Services and Funding Work Team One Stop System Building Tool Kit: How to design it and how to pay for it

About the Tool Kit Designed by State/Local Work Teams Practical! First Chapters: Services and Funding Memorandums of Understanding More to Come! Look for One Stop System Building next Others as needs are further identified

Services and Funding: Some of the Challenges Partners must be involved at every stage of the process: share common vision Creating Quality local systems: there really aren’t shortcuts to get there Out of the Box Thinking Achieving genuine integration of services Overcoming real (and perceived) restrictions on funding so that it can be mixed, leveraged, and shared for the benefit of the local system.

Lay out of Services and Funding Introduction Environment, Opportunities and Challenges Seven Strategies to help your local area design the services for your local one stop system,determine the cost of those services, a process to allocate and share the cost of those services, and how to continually improve your local system.

About the Seven Strategies Each strategy has useful tips and practical suggestions, examples, sample matrixes and other tools to use. At the end of each strategy, there is a listing of useful resources (suggestions only!) All of those resources are on Web Sites: NYSDOL: www.wdsny.org NYATEP: www.nyatep.org Meant to be used with NYSDOL Technical Advisory on Cost Allocation

Some caveats This is a living document, some things may change Will there be enough time to do all seven? What if our area has already have gone through some of these strategies? These are suggestions, your area may decide to take a different approach. Advice for whatever you use: make sure it is consistent with the intent of the law, and document the process.

The Seven Strategies 1. Determine Customer Needs (Business and Job Seeker) 2. Define the Local One Stop’s Vision, Mission, Values and Goals 3. Develop a Plan for the Delivery of Services 4. Identify which of the partners provide each service 5. Determine the Cost of the System 6. Allocate the Cost Among the Partners 7. Continuously Improve you System

Strategy 1: Determine Customer Needs Collect data! Use what you already have, if possible Kinds of data to be collected are identified (description of customers, what are their needs and wants, demographics, labor market, wage data, etc.) How the data can be collected (surveys, focus groups, LMI, etc.) Resources to help you get the data

Strategy 2: Vision, Mission, Goals Use what has already been established by the Local Workforce Investment Board and Chief Local Elected Official (s) Important to have partner and local WIB buy-in (best yet, that they are/were involved in the development) Use consensus Align with vision in WIA and the NYS vision contained in the Design Team Report Consider using an outside facilitator

Strategy 3: Develop the Service Plan 11 Steps you can follow to develop your service plan, including mix of services based on customer needs/wants; what other services beyond core does your area want to provide; develop common definitions of core services; what intensive services will be provided, etc. Required Core and suggested core services Your local area will probably want to add services for business customers

Strategy 4: Develop List of partners to provide each service 7 steps for this strategy, including Develop a matrix of which partner currently provide which service (several samples included in the on-line resources) Criteria for deciding which partner provides which service Decide which partner will deliver what Eliminate duplication, identify gaps, fill gaps Reach consensus on partner responsibilities

Strategies 5 and 6 Strategy 5: Strategy 6: Determine the Cost of the System Strategy 6: Allocate Costs Among the Partners

Determine the Cost of the System Build on the Service Plan Developed in Previous Strategies -- Particularly Strategies 3 and 4 Two Perspectives: Local Workforce Investment Board Member One-Stop Partner The Cost of the System Includes Both -- Shared System Costs, and Shared Service Costs

Ten Categories of Shared System Costs Technology for the System Facilities Performance Tracking Capacity Building System Administration / Fiscal Management Planning Marketing Operations Shared Services Other

Seven System Components Seven Components: Local Workforce Investment Board Youth Council Grant Recipient / Fiscal Agent One-Stop Center(s) One-Stop Operator(s) Affiliate Site(s) Other (can be defined by local area)

A Suggested Process For Each Category of Costs and System Component: Estimate what will be needed to deliver the planned activities Determine what resources are on hand, who has them and what their value is Determine what resources are not on hand and what they will cost The sum of items 2 and 3 equals the total cost of the system

A Suggested Process Identify all potential resources and determine what direct costs should be charged to them. Subtract from item 4 The balance (item 4 minus item 5) is the system cost to be covered by the partners Determine what part of item 6 is assigned to year one of the five year plan Assess affordability: if costs can be covered, proceed with allocation among partners, if not, review and adjust service plan Conduct reviews regularly and make adjustments as appropriate

Some Tips on Determining System Costs Work with your local Fiscal Staff to adapt or develop a matrix and worksheets for identifying system costs Differentiate services and system costs for each year of the 5 year plan Determine all funding streams available to fund the system Determine the “employer of record” for any shared positions: this determines salary and benefit levels Determine local, State and federal guidelines for establishing the value of contributions to the one-stop system

Determining Shared Service Costs There are many acceptable methods for determining the cost of each type of service. One method: partners jointly define -- The items involved in delivering the service that carry costs The cost per participant for the service Each partner estimates anticipated volume of service for next program year and estimated cost Partners/LWIB estimate system wide volume and anticipated costs for next year

Total Cost of the One-Stop System The sum of the Shared System Costs and the Shared Service Costs equals the Total Cost of the System. The Local Workforce Investment Board must approve the plan for services and costs or recommend some other action.

Allocate Costs Among Partners Costs must be distributed proportionally across funding streams based on benefits received by that funding stream OMB Circulars A87, A21, and A122 provide guidance on applicable cost principles Partners may pay their share -- in cash; through contributions; or through a combination of cash and contributions

A 3 Step Process for Allocating Costs Allocate shared costs using an appropriate allocation methodology as outlined by NYSDOL or as allowable in OMB Circulars Assess affordability in relation to resources. Negotiate adjustments if necessary Conduct ongoing reviews of costs and how costs are allocated. Adjust allocation plan as appropriate

Examples for Allocating Shared Costs Tip: Seek Stable Allocation Bases Technology: usage Facilities: square footage Performance tracking: usage Capacity building: total staff Fiscal Management: total staff Planning: participant count Marketing: usage Operations: varied depending on item

Strategy 7: Continuously Improve your One Stop System 13 steps to building a continuous improvement culture among the partners Eight principles of quality improvement Measurement, Performance evaluation, Report Cards involving all partners is critical Resources: Lots of web sites and materials are available, including the Enterprise and Simply Better Products

Three Strategies we do not Recommend Put a “One Stop” sign on your Center and wait for other partners to show up with wheelbarrows full of $$$$ Open a “One Stop” Center (with one or a couple of partners) and send a bill to the other partners for their “fair share” Wait for the Partners’ Oversight Agency (at the state or federal level) to direct them to pay their fair share