CELEBRATING GREENWAYS March 26, 2014 FEDERAL WORKFORCE DEVELOPMENT POLICY AND FUNDING UPDATE

1. CELEBRATING GREENWAYS March 26, 2014 FEDERAL WORKFORCE DEVELOPMENT POLICY AND FUNDING UPDATE

2. SYSTEMIC CHANGE REQUIRED • STUDENT AID FINANCING AND POSTSECONDARY EDUCATION RESTRUCTURING • TARGETED DISCRETIONARY RESOURCES (e.g., TAACCT, WIF, H-1B) • LEVERAGING CHANGE WITHIN EXISTING SYSTEMS THROUGH KNOWLEDGE AND GUIDANCE • SYSTEMS ALIGNMENT / INCREASED FLEXIBILITY • HEA • WIA • Wagner Peyser / UI • Apprenticeship • TANF/SNAP • CTE • DOT/HUD/DOE Alignment of Systems and Changes to Structure, Culture and Financing of Federal Policies and Programs

3. BIG PICTURE GOALS FOR WORKFORCE REFORM Emphasis on Completion & Credentials with Value in Labor MarketRethinking “traditional” ways of doing things (e.g., Early College; Career Pathways; Competency-based Learning; Acceleration Strategies; Credit for Prior Learning; Work-based Learning)Systemic Change / System Alignment/ Leveraging Resources Emphasis on Employer Engagement/High Demand SectorsEmphasis on Shared Data / Performance

4. HIGHER EDUCATION ACT Federal student aid, authorized under title IV of the Higher Education Act (HEA), far surpasses funding for training under WIA and other federal workforce training programs combined. *Pell Grants for students age 24 and older shown in blue

5. STRUCTURAL AND FINANCING CONSIDERATIONS (CONTINUED) • The U.S. postsecondary education system, and federal student aid must reflect the needs of today’s students, not just traditional students (the focus in the 1960s) • The structure and culture of postsecondary education and training and the student aid that finances it must change to move students through education and training more quickly and efficiently

6. HEA REAUTHORIZATION Timing: • Hearings / On-going • Reauthorization – Unlikely this Congress Expected Issues: • College Costs • Student Aid Simplification • Pell Eligibility / Deficits • Accountability

7. TO ACHIEVE NEEDED SYSTEMIC CHANGE -- HEA MUST • Increasingly reflect needs of high demand employers • Continue student aid eligibility for non-traditional students • Restore Ability to Benefit (ATB) at least for Career Pathways students • Promote and test competency-based and other forms of accelerated learning for title IV eligibility • Promote additional accelerated learning strategies (e.g., credit for prior learning; identification/ training for skills gaps; dual-enrollment • Clarify title IV eligibility for stackable credentials that result in eligible programs of study; use of current year income for dislocated wkrs • Promote integration with work-based learning opportunities (work study; internships; apprenticeships)

8. TARGETED DISCRETIONARY & ADMINISTRATIVE WAIVER AUTHORITYFUNDING • HEA Experimental Sites Authority • WIA National Emergency Grants, Pilots & Demonstrations • H-1B funding (Youth CareerConnect; Work-Ready grants) • Workforce Innovation Fund (WIF) • TAA Community College Training (TAACCT) grants (last round) • TANF Waiver Authority • Working as a whole, these resources could leverage significant change—resulting in state and regional employment and training strategies that cut across individual programs and funding silos

9. WIA, TANF, CTEFLEXIBILITY AND WAIVER AUTHORITY • Discretionary funding can lead to reforms in broader workforce system—replication of best practices and system innovations. • Common performance measures and data can lead to cross-system priorities, alignment and reforms • Joint guidance, waiver and other flexibility authority (e.g., WIA, Ed-Flex, Experimental Sites and TANF waivers), and incentives— can lead to career pathways systems (building from joint framework for Career Pathways systems).

10. WIA REAUTHORIZATION - HOUSE

11. WIA REAUTHORIZATION - HOUSE Passed House March 15, 2013 (party-line vote) Consolidates 27 programs into single Workforce Invest Fund Designation of Regions left to Governors Allows for Single Block Grants to States Requires *LWIBs & SWIBs with 2/3 Business Representation (only required members) Requires training for jobs in high demand (sector-based training encouraged but not required); no Career Pathways requirement Decreased emphasis on targeted populations & youth

12. WIA REAUTHORIZATION - SENATE Bipartisan bill – building on last Congress’ draft (Murray/Isakson) Committee reported this Summer Limited consolidation – increases emphasis on aligned strategic planning, performance measurement, data and reporting Requires regional convening, planning, service delivery; and partnerships for innovation, growth, and leveraged funding Increased emphasis on training in high demand sectors Strong emphasis on Career Pathways Encouragement for integrated service delivery models, particularly adult education, WIA and postsecondary programs

13. CAREER & TECHNICAL EDUCATION (CTE) Reauthorization of Perkins CTE – issues to consider: Expansion of rigorous Programs of Study Alignment with/ Career Pathways systems development Alignment of CTE curricula w/ Common Core State Standards; and Common Career Technical Core with employer validated occupational skills and credentials Promotion of acceleration (e.g. dual-enrollment, competency-based strategies) Assurances that coursework is non-duplicative, articulates secondary to postsecondary, results in attainment of industry-recognized credentials and employment in high demand jobs Opportunities for contextualized and work-based learning

14. CAREER & TECHNICAL EDUCATION (CTE) Reauthorization of Perkins CTE – issues to consider: Expansion of rigorous Programs of Study Alignment with/ Career Pathways systems development Alignment of CTE curricula w/ Common Core State Standards; and Common Career Technical Core with employer validated occupational skills and credentials Promotion of acceleration (e.g. dual-enrollment, competency-based strategies) Assurances that coursework is non-duplicative, articulates secondary to postsecondary, results in attainment of industry-recognized credentials and employment in high demand jobs Opportunities for contextualized and work-based learning

15. TRANSPORTATION WORKFORCE FUNDING Infrastructure Funding, especially transportation, a major focus in Budget.Infrastructure funding is a major job creation tool; resources also available for workforce development.In addition to a $10 million fund for OJT (FHWA), states are allowed to use ½ of 1% of their surface transportation program funds for on-the-job training (OJT) program for underrepresented populations at the discretion of states’ transportation agencies.Section 504(e) of the MAP21 Act allows funds to states for core programs to be used for workforce development, training and education (e.g., tuition, professional development, internships, program support, apprenticeships) Solicitation out for Regional Surface Transportation Workforce Centers to enhance transportation workforce efforts in 5 regions of US (NE, MW, SE, SW, W)

16. PRESIDENT’S FY 15 BUDGET & STATE OF THE UNION FOCUS ON JOB-DRIVEN INITIATIVES Raising Min Wage For Federal Contract Workers ($10.10)Partnering with Leading CEOs on Long-Term UnemployedExpanding Apprenticeships (2x over 4 years):mobilizing business, community college & Labor; dedicating resources from multiple sources including Community College Partnership GrantsSummits: Expanding College Access; Long-Term Unemployed; Building a 21st Century Workforce for America’s Working Families – to build support from business leaders, educators, labor, mayors, governors and others for policies and practices in these areas. Tax cuts for working families; Expansion of EITC; Investments in skills training; Research & Development

17. PRESIDENT’S FY 15 BUDGET & STATE OF THE UNION Pro-growth Infrastructure Investments, Including a 4-year $302 Billion Surface Transportation Reauthorization Proposal Extension of Extended UI & ReformsWorkplace Fairness for Women – Funding & encouragement for paid leave policies; strengthening of Equal Pay ActGovernment-wide Study of Federal Training Programs (Biden)SelectUSA -- Aggressive Reform and Expansion of government efforts to level playing field -- invest in and bring jobs to the US Closing loopholes that reward offshoring

18. PRESIDENTS’ BUDGET ON POSTSECONDARY EDUCATION Focus on Expanded Access, Completion, Acceleration, Lower CostsNew College Ratings System(completion/affordability)Bonuses to Colleges for Improving Educational Outcomes For Low- And Moderate-income StudentsReinstatement of ATB for determining Pell Eligibility for Students without a HS Diploma or GED if co-enrolled In Adult and Postsecondary Education in a Career Pathways Program Increasing Pell maximum, creating an American Opp Tax Credit; student loan reforms to eliminate bank subsidies$ Pilots, Demonstrations, Evaluations of Alternative HEA Strategies That Promote Persistence, Academic Success And Acceleration Toward Degrees/Credentials

19. PROMOTING INNOVATIVE, JOB-DRIVEN APPROACHES TO TRAINING AND EMPLOYMENT SERVICES Proposes additional $750 mil to restore prior cuts in training and employment services targeted to Innovation & Special PopulationsHolds WIA Dislocated Worker, Adult, and Youth formulas at FY 14$80 mil for Incentive Grants to reward states exceeding performance for subpopulations with barriers To employment$60 mil for the Workforce Innovation Fund$15 mil for regional Sector initiatives

20. PRESIDENT’S FY 2015 JOB DRIVEN BUDGET $1.5 bil in each of 4 years ($6 bil total) Community College Job-Driven Training Fund  - $500 mil devoted each year to new Apprenticeships–doubling US apprenticeships over 5 years$4 bil new Career Pathways Program streamlining and building on best elements of DW and TAA programs$2 bil mandatory Bridge To Work funding allowing UI receipt while in short-term work placement & other back to work strategies$4 bil mandatory funding (over 2 years) for partnerships with business, education & training providers for long-term unemployed$2.5 bil for Summer Jobs Plus and Innovation grants to improve skills and career options of Disadvantaged Youth.

21. ADMINISTRATION BUDGET AND EXECUTIVE ACTIONS CONTINUED $158 mil for reemployment & eligibility assessments/services to test getting people back to work as quickly as possibleNo funding requested for WANTO – intending that the $500 mil per year (under the Community College Partnerships) will be devoted to expansion of apprenticeships including those for women in nontraditional occupationsH-1B Ready to Work Solicitation ($150 mil out now) to prepare and place those facing long-term unemployment into good jobs – focuses on OJT, paid work and apprenticeships as major strategies for reemploymentLast round of TAACCCT grants expected soon

22. MARY GARDNER CLAGETT Director, Workforce Policy mclagett@jff.org DC 202.709-5330, Ext. 406 TEL 617.728.4446 FAX 617.728.4857 88 Broad Street, 8th Floor, Boston, MA 02110 122 C Street, NW, Suite 650, Washington, DC 20001 WWW.JFF.ORG