uition reimbursement programs enable companies to target an area that Washington
often overlooks—training for people who already have jobs.
Legislation that addresses the unemployed or future workers—like
education policy—tends to spur congressional action.
The tide may be turning slightly with the introduction of
measures in the Senate and House that would fund training in a way similar to how
401(k) accounts finance retirement. The bills would set up "lifelong learning account"
demonstration projects for up to 200,000 workers in up to 10 states.
Participants can earn a refundable tax credit for annual contributions
up to $500 into the plan. Employers receive favorable tax treatment for matching
up to $500. A third party, like a foundation, also can contribute.
The lifelong learning account funds can be used to pay for
tuition, fees, books and supplies. Career counseling is available. The funds also
are portable from job to job.
Amy Sherman, associate vice president of the Council for Adult
and Experiential Learning, says that working adults find little support for going
back to school, unlike the efforts made on behalf of the unemployed.
"We don’t see the same kind of investment in incumbent workers,"
she says.
In writing the House version of the bill, Rep. Tom Allen,
D-Maine, is responding to people in his district who have a job but are afraid of
losing it because of global economic competition.
"This is a world that causes a lot of anxiety for my constituents,"
he says. "The way to compensate for that risk is to increase the security in their
own skills."
A workforce official in Allen’s state says the learning funds
can be used to leverage development efforts at federal one-stop employment centers.
That system lacks the money to adequately fund its infrastructure, let alone job
training.
"This is about financing the future," says John Dorrer, division
director in the Maine Department of Labor. "We have a moral, ethical and economic
obligation to make this happen."
In some areas of the country, the accounts already are a reality.
In advance of national legislation, demonstration projects were established in different
economic sectors—manufacturing in northeast Indiana, restaurants in Chicago and
health care in San Francisco.
At the University of California San Francisco Medical Center,
35 employees set up lifelong learning accounts. Each worked at least 20 hours weekly
and made less than $60,000.
They used the educational assistance to gain credentials to
move up to jobs like medical technician, lab assistant and registered nurse.
One of the reasons the accounts work is because employees
have to invest in themselves, says Jennifer Hermann, director of workforce planning
at the facility.
"When employees contribute a little bit of their own money,
they tend to follow through [and] finish the program," she says.
Participants also appreciate that they’re getting help from
their employer to develop their skills.
"The employees came to me and said, ‘Thank you. It shows you
care about us,’ " Hermann says. "That’s going to give us employee engagement in
the future."
Workforce Management Online, December 2007 -- Register Now!
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