Michigan Community College Association Professional
Development: Pay-As-You-Go-Model May 2010 Michigan New Jobs
Training Program
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Introduction Trainers Daniel Phelan, President, Jackson
Community College Eric Williams, Executive Director of Economic
Development, Grand Rapids Community College Sharon Miller, Dean of
Economic and Workforce Development, Oakland Community College
Agenda Pay-As-You-Go Program Mechanics Case: Grand Rapids Community
College Packaging & Marketing
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Pay-As-You-Go Program Mechanics DAN PHELAN
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Operational Considerations Essentially three major phases to a
MNJTP: Initial Communications/Verification, Preliminary Agreement
and Final Agreement; Contractual agreements (other than pay-as-you
go) are a contingent liability to the College; While only the final
agreement requires board authorization, be sure to determine what
your board requirements might be beyond the law; Go slowly on your
first agreement and over-communicate with the board, and keep MCCA
in the loop; and Consider setting aside institutional
administrative allowance.
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Project Sizing Determine, in advance, your institutions (i.e.,
Boards) level of risk comfort how conservative are you? Key data
points: Number of net new jobs Wage rate per job Number of
exemptions or average exemption rate Number of years of the
agreement Consideration of a wage escalator Lending Interest rates
PAYG Option Other
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Project Sizing Recommend the use of a project template for each
project Current draft model Use resultant data to drive financial
instrumentation selection Fund balance Loan Bond PAYG Prepare
repayment schedule with lender or develop one internally
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Project Tracking Core Template elements: Track jobs by tracking
the individual reconcile monthly Track payments by the employer
reconcile monthly Establish defined and budgeted training plan in
advance reconcile expenses monthly Obtain payroll registers from
the employer each month
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Project Template Demonstration of template draft
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Lessons Learned: Grand Rapids Community College ERIC
WILLIAMS
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Sizing Project
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Financing Options & Pay-As-You-Go
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Due Diligence & Contract
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Administrative Processes
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Packaging & Marketing SHARON MILLER
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Marketing New Customized Materials Brochures & Forms
Relationship Building Paradigm shift explain it repeatedly
Schmoozing economic developers Michigan Works Company visits have
increased tenfold in the last 60 days
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Bundling Attraction Packets and Commitment Letters True
partnering with economic development Joint proposals (sample) Built
on the staff investment chart from MEGA The BSP Model Oakland
County Business Service Team Creating work for the futurewere going
to be really busy in two year
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Company Visits New customized materials Most common
misunderstandings: OJT is not an option Only the new hires not the
incumbents can be trained Allowable training expenses: Equipment
Purchases Stick to the basics on a first visit and have the right
people attend: Finance/HR/Training
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Administrative Fee Components New Customized Materials Be
prepared to explain it Dont forget the expense of creating the
legislation You can view us as a check book or a valued partner
serving as your training department
