What is the Michigan New Jobs Training Program?

Public Acts 359 and 360 of 2008 create the Michigan New Jobs Training Program (MNJTP). This program authorizes community colleges to issue debt on behalf of employers that are creating new jobs and/or expanding operations in Michigan for the purpose of funding job training. The MNJTP provides funding to meet a variety of training and development needs. The assistance ranges fro mhighly specialized and customized training to basic skill development fo rnew jobs. The principal and interest payments on the debt are paid by capturing the incremental increase in the state income tax associated with the new employees' wages and redirecting it to the college, instead of the state. This progam has the potential to be a cornerstone of Michgian's workforce and economic deelopoment efforts, with the state's 28 community colleges collaboratively partnerting with state and local economic developoment, the Michigan Work! Agencies and the private sector to support job creation.

How does this progam work?

Community colleges work with employers creating new jobs to identify training needs and calculate the needed financial support to fund training. Preliminary agreements are used to "set the clock", lock in the date from which new employees can be counted for the project and training expenses may be reimbursed. It is preliminary in nature and either the college or the employer can decide not to proceed. Final agreements need approval by the community college board of trustees. The community college then raise capital by either issuing debt in the form of bonds or loans, or use the college's reserves or operating funds to self-fund projects. The colleges administer the training funds and ensure that employer needs are met.

How is debt repaid?

The debt is repaid by capturing the incremental increase in the state income tax associated with the new employee's wages and redirecting i to the college, instead of the state. Funds available through the MNJTP are dependent upon training needs and projected withholding tax revenue available to repay the debt.

What employers are eligible for the MNJTP?

Employers pay the cost of training employees with dollars that would otherwise have been paid to the state for withholding taxes. The MNJTP allows employers to take a credit and send those dollars to the community colleges to retire the debt funding the training program. If an employer hires the number of new employees and pays the wages it certified to the college, the progams cost the employer nothingk. However, should the employer not hire the number they certify, or leave Michigan before the debt is retired through normal withholding diversion, the employer would still be liable for meeting the terms of the contract (participating employers do assume the risk of repayment through a diversion of withholding taxes).

What type of training services can be funded using the MNJTP?

A wide range of training can be offered, from highly specialized/customized training to basic skills instruction.

How do I get more information about the MNJTP?

Please contact John Joy at jjoy@monroeccc.edu or (734) 384-4226.

IWT Program

The Incumbent Worker Training Program is funded by the Federal Workforce Investment Act (WIA) and administered by Michigan Department of Career Development, Office of Workforce Development through the Southeast Michigan Community Alliance (SEMCA). The purpose of the program is to advance the goals of the local workforce strategic plans by providing reimbursement grants to businesses to assist with skills upgrade training for currently employed full-time employees.

Program Guidelines

Applications for the Michigan Incumbent Worker Training Program are open to all businesses in Monroe County that meet the guidelines listed below.

• Must be willing to enter into a mutually beneficial partnership with SEMCA (Southeast Michigan Community Alliance) and Michigan Works Service Centers, and educational institutions in a collaborative effort to upgrade skill levels that lead to increased productivity, and improved labor market and economic advancement
• Must be a "for-profit" business and have been in operation in Michigan for a minimum of two years prior to the application date
• Must have at least ten full-time employees
• Business that have recently made capital investments will be given priority
• Must contribute to the states unemployment insurance system
• Must be current on all state tax obligations

For more information contact Mr. John Joy at 734-384-4226 or at Jjoy@monroeccc.edu.