Colorado Department of Labor & Employment (CDLE)

1. Colorado Department of Labor & Employment (CDLE) Implementation of the American Recovery and Reinvestment Act (ARRA) Prepared for the Progressive 15 Spring Conference Presented by Jennifer R. Beck Burlington Workforce Center April 17, 2009

2. Workforce Development Programs • Workforce Investment Act • Wagner-Peyser

3. Workforce Investment Act (WIA)Job Training • The Workforce Investment Act was originally signed into law on August 7, 1998. Colorado implemented WIA in July 2000. • WIA reformed previous job training programs by creating a comprehensive, seamless and integrated system of one-stop centers offering training and employment service to all job seekers and employers. • The system allows Colorado to create a pipeline of skilled workers to meet industry needs and increase our competitive edge in the global economy.

4. Workforce Investment Act (WIA)Job Training • The Recovery Act provided an additional $3,950,000,000 in funding for job training nationwide. • Of this amount, $3,118,500,000 was directly disbursed to states and local workforce agencies in the form of formula grants. • The federal formula and in-state formula are based on local need as reflected in poverty and unemployment figures and are mandated by federal law and regulation. • Colorado’s total allocation amount equals $31,132,248. • WIA allocations are separated into three (3) distinct funding types: Adult, Youth and Dislocated Worker.

5. Workforce Investment Act (WIA)Job Training Adult: • Training and employment services for unemployed or underemployed individuals 18 or older. • Priority of service to low income adults • Skill upgrades and occupational training for high-growth industry/sector jobs including new energy and green jobs. • Nationwide funding to states equals $495,000,000 • Colorado’s allocation equals $4,792,362. • 15% for state administration and discretionary initiatives: • $ 718,854 • 85% formula-allocated to workforce regions: • $4,073,508

6. Workforce Investment Act (WIA)Job Training Dislocated Worker: • Training and employment services for individuals 18 and older, who through no fault of their own have been laid-off or are at risk of layoff. • Retraining laid off workers to prepare for demand occupations including new energy and green jobs • Retraining incumbent workers to avoid layoffs • Nationwide funding to states equals $1,435,500,000. • Colorado’s allocation equals $14,464,916. • 15% for state administration and discretionary initiatives • $2,169,737 • 25% for Rapid Response (layoff assistance) activities • $3,616,229 • 60% formula-allocated to workforce regions: • $8,678,950

7. Workforce Investment Act (WIA)Job Training Youth: • Training and educational services for individuals age 14-24 who are low income, disabled, homeless or in need of assistance to increase basic literacy skills. • Serve in-school and out-of-school youth with reading and math remediation • Provide career and industry-specific exposure and work readiness through summer youth employment opportunities • Nationwide funding to states equals $1,188,000,000. • Colorado’s allocation equals $11,874,970. • 15% for state administration and discretionary initiatives • $1,781,246 • 85% formula-allocated to workforce regions: • $10,093,724

8. Workforce Investment Act (WIA) • Core Services: Initial assessment, labor market information, referrals to jobs, career planning, job search workshops, referrals to intensive and training services. • Intensive Services: Case management, in-depth assessment, career counseling, pre-vocational workshops, supportive services, subsidized work experiences and literacy classes. • Training Services: Occupational skills training, on-the-job training, customized training, skills upgrade, entrepreneurial and job readiness training. • These services apply to the Adult, Youth and Dislocated Worker programs. The Youth program is further divided into more detailed federal reporting categories.

9. Workforce Investment Act (WIA) • Colorado’s WIA allocations are allotted further to Nine (9) Workforce Regions. • These Regions are: Adams County $ 2,503,234 Arapahoe/Douglas Counties $ 2,613,208 Boulder County $ 1,015,080 City and County of Denver $ 3,883,971 El Paso/Teller Counties $ 3,277,091 Larimer County $ 1,014,913 Rural Consortium $ 5,486,091 Tri-County $ 1,762,002 (Jefferson/Gilpin/Clear Creek) Weld County $ 1,290,599 $22,846,183

10. Workforce Investment Act (WIA)

11. Workforce Investment Act (WIA) • Rural Consortium Regional Allocations

12. Wagner-Peyser (WP) • Wagner-Peyser Act of 1933, as amended by Public Law 97-300 Job Training Partnership Act (JTPA), effective October 1, 1983; as amended by Public Law 105-220 Workforce Investment Act of 1998, effective August 7, 1998; and C.R.S. Title 8, Article 71, Sections 101 and 106. • Labor exchange system providing core services to all job seekers and offering employer services including: recruitment, screening and referral of qualified applicants • Serves all job seekers and employers (no eligibility) and has no training activities; can be self-service through automation, or staff-assisted • There are two (2) categories of Wagner-Peyser ARRA Funding • ARRA Wagner-Peyser labor exchange services – Colorado received $2,329,663 which has been fully allocated to regions • ARRA Reemployment Services – core and intensive services targeted to Unemployment Insurance claimants- Colorado received $3,882,771 which has been fully allocated to regions

13. Wagner-Peyser (WP)Labor-Exchange • The Recovery Act provides an additional $396,000,000 for Labor-Exchange activities nationwide. • Of this amount, Colorado’s total allocation equals $6,212,434. • The federal allocation is based on need as reflected by unemployment. The in-state allocation is based on unemployment, job seekers served, and size of region in square miles. • Colorado’s total allocation is further separated into $3,882,771 for Reemployment Services (RES) and $2,329,663 for WP labor exchange.

14. Wagner-Peyser (WP)Regional Allocations

15. Wagner-Peyser (WP)Regional Allocations

16. Total Recovery Act Fundingby State (in millions) Source: United States Department of Labor, Dallas Regional Office

17. Unemployment Insurance • Emergency Unemployment Compensation (EUC) • Federal Additional Compensation (FAC) • Unemployment Insurance Modernization • Unemployment Insurance Administrative Funding

18. Emergency Unemployment Compensation(EUC) • The Recovery Act extended the expiration of the EUC Program from August 29, 2009, to May 31, 2010. • The goal of the program is to promote economic recovery and assist persons most impacted by the recession. • The EUC Program under the Recovery Act begins for claims filed on or after March 2009. • Monitor/Tracking Process: • CDLE’s Finance office has integrated coding and tracking of Recovery Act funds into the existing accountability structures and systems. The CDLE Finance and Budget offices are jointly responsible for the monitoring and reporting of ARRA funds monthly, quarterly and as needed.

19. Federal Additional Compensation(FAC) • The Federal Additional Compensation Program provides a $25 weekly supplement to the unemployment insurance benefits. • FAC is payable to unemployed individuals who are receiving either state or federal unemployment insurance benefits. • FAC is paid for by Federal General Revenue. • The program pays benefits for the week ending February 28, 2009. • The last payable week for FAC will be the week ending July 3, 2010. • The department estimates that a total of 58,000 Coloradoans will receive FAC benefits weekly.

20. Unemployment Insurance Modernization • The Recovery Act sets aside $7,000,000,000 in incentives for states that enact specified “UI Modernization” provisions in state law. • If Colorado enacts all necessary changes, the state will receive $127,469,762. • Funding for UI Modernization is from the Federal Unemployment Account (FUA).

21. Unemployment Insurance Modernization • If Colorado enacts “alternative base period” legislation, it will receive one-third (1/3) of its available allocation which equals $42,489,921. • An alternative base period allows claimants to include the most recent quarter of earnings in the base period calculation.

22. Additional Colorado Department of Labor and Employment ARRA Provisions Trade Adjustment Assistance (TAA) • Worker Training and Placement in High-Growth Industries • Dislocated Worker National Reserve • YouthBuild • Job Corps • Federal Income Tax Deduction • Cobra • Work Opportunity Tax Credit (WOTC) • Leaking Underground Storage Tank Fund (LUST)

23. Other ARRA Provisions Impacting the CDLE • Trade Adjustment Assistance. The bill reauthorizes and expands the Trade Adjustment Assistance (TAA) program by, among other things, extending TAA benefits to trade-affected service sector workers, increasing funding available to states, and increasing the accessibility of training, health care, and reemployment TAA benefits. • Worker Training and Placement in High Growth Industries. The bill provides $750,000,000 for competitive grants for worker training and placement in high-growth occupations. Of this amount, $500,000,000 is dedicated to preparing workers for occupations in renewable energy and energy efficiency as described in the Green Jobs Act of 2007. Of the remaining $250,000,000 the priority will be to prepare workers for careers in health care. • Dislocated Worker National Reserve. The bill provides $200,000,000 for the dislocated national reserve. This funding provides the Secretary of USDOL to make emergency grant awards for areas experiencing mass layoffs, plant closings, and other types of worker dislocations.

24. Other ARRA Provisions Impacting the CDLE • YouthBuild. The bill provides $50,000,000 for the YouthBuild program dedicated to funding for services for at-risk youth who gain experience and occupational credentials while constructing or rehabilitating affordable housing. • Job Corps. The bill provides $250,000,000 for the Office of Job Corps. The funds will be used to for the construction of residential facilities serving at-risk youth. Job Corps provides career development services to at-risk youth ages 16-24. • Federal Income Tax Deduction. Under current law, unemployment insurance benefits are included in the calculation of an individual’s gross income for tax purposes. The bill excludes from the calculation of up to $2,400 of unemployment insurance benefits. This deduction becomes effective for the 2009 taxable year.

25. Other ARRA Provisions Impacting the CDLE • COBRA. The bill provides a 65 percent subsidy for COBRA health insurance payments to persons who have been involuntarily separated from a job. The subsidy is limited to nine months. • Work Opportunity Tax Credit. The bill expands eligibility for the Work Opportunity Tax Credit to employers who hire unemployed veterans and disconnected youth between the ages of 16 and 25. • Leaking Underground Storage Tank Fund. The ARRA provides the Environmental Protection Agency with $190,700,000 for environmental cleanups of underground petroleum storage tanks. On April 8, 2009, the department’s Division of Oil and Public Safety was awarded $2,540,000 for cleanups.