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ECONOMIC DEVELOPMENT & BUSINESS RETENTION COMMITTEE

Minutes, May 14, 2002

Committee Members Present: Chair Scott Mendenhall, Webb Brown, Jim Davison, Diane Ruff  Committee Members Absent: Becky Erickson  Ad Hoc Members Present: Sheila Matt  Staff Present: Desiree Taggart, Emily Haines  Guests Present: Leighanne Fogerty, Sue Mohr, Bob Rafferty, Dave Morey, Kelly Chapman, Ingrid Childress

I. Roll Call - Chair Scott Mendenhall called the meeting to order at 10:41 AM. Role call was taken and a quorum was established.

II. Review and Approval Minutes - Moved and seconded to approve the minutes of the 4/8/02 meeting.

III. Update of Goals/Duties & Tasks of Committee - Chair Scott Mendenhall invited the committee to review committee goals and make suggestions on changes.  Webb Brown suggested that duty bullet four be amended to read "Collaborate with the Economic Development Action Group and others to build a common strategy on workforce solutions."

Chair Scott Mendenhall read each duty bullet and asked for input on how to achieve the respective duty. Decisions/ major discussions were as follows:

• 1)  Jim Davison suggested that the Research and Analysis Bureau consider forecasting for future industry and labor availability problems to allow for a more systemic and long-term approach to workforce development.  Bob Rafferty, Research and Analysis Bureau Chief, explained that short-term forecasting models will be available in 2002 and long-term projections will be coming out in November. He invited committee members to visit the Research and Analysis web site at: http://rad.dli.state.mt.us/ to view county profiles.  The committee asked Desiree to arrange for Bob to present on county profiles and forecasting efforts at a future meeting.
• 2)  Jim Davison suggested that the committee find a way to prioritize training dollars based on long-term forecasting.  Diane Ruff explained that providing clarification for employers on laws and employer/employee issues would greatly assist companies to stay open and in Montana.  Webb Brown added that the resources for informing companies are available, but coordination needs to be done to facilitate the actual delivery.  The committee asked Desiree to coordinate these efforts through the Economic Opportunity Office.
• 3)  The committee asked that Desiree invite people from the education community to upcoming meetings in an effort to gain knowledge regarding how and what information is provided to students on Montana industry.
• 4)  Clustering efforts with the Department of Labor and Industry, Research analysis forecasting efforts were discussed.  The committee asked Desiree to arrange for David Gibson to give a presentation on clustering at a future meeting.  Chair Scott Mendenhall mentioned that he and Jim Davison have been involved in the completion of a cluster analysis for their respective counties. Jim will bring some information on the cluster analysis to the next meeting.
• 5)  Sheila Matt explained that some reservations have completed surveys to find out what area businesses needed and have specifically recruited people from technical schools and outlying areas for those jobs.

Based on an inquiry by Chair Scott Mendenhall, Desiree informed the committee that policy recommendations for legislation, need to be presented to the Governor no later than October 30, 2002.  She also stated that Carol Donaldson from the Economic Development Action Group would be attending the full board meeting in July to provide information to the board on EDAG's efforts.

IV. Workforce 20/20 funding status - Desiree Taggart explained that the Economic Opportunity Office has identified two funding streams to take the Workforce 20/20 Project statewide. They have applied for the funding but have not yet received a response. Desiree will keep the committee updated.  Per the committee's request Desiree will provide the Kalispell survey to the committee for information purposes.  Webb Brown explained that it is not yet certain how the Chambers will be selected for participation.  The committee decided no action was required at this point but requested that Webb and Desiree keep them informed on the project.  Webb will bring any issues regarding proposed policy changes to the committee.

V. Labor Availability Studies - The committee reviewed information provided by Desiree regarding South Carolina's labor market studies.

Decisions/Major Discussion Items:  The Research and Analysis Bureau in the Department of Labor and Industry currently gather statewide labor market information.

• Cost:  Desiree explained there is now an additional $29,000 to help fund the study

Chair Scott Mendenhall stated he disagreed with paying $19,700 for University of Montana Indirect Costs (20% of TDC).

• Formula:  Since state and federal money will be used to fund the labor availability study the information gained should be publicly available.
• Training:  The committee asked Desiree to coordinate training conducted by Bob Rafferty and/or Paul Polzin for the following groups:  MEDA ; Regional Certified Communities Groups; the One Stop Conferences;  Montana-Wyoming Tribal Conference

Webb Brown will work on distributing the information to the employmer associations across the state through the Camber of Commerce.  Desiree was asked to contact the electric co-ops, possibly PPL, to request support.

VI. Layoff Aversion Strategies - Ingrid Childress, Administrator of Workforce Services Division, explained that the state Dislocated Worker Unit is run in her division. She explained one of the downfalls as the inability to help struggling companies prior to closing or a layoff. She suggested that if the information was available ahead of time to a company was struggling, something might be done to help divert the layoff or closure. Ingrid briefed the committee on current activities in Montana including the Rapid Response program.  Desiree Taggart shared information on what other states are currently doing.

Decisions/Major Discussions:

Concern was voiced over who and how the information would be gathered from employers and how it would be handled.  Webb Brown voiced concern over expending any Dislocated Worker funds given the recent cuts.  Jim Davison made a motion to task the existing Dislocated Worker Work Group with:

1. Monitoring other states and providing case studies:

a. Does it work?

b. How has it been utilized?

c. How has it performed?

d. Who are the partners?

e. What money was expended?

f. What strategies and methods have they implemented to gain the prior knowledge of the layoff or closure?

g. What were the business needs?

2. Utilize any information from the Montana Ambassadors business retention  survey that is applicable.

The motion was seconded and passed.

VII. Position Paper - Desiree Taggart explained that the position paper outline provided on a state funded workforce training program was intended to be a starting place for a recommendation to the Governor.  Webb stated he is not in favor of pursuing an Unemployment Insurance funded program.  The committee tasked Desiree Taggart with:

1. To report at the next meeting on how five other states that are doing a tax increment funded training program, are fairing.

a. When did it go in to affect?

b. What is the outcome?

c. What kind of parameters have other states used?

2. What would the tax increment have earned in the last five years in Montana?

3. What dollar amount is needed for seed money?

4. When would the seed money be reimbursed?

VIII. Public Comment - Sue Mohr, Montana Job Training Incorporated, invited committee members to the Balance of State board meeting at the Best Western Colonial in Helena on May 15^th and 16^th, the new member orientation currently taking place and icebreaker this evening.

IX. Next meeting date -

June 19, 2002 - Desiree will provide the committee with an electronic version of the workforce training funding position paper prior to June 19, 2002.

June 24, 2002 - Desiree will arrange for a conference call to be held on June 24, 2002 at 10:30 A.M.

July 16, 2002 - Full board meeting.

September 5, 2002 - Committee meeting from 9:30 AM to 4:00 P.M.

X. Adjournment - Meeting adjourned at 2:44 P.M.