NGA Center for Best Practices March 2009 Workforce Development Funding in the American Recovery and Reinvestment Act NGA Center for Best Practices March 2009

The ARRA American Recovery and Reinvestment Act of 2009—H.R. 1 Signed into law by President Obama on February 17, 2009 Total amount for Training and Employment Services under the Department of Labor -$3.95 billion

Intent of Workforce Funds The three guiding principles in utilizing the ARRA monies are: Transparency and accountability in the use of Recovery Act funding Timely spending of the funds and implementation of activities Increasing workforce system capacity and service levels 

Intent of Workforce Funds The money intended to boost the capacity of the workforce system and increase service levels to meet the growing demand for workforce services.  It is a supplement to existing WIA and Wagner-Peyser formula funding and is not intended to replace current appropriations or allocations.

WIA Adult Funding $500 million—WIA Adult Training Explicitly includes supportive services and needs-related payments Prioritizes intensive and training services for recipients of public assistance and other low-income individuals

WIA Youth Funding $1.2 billion—WIA Youth Training: Encourages summer jobs programs for youth Eligibility increased to age 24 Focus on young adults who have become disconnected from both education and the labor market Work readiness performance indicator only measure of performance used to assess effectiveness of summer jobs Funds cannot be used to fund Youth Opportunity Grants. 

WIA Dislocated Worker Funding $1.25 billion—WIA Dislocated Worker Formula Grants Encourages adoption of state and local policies that include necessary supportive services and needs-related payments for dislocated workers to participate in job training.

WIA Funding WIA Formula grants, Adult, Youth and DW will be allotted to States using existing formula allocations within 30 days of enactment.  Funds are available to the States through PY 2010 (June 30, 2011). To immediately stimulate the economy, Congress intends these funds to be spent quickly and effectively.

National Reserve Funding $200 million—WIA Dislocated Worker National Reserve Encourages States and local workforce areas to establish policies that assure that supportive services and needs-related payments that may be necessary for an individual's participation in job training are a part of the dislocated worker service strategy.

YouthBuild Funding $50 million—YouthBuild (PY 2008 and 2009) Funds allow for expanded services for at-risk youth, who gain education and occupational credentials while constructing or rehabilitating affordable housing.  Allows YouthBuild grantees to serve individuals who have dropped out of school and reenrolled in an alternative school, if that reenrollment is part of a sequential service strategy.

Competitive Grants $750 million—Competitive Grants for Worker Training and Placement in High Growth and Emerging Industry Sectors: $500 million designated for research, labor exchange and job training projects that prepare workers for careers in energy efficiency and renewable energy industries as described in the Green Jobs Act of 2007.  $250 million prioritized for projects that prepare workers for careers in the health care sector; and for wireless and broadband deployment, and advanced manufacturing and other high demand industry sectors identified by local workforce areas. 

Older Worker Funding $120 million—Community Service Employment for Older Americans: Funds available through June 30, 2010 Provided to current grantees in proportion to PY 2008 allotments. 

UI Funding $400 million—State Unemployment Insurance and Employment Service Operations: $250 million is reserved for reemployment services to unemployment insurance claimants.  Funds shall be made available through September 30, 2010. 

Job Corps Funding $250 million—Job Corps Funds can be used for construction, rehabilitation and acquisition of Job Corps Centers.  Funds available for obligation through June 30, 2010. The Secretary of Labor may transfer up to 15% of funds to meet the operational needs of such centers, which may include training for careers in the energy efficiency, renewable energy, and environmental protection industries.  

UI Funding Unemployment Compensation Provisions: Extends Emergency Unemployment Compensation through December 31, 2009. $25 increase in weekly unemployment compensation benefits through 2009. Temporarily waives interest accrual and payments on state loans borrowed from the federal trust fund to pay state UI benefits through 12/31/10.

UI Funding Unemployment Compensation Modernization One-time incentives (total $7 billion) to reward and encourage States that enact specific reforms to increase UC coverage among low-wage, part-time and other jobless workers, as well as provides an additional $500 million in administrative funding to all States.

UI Funding Unemployment Compensation Provisions (con’t) Extend unemployment compensation for 13 weeks to railroad workers, who are not included in the Federal/state unemployment system and provide temporary federal assistance to states for the administration of the Extended Benefits program. Suspension of Federal Income Tax on UI Benefits on the first $2,400 of unemployment compensation benefits received in 2009.

Trade Adjustment Assistance Funding Expansion of Trade Adjustment Assistance (TAA) Programs Extends TAA to trade-affected services sector workers and workers affected by off-shoring or outsourcing to all countries. Increases training funds available to states by 160% to $575 million per fiscal year Creates a new TAA program for trade-affected communities

Trade Adjustment Assistance Funding Expansion of Trade Adjustment Assistance (TAA) Programs (con’t) Allows for automatic TAA eligibility for workers suffering from import surges and unfair trade Makes training, healthcare and reemployment TAA benefits more accessible and flexible Improves the TAA for Firms and TAA for Farmers programs Reauthorizes all TAA programs (which expired December 31, 2007) through December 31, 2010.

Tax Credits Work Opportunity Tax Credit Creates new targeted groups for the WOTC. Unemployed veterans and disconnected youth who begin work for the employer in 2009 or 2010.

Other Training Funding Green Jobs $100 million for Electricity Delivery and Energy Reliability (Department of Energy) Indian Affairs $40 million for workforce training programs and the house improvement program under the Bureau of Indian Affairs – Operation of Indian Programs

Other Training Funding Health Care Jobs $500 million to address health professions workforce shortages under the Department of Health and Human Services – Health Resources and Services. Includes $75 million for the National Health Service Corps.

Other Training Funding Community College and Career Training $40 million for fiscal years 2009 and 2010, and $10 million for the period beginning October 1, 2010, and ending December 21, 2010 to fund the Community College and Career Training Grant Program Industry Sectors $40 million for fiscal years 2009 and 2010, and $10 million for the period beginning October 1, 2010, and ending December 21, 2010 to carry out the Sector Partnership Grant program under section 279A

Top 10 Ways to Get Out of the Box and Make the Most of ARRA Funds

Top 10 Ways to Get Out of the Box and Make the Most of ARRA Funds Innovate, create, change! ARRA is an unprecedented opportunity to do something new, replicate a best practice, pull in a distant partner, expand what works, eliminate what doesn’t. Congress and the tax payers expect that ARRA spending will dramatically increase opportunities for Americans and for business.

Top 10 Ways to Get Out of the Box and Make the Most of ARRA Funds Two heads are better than one! Or three, or four, or five. Don’t do this alone. Build new partnerships, create new alliances, leverage resources across agencies and programs, share ideas, toss out “turfism”, topple silos, and junk arbitrary jurisdictional boundaries.

Top 10 Ways to Get Out of the Box and Make the Most of ARRA Funds Pay it forward. Use the funds strategically to address short-term worker and industry needs and to position the state for the post-recession economy.

Top 10 Ways to Get Out of the Box and Make the Most of ARRA Funds Teach a person to fish! ARRA prioritizes Adult services for low income individuals and those with employment barriers, disabilities and for older workers.

Top 10 Ways to Get Out of the Box and Make the Most of ARRA Funds Don’t get funny with the money! Don’t even think about supplanting current workforce spending with ARRA funds. Use ARRA funds to expand training opportunities and services beyond what exists today.

Top 10 Ways to Get Out of the Box and Make the Most of ARRA Funds Work hard, play harder! Congress likes the concept of summer jobs for youth and has put their money where their mouth is – all $1.2 billion of it, to make sure you have the resources to do it right.

Top 10 Ways to Get Out of the Box and Make the Most of ARRA Funds Build it and they will come! Reauthorization of TAA comes with big and bold goals of expanding eligibility and training more workers. Here’s your opportunity to reenergize a stale program.

Top 10 Ways to Get Out of the Box and Make the Most of ARRA Funds You said you can do it, now prove it! Demonstrate accountability and performance of ARRA funds with separate and more frequent reporting. Adapt MIS systems accordingly.

Top 10 Things States Should Pay Attention To Mind the details! Current waivers apply to the ARRA funds, but states will be required to re-submit their waivers for approval as part of their state plan modification/extension by June 30, 2009.

Top 10 Things States Should Pay Attention To Begin with the end in mind! States will be measured by how quickly they distribute the money, the size and quality of the expanded services, and the number of people who are trained and get good jobs.

The Last Word… Use It or Lose It!