A searchable audio archive from the 2013-2016 legislative sessions of the North Carolina General Assembly.

searching for

Reliance on Information Posted The information presented on or through the website is made available solely for general information purposes. We do not warrant the accuracy, completeness or usefulness of this information. Any reliance you place on such information is strictly at your own risk. We disclaim all liability and responsibility arising from any reliance placed on such materials by you or any other visitor to the Website, or by anyone who may be informed of any of its contents. Please see our Terms of Use for more information.

Senate | March 11, 2015 | Committee Room | Workforce and Economic Development

Full MP3 Audio File

In the audience it’s time to start. I’m Senator Ron Rabin. I’m the chair for today and the Workforce and Economic Development Committee. I think we need to stay on focus with the workforce and economic because the two will have a synergistic effect on each other. I’m hoping that the committee will look at it this way and with your input to affect all parts of the issue. [??] I bet you can hear me better now. I don’t have to say it again. Anytime when you see a good idea what you really ought to do is steal it and I sat in an earlier committee meeting where, I give full credit to Senator Wade for this idea cause I thought it was really nice. You know, traditionally we introduce the pages and I’m going to have them introduce themselves and tell you who they are and what they’ve done and who they represent so you get a better view of what these great young kids are all about. Ladies, you’re on. You are the pages. [SPEAKER CHANGES] Hi, my name is Marcy Bishop and I’m from Apex, NC and my sponsor is Senator Barefoot. [SPEAKER CHANGES] I’m Erin Olo and I’m from Holly Springs and my senator is [??] [SPEAKER CHANGES] I’m Carson Honeycutt, I’m from [??] and my senator is Senator [??] [SPEAKER CHANGES] Thank you ladies and thanks for being here and, yes sir. [SPEAKER CHANGES] Mr. Chairman I noticed one of them is wearing the badges of a girl scout and a lot of girl scouts are in the building today and needless to say that is a wonderful organization. I’m very proud that she’s wearing her uniform to let us know that she is a girl scout. [SPEAKER CHANGES] Not only that, my legislative assistant’s here doing this for the first time and she has two sons that are eagle scouts, so we’re into the scouting game right away. Moving right along, we also have Sergeant of Arms who are making sure that bad people do not get in the door and as long as it’s a full room, we’ve got standing room only. We’ve got Donna Blake and we’ve got Steve McCabe in the back. So you can get out these other doors but you can’t get out these two doors. The purpose is trying to figure out how we can do a better job, you know, with working on the economy the way we are, trying to get the jobs created by the businesses who really create them. Workforce and economic development has a strong case to play in there and what we wanna do also is make sure that we have the people and the talent and the skills locally in the state that we have state residents filling those jobs. Today’s presentations will focus mostly on the community colleges and what they do and they do a really terrific job of filling the near term needs of the local communities because they’re right there working hand in glove with them and then we will see how we can do other sorts of things later on. I have two co-chairs, Senator Barefoot and Senator Curtis, would you guys like to say anything. That’s the best of all worlds, you only have to listen to one of us. Without further ado then I’ll introduce, the first speaker will be Dr. Marshon who is the president of the Central Carolina Community College and he is accompanied by Commissioner Jim Bergen who is the Chairman of the Board of Commissioners in Harnett County and they’re working together on the issues of how do we fill the workforce needs in local communities. Yeah. [SPEAKER CHANGES] Thank you, senator. We appreciate the opportunity to be here. I also have to say that Mr. Bergen not only serves as Chairman of the Harnett County Commissioners but he also serves as Vice-Chair of my board so I have to behave while I’m up here. We have some programs that we’d like to discuss with you, some of which you may have heard from before, and then I’m gonna allow Mr. Bergen to talk about the way that we do the workforce investment act, the Triangle South Workforce Development Board. The first program I wanna talk to you about is the Caterpillar Apprenticeship Program and you should have in your folder a brochure on the Caterpillar Apprenticeship Program. We’re very proud of this program. this program is now in its 4th year. This is the largest youth apprenticeship program in the state of North Carolina and it is a partnership between the Department of Labor, Central Carolina Community College, the Lee County Schools and Caterpillar and it grew

out of the need for Caterpillar to know how, when they decided to expand a plant in Sanford, North Carolina, how we were going to be able to create for them a pipeline of welders that they would know would be continuous and trained to their specific standards. This program started off with a selection of 12 students, we graduated out of that 12, we graduated about seven. Now, we select 16 students a year, it's become highly competitive. This past year we have 16 that we have selected out of almost 90 students that have applied for the program. The program is unique in that they begin their training in the 11th grade. In between the 11th and 12th grade they actually work with Caterpillar on the floor for $10 an hour, they complete their training during their 12th grade year, and at the end of their 12th grade year they come out with a high school diploma and a welding certificate and a job at Caterpillar that starts upwards of $40,000 a year. This program has been lauded all over in the state, and actually we've been very fortunate that the US Chamber of Commerce in Washington wrote an article saying this is a program worthy of being copied, so we are quite proud of the program. As you can see from the picture inside, the Governor was kind enough to come down last year and congratulate these young apprentices on the work they had done. From the very beginning, the founding philosophy on this program was to make those students who were selected for this program feel special, and we have worked with Caterpillar to do that. We have hot dog suppers with them, we meet with their parents, we introduce them to the County Commissioners, we take them to chamber meetings, Caterpillar's great and they provide them hats and shirts and whatever. You know, we celebrate sports teams in high school as we should, but we celebrate this group just like we celebrate a sports team and they appreciate it and they're very proud to be walking down the halls in the high schools in Lee County with their Caterpillar shirts on. There is an opportunity if they wish to go on, once they finish this, they can go on and receive a diploma in the Caterpillar program, in the welding program, if they so wish. That's one program, like I said it's in its fourth year. The next program that I've been asked to talk about is Central Carolina Works, and this is a program that came about because we were finding that many high school students simply did not understand career in tech. They did not understand what it meant to be on a shop floor, they did not know what a career in tech career was. They know from guidance councilors, and believe me, guidance counselors do a great job, but many guidance counselors have never been on a shop floor themselves, so we decided on a program that privately raised money to allow us to put a college employee, a college counselor in each of the nine high schools in our area for two years. That's how much private funds, combined with grants and other things that we raised, that would allow them to go into those schools and talk to students about career in tech programs, along with transfer programs. And we have seen in our first year, the counselors just went in in August, the number of students actually now entering dual enrollment take a dramatic increase, and I can tell you the numbers for next Fall are looking absolutely incredible, and the majority of these students, because it's near and dear to my heart, and I know it's near and dear to Scott Rall's heart, the majority of these students that are starting in this program are going into career in tech fields, about a third are going into transfer, but two-thirds are going into career in tech fields. You can look at this, I won't bother to go all over it, but I would like to draw your attention, this is how the funds were raise, if you flip all the way over, you can see each of the three counties put in a certain amount of money, we then had grants and we had a lot of private donations. We had a private champion by the name of Kurt Bradley who is an incredible supporter of the community college system but also understands work force development, and he headed up the campaign for us and help us raise the money. Commissioner Burgin was on the Harnett County Commissioners when we were able to put this together and we do appreciate their supports. That's briefly what I had to talk to you about, I'd be more than happy to answer any questions or, believe me, I can talk about Central Carolina Community College for a long time, probably a lot longer than you want me to, but are there any questions about either of these two programs or anything else that we do? [SPEAKER CHANGES]Thank you, Dr. Ralls

I wanna go back to the Caterpillar. I have a Caterpillar in my district in Winston-Salem, and I believe it's somewhat the same program, maybe not to the capacity that Harnett County is doing, but it is a wonderful, wonderful program. I have enjoyed going out there, so thank you for the work that you're doing on that behalf. Community college at its best. [SPEAKER CHANGES] Well, thank you and we do appreciate your support. And if you want to see something, come and sit with these students. Come and, because they found something. They found something in their lives that now means so much to them. We, when Secretary Decker was in charge of commerce, she came down one day and literally sat in the middle of them, and listened to these 16 and 17 year olds talk about the wonderful experiences, and what they were gonna do career wise at Caterpillars. Truly, truly an inspirational activity. [SPEAKER CHANGES] Senator McInnis? [SPEAKER CHANGES] Thank you mister chairman and Dr. Moore, appreciate you being here. I am a big proponent of the community college program and system in North Carolina as a eight year alumni of the North Carolina public school board in my county of Richmond, so I know the value of it, especially to the rural counties of North Carolina. My question is on your CAT program, is it limited only to Lee County? I know your footprint is bigger than just Lee County. [SPEAKER CHANGES] Yes, that, the CAT program, now we are in the process with Mr. Bergen's help, we will be initiating a machining youth apprenticeship program in the Fall, but it will not be based at one company, which is, Caterpillar's a large company. We are actually going to engage eight different machine shops that will allow us to probably put 12 Harnett County students into a similar program, but they will be studying machining as opposed to welding. [SPEAKER CHANGES] Follow up. Follow up, mister chair. On your college counselors going into the high schools, and is that just one county that that? [SPEAKER CHANGES] No, that's all three. [SPEAKER CHANGES] So that's the total footprint. [SPEAKER CHANGES] We, we did that a region. We did nine high schools in our three county area and each high school has an individual college employee counselor in the high schools, and they've been graciously accepted. Our three superintendents are all on board, and they are already making contacts with students and parents, and one of the criteria we used to hire them was that they understand what it means to be involved in career and tech. They've been on a shop floor. They know what these types of programs and these types of skills are, and they're able to convey to the parents and the students what type of jobs, what type of careers, and quite frankly, what type of money. [SPEAKER CHANGES] Follow up, mister chairman. Final. Is, are they, do they lend themselves to be having more allegiance to the community college system or to the four year college system? [SPEAKER CHANGES] They are our employees. They're gonna be for the community college system, yes. We wanted them to be community college employees. We respect and understand the role of guidance counselors and principals, and we understand they have a rough job, a full time 24/7 job, but we wanted these people to be college employees so they were, their first allegiance is to the college. [SPEAKER CHANGES] Senator Alexander. [SPEAKER CHANGES] Thank you very much, and thank you for your presentation, sir. A couple three days ago, we had a presentation where, I think there's six different state agencies that have to do with trying to develop jobs, and there was like conversation about maybe turning more of this over to the community college system. Would you have appetite for that, sir? [SPEAKER CHANGES] I'm gonna defer to Scott Rolls back there. He can answer that question. [SPEAKER CHANGES] Listen, I have the best job in the world. I am the president of central Carolina community college, which is a phenomenal institution and a phenomenal part of this state that does, goes about the business of changing lives every single day. I couldn't be happier. I honestly don't know about the six agencies, although, although you're gonna hear about one that we do run in, in our area, but community colleges are all about changing lives. They're all about giving people opportunity, in many chances a second opportunity. So I think that whatever you can do to support that and to increase the awareness and the level of the general population of what community colleges can do, the better off you'll be. [SPEAKER CHANGES] Any other questions? I do have a quick one, sir. And it sort of follows onto what Senator Alexander talked about. It's quite clear that for the jobs today and the jobs tomorrow and for the next couple of years that community colleges have the premium role to play in getting the jobs filled and taking the students in

And is it fair to say that beyond that, there's another, let's look ahead and look ahead, into a mid and a far term, what the needs are going to be. And with a definite role for the UNC system to be in the workforce development business as well. It's easy to get focused on the jobs now, because we need them now, kind of an idea. I have an idea in my mind that it sort of transcends that, if you will, and moves on beyond, so we have a structure in place that helps get workforce development on a longer track than that. [SPEAKER CHANGES] Anecdotally I'll give you one quick answer to that. There's a young man in our service area who spent two years getting a degree in auto mechanics. He went to work for one of the larger dealerships in Sanford. He has now been able to move into the management of the entire auto repair business within that dealership, and he was able through a partnership we have with Franklin University to get his bachelors degree and he is actually been kind of groomed for management even higher than that within that auto dealership and he's actually begun a masters degree program. So yes, I think there always needs to be the path forward for those people that want to move forward in terms of having additional training and education, and I do think that, I've worked in other community college systems, and unlike them this system is truly aligned in many ways that I think gives us a head start in allowing people to pursue additional education. [SPEAKER CHANGES] Senator Tillman. [SPEAKER CHANGES] Colonel, you can see, better than I thought. He wasn't looking at me and he saw my hand up. Thank you Mr. Chairman. [SPEAKER CHANGES] ?? [SPEAKER CHANGES] It makes me feel good. You're at least as old as I am. Colonel is looking down the road and I don't, and I mean I think that's good. What I like about the community colleges system is you focus on these jobs as the need arises, you can quickly adapt. The Universities are not quick at doing anything. They're not. They're not geared for that. They've got their programs and their curriculum that they're in love with and they have a certain purpose to serve. I don't know if they can retool and re-gear to make kids job-ready, as much as just education-ready, for various fields, and a lot of them being liberal arts and some of them do a great job in business in finance and some of those areas. But [SPEAKER CHANGES] Senator McGinnis I only served 29 years and 7 months ?? for 7 so I know a little bit about what they do. That ain't bragging, that's on the record. I'm just wanting to say that I want y'all to continue doing what you want. I don't want you to be a University system and some of you all tried that and we put that down as quick as we heard it, that you're trying to be a four year and wanted that. I like what you're doing because you can quickly adapt to whatever moves into town, that the need is to train these workers. Caterpillar is a great company. You're doing a tremendous job. You've been paying these kids ten dollars an hour while they're still in high school to work there. That I want you to keep your focus on, because if we start scattering your purpose, you're going to pretty soon be so scattered you can't do it. I filed that bill, Senator Alexander, to put all the workforce development people under the community colleges. That's not something that can be done right away, number one. And number two, we've got to flesh out some things on that, to make workable. That is a down the road thing. Thank you, Colonel. I took a lot of time to say that. [SPEAKER CHANGES] You took a lot of time to say you sort of disagree with what I've said but I think there's a slight misunderstanding. Yeah, I know. I'm not looking at saying to do anything different because I understand, and I think the committee as a whole understands, as to where the whole decision has to come from, that they do a great job. I said that at the start. I think just before you came in the room, as a matter of fact. [SPEAKER CHANGES] Of course. [SPEAKER CHANGES] And somewhere along the line I think there's room for the committee to look at things that are more proactive rather than reactive. Right now, we'll sit there with them, with the community colleges doing a great job, but we're reacting to current needs. Somewhere we've got to get together the workforce and the economic development team so that they look down the road and say, “These kinds of industries are coming.” I would ask one more question then. Under that sort of a paradigm where you would say, “If we could figure out a way to do strategic planning in a sense it could save Dr. Marchon, in three years or four years or five or even further out, we're going to have this kind of a requirement where you can start thinking ahead rather than being reactive” it might be a little bit more cost-effective and a little bit easier on your system as well. You don't have to be in

Both camps. [SPEAKER CHANGES] Right, and I do think Dr. Ralls will be up here in just a minute to kind of go through with that. My board has made it quite clear that our focus is career and tech, and we're not opposed, and we're not, certainly not gonna stop doing college transfer, but we're in this for career and tech, and quite frankly, that's where the jobs are, and that's where the future is, so that's our focus. [SPEAKER CHANGES] Senator Barefoot. [SPEAKER CHANGES] You may have already answered this but, so the question that I have about the career coach program. How successful has that program been with, how successful has that program been with getting students into the career tech programs of the community colleges versus preparing them to transfer? [SPEAKER CHANGES] Well, as anecdotally and number wise, we've been in the high school since August, and what we are seeing is a large increase in the number of people who are interested in taking dual enrollment courses, and then following up with community college or four year college after that. And currently, the breakdown is basically two thirds are going into some sort of career and tech field, one third is going into college transfer. We're very pleased with that, because before this time, we actually believed that a lot of students, and perhaps a lot of parents did not understand what exactly was meant by career and tech, and that's something these coaches were hired and trained and we look for backgrounds in order for them to be able to do that. We want somebody who knows about welding explaining welding to a student, or machining or any of these other types of programs that we have. And that's when, when I'm sitting here talking to you as a parent, I need to understand what welding is, what welding does, how much money welding will eventually pay my son and daughter, and that's what these people are there for. And I'm not casting aspersions on guidance counselors. I am not. I understand their role and God bless them. They've got a lot to do, but many of them simply don't understand career and tech. [SPEAKER CHANGES] Follow up, mister chairman? Follow up? [SPEAKER CHANGES] Follow up. [SPEAKER CHANGES] So, so for this committee, you would say that a lot of community college struggle, they struggle filling those career tech seats for a myriad of reasons and so you would say that this program that you guys have been piloting for the past year is giving you a. [SPEAKER CHANGES] Past couple months. [SPEAKER CHANGES] Past couple months, is starting to give you a good indication that there is something the state can do to build that bridge. [SPEAKER CHANGES] If our preliminary data holds true, and we are in the process of registering for next Fall in the high schools right now, you will see a large increase in the number of high school students one, taking dual enrollment courses and if our numbers hold to be correct, two thirds of those students will be entering a career and tech path. One third will be going, and so the answer to your question is yes. We are able to do that, we think because of the knowledgeable people we have boots on the ground in the high schools. [SPEAKER CHANGES] Any other questions? Any other questions? If not, the next, Commissioner Bergen will make his presentation. [SPEAKER CHANGES] Thank you mister chairman, and thank you members for allowing us to be here. I'm gonna talk a minute about workforce, triangle workforce development board, but before I do that I do wanna say you can see, I think, why central Carolina is doing so well. The president is passionate about that. His board is 100% behind him and we're in rural North Carolina. What we wanna do is create jobs, help create jobs, help prepare people for jobs in our counties. So that's the emphasis on everything we're doing at the community college, helping these folks reach their potential. Wanna give you just a, and I'll just, I'm not gonna read all this to you, I'm just gonna hit some of the highlights of it. In 2009 the Triangle South Workforce Development was moved under the college. It was not under there before. It was under a cog. It was moved over there. The advantages of having it are coordination, elimination of all duplicate services, better use of time and better representation in the community. The transition happened. The community college is administering the whole program, so first community college to do it in North Carolina, I am the chief elected official for the North Carolina Workforce Development Board and there are 23 Workforce Development Boards out there. Central Carolina is the primary one that has one I think. ?? had one, but I think they're transitioning back out of that. So the money comes from the Workforce Development Act of 1998. The programs that we do is really comprised of private sector and public sector members. There is a large board that looks after it. The primary programs are the youth program, the adult

Program, dislocated worker, incumbent workforce development program and on the job training. Last year we had $2.2 million of programming funds and served 725 clients. Now the beauty of I think of having it all there together is that we can expose those folks to a lot of the programs that the community college offers, so it’s kind of a one stop place. They can come, all of us know what’s going on at the community college, we’re involved in the community college and we can help do that. Now I wanna share one thing that has really brought my attention to something and that’s what’s going on at Fort Bragg and I was with [??] yesterday, Colonel Samford, and we were talking about this. On average they’re releasing 156 soldiers a week, that’s approximately 8,000 a year. Of those only 1% use their veteran benefits at North Carolina Community Colleges or in the State University System. The benefit under the Montgomery Bill is approximately $61,812 over 36 months, so that’s $1,717 a month. That’s a potential of $164 million of education benefits that we are not capturing. Now I know all 8,000 of those people are not gonna stay in the state, but we need to do a much better job of capturing those folks, getting them into the community college system and/or getting them into the college system. Something that I’ve heard from taking to a lot of them, talking to our representatives is a lot of the money that they’re using for education they’re using for online degrees and from talking to employers, a lot of the employers do not recognize those online degrees. So I think we have a real opportunity to reach out to our military, to bring those folks in and we as a community college, in fact we’ve been talking about it sitting in the back this morning about what we’re gonna try to do to grab those folks, get them into the system, capture that money for the state and to help those folks get good jobs. I’ll be happy to answer any questions. [SPEAKER CHANGES] Any questions for Commissioner Bergen. Yes, sir, Senator McInnis. [SPEAKER CHANGES] Commissioner, appreciate your service to your county and our state. [SPEAKER CHANGES] Thank you, sir. [SPEAKER CHANGES] I’ve had some folks that have shared with me that there’s a high cost of administering the workforce development programs. Have you found that in the system that you’re working in or is that specific to some others or is it across the board? [SPEAKER CHANGES] Yes, sir. [SPEAKER CHANGES] [??] [SPEAKER CHANGES] Anything, follow up. Anything we can do about that. [SPEAKER CHANGES] Well, it’s federal money. It has to be handled a certain way. I think this group and other groups in the state need to talk to the federal folks about how to handle it. I think and I’m not gonna pretend to say how all of it needs to be put together but we have, it’s like shooting a shotgun at something. It goes a lot of different directions. We need to be much more targeted on jobs in this state. [SPEAKER CHANGES] Yes, sir, anyone else? Yes ma’am, Senator Smith. [SPEAKER CHANGES] Thank you for your comments. Did I understand you just say you’re the only workforce development board that’s operating out of a community college? That Fayetteville had it but then they went back to? [SPEAKER CHANGES] My understanding is we were the first and I understood that we were the only one. In talking to Scott he was telling me that Fayetteville was doing it but they are transitioning back out of it. I don’t know those details but I can tell you that we are and we are not planning transitioning back out of it. We want to make it more inclusive and use those funds to better the participants. [SPEAKER CHANGES] Thank you very. Any more questions? If not, thank you gentlemen for the presentation. Thanks for the interesting questions. We have Dr. Rose now who’s the president of the North Carolina Community College System. [SPEAKER CHANGES] Thank you. [SPEAKER CHANGES] Sir? [SPEAKER CHANGES] Please. [SPEAKER CHANGES] Thank you. Good afternoon to everyone. Good to see you. I know you’re in the early parts of these meetings and so I thought what I would do is talk a little bit about the community college role with workforce development. Pretty much workforce development is all our role, so I have to talk about, just about all aspects of the community colleges and hearing your questions and I know many of you well that you are well versed in community colleges so I apologize if I’m telling you things you already know, but sometimes it’s often good to revisit and see how we started and how we formed and what we do and in terms of the scale that we have so with your permission that’s where I will start, but first what I will tell you that while we started based on workforce development, it continues to be our primary focus and since I was last with you in the last session

Or with many of you in the last session. We've been very busy in the community colleges working with our partners under the NCWorks collaborative, with the department of commerce, workforce boards, but within the community colleges as well. Going around the state, to understand what's the challenges that are there and what are some of the best things that we've seen, and before he gets out of the room, I will tell you Bud Marchen is one of the best in our system. We have, I have 58 favorite presidents, but he is absolutely one of my favorites, and we are very philosophically aligned around technical education. But we, we visited, what we've done over the last part of last year is working with our colleagues in Department of Commerce and the workforce boards. We sponsored the largest on site employer survey in the history of North Carolina. So with workforce boards and community college local folks leading this effort locally in every one of the 100 counties, visited over 10 companies, and you see here the map shows some where we visited over 20, some between 10 and 15, but at least 10 in every one of our counties to find out what are the challenges, what are the opportunities, what can we do better and to try to address this collectively and not from a silo perspective. Another thing that we've done within the community college system and that I participated in in every one of these is 21 workforce learning summits. And you see the dots there, and so we did that over the latter part of last year. Many of you participated and were at some of those events, and so we heard the best innovations, particularly collaborative innovations with our, our industry partners, our public school partners, our workforce board partners, and also we talked about the challenges and that, and barriers for us to do more and to do better. Here are some of the general things. Nothing's going to surprise you. The first, first bullet's very good news. We're, we're moving out of the recession, as you well know and this coming year, the employers tell us 90% are either going to be adding jobs next year, or they're going to be at least stable in their employment, and so that's very good news for our state. Main barriers to feeling qualified, for finding qualified employees though remain the same, and going back to, you heard Dr. Marchen talk over and over about technical, technical, technical and job related skills, but the more technical those skills, the more challenging they're finding in filling those careers. Soft skills continues to be the second issue that they mentioned. Interest gap, and I'm gonna come back and talk about that a little later, but that's what Dr. Marchen was referring to. The interest gap with younger students is a big challenge for us. We've kind of coined this phrase interest gap. I'll come back and talk about that a little bit at the end, and the number one workforce service that was identified as a need is additional workforce training and education for employees and for folks coming through community colleges. Now, we play a very unique role in the workforce system. We are that training and education arm of the community college system, and actually in the state statutes you have, you have described what our role is and the community college, and our system office being the agency, if you will, that represents the 58 colleges is designated as the primary lead agency for delivering workforce development training, adult literacy training, and adult education programs. That notion of doing adult literacy is unique for us. There's only about 14 other states where community colleges play the lead role in adult literacy programs, and we'll talk a little bit about that. So some things that make us unique, particularly from a workforce development perspective. First thing, and I think this is core to us, is this is how we started, and why that is unique is that community colleges in the United States emerged post World War II and in that period, most of them developed in other states based on more of a junior college model, more of an academic model in the context of junior colleges often linked with universities. More what you were hearing about the college transfer type role. Our state was different. So in the 1950s we were very much the part of an economic development goal for our state. We were two thirds per capita income, one of the poorest states in the nation, goal of then Governor Luther Hodges was to diversity our state's income beyond just textiles, furniture, and tobacco, and the way to do that was through what we used to call vocational education at that time. And so one of, he had two, I would say two crazy goals. One was to create a research park in the middle of a pine forest. The other was to create a network of industrial education centers across the state, first start in Eden, North Carolina, and that's where that sign is. There were eventually 20 industrial education centers and so when the community college movement came along in the 1960s, it was based on those 20 industrial education centers combined with four public junior colleges in our state, and that became the community college system. What is unique about that though is how our roots began. Our roots began based on workforce training and we grew more comprehensive like other community colleges, but we started from a completely different place, and I think that starting point is, is core to us, because workforce

[SPEAKER CHANGES] Development is always what we have been about. Now, we continue in our role and I actually had a slide here which didn't get included in this part. But 30 years later, one of the things that's very unique to us is our role with economic development. And that was where we started in 1950, the slide that didn't make it to this version. But 30 years later, about 20 years ago, it was November of 1996 there was a front page article in the Wall Street Journal and it essentially said, that while in the war between the states over economic development, in North Carolina the secret weapon is, is job training at community colleges. And that was 20 years ago, and that's still core to our role. We're very, much more connected to economic development than any other community college system in the state. And you see that play out. So when you're talking about the Caterpillar, senator, Caterpillar, when Caterpillar came to Forsyth County, they made a very big point. It was in all the newspapers that their number one factor was the community-was the training they could get at Forsyth Tech. And so that connection with economic development is important for economic development, it's also very important for us because that keeps us grounded in terms of where we are. Now, we're also unique in our access and our scale. We're the most comprehensive form of community colleges in the United States. The reason for that is because we do so much workforce development that others do not do. We're the, I believe this, and I don't think anybody can refute this, but we're the most accessible community college system in both cost and location. So we have the fourth lowest tution, which allows it to be accessible for working, our working class families, our low income families. But we're also within 30 miles of everyone within North Carolina. Unless at the top of Lake-Mount Mitchell or at Lake Mattamuskeet. I one time had the unfortunate economic develpment presentation at Mattamuskeet where I said we're within 30 miles and someone quickly pointed out, "We're not within 30 miles of anywhere" at that point. So there are just a couple of places in North Carolina where that's not true. Here's a very unique statistic, I think, is that over 40% of all the wage earners in North Carolina, this was Department of Commerce statistic, have attended a North Carolina community college within the past 10 years. I think that's a remarkable statistic, particularly given the in-migration that we know we have as-in our state, in North Carolina. Community colleges, based on the latest economic impact statements that we did across higher ed-we account for almost 50%, 46% of all of the alumni wage impact. And that's primarily because we have a jobs-focused form of education, but most of our students stay within North Carolina. So a good example is outside of the doctors, we educate and train most of the folks that will work at a hospital. We-over 50% of all the nurses in our state who receive some form of education, do that through community colleges. And 90% of them will stay in state. Over 50% will stay within 13 miles of the location in which they received that education. And one in nine adults in North Carolina participate in a community college program each year. Here's another thing that makes us unique in terms of workforce development. And this our mix of programs, and this makes us different from other community colleges. So 61% of our students-we have about 830,000 total students each year. About 61% are in non-degree programs. In most other states, you're going to find a very small percentage that are in non-degree programs. So most of our students are in job skills, training, or the literacy programs as well, which are non-degree. 52% of our students-about the 320,000 that are seeking a degree-52% are pursuing career technical, meaning their goal is to come to us and get to a job. Healthcare, business and IT, public service, law enforcement, those are our big areas as well as technical education. So that mix of programming for us is very different compared to other community colleges in other states. Real quickly, you can split it up into the degree-related and non-degree. So our degree programs are applied associate programs, diplomas and certificates. Students gaining degrees for the purpose of getting a job and going into the workplace. Our-a big focus with us recently with those programs is to build in industry certifications. What we call alternative credential, because the more they can gain an industry certification and a degree, that helps them out. Transfer programs to universies, also, though I will say have a very big-and we need to consider that in our workforce development mission. Just two weeks ago we signed new articulation agreements, UNC Board of Governors, the State Board of Community Colleges that will allow two things. One is in nursing, so you can now have a-essentially a 3+1 degree in nursing. Spend three years at a community college, get an additional one year at a university and get a bachelor's degree in nursing. That is brand new as of two weeks ago and we just signed a unique agreement to create

...a new Associate in Engineering program that will seamlessly transfer from any of our 58 colleges who offer the program to all 5 of the Engineering schools in our state. Non-degree, workforce continuing education, that's the big area. That's the area, and this is what makes us probably the most unique, is that you fund us to provide short-term skills training to folks who are either looking to get a job, to increase their jobs skills, or in the work place. They pay fees for that, but it is a subsidized fee so the company's, the individual's, do not have to...it's much more cost effective here in North Carolina than you will find in any other state. Basic skills and high school equivalencies so that is our, we used to call GED programs (we now have to call it Adult High School Equivalency because it's not just the GED anymore) our Adult High School Programs with public schools and also our adult basic education which is basic numeracy and literacy and our English as a Second Language. New thing with us with work force development is to not just wait for students to get through those programs, and hope that they get to a work force program, is to blend occupational skills training with those programs so that the students have a skill and a high school equivalency at the same time. NC Works Customized training, that is the unique program that was created in the 1950s, that is not unique to us anymore. All the states do this. Recently I was in Germany, well a few years ago I was in Germany with the Secretary of Commerce and the Governor, we were recruiting Seimens to Charlotte. I turned on the television there and saw the United Arab Emirates recruiting German companies using a television commercial in Germany targeting based on customized training. Everybody does it. It's part of the economic development - the toolkit if you will - it's a very big part of the toolkit, and so we work with about 300 companies a year in terms of customized training programs to support job growth or technology investment. And then, finally, we have specialized centers. Our small business centers, which are our largest at each of our colleges. Bio-network which we have the best bio-tech programs in the country. Textile Center and the Manufacturing Solutions Center in Hickory. Very unique and very powerful centers to support that industry, and then the Military Business Center which is based in Fayetteville. Here are the numbers, just so you can see the numbers, and this shows the scale so we have about 150,000 students in our degree based career programs. 129,000 in our transfer. Career and College Promise, that is our very unique - and thanks to you - make opportunities for us to offer college courses to high school students as Dr. Marshall was talking about, about 30,000 a year. 334,000 thousand individuals in our state in the short-term skills training, work force continuing education. We get 30,000 folks a year through customized job training. 105,000 in our basic skills programs. Bio-network 6,000, but a key part of our bio-network is propping up customized training to give us the best customized training and life sciences. And in small business centers we have about 50,000 folks who attend specialized workshops and about 6,000 who get job counseling to start new businesses in our state. If I may, I'd just like to end on a couple of innovations real quickly, just so you are aware that this is some of the things based on our recent tour around the state, but it also shows things that are happening across state wide. But one of those and it is Forsyth Tech. A very unique thing that they've been involved with, but we've developed throughout the state now, where you embed industry certification so if you are offering a manufacturing program, you are getting a college degree in manufacturing, but you are also getting certifications from the National Institute of Metalworking Skills, and the Manufacturing Skills Standards Coalition so you get those industry recognized credentials that are embedded. That is something that we've developed across our technical programs... [SPEAKER CHANGES] Dr. Ross. [SPEAKER CHANGES] Yes, Sir. Sorry. [SPEAKER CHANGES] It's a great presentation, but just to give a little time for questions We might want to... [SPEAKER CHANGES] Yes, Sir. [SPEAKER CHANGES] And I think Senator Tillman has one. [SPEAKER CHANGES] Scott, thank you for the good work that you're doing at the community college system. You've got probably the number one in the nation. You read any study on community colleges and we do it right. What I want to know is if you are at a 2 year technical, career technical graduate, and you go out into the world of work, maybe into the technology field or something related to that, and you have a four year degree program say at Carolina State, say Carolina, what would be the average starting pay for the 2 year graduate vs the 4 year? Do you have any clue? [SPEAKER CHANGES] Well I can tell you some national numbers, and what I do know this is that we on average, on average if you have a bachelor's degree you earn more than an associates, an associate's certificate. What you have to be careful for with is averages and...

When I went to UNC Chapel Hill, the, the number one major in terms of salaries the year I graduated was geography. There were four geography graduates, and one of them was Michael Jordan, so that, averages kind of get thrown out the window a little bit. What actually matters the most though is what you actually major in now. That's the biggest thing, and so when you look at two year degree areas, there are certain programs, and the Brookings institution has called it the hidden stem economy. They will say 50% of all the stem jobs in the United States are in programs that you can get at a sub bachelor level. If all the lights go off in this building, it's gonna take a community college trained technician to come and fix that problem. So using technology, using science to diagnose a problem. If you look at those technical, those, what are the technician programs and the healthcare programs that they refer to, they, on average, earn $53,000 a year, which is the same average for the average of bachelor degrees. Certain certificates, even shorter, about 23% of all certificate holders earn more than the average for bachelors, but it depends on what it is. If you get a welding degree, and I've seen this multiple times, if you get a welding degree and you're willing to travel around the world, you can make over $100,000. [SPEAKER CHANGES] One follow up, mister chairman. [SPEAKER CHANGES] Follow up, go ahead sir. [SPEAKER CHANGES] That sounds like it's comparable to a four year degree. Now, if you will take a four year degree and see what it costs you per year and divide that into the average starting salary and do that for community college, you'll see what a great deal that we have in a community college system. [SPEAKER CHANGES] And it also depends for us, so if you're, in certain areas, early childhood, cosmetology does not make nearly as much as the maintenance, technician areas or the, the healthcare areas. [SPEAKER CHANGES] Yes ma'am. Senator Smith. [SPEAKER CHANGES] Thank you. Dr. Ralls, I just want to commend the community college system for one thing in their help in economic development. When I chaired the North Carolina Southeast Commission for economic development, the community colleges in the region were an absolutely, extremely important part in recruiting business, and they were always helpful and it always made a huge difference in getting companies to come to North Carolina, and I'm sure that's true across the state. I do have a, a question. I had heard a rumor that because of the 2% cut, thinking about eliminating all the workforce, excuse me, all the small business centers around the state, and coming from representing two very rural, poor counties, the small business centers just are vitally important to us, and I would certainly hate to have to. [SPEAKER CHANGES] Yeah, if I may, I can explain that. When the governor's, and we've been through this every year. Every year, we have to identify, and this year it was 2% cuts as we go into the budget process. The challenges for us in community college is two things. One is, and I will, if this were a different meeting I'd be talking about a different thing, but I'd be talking about it over and over because it's fundamental to workforce development. While I do believe we have the greatest work, the greatest community college system in the country, we also pay our instructors, those people who train the future workforce, among the worst in the United States. We rank in the bottom third of states, below Mississippi, and so here's the problem is if we're to cut those formula areas, we're making that awful situation worse. In our system, we have very few, what are called categorical programs, non, those programs that are outside of that formula that supports those instructors. You can see that on that list right there. That's what's left in this system. Those comprise, you take out, those comprise, that's about $20 million right there. And so if you're gonna get to 2% for us, you're gonna eliminate every one of those centers or make our faculty's salaries, which are the worst, even worse than they are. So that's the, the predicament we're in, so when we had to write the letter and come up with 2% we followed through with that, but our point is we don't wanna step back anymore on equipment or salaries, and we've got nothing left in our system beyond what you see on that page to be able to address that. [SPEAKER CHANGES] We have time for one more question. Senator McInnis. [SPEAKER CHANGES] Thank you very much Mister chairman, and Doc Ralls I thank you, and I wanna thank you for working with me to get the early college high school kids treated as transfers in the UNC system. I've heard a vicious rumor that there are several or two or three or four of the larger community college systems that are working to get a four year degree of their own internally. And I'd love for you to comment, and also wanna let you know that I'm vehemently against that. We've got some great four year colleges in this state. We don't need to reinvent any wheels. We need to do what the mission statement of the community college, which you have expanded on today, and I'd love to hear your comment on that. [SPEAKER CHANGES] Well, what, in I think is now 23 states across the country where

community colleges have been approved to offer four year degrees. And so that kind of momentum state to state has also prompted some and this is a place that we truly to be quite honest with you there's differences of opinions within our own systems. So you have some that are in favor of what other states do and some who are very concerned about that I'm someone who I say if this is going to be looked at and talked at we need to be cautious for a couple of reasons one is that we don't need to jump into an issue and one of the challenges is you have many students right now that are under employed. So I don't think we need to create, you've got lawyers now who are being employed as paralegals you've got four year students who are being employed as paralegals because there's not any law jobs. I think we've got to be careful not to jump and crate a four year para legal program. That's just making the situation worse. I also we have to, one of the things that's unique about our state is we have a unique collaborative relationship with in higher ed with UNC system and you fund a lot of higher ed. I mean we've got a lot of community colleges a lot and so I think the first efforts need to be made to make sure that is as tight as possible trough our articulation agreement. So I think we need to, having the discussions are valid but we need to be very, very deliberate in how those occur. [SPEAKER CHANGES] Senator Wells who says he has a very short question for a short answer then I have to pound the gavel okay? [SPEAKER CHANGES] Thank you Mr. Chairman and it's really more of a comment. Dr. Oz thank you for being here as I recall about a month ago you released a study in conjunction with the University system given effectively a cost benefit analysis of the dollars that were spend. When we're talking about expending state tax dollars on workforce expansion, next time you do one of those studies I would be interested in seeing a comparison that includes the cash incentives program that we do in the state. [SPEAKER CHANGES] It's about economic development programs? [SPEAKER CHANGES] The JDIG JMAC those kinds of programs. To see on a dollar return basis how do our workforce efforts stack up? [SPEAKER CHANGES] Thank you very much everyone for being here there were great comments and great questions at least most of them were Senator Tillman is already gone so I can comment like that. But thank you for being here and we're going to keep on trying to find the best solution. Thank you very much, we're done.