Job-training program helping to create 87,000 jobs in state

The AssociatedPress

JEFFERSON CITY, Mo. -- A job training program that has cost the state $72 million is expected to yield 87,000 new jobs and about $4 billion in increased revenue by 2012, according to a state audit released Wednesday.

The New Jobs Training Program, begun in 1992, allows community colleges to provide training services to businesses that create new jobs. The schools issue bonds to fund the necessary training, and pay off the bonds from income taxes withheld from employees in the newly created jobs.

But state Auditor Claire McCaskill's report said the program can be improved.

Expenses could be cut by eliminating debt and interest payments, the audit said. About $16 million of the $72 million spent on the program has gone for interest on the bonds, which could have been avoided if the legislature had established a revolving fund when the program was created.

Community colleges can recoup 15 percent of the administrative costs associated with the program. The audit said the schools collect an average of $103,000 per project but actually use the money for expenses other than administrative costs -- a finding with which the Missouri Community Colleges Association disagreed.

The audit recommended that the community colleges do a better job of ensuring that project agreements are fulfilled.

For example, one school was faulted for a project in which a company committed to creating 166 new jobs by December 2001 and maintaining them through 2004, but only created 117 jobs by December 2001.

Of the 87,000 jobs projected to be created, about 26,000 are a direct result of the program and the rest indirectly created through economic growth, the audit suggested. If funding for the program is removed, employment levels would decline steadily, the audit's economic models show.

Over the life of the program, bonds have been issued on 81 projects. The outstanding bond payments total $31.2 million.

McCaskill's report suggested the program reduce its interest costs and debt while implementing tougher oversight mechanisms. In a written response to the audit, the community colleges association asked why it was necessary to tinker with a successful program.

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On the Net:

State Auditor Claire McCaskill: http://www.auditor.state.mo.us