Individual training accounts

Before long, people will be able to access a bank account with a bankcard t o take money out for training and education. In fact, some satellite progra ms are already in effect. The new Workforce Investment Act (see the August issue) allows states to cr eate individual training accounts-ITAs for short-that let adults purchase t raining to upgrade their work skills. The federal government, employers, an d employees contribute to the accounts, which are exempted by the IRS from income reporting. Current federal programs supporting training include special scholarships and grants student loans learning partnerships labor-market information databases. Though the idea of ITAs is still in the fledgling stage, the President's Ta sk Force on Federal Training Technology has on its agenda to create a feder al individual training account for each federal worker. The prevailing view at present is that ITAs are a viable, but not fully developed, concept. Ho wever, in Britain, individual learning accounts-ILAs-are well underway and can serve as a model. The benefits to individuals and organizations are obvious: improved perform ance, productivity, and competitiveness.