Lansing — Department of Labor and Economic Opportunity officials told the Michigan House Appropriations Subcommittee on Labor and Economic Opportunity on March 19 that the state’s workforce development system combines federal and state funding to support employers and jobseekers, and that the department plans targeted FY26 requests for programs aimed at getting people into and retaining good jobs.

The presentation by Jayshanna Hicks, legislative director for LEO, and Stephanie Beckhorn, deputy director of Employment and Training, summarized program spending, outcomes and administration. Beckhorn said the Office of Employment and Training’s fiscal year 2025 workforce development budget totals about $510,000,000, with roughly 81% ($413,000,000) coming from federal sources and the remainder from state general purpose funds. She said roughly $68,000,000 is state general fund support, and that a large share of the state dollars are devoted to the Going Pro Talent Fund.

Beckhorn framed the office’s work as a “dual customer” approach serving employers and individuals, including people with disabilities. She described four agency areas — the Bureau of Services for Blind Persons, Michigan Rehabilitation Services, Workforce Development, and Operations — and said most direct services are delivered by local Michigan Works agencies, adult education providers and postsecondary institutions. She said Workforce Innovation and Opportunity Act and Wagner-Peyser funds total more than $100 million and are distributed to 16 local workforce boards that must prepare local plans.

Beckhorn highlighted several programs and their outcomes. The barrier-removal employment success program (referred to in testimony as BREEZE) provides short-term payments for items such as transportation, childcare and clothing to help people get or keep work. Beckhorn said about 4,000 people participated in BREEZE from September 2021 to June 2023; participants were about 12 percentage points more likely to be employed one quarter after exit and 8 percentage points more likely four quarters after exit compared with nonparticipants. She said median wages for participants increased by about $7,000 in the first quarter after program exit.

Beckhorn described registered apprenticeships as “earn while you learn” models that produce industry-recognized credentials. She said apprenticeship completers have high retention — about 93% at one year — and that apprenticeship completers earn wages above regional medians. Beckhorn said the FY26 budget includes a request to expand registered apprenticeship supports that would reach more than 1,800 residents and more than 130 employers; the exact dollar figure for that request was not clear on the transcript.

Other programs Beckhorn highlighted included Jobs for Michigan Graduates, a dropout-prevention and recovery program operating in more than 80 districts and serving roughly 5,000 youth annually; and the Going Pro Talent Fund, a competitive training reimbursement program. Beckhorn said the administration’s FY26 request includes roughly $54,800,000 for the Going Pro Talent Fund and that the fund provided about $63,100,000 to a little over 1,200 employers last year, supporting more than 37,000 individuals. She said Going Pro is primarily a reimbursement program, requires employers to document training completion and six‑month wage outcomes, and typically targets wages at or above the regional median.

Committee members asked how LEO determines employer skills needs; Beckhorn described one-on-one convenings with employers and local partners to identify the characteristics of “the best employee” and the credential or pathway that produces that worker. Members also asked about overlap with services administered by the Department of Health and Human Services; Beckhorn said BREEZE is deliberately designed to fill gaps for people who do not qualify for WIOA or HHS programs and that the office seeks to avoid duplicative spending.

The subcommittee recorded a formal procedural action earlier in the meeting: Representative Martis moved to approve the minutes from the March 12 meeting, and the chair announced there were no objections and the minutes were approved.

Beckhorn closed by asking members for questions and noting she would return in a future meeting to discuss vocational rehabilitation programs in more detail.