COLUMBUS - The Ohio Senate today took an important step in the ongoing effort to provide Ohio businesses and the state's dedicated workforce with the tools necessary to compete in a skill-based, global economy.
This afternoon, legislators voted unanimously to approve an amendment that will create the Ohio Incumbent Worker Training Program, a grant-based economic development effort that seeks to provide financial support to businesses for employee training. Grants will be issued through the Ohio Department of Development, and will allow the state to make strategic investments in companies to increase employees' occupational skills, while simultaneously, positioning local businesses to compete in the global marketplace and grow Ohio's economy.
The Incumbent Worker Training Program will replace the state's existing Training Tax Credit (TTC) program, which is a non-refundable tax credit awarded to businesses that offer job training programs to their employees. The TTC was established in 1999 through passage of House Bill 283 in the 123rd General Assembly.
While the TTC has been a success-providing nearly $100 million in tax credits to 1,760 businesses since 2000-the program is operated on a lottery system, so companies have little or no idea if they will be selected. Conversely, the new Incumbent Worker Training Program gives the Department of Development authority to decide who will be awarded each job training grant, allowing the state to make more strategic investments that will help further a larger economic development goal.
"Today's vote signals yet another important step in Ohio's economic transition-a step that will have a tremendous impact on helping the state attract new business investment, encourage existing companies to expand their operations here and provide our workforce with the tools to succeed in today's skill-based economy," explained State Senator John Carey (R-Wellston), Chairman of the Senate Finance Committee.
Sen. Carey noted that he has been a strong supporter of the Ohio Training Tax Credit program through the years, sponsoring legislation in the 126th General Assembly to keep the program running through tax year 2006. Most recently, he introduced Senate Bill 250, which would extend the TTC through tax year 2008. However, Sen. Carey said he sees the need to refocus Ohio's job training efforts.
"While the TTC has been a great asset to Ohio businesses and their employees over the years, this new worker training program will help take the state's economy to the next level," Carey added.
Specifically, the state will allocate $15 million in fiscal years 2008-2009 to fund grants for the Incumbent Worker Training Program. The money will be drawn from federal Workforce Investment Act (WIA) dollars, and grants will be capped at $1,000 per employee and $200,000 per company. It is important to note that the state hopes to use this initial $15 million investment to leverage local WIA funds.
"In 2005, the General Assembly passed tax reform to improve Ohio's business climate and help attract new investment to the state. Then, in the most recent state budget, we made historic investments in education, particularly our colleges and universities, in an effort to prepare Ohioans to fill these jobs of the future. The Incumbent Worker Training Program is just another important part of the state's larger economic agenda," explained Senate President Bill Harris (R-Ashland). "Ohio workers are among the most dedicated, hard-working groups in the country, and with increased training opportunities, they will continue to be a tremendous asset to our economic success."
The Incumbent Worker Training Program was established as part of an amendment to House Bill 372, which passed the Senate this afternoon. After being amended in the Senate, the bill now heads back to the Ohio House for a concurrence vote.
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