Evers announces $130 million in American Rescue Plan funding for workforce development initiatives
MADISON - Gov. Tony Evers joined local and state economic leaders in Green Bay Wednesday to announce that he will direct $130 million in federal funding toward workforce development programs.
The funds, which come from the state's American Rescue Plan Act allocation, will be spread across three programs that will to help regions find solutions to workforce challenges and help unemployed or underemployed workers find job opportunities.
The Democratic governor said there is "no one-size-fits all-solution" to workforce challenges.
"I've heard from many Wisconsin business owners, employers, out-of-work job seekers that while employment in Wisconsin continues to grow, our economy is facing obviously a workforce shortage. A shortage that existed well before I became governor, but has been made worse obviously by this pandemic," Evers said.
Wisconsin's unemployment rate in May 2021 — the most recent month reported by the state — was 3.9%, tied for the 10th lowest in the country, according to the U.S. Bureau of Labor Statistics.
The largest block of funding will provide grants to at least 10 local and regional entities with about $10 million each to help meet needs including child care, transportation and housing. Evers said that funding would go out sometime in the fall to give regions time to develop proposals.
"What's really exciting about this is the collaboration that we're going to see around the state as groups come together and think about what each region needs or what each locality or community needs when it comes to workforce," Wisconsin Economic Development Corporation Secretary Missy Hughes said. "It makes sense that what you're experiencing here in Green Bay is different than what's happing in Milwaukee, is different than what's happening in La Crosse."
Funding will also go toward work and training opportunities and career coaches. Workforce Development Secretary Amy Pechacek said the programs would help workers learn the skills that employers are looking for.
"They offer targeted responses to the major issues facing our state's workforce as a result of the pandemic," Pechacek said.
gener8tor Upskilling, a digital skills training program that has graduated 162 people, said the investment will "ensure our state invests in our residents’ continuous learning required for jobs of today and tomorrow."
Kung Lee, an intern at Heartland Business Solutions, shared how his apprenticeship has helped him. Programs like the one Lee participates in could get a boost from the funding.
"It's been an amazing experience to try to learn and what it's like to actually work and have this kind of experience," Lee said.
Worker shortages are apparent across the state. Republicans who control the state Legislature and the state's largest business lobbying group have called for an end to additional unemployment benefits that are set to expire in September. Evers vetoed a bill that would have ended the state's participation in the expanded payments.
Republican leaders said Evers' plan "predictably chose a path that spends more money, takes more time, and grows government."
"This continues Governor Evers’ long pattern of failed leadership in managing Wisconsin’s unemployment challenges — first for displaced workers throughout 2020 and now desperate employers struggling to find willing workers," Assembly Speaker Robin Vos and Senate Majority Leader Devin LeMahieu said.
WMC issued a statement Wednesday repeating its call for Evers to end the additional benefits. They also asked Evers to expand funding for a statewide talent attraction campaign and target funding toward STEM programs.
“Wisconsin’s business community appreciates that the governor has acknowledged our state has a workforce shortage,” WMC President and CEO Kurt Bauer said. “But, Gov. Evers must also understand that this disjointed plan will spend a lot of federal funds without solving our short- and long-term challenges.”
Democrats have argued that other obstacles are keeping people from re-entering the workforce, including child care availability.
Jeff Bollier of the USA TODAY NETWORK-Wisconsin contributed from Green Bay.