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Budget would expand job-development assessment to large nonprofits to fund Real Jobs initiative
Summary
Article 1 would apply the 0.21% job development assessment to nonprofits with 500+ employees, generating an estimated $2.6 million for workforce programs, principally Real Jobs Rhode Island; witnesses said about 20–30 employers would be affected.
The committee reviewed a proposal to expand the job-development assessment (the 0.21% payroll assessment) to nonprofits with 500 or more employees to generate new revenue for workforce programs, including $2.3 million proposed for the Real Jobs Rhode Island initiative.
Administration witnesses said the change would affect an estimated 20 to 30 employers and produce about $2.6 million in additional revenues, primarily for Real Jobs and partially for core unemployment services. Brian Daniels said the change is intended to broaden sustainable funding for workforce programs and make participating employers contributors to the system that supports training and workforce development. The administration noted similar proposals were made in prior years but not enacted.
Witnesses from commerce and workforce offices described Real Jobs as a targeted training program that partners with employers and training providers; the committee was shown participation and funding data for past cohorts. Committee members asked whether large nonprofits already participate in program services; witnesses said some nonprofits do participate but do not currently pay the assessment.
No formal decision was taken. The committee requested more detail on the list of affected employers and the projected distribution of funds between workforce-board programs and core UI services.
