Rendell says New Budget Continues Sound Investments in Workforce Development

HARRISBURG – Gov. Edward G. Rendell said the budget he signed Tuesday includes $344 million to continue the state’s innovative and successful workforce development efforts through the departments of Labor & Industry, Community and Economic Development, and Education.

“When I took office, one of my top priorities was the revitalization of Pennsylvania’s economy by investing in programs that enhance the education, skills and employability of our workers,” Rendell said. “The investments we are making now will build on our successful workforce development efforts so workers remain competitive in the global economy.

“Increased economic competition means that we must be prepared to tackle new challenges. The success of our industry-led job training and education programs is proof that when we invest in Pennsylvanians we get results. We are seeing those results now in unemployment rates below the national average and record-high job counts because businesses are creating new opportunities for our hard-working men and women.”

Rendell pointed out that funding will continue for programs such as industry partnerships, industry partnership worker training and nurse education initiatives that are making significant progress to address Pennsylvania’s workforce needs.

Industry partnerships bring together multiple employers in high-growth industries that have the greatest potential to create new jobs to identify and address common workforce needs. In addition, these partnerships identify training and skill gaps; help connect young people to careers; help educational and training institutions align curriculum with industry demand; address recruiting and retention of workers and develop career ladders within and across companies; highlight best practices; and promote communication among companies.

“Since 2004, state investments in industry partnerships and industry partnership worker training have yielded very positive results,” Rendell said. “More than 5,700 businesses are involved in 90 industry partnerships and more than 24,000 workers have received training resulting in wage increases by an average of nearly 13 percent. This is workforce development at its best – meeting real challenges with real solutions.”

Among those challenges: the projected shortage of Registered Nurses, which could reach 16,100 by 2010; and the shortage of Licensed Practical Nurses, which could reach 4,100 in three years.

Since Rendell took office, the number of RN graduates has increased dramatically — from 2,939 graduates to an estimated 5,937 during 2006. Additionally, the number of LPN graduates has increased significantly — from 1,236 to an estimated 2,017 during 2006.

“Pennsylvania, like many other states, is facing a long-standing health care workforce crisis that must be addressed,” Rendell said. “That is why we are investing an additional $2.5 million into our nurse education initiatives through the Pennsylvania Higher Education Assistance Agency to expand our ability to educate new nurses as a way to ensure that residents have access to quality health care now and in the future.”

A breakdown of the 2007-08 state funding for workforce development programs follows:
-Industry Partnership Worker Training (L&I):$17 million
-Industry Partnerships (L&I): $5 million
-Pennsylvania Conservation Corps (L&I): $6.8 million
-Customized Job Training/WEDnet (DCED): $22.5 million
-Dual Enrollment (PDE): $10 million
-Adult and Family Literacy (PDE): $23.4 million
-Career and Technical Education (PDE): $4.4 million
-Community Colleges (PDE): $229.4 million
-Technical Colleges — Rural Areas: $2 million
-High School Reform/720 (PDE): $11 million
-Nursing Shortage Initiative (PHEAA): $2.5 million
-Workforce Advancement Grant for Education (PHEAA): $10 million

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