Customized Training Program
Contact: Anna Nikolaeva
State Board for Community and Technical Colleges
P.O. Box 42495
Olympia, WA 98504-2495
State Website: http://www.sbctc.edu/college/_e-wkforcecustomizedtraining.aspx
Participation: 42 businesses and 1,493 trainees were served by the Customized Training Program in five years of operation, between July 1, 2006 and May 1, 2015.
Who is Served: Businesses and their current or future employees.
Business Eligibility: An eligible business must be:
- Located or locating in Washington and providing employment opportunities.
- A Washington state Business & Occupation taxpayer.
- Able to contract with an eligible training provider for desired training.
- In need of short-term employee training (less than 12 months).
Trainee Eligibility: Trainees may be prospective, new, or incumbent workers in the business.
Training Institution Eligibility: Eligible training institutions include Washington’s 34 community and technical colleges as well as any private career school or college that is licensed by either the Workforce Training and Education Coordinating Board or the Higher Education Coordinating Board.
Program Description: A training institution delivers dedicated customized employee training as requested by the business. The level of customization ranges from existing training curriculum delivered at the job site to fully customized training curriculum developed exclusively for the business.
Other Program Characteristics: A three-party contract is signed by the participating business, the training institution, and the State Board for Community and Technical Colleges (SBCTC). Funds are drawn by SBCTC from the Employee Training Finance Account and provided to the training institution as expenses are incurred. Upon completion of the training, the business is invoiced by SBCTC for repayment, and all repayment is deposited back into the Employment Training Finance Account. SBCTC reports business repayments to the Department of Revenue monthly. Businesses repay the funds interest-free over an 18-month period and claim tax credits equal to 50 percent of the amount as they repay. Credits earned in one calendar year may be carried over to a subsequent year. No credit will be allowed on or after July 1, 2021.
Program History: The state Legislature created the Customized Training Program in 2006.The Legislature determined that customized training is critical to attracting and retaining businesses, and also improves the quality of life for workers and communities. The program reduces the costs of training to new and expanding firms by providing a tax credit equal to 50 percent of the cost of the training.
Planning Cycle: Ongoing until program expiration date of July 1, 2017.
Outcome Measures: From July 2006 to June 2009 participating businesses were required to add new jobs in Washington. The job growth requirement was the addition of three jobs for every four people trained (75 percent of the number of trainees). Job growth in each participating business was reported by the business one year after the training program was completed. Under this measurement, the additional job growth reported totals to 231 new jobs with some reports still outstanding.
In 2009, the job growth metric was changed to “a good faith effort” to hire from the trainees. From July 2009 to June 30, 2011, 362 trainees have retained their employment or been hired by businesses that participated in the customized training program.
Funding and Regional Division: This is a statewide program and available to all businesses that meet eligibility requirements. Maximums of $3,000 per trainee for businesses with 50 or more employees and $6,000 per trainee for businesses with fewer than 50 employees are allowed.
State Funding: $331,470. The Employment Training Finance Account is a revolving loan fund created for the Customized Training Program.
Federal Funding: None.
Statutory Authority: State - RCW 28B.67. Administered by the State Board for Community and Technical Colleges.