WIA Reauthorization 2005

1. WIAReauthorization2005

2. The Bills H.R. 27 Job Training Improvement Act Passed March 2nd S. 9 The Lifetime of Education Opportunities Act WIA is Title IV-B Introduced January 24th

3. What’s New?Not Much!

4. Job Training ReformPresident’s Proposal • Increase State Flexibility • Reduce Overhead Costs • Increase Use of Innovation Training Accounts • Clarify Performance Expectations • Increase Role of Partners in Training Workers • Implement Personal Reemployment Accounts

5. Consolidated Funding Streams • WIA Adult, Dislocated Worker and Youth, and Employment Services • Provide $4 billion to Governor’s with: • less red tape • more flexibility

6. Reduce Administrative Overhead • Clarify administrative cost limitations • Impose stricter limitations on administrative overhead • Enforce statutory limits carefully • An estimated $300 million can be saved and used to train more workers

7. WIA PlusConsolidated State Grants • Governors will have the option to consolidate up to five additional federal employment and training programs administered by: • Department of Labor • Department of Education • Department of Agriculture

8. WIA Adult $894M WIA DW $1.1B WIA Youth $995M WP $786M Adult Education $564M Voc Rehab $2.6B Food Stamp E&T $27M Veterans $161M TAA $259M WIA Plus Total: $7.5 Billion

9. WIA PlusBenefits • Flexibility to design system that trains workers for jobs in the 21st century • Reduce administrative overhead • Train more workers • Achieve better results

10. H.R. 27Definitions • Accrued Expenditures • Administrative Costs

11. Administrative Cost Limit • State Level - 5% • Local Level - 10%

12. Infrastructure Funds • State Board • Criteria for Allocation • Oversight of Fund Use • Approaches to Facilitate One-Stop Cost Allocation • State Plan • Method for Determining Partner Contributions • Formula for Allocating to Local Areas

13. Infrastructure Funds • Governor Determines Partner Portions • Proportionate Use of One-Stop Centers • Funds Available for Administration Costs • Excludes Native American Programs • Share Determined Locally • Under Cost Allocation/Resource Sharing & MOU

14. Infrastructure Costs • Non-personnel costs only • Includes • Rental costs of the facilities • Utilities and maintenance • Equipment, including adaptive technology • Strategic planning activities • Common outreach activities

15. Local Cost Allocation & Resource Sharing • Still Required • To Pay for: • Excess Infrastructure Costs • Other Common Costs • Costs for Provision of Core Services

16. Allotments&Allocations • Multi-Part Formulae • Prior Funding Streams • Prior Funding Formulae • Current Level of Funding

17. CETA • Secretary’s Reserve - 10% • 75% - National Dislocated Worker Grants • 20% - Demonstration Projects • 5% - to Provide Technical Assistance • State Allotments - 90% • ¼ of 1% - for Outlying Areas • 26% - W-P based Formulae • 74% - Adult & DW based Formulae

18. Wagner-Peyserportion • Up to Prior Year Amount Available • Prior year allotment percentage to each State • Excess Amounts Available • Relative Number of Individuals in the Civilian Labor Force in State compared to All States • No State receives less than 3/10 of 1% of Excess

19. WIA Adult & Dislocated Workerportion • 60% - Relative # Unemployed in State • 25% - Relative Excess # Unemployed • 15% - Relative # Disadvantaged Adults

20. State Reserve50% of Consolidated Funds • 50% - Support Provision of Core Services • Distributed to Local Areas using Formula • Objective & Geographically Equitable • Factors may include: • # Certified Centers • Population Served by Centers • Performance of Centers • May be used by State to Employ State Staff in Local Areas to Provide such Services

21. State Reserve50% of Consolidated Funds • Remaining 50% or less • Rapid Response [no longer 25%] • Traditional • Additional Assistance • Other Statewide Activities • No longer Required and Other • Many kept • Some combined • Some new

22. Local Allocations • 85% - Statutory Formula • 60% - Relative # Unemployed • 25% - Relative Excess # Unemployed • 15% - Relative # Disadvantaged Adulets • 15% - Governor’s Discretionary Formula • Developed in Consultation with State Board • Objective and Geographically Equitable • May include Demographic & Economic Factors

23. Reallotment&Reallocation • Based on Unexpended Balance • Amount in excess of 30% • Determined using Reported Accrued Expenditures

24. S. 9 • Definitions • Accrued Expenditures • Administrative Costs • Not Addressed??? • Separate funding streams • Some Formula Changes • Reallotment & Reallocation

25. Infrastructure Funds • Local Option • Maintain current Cost Allocation & Resource Sharing Methodology with MOU • Failure mandates use of State Process • Use State Infrastructure Funding Process • State Process • Includes Caps on different Programs • WIA & W-P = 3% • Most Others = 1 ½ % • VocRehab = increasing amounts ¾% - 1 ½%

26. Real Property • Federal Equity transferred to States • Property still to be used for UI & W-P • Disposition Options remain the same • Disposition Proceeds used for UI & W-P • No More Amortization with UI & W-P $$s

27. Questions???