CED

July 2014

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Groundwork OFFICERS Chairman A. ROY KERN Equipment Corporation of America Coraopolis, Pa. Vice Chairman DENNIS VANDER MOLEN Vermeer MidSouth, Inc. Jackson, Miss. President BOB HENDERSON The AED Foundation Oak Brook, Ill. Treasurer JOHN D. CRUM Wells Fargo Equipment Finance Pittsburgh, Pa. Immediate Past Chairman CHRISTOPHER PERA Highway Equipment Company Zelienople, PA AED Board Representative WES STOWERS Stowers Machinery Corp. Knoxville, Tenn. Executive Director STEVE JOHNSON The AED Foundation Oak Brook Ill. DIRECTORS GARY BRIDWELL Ditch Witch of Oklahoma Edmond, Okla. JOHN COSGROVE Central Power Systems & Services, Inc. Liberty, Mo. MIKE HAYES Komatsu America Corp. Rolling Meadows, Ill. TIMOTHY KRAMER Kramer Ltd. Regina, Sask. DR. WAYNE LONGBRAKE Former Dean, Penn. College of Technology Williamsport, Pa SONJA METZLER Ohio CAT Broadview Heights, Ohio DAVID REILLY John Deere Construction Equipment Moline, Ill. KENNETH SILVERMAN Volvo Construction Equipment Shippensburg, Pa. MARK TEEL Caterpillar, Inc. Peoria, Ill. M. KEITH TIPPETT Kirby-Smith Machinery, Inc. Oklahoma City, Okla. 12 | www.cedmag.com | Construction Equipment Distribution | July 2014 We continue to hear about the mismatch between job openings and quali- fied people to fill those positions. But talk is cheap. Funding tells the real story. The Perkins Act provides funding to inte- grate academic and technical instruction. Perkins funds supplement (not supplant) the educational programs generally offered with state and local resources. From 2002-2011, the Perkins Act was essentially flat-funded at $1.27 billion each fiscal year. In FY2011, Perkins funding was cut by $140 million, an 11 percent reduction to $1.13 billion. In FY2011, Tech Prep, a Perkins-funded program for connecting secondary and post secondary CTE programs was eliminated ($103 million), and basic state grants were reduced by $37 million. In 2013, budget sequestration cut Perkins funding by another 5 percent or $58 million. Congress held hearings on Perkins Act funding in 2014; the approved legisla- tion provided an increase of $53 million for Perkins, to just below pre-sequestration levels. For 2015, the Association for Career Technical Education (ACTE), told us the "ask" from the CTE community to Washington legislators is a $5 million increase that brings funding fully back to pre-sequestration levels. State education funding has fallen, and 44 percent of total U.S. educational spending comes from state funds. In FY2014, 34 states now provide less per- capita funding than in 2008; for 13 states, reductions exceed 10 percent. In several states the cuts are more than 20 percent. In 15 states, funding continued to fall in the latest school year. There is more conversation about CTE and the skills/jobs gap, but it hasn't been translated into government initiatives and funding. The minimal "ask" for 2015 funding tends to confirm that status. What Can You Do? There are no easy solutions, but compa- nies needing employees with technical skills and knowledge, such as service technicians, need to develop their "hiring pipeline." Get the facts on what is happening with CTE funding. On ACTE's website (acteonline.org) you will find a summary of CTE funding for each state. Make your voice heard on the impor- tance of funding career and tech- nical education with federal and state legislators. Contact them using AED's Government Affairs website (www.aedaction.org). Lastly, support your local diesel/equipment technology high school and college programs. They need your help serving on advisory boards and committees; your input on curriculum; information on internships, loans, schol- arships, and mentoring; procurement of equipment for education such as parts, simulators, training boards and other training aids; student recruitment activities and more. The success of various AED local dealer groups demonstrates what can be done where there is a commitment to technician education and recruitment. Contact Steve Johnson at (630) 468-5134, sjohnson@ aednet.org if you want to do more than just talk about the problem. Turning Talk into Action on Career and Technical Education Funding Funding cuts show a disappointing lack of legitimate government support.

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