Ready to Work proposes $42.8M FY27 budget as program plans a phased wind‑down to 2030

City staff presented the Ready to Work FY27 proposal and program update to the City Council’s B session on April 15, emphasizing recent growth in completions and job placements as the program moves toward a planned wind‑down by FY30.

What was presented: Mike, the Ready to Work presenter, said that as of March 30 the program had more than 15,000 individuals enrolled, roughly 4,700 currently in training, 6,502 successful training completions and 4,358 approved job placements. He said the program has improved its monthly completion and placement volumes over the last 12 months and reported a 60–62% successful completion rate depending on how the cohort is measured. An ROI study by Dr. Niven presented at the briefing estimated a total economic impact of about $11.8 billion over participants’ working careers to October 2025, with $7.5 billion attributed to increased participant household income; the presenter said the study reported a $125 return for every dollar spent when all impacts are included.

Budget and sunset: Ready to Work’s FY27 proposed appropriation is $42,800,000. Staff outlined a multi‑year plan showing higher funding in FY27 with a progressive scale‑down across FY28–29 and program closure of enrollment by FY29, and completion of training and placement supports through early FY30. Staff said sales‑tax funding is expected to be fully expended by FY30 and asked council to begin planning for what workforce offerings should look like after that date.

Council concerns and requested follow‑ups: Council members pressed Ready to Work for occupation‑level outcomes (how many electricians, plumbers, CDL drivers, health‑care allied roles, etc., will be produced for the FY27 investment), asked whether participants eligible for federal benefits (GI Bill, Pell, workforce Pell) should be treated differently and requested clarity on the reimbursement model for tuition and wraparound supports. Mike said the program can accept GI Bill benefits in certain cases and reimburses training providers rather than paying upfront; staff said they will explore excluding tuition for participants who can fully use GI Bill funds while maintaining wraparound support eligibility.

Employer engagement and placement barriers: Council and staff discussed that some employer agreements to hire Ready to Work graduates did not materialize in past years (staff said projected vacancies did not occur and some employers reported flat hiring), which contributed to under‑spending of on‑the‑job hiring subsidies in FY26. Staff pointed to increased employer‑led cohort training and stronger partner practice as reasons the placement pipeline improved in the last 12 months. Council asked staff to reconvene with employer groups (construction/trades associations, major hospital systems, industry partners) to confirm local demand projections and to identify specific occupation gaps the city should prioritize before sunset planning.

Data and metrics requests: Council asked for a number of follow‑ups: (1) a breakdown of FY27 anticipated placements by occupation; (2) the denominator and exact calculation for the cited 62% completion rate; (3) a list of employers that received the on‑the‑job hiring subsidies and how the unused amounts are being reprogrammed; (4) counts of participants who were placed in jobs outside the program’s approved occupation list; and (5) options for winding program elements into other city or partner programs after FY30 should residual funding remain.

Ending: Staff committed to a follow‑up memo with requested breakdowns and to outreach with employer groups and partner providers. The council did not take any formal vote during the B session.