Title
Bloomberg Workforce Update
Description
This report provides an update on workforce development initiatives that the Community and Economic Development Department partners on with Bloomberg Associates.
THIS ITEM IS FOR INFORMATION AND DISCUSSION.
Report
Summary
In 2021, Phoenix’s Mobile Career Unit (MCU) project was selected by Bloomberg Philanthropies’ Global Mayors Challenge, initiating a multi-year partnership with Bloomberg Associates (BA). This collaboration provides expert consulting to support Phoenix’s workforce and economic development initiatives.
Since 2022, the Community and Economic Development Department’s (CEDD) has worked closely with Bloomberg Associates to develop a comprehensive three-year strategy and implementation plan for the Phoenix Business and Workforce Development Board (Board). BA has supported CEDD in engaging employers and training providers, integrating global best practices into Phoenix’s workforce services, and expanding job-seeking opportunities for residents. The workforce initiatives supported by Bloomberg Associates since 2022 include:
- Board Strategic Plan and Implementation (2023-2026): In July 2023, CEDD and BA collaborated with Board members and stakeholders to establish the 2023-2026 Strategic Plan and implementation roadmap This plan outlines priority actions and strategies to achieve the Board’s key objectives.
- Enhanced Employer Engagement & Workforce Readiness Standards: Through a collaborative employer engagement sprint, CEDD and BA worked with major employers in sectors such as insurance, semiconductors, and financial services. This initiative resulted in the creation of employer-vetted workforce readiness standards and customized training to meet industry demands.
- Phoenix Workforce Coalition (PWC): PWC was formed to bring together workforce providers, employers, and stakeholders to streamline workforce development and establish shared priorities, including workforce readiness standards and accessible career pathways.
- Single Front Door for Job Seekers & Employers: CEDD and BA developed an online portal to simplify access to workforce resources for job seekers and employers. The "Single Front Door" is expected to launch by the end of the year.
- AI Impact on Industry Sectors: CEDD, BA, and the Greater Phoenix Economic Council are assessing the impact of AI on key industries, identifying retraining needs, and developing skill-up pathways for affected workers.
- Fundraising Models: In response to Workforce Innovation and Opportunity Act funding reductions, BA is assisting CEDD in establishing a braided funding model through a 501(c)(3) nonprofit organization to diversify funding and support continued workforce services in Phoenix.
- "Good Jobs" Standards: Following the “Good Jobs Summer Tour” with Acting Department of Labor Secretary Julie Su, PWC is developing Phoenix-specific standards for quality jobs, informed by feedback from local employers and best practices.
- Board Dashboard: BA developed a dashboard to track Board projects and progress, improving communication and transparency.
Workforce Innovation and Opportunity Act (WIOA) Funding
WIOA funding is currently the primary source of support for workforce development services provided by the City of Phoenix. Over the last several years, Phoenix’s WIOA allocation has decreased from $14.2 million to $10.2 million, limiting the Board’s ability to fund services at scale. This reduction in funds has also lead to scaling back existing services, even as the semiconductor ecosystem anticipates a need for up to 70,000 skilled workers to support new chip factories in Phoenix. In response to these reductions, BA has identified braided funding models to diversify workforce development funding by leveraging corporate and philanthropic sources. BA has also offered to support City staff with fundraising coaching and to facilitate connections with potential funding partners.
Fund Management Structure
Raised funds would flow through a 501(c)(3) nonprofit organization rather than directly through the City of Phoenix, a model commonly used in cities like Los Angeles and Seattle. This approach provides greater flexibility in matching funds with WIOA allocations.
CEDD has identified a potential 501(c)(3) vehicle but currently lacks the resources to hire a full-time fundraiser. Possible solutions are being explored to address this gap.
Moving forward, efforts to diversify workforce development funding is critical in addressing WIOA cuts. With guidance from BA, CEDD plans to implement a 501(c)(3) fundraising model similar to those in other cities. Continued advocacy and assistance from City Council in exploring solutions will remain crucial to addressing funding challenges.
Responsible Department
This item is submitted by Deputy City Manager John Chan and the Community and Economic Development Department.