Senator Eric Pratt (R-Prior Lake) has introduced legislation that creates a Shakopee Area Workforce Development Scholarships pilot program. This unique pilot would create a scholarship program that would create a public-private partnership between local businesses, the city, and higher education institutions, and would incentivize entrepreneurship in high-demand job areas. The goal of this program would be to grow the local workforce in Shakopee, while providing an opportunity for students to experience a wide array of job opportunities. To be eligible, students must commit to working in a high-demand job in Shakopee for 3 years. 

“Shakopee embraces its past, but is also aware of its growing population, which has put a strain on the local workforce,” said Pratt. “The continued workforce shortages, primarily driven by an aging population that is retiring without enough young people to replace them, require us to think of workforce and career training differently. This innovative pilot program would create a partnership to address those challenges. It’s important that we find ways to incentivize high-demand jobs, making sure all of the stakeholders are contributing.”

This innovative program will start in Shakopee and have the potential to be a model initiative for addressing statewide workforce development challenges. Participating employers will be required to contribute 25% of each scholarship, and employers will be allowed to receive an equivalent tax credit against their income. Scholarship recipients will be required to work in the area for 3 years.

“There is a small tax credit for employers, which will incentivize them to participate in this pilot program,” said Pratt. “Our employers already pay into the Workforce Development Fund, but rarely get anything in return for the training they provide themselves. Including a tax credit means that participation in this pilot program will be beneficial for both scholarship recipients and employers.”

The amended bill has passed through the Senate Jobs and Taxes committees, and now heads back to the Jobs committee for its final stop.