NICC Facing Possible Funding Cuts for Soft Skills Training

Know what's happening in your hometown. Help us keep you informed. CALMAR, Iowa — Northeast Iowa Community College officials are raising concerns about changes to Iowa's workforce training programs, saying the changes could affect the college's ability to provide employers with training in leadership, communication and other professional skills. The NICC Board of Trustees discussed the changes during its Monday, Oct. 19, meeting. College officials said businesses have identified professional development and interpersonal skills as important workforce needs, even as state workforce training programs emphasize technical skills. Local employers emphasize leadership, communication skills "From a community college positioning, we feel the strong voice right now is the businesses," NICC President Dave Dahms said. Amy Lasack, vice president of Business and Community Solutions at NICC, said regional employers have identified leadership, communication and other interpersonal skills as important workforce training needs. She cited Upper Iowa Beef in Lime Springs as an example, saying the company directs much of its customized training budget toward leadership development. Changes affect Iowa workforce training programs The discussion comes as Iowa implements changes to its Industrial New Jobs Training Program, known as 260E, under House File 2799, enacted in 2026. The law limits administrative expenses under the program to 15% of eligible program costs and excludes travel, conference and legal fee reimbursements. It also requires employers entering into new 260E agreements to reimburse community colleges for at least 25% of training costs. The law ends new awards under the program's withholding-tax credit component after June 30, 2026, and calls for an interim study committee to review the program and submit recommendations to the Legislature by Dec. 15, 2026. The 260E program supports training for employees in newly created jobs. Iowa's 260F program, meanwhile, helps employers train existing employees through forgivable loans that can cover up to 70% of eligible training costs. NICC officials expressed concern about how changes to workforce training programs could affect the college's ability to respond to local employers' needs, particularly in rural communities where employers may rely on community colleges for customized training. College officials also discussed the administrative and recordkeeping requirements associated with workforce training programs. What's next The interim study committee is expected to submit its recommendations by Dec. 15, ahead of the 2027 legislative session. The committee's review could help determine what further changes, if any, lawmakers pursue for Iowa's workforce training programs. Don't miss what's happening around Decorah. Get the news in your inbox.