1. Michael Brustein, Esq. mbrustein@bruman.com Steven Spillan, Esq. sspillan@bruman.com Brustein & Manasevit, PLLC www.bruman.com Spring Forum 2013 History and Status of WIA Reauthorization Brustein & Manasevit, PLLC 1

2. Roadmap WIA Background Recent Studies Previous Attempts at Reauthorization Current Proposed Legislation Legislative Outlook 2 Brustein & Manasevit, PLLC

3. WIA: Background Enacted in 1998, with a five year reauthorization Reauthorization is now 10 years overdue Purpose of WIA: Reorganize and streamline federal workforce development Include businesses in the process Create Workforce Investment Boards (WIBs) One-Stop Career Centers 3 Brustein & Manasevit, PLLC

4. WIA Title I Services Primary Federal WIA Funding: Youth Adult Dislocated Workers 4 Brustein & Manasevit, PLLC

5. Workforce Investment Boards Regional entity to implement WIA At least 50% of members should be from businesses Designated seats for labor unions, higher ed Oversee One-Stops 5 Brustein & Manasevit, PLLC

6. One-Stops Entities responsible for administering WIA collaborate to create a seamless system of service, enhance access to services 19 required One-Stop Partners; 5 additional partners Represented on the local WIB 6 Brustein & Manasevit, PLLC

7. Recent Funding Trends WIA Title I Programs remain (mostly) level funded. For FY 2013, final allocations should be slightly lower than FY 2012, due to 5% (sequestration) and 0.2% (CR) cuts. 20112012 Youth$826 million$824 million Adult$770 million$771 million Dislocated Worker$1.3 billion$1.2 billion 7 Brustein & Manasevit, PLLC

8. Recent Studies GAO Reports on Federal Job Training Programs Used annually in Congressional debate Both in reauthorization and appropriation hearings Shows duplication among various programs and agencies 8 Brustein & Manasevit, PLLC

9. GAO Report on Training Programs Jan 2011: “Colocating Services and Consolidating Administrative Structures” Looked at FY 2009 47 different federal job training programs $18 billion in total 9 federal agencies, but primarily: DOL ED HHS 9 Brustein & Manasevit, PLLC

10. GAO Jan ‘11 Report Nearly all programs track multiple outcome measures, but only 5 have had an “impact study” completed since 2004 Nearly all programs overlap in services or target populations with at least 1 other program Most target Native Americans, veterans, and youth, and some “economically disadvantaged” Despite overlap, separate administrative structures offer similar services 10 Brustein & Manasevit, PLLC

11. GAO Jan ‘11 Report Barriers to combining administrative structures: One-Stop capacity One-Stop location No data to support consolidation Insufficient collaboration at the federal level 11 Brustein & Manasevit, PLLC

12. GAO Jan ‘11 Recommendations DOL and HHS should work together to develop and disseminate information about: State initiatives to consolidate program administrative structures; and State and local efforts to colocate new partners, such as TANF, at one-stop centers. 12 Brustein & Manasevit, PLLC

13. GAO Jan ‘11 Recommendations Information on these topics could address: Challenges faced Strategies employed Results achieved Remaining issues 13 Brustein & Manasevit, PLLC

14. GAO Jan ‘11 Recommendations DOL and HHS: Examine incentives for colocation Identify options for increasing such incentives 14 Brustein & Manasevit, PLLC

15. Previous Reauthorization Attempts 112 th Congress (2011-2012) 2011: All talk, little/no action House held hearings on duplication and waste in federal job training programs Senate released “discussion draft” but never formally marked up legislation Just before Christmas, House introduced two WIA- related bills 15 Brustein & Manasevit, PLLC

16. House Bills: December 2011 Streamlining Workforce Development Programs Act Eliminated requirement for labor union and state legislature seats on state WIBs Consolidated most funding streams into new Workforce Investment Fund Various changes related to authority of State WIBs and Governors to award competitive grants Bill never went beyond the subcommittee level 16 Brustein & Manasevit, PLLC

17. House Bills: December 2011 Local Job Opportunities and Business Success Act Limited required WIB seats to businesses (no requirement for unions/higher ed) Requires two-thirds of the WIB members to be “business owners or officers” Requires local WIBs to Engage local businesses to meet their needs and support local economic growth Develop strategies for using technological improvements to facilitate access to services Bill never even came up for debate in the subcommittee 17 Brustein & Manasevit, PLLC

18. House Reauthorization Bills 2012 Democratic Bill: Requires States to create a single State plan that “streamlines existing job training programs and expands the use of on-the- job training.” Allows WIBs to contract with community colleges to provide group training classes that provide useful job skills. Creates a community college grant to train workers in high- growth industries like health care and transportation. Standardizes and establishes common reporting requirements and performance measures, including job placement. No movement 18 Brustein & Manasevit, PLLC

19. House Reauthorization Bills 2012 Workforce Investment Improvement Act Consolidates 27 WIA programs into Workforce Investment Fund States would also be required to adopt a common set of performance measures to judge the success of all programs 2/3 of WIB membership for businesses Provides Governors authority to further consolidate resources if they have a “responsible plan” The bill passed the Education and Workforce Committee, but stopped there. 19 Brustein & Manasevit, PLLC

20. Senate Action Politically Correct Descriptions of Senate Action: Stalled Holding Pattern Negotiation Phase More Accurate Terms: Bupkis Nada Zilch Failure to Launch 20 Brustein & Manasevit, PLLC

21. Senate 2011 Drafts Senate HELP Committee released draft language Title-by- Title in 2011 Altered make up of State WIBs 1/3 business 1/3 labor unions 1/3 government rep Local WIBs Majority business 20% labor unions 10% government rep 21 Brustein & Manasevit, PLLC

22. Senate 2011 Drafts Set Standards for State Performance Measures Required Secretaries of Education and Labor to develop long ‐ term performance goals for each of the core programs Creates New Workforce Innovation and Replication Grants Promote the development of comprehensive workforce development systems at the State, regional, and local levels Promote innovation and to improve, replicate, and expand models and strategies of demonstrated effectiveness Establish and improve programs for youth by providing access to career pathways 22 Brustein & Manasevit, PLLC

23. Current Reauthorization Efforts Supporting Knowledge and Investing in Lifelong Skills (SKILLS) Act Similar to previous House GOP bills Consolidates 35 training programs (including adult and dislocated worker funding) into Workforce Investment Fund Allows Governors to consolidate additional programs at the state level to “improve administrative efficiency” Requires two-thirds of WIB members be employers Use a set of common performance measures for services offered to workers 23 Brustein & Manasevit, PLLC

24. SKILLS Act vs. WIA of 1998 The sections of the SKILLS Act mirror the WIA sections, making amendments to the current language Focus is on changing WIA Title I programs, amending Adult Ed programs, and making changes to the Wagner-Peyser Act Major focus on modifications, rather than “reinventing the wheel” 24 Brustein & Manasevit, PLLC

25. SKILLS Act Title I: Amendments of WIA 1998 Subtitle A: Definitions Subtitle B: Statewide and Local Workforce Investment Systems Subtitle C: Job Corps Subtitle D: National Programs Subtitle E: Administration Subtitle F: State Unified Plan 25 Brustein & Manasevit, PLLC

26. SKILLS Act State WIBs Eliminates required labor union seat on state WIBs Specifies that representatives of business on WIB represent “large and small businesses with immediate and long-term employment opportunities in in- demand industries and other occupations important to the state economy.” 26 Brustein & Manasevit, PLLC

27. SKILLS Act State WIB: Assist the governor by developing: Policies and programs that support a comprehensive statewide workforce development system A statewide workforce and labor market information system 27 Brustein & Manasevit, PLLC

28. SKILLS Act Local WIBs regularly conduct analyses of area workforce needs, including: Economic conditions Knowledge and skills of workers Existing workforce development activities to enhance support services for local workers and employers 28 Brustein & Manasevit, PLLC

29. SKILLS Act Allows local WIBs to contract with community colleges directly to provide training to large groups of participants instead of on an individual basis. Requires WIBs to designate a portion of resources to spend directly on training. Requires service providers to contribute a portion of their resources to support the infrastructure of the One-Stop Career Centers, providing more resources to training and other efforts that directly serve workers. 29 Brustein & Manasevit, PLLC

30. SKILLS Act One-Stop Delivery System The proposed changes should make the One-Stop system true “centers” of workforce training services All One-Stop partners must make at least a portion of services available at the One-Stop centers, and make a portion of the partners’ funding available for One-Stop center administration This is meant to further streamline state and local services in central locations, providing consumers greater access and ease in utilizing federal workforce training services 30 Brustein & Manasevit, PLLC

31. SKILLS Act Title II: Adult Education and Family Literacy Education The performance accountability system is not tied to the modified system required under Title I of the WIA Expanding “State Leadership Activities” 31 Brustein & Manasevit, PLLC

32. SKILLS Act Adult Ed State Plans: 3-year plans instead of 5-year plans Eliminates peer review process Secretary has only 30 days to deem a state plan as “inconsistent with federal requirements” and cannot officially deny a state plan without providing opportunity for review and technical assistance 32 Brustein & Manasevit, PLLC

33. SKILLS Act Title III: Amendments to Wagner-Peyser Act Eliminates the U.S. Employment Service Replaces the nationwide employment statistics system, with a nationwide workforce and labor market information system 33 Brustein & Manasevit, PLLC

34. SKILLS Act Title IV: Repeals and Conforming Amendments Requires employment and training services to eligible members of households participating in the Supplemental Nutrition Assistance Program (SNAP) through the statewide workforce development system, One-Stops Employment and training services for refugees, through the statewide workforce investment system for federal, state, and local prisoner reentry programs 34 Brustein & Manasevit, PLLC

35. SKILLS Act Title IV (cont.) Requires an eligible state to use a certain percentage of the federal share of the cost of vocational rehabilitation services to award grants to create practical job and career readiness and training programs and provide job placements and career advancement 35 Brustein & Manasevit, PLLC

36. SKILLS Act Title IV (cont.) Repeals the authority of ED’s Commissioner of the Rehabilitation Services Administration to make grants and contracts for: Vocational rehabilitation services to individuals with disabilities who are migrant or seasonal farm workers Recreational programs for such individuals In-service training of vocational rehabilitation personnel 36 Brustein & Manasevit, PLLC

37. SKILLS Act Process Passed the House Education & Workforce Committee in March. Democrats did not participate in the vote No Democratic amendments allowed Passed House on March 15 (215-202) Referred to Senate 37 Brustein & Manasevit, PLLC

38. Current Reauthorization Efforts No Senate bill yet Senate efforts should reflect earlier drafts 38 Brustein & Manasevit, PLLC

39. Likely Senate Bill Even three way split on State WIBs Business, unions, government Majority of local WIB seats for business, but maintain union and government seats Uniform standards for measuring performance Some limited consolidation 39 Brustein & Manasevit, PLLC

40. Legislative Outlook SKILLS Act unlikely to pass through Senate “as is” HELP Chairman Harkin retiring in 2014 ESEA and HEA are higher priorities Sen. Patty Murray (D-WA) biggest WIA advocate on HELP More focused on budget committee work 40 Brustein & Manasevit, PLLC

41. Legislative Outlook Future of Funding: Democrats and Republicans agree on consolidation (mostly) Additional sequestration cuts in FY 2014 Few calls for funding increases on the Hill 41 Brustein & Manasevit, PLLC

42. Legislative Outlook Divisive Issues: Labor Union Representation Faith Based Organizations Authority of the Governors Mass consolidation vs. targeted consolidation 42 Brustein & Manasevit, PLLC

43. Questions???? 43 Brustein & Manasevit, PLLC

44. Disclaimer This presentation is intended solely to provide general information and does not constitute legal advice. Attendance at the presentation or later review of these printed materials does not create an attorney-client relationship with Brustein & Manasevit, PLLC. You should not take any action based upon any information in this presentation without first consulting legal counsel familiar with your particular circumstances. 44 Brustein & Manasevit, PLLC