With over 40 million Americans completing college credit without earning a degree and more than 2.2 million adults seeking employment, state public higher education systems and institutions are more closely integrating workforce development goals into their missions.
Community colleges perform a key role by providing degrees and credentials aligned to workforce needs, and state policymakers continue to support these goals through adjustments to state financial aid programs and expansion of career-ready programs. Recent state actions to address workforce development include aligning and integrating workforce systems, supporting nondegree credentials and creating so-called one-door models for workforce and social services.
Several states are transforming programs and agencies to work together on education and workforce goals. In 2019, Missouri restructured the state’s workforce development systems under the merged Department of Higher Education and Workforce Development. The same year, Arkansas (SB 522) organized a statewide workforce development system and began cataloging nationally recognized credentials. This year, Maryland (HB 1244) expanded collaboration between departments on workforce data and the identification of workforce needs related to postsecondary education.
To consolidate workforce agencies, Connecticut formed the Office of Workforce Strategy in 2020, and Virginia (SB 1470) last year created the Department of Workforce Development and Advancement to coordinate the more than 1,500 existing workforce programs. The department integrates efforts previously spread across over a dozen state agencies and 23 community colleges.
To connect learners to available state programs, California (AB 2033) required that basic needs resources be updated and available to students. States are using one-door models to help students navigate state and federal public benefits by working through a single entry point and with a caseworker. Utah integrated over 50 services under the state Department of Workforce Services as part of the model, emphasizing a work-first approach. The department identified the unified structure of the model as improving customer service and funding efficiency for public services.
States currently considering the one-door model include Texas (SB 2315, 2023), where lawmakers created a task force to integrate programs under the Texas Workforce Commission and the Health and Human Services Commission. Similarly, a Louisiana task force created by Gov. Jeff Landry (JML 24-44) recommended a one-door model to integrate services under the Workforce Innovation and Opportunity Act.
To support workforce goals in higher education directly, states are incorporating nondegree credentials into postsecondary planning and funding. In 2020, Louisiana required that nondegree credentials lead to occupations that maintain a 20% wage premium over a high school diploma. Delaware created the Elevate Delaware Program in 2021 to cover students’ direct program costs or basic living expenses up to $10,000 while enrolled. Colorado lawmakers (HB 1340) recently created a state income tax incentive for credentials in targeted workforce areas.
By broadening financial aid options and identifying valuable credentials, states are supporting workforce needs and community college goals. Lawmakers continue to address workforce development by changing the structure of state agencies, simplifying student access to state programs and including nondegree credentials in higher education goals.
For more information, see NCSL’s Postsecondary Bill Tracking Database and the Nondegree Credential State Policy Framework
Nyssa Galatas is an intern in NCSL’s Education Program.