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
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.