Financial Institutions' Engagement in Workforce Development

Transcription

1 ENTER TITLE Enter Subtitle Financial Institutins' Engagement in Wrkfrce Develpment Strengthening partnerships between banks and wrkfrce develpment stakehlders t access Cmmunity Reinvestment Act qualified lans, investments, and services Natinal Assciatin f Wrkfrce Bards March 25, 2018

2 Financial Institutins' Engagement in Wrkfrce Develpment Presenters Stuart Andreasn Directr, Center fr Wrkfrce and Ecnmic Opprtunity Federal Reserve Bank f Atlanta Jasn Keller Ecnmic Develpment Directr Federal Reserve Bank f Chicag Steven Shepelwich Senir Cmmunity Develpment Advisr Federal Reserve Bank f Kansas City Keith Lawing President & CEO Wrkfrce Alliance f Suth Central Kansas Inc. NAWB Presentatin: 2/25

3 Financial Institutins' Engagement in Wrkfrce Develpment Agenda Panel Intrductins Understanding the Federal Reserve s Cmmunity Develpment Functin Investing in America s Wrkfrce Initiative The Research Prmising Strategies Opprtunities fr Investment Linking Wrkfrce Develpment t The Cmmunity Reinvestment Act (CRA) A Framewrk fr Cmplying with the CRA What Wrkfrce Bards Need t Knw abut the CRA Wrds frm a Practitiner The Wrkfrce Alliance f Suth Central Kansas, Inc. Cnclusin/Questins NAWB Presentatin: 3/25

4 Standard Disclaimer The views expressed in this presentatin are thse f the authrs and d nt necessarily represent thse f the Federal Reserve Banks f Atlanta, Chicag, Kansas City r the Federal Reserve System This presentatin and the infrmatin presented herein is intended fr infrmatinal use and is nt legal advice NAWB Presentatin: 4/25

5 Understanding the Federal Reserve s Cmmunity Develpment Functin Cmmunity Develpment Offices reside all acrss the United States: 1 st District: Bstn 2 nd District: New Yrk 3 rd District: Philadelphia 4 th District: Cleveland 5 th District: Richmnd 6 th District: Atlanta 7 th District: Chicag 8 th District: St. Luis 9 th District: Minneaplis 10 th District: Kansas City 11 th District: Dallas 12 th District: San Francisc Bard f Gvernrs:---- Washingtn D.C. NAWB Presentatin: 5/25

6 Understanding the Federal Reserve s Cmmunity Develpment Functin Missin: T supprt the Federal Reserve System s ecnmic grwth bjectives by prmting cmmunity and ecnmic develpment and fair and impartial access t credit Areas f fcus include: Affrdable husing Cmmunity develpment finance Cmmunity Reinvestment Act (CRA) Fair lending Healthy cmmunities Persnal financial educatin Small business/micrenterprise develpment Wrkfrce develpment Others as needed (as defined by lcal demgraphics and ecnmic cnditins) NAWB Presentatin: 6/25

7 Investing in America s Wrkfrce Initiative Federal Reserve System cllabratin began in 2016 Jhn J. Heldrich Center fr Wrkfrce Develpment Ray Marshall Center fr the Study f Human Resurces W.E. Upjhn Institute fr Emplyment Research Explre reginal aspects f imprving wrkfrce utcmes and investments The Research (2017) Natinal Cnference in Austin, TX (Octber 2017) Bk launch (Mid-year 2018) Targeted utreach t bankers, examiners, practitiners, gvernment fficials, academics, etc. NAWB Presentatin: 7/25

8 The Research Federal Reserve System Cllabratin began in Listening Sessins in States 1,000 Wrkfrce Develpment Leaders Current challenges Nn-skill related barriers Addictin Incarceratin Childcare csts Transprtatin Husing Technlgical advancement and autmatin s impact n emplyer demands Quality f available jbs impeding ecnmic mbility NAWB Presentatin: 8/25

9 Prmising Strategies Better alignment f wrkfrce and ecnmic develpment effrts using sectr strategies Intermediaries t brker relatinships between emplyers and training prviders Apprenticeships and ther wrk-based training mdels Increased emplyer training fr incumbent wrkers Increased crdinatin amng service prviders and with funders Changes in emplyer behavir that imprve jb access and quality while cntributing t business perfrmance gals NAWB Presentatin: 9/25

10 Opprtunities fr Investment Invest in cre prgrams and services that directly cnnect wrkers t jbs Direct training prgrams Career and technical educatin Emplyer partnerships with lcal cmmunity clleges Invest in wrkfrce intermediaries that cnnect wrkers t jbs Invest in early childhd educatin Invest in cmmunity infrastructure including transprtatin systems and affrdable husing Invest in effrts t increase jb access and quality Entrepreneurship Small business in LMI cmmunities Scial enterprises NAWB Presentatin: 10/25

11 Linking Wrkfrce Develpment t the Cmmunity Reinvestment Act Federal law passed in 1977 Encurages banks t meet the credit needs f the cmmunities they serve Including lw- and mderate-incme neighbrhds Cnsistent with safe and sund practices NAWB Presentatin: 11/25

12 Linking Wrkfrce Develpment t the Cmmunity Reinvestment Act CRA fcus n cmmunity develpment (regulatry definitin) Fur categries: Affrdable husing fr lw- r mderate-incme (LMI) individuals r families Activities that revitalize r stabilize LMI gegraphies; distressed r underserved nnmetrplitan middle-incme gegraphies; r designated disaster areas (als includes activities that help attract new, r retain existing businesses) Activities that prmte ecnmic develpment by financing small businesses and small farms Cmmunity services that target LMI individuals NAWB Presentatin: 12/25

13 Linking Wrkfrce Develpment t the Cmmunity Reinvestment Act Definitin f Ecnmic Develpment Size Test: Activity must finance entities that meet the size eligibility requirements f the SBA OR have grss annual revenues f $1 millin r less Purpse Test: Activity that prmtes permanent jb creatin, retentin, and r imprvement fr LMI peple r areas r redevelpment by federal, state, lcal, r tribal gvernments NAWB Presentatin: 13/25

14 Linking Wrkfrce Develpment t the Cmmunity Reinvestment Act CRA questins and answers (Q&As) Guidance n the interpretatin and applicatin f the regulatins (July 2016): Q&As.12(g)-1: Cncerns the definitin f cmmunity develpment. The agencies revised it t clarify that qualified cmmunity develpment activities include wrkfrce develpment r jb training prgrams fr LMI r unemplyed persns Q&As.12(t)-4: Prvides examples f qualified investments. The agencies revised it t expand the examples t include wrkfrce develpment r jb training prgrams fr LMI r unemplyed persns Surce: NAWB Presentatin: 14/25

15 A Framewrk fr Engaging Banks in Wrkfrce Develpment Engaging Wrkfrce Develpment: A Framewrk fr Meeting CRA Obligatins Federal Reserve Banks f Kansas City and Dallas released December WIOA and new CRA guidance pens drs fr bank engagement in wrkfrce sectr Bth WIOA and new CRA guidance value: Lcal cntrl Fcus n LMI and disadvantaged ppulatins Partnerships and relatinship building Data and perfrmance metrics Innvatin NAWB Presentatin: 15/25

16 Ways Banks Can Engage in Wrkfrce Develpment Hw can banks, mst f which will be intermediate small banks* and large banks**, engage in wrkfrce develpment? Lending t cmmunity develpment financial institutins (CDFIs), cmmunity develpment crpratins (CDCs), r cmmunity-based rganizatins (CBOs) Prviding financial supprt thrugh an investment, equity equivalent, r grant Offering learn-and-earn pprtunities Serving n a bard, vlunteering, prviding pr bn services Prviding financial services t prgram participants What can banks d because they are banks? */**Assets greater than $313 millin and $1.252 billin as f 1/1/2018 NAWB Presentatin: 16/25

17 Benefits t Banks fr Engaging in Wrkfrce Develpment What are the benefits t banks fr partnering with wrkfrce develpment bards? Imprve talent pipeline fr the bank and their business custmers Leverage and expand existing cmmunity develpment activities Prvide value t existing business custmers Develp access t new reginal cntacts and market data Exhibit respnsiveness and innvatin Hw can yu help a bank meet its business gals? What value d yu ffer? NAWB Presentatin: 17/25

18 What Wrkfrce Bards Need t Knw abut the Cmmunity Reinvestment Act Banks dn t have a pt f CRA mney Banks are nt bligated t fund any specific prduct, prgram, r service Articulate hw yur missin qualifies fr credit under the CRA Be clear n what is needed, hw it will be used, and the benefit/impact t the bank, yur rganizatin and the beneficiaries Dcumentatin, specifically n LMI persns r gegraphies served, is key Align the ask with the bank s shrt- and lng-term business plan Fcus n strategic partnerships nt transactins. NAWB Presentatin: 18/25

19 Steps fr Engaging Banks in Wrkfrce Develpment Start the cnversatin D yu have bankers n yur bard? Wh d yu bank with? What banks are active in yur cmmunity? D yur hmewrk - target banks f interest CRA Exams, Schedules, Data Public file at each branch Expand yur cntacts Bank CRA Officers, lenders, management Bank regulatrs Federal Reserve, FDIC, OCC Be clear n the value yu ffer: innvatin, respnsiveness, access, data, impact NAWB Presentatin: 19/25

20 Wrkfrce Alliance f Suth Central Kansas The Wrkfrce Alliance f Suth Central Kansas (WA) is a Lcal Wrkfrce Develpment Bard (LWDB) that manages federal jb training funds and versees the wrkfrce develpment system fr a six cunty regin in Suth Central Kansas. Strategic Initiatives Registered Apprenticeship Sectr Strategies Yuth Emplyment Prject Annual Budget $7.7 millin ($3.9 millin annual WIOA allcatin) NAWB Presentatin: 20/25

21 Hw LWDBs Can Leverage CRA Share Engaging Wrkfrce Develpment: A Framewrk fr Meeting CRA Obligatins reprt with LWDBs as a pssible strategic initiative r planning tl Develp strategy t cnvene banks t raise awareness f partnership pprtunities Research hw lcal financial institutins are using CRA Map ut prfessinal r persnal cnnectins frm LWDB members t banking industry Identify specific activities r emplyment strategies t meet CRA bjectives and gals f financial institutins Use the tls f the LWDB: Rle as cnvener, netwrks f the bard members and access t labr market infrmatin NAWB Presentatin: 21/25

22 Hw LWDBs Can Leverage CRA Examples f strategies nw underway WA in partnership with the Federal Reserve Bank f Kansas City hsted meeting f area bankers t present Engaging Wrkfrce Develpment: A Framewrk fr Meeting CRA Obligatins reprt WA part f cmmunity Yuth Emplyment Prject champined by Mayr Jeff Lngwell Presented at Investment Cnnectin sessin hsted by the Federal Reserve Bank f Kansas City Facilitating discussin with lcal bank and technical cllege n revlving schlarship fund fr shrt term training prgrams LWDBs can serve as brkers t cnnect banks t wrkfrce develpment pririties in the cmmunity. NAWB Presentatin: 22/25

23 Cnclusin The wrkfrce develpment landscape is evlving Opprtunities fr banks t engage in wrkfrce develpment effrts in bth urban and rural markets are expanding Bank, civic, as well as agency leaders may need caching n hw t engage with lcal wrkfrce develpment experts/practitiners Federal Reserve Cmmunity Develpment Offices are resurces NAWB Presentatin: 23/25

24 Cnclusin Tls exist t help build CRA-related capacity: Engaging Wrkfrce Develpment: A Framewrk fr Meeting CRA Obligatins Banks' Cmmunity Reinvestment Act (CRA) Opprtunities Center fr Wrkfrce and Ecnmic Opprtunity Other Tls: Federal Financial Institutin Examinatin Cuncil (ffiec) - includes examinatin schedules, annual CRA assets threshld adjustments, and the list f Distressed r Underserved Nnmetrplitan Middle- Incme Gegraphies Federal Reserve cmmunity develpment resurces prmting peple, place, plicy and practice, and small business fedcmmunities (website) chicagfed resurce (website) dallasfed resurce (website) richmndfed resurce (website) kansascityfed resurce (website) NAWB Presentatin: 24/25

25 Financial Institutins' Engagement in Wrkfrce Develpment Questins/Cntact Infrmatin Stuart Andreasn Jasn Keller Steven Shepelwich Keith Lawing NAWB Presentatin: 25/25