Fiscal Highlights - October 2016

The Custom Fit program funds training for Utah employees that is tailored to meet specific employer needs. The mission of the program is to support economic and workforce development through training partnerships between Utah companies and the Utah College of Applied Technology. Custom Fit serves the state through the eight applied technology colleges along with Utah State University - Eastern and Snow College. Custom Fit provides training for large and small companies across all industries, including, but not limited to, manufacturing, mining, construction, service, processing, technology, and healthcare. As illustrated in the table below, the base appropriation for the Custom Fit program was about $2.7 million for several years. During the 2014 General Session, Custom Fit received an additional $500,000 ongoing making the new base appropriation about $3.2 million. During the 2016 General Session, the Legislature appropriated an additional $800,000 ongoing for Custom Fit for a current total program appropriation of about $4.0 million. This most recent appropriation is for fiscal year 2017 so the impact of the additional funding will not be known until next year.

Each participating company contributes a minimum of 50 percent of the direct training costs. Exceptions can be made on a case-by-case basis, but, currently, on average, employers provide 60 percent of the direct training costs. The company contribution statewide is detailed in the table below. Over time the employer contribution for Custom Fit training as a percent of the state appropriation has increased from around 60 percent in FY 2011 to over 70 percent in FY 2015. The increase in employer contributions along with additional appropriations from the state has enabled Custom Fit to serve an increasing number of companies and trainees as shown in the table.