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Rule Change Could Have Huge Impact on Michigan Works!

Jun 08, 2022

Public Asked To Offer Comments To USDOL On Proposed Changes

Before coming to Michigan Works! West Central for assistance with schooling, Kristen Rodriguez wasn’t sure if she was going to be able to complete her dream of becoming a registered nurse.


She had recently moved home after dropping out of the pre-med program at Grand Valley State University, and found work at Spectrum Health Ludington Hospital as a nurse tech, earning less than $12 per hour. Kristen felt defeated and wasn’t sure what she was going to do with her life.


Her struggles continued as she distanced herself from family and friends to focus on her schoolwork. The exams in the nursing program at Muskegon Community College were more challenging that anything she experienced in high school and GVSU. She was constantly exhausted. 


Michigan Works! West Central was able to help with funding for nursing school and provided assistance with school supplies. Within two years, Kristen graduated and passed her state certification shortly thereafter. She was hired as a RN, earning nearly $27.50 per hour.


“Succeeding as a registered nurse is the proudest moment of my life,” she said. “If someone is struggling in their career or is struggling to make a choice for their future, I encourage them to look at the things they have accomplished and what they have passion for. I’d also make sure to tell them about Michigan Works! West Central and how much they helped me get where I am now. This is such a great program to help people chase their dreams.”


Michigan Works! Agencies across the state have helped countless clients like Kristen achieve their dreams. The Michigan Works! system has proven its “one-stop” method of Wagner-Peyser Employment Service delivery is best-in-class, with Michigan consistently outpacing the national median for performance and consistently having one of the lowest costs per participant in the country.


But now, Michigan Works! is at risk of not being able to help the 675,000 job seekers and 32,000 businesses it does each year under proposed changes by the U.S. Department of Labor.


The Wagner-Peyser Staffing Act proposed rule as written by the USDOL Employment and Training Administration would remove the State of Michigan’s authority over its workforce system service delivery model, leaving employers and job seekers with a disjointed, less efficient structure.


What is Wagner-Peyser, and why does it matter?


Michigan Works! uses Employment Service (Wagner-Peyser) funding to meet the needs of employers and job seekers. These services and funds are integrated into everything Michigan Works! does. Employment Service is the foundation of the statewide system.


Without these core services and funds, at least 20 of the 99 Michigan Works! American Job Centers across the state will be forced to close, primarily those serving rural communities.


It gets worse.


A survey of the 16 Michigan Works! Agencies, compiled with state and federal performance data, found if the proposed rule is implemented 80 percent of Michigan Works! Agencies would be forced to reduce services to veterans; 62 percent to eliminate and 18 percent reducing immigrant and refugee navigator services; 63 percent eliminating and 31 percent reducing Clean Slate services for formerly incarcerated people; and 86 percent will have to reduce the more than 9,000 career awareness events – mostly for youth and college students – including the award-winning MiCareerQuest events.



We would also be facing a dramatic reduction of business services, including 88 percent of Michigan Works! Agencies providing decreased assistance with recruiting and retention services; 100 percent forced to reduce and eliminate job fairs; and 87 percent forced to cut support of industry-led collaboratives, would hinder our employers’ abilities to grow and thrive in this challenging labor market.


The intricate and monumental partnership of local Michigan Works! Agencies and the State of Michigan in coordinating and administering the Going PRO Talent Fund would be decimated, with 88 percent of agencies having to dramatically reduce their employer outreach and application support efforts, while two agencies would be forced to discontinue Going PRO Talent Fund support altogether.


If implemented, the new staffing rule would also result in job loss in the system, estimated at the loss of 220 full-time equivalents. This total loss of Wagner-Peyser funding would result in staffing funds that are currently distributed among more than 400 staff with different skills and specialties being cut down to 100 full-time state merit staff, who will each have to assume a caseload of nearly 1,000 people a year without the direct connections to other programs or funds to serve them.


If these proposed changes are approved, it would be devastating to the Michigan Works! Network, and the thousands of job seekers and employers we service each year.


But Michiganders are not without power.


Residents, elected officials, business owners and leaders can speak and be heard. A public comment period is open until June 21, 2022, and we are asking for your help. Visit shorturl.at/hvCHP to leave a public comment about why you want Michigan’s workforce system to stay as it is. Share your experiences with Michigan Works!, and take action to protect those who protect and support so many others in our communities.  


You also can add your name to a growing list of signatures on a statement to elected officials and policy decision makers opposing the proposed changes at shorturl.at/esEJ7.


Together, we can make a difference. 

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