Workforce Advancement Training Grants

The Joint Committee on Finance – the Legislature’s powerful budget writing committee – voted on Wednesday, May 2 on the WTCS portion of the 2007-09 state budget.

The main item before the Committee was the Governor’s Workforce Advancement Training Grant program – a targeted workforce development tool aimed at increasing the skills and productivity of incumbent workers.

In his 2007-09 budget proposal, the Governor proposed increasing funding for the grant program by $6 million over the biennium.

However, after several hours of negotiations, the finance committee voted 15-1 to increase funding by a total of only $3 million. Senator John Lehman (D-Racine) voted “no.” Under the approved proposal, total grant funding would increase to $2 million in 2007-08 and $3 million in 2008-09.

In an attempt to increase grant resources available to small business, the Committee placed a number of restrictions on how the new training money can be used.  Half of the new funding - $500,000 in 2007-08 and $1 million in 2008-09 – must be set-aside for businesses with less than 100 employees and no more than $10 million in annual income.

Applicants seeking grants from this small business “set-aside” can receive grants of only up to $20,000 and must agree to provide full matching funds. 

Businesses seeking money from the general pool of grant resources must only provide a 25% private match and can receive grants of up to $75,000. 

Ironically, the actions taken by the Joint Committee on Finance will likely make it more difficult for small businesses to receive grants. Small businesses must meet more burdensome requirements (e.g. the 100% match) than other grant applicants.

Earmark for NTC

In addition to cutting the Governor’s training grant proposal, the Committee voted 16-0 to carve out $194,000 from the WTCS Incentive Grant program and redirected it to fund the startup of a dairy science program at Northcentral Technical College. Several other so-called “earmarks” involving items such as nanotechnology and bio-diesel fuel were discussed but ultimately never introduced as motions.

Property Tax Freeze

On Thursday, May 3, the Committee considered a motion by Rep. Robin Vos (R-Racine) to cap the property tax levies of local government units, including technical colleges. Under the motion, technical colleges would have been prohibited from increasing their levies by more than the 5-year average statewide percent increase in statewide equalized property value due to new construction. The motion was defeated on an 8 to 8 party line vote. However, it is expected that some form of Rep. Vos’ motion will appear in the Assembly version of the budget, meaning that the issue will ultimately be negotiated in conference committee, the body that will reconcile Senate and Assembly versions of the state budget.

Sen. Bob Jauch (D-Poplar) called the Vos plan "a political witch's brew concocted in offices in Madison that defy common sense."

"It is completely illogical to impose that economic absurdity on local governments that are meeting the needs of their citizens," he said.

General State Aid

Neither the Governor, nor the Joint Committee on Finance have proposed increasing general state aid to the technical colleges. A motion to remove $3 million from the training grant program and place it in general state aid was discussed informally, but never materialized.

Related Items

Two WTCS-related budget items have yet to be scheduled. At some point, the Committee will discuss funding for the Wisconsin Higher Education Grants (WHEG) and the veterans’ tuition remission program. WEAC supports increasing funding for the WHEG program and backfilling 100% of the revenue lost due to the veterans’ tuition remission.