LEO officials outline $510M workforce budget, request targeted state investments for apprenticeships, Going Pro and barrier-removal supports

The House Appropriations Subcommittee on Labor and Economic Opportunity heard a presentation March 19 from the Michigan Department of Labor and Economic Opportunity (LEO) on the state's workforce development system and specific program outcomes and FY26 funding requests.

LEO deputy director Stephanie Beckhorn and legislative director Jayshanna Hicks told legislators the fiscal year 2025 workforce development budget totals just over $510,000,000, of which roughly 81% ($413,000,000) are federal dollars that come with statutory and regulatory conditions. Beckhorn said about 13% of the budget is state general fund general purpose dollars (just over $68,000,000), and that roughly 80% of that state share supports the Going Pro Talent Fund.

Why it matters: LEO framed the request as targeted, gap-filling state investments that complement federal Workforce Innovation and Opportunity Act (WIOA) and Wagner-Peyser programs administered through local Michigan Works agencies. Committee members pressed LEO staff on how programs translate to employer demand and which gaps require state funding rather than federal support.

Key programs and outcomes

- BREEZE (Barrier Removal Employment Success): Beckhorn said BREEZE supports workers who earn too much to qualify for federal programs but still face obstacles to keep or obtain employment (transportation, childcare, licensing). She cited program outcomes from September 2021 to June 2023 for about 4,000 participants: one quarter after exit those who received BREEZE payments were 12 percentage points more likely to be employed than peers who did not, and four quarters later the difference remained about 8 percentage points. Beckhorn said first-quarter median wages for participants were nearly $7,000 higher than before services.

- Registered apprenticeships: Michigan ranks among national leaders in registered apprenticeship completions and active apprentices, Beckhorn said. She noted that 93% of registered-apprenticeship completers remain employed one year after completion and that one-year post-completion median wages exceed regional medians. The FY26 request includes approximately $19,000,000 to expand registered-apprenticeship capacity and support over 1,800 residents and more than 130 employers, the presentation said.

- Jobs for Michigan Graduates: Beckhorn described the dropout-prevention and recovery program, operating in about 126 sites across Michigan and serving roughly 5,000 youth annually; participants have about a 90% graduation rate. The FY26 budget request includes $5,700,000 to continue the program.

- Going Pro Talent Fund: LEO described the competitive employer-facing program that reimburses training costs and emphasizes short-term, credential-bearing training tied to regional median wages. Beckhorn said the administration's FY26 recommendation includes a Going Pro request in the range of $54,800,000. LEO reported that in the most recent year it awarded about $63,100,000 to just over 1,200 employers and supported roughly 37,000 individuals; the presentation also stated historically the program has served 220,000 businesses and that 90% of awardees are small employers.

Federal funding and local delivery

Beckhorn emphasized that most workforce programs are federally authorized (WIOA, Wagner-Peyser) and are delivered by local Michigan Works agencies, community colleges and non-state providers; LEO retains a small direct-service staff for veterans' services and migrant seasonal farmworker support.

Committee questions and clarifications

Members asked how LEO identifies employer skill needs. Beckhorn described a hands-on, employer-facing approach: state staff and Michigan Works partners ask employers to identify their "best employees" and document credentials and experiences those workers possess to design customized training and credentialing pathways.

Rep. Van Werkom and others questioned overlap with Department of Health and Human Services and other programs. Beckhorn said BREEZE is intended to fill gaps where participants neither qualify for WIOA programs nor for HHS assistance and that LEO strives to avoid duplication.

Formal action at the start of the session

At the meeting's opening Rep. Martis moved to approve the minutes of the March 12 meeting; the chair noted there were no objections and the minutes were approved by unanimous voice consent.

What was not decided

The briefing included FY26 budget requests and program-level outcomes; the subcommittee did not vote on any appropriations or change statutes during the session. LEO staff provided answers and agreed to follow up on detailed budget line items when requested by members.

Looking ahead

LEO staff said they will return with additional detail on vocational rehabilitation and can provide the committee an itemized breakdown of workforce-development appropriations on request. The presentation and follow-up questions focused on aligning training to employer demand, expanding apprenticeships, and sustaining barrier-removal supports that LEO described as having measurable returns for participants.