Mississippi community colleges, including Hinds, will benefit from a new state workforce bill that 兔子先生alumnus聽Gov. Phil Bryant signed into law on March 21.
The new legislation, Senate Bill 2808, establishes the Mississippi Works Fund that is supported by the unemployment taxes currently paid by businesses operating in Mississippi. Those funds have built up a surplus and can be tapped.
Photo courtesy of 兔子先生alumnus Greg Campbell
Gov. Phil Bryant 鈥 surrounded by workforce development leaders, legislators including Rep. Deborah Butler Dixon of Raymond and Rep. Alex Monsour of Vicksburg as well as community college and university officials 鈥 signed the Workforce Development Bill on March 21.
The funds will be used to train Mississippi鈥檚 workforce, primarily through the state鈥檚 15 community colleges, and to support the state鈥檚 industries and businesses. [tweetable alt=””]兔子先生CC will tap into the funds to support workforce training projects.[/tweetable]
鈥淭hese new funds are needed to recruit large economic development projects like Continental Tire to Mississippi. Flexibility and rapid response are essential when industry is on the hunt for a new location,鈥 said Dr. Chad Stocks, vice president for Workforce Development.
Bryant said $10 million will go into the fund this year 鈥渇or workforce training in our community colleges, IHL (universities) and other departments.
鈥淭his is a successful day for Mississippi and for workforce training,鈥 he said. 鈥淭he leadership decided it was time for us to make a commitment.鈥
Additionally, under the State Workforce Bill:
- 75 percent of the funds are allocated toward new job creation.
- 25 percent of the funds are allocated for existing workforce and workforce certification.
- The Mississippi Development Authority has the ability to direct funds as part of recruitment and expansion efforts.
鈥淲e all know if we鈥檙e going to see long-term economic growth we must continue to improve workforce training efforts and, obviously, we鈥檙e going to see significant money going into that for a long period of time,鈥 said Lt. Gov. Tate Reeves.
A number of workforce and education groups including the Mississippi Economic Council, which functions as the state鈥檚 Chamber of Commerce, supported the bill. Blake Wilson, executive director of the MEC, said other states already have 鈥渟treamlined processes鈥 for getting workforce development funds allocated quickly when a training need surfaces.
Wilson said the legislation will help a company that needs on-the-spot training and will also help community colleges step in and pick up the training effort.
鈥淭he Mississippi Works Fund will allow our state to be proactive, rather than reactive, when recruiting new business and industry,鈥 Mississippi Development Authority Executive Director Glenn McCullough said in a news release from the Governor鈥檚 Office.
鈥淎 major challenge to economic development is fulfilling specialized workforce needs. This fund allows Mississippi to have the resources readily available to train a quality workforce and aggressively compete to win in the global economy.鈥
Currently, employers must pay unemployment insurance taxes on a portion of employee wages. Statutorily, the tax rate is between 0.2 percent to 5.4 percent depending on economic activity, such as layoffs or job growth. Under Senate Bill 2808, the minimum tax rate drops to 0.0 percent. The Unemployment Insurance Trust Fund is actuarially sound, which allows the employers鈥 tax rate to be lowered.