Agenda Item 9B
September 29, 201S
Introduction
MEMORANDUM
September 25, 2015
TO:
FROM:
County Council
Robert H. Drummer, Senior Legislative Attorney
~
Workforce
SUBJECT:
Introduction:
Expedited Bill 40-15, Economic Development
Development - Amendments
Expedited Bill40-1S, Economic Development - Workforce Development Amendments,
sponsored by Lead Sponsor Council President on behalf of the County Executive, is scheduled to
be introduced on September 29, 20 IS. A public hearing followed by action is tentatively scheduled
for October 13, 201S at 1:30 p.m.
Bill 2S-1S, 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. Bill40-1S 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 ©18.
This packet contains:
Expedited Bill 40-1S
Legislative Request Report
Fiscal and Economic Impact statement
Executive's Transmittal Memorandum
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Expedited Bill No.
40-15
Concerning: 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.
...IttL..,
Laws of Mont Co.
[Year]
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Council President at the Request ofthe County Executive
AN EXPEDITED ACT
to:
(1)
authorize the Council to designate a non-profit corporation as the County's workforce
development organization;
(2)
assign certain duties to that workforce development organization; and
(3)
generally amend the economic development laws.
By amending
Montgomery County Code
Chapter 30B, Economic Development Corporation
Sections 30B-I, 30B-2, and 30B-4
By adding
Montgomery County Code
Chapter 30B, Economic Development Corporation
Sections 30B-8, 30B-9, 30B-1O, 30B-11, 30B-12, 30B-B, and 30B-I4
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
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, Mary/and approves the following Act:
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EXPEDITED BILL No.
40-15
1
Sec 1. Sections 30B-l, 30B-2 and 30B-4 are amended as follows:
Chapter 30B Economic Development [Corporation].
Article I. Economic Development Corporation
30B-l. Policy objectives.
2
3
4
5
6
*
30B-2. Designation.
*
*
7
(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.
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*
30B-4. Status; incorporation; bylaws.
*
*
(a)
To qualify as the County's Economic Development Corporation, the
Corporation's articles of incorporation must provide for the
appointment of the members of its board of directors as set forth in this
[Chapter] Article. The articles of incorporation must also provide that
the Corporation is:
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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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exPEDITED BILL
No. 40-15
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the Corporations and Associations Article of the Maryland Code.
*
14 are added as follows:
*
*
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31
Sec 2. Sections 30B-8, 30B-9, 30B-10, 30B-11, 30B-12, 30B-13, and 30B­
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Article II. Workforce Development
30B-8. Policy objectives.
W
The success of Montgomery County's economic development goals is
dependent upon !! comprehensive and demand-driven system of
workforce development that:
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ill
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ill
{hl
meets the talent attraction, development, and retention needs of
strategic industries;
meets the needs ofthe underemployed and unemployed; and
develops career pathways that lead to sustainable wage jobs to
support!! thriving economy.
39
40
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To achieve these goals, the County Government may designate !!
nonprofit corporation as the County's Workforce Development
Corporation to implement the County's workforce development
policies established
Qy
the Workforce Development Board.
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30B-9. Designation.
W
The Council must designate,
Qy
resolution approved
Qy
the Executive,
!! 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
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it.
the Council may readopt the resolution with at least
§.
affirmative
votes.
{hl
To continue to qualify as the County's Workforce Development
Corporation, the Corporation's articles of incorporation and bylaws
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ExPEDITED Bill
No. 40-15
55
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must comply with all requirements of this Article.
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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.
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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
12
days public notice that is approved
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by
the Executive, or, ifthe Executive disapproves the resolution within
10 days after receiving
Councilmembers.
30B-tO. Board
of Directors.
it.
is readopted
Qy
!! vote of at least
Q
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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.
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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.
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@
A member must not be paid for service on the Board, but may be
reimbursed for necessary travel expenses.
A member is not subject 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
by
members of the Board of Directors or the Executive Director or any
other employees. The bylaws must include:
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!! prohibition against self-dealing and collusive practices;
!! provision 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;
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provision establishing conditions under which
~
person is
disqualified from participating in decisions or other actions in
which there is
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conflict between the person's official duties and
private interests;
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appropriate remedies for
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violation of the bylaws, including
removal or termination; and
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policy to
protect whistleblowers.
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 of that advocacy.
~
lobbyist under Article V of Chapter 19A
ill
The Board must direct the program, management, and finances of the
Workforce Development Corporation.
30B-tt.
Status; incorporation; bylaws.
ill
To qualify as the County's Workforce Development Corporation, the
Corporation's articles of incorporation must provide that the
Corporation is:
ill
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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
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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;
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ill
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(b)
organized and operated under the laws ofthe State of Maryland;
and
headquartered in the County.
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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 subj ect to all requirements which apply to non-stock corporations
under the Corporations and Associations Article ofthe Maryland Code.
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30B-12. Workforce development program.
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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-S.
(Q)
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The Workforce Development Corporation's workforce development
programs may include
~
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plan for sponsorship of private investment,
marketing, and advocacy initiatives.
(£}
The Workforce Development Corporation's Board and staff must 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.
W
The Office ofManagement and Budget, the Department ofFinance, and
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ExPEDITED BILL
No. 40-15
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other departments of County 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 .by the
Council as part of the Planning Board's work program.
®
The Workforce Development Corporation may raise public and private
funds and may accept services from any source consistent with its
purposes.
(£1
The Workforce Development Corporation must:
ill
make public data sets available on the web to:
(A)
improve public knowledge of the Corporation and its
operations;
ill.)
further its mission; or
increase its accountability and responsiveness; and
©
ill
provide the Executive, the Council, and the Workforce
Development Board, upon request, all non-confidential data
produced and received by the Corporation, including research,
economic data, and minutes ofBoard meetings.
30B-14. Report.
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.by 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
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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
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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
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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.
GOALS AND
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
WITmN
MUNICIPALITIES:
®
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PENALTIES:
N/A
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·1
Fiscal
Impact Statement
Council Bill XX-IS
&
Economic Development - Workforce Amendments
1. Legislative Summary.
Bill XX-15 authorizes the Council
to
designate a non-profit corporation as the County's
workforce development organization.
2.
An
estimate ofchanges in County revenues and exp<mditures regardless of whether the revenues
or expenditures are assumed in the recommended or approved budget. Includes source of
information, assumptions, and methodologies used. .
The legislation does not have a fiscal impact on
the
County. The County Council appropriated
$4,407.517 within the Deparbnent ofEconomic 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 ofthe designated Workforce Development
Corporation will
be
determined
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 determined
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 information technology
(IT)
systems, including
Enterprise Resource Planning
(ERP)
systems.
Not applicable for purposes of Bill XX-IS, 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), Deparbnent ofEconomic 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-15 by the end
of2015, including four hours per week from DED and one hour per week from CAO, OMB,
and CEX respectively.
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.
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Three of the current DED's Workforce Services Division staffwill be needed for the next three
to six months to ensure successful transfer ofprograms and services to the non-profit
organization.
This
staffwill
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 ofhow the addition of new staff responsibilities would affect other duties.
Not applicable.
9.
An
estimate of costs 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
determined
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 -ofWorkforce Services, Department of Economic
Development
Pofen
S~e~
Office ofManagement and Budget
Date
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Economic Impact Statement
Bill
##-]
5, Economic Development - Workforce Development - Amendments
Background:
1bis 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-10, 30B-11, 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 workforce 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 ofinformation
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,
November 2010;
.
• 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 of infonnation, data presented
in
this economic impact
statement are specific to the nation, the State ofMaryland, or Montgomery County. 1bis
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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 of the
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 ofthe number oflow-income parents who want or need workforce
development programs. However, a review ofthe national data suggests the following
key points:
• Ofthe 21 million parents who are low income, almost
three
out offive (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 training. A significant portion (about
half)
ofloW'-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- llU\ior 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 of 16 and 19 years
had the highest rates of underemployment with nearly 11 percent for 20 and 24-year-olds.
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:
L
,
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Economic Impact Statement
Bill ##-15, Economic Development - Workforce Development - Amendments
Transportation and material moving,
Fann, 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, and library;
High-level sales;
Installation, maintenance, and repair;
Office and administrative support; "
Production;
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 cOImections, 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 of employers and jobseekers. Giloth contrasts workforce development
into
two categories: employer-linked or sectoral-linked workforce initiatives versus place-"
based or community/resident-focused job 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 of Labor, the
incidence rate among the underemployed in the State of Maryland increased from 1.9
Page 3 of5
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.
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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 BLScalctilations, underemployment remains
high
at the State
leveL However, there
are
no comparable data: 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 (QC]:!W).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 (!5,331); trade, transportation, and utilities (!4,807), and professional
and business services (t4,407). Therefore, the highest rates ofunderemployment in
Montgomery County may occur is these three sectors.
Finally, the
Monthly Labor Review
article discusses the incidence of 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 of Montgomery County residents would represent a
high
risk
ofnot only
unemployment but underemployment.
Data provided
by
DED and the
Co~ty
Executive's Six
P~int
Economic
Plan identified
.!
key industrial sectors and occupational categories for workforce development targets.
The industrial sectors identified are bioscience; information 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
SOCllu
science occupations; office and administrative support
occupations; management occupations; food preparanonand service related occupations;
and fust-line supervisors offood 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 ofS
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. I
! :..
• '"
• .C.··
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 ofa non-profit corporation as the County's workforce development
organization would have a positive effect on employment and personal income. The
goals ofthe 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.
4.
If
a Bill is likely to have no economic impact, why is that the case?
Please see paragraph #3.
5. The following contributed to or concurred with this analysis:
David Platt and Rob
Hagedoorn, Finance.
~~11:-
Department of Finance
Date
Page 5 of5
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OFFICE OF THE COUNTY EXECUTIVE
ROCK.VlLLE, MARYLAND 208.50
Isiah Leggett
County Executive
MEMORANDUM
September 22, 2015
TO:
FROM:
SUBJECT:
George Leventhal, President
County Council
Isiah Leggett, County Executive -
Expedited Bill xx-IS, Economic Develo ment- Workforce Development­
Amendments
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-S, 30B-9, 30B-IO, 30B-1I. 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