in the way business isconducted and the increasing need to remain competitive with national and foreign business.

The community colleges were impressed with the way that this Program benefits the existingindustry base in the State and does not focus on new business starts or relocations like most of theother job training programs.

The community colleges indicated that benefits to the business includes:

upgrades of workers skills and provides more marketable work force;

improves competitiveness;

assists the lower rank and file of employee rather than only the administrative level of thebusiness;

provides a positive attitude for employees and for employers toward State government;

provides assistance to smaller companies;

encourages diversification;

s educes production costs;

improves the relationship between companies and community colleges.

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Results of Survey of Business Participants

In an effort to determine the views of business participants about the program and to identify anyconcerns or recommended changes from the businesses perspective, a telephone survey wasdeveloped by staff of the LFB. Staff contacted and obtained responses from 43% of the businessparticipants. Based on the information collected, it is clear that Program participants are satisfiedwith the Program and the interaction with community college and the DED staff. However, severalconcerns were noted by various businesses and are discussed below.

Program Solicitation

Businesses were asked to explain how they initially heard about the Program. Only two of therespondents had not initially heard of the Program through a community college. Of those, one hadread about the Program in a trade brochure and the other learned about the Program through otherbusiness contacts.

Application Procedure

The businesses were also asked to critique the application process and the paperwork involved in theon-going administration of the Program. Most believed that the application materials collected werereasonable and that the community colleges provided sufficient help, when necessary, to clarify andcomplete the application in the appropriate manner. While the requested material was viewed asnecessary given this is a "government" program, most felt it was lengthy and should be reduced ifpossible. Particularly smaller companies felt that it became a tedious, cumbersome process toassemble all the required information, but it was viewed as acceptable due° to the amount ofassistance provided by the community college staff. However, without that assistance severalindicated they would have not been able to compile all the information necessary.

The additional paperwork involved in the Program resulted in minimal additional work for thecompanies involved. Only a few companies indicated it was necessary to establish additionalrecord-keeping practices in order to maintain the appropriate materials, and those were companieswith fewer than 100 employees. Several companies noted that the record-keeping requirements andthe assistance provided by the community colleges in better organizing already collected informationhas helped with other internal record-keeping needs.

When asked specifically about the level of assistance provided through community colleges and theDED, almost universally the businesses reported the assistance received was good to excellent.More businesses (95%) cited the assistance of the community college than the DED (15%) as beinguseful to them. This was not an unexpected result as the community colleges work more closelywith these business than the DED would have a need to. Among those who indicated they had directcontact with the DED staff, the comments were positive and the businesses believed they weretreated appropriately.

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Training Program

The majority of respondents noted that they had not completed the training program at the time ofthe survey. In fact, according to the DED only five companies have completed the training whichthe Program is helping to fund. Those companies in the process of conducting the training aresatisfied with the training the staff are receiving. Several noted that the training has already provenbeneficial and that continued training will be modeled after the current training process.

Larger companies were more likely to use internal or a combination of internal and outside trainerswhile small companies all used outside trainers.

Impact of Training on Business

While it is too soon for most business to determine the effects of the training employees arereceiving on productivity and business viability, many respondents indicated positive results alreadyin evidence or had expectations of benefits to come. Typical responses to the training being receivedinclude the following:

The training is essential to the survival of the business.

Training makes the employees more valuable (productive and knowledgeable) to thecompany and in the job market.

Helps the company reduce costs of inefficient processes and practices.

It is a developmental tool for the staff and the company and will help us maintain or gainmarket share in the future.

Enables employees to solve more problems on their own and be more creative.

Lets the employees know we value them and are willing to invest in them to assure theirfuture and ours (serves as motivator for them).

Provides managers with a better understanding of the way subordinates can provide inputinto the operation and the benefits of teamwork.

Provides cross-training for employees in several skill areas which benefits the companyand the employee.

To stay competitive in the long-term this type of training (retraining) is necessary formost companies in a competitive and changing environment.

Impact of Funding

Companies were asked if training would have been undertaken without the financial assistanceprovided through the Program. Of those responding, approximately 35% said they would have beenunable to conduct the training at this time without the financial assistance. Another 60% of thebusinesses acknowledged that some training would have been undertaken regardless, but that thefunding allowed more depth, quicker start-up, and better planned training than they would otherwise

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have been able to pursue. Two companies said they would have done the same or similar trainingwithout the funding provided, but that it allowed those resources to be used in other areas of thecompany.

Future Demand for Retraining/Retooling

All companies noted that there would be a continuing need for retraining to enable Iowa firms toremain competitive and current with available technology. Several companies noted they hadincreased their training budget substantially and one indicated an increase from $40,000 in 1990 to$2,000,000 for 1992 to provide employee training. Several noted that assistance such as thatprovided by this Program is essential to maintaining Iowa businesses, particularly small businesses.

EggammsaledirsatamAkificatim

While many companies stated that it was too early in the training program to recommend anychanges, several noted that even though the paperwork was not extremely taxing, the Programshould look at streamlining the amount of information required for the application process. This wasthe recommendation most often noted. Among other comments were the following:

Increase the amount of funds that can be applied for, large companies have needs that aremuch larger than the $50,000 limit.

Consider using a property tax credit rather than direct appropriation of funds.

Clarify definitions of requirements of the Program (e.g., what is allowed for expenses,training costs, etc.)

Improve public relations and advertising, would not have heard of the Program if acolleague had not mentioned it. Don't just rely on community colleges to notify allbusinesses.

Allow funding of trade seminars and sponsor trade shows in Iowa for small businesseswhere new products, approaches, and technologies may be shared.

Community colleges should provide more lead time when funds are available for theapplication process.

Development of people skills and team building among employees should be weighted ashigh as increasing hard technology in the funding ratings in the application process.

Better communication of deadlines from community colleges.

Future Business Trends

Finally, when asked about plans to diversify product lines or increase employment in the nearfuture, most companies either did not know or were unwilling to discuss the issue at this time.However, a few noted that the reason for the training was product change or additional productlines.

Page 15: DOCUMENT RESUME ED 352 450 CE 062 507 INSTITUTION …DOCUMENT RESUME. ED 352 450. 1111"" CE 062 507. AUTHOR Wulf, Douglas; And Others TITLE Evaluation of the Job Retraining Program

Findings And Recommendations

The specific items which the LFB was directed to investigate were the following:

I. The number of loans, forgivable loans, or grants provided.

Based on the information reviewed from the applications, no loans were provided; onlyforgivable loans and grants were issued to applicants. Of the participants, only consortiatraining projects received grants (7) and the remaining projects received forgivable loans(83). The DED commented that no business would apply for the funding if it had toaccept a standard loan. The LFB was able to identify only two of the participatingcompanies which had applied for and utilized any type of loan within the last three yearsfor training purposes. These were from the Iowa Community Economic BettermentProgram and the federal Small Business Administration, both provide forgivable loanprograms.

2. The number of loans defaulted.

To date no loans have defaulted, as the few projects that have finished the training havebeen in compliance with the contract (prior to final audit). Should any of the companiesfail to complete the training or not comply with the comply with the contractualarrangements, the DED will determine the extent of default and require repayment of aportion or all of the forgivable loan.

3. The average size of the business receiving retraining assistance.

The average number of employees among businesses being provided assistance throughthis Program is 508, with a range of from 9 to 2,770 employees.

4. The effect of the Program upon wages of participating workers and nonparticipatingworkers.

Of those businesses receiving assistance, 24 specified that wages of employees wouldincrease as a result of the training provided. iimong those projects, projected increases inthe amount of the wage varied from $0.05 per hour to $2.00 per hour. Currently, theLFB and the DED are working with the DES to determine whether these increasesactually occurred and the likelihood that the employees would have received similarincreases without the retraining, and what changes were made in the salaries ofnonparticipating staff as well as salaries in the county and the industry on a statewidebasis.

5. The effect of the retraining programs on the State's economy.

The effects of the training projects on the State's economy cannot be estimated at thistime, as so few of the companies involved have completed the training. It will benecessary to follow the progress of the individual companies for at least a year after the

- 12 -

Page 16: DOCUMENT RESUME ED 352 450 CE 062 507 INSTITUTION …DOCUMENT RESUME. ED 352 450. 1111"" CE 062 507. AUTHOR Wulf, Douglas; And Others TITLE Evaluation of the Job Retraining Program

project training ends to begin to estimate the impact on the economy. Currently, the LFBand the DED are working with the DES to collect both pre- and post-project data on thebusinesses that have participated to enable the estimation of the economic impact of theProgram.

Based on the review by the LFB of the Job Retraining Program, the following recommendations and

policy alternatives are offered.

1. The coordination of the Job Retraining Program should remain in the DED. Since thisProgram is operated through 15 different community colleges, it is necessary to have acentral authority to coordinate and direct the Program. If Program coordination weretransferred to community colleges, the consistency provided through the DED applicationreview and Program monitoring and the accompanying administrative costs would bedispersed 15 different ways. This would actually increase administrative costs at theexpense of central accountability of State dollars.

2. To improve Program planning for each fiscal year, the community colleges should submita "probable" list of applications for the first six months of the fiscal year and the secondsix months of the fiscal year. Some of the community colleges had planned to expendadditional FY 1991 funds which were to be reallocated after March 1, but which weredeappropriated. This caused some frustration among community colleges and businesses.

3. The current statute requires a business to meet one of three criteria to be eligible for agrant or forgivable loan. They include: A) a net increase in the number of employmentpositions; B) a net increase in the wages paid to participating workers; or, C) a netincrease in the quality of the employment positions held by participating workers. Themajority of projects have been forgivable loans with only criteria "C" being met. Sincean increase in the quality of an employment positions is a subjective decision and difficultto measure, it is recommended that the current statute be changed to eliminate thisrequirement. If the requirement remains, the DED should provide an objective/measurable way to judge an increase in the quality of an employment position to remainwithin the intent of the law.

4. The DED should develop a proposal for an alternative funding mechanism for smallercompanies of an employee size range determined by the DED, and consider eitherreducing or eliminating the required funding match of one-to-one. A different formulacould be established to encourage the smaller companies to utilize the Program formeeting retraining needs. This should be presented to the Economic DevelopmentAppropriations Subcommittee during the 1992 Legislative Session for consideration.

5. The DED should request that the Department of Education, which is currentlyestablishing rules for sharing incentives at community colleges, include incentives to haveJob Retraining Program specialized instructors. This would permit the communitycolleges to share instructors for the Program, rather than have the instructors'specialization duplicated in more than the number of community colleges offeringspecialized instruction to employees in need of the retraining.

- 13 -

6

Page 17: DOCUMENT RESUME ED 352 450 CE 062 507 INSTITUTION …DOCUMENT RESUME. ED 352 450. 1111"" CE 062 507. AUTHOR Wulf, Douglas; And Others TITLE Evaluation of the Job Retraining Program

6. The DED and the community colleges should review their current evaluation forms anddesign a single form that will provide the information beneficial to both withoutduplicating the evaluation process for the business involved in the Program.

7. The Legislative Council should consider continuing this review through the end of FY1993. This will allow all projects which received funding during FY 1990 to completetheir individual training projects, and to allow at least one year for the collection offollow-up information relevant to the wages, level of employment, and business successof the companies which received assistance.

Departmental Response

The DED has reviewed the report and prepared a written response which is included in Appendix D.

- 14 -

Page 18: DOCUMENT RESUME ED 352 450 CE 062 507 INSTITUTION …DOCUMENT RESUME. ED 352 450. 1111"" CE 062 507. AUTHOR Wulf, Douglas; And Others TITLE Evaluation of the Job Retraining Program

if

Appendix A

- 15 -

Page 19: DOCUMENT RESUME ED 352 450 CE 062 507 INSTITUTION …DOCUMENT RESUME. ED 352 450. 1111"" CE 062 507. AUTHOR Wulf, Douglas; And Others TITLE Evaluation of the Job Retraining Program

Job

Ret

rain

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Pro

gram

For

mul

a A

lloca

tion

MA

S #

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mun

ity C

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hare

Fac

tor

FY

199

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tion

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ctua

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tiliz

atio

n

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ula

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catio

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. Act

ual

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199

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tion

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izat

ion

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ual

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mar

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20

Page 20: DOCUMENT RESUME ED 352 450 CE 062 507 INSTITUTION …DOCUMENT RESUME. ED 352 450. 1111"" CE 062 507. AUTHOR Wulf, Douglas; And Others TITLE Evaluation of the Job Retraining Program

Appendix B

Page 21: DOCUMENT RESUME ED 352 450 CE 062 507 INSTITUTION …DOCUMENT RESUME. ED 352 450. 1111"" CE 062 507. AUTHOR Wulf, Douglas; And Others TITLE Evaluation of the Job Retraining Program

Com

mun

ity

#C

oll

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ines

s

1E

aste

rn Io

wa

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oa

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Ret

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gram

of P

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ct

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spe

cific

trai

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on

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d m

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ess

equi

pmen

t for

pro

duct

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and

supe

rvis

ory

indi

vidu

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CC

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gest

one/

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aini

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r m

aint

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cess

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agem

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wa

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ustr

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Pag

e 1

Page 22: DOCUMENT RESUME ED 352 450 CE 062 507 INSTITUTION …DOCUMENT RESUME. ED 352 450. 1111"" CE 062 507. AUTHOR Wulf, Douglas; And Others TITLE Evaluation of the Job Retraining Program

Job

Ret

rain

ing

Pro

gram

Com

mun

ity#

Col

lege

Bus

ines

sT

ype

of P

roje

ct13

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an H

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lum

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rn Io

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ley

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eprin

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hop.

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umer

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Page

2

Page 23: DOCUMENT RESUME ED 352 450 CE 062 507 INSTITUTION …DOCUMENT RESUME. ED 352 450. 1111"" CE 062 507. AUTHOR Wulf, Douglas; And Others TITLE Evaluation of the Job Retraining Program

Job

Ret

rain

ing

Pro

gram

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omm

unity

Col

lege

Bus

ines

sT

ype

of P

roje

ctC

ity

* of

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ploy

ees

Incr

ease

Avg

,

Hou

rly W

age

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rT

rain

ing

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ines

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vest

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teA

war

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er J

ob T

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ing

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ards

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e of

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otal

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ntT

otal

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ed

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thru

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ract

ive

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stru

ctio

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(With

drew

thei

r A

war

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ustr

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vice

I,pr

esen

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ate

Ana

lyst

s, W

ord

Pro

cess

ors,

Typ

eset

ters

,

Sec

reta

ries,

and

P.R

. Coo

rdin

ator

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26M

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ford

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duct

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in s

peci

alty

che

mic

al s

tarc

h

man

ufac

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& m

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ers.

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ar R

apid

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A

27K

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ker

Oat

sM

aint

enan

ce a

ppre

ntic

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ter,

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safe

ty tr

aini

ng fo

r m

echa

nics

, ele

ctric

ians

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neer

s, s

uper

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man

ager

s.

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ar R

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sort

ium

App

rent

ices

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mat

h, b

luep

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ng,

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ticel

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0028

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9,00

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(Cas

cade

Die

Mol

d,m

etal

lurg

y, &

bas

ic m

achi

ne s

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tices

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Mus

catin

e/F

RE

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8)$4

60,0

00

Man

uf. S

peci

altie

sm

achi

nist

s &

tool

& d

ie m

old

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ers.

Ced

ar R

apid

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EB

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5,00

0

Inc.

, Ora

l-B, S

quar

e D

CE

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$100

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sR

ockw

ell

For

d 01

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inin

g, G

eom

etric

Tol

eran

cing

&F

airf

ield

472

287

No

143,

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50,0

0028

0B$6

50,0

00

Inte

rnat

iona

lD

imen

sion

ing,

Ess

entia

ls o

f Mac

hine

Sho

p

Pra

ctic

e, W

eldi

ng, S

hort

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SP

C, S

uper

viso

ry

Tra

inin

g &

Tra

inin

g C

oord

inat

ion

will

be

prov

ided

to M

anuf

actu

ring,

Sup

ervi

sory

, Ski

lled

Tra

des,

& P

lant

Sup

port

em

ploy

ees.

30S

outh

Eas

tern

Dup

ont

Sta

tistic

al P

roce

ss C

ontr

ol tr

aini

ng fo

r

man

agem

ent &

man

ufac

turin

g em

ploy

ees.

For

t Mad

ison

291

291

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60,0

0026

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Car

l Per

kins

(9)

280B

31S

outh

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tern

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yhou

nd D

ial

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ition

al/D

epar

tmen

tal A

naly

sis

for

For

t Mad

ison

625

24N

o92

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40,0

0028

06$3

15,0

00

empl

oyee

s in

the

C.,

ralit

y C

ontr

ol, E

ngin

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g,

& A

ccou

ntin

g D

epar

tmen

ts.

Car

l Per

kins

$2,1

40

32Io

wa

Val

ley

Whe

eler

Con

solid

ated

Sta

tistic

al P

roce

ss C

ontr

ol tr

aini

ng fo

r

man

ager

s, e

ngin

eers

, est

imat

ors,

book

keep

ers,

dra

ftper

sons

, for

emen

, lea

d m

en,

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hine

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rs &

pro

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empl

oyee

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a F

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ley

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sort

ium

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her

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trol

s,

KIO

WA

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ufac

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Pro

duct

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ctiv

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o in

stru

ctio

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r m

aint

enan

ce e

lect

ricia

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tech

nici

ans,

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ploy

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lect

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Pag

e 3

7

Page 24: DOCUMENT RESUME ED 352 450 CE 062 507 INSTITUTION …DOCUMENT RESUME. ED 352 450. 1111"" CE 062 507. AUTHOR Wulf, Douglas; And Others TITLE Evaluation of the Job Retraining Program

Com

mun

ity

#C

olle

ge

34D

MA

CC

35N

IAC

C

Bus

ines

s

AM

AT

CO

Eat

on

36W

. Iow

a T

ech.

Mid

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ustr

ies

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Gre

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ines

(Aw

ard

deni

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DM

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)

38H

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ech

Tria

ngle

Pla

stic

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1D

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Eco

nom

y D

ata

Job

Ret

rain

ing

Pro

gram

Typ

e of

Pro

ject

Qua

lity

Impr

ovem

ent E

duca

tion

and

CA

D/C

AM

trai

ning

for

man

agem

ent,

adm

inis

trat

ive,

sal

es,

& s

kille

d m

achi

nist

em

ploy

ees.

Sta

tistic

al P

roce

ss C

ontr

ol C

hart

s fo

r F

ront

line

Lead

ersh

ip, &

Sel

f-M

anag

ed W

ork

Tea

m

trai

ning

for

supe

rvis

ors,

mac

hine

ope

rato

rs, &

visu

al &

pac

k em

ploy

ees.

Hum

an R

elat

ions

and

Saf

ety

trai

ning

to

man

ager

s, s

uper

viso

rs, s

taff

& h

ourly

wor

kers

.

Per

sona

l Com

pute

r us

age

& T

eam

Bui

ldin

g

trai

ning

for

cler

ical

sta

ff, c

ompu

ter

oper

ator

s,su

perv

isor

s, m

anag

ers,

exe

cutiv

es &

oth

er s

taff

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bers

.B

luep

rint R

eadi

ng/G

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etric

Dim

ensi

onin

g &

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eran

cing

, Qua

lity

Edu

catio

n -

Inte

rnal

Pro

cess

es, S

afet

y T

rain

ing,

& S

uper

viso

r

Tra

inin

g to

Sup

ervi

sors

, Qua

lity

Tec

hnic

ians

,

Eng

inee

ring,

Pro

duct

ion,

Lay

out,

Des

ign,

Pro

duct

ion

Man

ager

s, S

uppo

rt S

taff,

war

ehou

se

staf

f, &

cor

pora

te/ o

ffice

/ sal

es s

taff.

Con

tinue

d S

tatis

tical

Pro

cess

Con

trol

trai

ning

for

addi

tiona

l man

agem

ent,

sale

s, o

ffice

&

prod

uctio

nem

ploy

ees.

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CC

3D

MA

CC

Lort

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arni

ng M

anag

emen

t prin

cipl

es &

Sta

tistic

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gest

one/

Con

tinue

d sk

ills

trai

ning

for

addi

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mai

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kers

& c

ontin

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s ba

r co

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quilt

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Fire

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Pro

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usin

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ards

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nes

725

272

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2011

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thro

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Pag

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Page 25: DOCUMENT RESUME ED 352 450 CE 062 507 INSTITUTION …DOCUMENT RESUME. ED 352 450. 1111"" CE 062 507. AUTHOR Wulf, Douglas; And Others TITLE Evaluation of the Job Retraining Program

Job

Ret

rain

ing

Pro

gram

Com

mun

ity#

Col

lege

Bus

ines

sT

ype

of P

roje

ct

4D

MA

CC

John

Dee

reC

ompu

ter

Aid

ed D

esig

n &

Pro

duct

Dev

elop

men

t Sys

tem

trai

ning

for

sala

ried

&

prod

uctio

n em

ploy

ees.

5H

awke

ye T

ech

John

Dee

reC

ompu

ter

Num

eric

al C

ontr

ol tr

aini

ng fo

r

mac

hine

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affe

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tern

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Nor

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12H

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ckha

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Eng

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lity

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mer

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lula

r

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ufac

turin

g, P

roce

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peci

ficat

ions

, &

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tistic

al P

roce

ss C

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ol tr

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ng fo

r

prod

uctio

n &

mac

hine

ope

rato

rs; i

nspe

ctor

s &

adju

stor

s; s

et-u

p, m

aint

enan

ce to

ol r

oom

&

mod

el s

hop

oper

ator

s.

Man

agem

ent I

nfor

mat

ion

Sys

tem

trai

ning

for

man

ager

s, s

ales

sta

ff, c

lerk

s, s

ecre

tarie

s, &

adm

inis

trat

ors.

Tot

al Q

ualit

y M

anag

emen

t tra

inin

g in

clud

ing

blue

-prin

t rea

ding

, Man

ufac

turin

g R

equi

rem

ents

Pla

nnin

g (M

RP

II), &

geo

met

ric d

imen

sion

ing

&

tole

ranc

ing

trai

ning

to p

rodu

ctio

n &

sal

arie

d

empl

oyee

s.

Qua

lity

Impr

ovem

ent E

duca

tion/

Impl

emen

tatio

n P

rogr

am tr

aini

ng fo

r

man

agem

ent,

supe

rvis

ory,

adm

inis

trat

ive

&

prod

uctio

n em

ploy

ees.

Key

boar

d ef

ficie

ncy

trai

ning

for

cler

ical

&

cust

omer

ser

vice

sta

ff, c

redi

t ana

lyst

s, &

prog

ram

ana

lyst

s.

Com

pute

r A

ided

Des

ign/

Com

pute

r A

ided

Eng

inee

ring

(CA

D/C

AE

) tr

aini

ng fo

r en

gine

ers,

desi

gner

s, d

rafte

rs, &

sys

tem

adm

inis

trat

ors.

Geo

met

ric d

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sion

ing

& to

lera

ncin

g

tech

niqu

es fo

r m

achi

ne o

pera

tors

& m

anag

ers.

City

# of

Em

ploy

ees

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ease

Avg

.

Hou

rly W

age

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rT

rain

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s

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tate

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Pro

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5

Page 26: DOCUMENT RESUME ED 352 450 CE 062 507 INSTITUTION …DOCUMENT RESUME. ED 352 450. 1111"" CE 062 507. AUTHOR Wulf, Douglas; And Others TITLE Evaluation of the Job Retraining Program

Com

mun

ityC

olle

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13E

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t rea

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pute

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mer

ical

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trol

, &

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mun

icat

ion/

man

agem

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kills

trai

ning

for

engi

neer

s, m

achi

ne o

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s &

sup

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sors

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st-I

n-T

ime

stra

tegi

es &

Mat

eria

ls R

esou

rce

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nnin

g (M

RP

II) fo

r as

sem

bler

s, m

aint

enan

ce,

com

pute

r op

erat

ors,

man

age

rs &

sup

ervi

sors

,cl

erks

, mat

eria

l han

dlin

g &

sch

edul

ing

staf

f.

Qua

lity

impr

ovem

ent E

duca

tion/

Impl

emen

tatio

n P

rogr

am fo

r m

anag

ers

&su

perv

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y st

aff.

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tistic

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ss C

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ol &

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m P

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ing.

Sta

tistic

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ss C

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m P

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arn

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ving

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tatio

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r lin

e &

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ce s

ta;-

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lab,

qua

lity

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poun

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areh

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staf

f, m

echa

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s &

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.

Pla

nt s

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tinuo

us p

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t

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e st

aff.

Mar

ketin

g, b

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ter

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ques

for

man

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s, m

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ters

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rep

rese

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ives

.

City

# of

Em

ploy

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Incr

ease

Avg

.

Hou

rly W

age

Afte

r

Tra

inin

g

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ines

s

Inve

st.

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255

227

Yes

94,1

1150

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$298

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Des

Moi

nes

9260

No

18,4

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A

Des

Moi

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123

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134,

430

50,0

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000

CE

BA

Loa

n$7

5,00

0C

EB

A G

rant

$25,

000

CE

BA

Loa

n$2

5,00

028

08$5

1,0

X28

08$1

47,4

45Io

wa

Res

ourc

es$1

2,50

0D

es M

oine

s97

60N

o27

,791

24,0

77N

A

Cec

1r

Rap

ids

4141

No

24,0

0020

,000

CE

BA

$30,

000

Ced

a; R

apid

s15

15N

o17

,779

12,3

60

LFB

:G: \

Pro

ject

s \R

etra

inP

age

6

Page 27: DOCUMENT RESUME ED 352 450 CE 062 507 INSTITUTION …DOCUMENT RESUME. ED 352 450. 1111"" CE 062 507. AUTHOR Wulf, Douglas; And Others TITLE Evaluation of the Job Retraining Program

Job

Ret

rain

ing

Pro

gram

#C

omm

unity

Col

lege

Bus

ines

sT

ype

of P

roje

ctC

ity#

of E

mpl

oyee

s

Incr

ease

Avg

.

Hou

rly W

age

Afte

rT

rain

ing

Bus

ines

s

Inve

stS

tate

Aw

ard

Oth

er J

ob T

rain

ing

Aw

ards

Nam

e of

Pro

gram

sT

otal

$ A

mou

ntT

otal

Ret

rain

ed

20K

irkw

ood

Wey

erha

euse

r P

aper

Mec

hani

cal a

nd m

aint

enan

ce s

kills

trai

ning

.C

edar

Rap

ids

200

6Y

es39

,000

25,0

00N

A

21Io

wa

Cen

tral

Pos

itech

Tot

al q

ualit

y m

anag

emen

t, te

chni

cal s

kills

,

man

ager

ial a

nd s

uper

viso

ry s

kills

.

Laur

ens

8157

Yes

53,4

1850

,000

NA

22E

aste

rn Io

wa

Siv

yer

Ste

el C

orp.

Bas

ic m

ath/

read

ing

skill

s, q

ualit

y im

prov

emen

t,

qual

ity c

ontr

ol, t

echn

ical

cas

ting

skill

s.

Bet

tend

orf

295

295

Yes

69,5

3350

,000

NE

BIT

$1,2

90

23N

W IA

Tec

hC

oilc

raft,

Inc.

DA

CU

M T

rain

ing

- de

velo

p a

curr

icul

um fo

r

ongo

ing

trai

ning

and

job

task

ana

lysi

s.

Haw

arde

n23

414

2Y

es54

,392

50,0

00N

A

24K

irkw

ood

Tho

mas

& B

etts

Cor

p.Jo

b ta

sk in

vent

ory,

Sta

tistic

al P

roce

ss C

ontr

ol

tool

s, tr

aini

ng tr

aine

rs.

Iow

a C

ity14

985

Yes

292,

600

50,0

00N

A

25Io

wa

Lake

sIA

Lak

es R

esor

tS

uper

viso

ry tr

aini

ng, c

usto

mer

ser

vice

trai

ning

.A

rnol

ds P

ark

300

256

No

18,4

1818

,319

NA

Con

sort

ium

26Io

wa

Lake

sLa

kes

Are

a B

usin

ess

Sta

tistic

al P

roce

ss C

ontr

ol.

Spi

rit L

ake/

Mi

544

544

No

184,

266

50,0

00C

DB

G$6

0,00

0

Con

sort

ium

Qua

lity

Coa

litio

n$5

,000

Pro

duct

ivity

Enh

ance

men

t$4

,110

27K

irkw

ood

CR

ST

, Inc

.T

rain

trai

ners

.C

edar

Rap

ids

350

350

Yes

32,0

0020

,000

2808

$100

,000

28In

dian

Hill

sF

airf

ield

Alu

min

umM

etho

ds fo

r ac

hiev

ing

wor

ld c

lass

tota

lF

airf

ield

782

10N

o52

,029

50,0

0028

05$8

95,0

00

Cas

tings

,

Roc

kwel

l,

Lund

,

Shi

vver

s

prod

uctiv

e m

aint

enan

ce.

Fai

rfie

ld

Ottu

mw

a

Cor

ydon

NE

BIT

$22,

302

29D

MA

CC

Car

roll

Man

ufac

turin

g,S

tatis

tical

Pro

cess

Con

trol

, res

pira

tor

trai

ning

,C

arro

ll81

77N

o58

,712

36,3

5428

08$4

6,67

1

Sto

ne P

rintin

gha

zard

com

mun

icat

ion

team

pro

blem

-sol

ving

CE

BA

$35,

000

SB

A L

oan

$105

,000

34LF

B:G

:\Pro

ject

s\R

etra

inP

age

7

BE

ST

CO

PY

AV

AIL

AB

LE

Page 28: DOCUMENT RESUME ED 352 450 CE 062 507 INSTITUTION …DOCUMENT RESUME. ED 352 450. 1111"" CE 062 507. AUTHOR Wulf, Douglas; And Others TITLE Evaluation of the Job Retraining Program

Job

Ret

rain

ing

Pro

gram

Com

mun

ityC

olle

geB

usin

ess

Typ

e of

Pro

ject

City

# of

Em

ploy

ees

Incr

ease

Avg

.

Hou

rly W

age

Afte

rT

rain

ing

Bus

ines

sIn

vest

Sta

teA

war

d

Oth

er J

ob T

rain

ing

Aw

ards

Nam

e of

Tot

alP

rogr

ams

Am

ount

Tot

alR

etra

ined

30Io

wa

Wes

tern

Pax

ton

&

Vie

rling

Ste

el

Sta

tistic

al P

roce

ss C

ontr

ol, t

eam

pro

blem

-

solv

ing

tech

niqu

es, a

pplie

d pr

blem

sol

ving

.

Car

ter

Lake

181

90N

o95

,895

42,6

96N

A

31In

dian

Hill

sC

orpo

rate

Ed

Res

ourc

eM

icro

soft

Win

dow

s pr

ogra

m tr

aini

ng.

Fai

rfie

ld57

15N

o21

,920

16,4

76N

A

Fai

rfie

ld S

oftw

are

Inc.

,

Adv

ance

d In

fo M

gmt

Fai

rfie

ld

Fai

rfie

ld

32Io

wa

Cen

tral

Bag

el W

orks

Spe

cial

ized

mac

hine

spe

cific

ope

ratio

n tr

aini

ng.

Ells

wor

th16

16N

o16

,913

14,4

16N

A

33Io

wa

Cen

tral

Ark

o La

bora

torie

sS

p9ci

lized

trai

ning

in fe

rmen

tatio

n, fr

eeze

dry

ing,

EU

SA

test

ing

and

man

agem

ent s

kills

.

Jew

ell

99

No

52,8

4032

,096

NA

34K

irkw

ood

Pro

ctor

& G

ambl

eB

asic

ele

ctric

ity, p

ower

dis

trib

utio

n sy

stem

s,

mot

or a

pplic

atio

ns.

Iow

a C

ity70

317

Yes

106,

479

50,0

00N

A

35K

irkw

ood

Pep

co L

itho

Inc.

Sta

tistic

al P

roce

ss C

ontr

ol, t

eam

wor

k, p

roce

ss

impr

ovem

ent t

echn

ique

s an

d T

otal

Qua

lity

Ced

ar R

apid

s34

34N

o57

,145

25,0

00N

A

Man

agem

ent.

36S

outh

Eas

tern

The

Dia

l Cor

pora

tion

Tot

al Q

ualit

y M

anag

emen

t for

a w

orld

cla

ss

envi

ronm

ent.

For

t Mad

ison

625

70N

o16

0,30

046

,860

NA

37D

MA

CC

John

Dee

reC

ompu

ter

skill

s in

stru

ctio

n.D

es M

oine

s1,

517

403

No

65,1

7550

,000

NA

Des

Moi

nes

Wor

ks

38D

MA

CC

Pire

lli A

rmst

rong

Tire

Erg

onom

ic tr

aini

ng fo

cuse

d on

avo

idin

g

cum

ulat

ive

trau

ma

diso

rder

s &

des

ign

tool

s to

prev

ent i

t.

Des

Moi

nes

1,08

51,

035

No

61,0

0050

,000

NA

39N

W IA

Tec

hH

arva

rd In

dust

ries

Sta

ndar

dize

d tr

aini

ng o

f scr

ew m

achi

ne

oper

atio

n an

d tr

ain

trai

ners

.

Roc

k V

alle

y71

71N

o9,

786

9,78

6N

A

40D

MA

CC

Don

nelly

Mar

ketin

gT

rain

trai

ners

In P

C a

pplic

atio

ns &

sof

twar

e

utili

zatio

n.

Nev

ada

314

181

No

32,0

1015

,846

NA

41D

MA

CC

Ste

elW

orks

, Inc

.S

tatis

tcia

l Pro

cess

Con

trol

, tea

m p

robl

em-

solv

ing.

Des

Moi

nes

152

90N

o48

,911

25,5

20N

A

LFB

:G: \

Pro

ject

s \ R

etra

inP

age

8

BE

ST C

OPY

AV

MIL

ILE

Page 29: DOCUMENT RESUME ED 352 450 CE 062 507 INSTITUTION …DOCUMENT RESUME. ED 352 450. 1111"" CE 062 507. AUTHOR Wulf, Douglas; And Others TITLE Evaluation of the Job Retraining Program

Job

Ret

rain

ing

Pro

gram

*C

omm

unity

Col

lege

Bus

ines

sT

ype

of P

roje

ct

# of

Em

ploy

ees

Incr

ease

Avg

.

Hou

rly W

age

Afte

rT

rain

ing

Bus

ines

s

inve

st.

Sta

b%

Aw

ard

Oth

er J

ob T

rain

ing

Aw

ards

Nam

e of

Pro

gram

s

Tot

al

$ A

mou

ntC

ityT

otal

Ret

rain

ed

42H

awke

ye T

ech

Vik

ing

Pum

pS

tatis

tical

Pro

cess

Con

trol

, PC

Usa

ge,

supe

rvis

ory

deve

lopm

ent.

Ced

ar F

alls

770

243

No

53,5

7734

,023

NA

43N

W IA

Tec

hN

OB

L La

bora

torie

sT

ape

trai

ning

ses

sion

s on

bio

logi

cal w

ork.

Sio

ux C

ente

r21

21N

o9,

152

4,46

4N

A

44N

W IA

Tec

hN

OB

L La

bora

torie

sT

ape

trai

ning

ses

sion

s on

bio

logi

cal w

ork.

Sio

ux C

ente

r21

20N

o9,

152,

4,46

4N

A

45S

outh

Eas

tern

Haw

keye

Ste

el P

dts

Sta

tistic

al P

roce

ss C

ontr

ol.

Hou

ghto

n11

770

Yes

23,0

6012

,757

Car

l Per

kins

$1,8

00

46Io

wa

Val

ley

Mon

fort

Tot

al Q

ualit

y M

anag

emen

tM

arsh

allto

wn

1,23

715

0Y

es55

,296

50,0

00N

A

47H

awke

ye T

ech

John

Dee

reA

sses

smen

t, ba

sic

asse

mbl

y, c

ompu

ter

conc

epts

.W

ater

loo

1,00

013

0N

o38

7,50

050

,000

Car

l Per

kins

$35,

566

Ret

rain

ing

$100

,000

48N

IAC

CW

hite

-New

Idea

Man

ufac

turin

g re

quire

men

ts p

lann

ing.

Cha

rles

City

630

60N

o85

,390

50,0

00N

A

49K

irkw

ood

Cur

ries

Com

pany

Man

agem

ent,

cust

omer

ser

vice

, pro

duct

ion,

Mas

on C

ity49

186

No

64,8

7850

,000

280B

$565

.000

orde

r en

try

and

proc

essi

ng.

Car

l Per

kins

$6,2

52

50Io

wa

Cen

tral

Um

than

Tru

ckin

gT

echn

ical

ser

vice

s, c

omm

erci

al d

river

s lic

ense

,

supe

rvis

ory

skill

s.

Eag

le G

rove

428

251

No

83,7

4234

,940

NA

51Io

wa

Val

ley

Gen

pak

Sta

tistic

al p

roce

ss c

ontr

ol, p

rintin

g.Io

wa

Fal

ls10

032

No

25,5

3625

,417

NA

52W

. Iow

a T

ech.

VT

Indu

strie

sQ

ualit

y an

d pr

oduc

tivity

trai

ning

.H

olst

ein

202

101

No

19,2

1911

,819

NA

53W

. Iow

a T

ech.

Mid

wes

t Ind

ustie

sE

rgno

mic

s tr

aini

ngId

a G

rove

163

120

No

14,0

0012

,500

Ret

rain

ing

$50,

000

54W

. Iow

a T

ech.

Tur

Pak

Foo

dsE

rgon

omic

s tr

aini

ng.

Sio

ux C

ity32

032

0N

o38

,635

38,3

3028

08$3

1,00

0

FY

199

1 T

otal

:7,

620

$4,

245,

672

$ 1,

816,

021

Gra

nd T

otal

:13

,259

$11

,341

,203

$ 3,

337,

083

a.J'

LFB

:G: \

Pro

ject

s \ R

etra

inP

age

9a

0

Page 30: DOCUMENT RESUME ED 352 450 CE 062 507 INSTITUTION …DOCUMENT RESUME. ED 352 450. 1111"" CE 062 507. AUTHOR Wulf, Douglas; And Others TITLE Evaluation of the Job Retraining Program

NO

TE

S:

1) N

A =

Not

app

licab

le, n

ot a

vaila

ble,

or

not e

nter

ed o

n th

e R

etra

inin

g A

pplic

atio

n.

2) 2

80B

= T

he Io

wa

Indu

stria

l New

Job

s T

rain

ing

Pro

gram

.

3) N

EB

IT =

The

fede

rally

fund

ed N

ew a

nd E

xist

ing

Bus

ines

s an

d In

dust

ry T

rain

ing

oper

ated

thru

the

Dep

artm

ent o

f Edu

catio

n.

4) C

EB

A =

The

Com

mun

ity E

cono

mic

Bet

term

ent A

ccou

nt.

5) S

BA

= T

he U

nite

d S

tate

s S

mal

l Bus

ines

s A

dmin

istr

atio

n.

6) C

MG

= T

he fe

dera

lly fu

nded

Com

mun

ity D

evel

opm

ent B

lock

Gra

nt.

7) J

TP

A =

The

fede

rally

fund

ed J

ob T

rain

ing

Par

tner

ship

Act

.

8) F

RE

D =

The

Fun

ding

Rur

al E

cono

mic

Dev

elop

men

t Pro

gram

fund

ed fr

om th

e Io

wa

Com

mun

ity D

evel

opm

ent L

oan

Pro

gram

.

9) C

arl P

erki

ns =

Fed

eral

fund

s fo

r vo

catio

nal e

duca

tion.

LFB

:G: \

Pro

ject

s \ R

etra

inP

age

10

Page 31: DOCUMENT RESUME ED 352 450 CE 062 507 INSTITUTION …DOCUMENT RESUME. ED 352 450. 1111"" CE 062 507. AUTHOR Wulf, Douglas; And Others TITLE Evaluation of the Job Retraining Program

Appendix C

- 17 -

42

Page 32: DOCUMENT RESUME ED 352 450 CE 062 507 INSTITUTION …DOCUMENT RESUME. ED 352 450. 1111"" CE 062 507. AUTHOR Wulf, Douglas; And Others TITLE Evaluation of the Job Retraining Program

JOB

RE

TR

AIN

ING

PR

OG

RA

M C

OM

MU

NIT

Y C

OLL

EG

E S

UR

VE

Y

Col

lege

Bus

ines

sC

ity

Par

ticip

ants

Ent

erin

g

Ret

rain

ing

Par

ticip

ants

Com

plet

ing

Ref

rain

ing

DE

R

Eva

luat

ion

Inte

rnet

Evo

lust

ion

App

licat

ion

Fos

Tra

inin

g

Cas

t

(1)

(2)

(3)

(4)

151

(fl)

cmcm

eles

iew

eren

wsm

en

V' 1

990

DM

AC

CA

MA

TC

OJo

hnst

on19

In P

rogr

ess

Mon

adP

lann

ed$1

,100

$30,

413

DM

AC

CB

ridge

ston

ofF

irest

one

Des

Moi

nes

79in

Pro

gres

sP

lann

edP

lann

ed*1

,500

$50,

000

DM

AC

CC

arro

ll M

anuf

actu

ring

Car

rel

23in

Pro

gram

Pla

nned

Pla

nned

$1,5

00*4

9,75

0

DM

AC

CC

omm

erci

al P

rintin

gD

as M

oine

seo

In P

rogr

ess

Pla

nned

Pla

nned

$700

*21,

250

DM

AC

CD

olm

anD

es M

oine

s44

945

1Y

esY

es$1

,500

$50,

000

DM

AC

CE

cono

my

Dat

aD

es M

oine

s30

30Y

esY

es$7

00$1

5,55

0

DM

AC

CG

reyh

ound

Lbw

sD

es M

oine

sP

roje

ct d

enie

d by

Com

mun

ity C

olle

ge B

oard

of D

iract

ors.

DM

AC

CIM

T In

sura

nce

Des

Moi

nes

Pro

ject

pro

posa

l with

draw

n by

IMT

Insu

ranc

e.

DM

AC

CJo

hn D

eere

Ank

eny

427

800

Yes

Yes

*1,5

00*5

0,00

0

low

s W

este

rnJ.

P. I

ndus

trie

sA

tlant

ic28

020

0Y

esY

es$0

NA

Eas

tern

low

sA

koa

Riv

erda

le10

2In

Pro

gres

sN

oN

o*1

,500

$0

Eas

tern

Iow

aJo

hn D

ave

Dav

enpo

rt30

018

3N

oY

es$1

,500

*18,

000

WW

I:Io

wa

Mar

ley

Pum

pD

aven

port

8484

No

Yes

$8,5

00$4

3,97

5

Eas

tern

low

sQ

uad

City

Tin

esD

aven

port

2222

No

No

*1,5

00$0

Haw

key'

Tec

hJo

hn D

eers

Wat

erlo

o38

38Y

esY

es$1

,500

*8,0

00

How

keys

Tec

hK

oshr

ing

Cra

nes

Wav

erly

154

In P

rogr

ess

Yes

Pla

nned

$1,5

00*2

,500

Haw

k ly

e T

ech

Ous

mac

oW

inth

rop

11In

Pro

gres

sY

esP

lann

ed15

00$0

App

licat

ion

Fee

and

Adm

inis

trat

ive

Fes

An

expl

anat

ion

of C

olum

ns 4

-8 a

ppea

rs o

n th

e la

st p

egs.

4 3

LFB

:CC

Sur

vey

Pag

e 1

BE

ST

CO

PY

AV

AIL

AB

LE

44

Page 33: DOCUMENT RESUME ED 352 450 CE 062 507 INSTITUTION …DOCUMENT RESUME. ED 352 450. 1111"" CE 062 507. AUTHOR Wulf, Douglas; And Others TITLE Evaluation of the Job Retraining Program

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Page 34: DOCUMENT RESUME ED 352 450 CE 062 507 INSTITUTION …DOCUMENT RESUME. ED 352 450. 1111"" CE 062 507. AUTHOR Wulf, Douglas; And Others TITLE Evaluation of the Job Retraining Program

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Page 35: DOCUMENT RESUME ED 352 450 CE 062 507 INSTITUTION …DOCUMENT RESUME. ED 352 450. 1111"" CE 062 507. AUTHOR Wulf, Douglas; And Others TITLE Evaluation of the Job Retraining Program

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Page 36: DOCUMENT RESUME ED 352 450 CE 062 507 INSTITUTION …DOCUMENT RESUME. ED 352 450. 1111"" CE 062 507. AUTHOR Wulf, Douglas; And Others TITLE Evaluation of the Job Retraining Program

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Appendix D

- 19 -

Page 38: DOCUMENT RESUME ED 352 450 CE 062 507 INSTITUTION …DOCUMENT RESUME. ED 352 450. 1111"" CE 062 507. AUTHOR Wulf, Douglas; And Others TITLE Evaluation of the Job Retraining Program

TERRY E. BRANSTAD, GOVERNOR

July 15, 1991

Dennis F outy, DirectorLegislative Fiscal BureauState CapitolLOCAL

Dear Mr. Prouty:

DEPARTMENT OF ECONOMIC DEVELOPMENTALLAN T. THOMS, DIRECTOR

The Department of Economic Development has received a draft copyof the Legislative Fiscal Bureau's evaluation of the Iowaretraining Program. We appreciate the thoroughness of the LFBstaff in reviewing this complex program, and we generally agreewith their findings and recommendations. Our responses to thespecific recommendations listed on pages 13 and 14 follow.

1. The Department agrees.

2. The Department currently receives informal, verbalprojections from community college personnel regardingRetraining activity throughout the year. We would certainlyconsider more formal methods of notification, and willpursue this matter with the community colleges.

3. The Department has noted that some quality of job issues arenot readily quantifiable, such as when employees are givenownership in their positions, and their morale andproductivity therefore improves. More importantly, we wouldlike to point out that criteria "C" is defined in thelegislation and does include criteria which are objective innature. This definition refers to turnover, dollar value ofwages, full-time vs. part-time, etc.

4. The Department agrees with this recommendation and plans toexamine alternative mechanisms for serving very smallcompanies.

5. The Department agrees with this recommendation and willpursue it further with the Department of Education,

54

200 EAST GRAND / DES MOINES, IOWA 50309 / 515/242-4700 / FAX: 515/242-4859

Page 39: DOCUMENT RESUME ED 352 450 CE 062 507 INSTITUTION …DOCUMENT RESUME. ED 352 450. 1111"" CE 062 507. AUTHOR Wulf, Douglas; And Others TITLE Evaluation of the Job Retraining Program

6. The Department feels that because the types of training thatare undertaken are so diverse, it would be unfeasible torequire a single evaluation form suitable to all projects.However, we will attempt to identify some common elementsthat can be included in all evaluations.

7. The Department agrees with this recommendation.

There are several other items in the report that bear comment,although most are simply clarifications:

Program Operations at IDED

Page 2 - We would like to elaborate on the composition ofthe Retraining Review Committee. The review committeeinitially consisted of seven members. Six members wereDepartment staff, selected from various work units includingWorkforce Development, Business Development & FinancialAssistance, and Existing Industry. The other member was arepresentative of the Department of Education. Currently,four Department staff independently review the applicationsand the entire committee meets to discuss problematicapplications. In addition, the full committee meets on aquarterly basis to provide oversight and ensure consistencyfor the application review process.

Page three mentions the fees charged by the colleges toparticipating companies for application preparation andadministrative purposes. We wish to note that not allcolleges charge both fees. Some colleges may charge only anapplication fee, while others may only charge anadministrative fee.

IDED Staff Concerns and Recommendations

On page 6, it is mentioned that IDED seeks an improvedrelationship with the community colleges with regard to overcommitting their funds. We actually believe that this issueis due to the limited funds available for the program, whichleads some community colleges to deliberately staggerproject applications so that they cross fiscal years,especially as the March 1 reallocation deadline approaches.

Page 40: DOCUMENT RESUME ED 352 450 CE 062 507 INSTITUTION …DOCUMENT RESUME. ED 352 450. 1111"" CE 062 507. AUTHOR Wulf, Douglas; And Others TITLE Evaluation of the Job Retraining Program

The final paragraph under the same category, the Departmentquestions whether the term "competition" represents thecause of the matter. We do see the need to work inconjunction with the community colleges and the Departmentof Education to better coordinate courses and programsoffered by the various colleges.

Results of Survey Of/And Interviews With Community College Staff

Application Procedure

Page 7 - The Department acknowledges that delays occurred inapproving applications and executing contracts during thefirst several months of actual implementation due to theneed to develop sound procedures, contract formats, andensure common understanding of policies among all thoseinvolved with the program. Since this time, however, wehave implemented a more streamlined review process whichresults in determinations being made within two weeks, andoften within one week. We have achieved this time frameconsistently except for the period during the Spring of 1991when we received an abnormal number of applications justprior to the March 1 reallocation deadline and weresimultaneously awaiting the results of deappropriationsproposals.

Please note that the review criteria reflect therequirements set forth in the Code of Iowa, so we cannotunilaterally simplify them. We will, however, continue toreview with the community colleges, businesses, laborofficials, and other interested parties on an on-goingbasis, all aspects on the program with a view towardcontinually improving the program.

Award Notification

Page 8 - The Department makes the final determinationregarding project awards to business applicants. TheDepartment either notifies the business directly with anaward letter (and sends a copy to the college), or theDepartment sends the award letter to the college, which inturn distributes the letter to the business (three collegeshave requested this process). The community college boardof directors approves the college's business selections forinternal purposes, however,, the board does not give finalaward approval once the application has been submitted tothe Department.

vb

Page 41: DOCUMENT RESUME ED 352 450 CE 062 507 INSTITUTION …DOCUMENT RESUME. ED 352 450. 1111"" CE 062 507. AUTHOR Wulf, Douglas; And Others TITLE Evaluation of the Job Retraining Program

Results of Survey of Business Participants

Recommended Program Modifications

The Department has recently completed a brochure regardingthe Retraining Program, among others. This brochure iscurrently being distributed in an effort to better informall Iowa firms about all of the State's training programs.

I hope this letter proves to be a helpful addition to the reportprepared by the Legislative Fiscal Bureau. If there are anyquestions concerning it, please call Jeff Nall, Administrator ofthe Division of Workforce Development at 242-4779.

Sincerely,

Allan T. ThornsDirector