Check out the incredible landscape and wildlife photos in the Piedmont Environmental Council’s 7th annual photo contest! The photo above shows the Shenandoah River in Clarke County. What a beautiful state we share!
What really impressed him, Clemente added, is that Moret traveled to Georgia to study its workforce development initiative, developing a similar model in Louisiana called FastStart. “He hired the No. 2 guy in Georgia and brought him to Louisiana to make the program work,” Clemente said. “He’s good at executing ideas.”
Clemente said Moret —who was not present at Monday’s meeting — has read JLARC’s 132-page report. “He looked at it and said, ‘Dan, this is all administrative. I can take care of it. ’” Clemente said Moret wanted to come to Virginia because “ ‘your location draws Fortune 500 companies, and that creates a lot of opportunities for me.’ ”
Bacon’s bottom line: Moret seems like a promising choice for the job, and it will be interesting to see where he takes VEDP. An experienced executive should be able to address the managerial issues raised by JLARC. Of greater import will be his ability to connect corporate recruitment with workforce development.
The number one driver behind corporate investment today is gaining access to a skilled workforce. As we have blogged on Bacon’s Rebellion repeatedly, tens of thousands of jobs across the state are going unfilled because of the inability of existing employers to find employees with the necessary qualifications. Needless to say, staffing is an issue to out-of-state company considering an investment in Virginia as well. The skills gap tells us that a massive disconnect has developed between the workforce, employers and the educational/ training institutions that impart needed skills.
Since 1965, the Virginia Jobs Investment Program (VJIP) has provided training to companies creating new jobs. That program has undergone considerable bureaucratic turmoil over the past 20 years, shuffling in whole or in part between the old Department of Economic Development, the Department of Business Assistance, the Department of Small Business and Supplier Diversity, and then back to VEDP, according to a 2014 VEDP presentation.
Between 2010 and 2014, the program shrank from 16 operational and support personnel to six. In other words, while Louisiana was building a best-in-class workforce development initiative, it appears that Virginia was decimating its own program.
From a philosophical perspective, investment incentives such as special subsidies and tax breaks smack of corporate welfare. The beneficiaries are corporations, often highly profitable ones. There is no moral justification for such transfer payments, only the practical justification of bribing an out-of-state company to locate in Virginia. By contrast, workforce training benefits both the corporation and the employees benefiting from the training. While some such skills imparted in highly tailored training programs may be company-specific, employees often acquire skills they can apply elsewhere. Viewed another way, workforce training is an investment in Virginians, not out-of-state corporations with no demonstrated long-term commitment to the state.
Given a choice between bribing companies with subsidies and tax breaks or subsidizing their workforce training, I would choose training in a heartbeat. Indeed, if one of Mr. Moret’s priorities is to recreate his Louisiana workforce-training success here in Virginia, I would suggest that the General Assembly could provide him with all the money he needs from the Commonwealth’s Opportunity Fund.