Idaho public-private training grants could get another $5 million

Lawmakers will decide this year whether the Idaho Department of Labor should award an extra $5 million this year in Industry Sector Grants.

The grants offer money for college-level training for specific professions, as long as private companies pay for one quarter of the cost. The Labor Department has funded $1.8 million in grants in the past two years from the state’s unemployment tax. It is offering another $1 million in competitive grants; applications are due Feb. 2.

The added $5 million would come from the state’s general fund, which is raised with  state sales and income tax receipts. The one-time funding would increase the amount of money at the Labor Department’s disposal to address the state’s shortage of trained workers. According to the department, by 2022 the state will have 109,000 new jobs, but the labor force will grow by less than 14,000.

The added funding is also supported by the Idaho Department of Commerce. Commerce Director Jeff Sayer told lawmakers Jan. 29 that the state needs to increase professional-technical education for incoming workers.

“Right now, we are 95,000 workers short of fueling our economic growth,” Sayer said, referring to the Department of Labor’s projected shortfall.

Bob Fick, spokesman for the Labor Department, said the department can follow students and workers who participate in Industry Sector Grants to see where they land jobs, how much they earn and even if they remain in Idaho.

Each grant requires a university or community college partner, as well as at least three industry partners. Fick said having private businesses involved will cut down on waste, since businesses won’t spend money on programs they don’t need.

“The important thing about this versus other initiatives in this area is that business puts its money where its mouth is,” Fick said. “That’s what separates this from a lot of other economic development initiatives: there’s direct, real participation with businesses.”

Industry Sector Pilots

Tthe department gave out the first round of Industry Sector Grants in 2013. Boise State University got $1 million for its computer science program, with eight Boise technology companies contributing $310,768 for scholarships. Idaho State University received $532,180 for more physician assistant students in the Treasure Valley, and North Idaho College received money to train timber products workers.

Boise State is seeing increased growth in its computer science program, driven by the grant and other sources of funding. Tech companies for years have been calling for more money and more graduates.

“We have a massive shortage of computer scientists and engineers. It’s a major impediment to growth. Sixty-five percent of the software engineers in the southern part of the state had to be moved in,” said Bob Lokken, CEO of WhiteCloud Analytics.

ISU is adding more physician assistant students in the Treasure Valley, mirroring its program in Pocatello. The Industry Sector Grant allowed the school to add a cohort of 12 students this fall at the College of Idaho in Caldwell, in addition to the 30 who started this fall in Meridian.

“These are very critical positions. They are high wage positions that add to the economy and are essential to the care of our population,” said Bessie Katsilometes, associate vice president for university programs at the ISU Meridian Health Science Center. The Labor Department grant for ISU is supported by St. Luke’s Health System, Saint Alphonsus Health System and Blue Cross of Idaho.

North Idaho College’s grant-funded program, called the Wood Products Manufacturing Center For Excellence, trains workers in three areas: operating and programming industrial controls for advanced manufacturing equipment, filing saws used to cut trees, and log scaling, the practice of measuring and grading cut lumber. The private-sector partners for the grant are three of the larger mill operators in northern Idaho, Idaho Forest Group, Potlatch Corp. and Stimson Lumber, which have a combined 11 mills and 1,100 employees.

Marie Price, NIC’s director for workforce training, said the companies have been working with the college for years on training efforts.

“The concern is bringing in individuals to replace the aging workforce as well as equipping their incumbent workers with skills for automation,” she said. NIC trained 40 workers in 2014 and has a goal of training 120 this year. Those trainings happen in NIC facilities, online and at mills.

Price said NIC won’t be applying for this February’s round of Industry Sector Grants, but she’s working to identify other industries that could use the program. The required 25 percent private-sector cash match is a barrier for some companies. Still,  she said, the grants are a “great tool in the tool belt for workforce and economic development to help build a skilled workforce.”