Nearly $1 Million for the State’s Capital Region

Albany, NY (June 30, 2008) – State Labor Commissioner M. Patricia Smith today announced nearly $26 million in strategic investments across the state to help train workers and revitalize local economies. At a press conference with City of Schenectady Mayor Brian U. Stratton and members of the Schenectady County Legislature, the Commissioner touted these investments as targeted toward making our state competitive and keeping our workers right here in New York.

These investments include $550,000 to promote emerging and significant industries such as biotech and advanced manufacturing; $293,000 for meaningful internships to successfully transition youth to the world of work; and $138,600 in training grants awarded to businesses across the Capital Region to help them train their workers in this global economy.
“This funding is going to the places that need it most. By investing in our workforce with training and education, the entire state will be reaping the benefits for years to come,” said Governor Paterson. “During these tough fiscal times, we need to make smart investments. By reinforcing our deserved reputation as a state with a highly skilled workforce, we encourage business to come to New York and stay here.”

“With federal funding decreasing every year, we need to be smarter with the funding that we do have for worker training,” said Commissioner Smith. “It is paramount, especially in the face of rising gas and food costs, that New Yorkers have the knowledge and expertise to help our state succeed in this age of global competition, which is what these targeted investments in our workers aim to accomplish.”

Congressman Michael McNulty said, “We need to be innovative in our approaches to keeping people living and working right here in New York, which is why these grants are so important. I applaud the Labor Department’s efforts to help this area’s working families.”

City of Schenectady Mayor Brian U. Stratton said, “An investment in Schenectady’s workers is an investment in our city’s future. We need to make every effort to ensure our city retains and attracts the best talent New York has to offer, and this ‘brain gain’ initiative will help us do just that.”

Susan E. Savage, Chairwoman of the Schenectady County Legislature said, “I want to thank Governor Paterson and Labor Commissioner Smith for making this investment in the State’s workforce. We have been able to attract over 3,000 new jobs to Schenectady County over the past four years but there is more to be done. If we are going to compete in the global economy, we need to work together to retain and expand our talented workforce and ensure they have the knowledge and skills that employers are seeking.”

Commissioner Smith also announced the return of the Department of Labor to Schenectady County. In 2004, the Labor Department relocated staff from Schenectady to other locations across the Capital Region. Following the transfer of the One-Stop Career Center from State Street to a new site, the Department of Labor will be relocating staff back to Schenectady in early 2009.

Commissioner Smith added, “We anticipate that the Labor Department will be a part of Schenectady for many years to come.”

The investments being made in the Capital Region, coupled with the Department of Labor’s return to Schenectady, are part of a series of measures the Department of Labor is taking to combat rising unemployment rates and the continuing erosion of federal funding for worker training.

New York State’s unemployment rate just experienced its largest over-the-month increase since January 1991, from 4.7 percent in April to 5.2 percent in May (seasonally adjusted). Despite these alarming statistics, Commissioner Smith cautioned that funding for worker training in this global economy has not taken precedence at the federal level in recent years.

Over the past eight years, New York State has witnessed a systematic disinvestment in its workforce development system. Since 2000, funding under the Federal Workforce Investment Act (WIA) has dramatically declined in New York State, from nearly $305 million in 2000 to $136 million in the 2009 Federal Year Budget. To put it in perspective, 30 years ago, in 1978, the federal government spent $9.5 billion on job training nationwide. Adjusting for inflation, $30 billion would need to be spent today to provide the same level of funding. Instead, national funding for the Workforce Investment Act programs is currently only $3.3 billion.

Commissioner Smith said, “Our counterparts in the Bush Administration should be doing all that they can to make sure workers in states like New York are competing on a global level. Instead, the global economy is passing many of our workers by, including some who desperately need training to make themselves more employable. As the Bush Administration continues to turn a deaf ear, it is the working men and women who will continue to pay the ultimate price.”

Over the next few weeks, Commissioner Smith will be visiting the Capital Region, the Southern Tier, the North Country, Long Island and Western New York to tout the strategic investments made in workers in these regions; tour businesses training workers in emerging technologies; meet with economic development officials; and listen to the concerns of businesses, workers and our workforce partners in local areas.

Targeted investments statewide are as follows:<br><br>

• AdvanceNY – A grant program that provides funds to businesses to train workers in specific skills needed by an industry and lead to career growth and higher wages – nearly $6.2 million.
• Assistance to Health Care workers – In response to the December 2006 release of the Berger Commission report on the consolidation of the health care industry and the layoffs that occurred, DOL responded by awarding grants to health care associations to provide job placement services, career counseling and training to health care workers – more than $8.8 million.
• Chamber of Commerce Program – Provides funds to regional Chambers of Commerce to provide on the job training for workers – $700,000.
• Internships – Aimed at providing youth with a rewarding orientation to the world of work – $2 million.
• Limited English Proficiency program – Provides grants to chambers of commerce and organizations to conduct bilingual education classes – $1.96 million.
• Association of Counties Workforce Intelligence Project – Provides local policy makers with the tools they need to better direct the economic future of their regions. The project’s pilot initiative was in the Southern Tier. They are now focusing on the Capital Region and hope to create a template for use in the rest of the state – $478,000.
• Regional Emerging Industries Grants – An initiative by the Governor to help regions (31 upstate counties) reinvent and transform their economies by attracting skilled workers, training workers for the jobs of tomorrow and keeping skilled workers in New York State – $6 million.