CUSTOMIZED TRAINING PROGRAM

Carol Melby
State Board for Community and Technical Colleges
P.O. Box 42495
Olympia, WA 98504-2495
Telephone: 360.704.4340
E-mail: cmelby@sbctc.edu

State Website: http://www.sbctc.ctc.edu/college/_e-wkforcecustomizedtraining.aspx

Participation: Ten businesses and 293 employees were served in the first 15 months of the program’s operation during August 1, 2006-October 30, 2007.

Who is Served: Businesses and employees.

Business Eligibility: An eligible business must be:

• Adding jobs in Washington state.
• 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 perspective, 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 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 may range from existing training curriculum delivered at the business’s location 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 the 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 the SBCTC for repayment, and all repayment is deposited back into the Employment Training Finance Account. The 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, 2016. 

Program History: The Washington state Legislature created the Customized Training Program (CTP) 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, 2012.

Outcome Measures: Participating businesses are required to add new jobs in Washington state. The job growth requirement is the addition of three jobs for every four people trained (75% of the number of trainees). Job growth in each participating business will be reported by the business one year after the training program is completed. A full year’s time has not elapsed yet for any of the projects; however, collective projected job growth for the first 10 projects is 406 new jobs.

Funding and Regional Division: The CTP is a statewide program and available to all businesses that meet eligibility requirements. A maximum of $500,000 per business per year is allowed. 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: $3,075,000 (Employment Training Finance Account), a revolving loan fund in the custody of the state treasurer and in effect from July 1, 2006 through June 30, 2012.

Federal Funding: None.

Statutory Authority: State - RCW 28B.67. Administered by the State Board for Community and Technical Colleges.