CFDA#
None
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Funder Type
State Government
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IT Classification
B - Readily funds technology as part of an award
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Authority
Texas Workforce Commission
Summary
The Skills Development Fund provides customized training opportunities for Texas businesses and their employees, to increase the skill levels and wages of the Texas workforce. Training providers can use grant funds for curriculum development, training materials, instructor certifications, and training equipment additions or upgrades. The Texas Workforce Commission administers funding for the program which involves collaborations among public community or technical college, the Texas Engineering Extension Service (TEEX), a community-based organization in partnership with one of these entities, or a local workforce development board.
The Skills Development Fund has two distinct programs associated with it: Skills Development Fund, and Recruit Texas.
Skills Development Fund grants emphasize highly technical training curricula appropriate to the participating business partner's industry. This customized training includes:
- Tailored curriculum specific to the business partner's needs
- Classes conducted at the employer's site or at the training provider's location
- Flexible class schedules to minimize impact to employers
- Addressing company needs in real time using real work situations.
Recruit Texas allows public community or technical colleges to provide intensive and rapid response training and support services for employers expanding in or relocating operations in Texas. As part of the Skills Development Fund, Recruit Texas program is administered by TWC with a focus on:
- Developing customized workforce training programs
- Fast-track curriculum development
- Workforce training-related support services for employers
- Instructor certification necessary to provide workforce training
- Acquiring training equipment necessary for instructor certification and employment
Wages paid to trainees must be equal to or greater than the prevailing wages for the same or similar occupations in the area where the business is located. Additional factors that may be considered in proposal evaluations include:
- Positive economic impact on the local region where grant is awarded
- The applicant's current and past performance on Skills Development Fund grants
- Equitable geographic distribution of grants awarded across the state
- The inclusion of small- and medium-sized businesses
- The fiscal stability of the business partners
- Cost per trainee is close to that of the statewide average for all Skills Development Fund grants
History of Funding
Since its inception in 1996, the skills program has helped 4,446 employers create 116,065 jobs and upgrade the skills of 256,885 incumbent workers, for a total of 372,950 workers trained. Participating workers have received career and/or advancement opportunities at the completion of training, which includes wages equal to or greater than the prevailing wage in the local area. Statewide, the average wage paid to workers trained with skills grants has increased from $10.33 an hour in FY 1996 to $28.54 an hour in FY 2018. In Fiscal Year 2018, TWC's skills program:
- received 58 proposal submissions totaling $27,433,174;
- funded 50 regular skills grants with an average award of $474,656;
- served 90 businesses;
- supported the creation of 4,682 jobs; and
- assisted with the retraining of 11,494 current workers in existing jobs
More information is available in the 2018 annual report at https://twc.texas.gov/files/news/skills-development-fund-annual-report-fy-2018-twc.pdf
Additional Information
To ensure that participating employers receive the training they need to address changing business needs and workforce skills gaps, training courses funded under the program should conform to the parameters for each training category, described below:
- Business Technical – At least 55% of the total training hours for a Skills Development Fund grant must be business technical courses, which are occupational-specific courses. Industry-specific examples include metrology, pneumatics, mechanical maintenance and; finance, and nurse certification.
- General Technical – Up to 45% of the total training hours for a Skills Development Fund grant may be general technical courses, which also includes courses traditionally classified as non-technical. General Technical courses are courses that may be essential to the occupation, but may transfer between occupations. General technical training may include, for example, Lean and Six Sigma courses, Occupational Safety and Health Administration (OSHA) courses, and Microsoft Office and other computer courses. Non-technical courses may include soft skills,” such as leadership and management training, and communication.
Funding may be used for tuition, curriculum development, instructor fees, and training materials. Grant funds may not be used to pay for trainee wages, drug testing, travel costs, and certain equipment purchases.
Eligibility Details
Eligible grant recipients include:
- Public community colleges;
- Public technical colleges;
- The Texas Engineering Extension Service (TEEX);
- Local Workforce Development Boards (Boards); or
- A community-based organization (CBO) only in partnership with the public community college or technical college or TEEX
Deadline Details
Proposals are accepted on a rolling basis.
TWC provides access to a team of highly skilled professionals who provide technical assistance, at no charge, to help streamline the development of projects and proposals. Project developers are highly encouraged to take advantage of technical assistance prior to final proposal submission.
Award Details
For Fiscal Years 2020-2021, the Texas Workforce Commission was appropriated nearly $45,000,000 to support high-quality customized training projects statewide through the Skills Development Fund. Grants used to assist a single business may be limited to $500,000. Wages paid to trainees must be equal to or greater than the 25th percentile prevailing wages for the same or similar occupations in the area where the business is located.
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