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Kim Smith
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Governor's Proposed Budget Recognizes ETP's Economic Stimulus Role

Despite the year's complex financial picture, the Governor's proposed budget reflects strong support for the Employment Training Panel, with an increased appropriation for Fiscal Year 2009/10. Reflecting the growing awareness of the program and the importance of workforce training during the current economic downturn, for the first time since the 1998/1999 budget year, transfer of Employment Training Fund (ETF) monies to supplement general fund programs has been eliminated. However, because collections from the Employment Training Tax have also fallen approximately $16 million below earlier projections, the proposed net gain in funding for ETP in the 2009/10 budget equates to approximately $20 million.

The increased appropriation for ETP will need to be approved by the Legislature through its annual budget review process. Because of the economic downturn being experienced by all state agencies, we anticipate enormous pressure to redirect ETP's proposed increased appropriation.

We recognize that during the budget review process it will be important for ETP to clearly demonstrate it's role in supporting training for unemployed workers, providing a resource for improving the skills of incumbent workers, and highlighting our work with priority industries/initiatives and special populations. Key to the Panel's success in retaining its full appropriation will be the continued support of our stakeholders, constituent groups, partners and friends.

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