Money to retrain workers a priority for Legislature

By Rebecca Cook

Associated Press

SEATTLE — John Mount leans back and looks sympathetically at a frustrated classmate’s computer screen.

"Ah, the blue screen of death — enjoy," he says, over the typing and clicking of his computer networking class at North Seattle Community College.

Mount, 41, experienced the career equivalent of Windows’ blue screen of death last year, when he was laid off from his job at a catering company. That setback made Mount eligible for the state’s unemployment benefits and worker retraining program.

Those programs are getting attention from the Legislature and the governor this year, as the state struggles with the country’s second-highest unemployment rate, 7.1 percent. Experts say Washington’s recession recovery depends on whether laid-off workers like Mount and his classmates learn skills that will be in demand when the economy picks up.

The governor has proposed spending an additional $9 million on worker retraining, less than was requested but still a rare bonus amid the cuts needed to fill a billion-dollar state budget shortfall. Legislators will consider giving more money to laid-off workers with obsolete skills so they can get retrained — an $80 million fund intended to last through June is expected to run out next month.

"We have a serious recession in this state," said Rep. Steve Conway, D-Tacoma, chairman of the House Labor and Commerce Committee. "We need to be responsive."

The human face of the changing economy was on display at the community college’s computer networking class: former factory workers, business managers, homemakers, dot-com employees and commercial fishermen, all trying to recession-proof their careers.

Mount has nearly finished training as a network administrator and works part-time for a Bothell technology company. He believes he’ll be able to find full-time work when he graduates.

"Even with an economic downturn, everyone still has the big networks that need administration," he said.

His optimism is shared by classmate and former factory worker G. Ray Glenn, 45 — the G. stands for "just plain Great" — who said of his future career: "No matter what kind of car you have, you always have to have a mechanic. A computer is just a fancier type of car."

State economists say their faith is justified. Although the state’s economy is not expected to recover until 2003, some industries and job opportunities are growing now and will keep expanding.

Network administrators, computer programmers, registered nurses, lab technicians — health and skilled high-tech are the jobs of the future, according to the Employment Security Department.

After a decade of job growth, last year employment in the state fell by one percent. Hardest hit were manufacturing jobs, which decreased by 6.8 percent. That’s where worker retraining comes in. If those laid-off workers from declining industries can move into growing fields, then Washington will be back in business when the recession ends.

"During recessions you have restructuring," said Rich Nafziger, WorkForce Education director for the State Board for Community and Technical Colleges. "This is the time to retool our labor force."

The problem is, community and technical college retraining programs were 30 percent over capacity even before the Sept. 11 attacks.

"We don’t have room at the inn," Nafziger said.

The program serves about 10,000 students; there’s demand for about 6,000 more slots, Nafziger said. The board wants $21 million to add room for 4,000 new students; the governor’s proposed budget gives them $9 million to pay for 2,400 additional spaces. The Legislature is working on its own budget proposal now.

Another big issue this legislative session is extending training benefits — money that pays workers’ bills while they attend school. Only "dislocated" workers, or people with outdated skills, are eligible. Regular unemployment benefits last 30 weeks; training benefits last 44 weeks for aerospace, timber and fin-fish workers and 22 weeks for all others. The Legislature authorized $80 million for training benefits from March, 2000 through June 2002. About 7,000 workers have collected training benefits, and the money is expected to run out in mid-February.

Rep. Conway wants to refuel the program and give it money to operate through December. Experts at the Employment Security Department are trying to figure out how many millions of dollars that would cost.

"It’s a bunch of money," said research division manager Bob Wagner. "It’s not an easy forecast."

The money would come from the $1.75 billion Unemployment Insurance Trust Fund, which is paid for by business taxes. Businesses in the state — including Boeing — complain about the tax system and say the state doesn’t distribute benefits equitably. They note Washington has one of the richest benefit payouts in the country. But with everything else the Legislature has to do this year, big reforms in the Unemployment Insurance fund are unlikely.

Several federal developments could affect state benefits. Boeing Machinists are waiting to hear whether they will get extended training benefits under the federal Trade Act. The current benefits expire on Feb. 25. The fate of President Bush’s proposed economic stimulus package will also affect Washington workers.

Whatever happens, it’s clear more Washington workers will follow people like Mount and Glenn and start new careers in midlife.

"I’ve learned a ton of new information," Glenn said. "If you don’t grow with the times, you’re going to fall behind."

For more information about unemployment benefits and worker retraining, check out the Employment Security Department at www.wa.gov/esd