State mulls call center training subsidy cuts

Higher-quality jobs are needed, analysts suggest

SANTA FE — New Mexico is considering a proposal to rein in job-training subsidies to customer-support call centers as the state expands overall funding for classroom and on-the-job training for expanding businesses.

The New Mexico Economic Development Department is accepting public comments ahead of a May 10 hearing about several proposed rule changes to the state Job Training Incentive Program.

The program offers to reimburse between 50 percent and 75 percent of wages for new employees at businesses that expand or relocate to New Mexico.

Lawmakers and Gov. Susana Martinez earlier this year boosted annual funding to the program from $2 million to $4 million, with an additional $5 million in one-time appropriations.

The rule changes under discussion could lead to reduced reimbursement rates for call centers and also raise eligibility requirements for the industry.

In a written assessment of economic development programs at two state agencies, analysts for the state Legislature raised concerns last week about the quality of new jobs in the private sector.

“New Mexico is actively adding jobs, as statewide unemployment has trended downward,” staff at the Legislative Finance Committee wrote in a briefing. “But the challenge is creating well-paying opportunities for a skilled labor force that in turn bolsters the state’s average income and incentivizes workers to stay.”

Since the start of the fiscal year in July, the state has approved $13.7 million in jobtraining subsidies linked to 1,316 additional jobs in an array of industries, from brewing to aviation. The average estimated wage for those jobs was about $21 an hour.

The state’s job-training program previously has subsidized customer support businesses, including Covergys, an Ohiobased company that announced two rounds of layoffs this year to reduce employment by 258 positions.

Other possible program changes would eliminate extra wage reimbursements for military veterans, recent graduates of state colleges and workers who complete a skillsassessment exam. Officials say the added incentive did not spur significant hiring.

New Mexico’s unemployment rate has been falling as the oil and natural gas sectors rebound from a slump in energy prices, though the state still has the second-highest unemployment rate among states after Alaska. The state’s workforce is smaller than it was a decade ago.