The five-year trend of reduced federal workforce funding is not turning around. CLM Workforce Connection has seen a 36 percent reduction in budget during the last five years,  a reduction in workforce center employees from 80 full time employees to 35, and a reduction of Workforce Centers from 12 to three in the three county region.
 
With unemployment rising from 4.4 percent to 5.9 percent during the last year and walk-in traffic increasing by 41% in the workforce centers, one might expect to see the workforce budget increasing. However, the recent passage of the federal budget for the current year contains several negative impacts to local workforce regions.  The State of Florida has received notice that it will have $250 million in federal funds rescinded or taken back in order to meet the federal budget demands.
 
Workforce Florida has stated that it would do what it could at the state level to minimize the impact on the local workforce system. However, CLM Workforce Connection has frozen most hiring, travel and non-essential expenditures in order to prepare for the expected impact. The rescission of funds that were originally budgeted for a three-year cycle, will impact the remainder or this year and next.
 
Unfortunately, that may not be the end of the impacts for 2008. A continuation budget may not be implemented until after January and the Presidential election is completed. At that time, another round of cuts could occur to help balance the budget.
 
In Tallahassee, companion bills are out in both the House (1505 and 1507) and Senate (2436 and 2496) to create a Business and Competitiveness Fund. The bill generates more flexible job training funds for Florida employers to be administered through the Regional Workforce Investment Boards. Although economic spending that stimulates the economy seems to be gaining attention, it is not certain whether these bills will make it through this year.
 
The bills amend portions of the unemployment compensation and workforce statutes related to the minimum unemployment compensation contribution (tax) rate. Seventy cents per employee would be earmarked for this fund creating $5 million in additional statewide targeted training funds. It supports local economic development business retention and expansion efforts, development of career opportunities and job retention/advancement of current incumbent employees and prevention of unemployment. The funds would not be subject to federal eligibility requirements.
 
Funded initiatives would include specific sector strategies in targeted industries (as identified by Enterprise Florida) to assist businesses with their immediate workforce needs and special grants focused on developing skills that Florida businesses and workers need in order to compete globally.