Obama wants $12B for community colleges

WARREN, Mich., July 14 (UPI) -- President Barack Obama proposed a $12 billion plan Tuesday to strengthen U.S. community colleges so they can better educate people seeking 21st-century jobs.

Speaking at Macomb Community College in Warren, Mich., Obama portrayed the plan as a key to job training and retraining at a time when the White House expects unemployment to hit 10 percent in the next few months.

"We've got to prepare our people with the skills they need to compete in this global economy," Obama said. "Time and again, when we placed our bet for the future on education, we have prospered as a result -- by tapping the incredible innovative and generative potential of a skilled American workforce."

Obama dubbed the plan the "American Graduation Initiative," designed to increase by 5 million the number of community college graduates by 2020.

"It will reform and strengthen community colleges like this one from coast to coast so they get the resources that students and schools need -- and the results workers and businesses demand," he said, drawing applause.

Community colleges, which now enroll about 6 million students, play a vital role in keeping American business competitive and preparing the nation's workforce for technological change and more global competition, Obama said.

The biggest chunk of money -- $9 billion -- would go toward "challenge grants" designed to promote innovation on community college campuses. This might include building partnerships with businesses, developing workplace-education programs, improving remedial and adult-education programs, and offering students "comprehensive, personalized" services tailored to their goals.

Another $2.5 billion would go toward modernizing college facilities and $500 million to develop online courses.

The president said the plan would not increase the deficit because it would be paid for "by ending the wasteful subsidies we currently provide to banks and private lenders for student loans."

Obama noted Michigan has been has been hard hit by job losses. With the U.S. auto industry flailing, Michigan's jobless rate of 14.1 percent leads the nation, and state officials say it may reach nearly 17 percent next year.