Paving the Way to Prosperity

Paving the Way to Prosperity Insights Into the Twin Cities Youth Career Pathway Ecosystem

2025 PREPARED BY: KENNETH EBAN, MKE CONSULTING GROUP INC. SPONSORED BY: MINNEAPOLIS FOUNDATION

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ACKNOWLEDGMENTS This report was made possible by the Minneapolis Foundation, which generously sponsored it, and by the following community organizations and agencies, which graciously participated in this landscape analysis. The willingness of these stakeholders to share their insights, experiences, and expertise was invaluable. Their contributions have significantly enhanced the quality and depth of this report. Thank you for your time, openness, and cooperation.

Achieve Twin Cities American Indian OIC BrookLynk Comunidades Latinas Unidas En Servicio City of Minneapolis ECMC Group Greater Twin Cities United Way MIGIZI Minneapolis Public Schools Minneapolis Youth Coordinating Board Minnesota Department of Education Minnesota Department of Employment and Economic Development Minnesota Department of Labor and Industry Minnesota State Pillsbury United Communities Project for Pride in Living The Jay & Rose Phillips Family Foundation of Minnesota St. Louis Park Public Schools Saint Paul Public Schools Workforce Innovation Board of Ramsey County

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TABLE OF CONTENTS Executive Summary................................................................................................. 4 Overview................................................................................................................... 9 Key Insights.............................................................................................................. 12 Insight 1: Youth Need to Receive Tangible Benefits................................................. 12 Insight 2: Public Money Is the Primary Funding Source...........................................15 Insight 3: The Strongest Pathways Are Built in Partnership with School Districts and Higher Education.............................................21 Insight 4: Programs Provide Additional Support Services....................................... 23 Challenges............................................................................................................... 25 Recommendations.................................................................................................. 28

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Executive Summary The purpose of this report is to provide local philanthropy and the community with a high-level overview of the youth career pathway landscape in the west metro and to identify trends and insights within the ecosystem. This report highlights some of the programs that offer career pathways that serve young people ages 14–24 in Minneapolis and the western suburbs.

Youth career pathways are a sequence of training and activities that provide children and young adults with opportunities for career awareness, career exploration, skill development, and job readiness for successful entry into the workforce.

Career pathways are a workforce development strategy that provides participants with the necessary education and experiences to pursue or advance their careers.

The ecosystem is complex, with funding and governance guidelines at all levels of government as well as partnerships across the private, public, and nonprofit sectors.

Providers of these activities and training programs aim to support young people with clear pathways to high-wage, high-demand jobs.

In 2023, Minnesota Governor Tim Walz’s administration identified five high-wage, high-demand, high-growth occupation categories in Minnesota: Trades, technology, caring professions, manufacturing, and education. However, it is up to local workforce development boards, which were established as a result of the federal Workforce Innovation and Opportunity Act, to assess their own regions and support strategies to meet local workforce needs.

Local workforce development boards receive federal and state grants to either subgrant, contract, or provide youth career workforce activities, including supporting youth career pathways. These funds are targeted to engage low-income youth with additional risk factors such as disabilities, involvement with the criminal legal system, or experience with homelessness. Programming is developed for both in-school youth and youth who are disconnected from school. There are two workforce development boards in the west metro area: The Minneapolis Workforce Development Board focuses solely on Minneapolis, while the Hennepin-Carver County Workforce Development Board focuses on the rest of Hennepin County along with Carver County.

Each workforce development board works with different agencies, providers, and employers, which contributes to the system complexities noted above.

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KEY INSIGHTS Conversations with stakeholders helped produce four key insights about the youth career pathway ecosystem.

YOUTH MUST RECEIVE TANGIBLE BENEFITS

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To attract young people, especially those living in low-income households, to participate in youth career pathway programming, young people need to receive tangible benefits. Tangible benefits include, but are not limited to, paid work experience, high school or college credit, certifications and credentials, and job placement. Nearly all pathway programs for young people ages 14–24 offer one or more tangible benefits. For many organizations, two key indicators of success in a career pathway program are the number and quality of tangible benefits that young people are offered and receive.

PUBLIC MONEY IS THE PRIMARY FUNDING SOURCE

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In the local ecosystem, funding for youth career pathways comes primarily from government sources at the federal, state, and local levels. This funding is targeted to support low-income youth with additional risk factors. Over the past 10 years, the primary source of philanthropic support has been Greater Twin Cities United Way. This work has also received support from other philanthropic and corporate funders, but those investments have largely supported individual organizations and not the entire ecosystem.

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THE STRONGEST PATHWAYS ARE BUILT IN PARTNERSHIP WITH SCHOOL DISTRICTS AND HIGHER EDUCATION Providers of youth career pathways often partner with school districts and higher education institutions, which have the authority and infrastructure to provide necessary training and credentials. School districts offer career and technical education and work-based learning for students to gain the skills and experience they need to be successful in their chosen careers.

School districts and higher education institutions also team up to offer dual-enrollment courses that enable high school students to enroll in college courses and earn certificates and credentials, at no cost to the student.

PROGRAMS PROVIDE ADDITIONAL SUPPORT SERVICES

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Some young people need additional support and services to successfully complete a career pathway program and start a job. For many young people in the Twin Cities, one key challenge is the lack of a driver’s license, which some jobs require. As a result, some career pathway organizations have developed partnerships to provide driver’s education to young people in their programs. Additionally, some young people need wraparound services to successfully complete a career pathway, so providers offer case management services to meet their needs.

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CHALLENGES This landscape analysis identified three key challenges in the youth career pathway ecosystem.

EMPLOYER ENGAGEMENT

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The ecosystem needs more employers to partner with providers in offering young people access to paid work experience.

LACK OF COLLABORATION

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When the system and organizations within it fail to proactively engage with youth, the burden falls on young people to identify opportunities to gain the skills and experience they need to pursue their chosen careers.

RIGIDITY IN THE SYSTEM

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Limited resources, oversight, and capacity all contribute to the rigidity of funders, policymakers, and program providers. This rigidity limits the opportunities available to young people.

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RECOMMENDATIONS Stakeholders shared many ideas for how philanthropy and the broader community can support and elevate the impact of youth career pathways. These recommendations are aligned with the Minneapolis Foundation’s levers of change:

2 POLICY 1. Change the Postsecondary Enrollment Options (PSEO) funding model to better incentivize high schools to leverage PSEO as an opportunity for students to earn certificates and credentials.

2. Loosen the restrictions on seat time to allow for more work-based learning opportunities.

3. Increase base funding for state youth workforce development grant programs.

1 GRANTMAKING 1. Provide flexible funding to allow programs to meet the unique needs of young people.

2. F und efforts that foster collaboration to provide more opportunities and tangible benefits for young people.

3. P rovide school districts with funding to strengthen their career readiness infrastructure.

3 CONVENE 1. Convene employers to help them understand the importance of youth workforce development and the role they play.

2. C onvene K-12 education and higher education stakeholders to identify solutions so high schools are not discouraged from informing students about PSEO. 3. Convene state agencies to identify opportunities to collaborate so they can reach and support young people more effectively.

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Overview This report aims to provide local philanthropy and the broader community with a highlevel overview of the youth career pathway landscape in the west metro, to identify trends, and to elevate insights about the ecosystem. This report highlights some of the programs that provide youth career pathways in Minneapolis and the west metro and—to provide examples from a different governing jurisdiction—mentions a few that operate in Saint Paul and Ramsey County. Overall, however, this report is not intended to be an exhaustive list of youth career pathway programs. It is also worth noting that, while some programs provide opportunities for career exploration as early as elementary school, the focus of this analysis is youth career pathway programs serving youth ages 14–24.

Youth career pathways are a sequence of training and activities to provide young people, ranging from children to young adults, with opportunities for career awareness, career exploration, skill development, and job readiness for successful entry into the workforce.

Career pathways are a workforce development strategy that offer participants the necessary education and experiences to pursue or advance their careers.

These pathways not only help young people identify and pursue their desired careers; they are also a key strategy in reconnecting disconnected young people. In its report “Two Futures: The Economic Case for Keeping Youth on Track,” Measure of America found that individuals who were disconnected from school and work for one year between the ages of 16 and 24 have a median family income of $44,000 fifteen years later, compared to a median family income of $78,000 for individuals who remained connected to school or work as young people.1 While youth disconnect from school and work for a variety of reasons, most youth are motivated to reconnect. Unfortunately, significant barriers often stand in their way, including transportation, family responsibilities, lack of work experience, and lack of education. Opportunities to earn money while attending school to earn credentials are the most attractive avenues for young people seeking to reconnect.2 According to the Minnesota Department of Employment and Economic Development (DEED), research has shown that the top predictor of future success in the workforce is early exposure to work experience. In the 2023 annual report on its Minnesota Youth Program, a career pathway grant program, DEED states: • Contextual learning improves student’s grades, attendance, and graduation rates.

• Young people who have an opportunity to gain work experience as teens are more likely to stay in school and avoid criminal involvement, gang behavior, drugs, and unplanned pregnancies.

• Teen employment contributes to significantly higher wages as young adults enter their twenties.

• Teens in low-income families have the least access to jobs, especially jobs that combine part-time work and school.

In fiscal year 2023, each state dollar invested in the Minnesota Youth Program yielded an estimated return of $12.77 through taxes paid by participants and other public benefits saved.3 1

Kristen Lewis and Rebecca Gluskin. Two Futures: The Economic Case for Keeping Youth on Track. New York: Measure of America, Social

2

John M. Bridgeland and Jessica A. Milano. Opportunity Road: The Promise and Challenge of America’s Forgotten Youth. Civic Enterprises

Science Research Council, 2018. & America’s Promise Alliance, 2012.

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Minnesota Youth Program SFY2023 Annual Report. Minnesota Department of Employment and Economic Development, 2023

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MAPPING THE ECOSYSTEM The landscape of youth career pathways is complex. Shaped and funded by federal, state, and local governments, it relies on partnerships across the public, private, and nonprofit sectors. Multiple state agencies are heavily involved in the ecosystem, including DEED, the Minnesota Department of Education (MDE), the Minnesota Department of Labor and Industry (DLI), and Minnesota’s system of state colleges and universities (Minnesota State).

Due to the unique characteristics and needs of each local region, the structure of each landscape varies significantly.

Regions are shaped by the Workforce Innovation and Opportunity Act (WIOA). WIOA is a 2014 federal law that created regional workforce development areas and requires these regions to develop local workforce development boards that include local employers, school districts, postsecondary institutions, and elected officials. These boards receive, distribute, and oversee federal and state grants to aid local workforce development goals. WIOA strongly suggests that each board have a youth committee to ensure a focus on young people. In Hennepin County, there are two such boards, the Hennepin-Carver County Workforce Development Board and the Minneapolis Workforce Development Board.

Ramsey County has one workforce development board serving the entire county due to a shared powers agreement that resulted in Saint Paul’s board joining the Ramsey County Workforce Development Board in 2000. 4 These boards fund intermediary entities that develop programming and pathways to support local workforce development strategies. In the Twin Cities, intermediaries have included cities, counties, community organizations, and workforce development agencies. Workforce development boards often grant or subcontract to multiple intermediaries within a region.

These intermediaries develop youth career pathway programs and build partnerships with employers, schools, higher education institutions, and community organizations to provide the necessary opportunities and services to young people.

Intermediaries offer a range of experiences and opportunities to help young people discover and pursue careers. Not every intermediary or program provider offers a full pathway; some programs focus on specific activities and experiences. A local program provider offered this framework to describe the range of youth career pathway activities and experiences: • ENCOUNTER. In this type of programming, young people are exposed to different industries and careers and receive support to assess their skills and interests.

Common activities include career fairs, workplace site visits, skills inventories, and an introduction to workplace training.

• EXPLORE. Programming in this phase helps young people identify career possibilities that are aligned to their skills and interests. Common activities include career counseling, job shadowing, and short-term internships.

• EVALUATE. These activities help young people determine whether a particular career field is right for them. Common activities include long-term internships and workplace skills training.

• ENGAGE. Young people receive skills and training that are necessary in their chosen career fields. Common activities include long-term internships and apprenticeships.

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J oint Powers Agreement for the Consolidated Ramsey County-City of Saint Paul Workforce Investment Program. Ramsey County, 2000.

Accessed 2024. www.ramseycounty.us/sites/default/files/Departments/ Workforce Solutions/Joint Powers Agreement–City of Saint Paul and Ramsey County_0.pdf.

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School districts and higher education institutions play an important role in the engagement phase of the youth career pathway ecosystem. These systems are the primary mechanism whereby young people receive job training and earn certifications and credentials to enter their chosen careers. Education institutions also offer courses and seminars that support students with career exploration.

Workforce development funding has a focus on providing programming to low-income or economically disadvantaged young people, or youth who have life experiences that designate them as being “at-risk,” such as being pregnant or parenting, having a disability, or having foster system experience. Some funding streams and venues for career pathways bifurcate programs into two categories: Those serving youth who are in school, and those serving young people who are disconnected from school or work, sometimes referred to as “opportunity youth.” Opportunity youth, designated by federal guidelines as those ages 16– 24, often come from communities with higher levels of poverty or limited resources. Many of these young people have lived experience with a disability, homelessness, or the child welfare or juvenile justice systems. Youth of color are also disproportionately represented in this group.5 State funding allows workforce development resources to serve young people in both categories.6 Federal funding is primarily reserved for opportunity youth. Education systems, on the other hand, use their own funding streams to build career pathways for youth still enrolled in school.

Regional priorities further complicate and decentralize the youth career pathway ecosystem in Minneapolis and the west metro. Local jurisdictions have the autonomy to determine their own approaches to youth workforce development goals and strategies. Since Minneapolis and Hennepin-Carver counties operate separate workforce development boards, they have their own goals and strategies. Intermediaries, schools, community organizations, and employers that offer career pathway opportunities for young people build their own programming and partnerships and operate independently of each other. In comparison, the Workforce Innovation Board of Ramsey County works closely with the City of Saint Paul, Saint Paul Public Schools, community organizations, and partners to coordinate youth career pathway programs and workforce development activities. While intermediaries provide Ramsey County’s career pathway programs, the board provides support for each program and helps develop partnerships across the region.

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Who Are Opportunity Youth? The Annie E. Casey Foundation, January 5, 2024. https://www.aecf.org/blog/who-are-opportunity-youth

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2023 Minnesota Statutes. Sec. 116L.56 MN Statutes. www.revisor.mn.gov/statutes/cite/116L.56.

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Key Insights In conversations about the local youth career pathway ecosystem, stakeholders shared key insights regarding program design, the funding landscape, critical partners, and meeting the needs of youth. In addition, they discussed challenges limiting the impact of the ecosystem and recommendations on how to address those issues.

INSIGHT 1: Youth Need to Receive Tangible Benefits Youth career pathway programs must maximize young people’s time and provide them with tangible benefits. In the Twin Cities, programs focus on providing young people with paid work experience, high school credit, career-related certifications, and career-related postsecondary credit. In the past, organizations offered programming with the intention of enabling young people to gain soft skills and benefits such as building leadership skills, experience in a work environment, and exposure to a variety of jobs and careers. However, program managers and practitioners now recognize that programs that only offer soft benefits are inaccessible to many young people and do not fully meet their needs.

Most career pathway programs in the Twin Cities aim to serve low-income and/or opportunity youth. These groups of young people carry many responsibilities and have heavy time constraints, which have grown since the COVID-19 pandemic. Young people are working, supporting their families, and often do not have time to navigate complicated systems. Tangible benefits alleviate some of the burdens young people are facing, increase their willingness to complete career pathway programs, and accelerate their progress toward meaningful careers. Most programs try to find ways to braid multiple tangible benefits together.

Youth career pathway programs measure their impact by the number and quality of tangible benefits young people are offered and receive. Common performance indicators include: The number of participants served by a program; the number of participants who complete it; the number of positions held by young people; the wages they earn; certificates, credits, or credentials earned; and full or part-time jobs secured after program completion.

Here are some examples of career pathway programs in the Twin Cities and the tangible benefits they offer:

CONSTRUCTION AND TRADES This program is operated by BrookLynk, a partnership between Brooklyn Center and Brooklyn Park focused on youth employment. It uses a learn-and-earn model, offering participants compensation as they receive job training. It serves youth ages 18 and up who live in Brooklyn Park, Brooklyn Center, or North Minneapolis. Participants are paid $1,000 to complete six weeks of customized training with Hennepin Technical College, where they receive small equipment training, OSHA 10 certification, and support services to acquire a driver’s license—all of which are requirements to work for the public works departments of Brooklyn Park, Brooklyn Center, and Golden Valley. Once they complete the training, successful participants with a driver’s license are guaranteed a seasonal job paying $20 per hour in the public works department of one of the partnering local jurisdictions. For some

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participants, these seasonal jobs have led to full-time employment. In addition to these tangible benefits, participants get the experience of participating in classes on a college campus, which is meaningful for many.7

INDIGENOUS PATHWAYS Provided by MIGIZI, this program is specifically tailored to introduce and train young people in careers that preserve Indigenous culture and traditions, and to address issues in the Indigenous community. MIGIZI offers two year-round career pathway programs: First Person Productions and Green Tech Internships. These programs primarily serve students ages 14–18. First Person Productions focuses on media to foster the next generation of Native storytellers. Green Tech Internship introduces young people to green and renewable energy fields where they can help create sustainable solutions for a greener future. Both are internship programs that operate four cohorts per year, each of which runs for approximately 8-10 weeks. In each program, students receive extensive training and complete a project. Projects vary depending on who MIGIZI can engage as partners, and in the past have included a COVID vaccination billboard campaign, solar boatmaking, an analysis of pollution in water and harvested wild rice, and a podcast series on KFAI about Native veterans. Interns in the fall, winter, and spring cohorts earn $13.75 per hour and work up to 10 hours per week. In the summer, MIGIZI partners with the City of Minneapolis’ Step Up program, with interns working up to 24 hours per week and earning $15 per hour.

Depending on the program they are enrolled in, participants who attend Minneapolis or Saint Paul public schools can earn credits for credit recovery.8

LEARN AND EARN TO ACHIEVE POTENTIAL (LEAP) Administered by Project for Pride in Living (PPL), LEAP is an 18-month paid apprenticeship for systems-involved youth ages 18-24. Through this program, youth have access to experiential courses with professionals, tours of training and work sites, and innovative technology. Students work 32 hours per week, which makes them eligible for benefits, and they are paid 75% of the entry-level wage of the worksites where they are placed. They are also able to earn industry certifications. LEAP offers career pathways in the glass and solar fields. Glass pathways prepare students for work as glaziers, fabricators, and preparators.9 Solar pathways prepare students for careers in outreach and engagement, installation, design, and as electricians.10

PILLSBURY UNITED COMMUNITIES (PUC) CAREER PATHWAYS PUC offers a learn-and-earn program for youth ages 18-24. Participants are paid $17 per hour to attend classes to earn a certification or credential. PUC partners with Minneapolis College, Hennepin Technical College, Dunwoody College of Technology, and North Hennepin Community College to offer pathway courses in a wide variety of fields, including health and human services, construction and trades, accounting, education, and technology. These pathways are designed to be completed in 6-12 months, with tuition covered by PUC. In addition to paying students while they earn their credentials, PUC provides one-on-one support to help participants with challenges along the way. Once participants complete the coursework, they receive a job placement, internship, or apprenticeship.11 7

Construction and Trades. BrookLynk. www.brooklynk.works/new-page-62.

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“Our Programs,” MIGIZI. www.migizi.org/forparticipants.

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Youth Apprenticeship LEAP 2024–Glass. Minneapolis: Project for Pride in Living, 2024.

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Youth Apprenticeship LEAP 2024–Solar. Minneapolis: Project for Pride in Living, 2024.

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“Career Pathways.” Pillsbury United Communities. careerpathwayspuc.org/.

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SAINT PAUL PUBLIC SCHOOLS (SPPS) SPRING INTERNSHIPS SPPS offers spring internships for students in grades 9–12. The school district partners with Right Track, a summer internship program in Saint Paul, to identify employers and internship positions during the spring semester. In this work-based learning program, students are paid $13 per hour and can receive high school credit for their internship. All internships are aligned to high-wage and in-demand career pathways. Before starting an internship, students must complete a seminar to explore career pathways they may be interested in. Students have completed internships in business and communications, human services, innovative and emerging technologies, and science and medical fields. SPPS students receive the tangible benefit of receiving high school credit and paid work experience through the Spring Internship program while also exploring a variety of industries.12

STEP UP This youth employment program is operated by the City of Minneapolis in partnership with Achieve Twin Cities and Project for Pride and Living. Step Up offers paid summer internships and training experiences for students ages 14–21 who live in the City of Minneapolis.

Participants receive pre-internship training to support their success in professional settings, as well as training to help them identify industries they are interested in exploring. In the summer of 2023, Step Up interns earned just over $2 million in compensation. Half of these wages were paid by the city through state and federal grants, and half by employers. In addition to receiving paid work experience, 86% of Step Up program graduates said they could name at least two people who they could ask for a professional reference.13

YOUTH ENTREPRENEURSHIP PROGRAM (YEP) This program is administered by BrookLynk. YEP was created to introduce BIPOC youth and young adults to career pathways in business and entrepreneurship. This learn-and-earn program serves young people ages 16–24 who either live in or go to school in Brooklyn Park or Brooklyn Center. Through their participation in YEP, students complete a 6-week paid internship during which they acquire skills in business and entrepreneurship and develop their own business plan and pitch. The program has four phases: • PHASE 1: Foundations of Entrepreneurship • PHASE 2: Creating Your Business Pitch Deck • PHASE 3: Shark Tank • PHASE 4: Internships Each phase lasts six weeks, with participants meeting weekly. During the first and second phases, participants are paid $50 for attending each session. If they have perfect attendance, they receive an additional $300. In Phase 3, participants pitch their business ideas to local leaders and small business owners. The winners of the pitch competition receive $1,500.

In Phase 4, participants become interns for small businesses in Brooklyn Park or Brooklyn Center. They earn $17–$18 per hour and work 15–20 hours per week. BrookLynk provides a $3,000 subsidy to small businesses for participating in the internship program.14 12

“Internships.” Saint Paul Public Schools. www.spps.org/academics/college-and-career-readiness/career-pathways/districtwide-career-

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M innesota Youth Program SFY2023 Annual Report. Minnesota Department of Employment and Economic Development.

pathway-program/internships. https://paidleave.mn.gov/deed/assets/2023-minnesota-youth-annual-report-acc_tcm1045-607197.pdf.

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“Youth Entrepreneurship.” BrookLynk. www.brooklynk.works/new-page-64.

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ST. LOUIS PARK HIGH SCHOOL CAREER PATHWAYS Students at St. Louis Park High School can pursue a variety of career pathways. For example, in their Communication Technology Career Pathway, students are offered courses such as Computer Hardware and Software Fundamentals, Digital Game Design, Intro to Programming, Advanced Placement Computer Science, Digital Artwork Design, Intro to Graphic Design, Digital Photo Editing, Page Layout Design, and Photography. On this career pathway, students can earn certifications in IT Fundamentals, A+ Certification, Adobe Certification, Auto Computer Aided Design, and Java. They can also earn college credit.

Students in grades 11 and 12 have the opportunity to participate in a paid internship for the full school year.15

TEEN TECHNOLOGY TRAINING PROGRAM Comunidades Latinas Unidas En Servicio (CLUES) offers cohorts for young people ages 15–19 to build skills in either technology coding or film production. Young people apply and interview to join the program. During the school year, they meet twice a week to develop skills and complete a capstone project, receiving stipends of approximately $300 per month for this portion of the program. Young people who complete their projects are then offered six-week paid internships with wages ranging from $15.50 to $24.50 per hour, depending on the employer. Throughout the program, young people can earn certifications in digital literacy and Google Analytics, among others.

INSIGHT 2: PUBLIC MONEY IS THE PRIMARY FUNDING SOURCE The youth career pathway ecosystem in the Twin Cities is funded primarily by public money.

Investments come from a variety of public sources, including federal and state grants, municipal appropriations, and school district budgets. Municipalities and school districts allocate money from their general funds to support young people with workforce skills training and youth employment opportunities.

FEDERAL FUNDING SOURCES • Workforce Innovation and Opportunity Act (WIOA) Young Adult Program This federal program provides comprehensive employment and training services, including work-based learning, an introduction to career pathways, attainment of recognized credentials, and wraparound services. It serves at-risk youth ages 16-24 who are not attending school and in-school youth ages 14-21 who are low-income and at-risk. Seventyfive percent of program funds must be spent on out-of-school or opportunity youth. WIOA is a formula-based grant program. Funding is passed through DEED and sent to local workforce development boards across the state of Minnesota. In 2022, Minnesota received $8.9 million in WIOA funding. However, that number has decreased to $8.6 million over the last few years.

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St. Louis Park High School Career Pathways. St. Louis Park Public Schools.

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Program providers that receive WIOA Young Adult funding must offer each of the following wraparound services to young people: • Tutoring and study skills training • Dropout recovery and prevention • Alternative secondary school services • Paid and unpaid work experience, including summer employment • Occupational skills training • Workforce preparation activities and training • Leadership development activities • Supportive services • Comprehensive guidance and counseling • Financial literacy education • Entrepreneurial skills training • Information about in-demand industry sectors and occupations • Activities that help youth prepare for a transition to postsecondary education and training16 The Minneapolis Workforce Development Board partners with six WIOA Young Adult Program providers: American Indian OIC, Avivo, East Side Neighborhood Services, EMERGE Community Development, Hired, and Pillsbury United Communities. Hennepin and Carver County partner with BrookLynk, Tree Trust, and Carver County Health and Human Services.17 Ramsey County contracts with several providers to deliver WIOA Young Adult Program services; it serves as the connective tissue between these providers by providing technical support and additional services where there are gaps.

• Strengthening Career and Technical Education for the 21st Century Act The Strengthening Career and Technical Education for the 21st Century Act of 2018 (Perkins V) provides for federal grants that are distributed to state-approved career and technical education programs with appropriate teacher licensure. Funds are granted to districts and consortia of districts on a formula basis. These funds are primarily used for changes and innovation and generally are not distributed to sustain a project for more than three years.

Perkins V funds are administered by the Minnesota’s system of state colleges and universities (Minnesota State). To be eligible for Perkins V funds, programs must have:18 • A sequence of courses in a specific career field • An advisory committee that is made up of at least 50% of professionals in the specific industry • An appropriately licensed teacher • An experiential learning component • A student leadership component • An assurance from the superintendent to support a safe and successful program 16

W IOA Young Adult Program. Minnesota Department of Employment and Economic Development. mn.gov/deed/assets/wioa-youth-

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“WIOA Young Adult Program.” Minnesota Department of Employment and Economic Development. mn.gov/deed/programs-services/

factsheet_tcm1045-270156.pdf office-youth-development/youth-programs/wioa-youth.jsp 18

“Policy and Funding.” Career and Technical Education, Minnesota Department of Education. education.mn.gov/MDE/dse/cte/pol/.

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Minneapolis Public Schools offers career pathways through its Career and Technical Education program in the following industries:19 • Construction and trades • Computer science and engineering • Health and human services • Business and marketing • Media arts St. Louis Park High School offers career pathways in five industries:20 • Health sciences • Business • Computer science and technology • Social sciences • Journalism Saint Paul Public Schools offers career pathways in four industries:21 • Science and medical • Information technology • Business • Education and human services

STATE FUNDING SOURCES • Minnesota Youth Program This formula-based grant program directs funding to the 16 local workforce development boards across the state of Minnesota. The boards use these resources and contract with providers and vendors to meet their local workforce needs. Program participants must be at-risk, low-income youth ages 14–24 who lack academic and “applied skills” that are considered critical for current and future workplace requirements. Unlike federal WIOA funds, MYP has more flexibility to be used for in-school youth. For fiscal year 2023, the Minnesota Legislature funded MYP with $4.05 million from the Workforce Development Fund. This funding served 3,766 youth through the work experience component of MYP and an additional 32,038 youth through the component focused on outreach to schools and career advisors. In 2023, the Legislature increased funding for MYP to $8.56 million per year for fiscal years 2024 and 2025, and DEED expects a proportional increase in the number of young people served.

Services supported by MYP include: • Skill and interest assessments to individualize service and assist in career development • Work-based learning opportunities in public and private sectors to introduce youth to career pathways 19

“Career and Technical Education.” Academics, Minneapolis Public Schools. www.mpschools.org/academics/cte.

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St. Louis Park High School Career Pathways. St. Louis Park Public Schools.

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“Career Pathways.” Saint Paul Public Schools. www.spps.org/academics/college-and-career-readiness/career-pathways.

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• Mentoring to build workplace skills, career awareness, and confidence • Development of financial literacy • Building leadership skills to work with diverse groups and engage in community service • Pre- and post- assessments by employers on worksites to evaluate the work readiness of participants • Support services for participants to successfully engage in work experiences, which can include transportation, clothing, tools, childcare, housing and rental assistance, and school-related financial assistance • Earning service-learning credit, industry recognized credentials, degrees, and certificates The City of Minneapolis uses its MYP funding to fund Step Up. In 2023, 1,220 young people were placed in summer internships through this program. In the same year, the HennepinCarver Workforce Development Board used MYP funding to work with three providers (BrookLynk, Ka Joog, and Tree Trust) to ensure that youth receive early exposure to experiential employment, culturally responsive services, and key supports that pave the way for future success in the workplace. Ramsey County used MYP funding to partner with seven organizations (30,000 Feet, Hired, Hmong American Partnership, Restoration For All Inc., Tree Trust, Urban Boatbuilders, and Youthprise). Together, these vendors provided more than 400 youth and young adults with work experiences, internships, and other employment exposure opportunities. The program partners were able to provide unique, hands-on training opportunities.22

• Minnesota Youth at Work Grants Administered by DEED, this competitive grant program awards funding to eligible organizations for the purpose of providing workforce development and training opportunities to economically disadvantaged or at-risk youth ages 14–24. The Youth at Work RFP identifies the following priorities, impact areas, and goals: 1. Provide summer and/or year-round work experience and introductions to career pathways for economically disadvantaged or at-risk youth, ages 14 through 24 2. Increase exposure to in-demand jobs important to regional economies 3. Introduce and promote career pathways and skill acquisition (academic and work readiness) through project-based instruction 4. Promote mastery of work readiness competencies and 21st Century skills, as demonstrated through workplace portfolios and other assessments 5. Provide high-quality worksite and overall participant and employer satisfaction In 2022 and 2023, DEED awarded 40 grants ranging from $41,400 to $700,000 for a total of $3,893,100 each year. Organizations such as Achieve Twin Cities, African Community Services, American Indian OIC, Banyan Community, CLUES, Cookie Cart, Cristo Rey Jesuit High School, Project for Pride in Living, and Pillsbury United Communities were awarded grants that ranged from $50,000 to $75,000. Local government entities also received funding: BrookLynk, a partnership between Brooklyn Park and Brooklyn Center, received $75,000.

Minneapolis Park & Recreation received $175,000. The City of St. Paul was awarded $575,000, and the City of Minneapolis received $700,000.23 22

Minnesota Youth Program SFY2023 Annual Report. Minnesota Department of Employment and Economic Development.

23

SFY 2022-2023 Youth at Work Opportunity Grant. Minnesota Department of Employment and Economic Development.

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• Youth Support Services Grants Administered by DEED, this competitive grant program provides funding to organizations that offer support services for individuals from low-income communities, young adults from families with a history of intergenerational poverty, and/or communities of color. Projects must focus on young adults ages 14–24. Eligible applicants include local government units, nonprofit/community-based organizations, community action agencies, and public school districts. Organizations must serve individuals from the eligible populations in one or more of the following areas: Job training; employment preparation; internships; job assistance to parents; financial literacy; academic and behavioral interventions for low-performing students; or youth intervention activities.

In August 2023, DEED announced 12 organizations that received grants through the Youth Support Services grant program. Collectively, they received $950,000 over two years, with grants ranging from $70,000 to $80,000.

Approximately 59% of the funds were allocated to projects in the Twin Cities metro area, including Cristo Rey Jesuit High School, COPAL, Tree Trust, Hennepin County Human Services and Public Health, and the Brooklyn Park Economic Development Authority. Each of the funded organizations received $80,000.24

• Youth Skills Training (YST) Grants Administered by the Minnesota Department of Labor and Industry (DLI), this competitive grant program provides funding to develop and expand programs that offer meaningful career exposure and paid work experience to students 16 years of age and older in high-growth, high-demand occupations. In 2024, DLI announced 17 grant awards for a total of $1.5 million to be used by June 2026. No award can be more than $100,000. YST funding cannot be used for student wages. Schools must partner with an employer in one of the following industries:25 • Advanced manufacturing • Agriculture • Automotive • Health care • Information technology Two Minneapolis public schools, Camden High School and Wellstone International High School, were among the 2024 grant recipients. The Hennepin West CTE Consortium also received a YST grant.26 While these examples highlight recipients in the Twin Cities, historically, the vast majority of these grants have been awarded outside of the metro area.

ADDITIONAL PUBLIC INVESTMENTS Twin Cities youth career pathways also receive support from many other public funding sources. Additional examples include:

• Federal appropriations • Cities and counties used American Rescue Plan Act appropriations to support programs that provide youth training and employment.

• St. Louis Park High School received a federal line-item appropriation to support its robust career and technical education and work-based learning structure.

24

D EED Announces 12 Organizations to Receive Youth Support Services Funding. Minnesota Department of Employment and Economic Development, August 16, 2023.

25

Youth Skills Training Program Guide April 2024. Minnesota Department of Labor and Industry. www.dli.mn.gov/sites/default/files/pdf/yst-guide.pdf.

26

Labor and Industry Announces 2024 Youth Skills Training Grant Recipients. Minnesota Department of Labor and Industry, April 16, 2024. www.dli.mn.gov/news/laborand-industry-announces-2024-youth-skills-training-grant-recipients.

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• State appropriations Several organizations received direct appropriations from the Legislature for fiscal years 2024 and 2025 to support youth career pathways. These include 30,000 Feet, Big Brothers Big Sisters, CLUES, EMERGE, Juxtaposition Arts, Pillsbury United Communities, and Youthprise.

• Municipal investments Cities invest resources from their own general funds to support youth employment and career exploration. One notable example is a $25 million collaboration between Ramsey County and Saint Paul to support youth workforce development.

• Braided funds Programs like Step Up have combined several sources of public funding, including some of the state grants listed above, a federal Community Development Block Grant, and an investment from the City of Minneapolis’ budget.

PHILANTHROPY Currently, philanthropy does not play a large role in supporting the ecosystem of youth career pathways in the Twin Cities. Since 2015, Greater Twin Cities United Way has been the primary philanthropic organization supporting career pathways. Over a 5- to 10-year period, the United Way invested $500,000 to $1,000,000 in school districts such as Saint Paul Public Schools, St. Louis Park, Shakopee, and Burnsville to properly launch career pathway programs. However, the United Way is beginning to pivot and shift their approach.

The organization recently launched a grant round to support cross-sector connections, frameworks, and relationships needed to scale career pathways across the state. In its announcement, the United Way said that grant sizes will range from $5,000 to $10,000.

Beyond the United Way, philanthropic giving in this sector is minimal. In the past, the McKnight and Bush foundations were donors in this ecosystem, but both have shifted their strategies. Other foundations have supported youth career pathway programs developed by specific organizations, but that funding has come after receiving support for other programs or as part of larger general operations grants. Some corporations and corporate foundations support specific organizations within the ecosystem, but there is usually some connection to their own workforce pipelines. However, one example of a corporate foundation providing broad support for youth career pathways is 3M’s partnership with Saint Paul Public Schools and Minnesota’s system of state colleges and universities. In 2022, 3M made a $5 million investment to support Saint Paul Public Schools in developing dual-credit STEM career pathways.27

27

U nited Way Career Academies Funding Opportunity: Building a Movement. Greater Twin Cities United Way, April 8, 2024. www.gtcuw.org/stories-and-news/united-way-career-academies-funding-opportunity-building-a-movement/.

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INSIGHT 3: The Strongest Pathways Are Built in Partnership with School Districts and Higher Education As highlighted previously, tangible benefits are necessary for high-quality youth career pathway programs. These benefits include paid work experience, high school credit, and career-related certifications and postsecondary credit. Many programs integrate multiple tangible benefits for young people to explore career opportunities. To develop the strongest youth career pathways and provide young people with multiple tangible benefits, intermediaries and community organizations partner with K–12 school districts and the higher education system.

School districts and higher education institutions offer a variety of courses for young people to learn about and pursue careers in an array of industries. Minnesota’s system of state colleges and universities is the largest workforce development provider in Minnesota.

Thousands of low-income young adults are enrolled in local high schools across the Twin Cities. These institutions have the infrastructure and authority to provide young people with many of the tangible benefits necessary to pursue career pathways.

CAREER AND TECHNICAL EDUCATION School districts are able to receive funding through Perkins V for career and technical education (CTE) programs. CTE programs are a sequence of courses that integrate core academic knowledge with technical and occupational knowledge and skills to provide students with pathways to postsecondary education and careers. CTE teaches transferable workplace skills in applied learning contexts to provide opportunities to explore highdemand career options and gives students the technology and skills needed for success in adult life. According to the Minnesota Department of Education, students who take two or more CTE courses have a high school graduation rate of 92%. Additionally, 65% of students who take two or more CTE courses enroll in postsecondary education. CTE programs are the primary mechanism whereby schools offer career pathways to students in high-wage, high-demand careers.

The Minnesota Department of Education identifies the following characteristics of highquality CTE programs: • An unduplicated sequence of strong academic and career and technical courses that incorporate applied, contextual, cross-curricular, and interdisciplinary instructional strategies.

• Exploration of careers within a career cluster and/or pathway through the identification of potential career opportunities and the postsecondary training and educational requirements of those choices.

• Opportunities to participate in structured learning experiences and career and technical student organizations (CTSO).

• Alignment and incorporation of secondary and postsecondary education elements such as curricula, standards, and assessment.

• Preparation needed for students to enter employment in a specific occupation that aligns with business and industry standards and may lead to an industryrecognized credential or certificate at the secondary level.

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• Preparation for postsecondary education. Career and technical education programs provide a purpose and rationale for academic preparation and aid students in meeting the entrance requirements for college programs.

• Opportunities to earn college credit for college courses successfully completed during high school (e.g., dual/concurrent credit or articulated credit).

• School districts and higher education institutions offer courses to learn about and gain skills to pursue a career in a wide array of industries. 28

WORK-BASED LEARNING Some youth career pathway programs leverage work-based learning to provide students with experiential opportunities to earn high school credit and wages. Work-based learning is an instructional strategy that reinforces academic and technical skills through collaborative activities with industry partners. Work-based learning experiences allow students to apply classroom theories to real-world problems and to explore career options through activities such as internships and youth apprenticeships. The spring internship program developed by SPPS and Right Track invests heavily in work-based learning. St. Louis Park High School also has work-based learning opportunities connected to some of its career pathways.29

DUAL ENROLLMENT Dual enrollment allows high school students to earn high school and college credit simultaneously by completing college courses. Dual-credit programs challenge students academically and save them time and money. Courses are taught by college instructors or high school teachers who serve as adjunct professors. They may be taught online, at high schools, or on college campuses.

Concurrent enrollment and postsecondary enrollment options (PSEO) are two predominant methods to offer dual-enrollment opportunities to high school students. In concurrentenrollment classes, commonly known as “College in the Schools,” credentialed high school teachers teach college courses on high school campuses. PSEO allows high school students to take college courses on a college campus at the expense of the student’s high school.30 If a school has a teacher with the credentials to teach the course and there is enough student interest, concurrent enrollment is a good option for schools to provide dual-enrollment courses. PSEO works best for students who are interested in a college course not offered at their high school. Both concurrent enrollment and PSEO can provide students with opportunities to earn college credit and/or complete certificate programs needed to advance on their desired career pathway. Dual-enrollment programs are only available to students enrolled in high school.

CREDENTIALS FOR OPPORTUNITY YOUTH Some community organizations and industry partners who work with opportunity youth partner with higher education institutions to ensure that program participants who are not enrolled in high school are supported in completing the coursework necessary to receive specific industry credentials and certifications. BrookLynk utilizes this model for their Construction Trades program. Pillsbury United Communities also manages career pathways 28

“Programs and Support.” Career and Technical Education, Minnesota Department of Education. education.mn.gov/MDE/dse/cte/prog/.

29

“CTE Work-Based Learning.” Career and Technical Education, Minnesota Department of Education. education.mn.gov/MDE/dse/cte/prog/wbl/.

30

Earn College Credit in High School. Minnesota Department of Education. Accessed July 1, 2024. education.mn.gov/MDE/fam/dual/.

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in which they pay students $17 per hour to go to class for 6–12 months to earn a certificate or credential in a wide variety of career fields. The common challenge for organizations in developing these partnerships is identifying funding to pay tuition costs so that programming is low- or no-cost to participants. While school districts and higher education institutions are theoretically structured to teach young people and provide them with credits and credentials, partnering with these institutions can be difficult for intermediaries and community-based providers. School districts often have little capacity to develop new programs or partnerships. And though higher education institutions offer dozens of degree and certificate programs, community organizations and industry partners find it challenging to identify higher education institutions that both offer the relevant coursework and are flexible enough to accommodate program participants. These are reasons that organizations develop their own career pathway programs outside of the education system. However, many strong career pathway programs partner with education institutions to provide students with paid work experience and career-related training to propel participants into their chosen careers.

INSIGHT 4: Programs Provide Additional Support Services In order to support young people through career pathways, some programs offer a variety of additional support services to young people. These services remove barriers to program participation, support pathway completion, provide materials for paid work experience, and support participants in meeting non-education-related eligibility requirements. Support services are offered to young people in addition to the tangible benefits of participating in youth career pathway programs.

One common barrier is the lack of a driver’s license. Careers in industries such as the construction trades, health and human services, and manufacturing typically require workers to have a driver’s license, and providers of pathway programs aligned to these careers have realized that many young people lack access to driver’s education. To remove this barrier, some have developed partnerships or programming to help participants and young job seekers access driver’s education and receive a driver’s license. BrookLynk enrolls their Construction and Trades program participants in driver’s education classes and helps address any other related challenges participants may have, such as paying outstanding fines. The Workforce Innovation Board of Ramsey County has developed a Driver’s License Academy to help young workers between the ages of 18–24 get their driver’s license when it is a needed work credential. Participants receive tutoring for their instruction permit, six hours of behind-the-wheel instruction, and a vehicle to take road tests. The program also covers the cost to receive the license. Unlike BrookLynk, the Driver’s License Academy does not pay for fines and fees related to a suspended license.31 While lack of a driver’s license is one example of a barrier that young people encounter when pursuing careers, there are other types of challenges that can make program completion even more difficult. These barriers can be experienced-based, and they are sometimes the primary characteristics that make young people eligible to participate in a program. In response, some organizations offer support services through a case management model to meet the specific needs of individual participants who may have disabilities, involvement with the justice system, experience with homelessness, a first language other than English, or some combination of these and other factors. In 31

“Driver’s License Academy.” Workforce & Business Development, Ramsey County. www.ramseycounty.us/DLA.

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recent years, funding for housing support has increasingly become a significant service necessary for program participants to stay enrolled and complete youth career pathway programs. American Indian OIC often encounters young people who are experiencing homelessness or housing instability; the organization is able to support these young people with housing resources through limited internal funding or referrals to Hennepin County. Other support services offered by career pathway providers include providing workplace equipment, paying cell phone bills, paying fees for applications and documentation, and providing transportation.

TS H G I S N I 4 : P A REC efits

n ible be g n a t eive st rec u m h y out 1. Y p r im a r e h t is money c i l b u

ce 2. P g so u r n + i d n u f stricts i d l o o ith sch w p i h s t ner 3. Par r Ed is key Highe tional i d d a ide s prov m a r g ro ices 4. P t s er v r o p p su

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Challenges In this landscape analysis of the youth career pathway ecosystem in the Twin Cities, employer engagement, lack of collaboration and coordination, and rigidity within the system were identified as challenges that consistently limit program impact.

EMPLOYER ENGAGEMENT Youth career pathway programs rely on local employers to provide paid work opportunities that enable young people to experience and evaluate career options. To ensure young people have positive experiences and a wide variety of opportunities, the ecosystem needs more employers—especially in the private sector—that are fully engaged in this strategy of workforce development. Many employers invest in college internships and struggle to see the value of providing internships to non-college students who may not ultimately enter their candidate pools. Some employers struggle to provide the support necessary for low-income, BIPOC young people to have positive, meaningful experiences within their organizations.

Other employers simply do not have the infrastructure or capacity to develop paid internship opportunities. For large programs such as Step Up and Right Track, challenges with employer engagement can limit the number of students who receive internship offers.

Career pathway programs have found different ways to address the employer engagement challenge. Pillsbury United Communities offered 100 internships in the summer of 2024 and 70 during the 2023–2024 school year. However, all these internships were offered internally, within the social enterprises that Pillsbury United Communities operates. To address the capacity issue, BrookLynk provides a $3,000 subsidy to employers who offer internships to young people who complete the Youth Entrepreneurship Program. Ramsey County offers training for its partners on how to be a successful youth employer, covering topics such as youth recruitment and training skills, effective strategies for investing in young employees, and methods of cultivating a positive work environment for all.32

LACK OF COLLABORATION AND COORDINATION Youth career pathway programs thrive when employers, community organizations, K-12 school districts, and higher education institutions collaborate to offer young people unique opportunities and remove barriers to participation. However, when these partnerships do not form or there is a lack of coordination, young people have fewer opportunities.

Lack of collaboration also results in young people receiving fewer tangible benefits through these programs. School districts that offer CTE courses but do not collaborate with employers or community organizations that provide internships are not able to provide students with paid work experience. Summer internships that do not collaborate with school districts or higher education institutions are not able to offer certifications or credentials to propel a student into their career of interest. Career pathway programs that do not collaborate with community organizations or local government entities can struggle to remove participation barriers and serve low-income, BIPOC youth.

32

“Successful Employer Training.” Workforce & Business Development, Ramsey County, June 27, 2024. www.ramseycounty.us/ businesses/workforce-business-development/youth-works/successful-employer-training.

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Without this kind of coordination, young people—and at times the employers that want to support them—must navigate a very broad, complicated, and decentralized landscape to benefit from the different opportunities available. Without coordination, youth career pathways do not provide young people with optimal support.

One example of collaboration that has led to greater impact across the ecosystem is the partnership between the City of Saint Paul, SPPS, and the Workforce Innovation Board of Ramsey County. These entities have worked together to increase the impact of Career and Technical Education, Right Track, and engagement with employers and community organizations. Together, they are able to offer a broad range of opportunities and services that support young people’s exploration of career opportunities and progress through career pathways. This collaboration has also inspired greater investment by each of the entities to strengthen these career pathways for students. SPPS used American Rescue Plan Act resources to build out their Career and Technical Education opportunities. The City of Saint Paul and Ramsey County committed nearly $12.5 million each ($25 million total) to invest in youth career pathways and support services.

RIGIDITY LIMITS ACCESS AND OPPORTUNITY Young people need systems and programs that are relevant to their interests and responsive to their needs. When programs become overly rigid, they limit access and opportunities for the young people who need them the most. Youth career pathway programs need to be as flexible as possible to attract a broad, diverse group of young people and to provide the individualized support that those young people may need to complete those pathways.

In a variety of ways, policy, funding, and providers can all contribute to unhelpful rigidity in the ecosystem of youth career pathways.

POLICY RIGIDITY One example of policy rigidity is the “Drive For 5” initiative. In 2023, the Walz administration developed this initiative to create partnerships across the state to help fill in-demand positions in technology, trades, caring professions, manufacturing, and education—all of which are industries projected to be high-growth and provide familysustainable wages.33 “Drive For 5” has good intentions in that it aims to meet the state‘s major workforce needs and provide workforce development opportunities in high-wage, high-demand industries. However, these industries may not align with the interests of youth. Thus, pathway programs experience the tension of trying to meet state workforce needs while simultaneously engaging the career passions of young people. Rigidity in policy can limit opportunities for youth.

It’s worth noting that some programs serving out-of-school youth or opportunity youth have done a good job of being flexible to meet the needs and interests of young people and provide pathways that include the “Drive for 5” industries as well as other career opportunities. Project for Pride in Living, Pillsbury United Communities, and BrookLynk are three examples.

33

K atie McClelland and Cameron Macht. Minnesota’s Drive for 5 Initiative. Minnesota Department of Employment and Economic Development.

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FUNDING RIGIDITY Rigidity often results from the various restrictions and eligibility requirements that funders impose on program providers. Examples include: • LIMITS ON THE USE OF FUNDS Notably, many kinds of public funding cannot be used to pay for food during events and programming. This can impact program participation and satisfaction, requiring providers to seek other funding streams for this basic resource. Another issue many providers experience is finding allowable methods of compensation for youth. Public funds have strict parameters for purchasing gift cards, a means of payment that many young people prefer.

• DIFFERENCES IN THE ALLOWABLE USAGE OF FUNDS Consider a program that helps participants obtain their driver’s licenses. One of the program’s funders allows its grant to pay for an online driver’s ed course but not behind-the-wheel instruction. Another funder allows its dollars to pay for both. The onus is on program providers to keep track of which funding can be used for which purposes; this creates significant administrative burdens.

• ELIGIBILITY The most widespread example of eligibility limitations on public funding is that undocumented youth cannot benefit from publicly funded programming.

Not only does this exclude an important segment of the population; it also requires strict monitoring and challenging conversations with potential program participants.

Providers who can braid together multiple sources of funding, especially non-public sources, have more flexibility in the face of funding rigidity. However, they also face increased administrative and reporting burdens, which can limit staff capacity and ultimately program success. For example, MIGIZI has a mix of public and philanthropic funding sources, which has allowed the organization to develop culturally specific programming and achieve its program goals. However, the administrative and reporting burdens that come with this funding model limit staff capacity, especially if team members are managing multiple public funding sources. Funding rigidity in the ecosystem limits which young people can access programming and how many of them are able to successfully complete pathway programs.

PROVIDER RIGIDITY Given the diversity of organizations that offer career pathway programming, rigidity stemming from program providers can take a variety of forms. Some providers may not have the capacity to provide all the support services that participants need. School-based career pathway programs are available only to enrolled students, which limits access and opportunities for youth who are disconnected from the education system. Schools may also prevent students from accessing work-based learning programs if students are behind in their credits. Rigid application timelines can exclude opportunity youth, who face a number of barriers to completing applications by specific due dates. These examples of provider rigidity are understandable, but they limit who has access to programming and what opportunities those young people receive.

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Recommendations In the process of conducting this landscape analysis, recommendations emerged for how philanthropy and the broader community can support the local youth career pathway ecosystem. While there are several ways philanthropy and the broader community can support the youth career pathway ecosystem, the recommendations below were themes in conversations with key stakeholders.

These recommendations align with three of the key levers of change that the Minneapolis Foundation uses to achieve its mission: Grantmaking, policy advocacy, and convening stakeholders.

GRANTMAKING FLEXIBLE FUNDING To strengthen and expand the reach of career pathway programs, any grantmaking in this ecosystem should be as flexible as possible. Since most funding in this landscape is from public sources, providers often experience gaps and limitations in the services they can provide to support young people in successfully completing their programming. Funding from philanthropy can help providers innovate and respond to the needs of the young people they serve.

COLLABORATION The most successful career pathway programs collaborate with multiple partners. Grants that increase the capacity of organizations, institutions, and systems to collaborate and provide young people with more tangible benefits and support services will yield some of the largest returns.

K–12 CAREER READINESS INFRASTRUCTURE To better leverage our K–12 school system to help build strong career pathways, school districts need more resources to strengthen their career readiness infrastructure. Districts could use additional funding to provide young people with career advising, offer more CTE classes in which students earn certifications, form innovative partnerships with employers and higher education institutions, and deliver paid learning opportunities.

POLICY ADVOCACY PSEO FUNDING MODEL Postsecondary Enrollment Options (PSEO) is a dual-enrollment model whereby a high school student leaves their high school to take college classes on a college campus during the school day. The student can earn college credit at no cost to them because tuition for the college classes is paid from the home high school’s budget. This disincentivizes high schools from encouraging students to take PSEO courses. The PSEO funding model needs to change so high Paving the Way to Prosperity Report

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schools can better leverage the opportunity to partner with higher education institutions and create strong career pathways where students can earn a certificate or credential.

SEAT TIME High school students in Minnesota are required to receive 1,020 hours of instruction each year. This mandate is commonly referred to as “seat time.” This requirement is prescriptive and limits opportunities for students to learn through alternative instructional models such as work- or project-based learning. The seat time requirement needs to become less restrictive so high schools can provide more paid work opportunities for students as they receive high school credit.

INCREASED BASE FUNDING Due to an unprecedented budget surplus in 2023, Minnesota was able to significantly increase its investment in workforce development grant programs that serve youth, such as the Minnesota Youth Program and Youth at Work. This funding increase helped offset a decrease in the WIOA funds that Minnesota received from the federal government. A surplus at the level seen in 2023 is not expected to recur anytime soon. To continue to increase the number of young people in career pathways and provide them with resources to successfully complete programming, Minnesota needs to maintain, if not grow, its investment in youth workforce development. The state must increase its base funding in youth workforce development to at least match the investment made in 2023.

CONVENING STAKEHOLDERS EMPLOYERS To improve employer engagement in youth career pathway partnerships, employers need to better understand how these partnerships benefit not only youth, but the community and their industry. Employers must also be able to share their needs with intermediaries and program providers.

K–12 AND HIGHER EDUCATION Higher education institutions and K–12 school groups must come together to find a solution that will address challenges of the PSEO funding model. Youth career pathways are strengthened when high school students have opportunities to take college courses to earn credentials when their school cannot offer them. To ensure students can benefit from PSEO, the primary stakeholders must engage with each other to identify an alternative funding model.

STATE AGENCIES Several state agencies in Minnesota manage programs that either provide funding for youth workforce development or provide young people with the support services necessary to be successful on career pathways. However, this work often occurs in silos. Relevant parties across state agencies should come together to discuss how they might collaborate to better support young people and amplify their intended impact.

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FOR QUESTIONS ABOUT THIS REPORT AND ITS CONTENT, PLEASE CONTACT: Kenneth Eban Policy Consultant, MKE Consulting Group kenneth@mkeconsultinggroup.com

Patrice Relerford Vice President of Collective Impact & Giving prelerford@mplsfoundation.org

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