Funding Source Brief - Employment Training Panel (ETP)

Background
Employment Training Panel (ETP) funding is a state funding pool, of approximately $50 million, intended to assist California companies with upgrading the skills of current workers. The fund is administered by a panel, which considers grant requests from companies, and from training providers and Workforce Investment Boards acting on behalf of companies. Awards range from $50,000 (or less) to $5 million. It is important to note that ETP is not a direct or upfront grant, but rather a reserve allocation to reimburse companies for training performed. To receive the full funding award, applicants must demonstrate that training was carried out and that training participants are still employed 90 days after training completion.

To receive grants from this source, community colleges, in partnership with employers need first to develop a grant application to the ETP panel, proposing to offer specified training(s) to a set number of workers. Training can be in a variety of areas including new technology applications, project management skills, training on new MIS or software platforms, and enhancing literacy and numeracy skills for low-skill workers.

After a training plan and proposal is completed and submitted, the ETP panel assigns a staff member to work with the employer-community college partner on application development, and creation of a budget. Based on staff determination, proposed training will be funded at one of two rates depending on training complexity: $13 per person per hour or $20 per person per hour. When the staff feels a proposal is ready for consideration, it is presented to the next monthly panel meeting for funding approval.

Opportunities and Issues
ETP funding is a significant opportunity for colleges with the connections, capacity and interest to deliver training and education services to community employers. As noted above, colleges can receive reimbursement of up to $20 per hour per student (depending on training complexity). A class of 10 would thus be reimbursed at up to $200 an hour. ETP offers colleges with good relationships with area employers an opportunity to deploy faculty and curriculum in new ways that can provide additional revenue, better inform colleges of regional labor market opportunities and open new career pathways for students. Some colleges, including College of the Canyon, Glendale College and Santa Monica College, have been very successful in accessing ETP as an outside funding source over the last few years, serving as key partners in training grants of several million dollars.

Many other community colleges however have not yet accessed this important funding source. Reasons include:

  • A lack of the kind of established relationships with local employers needed to develop upgrade training;
  • A perception that ETP requires intensive tracking and that MIS requirements will strain the current college capacity or infrastructure in this area;
  • A perception that the ETP policy of payment as reimbursement for completed training creates an unacceptable financial risk.

At the same time community colleges should not dismiss the potential of ETP as a means to build on existing college strengths in faculty, curriculum and program. Colleges that offer high level specialized training in areas of employer interest have a clear opportunity to seek ETP funding. Yet virtually all community colleges have the potential to benefit from ETP. Most employers are seeking---in flexible form-just the kind of training many colleges already offer including Contextualized Teaching and Learning, assistance in understanding and using new software and technologies and the kind of business skills needed to succeed in the workplace.

Community colleges that currently offer training and education in these and related areas should consider ETP as an additional revenue source, and explore opportunities with local employers. As the experience of Glendale, Santa Monica and College of the Canyons indicates, the barriers described above, while real, can all be overcome or mitigated. Strategies include using the potential for ETP funded training as a means to develop or expand partnerships with local business, using ETP revenue to support staff dedicated to MIS and tracking, and requiring companies to post a bond to cover the cost of training.

To access ETP funding, community colleges need to develop capacity in six key areas:

  • An infrastructure that is responsive to workforce development programs;
  • Partnerships with employers;
  • An understanding of the opportunities and challenges of ETP;
  • The capacity to monitor and track training and education services;
  • The ability to integrate academic and vocational education and training;
  • The ability to deliver short-term courses on a flexible schedule.

Next Steps

  1. Assess current program capacity and faculty interest in providing a wide variety of training in non-traditional settings;
  2. Seek interest among employment partners in development of needed upgrade training including training in basic skills such as applied literacy and numeracy;
  3. Develop a program framework that meets the following criteria:
    • Provides short-term training;
    • Provides off-campus training at flexible schedules;
    • Incorporates employer specific skills;
  4. Discuss ETP opportunities and challenges with a current community college contract holder;
  5. Approach the Employment Training Panel to determine interest.