DATE: April 3, 2023
TO: Council Economic Development Committee
FROM: Chief Economic Development Officer
SUBJECT: Hayward Upward Economic Recovery Plan Update: Tuition Assistance Program
RECOMMENDATION
That the Council Economic Development Committee receives updates on the progress of the Hayward Upward Economic Recovery Plan: Tuition Assistance Program.
SUMMARY
The Tuition Assistance program is an ARPA-funded program within the City of Hayward’s COVID-19 economic recovery plan, which was reviewed by the Council Economic Development Committee in June 2021. This program seeks to provide financial assistance for Hayward residents that attend courses at Chabot College, California State University East Bay, and other accredited technical schools to obtain certificates and professional training that enhances their employment competitiveness in the marketplace. The program also creates a workforce pipeline to support businesses recovering from the pandemic’s negative impacts. The following report provides an update on the current program, next steps, and a proposed adjustment and expansion to meet the needs of residents and the business community.
BACKGROUND
Prior to the COVID-19 pandemic, the San Francisco Bay Area had one of the tightest job markets in the country. Businesses across the region struggled to find enough qualified, trained workers to fill open positions. Many were forced to recruit from outside the immediate region. However, the high housing prices often forced those workers to endure long commutes to reach their place of employment. Hayward employers experienced even greater difficulties in employee retention and recruitment due to the COVID-19 pandemic. With many business sectors forced to close due to State and County health mandates, employees were often placed on a furlough or released from their employment after the initial shelter-in-place order. Many employees took this opportunity to seek employment closer to their homes or find careers in industries that were open or allowing employees to work from home. As the economy entered the recovery period, businesses are now having to fill both previously filled positions and new positions. The competition for the skilled workforce continues to be a hurdle businesses face. While the Bay Area has seen some sizable layoffs in employment in the tech industry, there is still a lack of workforce available for many of the skilled technical or advanced manufacturing positions.
DISCUSSION
Tuition Assistance Program
The Tuition Assistance Program is designed to provide financial assistance to Hayward residents that have been affected by COVID-19 or those that wish to improve their skills to better their prospects in the job market. The program’s objective is to lower the barrier to educational opportunities and help individuals pursue higher skilled jobs that offer better pay and/or prepare the individual to pursue their entrepreneurial aspirations. Grantees must register and attend courses offered through Chabot Community College, Cal State East Bay or another accredited program.
Over the last three months, Economic Development staff has engaged potential partners and fiscal agents to develop a framework for this program. Staff is currently working on formalizing partnerships with Chabot College, California State University East Bay, and Eden Area Regional Occupational Program Center (Eden Area ROP). These partners will administer the microgrants, which will be between $500 to $2,000 depending on several factors such as: program of study, program cost, length of the program, and other aid the resident has received. Each grant recipient may only accept funding once per fiscal year. Based on feedback from our potential partners, staff set the size range of the grant to be flexible. The amount may fluctuate on a case-by-case basis due to its potential negative impact on a grantee’s other financial aid, scholarship, or social benefits program eligibility.
FISCAL IMPACT
The Hayward Tuition Assistance Program is funded from the Economic Recovery allocation the City designated as part of the American Rescue Plan Act program dollars. The program initially was allocated $200,000. This amount will cover the cost of approximately 175 grants for Hayward residents’ educational expenses and one of the Workforce Development fairs. Staff is exploring the reallocation of funds from two related economic recovery plan programs - Earn and Learn and the Get Digital Programs - which are launching at a larger scale by other partner agencies in the county. The reallocation of up to $200,000 to the Tuition Assistance Program could fund three proposed job fairs and an additional 175 grants. Final approval of the reallocation of funds will be reviewed by the City Council during the budget adoption process.
NEXT STEPS
Implementation of the Tuition Assistance Program
Staff is currently negotiating agreements with Chabot College, California State University East Bay, and Eden Area ROP. Chabot College and California State University East Bay will act as the fiscal agents of the program, with each receiving $75,000 for grant issuance. They will be responsible for accepting applications, approving them, and disbursing funds to grant recipients. Eden ROP, a provider of vocational training, will continue to work through their existing partnership with CSUEB to drive potential grant applicants into the Tuition Assistance programs. Upon execution of the agreements, staff anticipates Chabot College will issue the first tuition assistance grants in the Spring session with the CSUEB launching their grant program this Fall.
Proposed Program Adjustment: Connecting Grantees to Employers The Tuition Assistance Program is a workforce development program designed to upskill Hayward residents through education and training programs and make them more competitive for higher paying job opportunities. The City’s economic recovery plan also seeks to build a local workforce pipeline by connecting students from our local educational and training institutions to the Hayward employers. To connect the dots between upskilled jobseekers and Hayward employers, the Tuition Assistance program will now also feature a Workforce Development Fair hosted by the education partners and the City. The event will invite Hayward employers to host tables so that they may recruit from the pool of program recipients. There are three proposed job fairs contemplated for August 2023, May 2024, and August 2024. Specific dates and locations will be determined.
Prepared by: Daniel Mao, Economic Development Specialist Recommended by: Paul Nguyen, Chief Economic Development Officer Approved by:
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Kelly McAdoo, City Manager