SF5292

Purpose

• Expand and clarify how workforce development funds are disbursed and when outside (non-MSCU) providers can receive funding. The bill aims to better align funding with current and emerging workforce needs, and to ensure a path for using outside programming if internal state college/university options are insufficient or required by law.

Main provisions

• Subdivision 2a added to 116L.05 (annual recommendations)

  • The Jobs Skills Partnership Board must annually recommend to the Board of Trustees of the Minnesota State Colleges and Universities (MSU system) about workforce development program needs.
  • In making recommendations, the Board must first consider whether programming can be operated through the MSU system or by existing employers.
  • If the MSU Board agrees there is a need for outside programming that cannot be met within the MSU system (due to legal requirements or an emerging workforce need), then the workforce development funds may be awarded to non-MSCU entities.

• Subdivision 2 added to 116L.20 (disbursement of special assessment funds)

  • Money collected under this section goes into the state treasury and is credited to the workforce development fund, a special account.
  • All money not otherwise appropriated is appropriated to the Job Skills Partnership Board for purposes of section 116L.17, with the Board acting as fiscal agent and disbursing funds for those purposes.
  • Funds must not be used for other obligations of the MSU Board of Trustees; they must be used to provide workforce development programming that creates a highly skilled and adaptable workforce.
  • The fund is administered and disbursed in the same way as other state treasury special accounts, but interest or net income from investing the fund accrues to the fund itself.
  • Reimbursement for costs related to collecting the special assessment is negotiated between the commissioner and the U.S. Department of Labor.
  • The Board must disburse money for the purposes of section 116L.17. If conditions in 116L.05 subdivision 5 are met, the Board may also use funds for purposes in 116L.04 or for incumbent worker training under 116L.18.

Significant changes to existing law

• Creates a new requirement for annual recommendations to the MSU Board of Trustees about whether to use internal MSU programs or outside providers to meet workforce needs.
• Explicitly authorizes (under defined conditions) funding of outside providers (non-MSCU entities) with workforce development funds.
• Reorganizes how the workforce development funds are held, tracked, and disbursed (as a special treasury account with the Job Skills Partnership Board as fiscal agent, and with interest accruing to the fund).
• Ties funding decisions to other sections (116L.17, 116L.04, 116L.18) and to conditions in 116L.05, potentially broadening or shifting the use of funds to include incumbent worker training.

Funding and governance implications

• Greater flexibility to partner with non-MSCU entities to meet workforce needs when internal programs are insufficient.
• Enhanced role for the Jobs Skills Partnership Board in determining both annual needs and disbursement decisions.
• The MSU system’s Board of Trustees retains oversight but may authorize outside programming if justified.
• Funds are treated as a dedicated, interest-bearing treasury account with a clear fiscal agent (the Job Skills Partnership Board), and are earmarked for employment and training programs.

Relevant Terms - Jobs Skills Partnership Board - Board of Trustees of the Minnesota State Colleges and Universities - Minnesota State Colleges and Universities system (MSU system) - outside programming / non-MSCU entities - workforce development funds - 116L.05 subdivision, 116L.20 subdivision 2, 116L.17, 116L.04, 116L.18 - 116L.05 Subd. 5 - special assessment funds - workforce development fund - state treasury - fiscal agent - United States Department of Labor (DOL) - interest or net income - incumbent worker training