2015 Michigan Works! Annual Conference Workforce Innovation and Opportunity Act Implementation: Continuing the Momentum 2015 Michigan Works! Annual Conference Mt. Pleasant, Michigan October 4-6, 2015

Session Overview Progress since passage of WIOA in July 2014 Key guidance released since June mini-conference Update on final WIOA regulations Key next steps in terms of implementation Today’s session will: Celebrate progress we’ve made collectively in terms of WIOA implementation since the passage of the law in July 2014; Outline key guidance released by the USDOL since June’s WIOA Ready, Set, Go Conference; Provide an update on the status of the final WIOA regulations; and Discuss key next steps in terms of WIOA implementation.

Key Accomplishments Since Passage of WIOA on July 22, 2014 Defined regions in place as part of Governor Snyder’s Regional Prosperity Initiative Alignment w/ these regions occurring at local level WIOA compliant state board established/operating Onboarding and orientation complete By-laws and governance structure in place Already held two quarterly meetings Some key policies requiring consultation approved Local area designation process complete. Gone from 24 MWAs to 16 as of October 1st. Key policies include: local area designation and local board certification.

Key Accomplishments Continued Necessary modifications made to State’s One-Stop Management Information System (OSMIS) prior to start of WIOA implementation on July 1, 2015 Able to capture necessary data for WIOA participants Necessary modifications made to State’s fiscal management system (MARS) Able to capture necessary WIA and WIOA information USDOL still working to establish performance and fiscal reporting systems for WIOA. May create need for additional changes to our systems once finalized.

Key Accomplishments Continued WIOA Ready, Set, Go held on June 17, 2015 Focused on all aspects of WIOA implementation Participation by all WIOA core partners Draft WIOA program operating guidance issued to local areas prior to July 1, 2015

Key Accomplishments Continued Closer collaboration between WIOA Titles I, II, and III with WIOA Title IV Having monthly implementation discussions Working together on State’s Unified Plan Greater partnership between WDA and MWAs This has truly been a partnership between WDA and the MWAs. All WIOA Implementation Teams had MWA representation. Analyzed new law together. WDA and MWAs collaborated on comments submitted in response to WIOA Proposed Rules. Conducted a series of Dispatch Dialogues. Held WIOA Ready, Set, Go Conference in June.

What do you feel have been some of the key accomplishments this past year from a local perspective?

Implementation Challenges/Issues Lack of timely guidance from the federal departments necessary to implement WIOA Inconsistent messaging from the federal level regarding when WIOA goes into effect USDOL says July 1, 2015 while USDOE says July 1, 2016 While we’ve accomplished a lot the past fourteen months, WIOA implementation hasn’t been without it challenges.

Challenges/Issues Continued Lack of meaningful technical assistance from the federal departments to assist with implementation Existence of multiple data systems tracking participant information for various titles of WIOA Enough with the listening sessions already! They’re not helpful. We need REAL technical assistance.

From your perspective, what have been some of the implementation challenges/issues you have faced?

Recently Issued Guidance TEGL 41-14, issued June 26, 2015 WIOA Training Provider Eligibility Transition TEGL 1-15, issued July 1, 2015 Use of WIA Waivers Under WIOA During PY 2015 TEGL 2-15, issued July 1, 2015 National Dislocated Worker Grants Under WIOA TEGL 3-15, issued July 1, 2015 Adult and Dislocated Worker Programming Under WIOA TEGL 4-15, issued August 13, 2015 Vision for the One-Stop Delivery System Under WIOA Since the WIOA Ready, Set, Go Conference in June, some additional guidance has been released by the USDOL with respect to WIOA. Some of the more important guidance includes:

WIOA Final Regulations Update Draft WIOA regulations published in April 2015 Comment period closed in June 2015 Federal departments currently considering all comments, along with other feedback received According to the law, the final WIOA regulations are to be published no later than January 22, 2016 My Opinion: Final WIOA regulations unlikely to be published by the due date specified in the law I want to take a few minutes to talk about the status of the final WIOA regulations. We cannot wait for the final WIOA regulations to be published to continue our WIOA implementation efforts. We must proceed!

Key Next Steps for Implementation Regional and Local Strategic Planning State Plan due to USDOL and USDOE March 3, 2016 Local and regional plans must be in place by July 1, 2016 Give the group an update on where the State is at in terms of the WIOA Unified Plan. WDA will issue guidance regarding the submission of regional and local plans for approval. Probably some time in early 2016. Need to begin the planning process NOW if you have not done so already.

Regional Plans Under WIOA Required Elements Establishment of regional service strategies, including use of cooperative service delivery agreements Development and implementation of sector initiatives for in-demand industry sectors or occupations Collection and analysis of regional labor market data Establishment of administrative cost arrangements, including pooling of funds for administrative costs Coordination of transportation and other supportive services Coordination with regional economic development providers Establishment of agreement concerning how region will collectively negotiate and reach agreement with Governor on local levels of performance (reporting as well) for indicators Incorporation of all local plans in planning region Taken directly from WIOA.

Local Plans Under WIOA New Elements Four-year plan; must review every two years Must include strategic planning elements Must describe workforce development system in local area Must discuss how local board will expand access to employment, education, training, and supportive services in local area Must describe strategies and services used to facilitate employer engagement, meet needs of businesses, better coordinate programs with economic development, and strengthen UI linkages Must discuss how local board will coordinate education and workforce activities with: Secondary and postsecondary education programs Adult education and literacy programs Must discuss how one-stop centers implementing and transitioning to integrated, technology-enabled intake and case management information system To review, new local planning elements under WIOA include:

Key Next Steps Continued Local Workforce Development Boards Members identified; board certified by WDA Governance structure in place Onboarding training complete Functioning A little over half of local boards have been certified under WIOA. Governance structure includes: by-laws; chair and vice chair; committee structure. Board members have a clear understanding of their role and functions; part of onboarding and orientation process. Functioning = Meeting and making decisions.

Key Next Steps Continued Memorandums of Understanding (MOUs) Local boards must execute w/ required one-stop partners Key components: Service provision and coordination Funding, including infrastructure costs Referral strategies Inclusion strategies Other provisions Duration of agreement Must review every three years Policy issuance forthcoming; will include MOU template. Not released yet as still finalizing language re: infrastructure costs. MOUs should also be executed, as appropriate, with optional one-stop partners.

Key Next Steps Continued One-Stop Delivery System Design High-quality one-stop centers: Provide excellent customer service to job seekers, workers, and businesses Reflect innovative and effective service design Operate w/ integrated management systems and high-quality staffing Local and regional footprint Use of AJC Common Identifier required by July 1, 2016 Local boards should be examining one-stop delivery system design as we move forward with WIOA implementation. Refer to TEGL 4-15, which lays out the vision for the one-stop delivery system under WIOA. TEGL 4-15 identifies three broad categories of characteristics of high-quality one-stop centers. Local and regional footprint considerations = how many full vs. satellite centers; mobile centers; use of technology to expand customer access. Reminder: Use of American Job Center Common Identifier is required as of July 1, 2016.

Key Next Steps Continued One-Stop Certification State required to certify one-stops under WIOA Guidance to be released this Winter after required consultation w/ state workforce investment board (GTIB) Mix of self-certification followed by onsite reviews

Key Next Steps Continued New WIOA Youth Expenditure Limitations Out-of-school youth emphasis (75% minimum*) Work experience requirement (20% minimum) WIOA shifted emphasis of WIOA Youth program to out-of-school youth vs. in-school youth and added the requirement that a minimum of 20% of Youth funds be spent providing work experiences to eligible youth. For most local areas, meeting these new requirements will be a challenge. Are you taking the necessary steps locally to ensure you’re in compliance with these requirements?

Key Next Steps Continued Review applicable local policies and procedures Ensure WIOA compliant Ensure strategic plan alignment Should begin doing if you have not already done so. Ongoing review and changes will be needed as additional guidance is released.

Technical Assistance What are your future needs in terms of technical assistance when it comes to WIOA implementation? What is the best format for the delivery of the needed technical assistance?

Questions?

Contact Information Krista Johnson, Manager, WIOA Title I Section Office of Talent Policy and Planning Workforce Development Agency 201 North Washington Square, 5th Floor Lansing, MI 48913 (517) 241-3249 JohnsonK2@michigan.gov Maggie Sayles, Specialist, WIOA Title I Section (517) 335-0686 SaylesM1@michigan.gov