by LaStar Matthews

Worker skills and education are the key contributors to individual economic success, as well as the competitiveness of local and regional economies. 

In today?s knowledge economy, that statement holds true for rural as well as metropolitan areas. Workforce development programs and services provide a vital link to employment opportunities, education and training, and career advancement for disadvantaged youth and adults.

There are a variety of strategies for financing workforce development initiatives for youths and adults.  In addition, successful program leaders will probably use multiple approaches to mobilize the resources needed to finance workforce development initiatives. 

One approach is making good use of available federal funds.  Federal grant programs offer a potentially important source of revenue for starting, operating, and expanding workforce development initiatives.  Maximizing federal funding can help leverage other funds, build a more sustainable base of funding and increase program capacity. 

Another approach is diversifying sources of federal funding and making the most effective use of these funds for workforce development leaders.  The creative use of these funds can also support and enhance the delivery and coordination of workforce services and supports.

In Finding Funding: A Guide to Federal Sources of Workforce Development Initiatives, the Finance Project discusses the range of resources available to rural and non-rural communities alike as they seek to build the skills and knowledge of local workers.  This guidebook provides a catalog of 87 federal sources as well as guidance on accessing federal funds and strategies for maximizing federal funds and building partnership to support workforce development initiatives for adults and youth.  

These resources include: 

? Federal Investments: Federal workforce development initiatives include Workforce Investment Act (WIA) programs, Temporary Assistance for Needy Families, State Vocational Rehabilitation Services and the Job Corps program.

? State Investments: States invest their own resources in workforce development, particularly in the area of skills development, to supplement federal programs and create their own state programs.  Nearly all states have state-funded ?incumbent worker? programs financed through general fund appropriations, funds tied to the Unemployment Insurance program or other funding mechanisms.

? Local Investments: Supported by a combination of resources such as general funds and revenue from special taxes, cities and counties across the nation are working to improve the effectiveness of the workforce development system. 

? Private Investments: Private foundations in recent years have paid increasing attention to workforce development issues and projects.  The Annie E. Casey Foundation, for example, launched its Jobs Initiative in 1995; and Casey?s Making Connections initiative focuses on strengthening families and neighborhoods by increasing their earnings and income through workforce development strategies.  Other foundations, such as the Charles Stewart Mott Foundation and the Ford Foundation, are working on similar projects.

? Finding Funding: A Guide to Federal Sources of Workforce Development Initiatives is part of a series of tools and technical assistance resources developed by the Finance Project for the Annie E. Casey Foundation?s Making Connections Initiative and other community and workforce development initiatives.  To download a copy of the guidebook, see http://www.financeproject.org/Publications/workforcefunding.pdf.

Founded in 1994, the Finance Project is a specialized non-profit research, consulting, technical assistance and training firm for public and private sector leaders nationwide.  They help leaders make smart investment decisions, develop sound financing strategies and build solid partnerships that benefit children, families and communities.