Pennsylvania Governor Wolf's Budget Reflects Renewed Focus on Jobs that Pay for Department of Labor and Industry

HARRISBURG, Pa., March 3, 2015 /PRNewswire-USNewswire/ -- Governor Wolf announced today that his budget raises the minimum wage for over a million Pennsylvanians, makes significant investments for workforce development to train individuals for a 21^st century economy, and provides work opportunities for persons with disabilities.

"The Department of Labor and Industry is committed to preparing and empowering a workforce that is ready for jobs that pay," said Acting Labor & Industry Secretary Kathy Manderino.  "Governor Wolf's historic budget provides livable wages for those employed and expanded opportunities for those seeking work."

The 2015-16 budget allows for an increase in the state's minimum wage from the current $7.25 per hour to $10.10, with a tie to inflation. More than 1.2 million workers in the state stand to benefit from the increase.  Pennsylvania's minimum wage was last raised on July 24, 2009 by the federal Fair Labor Standards Act. The last time the rate was raised by Pennsylvania legislation was 2006.

"Currently, 29 states have minimum wages higher than $7.25 and all of Pennsylvania's neighboring states have minimum wages higher than ours," said Secretary Manderino. "It's time that Pennsylvania stepped up to support our workers whose wages haven't kept pace with inflation and the higher cost of goods and services."

The governor will dedicate $10 million for Industry Partnerships (IPs), an established Department of Labor & Industry (L&I) program that enables clusters of businesses in complementary industries to convene and identify common needs for workforce skill sets and to develop training programs that meet those needs. Additional funding will allow L&I to significantly expand IPs by:

• Increasing the number and duration of grant awards. Currently 20 IPs are funded for nine months;
• Convening partnerships on a regional or statewide basis to share ideas and create statewide strategies that translate back to local areas;
• Adding a career pathways component of each partnership, tying into the goals of the new federal Workforce Innovation and Opportunity Act. Additional funds will support federal requirements and not place local Workforce Investment Boards at a funding disadvantage;
• Explore the possibility of a more needs-based system that will allow Labor & Industry to be responsive where need dictates. This means employers seeking to expand or relocate to Pennsylvania will have funding available for training and collaboration within the IPs. Currently, funding is one-time-only with no room to respond as needs change or arise.

"Governor Wolf's proposal to invest an additional $10 million to the Industry Partnerships program will enable us to reach more industry clusters and identify their common skills needs," said Secretary Kathy Manderino. "Pennsylvania's Industry partnerships program is the first of its kind in the nation and this infusion of state dollars will help us significantly strengthen and expand these vital programs and partnerships with education and the private sector."

The L&I budget component also expands funding for vocational rehabilitation programs that help people with disabilities prepare for, obtain and maintain employment and independence. The proposed $5.4 million increase will allow the state to maximize federal funds with a draw-down of an additional $18.5 million to support the Office of Vocational Rehabilitation's (OVR) programs that include:

• Jobs for All, an on-the-job-training reimbursement program to promote the hiring of young people with disabilities;
• EARLY Reach, a program to help youth with disabilities better prepare for their transition into the world of work and independence;
• Single Point of Contact (SPOC), a partnership of OVR, non-profit disability organizations and the departments of Education and Human Services that simplifies the process of hiring people with disabilities;
• Project SEARCH, a national model that connects students with significant disabilities to large employers, surrounding them with supports and allowing the student to obtain real-world jobs experience before leaving high school;
• Centers for Independent Living, consumer‑controlled, community‑based, cross‑disability, and non‑residential, private, nonprofit agencies that are designed and operated within local communities by individuals with disabilities.

"Additional funds to our Office of Vocational Rehabilitation cements the 'jobs that pay' portion of the Governor's budget plan," said Secretary Manderino. "We currently serve more than 56,000 people with disabilities in the state. The infusion of state dollars allows us to not leave any federal draw-down dollars on the table and to greatly expand our employment and independent living programs," Manderino said.

MEDIA CONTACT: Sara Goulet, 717-787-7530

SOURCE Pennsylvania Department of Labor & Industry

Related Links

http://www.governor.state.pa.us