Workforce Innovation and Opportunity Act (WIOA) Stephen E. Parker, Legislative Director Human Services Finance Officers July 31, 2014 Louisville, KY

Workforce Innovation and Opportunity Act (WIOA) Bill Passage and Timeline Overview of WIOA Key Dates for Implementation What are the major changes that will have the greatest impact on States/State WIBs?

Background Authorized in 1998 Implemented Over Two Years; Effective in July 2000. Original Allocations Called for $6 billion Annual Investment WIA Funding in FY 2000: $4.7 billon WIA Funding in FY 2014: $2.9 billion Expired in 2003 GAO Report, Upjohn Institute, DOL Research One reason Congress has been reluctant to pony up money is the need for structural reform. A 2011 GAO report found that the WIA system was a byzantine maze — 44 of the 47 WIA programs overlapped in scope with at least one other program. For example, all eight Native American-focused programs provided seven similar services but had different eligibility requirements. On top of all that, WIA featured a messy accountability system. Different programs featured different metrics for different populations. Programs administered through job centers, which include things like matching people with jobs and helping them with workplace skills, had different metrics than adult education programs, which themselves had different metrics than programs for disabled people seeking help. What the rewrite fixes The new bill as passed by the Senate strips out 15 programs, 12 of which were unfunded last year, according to the National Skills Coalition. This represents a compromise between an older Senate version of the bill that had planned to cut 6 programs an older House version that would have cut 35. The bill will also streamline other areas, like by drastically cutting membership on state and local boards that govern workforce development. Those cuts will mean local business leaders will get greater voices in steering these boards' decisions, as National Journal reported. In addition, there will now be more uniform indicators of how well WIA's many programs are working. The very act of making the data uniform means these Labor Department programs will finally all be clearly aimed at the same goals of re-employing Americans. Most importantly, several studies suggest job training programs under WIA work, though to varying degrees. A 2009 review of job training studies found that adult job training programs generally yield substantially higher wages for adult participants (as opposed to participants in youth programs). That said, there are so many studies — from the Labor Department, from academics, from think tanks, all with different degrees of rigor — that figuring out exactly how helpful the WIA is has been nearly impossible. Some have found WIA programs to have modestly negative returns on investment. Ideally, the new yardsticks in the new bill will help solve that problem.

SSource: U.S. Department of Labor Employment and Training Administration

SSource: U.S. Department of Labor Employment and Training Administration

SSource: U.S. Department of Labor Employment and Training Administration

Quick Process May 22, 2014 - Bill Introduced. June 25, 2014—Senate passes bill (H.R. 803) by a vote of 96-3. July 9, 2014—House passes bill (H.R. 803) by a vote of 415-6. July 22, 2014—President Obama signs the bill into law (Public Law 113-128)

WIOA Overview WIOA Covers the Following DOL Programs: Adult, Dislocated Worker, and Youth formula programs Job Corps program Indian & Native American Program YouthBuild program Evaluations & Multi-State Projects Wagner-Peyser (ES) and LMI Programs

WIOA Overview WIOA Covers the Following Dept. of Education Programs: Adult Education and Literacy programs Vocational Rehabilitation and other Rehabilitation Act programs

WIOA--Overview Includes several NGA priorities including: Reaffirmation of governors’ 15 percent set-aside for statewide employment and training activities Common accountability metrics measuring all federal workforce programs Preservation of gubernatorial authority over state workforce investment boards.

WIOA Overview Coordination with Federal Workforce-Related Programs At the State level, WIOA establishes unified strategic planning across “core” programs, which include: Title I Adult, Dislocated Worker and Youth programs; Adult Education and Literacy programs; Wagner-Peyser Employment Service; and Title I of the Rehabilitation Act programs. Coordination with Federal Workforce-Related Programs

Changes with the Greatest Impact on States/State WIBs 15 WIA Programs Eliminated Reduces size of the State Boards and provides additional responsibilities to help achieve State strategic planning. 61 to 33 Requires at least 20 percent of board membership to include workforce representatives. Sector Strategies

Changes with the Greatest Impact on States/State WIBs Includes hold harmless provisions for Dislocated Worker formula funds. Requires at least 75% of youth formula funds to be spent on out-of-school youth (ages 14-24). 100% Transferability Between Adult and Dislocated Worker Programs Governors Sanctioning Authority Focus on Incumbent Worker Training

WIOA Overview Key Dates for Implementation In general, the Act takes effect on July 1, 2015, the first full program year after enactment, unless otherwise noted. Proposed regulations must be published by January 18, 2015 (180 days after enactment). The State Unified Plans and Common Performance Accountability provisions take effect July 1, 2016.

WIOA Overview Key Dates for Implementation July 22, 2015—Eligible Training Provider provisions to be implemented by Governors and SWIBs. January 22, 2016—DOL, ED & HHS must publish Final Rules (18 months after enactment) March 3, 2016—Deadline for state Unified Plan submission.

Implications For States Implementation Timeline Implementation Funding Regional Designation Process Role of the Local Boards Funding for Local Infrastructure Shift in Priority to Out-of-School Youth Data Infrastructure/Collection

What Issues/Concerns Do You Have that NGA Should Follow?

Contact Stephen E. Parker Legislative Director Education and Workforce National Governors Association Email: sparker@nga.org Phone: (202) 624-5369