Call to Order and Roll Call
The 2nd meeting of the Budget Review Subcommittee on Economic Development and Tourism, Natural Resources and Environmental Protection of the Interim Joint Committee on Appropriations and Revenue was held on Monday, August 1, 2016, at<MeetTime> 10:00 AM, in Room 149 of the Capitol Annex. Representative Jeffery Donohue, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Representative Jeffery Donohue, Co-Chair; Senators Perry B. Clark, and Max Wise; Representatives Terry Mills, Marie Rader, Dean Schamore, John Short, and Susan Westrom.
Guests: Secretary Derrick Ramsey, Labor Cabinet; Deputy Secretary Mike Nemes, Labor Cabinet; Commissioner Ervin Dimeny, Department of Workplace Standards, Labor Cabinet; and Deputy Commissioner Mike Donta, Department of Workplace Standards, Labor Cabinet.
LRC Staff: Joe Lancaster, Raymont Griffith, Greg Troutman, and Jay Jacobs.
Labor Cabinet - Apprenticeship Program
Secretary Derrick Ramsey of the Labor Cabinet presented an update on the apprenticeship program being implemented throughout the state. Secretary Ramsey feels that the apprenticeship program is perfect for Kentucky. It Labor Cabinet priority.
In response to a question from Senator Clark, Secretary Ramsey stated that the cabinet is working with Secretary Tilley to establish an apprenticeship program for incarcerated inmates.
Deputy Secretary Nemes stated that the Labor Cabinet is partnering with a lot of people who are advising that skills are lacking in Kentucky. The Labor Cabinet will be working with existing companies, expanding companies, and companies coming into Kentucky to help train their workforces. The goal is to ensure that there is a trained workforce for a company that wants to come to Kentucky. The money that came from the legislature will allow the hiring of three employees to help start the apprenticeship program. The cabinet has also received money from the federal government that could be used for marketing, equipment, materials, curriculum costs, tools, instruments, tax credits, and training costs.
Secretary Ramsey stated that the main focus of the apprenticeship program is to give an apprentice the opportunity to start a career.
In response to a question by Chair Donahue, Secretary Ramsey stated that the cabinet is being aggressive with high school students and trying to get more schools involved. The apprenticeship program is not competing with academics or higher education, but rather is trying to give students an alternate opportunity.
In response to a question by Chair Donahue, Deputy Secretary Nemes stated the cabinet is just starting the apprenticeship program. There are a lot of businesses that are scared of hiring juniors and seniors in high school because of their age. The cabinet is partnering with ADECCO to provide insurance for these students, which will make businesses more interested in hiring. The cabinet is working towards making the time as an apprentice during high school count towards the total apprenticeship requirement for certain trades.
In response to a question by Representative Short, Deputy Commissioner Donta stated that the building trades, manufacturing, health care, IT, and maintenance technicians are the main industries in Kentucky that utilize apprenticeships. In regards to manufacturing, some of the skills are tool and die, assembly lines, plastic injection, and running computers that operate machines. Deputy Secretary Nemes stated there are over 1,100 registered programs with registered skills. The cabinet is able to fit whatever skills are needed.
Secretary Ramsey stated, in response to a question by Representative Short, that electricians, plumbing, HVAC, and welding are in high demand.
In response to a question by Representative Short, Secretary Ramsey stated that some of the issues in helping the eastern Kentucky region are poor infrastructure, adequate workforce, and drugs.
In response to a question by Representative Short, Secretary Ramsey stated that businesses are willing to hire people from other areas, but people are not willing to leave that area.
In response to questions by Representative Westrom, Secretary Ramsey stated that the cabinet is collaborating with the Economic Development Cabinet, Health and Family Services Cabinet, and the Corrections Department. The apprenticeship program is helping to introduce people to new ideas, which is a clear avenue to start a career.
In response to a question by Representative Westrom, Deputy Secretary Nemes stated that the businesses are paying the apprentices but the training costs are not being covered by the businesses in most cases. Some of the training facilities and schools are able to facilitate the training, and some of the federal money can help cover training equipment. The apprenticeship may spark an avenue for an individual to further education and not just create a career.
In response to a question by Representative Westrom, Secretary Ramsey stated that Europe has an apprenticeship process, and that some of the companies from Europe that are located in Kentucky have a lot to share as the Kentucky apprenticeship program begins. Those companies are acting as role models.
In response to a question by Representative Schamore, Secretary Ramsey stated the best process to get help with expensive tool and die machinery costs for technical schools would be secondary and post-secondary education working directly with the business.
In response to a question by Chair Donahue, Deputy Secretary Nemes stated there are no tax credits given within the cabinet. The federal money that is available could be something that would allow for tax credits in the future.
In response to a question by Chair Donahue, Secretary Ramsey stated that there is no program to drive soft skills, but the school superintendents are encouraging those skills and work ethic for students in the tenth grade and higher.
In response to a question by Representative Mills, Secretary Ramsey stated that that more is always better in regards to wages, and there is plenty of room for upside. The danger is the cost associated with growth for some small businesses.
In response to a question by Representative Mills, Secretary Ramsey stated the applications for the $100,000,000 in workforce development bond money are under Workforce Development and not his cabinet.
In response to a question by Representative Schamore, Deputy Commissioner Donta stated the department has not reached out to Fort Knox or Fort Campbell to try to retain persons with a military background for careers in Kentucky. Secretary Ramsey stated that, in all interactions with businesses, the cabinet are focusing on hiring veterans and disabled individuals. Deputy Secretary Nemes stated that the military is the biggest apprenticeship program in the nation. The department is willing to work with the military to help Kentucky veterans. The Bluegrass State Skills has tax credits available to companies that apply for numerous criteria. The cabinet will be pushing the apprenticeship program with them.
In response to a question by Representative Westrom, Secretary Ramsey stated that the cabinet has not worked with Parks and Recreation to create a partnership for the hospitality industry.
Chair Donahue encouraged the apprenticeship program to be used in creative ways with a focus on helping impoverished counties.
At the request of Chair Donahue, the minutes from the previous meeting were approved without objection.
There being no further business, the meeting was adjourned at 10: 49 AM.