Fund is Idaho’s imperfect business tool
By Zach Kyle, The Idaho Statesman | |
McClatchy-Tribune Information Services |
It was a good day for Otter, as well as the city of
One of the biggest perks was a
Business recruiters say the fund is one of
At least one lawmaker says it's time for
"There are successes with the fund and there are failures," said Senator
SUCCESS STORIES
Money for the fund comes from the unemployment insurance taxes businesses pay to the state. Three percent of that money is set aside for the training fund. Companies receiving grants are reimbursed from the fund after paying to train their workers.
The fund has distributed nearly
While the recent headlines have come from the
"It's by far the strongest tool we have in the state to help us bring new business and to grow business across the Valley," Krause said. "It's been a strategic tool with almost every company we've recruited in the last two years."
'VERY BENEFICIAL'
Micro 100
Newberry said the current grant has helped Micro 100 add 20 entry-level grinders, which require three to 12 months of training.
"It's very expensive to train people," Newberry said. "This program helps us to develop new jobs and hire new people. It's been very beneficial."
"The program been extremely helpful for us," Wright said. "We've experienced growth. We've hired people who needed jobs and trained them in our industry."
Other past grants include
Businesses don't have to use the full grants.
STORIES OF FAILURE
Transform Solar received nearly
The
Such results are unacceptable, said
Hoffman said he'd like to see businesses keep the money they're assessed for the fund and pay for their own training.
"It's a terrible program," Hoffman said. "It wastes more money than it does any good. Obviously, it's a cost borne by
Krause said the training money paid to soon-to-be bankrupt companies wasn't wasted.
"If the worst thing that happened is a person had a job for a couple years, then that business failed, you still have someone who's been enriched in talents and skills," Krause said.
Hoffman said he'd like to see the law providing for the fund to be repealed during the legislative session in January.
"In my opinion, it would be a mistake," Henderson said. "The ability to train workers to fit the needs of an expanding industry or one that's relocating to
Bayer, who sits on the
"This is a tax policy issue," Bayer said. "It needs to be more of an opportunity as opposed to a mandate. Then the decision really lies more directly in the business sector."
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