The Recovery 101 presentation given on May 19, 2009 in Flint, MI. Hosted by the Mid Michigan Innovation Team in collaboration with Corporation for a Skilled Workforce and the Mott Community College Regional Technology Center. Presenters include representatives from Corporation for a Skilled Workforce, the Michigan Department of Energy, Labor and Economic Growth, the Michigan Economic Development Corporation, and the National Employment Law Project.

1. Recovery Act 101
Hosted by the Mid-Michigan Innovation Team
in collaboration with
Corporation for a Skilled Workforce
and Mott Community College
Regional Technology Center
May 19, 2009

2. Welcome and Introductions
Tom Crampton, Board Member of Mid
Michigan Innovation Team
Executive Dean of Mott Community College
Regional Technology Center/M-TEC

3. General Overview of American
Reinvestment and Recovery Act (ARRA)
Diana Carpenter, Team Lead for
No Worker Left Behind
Michigan Department of Energy, Labor and
Economic Growth (DELEG)

4. Overview of ARRA Energy Opportunities
Representative, Michigan
Department of Energy, Labor and
Economic Growth (DELEG)

5. Overview of ARRA and Worker
Transition Supports
Lindsey Webb
Trade Adjustment Assistance Coordinator
National Employment Law Project (NELP)

6. Trade Adjustment Assistance
• The Trade Adjustment Assistance (TAA) program
helps workers who have lost their jobs as a result of
foreign trade.
• The TAA program offers a variety of benefits and
services to eligible workers, including job training,
income support, job search and relocation
allowances, a tax credit to help pay the costs of
health insurance, and a wage subsidy to workers 50
years of age and older.
• The Trade and Globalization Adjustment Assistance
Act of 2009 is part of the Recovery Act

7. Changes for TAA
• In general, changes to worker benefits and the
new certification criteria apply to petitions file
on or after May 18, 2009.
• Except workers already enrolled in HCTC will
experience the change in the tax credit, from
65/35% to 80/20% starting in May
• There will be two parallel programs for 2 years

8. Certification
• Old Law:
– Must make a product
– Must have lay-offs
– Adversely impacted by trade
• Increase of imports of like or directly competitive
products
• Shift in Production
• Secondary certification

9. Certification
• New Law:
– Service & Public Workers
– Workers whose firm has shifted production to any foreign
country.
– Workers whose firm produces component parts of a
finished article produced by its customer(s).
– Workers in firms that supply testing, packaging,
maintenance and transportation services to companies
with TAA-certified workers.
– Workers whose firm is identified in an International Trade
Commission “injury” determination listed in the Act.

10. Benefits: Income Support
• Weekly Income Support: Trade Readjustment
Allowance
– Old Law: Up to 104 weeks of cash payments for workers in
full-time training; Can extend to 130 weeks if the worker
needs remedial training.
– New Law: Up to 130 weeks of cash payments for workers
in full-time training; Can extend to 156 weeks if worker
needs remedial training.
• NB: Law requires workers exhaust State UI benefits first, which
may impact the amount of time a worker receives TRA benefits.

11. Benefits: Education and Training under
the old law.
• On the Job Training
– Employer is reimbursed 50% of wages paid
• No other training or weekly income support is available after on the job
training. However, workers can still take advantage of other TAA benefits,
including HCTC.
• School Training
– Up to 104 weeks of fully paid educational training
– Must enhance employability
– Training must be completed in 104 instructional weeks
– Training can be a shorter period of time
– Training must be vocationally driven and there must be a demand for the
occupation
• Remedial Education
– Additional 26 weeks of TAA and TRA for workers who need remedial training

12. Benefits: Education and Training under
the new law.
• Training may be approved on a full-time or
part-time basis.
– Although, full-time training is required for TRA
eligibility.
• Certified workers may begin approved training
when threatened with lay-off.

13. Enrollment Deadlines for Education
and Training
• Old Law: known as the 8 and 16 week rule
– Required that workers must be enrolled in training
8 weeks after certification or 166 weeks after
layoff, whichever is later in order to receive TRA
• New Law: Workers must be enrolled in
training, 26 weeks after certification or layoff,
whichever is later to get TRA.

14. Job Search and Relocation Allowances
• Job Search Allowances
– Old Law: 90% of allowable costs, up to $1,250
– New Law: 100% of allowable costs, up to $1,500
• Relocation Allowances
– Old Law: 90% of costs, up to the statutory limit for Federal
Employees
• Provides an additional lump sum payment of up to $1,250
– New Law: 100% of costs, up to the statutory limit for
Federal Employees
• Provides an additional lump sum payment of up $1,500

15. Alternative Trade Adjustment
Assistance
• Old Law
– Available to workers 50 years of age or older
– Requires a separate certification of group eligibility
– Workers may not participate in TAA-approved training
– Requires full-time employment within 26 weeks of
separation
– Available only for workers earning less than $50,000 per year
in reemployment
– Maximum benefit of $10,000 over a period of up to two
years
– Participants are eligible for the HCTC

16. Reemployment Trade Adjustment
Assistance
• New Law
– Available to workers 50 years of age or older
– Does not require a separate certification of group eligibility
– Workers may participate in TAA- approved training
– Requires full-time employment, unless the worker is also enrolled in
TAA-approved training and employed at least 20 hours per week, and
does not set a deadline for reemployment
– Available only for workers earning less than $55,000 per year in
reemployment
– Maximum benefit of $12,000 over a period of up to two years
– Participants are eligible for the HCTC

17. Health Coverage Tax Credit
• The legislation amends the Health Coverage Tax Credit (HCTC)
program by increasing the premium subsidy level from 65
percent to 80 percent, and provides workers retroactive
payments to help cover the up-front costs of obtaining health
coverage.
• Additionally, the legislation provides some expanded coverage
of spouses and dependents in the case of death or divorce.
• $150 million in grant funding is available under this legislation
to help states improve the availability of health insurance
options, such as “mini-cobra” laws.

18. TAA for Communities and Firms
$230 million of new funding for communities
affected by trade,
Particularly small and medium sized communities, are
eligible for strategic planning grants, sector partnership
grants, and community college and career training grants.
Great Lakes TAAC
University of Michigan Business School
Business and Industrial Assistance Division
506 East Liberty St., 3rd Floor, Carver Building
Ann Arbor, MI 48104-2210
Toll free: (877) 877-5439

19. Contact Information
Lindsay Webb
TAA Coordinator
734.369.5615 office
734.731.4678 cell
lwebb@nelp.org

20. 10 Minute Break

21. Overview of ARRA Economic
Development Opportunities
Mike Pohnl, Recovery Coordinator
Michigan Economic Development Corporation

22. MEDC’s ARRA Team
 Economic Recovery  New Markets
Coordinators (ERCs)  Business
 Mike Pohnl Development
 Amy Banninga  CATeam
 Summer Interns  Program
 Research/REMI Administration
 Legislative Affairs
and Policy

23. ARRA Current Status
 Formula funding announcements have begun
 Recovery.gov
 Grants.gov
 Michigan.gov/Recovery
 MichiganAdvantage.org/Recovery
 Competitive funding announcements will follow
 More information arrives daily

24. ARRA Formula Funding
 Most money will pass through normal process to
state and local governments for administration.
 Most federal regulations will still be in place, but
some relaxation of rules and match requirements
 There is some discretion in the allocation of a portion
of formula funds, such as those allocated to the
Energy Office. These funds will be allocated based
on the governor’s priorities.

25. ARRA Competitive Funding Opportunities
 Money will flow through federal agencies by a
formal solicitation process – projects will compete
for funds.
 Companies, communities and other institutions
need to be ready to apply for these opportunities
 MEDC Interns will be used to identify opportunities,
but companies and communities need to be
proactive.

26. ARRA Opportunities for Government
Existing programs with additional dollars or
flexibility.
 Michigan to receive a CDBG allocation of $34
million through ARRA. $25 million will be
allocated directly to entitlement communities,
while $9 million will supplement the CDBG funds
already administered by the MEDC.

27. ARRA Opportunities for Government
Existing programs with additional dollars or
flexibility
 Rural Development (RDA),
 Economic Development Authority (EDA),
 VISTA and AmeriCorps,
 Neighborhood Stabilization,
 Rural Business Program have all received additional
funding.

28. ARRA Opportunities for Government
RDA - Rural Business Program
 Bolsters the existing private credit structure
through the guarantee of quality loans which
will provide lasting community benefits

29. ARRA Opportunities for Government
RDA- Rural Communities Facilities
 Loan and grant funds may be used to
construct, enlarge, or improve
community facilities for schools,
libraries, health care, fire and rescue
stations, police stations, community
centers, public buildings and
transportation

30. ARRA Opportunities for Government
Economic Development Authority
 Addresses long-term economic distress in
urban industrial cores and rural areas
 Public Works, Incubators, Technical Assistance
 Focus on areas with recent economic distress

31. ARRA Opportunities for Government
Americorps and VISTA
 Funds local and national organizations and agencies
committed to using national service to address
critical community needs in education, public safety,
health and the environment.
 Eligible applicants are existing, funded programs.
ARRA funds will be add-on grants to current
grantees.

32. ARRA Opportunities for Government
Broadband
 ARRA funding of $7.2 billion
 State plan to provide each county seat with
broadband access
 Reduce access costs for underserved and
unserved markets
 Detail of plan still being developed

33. ARRA Opportunities for Government
Energy Efficiency and Conservation Block
Grants
Michigan will receive Energy Efficiency and Conservation
Block Grant (EECBG) funding through ARRA for local energy
efficiency and conservation efforts. $57.6 million going
directly to 69 Michigan communities and tribal
governments, $11.4 million to communities through a
competitive grant process. More information at
www.Michigan.gov/Recovery.

34. ARRA Opportunities for Government
Recovery Zone Bonds
 Recovery Zone Bonds are intended to stimulate economic
recovery in recovery zones.
 A Recovery Zone is any area that has been designated by a
county/large municipality as having significant poverty,
unemployment, or general distress.
 The Federal government will allocate each category of
Recovery Zone Bonds to the states. Each state will then
allocate its share to counties and large municipalities based
on their decrease in employment compared to the state’s
decrease in employment.
 Counties and large municipalities will issue bonds for activity
in designated Recovery Zones, based on this allocation.

35. ARRA Opportunities for Government
Trade Adjustment Assistance
Trade Adjustment Assistance (TAA) programs are improved.
Reforms go into effect on May 18, 2009
 Expands TAA coverage to more workers and firms, including
workers and firms in the service sector
 Improves workers’ training opportunities by allowing training
through community colleges and other providers, and
improves opportunities for health insurance coverage (grants
up to $1 million)
 Creates a TAA for Communities grant program to assist
communities impacted by trade (grants up to $5 million)

36. ARRA Opportunities for Government
Trade Adjustment Assistance
Benefits for TAA Eligible Communities include:
 Technical assistance to assist a community affected by trade
 Help to identify federal, state and local resources available
to assist the community
 Reimbursement of up to 75 percent of the cost of
developing a strategic plan for the community’s economic
adjustment
 TAA for Communities grant program to assist communities
impacted by trade (grants up to $5 million)

37. Web Resources
Federal Government
 Recovery.gov
 Grants.gov
State Government
 Michigan.gov/Recovery
 MichiganAdvantage.org/Recovery

38. MEDC Contacts
Mike Pohnl
517-373-6567
PohnlM@michigan.org
Amy Banninga
517-241-2092
BanningaA1@michigan.org

39. Question and Answer

40. Recovery Act Action Planning
Lisa Katz, Senior Policy Analyst, Corporation for a Skilled Workforce
1. How is ARRA relevant to your organization’s
work?
2. What opportunities do you see for
collaboration because of ARRA?
3. What would help you take the next step to
make this collaboration possible?

41. Concluding Remarks
Tom Crampton, Board Member of Mid
Michigan Innovation Team
Executive Dean of Mott Community College
Regional Technology Center/M-TEC

42. Thank you!
Don’t forget to fill out the survey
and register for a fabulous prize!
More information on ARRA is available at
http://recoveryactresource.wikispaces.com/