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Putting America Back to Work: The Role of Workforce Development and Small Business Rehiring (House Small Business subcommittee hearing, July 16, 2020)

Summary

The printed record of a hearing before the Subcommittee on Innovation and Workforce Development of the House Committee on Small Business, Small Business Committee Document Number 116–087, titled Putting America Back to Work: The Role of Workforce Development and Small Business Rehiring, held July 16, 2020 in the 116th Congress. The contents list opening statements by Hon. Jason Crow and Hon. Troy Balderson. The four witnesses are Dr. Demetra Smith Nightingale of the Urban Institute, Kelly Folks of the Arapahoe/Douglas Workforce Center, Joe Schaffer of Laramie County Community College and Kelly Moore of GKM Auto Parts Inc. The appendix lists their prepared statements and questions from Hon. Balderson to Folks, Schaffer and Moore with their responses.

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“Putting America Back to Work: The Role of Workforce Development and Small Business Rehiring (House Small Business subcommittee hearing, July 16, 2020).” Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/putting-america-back-to-work-the-role-of-workforce-development-and-sma-861543aa4e/, SHA-256 49c32945aabbb4a2c77c3ae1fb10c992d4019887488cb33ff746458ac0ef960d.

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                                                              PUTTING AMERICA BACK TO WORK: THE ROLE
                                                                OF WORKFORCE DEVELOPMENT AND SMALL
                                                                BUSINESS REHIRING


                                                                                                  HEARING
                                                                                                         BEFORE THE


                                                                   SUBCOMMITTEE ON INNOVATION AND
                                                                       WORKFORCE DEVELOPMENT
                                                                                                            OF THE


                                                                       COMMITTEE ON SMALL BUSINESS
                                                                              UNITED STATES
                                                                        HOUSE OF REPRESENTATIVES
                                                                                ONE HUNDRED SIXTEENTH CONGRESS
                                                                                                       SECOND SESSION


                                                                                                       HEARING HELD
                                                                                                        JULY 16, 2020




                                                                                Small Business Committee Document Number 116–087
                                                                                  Available via the GPO Website: www.govinfo.gov

                                                                                           U.S. GOVERNMENT PUBLISHING OFFICE
                                                                    41–298                             WASHINGTON : 2021




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                                                                                    HOUSE COMMITTEE ON SMALL BUSINESS
                                                                                NYDIA VELÁZQUEZ, New York, Chairwoman
                                                                                        ABBY FINKENAUER, Iowa
                                                                                         JARED GOLDEN, Maine
                                                                                         ANDY KIM, New Jersey
                                                                                         JASON CROW, Colorado
                                                                                        SHARICE DAVIDS, Kansas
                                                                                       KWEISI MFUME, Maryland
                                                                                          JUDY CHU, California
                                                                                      DWIGHT EVANS, Pennsylvania
                                                                                       BRAD SCHNEIDER, Illinois
                                                                                     ADRIANO ESPAILLAT, New York
                                                                                     ANTONIO DELGADO, New York
                                                                                   CHRISSY HOULAHAN, Pennsylvania
                                                                                        ANGIE CRAIG, Minnesota
                                                                                  STEVE CHABOT, Ohio, Ranking Member
                                                                   AUMUA AMATA COLEMAN RADEWAGEN, American Samoa, Vice Ranking Member
                                                                                        TROY BALDERSON, Ohio
                                                                                         KEVIN HERN, Oklahoma
                                                                                       JIM HAGEDORN, Minnesota
                                                                                       PETE STAUBER, Minnesota
                                                                                       TIM BURCHETT, Tennessee
                                                                                          ROSS SPANO, Florida
                                                                                       JOHN JOYCE, Pennsylvania
                                                                                      DAN BISHOP, North Carolina

                                                                                          MELISSA JUNG, Majority Staff Director
                                                                            JUSTIN PELLETIER, Majority Deputy Staff Director and Chief Counsel
                                                                                            KEVIN FITZPATRICK, Staff Director




                                                                                                                  (II)




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                                                                                                               CONTENTS
                                                                                                            OPENING STATEMENTS
                                                                                                                                                                                                Page
                                                              Hon. Jason Crow ......................................................................................................              1
                                                              Hon. Troy Balderson ................................................................................................                2

                                                                                                                       WITNESSES
                                                              Dr. Demetra Smith Nightingale, Institute Fellow, Urban Institute, Wash-
                                                                ington, DC .............................................................................................................          5
                                                              Ms. Kelly Folks, Arapahoe/Douglas Workforce Director, Workforce Center,
                                                                Centennial, CO, testifying on behalf of Workforce Boards and Centers and
                                                                the Rocky Mountain Workforce Development Association (RMWDA) .............                                                        6
                                                              Mr. Joe Schaffer, President, Laramie County Community College, Cheyenne,
                                                                WY, testifying on behalf of the American Association of Community Col-
                                                                leges .......................................................................................................................     8
                                                              Ms. Kelly Moore, Vice President, GKM Auto Parts Inc., Zanesville, OH ...........                                                   10

                                                                                                                        APPENDIX
                                                              Prepared Statements:
                                                                  Dr. Demetra Smith Nightingale, Institute Fellow, Urban Institute, Wash-
                                                                    ington, DC .....................................................................................................             21
                                                                  Ms. Kelly Folks, Arapahoe/Douglas Workforce Director, Workforce Cen-
                                                                    ter, Centennial, CO, testifying on behalf of Workforce Boards and Cen-
                                                                    ters and the Rocky Mountain Workforce Development Association
                                                                    (RMWDA) ......................................................................................................               26
                                                                  Mr. Joe Schaffer, President, Laramie County Community College, Chey-
                                                                    enne, WY, testifying on behalf of the American Association of Commu-
                                                                    nity Colleges ..................................................................................................             33
                                                                  Ms. Kelly Moore, Vice President, GKM Auto Parts Inc., Zanesville, OH ....                                                      40
                                                              Questions and Answers for the Record:
                                                                  Questions from Hon. Balderson to Ms. Kelly Folks and Responses from
                                                                    Ms. Kelly Folks .............................................................................................                41
                                                                  Questions from Hon. Balderson to Mr. Joe Schaffer and Responses from
                                                                    Mr. Joe Schaffer ............................................................................................                44
                                                                  Questions from Hon. Balderson to Ms. Kelly Moore and Responses from
                                                                    Ms. Kelly Moore ............................................................................................                 46
                                                              Additional Material for the Record:
                                                                  International Franchise Association (IFA) .....................................................                                49




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                                                              PUTTING AMERICA BACK TO WORK: THE
                                                               ROLE OF WORKFORCE DEVELOPMENT AND
                                                               SMALL BUSINESS REHIRING

                                                                                            THURSDAY, JULY 16, 2020

                                                                                       HOUSE OF REPRESENTATIVES,
                                                                                   COMMITTEE ON SMALL BUSINESS,
                                                                       SUBCOMMITTEE ON INNOVATION AND WORKFORCE
                                                                                                         DEVELOPMENT,
                                                                                                               Washington, DC.
                                                                 The Subcommittee met, pursuant to call, at 1:00 p.m., via Webex,
                                                              Rayburn House Office Building, Hon. Jason Crow [chairman of the
                                                              Subcommittee] presiding.
                                                                 Present: Representatives Crow, Finkenauer, Kim, Davids,
                                                              Houlahan, Balderson, Hern, and Chabot.
                                                                 Chairman CROW. Good afternoon. I call this meeting to order.
                                                                 I want to thank everyone for joining us this afternoon for our
                                                              Committee’s official remote hearing. I want to make sure to note
                                                              some important requirements of this hearing according to the
                                                              House rules.
                                                                 House regulations requires that members be visible through a
                                                              video connection throughout the proceedings. Please keep your
                                                              cameras on. Also, if you have to participate in another proceeding,
                                                              please exit this one and log back in later. Remember to remain
                                                              muted until you are recognized to minimize background noise.
                                                                 Even before the COVID-19 pandemic, technological advancement
                                                              and changing trends in the labor market were disrupting jobs and
                                                              the skills needed to perform them. The coronavirus pandemic has
                                                              in many ways accelerated these changes and highlighted the ur-
                                                              gent need for workers to have the knowledge, skills, and abilities
                                                              needed in the 21st century economy. Workers and businesses in
                                                              every industry, especially those hardest hit by COVID-19 must fig-
                                                              ure out how they can adapt to these changing conditions. In par-
                                                              ticular, all firms have a harder time finding the employees that fit
                                                              their needed skillsets. However, as we all know, all businesses will
                                                              need to play an outside role in getting the country back to work.
                                                              Before the pandemic, small firms accounted for 99 percent of all
                                                              private sector employers and created nearly two-thirds of all new
                                                              private sector jobs. Even when unemployment was low and there
                                                              were still underlying problems, like a growing skills gap that se-
                                                              verely undercuts its public workforce system.
                                                                 The Federal government was failing to prepare our people for the
                                                              future workforce even as our workforce was evolving. This chronic
                                                              underfunding of our Nation’s workforce development program not
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                                                              only hurt the ability of many workers to get ahead; it neglected the
                                                              growing needs of our Nation’s small businesses as the driver of eco-
                                                              nomic growth and job creation.
                                                                 Since the beginning of the COVID-19 pandemic, more than 45
                                                              million workers have filed for unemployment. The unemployment
                                                              rate stands at 11.1 percent, and experts say that in reality it is
                                                              higher than that. This unemployment crisis is particularly hurting
                                                              young people, women, and people of color.
                                                                 Retail clerks, restaurant servers, housekeepers and hospitality
                                                              workers are now out of job and may not have jobs to go back to.
                                                              Some experts estimate that upwards of 42 percent of jobs that dis-
                                                              appeared during the pandemic may never return.
                                                                 And this is why we are here today, to discuss at length how our
                                                              Nation’s workforce gets the skills needed for the 21st century to
                                                              help small firms rehire and retain more employees. In the midst
                                                              of this unprecedented crisis, we must be bold in preparing our peo-
                                                              ple for the future of work and that will only happen if we have ‘‘an
                                                              all hands on deck’’ approach. That includes extending access to new
                                                              and innovative job training programs like remote apprenticeships.
                                                              It means we must facilitate intense collaboration between Federal,
                                                              state, and local government, the private sector, and our Nation’s
                                                              colleges and universities to determine what skills need to be
                                                              trained and how to help employers find talent.
                                                                 That means we might to rethink incentives we provide employ-
                                                              ers, especially for small businesses so they are able to invest in the
                                                              workforce that meet the needs of their particular industry.
                                                                 I look forward to hearing from our expert witnesses who will be
                                                              able to talk much more about the changing nature of work and the
                                                              skills necessary to get ahead in the 21st century, as well as the
                                                              way the local workforce boards, community colleges and Federal
                                                              policy can help smaller firms find the workers they need to grow
                                                              and once again become the driver of economic growth and job cre-
                                                              ation.
                                                                 Again, I want to thank the panelists for joining us here today,
                                                              and I now yield to the Ranking Member, Mr. Balderson, for his
                                                              opening statement.
                                                                 Mr. BALDERSON. Thank you, Mr. Chairman, for holding this
                                                              hearing today.
                                                                 The coronavirus has dealt a devastating blow to our Nation. Nei-
                                                              ther our people, nor our economy, is immune to its negative im-
                                                              pacts. However, Americans are resilient and strong. Our healthcare
                                                              providers have fought tirelessly to save lives. Our school systems
                                                              have rapidly evolved to meet remote learning demand. Many of our
                                                              small businesses from restaurants to manufacturers have adapted
                                                              to overnight challenges, loss of revenue, and ever-shifting local and
                                                              Federal guidance.
                                                                 I am inspired by the flexibility, agility, and creativity of small
                                                              businesses in my district and across this country to demonstrate
                                                              the confidence we need during the recovery phase.
                                                                 According to the Department of Treasury, the Paycheck Protec-
                                                              tion Program, also known as the PPP, supported 51 million jobs.
                                                              This means PPP supported over 80 percent of all small business
                                                              employees nationwide. I was proud to work with Congresswoman




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                                                              Angie Craig, who also serves on this Committee, to ensure the pro-
                                                              gram would remain available through August 8th.
                                                                 As states continue to move into the next phases of this public
                                                              health emergency and lift restrictions, Congress must do more to
                                                              prepare to protect small businesses and their employees. Many are
                                                              facing atypical expenses such as the purchase of personal protec-
                                                              tive equipment (PPE) to safeguard employees and customers and
                                                              on top of recent unexpected declines in revenues.
                                                                 To meet the burden, I introduced H.R. 7216, the Small Business
                                                              PPE Tax Credit Act with my fellow Small Business Committee
                                                              Representative Joyce of Pennsylvania and two partners from across
                                                              the aisle, Representative Brenda Lawrence of Michigan and Rep-
                                                              resentative Mike Quigley of Illinois. Under the Small Business
                                                              PPE Tax Credit Act, certain small businesses and nonprofit organi-
                                                              zations will qualify for a tax credit of up to $25,000 for the pur-
                                                              chase and installation of PPE intended to reduce the risk of
                                                              COVID-19 transmission.
                                                                 In addition to the PPE, new and returning employees will need
                                                              training on social distance requirements and other coronavirus re-
                                                              lated changes, procedures and regulations. Both employers and em-
                                                              ployees will need clear guidance and acceptable resources from the
                                                              local, state, and Federal government.
                                                                 Here is another opportunity for us to work together. Our work-
                                                              force has the flexibility, agility, and creativity to meet the demands
                                                              of our new normal now. It just needs Congress to support them in
                                                              this effort.
                                                                 Thank you, Mr. Chairman, and I yield back.
                                                                 Chairman CROW. Thank you, Mr. Balderson. I appreciate your
                                                              comments and all of your hard work and the work you are doing
                                                              on both sides of the aisle to rep this issue.
                                                                 I would like to take a moment to explain how this hearing will
                                                              proceed. Each witness will have 5 minutes to provide a statement,
                                                              and each Committee member will have 5 minutes for questions.
                                                              Please ensure that your microphone is on when you begin speaking
                                                              and that you return to mute when you are finished. That might be
                                                              the most important thing. It happens all the time.
                                                                 With that, I would like to thank our witnesses for taking time
                                                              out of their busy schedules to join us.
                                                                 Our first witness today is Dr. Demetra Smith Nightingale. Am
                                                              I pronouncing that right? Is it Demetra or Demetra?
                                                                 Dr. NIGHTINGALE. Demetra.
                                                                 Chairman CROW. Demetra. Dr. Demetra Smith Nightingale, an
                                                              institute fellow at the Urban Institute where her research focuses
                                                              on social, economic, and labor policy issues. She was chief evalua-
                                                              tion officer at the U.S. Department of Labor from 2011 to 2016
                                                              where she developed what is recognized as one of the premier eval-
                                                              uation units in the Federal government. Prior to that she taught
                                                              graduate courses in social policy and program evaluation at Johns
                                                              Hopkins and was currently a professorial lecturer at the
                                                              Trachtenberg School of Public Policy and Public Administration at
                                                              George Washington University. Thank you, Dr. Nightingale for
                                                              being here today.
                                                                 Our second witness is Ms. Kelly Folks, the director of Arapahoe
                                                              Douglas Workforce Center. She has over 20 years of experience




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                                                              working to develop innovative workforce throughout the program-
                                                              ming specifically designed to serve both jobseekers and business
                                                              and industry. She is viewed as a local, regional, state, and national
                                                              leader in workforce and economic development. Ms. Folks is the
                                                              president of the Rocky Mountain Workforce Development Associa-
                                                              tion, serves as a board member of Region 8 with the National Asso-
                                                              ciation of Workforce Development Professionals, and serves as the
                                                              Region 4 liaison for the National Association of Workforce Boards.
                                                              Thank you, Ms. Folks, for being here today.
                                                                 Our third witness is Dr. Joe Schaffer. Dr. Schaffer is currently
                                                              the president of Laramie County Community College, Wyoming’s
                                                              largest community college. He considers himself a community col-
                                                              lege evangelist after an associate degree changed his life for the
                                                              better. Prior to joining LCCC, he spent nearly a decade at Montana
                                                              State University-Great Falls, serving in a variety of academic and
                                                              administrative roles. At age 34, he was appointed the dean and
                                                              CEO, becoming one of the youngest college executives in the Nation
                                                              at the time. He is currently serving on the Board of Directors of
                                                              the American Association of Community Colleges and sits on their
                                                              Commission of Small and Rural Colleges. Thank you, Dr. Schaffer
                                                              for being here today.
                                                                 I will now yield to the Ranking Member, Mr. Balderson, to intro-
                                                              duce our final witness.
                                                                 Mr. BALDERSON. Thank you, Mr. Chairman.
                                                                 It is with great pleasure for me today, a personal friend, to intro-
                                                              duce, and we have known each other since they came into our local
                                                              community since 2004 when her husband and I and her sons have
                                                              chased each other through the woods on motorcycles. So it is al-
                                                              ways good.
                                                                 Our final witness today is Kelly Moore. Kelly is the vice presi-
                                                              dent of GKM Auto Parts, which is based on Zanesville, Ohio. In
                                                              2004, the opportunity presented itself for Kelly and her husband
                                                              Greg to purchase their first two Auto Parts locations. They began
                                                              by employing 16 workers, as well as several family members. In
                                                              2006, they bought two additional stores for a total of four with loca-
                                                              tions in Zanesville, Dresden, Conshohocken, and West Lafayette.
                                                              Additionally, Ms. Moore currently serves on our 12th Congressional
                                                              District Small Business Advisory Board, comprised of small busi-
                                                              nesses from every county in the district and representing many in-
                                                              dustries. There, she helps me, informing on challenges small busi-
                                                              nesses face on the ground. Thank you for taking the time out of
                                                              your busy schedule to join us today, Ms. Moore, Ms. Kelly Moore.
                                                              I look forward to hearing your testimony and great to see you.
                                                              Thank you.
                                                                 Chairman CROW. Thank you, Mr. Balderson. And thank you all
                                                              for being here today.
                                                                 I would like to now begin by recognizing Dr. Nightingale for 5
                                                              minutes. Dr. Nightingale, you can see the timer on the screen here.
                                                              We look forward to your comments.




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                                                              STATEMENTS OF DEMETRA SMITH NIGHTINGALE, INSTITUTE
                                                               FELLOW, URBAN INSTITUTE; KELLY FOLKS, ARAPAHOE/
                                                               DOUGLAS WORKFORCE DIRECTOR,WORKFORCE CENTER;
                                                               JOE SCHAFFER, PRESIDENT, LARAMIE COUNTY COMMUNITY
                                                               COLLEGE; KELLY MOORE, VICE PRESIDENT, GKM AUTO
                                                               PARTS INC.
                                                                          STATEMENT OF DEMETRA SMITH NIGHTINGALE
                                                                Dr. NIGHTINGALE. Thank you, Chairman Crow, Ranking Mem-
                                                              ber Balderson, and members of the Committee. I appreciate the op-
                                                              portunity to testify before you today on the workforce development
                                                              system and small businesses.
                                                                The Nation’s public workforce development system is a partner-
                                                              ship of Federal, state, and local governments charged with pro-
                                                              viding employment-related services to both workers and businesses
                                                              and serve over 2,000 local one-stop career centers, also called
                                                              American job centers, the system which is authorized in the Work-
                                                              force Innovation Opportunity Act and the Wagner Peyser Act, oper-
                                                              ates a free labor exchange nationwide.
                                                                One goal of the system is to help anyone find a job, especially
                                                              the unemployed and underemployed, and dislocated workers. An-
                                                              other goal is to help businesses by matching skilled job seekers to
                                                              businesses that are hiring. Most local job centers also make space
                                                              available to businesses to conduct interviews. They hold workshops
                                                              for jobseekers and conduct various types of training assessments
                                                              for workers.
                                                                So what works in hiring and skills training? Evaluation suggests
                                                              four points that I would like to make.
                                                                First, public investment in training fills an important gap. Em-
                                                              ployers, of course, provide most job training in the United States.
                                                              Small businesses are less able than large corporations to invest
                                                              much in training, even in good economic times. The public work-
                                                              force development system helps fill the training gap by focusing on
                                                              smaller businesses and low to mid-level workers. The system’s very
                                                              limited funding, though, as the Chairman just mentioned, covers
                                                              only a small fraction of the hundreds of millions of businesses and
                                                              workers in the Nation.
                                                                The second point is that training connected to work has the most
                                                              positive effect. Not all training is the same, and not all training,
                                                              whether it is public or private, is effective. But evaluations show
                                                              that the most effective job training is that which is connected di-
                                                              rectly to real work, real jobs, rather than standalone training not
                                                              aligned with jobs that are in demand. This includes integrated
                                                              training models, such as apprenticeships and on-the-job training
                                                              with public subsidies.
                                                                The third point that I would like to make is that individualized
                                                              staff-assisted coaching and career services are important. Several
                                                              evaluations are now finding that the types of staff-assisted coach-
                                                              ing and services that local one-stop career centers provide and
                                                              sometimes provide virtually are important. Trainees who receive
                                                              assistance in selecting their training do better than those who
                                                              make choices on their own without coaching.
                                                                The fourth point is that comprehensive and integrated models
                                                              work equally well for youth and that as with adults, training that




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                                                              is work-based is most effective for youth, especially those who have
                                                              less than college and those who are just coming out of high school
                                                              or college.
                                                                 There are at least three ways that small businesses can connect
                                                              and avail themselves of services in the workforce system. First, it
                                                              is important for all businesses to stay abreast of the shifts in de-
                                                              mand or of skills in the labor market and the state labor market
                                                              information system which uses the Bureau of Labor Statistics
                                                              methodology and updates the data regularly. As we have already
                                                              heard, there have been changes in the demand for technology and
                                                              virtual skills, accelerated by the COVID crisis in telemedicine, vir-
                                                              tual customer service, delivery, transportation, retail, and online
                                                              support. Training workers now can have longer term payouts and
                                                              investment in the future.
                                                                 Second, small businesses can partner directly with workforce de-
                                                              velopment systems for training. Many Federal grants require em-
                                                              ployer partnerships and small businesses can be those partners.
                                                              And third, businesses should prepare for a long-term period of un-
                                                              employment, high unemployment and hopefully from additional
                                                              funding that helps to expand the services that are available.
                                                                 In conclusion, the workforce development system trains workers
                                                              who might not be otherwise able to receive it and provides support
                                                              and assistance to businesses that might not have all the resources
                                                              to do it on their own. Businesses can and do play a critical role,
                                                              and small businesses can be prepared to expand their role by ac-
                                                              tively partnering and connecting with the local workforce develop-
                                                              ment system and be aware of new funding as it becomes available.
                                                              Thank you.
                                                                 Chairman CROW. Thank you, Dr. Nightingale. Perfect timing as
                                                              well I will add. I appreciate your comments very much.
                                                                 Ms. Folks, you are recognized for 5 minutes.

                                                                                           STATEMENT OF KELLY FOLKS
                                                                 Ms. FOLKS. Good afternoon. I want to thank the Subcommittee
                                                              for the opportunity to discuss the needs of the workforce system.
                                                              Although WIOA has not been cut at a national level, unfortunately,
                                                              the current formula utilized for allocating funding to states and
                                                              then lags with the market and the current demands, therefore it
                                                              makes it very difficult at a local level to provide the level of service
                                                              delivery needed, especially during times such as this. The WIOA
                                                              system has not been funded nationally over the past several years
                                                              at a level to keep up with the demand or the speed of the market.
                                                                 In order for the workforce system to meet the demands of the
                                                              jobseekers and business during the pandemic, the system needs re-
                                                              sources and funding. During the Great Recession, the workforce
                                                              system was put to the test, receiving an influx in funding to serve
                                                              the communities through a variety of mechanisms. The system as
                                                              a whole rose to that challenge. This type of bold and decisive action
                                                              is needed even more today with the current economy devastated by
                                                              the pandemic. Please consider additional resources added to the
                                                              overall WIOA and Wagner Peyser funding streams, additional re-
                                                              sources for youth employment programming, and additional re-
                                                              sources for local areas to be able to provide more robust business




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                                                              service delivery which allows for the innovation needed to meet the
                                                              demands of business; in particular small businesses.
                                                                 Our response to COVID-19 has taken the workforce system na-
                                                              tionally and within Colorado to the next level. When the State of
                                                              Colorado shut down for several weeks during the height of cases
                                                              in our state, we had less than 48 hours to get all of our services
                                                              remote and virtual. Many local regions in Colorado developed and
                                                              implemented local call centers to assist the state with the influx
                                                              and demand on the unemployment calls to the system by job-
                                                              seekers and businesses. All services went virtual with absolutely no
                                                              stop in service delivery to the jobseekers or the businesses.
                                                                 The offices have reopened; however, due to the positive results in
                                                              offering virtual service delivery, both service models continue to
                                                              date throughout the state. The current trends that we are seeing
                                                              nationally, within the State of Colorado and at a local level include
                                                              people not going back to work with the company that they were
                                                              furloughed from due to the company either closing, or if the par-
                                                              ticular job is no longer available. The need for layoff aversion meth-
                                                              odologies and incumbent worker training availability to be put in
                                                              place with more flexibility to ensure that businesses can continue
                                                              to retool and skill up their current workforce rather than lay off.
                                                                 Although work-based learning is a key factor in being able to put
                                                              funding into local businesses, right now businesses are having trou-
                                                              ble with having the time to look into developing apprenticeship
                                                              programs or allow for on-the-job trainings. They do not have the
                                                              bandwidth. Flexibility in being able to pay 100 percent for a period
                                                              of time of a jobseeker’s on-the-job training is needed.
                                                                 A need for more flexibility in the formula funds so that local com-
                                                              munities can build the programming needed to put people back to
                                                              work quickly. And public service employment should be re-exam-
                                                              ined to be able to place unemployed individuals in opportunities
                                                              which assist both our local governments with recovery and their
                                                              families with a paycheck. Some examples of innovative business
                                                              practices during the pandemic include virtual business roundtables
                                                              and conferences with topic areas driven by the business commu-
                                                              nity.
                                                                 Another example, the Close the Gap Program, an initiative with
                                                              the Arapahoe/Douglas Workforce Board and one-stop, Arapahoe
                                                              County Government and Arapahoe Community College utilizing
                                                              CARES Act funding. A very significant technology gap was realized
                                                              in the height of the pandemic. This program closes the technology
                                                              gap for low-income individuals. Once the individual completes the
                                                              program successfully, they will receive a laptop in order to be able
                                                              to accept work-from-home employment opportunities.
                                                                 Some additional innovative best practices that have been in place
                                                              within the State of Colorado pre-COVID and continue to be very
                                                              relevant during the pandemic are virtual hiring events through the
                                                              Connecting Colorado platform utilized statewide, the establishment
                                                              of the Business Service Alignment Group, which representatives
                                                              from each local area and the Colorado Department of Labor and
                                                              Employment. This group works to align business practices to en-
                                                              sure business and industry receive the same services and mes-
                                                              saging and the formation of a data expert group with representa-
                                                              tives from each local area who work to respond to data requests for




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                                                              business and industry, education, economic development, cham-
                                                              bers, nonprofit, and other government agencies, as well as report-
                                                              ing the ROI of the workforce system for Colorado. The Nation’s
                                                              workforce system has the components, partnerships and infrastruc-
                                                              ture in place which will make certain that the current unemploy-
                                                              ment crisis from the pandemic can be addressed.
                                                                In short, the workforce system stands ready to put America back
                                                              to work. Thank you for your time.
                                                                Chairman CROW. Thank you for your opening statement, Ms.
                                                              Folks.
                                                                Dr. Schaffer, you are recognized for 5 minutes.
                                                                                       STATEMENT OF JOE SCHAFFER
                                                                Mr. SCHAFFER. Good afternoon, Chairman Crow, Ranking
                                                              Member Balderson, and members of the Committee. It is an honor
                                                              to be here representing my college, Laramie County Community
                                                              College (LCCC), about 100 miles straight north of the good Chair-
                                                              man’s district. But also to be here on behalf of the American Asso-
                                                              ciation of Community Colleges that has more than 1,000 members.
                                                                As you heard, I have been working with a commission on small
                                                              and rural colleges for the past few years and that will likely cover
                                                              my testimony today.
                                                                Mr. Chairman, there are not many things that are more Amer-
                                                              ican than its community colleges for our small businesses. Unfortu-
                                                              nately, we work hand-in-hand, whether it is through hunting re-
                                                              sources like small business development centers, four chapters or
                                                              business retention and expansion programs, or it is central for our
                                                              mission providing customized training and workforce development
                                                              programs tailored to the needs of our community’s businesses.
                                                                Today, I want to touch on four specific ways community colleges
                                                              support America’s Main Streets. And while we have many exam-
                                                              ples, I want to be clear that we need to be doing substantially more
                                                              in these areas. And selfishly, I believe we need a specific focus on
                                                              helping our rural communities ramp up these efforts.
                                                                The first is entrepreneurship and small business start. Commu-
                                                              nity colleges have a rich history of developing and delivering pro-
                                                              grams that prepare jobseekers for real opportunities within their
                                                              communities, states, and regions, so I believe we need a funda-
                                                              mental shift from focusing on just developing jobseekers, equally
                                                              emphasizing development of job creators. As you likely know, be-
                                                              tween the late 1970s and 2012, the share of young businesses,
                                                              those a year or younger declined by more than 40 percent. Cur-
                                                              rently, census data paints a pretty scary picture for America, one
                                                              where more businesses are closing to new ones opening. The busi-
                                                              ness recruitment model has sort of been the holy grail of economic
                                                              development. We need to shift our focus from business recruitment
                                                              of the primary economic development strategy to a mindset focused
                                                              on entrepreneurship and public community colleges are helping
                                                              drive the shift.
                                                                The second thing is small business growth and expansion. As you
                                                              stated, Mr. Chairman, small businesses have accounted for the ma-
                                                              jority of new private sector jobs.
                                                                But this growth does not come without intention and support.
                                                              Community colleges have and continue to play an instrumental




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                                                              role in the growth and expansion of small businesses. One of the
                                                              reasons we collectively support the Department of Education’s Re-
                                                              imaging Workforce Preparation grants that include business incu-
                                                              bators as one of the program’s two primary priorities. Helping
                                                              small businesses move from start-up to sustained, stable growth
                                                              should be a policy priority for us all.
                                                                 The third area is technical assistance. Small businesses, by their
                                                              very nature, are small. Owners and employers wear multiple hats
                                                              and they seldom have in-house access to technical assistance, pro-
                                                              fessional development, R&D, or other professional and scientific
                                                              services. Community colleges have historically stepped up, and
                                                              stepped in, to help small businesses in this area, either through the
                                                              direct provision of assistance or through the coordination with com-
                                                              munity partners.
                                                                 The last area, and probably the one that we are most well-known
                                                              for is workforce development. Community colleges have perhaps
                                                              been the most progressive and instrumental in supporting small
                                                              business in the realm of workforce development. Workforce devel-
                                                              opment has been a hallmark of the community college mission for
                                                              nearly 100 years. But there are two primary challenges that we
                                                              face with workforce development. The first is the sheer lack of indi-
                                                              viduals available for work, especially in rural areas. Aging popu-
                                                              lations, lower birth rates, and issues with immigration policy have
                                                              all impacted the availability of workers.
                                                                 And as you said, Mr. Chairman, the other one is the skills gap.
                                                              You stated numerous times that there are jobs available but not
                                                              the people with the skills necessary to successfully fill them. I am
                                                              proud of LCCC’s work and really being at the helm tackling this
                                                              challenge, our partnership with the Department of Labor on ex-
                                                              panding community college apprenticeships or tailored short-term
                                                              certificate programs, one of the things that we believe is essential
                                                              and why we support short-term Pell or the alignment of our degree
                                                              certificate programs that support workers and employers directly.
                                                                 And there are policy things that can help us along this way. We
                                                              know that there is a skills gap, and one of the issues with the skills
                                                              gap is insufficient support for workforce education at community
                                                              colleges and other entities, especially so in rural areas. That is why
                                                              we support establishing a major community college job training
                                                              program to help the country move beyond and through the pan-
                                                              demic.
                                                                 Mr. Chairman, I want to conclude with just two other real quick
                                                              thoughts that I think are germane to the conversation and they
                                                              deal with this increasing divide between rural and urban America.
                                                              We know that the formula for prosperity in rural areas is simple:
                                                              economic activity plus economic opportunity equals community
                                                              prosperity. We now have to start considering policy that helps us
                                                              redistribute population and redistribute jobs out of our metro areas
                                                              and back across rural America if we want to see this country and
                                                              its small businesses continue to thrive.
                                                                 Mr. Chairman, that concludes my remarks. I look forward to and
                                                              stand ready for questions. Thank you.
                                                                 Chairman CROW. Thank you, Dr. Schaffer. I appreciate your
                                                              opening remarks.
                                                                 Ms. Moore, you are now recognized for 5 minutes.




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                                                                                           STATEMENT OF KELLY MOORE
                                                                 Ms. MOORE. Thank you very much, Chairman, and Ranking
                                                              Member Balderson for inviting me to give testimony.
                                                                 I live the dream. I am a small business owner and operator of
                                                              a family-run business which Troy earlier described.
                                                                 As a small business, our 19 employees are a valuable asset to our
                                                              company. Well trained, knowledgeable employees, those are the
                                                              keys to the success, stability, and growth potential for any busi-
                                                              ness, especially our business.
                                                                 In the past few years, it has been challenging for businesses to
                                                              fill open positions with quality candidates. There is a shortage, par-
                                                              ticularly in our region, of qualified candidates for highly skilled po-
                                                              sitions. The National Federation of Independent Businesses re-
                                                              ported results of a member survey in 2019 that 22 percent of small
                                                              employers who have hired an employee for their most skilled posi-
                                                              tion in the last 2 years lowered the minimum qualifications for ap-
                                                              plicants that they previously required, and 24 percent lowered
                                                              them for the most common, less skilled positions.
                                                                 As a leadership member of NFIB, I hear firsthand that hiring
                                                              and retaining qualified employees, particularly in the technical and
                                                              mechanical trades in our region, is hindering the operations of
                                                              small businesses. When a less than qualified candidate is hired,
                                                              improving that employee’s skills puts a strain on the tight margins
                                                              with which small businesses normally operate and puts a strain on
                                                              the timeframe of production. Money in the budget which could be
                                                              spent on expanding the business and hiring additional employees
                                                              is spent on training the less than qualified new hires. Finding the
                                                              time to train is also a significant burden to the small business own-
                                                              ers.
                                                                 I just have a quick anecdotal account of a conversation with a
                                                              local garage shop owner that illustrates this issue.
                                                                 I was dropping off parts. He asked me if we knew of any mechan-
                                                              ics looking for work. I asked if he had tapped into the recent grads
                                                              from the local tech program. He said he had worked with a highly
                                                              recommended grad the year before, but the tech was inadequately
                                                              trained in the basics. The shop owner said he spent too much time
                                                              retraining him on basics such as a simple oil change. He was not
                                                              able to stay on his schedules and it was damaging the customer re-
                                                              lationships, so they parted ways.
                                                                 This challenge has become more pronounced post COVID-19 pan-
                                                              demic. Small businesses who furloughed workers in order to stay
                                                              solvent during work shutdowns and slowdowns are reporting that
                                                              some workers are slow to return and credit this primarily to the
                                                              Federal stimulus that has enhanced their unemployment benefits.
                                                              The investment in time and treasure in these employees’ training
                                                              is a significant loss when they will not return to the workforce. It
                                                              is creating a strain on the companies when they can least afford
                                                              this strain.
                                                                 Local education, at all levels, primary, secondary and post-grad-
                                                              uate, is focused on developing the skills needed for the jobs avail-
                                                              able in my area of Ohio. The recent state budget decreases to
                                                              schools in Ohio due to the pandemic will impact this goal. When
                                                              schools can achieve this goal of marketable skills of students, the
                                                              financial burden on an employer is eased and the employee would




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                                                              enter the job with the skill set at a level to be productive and to
                                                              earn better wages. Training budgets could then be spent on boost-
                                                              ing employees’ skills or on wages or benefits to retain that em-
                                                              ployee, which would benefit both the employee and the employer.
                                                                 Also valuable to small businesses is a focused and robust retrain-
                                                              ing program available to assist the displaced workers and adults
                                                              with a desire to learn a new trade of which we in the small busi-
                                                              ness community feel there will be a significant number. A larger
                                                              investment in this arena would reap benefits not just to the em-
                                                              ployer but to the quality of life for the employee and the commu-
                                                              nity. I believe a consolidated effort between Federal and state
                                                              agencies related to training and vigorous marketing to those small
                                                              businesses regarding these programs would be most helpful.
                                                                 Thank you very much for your time.
                                                                 Chairman CROW. Thank you very much.
                                                                 So there is an awful lot to talk about with everything that you
                                                              all mentioned in your opening statements. There is a lot of content
                                                              here on a very important topic right now.
                                                                 So I am going to begin by recognizing myself for 5 minutes for
                                                              a few questions before we go to the other members.
                                                                 So I am going to begin on the issue of the technical skills and
                                                              trade apprenticeships because I know there are apprenticeships
                                                              that could be virtualized, that we can make virtual, but it is aw-
                                                              fully hard to train somebody to be a pipefitter, an electrician, a
                                                              plumber, a diesel mechanic in a virtual setting. So I would really
                                                              love to hear from you, how are we doing that? Are we going to be
                                                              able to do that in part virtually but also do in-person resident
                                                              training programs? I would love to hear your experiences with
                                                              those programs in particular.
                                                                 Maybe we will start in reverse order from order of the state-
                                                              ments. So Ms. Moore, I would love to hear your thoughts.
                                                                 Ms. MOORE. What I am hearing from our customers in the die-
                                                              sel mechanic area particularly is that what is being addressed is
                                                              how to break an engine down, how to refit the complicated proc-
                                                              esses in diesel mechanics. What the business owners tell me is that
                                                              they need them to have a good set of basic skills so they can build
                                                              on that with training. They often do not take somebody, a recent
                                                              grad, and ask them to tear apart an engine and put it back to-
                                                              gether. But they do need the employees to have a firm under-
                                                              standing of basic skills. Thank you.
                                                                 Chairman CROW. Thank you.
                                                                 Dr. Schaffer, I mean, you are very much at the front lines of this
                                                              issue. How are you doing in your college?
                                                                 Mr. SCHAFFER. Thank you, Mr. Chairman. It is a very astute
                                                              question. Certainly during the pandemic I would say we were chal-
                                                              lenged in many ways this past spring as we shifted to a virtual de-
                                                              livery of our instructions. Really, to find ways to do that in the
                                                              technology trades and healthcare areas. I would say I was quite
                                                              pleased and impressed when I think across the Nation we saw
                                                              some great innovation come out of our instructors. I have a great
                                                              story of my automotive tech faculty member strapping a GoPro
                                                              camera to his head and doing virtual real-time labs with individ-
                                                              uals from their home or in their own garages, at their own shops.
                                                              So there are things we can do, but I will be honest; you simply can-




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                                                              not replace the value of hands-on interactive learning that happens
                                                              either in the shop, in the lab, or through apprenticeship programs,
                                                              and we found quickly that we had to do that and create unique
                                                              ways for us to in a safe way bring our diesel technology students,
                                                              our welding students back to campus to carry those out. And this
                                                              is the same with the apprenticeship programs. We had to work
                                                              closely with our employers and small businesses to find ways for
                                                              them to be able to see value in having the apprentice in their envi-
                                                              ronment while they were facing shutdowns and all the issues asso-
                                                              ciated with the pandemic. And so it is not idea. There are ways we
                                                              can do it, but I would say we simply cannot replace the opportunity
                                                              for that in-person, hands-on interactivity in these areas. And I
                                                              would say if we do not figure that out, we will further restrict the
                                                              pipeline of new people coming into these valuable programs and
                                                              leading to the critical careers that they represent.
                                                                 Chairman CROW. Thank you.
                                                                 Ms. Folks?
                                                                 Ms. FOLKS. Thank you.
                                                                 Yes, I would agree with Joe in the matter that it is very difficult
                                                              when it is not in person for the trades, but what we have been
                                                              doing as a workforce system is working hand in hand with our
                                                              community colleges and our trades, different trades, to look at how
                                                              do we work through the social distancing, no different than us com-
                                                              ing to work ourselves. So how do we work through the different so-
                                                              cial distancing guidelines? How do we make sure we make it safe
                                                              so that we get them back into training and get them back into the
                                                              shop so that they can get that on-the-job training? Lockheed Mar-
                                                              tin actually uses all technology to train, and we have been able to
                                                              keep that apprenticeship program going through this through uti-
                                                              lizing those methodologies.
                                                                 Chairman CROW. Thank you.
                                                                 Dr. Nightingale?
                                                                 Dr. NIGHTINGALE. There are a number of creative examples.
                                                              You have heard of some of them through community colleges spe-
                                                              cifically. And I will just highlight that the Urban Institute has a
                                                              forthcoming report that will be available shortly, in a couple of
                                                              weeks. It has some examples of sort of combining virtual and staff-
                                                              assisted. So they would come from some of the studies done over
                                                              the past decade.
                                                                 Chairman CROW. Great. Thank you.
                                                                 My time has now expired. I think I will have some additional
                                                              questions, but I do want to make sure we get to all the other mem-
                                                              bers first.
                                                                 So let’s begin with the Ranking Member, Mr. Balderson. You are
                                                              recognized for 5 minutes.
                                                                 Mr. Balderson, you are recognized for 5 minutes.
                                                                 Mr. BALDERSON. Thank you, Jason. Sorry about that. I lost ev-
                                                              erybody for a second.
                                                                 My first question is to the full panel, and whoever wants to jump
                                                              in, jump right in. Every community has felt the ripple effects from
                                                              the government-mandated closures. Why is workforce development
                                                              a key aspect to our recovery at the community, state, and national
                                                              level?




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                                                                 And no particular order. If anybody wants to answer that, go
                                                              right ahead, please.
                                                                 Mr. SCHAFFER. Mr. Chairman, Representative Balderson, Joe
                                                              Schaffer here. I will take a stab at that.
                                                                 I think we can take and learn some lessons from the Great Re-
                                                              cession that is far too close to this. You know, the next thing that
                                                              is going to impact us is COVID-19. During the Great Recession
                                                              what we saw were significant numbers of individuals displaced at
                                                              that time. The jobs they left were not the jobs that were there as
                                                              we recovered, and we are seeing a very similar trend here. As those
                                                              jobs disappear, while we will preserve some of them in the service
                                                              sector, employers are being forced in many ways to innovate and
                                                              rethink how they meet their business model, their business expec-
                                                              tations. That means we will have millions of Americans that will
                                                              be looking for new opportunities and will require training for the
                                                              jobs that will be here as we come out of this pandemic. And it is
                                                              what makes training and workforce development so absolutely es-
                                                              sential right now. And as I would say, that is especially important
                                                              in rural America where there is a substantial need for those folks
                                                              to find new opportunities for fear that they leave and further exas-
                                                              perate the problem of a shrinking population.
                                                                 Dr. NIGHTINGALE. If I could answer that. In the Great Reces-
                                                              sion, the recovery funds, the supplemental funds were important
                                                              for a couple of reasons. One, as the additional funding that went
                                                              into the local employment services allowed for expanding employ-
                                                              ment services into remote areas. We saw an increase in use of mo-
                                                              bile job centers, libraries, and other community places were out-
                                                              fitted to allow better access in some of the remote areas. But it also
                                                              was a source for connecting subsidized jobs, workers into sub-
                                                              sidized jobs in the private sector and expanded the OJT type of
                                                              contracts. And third, we know that as we start coming out of the
                                                              recession, there are going to be more people who are looking for
                                                              jobs and they transverse to some of the local employment offices
                                                              that are available. So it is but it is the community for locale or re-
                                                              hiring.
                                                                 Mr. BALDERSON. Thank you.
                                                                 Ms. MOORE. I would just like to add, as a small business owner,
                                                              the Great Recession and the pandemic have diverted our funds. We
                                                              have very limited funds. And so they are diverting them away from
                                                              the requirements of training and more towards the requirements to
                                                              stay in business with PPE, with decreased revenues, and with the
                                                              inability to secure funds otherwise right now through banks, just
                                                              as we had a problem during the Great Recession.
                                                                 Mr. BALDERSON. Thank you.
                                                                 Ms. FOLKS. And if I could just add, this is Kelly with Arapahoe/
                                                              Douglas Workforce, who runs a true one-stop center, you know,
                                                              what we saw, the big difference we are seeing now, when we saw
                                                              at the highest point in the Great Recession, for example, Colorado
                                                              was at an 8.6 percent overall unemployment rate. We are seeing
                                                              in May of 2020 during this COVID at a 10.2 percent. We have mil-
                                                              lions of Americans as was stated already that are underskilled, un-
                                                              deremployed. We had that even when our economies were good. We
                                                              were still getting people coming into our workforce center and we
                                                              were working with businesses to try to fill their hardest to fill posi-




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                                                              tions because there really, truly was a skill and training gap there.
                                                              And so that is where workforce development and the boards can,
                                                              in partnership with the community colleges, can really put that
                                                              training back into play and be able to help the small businesses
                                                              and medium businesses to get people back to work.
                                                                 Mr. BALDERSON. Thank you, Ms. Folks.
                                                                 Mr. Chairman, how am I doing? I cannot see my timer.
                                                                 Chairman CROW. Fifteen seconds.
                                                                 Mr. BALDERSON. I yield back, Mr. Chairman.
                                                                 Chairman CROW. The gentleman yields back. Thank you for
                                                              those comments. The gentleman yields his time back.
                                                                 Now I would like to recognize the gentlelady, Ms. Davids from
                                                              Kansas for 5 minutes.
                                                                 Ms. DAVIDS. Thank you, Chairman Crow, and to Ranking Mem-
                                                              ber Balderson for having this hearing today focused on the eco-
                                                              nomic recovery that our communities are going to need so badly
                                                              and that, you know, to recognize the workforce skills gap and really
                                                              the workers that we are going to need is something that we really
                                                              need to be thinking about long term.
                                                                 As states and communities are reopening across the country and
                                                              we learn more about coronavirus and how small businesses are
                                                              going to be able to at least partially reopen doors, I know that that
                                                              has been helpful for some folks but things still are far from normal
                                                              and we are still figuring out how this is going to impact workforce
                                                              development.
                                                                 Dr. Schaffer, I want to start with you, partly because I, myself,
                                                              am a community college graduate. I went to Johnson County Com-
                                                              munity College here in the district that I now get to represent, and
                                                              I spend a lot of time visiting with folks there and at the Kansas
                                                              City Kansas Community College here, too. And I know that the
                                                              education and training opportunity the colleges provide are impor-
                                                              tant, essential, and actually a lot more innovative than I think peo-
                                                              ple usually recognize and kind of mainstream.
                                                                 So I am curious. I know you had mentioned the GoPro technique
                                                              and some of the other things that folks are trying to do right now
                                                              for the current students. I am curious what it is looking like for
                                                              people who are reaching out and might be interested in enrolling.
                                                              I guess I am wondering, what are folk saying to you? Are they ask-
                                                              ing you how you are adapting? Are they asking what you see as
                                                              the biggest needs? I am just curious what folks are asking about.
                                                                 Mr. SCHAFFER. Thank you, Mr. Chairman, Representative Da-
                                                              vids. Yes, Johnson County Community College, one of the finest
                                                              community colleges in the Nation. It is great to hear that you are
                                                              an alum and support that institution and others.
                                                                 You know, it is one of the challenges we face right now. I think
                                                              there is a great uncertainty about what fall looks like in education,
                                                              certainly in K-12. Community colleges are no different. For the
                                                              high demand programs and high demand careers, many that we
                                                              are talking about today in health care and the tech and trades
                                                              areas, those require some type of face-to-face interaction. And I
                                                              think as the colleges are waiting for perhaps better guidance, per-
                                                              haps we are all waiting for better guidance on how we safely oper-
                                                              ate in this environment, so are people. And what we hear mostly
                                                              from individuals is I know it is an opportunity for me to come back.




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                                                              There may even be money on the table to encourage me to come
                                                              back to college, but I can only do that if it is truly safe. And so
                                                              I think a lot of folks are waiting to see what the reopening plans
                                                              of higher education and community colleges are looking like.
                                                                 To give you a quick number, our applicants are substantially up
                                                              for fall. Our enrollment is substantially down, which tells us many
                                                              individuals are waiting to see essentially what happens. The other
                                                              issue is like our biggest opportunity for retraining is adults in this
                                                              country at this point, especially adults without a post-secondary
                                                              credential, using them to find a way to navigate their own personal
                                                              lives right now and the economic and social pressures on them and
                                                              come back to college. I tell you, it is a significant list, but it is one
                                                              we have got to figure out.
                                                                 Ms. DAVIDS. And then, I appreciate that. And you mentioned
                                                              earlier the idea of supporting job creators, in addition to figuring
                                                              out ways to help us get to a workforce that meets that skills gap
                                                              that we keep seeing.
                                                                 Dr. Nightingale, I am curious from your perspective what you are
                                                              seeing in terms of the entrepreneurial movement and that sort of
                                                              thing, big picture going into all of this. I do not know if folks are
                                                              looking at that sort of thing, but I would be curious.
                                                                 Dr. NIGHTINGALE. There are two points that I would make.
                                                              First, certainly, entrepreneurial, sort of like self-employment and
                                                              new business development is critical, but it is not necessarily for
                                                              everybody. And so it has to be very carefully planned so that there
                                                              is a real business plan and understanding of what it takes. People
                                                              sometimes think it is easy to start a small business, but I know
                                                              that the small business owners here, Ms. Moore and others will
                                                              agree, that it is not easy. You have to have a lot of planning.
                                                                 The second thing is that there are probably more opportunities
                                                              for entrepreneurial endeavors today because of the technological
                                                              advances that are available. So there are some opportunities——
                                                                 Chairman CROW. The gentlewoman’s time has expired, so I
                                                              apologize. I am going to have to move back to that point at a dif-
                                                              ferent time.
                                                                 Ms. DAVIDS. Thanks, Chairman. I yield back.
                                                                 Chairman CROW. Thank you.
                                                                 Now I would like to recognize the gentleman from Oklahoma,
                                                              Mr. Hern. Mr. Hern, you are recognized for 5 minutes.
                                                                 Mr. HERN. Thank you, Mr. Chairman, Ranking Member
                                                              Balderson. It is great to be here today and great to see the wit-
                                                              nesses. I apologize. I had to step away for another simultaneous
                                                              meeting so I did not catch all the witnesses’ testimony but certainly
                                                              being a small business owner for over 35 years, and this will be the
                                                              fourth of these type of catastrophic events. Obviously, the ‘‘best,’’
                                                              and I will put that in quotes, is the last. And so we always learn
                                                              from these type of events. Or we should be learning, and those who
                                                              learn come out stronger and those who do not usually do not come
                                                              out.
                                                                 We talked a lot about what you all are doing, or really kind of
                                                              put a lot of onus on that. I want to get to that in a second. But
                                                              we, in Congress, and this is a very bipartisan Committee, and we
                                                              recognize the importance of small business and those entre-
                                                              preneurs that create so many jobs in America, and we have put a




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                                                              lot of money into, I will call it ‘‘the system,’’ the economy over the
                                                              last 3 months, 3-1/2 months, particularly money into individuals’
                                                              pockets. An extra $600 a week that expires in a couple of weeks.
                                                              Direct stimulus checks. I have conversations on both of those next
                                                              week. What have you seen from citizens? You can go recruit all day
                                                              long but if there is not an initiatives by people who are getting this
                                                              extra money to see something beyond 2 weeks, what are you seeing
                                                              from folks that are levying one job that says, hey, this is my oppor-
                                                              tunity. I am no longer working there right now. I am furloughed
                                                              for an indefinite period. I am going to go get retrained in another
                                                              area. Are you seeing that kind of intake from your particular edu-
                                                              cational institutions?
                                                                We can start wherever. Ms. Nightingale?
                                                                Dr. NIGHTINGALE. We do not have a lot of hard data on that
                                                              right now, but we know that the training programs that are out
                                                              there are having difficulty in two ways. One, recruiting and getting
                                                              trainees to come in. The other is retaining partnerships with em-
                                                              ployers for some of the reasons that we have already heard. So it
                                                              could be that we are in a little bit of a lull right now and as the
                                                              economy starts improving, we may see more of an uptick on that.
                                                              But from what I am hearing is that some of the training programs
                                                              are having difficulty finding trainees and keeping employers en-
                                                              gaged.
                                                                Mr. HERN. Mr. Schaffer, in Oklahoma we have 29 career cen-
                                                              ters. I left Ohio a number of years ago, 30 years ago, I think. And
                                                              so one of the best examples is a career center in the upper part of
                                                              my district where they actually go out and talk to businesses and
                                                              create programs to match those businesses and then train some of
                                                              the businesses to produce workers for what they see emerging in
                                                              certain fields. And that is in Bartlesville, Oklahoma and that is
                                                              Tri-County Community College or Technical College.
                                                                But as we go through this process it is going to be really impor-
                                                              tant, and I think, I do not want to put words in your mouth, but
                                                              I think you mentioned a minute ago you were waiting on CDC
                                                              guidelines on how to reopen and things like that. People that are
                                                              entrepeneurs or businesspeople, I would bet you Ms. Moore is not
                                                              waiting on CDC or somebody else to tell her how to keep her busi-
                                                              ness open. She is figuring out every single day how to make that
                                                              happen. That is what businesspeople do. If you wait on the govern-
                                                              ment to tell you what to do you will be very ineffective. As the
                                                              needs arise for small business, I would encourage each of you, and
                                                              this is not a scolding, this is an encouragement, to not wait on the
                                                              Federal government to tell you what to do. The best ideas come
                                                              from out in the communities. Out in the, you know, you all are
                                                              very, very bright people. You have got great institutions. I assure
                                                              you no small businessperson worth their salt is waiting on the Fed-
                                                              eral government to tell them how to survive. And I would just en-
                                                              courage you, you know, I might just ask you that question, you
                                                              know, what are some of the best bets that you are looking at that
                                                              you might want to share here in my remaining one minute, to get
                                                              your schools reopened in a proper way? Because I know whether
                                                              you are a democrat or republican or do not give two hoots about
                                                              politics, you know it is important to educate our workforce and our
                                                              children.




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                                                                 Mr. Schaffer, do you want to start that?
                                                                 Mr. SCHAFFER. Thank you, Mr. Chairman, Representative
                                                              Hern.
                                                                 I would tell you, no disrespect to government or Congress, we are
                                                              having to act. Our Board of Trustees 2 weeks ago approved our re-
                                                              opening plan.
                                                                 Mr. HERN. That is great.
                                                                 Mr. SCHAFFER. That is an aggressive opportunity for continued
                                                              education. We are going to focus where the greatest needs are, so
                                                              our on-campus, in-person instruction is going to be focused in the
                                                              technology, the trades, healthcare, to make sure that that pipeline
                                                              of those workers continues even in a pandemic.
                                                                 To your previous point, just quickly, Representative Hern, we go
                                                              out and we work with employers all the time to customize pro-
                                                              grams for them. They are oftentimes short-term programs very tai-
                                                              lored. It is one of the reasons why we support the concept of short-
                                                              term Pell. We have to find ways to provide financial assistance for
                                                              people to quickly get retrained and back to work.
                                                                 Mr. HERN. Thank you.
                                                                 Mr. Chairman, thank you. I yield back.
                                                                 Chairman CROW. The gentleman yields back.
                                                                 And I believe the members present have all asked questions at
                                                              this point. So if additional members join, we will give them an op-
                                                              portunity, but I do want to go for a quick second round. And I will
                                                              start by giving myself an additional 5 minutes.
                                                                 This issue of the urban rural divide that Dr. Schaffer and the
                                                              others referenced earlier is of particular interest to me. And I think
                                                              one of the issues, we had some hearings on the broader Committee
                                                              on this in the past and in doing some work with Senator Inhofe
                                                              and some others on this issue, is the issue of broadband, which is
                                                              really the long pole in the tent for so much of this in terms of how
                                                              do we make it as easy to start a business or run an apprenticeship
                                                              program or a job training program in Wyoming as it is in New
                                                              York, make it as easy in Oklahoma as it is in California. Leveling
                                                              the playing field here. I would love thoughts from all of you in
                                                              terms of the impact of broadband and what you think we need to
                                                              be doing more of at our level.
                                                                 Maybe we can start with Ms. Folks on this one.
                                                                 Ms. FOLKS. Thank you. Yes. I think that is a serious issue, not
                                                              being able to have the availability of broadband in the rural areas.
                                                              It is also a serious issue that we have seen through the pandemic
                                                              with our lower-income individuals as well. They may have
                                                              broadband available, but they do not have a way to maybe pay for
                                                              that and to be able to have Internet services or be able to know
                                                              how to access when things are shut down. And so some of the areas
                                                              we are really working on is how to develop, we have sector partner-
                                                              ships that we are building and broadband to work hand in hand
                                                              with the business and industry to really help tell us how to get it
                                                              out there, how to build apprenticeships, and how to develop that.
                                                              And we continue to work with our rural areas. I have some of that,
                                                              not much in our area, so we continue to work with them and our
                                                              community colleges on how do we develop those types of appren-
                                                              ticeship opportunities to be able to get that. But also, then work-
                                                              ing, like I said, with businesses to get the broadband out there.




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                                                                 Just quickly, one of the partnerships we do have is working to
                                                              get that into our customers’ hands. So part of not only paying and
                                                              supporting them and training; it is also supporting them with those
                                                              support services to get them that as well so that they can be suc-
                                                              cessful.
                                                                 Chairman CROW. Thank you.
                                                                 In my 2 minutes I have remaining I would love to hear maybe
                                                              1 minute each from Mr. Schaffer and Dr. Nightingale on that issue,
                                                              and then Ms. Moore, I move back with you additionally in a mo-
                                                              ment.
                                                                 Dr. Schaffer?
                                                                 Mr. SCHAFFER. Thank you, Mr. Chairman.
                                                                 Broadband is certainly an issue for us. It is an issue across rural
                                                              America. And when I talk about Main Street, it is truly an issue
                                                              on our historical Main Streets in trying to find a way to bring
                                                              connectivity to our downtowns in smaller communities. The broad-
                                                              er issue I think really pertains to infrastructure because popu-
                                                              lation, and as a result, revenues do not follow substantially enough
                                                              to reinvigorate or install new infrastructure in these communities.
                                                              They are just hamstrung, and it makes it more and more difficult
                                                              to learn and to work and really have a life in that environment.
                                                              So broadband is a big issue, but I would say general infrastructure
                                                              is also an issue once you move out of metro areas.
                                                                 Chairman CROW. Thank you.
                                                                 Dr. NIGHTINGALE. I was asked that. Certainly, additional
                                                              funding for infrastructure development that is focused on IT could
                                                              have a major effect, especially in rural areas just as rural elec-
                                                              trification many decades ago did. And with some investment on
                                                              subsidized employment which we heard a little bit about from Ms.
                                                              Folks, that there could be a combined investment by Congress that
                                                              invest in subsidized employment to provide the additional staff for
                                                              facilitating the use of the technology that the investment in IT in-
                                                              frastructure and broadband could support. So it is a combination
                                                              of developing the broadband but then also having the technical
                                                              training for people to use it appropriately.
                                                                 Chairman CROW. Great. Thank you.
                                                                 Ms. Moore, in 20 seconds, do you have any thoughts on that?
                                                                 Ms. MOORE. I do. Not only is it the availability of broadband
                                                              but it is the quality of the broadband. Particularly, in our area
                                                              where it is very rural. We have stability issues. We have accessi-
                                                              bility issues. So that is another consideration that possibly these
                                                              companies will have to be incentivized to provide not only
                                                              broadband but quality broadband.
                                                                 Chairman CROW. Okay. Thank you.
                                                                 Now, I wanted to open it up. I think Mr. Balderson, the Ranking
                                                              Member, would be up next. I do not know whether Mr. Balderson
                                                              is still with us or not at this point. Troy, are you still on?
                                                                 Give him a moment.
                                                                 Well, we will see whether he is having some technical issues
                                                              which he might. I want to give myself another 5 minutes. That is
                                                              the benefit of being the Chair.
                                                                 I actually would love to maybe give each of you a minute in that
                                                              5 minutes to ask a broad open question. If you had a magic wand




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                                                              and you could have Congress focus on one thing to address the big-
                                                              gest challenge you are facing right now, what would that be?
                                                                 So let’s maybe start in the reverse order again from which we
                                                              just ended, and we will start with Ms. Moore.
                                                                 Ms. MOORE. I believe the assistance to the education system in
                                                              coordinating and advertising these programs and connecting them
                                                              with the employers who directly need these positions. Overseeing
                                                              a very coordinated effort.
                                                                 Chairman CROW. Almost like a [inaudible] role.
                                                                 Ms. MOORE. Exactly. Exactly.
                                                                 Chairman CROW. Dr. Nightingale?
                                                                 Dr. NIGHTINGALE. I think that probably to me one of the most
                                                              important things is to expand the resources for the local job centers
                                                              and to expand it in a way that allows the centers to have more peo-
                                                              ple there accessing the services, particularly in the nonurban areas
                                                              or in high unemployment areas because there are resources for
                                                              training that can be accessed but the people need to know how to
                                                              access those resources effectively.
                                                                 Chairman CROW. Thank you, Doctor.
                                                                 Dr. Schaffer?
                                                                 Mr. SCHAFFER. Thank you, Mr. Chairman. I have trouble
                                                              choosing so I will only pick two. The first one of course is the estab-
                                                              lishment of a major community college job training program. Some-
                                                              thing similar on the magnitude, it is bigger than the TAACCCT
                                                              grants that were very successful, something similar to what is
                                                              being proposed in the Relaunching America’s Workforce Act or per-
                                                              haps the Access to Careers Act or even the Community College
                                                              Training Program and the Coronavirus Child Care and Education
                                                              Relief Act. We need to stimulate new training, new opportunities
                                                              in workforce development funding to community colleges at that
                                                              scale are critical as Dr. Nightingale said. I would also suggest dur-
                                                              ing the reauthorization of WIOA, we really think about resources,
                                                              we think about further [inaudible] of partners, and we think about
                                                              ways to streamline and maybe allow for the authorization of com-
                                                              munity college applied programs in a more effective and efficient
                                                              manner.
                                                                 Chairman CROW. Thank you, Dr. Schaffer.
                                                                 And Ms. Folks, as the Coloradoan on the panel you get the dis-
                                                              tinction of having the final word.
                                                                 Ms. FOLKS. Thank you.
                                                                 You know, I think for us, similar to what was said, it is the re-
                                                              sources and the funding but most importantly also with that is the
                                                              flexibility to be able to meet what the local community needs are
                                                              and to be able to really listen to our business and industry and
                                                              what they are telling us. When we have a lot of regulation, and I
                                                              know it needs to be there but when there is too much it makes it
                                                              difficult for us to really build those innovative programs which we
                                                              really need right now especially to get people back. And so being
                                                              able to have that flexibility is very important for us along with the
                                                              resources and funding because then we can build programs that
                                                              are going to meet the needs of the business and industry and our
                                                              communities, and we can have those more creative ways of making
                                                              sure we get our people back to work.
                                                                 Chairman CROW. Thank you, Ms. Folks.




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                                                                 So with that, our time has run out here. I know we could prob-
                                                              ably talk for the rest of the day or days on this topic because there
                                                              is really so much to address, but we do appreciate your time.
                                                                 So again, thank you to all of our witnesses today for your testi-
                                                              mony and for offering their views on how to get millions of unem-
                                                              ployed Americans back to work. By sharing your experiences and
                                                              expertise, we, as the policymakers in Washington that are looking
                                                              at how to guide resources and also coordinate the various efforts
                                                              going on, really need to hear your perspectives. So you all are
                                                              where the rubber meets the road here, you are providing the direct
                                                              resources, the direct training and making it happen in your com-
                                                              munities, and it is really your voices that are the most important
                                                              for us to hear during this crisis. So thank you. I look forward to
                                                              the opportunity to work with you and your organizations to figure
                                                              out ways that we can be more helpful and lift up all of your efforts.
                                                                 So I ask unanimous consent that members have 5 legislative
                                                              days to submit statements and supporting materials for the record.
                                                                 Without objection, so ordered.
                                                                 If there is no further business to come before the Committee, we
                                                              are adjourned today. Thank you. Thank you all.
                                                                 [Whereupon, at 2:06 p.m., the Subcommittee was adjourned.]




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                                                                                                   APPENDIX




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49c32945aabbb4a2c77c3ae1fb10c992d4019887488cb33ff746458ac0ef960d
Our copy
CHRG-116hhrg41298.pdf
Original
www.govinfo.gov
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