Agenda Item 6
October 13,2015
Public Hearing/Action
MEMORANDUM
October 9,2015
TO:
FROM:
County Council
Robert H. Drummer, Senior Legislative Attorney
M
/' \
SUBJECT:
Public Hearing/Action:
Expedited Bill 40-15, Economic Development ­
Workforce Development - Amendments
Planning, Housing,
&
Economic Development Committee recommendation:
the Committee
did not meet to discuss Bill 40-15 after its introduction.
Expedited Bill 40-15, Economic Development - Workforce Development - Amendments,
sponsored by Lead Sponsor Council President on behalf of the County Executive, was introduced
on September 29, 2015. Action is tentatively scheduled immediately following the hearing.
Bill 25-15, Economic Development Reorganization - Montgomery County Economic
Development Corporation, signed into law on July 7, will abolish the Department of Economic
Development and authorize the Council to designate a non-profit corporation to serve as the
County's lead economic development organization. However, the designated economic
development organization will not assume the workforce development programs operating out of
the Department of Economic Development. Bill 40-15 would authorize the Council to designate
a separate non-profit corporation as the County's workforce development organization and assign
certain duties to that workforce development organization. The Executive explained his goals for
the Bill in his transmittal memorandum at ©17.
Assistant CAO Thomas Street briefed the Planning, Housing,
&
Economic Development
(PHED) Committee on the Executive's plan for workforce development on July 27,2015.
1
The
Committee agreed with the plan in concept and the 1)eed for legislation authorizing the Council to
designate a non-profit corporation to implement workforce development policies. The PRED
Committee did not meet to discuss Bill 40-15 after it was introduced, but the Bill is consistent with
the Executive's plan for workforce development discussed with the Committee on July 27.
1
The
packet for the July 27 PHED meeting can be found at:
http://www.montgo merycou ntym d. gov
I
cou ncil/Reso urees/Files/agenda/cm/2015/1507 27/2015072 7 PHE 03. pdf
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OMB estimates that the Bill would have no fiscal impact on the County because the
$4,407,517 already appropriated by the Council for workforce development within the
appropriation for the Department of Econornic Development would
be
sufficient to cover the costs
for the non-profit corporation for this year. See ©
I
o.
Finance estimates that the Bill would have
a positive impact on the County's economy through focused implementation of the County's
workforce development policies by the designated non-profit corporation. See
©12.
This packet contains:
Expedited Bill 40-15
Legislative Request Report
Fiscal and Economic Impact statement
Executive's Transmittal Memorandum
F;\LAW\BILLS\1540 Workforce Development\PH-Action Memo.Docx
Circle #
1
9
10
17
2
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Expedited Bill No.
40-15
Conceming: Economic Development ­
Workforce
Development
Amendments
Revised: September 25, 2015 Draft No.§
Introduced:
September 29,2015
Expires:
March 29, 2017
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ __
Sunset Date: _ _ _ _ _ _ __
Ch.
~!
Laws of Mont. Co.
[Year]
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Council President at the Request of the County Executive
AN EXPEDITED ACT
to:
(1)
(2)
(3)
authorize the Council to designate a non-profit corpomtion as the County's workforce
development organization;
assign certain duties to that workforce development organization; and
generally amend the economic development laws.
By amending
Montgomery County Code
Chapter 30B, Economic Development Corpomtion
Sections 30B-l, 30B-2, and 30B-4
By adding
Montgomery County Code
Chapter 30B, Economic Development Corporation
Sections 30B-8, 30B-9, 30B-1O, 30B-ll, 30B-12, 30B-13, and 30B-14
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface bracketsD
* * *
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing
law
by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unqffected by bill.
The County Council for Montgomery County, Maryland approves thefollowing Act:
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ExPEDITED BILL
No. 40-15
1
2
Sec 1. Sections 30B-1, 30B-2 and 30B-4 are amended as follows:
Chapter 30B Economic Development [Corporation].
Article I. Economic Development Corporation
30B-1. Policy objectives.
3
4
5
6
*
30B-2. Designation.
*
*
7
8
9
(a) The County Council must designate, by resolution approved by the
County Executive, a single nonprofit corporation which complies with
all the requirements and criteria of this [Chapter] Article as the
Montgomery County Economic Development Corporation. If the
Executive disapproves the resolution within 10 days after receiving it,
the Council may readopt the resolution with at least 6 affirmative votes.
(b) To continue to qualify as the County's Business Economic
Development Corporation, the Corporation's articles of incorporation
and bylaws must comply with all requirements ofthis [Chapter] Article.
10
11
12
13
14
15
16
*
30B-4. Status; incorporation; bylaws.
*
*
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18
19
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22
(a) To qualify as the County's Economic Development Corporation, the
Corporation's articles of incorporation must provide for the
appointment ofthe members of its board of directors as set forth in this
[Chapter] Article. The articles of incorporation must also provide that
the Corporation is:
23
24
*
*
*
(b) The Corporation's bylaws may contain any provision necessary to
govern and manage the Corporation that does not conflict with this
[Chapter] Article. The Corporation may exercise all powers and is
subject to all requirements which apply to non-stock corporations under
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aevelopment\biIl5.docx
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ExPEDITED BILL
No. 40-15
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33
the Corporations and Associations Article ofthe Maryland Code.
*
14 are added as follows:
*
*
Sec 2. Sections 30B-8, 30B-9, 30B-10, 30B-11, 30B-12, 30B-13, and 30B­
Article II. Workforce Development
30B-8. Policy objectives.
34
35
36
W
The success of Montgomery County's economic development goals is
dependent upon
~
comprehensive and demand-driven system of
workforce development that:
37
38
39
40
ill
ill
ill
(Q)
meets the talent attraction, development, and retention needs of
strategic industries;
meets the needs of the underemployed and unemployed; and
develops career pathways that lead to sustainable wage jobs to
support
~
thriving economy.
41
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50
To achieve these goals, the County Government may designate
f!
nonprofit corporation as the County's Workforce Development
Corporation to implement the County's workforce development
policies established
Qy
the Workforce Development Board.
30B-9. Desie;nation.
W
The Council must designate,
Qy
resolution approved
Qy
the Executive,
f!
single nonprofit corporation which complies with all requirements of
this Article as the County's Workforce Development Corporation. If
the Executive disapproves the resolution within 10 days after receiving
51
52
53
54
.it.
the Council
votes.
may readopt the resolution with at least
.Q
affirmative
(Q)
To continue to qualify as the County's Workforce Development
Corporation, the Corporation's articles of incorporation and bylaws
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(0
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ExPEDITED BILL
No.
40-15
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must comply with all requirements of this Article.
!£)
Any designation under this Section expires at the end of the
fifth
full
fiscal year after the resolution is adopted unless the Council extends the
designation
Qy
adopting another resolution under this Section.
@
The Council at any time may suspend or revoke the designation of
~
corporation as the County's Workforce Development Corporation
Qy
resolution, adopted after at least.li days public notice that is approved
Qy
the Executive, or, if the Executive disapproves the resolution within
10 days after receiving
Councilmembers.
60
61
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it
is readopted
Qy
~
vote of at least
Q
64
65
30B-tO. Board
of Directors.
66
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ill
The president of the Workforce Development Corporation must serve
as the executive director of the County's Workforce Development
Board and the staff of the Workforce Development Corporation must
also staff the County's Workforce Development Board.
69
70
(Q)
Each voting member must be either
~
resident of the County or
~
senior
manager in
~
for-profit or nonprofit entity that has
~
significant presence
in the County.
71
72
73
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75
76
77
!£)
A member must not be paid for service on the Board, but may be
reimbursed for necessary travel expenses.
@
A member is not subiect to Chapter 19A because of serving on the
Board. The Workforce Development Corporation's bylaws must
protect against any conflict of interest or similar impropriety
Qy
members of the Board of Directors or the Executive Director or any
other employees. The bylaws must include:
78
79
80
81
ill
ill
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prohibition
~
provision
against self-dealing and collusive practices;
for the disclosure of
~
financial or similar interest of
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ExPEDITED BILL
No. 40-15
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any person in any matter before the corporation that would create
£!
conflict of interest;
ill
~
provision establishing conditions under which
~
person is
disqualified from participating in decisions or other actions in
which there is
£!
conflict between the person's official duties and
private interests;
ill
ill
appropriate remedies for
~
violation of the bylaws, including
removal or termination; and
~
90
91
policy to protect whistleblowers.
UU
Notwithstanding any inconsistent provision of County Code Section
19A-21,
~
member of the Board of Directors or
~
staff member of the
Workforce Development Corporation who engages in legislative,
administrative, or executive advocacy as part of that person's duties is
not required to register as
because ofthat advocacy.
~
92
93
94
95
96
lobbyist under Article V of Chapter 19A
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101
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108
ill
The Board must direct the program, management, and finances of the
Workforce Development Corporation.
30B-II. Status; incorporation; bylaws.
.cru
To qualify as the County's Workforce Development Corporation, the
Corporation's articles of incorporation must provide that the
Corporation is:
ill
~
Maryland nonprofit, non-stock corporation, the purposes and
activities of which are limited to those that are permitted to be
promoted or performed
Qy
~
corporation that is recognized as
exempt from federal income
tax
under 26 U.S.C .
.§.
501, as
amended;
ill
not an instrumentality of the County;
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ExPEDITED BILL
No. 40-15
109
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ill
incorporated for the purpose of serving as the County's
Workforce Development Corporation and implementing the
County's workforce development policies, as established
Qy
the
Workforce Development Board;
ill
ill
(b)
organized and operated under the laws of the State of Maryland;
and
headquartered in the County.
The Workforce Development Corporation's bylaws may contain any
provision necessary to govern and manage the Corporation that does
not conflict with this Article. The Corporation may exercise all powers
and is subject to all requirements which apply to non-stock corporations
under the Corporations and Associations Article ofthe Maryland Code.
30B-12. Workforce development program.
(ill
The Workforce Development Corporation's Board of Directors must
recommend workforce
development programs and
associated
performance measures to the Executive, Council, and Workforce
Development Board each year to advance the policy objectives listed
in Section 30B-8.
(hl
The Workforce Development Corporation's workforce development
programs may include
f!
plan for sponsorship of private investment,
marketing, and advocacy initiatives.
(£)
The Workforce Development Corporation's Board and staffmust meet
with the Executive, the Council, and the Workforce Development
Board at least annually regarding the Workforce Development
Corporation's activities and finances.
30B-13. Staff; support from County Government.
(ill
The Office ofManagement and Budget, the Department ofFinance, and
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EXPEDITED BILL
No. 40-15
136
137
138
other departments ofCounty government and County-funded agencies,
if the Workforce Development Corporation's Board of Directors
requests, should provide relevant economic data to the Corporation.
The research division of the County Planning Board must provide
research support to the Corporation to the extent approved
12y
the
Council as part of the Planning Board's work program.
139
140
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148
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150
(Q)
The Workforce Development Corporation may raise public and private
funds and may accept services from any source consistent with its
purposes.
W
The Workforce Development Corporation must:
ill
make public data sets available on the web to:
CA)
.@)
improve public knowledge of the Corporation and its
operations;
further its mission; or
increase its accountability and responsiveness; and
{£}
151
152
ill
provide the Executive, the Council, and the Workforce
Development Board, upon request, all non-confidential data
produced and received
Qy
the Corporation, including research,
economic data, and minutes of Board meetings.
153
154
155
30B-14. Report.
156
157
158
The Workforce Development Corporation's Board of Directors must report
annually on the activities and finances of the Corporation and provide an audited
financial statement of the Corporation to the Executive, the Council, and the
Workforce Development Board
12y
November
1
of each year. The report must also
include the Corporation's plan to solicit and receive additional public and private
funding for its operations.
Sec. 3.
Expedited Effective Date.
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ExPEDITED BILL
No. 40-15
163
164
165
The Council declares that this legislation is necessary for the immediate
protection ofthe public interest. This Act takes effect on the date on which it becomes
law.
Approved:
166
167
George Leventhal, President, County Council
168
Approved:
Date
169
Isiah Leggett, County Executive
170
This is a correct copy ofCouncil action.
Date
171
Linda M. Lauer, Clerk ofthe Council
Date
~8-
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LEGISLATIVE REQUEST REPORT
Expedited Bill 40-15
Economic Development
-
Workforce Development
-
Amendments
DESCRIPTION:
The
Bill
would authorize the Council to designate a non-profit
corporation to serve as the County's workforce development
organization, assigns certain duties to that workforce development
organization and amends the economic development laws ..
PROBLEM:
Outside of the grant review process, County law does not presently
provide a formal mechanism for the Council and Executive to
designate a non-profit corporation as the County's workforce
development organization.
Increase the effectiveness of the County's workforce development
programs through the use of a non-profit corporation.
GOALSAND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
The Office of the County Executive.
None.
The creation of a non-profit corporation as the County's workforce
development organization would have a positive effect on employment
and personal income. The goals of the non-profit corporation would
develop a comprehensive and demand-driven system of workforce
deVelopment. Therefore with that goal,
Bill
##-15 would qualitatively
have a positive impact on employment and personal income.
To be requested.
To
be
requested.
Edward Lattner, Office ofthe County Executive
Not applicable.
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITIDN
MUNICIP ALITIES:
PENALTIES:
N/A
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Fiscal Impact Statement
Council Bill XX-IS
&
Economic Development - Workforce Amendments
1. Legislative Summary.
Bill XX-IS authorizes the Council to designate a non-profit corporation as the County's
workforce development organization.
2.
An
estimate of changes in County revenues and expenditures regardless of whether the revenues
or expenditures are assumed in the recommended or approved budget. Includes source of
infonnation, assumptions, and methodologies used.
The legislation does not have a fiscal impact on the County. The County Council appropriated
$4,407,517 within the Department of Economic Development for workforce development
programs in FYI6.
It
is assumed that available unspent funds will
be
provided to the designated
Workforce Development Corporation up to the original appropriation for no net impact on the
County's budget. After FYI6, County funding of the designated Workforce Development
Corporation will be detennined through the annual budget process.
3. Revenue and expenditure estimates covering at least the next 6 fiscal years.
See #2 above. Revenues and expenditures for the following five years will
be
detennined
through the annual budget process.
4.
An
actuarial analysis through the entire amortization period for each bill that would affect
retiree pension or group insurance costs.
The legislation doesn't affect the County's pension or group insurance programs.
5.
An
estimate of expenditures related to County's infonnation technology (IT) systems, including
Enterprise Resource Planning (ERP) systems.
Not applicable for purposes of Bill XX
~
15, as the
non~profit
organization will use a private or
commercial IT system.
6. Later actions that may affect future revenue and expenditures if the bill authorizes future
spending.
Bill XX-IS does not authorize future spending.
7.
An
estimate of the staff time needed to implement the bilL
Staff time from the County Attorney's Office (CAO), Department of Economic Development,
Office of Management and Budget (OMB), and the County Executive's office (CEX) will be
needed to transfer legal and fiscal responsibilities to the
non~profit
corporation. It is assumed
that staff would require a total of approximately 100 hours to implement Bill XX-IS by the end
of 20 IS, including four hours per week from DED and one hour per week from CAO, OMB,
and CEX respectively.
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Three ofthe current DED's Workforce Services Division
staff
will be needed for the next
three
to
six months
to
ensure successful transfer ofprograms and services to
the
non-profit
organization.
This
staffwi11
also
work with
the
State
to
ensure
that
Federal and State
funds
are
transferred
to
the non-profit corporation and the close out of State and Federal
grants
is
undertaken.
8.
An
explanation of how the addition of new staff responsibilities would affect other duties.
Not applicable.
9.
An
estimate of c9sts when an additional appropriation is needed.
As
explained
in
#3, an additional appropriation is not needed to implement the bill. Future
funding
of the designated organization
will
be
detennined
through
the annual budget process.
10. A description of any variable that could affect revenue and cost estimates.
Not applicable.
11. Ranges ofrevenue or expenditures that are uncertain or difficult
to
project
Not applicable.
12.
If
a bill is likely
to
have no
fiscal
impact, why that
is
the case.
See #2 and #3 above.
13. Other
fiscal
impacts or comments.
None
14. The following contributed to and concurred with this analysis:
Peter Bang, Chief Operating Officer, Department of Economic Development
Barbara Kaufinann. Division Chief of Workforce Services, Department of Economic
Development
Pofen
S~em,
Office ofManagement and Budget
Date
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Economic Impact Statement
Bill ###-15, Economic Development - Workforce Development - Amendments
Background:
This legislation would:
• authorize the County Council to designate a non-profit corporation as the
County's workforce development organization;
• assign certain duties to that workforce development organization; and
• generally amend the economic development law.
The Bill ##-15 amends Chapter 30B Economic Development Corporation by adding
Sections
30B-8, 30B-9, 30B-lO, 30B-ll, 30B-12, 30B-13, and 30B-14. This economic
impact statement addresses Section 30B-8{a) under Policy Objectives. The amended
'
language in that section reads:
"The success of Montgomery County's economic development goals is dependent upon a
comprehensive and
demand-driven system worliforce development
that:
• meets the talent attraction, development, and retention needs of strategic
industries;
• meets the needs of the
underemployed and unemployed;
and
• develops career pathways that lead
to
sustainable wage jobs to, support a thriving
economy."
1.
The sources of information, assumptions, and methodologies
used.
The sources of information used in the development of the economic impact statement
are as follows:
• Maryland Department of Labor, Licensing and Regulation;
• Montgomery County Department of Economic Development - Workforce
Investment Board;
• Bureau of Labor Statistics, U.S. Department of Labor;
• "Bridging the Gap", The Urban Institute, May 2015.
• Andrew Sum and Ishwar Khatiwada, "The Nation's underemployed
in
the 'Great
Recession' of2007-09,"
Monthly Labor Review,
U.S. Department of Labor,
November20lO;
,
,
• Robert P. Giloth, "Learning From the Field: Economic Growth and Workforce
Development
in
the 1990s",
Economic Development Quarterly,
Vol. 14, No.4,
November 2000.
Because of the various sources ofinformation, data presented
in
this economic impact
statement are specific to the nation, the State of Maryland. or Montgomery County. This
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Economic Impact Statement
Bill
##-15, Economic Development - Workforce Development - Amendments
section ofthe economic impact statement
will
present and discuss certain aspects ofthe
underemployed based on the sources cited above.
According to the study entitled "Bridging the Gap", the Urban Institute states that "there
is no national estimate of the number of
low~income
parents who want or
need
workforce
development programs. However, a review of the national
data
suggests the following
key points:
• Of the 2
~
million parents who are low income, almost three out of five (58
percent) have low education levels (a
high~school
credential or less);
• Only about 1 in 10 low-income parents reports being enrolled in some form of
education and t.rainiD.g. A significant portion (about half) of low-income parents
in education and training also work; and
• Whether looking at national
data
or
data
from specific workforce development
programs, parents are underrepresented among low-income individuals in
education and training.
The
study also
states
"overall,
the
national
data
paint a picture ofa large population of
low-income parents who would likely benefit from workforce development programs, but
the data also suggest
that
these parents may
face
challenges related
to
child care that
could create barriers to their
ability
to access or succeed in these programs."
While the Urban Institute states that there is no national e:;timate oflow-income parents
who want or need workforce development programs, the article in the
Monthly Labor
Review
cited above, reports that during the October-November 2007 period there were
approximately 4,201,000 underemployed nationally.
As
the country entered the Great
Recession, that figure increased to 7,217,333 during the October-November 2008 period
and increased
to
8,907,333 during the October-November.2009 period.
The article also presented evidence regarding which workers were adversely affected the
most by the increase in the underemployment during
this
period and which occupational
jobs experienced high underemployment rates. Regarding race and age cohorts, the
authors report that "workers in nearly every, major age group and racial or ethnic group ,
saw their underemployment rates more
than
double during this period." Young adults
between the ages of20 and 24 years
and
teenagers
between
the ages or 16
and
19 years
had
the highest rates ofunderemployment With nearly 11 percent for 20 and 24-year-oIds.
Underemployment rates were lowest among Asians (4.7%), and White non-Hispanics
(5.2%). Those rates rose to 7.5 percent for Black non-Hispanics workers and peaked at
12.0 percent for Hispanics.
The study also reported its findings on the underemployment rates by occupational
groups With the highest rate (highest tier) that
was
among the following groups:
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Economic Impact Statement
Bill ##-15, Economic Development - Workforce Development - Amendments
Transportation and material moving,
Farm, fishing, and forestry,
Low level sales;
Personal care;
Building and grounds cleaners;
Food preparation and serving; and
Construction and extraction.
The groups with the "modest" (i.e., lower rates than the highest tier) rate of
underemployment were:
Community and social service;
Health
care
practitioners
and
technicians;
Education, training,
~d
library;
High-level sales;
Installation, maintenance, and repair;
Office and administrative support;
FToduction;
,
Security/crossing guard;
Health care support; and
Arts,
design, and entertainment.
Finally the underemployment rates among employed workers were highest among high
school dropouts and high school graduates.
Another aspect of workforce development training is the concept of
workforce
development.
According to Robert
P.
Giloth in "Learning From the Field: Economic
Growth and Workforce Development in the 1990s", the term workforce development
"implies more than employment training in the narrow sense.
It
means substantial
employer engagement, deep community connections, career advancement, integrative
human service supports, contextual and industry-driving education and training, and
networks." However, workforce development becomes complex when applied to
different sets ofemployers and jobseekers. Giloth contrasts workforce development into
two categories: employer-linked or sectoral-linked workforce initiatives versus place­
based or community/resident-focusedjob initiatives. The first category focuses on the
demand side that emphasizes employer-or market-driven strategies. Sector-based
practitioners
begin
where the good jobs are located and then work backward to creating
"connections to low-income communities and skill-building pathways." These jobs
represent distinct occupations
in
a group of
firms
that share markets, technologies, or
suppliers. The added section, Section 30B-8(a), to Chapter 30B in Bill ##-15 is a sector­
based initiative to workforce development in Montgomery County.
Based on data from the Bureau of Labor Statistics, U.S. Department ofLabor, the
incidence rate among the underemployed in the State ofMaryland increased from 1.9
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Economic Impact Statement
Bill
##-15, Economic Development - Workforce Development - Amendments
:
;
percent in 2007 to 3.5 percent in 2014. The incidence rate is the difference in the
unemployment rate for persons who are marginally attached to the labor
fo~
(total
unemployed
and
discouraged workers) and those who are marginally attached plus
involuntary part-time workers. Since the Great Recession, that difference, or incidence
rate, increased from 1.9 percent in 2007 to peaks ofbetween 3.8 and 4.0 percent in 2009­
2011. Since that time, the rate decreased to 3.5 percent above the pre-recession level.
Therefore, based on the BLS Calctilations, underemployment remains high at the State
level. However, there are no comparable
d.a:ta
for Montgomery County.
Private-sector employment in Montgomery County experienced a decrease from calendar
year 2007 to calendar year 2014. According to data from the Maryland Department of
Labor, Licensing and Regulation from the Quarterly Census ofEmployment and
Earnings (QCEW}database, total private-sector employment declined from 380,492 in
2007 to 365,763, or nearly 15,000, by 2014. Ofthe ten industrial sectors, only three
experienced an increase: education and health services, leisure
and
hospitality, and other
services. Seven sectors in the service-providing group (91
%
oftotal private-sector
employment) experienced declines in 2014 with the greatest declines occurring
in
financial activities U5,331); trade, transportation, and utilities U4,807),
and
professional
and business services
U
4,407). Therefore, the highest rates of underemployment in
Montgomery County may occur is these three sectors.
Finally, the
Monthly Labor Review
article discusses the incidenceof underemployed
based on education. The article reports that the highest incidence at the national level is
among high school dropouts and high school graduates. According to data provided by
the Office of Management
and
Budget and obtained from reports from the Montgomery
County Public Schools, the graduation rate
in
the County declined from 91.6 percent
'during the 2006-2007 school year to 89.7 percent during the 2014·2015 school year. This
cohort ofMontgomery County residents would represent a high
risk
ofnot only
unemployment but underemployment.
Data provided
by
DED
and
the
Co~ty
Executive's Six Point Economic Plan identified
key
industrial sectors
and
occupational categories for workforce development targets.
The industrial sectors identified are bioscience; infonnation technology, and
cybersecurity; financial services; arts and hospitality; and corporate and regional
headquarters, and health services.
The County's Workforce Investment Board
(WIB)
identified eight key occupational
categories that include healthcare support occupations; health care practitioners and
technical occupations; computer and mathematical occupations (including cybersecurity);
life, physical, and socW science occupations; office and administrative support
occupations; management occupations; food preparation and service related occupations;
and first-line supervisors of food preparation workers. Based on data provided by WIB,
these eight occupations are projected to grow between 13.0 percent (management
occupations) and 27.4 percent (computer and mathematical occupations) from CY2010 to
CY2020.
"
Page 4 of5
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Economic Impact Statement
Bill ##-15,
Economic Development - Workforce Development - Amendments
2. A description of any variable that could affect the economic impact estimates.
The variables that could affect the economic impact estimates are the employment
opportunities available in those industry sectors that experienced a decline since
2007
and
the change in the graduation rate among
high
school students.
3.
The
Bill's
positive or negative effect,
if
any on employment, spending, savings,
investment, incomes, and property values
in
the County.
The creation of a non-profit corporation
as
the County's workforce development
organization would have a positive effect on employment and personal income. The
goals of the non-profit corporation would develop a comprehensive and demand-driven
system ofworkforce development. Therefore with that goal,
Bill
##-15 would
qualitatively have a positive impact on employment and
personal
income.
4.
If
a
Bill
is likely
to
have no economic impact, why is that the ease?
Please
see
paragraph
#3.
5.
The following contributed to or concurred with this analysis: David Platt and Rob
Hagedoom, Finance.
~?L1-~
Department of Finance
Date
Page 5 of5
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OFFICE OF THE COUNTY EXECUTIVE
ROCKVILLE, MARYLAND
208S0
Isiah Leggett
County Executive
MEMORANDUM
September 22, 20 IS
TO:
George Leventhal, President
County Council
Isiah Leggett, County Executive -
Expedited Bill xx-IS, Economic Develo ment- Workforce Development­
Amendments
FROM:
SUBJECT:
I am attaching for Council introduction proposed legislation to replace the
County's Department of Economic Development's Division of Workforce Services with a non­
profit corporation that will be responsible for implementing the policies of the County's
Workforce Development Board. To achieve this I am recommending the following amendments
to Montgomery County Code, Chapter 30B, Economic Development Corporation by adding
Sections 30B-2 and 30B-4 and adding Sections 30B-8, 30B-9, 30B-1O, 30B-11, 30B-12, 30B­
13, and 30B-14. The proposed amendments authorize the Council, by resolution approved by
the County Executive, to designate a non-profit corporation as the County's workforce
development organization, assign certain duties to that workforce development organization, and
amend the economic development laws.
I made a decision to privatize the workforce development programs and
activities based on input from key stakeholders including businesses, the non-profit
community, and County educational institutions, and by looking at successful workforce
development organizational models in other jurisdictions. This is part of a larger effort to
improve Montgomery County's economic competitiveness and better meet the workforce
needs of our strategic industries as well as those of the unemployed and underemployed.
The envisioned system will work closely with the County's new Economic Development
Corporation, 'and will use the County's comprehensive economic strategy as an important
tool to guide workforce development programs and activities.
My staff stands ready to work with the Council on this important legislation,
which I urge
~e
Council to enact in the near future.
ILlts
montgomerycountymd.gov/311
.
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240-773-3556 TTY