Thursday, August 13, 2015

Tapping Wages for Training

Inside Higher Ed
August 13th, 2015

Companies teaming up with local colleges and universities to develop employee training programs isn't new. But a program in Michigan has found success with an unusual way to fund these programs.
The Michigan New Jobs Training Program works as a two-way pipeline between the state's community colleges and local industries. Businesses looking for a well-trained workforce contract with the colleges to provide training for their newly hired employees. The colleges are then paid by diverting state income tax withholdings from the employees into a fund that reimburses the institutions.
The program, inspired by a similar initiative that took off in the 1980s in Iowa, was established during the height of the recession in Michigan. A similar program also exists in Kansas. Michigan's program was due to expire in 2018, but was recently renewed and extended through 2023.

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