DATE: September 5, 2024
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, an ARPA-funded initiative within the Together for Hayward COVID-19 Economic Recovery Plan, aims to provide financial assistance to residents. It enables them to attend courses at Chabot College, California State University East Bay (CSUEB), and the Eden Area Regional Occupational Program (ROP), enhancing their employment competitiveness. This report provides an update on the program's status and outlines next steps.
BACKGROUND
Before the COVID-19 pandemic, San Francisco Bay Area businesses faced challenges in finding qualified workers due to a tight job market. The situation was exacerbated by high housing costs, impacting employee retention and recruitment, particularly for Hayward employers. The pandemic further complicated matters, leading to business closures, furloughs, and a shift in employment preferences. As the economy recovers, businesses encounter difficulties filling both previous and new positions, intensifying competition for skilled workers. Despite ongoing layoffs in the tech industry, Hayward businesses indicate that a labor shortage persists for skilled technical and advanced manufacturing positions.
Additionally, the rising cost of living in the Bay Area, particularly in Hayward, has put significant pressure on residents to seek higher-paying jobs to meet their financial obligations. This economic reality led to an increased demand for upskilling and educational opportunities, as residents pursue higher education and specialized training to secure more lucrative positions in a competitive job market.
DISCUSSION
Tuition Assistance Program
The Tuition Assistance Program is tailored to aid Hayward residents affected by COVID-19 or those seeking skill improvement for enhanced employability. Grantees must attend courses at designated institutions, including Chabot Community College, CSUEB, or Eden ROP. The program designated these institutions to manage recruitment, application review, and fund disbursement.
The microgrants range from $500 to $2,000, considering factors such as the program of study, cost, duration, and other aid received. To date, $206,519 of the $400,000 program budget has been dispersed to 312 grantees. The grants prioritize high-, medium-, and low-priority programs, addressing industries with labor shortages and providing flexibility based on individual needs. The distribution of the grants across these categories is summarized in Exhibit 1 below.
Programs prioritized as high include fields directly related to biotechnology, advanced manufacturing, and industrial sectors, which are critical for the economic health of the City. These industries create high-skilled, well-paid positions, are significant generators of tax revenue, and are rapidly expanding within Hayward. Medium priority are fields that are impacted but not as critical to the local economy’s immediate needs, such as healthcare support roles, professional services, and business administration. These areas still require skilled workers and offer good career prospects but do not face the same level of urgency in workforce shortages. Low-priority programs include those in fields with less direct demand in Hayward’s current labor market, such as general arts or hospitality. However, the program remains flexible, recognizing that individual career paths and evolving industry trends may shift these priorities over time.
Exhibit 1: Tuition Assistance Grant Recipient Award Priority Level Priority Level
Number of Grantees
High
89 Medium
124
Low
41 Other
12 The program has had a diverse impact, reaching various ethnicities and demographic groups, including Hispanic/Latinx/Chicanx, multiracial, Black/African American, and more. Additional demographic data highlights characteristics such as single-parent status, low-income status, disability, and foster youth representation among grantees. The Exhibit 2 below summarizes the demographics of grant recipients. It is important to note that this data is not exhaustive and is limited by self-reporting. As a result, the figures presented may not fully capture the breadth of the program's impact across all demographic groups.
Exhibit 2: Tuition Assistance Grant Recipient Demographics Race or Ethnicity
Number of Students
Percentage of Grantees
Hispanic/Latinx/Chicanx
68 21.8%
Not Hispanic/Latinx/Chicanx
166
53.2%
N/A
32 10.3%
Multiracial
103
33.0%
Other
67 21.5%
Asian/White
28 9.0%
Native American/Am. Indian/Alaskan Native & Black African American 5 1.6%
Native American/American Indian/Alaskan Native/White
2 0.6%
Black/African American/White
1 0.3%
Black/African American
67 21.5%
Native American/American Indian/Alaskan Native
2 0.6%
White
33 10.6%
Asian
27 9%
Korean
1 0%
Asian Indian
7 2%
Filipino
8 3%
Vietnamese
6 2%
Chinese
5 2%
Middle Eastern/Arab
7 2%
Additional Demographic Data
*Only available from Chabot Spring 2023
Single-Parent
51 Low-Income
109
Student with Disability
13 Foster Youth
12 NEXT STEPS
The Tuition Assistance Program is ongoing, with Chabot College and CSUEB accepting applications for the grant until all funds are exhausted. The grant funding is projected to be fully awarded to Hayward residents by the end of the 2024 calendar year.
To date, $350,000 has been successfully disbursed to Chabot College, CSUEB, and Eden ROP for the grant program. The remaining $50,000 is slated for disbursement, contingent upon the fulfillment of contract deliverables. These deliverables include the provision of data related to grant recipients, which will facilitate long-term tracking and enable an impact analysis of the grant funds. Additionally, the program involves diligent tracking of grantees' progress in completing their educational programs and securing meaningful employment.
There is also a requirement to host a job fair, which will serve as a critical bridge between graduates of the program and local employers. This job fair is designed not only to showcase the talent pool developed through the Tuition Assistance Program but also to directly address labor shortages in key industries by connecting skilled workers with immediate job opportunities. Planning is underway to ensure the event is well-publicized and attended by both employers and program participants, maximizing the program's impact on the local economy.
FISCAL IMPACT
Funded through the City’s ARPA funds, the Tuition Assistance Program is allocated $400,000. This report reflects the commitment of the City of Hayward to address the economic challenges brought about by the pandemic and contribute to the long-term prosperity of its residents and business community.
Prepared by: Daniel Mao, Economic Development Specialist Recommended by: Paul Nguyen, Chief Economic Development Officer Approved by:
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Dustin Claussen, Interim City Manager