1. Implementing Successful Subsidized Employment Programs with ARRA TANF Emergency Funds: Round Table Discussion With Regions II and III www.transitionaljobs.net

2. Need for Subsidized Employment/Transitional Jobs programs Continues to be Significant  Unemployment remains staggeringly high - projected to remain above eight percent even two years from now.  As of December 2009, 15.3 million people were unemployed, the unemployment rate was 10 percent.  Among the unemployed, the number of long-term unemployed (those jobless for 27 weeks and over) continued to trend up, reaching 6.1 million.  Millions of people faced high unemployment rates prior to the recession and have been particularly hard hit during this crisis.

3. What is Subsidized Employment? Subsidized Employment = payments to employers or third parties to help cover costs of employee wages, benefits, supervision, and training.  Temporary, wage-paid, real work  Intended to build the skills and experience of entry-level workers (participants learn to work by working)  Based on strong partnerships with local employers and other community agencies  Provides needed supports while working and during the transition to unsubsidized employment

4. Transitional Jobs: Definition Transitional Jobs (TJ) is a workforce strategy that utilizes subsidized employment as a vehicle to transition people with barriers to employment into work using time-limited, subsidized, wage-paying jobs that combine real work, skill development, and supportive services, to transition participants successfully into the labor market.

5. Why Create A Subsidized Employment/ Transitional Jobs Program?  Employment & service strategy that:  Provides those with little or no work history an opportunity to work and earn money;  Builds skills and an employer reference;  Readies people to transition to unsubsidized employment;  Is stimulative to communities; and  Helps states meet TANF goals.  Creates work opportunities for TANF recipients during an economic recession  ARRA TANF Emergency Fund offers matching federal funds

6. TANF Emergency Fund: Subsidized Employment  ARRA TANF Emergency Fund - $5 billion available for states to qualify for increased expenditures in three categories - subsidized employment being one of them.  Up to 80% of increased expenditures can be reimbursed.  HHS urges jurisdictions to include all expenditures related to operating a subsidized employment program including overseeing the program, developing work sites, and providing training to participants when applying for funding. (No. TANF-ACF-PA-2009-01, April 3, 2009)

7. Clarification on the Use of Third-Party Expenditures  A State that has appropriate agreements in place - is allowed to count third-party expenditures as maintenance-of-effort (MOE) if expenditures are for eligible families and meet a TANF purpose.  Dollars claimed as MOE and spent in any of the three Emergency Fund categories will count when calculating the amount of emergency funds for which the State is eligible.  The employer’s costs for supervising and training a subsidized employee can count as a State expenditure for MOE and the Emergency Fund, but not the employer’s unreimbursed wage costs.

8. Roundtable Discussion Objectives  Provide a planning/discussion opportunity for TANF program administrators and staff in thinking about the key tasks involved with creating subsidized employment programs.  Walk though the process of developing new and/or modifying existing subsidized employment programs.  Provide information about the resources available to assist with program design and ongoing development.

9. Key Tasks in Designing/Implementing a Subsidized Employment Program  Defining the target population  Gathering support /identifying “champions”  Creating an administrative infrastructure  Defining work placements  Developing a service model  Securing program funding and leveraging other resources  Establishing contracts and formal agreements  Creating a process for evaluating and refining the program

10. Define a Target Population TANF’s broad eligibility offers unique opportunity to tailor services and program to target population for subsidized employment:  Hardest to employ – what does that mean in your state?  Non-custodial parents – examples from other counties/states  Other population groups

11. Potential Target Populations: People with Multiple, Severe Employment Barriers  Little or no work history  Low literacy  Lack of a H.S. diploma or GED  Language/cultural barriers to work  Criminal record  Substance abuse  Mental health barriers  Domestic violence  Lack of adequate or no housing  No or unreliable transportation  Child care issues Transitional Jobs benefit people with serious challenges to getting and keeping a job and those who have failed in other job search or employment models. Groups that face these or other barriers to employment are a good fit for Transitional Jobs programs:

12. Gather Support and Identify Champions  Identify strategic and influential leaders  Use leaders to market the initiative and leverage  Gather evidence to build a case for subsidized employment  Create a sense of vision and mission  Consider your approach – is “top down” or “bottom up” most effective?  Consider media and positive press

13. Program Infrastructure Considerations  How will your state implement this program?  How will participants be recruited and enter into the program?  How many people do you hope to serve?  Who will be the employer of record?  Agency/Service collaboration – how can you ensure that participants receive necessary services and supports?

14. Considerations for Subsidized Employment Sites  Work site structure options: scattered site, work crew, social enterprise, or a combination.  Level of job readiness of clients may influence decisions about types of employers (e.g., nonprofit, public, private)  How will work hours and wages be set?  How will you engage employers and keep them involved?  Supports to employers may encourage their involvement (e.g., liaisons, training)

15. Ensuring Effective Participant Supports Throughout the Program  Partnerships (agencies, service providers) upfront are critical  Screening and assessment are important to individualize service delivery  Match clients to work placements  Create achievable goals  Identify and address service needs along the way  Case managers must be equipped with an array of supportive services to address needs

16. Ensuring Effective Participant Supports Throughout the Program (cont.)  On-site job supports teach clients how to work while they are working:  Work site supervision/mentoring  Job coaching  Education and skills training increases clients’ employability and job options  Job retention services support clients through the transition to unsubsidized work

17. Program Funding and Leveraging Other Resources  Identify funding sources (e.g., TANF, ARRA Emergency Funds, Workforce Investment Act, Private Foundations)  Leverage resources from providers, community-based organizations, and employers  Document In-kind contributions

18. Contracts and Formal Agreements  Community-based contracts for services  Formal interagency agreements - leverage subsidized employment slots and support services  Employer agreements - establish expectations of employers  Agreements with local labor unions may be necessary for some job placements

19. Evaluate and Refine the Program  Defining outcome goals and measuring success  Gathering and analyzing the data  Using data for marketing and program improvement  Creativity and adaptability improves the likelihood of program sustainability

20. Challenges - Developing & Implementing Subsidized Employment Program  Subsidized employment programs require time and effort to get up and running  The economic recession may reduce the number of employers willing to participate  Balancing the needs of employers with the needs of clients  Effectively sharing agency resources and coordinating service delivery  Moving clients into permanent jobs

21. Opportunities - Developing & Implementing Subsidized Employment Program  TANF Emergency fund creates new opportunities during difficult economic times  Subsidized employment models may be tailored to local needs and resources  Collaborative model maximizes the strengths of community partners  Model has demonstrated success with hard-to-employ populations  Programs have been shown to create cost savings for states

22. NTJN TANF Administrator’s Toolkit – Sample of Resources Below - www.transitionaljobs.net  Frequently Asked Questions: TJ & TANF Emergency Fund  Key Questions in Designing TJ Initiatives  Transitional Jobs Program Design Elements  TJ Initiative Toolkit; State Case Study, Sample Scope of Work,  Sample RFP’s, Scoring Guide, Contract Samples, Payment Benchmarks, & Site Assessments  TJ Program Budgeting Worksheet  Making the Employment Connection: New Opportunities to Support TJ Programs Using the TANF Emergency Contingency Fund  New Evidence for the Efficacy of TJ Programs  Research Evidence for Transitional Jobs – Fact Sheet  Transitional Jobs Return on Investment Study  TJ Program Needs Assessment

23. NTJN Role & Services The NTJN exists to influence audiences to ensure that policies account for the hard-to-employ, that the public understands the need to invest in these services, that programs are able to effectively serve as many individuals as possible, and that best practices and technical assistance are widely shared and implemented throughout the network.  Technical Assistance  State and Federal Advocacy  Monthly Newsletters – sign up at www.transitionaljobs.net  National Conference

24. For more information, contact: Amy Rynell arynell@heartlandalliance.org Melissa Young myoung@heartlandalliance.org www.transitionaljobs.net www.transitionaljobs.net