Budget proposal eliminates dedicated funding for student workforce program

Workforce development leaders in Indiana say potential state budget cuts could threaten the future of programs that support students.

The latest version of the budget removes dedicated funding for the Jobs for America's Graduates program. In previous years, JAG has received its own line in the state budget. Any potential funding for JAG in Wednesday's HB 1001 proposal would instead come from the Freedom and Opportunity in Education fund.

Indiana's JAG programs are funded through federal sources; Temporary Assistance for Needy Families, or TANF; and state funding, which covers majority of the program's budget.

Tony Waterson is president and CEO of Southern Indiana Works, a workforce development organization that operates several JAG programs in schools. He said under the current budget proposal, there is no guarantee that JAG will be funded.

"We would be forced to cut programs ... that's around 8,000 current students," Waterson said.

JAG's staff would also be impacted by program cuts, said Waterson.

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The final version of the state's budget allocates $50 million annually to the broader education fund. The Indiana Department of Education is responsible for divvying up that pot of money for things like JAG, dropout prevention programs and teacher recruitment, among other things.

Last year, Indiana's JAG chapter announced plans to double the number of programs in the state from 125 to 250 by the end of the 2024-25 school year. They reached that goal before the beginning of this year.

Last school year, 97 percent of JAG Indiana participants graduated high school, which was nearly 10 percent higher than the state average. The JAG class of 2024 accumulated more than $20 million in scholarships.
 

Timoria is our labor and employment reporter. Contact her at tcunningham@wfyi.org.