Purpose of the Bill

The bill aims to support workforce development in Southeast Minnesota by providing financial assistance to a regional workforce organization. The goal is to address worker shortages, help families rise out of poverty, and support high-demand careers in Steele County and the surrounding areas.

Main Provisions

• The bill proposes the allocation of $275,000 for fiscal years 2026 and 2027, sourced from the workforce development fund.
• This funding will be granted to Workforce Development Inc. in Southeast Minnesota Workforce Development Area 8.
• The grant focuses on offering career planning, training, education wraparound support services, and job skills advancement to individuals facing employment barriers.
• The funds will be used for various program expenses such as hiring instructors, providing child care, covering course fees, transportation, housing, and offering incentive payments for training completion.
• Employers will receive outreach services to tackle workforce challenges and connect directly with workforce programs.
• Workforce Development Inc. is allowed to use up to 5% of the grant for administrative costs.
• The funding is a one-time appropriation, available until June 30, 2027, and any unspent funds can carry over to the next year.

Reporting Requirements

• By January 15 each year, the commissioner of employment and economic development must submit a report to the relevant legislative committees about the grant's usage, including administrative expenses.
• Workforce Development Inc. must provide any necessary information for these reports as a condition of receiving the grant.

Significant Changes

• Establishes a one-time grant specifically targeting workforce development for those with employment barriers in Southeast Minnesota.
• Requires annual reporting and accountability for the use of state funds to ensure transparency and effective use of the grant.

Relevant Terms

• Workforce development, career pathway training, employment barriers, economic development, job skills advancement, supportive services, administrative costs, employer outreach, grant funding.