NYATEP Executive Director Testifies at 2-13-23 Human Services Budget Hearing

Below is the written testimony provided to the NYS Legislature at the Human Services Budget Hearing by Melinda Mack, NYATEP's Executive Director, on February 13, 2023. To learn more about NYATEP's 2023 Policy Priorities visit: https://www.nyatep.org/2023PolicyPriorities

Good afternoon, Chairpersons Krueger, Weinstein, Persaud, and Davila. As well as the distinguished persons of the Senate and Assembly. Thank you for allowing me the opportunity to testify. My name is Melinda Mack. I am the Executive Director of NYATEP, the statewide workforce development association representing New York’s job training, adult education, postsecondary and employment providers. NYATEP’s members serve over 1.2 million New Yorkers annually in education and employment services, and support thousands of businesses in their regions as they train and employ talent. 

I am sure as you are speaking with businesses in your districts, you are hearing – no one wants to work; and people just need to “get a job”. Over the last decade, New York’s regional labor force participation has declined nearly a full percentage point. This downward trend started well before the COVID-19 pandemic, largely driven by lower birth rates, retirements, and outmigration, and has been exacerbated by the abundance of low wage work and lack of educational attainment of our workers. In our last four annual State of the Workforce Reports, the top 10 largest occupational groups, (which make up nearly 2 million jobs) are historically dominated by occupations paying poverty-level wages. Additionally, 36% (or over 5 million New Yorkers over 25) have a high school diploma/equivalency or less.

When you take these two points – wages and lack of basic education – into consideration, it makes sense that our members have identified a major hurdle that keeps low-income New Yorkers from economic mobility. The benefits cliff.

A benefits cliff is the gradual or sudden loss of public assistance programs, often worth more than the wage increase itself, and in reality can result in the family being financially worse off. In short, it does not make financial sense to earn more money – by taking a marginally better paying job – or participate in a subsidized training opportunity, like an apprenticeship and then lose crucial sustaining cash assistance, child care or housing. Thankfully, both the Governor and Legislature have recognized the need to include income disregard legislation this year (S2144 and ELFA Article VII Bill Part X).  We are fully in support of their recommendation to establish a 6-month, 100% income disregard for New Yorkers receiving public assistance, while participating in qualified work activities or training. We believe it will increase the number of public assistance recipients who pursue employment, or subsidized education and training to get better paying jobs. 

For our economy to remain competitive we need all the underutilized workers off the sidelines and into jobs. To support these efforts, last year, Governor Hochul launched the Office of Strategic Workforce Development at ESD. In a recent press release the Governor stated, "Our new Office of Strategic Workforce Development will help reduce barriers to training and employment while supporting businesses with their workforce needs. This funding is just the beginning of our investment in developing a strong and diverse workforce for decades to come."

Since April the Office has announced $6 million in funding released to 8 projects out of the estimated $115 million set aside for grant funding. However, despite the rhetoric, this year’s Executive budget includes $0 state dollars for the grant program to fund scaling effective job training, coaching, supportive services (transportation, childcare, etc.) and employment activities. Workforce development is critical to the State’s ability to realize its economic development investments. As other State’s ramp up funding – (i.e., annual appropriations in Georgia ~$56 million; California ~$300 million; Michigan ~$40 million) New York’s workers and businesses – will be left behind.

As you know, skills training is critical to ensuring that we have Plumbers, Mechanics, and Electricians, but it’s also about growing industries like IT, Semiconductors, Clean Energy and Advanced Manufacturing that provide the type of good paying jobs we need more of. Flexible dollars, allow workforce programs to train and advance New Yorkers who have been systematically excluded from economic mobility, into quality, high wage jobs. Every New Yorker who wants to work and have a good job should be able to.

To that end:

• We urge the Governor and the Legislature to restore the $115 million in grants that provide much needed flexible funding into the workforce system.
• Workforce development is economic development and without the workforce to fill the open current jobs and future jobs; our massive investments in economic growth will be for naught.
• We need to remove policy barriers that make it difficult for poor New Yorkers to access training and good jobs. NYATEP strongly supports the Governor’s and Legislature’s recommendation to establish a 6-month, 100% income disregard for New Yorkers receiving public assistance, while participating in qualified work activities, training or subsidized employment.

I am happy to take any of your questions or to meet with you separately to discuss the issues raised.

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