Lawmakers skeptical of retraining plan State officials seek funds, extension.

January 31, 1992|By David Conn | David Conn,Annapolis Bureau

ANNAPOLIS -- State officials pleaded yesterday for more money and a solid future for a program that helps companies improve the skills of workers.

What they got was a tough debate over whether the government should be helping private companies earn a profit.

The program, called the Partnership for Workforce Quality, helps companies decide which types of retraining programs they need and then provides matching grants to help pay for the retraining.

In its two-year existence, the program has provided more than 750 companies with $1.87 million in grants to help retrain more than 20,000 workers.

The House bill debated yesterday before the House Economic Matters Committee was requested by the state's Department of Economic and Employment Development.

It would provide an additional $900,000 for the program and abolish a requirement that the legislature reauthorize it each year.

"We're in a race," said DEED Secretary Mark L. Wasserman. "The typical Japanese company will spend 8 to 10 percent of its payroll on worker upgrading, and that compares to 1 percent for U.S. companies."

But with the state facing a $1 billion deficit, some lawmakers questioned whether the program is a proper use of public money.

"The government is doing what a business consultant would do in the private sector," said Del. Robert H. Kittleman, R-Montgomery.

Del. Gary R. Alexander, D-Prince George's, questioned whether some of the recipients really deserved the state funds.

Grant recipients have included a five-store Jerry's Sub and Pizza franchise in Frederick County; Bausch and Lomb, which makes vision equipment; Lever Brothers Co., a huge manufacturer of personal products; and T. Rowe Price Associates Inc., a Baltimore-based investment firm.

Jerome Doubroff, chairman of the advisory board for Partnership for Workforce Quality, argued that the program has spurred an additional $9.4 million in investments from the companies.

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