LEO officials outline department structure, workforce programs and oversight role

The Oversight Committee on State and Local Public Assistance Programs heard an overview of the Michigan Department of Labor and Economic Opportunity on the department—s structure, programs and how it coordinates workforce and community development across the state.

The presentation, delivered by Jayshanna Hicks, director of legislative affairs for LEO, and Jonathan, Senior Chief Deputy Director of LEO, summarized the department—s 2019 reorganization, the offices and type 1 agencies housed under LEO and how those entities collaborate with local partners such as Michigan Works agencies to support employment, training and community development.

LEO officials said the department was created to increase collaboration among agencies that support economic opportunity. "We—re focused on expanding opportunity and prosperity in every corner of the state, from rural towns to urban centers and everywhere in between," Jonathan said, describing how workforce, economic development and housing work are aligned under the LEO umbrella.

Committee members were given an organizational picture that included the Michigan State Housing Development Authority (MSHDA), the Michigan Economic Development Corporation (MEDC), the State Land Bank Authority and the Unemployment Insurance Agency (UIA). Jonathan said many of LEO—s offices are organized under three primary offices—the Office of Employment and Training, the Office of Labor and the Office of Prosperity—and that the arrangement is intended to reduce duplication and improve coordination of federal, state and local programs.

Committee questions focused on eligibility rules and program connections. Jonathan clarified that unemployment insurance benefits are designed for people who are not working but who must actively seek work to qualify; workforce training can be available to unemployed claimants who need skills to obtain better-paying jobs. He also confirmed that the MiSTEM Network works with local school districts and intermediate school districts (ISDs) to develop curriculum, but said he would follow up on whether the MySTEM Network directly places students into workforce training after graduation.

Members praised the Pure Michigan Talent Connect website and Michigan Works partnership as tools for job matching and employer outreach; Hicks and Jonathan described Michigan Works as the local delivery system for the federal Workforce Innovation and Opportunity Act (WIOA) funds that LEO administers to support local workforce development.

On oversight and staffing, Jonathan said LEO employs about 2,000 staff across its agencies and bureaus and emphasized a hybrid governance model: some entities are cabinet-level (appointed by the governor) while type 1 agencies operate with governor-appointed boards. He described the benefit of shared strategy across agencies even where operational control differs.

Committee members asked for follow-up information requested during the hearing, including (1) whether MiSTEM provides direct workforce placement after students graduate and (2) a breakdown of which LEO positions are board-appointed versus civil-service or executive hires.

Votes at a glance: Representative Kara moved to adopt the April 24 meeting minutes; the committee adopted the minutes by unanimous consent. Representative Cara moved to excuse Representative Wooford; the committee approved the motion by unanimous consent.

The committee concluded the item after roughly an hour of presentation and Q&A and moved to the next scheduled presenters from the Office of Global Michigan and the UIA.