Around the law and saying congress is not doing what they should be doing to fix the problem, so i will grant you a waiver out of the law. That is one issue. The second issue is, why dont we block grant the money . Everyone has great ideas. The next thing you know, we Christmas Tree ornament all these bills and it gets on while he. You have different demographics in utah than we have in tennessee. We ought to have our own program. Why can we not get back to what we have done at least previously , where the federal government says we are going to help you, we are going to gather money, push it out there to equalize him and help those who are may be rural or poorer areas of our country so everybody has an opportunity to have a good education, but just give us the money without any strings. When you talk about the federalization, it is the money with the strings that nationalizes the program. That would require an election, and maybe two to do. I agree with you. That is the difference of opinion we have in washington. Take the workforce grant. The house passed the job skills act, which moved a long way further towards what you just described with the 10 billion of workforce money. When it came to the senate, which has a different political composition, there were a lot more washington rules. Our compromise moved a lot closer to the house. The difference only in the military on the elementary and secondary, you have a bill that was passed. Senator harkin is the chairman. 1150 pages. And regulations, much more than the National School board. 12 senators voted for it all of one party. 10 senators voted for the one that i offered, which is 200 pages and moves all those decisions back to states and local governments. It is a political difference of opinion. Some republicans get carried away and they also want mandates from washington. Examplesen plenty of of that. Fundamentally, democrats feel responsibility to have more rules and regulations. Republicans agree with what you just said. Maybe theres a difference between us as governors and the partisanship you see in washington, d. C. For a variety of reasons. Most governors are just going to say, let us spend the money as we see fit. Oh, i know. Democrat and republican alike. Hey, listen to us. We are probably pretty smart people in our own respective states. We dont need a onesizefitsall solution. Give us the money. Maybe we cant put it into Public Safety and building roads. I can see some general parameters. Let us work out the details in our own respective responsibilities. I completely agree. Senator, secretary, governor alexander [laughter] piano player. Lets begin with the fourth of your topics. More for teaching well, appropriate criticisms, or however you will phrase that one. Dig just a little deeper about where those fisher fissure li nes are. I think you will find is very interested in a couple of things. Attracting the best and most capable people who have taken Public Education as a career. Since 1984 to now, one of the faults that has occurred in this country has been this shift away. When i was chair of this committee a few years ago, we brought in Education Advisers from countries that had higher scores than us in math and science and went through with them why. One of the reasons was the quality of teachers. One of the reasons for that was that they paid them more and it was held in higher esteem in the public view as a career. I know you talked about the no child left behind and whatnot. Carry that discussion. Define the fissure deeprer. I think you will find is as getrnors very willing to involved. We clearly want to get as much productivity out of our schools as possible. We are all looking for positive reform agendas. Define that fissure more, and what you see the hangups are as far as getting some movement in areas at the state level. The most difficult thing to relate to student achievement to teacher performance in a fairway. Thats not easy to do. It obviously should be done. Everyone knows that. That is common sense. Its not easy to do. The question is, should washington try to say, its not there anymore, but the seven things you need to do to achieve that or should we try to [inaudible] or should we make it easy for you to use federal dollars to figure that out for yourselves. I think the latter. I thought we did a pretty good job 30 years ago. Governor haslam has done a better job. One thing we could do is take the title to money title ii money. Title ii is for helping teachers, personnel development. You can use that money however you want to develop your own systems of teacher evaluation and principal evaluation and performance. That is quite a bit of money. Right now it really goes into reducing classsize in most states. You could use it if you chose to for that purpose. Im very reluctant for washington to try to tell you how to do that when nobody really knows how to do that. I think it is much more likely to come out of wisconsin or iowa or missouri than it is out of the department of education. Lets be blunt about it. You have this big push back right now. Perception which is a fact that washington is in effect requiring states to adopt certain standards and certain performance levels and certain teacher evaluation systems, and people in tennessee dont like that. Heart all the problems you about common corps are related to the perception that washington is making you do it. Thought was, if i dont like the academic standards i can go to Governor Haslam or walker and they can fix it, i think most of us would relax. On the other side, the Teachers Unions get very upset about the evaluation if it is coming down from anywhere. It is better thought out on a precinct by precinct School District by School District. I would only argue that i agree with you but that the way to get through this is with carrots, not sticks. The dialogue around this, about underperforming schools or teachers are not doing a good job, it is a much easier highere if we are aiming and putting targets to move them up. Frame of the discussion. We are looking for ways to pay teachers more for teaching well. That way you have carrots, you have positive our First Program was voluntary. You did not have to do it. We had 10,000 teachers who did it. No child left behind got to be like catching people doing things wrong instant of catching people doing things right. The method no child left behind probably guarantees that the math problem, you fail. It runs out of time. Governor chafee. Just following up on that point. On your legislation, the partisan one, does the bill repeal no child left behind . They are competing bills. We had a good discussion about it. I support moving both bills to the floor. Democrats have a bill. It is 1150 pages long. Regulations of new and new programs and new mandates. How about your bill . 200 pages long. It moves all the responsibility for measuring whether teachers and schools are succeeding or failing back to states. It does keep the reporting requirements were you just aggregate weather in des moines or mill walking the africanamerican milwaukee the africanamerican kids, how are they doing, because we need to know about that. [inaudible] support from Teachers Union for that . The Teachers Union, you will have to ask them. They like our bill in one respect better because it does not mandate teacher evaluation. It allows you to use title ii money for that purpose, but it does not do this. Arne duncan is a very good man. He cares about schools. Governor george w. Bush tried to be too much of a governor of the United States when it came to no child left behind. Arnie is trying to be a School Superintendent of the United States. These are things you should do as governor, but not from washington. The house has a bill that is a lot like the Senate Republican bill. Thathave the same feeling before washington hands things down to the state and local communities, they should fulfill what they promised back in the 1970s, and that is i. D. E. A. Instead of new mandates. Do you have any discussions about i. D. E. A. In your committee . I would relieve some of the mandates. Senator harkin, that has been his pride and joy. Senator tim scott has introduced a bill that im a cosponsor of theh would allow considerable federal dollars that go to children with disabilities to follow the child to the school of the parents choice. If you have a down syndrome child in first grade and you are happy with that school because that school seems to meet the needs of that child, then your share of the federal dollars would could go to that school and give the parent that choice. That would be one way to assist with disabilities. Thank you. No other questions . How about one more . Go for it. You talked about the forms, consolidating it down to the simple postcard size. Money is also important for these pell grants. Thewe keeping up with rising tuitions and the percentage that pell grants used to contribute to a persons college aid . Im glad you brought that up. I think yes. Theres a lot of misinformation costs to how much it go to college. Governor haslam would tell you that it is already almost immunity colleges already almost Community College is already almost free. People just dont know it. If you can figure out that form, the gap is smaller than most people know. Right. He was sure enough to say, we want to change the perception. He is saying, if i want to increase the Graduation Rate and job skills, i want more people in college. Half the students at ball state have a pell grant and have to not. There are probably a lot more who are eligible. The Community College tuition is only 3600. The pell grant can go up to 5,600. The average student loan is 27,000 for a fouryear degree. The average car loan is 27,000. I dont hear everybody saying that the economy is going to all because everybody has 27,000 car loan. Loans a 100 billion in year which are to be paid back and 33 billion intel grants up grants up in pell to 5,600. The university of tennessee, vanderbilt student athletes who are eligible get a pell grant on 5,600 on top of their athletic scholarship. Theres a lot of money out there. Toour plan, what were going do is we are going to get rid of the subsidized loan. Most students have both. Save 41 billion. We will spend the 41 billion dollars on funding the cost of a larger number of students who we think will apply for pilgrims because of this, and the yearround pell grants because of this, and the yearround pell grant. It is pretty expensive. Thank else . Anybody if not, senator, thank you very much. [applause] this is tennessees waiver document. This is what tennessee had to submit. They were already pretty well doing what the west apartment of education thought they should do. Nevertheless, the governor had get amit this in order to waiver for no child left behind. I think this is wrong. I dont think its envisioned by the federal law and it should not be. This is the difference of opinion. Senator. You again, on andre going to move ite up, first i think we had such a great time last night that everyone is a little slow coming in this morning. Have we had a great time this morning. [applause] wifenor haslam and and his have done such a wonderful job in planning. We had productive meetings throughout the day and we have had wonderful entertainment. I dont think we have ever had the opportunity to go to one place and see so many superstars as we did last night. Talent and history and theater. It was so much fun. Have hadnor and i quite the rivalry because he has invited a lot our oklahoma talent to perform. That is not sitting very well with me. We will work it out. Are happy to have a shared love of music and entertainment we appreciate the governor and tonight, we have another special evening in which we will be going to the hermitage and the wonderful Historic Place our past president s. We will have another oklahoma talent, Carrie Underwood playing. I raised them up and then he gets to have them for a while. Tonight, it will be an outdoor event. Be sure to wear something company cool because it might be able warm. I would like to thank our executive Committee Members that work very hard all during the year getting prepared for both the summer meeting and the Midwinter Meeting that we had in february. We want to start with our vicechairman of the nga. Think you very much. It has been a great pleasure to work with you. Tomorrow is your day to take over. It has been a lot of fun working with john. We have been to each other in whether itses, been on education or energy policy. That is what the National Governors association is about working together to try to find solutions that we can all agree upon. I want to thank our former nga , governor jack markel from delaware. Governor branstad. Some of these people have been in committee this point. Morning. Governor herbert, we appreciate. Governor scott walker, thank you very much for being on the executive committee. We appreciate them. I think i got an everybody. Thank you very much. Grateful that the Vice President came yesterday. We have been reading through the press clips this morning. If you didnt know how important governors are carnation in getting us back on track, its interesting to read the Vice President s headlines. D. C. Bemoans bitterness in we heard that yesterday. That was a lot of fun. Biden calls upon the nations governors to help end the era of poisonous politics. We are grateful. Vice President Biden asks governors to help during national trip. Once again calling upon the governors. Bident one more here calls upon governors to lead the nation. You like that, guys . I think thats pretty good. Its wonderful having the Vice President here. Here is another one. Biden to governors only you can save us. [laughter] [applause] we do have a lot of work to do as a nation. Thats why the National Governors association is about pulling both Political Parties together and having us build a stronger national economy. I want to start by beginning to talk about my chair possibly should have chairs initiative. Picking out a particular issue i t washt important. I chose education and training for tomorrows jobs. America works is not making significant improvements to our Education System and our Workforce Training Program and aligning those systems with the needs of business and our label or market. Its an issue thats critical to our states and economic success. It is certainly important to the United States and our nations economy. This is an Education Initiative and a workforce initiative, but also a jobs initiative. All of ouro help states achieve prosperity. It begins by recognizing some very Simple Truths. Todays world is more complex and is changing faster than ever. Since the time our parents were growing up, especially with technology and all the Ways Companies change so very rapidly and have to be able to adjust. Those changes are making new demands on students, employees, employers and our state leaders. Individuals need more education and work skills for todays jobs. Businesses need a deeper, more Diverse Talent workforce. States must make very targeted investments in the workforce make sure we are helping to spur economic growth. In order to be able to compete at the state and National Levels , we have to adapt to an everchanging economy. As governors, we are in the key position because we are response will for the Education Systems in our states and responsible for Economic Development. Responsible for creating jobs and a stronger economy in our state. We are uniquely positioned to be able to lead this effort and lead our nation back and build a stronger connection but when our employees and employers and industry. The leadership begins with starting to recognize the very Simple Truths and understand the challenges we face as governors. All, as a nation, we are losing ground internationally. Both terms of our students competitiveness and our workforce. It is not necessarily because we are getting worse, but because our competitors are moving ahead quicker than the United States. While we were once the world leader in student achievement for 15yearolds in our nation, reading,nk 20 thin 23rd in science and 30th in math among the 34 industrialized nations in the world. From 2012 are much lower than they were from the time of 2008. We have lost ground versus making up ground. We cannot expect to be able to lead the world in innovation and job creation if we cant keep up academically. Nor can we provide our citizens access to a middleclass life were beyond if they dont have access to good paying jobs. When i started this Initiative Last year, i shared with all of fewer jobs inthat our economy are available to individuals that only have a High School Degree. We talked about the importance of having more than a High School Degree to be able to compete. Listen to you just to this fact. Today, 35 of the jobs in our economy are filled by people with High School Diplomas or less. Did you catch that . Only 35 of the jobs in america require a High School Degree or less. Two thirds of those jobs will pay less than 25,000 a year. That is not going to lead one to a good living wage. Based upon these facts come im more convinced than ever that education beyond High School Degree is critical. People either need a twoyear degree, four year degree or some type of workforce training certification. That is now the new minimum of Educational Attainment level for a successful, good paying job in. Ur nation and in our states unfortunately, the u. S. Is falling behind. Failing ourare students and our citizens and we ourfailing our states and nation. Here are more unpleasant truths and challenges we face. Too many students still dont finish high school. Only 70 of our Public High School students make it to graduation. The percentage is much worse when you look at minorities or lower income students. Today, students who go to college or underprepared. Many of them have to take remediation courses when they begin their first year in college. Too Many Employers continue to tell us as governors that they cant find the employees they need to expand and grow their businesses and create those jobs. As governors, we have to create pathways to prosperity to the middle class on the notion that a post secondary education is no longer a luxury for some, but in in necessity to help our employers find the higher Skilled Workforce they need to be successful. For the American People to be able to achieve the American Dream and reach the middle class. Todays fastpaced world, those pathways have to be more flexible and have to be innovative and efficient. They have to be able to reflect of everchanging needs our nations economy. It will require us as governors working very closely with our leaderss and education and Industry Sectors and Workforce Training Programs and the private sector itself so that we can build education develop work skills that are relevant to todays jobs. Most importantly, we have to also be able to meet the needs of our students. And make sure were putting them on the right pathway. The challenge is very clear. The one that we face. Too few americans are succeeding in posting their education and to view of our students are graduate from high school careerd to enter into a or college self. We have some goals that are important if we are to continue to move forward. First, our states must continue to develop high academic standards. All governors are committed to higher academic standards to make sure that our High School Students are ready to enter into college or enter into a trade school or enter into a career without remediation by th. To help work on successful programs like complete College America in which we can have more degree completion in our workforce and be able to help our students and our returning adults who want to go back to school and better themselves and want to have a different type of career so they can successfully complete a degree or enter into some type of career Training Program that will lead them to better jobs. States are going to have to work very closely together. With education leaders, the private sector and Public Policy makers to close the skills cap. We hear a lot about the skills gaps we have in our nation. We want to better align our Education Systems to meet the needs of our employers. America works and its initiative is about identifying components that will help us reach these goals and attain these Different Things we need to reach. First of all, as governors, we have to be able to articulate a very clear message to our people back in our states. That connects education, connects the dots, basically. Kenexa results with our states economy. Connects results with our states county. If you dont know where you dont know where youre going, anywhere will get you there. We have to gather data and information and we have to know where we are. We have to track the progress itself and be able to measure the results so we can know that were are getting the results we need to have. We have to create highquality publicprivate partnerships. That is something great we have been doing all across the nation and you will see that in this report. We have to have more flexibility with our federal and state funding and our incentives we have and other resources we can better realign our education and Workforce Training Programs in the nation. Over the past year, my initiative, America Works, has brought together governors, education leaders, employers, Workforce Training Programs, Economic Development professional leaders, private sectors so we can spur innovation and have collaboration and have a National Conversation about how we can create the vibrant economy, more opportunities, raise up the middle class and give our children the opportunities they need so they can be successful. Here is the result. Over the past year, we have d 31onone meetings to talk about best practices that are already underway across our nation. E hosted to regional summits one in connecticut. Thank you very much for hosting the first summit for us. One in new mexico. I was also proud to be joined by governor herbert. Thank you so much for coming. We appreciate that. We released an interim report at the winter meeting that described to governors about the program itself and the benefits. Ae benefits of having i better educated workforce. Provided you with specific data and information so that you could look at your current Educational Attainment levels. Look at your Current Industries and businesses. We could identify those areas where we mismatched. Where we have a skills gap within our different economies. We also heard from one of our , the ceoin our nation duringame to speak to us our winter meeting. He articulated that we need a better educated Skilled Workforce in our nation. National summit in oklahoma city. We presented the various components for our comprehensive aproach so we could develop type line of workers for our states economies. I was very proud to be joined by governor branstad and governor nixon. Thank you very much for joining me in oklahoma city. We have had a very productive time this past year meeting with all of our various officials in bringing together all of our state leaders. It has been a great year on America Works. I frankly think it is probably one of the most important issues that our nation faces right now and were very proud of the tremendous work that the National Governors association has done on our behalf. Excuse me just a moment. Im looking for my next paper here. What i wanted to show you was the book itself. Each of you have a copy of this on your desk. It lists all the different components and has some great examples of what is being done across our nation. Thatnderful guideline will be helpful to all of us and im proud to present this to all of you and glad to have it. Fourbook also describes policy components and lays out the elements within each component that you can take and use as a guideline. Ideas you can implement in individual states. Provides examples and illustrates the best practices and offers guiding ideas and answers a lot of questions that policymakers have to help us be able to set priorities in our states. All this andlude introduce our speaker, i want to thank all of our foundations that have made America Works possible. It is a lot of work to put this information and data together and host the summit. Ge foundation, Carnegie Library of new york,. Ayer corporation, mattel all the foundations that provided financial support, expertise and help us be able to together iative helped us be able to put the initiative together. Finally, in closing this session , we have to have gubernatorial leadership. I can produce a report and we can have meetings across the nation. We hav can outline the steps and components, but its all up to you. Its up to the governors across the nation to be able to take this great information and learn from each other. It is one of my favorite things at this meeting. When the governors come together and they talk about what is happening in each of their inevitable states, individual states, we are doing great things as governors. This report proves that governors are taking the lead in crating jobs and opportunities and are focusing on education, Workforce Training Programs and listening to our employers across the nation that are telling us that they have job openings and skills gaps. Thank you all for your input and work on this report. We are looking forward to implement it. Implementing it. [applause] now, we are going to move on to the next session of our program. Steve. Like to introduce he is the group chief executive of north america for accenture. Thes is possible for overseeing of accentures business in the United States, which is the companys largest market. He is also in canada. He works to ensure that the Company Remains wellpositioned for continuous growth in import ant markets. To assuming his current position, steve served for five years as the group chief executive of the health and Public Service operating group. Under his leadership, they delivered doubledigit Revenue Growth in 2012 and 2013. Asween 20042009, he served companywideing national excellence. We are very fortunate to have experience not only is what we have been talking about all along, but actually it in thek on private sector. Lets give a National Governors warm welcome to steve. [applause] you. Ank we appreciate it. Im fromank austin, texas. We pride ourselves on life music. It after last nights show, i whos king. Im delighted to be here today to talk with all of you about the most Critical Issues we face as a nation. That is the battle for talent. Governor fallin, thank you for your leadership on the ngas initiative on workforce and education and congratulations on the progress you will have made in oklahoma. With your dashboard, you are providing a powerful example of how states can address the disconnect between supply and demand. With ok job match come youre helping show states how to improve the way job seekers are matched to jobs based on skills and competency, not just on job descriptions and resumes. It is leadingedge. I would like to recognize colorado as well for doing a great job with the blueprint that ties together agencies, businesses, education and workforce development. That kind of approach will be crucial to attacking the workforce challenges ahead and is exciting to see the progress being made. I want to wish you a bit further today on the topic of talent and workforce develop. I strongly believe this is one of the top three issues that each of u. S. Ceos of your states will be faced to address in the next 45 years. I want to talk about how accenture has dealt with this issue and what we have learned in the process. I want to recognize some states that are making progress and i want to share some strategies to help build on the efforts that you already have underway to help you attack this issue. Attack is the right word for what states need to do. Our companies, our communities, our states and our nation are in a battle for talent. One that none of us can afford to lose. This issue affects all of u. S. Leaders of your states all of you as leaders of your states. My message to you is this. No matter what you are doing or how well you think you are doing , you only have just begun. Chances are, you might not be doing enough. Losing the battle for talent will lead to diminished economic prospects for our states in our communities and ultimately it will result in a lower standard of living for people. For most of our history here in the u. S. , we could take talent for granted. We had plenty of it. In the future, it will be a scarce resource. Strategies that have worked in the past when talent was plentiful are not going to work in the future. As oklahoma and colorado and many states have shown, there are individual strategies and tools we can use in the battle for talent. It will take your leadership to put all of those strategies and tools together if we are going to win this battle for talent. Action,e dig into the lets ground ourselves and why we care about this issue in the first place. We may not know for certain the full economic benefits of focusing on this battle for talent, but we can be sure what is likely to happen if we dont make it a priority. Let me share some sobering findings from the research we have just completed. There is a draft copy in your seats. We will get the final one to you all as and as its complete. For decades, the u. S. Economy has produced sustained growth in our standard of living, allowing each generation to be better off than the one before. Shows that by 2030, our standard of living, instead fall tog could actually the level it was 15 years ago. In other words, the standard of living for the next generation could decline to what it was for the last generation. That way because of trends we are singing tree areas. Population, participation and productivity. The first trend is population. Not enough people who can work. The working age population is strengthening as a share of the total population. Are retiring and are not being replaced at the same pace. By 2030, the percentage of the 9 totion will shrink by the level it was in 1970. The second trend involves participation. Not enough working age people who do work. Participation among those old enough to work has declined. The decline is particularly pronounced among our youngest workers. Since 2000, the percentage of those of working age were actually working as defined by 7 . That was the lowest it has been since 1977. With the largest drop among young people aged 1624 years of age. The final trend is productivity. Not enough work productivity. On top of the population and participation problems, we are facing unrealized, unreliable growth and workforce productivity. Last 10 years, it has been below 1 . Productivity is critical because if we can improve productivity fast enough, even a shrinking percentage of people at work could generate enough Economic Activity to sustain a growing standard of living. As each of you as ceos of your states, you have to recognize that workforce develop and is a critical component of your business and a key element to running your state. For talent isn fierce. Everyone sitting in this room is competing to attract, develop and retain talent in your state. Lets be honest, those that do this well will have a competitive advantage. Those states that are able to consistently develop tools will be more successful in attracting businesses. Not only are states competing with states, but collectively, we are all competing in a Global Talent wholl. Level talent pool. Pool. Bal talent there are new countries ready to step into the fray. Countries in Southeast Asia and Subsaharan Africa will emerge of educated,s lowcost talent in the next 510 years. As a country, we have to address this head on. The u. S. Cant be competitive, global businesses are going to source talent from other parts of the world. Yes, there is competition between each of us in the room, but this is about american competitiveness on a global scale. We have dealt with this talent issue firsthand. From 103,000 to 177,000 people. At one point, we really did not fully recognize the Talent Management as a key priority in our business. I can tell you are talent strategy has never been more important. We now have more than 293,000 employees in 123 countries. 165 people per year. We have to compete every day to get talent we need and its only getting harder. Location ist the come every company is in a constant battle for talent. Businesses are constantly looking at and evaluating talent pools. 2006, we created a Delivery Center for Technology Projects to serve clients nationwide. We did Extensive Research and scouting around the country and we narrowed the selection to a couple of geographic locations. As valuation ran down the evaluation wound down, we considered the standard of living in the area and the labor cost and we looked at basic things like accessibility and how close the area was to a major airport. Ultimately, the deciding criteria was education infrastructure and our assessment of the continued pool of educated talent. In oregon, we are working with the indian reservation to help 100 E Technologies third owned i. T. Ican center that serves people across the country. We saw an untapped pool of talent and provided Business Training on an ongoing ba sis. What is true for eccentric is true for most businesses today. We are all in a constant search for those talent pools. If youre not spending money to develop talent pools that need employer needs. Wastingt as well be your money. The keeper states will be identifying those pools of matching them up with their capabilities and employer needs. Another, you have the opportunity to be that hinge that joins together businesses that are looking to partner. This battle for talent is just as important as managing your Health Care Costs or dealing with Natural Resources issues or focusing on revenue generation. We know that states that get it right will excel. Those that recognize this is an who take and those steps to aggressively attract and develop and deploy talent will be our countrys economic leaders. Those states that get it right will be the most competitive. They will attract both businesses and workers and those states that dont will increasingly find themselves falling behind. We have already seen some examples of states doing things right. Take new york. When they were trying to land global foundries, a leading manufacturer of semiconductors, the state had to show that its deep talent pool to meet the companys needs. A Research Organization called Burning Glass technologies used its analytic tools with the state employment system to pinpoint a talent rich location in upstate new york. That is where an 8. 5 billion dollar computerchip manufacturing plant is now under construction. Positive that realtime talent information can be a competitive advantage. Or take south dakota. They pulled together a workforce cap net of all agencies cabinet of all agencies. They bring together business, education and community members. Dashboard,s its colorado has its blueprint and minnesota has career onestop. Org. In every one of your states, you have taken important, but only initial steps to compete successfully in the battle for talent. We know the winners will be those states that do this challenge view this challenge as a constant journey and not a single destination. There is also some International Examples we can draw on. Take germany. They have acted aggressively on its talent strategy. 2000 three, germany faced and on implement rate of 10. 3 . Well before the great recession. At the time, the German FederalEmployment Agency was considered bloated and bureaucratic and the government set out to completely redesign their approach to labor markets. They wanted to move away from legalistic administrative agencies to performance driven organizations. They wanted to focus on meeting up lawyer demand, not just job seeker needs. They want to integrate job seekers into the economy as quickly as they could. Their ultimate goal was to become the most effective broker possible between labor supply and demand by bringing together a combination of policy modification, process changes and new technology. Within 36 months, germany lowered unemployment by 33 . Doubling the number of jobs filled per year. In the last five years, when most of the countries in europe experienced a fiscal volatility of the great recession, germany has had a relatively low and steady Unemployment Rate and the German Economy was the engine for recovery in europe. Oureed to be aggressive in talent strategy up we are going to win the battle. Interviewed we said am im spending hundreds of dollars on workforce develop and and i dont know what the hell im getting. That is as direct as you can be. That is the right talents. We need specific challenges that deliver clear outcomes and that has to be our northstar. Where can we start . We identified four strategies that we think governors can deploy now and win the battle for talent. Its about four things. Pathways, pipeline, and focus. This is about realtime information and insights into supply and demand of talent. Im not talking about jobs data. We have lots of data on jobs. Little information on talent. Lets start with a job, a welder. In virginia, over the last year, there were 1100 jobs posted to hire welders as defined by the standard job classification system. That is a healthy number. Be grossly understates the demand for talent in welding third our Research Partner identified that in the same year, there were 1100 and two anotherjobs posted and 3300 postings that required welding talent. The landscape for jobs in welding looks much different when you look at talent needs rather than just job titles. Consider in other job, computer programer. Most use a single classification for Computer Programmer. Hardly anyone hires just a Computer Programmer these days. Instead, they are looking for system administrators, network vaministrators, ja programmers or other skills and competencies related to computer technology. Imagine the Competitive Edge you you had analytics producing realtime information on the skills and competencies that are in demand. Another thing you could do with the uptodate talent information is assessed the degree at which your Education System is producing the talent that your economy really needs. Im not talking about whether you are getting the quantity of graduates you need. We have the data to answer that question. Im talking about using realtime information to assess whether or not your Education Systems are producing the quality of talent you need. When i say quality, it doesnt have to mean a four year college degree. This is about skills and capability. Example, has said publicly that they will hire people with the skills they want regardless of whether they have a degree or not. Businesses are increasingly skeptical about the value of degrees being handed out in our high schools and colleges and they want workers with skills, certified skills, not people with degrees. The second idea is around pipeline. Building reliable talent supply systems. Surveyedof employers in our research reported they had a great deal of access to job candidates with the right skills. This is especially important in your small and mediumsized employers. These companies are critical to your statehouse economy and , at a competitive disadvantage in the battle for talent. You can help them come together and combine the demand for skills and competencies and build supply pipelines with your. Ducation workforc Talent Pipeline partnerships like this can help address employer needs, especially in high growth sectors. We have seen how this can work with the business and Higher Education forum. Fortunede up of 500 ceos, college and University President s and other leaders. They solve the demand for qualified Cyber Security tofessionals grow from 2007 2013. Two times faster than all other Information Technology jobs. In response, they developed a program that enabled the business and Higher Education communitys to Work Together to recruit and prepare and lace low income and underrepresented minority students in Cyber Security jobs. Last month, the former cj Million Dollar grant from the the forum received a Million Dollar grant from the u. S. Navy. Past, business has been reluctant to come together like this. The past is over. The u. S. Chamber of Commerce Foundation is launching a nationwide initiative this fall to give businesses get businesses engaged in building s of talent supply. Ystems and are learnin the Business Community recognizes this. Businesses are more ready than ever to partner with governments that they can count on for the talent needs they have. Third is about what we call pathways. Every job seeker needs a personalized roadmap showing how her or his talents can be put to work. In a survey we just did, 46 of College Graduates reported they were underemployed and working in jobs that did not require their college degree. Another 13 were unemployed. No graduates and no job seeker for that matter should find themselves lost in todays job market. We have the technology and we have information to actually provide every job seeker with personalized roadmaps showing them implement pathways that are open to them given their individual skills and competencies. These roadmaps show jobseekers what they could do with their skills based on what others have done. They provide realtime information on how to navigate from job the jobs marketplace. How to get the skills and competencies they might need for the next job they want. How does that happen . Company that has built an inventory of millions of resumes that allows them to look at the skills and competencies of an individual and tell them what path others with those same skills and competencies have already taken. This really opens up the world of possibilities for jobseekers and get them to think about the full range of possibilities open to them. Also show pathways them what skills they will need to require the next job to acquire their next job. States need to focus on outcomes. The federal government operates 47 different workforce programs with budgets of more than 18 billion annually. These programs drive funding at the state level. Within states, multiple departments and agencies have their own funding to make their own decisions and implement programs across state, regional and local levels. Individually, any of these programs may be great. Collectively, they dont add up to a winning strategy. It now is the time to get all of these programs and funding streams focused on a small set of central outcomes. One outcome we should start with is raising the standard of living. The workforce innovation and opportunity act was just passed this week. It gives you greater ibility toand flex abilit do that. It recommends establishing a lineves to increase between education and the workforce. Those are great ideas. Building on those recommendations, you could also develop a single measure of return on investment for workforce and talent spending. You could use this to compare programs and also to show taxpayers the value of those programs. ,ou could create a unified enterprisewide budget for workforce and talent related programs. This would include workforce development, employment coming Human Services and education. It used that budget to get the greatest return you can. Creating annsider executive level coordinating role. The bottom line is that states with an integrated and unified approach to talent, focused on a single outcome of increasing the standard of living will be better equipped to compete in the battle for talent. Ultimately, its about four tools. Analytics, pipeline, pathways and focus. Where and when do you start . Youru bring together secretaries and commissioners involved in workforce and talent agenda, ask them a few questions. What is our states talent strategy for the next 35 years . How will it meet the skill and competency needs of our economy and ensure our future prosperity . How will we get realtime information and Analytic Insights we need . How will we assure employers that we have pipelines to the talent they want . How will we provided jobseekers with roadmaps showing the possible pathways for putting their talents to work . How will we integrate and focus all that we do on a single set of outcomes . Let me make one prediction. They will tell you weve got this covered, weve done a study, we build a strategy, weve deployed programs. While they may be doing a number of good things, they are probably not doing enough and they are not getting the results to convince people that you are winning the battle for talent. 72 of the survey, respondents said they were very skeptical that government was acting fast enough to meet future employment and skills challenges. Isting those challenges tough. We learned the hard way at accenture. In a difficult journey before we found a way to get it right. I personally experienced the boom and bust of the economy and it became Crystal Clear that we needed a more aggressive approach in finding and hiring talent. We needed a town strategy talent strategy that was second to none. We have a threeyear plan outlining steps to become more successful at securing the talent we need. We have analytics that forecast our needs across our business and we have a recruiting organization that is constantly challenging themselves to get the best evil on the planet best people on the planet. Thatstate might consider kind of tenacious, lead from the top focus and commitment to talent. Start with a strategy that clearly spells out how your state will attract, develop and deploy talent in a meaningful way beyond the town strategy. The talent strategy. On your workforce and talent programs. Pick up the phone and ask the tough questions about where the money is going and why. Find out how your programs and budgets align to that strategy. Winning the battle for talent is every bit as important as other key issues like health care, Natural Resources and taxes. Its crucial to your states prosperity. When states make real headway on workforce issues, i believe they will see economic expansion well beyond the average. State, make those calls on monday and asked those challenging questions and dont accept quick, easy answers. When it comes to talent, there is no quick, easy answer. Thank you very much. [applause] thank you, steven. That was great information and we appreciate you sharing all that. I was thinking about all the different steps he went through, i think it matches up with what governors are doing right now. Whatovernors want to know and lawyers need as far as talents and work skills. You have certain things you need within your company. A different industry might have different skills they need. What is the best way to get that specific information from you . We talked to the Energy Sector in the healthcare sector, manufacturing sector. How do we get those specific numbers and our companies willing to share our companies willing to share that information . Think companies are increasingly willing to share that information. They are because they dont have a choice. Not, they are probably already on the path to moving their business elsewhere. I would suggest that if a company is not willing to share that information with you, they have already developed a talent strategy that will move their talents to another state were up shore. Or offshore. Different very d industries. The way to start is from an economic standpoint to topdown what are the industries and what is the primary industry that your state is focused on. Our energy guys in oklahoma are moving into oklahoma city. They say we need energy talent. You dont need Financial Services or any of this. That is where they are focused. I suspect that most states could prioritize two or three areas where you could focus on specific industries. I would not walk by the challenge of aggregating Small Business and Medium Business talent needs. E moreit might b fragmented, having something focused on aggregating their needs and giving them a chair and voice at the table can go a long way toward retaining that talent. That is probably the fastestgrowing segment of business in any given state. Governor nixon. Thank you for your focused presentation today. I would hope that you and other significant leaders in business would continue to press our community with the same level of focus we have here. All of us are trained to get our college is thinking more about directly tying into business as theoretical way that often Times College campuses and the paneling their duties end up handling their duties. It helps us in our context. Talk to us for a second about wage rate, compensation, things of that nature. You talk about educated low cost talent. There are a lot of folks trying to figure out how to make money and raise a family and make more money later and all that sort of stuff. From our perspective, its that initial cost that we deal with. The people in the Talent Pipeline are focusing on getting more economic dependence as they move through that pipeline. Economic independence as they move through that pipeline. In there we going Pension System and all that stuff . How much are we going to pay these folks . Great question. Wage determination is tied in a business context specifically to skills that are needed and in demand and are possessed by those people. A pipeline of potential workers is focused on increasing their iman Capital Value how do as a person increase the value i am going to bring my employer versus just coming in and being trained on the job . As an employer, i value that a lot more. People talk about the manufacturing environment in the u. S. In the last 10 years, it has moved to a technology environment. Of manual manufacturing are done in vietnam and they are done in china and they are done elsewhere. The reason those jobs are coming back is because we have been able to supply the manufacturing world with hightech, educated people that work on the factory floor. 20 years ago, that did not exist. We have to understand that there is a direct correlation between wages being paid and the talent level of that person. We have to constantly push that talent level to be more relevant to what employers really want. If employers see hightech manufacturing as Computer Systems skills, we have to move the talent coming out of high school in our Community Colleges in that direction so you have that pool of talent. Then, you have a fair wage for fair skill. Senator walker. Just to followup on governor nixon. The four things you outlined in this report are pretty consistent. I was thinking, it really is focusing on ways we need to do a better job connecting the skills to people who are looking for a job or are looking for a better job, the skills they need to match up with the jobs that are open or will be in the next few years. Those four things are keys. When you started out with is one part of it. Maybe a suggestion is you talked about the dropoff in the future. The things that we mentioned that are connecting people currently looking for work or a better job or the skills they need that still does not fully address the dropoff will occur in the next three years of people who just are not there, whether they are trained or not. Weuggestion i would make, have talked about these things in the past. We have talked about three categories. Military personnel. We have about doubled the Unemployment Rate among military personnel coming back from iraq and in a stand and places like that. Tremendous opportunity for people on the assignment. It is more than just the skills we have. Secondly, people with disabilities. I know jack talked about this last year. We have a better bottom line in our state. Theres a tremendous opportunity to take people who are currently at the sidelines. There is a disconnect between matching their unique abilities into the workplace. Often, they are overlooked in terms of workplace opportunities. The third group , when the nga90s was involved with welfare reform, they granted a waiver for childless adults when it comes to things like food stamps. We just opted out of that waiver. This past year, it is costly. It cost us about 17 million. There are 46 states that still have a waiver that do not take that. That is because you have to pay. You have to pay for employability skills. Groups like that people who are temporarily on government assistance, ways to transition into the workplace those are groups like and help to move your chart up there of people who will be in the workforce the future. Great observation. We talked about this before. The recession started with a number of the nga staff. I think you have to crawl before you walk here. Sf you go back to two industrie that have gone on similar journeys you look at Financial Services and retail. Both have kind of gone through a very fragmented, data rich in iron man. Environment. They apply analytics more aggressively to get predictive information. Getting predictive information is going to be a 1020 year journey. We have to identify the pools and stand up first to get the busy and then become predictive with where we believe is mrs. Are headed and what their needs are. It is going to be a 23step process. This is a 1020 years journey. You do not have to look any further than industry to see how they have evolved over time. Thank you. Governor herbert . Thank you. Thank you for being here and talking about an important issue. I had the opportunity as governor of utah to meet with many of the ceos in our state. We meet with different sectors of the economy, try to stay in touch with what their concerns are and what we are doing right and what we can do better. Clearly, as we talk about the Talent Pipeline, that is probably the number one issue for entrepreneurs in utah. Were trying to address that issue with education, skill gap. Areas where we are trying to improve that and minimize the impact. Things that we really need to have better handles on. I looked at your challenges in your book here. Let me challenge you on a couple of areas, if i could. Is job seekers not finding the jobs that they want. I understand there is that challenge. Do not look to government for help. Is that many look to government for help. We have the department of workforce services. With identifying where they are lacking in guilt, help them get back to school, Community College, vocational training. We have a significant our reach with our veterans. I expect it to be no different than many other states here. My point is that there are many people out there who look to government to help them get back into the workforce. Is that employers cannot find the skills they need. That is what we have observed. Then they say do not look to government for help. My experience has been that they do look to government for help. Theyre putting increased pressure on us to improve education, decreased the skills gap, have better alignment with what theyre looking for. We have custom fit programs were businesses and manufacturers say we need to have help for specific needs. Can you put some together . Some kind of experience to help train employers. We have to have some custom fit work. We look to government for help. I do agree with your last point. Were are very skeptical about Government Acting fast enough. Many are doing their own thing. They do not think the Government Act fast enough. Maybe not as effectively or efficiently. I do think that theyre looking to government. What am i missing here . At least in my experience, i think people are looking to government sometimes even too much. Yeah. I think you would have to segment the populations we are talking about, governor. The people who are looking at him leaning on government for help are the underemployed and unemployed. I think they will be a different segment than the college graduate. Are out on monster. Com every single day just looking for jobs. Those people are coming to government for Unemployment Insurance or unemployment benefits. At least in our experience, so far. Maybe that is different. If you look at the less skilled and less educated, they absolutely are relying on government. Thehave to talk about segments of the population we should have been more specific about who they still rely on in government. Point taken on that. On businesses not relying on government, i would tell you the same thing. There are a lot of businesses that will meet with government. , i have 60 rant turnover in my bar or restaurant, i am not going to government to ask for help in terms of developing new skills. That is just not going to happen. I will continue to go out and use any resource i can to replenish that talent when i need it. So, i think businesses have started a dialogue. I think the larger businesses really want to source talent in the United States. I know that for a fact. We personally hire 5100 people per year off of college campuses. And another 6000 in the u. S. Just from experience in the market. We want to source our talent. The talent that we have is just competing and finding it in the marketplace. If businesses are willing to have a dialogue, we have to connect closer. We have to connect them closer and actually tied at in. This is where you guys can step in. If a Senior Business person senses that there is a commitment from the top of the state to really change and put change on the table and do some creative innovative things, trust me, that partnership will form and will flower. Thank you. Thank you so much. Lets give them a big round of applause. They give for the big information. [applause] you. Ank your information was very timely today. Great information. They give for giving us a guide of what you have seen. Now, i am very pleased to call upon the governor, who is going to talk about our next meeting for the nga and 2015. Governor . Thank you. It is my pleasure to bring you uptodate. Hard,e been working very working with governor hassell and his team down here on how they put together this years nga event. So, we are in the process of getting things going and we invite everyone to start making plans to come to west virginia. This is the First Time Since 1950 that we have hosted the nga. We are very excited about it. The venue will be the greenbrier resort. Known to many as americas resort. If you have never been there, it is worth making a trip for. We promise not only a great meeting venue, but also accom adations are outstanding. Look ever new york families with you. It would be a shame to spend all of our time in meetings and not able to enjoy the resort. 2326 next year. I do not know if you have noticed, but we have the booth set up with information. Many of the governors have already requested to start blocking rooms now. Especially if you are bringing families, you might need special accommodations with adjoining rooms and so forth. Now would be a good time to start planning that. Just put that on your list. We will be talking about that at the winter meeting as time progresses. The time will fall right in between the greenbrier classic pga event and the new thing happening the greenbrier has a connection with the new orleans saints. They are bringing their practice to west virginia. That is a little bit different for us. They will, right after we leave. There will be several events going on the same time. Just are making your plans. We will welcome you with open arms. We promised you a great visit to west virginia. Thank you. [applause] thank you, governor. Beenny of you who have not to greenbrier, it is a very special place. Absolutely gorgeous. A lot of fun things to do there. We look forward to coming to your state. Our next session will begin at 12 34 the governors only. Governors, if you will prepare for that. We will have Committee Meetings this afternoon. Tonight, we get to go to the hermitage and see president Andrew Jacksons home, and also hear a famous oklahoman, Carrie Underwood, who now lives in tennessee. Governor, i am still hounding you about that today. We will have Great Entertainment tonight. Thank you. It has been a wonderful meeting. We are turned. And we will have more later today from the nga summer meeting, focusing on strategies to help veterans find work written jay nixon and rick snyder will leave that discussion. There is a chair and vice chair of the Homeland Security and Public Safety committee. We will have that live at 3 45 eastern time here on cspan. Session, joedays biden addressed the governors. The headline caning governors, only you save us from political gridlock between congress and the white house. The Vice President called for congressional action on Infrastructure Spending and workforce training. And he praised democratic and republican governors who started a special program in their state. You can watch his appearance from yesterday in our Video Library at cspan. Org. Pictureoy tweeted this of himself with the Vice President after they met during a discussion about Work DevelopmentTraining Programs. And in Arizona Governor was sending out this picture of herself with the Vice President and the message, or border state securing. More about Border Security tomorrow on newsmakers, when an arizona congressman will be our guest. He talks about laws aimed at stopping Human Trafficking and weather Gang Violence is forcing families in Central America to send their children to the u. S. Heres some of what he said. I think there is truth to that. There are efforts by organized syndicates, like the cartel or gangs families. Entice we will get0 and your kid to a safer zone. There is a false promise that once they crossed the border, that safety is there. That is not the fact. That is manipulation. E