When it comes to investments in training and education, states have several streams of funding. Workforce training programs for organizations, investments in elementary and secondary schools, and investments in community college or higher education are all important to helping solve the skills gap problem. Workforce development funds, mainly provided by the federal government, are administered by state and local workforce development boards through federal and state policies. 

Most states that invest in workforce training programs administer the funds through the states’ department of labor, department of economic development, or a workforce development agency. Some state agencies also administer tax credits for the training investments organizations make. 

Talent development professionals in the United States should know how to find out about workforce training programs in the state where their organization does business. ATD’s Public Policy Council has updated a resource that provides information on each state’s workforce program. For those who work with organizations located in multiple states, it is wise to check out all of the programs available to employers. This is an important and often over-looked opportunity to supplement current training budgets with public funds to upskill an organization’s workforce. 

Here are three examples of states that run programs:

California

The Employment Training Panel (ETP) provides funding to employers to assist in upgrading the skills of their workers through training that leads to good paying, long-term jobs. The ETP was created in 1982 by the California State Legislature and is funded by California employers through a special payroll tax. The ETP is a funding agency, not a training agency. Businesses determine their own training needs and how to provide training. ETP staff is available to assist in applying for funds and other aspects of participation.

Florida

The Incumbent Worker Training (IWT) grants provide funding for customized training to existing for-profit businesses. Through this grant for example, Brevard County is able to effectively retain businesses and help them stay competitive by supporting skills-upgrade training for existing full-time employees.

IWT grants are structured to be flexible to meet the business’s training objectives. The business may use a public or private training provider, or may use an in-house training provider based on the nature of the training. Since its inception, IWT grants have helped provide customized training to more than 98,000 Floridians at more than 1,000 businesses throughout Florida.

Texas

The Skills Development Fund is Texas' premier job-training program providing training opportunities for Texas businesses and workers. Funding for the program is administered by the Texas Workforce Commission. Success is achieved through collaboration among businesses, public community and technical colleges, workforce development boards, and economic development partners.

The Skills Development Fund program assists businesses and trade unions by financing the design and implementation of customized job-training projects. This fund successfully merges business needs and local customized training opportunities into a winning formula to increase the skill levels and wages of the Texas workforce.

More Resources

Information for all 50 states is available on the ATD’s public policy page.

If you are interested in learning more about identifying public funding for training, consider registering for the upcoming Essentials Series program, Essentials of Identifying Public Funding for Training, which will guide you through the public workforce system and discuss federal and state grant opportunities.