Funding Strategies and Sustainability

 

Key Considerations for Long-Term Sustainability

 

Support funder collaboratives

Workforce funding collaboratives exist across the country. Typically, these collaboratives are established at the regional level and are made up of private foundations, industry and public systems. They often support local sector initiatives. One way for a state to support these regional collaboratives is by making matching funding available. Another is by aligning state funding with funder collaboratives’ goals and strategic vision.

Sustainability is much more than funding

Although sustainability is highly dependent on identifying and accessing ongoing resources to sustain the sector strategy at both the state and regional levels, sustainability encompasses other important elements. If partners do not buy-in to the underlying concept and goals of sector strategies, they will not invest time, effort or money in the strategy. Likewise, if partners do not see the value of the partnership as documented by data and information, the effort will be difficult to sustain. Financial investment is often an excellent metric to evaluate the partners’ buy-in (people fund what they believe works), but marketing, employer engagement and collaborative problem solving will be as important as funding to sustaining the effort.

Provide dedicated funding for state level planning and operations

As discussed previously, developing an effective state level sector strategy and corresponding regional initiatives takes time and focus. Allocating a portion of an existing state level staff person’s time to this effort will likely not be enough – states should strongly consider providing some base line funding to support full-time planning and operations of the strategy.

Remember, there is no “magic bullet”

Although there are numerous tactics that states can take to leverage their state and federal funds to support regional sector initiatives, it is important to understand that the unique political and financial circumstances in each state will warrant different models and solutions – there is no one funding model that will work in all cases. Only through meaningful discussion and negotiation will partners be able to develop funding and sustainability strategies that are right for their agencies and their state. If the common vision and impacts are clear (and the partners view sector strategies as a way to meet their organizational goals), there are numerous permutations of innovative funding and sustainability strategies that can be utilized.

Include sector funding in “broad umbrella” initiatives

Some states allocate funds to sector strategies by including them in broader workforce or economic development initiatives. For example, through its No Worker Left Behind initiative, Michigan allocated $5 M in general funds to the Michigan Nursing Corps.

Broaden the financial support of sector strategies beyond WIA funding

Several state officials indicated that it is crucial to expand the funding base beyond WIA funding. This is important for partner “buy-in,” long term sustainability, and reducing the perception that sector strategies are strictly a “workforce program.”

 
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