Governor Holcomb’s Workforce Development Plan Could Cost Indiana $49 Million

Governor Eric Holcomb 

Tony Cook and Arika Herron over at IndyStar reported earlier today that the Indiana Manufacturers Association normally a Holcomb ally. Has yanked it’s support from Holcomb’s plan to reshape the state’s Workforce Development programs. 

Cook and Herron writing:

Holcomb's office publicly acknowledged for the first time Monday that the state will need a waiver from the U.S. Department of Labor to continue receiving $49 million in federal funding for Indiana workforce development programs.

"We do not have a federal waiver at this point," Holcomb's spokeswoman, Stephanie Wilson, said. "However, Gov. Holcomb and his team have been in communication with the federal Department of Labor and Secretary (Alexander) Acosta, and we believe our actions are in line with the secretary’s pledge to provide states flexibility to do what’s right."

The Indiana Manufacturers Association announced Monday it was withdrawing its support for Holcomb's proposal. Association President Brian Burton said he considers the potential loss of federal funding a critical flaw.

"This bill becomes law effective upon passage," he said. "So without a waiver, we could be in violation of federal law."

Cook and Herron make reference to the specific legislation that is the source of such tension between legislators and many business leaders throughout Indiana SB 50:

Senate Bill 50 replaces the state's Workforce Innovation Council with a new Governor's Workforce Cabinet that would have fewer members and more authority over the nine state agencies that administer about $1 billion in various workforce development programs.

But the new cabinet would not conform with federal rules for states' workforce investment boards, the governor's office confirmed Monday.

The Workforce Innovation and Opportunity Act requires a majority of the board to be business representatives who reflect the state’s major employment sectors. It also requires two members from each chamber of the state legislature.

Holcomb's proposal would not include any state lawmakers and just under half would be actual business representatives. The majority of the board will be filled with state agency and education officials, with one member from a community-based organization.

States that don't meet federal requirements are at risk of losing their funding. Indiana receives about $49 million a year through the federal program. That money goes to programs that support out-of-work adults and at-risk youth, including WorkOne, the state’s employment centers.

Click here to read all of Cook and Herron’s excellent piece.

IR and Company are all wondering why Holcomb would want to antagonize the Indiana Manufacturers Association during what is shaping up to be a really bad year for Republicans. The IMA if they get mad enough could and should do everything they can to make Holcomb’s life hell. Back in November we reported on Holcomb’s administration being sued for $1 Billion over trucking fees by powerhouse GOP lawyer Jim Bopp.

Tony Cook also reported on that in November. Between pissing off the state’s Manufacturing, Trucking Industries and everyday Hoosiers by signing into law last year over 45 tax and user fee hikes. Holcomb should be run out of town on a rail. That may or may not happen but let’s all do what we can to kick Holcomb’s ass out in 2020. Barring that we make his life hell. Let’s do this for Gary Welsh. 

Update: Hayleigh Colombo has also written a good piece about the IMA’s opposition to Holcomb’s Workforce Development plan click here to read her article. And please reach out and tell Tony Cook, Arika Herron and Hayleigh Colombo to keep up the good work.