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IDemo

(16,926 posts)
Sat Feb 6, 2016, 01:32 PM Feb 2016

Obama to Propose Tax Credit For Businesses That Hire Community College Grads

Source: NBC News

WASHINGTON - President Barack Obama will propose a $2.5 billion tax credit over five years for businesses that invest in programs at local community colleges and hire their graduates, administration officials said on Friday.

The proposal, dubbed the Community College Partnership Tax Credit, would require businesses to donate funds for equipment, instruction, or internships related to programs in areas such as healthcare, energy and information technology.

Employers that hire students from such programs would get a one-time, $5,000 tax credit per individual brought aboard.

The program, to be proposed formally in the president's fiscal 2017 budget on Tuesday, is meant to shore up community colleges' educational offerings, while helping businesses find high-skilled workers in certain fields.

Read more: http://www.nbcnews.com/feature/college-game-plan/obama-propose-tax-credit-businesses-hire-community-college-grads-n512691

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Igel

(35,320 posts)
1. It'll also alter their hire numbers.
Sat Feb 6, 2016, 02:15 PM
Feb 2016

For-profit tech schools have absolutely crummy placement records.

A lot of community colleges have equally appalling placement records.

Arguing that the first is evil and should be condemned for their records while community colleges get a pass just looks bad. The response so far has been pretty much to rail against the for-profit schools while furiously ignoring the community colleges' records.

But community colleges have another problem: They often have crummy infrastructure and lack "the right" programs. Even if there's demand, the courses can't be created because there's a funding hump to get over, or the programs wouldn't pay for the infrastructure. (Remember this when you hear that it's entirely demand that creates openings, all by its little self.) You need space and very expensive equipment for a lot of specialized courses, as well as the funds to hire instructors that are competent and often in demand elsewhere, and often the course enrollment has to be kept low. (And if it's not, education suffers, and if there are a lot of small classes then the equipment takes a real beating and depreciates very, very quickly.)

The German model works because the students are all but apprentices and the private sector helps determine who gets admitted, what the curiculum is, and who gets hired. Nobody wants that here because while it's a good school-to-job pipeline, control matters. It also requires that the high school kids that enter the pipeline have the prerequisite training, and we're too busy with a one-size-fits-all model because, well, the German model of education promotes a kind of cognitive inequity. You're trained for humanities or technical or vocational skills, so you don't Sartre or pre-cal or mechanical drawing if you're in the "wrong" program.

Of course, the CC's lack of needed offerings makes for a need unmet by the public sector. It's the "space" that the for-profit schools exists in. I've known a fair number of people trained at ITT or other such places and got training that they needed for better jobs, but which the local CC system doesn't offer. Railing against those schools while not having a replacement for the training they could give also seems counterproductive. This helps fill that gap.

The third remaining problem for both community and for-profit colleges is the drop-out rate. You accrue debt--more at for-profit schools, but also a fair amount at community colleges--and then drop out after 2-3 years of a two-year program that you needed remedial work to do good in or which you only attended part time--and you get debt but no certificate of completion. We won't even discuss the racial disparities that this drop-out rate displays. To wrangle with the drop-out rate we have a proposed rating system, sort of like the rating system for annual yearly progress that's served the K-12 education system so well in the last 15 years, complete with standardized tests of some sort to show that what's paid for--a college education--wasn't just delivered by the institution but that the institution "owns" the student's learning.

But one but of reconstructionism at a time.

seabeckind

(1,957 posts)
2. Let me guess -- this brilliant idea came from the business sector.
Sat Feb 6, 2016, 02:37 PM
Feb 2016

How about instead of subsidizing their workforce even more....

Why do we need the middleman? Maybe just invest in education directly and charge the business for the service provided them by giving them an opportunity to have an educated workforce.

Who knows, maybe after the education the student may come up with a better business model and offer a competition to the buggy whip guy.

 

jtuck004

(15,882 posts)
6. Nice. More business training costs picked up by taxpayers. Be nice when we get someone who
Sat Feb 6, 2016, 04:22 PM
Feb 2016

doesn't just turn to screwing the workers every time he wants to get his name in the papers.

How 'bout we send the kids to school , give 'em $5000 to help with books and eating, and let the business pay their own expenses. If they have any business, they will hire their own folks without help, or forego profit to their competitors. That's how it works for people who have to work for a living.

I know it doesn't gain money for the big banks making student loans and buying politicians, but this is no way to do business.

erpowers

(9,350 posts)
8. Bad Idea
Sat Feb 6, 2016, 07:50 PM
Feb 2016

This is a bad idea because it is not needed. This would just be a waste of money. A number of community college graduates leave school with the skills needed to get a job. This program would be paying companies to hire individuals for jobs that the companies should already want to hire. It would be far better to give that money back to the American people, or use it to pay for some other needed program.

PCPrincess

(68 posts)
9. Obama: "Businesses, pretty-please, do the right thing, please"?
Sun Feb 7, 2016, 12:21 PM
Feb 2016

I agree with the previous posters. Are we admitting that greed is so rampant that we need to wave a carrot in front of local businesses to get them to actually hire those who worked to get a degree? We reward greed with more money?

As the posters above pointed out, it would be far better to invest that money into the colleges, give it to the students, who, may then actually be able to more afford the transfer to a four year college and strive for the bachelor's degree. If the administration thinks there is enough money in the coffers to afford to give 5K handouts to business, then we surely could afford an extra 5K grant for students.

The middleman comment above was a perfect take on this. I'm so sorely disappointed with Obama. He brought in the most conservative business-friendly advisers possible. He's no liberal Democrat.

P.S. Bernie_2016!

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