GRAND RAPIDS COMMUNITY

COLLEGEMNJTP PROCESS

Eric Williams

Mary Hofstra

A Michigan Community College Association Presentation

May 12, 2010

START UP CONCERNS

Innovating while Implementing Internal SystemsClient Systems

Key Success PartnersMary Hofstra !!!!!Economic DevelopersMEDCMichigan WorksOthers

Be Flexible…Be Creative…Be Right

PAY FORWARD MODEL

Met Legislative Legal TestCollege attorneys vetted process thoroughlyBond is to ensure legality of diverting taxes

Met Intention of Legislation Incentive to create new jobsTo 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 invoicesHow to chunk out bondHow to help employers forget about EDJTsHow to help employers set up accounting

booksLots of other stuff

GRCC MNJTP PREPAY MODEL

Employer

Contracts thru GRCC to train new employees

GRCC & Employer draft training plan

Employer prepays GRCC for first installment

GRCC cuts bond equal to prepayment – admin

costs

Payments continue until first installment is paid

GRCC remits quarterly to employer for prepayments

Employer withholding sent to GRCC; not State

Employer pays employees

Employer hires new employees

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