LANSING, Mich. — The Michigan New Jobs Training Program will be extended an extra five years after legislation sponsored by state Sen. Darwin Booher was signed into law Wednesday.
Under the successful statewide initiative, community colleges provide training for new jobs and graduates receive a competitive wage when they enter the workforce. The program had been set to end Dec. 31, 2018. Booher’s Senate Bill 69, which is now Public Act 130 of 2015, pushes the program sunset to Dec. 31, 2023. The law also revises language about the state’s minimum wage as it relates to the program, due to the recent increase in the minimum wage.
“Michigan’s economy continues to grow and job providers are increasingly in need of highly skilled and trained workers to meet the demands of the 21st century,” said Booher, R-Evart. “The Michigan New Jobs Training Program has been a great success in this effort and I am happy to have played a small role in making sure the program will be available to serve Michigan residents for even longer.”
The program began in 2010 and lets community colleges statewide create a training pool through flexible financing mechanisms to support employers who are creating jobs or expanding operations in Michigan.
The program generated more than $76 million in additional earnings and 2,266 new jobs in 2012 alone, according to a report issued in 2013 by the Anderson Economic Group, an independent economic research firm.
Under the program, training for newly hired workers is paid for by capturing the state income tax associated with the new employees’ wages and redirecting it to a local college, instead of to the state. The new jobs must pay at least 175 percent of the state minimum wage.