California Manufacturers & Technology Association. Robert Sanger (Don t let me bore you, interrupt at will!)
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1 California Manufacturers & Technology Association Robert Sanger (Don t let me bore you, interrupt at will!) 1
2 Presentation Objectives 1. Employment Training Panel Overview -CMTA s Role -Eligibility Requirements for ETP Funds -Ways to Apply, Direct vs. CMTA 2. Go Biz Opportunities -Tax credit, Brewery Examples -Business Assistance 2
3 Is this for real? 3
4 What is the ETP??? Created in 1982 using funds from Employment Training Tax (ETT) Not General Fund Designed to train existing workforce Over 50,000 California businesses served More than $1 Billion in training funds expended in CA. 4
5 What is the ETP s Mission? Encourage companies who face out-ofstate competition to remain in California Offset some of the costs of training employees who need to upgrade skills Designed for employer s existing workforce or newly hired workers 5
6 What is CMTA s Role? Business Consultant Assist Clients Directly IBM, E & J Gallo, Gatorade, others Assist Clients via Block Grant Hundreds of small companies served. Streamlined Process 6
7 Eligibility Criteria for the company Company and eligible employees are located in California Challenged with Out-of-State competition Manufacturing or technology industry Business pays into the ETT Other priority industries as determined by ETP 7
8 Trainee Base Eligibility Full-time employee (at least 35 hours per week) Year-round employee (not seasonal or temp) Earns ETP wage requirement for the county ~ $17 per hour. Use company paid health benefits to meet this wage. Also can include business owners if less than 10 employees. 8
9 Examples of Training Funded Business Skills (Product Knowledge, Negotiating, Customer Service) Computer Skills (Microsoft Word, Excel, Access) Continuous Improvement (JIT, Lean, Teambuilding, ISO) Management Skills (Leadership, Motivating High Performance Teams) Manufacturing Skills (Operations, Maintenance) Vocational English as a Second Language (VESL) Entrepreneurship training (business owners training to grow business) 9
10 Examples of Sierra Sierra Nevada Brewery Curriculum Communication Skills/Purchasing Coaching/Learning/ Sales/ Customer Service /Sierra Nevada Brewery 101/ Hazwopper /First Time Supervisor Training/ Production/ Leadership Training Manufacturing Operations/Equipment Maintenance/ Mfg. Processes 10
11 Training Methods Training methods can include: Classroom (easiest to track for ETP) ----including Laboratory, demonstration, simulator Instructor-led online training (WebEx, etc.) Computer-based modules ( low $) On the job training (very limited) 11
12 Eligible Trainers Any of your own staff Professional trainers, Community Colleges, etc. Class size: Maximum ratio of 1 instructor to 20 students Training can be on-site or off-site (in California) 13
13 Training Reimbursement Rates Hourly Reimbursement Minimum number of hours Reimbursement Rate $15-26 per hr. Per trainee 8 hours per trainee 14
14 How much will you earn? Example of reimbursement calculation: Estimated 80 class/lab hours of training to be given Rate of $26 per hour reimbursement by ETP 75 company employees to be trained 80 hours x $26/hr = $2,080 per employee 75 employees x $2,080 = $156,000 earned by employer 15
15 Project Administration Collect class/lab rosters signed by trainee or export from an approved Learning Management System Input or transfer trainee data into provided CMTA database Submit employee enrollment information Allow ETP review of classes and rosters SSN s and other demographic data needed 16
16 How can CMTA help? Advises you throughout the process to help you earn your own contract or with CMTA s block grant. Helps you complete any forms and electronically submits training and enrollment data. Provides training funds so you don t have to apply directly to the ETP Invoices for payment to the ETP A sounding board to ask the questions you don t want to ask the ETP directly 18
17 Go Biz About GO-Biz The Governor s Office of Business and Economic Development (GO-Biz) serves as California s single point of contact for economic development and job creation efforts. GO-Biz offers: attraction, retention and expansion services, site selection, permit streamlining, clearing of regulatory hurdles, assistance with state government, and much more. Phone: (877) support@go-biz.desk-mail.com 19
18 Go Biz Tax Credit GO-Biz Receives 341 California Competes Applications Seeking $75 Million in Available Tax Credits 8/25/2015 2:50:00 PM Sacramento, Calif. The Governor s Office of Business and Economic Development (GO-Biz) today announced that it received a total of 341 applications with a combined tax credit request of $269 million for an available $75 million for the most recent California Competes Tax Credit application period which closed on August 17, 2015 Tremblor Brewing, LLC $27,800 tax credit 14,500 sq ft. brewery and tasting room Exhibit A 20
19 Go Biz Tax Incentive Wins Knee Deep Brewing (pending N ov 10 approval) Auburn Modern Times LLC San Diego Council Brewing Company Temblor Brewing LLC San Diego Bakersfield Provino, Inc. Santa Rosa Craft Brewery Specialty Micro- Brewery Specialty Micro- Brewery Craft Brewery Wine & Beverage Wholesaler 21
20 State Sales Tax Partial Exemption Manufacturing and R&D Exemption - manufacturers and certain research and developers may qualify for a partial exemption of sales and use tax on certain manufacturing and research and development equipment purchases and leases. 22
21 Saluti, A Vôtre Santé, Prost Rob Sanger Phone: rsanger@cmta.net 23
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