Training is expensive. No matter what strategy you have in place, help with costs would be great. One type of help is state training grants. Most states have funds available for the specific purpose of training employees. What is involved in obtaining state funding, how can you get it, and what are some of the challenges?

Give and Take

When seeking state funding for training, it’s important to know that each state is different in terms of what it offers, application procedures, and what the money can be used for. Most states offer money in return for something that will benefit the state in the long run, such as expansion of the employment base, development of a high-tech business environment, or creation of hiring opportunities for disadvantaged individuals.

State training grants take many forms, such as full/partial reimbursement of employee salaries while training, payment of trainer fees, reimbursement for non-durable training supplies, and training services provided by a local community college.

Where to Seek Funding

There are many avenues to obtaining state funding. Your state economic development organization is a great place to start. They are responsible for creating a prime atmosphere for business growth, so they’re happy to work with employers to that end.

Community colleges are also a great resource. They understand the grant process, are familiar with available opportunities, and may even serve as a liaison when it comes to the administration of the grant.

You might also work with a third-party broker. Ideally, you’ll want a specialist that knows, in detail, what opportunities are available in your state, as opposed to a grant-writing generalist. The specialist can do the necessary research and advise you about which funding opportunities you’re most likely to win. In exchange, a third-party specialist will require a fee, usually in the form of a percentage of the grant money.

What to Expect

While a state funding windfall to augment your existing training strategy may sound like a dream, be aware of the realities involved. Navigating the state grant application and administration process, and the state regulatory structure that supports that process, can be very complex.

Working with a community college or third-party broker who is familiar with the process can help. However, you will still need to provide them with details about your intentions when applying for the grant, and your actions once the money has been secured. To ensure grant money is spent as intended, the state will require details regarding how much was spent, what was bought, who was involved, how much time it took, etc. Detailed reports must be pulled from your learning management system (LMS) or other sources, even if you are working with a third party to actually do the paperwork.

Opportunities and Challenges

If your organization spans more than one state, you will probably need to enter into separate funding agreements with each state. Agencies are only interested in paying out funds if it benefits their state. You may want to explore funding opportunities only within the state that has your greatest concentration of employees. 

Also, you’ll want to apply as soon as possible when the new state budget year begins, since funds are typically limited and are granted on a competitive basis. Once granted, the agreement is typically very specific regarding who will be trained and on which topics. In other words, your training plan must be crystal clear. 

Finally, keep in mind that your receipt of funding will be a matter of public record and therefore open to public scrutiny, at a time when there is much sensitivity to acts of “welfare” for big business. As a good corporate citizen, you’ll need strong internal controls on the use of such funds. Any misuse could subject your company to legal action, and that will also be a matter of public record.

A Worthy Endeavor, When Well-Informed

No doubt, using state funding for training is a great way to heighten employee skills, launch major initiatives, and have a positive impact on the bottom line. The process comes with challenges that must be overcome before the advantages are realized. However, with the information above as a guide, you’ll be on your way to a win-win partnership with your state.

Tim Shirley is the director of talent management & organizational development at Advanced Technology Services.