Tuesday, December 15, 2009

Wisconsin Jobs Initiative is crucial for economic recovery

Wisconsin’s unemployed workers are enrolling in the state’s 16 technical colleges in record numbers, stretching the Wisconsin Technical College System's (WTCS) capacity to the breaking point.

Milwaukee Area Technical College (MATC), the WTCS's largest institution, is currently experiencing a 27% increase in enrollment.

The states other 15 technical colleges have experienced similar record enrollment increases, led by Blackhawk Technical College in Janesville, home of the a closed GM manufacturing plant, which led all tech colleges last year with a 21.5% increase and an astounding 42% over the last two years.

Record enrollments are being driven by dislocated workers and veterans seeking retraining and because the relatively low cost of technical colleges is attractive to all students.

On Saturday the Milwaukee Journal Journal highlighted MATC's work retraining laid off Midwest Airline pilots.

With unemployment projected to remain stubbornly high into 2012 and a record number of long-term unemployed, tech colleges anticipate that enrollment increases will continue. This year, 14 of the 16 colleges are estimating increases of over 10 percent and half of the colleges are estimating increases of 15 percent or more in FTE enrollment.

In an effort to accommodate the influx of students, technical colleges have added increased sections, expanded evening, weekend and on-line courses, increased student pupil ratios, relaxed enrollment deadlines and waived application and other fees for dislocated workers

Many programs at MATC and other tech colleges are now at capacity, despite running day and night and on weekends. Waiting lists are growing.

The Obama administration recognized the key role tech colleges play in helping the economy and the nation's workers recover when it appropriated $12 billion for two -year college education and training.

But there is a catch. Federal training dollars in the America's Graduation Initiative require a local match. Once the bill passes the United States Senate early next year, it will be up to Governor Doyle and the democratically controlled Wisconsin Legislature to appropriate additional funds so that Wisconsin qualifies for these federal training dollars.

State Representative Cory Mason (D-Racine) has authored legislation, the Wisconsin Jobs Initiative, that would appropriate $145 million and generate a $135 million federal match. The bill provides enough funds to train an additional 40,000 Wisconsin workers. Milwaukee's Tamara Grigsby (D-Milwaukee) is the second lead on the bill which has been endorsed by 18 additional legislators and the Wisconsin Technical College Boards Association.

When the Legislature reconvenes after the holidays it is critical that it pass this legislation. Otherwise, the doors of opportunity will begin to close on Wisconsin's dislocated workers.

112 comments:

Anonymous said...

Good post. Cory Mason gets it. He gets that funding need-based student aid and technical college capacity, and leveraging federal dollars to Wisconsin, together create a powerful way to attack the state's jobs problem. Mason's plan, unlike any other out there, puts the state's emphasis on creating real jobs quickly.

Peter said...

This is a fine example of policy-making that state governments can do -- and what they cannot and should not do.

Employment is to a large extent a macroeconomic phenomenon, contingent upon aggregate demand - and to subsequent aggregate demand for labor. It is also a regional phenomenon tied to industries and occupations.

States and local governments can only engage in races to the bottom when 'competing' on things like marginal tax rates for corporations, capital gains taxes, and regulatory environments. While I would prefer to see stronger national standards on regulation (and enforcement!) as well as uniformity (upward) on progressive taxation in general, we should not believe that we ought to 'compete' on such things. We are 'competing' for essentially nothing unless the macroeconomic situation improves.

Further, we as a state can control only so much in the macroeconomic sphere, and we should not try to control more than what is within our policy-making agency. For example, cutting taxes or creating a patchwork of incomprehensible (and ultimately unfair rent-seeking) tax breaks (or incentives, or however anyone wants to rhetorically dress them up) is an attempt at macroeconomic policy-making that can only have deleterious effects for state citizens. We lose out on revenue to invest (more on that in a second) without affecting the mesoeconomic scale of 'job creation' in a significant way -- unless we are willing to engage in a race to the bottom (which arguably is one of the worst things we can do).

Instead, states -- and regions -- need to prepare for macroeconomic rebound (if it is indeed coming, which I would argue is questionable) and we need to position ourselves to create self-reinforcing cycles of an employment multiplier effect. To do that, we need to invest and craft policies that leverage both employment and returns to higher wage employment.

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Statewide and regionally, we are going to improve our employment situation (if macroeconomics goes positively for the nation -- and world -- at-large), and we are going to improve by the most amount, with returns to investment in that which creates higher wage jobs. That means things like higher-skill and high-productivity manufacturing as well as improving the 'quality' of lower-skill jobs that can become medium-wage jobs.

Perhaps the best way to do that is to invest in our state's excellent technical college system, expanding capacity and offerings, getting more students in the door (and without the significant drag on real take-home earnings that is student debt), and graduating more well-trained, high-skill workers who can build the backbone of a high-wage economy in Wisconsin. Regionally, the upper midwest, and Wisconsin in particular, retains a competitive edge in manufacturing skill and capacity. Even though manufacturing and the associated industries have been decimated (for a lot of policy reasons, not the magic of 'globalization'), this is still a realm within which we can find the possibility to grow, expand and improve our state economy and its employment prospects for working people.

There are some elected officials and policy-makers that get it. They understand that there are not easy answers, that we do not control our own destiny in the 'job creation' venue, and that we need to manipulate the levers of policy that are available in the manner that befits our capacity. Cory Mason is most definitely one of those. And his proposal fits right in the wheelhouse of strong, bold, responsible policy program.

Our state -- and our nation -- will not 'recover,' in overall GDP (or its analogues) or in employment until macroeconomic policy is made more sanely and with stronger values behind it. That we cannot control ourselves here in Wisconsin. But we can do things to create virtuous, self-reinforcing cycles of gains by making good policy choices on investment in training, capacity, and skill-building. That is what we need, and that is precisely what Cory's plan puts forward.

We will not create jobs quickly no matter what; we will not quickly put a big dent in the unemployment (and underemployment) picture. We are dealing with long-term, systemic problems (i.e. stop blaming George Bush and start blaming Ronald Reagan). But as aggregate demand gets rebuilt, we can contribute to its acceleration and its capture, so to speak, in Wisconsin by moving good policy like this forward now to engage in the steady, continuous rebuilding of Wisconsin's economy that is necessary and pertinent.

-Peter Rickman-

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