Audit finds fault in Michigan job training program, claims $59M misspent

A new state audit shows that-one third of $182.5 million spent to boost worker skills went to orientation for new hires instead.
The audit also criticized the Department of Labor and Economic Opportunity for its regional oversight, saying documentation was lax
The state contested the findings

Michigan’s workforce training program spent over $59 million to reimburse employers for on-the-job training, rather than fund education to boost skills and wages, a state audit released Thursday found.

The finding on the Going Pro Talent Fund comes as candidates and state officials target Michigan’s drop to 39th in US educational attainment rankings despite increases in postsecondary credentials and work skills.

Going Pro, a state program to fund training for advanced certificates or credentials, spent $182.5 million in taxpayer funding between 2022 and 2025 toward upskilling workers, half of them in manufacturing. Over that time, 3,296 businesses benefited, with the average award $55,400.

One-third of the funding did “not comply with established program credential requirements,” according to the report released Thursday by Michigan’s Office of the Auditor General.

It is the first state audit for Going Pro — a program in the Department of Labor and Economic Opportunity, led by Director Susan Corbin — since it launched in 2014 under former Gov. Rick Snyder, a Republican.

Related:

As a result, the document notes, some of 2,245 unfunded requests — totalling about $93 million — might have qualified for funding instead.

“Taxpayers are investing tens of millions of dollars in this program each year and they expect those resources to be used effectively and consistent with the program’s purpose,” Rep. Ann Bollin, R-Brighton, told Bridge.

“This report shows substantial improvements are needed.”

Mike Murray, a spokesperson for the Department of Labor and Economic Opportunity, said the agency has taken steps to complete a more formalized internal review manual and is identifying record keeping improvements.

He called the program “a nationally recognized, highly valued and cost-effective upskilling method.”

Going Pro is popular among businesses, with advocates encouraging lawmakers to expand the program even as it faced budget cuts over the past two years.

The 2027 budget, which starts Oct. 1, funds $14.4 million for the program; last year, Going Pro’s budget was $32 million, a 40% decline from the previous year.

The state disputed many of the audit’s findings and defended reimbursements that did not lead to credentials. On-the-job training “is a recognized and nationally utilized method of upskilling, even though it does not result in a credential.”

The auditors disagreed, suggesting that the Legislature clarify better define basic training, which it hasn’t approved for Going Pro funds.

The program is not supposed to pay for orientation or onboarding, the audit found, but cited examples of manufacturers and a nursing home that were awarded grants to cover the pay of newly hired workers.