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Partnering for Impact
Cities join with business, universities to fund job training.

The Comptroller’s office empowers local governments and communities with the information and tools they need to encourage, create and support economic development and jobs for Texans. Look for our special “Partnering for Impact” section each month, featuring timely, important information, news and tips for local governments and economic development corporations.

Help is available for economic development officials looking at offering job-training programs or incentives to businesses for job training – programs often vital to attract high-wage jobs.

The 76th Texas Legislature amended the Development Corporation Act authorizing Section 4A and Section 4B Economic Development Corporations (EDCs) to partner with either businesses or institutions of higher education to fund two types of job-training projects.

Job-Training Options

EDCs may partner with a business to fund job-training classes offered by an employer. The business must agree to create new jobs that pay wages that are at least equal to the prevailing wage for the applicable occupation in the local labor market area; or it must agree to increase its payroll for existing jobs to wages that are at least equal to the prevailing wage for the applicable occupation in the local labor market area.

A business entering into a job-training agreement is relieved of the cost of training workers, while cities gain a more highly skilled work force.

Help From Higher Education

EDCs may also partner with institutions of higher education to fund land, buildings, equipment, targeted infrastructure and other expenditures for primary job-training facilities. Primary jobs produce products or services for export from the community or infuse new dollars into the local economy and fit any one of the specific North American Industry Classification System (NAICS) job categories described in the statute.

For more information, visit the Comptroller’s Local Government Assistance Web site or call (800) 531-5441, ext. 3-4679. TR