1. 1 WIOA Committee Governor’s Workforce Development Council February 12, 2015

2. Agenda Regional Planning Industry Sectors/Emerging Industries Completing the board structure for the full council meeting in March

3. 3 WIOA & Workforce Development Areas Strategic Approach to Enhancing Regional Planning for Workforce and Economic Development

5. 5 Workforce Development Regions under WIOA Chapter 2, sec. 106(a)(1)-(2) (a)(1) IDENTIFICATION.—Before the second full program year after the date of enactment of this Act, in order for a State to receive an allotment under section 127(b) or 132(b) and as part of the process for developing the State plan, a State shall identify regions in the State after consultation with the local boards and chief elected officials in the local areas and consistent with the considerations described in subsection (b)(1)(B). (a)(2) TYPES OF REGIONS.—For purposes of this Act, the State shall identify—which regions are comprised of 1 local area that is aligned with the region; which regions are comprised of 2 or more local areas that are (collectively) aligned with the region (referred to as planning regions, consistent with section 3); and which, of the regions described in subparagraph (B), are interstate areas contained within 2 or more States, and consist of labor market areas, economic development areas, or other appropriate contiguous subareas of those States.

6. 6 Workforce Development Regions Considerations Chapter 2, sec. 106(b)(1)(B) CONSIDERATIONS.—The Governor shall designate local areas (except for those local areas described in paragraphs (2) and (3)) based on considerations consisting of the extent to which the areas— 1.are consistent with labor market areas in the State; 2.are consistent with regional economic development areas in the State; and 3.have available the Federal and non-Federal resources necessary to effectively administer activities under subtitle B and other applicable provisions of this Act, including whether the areas have the appropriate education and training providers, such as institutions of higher education and area career and technical education schools.

8. Work Group Composition and Roles Logistical Planning & Oversight WDD Directors, GWDC WIOA Committee, MWCA Representatives ROLE: Responsible for establishing the subcommittees, setting scope, approving work plans and monitoring progress toward implementation. One-Stop Operations WSCO Staff, MWCA Reps, Core Partner Field Managers Policy and Procedures One-Stop System Design Finance and Budgeting Technology Applications Program Implementation System Directors and SME from Required Partners ROLE: Responsible for coordinating the development/deployment of system-wide integration/alignment strategies for WIOA ROLE: Responsible for implementing the certification requirements, including MOUs for full and affiliate WFCs and stand-alone partner offices. ROLE: Responsible for interpreting and updating policies and procedures related to data and other integrity management issues. ROLE: Responsible for establishing new fiscal requirements and controls to ensure the integrity of the financial system. ROLE: Responsible for making recommendations on technology investments to achieve desired use to support outreach and service impact. ROLE: Responsible for ensuring the system meets the operation demands for implementing the program on given dates. PPM, MWCA Reps and Other Required Core Partner SMEs AFS, Titles I-IV Fiscal Managers and Other SMEs DEED’s IT Gov. Reps, MWCC and other Core Partner Leadership Program Directors, MWCA Reps and Other SMEs

9. July 2016 April 2016 Jan 2016 Oct 2015 July 2015 April 2015 Unified Plan Implemented WIOA Local Plans Implemented WIOA Regional Plans Implemented Regional Plan Guidance? Unified Plan Guidance Unified Plan Due 3-2-16 WIA 2015 Local Plan WIOA Regional Plans Developed Local Plan Guidance? WIOA Local Plan Proposal WIOA Local Plans Developed Aligning the timing of required WIOA Plans Unified Plan Developed Regional Plans will feed local and unified plans

10. 10 WIOA & Industries and Services Using Labor Market Information to determine industry representation.

11. 11 Labor Market Areas – Metro & Micro Statistical Areas Metropolitan Statistical AreasMicropolitan Statistical Areas

12. 12 Other Criteria– EDRs and Workforce Development Resources Economic Development RegionsWorkforce Service Areas Resources

13. Industry Employment Statistics, 2013 Statewide - Highest number of jobs Industry TitleNumber of JobsAvg. Annual Wages Health Care & Social Assistance 446,744.00$45,500 Manufacturing 307,237.00$59,540 Retail Trade 286,850.00$25,896 Educational Services 218,558.00$44,564 Accommodation & Food Services 216,895.00$16,016 Source: DEED Quarterly Census of Employment & Wages (QCEW) program

14. Industry Employment Statistics, 2013 Statewide - Lowest number of jobs Industry TitleNumber of JobsAvg. Annual Wages Arts, Entertainment & Recreation49,008$29,640 Real Estate, Rental & Leasing39,756$53,560 Agriculture, Forestry20,591$32,084 Utilities14,403$93,600 Mining6,223$84,344 Source: DEED Quarterly Census of Employment & Wages (QCEW) program

15. Concentration of Industries within Regions Industries with high Location Quotient (LQ) in more than one region Accommodation Amusement, Gambling & Recreation Industries Animal Production & Aquaculture Crop Production Forestry & Logging Manufacturing Support Activities for Agriculture & Forestry Source: DEED Quarterly Census of Employment & Wages (QCEW) program

16. Short-term Projections The State of Minnesota is projected to gain nearly 50,000 net new jobs in the next year, a 1.6 percent growth rate. Fastest growing industry: Construction Actual job growth (net new jobs created): Health Care & Social Assistance, Manufacturing, Accommodation and Food Services, Public Administration.

17. Long-term Projections Over the next decade, Minnesota’s economy is expected to add about 205,000 jobs, a 7.0 percent growth rate. Fastest growing industries: Construction and Health Care & Social Assistance, which are expected to expand about 25 percent. Other growing industries: Professional & Technical Services, Administrative Support & Waste Management Services, and Real Estate & Rental & Leasing.

18. Emerging Industry Sectors From 2011 to 2013, the largest growing industry sector was Health Care and Social Assistance. Consumer confidence and spending increased, so did employment growth in Leisure and Hospitality, Retail Trade and Construction. Also Professional, Scientific and Technical Services. Mining has seen dramatic employment gains. Some job declines are expected in Utilities but the industry has an older, soon-to-be-retiring workforce. Incomes are relatively high.

19. Incomes and the Cost of Living Income is another consideration in industry representation. What is the cost of living and working in Minnesota for individual workers and families? DEED’s Cost of Living Tool http://mn.gov/deed/data/data-tools/col/index.jsp

20. Brookings Report on Advanced Industries “Private and public sector leaders – particularly those working at the state and regional level – must engage. Already numerous state and regional partnerships are working to expand America’s advanced industries often by attending to the fundamental inputs needed to ensure these industries’ long- term growth.” The Brookings Institution | America’s Advanced Industries http://www.brookings.edu/research/reports2/2015/02/03- advanced-industries#/M10420

21. Recommended Industry Representatives Agriculture (Animal and Crop Production) Construction Finance & Insurance Health Care and Social Assistance Management of Companies & Enterprises Manufacturing Mining Professional & Technical Services Utilities

22. State Board Structures Sec. 101 Workforce Development Boards WIOA requires the Governor to establish a state workforce development board to carry out the functions (subsection d) Alternate Entity-if in compliance with sections (a),(b), and (c), a state may use our existing state council (within the meaning of the Workforce Investment Act of 1998 (H.R. 803-19, (e)(1)

23. Comparison of GWDC & WIOA GWDC (Current)GWDC Proposed under WIOA Governor Chair appointed by Governor 2 members of each state chamber of the state legislature (House and Senate, Majority and Minority) 1 member of each state chamber of the state legislature –presiding officers

24. Comparison of GWDC and WIOA GWDC (Current)GWDC Proposed Under WIOA Required under balance of board: Chief elected officials (local/county)Chief elected officials-cities and counties where appropriate Lead state agency officials for One- Stops Minnesota (DEED) State agency responsible for Core WIA programs

25. Comparisons GWDC and WIOA GWDC (Current)GWDC Proposed Under WIOA Community Based Organizations Represent: Disability community Rural/Agriculture Community Minority community May include: Community based organizations with expertise in employment, training, serving individuals with barriers to employment, disability community Additional State Agencies: MN Department of Education MN Department of Human Services May include: organizations with expertise in serving youth (out-of-school )

26. Comparison GWDC & WIOA GWDC (Current)GWDC Proposed Under WIOA Labor 6 members Labor Not less than 20 percent: Labor organization representatives, nominated by State labor federations; representative from a labor organization or training director from a joint labor- management apprenticeship program Education Secondary & Post-secondary Vocational Institutions Education –University of Minnesota, MNSCU School-based Service Learning Local Public Secondary Agriculture Education Education

27. So What Does This Mean? – Apprenticeships- a priority under WIOA – In-demand industry sectors for the state – Youth – may include a representative – May include- Community based organizations Education Other relevant state agencies engaged in workforce Partners in Minnesota’s WorkForce Centers

28. Minnesota’s Future under WIOA Propose adoption of WIOA for Minnesota’s state board Majority business – What is the correct number? – Considerations: size, key driving industry sectors, regions (for planning purposes), and leadership – Use data to validate recommendation, parameters around industry sectors and growth (occupations) – Align with regional planning efforts – Geographic representation

29. Proposed Board Structure – 21 Voting Members 2 Minnesota state legislators 1 required state agency – DEED 1 elected city official from the Twin Cities metropolitan area 1 elected county official from outstate Minnesota 1 Adult Basic Education (ABE) representative 1 higher education – TBD – Minnesota State Colleges and Universities (MnSCU) – University of Minnesota – Vocational/technical schools – Private colleges/universities 9 business and industry (% ? from Workforce Development Boards) 5 labor (20 percent requirement)

30. Non-voting members 1 representative of a Community-Based Organization (CBO) serving persons with disabilities 1 youth representative State agencies – Minnesota Department of Human Services (DHS) – Minnesota Department of Education (MDE) – Minnesota Department of Labor & Industry (DLI) – Minnesota Department of Corrections (DOC) – Minnesota Office of Higher Education (OHE) – Public Libraries – Women’s Economic Security Act (WESA)

31. DISCUSSION

32. Requirements under WIOA Adoption under WIOA: Move to the full council with committee recommendations at the March meeting Amend by-laws Revision of state statue – In addition to the new federal language, board terms, representation, meetings, sub-committees and funding

33. Next Steps WIOA committee will submit the recommendations to the GWDC Executive Committee Present recommendations at the full GWDC March meeting Staff prepare document revisions to be reviewed and presented at the June GWDC meeting