What Can Be Learned from Implementing the Workforce Investment Act (WIA)

1. What Can Be Learned from Implementing the Workforce Investment Act (WIA) Presentation on Structure of WIA Special APPAM Session November 7, 2009 Dianne Blank Assistant Director Government Accountability Office (GAO)

2. Key Themes in Progression of Employment and Training Policy in the U.S. • Less focus on-- • Income eligibility as gateway to services • Job training as primary means for getting a job • More focus on— • Personal responsibility • Reducing duplication of effort, but through service coordination • State and local flexibility in decisionmaking • Involving the private sector

3. Workforce Investment Act of 1998 (WIA)Key Changes WIA made several important changes to the system, but two are key: • Consolidated services for most federally-funded employment and training programs into a single service delivery • Redesigned the largest employment and training programs— • Abolishing the Job Training Partnership Act (JTPA) programs and creating three new funding streams—WIA Adult, Dislocated Worker, and Youth; • Changing the nature of services for these three funding streams; • Mandating changes in the way the programs measure success.

4. What Can Be Learned From Implementing WIA Consolidating Services Through the One-Stop System

5. Department of Labor Department of Education Department of Health and Human Services Department of Housing and Urban Development WIA Adult, WIA Dislocated Worker, WIA Youth Employment Service (Wagner-Peyser) Trade Adjustment Assistance Program Veterans’ employment and training programs Unemployment Insurance Job Corps Senior Community Service Employment Program Employment and training for migrant and seasonal farm workers Employment and training for Native Americans Vocational Rehabilitation Program Adult Education and Literacy Vocational Education (Perkins Act) Community Services Block Grant HUD-administered employment and training Consolidated Services The Programs Required to Participate in One-Stop Centers Involve Four Federal Agencies

6. Consolidated Services Consolidating Services through the One-Stop Has Brought Challenges • Lack of infrastructure funding • Most states rely on one or two programs to support one-stop • By 2007, the number of one-stops nationwide declined by 7 percent, officials often attributed decline to decreased funding • Some one-stop centers supplemented funding thru fee-based services, grants, or state/local government funding • Developing linkages between programs • Services increasingly available thru one-stop, but some are depending more on electronic linkages or referral • In some states linkages between key programs never developed—the case of stand-alone Employment Service offices • Creating effective governance structure • Engaging the private sector proved challenging • Workforce boards are large and unwieldy • Federal agencies other than Labor have been slow to engage

7. Consolidated Services How Successfully Has the System Been Able to Serve Employers as Customers? Employers are aware of and use the one-stop system… Source: GAO 2004 survey of private sector business establishments in the United States.

8. What Can Be Learned From Implementing WIA Redesigning Services for the WIA-funded Programs

9. The WIA-Funded Programs WIA-Funded Services Are Dramatically Different from Those of Previous Programs • JTPA focused almost exclusively on training, WIA is much more about getting a job. • WIA provides for three tiers of service for adults and dislocated workers: • Core services—basic and self-help services, such as job search assistance. • Intensive services—services requiring more staff assistance, such as comprehensive assessment. • Training—Occupational skills and on-the-job training. • Services are “technically” to be provided sequentially with core services available to anyone. JTPA had income eligibility requirements for all services.

10. The WIA-Funded Programs Availability of Training Has Been an Issue • Individuals eligible for training receive vouchers—called Individual Training Accounts • Vouchers may only be used for training from a provider that appears on Eligible Training Provider List, thereby indicating a track record of positive outcomes • Training providers began limiting available courses because of burdensome reporting requirements • In response, Labor issued waivers of the ETPL requirement • Early focus on work also caused concern that few job seekers were able to enroll in training. In 2005, we found substantial WIA funds were being used for training.

11. The WIA-Funded Programs States Have Been Hampered by Funding Issues • Funding formulas do not reflect current program design • Formula factors are not aligned with target populations • Allocations do not reflect current labor market conditions • Dislocated Worker formula suffers from excessive and unwarranted volatility

12. The WIA-Funded Programs WIA Sought to Strengthen Performance Accountability WIA established a new system to promote greater accountability than previous training programs by: • Establishing new performance measures—including job placement, earnings, and employment retention; • Requiring states to use Unemployment Insurance (UI) data to track and report on job-related outcomes; • Requiring Labor to conduct an impact evaluation to assess the achievements of the programs.

13. Some Thoughts on Reauthorization… • WIA was due to be reauthorized in 2003, efforts thus far have stalled. • The WIA system is experiencing its greatest demands and it is stretched thin. • Maintaining national competitiveness and increasing labor force participation will require… • More emphasis on incumbent worker training • Improving basic skill levels • Better linkages between education and employment • Greater involvement of employers and others in designing education and training opportunities.

14. Some Key Questions Must be Answered • How can we ensure policymakers have the information they need to make decisions about where to invest scarce resources? • How might the key players at all levels be brought to the table to participate as stakeholders and investors? • How can we balance flexibility and accountability to achieve the goals of WIA? • What can be done to make the system more nimble and able to adapt to changing economic and budgetary conditions?

15. For More Information Contacts Andrew Sherrill, Director, Education, Workforce, and Income Security Issues 202-512-7252 sherrilla@gao.gov Dianne Blank, Assistant Director Education, Workforce, and Income Security Issues 202-512-5654 blankd@gao.gov Laura Heald, Senior Analyst Education, Workforce, and Income Security Issues 202-512-5654 healdl@gao.gov GAO reports are available at: www.gao.gov. A complete listing of reports is in our paper.