April 14, 2004
SUBJECT: Authorization for NOVA to Submit Concept Papers to the Bay Area Workforce Funding Collaborative for Healthcare Sector Funding in an Amount of up to $1 Million
REPORT IN BRIEF
The Bay Area Workforce Funding Collaboration has announced the availability of $1 million in grant funds to improve upward mobility and economic security of low-income individuals and families seeking initial employment or advancement in the healthcare sector, build career ladders in this sector, and strengthen the capacity of Bay Area companies and workforce boards in this sector to deliver quality services and operate competitive businesses. Grants will be made to sectoral workforce partnerships in healthcare for up to a two-year period.
NOVA has developed concept papers in the areas of increasing the education and training capacity for allied health professions, building the pipeline for allied health professions, and regional systems building to link businesses with healthcare professionals. Partnering organizations are the Hospital Council of Northern and Central California, the workforce boards of San Mateo and San Jose, plus community colleges and hospitals in Santa Clara and San Mateo counties.
Staff recommends that the Sunnyvale City Council, on behalf of the seven-city NOVA consortium, concur with the NOVA Workforce Board and authorize NOVA’s submission up to five concept papers for up to $1 million of Bay Area Workforce Funding Collaborative Grant funds.
BACKGROUND
The Bay Area Workforce Funding Collaborative is a public/private financing mechanism designed to invest in sectoral efforts across ten Bay Area counties. The Collaborative was established in 2003 to leverage increased financing from public and private sources for workforce development, to finance the services most needed by Bay Area employers in a demand-driven system, to stimulate regional planning and cooperation among workforce boards, nonprofit employment training providers, community colleges, labor, and other players in the region, and to increase the skills of low-income residents, immigrants, dislocated workers, and others for vital industry sectors in which they can gain family-sustaining jobs. The Employment Development Department is providing an initial $1 million of Workforce Investment Act (WIA) funds for the first of a two-year $2 million demonstration project that provides support for sectoral workforce initiatives aimed at two key industries in the greater Bay Area region: healthcare and life sciences. WIA provides a system in which multiple programs and agencies that assist people with obtaining and retaining employment are accessible to the customer in a One-Stop environment. The first sector being targeted is healthcare, specifically allied healthcare occupations. It is intended that these funds will be used to seed part of a co-investment fund for workforce development in this sector. The source of funding is WIA funds reserved for Governor’s discretionary projects, which is to be matched by private foundations in the Bay Area along with a commitment of funding/resources from local workforce investment partners.
The allied health component of the healthcare industry is an area of great need for the Bay Area. “Allied healthcare” includes such professions as diagnostic imaging technicians, medical laboratory personnel, medical assistants, and various new or emerging healthcare industry occupational classifications. The allied health occupations also represent significant economic opportunity for job seekers as strong growth in the healthcare sector continues. Further, the dynamic nature of the industry, new legislation, and cost-containment pressures are driving provider organizations to seek the most efficient mix of occupational skills and promotional ladders in response to changing circumstances.
In 2003, Bay Area Works performed a gaps analysis of allied health positions, using data from EDD projections and surveys of Bay Area training providers. Eleven “hard-to-fill” positions identified by the group were studied, and data was gathered to determine the estimated annual gap between projected supply and demand. They projected the gap to be anywhere from 17-180 workers for the next 3 years, depending on the position. It is believed that limited training capacity, high rates of attrition and the high cost of living in the Bay Area are contributing factors to gaps between supply and demand. A follow-up survey of Bay Area hospitals confirmed the EDD projections and anecdotal data. Hospitals indicated great difficulty hiring for most of the eleven identified positions and reported using a high number of traveling professionals in these identified positions. The positions most in demand included pharmacists, diagnostic imaging professionals, and clinical laboratory workers.
Nursing, while also a concern, is not a focus of this grant, and NOVA is currently administering the Nurses Workforce Initiative grant to address the nursing shortage.
EXISTING POLICY
The proposed activities are consistent with the City of Sunnyvale's Socio-Economic Goal 5.1F: Provide job training and employment services within constraints of operative, federal regulations and available federal funding, to address the locally-determined employment and training needs of economically disadvantaged residents and others with special needs.
DISCUSSION
Two of the proposed concepts are designed to expand the services available at the CONNECT! Job Seeker Center and to develop a strategy to more effectively coordinate services currently available from partner organizations. One concept would provide funding for a Healthcare Navigator that would be located in the one-stops in San Mateo and Santa Clara counties. Job seekers expressing interest in the healthcare industry will be directed to this Navigator, who will be well versed in available training programs, financial aid programs, and workforce opportunities. The Navigator will serve as a one-stop resource for clients interested in the healthcare field. Another concept would provide funding for a localized healthcare registry, designed to more effectively link businesses with healthcare professionals. The Job Seeker Center would act as a clearinghouse for recruiting an applicant pool for all area hospitals. Dedicated staff will serve as liaisons between hospital human resource departments and educational institutions.
Other concepts to be submitted include working with community colleges in San Mateo and Santa Clara counties to increase the capacity for adult training in allied health, and providing content-specific classes for disadvantaged non-native speaking health technology students and incumbent workers. The NOVA Workforce Board approved submission of these concept papers at its meeting of March 24, 2004.
Fiscal Impact
There will be no fiscal impact to the City because funds received will offset program expenditures.
PUBLIC CONTACT
1. Public contact was made through posting of the Council agenda on the City's official notice bulletin board, posting of the agenda and report on the City's web page and the availability of the report in the Library and City Clerk's Office.
ALTERNATIVES
1. Council approves submission of up to five concept papers to the Bay Area Workforce Funding Collaborative for healthcare sector funding.
2. Council rejects submission of the concept papers to the Bay Area Workforce Funding Collaborative.
3. Other action as determined by Council.
RECOMMENDATION
It is recommended by staff that the Sunnyvale City Council, on behalf of the NOVA seven-city consortium, concur with the NOVA Workforce Board and adopt Alternative 1: Council approves the submission of up to five concept papers to the Bay Area Workforce Funding Collaborative for healthcare sector funding for up to $1 million. It is further recommended that should the funds be awarded, Council authorizes acceptance and that the City Manager or his designee be authorized to execute the necessary grant agreement.
Prepared By:
Kari Matsumoto
Employment Training Program Coordinator
Department of Employment Development
Reviewed By:
Jeanette Langdell
Employment Training Manager
Department of Employment Development
Reviewed By:
Michael J. Curran, Director
Department of Employment Development
Approved by:
Amy Chan
City Manager