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87-771 WHITE - CITV CLERK PINK - FIN/�NCE G I TY O F SA I NT PA U L Council CANARV - DEPARTMENT 7 BLUE - MAVOR File NO. �` _ �� Council Resolution � Presented y � � �> Referred To �� .(�^ Committee: Date ��5�� J Out of Committee By Date WHEREAS , The McKnight Foundation has approved a grant to the City of Saint Paul providing $1 , 740,664 for the City's development and delivery of a one year high-support employment program called McKnight TRANSITIONS serving 190 of the City' s hard to employ; and WHEREAS , The Foundation has requested that the funds be placed in an interest bearing account generating additional program revenues estimated at $80, 000; now, therefore , be it RESOLVED, That upon recommendation of the Mayor, the Council of the City of Saint Paul does hereby approve the City' s participation in TRANSITIONS ; and be it FURTHER RESOLVED, That the City hereby accepts the McKnight Foundation grant to fund the TR.ANSITIONS Jobs Program Proposal dated February 24, 1987 in accordance with the provisions of said Proposal and the conditions of the McKnight Foundation grant letter dated March 10, 1987 ; and be it FINALLY RESOLVED, That the 1987 Special Funds budget be amended as identified below: Activity 36571 -- McKnight TRANSITIONS Program Fund 346 -- Nongovernmental Employment and Training Program A multi-year grant. COUNC[LMEN Requested by Department of: Yeas p�eW Nays Nicosia ln Favor Rettman Scheibel so,,,,e„ _ Against BY Tedes�o Wilson Form Approved by City Attorney Adopted by Council: Date Certified Passed by Council Secretary BY B}• Approved by iNavor: Date _ Approved by Mayor for Submission to Council BY - - — BY WHITE - CITV GLERK PINK - FINANCE GITY OF SAINT PAUL Council CANARV - DEPARTMENT BLUE - MAVOR File NO• � ��/ Council Resolution Presented By Referred To Committee: Date Out of Committee By Date Page 2 Current Increase Revised FinancinQ Plan Bud�et (Decrease) Bud�et McKnight-TRANSITIONS Program Miscellaneous Grants GL-346-36571-3699 -0- $1 ,740,664 $1,740,664 Interest on Advance GL-346-36571-6604 -0- $ 80,000 $ 80,000 Total Financing Plan -0- $1,820,664 $1,820,664 Current Increase Revised Spending Plan BudQet (Decrease) Budget Operating Transfer Out GL-346-36571-0537 -0- $1,773,664 $1,773,664 Subcontractor Payments GL-346-36571-0547 -0- $ 47,000 $ 47,000 Net Change -0- $1 ,820,664 $1 ,820,664 APPROVED AS TO FUNDING: � Eugene A. Schiller Director �, � Finance and Management Services��`,-�1 �� COUNCILMEN Requested by Department of: Yeas Drew Nays N��os�a � Pla 'ng & Economic evelopment Rettman I[1 FBVO[ Scheibel �,(�� Sonnen �__ Against BY � �aiae� Wilson Adopted by Council: Date �� 8 �� Form Ap r d by City Attotn Certified Vass d C u cil ec ry BY �� By. ��- Appr by ,Navor. Date _�U� — z �� Appro ed by Mayor fo ubmission to Council . PUBIiSl1�D J U i�� G 19$7 0 Job Creation & Training/PED DEPARTMENT ,. ' �� N. _ 06628 Jacqui Shoholm CONTACT 228-3262 PHONE . April 6, 1987 � DATE Qj�� ,, Q, � ASSIGN NUhB ER FOR ROIITING ORDER (Clip All LoEations for Si na�ure): �epartment Director � Director of Management/Mayor 6 Finance and Management Services Directo � 8 City C]erk -5�--_ ,� � . City Attorney �\?5�� 9-�� William Patton , • Y AT WILL BE ACHIEVED BY TAKING ACTION ON THE ATTACHED MATERIALS? (Purpose/ Rationale) : The attached Council Resolution wiil amend the I987 Special Funds Budget providing for the acceptance of funds to operate a high support employment and training program for 190 hard to employ Saint Paul residents. The Program, TRANSITIOI�S is .funded by the McKnight Foundation for the periad April 1; i987 through March 31, 198$, and provides services otherwise unavailable to the hard to employ in Saint Paul. COST/BENEFIT, BUDGETARY AND PERSONNEL IMPACTS ANTICIPATEDs ` $1,820,664 will be added to the City's Special Funds Budget. Funds will he allocated to Independent School District #625 for client services and administration, and to the City to administer the Grant. �e- �riod covered is /�,�,(��E�3/31/87. � Kt�. APR 21 1987 . �INANCING SOURCE AND BUDGET ACTIVITY NUNBER CHARGEO OR CREDM��R�(SN��3 signa- ture not re- Total Amount of "Transaction: $1,820,664 quired if under � $10,00Q) Fundi�g Source: McI€�ight Foundation � Activity Number: 36571 • ATTACHMENTS (List and Number Al l Attachments) : �` RE�EIVED � APR 2 � 1987 One Council Resolution for Review and Approval. ��ICE QF THE F-�t. Z � �p P�M►A�W4GENT pF�AN�E ` MEryr SE � /�1�,�1,I,U�, Rvic QEPARTMENT REVIEW GITY ATTORNEY REYiEW ° Yes No Council Resolution Required? ' Resolution Required? �es No Yes No Insurance Required? Insurance Sufficient? �'�'es ��. No Yes No Insurance Attached: (SEE �REVERSE SIDE FOR INSTRUCTIONS) Revised 12/84 Whit� — City C��rk C I TY O F SA I 1\'T ��A U L Pink — Fi��ne�O�pt. ' Gnsry— O�pt. <)N'Y'!G!; OF TFlY. MAl'()R ��`77� No: ADMINIS'IRATIVE ORDER � I3l'IX,E7'I2I;�7tiI0� Date: :3D�IL�'ISTR.�TI<"E ORDER,Consistent with the�Uhb I�I C9 WO��5 the Mayor in Section 10.07.4 of the City Charter and based on the req st of the Director of the Department of _ to amend the 19�budget of the Cap i ta� Pr0 1 eC t 5 fund.the Director of the Department of Finance an�+Management Services is authorized to amend said budget in the fotlowing manner: Current Amended Budget Change Budget 1985 Public Improvement Aid Long-side St. Improvements (S-6622) , 807-62965-7399 75,000.00 (23,445.84) 51 ,554.16 ' 1 , Long-side St. Imp�ovements (S-6622) C87-2T500 16,100.00 (12,554.16) 3,545.84 Combined Sewer Separation (S-6650) C87-2T602 24,371 ,138.24 36,000.00 24,407,138.42 To transfer 1985 PIA Long-side St. Improvement (S-6622) budget � 1987 Long-side St. Improvements (5-6622) to Dale-Hoyt CSSP (5-6650) . � � +/ �- �" ,�� Prepered by: tivity Manager Approved by: r � - } �� S by:DepaRment df �� ° THE McKNIG �-iT FOUNDATION � �. 410 PEAVEY BUILDING • MINNEAPOLIS,MINNE50TA 55402 (f` �1 '7�� 'x'ELEPHONE:(612)333-4Z20 March 10, 1987 No. 87-054 The Honorable George Latimer Mayor City of Saint Paul 347 City Hall Saint Paul, Minnesota 55102 Dear George: The Directors of The McKnight Foundation have met to revie� qour funding application, "The McKnight Transitions Program" which was submitted by the City of Saint Paul in the amount of �5,981,936 (over a three-year period) and presented to our Board of Directors Meeting on February 24, 1987. I am pleased to inform you that after our reviewing the supplemental infor- mation submitted by you on February 27, 1987, the Board has approved a one-year grant in the amount of $1,740,664. This grant vill cover the per- iod of April 1, 1987 through March 31, 1988. The funds will be spenC as proposed in the above noted documents furnished by your office. Our check in full and final payment of this grant is enclosed. It is my understandi:►g that an evaluation will be available on/or before March 15, � 1988, so that the Foundation's Board of Directors may review the first year's progress and then will have the opportunity to re-assess its poten- tial funding commitment to the last two years of the program (1988-1989 and 1989-1990). Would you please acknowledge receipt of this grant payment and the condi- tions necessary for our review of the final two years af the program. I trust that these funds will he placed in an in.�erest bearing account and that all interest earned will be used �rithin the €ramework of the program. We realize that this is a high-risk opportunity and also recognize that the current environment demands the opportunity for °'hope" to many of our under-priviledged citizens. I believe you have made a creative reponse to our request to "initiate a worthy program for those needing and seek- ing employment." We're pleased to once again h� a partner with the City of St. Paul in a creative venture-. Sincerel�, �i=� � r (��...� �� `` /�,�: ,, ,-- Russell V. Ewald Executive Vice President � RVE:cm �� Enclosure: eheck I � � ��7-y�/ �� CITY OF SAINT PAUL �<<.t,o. e"� ',� OFFICE OF THE MAYOR �� iii�tl��i e` `F• � ��'�c 347 CITY FA7.7. GEOBGE LATIME$ SAINT PAUL,MINNE$OTA 66t02 IH�YO& �g12) L'98-4323 TO: The McKnight Foundation Board of Directors FROM: Mayor George Latimer RE: TRANSITIONS Jobs Program Proposal DATE: February 24, 1987 In Saint Paul, the hard core unemployed continue to suffer terribly in hopeless situations, notwithstanding available government programs. In most cases, putting these people to work requires much more than finding a job opening or providing training. They are out of work because they have needs that go beyond a simple training course. They often need child care, transportation assistance, medical care, counseling, or basic literacy schooling. These human needs are the real employment barriers. For a hard core unemployed person to make the TRANSITION to a permanent, unsubsidized job means that these barriers must be overcome. The State MEED Program provides subsidies to businesses to create jobs for unemployed citizens. The Federal JTPA Program provides resources for training only. But, neither program meets the comprehensive needs of our unemployed. We do not have a program that creates jobs while addressing multiple barriers to employment. We have had experience, through the Work Readines Program, in addressing the needs of a small number of people in a compre- hensive or "case management" manner. Under Work Readiness we established relationships with various public and private human service agencies to assist clients on an individual case-by- case basis. These services augmented our training programs and proved that it is possible to help the truly desperate, those that need our help the most. We learned that we can operate a program that will save people from a life of poverty and resignation. We can salvage lives and give people a chance to build self-esteem. The McKnight TRANSITIONS proposal will address over 650 hard core cases and concentrate on long-term results by linking service agencies and training and job placement resources with the needs of the individual. �6��i�..5 . -- - - - - � - - ��'� 77/ `�'�ie i�ichn�y.,� :��nc.a��ct; iioa�G o� L_��c.:�.,cr� Page Two February 24 , 1987 This project is very different from the Federal Jobs Program. Last week the Wall Street Journal reported that the "Federal jobs program is accused of shunning hard cases in seeking quick results. " TRANSITIONS provides the tools we cannot get from the present system in order to achieve long-term results. At nearly six million dollars over three years, we are proposing an ambitious program that has not been done before at the local level. It is a program that focuses on the hardest to employ. We are convinced we can do it. To do less may create good statistics. But that will not salvage lives or make a real difference. We are confident of our ability to achieve the project goals. The funding for the second and third years will be contingent on the results of our first year target. The target is to place 190 unemployed people in subsidized work slots (at $4 .50 to $5. 00 per hour) with 142 of them obtaining permanent, unsubsidized jobs ($5.80 to $7 .00 per hour) by the end �f the first annual cycle. The project is backed by an experienced staff who have been providing job training and placement services for over 15 years and who have received national recognition for their efforts. And, they have also faced difficulties, such as the unsuccessful Energy Park jobs project that taught us a number of things, including the need for single-point management accountability, for integrated economic development and employment staff functions, and for multiple work sites. (See section on "Administration and Coordination" for detail. ) By managing TRANSITIONS through my ,7ob Creation and Training Office we will coordinate the resources of the City's operating departments, the Center for Employment and Training at the Saint Paul Public Schools, and Ramsey County's human service programs. In the last two years we have changed management and cemented the connection between job placement and economic development. For example, while our small business program provided financing for the expansion of Saint Paul Classics, Inc. and Monarch Studios, City economic development staff made sure that the new jobs created were filled through our Job Creation Program. This connection ensures that the subsidized jobs translate into unsubsidized employment. A second and similar connection, through the City's Better Neighborhoods and community programs, also means that the jobs will directly benefit Saint Paul 's most economically depressed neighborhoods. As a bonus, this connection will also open up , C1,� �� 77� The TdcKnighi: Foundation Board of Directors Page Three � February 24, 1987 permanent city government jobs to some of the hard core unemployed. The challenge is to make these connections work and to offer a coordinated package of support services (literacy training, child care, skills development, placement follow-up, etc. ) so that a person currently resigned to a deadend economic situation will make a successful transition to an unsubsidized j ob. We are ready and committed to take on this challenge. We ask for your support. GL:bz , ��-7�� .�tT'o.; CITY OF SAINT PAUL ; � ± OFFICE OF THE MAYOR ° '�ii�i t�ii ; � M� �C ,... 347 CITY HALL SAINT PAUL, MINNESOTA 55102 GEORGE LATIMER (6t2) 298-4323 MAYOR \ TRANSITIONS A BETTER NEIGHBORHOODS WORK PROJECT PRESENTED TO THE MCKNIGHT FOUNDATION A THREE-YEAR PROPOSAL � FOR EMPLOYMENT INCOME AND SUPPORT SERVICES FOR SAINT PAUL 'S UNEMPLOYED, POOR AND AT-RISK POPULATIONS AS A WAY OF PROVIDING A TRANSITION TO SELF-SUPPORTING, UNSUBSIDIZED JOBS February, 1987 .. , ��--��/ TABLE OF CONTENTS Page �XECUTIVE SUNII�IARY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 BUDGET SPREADSHEET. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 BUDGET NOTES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 TRANSITIONS--NARRATIVE DESCRIPTION. . . . . . . . . . . . . . . . . . . . . . .21 AN EXAMPLE OF TRANSITIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . .24 TRANSITIONS PROJECT DESCRIPTION. . . . . . . . . . . . . . . . . . . . . . .28 Intergovernmental Coordination. . . . . . . . . . . . . . . . . . . . .30 OPERATIONALPRINCIPLES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33 Targeted Participants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33 Subsidized Work. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38 Placement Goals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39 Work Sites. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41 Permanent Jobs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43 Urban Preference Points. . . . . . . . . . . . . . . . . . . . . . . . . . . .46 Core Program Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46 An Average Client Example. . . . . . . . . . . . . . . . . . . . . . . . . .48 The Transition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50 TRANSITIONS PROJECT ACTIVITIES. . . . . . . . . . . . . . . . . . . . . . . .52 Targeted City Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . .52 Individual Placement Transitions Workers. . . . . . . . . . .54 Literacy Tutoring. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54 Early Childhood Family Education. . . . . . . . . . . . . . . . . . .55 Better Neighborhoods Economic Development. . . . . . . . . .56 Better Neighborhoods Transitions Services. . . . . . . . . .56 ADMINISTRATION AND COORDINATION. . . . . . . . . . . . . . . . . . . . . . .58 ATTACHMENTS Transitions Potential Worksites Jobs Placement Listing �� . � �-�-�� E%ECU'PIVE SUNIlKARY Submitting Organization: City of Saint Paul Office of Mayor George Latimer February 16, 1987 Authors- Mayor George Latimer Dick Broeker, Mayor's Office Jacqui Shoholm, Director of Job Creation and Training/City of Saint Paul Ron Finnegan, Center for Employment and Training/ Saint Paul Public Schools Purposes: To provide a job TRANSITIONS program for assisting 650 to 750 of Saint Paul 's unemployed and "at-risk" citizens caught in dead-end economic situations. And, to find self-supporting, unsubsidized jobs for this target population over the next three years. And, to use foundation funds to leverage the creation of new jobs in both the public and private sectors, to attract other participants and resources to Saint Paul 's Better Neighborhood Program, and to target community services and public improvements in Saint Paul 's most economically depressed neighborhoods. 1 . ��7� . Outcome: The intent is to realize at least a partial reversal in the ever-widening split between the haves and the have-nots in an older American city experiencing the pains and the stresses of a disproportionately larger number of poor people and of deteriorating or blighted urban neighborhoods having few institutional resources. Foundation Budget Request: $1,740,664 Year One $1, 959,985 Year Two _ $2,281,287 Year Three $5,981,936 Total for three-year project Percentage Budget Breakout: 82.3� - Client wages and fringe benefits directly received. This compares favorably to the federal standard of 70�. 9.5� - Administrative 8.2$ - Client support services including service staff, mileage reimbursement, bus cards, child care, tools, and clothing or personal supplies. Jobs Creation• It is anticipated that 666 subsidized jobs will be funded through foundation money. Additionally, it is anticipated that from this pool, 500 participants will obtain permanent, unsubsidized jobs or be involved in on-going training. This represents a success rate of 75$, approximately 15� higher than the national job program average. This does not mean that over 1, 150 new and permanent jobs will be created. Rather, the aim is to move over 2 � ��y� 500 participants into permanent �obs. As a bonus, some new permanent jobs will result from the transitional ( foundation subsidized) jobs. However, there is no way to accurately estimate what the actual total of these "bonus" �obs might be. To successfully fill the approximately 666 �ob slots, subsidized through foundation funds, it is anticipated that 750 applicants will be accepted into the program. This accounts for anticipated drop-out and attrition problems. Also, depending upon the availability of non- foundation funds to subsidize the TRANSITIONS jobs, more than the estimated 666 baseline �obs projected . will be created. The 666 figure refers to �obs entirely subsidized through foundation funds. This does not take into account other revenue sources that could be used to add more �obs or increase the - spread of the foundation subsidy. Again, until actual work pro�ects are implemented, it is not possible to estimate this particular spin-off benefit. The average cost per participant or �ob slot is $8,981. This is computed on a rate of 1,373 hours per year, the equivalent of a full-time job for the average 8 month period each participant will be in the TRANSITIONS program. Participants will be in the program for a minimum of three months to a maximum of 12 months. Participants will be selected from the at-risk pool of hard-core unemployed Saint Paul residents, with � 75$ of the total enrollment from the 17 to 30 year old age range, typically those having few skilis, 3 - . �� .�y� little work history, and little optimism about the future from an economic standpoint. After screening and selection, the participant will receive necessary job support services applicable in his or her given case. Then, the participant is placed in a subsidized job, most likely in the public sector. Many of the �obs will emerge from Saint Paul's Better Neighborhoods Program. . .a program designed to pump community services .and improvement pro�ects into Saint Paul's poor neighborhoods. The job settings and the work situation will be structured through a cooperative relationship . involving the Mayor's office, the Mayor's Better Neighborhood Program staff, the city's Office of Job Creation and Training, and the Center for Employment and Training managed through the Saint Paul School District. Through an intensive program of client support that will parallel �subsidized job placements, participants will be prepared for a transition into permanent, unsubsidized work or on-going education structured to remove the client from a dead-end economic situation. Job placement workers and project staff will assist in identifying or creating the unsubsidized job slots for participants after the subsidized job runs out (a year at the longest) . The 75$ success rate, representing movement into unsubsidized jobs, ' is possible because of the intensive support services, organized on an individual case basis, 4 . ��-7�� accompanying the subsidized position. In many respects this would be similar to a non-residential Job Corp program where multiple barriers are removed through multiple services or support resources. The added benefit, from the standpoint of Saint Paul 's poorer neighborhoods, is the community reinvestment that will occur because the subsidized jobs will be devoted to community services or improvements in the targeted neighborhoods. . .blending a non-residential Job Corp program with a WPA type program. The jobs will evolve from Better Neighborhood pro�ects, the TRANSITIONS project itself, and the over 400 work sites currently organized through the Center for Employment and Training. � Unlike the state financed and managed MEED Program, � this pro�ect will provide the services and the �ob subsidy directly through the participant. In the MEED Program, the funds flow to the private employer as a �ob subsidy. The TRANSITIONS program is the "missing link" in working with hard-core unemployed by utilizing available funding to not only subsidize the job directly through the participant, but also to organize the array of intake, support, and transitional services and resources required for a successful outcome. Leverage The expenditure of nearly $6 million of foundation funds to provide �ob income, underwrite support • services to individual participants, and facilitate community projects and programs will, in turn, 5 (�' �7✓�� leverage other non-foundation resources that will generate additional and immediate benefits. As specified later in the proposal, a variety of city, school district, and human service agencies will be involved in supporting the 666 subsidized jobs. . .making maximum use of available foundation funds for the target client group. For example, unemployed youth organxzed in a public improvement work team could receive both supervision and training from other agency resources leveraged by the initial foundation expenditures. Or, perhaps, some of the subsidized jobs will be partially funded from non- foundation funds. Additionally, city government from the Mayor down through the operating departments will be on call to constantly provide �ob opportunities or support assistance in the cause of successful �ob transitions for at least 75$ of the 666 participants in the program. The amount of non-foundation resources involved in each individual client case could well. match, dollar for dollar, the foundation money spent. This is a goal, not a projection. Secondly, considerable community reinvestment will also occur as a result of foundation funding. This is a result of the efforts that will be devoted at the Better Neighborhoods and community services activities that will be leveraged through McKnight funded TRANSITIONS jobs. Some of the Better Neighborhoods projects will involve "sweat equity" from the neighborhood residents themselves as well as investment from other economic 6 � ��a-�� development interests. A neighborhood fixup program using TRANSITIONS workers to leverage area businesses or neighborhood block clubs would be a case in point. Also, the economic multiplier effect in creating a new, permanent, unsubsidized �ob is estimated to yield two and one-half times the actual salary of the �ob. It is not unreasonable to expect that some of the subsidized jobs will phase into permanent, unsubsidized jobs supported through non-foundatinn sources, or that a new business or some existing business expansion would not occur as a result of the foundation subsidized �obs. This, of course, would produce new and important � community reinvestment that simply would not have occurred in the absence of the project itself. Each foundation dollar spent will likely generate several dollars of community reinvestment. There is no way to accurately pro�ect what the ultimate leverage ratio would be for either individual participants or overall community reinvestment. Suggested First Year Grant Period: April 1, 1987 - March 31, 1983 Project Administration: Office of the Mayor/City of Saint Paul Planning and Economic Development Department/Job • Creation and Training Division Better Neighborhoods Office 7 � ��_ 77� Center for Employment and Training/Saint Paul Public Schools To work successfully by utilizing the full array of community services, this project will be �ointly administered by the above organizations. . .with the day-to-day accountability residing in the Job Creation and Training Division. Supervision will flow through the Mayor's Office/Better Neighborhoods Project Director. Considerable attention will be devoted to coordinating support services and opportunities from other agencies, such as Ramsey County's human services programs. It is assumed that the pr•ivate sector, through participating corporations or businesses, will also be making major contributions as the Better Neighborhoods Program gets und�rway , this year. ' An early indication of the cooperation is the • recent discussions with labor leaders who have expressed their willingness to work with TRANSITIONS in developing the subsidized jobs. This is similar to the �oint efforts characterizing city hall-labor union relations on the CETA and . Work Opportunities Program of the last few years. A Final Comment: As this draft of the proposal was being completed this past week, two particularly relevant pieces appeared in the daily newspapers. . .a Wall Street Journal front page story on Monday, February 9, 1987 and the lead editorial from the Minneapolis � Star and Tribune on the Friday, February 13, 1987 editorial page. Copies of both pieces follow. 8 � �� The Wall Street Journal outlines the fundamental flaws in the federal �obs programs that have developed a reputation for "creaming" . . .taking the "easy" applicants through the Job Training Partnership Act: " . . .critics say that the $3.3 billion a year program emphasizes low cost, short- term results at the expense of long-term solutions" . The current programs, even under such circumstances, are achieving a placement rate of only 60$. The TRANSITIONS program is aiming at 75$ and is focused on a more difficult target population. The Minneapolis Star and Tribune editorial is in response to a General Accounting Office report that raises �serious �questions about the last time (1983) the Congress and President Reagan fired up a public works/jobs program. Jobs were created at a cost of � nearly $90,000 each. Public works projects never got off the ground. And, the overall results of the program were dismal, to say the least. The program simply was not in touch with reality. The TRANSITIONS program is unique because of its design. 1. TRANSITIONS is a local program, in touch with local needs and opportunities. 2. The City of Saint Paul is just beginning its Better Neighborhoods Programs and opportunities will open up to provide worthwhile and much needed jobs in Saint Paul 's poorer areas. The 9 , � ��--�7/ recruitment of appropriate candidates into the selection pool will be much better targeted. 3. Unlike the state MEED program, the foundation funds will be used to subsidize specific �obs designed to provide services and opportunities for specific people. . .rather than the money flowing directly into a private employer based on his needs 4. Existing, in-place, resources will be used, with a high priority placed on working partnerships between the public and private sectors in creating the 666 �ob slots. 5. The TRANSITIONS program has single point accountability. . .designed for specific " . purposes, with identified staff responsibility and supervision. The relationships are established, the intentions are clear, and substantiai commitment underlies the project. What is missing is the availability of funds to subsidize the jobs and cover a portion of �the direct staff costs necessary to launch TRANSITIONS. . .hence, this foundation proposal. 10 � . �� i � ��,,►.� �3 f f Tar;et��' � � . ^��-� �� o►��•.� wY oaed twt:pp�r. "°lbis pto�r�d de- � . . , si�ed prlma�ilp !b� tbe cre�m d tb� Job-Trauung Effort, ��:� �� •. _ �� m Wock.eta atOds!tn F'Wi�,Mlc�."All thoet WALL y FaiLs Many wb doo't qwllty are ri�d w6ere they STREET Cf1t1E$ S$ + were betone." Just 267�ct the aduit p�atUclpacts W the JOURNAL Who�Need Help Most '�°�°��r �� Front Page crosn and ptace.,�a,«�cbe�Oe�ex a ua� . Federal Progratn Is Accused ��p�� Monday . ��O�4�°��' �February 9 � of sh�g H�a c� �� . �9 8� In Seeking Quick Results A ��c�oc � ise�i� ' cesdon. tbe Job 11aWn=Parmaship Ad But It Scores Some Successes ic��_�-�� Unllke tne Comprehenstte Smploymest By K.u� Bi.uKS�x�ts�u. � T�� or CBTA. w6kh put suv��v�+•*of�r;r.,.+.s�,«,�,►,. m�' PEOP� fato malce-�otlt pasitioat fa DSNVSR—Rase L.on� seems tailor thz �bL+c aud iwnpro6t secto�s. JTPA m�de fa��the �overnment's /ob-trainins taYes a deddedty no�nonsa+se.bottam-llne Pro�r�am-She is poor.unemployed and dear a��' perate for a�job. � vau sector. 3tat�and locil commualtl� But Ys. Lon�can'i tind wort.and che decide wtist trainin=.wfll be oHered tn ProQram waa't help her. Secause the gor- their ai�eas.ud loca!bis�daess executives. ernmmt has already trained ber oace— . wtw sit oo "private lnduatn►cauncits."in- eig�t years a�o,tn be a tn�cJc driver—tbe (iuence how fimds ue spea� ' � tocal pro�ram has�rojected her. Eier tast The tederal�ovetnmeat dl�tributes t�e - Job efldcd in Septetnber. and Ne 41-y.ear ��y Uo tbe sLate� Tbe states distribate old sin�k mot�er has applied tor doaens at !t to 6ZO.l�oc�l pzoetartn—W a tew ea�es joha since. Sbe dasa't soug�t to drive a tlfex are staLtwide—whkb In turn htre � trucl�because s�e ham't drivm ooe ln 6ve oa� �� and ierls sbe is no louirr quW- Bac�t d t�e 6�o pro�ratn�includes s aa1n� Ju�t Oelore Cbrist�na: sbe IInaqy ap� 1�P�fa t�e poo�.a s�unmer�oat . plied[or�relhr�e.But sbe iosLsts: "I doo't �''��A�°�i A��Pi'oP'� wwt to eo m welfsre.I'm i�ood�orter. fvr worteis who have laet t�dr�obt br cause aa induslsp b depresaed a 1A dt I want a ]o��. �. , Iaboc expetts say that M�Loo�!s ope 'P!k Primat7 Goil of millionsbt uaempbyed worke�s arho are � . beint turned away by the tedeca!JoD-tiaia- The 60'1'. placemeet rdte Ior poo! ing program, the centerpiece uf tbe Rea- �� m� 1��r th� Ch'TA gan adtNnistration's approach w helpin� �ieved. And placettuat ls J1TA s pr!- the poor find worlc. mary gaal. So much so that most of tJk �Y P�� P�PIe do get training— jo�traininr centtrs are paid Ntou=h a about 800.000 a year. officials say—and �m �� m for people vfio about 60`b a[ them �et placed. K�s! o( Hnish h-aintn=. tor tdame who land a �ob tt�ese are tralaed toc specidc lypes ot jobs, and..so�rsetL�s.tor thaae wtw stay on tbe eiNes it lob-training centers or in�ovent- job at least a mut�tL—W etiect penalt� ment-dded oo-tbrlob vainin� Pro6rart�t- them fot peopie wbo doa'L Slmflarip. tbe Welfare motDers are trained to masur ��P��that select tbe trainin[-cen- word processots. tor example. Other �r��rewatded or penalized traiuee: �et helpt ln job�huntip=� tactics b'Y t6e statea. suc� as re�-writln�. 'fhat Idnd d perssure. Inslders sa0►. '�tDdameatalu FISWed' leade pro�raan to I�ae people who are But critics say that t�e t3.3 billlon-a- �� i � p�. � � . year progrun empDasizes low�ost,short- �� a�. ��. term resWts ai the expense ot lone-term 'nat counttn�tboee wtw drop out ot tralNnt sotutloas. Aa a resul� they say. it tocuses C1Ad�t1. Md�Ofik ot t11e 8'10�fey b u3ld CO on Woce wbo cailc� proDaWyr llnd/obt an subsidiu corpaate trainln[D�'oi�� thdr owrst and turns lts bacJ[oo tbose wb0 COm��°��tbetn- need•help tDs asast. sel�es. R�P�K J'TPA's earsbesi aitks ' 7De lar l� (uodamaitally IIswed.••. to labd lt "welhte fac Cocpotati�.•• In Hoc�. Solctblatrd Oap� reodr�ei says Gary OrAeld,a Unlrerslry aI C�icaro federa! mme�r to trafn up to 1TI Nd�re.t• polltical-xiexe pmtessor wfa hu studled Blevm der�s tbt f�-an-hour Jobs.Fedeta! the way it�wats W il!lnois."Tbere Lsa't aa rynanci�d about f50�a pecson heips de- �� D�� fr3Y tbe lncreaxd costs 1Mta�ed by Satth� masi lon�•term e[fects arc eoiri� to cosi land to meet tederal requlremrnts.sucb as �he most and have the luwe�t placements �e caat ot rectultin�low-lncome tralnee� wttally." ' and addln� a d� at trainlnP. 11 Soutliland is a ble (an o( the pmgrsm. , . (.��7�� - Off Tar�et? U.S. Job-Training Program Is Sa.id to Fail Man o�' Those peo Ie V�ho l�eed Its �el t�e Most Y . P .P Continued 1�ont Fyrst Page "We're not a soclal projectt.. declares sultt thai milces attlonal statlstics alnwst In part secause turnover �s much lower ponald SchlertWe, a bank executive wta meaningless.Sontie pro�rams.for instance. among,ITPA particlpanu than vnong ree- head5 the crnter's board. "Out intent ts to requirc partuipants to tiad a Job within 60 ular employees. "One reason':we �ot lnto have Dottom-�tne results." Adds Tlmothy day5.Othen allow six months.!n the Flint JTPA ts fhat li appears to �e very b�ui- C. Hall. actin�dlrector ot Colorado's Job- area. a person must worlc 60 bouts in a ness-frtendiy,"says Terrance McSorley,a traininY offlce: "Some call that creaming, two-weet perlad (or U►e placemeat to SouWand personnel mana�er. "!t mog- but actually 1t's eood business to do it that count. But in Denver, a trainte l�consid- nlzes tliat �obs are creat�d fn the private way."TGat 1s because o[tbe system of rt ered placed if b1s wpervisor caotfrtus a sector." wards and paieltles for cmters' and pro- startin�date toc a pern�aneut�ob.No one Concern about who It is t6at JTPA is �rattu' pertormances. need verlfy that tl�e trainee tboMrs�up. actually helping has spread to Con�rreess. The criticlsm about selecUvity has en- Even w1U� somettmes•liberal reportlnr The Senate L.abor Commlttee has jusi con- couraged a tew cornmuNdes to develop �r+equirerrunts. JTPA'a rewlta utn't stel• ciuded hearin�s on how tbe p�oeram could their own ttalnin� efforts and h�s siowly lar. The avera�e trainin� period is about Detter help Ne dard-core unemployed. chan�ed sau�x,TTpA prograrns. Last year. �fau months—haidty enou�h. experts say. Demceradc Sen. SdwardKennedy of Mas- New York Clty spent 512.3 millton on lts to rr�ster a tecbnlca! tt1ll. Tbe aveta�e sachusetts, the committee chairman, lasi own educatlon and Jobs prpgrdm for l6-to- wage at placement !s i1.b3 w �wz', halt week said de is introducine legisiation to 21-year-oldti atter lt found that JTPA Ne national average houriy wage.Md un- teward states that find ways to train and served �ust 5.5% of the 232.600 youths in til Oct. 1, programs weren't ttquired to emuloy lon�-term public•assistance rec�pi- the city who qualified—and that. although check up on a trainee after�e was placed. ents. one objective at ihe program was to make Now the labor Department requirns pro- ln support ot the JTPA pragram,Roger sure that partfctpants didn't drop out of grdms to verify+whether particlpants stlll D. Semerdd, an assistaat labor secretary higii schoot, 6alt of those helped already have johs afler 90 dayrs. who oversees 1t, notes that more than 90°J� had higfi-school diplomas. ' of the trainees are poor. He concedes,.that (;ongress, at the Labor Department's Meanwhile, local J1'PA prograrru are "there is robab more that could be s increasingly using fedenl money to subsi- p ty uggestion. last year urged JTPA youth � ��• tralning costs or to help done"for people with the fewest skills.But prograrns io otfer such a progrdm them- �,�new companies W town. The Houston attemptine to�et as many people into jobs setves. combining teading. and math JoD T'�alnlnP Parh�ecsh[p Council recmtly u passible.and Zs quickly and cheaply as courses along rith jo6s. And in the Flint. belped lurt t Gtumman Carp. plant A possiDle. meaas that Joag-term traiaing Micb..area.wben more than�090 of those ��py�e�f3.500 a person in fed- �ets short shritt "1Ve're tryin� to get the poor enoug� W be eligiDle for JTPA doa't eral funds to train up to 2.000 ne�r wroricert Yreaiesi yield we cao�+et an t�cpayeis'in- have Wgh-scboo!dlploanas.t�e local JTPA over 18 months. The camcil boasts.la 1ts vesiment,.� l[r. Semend says. Progrdm this year set aside about 5500.000 wnusl report thai its acpanded on-tbrjob �� g�S� . of its f6 milllun budget to offer baslc edu- �� P�n is de��ned .•mr busi- JTPA's bud�et u part of the proDlem. caiion and ttaWn�w about 1�0 adults w!a Desses thst want to re�uce labot coAS and Its 53.3 billion com dropped out o�t di�it scbooi and rrbo havea't pa�es.�rith the more �� P��•• than i9 b�111on a year that CSTA received WO�� m�. OtDer companies�et help tetratafn�ot at Its peak. OtticiaLs estimate that only 'We've really been myopic an how n�� p�,�. F�� about one of every 20 workers who qualify we've appc�oached JTPA.•. relying too ��g�h Atrcnh Gbrp.aro�iCert for the program can be helped. Colorado. much on "short-term tlaining and sGort• lald a� In Hailder. Colo., and Ilberal. [or example, gets aboul i25 million a year, term resulls," says Terry Bertram,,the .Kan.,to relocate to a Beech job in Wichita. much less than Ne f34 million Denver Flint-area program's executiv�director. � � Fort Wayne, lnd., General Motors aJone received under C$TA. The tlgAt fi- �me JTPA participants,too,tallc about pprp, ta receivin� about SZ.4 mWioo in the pressure to meet performance goals.- ,�pA to retrain G�[ �rorice�s nancing is tbe maia reason Nai the Denver �P program chooses to reject applicants like �ore�ce Boven,a clerical worker naw liv- ��ri ��p� �p�� a . Rase L.ong who were tra�ned under other �g � �cago, says her drst assignment oew trucic assembly plant.GM will receive federal prograrru. in a JTPA word-processing course in Mlch- �.ppp �� cipant who completes To m�et their � ��,•w.�; �, p;fl. igan was to type a resutne and�d it!�]0 :;;r.;..e-�s�,::.r,w�.�.�r�ich ir,ciudes a air Yrains increasin�ly feel under pressure W Potentia! employers in an eftort to get a WrS+ 0� Genersl �[nWrs and tbe UAW. screen out thase vrho are most difficult to � ri�ht away. • Such speciatlzed ttainin�!s expected tc train aad place.a prnc�Nat job-trainin¢ 'Iatern.shlps' aad the Numbers become more commoa as Pt�a�trY to experts ca11 "cseamint."�Dwver women When classes ended. she says.students meet perfitmaace eoals witb sparae tuods. on welfaai�e who want to }dn a tourweelc xen placed in nonpaying "internshipe.. JTPA ptveratu dirnctort s�y. And they Proer'dm to pnpan tbem fot wori[ must until tbey teceived permaDent jo6s.so that P�ri1b+ a�ree that w�ile tbe pro�ratn wade thtou�h a Hve-pa�ee appllcation WaI tDey wouldn't be counted ar.�obless and �Y � �Y �� stor►es. its em- tries W detetmine wDether they could pa.sa [hereby aHect placement numbers..She P�� on qutcJc soluiioat and short-term a hf�h•school-equivalency exun. credits the program with gettln� her bac.h tralntng�vtll teep tt hnm makin�a dent in At Denver's Commut►fty Technical to woric but faults it for failin�to teach the � ��s uaemployment or weltarr-as- Skllls Center, potenUal vord-processing social skills needed to move W an office ��e m�. siudents must have hi�A-srbool diplomas job irom welfare. "!t's a siart." she says: �Ys Gary Walker, a reseatch•8rm ex- and pass a typin�test trrlce Detore admis- "But lt's more Wce a qWc�fu than a per- �utive w6o ha� studied the proeram: "I sion. TDe ceuter. IIaancM wita Doth prl• manent solution." don't thtnk atiyDody expecs thLs pmgratn. vate and federal hmds,tests abou� 100 a� To make their resWts ladc even better, 1D �Ye aqy seriau soclaJ probterru." � plicants for each class. 'ryping and other some JT'PA proerams tal[e advantage of requiretuents whlttle tDe �oup W 15, but lax �overnment guldelS.oes fn defWne a only 3Z wW De enroUed. "placemm�" creatlu� a mishmasD d re- 12 ` � � � �T7�' Minnea olis Star and Tribune Established 1867 Roger Parkinson Publishe�and P�esident Joel R.Kramer Executive Editor Tim J. McGuire Managing Editor Roben J.White Editorial Editor �aa N Friday/February 13/1987 A lesson to remember about `jobs programs' Sooner or later the nation will confront a new reduced unemployment to 7.4 percent during that recession. Business growih will slow, then start to same IS-month period. fall off; for a while the economy will go downhill � instead of up. Growih in the number of jobs will Out-of-synch timing and meager results were not slow too. Unemployment will rise. People in the just bad luck. Congress needed months before it White House or Congress or both will start to could agree on targets and formulas for distribut- propose national jobs programs. Political pressure ing the appropriation. Even so, the GAO analysis for such programs will be strong. makes the targeting look poor. West Virginia, the . highest-unemployment state, receiyed barely one- Before that day arrives, voters and politicians fourth as much help per jobless person as relative- should consider some lessons of the last large jobs ly well-off Norih Dakota. And as is common in program. Early in 1983, Congress and President such spending, disproportionate amounts were Reagan agreed on a package of public-works fund- earmazked for high-cost construction jobs. Much ing and human-services projects adding up to less went to lower-pa}7ng work, such as day-care some $4.6 billion. The legislation promised a services,that might open new job opportunities. quick infusion of money to create employment for several hundred thousand jobless people. After 18 National jobs programs not only are unlikely to months of deepening recession the unemployment boost employment, but also have a more basic rate had peaked that winter at 11.4 percent. Rea- flaw: Money to pay for them must either be gan had often derided govemment spending as a created by deliberate inflation or be taken by the tool of recovery. But in the face of that winter's government from other job-creating uses. Deliber- statistics, even he requested a jobs program. ate inflation is rarely helpful and always risky. Diverting money from private-sector jobs is equal- Yet the program did little to reduce unemploy- ly weak policy. It makes sense only if the govern- ment. A study just completed for Congress by the ment can spend faster and aim the money better General Accounting Office (GAO) suggests that than the people who pay taxes and buy Treasury the money was too late and too much. Approval bonds. came as the recession was ending, and most of the antirecession appropriation was for publi�-works Yet the latest GAO jobs-program report says clum- projects that could not be quickly begun. Fifteen sy targeting and a dawdling pace undercut the months after the act was passed, according to the government's antirecession promises of 1983. Vot- GAO, its funds were supporting only 35,000 jobs ers and politicians should absorb the lesson: When — at a cost to create them of almost $90,000 another recession comes, Congress and the presi- apiece. 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W A t1 'C C9 � .a H ' � �,,,� d H H._ � —15— � �?��7r BUDGET NOTES SECTION I--ADMINISTRATION Item a. Administrative Staff Wages This item is inclusive of administrative staff to manage and operate TRANSITIONS through the City of Saint Paul and the Saint Paul Public Schools Center for Employment and Training. The total reflects portions of the time of already employed staff inembers. For example, 25 percent of the time of a Director's salary at each organization is planned, as well as a percentage of clerical, client tracking, and accounting staff inembers. In this area the equivalent of one new FTE will be added. The costs of administering the services of this program are shared with other public programs already in operation. This sharing of cost responsibility minimizes new expenses and maximizes integration of programming. In no event will overall administrative expenses exceed 9. 5 percent of the total yearly funds. Detailed budgets will be developed for each organization involved in managing the TRANSITIONS grant, and provided to foundation staff. Item d. Phones Computed at 30 percent of the current monthly bill at the Center for Employment and Training. A small increase was factored in per year, anticipating rate increases. Item ct. Check Charctes The payroll checks for TRANSITIONS workers will be issued by Independent School District #625. The cost of producing a biweekly check is $1.25. The charges here are based on the number of participants per year x $1.25 x 26 pay periods. Item h. Rent The rent charge to the TRANSITIONS budget is computed at $6.50 per square foot x 10% of the space at the Center for Employment and Training. At present the City Job Creation and Training Program pays the School District for this space and ten percent (10%) is the estimate of the space required overall to run TRANSITIONS. SECTION II--CLIENT SUPPORT SERVICES This section lists costs directly related to the clients in the TRANSITIONS program. 16 � �,�� ,�i Item a. Services Staff These are the counselor/job developers who will carry 15-20 TRANSITIONS workers on their current caseload in addition to the participants they are working with on other programs. In order to understand how this is possible, it is necessary to clarify full-time equivalent (FTE) staff additions to operational staff as a result of TRANSITIONS budgeting. The addition of one FTE creates "space, " in effect, in the time of other staff positions. This is due to the spread of activity of all Counselor/Job Developers' work over all funded programs. One Counselor/Job Developer works with clients on the regular JTPA program, the JTPA-Summer Youth program, and the MEED-Work Readiness program, at the present time. With the addition of TRANSITIONS staff, who will also work on the above programs, it will be possible to "free up" existing experienced staff time. The entire workload will be shared among all current staff, as well as with the new staff added as a result of TRANSITIONS funding. This approach provides the Counselor/Job Developer with an array of program options that can be accessed immediately for their own caseload. It lends itself to the case management approach, and is extremely cost-efficient, with a mix of program dollars. Further, while only two FTEs are being added in this section, actually five FTEs are in the total budget; one in administration/clerical, two as services taff in Section II, and two as crew leaders in Section II. The addition of these five FTEs will allow the overall allocation of staff time to be adjusted to accommodate the expanded caseload. Seventeen percent of the time of eight current and two new, full-time employees is figured into the Services Staff line item. They are �chool District employees. Item b. TRANSITIONS Crew Leaders These crew leaders will work with the targeted City services portion of the program and are expected to be _ hired from the applicant base. Item d. Frincte The fringe amount (20%) is the current percentage for School District employees at this pay level . Item e Services Staff Mileaqe As a part of their case management, all staff will monitor the progress of workers by visiting worksites and supervisors. In addition, they will be developing unsubsidized work opportunities. 17 benefits. This is based on 75� of a series ot entry tevel titles' hourly rates. The B Slots are individual placements, and are factored at $4 . 50 per hour plus benefits. The fringe shown is Workers Compensation and health insurance. Vacation and sick leave are not included for these temporary placements. Health coverage for this program is based on a comparison of rates from three group plans: SHARE, Coordinated Health Care, and Blue Cross/Blue Shield. The rates shown here were the lowest (SHARE) , and are based on 1987 figures. The monthly rate for single coverage is $60. 00 per enrollee. For any size family of two or more, the rate is $180.00. 18 ��-�7r An obvious example is training. While the provision of needed training is a key element of the program, little actual cost for this is reflected in the budget. Available programs and services of the City and the School District will, for example, provide GED or English as a Second Language. There is no reason why the foundation funded budget should have to duplicate these already available services. Other examples would be the accounting and client services systems which are already developed, and the computer hardware on which they run. All of this will be covered by non-foundation sources. 20 , ��- ��i TRANSITIONS A Better Neighborhoods Work Project The last several years have produced an improved overall economy and successful urban reinvestrnent in Saint Paul. Yet, this City, like many other older American cities, continues to suffer from a widening gap betwen the haves and the have-nots. The heavy costs of this reality are most apparent with the City's unemployed residents seeking work but unable to obtain it for lack of skills, opportunities, or support resources. Saint Paul's economically deteriorated neighborhoods are host sites for much of the pain and blight caused by the lack of jobs or economic development. This proposal requests $5.9 million dollars over a three-year period from the McKnight Foundation to stop the downward cycle of high unemployment in poor neighborhoods. Especially those neighborhoods with people characterized by multi- risk factors including high rates of school dropouts, single-parent families, deteriorated housing stock, non-resident dwelling ownership, crime, deteriorated commercial areas, and the like. The purpose of the foundation grant is to leverage new jobs for residents most affected by these problems and to create a positive transition experience which will start them on the way to self-supporting, unsubsidi2ed jobs. In turn, the jobs created through foundation funds will be devoted to improving Saint Paul's poor neighborhoods. 'fhe jobs, then, represent a direct employment opportunity with income and growth opportunities for currently unemployed residents and poor people. The jobs also represent a real community reinvestment opportunity where they are the most needed in the spirit of the original federal WPA projects of the 1930's. -21- ' - ��--�7/ In addition to jobs the TRANSITIONS project will provide support services such as transportation, education, co�nseling, day care, health care, and training programs when and where needed. In effect, TRANSITIONS is a combination WPA/non- residential job corps approach with the foundation funds being used to leverage job creation, support service coordination and development, and contributions from other organizations or businesses. Each job or job-support service covered through foundation funding or partial funding would have the following characteristics: 1. The job itself would have to yield a real contribution, social or physical, to one of Saint Paul's economically-stressed neighborhoods. The job could either be in the public or the private sector or a combination. 1�lost jobs will be in the public sector. 2. The person getting the job would have to be currently unempioyed, preferably live in one of the poor neighborhoods, and have certain "at risk" characteristics. Job applicants will be selected from all age groups although 75% of the total enrollment will be in the 17- to 30- . year-old age range, typically having few skills, little work history and facing a dead-end economic situation. 3. The foundation funds expended would be leveraged to create or expand other resouroes. For example: The creation of a new job through foundation funds that will evolve or will provide a transition to a permanent, unsubsidized job in either the public or private sectors. The creation of a new job that is partially funded for a period of less than one year through foundation funds, the remainder of the job subsidy coming from other public or private sources or some of the support resources coming from non-foundation sources. -22- �� yi The enabling of a person in a targeted applicant group to take an already existing job by subsidy or partial subsidy of necessary support services (day care, transportation, etc.) for a defined period of time until the person is able to permanently adjust to the new job situation, no longer needing subsidy. The use of foundation money to reshape an existing public or private employment program to meet the two-fold objectives of the TRANSITIONS project working in combination with the Better Neighborhoods Program. The City of Saint Paul does not have a defined human services function. This is primarily a result of the historical and conventional evolution of municipal services. Yet, at the same time, the City now carries a much larger burden in serving the needs of the urban poor and families in poverty...in particular for those who have little hope or anticipation of improving their economic status. Resignation, hopelessness, and self-destructive behavior characterize many of the families caught in an economically dead-end environment, notwithstanding the services and resources provided through the county welfare departrnent, United Way agencies, the public school system, and other human service efforts. By nature of its geography, of the unique urban problems of an older core city and its single-point accountability through an elected Mayor, Saint Paul is prepared to launch a full-scale assault on the problems of unemployment, poor families, and deteriorating neighborhoods...primarily by using existing resources and programs. Rather than initiating a whole new layer of human services, the intent is to enable better coordination of existing human services at the municipal level and to use requested foundation funds to achieve a predetermined annual slate of targets and priorities in the Better Neighborhoods efforts, in part, through job opportunities for the unemployed. During 1986, the City of Saint Paul launched a human services initiative that built bridges between city government, city neighborhoods, and human services providers. It is now time to use these relationships to force actions in such areas as unemployment and deteriorating neighborhoods in the poor sections of the community. -23- ��2-�7/ AN EXAMPLE OF TRANSITIONS The research is clear that effective jobs programs, especially those aimed at the hard-core or structurally unemployed, are most effective when multiple and individually-tailored resources are brought to bear on the unemployment dilemma of a given person...resources that provide a transition to a permanent and unsubsidized job. Certainly, there is not one program or one answer to the unemployment issue. Unfortunately, current categorical unemployment programs take a fairly narrow focus on what are, to be sure, multi-faceted barriers to gainful employment. Public resources provided for existing efforts are scarce. It is estimated that only 4% of the eligible unemployed population is able to receive services under the major Federal program, the Job Training Partnership Act (JTPA). This is due to under-funding. Having one-quarter, one-half, or even three-quarters of a solution in hand is nut the same as having a workable solution. In addition, there has been recent criticism of JTPA because of an emphasis on placement "crearning" that may be occurring in the enrollment pool. This means that those most in need of services, those with multiple employment barriers, are sometimes passed over in an effort to meet strict performance goals. There are some exceptions, like the Job Corps programs, that demonstrate how effective results can be achieved by using multiple approaches coordinated for specific outcomes. It is this that the TRANSITIONS project will do...without the restrictions of a residential setting. The aim of TRANSITIONS is to use foundation funds as the resource that makes a real difference in bringing together or leveraging other resources necessary to create the type of permanent, unsubsidized employment opportunities in poor neighborhoods that significantly increase the possibility of a person moving out of a dead-end economic situation. At the same time, these efforts will produce substantial community reinvestment, social and physical, that will occur in those neighborhoods that most need it through the efforts of the subsidized jobs. -24- . ��»� An outline example of how this could work would be possible activity at the Dale/University intersection in one of Saint Paul's poorer neighborhoods, Frogtown. Dale/University with its pornographic movie theaters, high crime rates, prostitution, and empty storefronts is directly adjacent to family housing and a residential neighborhood. It is arguably the city's worse situation of urban blight. To be sure, the residents and the popular media see this area as representing the worst of what Saint Pau� and this particular neighborhood have to offer. A project of TRANSITIONS, in combination with the Better Neighborhoods Pro ram, could be designed to take on what is now a showcase for urban decay and resignation, transforming it into an urban opportunity model. The following would need to be accomplished: 1. Removal of the blighted property on the intersection and near the intersection. 2. Improvement of the streetscape and public spaces. 3. Crime reduction in the area. 4. Recruitment of economic development or business opportunities to the area. TRANSITIONS, working in conjunction with the Better Neighborhoods Program, would develop a project with the following components for a unified, coordinated effort. ' 1. The City (Department of Planning and Economic Development), the Saint Paul Port Authority, and a charitable nonprofit (already identified) could acquire key property sites at or near the intersection and prepare them for a coordinated economic development package. Potential businesses or economic development interests would be provided a direct-jobs incentive at Dale/University through positions created by the TRANSITIONS program...similar to the Work Opportunities Program. -25- . ��--��/ 2. Potential low-income residents would receive training (perhaps some of it coming from the walk-in literacy center near the intersection and sponsored through the Saint Paul Foundation) and job support services through the Saint Paul Job Creation and Training Office. 3. The Public Works Department would undertake a special intersection improvement program that would include replacing sidewalks, cleaning up the area, planting trees, and installing street furniture. A youth WPA type work team for 20 neighborhood teenagers would provide jobs and jobs training through foundation funds. The City's Public Works Department would provide the equipment, the supplies, the city crews, and the supervisors. Hamline University, not too far away, would provide student mentors for the neighborhood teenagers and link them into possible interest in college careers (similar to the YMCA "Project Motivation"). .Hamline has already expressed such an interest. Ellerbe would donate the design program for the intersection. An interest has already been expressed to do so. Other organizations would be called upon to contribute when and where appropriate. 4. The City's fire station, just up the street from the intersection, would act as an interim headquarters for the University/Dale Better Nei�hborhoods-TRANSITIONS project. Additionally, the fire fighters could be used to leaflet the neighborhood to start and keep communication moving, run a neighborhood resource/dro�in center for the project, and provide the 24-hour-a-day "glue" to keep the action flowing. The neighborhood fire station would, in effect, serve as a temporary "little city hall" for the project. -26- � �� - �� 5. Four neighborhood residents could be hired with 50% foundation funds and 50% funding frorn a local insurance company to form a full-time neighborhood crime-watch team. Training and supplies would be provided through the Saint Paul Police Department. The Police Department would also review the option of the City hiring full-time, non-sworn neighborhood crime-watch workers for this area after the project funds terminate. 6. Area residents who participate in the project either through the "new" jobs or through volunteer sweat equity would receive "urban experience preference points" that potentially could be of value to them in obtaining full-time City jobs or applying at area colleges or vocational schools. These points are explained in a later section. 7. The project itself, or portions of it, would be supervised through the Better Neighborhoods Office and Better Neighborhoods service workers hired from the targeted neighborhoods and the target unemployed population...paid through foundation funds. The City would provide the overhead and indirect expenditures required to maintain these positions. 8. In each case when an unemployed neighborhood resident receives an interim TRANSITIONS job (subsidized through foundation funds or other sources), he or she would be involved in a transitional plan or program designed to address the individual's employment barriers and ultimately place the person in a permanent, unsubsidized job or in an ongoing educational or training program. It would be challenging, to say the least, to take on the entire project as described above. Of course, this model represents the optimum mix of resources, opportunities, and organizations. The Dale/University project could work with only one of the above elements moving ahead...for example, the Dale/University Public Works improvement project providing summer jobs to area youth. TRANSITIONS would provide the project's initial incentive to get started. -27- . . ��-y7i TRANSITIONS PROJECT DESCRIPTION This three-year proposal is foc employment, income, and servioes to unemployed Saint Paul residents and will provide a transition for them into self-supporting t�subsidized jobs. Unemployment levels at the present time are relatively low by some standards. The figures do not always reflect individuals who are not currently participatin� members of the labor force. Those who have exhausted benefits, who are receiving public assistance, who are just entering the work force and have never worked, those who are discouraged from seeking work due to the appropriateness of their skills for the available jobs, are all within this uncounted group. The uncounted group contains disproportionate numbers of at-risk populations as well, including; � Minorities +� Young adults � Public assistance recipients � Those with low skills/low levels of work experience • TRANSITIONS will put a major emphasis on the high-risk members of the age group of 17- to 30-year-olds. These young adults have been hit particularly hard by the turbulent changes in the job market over the past ten years, and need the connecting forces that a program such as this can provide. Success in the�final program component — transitions into unsubsidized work — is attainable with a significant portion of the enrollment in this age cohort. The long-term benefit to the city of the early movement of these workers into the labor force is significant � to the concept of TRANSITIONS. This is a group that can be affected significantly befere their individual situations worsen. -28- ' //,c�7- 77� v� TRANSITIONS is designed to work with the above-described group with three primary goals: � Immediate income enhancement � Specialized Support Services which remove employment barciers � TRANSITION to unsubsidized employment that will provide a iiving wage. All participants will receive a core program of services designed to address their specific individual employment barriers, while giving them work, self-esteem, and income. The program wil! operate on the premise that the number one priority is income, and the first activity will be matching the worker to a subsidized position in a public or private nonprofit work setting. During the subsidized period of work the individual employment barriers of the worker will be attacked with intensive programming and support. The work to be carried out will be project oriented, in most cases. It is intended that the work experience during this temporarily subsidized period be highly structured, and that the workers' activities relate to a larger program of services the Ci.ty has identified as priority projects through Saint Paul's Better Nei�hborhoods Program. Certain projects have already been identified and can be started immediately. , The McKnight TRANSITIONS project will enable Saint Paul to be responsive to the needs of city residents in a broad fashion. The individual income needs of those residents will be addressed at the same time their work is accomplishing community services in our neighborhoods. On both ends of the project continuum the community itself has defined the priorities. This will result in local solutions to local concerns. -29- . � ��-77/ Intergovernmental Coordination Providing the best possible services to clients requires coordination among a variety of area service deliverers. Agencies serving special target groups provide valuable resources to the employment and training service delivery system. Coordination arrangements are already in place under both financial and non- financial agreements at a number of different levels. 'The roles of the major agencies in the City system that will affect services to 1'itANSITIONS enrollees include: l. The City - Grant recipient and Program Administrator The City of Saint Paul is designated a Service Delivery Area (SDA) under the Federal Job Training Partnership Act and a City of the First Class within a Local Service Unit (LSU) under State-funded jobs programs. 'fhrough these designations, the City receives grant funds from the State of Minnesota to provide employment and training services to eligible residents. The City designs programs and oversees the delivery of services through a variety of contractual relationships with area agencies. The City provides an administrative/management function which includes initial planning allocation of funds, expenditures, monitoring and achievement of program performance goals. The City through the 1ob Creation and Training Office assumes ultimate responsibility for the Employment and Training Programs operated within its jurisdiction. TRANSITIONS will be integrated into this responsibility. -30- . C��- �y 2. The County Saint Paul coordinates with Ramsey County in employment and training service delivery, especially for public assistance recipients. Three specific target populations in this group include: a. Income Transfer Recipients The City works closely with the County to reduce the numbers of Saint Paul residents on Public Assistance. Close cooperation with Ramsey County Work Readiness Program for referral of clients will be maximized in providing services to TRANSITIONS workers. Mechanisms are in place to coordinate applicant outreach between city programs and the Ramsey County Community Human Services Department. At least biweekly meetings are held for operational staff of the St. Paul SDA and Ramsey County for discussion of joint client plans and the resolution program problems. The results of this coordination demonstrate success. The percentage of clients on welfare of entire J"I'PA/MEED enrollment is 6596. This level of service to welfare recipients is due to close inter-agency coordination. b. Refugees The City receives funds under contract with Ramsey County to provide vocational training and placement services to residents who are refugees. In 1987 we will serve 205 refugees in need of training and employment under this agreement. c. Regular Job Training Partnership Act Clients The City and County through their respective Private Industry Councils, have an agreement in place which provides for mutual client referral and services. Through this agreement Saint Paul may serve a limited number of Ramsey County residents and vice versa. 3. The School District Independent School District ��625 has a long history of services to unemployed city residents. Under financial contract to the City, the -31- _ � ��-�� school district serves youth in the regular year-round �TPA Program, Summer Youth ages 16-21, and public assistance recipients in the Work Readiness Program. Independent School District #625 was the primary vendor for the very successful McKnight-funded Work Opportunities Projects I and II. The District works with a minimum of 1,000 clients per year. A key to the success of the district in placing clients is the relationships and trust that has been established with area employers over the years. Because of that.trust, employers continue to be ready to take new risks with program clients. The School Districts participation in TRANSI"tIONS will be a major factor in the project's ultimate success. 4. The State The State of Minnesota is the grant agent for both the Job Training Partnership Act and the Minnesota Employment and Economic Development Program, (MEED). It provides grant management oversight and policy guidance for these programs and works closely with all local service delivery areas, (SDAs) including Saint Paul. These agencies in their respective roles, will make contributions to the success of the McKnight TRANSITIONS Program. Through these relationships the City has delivered high-quality services to as many eligible residents as available funds would allow. An indicator of the City's capability to produce results is its record for receiving competitive funds from the State and the federal agencies referenced. Performance is a major factor in the review of competive bids and in the last eighteen months alone, Saint Paul's Job Creation and Training staff has secured 1.8 million dollars worth of competitive funds. This has resulted in services to 2,036 city residents under fourteen different specially awarded projects. -32- � ��7� OPERATIONAL PRINCIPLES TarReted participants * City of Saint Paul residents � Unemployed 90 days or moce, or � Unemployed with very limited or no work experience, (less than 3 months on one full-time job) � 75% of total enrollment will be between the ages of 17 and 30 In addition to the basic eligibility described above, the actual enrollments will be further targeted. It is expected that there may be three times as many eligible applicants than slots available. Therefore, with the objective of reaching those most in need, the following additional priorities will be used to select enrollees: * Low educational achievers; evidenced by individual testing, lack of GED, etc. * Minority group members � Single parents * Public assistance recipients * Those in need of English as a Second Language Every applicant will be assessed for eligibility on other city-sponsored job training programs as well. Those other resources (Job Training Partnership Act, Minnesota Employment ac Economic Development program, dislocated workers etc.) will be , used whenever possible, therefore leveraging additional training and employment services for TRANSITIONS enrollees, or applicants not appropriate for TRANSITIONS, but eligible for other programs. -33- . �,�'2-7�� City employment and Training services are delivered under the auspices of the Job Training Partnership Act. Substantial statistics are available to the City relative to JTPA eligibility. These have been used as a basis to extrapolate eligibility for TRANSITIONS enrollments, and priorities within the total enrollment for TRANSITIONS. Publicly-funded programs through Job Creation and Training focus primarily on services to the economically disadvantaged and welfare recipients. Eligibility for the Job Training Partnership Act (JTPA) is based on income. For example, a single individual cannot make over $5,360 to be eligible and a family of four must receive less than $12,130. All must be unemployed. Estimates of the JTPA-eligible population for the City of Saint Paul, 1987 include: 1.Age 17-21: 2�g67 Age 22-30: 7,589 Age 17 - 30: 10,456 This is 29S'o of the total St. Paul JTPA-eligible population for all age groups which is 36,344. Because TRANSITIONS will focus on individuals with minimal or no labor force attachment, and JTPA requires that economically disadvantaged only be enrolled. The working poor may be included. Therefore, to define the TRANSITIONS target population within these figures above some extrapolation is necessary. A study completed by the Center for Urban and Regional Affairs, "Profiles of the Twin Cities Poor," January 1987 says the following about individuals similar to TRANSITIONS eligible enrollees: � -34- . ��-77� "Work Disconnection: Other than the elderly, the disabled or single- parent households with work disconnections, another 18% of the low- income households have some disconnection from regular full-time work. Work disconnection includes those households where income varies because of someone's employment situation, i.e. layoffs, or less- than-full employment. Because survey questions about work status, including present employment and past terminations or layoffs, were asked only of the respondent and not about everyone in the households, only households with one adult could be categorized on this last attribute. The actual percenta�e of households with one or more work disconnections may be much larger. "Single Parents: Besides the disabled single-parent households, an additional 13 percent of the low-income households in the Twin Cities are headed by a non-disabled single parent. Single-parent households are in economic jeopardy partly because they have only one wage earner and often because this remaining parent previously had not been the major breadwinner for the family. Three out of every four sin�le- parent households have some kind of work disconnection — i e something less than re�ular full-time employment." For purposes of TRANSITIONS, "work disconnection" will be referred to as limited work experience. This term defines a potential client group whose members have little or no attachment to the labor market and are in desperate need of such to improve their future. Limited work experience will be a major determining factor in TRANSITIONS priority eligibility. Using the information above, the overall specific client segments can be estimated: -35- _ ��-��i � 1. Single Parenthood: At least 3,000 single parents age 17-30 are JTPA eligible. Three- fourths of that number (2,250) have limited work experience 2. Overall Other Limited Work Experience: Eighteen percent (18%), of other low-income families are work disconnected due to limited work experience. 10,456 total JTPA eligible minus 3,000 single parents 7,456 (X .18) = 1,342 other work disconnections (couples) or 2,684 individuals 3. TRANSITYONS Total TarRet Population 2,250 Single Parents 2,684 Others - Limited Work Experience 4,934 Total Within the TRANSITIONS population, additional target groups, those with more severe baniers to employment, are estimated from JTPA eligibility. Those"most in need" tend to have less labor force attachment and solid work histories than others. There is no way to estimate "limited work experience" within these groups, however we can use total JTPA eligibility numbers as an indicator of need within the TRANSITIONS population. The figures below are for TRANSITIONS priority groups: 1. Minorities: 2,747 2. Low Educational Achievers: High School Dropouts age 16-21 1,012 3. Single Parents 3,006 4. Public Assistance Recipients: 3,078 5. Limited English Speaking Ability: 1,805 -36- _ ��j-77/ Following that, an application of a historical experience factor will give a closer indication of the need in special target populations. JTPA service percentages to the overall eligible number of 4,934 to come up with this estimate: 1. Minorities @ 52% 2,566 2. High School Dropouts @ 23% 1,135 3. Single Parents @ 2296 1,085 4. Public Assistance Recipients @ 6296 3,059 5. Limited Enlish Speaking @ 16% 789 Clearly the need for TRANSITIONS is great. In the very narrowest sense, at least 4,934 persons in these age groups are eligible for the program. Most are currently surviving on Public Assistance (62%). � About 1596 of this total will be helped by TRANSITIONS. Only TRANSITIONS provides the flexibility to offer subsidized work to this population. It is an option currently unavailable through any othec public program. This method works for hard-to-place individuals. -37- . ��,--y�� Subsidized Work Subsidized TRANSITIONS employment will occur in two ways: 1. TRANSITIONS workers may be assigned to work with City supervisors to carry out services of a "public works" nature, with an intent to enhance the Better Neighborhoods Program. 49-67 slots per year have been planned for this type of work which we are calling Targeted City Services, (A slots). The variable number is due to anticipated attrition. 2. TRANSITIONS workers may be individually slotted in public or private nonprofit organizations throughout the city. The work in all cases will augment the existing efforts of the organization. These placements are especially needed by the private nonprofit agencies. 'The foundation funds in this instance will enhance the services of a wide array of social service agencies. The TRANSITIONS workers will gain work experience and the agencies will be able to enhance services. The City and the School District have fifteen (15) years of experience working together on placements of this kind and as a result have developed a network of placement contacts. Over 430 potential work sites are now available. These sites are currently active with other job training efforts provided through local and state programs. The slot levels per year for individual TRANSITIONS placements, (B slots), are: Year one: 135 Year two: 162 Year three: 202 Again, the slot levels may increase due to anticipated attrition of approximately 15%. -38- , ��-�� In fact, attrition, budget adjustments, or the identification of new project ideas, will require adjustments in the number in "A" slots or "B" slots. The figures identified are best estimates . . Placement Goals By the end of each program year it is anticipated that 7596 of those who have completed their participation in TRANSITIONS will have a positive outcome defined as follows: * Placed into unsubsidized employment * Entered training full-time * Entered the armed forces Using these determinants for successful completion, the following numerical achievements will be accomplished: Year One A slots - Targeted City Services Total slots - subsidized 55 City permanent jobs - unsubsidized 15 Non-city permanent jobs - unsubsidized 27 Average wage at permanent non-city placement $ 5.80 Average wage at permanent city placement $ 7.00 � B slots - TRANSITIONS individua! slots Total slots - subsidized 135 Total permanent jobs - unsubsidized 101 Average wage at permanent placement $ 5.80 Year Two A slots - Targeted city services Total slots - subsidized 56 City permanent jobs - unsubsidized 15 Non-city permanent jobs - unsubsidized 27 Average wage at permanent non-city placement $ 5.80 Average wage at permanent city placement $ 7.00 -39- . ��-'/-7 7/ Year Two (Continued) B slots -TRANSITIONS individual slots Total slots 162 Total permanent jobs - unsubsidized 122 Average wage at permanent placement $ 5.80 Year Three A slots - Targeted city services Total slots subsidized 56 City permanent jobs - unsubsidized 15 Non-city permanent jobs - unsubsidized 27 Average wage at permanent non-city placement $ 5.80 Average wage at permanent city placement $ 7.00 B slots -TRANSITIONS Individual Slots Total slots 2p2 Total permanent jobs - unsubsidized 152 Average wage at permanent placement $ 5.80 Three Year Totals A slots - Targeted city services T�tal slots subsidized 167 City permanent jobs - unsubsidized 45 Average wage at permanent city placement $ 7.00 Non-city permanent jobs - unsubsidized 81 Average wage at permanent non-city placement 5.80 B slots - TRANSITIONS individual slots Total slots subsidized 499 Placements in permanent jobs - unsubsidized 375 Average wage at placement $ 5.80 -40- . C��_7 7/ The average wage at placement for targeted city placements is based on a review of potential entry-level wages paid in city occupations. The average wage for all other unsubsidized placements is based on experience in placements of similar client populations in other jobs programs (MEED and JTPA). 8enefits to participants at placement will be consistent with those offered to other permanent employees at the particular worksite. The exact nature of benefits per worksite is impossible to predict. However, Job Developer/Counselors are instructed to seek openings which provide benefits and health coverage at a minimum. There are other more intangible benefits that all TRANSITIONS workers will receive as a result of their participation. By overcoming or reducing their employment barriers and increasing such things as social skills, self-esteem, confidence, worker survival skills, etc., the employability and earning capability of all workers will increase. Educational gains will be evidenced through pre- and post-academic testing. At the end of three years, approximately 500 permanent, unsubsidized jobs will have resulted from successful TRANSIITONS from the estimated 666 subsidized job slots to be created for Saint Paul's hard-core unemployed. Work Sites In recent years the neighborhoods and their social service network have been particularly hard hit by the needs of the uneinployed and community problems in economically stressed areas. The TRANSITTONS workers who will be assigned to these agencies will overcome their own personal work-related problems during a period of placement with these agencies. The work they perform for the agency will be well defined, augmenting the normal course of budgeted activity, and is intended to tie in to the Better Neighborhoods Program whenever appropriate. -41- -42- • \ / ��._��/ Neighborhood projects will be identified at the neighborhood level. The Mayor and Better Neighborhoods staff are in the process of ineeting with neighborhood representatives in an effort to promote the concept and assist in identifying and prioritizing requests for project action. � In this process TRANSI"fIONS workers will be placed at a neighborhood project that can be accomplished with the assistance of additional workers. Examples of projects ready to be implemented, while other ideas are being generated, are: A team coordinator for the Youth Gang Response Team Neighborhood Project Interns - to work with district councils, multi-service centers, etc. to address their chosen Better Neighborhood priorities Aides at the Saint Paul Food Bank Delivery and outreach workers for the Seniors Meals on Wheels program Health Screening aides for neighborhood health fairs being scheduled Literacy tutors Day-care aides to augment services at neighborhood private nonprofit day-care centers A list of potential TRANSITIONS worksites is attached. This list of over 430 sites reflects public and private nonprofit locations that have hosted work-experienced adults and youth in a variety of programs over the last twenty-plus years. The supervisors at these sites are familiar with the needs of the clients and will go the extra mile to provide a supportive environment during the transitional training period. The case management staff and the program evaluator will work together to monitor and document project outcomes. -42- . � ��-��i Permanent Jobs The employment placements will be in both the public and private sectors of employment. Permanent public sector placements (TRANSITIONS) in nonprofit agencies will be a result of the proven track record of the participants during their subsidized work period and in public work sites, to the extent that openings occur in civil service systems. In the case of City of Saint Paul workers - targeted city services workers - the program will make special efforts for movement into the city workforce. The turnover rate in the city workforce due to retirement and resignation is over 300 positions per year. Not all of these positions will be appropriate for TRANSITIONS workers, but some will. The Mayor is working with the Personnel Director to ensure that a portion of this turnover goes to TRANSITIONS employees who will have spent their subsidized work experience in city offices. These workers may receive urban preference points when testing into the civil service system as well as special mentoring help for the testing process. Based on the above-average figure of 300 terminations per year, 15 TRANSITIONS workers per year or 45 in the three year grant period will move into regular permanent city employment. This may be a conservative estimate. Examples of typical city placements which could be available for TRANSITIONS workers would be: -43- , �P��7�/ Administrative Assistant Meter Reader Aide - Code Enforcement Crew Worker - Public Works Clerk Clerk Typist Accounting Technician Custodian Data Entry Operator Fire Aide Payroll Clerk Civil service positions represent career employment in most cases. There are many fine examples of employees in the city workforce who are in leadership positions and who started with the city years ago through a publicly-subsidized position. A few examples: Program Director Job Creation and Training 15 years employment � Deputy Director Planning and Economic Development 15 years employment--just resigned to take a Bank Vice-Presidency Chief Accountant Planning and Economic Development 8 years employment Grants Management Supervisor Planning and Economic Development 9 years employment Model Cities Health Clinic Director 7 years of employment with city prior to promotion Assistant to Personnel Director 10 years employment There are many more examples of city employees who started on a public-subsidy for their position and through hard work and experience worked their way into -44- ��-�� the city system for permanent careers. These individuals typify the potential for TRANSITIONS workers. Private sector placements will occur as a result of the intensive efforts of the Counselor/Job Developer to work with the TRANSITIONS participant after the first 3-4 months of subsidized placement. The pool of possible businesses is extensive, the result of previous contact through a myriad of job training and small business development efforts the City has been responsible for in recent years. The City has created many new jobs through economic development efforts in recent years, (UDAG, CDBG, 503 Loan programs, MEED, etc.). In the course of that activity a working list of hundreds of active employers who are expanding or replacing workers, (and who look to�the City for qualified workers) has been developed. Since the placements will be individualized for each worker, maximizing the skills of that individual to the needs of the employer, there is no way to identify the exact businesses that will be used for the placement of TRANSITIONS workers. Those businesses are likely to come from the pool of existing contacts in most ' � cases, however. A list of those potentia! business placement sites is attached. Also attached is a list of the potential public-private nonprofit worksites which we expect will generate 30g'o of the overall permanent placement sites. This percentage is based on our successful experience with the McKnight funded Work Opportunities Programs, 1982-1985. As to wages and benefits in the private sector placements, again it is impossible to predict the individual situations that will occur. The Counselor/Job Developers are instructed to work on permanent placements that have wages sufficient for the clients' income needs and benefits that are comparable to other employees of the company. Health benefits will be considered an essential minimum benefit when making unsubsidized placements. -45- �-..--�7-77/ Urban Preference Points The concept of urban preference points began as the City staff discussed how TRANSITIONS workers could be used for targeted city services. The intent is to � provide extra point preference on Civil Service exams for TRANSITIONS workers who have completed up to one year of subsidized work with the City. The point preference would be based on two factors: on-the-job experience; and the fact that targeted enrollees on TRANSITIONS would be considered similar to a "protected class" of workers due to their extraordinary employment barriers. Core program services During the period of temporary subsidized employment the participant will be expected to work on their individual employment barriers, with the support and assistance of the TRANSITIONS project staff. Again, activities will be structured, and while every effort will be made to tailor support services to individual needs, certain core support activities will be required for all participants. Commitrnent to the total program concept, and therefore to the success of the project over time, will be expected from all enrollees. Support activities will include, but not be limited to, the following components: � Jo�Seeking Skills Orientation � Introduction to the Q/orld of Work * Pre- and Post-Vocational�Assessment Testing �* Motivational/Attitudinal Workshops * Supervisory Evaluation Counseling Sessions -46- . ��-�� Other problems of a more personal or individual nature will be resolved during this period as well, such as: , � Skills training: from GED to Aduit Basic Education to literacy tutoring � English as a Second Language Coursework � Day Care � Chemical Dependency; referrals as appropriate � Identification of inedical barriers to unsubsidized placement; referral as appropriate Enrollees who need to spend concentrated time on diminishing their employment barriers will be released from work up to eight (8) paid hours per week to participate in core TRANSITIONS services. This is especially important for the targeted population served by this project. They need high support and intensive services during the period of subsidized employment. TRANSITIONS staff will also continue working with the enrollees for counseling and support up to six (6) months after their ultimate unsubsidized placement The City of Saint Paul is involved in a great variety of job training efforts through the Job Creation and Training Office and the Saint Paul Public Schools. These are primarily funded through public resources — with restrictive guidelines which by and large prohibit funding for subsidized employment. The unernployed clients that come to The Saint Paul Center for Employment and Training, are in need of many services, not only employment. Clients receive assistance through the coordination of all existing resources to address their complex needs, in a comprehensive and individualized manner. The special problem identified for the targeted TRANSITIONS worker is that no degree of services will prepare certain individuals for employment as quickly as the actual experience of working on the job. It is this young worker that TRANSITIONS will assist. -47- . �) -_-�7-77/ An average client example � As stated, federal and state initiatives strongly encourage private sector placements, limiting the kinds of services the City can provide to the "hard core" unemployed...those with immediate and complex barriers to their employability. The young adult, too old for "youth programs" or uninterested in further training, has not had a public work-and-wages program available during the past ten years. Work and wages are the first thing an individual needs to begin the competitive process of entering the labor force. 1'his is particularly true for this group: "You can't get the job without experience and you can't get experience without a job." TRANSI'fIONS will be advertised visibly with specific focus on the target population. Appropriate media will be used as well as community agency contacts. There will be more eligible applicants than slots are available. Therefore, as mentioned, other employment and training resources will be used whenever possible for the overflow. 1) The applicant receives registration information 2) Applications are prioritized by eligibility and target populations 3) Applicants not selected for TRANSITIONS are reviewed for eligibility for other center programs and referred as appropriate 4) TRANSITIONS enrollees will be notified and scheduled for an Orientation workshop. This is conducted for clients currently with a . specific curriculum on the World of Work. The workshop will be carried out by School District TRANSITIONS Support Staff. 5) TRANSITIONS enrollees will be assigned to a Counselor/Job Developer. Staff working on other City-sponsored jobs programs will be assigned to TRANSITIONS for•a portion of their time, and additional staff will be added to augment the Supp�rt Services Section (see budget). -48- ��7-77� Counselor/Job Developers will be expected to take on 15-20 TRANSITIONS workers each, in addition to their other clients. This will result in a system of case management and evaluation being designed specifically for the TRANSITIONS workers. 6) The Counselor/Job Developer works with the TRANSITIONS enrollee to identify the appropriate type of subsidized work experience. They draw on the pool of possible sites, and will respond, in part, to the priorities of the Better Neighborhoods Pro�ram. 7) Client's immediate employment barriers are addressed, (i.e. health care, child care, transportation, clothing, glasses, uniform). 8) The client is placed in a subsidized work site for ideally three (3) months, but on average eight (8) months. 9) Once the placement is made the Counselor/Job Developer assists the client in addressing other barriers, (i.e. basic skills upgrading, GED, chemical dependency problems). 10) In the third to fourth month of subsidized employment, the Counselor/Job Developer begins to intensify efforts to move the client from subsidized to unsubsidized employment. This will include drawing on contacts with other programs, (MEED, JTPA, etc.) and it is during this time that the case management, approach is most apparent. After four (4) to six (6) months, the Counselor/Job Developers will "know" the 15-20 TRANSITIONS clients they are responsible for and will be able to "sell" them to prospective employers accordingly. , 11) On average the TRANSITIONS worker will be placed in unsubsidized employment (with continued counseling support for six (6) months), within an eight (8) month period. Some clients will remain on TRANSITIONS subsidy for up to twelve(12) months depending on their needs, or the needs of their particular project assignment. -49- ��7-77/ The transition As indicated, the temporary subsidized work experience is expected to last an average of eight months, and will not exceed twelve months for any one enrollee. This average length of time is based on the many years of experience the City and the School District have working with programs of a similar nature. There will be enrollee attrition and some participants will move into the unsubsidized labor force more quickly than others. This model has worked extremely well in Saint Paul through the MEED wage subsidy program. Based on that experience, a TRANSITIONS placement rate of 75% of the total enrollments is projected. Job Developer/Counselor staff will continue to work with the participants for up to six months after the subsidized employment period ends. This is one of the potential advantages of a multi-year project, and essential to the success of the hard-to-place client. Positive program completions, result in unsubsidized employment or enrollment in full-time training. ' Constant monitoring by the job developer/counselor will help to insure the overall success rate of 75%. ' Three types of skills will be developed by the clients enrolled in the program: 1. Job Keeping/Seeking Skills including: � barrier reduction * good work habits including: timeliness, courtesy, appropriate dress, productivity, teamwork/cooperation �- how to successfully present oneself to an employer and at the worksite 2. Literacy Skills increased capability toward employment literacy 3. Vocational/work related skills Job keeping/seeking skills are easily transferable and once learned can apply to any work situation. The same can be said for literacy. -50- . ��-�-�� Work related skills will be transferred by the special efforts of the Job Developer/Counselor who will come to know the client's unique needs. This individual is also responsible to know the needs of the Labor Market, and has access to a wide array of information relative to Saint Paul employment trends. Individual clients will be placed in subsidized jobs based on their interests, skills, and abilities demonstrated in the counseling process and through pre- and post- testing. Approximately four months into subsidized employment, the Counselor/Job Developer will work closely with the client to review progress in these areas as well as in the area of on-the-job skill development. The Job Developer/Counselor will•begin intensive, unsubsidized placement efforts at this time. Long-term experience in delivering employment and training programs has provided staff with an excellent understanding of labor market conditions. Staff focus on job development efforts on high-growth employment areas that are identified through the analysis of labor market data on Saint Paul, by the State of Minnesota through monthly reports. -51- . Ci��`y�f � TRANSITIONS PROJECT ACTIVITIES The project activities to be carried out by TRANSITIONS are varied, and some not yet prioritized. This is intentional. Over the course of the three-year program many new and creative approaches to improving city services to the many neighborhoods of Saint Paul will evolve. TRANSI'TIONS will be able to adapt to the varied needs of our neighborhoods. The intention is to bring their ideas into the mainstream of TRANSITIONS activity as needs are identified. This is best accomplished in a multi-year project. The following projects could be initiated immediately, and are provided as examples. Additional TRANSITIONS/Better Neighborhoods Program projects will be incorporated as identified. TARGETED CITY SERVICES ' City departments will be given an opportunity to use TRANSITIONS enrollees to accomplish tasks beyond their existing workload that will augment services to city residents. � A crew of "public works" type employees will be employed by TRANSITIONS and assigned to the Public Works Department and the Housing and Building Codes Division to improve the services of their limited work forces. 'Tasks to be completed in all cases will augment reg�lar budgeted services, and will impact several areas where residents feel an inadequate level of service is currently being provided, due to staff limitations. For example, code enforcement tagging and identification could be improved with additional workers to do the leg work. * The Public Health Division utilizes Health Screeners to assist in doing neighborhood health fairs. They could also use additional Health Screeners as well as South East Asian translators. -52- . ��-77/ * The Department of Parks and Recreation would like trainees to work on the small usage park space, much of which is located in neighborhood areas. Tree planting to replace Dutch Elm damage is an ongoing concern, as well as spring clean-up of the major usage park areas. The TRANSITIONS staff, and the staff of the Mayor's Better Neighborhoods Program will be working closely with the city labor unions and the Personnel Department to identify classifications and openings in the city workforce where the workers from the project could literally transition in to full-time unsubsidized work. Also being explored is the option of accrediting the city TRANSITIONS workers with extra preference points -- Urban Experience Preference points — which they would be able to have applied to their final test scores when making application for permanent openings with the City. It is estimated that through retirement and attrition there is a turnover rate of approximately 300 city workers a year in Saint Paul. While it is recognized not all jobs would be open or appropriate to TRANSITIONS workers, every effort will be made to take advantage of those which are. -53- . }C,� �?_�7� INDIVIDUAL PLACEMENT TRANSITIONS 1VORKERS Several Saint Paul human services initiatives are underway at the present time in city neighborhoods. Those that relate to broad city concerns (i.e. neighborhood improvement, economic development) can be facilitated with the placement of workers to assist the volunteer or private nonprofit agency workers in continuing these initiatives. Some of them are: Youth Gang Response Team Coordinator Neighborhood Projects Interns - to facilitate the identified priori#ies of District Councils, Multi-Service Centers, etc. Saint Paul Food Bank - aides at neighborhood distribution sites Senior Citizen Meals on Wheels delivery and outreach Day Care Center aides for nonprofit Day Care centers Health screeners for neighborhood PNP health centers Better Neighborhoods Program staff aides . "fhis list will constantly evolve as neighborhood priorities are identified and incorporated. LITERACY TUTORING � Minnesota statistics indicate that 236,000 state residents are functioning below the most basic literacy levels, and 600,000 adults are functionally illiterate. The percentages are likely to be up to three times higher for economically disadvantaged minorities. Last summer the Saint Paul Summer Youth Employment Program had a special project called Youth Tutoring Youth, or YTY. Fifteen kids earned their summer wages by tutoring other students who were participating in remedial education classes during the summer months. The program was so successful that at the end of the summer, when the teacher/supervisor was asked to select one of the studentsfor an award, it was impossible to choose one tutor who had done -54- ��-�7� a better job than the others. The youth felt particularly rewarded by their work, as they could witness the immediate results in their students. They also stated that the program enabled them to see what the work of their teachers was like, from another perspective. Five of these YTY disadvantaged graduates are in college now. Four are studying to become teachers. TRANSITIONS will incorporate their model with able adults, and attack the problem of literacy for Saint Paul adults. Placements will augment the efforts of existing programs such as the Twin Cities' Literacy Center and other Saint Paul Schools' programs. TRANSITIONS - EARLY CHILDHOOD FAMILY EDUCATION FOR DLSTRESSED NEIGHBORHOODS Low-income parents in high risk areas need considerably more attention than the program currently allows. Specifically, there is a need to develop more outreach workers from the neighborhood and parent-aides. The current state aid and local levy funding formula for Early Childhood Family Educatior� is fixed at a certain rate. There are greater expenditures associated with increased outreach and special programming to serve special groups of parents � and children in low-income areas. The current ECFE state aid formula is not adjusted (as is the regular school aid formula) for the number of disadvantaged or poverty families in school attendance areas. Using the TRANSITIONS Project, by employing unemployed neighborhood residents for outreach and parent-aide work, provides ideal job development and community reinvestment at the local level. High-need, hard-to-reach parents are not going to find or seek out a program they know little about and have no direct experience with. If a program is going to serve such parents, the program must go to them and reach them where they are -- in their homes, temporary housing, or neighborhood meeting places. Workers will be hired through TRANSITIONS to provide this outreach function. -55- . �� 7�� , BETTER NEIGHBORHOODS ECONOMIC DEVELOPMENT Certain new jobs, in the private sector, would be a result of successful economic development ventures attracted to Saint Paul's economically distressed neighborhoods through the Better Neighborhoods Program. Foundation funds would be used to leverage through TRANSITIONS, the creation of new private sector positions for a period of up to six months at a level of 50 percent of the total wage. The Better Neighborhoods economic development positions created would be coordinated through the Better Neighborhoods Office and the TRANSITIONS Office. Each new job, of course, would be a function of the business ventures attracted into a given neighborhood. The foundation funds would function as a direct inducement to spur much needed economic development activity in targeted neighborhoods having high risk factors normally associated with urban decay or blight. 1'he jobs would be directly provided to area residents currently unemployed and currently having marginal economic opportunities. In many respects this . program is similar to the previously successful Work Opportunities Program (now the Minnesota Employment and Economic Development program) originally funded through the McKnight Foundation. BETTER NEIGHBORHOODS TRANSITIONS SERVICES To carry out the Better Neighborhoods Program in the City of Saint Paul, poor neighborhoods will need increased attention to services. The Better Neighborhoods Program will focus on specific projects designed to improve programs and services in local communities, and TRANSITIONS will assist in carrying projects out. A team of better neighborhoods services workers, financed through the TRANSITIONS Program, will report directly to the Better Neighborhoods Office and will have responsibilities and identified tasks in carrying out specific objectives targeted in the Better Neighborhoods Program. -56- � �f�`7�1 For example, a Better Neighborhoods Services Worker could be responsible for supervising a summer neighborhood improvement project team; or he or she could be responsible for a "Project Motivation" type college student group working with a group of neighborhood teenagers on identified projects. Better Neighborhoods Services Workers would, in effect, function as a special services team having responsibility for a variety of better neighborhood efforts identified during the course of the three-year TRANSITIONS project. Service workers would be appointed for a one-year period and would receive the appropriate support services as well as the work experience through the TRANSITIONS program. -57- ��7-77/ ADMINISTRATION AND COORDINATION The City of Saint Paul and the Saint Paul School District have a great deal of experience in developing and operating employment programs for unemployed youth and adults. At present the two agencies provide services to over 4,000 clients per year. The City will provide financial and programmatic administration for the McKnightTRANSITIONS Program through the Job Creation and 'fraining Section of the Department of Planning and Economic Development. Client services will be provided under subcontract by the Saint Paul Public Schools, Center for Employment and Training. Modest administrative costs for both agencies are included in the project budget. The City receives funds from the State of Minnesota to coordinate employment programs with Ramsey County and Saint Paul Public Schools. The Work Readiness Program is an example of cooperation between the three organizations. Under Work Readiness clients are provided with an array of support services including food stamps, medical assistance and chemical dependency counseling. This coordination of client services helps to maximize the success rate of job - placements because the clients' human needs are addressed. The McKnight TRANSITIONS Program will benefit from this experience between the three governmental organizations and staff will be able to build on existing rel3tionships rather than trying to develop new ones. The MEED Program funded by the State provides incentives directly to businesses to hire unemployed residents. The program lacks the ability to provide clients with all the support services they need to successfully maintain employment. Therefore many MEED recipients are terminated or quit because they are unable to function on the job without outside support. This realization coupled with experience from over 15 years of ernployment training and job placement experience provides the necessary expertise to make the McKnight TRANSITIONS Program a success. -58- . ��-77� The project is backed by an experienced staff who have received national recognition foc their efforts. They have also faced difficulties, such as the unsuccessful Energy Park jobs project that offered a number of very practical lessons: 1. It is unwise to restrict a program to one specific site, especially a site that is not fully developed, as was the case at Energy Park. 2. Top management has to be committed to the program's success. Management failed to react to the changes in the development in time to take decisive action to create the res�lts we sought. 3. There must be a strong connection between job placement and economic development staff. The city's jobs program was located organizationally in the Community Services Department. It is now in the Department of Planning and Economic Development. 4. The Energy Park program did not have the force of legislation through the first source agreement. It is now in place with Saint Paul businesses. The first source agreement is less than a year old and has already yielded over 75 ` jobs for the Saint Paul residents. 5. We did not have funding to provide for job subsidies to create positions needed for an on-the-job period of work experience. -59- . �-��_7 7/ The chief administrator of TRANSI"fIONS will be Jacqui Shoholm, Director of Saint Paul's Job Creation and Training Office/Saint Paul Department of Planning and Economic Development. Oversight and coordination with operating city departments is the responsibility of the Mayor's Office through Bob Kessler, reporting directly to the Mayor as his Better Neighborhoods lead staff person. Jacqui Shoholm has been with the Job Creation Office for 15 years, having replaced its previous director in 1985. In her capacity as Director she has oversight responsibility for all public funds administered by the city for job training programs. Bob Kessler, a long-term city employee with 14 years experience in the Department of Planning and Economic Development, was recently appointed to lead the Mayor's Better Neighborhoods Program, working with the Mayor on a day- to-day basis on all related issues. To make TRANSITIONS work requires a team approach that integrates strong management accountability with the jobs and training portion of the program through Jacqui Shoholm; coordination of neighborhood work projects through the Mayor, Department of Planning and Economic Development, and other operating city departments; coordination through the Saint Paul School District Center for - Employment and Training and its director, Ron Finnegan...a level of coordination that has been excellent for several years; and, high level negotiating and decision- making power through the Mayor's office. Jacqui Shoholm will manage the program as the chief administrative officer and, additionally is responsible for supervising the work of the Center for Employment and Training under contract with the school district. The buck stops in the Mayor's office through Bob Kessler's responsibility in the Better Neighborhoods Program and as the chief mayoral staff person in this area. -60- 2 � �7-77/ ' ATTACHMENT MINNESOTA JTPA MANAGEMENT INFORMATION SYSTEM � MEED JOBS LISTING OF PLACED PARTICIPANTS PLAC NAME PLAC TITL � PLAC WAGE Bacher Enterprises Packer $ 3.90 Martin Wood Spec Factory Worker 4.00 Video Update Sales 4.00 Miracle Brite Cleaning General Cleaner 4.25 First Banks St. Paul Customer Service 6.00 Selby Tom Thumb Stock 4.00 George Roscce Heating Insulation 8.00 FSS (DBA) Gopher State Installer 4.SO St. Paul Public School Custodian 10.27 Professional Car Cleanup Driver 4.00 . Bethesda Family Clinic Clerical 6.00 Ramsey Hospital Clerical 6.20 Beermans Services Sorter 4.00 City of St. Paul Clerical 6.33 K ac L Mfg. Co. Sewer 3.35 Towner Trucking Truck Driver 8.37 B ac L Upholstery Driver 4.SO Collis Curve Assembler 4.00 R/ire Tech. Inc. Mach. Operator 4.50 Gamer Accounting Servicw General Office 5.00 Becher Enterprises Packer 3.65 Shared Savings Janitor 4..00 ASL Inc. General Assembly 4.SO Actionwear Unlimited Asst. Manager •�.00 St. Bernard's School �anitor 6.50 Jewish VoTech Services Clerical S.SO Beerman Services Driver 4.00 Minnesota Wire ac Cable Assembler 4.SO- Minneapolis Insulation Co. Installer 5.00 C. Joseph Howard C.P.A. Clerical 4.00 Juel Fairbanks Clerical 4.00 Comtech Inc. Instalier 5.72 PCB Accountant 6.00 Minn. Wire ac Cable Assembler 4.25 Wicklough Inc. Medical Asst. 5.55 � Com-Tech Inc. Installer 5.40 CPP Security Security Guard 4.00 Tom's Chrome Shop Plater 5.00 Hotzler Laborer 4.SO Syep Crew 4.00 Scotts Import ac Domestic Auto Repair 4.00 Campion Meats Laborer 4.75 Recycling Unlimited Material Handle 4.00 Gleeson dc Associates, Inc. Draftsman 8.00 Wicklough Inc. Payroll Admin. 7.46 Silver Fox Security Guard 4.75 r L r�"'l� . � � CITY OF S�.INT PgUL � �7'77( ''i'�ili� . OB'BZCE OF THE CI'1+Y COUNCIL r . � ..... � . � Comm�ttee Repart �ina�ce. Mana�eme�t, &_ Persannel Connmittee. MAY 21, 198�1 1. Follow-up discussion on making the city's budget process more responsive to City Council needs (laid over from April 30, 1987). discussed 2. Approval of minutes from meeting held May 7, 1987. avproved 3. Resolution adjusting the rate of pay in Section II B '.'Special Employments" for Library Aides in the Salary Plan and Rates of Compensation Resolution. approved ' � 4. Resolution establishing the rate of pay in Grade 29 Professiona2 Employees Standard Ranges for the class of Risk Manager in the Salary Plan and Rates of Compensation Resolution., approved . � , . . . _ ..«__ x �. . � , •__ ,_ ' ��: � rove � . 6. Resolution amending the 1986 CIB budg,et by transferring $105,000 from Fire Station 18 Remodeling and Capital Maintenance to Fire Station 24 Addition. avvroved as amended (amount to be $ 115,322) 7. D-8355: Authorization of Fitzgerald & Long to conduct review of computer � hardware and software configuration and design of the Financial Management System. discussed CITY HAI-I- SEVENTH FLOOR SAINT PAUL,MINNESO'TA SSI02 �as .