New Economy Workforce Credential Grant Annual Report 2023, State Council of Higher Education for Virginia
Summary
New Economy Workforce Credential Grant Annual Report FY 2023 of the State Council of Higher Education for Virginia, dated February 2024. It reports that institutions had 13,428 enrollments in FY 2023, that 12,749 completed training, and that 9,539 of the program completers went on to earn a credential. It states that the rates of completions and credentials remained relatively stable at 95% and 71% respectively. It says the average tuition paid by students was $849 and the average state cost per credential attained was $2,014. It states that, throughout the history of the program, median annual wages increased $9,350, or 38%, in the 12 months following program completion.
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State Council of Higher Education for Virginia
New Economy Workforce
Credential Grant
Annual Report 2023
February 2024
New Economy Workforce Credential Grant Annual Report FY 2023
Table of Contents
Purpose of This Report ............................................................................................................ 1
Summary of Findings for FY 2023 ......................................................................................... 1
Program Purpose ...................................................................................................................... 2
History of Funding ................................................................................................................... 2
Program Requirements and Pay-for-Performance Model ................................................. 3
High-demand Field and Training Alignment Process........................................................ 4
Training Programs Offered by Eligible Institutions............................................................ 5
Enrollment, Training and Credential Completions and Costs ............................................... 6
Training Offered in 10 High-Demand Occupational Fields .............................................. 6
Top Training Programs and Alignment to Annual Job Openings .................................... 8
Training Completion Rates Averaged 95%, while Credential Completion Rates
Averaged 71% ........................................................................................................................... 9
Participation and Completion Rates by Institution ............................................................. 9
Student Demographics .......................................................................................................... 11
Enrollment ............................................................................................................................... 11
Success ..................................................................................................................................... 12
Earnings Outcomes ................................................................................................................ 13
Methodology ........................................................................................................................... 13
Earnings Analysis ................................................................................................................... 13
Median Wages Increased in all Occupational Fields ........................................................ 14
Wages by Race and Ethnicity ............................................................................................... 15
Additional Observations and Next Steps .............................................................................. 16
Program Cap ........................................................................................................................... 16
Reimbursement Limit Raised to $4,000 Per Credential .................................................... 16
Monitoring Legislation in Congress .................................................................................... 16
Conclusion .............................................................................................................................. 18
New Economy Workforce Credential Grant Annual Report FY 2023
PURPOSE OF THIS REPORT
During the 2016 session, the General Assembly and Governor established the New Economy
Workforce Grant Program (WCG). This grant program, the first of its kind in the nation,
provides a pay-for-performance model for funding noncredit workforce training that leads to
a credential in a high-demand field. The program also includes requirements for students to
complete the program to avoid paying additional costs. A summary of the major components
of the program is included below. The establishing statutes appear in Article 4.1 of Title 23.1
of the Code of Virginia.
The purpose of this report is to provide to the General Assembly and the Virginia Board for
Workforce Development a review of FY 2023 enrollments, completions, costs and outcomes
of the New Economy Workforce Credential Grant program, as outlined in § 23.1-627.7.
Summary of Findings for FY 2023
In FY 2023, the Virginia Community College System (VCCS) and the Southern Virginia
Higher Education Center (SVHEC) offered training aligned to high-demand occupations and
fields as identified by the Virginia Board for Workforce Development (VBWD). Observations
from FY 2023 include:
o Institutions offered training in 10 high-demand occupational fields.
o Collectively, institutions reported 13,428 enrollments in FY 2023, an 9% increase
from FY 2022 and the most since the inception of the program.
o Of the 13,428 enrollments included in this report, 12,749 completed training.
Among program completers, 9,539 went on to earn a credential. The rates of
completions and credentials remained relatively stable at 95% and 71%
respectively.
o Most racial and ethnic groups share high program completion rates, but gaps exist
in credential completion: 62% of Asian American students earned their credential,
9 points below the program average of 71%. Black or African American students’
credentialing rate was 10 points below the average. Success rates by race/ethnicity
are correlational and could be explained by other factors such as program selection.
o The average tuition paid by students was $849. The average state cost per
credential attained was $2,014.
o The program with the highest enrollments was Commercial Driver’s License with
more than 22% of enrollments. Medical Assistant had the second highest
enrollments, accounting for 6% of all enrollments in FY 2022.
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New Economy Workforce Credential Grant Annual Report FY 2023
o Throughout the history of the program, median annual wages increased $9,350, or
38%, in the 12 months following program completion.
o Two-thirds of enrollments were individuals entering a postsecondary training
program in Virginia for the first time. The median age was 32 years old.
Program Purpose
As outlined by the Governor and General Assembly in § 23.1-627.2, the WCG program fulfills
three primary purposes:
The New Economy Workforce Credential Grant is established for the purpose of (i)
creating and sustaining a demand-driven supply of credentialed workers for high-
demand occupations in the Commonwealth by addressing and closing the gap
between the skills needed by workers in the Commonwealth and the skills of the
available workforce in the Commonwealth; (ii) expanding the affordability of
workforce training and credentialing; and (iii) increasing the interest of current and
future Virginia workers in technician, technologist, and trade-level positions to fill the
available and emerging jobs in the Commonwealth that require less than a bachelor's
degree but more than a high school diploma.
The program also defines two key elements:
• High-demand field: a “discipline or field in which there is a shortage of skilled workers to
fill current job vacancies or anticipated additional job openings.”
• Noncredit workforce credential: a “competency-based, industry-recognized, portable, and
third-party-validated certification or occupational license in a high-demand field.”
History of Funding
The appropriation for the Workforce Credential Grant has increased since its inception. In FY
2023, the state again appropriated $13.5 million in general fund (GF) to the WCG program.
Table 1: Historical GF Appropriations to WCG
Fiscal Year Amount
2017 $5.0 million
2018 $7.5 million
2019 $9.5 million
2020 $13.5 million
2021 $13.5 million
2022 $13.5 million
2023 $13.5 million
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New Economy Workforce Credential Grant Annual Report FY 2023
The Workforce Credential Grant Fund is non-reverting; i.e., unexpended funds from one
fiscal year are rolled into the next fiscal year. Earlier in the program’s history, appropriations
exceeded performance payments, particularly during fiscal years 2020 and 2021. Beginning in
FY 2022, annual performance payments began to exceed annual appropriations, necessitating
reliance on the accumulated balance leftover from previous years.
In FY 2023, the fund expended $19.1 million in performance payments. With the $13.5 million
appropriation and balance from previous years, the fund closed FY 2023 with a balance of
$1.3 million. The FY 2024 budget was amended to increase the fund’s appropriation by $5
million to $18.5 million total. If performance maintains its rate of increase, then the program
likely will require additional funding for FY 2025.
Program Requirements and Pay-for-Performance Model
The program entails a pay-for-performance model that provides payments for costs to
institutions, but only when an individual completes training and when an individual
completes a credential.
The requirements include:
• Eligible institutions and type of training: Eligible institutions are community colleges,
higher-education centers and Richard Bland College. The training required of these
institutions is noncredit training.
• Alignment to high-demand fields: Training programs should align with the high-demand
fields set by the Virginia Board for Workforce Development. The governing boards of the
eligible institutions are required to approve the aligned training programs.
• Payments and cost of the program: The student, the institution and the state, as described
below, share the program’s cost. In addition, the table below illustrates the pay-for-
performance model.
o Student responsibility: A student is required to pay one-third of the total cost of the
program upon enrollment. The student may use third-party funds, such as
noncredit financial aid, training vouchers or employer payment to cover this cost.
If the student does not complete the program, then the student is required to pay
an additional one-third of the cost of the program.
o State: If the student completes the training, then the state provides one-third of the
cost of the program, up to $2,000, to the institution. If the student earns and reports
a credential, then the state pays an additional one-third of the cost of the program
to the institution, up to another $2,000.
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New Economy Workforce Credential Grant Annual Report FY 2023
o Institution: If a student does not report a credential earned, then the institution
does not receive state funding for one-third of the cost of the program.
• Reporting and payments: Eligible institutions must provide student-level data to SCHEV to
receive funding.
• Administration: SCHEV is responsible for administering the program, conducting periodic
assessments of the program, collecting student data and making final decisions on
disputes between eligible institutions and grant recipients.
Table 2: Program Pay-for-Performance Model
Payment Scenario if a student… Student Pays ... State Pays Training Institution...*
… Completed training and credential 1/3 program cost 2/3 program cost*
… Completed training but did not earn
1/3 program cost 1/3 program cost*
or report credential to the training institution
… Did not complete training and did not earn
2/3 program cost No cost
or report a credential
*Maximum contribution from the state is $4,000.
High-demand Field and Training Alignment Process
Identification of High-Demand Fields
The Code of Virginia requires that the Virginia Board for Workforce Development identify
high-demand occupational fields. In 2017, the VBWD developed a methodology to identify
high-demand programs, using the following criteria:
o The relevance of the occupational group to the state’s economic development
strategy, as outlined in then-Governor McAuliffe’s New Virginia Economy strategy
document.
o Annual statewide job openings, based on Virginia Employment
Commission/Bureau of Labor Statistics’ 10-year employment projections. Jobs were
considered if they had more than 50 annual openings.
o The degree to which the occupations required advanced skills, as measured by
entry-level education.
The board also allows a region to petition to add an occupational field to the list, if that
region can demonstrate sufficient demand. A complete list of training programs offered is
provided on the Virginia Career Works website. Based on a review of the occupations meeting
the criteria above, the VBWD identified high-demand occupations in 10 fields.
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New Economy Workforce Credential Grant Annual Report FY 2023
Training Programs Offered by Eligible Institutions
Once the Virginia Board for Workforce Development identifies the high-demand fields, the
eligible institutions develop new or align existing noncredit training programs to meet the
new credential criteria, and their boards approve the new or modified programs. To date, the
Virginia Community College System, the Southern Virginia Higher Education Center and the
New College Institute (NCI) are the only eligible training institutions offering programs in the
high-demand fields.
The boards of the institutions submit their approved lists to the VBWD. A full list of high-
demand occupations and aligned training programs offered by eligible training institutions is
maintained and updated on the Virginia Career Works website.
Table 3 provides, by occupational field, a sample list of the types of training and credentials
students may attain upon completion.
Table 3: Sample Workforce Training and Certifications Offered by
Occupational Field
Occupational Field (Occupation
Number) Sample Workforce Training/Certification Offered
Computer and CompTIA A+, Network+ and Server+
Mathematical (15) Computer Entry Level (CISCO Networking Technician and Associate, CompTIA IT
Fundamentals); Information Systems Security Project Management Professional
Construction and Construction (Project Management, Carpentry, Contractor's License), Plumbing and
Extraction (47) Electrical, Highway Construction, Welding
Education, Training and Library
Career Switcher/Teaching License
(25)
Healthcare Practitioners and
Emergency Medical Technician Pharmacy, EKG Technician
Technical (29)
Healthcare Support (31) Certified Nurse Aide, Medical Assistant, Medication Aide, Phlebotomy Technician
Installation, Maintenance and
Electrical and Electrical Systems, Engine Repair, HVAC, Power Line Worker
Repair (49)
Billing and Coding Specialist, Customer Services and Sales, Medical Administrative
Office and Administrative
Assistant, Professional Coder, Society for Human Resource Management Certified
Support (43)
Professional
Backflow Prevention, Electronics Assembly (JSTD-001 Certification), Machine Tool
Operations, Manufacturing Technician 1 (MT1), Manufacturing Entry Level (specialist and
Production (51)
production technician), Mechatronics, Six Sigma, Millwright (industrial machine
installation, maintenance, troubleshooting and repair), Welding (flux, gas and general)
Transportation and Material Commercial Driver's License, Logistics Associate, Logistics Technician, Remote Pilot
Moving (53) Airman Certification
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New Economy Workforce Credential Grant Annual Report FY 2023
ENROLLMENT, TRAINING AND CREDENTIAL COMPLETIONS AND COSTS
In FY 2023, a total of 13,428 individuals were enrolled in training, 12,749 (95%) of whom
completed training. Among these enrollments, 9,539 (71%) went on to earn the credential. FY
2023 data are based on training courses that ended between July 1, 2022, and June 30, 2023.
Eligible institutions are allowed up to 180 days after the completion of training to obtain
verification that a student earned a credential. Training institutions may verify this
information through either receiving information from a student or a record match with the
entity issuing the credential.
Since its inception, the program has recorded 59,353 enrollments, 55,510 completions and
42,352 credentials or licenses. FY 2023 saw a record number of students enrolling; completing
the program; and earning their credential or license. The growth of the program is
particularly notable given that, in recent years, enrollments in for-credit academic programs
at Virginia Community Colleges have declined.
Table 4: Workforce Credential Grant Enrollments, Program Completions,
and Credentials, History of the Program
Fiscal Year Enrollments Completed Training Earned Credential
2017 5,206 4,958 3,487
2018 4,311 4,000 3,094
2019 6,983 6,570 5,098
2020 7,485 7,032 5,461
2021 9,616 8,705 6,642
2022 12,323 11,496 9,031
2023 13,428 12,749 9,539
Grand Total 59,353 55,510 42,352
Training Offered in 10 High-Demand Occupational Fields
This section provides data for FY 2023 by occupational field, credential type and institution.
The highest numbers of enrollments were in transportation, healthcare support, construction and
production; these fields accounted for three-quarters of the program. Table 5 summarizes
enrollments, completions, reported credentials, average costs to students, total payments by the
state and average costs to the state per credential attained, by occupational field.
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New Economy Workforce Credential Grant Annual Report FY 2023
Table 5: FY 2023 Data on Enrollment, Training Completion and Reported
Credentials by Occupational Field
Total State
Average State
Reported a Payments for
Completed Average Cost Payments per
Occupational Field Enrolled Credential Training and
Training to Student Credential
Attained Credential
Attained
Completion
Computer and
371 $670 $1,018,038 $2,744
Mathematical (15) 1,247 1,179
Construction and
1,934 $239 $1,047,855 $542
Extraction (47) 2,502 2,437
Education, Training, and
84 $1,330 $227,430 $2,708
Library (25) 91 87
Healthcare Practitioners
141 66 $663 $119,837 $1,816
and Technical (29) 117
Healthcare Support (31) 1,407 $923 $3,114,893 $2,214
2,239 1,979
Installation,
Maintenance, and Repair 1,208 $822 $2,242,986 $1,857
1,515 1,454
(49)
Office and Administrative
288 $982 $791,114 $2,747
Support (43) 584 529
Production (51) 975 $660 $1,492,703 $1,531
1,337 1,278
Public Administration
4 $140 $1,540 $385
(92) 10 7
Transportation and
3,202 $1,329 $9,155,674 $2,859
Material Moving (53) 3,762 3,682
All 13,428 12,749 9,539 $849 $19,212,071 $2,014
The Average Cost to Each Student was $849. The Average Per-Credential Cost to
the State was $2,014.
As shown in Table 5, the average cost of the program to a student (reflecting one-third of the
cost) was $849. SCHEV provided reimbursements to institutions through state general funds
in the amount of $19.2 million for training completions and credentials. This figure is higher
than the general fund appropriation for FY 2023 of $18.5 million. Funds were not exhausted
because the program began the year with a positive balance.
The pay-for-performance model obligates funds when a student enrolls, but funds are paid
when an institution submits reimbursement upon completion of training and earning of a
credential. And as seen in Table 4, enrollments, completions and credentials have been
growing. Also, some students who completed their program in FY 2022 went on to earn a
credential in FY 2023.
Based on the attainment data and the total payments through state general fund, the average
state payment per credential attained in FY 2023 was $2,014 (total payments/credentials
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New Economy Workforce Credential Grant Annual Report FY 2023
attained). This figure includes performance payments for students who completed the
training but not the credential.
Top Training Programs and Alignment to Annual Job Openings
While hundreds of certifications are offered in FY2023, nearly three-quarters of students
enrolled in just 10 program clusters. Four program clusters accounted for over half of
enrollments: Commercial Drivers’ License; Medical Assistant; Highway Construction; and
Phlebotomy Technicians.
This analysis de-duplicates individual records, such that one student pursuing, for example,
multiple road construction certifications is not counted more than once, as that individual
would fill only a single job opening.
In comparing enrollments in these programs to the annual job openings provided by the
Virginia Employment Commission (VEC), the certifications appear to meet an annual need.
For example, the VEC projects annual openings for truck drivers to be about 5,907. In FY
2022, about 3,101 individuals enrolled in the credential program to attain a Commercial
Driver’s License. Similarly, the VEC projects annual openings for medical assistants to be
2,093, while 773 students enrolled in Medical Assistance programs.
The difference between the annual openings and enrollments does not necessarily indicate a
shortage, as training programs offered by private providers are not included in this analysis.
At the same time, not all students go on to earn their credential, and those who do complete
may not pursue the exact occupation aligned with their program.
Table 6: Top 10 Credentials and Annual Openings by Related Occupational
Field, FY 2023
Annual Job Individuals
Openings ** Enrolled
Occupation by Field* Program FY 2023
Heavy and Tractor-Trailer Truck Drivers 5,907 Commercial Driver's License 3,101
Medical Assistants 2,093 Medical Assistant 773
Phlebotomists 531 Phlebotomy Technician 582
Carpenters 2,433 Core - Introductory Craft Skills 525
Other Healthcare Support Occupations 6,141 Certified Nurse Aide (CNA) 447
Computer and Information Systems Managers 1,318 CompTIA A+ 349
Highway Maintenance Workers + Paving, Surfacing,
470 VDOT Asphalt Field 266
and Tamping Equipment Operators
Welders, Cutters, Solderers, and Brazers 1,046 Welding 457
Medical Records Specialists 438 Billing and Coding Specialist 168
Human Resources Assistants 308 SHRM Certified Professional 138
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New Economy Workforce Credential Grant Annual Report FY 2023
*Review based on Virignia Office of Education Economics and Virginia Employment Commission short-term 2021-2023 projections.
https://virginiaworks.com/occupational-projections?page80257=1&size80257=12&page79862=
1&size79862=12&page81630=1&size81630=12
**Enrollments figures can include individuals completing multiple credentials. The figures provided for individuals represent
unduplicated count of the enrollments.
Differences between openings (demand) and enrollments (supply) may not represent a shortage as other individuals may complete
certification through non-WCG programs.
Training Completion Rates Averaged 95%, while Credential Completion Rates
Averaged 71%
Completion rates for training vary by field and credential type. Nonetheless, the average
completion rate for the last four years remains relatively stable – about 95% of enrolled
individuals complete their training. Of those who enrolled, about 71% earn a credential.
Some credential rates, such as IT certification, are much lower. Rates may vary because some
credentialing and licensing bodies offer testing on-site, while others are located elsewhere.
Also, a gap of time may exist between the course end-date and availability of credentialing
testing. Further, some students might be able to start employment related to their training
without earning a credential.
Table 7: Average Completion Rates, FY 2023
Training Credential
Occupational Field Completion Rate Completion Rate
Computer and Mathematical (15) 95% 30%
Construction and Extraction (47) 98% 77%
Education, Training, and Library (25) 96% 92%
Healthcare Practitioners and Technical (29) 83% 47%
Healthcare Support (31) 89% 64%
Installation, Maintenance, and Repair (49) 96% 80%
Office and Administrative Support (43) 91% 49%
Production (51) 96% 73%
Public Administration (92) 70% 40%
Transportation and Material Moving (53) 98% 85%
Grand Total 95% 71%
Participation and Completion Rates by Institution
The number of students enrolling across training institutions varies. Table 8 provides
enrollments and completions by institution. Half of enrollments in FY 2023 were at
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New Economy Workforce Credential Grant Annual Report FY 2023
institutions in rural areas of the state. The remaining enrollments occurred at urban
community colleges: Germanna, Northern Virginia, Tidewater and Brightpoint/Reynolds.1
Table 8: FY 2023 Data on Enrollment, Training Completion and Reported
Credentials by Eligible Training Institution
Completed Credential
Training Institution Enrolled Training Attained
Blue Ridge 542 514 426
Brightpoint/Reynolds CC (CCWA) 2,032 1,918 1,417
Central Virginia CC 428 385 302
Danville CC 111 87 27
Eastern Shore CC 124 123 79
Germanna CC 2,476 2,449 1,877
Laurel Ridge CC 938 893 811
Mountain Empire CC 227 215 199
Mountain Gateway CC 284 256 180
New River CC 191 175 138
Northern Virginia CC 954 904 497
Patrick & Henry CC 314 284 249
Paul D. Camp CC 381 352 225
Piedmont CC 513 493 346
Rappahannock CC 320 318 161
Southern Virginia Higher Ed Center 98 92 71
Southside Virginia CC 692 674 573
Southwest Virginia CC 330 323 257
Tidewater CC 796 707 455
Virginia Highlands CC 168 158 134
Virginia Peninsula CC 862 811 528
Virginia Western CC 381 354 329
Wytheville CC 266 264 258
Grand Total 13,428 12,749 9,539
1Brightpoint and Reynolds community colleges share a workforce development division called the
Community College Workforce Alliance.
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New Economy Workforce Credential Grant Annual Report FY 2023
STUDENT DEMOGRAPHICS
Enrollment
The Workforce Credential Grant program tends to serve a nontraditional (adult) student; the
median age is 32 years. Only 32% of students are ages 24 years or younger.
Table 9: Enrollment by Age, FY 2023
Age Group # %
Less than 18 years 217 2%
18 to 24 years 4,056 30%
Age 25 to 34 years 3,818 28%
Age 35 to 44 years 2,772 21%
Age 45 to 64 years 2,423 18%
Age 65 years and older 142 1%
Total 13,428 100%
By gender, 63% of enrolled students were male; 31% female; and 6% unknown. By race and
ethnicity, 44% of enrollment were white; 30% were Black or African American; and 6% were
Hispanic/Latino. The measures of Virginia’s strategic plan for higher education, Pathways to
Opportunity, compare population and enrollment as a proportion for different groups. Given
that 18% of Virginia’s working age population is Black or African American, one could assert
that the WCG program especially serves this population. However, the accuracy of such a
claim would be disputable, given that 14% of WCG enrollments are of unknown/unreported
race/ethnicity.
Figure 1: Student Demographics by Sex and Race/Ethnicity, FY 2023
Native Hawaiian or Other Pacific Islander made up
0.2% of enrollments.
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New Economy Workforce Credential Grant Annual Report FY 2023
The WCG program also serves a large first-time-in-college population. In fact, two-thirds
(9,228) of WCG enrollees in FY 2023 had not previously entered a postsecondary training or
credential program.
Success
Credential completion varies by race and ethnicity. (Training completion rates do not vary
significantly for the largest demographic groups.) Asian students earn a credential nine
points below the program’s average. Black or African American students are 10 percentage
points less likely to earn their program’s credential compared to the program average. The
prevalence of unreported racial and ethnic demographics as well as choice of program
complicates this analysis.
Table 10: Training Completion and Credentials by Race and Ethnicity, FY 2023
Training Credential % Complete % Complete
Race/Ethnicity Enrollment
Completion Completion Training Credential
American Indian or Alaska Native 58 49 37 84% 64%
Asian 422 410 261 97% 62%
Black or African American 4,051 3,738 2,464 92% 61%
Hispanic 795 763 553 96% 70%
Multi-Race 302 278 186 92% 62%
Native Hawaiian or Other Pacific Islander 31 31 23 100% 74%
Race Unknown/Unreported 1,890 1,818 1,411 96% 75%
White 5,879 5,662 4,604 96% 78%
Total 13,428 12,749 9,539 95% 71%
Male students record a higher success rate than women, with a 97% training completion rate
and a 76% credetnial completion rate. As with other success rates by student demographics,
these tabulations are correlational, not causal and could be impacted by program choice.
Table 11: Training Completion and Credentials by Gender, FY 2023
Training Credential % Complete % Complete
Gender Enrollment
Completion Completion Training Credential
Male 8,458 8,177 6,434 97% 76%
Female 4,153 3,786 2,440 91% 59%
Unknown 817 786 665 96% 81%
Total 13,428 12,749 9,539 95% 71%
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New Economy Workforce Credential Grant Annual Report FY 2023
EARNINGS OUTCOMES
Methodology
When the legislature established the program in 2016, an important intention was better
alignment of training to high-demand fields where unmet needs for workers existed. The
Code of Virginia also requires SCHEV to report “information on the wages, including average
wage and other relevant information, of students who have completed noncredit workforce
training programs by credential name and relevant industry sectors.” To better evaluate the
impact of the program on an individual’s job prospects, it is also important to measure wages
– wages prior to completion of the program as well as after completion.
Through the Virginia Longitudinal Data System, SCHEV staff matched completers’ wages
with the wage records of the Virginia Employment Commission. While VEC records are a
valuable and unique source of post-program wages, they are imperfect. For example, some
people are exempt from reporting, such as individuals who are self-employed, work for the
federal government or those who meet other exemption qualifications. Wages also are
collected on a quarterly basis, without any indication of the hours worked, thereby rendering
it impossible to know whether an individual’s quarterly wage was based on full-time or part-
time work. The matching of individuals’ records from their training to their incomes also
takes time, resulting in wage outcomes that are not as up to date as information about the
program itself.
To accurately assess programs’ impact on wages, SCHEV staff compared only those students
who had at least four quarters of wages before and four quarters of wage records after
completing the program. SCHEV staff summed those four quarters to serve as a proxy for
annual income, even though those individuals might be earning additional income not
counted in that quarterly wage, or that they could be choosing to work part-time.
Given the need to restrict analysis to students with wages before and after completing the
program, the analysis below includes students throughout the history of the program and not for
FY 2023 alone. SCHEV staff then analyzed earnings of the remaining 26,935 students with wage
records before and after enrolling in the program. Of these, 19,545 students earned a credential.
Earnings Analysis
Before enrolling in WCG programs, students earned a median annual wage of $24,876.
Twelve months after leaving the program, students earned a median wage of $34,226. This
$9,350 change represents a 38% increase compared to the median pre-wage.
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New Economy Workforce Credential Grant Annual Report FY 2023
Students who went on to earn the credential saw a greater increase to their wages, $10,158
annually, even though the percentage increase is the same due to these individuals earning a
higher wage before entering the program. These wages are not adjusted for inflation.
Table 12: Wages Pre- and Post-Program of WCG Completers, by Credential
Status, History of the Program
# of Students w/
pre- and post- wages
successfully Median Median Median Wage
matched Pre-wage Post-wage Change
Did Not Earn Credential 7,390 $20,514 $27,275 $6,762
Earned Credential 19,545 $26,760 $36,918 $10,158
Total 26,935 $24,876 $34,226 $9,350
These results are strictly correlational, observing the wages of graduates after experiencing a
WCG program, and do not attribute causality. However, a recent study found that credential
earners increased quarterly earnings by approximately $1,000 and the probability of being
employed by 2.4 percentage points.
Median Wages Increased in all Occupational Fields
To measure specific credentials’ impact on wages more effectively, Table 12 examines only
the students who earned their credential and successfully had their pre- and post-program
wages matched. In all occupational fields, median wages increased after attaining the
credential. Students who earned credentials in Construction and Extraction earned the
highest median wages, at $52,442. However, these students also started with a higher pre-
wage. Students who earned credentials in Education, Training and Library fields saw the
largest median wage increases, over $24,000. These students represent a relatively narrow
slice of the wage analysis, however, with only 194 student records matched.
14
New Economy Workforce Credential Grant Annual Report FY 2023
Table 13: Wages Pre- and Post-Program for Credentialed Students by Industry,
History of the Program
# of Students w/pre-
and post- wages Median Median Median
successfully matched Pre-wage Post-wage Wage Change % Change
Computer and Mathematical (15) 668 $34,673 $46,788 $12,116 35%
Construction and Extraction (47) 5,304 $46,634 $52,442 $5,808 12%
Education, Training, and Library (25) 194 $22,359 $46,655 $24,296 109%
Healthcare Practitioners and 327 $17,152 $25,860 $8,708 51%
Technical (29)
Healthcare Support (31) 2,822 $14,625 $22,887 $8,262 56%
Installation, Maintenance, and 2,127 $19,481 $34,882 $15,401 79%
Repair (49)
Office and Administrative Support 813 $20,176 $27,614 $7,438 37%
(43)
Production (51) 2,624 $24,116 $36,334 $12,218 51%
Public Administration (92) 2 $11,666 $22,351 $10,686 92%
Transportation and Material Moving 4,664 $26,711 $37,510 $10,799 40%
(53)
Grand Total 19,545 $26,760 $36,918 $10,158 38%
Wages by Race and Ethnicity
All credentialed racial and ethnic groups saw increases in their median wages. The wage
analysis by race and ethnicity is complicated by the high numbers of unknown and
unreported, and some groups having relatively small cell sizes. (See the enrollments and
success rates by race and ethnicity above.)
Table 14: Wages Pre- and Post-Program for Credentialed Students by Race and
Ethnicity, History of the Program
# of Students w/
pre- and post- wages Median Median Median Wage
successfully matched Pre-wage Post-wage Change
American Indian or Alaska Native (NH) 84 $21,884 $34,809 $12,925
Asian (NH) 513 $31,924 $44,000 $12,076
Black or African American (NH) 4,590 $21,420 $29,955 $8,536
Hispanic 882 $23,538 $33,792 $10,254
Multi-Race (NH) 348 $16,901 $27,582 $10,681
Native Hawaiian or Other Pacific 26 $17,814 $38,733 $20,919
Islander (NH)
Race Unknown/Unreported (NH) 2,715 $33,201 $42,391 $9,190
White (NH) 10,387 $28,551 $39,096 $10,545
Grand Total 19,545 $26,760 $36,918 $10,158
15
New Economy Workforce Credential Grant Annual Report FY 2023
ADDITIONAL OBSERVATIONS AND NEXT STEPS
Program Cap
The 2022-24 biennial budget includes language restricting any single occupational field from
receiving more than 25% of WCG funds. In FY 2023, 48% of GF reimbursements went to
programs in the Transportation and Material Moving (53) field. Most of these programs were
commercial drivers’ licenses. Commercial driver’s licenses made up less than 25% of
individual student enrollments, but contributed to Transportation and Material Moving (53)
exceeding the 25% program cap.
Private initiatives, like Virginia Ready, which incentivize students to enroll in and complete
credentials funded through the Workforce Credential Grant, have specifically promoted the
truck-driving programs in response to employer requests for credentialed workers. As noted
above, truck driving positions have 5,907 annual openings, while only 2,989 individuals
enrolled in truck driving programs through WCG, suggesting that more demand for this
training exists than the current WCG funding structure can supply.
To comply with the 25% cap, the VCCS monitors projected encumbrances based on student
registrations throughout the fiscal year. In past years, the VCCS periodically has used
projected encumbrances to implement a temporary pause on student enrollments in truck-
driving programs, to stay below the reimbursement cap. Programs were not paused in FY
2023 due to the heightened demand for truck drivers and statewide initiatives to increase the
supply of commercial driver’s license holders.
Reimbursement Limit Raised to $4,000 Per Credential
From the beginning of the program through FY2023, a reimbursement limit of $3,000 had
been in place on any individual credential completion. Recognizing inflationary pressures on
salaries and equipment, the 2023 General Assembly raised the limit on reimbursements to
$4,000, effective July 1, 2023. Of the 9,539 credentials earned in FY 2023, 2,901 of them
triggered total reimbursements of $3,000. Policymakers can expect a portion of programs in
FY 2024 to trigger reimbursements over $3,000 and up to $4,000.
Monitoring Legislation in Congress
This past fall, the Congressional House of Representatives’ Committee on Education & the
Workforce reported the Bipartisan Workforce Pell Act, which would expand Pell Grant
eligibility to students enrolled in programs similar to those offered through the Workforce
16
New Economy Workforce Credential Grant Annual Report FY 2023
Credential Grant. At $7,395, the maximum Pell grant would more than cover the maximum
total cost of WCG programs ($6,000).
Some proposed federal eligibility requirements appear to be aligned with WCG
requirements, such as programs being aligned with high-demand fields. Other requirements
would differ from WCG eligibility: For example, the legislation requires that students “will
receive academic credit” upon program completion. Currently, WCG-participating
institutions must “adopt a policy for the award of academic credit to any eligible student
who has earned a noncredit workforce credential that is applicable to the student's certificate
or degree program requirements.” The Bipartisan Workforce Pell Act also would require
graduation rates and job placement rates of at least 70% and require median earnings to
exceed those of high school graduates between 25 and 34 years of age. According to U.S.
Census Bureau’s American Community Survey’s 2022 one-year estimates, the median
earnings of high school graduates in Virginia, regardless of age, is $39,370. As demonstrated
in Table 13, this threshold exceeds many of the median earnings of WCG credential learners.
17
New Economy Workforce Credential Grant Annual Report FY 2023
CONCLUSION
Since the inception of the Workforce Credential Grant in 2016, the program has continued to
grow based on student demand. The largest areas of enrollment occur in occupational fields
with annual job openings that exceed training completions. In addition, median earnings
continue to grow post-training completion.
18
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