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$250,000 DOL Grant to Help Montana’s Economy, Which is Doing Fine. State cuts AFL-CIO training program

The U.S. Labor Department announced yesterday that it is giving a $250,000 grant to the Montana Department of Labor and Industry’s Workforce Services Division to help the state shift its economy to high-growth industries that offer better work opportunities to state residents.

The timing is odd because Montana Gov. Brian Schweitzer is proudly pointing to a Feb. 8 report on Montana’s strong economy and low unemployment rate by the respected magazine The Economist, which said the state "is prospering on the back of booms in mining and farming, as well as steady growth in tourism." The state’s economy is expected to grow by 4.1 percent this year, its fifth consecutive year of growth above 4 percent, according to a University of Montana expert quoted in the magazine’s article (www.economist.com/world/na/displaystory.cfm?story_id=10650727).

Full Story: http://www.ohsonline.com/articles/58354/

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State cuts AFL-CIO training program

By Charles S. Johnson, The Standard State Bureau

The state Department of Labor and Industry cut off funding and terminated, effective Monday, its contract with the Montana AFL-CIO to provide services to laid-off workers on grounds of “non-performance.” It found that for every $1 spent to help displaced workers in Montana, the AFL-CIO spent $4.01 on its own staff salaries for its Project Challenge: Work Again program.

“An ongoing audit review showed all the money was going out the door for all the salaries, but we’re way behind in getting money to the participants,” said state Labor Commissioner Keith Kelly. “Holy smokes! We’re upside down.” The termination forced the Montana AFL-CIO to give layoff notices Monday to all eight people — six field staffers and two based in Helena — who worked on job retraining. Only four employees will remain at the state AFL-CIO, including executive secretary Jim McGarvey.

Full Story: http://www.mtstandard.com/articles/2008/02/12/state_top/20080212_state_top.txt

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