WIOA One-Stop Infrastructure Funding UPDATE Cindy Wilson Policy Associate cwilson@sbctc.edu

Intent WIOA makes improvements to the public workforce system including a requirement that partners dedicate funding for allowable infrastructure and other shared costs that are allocable to the partner and in proportion to the partner’s use and the relative benefit received by the partner program.

Infrastructure Costs Additional Costs So what are these One Stop Operating Costs? One-Stop operating costs are made up of infrastructure costs and additional costs which may include applicable career services and other shared costs.

Infrastructure Costs Non-personnel costs necessary for the general operation of the One-Stop center, including but not limited to: Applicable facility costs (such as rent) Costs of utilities and maintenance Equipment (including physical modifications to the center for access, assessment-related products, and assistive technology for individuals with disabilities) Technology to facilitate access to the One-Stop center, including technology used for the center’s planning and outreach activities Local Workforce Development Boards (WDB) may consider common identifier costs as costs of One-Stop infrastructure Infrastructure costs of One-Stop centers are defined as non-personnel costs that are necessary for the general operation of the One-Stop center, including: rental of the facilities; utilities and maintenance; equipment (including assessment-related and assistive technology for individuals with disabilities); and technology to facilitate access to the One-Stop center, including technology used for the center’s planning and outreach activities (WIOA sec. 121(h)(4) and 20 CFR 678.700). Additionally, the costs associated with development and use of the common identifier may be considered infrastructure costs. One example of a common identifier is the cost of signage for “American Job Centers (AJC),” or One-Stop centers.

Additional Costs Applicable Career Services Shall include the costs of the provision of career services in section 134(c)(2), as applicable to each program Other Costs Shared services that are authorized for and may be commonly provided through One-Stop partner programs, such as: Initial intake Identification of appropriate services Assessment of needs Referrals to other One-Stop partners Appraisal of basic skills Business services WIOA Sec. 121(i)(1) & (2) 20 CFR 678.760 (a) & (b)

Who has to participate and contribute funds?

Required One-Stop Partners Section 121(b)(1)(B) and 20 CFR 678.400 Department of Labor Department of Education Adult Education and Family Literacy Act (AEFLA) Programs Vocational Rehabilitation Carl D. Perkins Career and Technical Education Act (Perkins) Programs at the Postsecondary Level State Vocational Rehabilitation (VR) Programs Department of Housing and Urban Development Department of Justice Department of Health and Human Services Temporary Assistance for Needy Families (TANF) is “in” for WA State Several programs managed by the Department of Labor are required One-Stop partners: WIOA Title 1 Adult, Dislocated Workers, and Youth Programs; Wagner-Peyser Employment Services; The Trade Adjustment Assistance Program; Unemployment Compensation Programs; Job Corps; The Senior Community Service Employment Program ; Youth Build; Jobs for Veterans State Grants Programs; Migrant Seasonal Farmworkers Programs; and Native American Programs.

Partner Roles Section 121(b)(1)(A) Provide access to program services and activities through the One-Stop delivery system. Participate in the operation of the One-Stop system. Enter into a local memorandum of understanding with the local WDB relating to the operation of the One-Stop system, which includes the IFA. Provide representation on the State board in accordance with the specific programmatic requirements of WIOA. Partner programs, whether required or not, are expected to fill certain roles in the One-Stop center. Most importantly, partners must provide access to program services and activities through the One-Stop delivery system, as well as participate in the operations of the One-Stop system. This includes entering into a local Memorandum of Understanding with the local Workforce Development Board relating to the operations of the One-Stop system, and providing representation on the State Board in accordance with the specific programmatic requirements of WIOA. IFA---Infrastructure Funding Agreement

Memorandum of Understanding In short, MOUs must, at a minimum, describe: Services to be provided, Agreement of funding the cost of services and the operating costs of the system, Methods of referring individuals between the One-Stop operators and partners for appropriate services and activities, Strategies to meet the needs of individuals with barriers to employment, MOU duration and procedures for amendment, and Assurances that each MOU will be reviewed, and if substantial changes have occurred, renewed, not less than once every 3- year period. In short, an MOU must, at a minimum, describe: The services to be provided within the One-Stop; an agreement of funding the costs of these services as well as the operating costs of the system; any and all methods of referral; specific strategies to meet the needs of individuals with barriers to employment; and the duration of the MOU and procedures for amending WIOA Sec. 121(c)(2) 20 CFR 678.500(b)

Infrastructure Funding Agreement IFAs (formerly referred to as Resource Sharing Agreements or RSA) are a mandatory component of the local MOU described in section 121(c) of WIOA. The IFA is part of the MOU; it is not considered a separate agreement. Changes in the One-Stop partners or an appeal of a One-Stop partner’s infrastructure cost contributions will require a modification to the MOU. Infrastructure Funding Agreements, or IFAs, were formerly known as Resource Sharing Agreements under WIA. An IFA is a MANDATORY component of an MOU, and is not to be considered as a separate agreement. Any changes in the One-Stop partners or an appeal by a One-Stop partner regarding their infrastructure cost contributions will require a modification to and resigning of the MOU.

All partner contributions to the costs of operating and providing services within the One-Stop center system must: Be proportionate to the relative benefits received, Adhere to the partner program’s federal authorizing statute, and Adhere to the Federal cost principles requiring that costs are reasonable, necessary and allocable.

How can partners pay for infrastructure costs?

Types of Infrastructure Funding Per 20 CFR 678.720 (c), infrastructure costs can be provided as: cash, non-cash contributions, or third party in-kind contributions. Funding for infrastructure costs and additional costs, such as other costs and shared services, may be in the form of cash, non-cash, and third-party in-kind contributions Before I discuss non-cash contributions, let’s briefly discuss cash contributions. 1. Cash contributions are cash funds provided to the Local WDB or its designee by One-Stop partners, either directly or through an interagency transfer. Non-cash contributions are expenditures incurred by One-Stop partners on behalf of the One-Stop center and goods or services contributed by a partner program and used by the One-Stop center. 2. Non-cash contributions must be valued consistent with 2 CFR 200.306 and reconciled on a regular basis (i.e., monthly or quarterly) to ensure they are fairly evaluated and meet the partners’ proportionate share. One method to ensure that non-cash contributions are fairly evaluated is to agree on which sources or companies to be used to assess or appraise the fair market value or fair rental value of non-cash contributions. 3. Third-party in-kind contributions are contributions of space, equipment, technology, non-personnel services, or other like items to support the infrastructure costs associated with One-Stop operations. The value of third-party in-kind contributions must also be consistent with the Uniform Guidance at 2 CFR 200.306 and reconciled on a regular basis (i.e., monthly or quarterly) to ensure they are fairly evaluated, which also must be consistent with the Uniform Guidance.   There are two types of third-party in-kind contributions: General contributions to a One-Stop center’s operations (i.e., those not connected to any individual One-Stop partner program); and Those contributions made to a specific One-Stop partner program.

Local Funding Mechanism State Funding Mechanism Consensus regarding the IFA is reached. Partner contributions may be limited by program statue or regulations. Consensus regarding the IFA is not reached. Beginning in PY’17, the Governor, in consultation with CEOs, local WDBs, and the State WDB, determines partner contributions. Specified caps are in place for Partner contributions. Local areas may fund One-Stop centers in one of two ways: the Local Funding Mechanism and the State Funding Mechanism. The Local Funding Mechanism is preferred by the Statute and Regulations, as it rests control of One-Stop finances in the hands of the local board and One-Stop partners. In fact, the local mechanism must be attempted first, and the State Funding Mechanism only comes into play if the partners fail to reach a consensus on infrastructure funding. While partner contributions under both funding mechanisms may be limited by programs’ implementing statutes and regulations, the State Funding Mechanism puts specific, statutorily required caps on the amount of money that each partner can be required to pay by the Governor. It is the Governor who controls the funding of infrastructure under the State Funding Mechanism, and the Governor is expected to consult with Chief Elected Officials, Local Boards, and the State Board in implementing this plan.

Implementation Timeline Local WDBs must satisfy the requirements of section 121(h) of WIOA for purposes of funding the One-Stop system in PY 2017. All IFAs must meet the requirements of WIOA by July 1, 2017. The State Funding Mechanism is triggered for any local WDB that does not reach consensus on the IFA. Local Workforce Development Boards must meet all of the WIOA requirements for funding the one-stop system in Program Year 2017. This means that IFAs must technically be completed and meet the WIOA requirements by July 1, 2017. In reality, the IFAs must be completed much sooner than July 1, 2017, as Local areas must report the inability to reach consensus to the Governor by a date specified by the Governor; a provision designed to allow the Governor time to implement the State Funding Mechanism, which is triggered when consensus on an IFA cannot be reached.