Last Thursday, Michigan Governor Gretchen Whitmer signed an executive order to streamline and better coordinate efforts within state government to meet the state's business and labor needs by consolidating workforce and economic development functions under the Department of Labor and Economic Opportunity (LEO), which is the new name for the Department of Talent and Economic Development (TED). In addition to the reorganization, the governor named Jeff Donofrio the new director of the department.
"This new department will make Michigan a home for opportunity by improving how our state approaches workforce and economic development to ensure that everyone has a path to a high-paying job," Whitmer said. "Jeff has proven that he knows how to get the job done by building strong partnerships with business and labor leaders, and I know that he's the right guy to move this state in the right direction."
Executive Order 2019-13 restructures the Department of Talent and Economic Development as the Department of Labor and Economic Opportunity. The order consolidates all workforce and economic development functions, which were previously scattered between various departments, into the re-named department to streamline operations. Among other agencies, LEO will include the Michigan State Housing Development Authority, the Michigan Strategic Fund, and the Michigan Office of New Americans, which is transferred from the Department of Licensing and Regulatory Affairs and rebranded as the Office for Global Michigan.
The executive order also creates new commissions within the department, including the Workers' Disability Compensation Appeals Commission and the Unemployment Insurance Appeals Commission.
"Michigan is home to some of the hardest working people and best businesses in the world," Donofrio said. "And while we've seen strong job growth since the Great Recession, too many of our residents still struggle to make ends meet today, and many more worry about how they and their families will fair in the future. While talent is equally distributed across the state, opportunity often isn't. I'm excited to get to work increasing opportunity for Michiganders by closing the skills gap, breaking down barriers to work, and supporting job growth."
Donofrio has served under Mayor Mike Duggan as the city's executive director of workforce development since 2015, helping increase residential employment by more than 20,000 under his tenure. In this role, he led many of the city's most successful initiatives to reform workforce development programs for in-demand fields, build better pathways to high-paying careers, and remove barriers to employment, including leading the charge against the now-defunct driver responsibility fees. Other notable projects include:
- A $30 million revitalization of career technical education for youth and adults at Detroit Public Schools Community District's Randolph (construction & skilled trades,) Breithaupt (automotive, robotics and service industry,) and Golightly (tech/innovation).
- A $20+ million economic development partnership to create a talent pipeline for the Gordie Howe International Bridge construction, Ford's Corktown Campus, FCA's Jefferson North and Mack Avenue assembly plants.
Currently, only 45 percent of Michiganders have a degree, credential, or certificate in addition to a high school diploma even though a majority of employers require further education. In her State of the State address, Whitmer focused on closing the skills gap by setting the state's first goal to increase the number of people with a postsecondary attainment to 60 percent by 2030.
The Department of Labor and Economic Opportunity is charged with building a strong state economy by developing and implementing policies that enable greater opportunity for workforce and economic development, including a focus on closing the skills gap and boosting economic potential for businesses. As the new director, Donofrio will coordinate efforts on behalf of the executive branch to achieve these goals and ensure the state's economy remains strong.
Stephanie Beckhorn will remain as the acting director of the department until a start date is confirmed, upon which Donofrio will take over as director.
Executive Order 2019-13 requires submission to the legislature and takes effect after 60 days.
Published: Mon, Jun 10, 2019
