Job Training Incentive Pilot Program Guide

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1 Job Training Incentive Pilot Program Guide BACKGROUND INFORMATION In March 2014, the Minnesota Job Skills Partnership (MJSP) board approved funding for a request by the Minnesota Department of Employment and Economic Development (DEED) to create this pilot program to address an area of employment need for new or expanding businesses. The program will enable DEED to respond to immediate training requests that are related to economic development efforts being coordinated by DEED. The Job Training Incentive Pilot Program provides grants of up to $50,000 to new or expanding businesses for the purpose of training of new workers as quickly and efficiently as possible. The program is available to businesses that have less than 150 full-time employees and are increasing their Minnesota workforce by at least ten percent, with a minimum of five new jobs. This program will complement MJSP programs by covering training costs that may not be suitable under regular MJSP programs. Business Eligibility PROGRAM GUIDELINES The business currently has 150 or less full-time employees Must be a new or expanding business that commits to hiring full-time, permanent employees at 1950 hours per year (37.5 hours/week). The business will increase its Minnesota workforce by at least 10%, with a minimum of five new jobs The new jobs will be permanent, full-time positions (1950 hours annually) that pay wages of at least 110% of federal poverty guidelines ($12.45 per hour in 2014, $12.61 per hour beginning January 1, 2015). The business is engaged in manufacturing, warehouse, distributions, information technology, finance, insurance, or professional or technical services activities. Ineligible Businesses Businesses in the retail, health clinics, lobbying, gambling, sports facilities, and hospitality services industries. 1

2 Program Requirements The business must be able to demonstrate that its training needs cannot be met through a regular MJSP grant. The training is in an eligible topic area. The business must match state funds with cash or in-kind contributions at the following ratios based on current business size: o.5:1 for businesses with under 50 employees o.75:1 for businesses with employees o 1:1 for businesses with more than 100 employees The training must be completed within 18 months of grant award. The application must identify the training to be provided for each job category, projected costs, expected outcomes and a timeline for the training. If the training will not be provided by an accredited Minnesota educational institution, the application must include justification as to why not. Other Considerations Priority will be given to businesses in the manufacturing, skilled production and information technology industries. Priority will be given to businesses located in Greater Minnesota. The business is encouraged to utilize MinnesotaWorks.net and the services provided by DEED s Business Services Representatives in recruiting and screening new hires with an effort to connect the long-term unemployed and disadvantaged job seekers to new employment opportunities. Eligible Training All eligible training must be customized to meet the special requirements of the employer. The location of the training, schedule, curriculum, and instruction techniques may all be negotiated between the business and the training provider. Customized training in the following topic areas are eligible: Basic skill training (i.e. hand tools, blueprint reading, basic math, etc.) Advanced technical skill training Training on industry specific equipment Process/Quality related training Safety training Work-related language training Pre-employment training (limited to 25% of total award and reimbursement contingent on the trainees being hired in a full-time, permanent job at the required wage level) Soft-skill training (i.e. Communication, Leadership, Teamwork)(limited to 25% of total award) Train-the-trainer Other business specific training identified by the employer 2

3 Ineligible Training Company orientation type training Basic computer skills (i.e. MS Word, Excel, etc.) Off-the-shelf training Use of Funds Grants of up to $50,000 are available to businesses (award amount limited to a maximum average of $3,000 per employee and will be based on the level of training required and program costs). Grant funds may only be used towards new jobs, but any curriculum developed with grant funds may also be used for skills enhancement of existing employees at the employers cost. Funds may be used for direct training costs including curriculum development, training delivery, training materials and supplies, training equipment and facilities, and trainer travel and lodging costs. Funds may be used for assessment, testing and certification costs. Funds may be used for eligible training topics that are provided by an accredited MN educational institution, or with justification, training provided in-house; by federal, state, or local agencies; by consultants; and/or by equipment vendors. Eligible Business Matching Contributions Business contributions towards any of the training costs outlined under Use of Funds may be counted towards the required match. Employee wages for on-the-job training or wages paid during training. Although grant funds may not be used for off-the-shelf training, off-the-shelf training paid for by the business may count towards the required match. Application Timelines Funding may be divided into three grant rounds, contingent on the availability of funds. The deadlines for application submissions are listed below. Applications must be received by 4:30 p.m. on the application deadline: August 15, 2014 September 30, 2014 November 14, 2014 Application and Award Process Applications will be accepted through November 14, Immediately following each of the three application deadlines, applications will be evaluated by DEED and DEED will notify the applicant of approval or denial. 3

4 Proposals will be awarded on a competitive basis with a minimum score requirement of 30 points. Applications may be denied, awarded at a reduced amount or awarded at the requested amount. Before entering into an agreement, the commissioner will investigate the applicability of other training programs and determine whether the regular MJSP grant program is a more suitable source of funding for the training. If a grant is awarded, DEED will draft a grant contract. All contracts must be fully executed by December 31, Under the terms of the contract, the business will be reimbursed for eligible training costs at the end of the training provided the jobs are in place at the required wage and the business has submitted the final report. Review Guidelines Upon DEED s determination that initial eligibility requirements have been met, applications will be scored based on the following criteria. In order to receive an award, a minimum score of 30 must be achieved. Applications will be scored based on the following criteria: Number of jobs to be created (3-15 points) Business size (0-10 points) Average wage of new jobs (3-15 points) Voluntary benefits provided at a value of $2/hr. or more (5 points) Business located in Greater Minnesota (5 points) Recruitment strategy for hiring minorities, long-term unemployed and/or other disadvantaged job seekers (0-10 points) Utilization of MinnesotaWorks.net (5 points) Business contributions in excess of match requirement (0-10 points) Return on state investment (2-10 points) Utilization of an accredited MN educational institutions (5 points) Workers with skills being provided are in demand (5 points) Reporting Requirements The business must provide reports to the commissioner on a semi-annual basis. The reports will include a narrative overview of progress made in the hiring and training of new employees, a financial report with a breakdown of project costs to-date, and a trainee report providing information on the number trained and hired to-date. In addition, a final report will be due at the conclusion of the project that includes training outcomes, the effectiveness of the program and any specific suggestions for improvements that can be made to enhance the program. 4

5 Definitions Expanding business an existing business that is increasing its Minnesota workforce by at least ten percent and businesses with existing operations outside Minnesota that are expanding to Minnesota. Greater Minnesota areas outside of the seven county metro area which includes the following counties: Anoka, Carver, Dakota (excluding the city of Northfield), Hennepin (excluding the cities of Hanover and Rockford), Ramsey, Scott (excluding the city of New Prague) and Washington. Long-term unemployed those out of work for 27 weeks (6 months) or longer. New business a business with no parent company or current operations. New job a job provided by a new or expanding business that provides 1950 hours of work per year and is permanent with no planned termination date. Off-the-shelf training training that is provided in a standardized format at a pre-determined time and location; training that is not specially designed or customized to meet the special requirements of an employer. On-the-Job training employee training at the place of work while he or she is doing the actual job. Skilled production production jobs that require the worker to have knowledge about a specific skill or trade. Soft-skill a skill that lets you be effective in your job, but isn t directly related to your profession. CONTACT INFORMATION DEED Business Development Specialists are located in the Twin Cities, metro area and key regions throughout the state. They work closely with companies of all types to help them locate and expand in communities throughout Minnesota. Contact information can be found on DEED s website at the following link: DEED Business Services Representatives are located at offices throughout the state. They provide practical business solutions for finding and hiring new employees, retaining employees, accessing training resources, and general human resource information. Services are available at no fee. Contact information can be found on DEED s website at the following link: Minnesota State Colleges & Universities, Customized Training & Continuing Education works closely with business and industry to develop and deliver skill-based instruction identified as essential by employers and executives. Through the delivery of custom-made instruction, the MnSCU system trains over 150,000 employees a year, serving more than 6,000 Minnesota businesses and employers 5

6 annually. To learn more, call or visit their website at the following link: For additional information and for information to contact a college or university directly, you may also download the Customized Training Brochure at the following link: broc.pdf MinnesotaWorks.net is the state s no-fee online job data base that brings employers and job seekers together. Employers can post job openings using keywords that specify job description, title, required skills and experience and then review resumes that match their requirements. For more information on MinnesotaWorks.net visit the website at the following link: APPLICATION INSTRUCTIONS It is recommended that you consult with program staff before completing the grant application to help determine whether the regular MJSP program may be a more suitable source of funding. Program staff can be reached at or Steps for completing an application are provided below. Step 1 Complete the Eligibility Checklist Step 2 If all conditions on the Eligibility Checklist have been met, fully complete all four sections of the grant application using the forms provided. Step 3 Submit the completed application via mail or to MJSP at the following address: Jodie Greising Program Coordinator - MN Job Skills Partnership MN Department of Employment and Economic Development 332 Minnesota Street, Suite E200 St. Paul, MN

7 JOB TRAINING INCENTIVE PILOT PROGRAM ELIGIBILITY CHECKLIST This form is intended to serve as a general guideline to help you determine if you should complete a grant application on behalf of the business. Meeting the following conditions does not guarantee eligibility or a grant award. Business Eligibility The business must meet all of the following conditions to apply for a Job Training Incentive Pilot Program grant. 1. Business is engaged in an eligible business activity (manufacturing, warehouse, distribution, information technology, finance, insurance, or professional or technical services). 2. Business will increase its Minnesota workforce by at least 10%, with a minimum of 5 new jobs. 3. The new jobs will be permanent, full-time positions (1950 hours annually) that pay at least $12.45 per hour in wages, and $12.61 per hour beginning January 1, The business currently has 150 or less full-time employees. Project Eligibility The training project must meet all of the following conditions to be eligible for funding. 1. The business can demonstrate that its training needs cannot be met through a traditional MN Job Skills Partnership grant. 2. The training is in an eligible topic area as outlined on page The business will match the grant with cash or in-kind contributions at the required level based on business size as outlined on page Grant funded training activities will be completed within 18 months of award 5. Application will be submitted no later than November 14, 2014.

8 JOB TRAINING INCENTIVE PILOT PROGRAM APPLICATION Section 1. Business Applicant Information Business: Mailing Address: Street Address for Project (if different): Primary Business Contact and Title: Website: Minnesota Tax ID: NAICS Code: Business Legal Name: City/State/Zip: City/State/Zip for Project: Telephone: FEIN: Primary Business Activity for Proposed Project: Does the business have any outstanding local, state or federal tax liabilities? Yes No If yes, describe: Are there current or unsatisfied judgments or injunctions against the business or owners? Yes No If yes, describe: Is there current or pending litigation involving the business? Yes No If yes, attach summary and disposition. Within the past five years, has there been any violation(s), citation(s), or complaint(s) of discrimination filed against the company in a state or federal court or before any state, federal or local government agency? Yes No If yes, attach a copy of the violation(s), citation(s), or complaint(s) and the disposition of each. Section 2. Project Overview New or Expanding Business: New business with no parent company or current operations Expansion of existing facility or Minnesota company Expansion to Minnesota by a company with existing operations outside Minnesota Current number of employees company-wide: Current number of permanent, full-time employees in Minnesota: Current number of permanent, full-time employees at proposed training site: Will any jobs be relocated from another MN site to the proposed training site: If yes, which location(s) will the employees be relocated from: Projected number of new full-time, permanent jobs at proposed training site: Project timeframe: Date hiring to begin: Date training to begin: Date training to be completed:

9 Date operations to begin: Section 3. Project Narrative Part A. Business Description Describe the business and its major activities. Part B. Detailed Job and Wage Information Complete the following table for permanent, full-time jobs to be created. For the purposes of the Job Training Incentive program, full-time jobs are defined as jobs consisting of 1950 hours worked per year. Hourly benefits include non-mandated benefits to the employee. Social security tax, unemployment insurance, workers compensation insurance and other benefits mandated by law are not to be included. Position Title (list permanent, full-time positions only) Number of Positions Hourly Rate w/o Benefits Hourly Value of Benefits Total Hourly Wage Including Benefits Total Jobs to be Created: Part C. Recruitment Plan The Minnesota Department of Employment and Economic Development (DEED) encourages grant applicants to utilize MinnesotaWorks.net, the state s no-fee online job database that brings employers and job seekers together. Furthermore, DEED encourages applicants to utilize the services provided by DEED s workforce development staff in recruiting and screening new hires with an emphasis on hiring economically disadvantaged and/or minority populations. In the space provided below, please indicate if you intend to utilize MinnesotaWorks.net or the services provided by DEED s workforce development staff. Also provide information on any other efforts or organizations you will work with to recruit economically disadvantaged and/or minority populations. Part D. Training Plan In the table below, indicate the course titles or training topics to be provided through the project. For each course or training topic to be provided, indicate the number to be trained, the job positions of those to be trained and the training provider. Number of Course Title or Training Topic Positions of Trainees Training Provider Trainees

10 In the space provided below, please provide a description of the training. The description should include an approximate timeline for training, whether the training is an existing course or customized, the delivery method (i.e. on-line, classroom, on-the-job, etc.), and any certifications that will be provided. If an accredited, Minnesota educational institution will not be providing any of the training listed above, please explain the reason in the space provide below. Part E. Expected Outcomes In the space provided below, please describe the expected outcomes of the training, including any expected measurable outcomes. Part F. Budget Provide a breakdown of the projected costs. The budget item description must include the course or training topic the cost is associated with, the type of cost (i.e. delivery of training, curriculum development, materials or supplies, travel, training equipment, trainee wage, etc.), and any formula used to determine the cost. For each budget item, specify the amount to be covered by Job Training Incentive Pilot Program (WTIP) grant funds, contributions by the applicant business, and/or funds leveraged from other sources. Budget Item Description JTIP Grant Funds Applicant Business Contributions Other Leveraged Funds Total Cost Total Business Match Ratio (total business contributions divided by total JTIP grant funds): Data Privacy Acknowledgement: Section 4. Business Acknowledgement and Certification Tennessen Warning Notice: per MN Statutes 13.04, Subd.2, this data is being requested from you to determine if you are eligible for an award under the Job Training Incentive Pilot program. You are not required to provide the requested information, but failure to do so may result in DEED s inability to determine your eligibility for an

11 award. The data you provide is classified as private or non-public and cannot be shared without your permission except as specified in statute. Data Privacy Notice: per MN Statutes , Subdivision 1, certain data provided in this application is private or non-public data; this includes financial information about the business, including credit reports, financial statements, net worth calculations, business plans; income and expense projections; balance sheets; customer lists; income tax returns; and design, market, and feasibility studies not paid for with public funds. Business Certification: I have read the above statements and agree to supply the information requested to the MN Department of Employment and Economic Development with full knowledge of the information provided herein. I certify that all information provided herein is true and accurate and that the official signing this form has authorization to do so. Name of Business Official: Title: Signature: Date:

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