HB 177 SOLOWORKER

PROGRAM

How Did We Get Those Numbers?

Attrition: 1446

Unemployment: 294

Growth: 143 ________________________

1,883

How Many Economic Base Jobs Do We Need?

A group of people from the EDC, the COG, and the community was convened twice during the Jobs Council and once after to reaffirm these numbers. These numbers were then reviewed without challenge by economists.

Import substitution is technically not economic base in nature as it seeks to replace goods and services purchased from outside the economy with those produced internally by attracting, expanding and starting local suppliers.

Theater Activities Jobs Potential

Traditional Economic Development

Recruiting, expansion and retention of major employers 225

Federal Government Liaison BRAC defense efforts, Health, Education 100

Film and Digital Media Film, TV, games 0

Entrepreneurship Innovation to Enterprise, start ups, tech transfer 0

Solopreneurship and solo/remote work

Freelancers, 1099 contractors, independent workers 450

Visitor Driven Tourism, hospitality, transit services 250

Retirement Affluent retirement strategies 200

Agriculture New crop Development 325

Extractives and Energy Mining, oil & gas, power plants, wind, solar, bio 400

Import Substitution* Produce locally instead of importing 0

Total 1950

Where can we get 1,883 jobs?

Is There Enough Job Potential?

E-base jobs needed: 1,883  E-base jobs potential: 1,950  

SoloWorks: Job Creation Plan by Location

  SoloWorks

Cibola URBAN 1 RURAL 1 RURAL 2 URBAN 2 RURAL 3 RURAL 4 TTL (year) TTL (agg)

Year 1 0                

Year 2 35 0 0 0      

35 35

Year 3 50 35 35 35 0 0 0 155 190

Year 4 60 50 50 50 35 35 35 315 505

Year 5 70 60 60 60 50 50 50 400 905

Year 6 70 70 70 70 60 60 60 460 1365

Year 7 70 70 70 70 70 70 70 490 1855

Year 8 70 70 70 70 70 70 70 490 2345

Year 9 70 70 70 70 70 70 70 490 2835

Year 10 70 70 70 70 70 70 70 490 3325

Facility TTL 565 495 495 495 425 425 425    

Strategic Partners ü  CELab ü  CCEDF

ü  NMSU Grants ü  NWNM COG

ü  SBDC at NMSU Grants ü  ABQ Fatpipe

ü  NM EDD ü  USDA

ü  Cibola Workforce Connections Office ü  Continental Divide Electric Co-Op

ü  Homestake Mining Company

Workforce Needs: Workforce Training Ø  Medium to highly technical skilled Ø  Soft skills Ø  Vocational trades and skills

Education System Ø  Integration of more online resources with

hands on applications Ø  SoloWorks now has its own Learning

Management System

How Does a SoloWork Program Find Workers?

u Social media presence on Facebook, Twitter, LinkedIn, Instagram

u Website

u Word of mouth u Coverage by local and state media

SoloWorks: Target Populations

u  Disabled* u  Trailing Spouses* u  High School

Graduates u  College Graduates/

Students

u  SAH Parents, Caretakers*

u Chronically poor, underemployed, hard to employ, domestic issues*

u Retirees* * Potential sources of greater workforce participation percentage

How Does a SoloWork Program Train workers?

Ø  Saylor Academy – Variety, including Customer Service, Business Skills, Spreadsheets, Time Management

Ø  HubSpot – Marketing Ø  Lisa Wells – S/B Virtual assistant Ø  DigitalGarage – Marketing & analysis Ø  Career Step - Medical Billing and Coding Ø  Kelly Services – Applications and Materials Ø  Microsoft Digital Literacy Curriculum – Digital

Literacy and Computer Basics

How Does a SoloWork Program Place Workers?

u Lisa R. Wells – Virtual assistant placement assistance post training

u Career Step – Partnered with RCM Staffing, which staffs 400 healthcare institutions.

u Virtual Call Center Partners – They use a platform that facilitates jobs with around 30 Fortune 500 companies in customer service, technical support, and sales positions

u Multiple staffing alliances

SoloWorks: Target Industries

u Customer Service

u Technical Support/IT

u Programming/CS/ Software Dev

u Healthcare Industry (Medical Billing/Coding)

u E-Commerce

u Art/Creation

u Writing/Editing

u Translation/Transcription

u Bookkeeping

u Virtual Assisting

u  Social Media

How does a SoloWork Program Aggregate workers?

u Backend ecosystem for support and retention

u Five-year career planning and management

u Mentorship and accountability programs

Coming Soon…..

Ø  TESOL/TEFL certifications Ø  Translation/interpretation certifications Ø  Actively courting several staffing agencies Ø  Social Work and Support Mechanism

The Word is Out…..

High Country News: Remote Work https://www.hcn.org/articles/state-of-change-in-rural-new-mexico-soloworks-learns-how-to-make-remote-work-work PBS: New Mexico In Focus – The State of Change https://www.newmexicopbs.org/productions/newmexicoinfocus/tag/soloworks/

7 Cities Productions https://youtu.be/r3h4EMZuM3s?t=1722

u Year 1: 35 u Year 2: 50 u Year 3: 60 u Year 4+: 70

Per Location

By the Numbers….. October 2016 – December 2017 Applied: 95 Intake: 52 Started training: 35 Finished/finishing training: 25 Placement: 12 Retained: 2

By the Numbers….. February 1 – June 30, 2018 Applied: 115 Intake: 52 Started training: 43 Finished/finishing training: 35 At placement: 15 Placed (FT): 5 Placed (PT): 5

Searching to Sustain…. ü  Past Funding Awards: NMFA 2016;

RBDG 2016, NMEDD 2016 & 2017 ü  Current Grant Applications Submitted for 2018:

USDA Rural Business Development Grant, PNM Resources New Mexico Gas Company Wal-Mart Continental Divide Electric Cooperative FMCS HHS

ü  2018 Grant Awards Received to date:

NMEDD SoloWorker Grant - $38,500 Homestake Mining Co. - $35,000

How Can You Help Create These Jobs?

What is the appropriation for?

u  Creation of 350 economic base jobs

u  Appropriation pays $3,500-5,000 post performance for every new economic base job created.

u  Continuation of 2017 programs: Grants, Las Vegas, Tucumcari and Las Cruces

u  Three or more new programs statewide

u  Programs end in July without this appropriation

What is the SoloWorks Model?

u  Over the last seven years the CELab, a 501c3 think tank, has been working on developing a practical and cost-effective approach to procuring solo economic base jobs.

u  SoloWorks is a job creation program that grows the state economy by procuring jobs that can be done remotely from home or a co-working space.

u  This is one of the few job creation programs that will work in NM’s rural communities.

u  First of its kind, pioneered in NM

 

Research Concept Plan Prototype

Minimum Viable Product

Mature

1

National Employer W2

2

Solopreneur

3

Entry-Level

4

Surrogate Corporate Platform

5

Out of State Soloworker Recruiting

5 Core Program Approaches

SoloWorks Center Model

How does the SoloWorks model work?

u  The program recruits and qualifies local residents who want to work full time remotely,

u  Trains them

u  Places them in jobs with one of 70 national employers participating in the program.

u  Once they have a job, they can work from home or in the center’s co-working space.

u  The program then helps them advance to higher paying jobs.

Program Users

SoloWorks Program

u  Cibola Communities EDF

u  Las Vegas San Miguel EDC

u  Tucumcari EDC

Community Developed Solopreneur model

u  GrowRaton

u  Mesilla Valley EDA

Problems with Fiscal Impact Report

u  This is a new program. There is no precedent for a Solowork or Solowork Centers program approach as an economic base job creation program in this state or any other.

u  The  Cibola  2016-­‐27  pilot  cannot  be  effec6vely  used  as  the  basis  for  the  state’s  FIR  

u  Even  if  the  FIR  correctly  es6mated  the  cost/performance  using  the  current  program  plans,  it  does  not  account  for  differences  between  the  JTIP  model  which  includes  matching  grant  awards  to  startup  applicants  and  the  new  program  funding  model  proposed  which  may  not  or  should  not  include  state  startup  funds.  

Program History

•  2012 CELab MRCOG Pilot •  Inspired Jobs Council to endorse a pilot for a solowork job

creation program prototype

•  2016 Legislature passed and Governor signed a bill for solowork pilot but did not fund it.

•  2016-2017 CELab/CCEDF Pilot •  CELab and a consortium of service providers bootsrapped a

six month pilot program in Cibola County using grant funds and community match in cash and in-kind.

•  12 new economic base Jobs Created over 5 months •  This inspired state legislature to fund a statewide program

•  2017-2018 Statewide NMEDD program •  State funding: $350,000 out of JTIP ($220,000 committed

but yet unspent)

q1 q2 q3 q4 q1 q2 q3 q4 q1 q2 q3 q4USDA  Cibola  PilotLas  VegasTucumcari

Program  end

Pre-­‐PlanningPlanning

2016 2017 2018

Operation  

HB177  passed  unanimously  in  both  houses

HB2  $1M made  available  from  JTIP

Contracts  signedwith  NMEDD

Communities  awarded  funds

Appropriation  for  FY19:  $1.5M  for  350  jobs

Program History (cont.)

LegendQ1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4 Pre-­‐planning

USDA  Cibola  Pilot StartupCibola  Program RampLas  Vegas  Program StabilizeTucumcari  Program

2016 2017 2018Program  History  Timeline

2016 Cibola Pilot Costs Cash   In  Kind   Total  

Startup      $                34,286      $                22,200      $        56,486    Facility    $                                  -­‐          $                60,000      $        60,000    OperaBon    $                40,687      $                    2,200      $        42,887    Program  development    $                20,214      $                29,109      $        49,322    Total    $                95,187      $          113,508      $    208,694    

$56,486

$60,000 $42,887

$49,322

2016 Cibola Pilot Cost Breakdown

Startup

Facility

Operation

Program development

$-

$50,000

$100,000

$150,000

$200,000

$250,000

Cash

In Kind

Return on Investment

u  NMEDD created 775 rural jobs in NM in FY17. Funding solowork on an annual basis is estimated to grow that number to 1,200 jobs per year within three years of the program’s existence.

u  The state historically has had difficulty creating e-base jobs in rural areas at a significant scale, NMEDD needs a rural solution

u  Programs using the SoloWorks model should be able to break even at 4 jobs per month, assuming an award of $3,500 per job post-performance.

u  The program is new and has limited historical data but has been proven to be able to create new e-base jobs in rural areas.

Solowork program compared to other state job creation programs

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

Cost per job breakdown Solowork

Lab partnership with small business tax credit

Technology jobs and R&D tax credit

High-wage jobs tax credit

NM Partnership

LEDA

JTIP

NMEDD

Retention

u  Program retention is currently at 33% (5 retained of 12 placements)

u  Target is 50% for at least one year

u  Area of focus for program development

Are the jobs high wage?

u  Starting wages for the program range from $9-12 per hour but, long-term, the program is designed to up-place workers to higher wage positions. Over half of those placed in the Grants pilot received raises within 3-6 months, 3 of whom were brought up to $15/hr.

u  Soloworkers avoid regular transportation expenses, allowing for them to sustain a higher standard of living on lower wages.

Projected Performance

FY19  SoloWorks  Center  Performance  Es6mates       2019  

FY19  Totals  

Q3  

Q4  

Q1  

Q2  

Jobs   Funds   Jobs   Funds   Jobs   Funds   Jobs   Funds   Jobs   Funds  

Cibola  Program   15    $    52,500     15    $    52,500     15    $    52,500     15    $    52,500     60    $                210,000    

Las  Vegas  Program   15    $    52,500     15    $    52,500     15    $    52,500     15    $    52,500     60    $                210,000    

Tucumcari  Program   10    $    35,000     10    $    35,000     15    $    52,500     15    $    52,500     50    $                175,000    

170    $                595,000    

Recommended rules for FY19 Appropriation

u  Any appropriation would need to include adequate funding for administration at NMEDD for this program

u  This program should not continue under JTIP but have its own statute and appropriation. The JTIP statutes are misaligned with this program model and JTIP staff do not have the time or resources to manage this program.

u  Funding for this program should continue to be post-performance per job created with a set amount allowed for starting up new programs as issued by NMEDD in FY17.

u  Committed funds should be non-reverting.