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San Antonio's Ready to Work program seeks $42.9M for FY2026; council approves $5.87M in OJT/IWT contracts
Summary
City staff briefed council on the FY2026 Ready to Work budget and recommended new contractor selections; council voted to approve on-the-job training and incumbent-worker training contracts totaling up to $5,873,760.04 to support employer hiring and upskilling.
City staff presented the FY2026 operating plan for the San Antonio Ready to Work workforce initiative and asked the council to authorize a set of on-the-job training (OJT) and incumbent-worker training (IWT) contracts.
Staff said the Ready to Work initiative has placed more than 2,200 people and enrolled over 11,300 in education and training since inception, and that the FY2026 proposed budget totals $42.9 million. The program funds tuition, case management, emergency assistance and employer incentives tied to training and hiring. A city staff ROI study cited earlier projections of economic return; staff said the program continues to track outcomes via a public dashboard.
As part of the briefing, staff described a recent solicitation for intake, assessment and case-management providers and recommended contract awards for Hallmark University and Goodwill Industries of San Antonio to provide training and case management services (selection and negotiations in progress; contracts to be considered May 29).
Separately as item 5, the council considered and approved contracts authorizing OJT and IWT awards up to $5,873,760.04 to 75 employers. Staff said the recommended awards would support training for an estimated 2,516 workers (new hires and incumbent employees) and that awards were structured to reimburse employers after hiring or training. Staff highlighted small-business participation and said the OJT awards require employers to pay at least $20 per hour to hires supported by the program.
Council members and employers at the meeting emphasized the program's focus on placements for historically underserved groups, including justice-involved persons, military-connected individuals and those with low household incomes. Presenting employers and nonprofit partners described cases where employer investment and employer-sponsored training led to high retention and career advancement.
After discussion, the council approved item 5 authorizing the on-the-job and incumbent-worker training contracts; staff noted the program will continue to report placement and wage outcomes to the council and on the public dashboard.
