WHITE SULPHUR SPRINGS - Southern governors want flexibility to use federal dollars to train workers - and like the idea of using their community colleges to produce much of that training, they said Saturday at their annual conference.

"Innovation demands flexibility," U.S. Labor Secretary Elaine Chao told governors and their staffs Saturday at the annual Southern Governors Association conference at The Greenbrier resort.

But that flexibility often doesn't exist, some governors said.

"A lot of folks on disability are on Medicaid," Virginia Gov. Tim Kaine said. But when they are able to get jobs in the private sector, they lose those Medicaid benefits. Instead, they remain "under-employed" in order to continue to receive the health benefits, he said.

He asked Chao about finding Medicaid policies that will allow federal health benefits for such people.

The secretary noted her department has little input with those who operate the Medicaid program. "It would be wonderful if we had departments that actually coordinated with each other," she said.

West Virginia Gov. Joe Manchin, chairman of the SGA, noted the state Legislature broke two-year colleges off from four-year institutions this year - an effort to push the two-year colleges to offer more job training courses.

"Economic development and education should go hand-in-hand," the governor told his six colleagues in attendance.

He said West Virginia needs trained coal miners because of the sudden increase in mining and soaring coal prices.

"We're running out of skilled workers," Manchin said.

Dana Waldo, Appalachian Power Co. president, said his firm constantly needs power plant control room operators.

"We teamed up with West Virginia State Community College," he said. Appalachian Power paid for the courses the control room operators needed and a simulator for the college.

"Everyone was employed by a public utility, and we hired the majority of them," Waldo said of the first graduating class.

Mike Petters, who heads Northrop Grumman's shipbuilding operation in Newport News, Va., said his firm has gone the community college route to train the estimated 15,000 shipbuilders it will need. The company worked with the Virginia Workforce Development office to make the program work.

WHITE SULPHUR SPRINGS - Southern governors want flexibility to use federal dollars to train workers - and like the idea of using their community colleges to produce much of that training, they said Saturday at their annual conference.

"Innovation demands flexibility," U.S. Labor Secretary Elaine Chao told governors and their staffs Saturday at the annual Southern Governors Association conference at The Greenbrier resort.

But that flexibility often doesn't exist, some governors said.

"A lot of folks on disability are on Medicaid," Virginia Gov. Tim Kaine said. But when they are able to get jobs in the private sector, they lose those Medicaid benefits. Instead, they remain "under-employed" in order to continue to receive the health benefits, he said.

He asked Chao about finding Medicaid policies that will allow federal health benefits for such people.

The secretary noted her department has little input with those who operate the Medicaid program. "It would be wonderful if we had departments that actually coordinated with each other," she said.

West Virginia Gov. Joe Manchin, chairman of the SGA, noted the state Legislature broke two-year colleges off from four-year institutions this year - an effort to push the two-year colleges to offer more job training courses.

"Economic development and education should go hand-in-hand," the governor told his six colleagues in attendance.

He said West Virginia needs trained coal miners because of the sudden increase in mining and soaring coal prices.

"We're running out of skilled workers," Manchin said.

Dana Waldo, Appalachian Power Co. president, said his firm constantly needs power plant control room operators.

"We teamed up with West Virginia State Community College," he said. Appalachian Power paid for the courses the control room operators needed and a simulator for the college.

"Everyone was employed by a public utility, and we hired the majority of them," Waldo said of the first graduating class.

Mike Petters, who heads Northrop Grumman's shipbuilding operation in Newport News, Va., said his firm has gone the community college route to train the estimated 15,000 shipbuilders it will need. The company worked with the Virginia Workforce Development office to make the program work.

"Look for the businesses willing to invest and make it worth their while," he advised the governors and their staffs.

At one point, Kaine pulled out a 2-foot-long organizational chart of Virginia's old work-force development program and held it up for all to see.

"This internal organization was a disaster," the governor said.

He hired a former labor leader to head the Virginia program and made the chancellor of the state's 22 community colleges the head of the program.

Manchin suggested the two-year colleges be called "community career centers" instead of colleges for those who have avoided taking college courses.

West Virginia Commerce Secretary Kelley Goes said there is "not a common language" between educators and economic development.

Kentucky officials said they take educators on field trips to work places to make them familiar with what is going on.

But others warned that frequently business leaders, also, have no real idea of what their employees do.

"The business community talks a lot," Waldo noted, but doesn't always fulfill those statements.

Manchin said the annual meetings allow governors to exchange ideas and then change policies.

"If we see something that's working, we're on the phone," he said.

Florida Gov. Charlie Crist, Kentucky Gov. Steve Breshear, Mississippi Gov. Haley Barbour, Missouri Gov. Matt Blunt and Virgin Islands Gov. John de Jongh Jr. are also attending the meeting, which ends Monday.

Reach Tom Searls at tomsea...@wvgazette.com or 348-5198.