Call to Order and Roll Call
The 2nd meeting of the Interim Joint Committee on Education was held on Monday, July 18, 2016, at<MeetTime> 1:00 PM, in Room 154 of the Capitol Annex. Senator Mike Wilson, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator Mike Wilson, Co-Chair; Representative Derrick Graham, Co-Chair; Jared Carpenter, Danny Carroll, Jimmy Higdon, Alice Forgy Kerr, Gerald A. Neal, Reginald Thomas, Johnny Ray Turner, and Stephen West; Representatives Linda Belcher, George Brown Jr., Regina Bunch, John Carney, Hubert Collins, Jim DeCesare, Jeffery Donohue, Kelly Flood, David Hale, Cluster Howard, James Kay, Brian Linder, Mary Lou Marzian, Donna Mayfield, Reginald Meeks, Charles Miller, Ruth Ann Palumbo, Marie Rader, Tom Riner, Sal Santoro, Wilson Stone, and Addia Wuchner.
Guests: Hal Heiner, Secretary, Education and Workforce Development Cabinet; Dave Adkisson, President, Kentucky Chamber of Commerce; and Kim Menke, Manager, Community and Government Relations, Toyota Motor Engineering and Manufacturing North America and Chair of the Kentucky Federation for Advanced Manufacturing Education; and Stacey Hughes, Human Resources Manager, Logan Aluminum and Chair of the Southcentral Chapter of the Kentucky Federation for Advanced Manufacturing Education; Cassie Reding, Kari Patrick, Brison Harvey, Meka Wilhoit, Stephanie Helten, Ada T. Skillern, Andrew Beaver from the Hope Street Group; Rhonda Tray; Sarah Taylor Cross, Stephanie Taylor Cross, Jamie Chenault from Hardin County Public Schools; Jeff Sherels from KEA; and Erin Klarer from KHEAA.
LRC Staff: Jo Carole Ellis, Janet Stevens, Joshua Collins, Chris White, and Avery Young.
Approval of Minutes
On a motion by Senator Kerr and a second by Representative Collins, minutes of the June 13, 2016, meeting were adopted.
Welcome
Chairman Wilson requested a moment of silence in remembrance of fallen police officers and their families in light of recent tragic events throughout the nation.
Representative Cluster Howard, presiding Co-Chair for the Subcommittee on Postsecondary Education, reported on the subcommittee meeting about the benefit of liberal arts education and the state of student debt and financial aid.
Representative Wilson Stone, presiding Co-Chair of the Subcommittee on Elementary and Secondary Education, reported on the subcommittee meeting about education reform, progress achieved, and continuing challenges facing education.
Senator Reginald Thomas introduced Allison Sloan, who works with students with dyslexia. She also served as both advisor and consultant to the former Miss Kentucky Clark Davis. Also welcomed were educators from across the state who came to learn the process of making education policy.
Educational policies to improve postsecondary and workforce readiness
Chairman Wilson said that, while many Kentucky employers struggle to find employees who qualify for the positions available, job seekers struggle to find a position that match their acquired skills and abilities. Employers are looking for top candidates who are competent, creative, and innovative. Chairman Wilson asserted that our American educational system is failing to produce the caliber of professionals desired, while other industrialized nations continue to outpace our training systems used. Educational policy must continuously improve for achievement in college preparation, academic standards, postsecondary degrees, and industry certifications and credentials that will prepare students for the professional careers demanded by Kentucky employers.
Chairman Wilson said that, as the Kentucky General Assembly prepares legislation for the 2017 Regular Session, members should align legislation with the federal Every Student Succeeds Act (ESSA) adopted in 2015. This will provide an opportunity to develop educational policies that will improve and more accurately measure a graduate’s postsecondary and workforce readiness based on the knowledge, skills, and credentials critical for the success in Kentucky’s workplace. Chairman Wilson said that enhancement of K-12 academic standards, state assessments, and school accountability measures is essential.
Education and Workforce Development Cabinet (EWDC) Secretary Hal Heiner praised the General Assembly for the magnitude of the accomplishments during the last session, primarily $15,000,000 allocated for the dual credit initiative and $100,000,000 dedicated for the work-ready skills initiative. The new dual credit initiative has involved a great amount of interest and cooperation. A recent webinar on the initiative attracted 255 participants, including universities and local school officials. University of Kentucky President Dr. Capilouto agreed to invest $100,000 to train high school teachers to become adjunct faculty. Eastern Kentucky University and at least 30 secondary schools have agreed to participate.
Secretary Heiner said that a high school diploma is not enough for the current jobs available and for future jobs coming to Kentucky. He mentioned statistics from Georgetown University referring to the recovery from the 2008 recession’s loss of eight million jobs. Six million were for individuals that had a high school diploma or less, while two million were for individuals with postsecondary education. As the recession eased, 11 million jobs were created. Of those 11 million positions, all but 100,000 required some postsecondary education.
Secretary Heiner reported that recent high school graduating classes in Kentucky had 26 percent graduating with postsecondary credits from dual credit programs. In Iowa, which leads the nation, 56 percent of graduating high school students have postsecondary credits. Secretary Heiner suggested that Kentucky strive for a goal of 100 percent. Schools in Fulton, Hickman, and Carlisle counties have a non-profit, charitable group that has been funding dual credit courses, achieving an 80 percent status of students graduating with dual credits.
Secretary Heiner said that specialized forms of education, such as public charter schools, are needed to meet the needs of every child in Kentucky. He stressed the importance of closing the growing achievement gap and of having forms of education for top students across Kentucky, such as the Gatton Academy and Craft Academy. It is important to have specialized education that meets the needs of students whose family may not have had a great priority on education and for students who have large parenting and financial gaps in their home. A holistic form of education is needed to fill gaps to insure children use their talents and abilities to the maximum.
Secretary Heiner said that career education is the same as a college education and, in terms of earnings, career and technical education jobs are parallel to academic pursuits. All technology centers should be renamed as colleges and every course taught in area technology centers should be college courses that receive dual credit. He believes the benefits students get from these initiatives will greatly contribute to Kentucky’s economy.
Secretary Heiner reported that economic development groups say the competition today is for skilled and educated workforces. Kentucky could lead this initiative to acquire the best jobs in the future. The recent Work Ready Skills Initiative webinar attracted 155 people throughout the state from high schools, colleges, employers, and interested community groups. Applicants can apply for some of the $100 million in bond funds to move their community ahead through the revamping of facilities and equipment. While some areas have great facilities, there is a huge disparity around the state, and the allocated funds can be a positive change.
Secretary Heiner reported there are five key industry sectors that are in top demand for trained and qualified employees. There are 112,000 jobs available, including expected growth and replacement of existing workers. These include health care, manufacturing, transportation and logistics, business and information technology (IT) services, and construction and trades.
Secretary Heiner outlined the top demand occupations as they relate to high skill/high wages: (1) health care: RN, LPN, general physician; (2) manufacturing: skilled technician, skilled operator, engineers, welders; (3) transportation and logistics: CDL, logistics managers, IT infrastructure; (4) business and IT services: computer systems analyst, computer programmer, software developer, civil engineer, accountants, financial analysts, technical sales; and (5) construction and trades: carpenters, electricians, plumbers, pipefitters, HVAC, heavy equipment operators.
Secretary Heiner said that a good program not only teaches a trade but also includes how to run a business and basic business principles. Business principles combined with a skilled trade equips an individual with the necessary training to start their own business.
Secretary Heiner reported that 47 percent of all Kentucky high school graduates in 2012-2013 were considered not college or career ready. When the dual credit initiative reaches its goal, college ready will mean either nine credit hours of postsecondary completed courses connected to a postsecondary institution or industry recognized credentials that match up with an equivalent amount of work.
The breakdown by student categories showing the achievement gap of students who are not prepared for postsecondary education indicates we have a long way to go. The percentages are Whites, 44 percent; African Americans, 70 percent; Hispanics, 56 percent; Free/Reduced Lunch Recipients, 61 percent, and Special Education, 87 percent. Secretary Heiner stated it is a moral imperative to change this. A student who completes high school and is college and/or career ready but decides against attending postsecondary will feel the effect by seeing average median earnings lowered by several thousand dollars.
Secretary Heiner believes Kentucky can lead the country in dual credit. The enthusiasm and excitement for both secondary and postsecondary education result from funding made available by the reallocation of lottery funds for the dual credit scholarship. The other plans and initiatives are to modernize the Commonwealth’s workforce, balance industry demand to educational supply, promote equity, and provide access to specialized instruction. Modernization is possible through the use of the $100 million allocated for the Work Ready Skills Initiative, by upgrading facilities and learning tools. The partnerships formed with employers, high schools, and postsecondary facilities will allow them to train students by day and adults by night.
Secretary Heiner said work continues with the Kentucky Workforce Innovation Board, the Kentucky Chamber of Commerce (KCC), and the state association for human resource officials to get a better idea of the skills pipeline needed for Kentucky’s future. This relates to not only what is needed today but also how companies will be able to have future expansion with skilled and certified employees.
Secretary Heiner reiterated the issue of equity and access for students who remain at an economic or family disadvantage, but feels this can be overcome as a result of the General Assembly’s priority on education. This gap must be filled quickly.
Chairman Wilson said that, in the Area Technology Center (ATC) in Warren County, there is a strong collaboration between the local chamber of commerce, industry, and school districts. The chamber has created two new programs whereby they are able to get machines donated from industry to the ATC. The chamber has also contributed $200,000 to those programs. The Commissioner of Education supports the program and has agreed to provide teacher funding for the second year of the program. Five welders that received certifications in area high schools were able to gain employment at double the income they would have normally received.
In response to Representative Flood’s questions about the Work Ready grants, Secretary Heiner stated the pre-application is due in 30 days, and all information is available on EWDC.ky.gov, including the full timeline as well as frequently asked questions. He expects only a fraction of the funds to be disbursed in the near future. Over a two-year period, there will be a rolling application process that will occur every six months until the funds are expended. The expectations for the regional teams are to bring everyone together including private employers, high schools, postsecondary education, local elected officials, and local economic development agencies across the state to help get the word out about the initiative’s importance. If Kentucky spends these funds to build glorious facilities and no one uses them, the state will not move forward.
In response to Representative Flood’s questions about the application process, Secretary Heiner said there are nine members that serve on the application review committee. Once the application is received it should take about 10 days for it to be reviewed. The committee will compare the initiative’s goals to the proposal. For applications that are aligned with the goals, EWDC will go back to the partnership and request a full application within 60 days. The full application will provide more detailed documentation on facilities, costs, and metrics. Grants will range from $10,000 to $25 million. Secretary Heiner added that ATCs are doing very well, but there is a dire need for updated equipment in many facilities.
Representative Riner thanked Secretary Heiner for stating that a high school diploma is not enough and said that a high school diploma is not enough, a college degree is not enough, and even a post-graduate degree is not enough without an emphasis on the need, value, and virtue of character. Secretary Heiner responded that while educated and skilled workforce is a concern, there is also a lack of professional skills and character among workers. His goal is to have a mentoring component to teach students professionalism in the workplace, as well as building character.
In response to Representative Meeks’ question about the goals of the dual credit program, Secretary Heiner said the goal is to find a pathway for every single student that will lead to a job in Kentucky, and the state does not have the capacity needed to achieve the goal without expansion. Only 60 percent of Kentucky students continue postsecondary education. Of the 40 percent who have elected not to go to college, only 2 percent graduated from high school with an industry-recognized credential. The first step is to move that 2 percent to 40 percent.
In response to Representative Graham’s question about dual credit costs, Secretary Heiner advised there is a cap of one-third of the Kentucky Community Technical and College Systems (KCTCS) tuition rate for every dual credit course offered in the high school. A lower rate could be negotiated between the school district and postsecondary institution. For every dual credit course completed, one-third of the KCTCS rate goes to the school district. The district will send a portion or all of those funds to the postsecondary institution. To provide flexibility, any remaining funds can be used for faculty instruction, student transportation to dual credit classes, and student books. Full accounting for every dual credit dollar must be provided at the end of the school year.
Representative Graham responded this will encourage teachers to pursue a higher degree within their area of concentration and perhaps could aid teachers in advancing as instructors at the collegiate level.
Representative DeCesare commented about information provided in the presentation regarding the number of free and reduced lunch recipients. He said that at times government encourages able-bodied individuals not to work, and Kentucky does not have trained workers for the jobs available. He commended programs presented by Governor Bevin and Secretary Heiner that will enable organizations to be prepared to train people for these positions as they become available. Representative DeCesare hopes this is done quickly because many manufacturing facilities are reassessing the workforce in Kentucky to determine if they should expand here or leave Kentucky. The new programs are coming at the right time to ensure Kentucky workers have the skills they need for high-tech, high-manufacturing jobs, and these steps will move Kentucky forward.
Dave Adkisson, KCC President, discussed a report co-produced by KCC and The Prichard Committee, “A Citizen’s Guide to Kentucky Education: Reform, Progress, Continuing Challenges,” which details Kentucky’s workforce challenges from an employer’s perspective. The report is available at kychamber.com.
The Kentucky business community has been very involved in education reform since the late 1980s after Kentucky was ranked 49th in the nation. In 2008, KCC made improving public education the top priority for Kentucky businesses.
Mr. Adkisson reported that the emergence of the recession morphed into today’s issue of needing a trained and skilled workforce across the state. There is no such thing as a “Kentucky economy,” but rather a division of nine distinct regional economies within the state. The Kentucky workforce is very dependent upon the regional economies and the different industries in each of them.
Five years ago, KCC members were surveyed regarding the biggest threat facing their businesses. The top threats were the economy and federal health care. Today, KCC reports the biggest factor facing large and small businesses is an educated and trained workforce. A key recommendation of KCC is to engage additional business and community involvement to help students recognize the opportunity and experience by creating partnerships, internships, and apprenticeships.
Mr. Adkisson added that another main area of focus is credentials. If industry values certain certifications more than others, then it is important to identify the most needed certifications and determine the criteria for those certifications. He congratulated the efforts of the legislature and the administration on moving forward with career and technical education and finding ways in which to modernize it, extend it, and make for more meaningful transitions not only from high school to college but also college to career.
Mr. Adkisson suggested apprenticeship programs need to be demand driven as the needs of the businesses change. In addition to the programs being demand driven, they should be employer led, by informing us of the demand for certain types of skilled maintenance laborers over the next few years and helping determine how to encourage college students to pursue these meaningful careers. Dual credit courses provide a huge opportunity, and Kentucky should be a national model.
Mr. Adkisson reported the issue of soft skills, also called employability skills or professional skills, is the largest single issue facing industry today. Examples of soft skills include showing up for work and on time, showing up drug free, getting along and communicating with co-workers and working in teams. Employers are anxious for a solution to this issue.
Mr. Adkisson reported that schools in northern Kentucky have offered what is known as a “character certificate” or “notice of professionalism,” and community colleges in Elizabethtown and Bowling Green have successfully built character education into the curriculum. Mr. Adkisson is working with the Kentucky Department of Education Accountability Steering Committee to determine how to combine a character curriculum without distracting from the academic curriculum.
Mr. Adkisson said KCC will focus on the workforce participation rate regarding how many able-bodied adults between ages 21 - 65 are working. The average in Kentucky is 65 percent and the national average is 75 percent, and the 10 percent difference translates into approximately 130,000 able-bodied adults in that age range who are not in the workforce. Studies should be completed to determine where these individuals are, what they are capable of, and what skills they need to be meaningfully employed. Mr. Adkisson believes that many Kentuckians are on disability due to a cultural mentality and suggested that change is needed so more people can become productive members of our workforce.
Mr. Adkisson referred to legislation passed in the 2016 Regular Session regarding felony expungement of able-bodied adults. He added the passage of this legislation was an effort to engage a portion of the marginalized population in employment while still insuring businesses from inherent risks.
Senator Wilson commented Bowling Green is dealing with the issue of soft skills. He described the “Leader in Me Program” that has been adopted in the local school system, which has helped change the culture, has made children take responsibility for their own education, and has promoted teamwork.
Kim Menke, Community and Government Relations Manager, Toyota Motor Engineering and Manufacturing North America, and Chairman of the Kentucky Federation for Advanced Manufacturing Education (KY FAME) said KY FAME is a partnership of regional manufacturers whose purpose is to implement dual-track, apprentice-style training that creates a pipeline of highly skilled workers. The primary method to achieve this goal is through partnerships with local educational institutions to offer the Advance Manufacturing Technician (AMT) program.
Mr. Menke explained that KY FAME emerged from issues of Toyota not getting the skilled and trained employees needed to be successful. Many employees began working at Toyota 30 years ago and as growth occurred over the years, the company was having difficulty filling positions with employees that had the necessary skill sets to be able to produce at an acceptable level.
AMT was developed as the first model because maintenance was so important. The model was built to include any career or job classification in manufacturing, whether it is machining or logistics. The model can also be used in other sectors of the economy, such as health care, IT, and finance, and can be duplicated by changing the technical skills that need to be taught. The model is used across the country now and is currently used in eight states where Toyota has facilities.
Employers recruit, select, and sponsor students in the program, typically using high school graduates as the primary source. Some companies need to improve their incumbent workers and put their own employees into the program. They have also been successful in selecting returning veterans and displaced workers. The program is a learn-and-earn program that lasts five academic semesters. For two days a week, classes are held in a simulated work environment, and for three days per week participants work side-by-side with mentors at the sponsoring company. This enables the student to put into practice what is learned, and it provides hands on training and experience.
The training received is based around four key elements: (1) technical training, (2) personal behaviors, (3) manufacturing core exercises, and (4) work experience. Students can graduate debt free with an associate degree as an AMT with two years of experience.
KY FAME was started in 2009. In 2012 there were seven companies in Central Kentucky that came together to develop the first Bluegrass Chapter with 22 students. To date, 124 AMT students have graduated and have all been employed. Three chapters were added within the next year across the state: Northern Kentucky Chapter, Lincoln Trail Chapter, and the Greater Louisville Chapter.
In 2015, the KY FAME Board was established to assist other areas of the state in duplicating the program. The state was divided into 10 regions, and there are now chapters in 9 of those 10 regions. Current enrollment in the nine chapters is 286 students, and with returning second year students across the state, KY FAME’s enrollment is about 400. The student enrollment represents two-thirds of the 120 counties in Kentucky. This shows that the program has value and has started to spread across the state.
Mr. Menke stated that graduates from the KY FAME program are the best trained and have real-world experience and necessary technical skills. They also understand and excel in the advanced manufacturing culture and demonstrate necessary personal behaviors that are so important. One thing that has been very gratifying is many of the AMT students that are graduating from the Toyota program are now team leaders in skilled trades. The caliber of people coming out of these programs is exceptional.
Stacey Hughes, the Human Resources Manager for Logan Aluminum in Lewisburg and president of the Southcentral KY FAME chapter, which was founded last fall said their first KY FAME class will start in August with 20 students. Ms. Hughes believes the cohort model that is offered with the AMT model is the best because the students learn, work, and study together and discuss with each other the different companies for which they work.
She said KY FAME also helps raise the reputation of manufacturing in the area and across the state. Because it is industry led, the companies work together to recruit in high schools and in the community as opposed to competing against each other for the best skilled and trained employees. It is an opportunity to tell the students that manufacturing is not “dirty, dark, and dangerous.”
In response to Senator Alice Kerr’s questions about applying for KY FAME, Mr. Menke said the student completes an application on kyfame.com that is reviewed for eligibility. The manufacturers form a committee that will interview the student, explain program expectations, and answer questions. The applicants are then drafted by the sponsoring companies, comparable to the NFL draft. After the selection is completed, the application will go to the community college and classes start in the fall. The application process starts in early January or February. Many companies hire the student for the summer, which gives the student the opportunity to obtain real-world experience in the personal behaviors and manufacturing culture before starting school.
In response to Senator Danny Carroll’s question about a contract between the sponsor and the student, Mr. Menke said there is an agreement between the sponsoring company and the student, who agrees to work for the sponsoring company during the entire 18 months of the training program. However, there is no commitment by the student or the company at the end of that period. The majority of students will stay with their sponsoring company. The program has a 99.9 percent graduation and placement rate, but it is important to make sure the position is a good fit for both parties. A company that requires a commitment may do so if it assists in the payment of the student’s tuition and may include a stipulation whereby the student must reimburse the company if he or she chooses not to stay as an employee.
Ms. Hughes said that the agreement and negotiation is between the student and the employer, and they will negotiate the terms including tuition payment and salary.
In response to Representative Carney’s question about high school seniors participating, Mr. Menke stated that one of the challenges with high school seniors is factories have under 18 age restrictions.
In response to Representative Carney’s question about the delivery of the instruction, Mr. Menke said that they are working with education providers to develop regional relationships because many jobs are unique to specific regions and the regional providers would have the best perspective on the education needs in their area.
In response to Representative Carney’s question about the eligibility of independent colleges to participate in the Work Ready grant partnerships, Secretary Heiner said they are looking for broad partnerships including private institutions and there are no requirements that the any particular group take the lead in creating the partnership.
Representative Carney commented that as an educator he acknowledges that great strides have been made in the Commonwealth, as shown by the increase in the percentage of college ready students from 47 percent in 2012 to 62 percent in 2015.
In response to Representative Stone’s question about KY FAME graduates using their associate’s degrees as a foundation to further their higher education, Mr. Menke stated that the program was set up as a career pathway. AMT is the first step of the pathway whereby students can move very quickly into various positions within companies. There are articulation agreements with some universities and are working with others to do the same. KCC is working with universities on teaching the business side of the equation because it is critical information needed by individuals to start their own companies or perhaps move into management within their existing companies.
Ms. Hughes said that many of Logan Aluminum’s employees have obtained associate’s degrees and have used this avenue to advance their degrees at Western Kentucky University or another university, or through an on-line program.
Senator Jimmy Higdon expressed disappointment that high school students are not eligible for KY FAME but said there are many opportunities for students with school-to-work, internships, job shadowing, and apprenticeships. More employers embrace the opportunities to allow students under 18 years of age into the facilities and is hopeful more industries will follow this.
In response to Representative Brown’s question about providing assistance to students who do not qualify immediately for KY FAME. Mr. Menke said that during the interview process, the committee identifies students who would make great team members but may not have the skill set needed to qualify. The committee then works with the student and the high school to help them obtain the needed skill levels.
Ms. Hughes stated that recruitment in the high schools is not only for seniors, but also includes lower classes so they are aware of the acceptance criteria. Students who do not score high enough on a particular subject can get help. If they can improve their scores before the semester begins, they can go into the pool to be interviewed by a company.
Chairman Wilson thanked the presenters and announced that the next meeting of the committee will be on a different day of the month, August 15, due to a conflict with the National Conference of State Legislators meeting on the regular meeting date.
The meeting was adjourned at 3:15 PM.