lifelong learning accounts: creating a partnership in lifelong learning
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Lifelong Learning Accounts: Creating a Partnership in Lifelong Learning. June 2006. CAEL’s Mission. CAEL pioneers learning strategies for individuals and organizations. We advance lifelong learning in partnership with educational institutions employers labor organizations government - PowerPoint PPT PresentationTRANSCRIPT
Lifelong Learning Accounts:
Creating a Partnership in Lifelong Learning
June 2006
CAEL’s Mission
CAEL pioneers learning strategies for individuals and organizations. We advance lifelong learning in partnership with
educational institutions employers labor organizations government communities
CAEL works to remove policy and organizational barriers to learning opportunities, identifies and disseminates effective practices, and delivers value-added services.
AdultLearners
Employers and
Unions
Governmentand
Community
Colleges and
Universities
CAEL Connects:
CAEL’s Workforce Development Work
CAEL’s Lifelong Learning Work
CAEL’s Public Policy Work
What are LiLAs?
Lifelong Learning Accounts (LiLAs) are employer matched individual asset-building accounts to finance lifelong learning so that workers can upgrade their skills and knowledge to achieve their career goals while meeting the demands of businesses for a skilled workforce.
The Need for Lifelong Learning
Skills gap
42% of occupational categories with projected new job growth in the next decade will require a college degree or other post secondary award, compared to 29% in 2000.Source: Bureau of Labor Statistics (2001). Employment Outlook 2000-2010: Occupational Employment Projections to 2010. Online at, http://stats.bls.gov/opub/mlr/2001/11/art4full.pdf
85% of jobs are classified as “skilled” or require education beyond high school.Source: National Commission on Mathematics and Science Teaching for the 21st Century (2000). Before It’s Too Late. Online at, http://www.ed.gov/inits/Math/glenn/index.html
The Need for Lifelong Learning
At the same time, a slowing in the growth of educational attainment.
A 2003 Aspen Institute Study estimates that there was a 19 percent increase in the share of workers with post-high school education over the last 20 years. That will drop to 4 percent in the next 20 years.Source: The Aspen Institute (2003) Grow Faster Together Or Grow Slowly Apart: How Will America Work in the 21st Century? Online at, http://www.aspeninst.org/AspenInstitute/files/CCLIBRARYFILES/FILENAME/0000000225/DSGBrochure_final.pdf
Education Has a Clear and Compelling Impact on Salary Levels and Job Stability
Source: Bureau of Labor Statistics (2004). Education and Training Pays. Online at, http://www.bls.gov/emp/emped00.pdf.
Who Is Today’sAdult Learner?
3 out of 4 undergraduates have at least one characteristic of an adult learner
43% of postsecondary students are between 25 and 44 years old, 82% of whom work while enrolled.
Source: National Center for Educational Statistics (2003), Work First, Study Second: Adult Undergraduate Who Combine Employment and Postsecondary Enrollment..
Wisconsin’s Challenge
According to Measuring Up 2004, the percentage of 25-49 year olds enrolled in part-time postsecondary education in Wisconsin dropped from 4.3% in 1994 to 3.7% in 2004, below the top performing states’ percentage of 5.4%
Wisconsin earned a “D” grade for affordability of education.
Source: The National Center for Public Policy and Higher Education
Who Pays for Adult Learning?
FoundationsTANFState WorkforceETA - DisadvantagedETA - OtherState - CCsFed - Higher EdEmployers/ Unions
Informal Analysis by Ford Foundation
LiLA Components Include:
Universal LiLA eligibilityEmployer BasedPortableContributions from Individuals,
Employers and, potentially, Third PartiesVoluntary Participation Informed Choice
CAEL’s LiLA Initiative:
A three-site, multi-sector LiLA demonstration for 300-400 workers
A comprehensive, independent evaluation of the demonstration
National and state LiLA policy activities
Demonstration Sites
Chicago, IL -- 125 employees of the restaurant and foodservice industries
Northeast Indiana -- 75 manufacturing employees and 75 public sector employees
San Francisco -- 75 employees of the allied healthcare industry
Demonstration Results to Date
Fully operational in all three sitesWide range of employers, primarily
small and medium sizeHighly diverse group of participants
Over half of participants are non-white Nearly half earn less than $30,000 Over half are female Over half are under age 40
Top Reasons for Employer Participation
Way to provide an affordable benefit. Improve the skill set of workers. Improve employee morale. Increase retention of employees.
Top Reasons for Employee Participation
Pursue a degree. Obtain additional training and knowledge. Continue education.Learn a new or different skill. Increase earning potential.
Sample Uses
NursingLab TechnicianESLManagementAccountingComputersHVACQuality AssuranceCulinary Arts
LiLA Policy Goals
Make LiLAs available to all employees as part of standard employee compensation packages.
Enact legislation that provides tax incentives for education and training through LiLAs.
LiLA Policy Initiative
Federal Federal Tax Demonstration National Innovation Act
State State-based pilot (ME) State planning research (IL) Legislative initiatives
State tax incentives (OK)State matching pilot (IL and IN)
WIRED (Coastal Maine and Kansas City regions)
Proposed Federal LiLA Demonstration
Key Recommendations:
Use tax credits as third-party financing mechanism for a national system of LiLAs
Serve up to 200,000 individual workers in 10 states Build in a larger tax incentive to workers earning
$75,000 or less Through corporate tax credits, encourage employers of
all sizes to match individual contributions, including non-profits
Provide technical assistance to participating companies and advising to individual LiLA holders
Test the LiLA model at a much larger scale
National LiLAProject Sponsors
Ford FoundationAnnie E. Casey FoundationBank of America FoundationChicago Community TrustCity of Fort WayneOlive B. Cole FoundationEvelyn and Walter Haas, Jr.
FundWalter and Elise Haas FundFriedman Family FoundationRichard and Rhoda Goldman
FundGrand Victoria FoundationHewlett FoundationIndiana Department of
Workforce DevelopmentIndiana Michigan Power
Indiana Northeast DevelopmentLevi Strauss FoundationLincoln Financial Group
Foundation, Inc.Noble County Community
Foundation, Inc.Northeast Indiana Workforce
Investment BoardPolk Bros. FoundationSan Francisco FoundationSteuben County Community
Foundation (donor-advised)United States Department of
Labor (Maine program)Verizon Foundation
Contact Information
Amy ShermanPublic Policy DirectorCAEL55 East Monroe St., Ste. 1930Chicago, Illinois 60603312-499-2635 (phone)312-499-2601 (fax)[email protected]