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Grand Rapids Community College MNJTP Process. A Michigan Community College Association Presentation May 12, 2010. Eric Williams Mary Hofstra. Start Up Concerns. Innovating while Implementing Internal Systems Client Systems Key Success Partners Mary Hofstra !!!!! Economic Developers
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Grand Rapids Community CollegeMNJTP Process A Michigan Community College Association Presentation May 12, 2010 Eric Williams Mary Hofstra
Start Up Concerns • Innovating while Implementing • Internal Systems • Client Systems • Key Success Partners • Mary Hofstra !!!!! • Economic Developers • MEDC • Michigan Works • Others • Be Flexible…Be Creative…Be Right
Pay Forward Model • Met Legislative Legal Test • College attorneys vetted process thoroughly • Bond is to ensure legality of diverting taxes • Met Intention of Legislation • Incentive to create new jobs • To support employer workforce development • Met Treasury Department Review
Client Response • No need for lien ….Yeah !! • Workforce needs training so lets work together to figure it out. • Upfront investment may be substantial but they will recoup all of it over time. • So much easier than EJDT’s and Incumbent Worker Program. • No restrictions on what type of training could be done. • They see the money as their money and not state dollars.
Key Questions to Consider • How to track new jobs especially when workers are transferring internally? Or track costs when incumbent workers participate in training? • How to set up payment options for an employer? Pay invoices as they come in? Collect up front payments in chunks? Other? • What key Employer players need to be in initial discussions? HR? Finance? Sr. Mgmt.? • How to get employers to keep the College in the loop with internal training? • How to determine if training is based on sustainable growth or is project related?
Unexpected Surprises • Necessity for Bonding • Difficulties with drafting & costing out a comprehensive long-term training plan • Thinking through a tracking data system • Complexities of Pay Forward Model • How and who to pay invoices • How to chunk out bond • How to help employers forget about EDJTs • How to help employers set up accounting books • Lots of other stuff
GRCC MNJTP Prepay Model Employer Employer hires new employees Contracts thru GRCC to train new employees Employer pays employees GRCC & Employer draft training plan Employer withholding sent to GRCC; not State Employer prepays GRCC for first installment GRCC remits quarterly to employer for prepayments GRCC cuts bond equal to prepayment – admin costs Payments continue until first installment is paid
Partnerships • Cross Departmental Partnerships • Finance • Training Solutions • Economic Development • Internal Communication Opportunities • Leadership (Administrative & Board) • College-wide • Attorney Partnerships • Miller Canfield • Client Legal Representative • Economic Development Partnerships • Lakeshore Advantage • The Right Place • MEDC • Michigan Works
Some Lessons Learned • Employers think its too good to be true • Work on tracking project data can be overwhelming • Agreement and Training Plan are separate initiatives • Probably will need to hire help if state cap is raised • Role of College is elevated in eyes of employers and economic developers • Lots of work but lots of fun