WIOA THE OPPORTUNITY FOR INNOVATION. JOHN COLBERT, Esq. Capitol Hill Partners, LLC

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1 WIOA THE OPPORTUNITY FOR INNOVATION JOHN COLBERT, Esq. Capitol Hill Partners, LLC

2 WIOA in context Eleven years in the making An update not an overhaul Incorporates many best practices Very tight timelines included in the law for implementation by DOL Real change begins in your upcoming annual plans to be implemented on July 1, 2015

3 The core goals of WIOA statute Align workforce investment, education, and economic development systems; Increase the employment, retention, and earnings of participants through the attainment of recognized postsecondary credentials and better meet the skills needs of employers; Improve opportunities for workers with barriers to employment, including people with disabilities; Create a streamlined, yet comprehensive approach to workforce development through unified planning.

4 Key WIOA dates Draft rule imminent No WIOA State plans due to DOL this year WIOA Youth funding available April WIOA PY15 funding formula available July 1

5 Key WIOA dates Final rule published early 2016 Unified plans due Spring 2016 Full WIOA implementation July 2016

6 What is DOL doing to assist WIOA implementation in the field Ongoing: Single website with all WIOA materials: Series of Webcasts Quick start action planner assessment tool for states and locals

7 What is DOL doing to assist WIOA implementation in the field First half of 2015: ETA operating guidance letters to the field Already released: WIOA vision paper already released Youth provisions paper

8 What is DOL doing to assist WIOA implementation in the field Guidance to be released after proposed rule published including: Fiscal reporting State and local governance, ETPL, Performance metrics Recommended transition activities at state and local levels

9 What is DOL doing to assist WIOA implementation in the field WIOA proposed rules A total of five WIOA rules to be issued by DOL and DoED Combined Reg to be issued first: collective work of DOL and DoED - range of topics to be addressed including governance, One Stop delivery system, performance reporting; DoED also has proposed rules on Adult Ed and Voc Rehab provisions in the Act

10 What is DOL doing to assist WIOA implementation in the field WIOA proposed rules Once released formal rulemaking process begins questions to be posted on website Comments on proposed rule to be made at: regulations.gov

11 WIOA passage and funding time for state innovation State WIA funding allocation: PY 13 5% PY % PY 15 10% Double the funding available to states for WIA programs just six months ago Opportunity for significant state innovation

12 Funding formula and One Stop Core WIOA formula funding Only one significant change to WIOA formula funding Dislocated Worker state formula funding now has a 90% hold harmless to prevent significant shifts in funding on annual basis; One Stop infrastructure funding if locals cannot figure out cost allocation, the State will determine program contributions.

13 Innovation opportunities in WIOA Unified Planning - WIOA requires a state unified plan for the core programs in the Act beginning in PY 16. Tentative due date March 3, 2016 No need to wait states can submit unified plans before PY 16 It also permits states to include in its unified plan one or more of the following programs: Perkins Act, TANF E&T, TAA, UI, SNAP E&T, SCSEP, CDBG, CSBG, and VETS programs.

14 Innovation opportunities in WIOA Authorizes career pathways approaches underway in many states that combine occupational training and postsecondary education to earn industry recognized credentials Authorizes transitional jobs strategies Enhanced Employer Engagement Board size reductions to allow for stronger business engagement Requires common performance measurements from across all its core programs.

15 Innovation opportunities for states in WIOA Promotes Regionalism WIOA requires strong regional planning and coordination States work with locals to identify regions taking into consideration labor markets and regional economic development areas. Requires strong local performance with fiscal integrity or states may realign WIB s

16 Changes to workforce boards structure State WIB s continued business majority and business chair One member chosen by each chamber of the state legislature (reduced from two members per chamber) 20% of members from labor movement Local WIB s streamlined and more strategic still business majority and chair One stop governmental partners eliminated 20% of members from labor movement

17 Changes made to Governance LWIB s Membership on Boards Streamlines membership Maintains business majority Requires certification of one-stop centers by the Chief Elected Officials and the WIB Adds Vocational Rehabilitation, Adult Education, and Registered Apprenticeship as required board members.

18 Changes in Governance LWIB s Key functions for Local workforce boards: Engaging employers; Develop and implement career pathways; Identifying and promoting proven and promising practices;

19 Changes in Governance LWIB s Key functions for Local workforce boards including: Establishing standing committees to more effectively accomplish the work of the local boards; Promoting consumer choice of participants among providers; Enhancing coordination with education providers Think regionally

20 Changes in Governance SWIB s State workforce boards - provide guidance and vision Key areas of focus: programmatic alignment, career pathways, sector partnerships, coordination between states and local areas, identification of regions,

21 Changes in Governance SWIB s State workforce boards: Key areas of focus: Case management information systems Best practices Development statewide One Stop policies Tech improvements Statewide workforce and labor market information systems

22 Competitive and Integrated One Stops Each local area must have one comprehensive one-stop center. Must be Competitively awarded Eliminates stand-alone Employment Service offices.

23 Competitive and Integrated One Stops Enhanced and Streamlined Operations: All partners share One Stop infrastructure costs MOU s with every one-stop partner to describe operations, services provided and coordinated, funding, and referrals. Local boards will certify one-stops every three years, using criteria written by the state Workforce Development Board.. Integrate the intake, case management, reporting, and fiscal and management accountability systems of onestop partners.

24 Innovation opportunities for states in WIOA Stronger focus on training Makes permanent language appropriations language allowing grants from Adult or DW funds to train cohorts, instead of solely utilizing ITA s Encourages sectoral initiatives to work with employers to train workers in high demand sectors Increases incumbent worker training to 20% of funding allotment Authorizes transitional jobs programming

25 Innovation opportunities for states in WIOA Youth funding now targeted to out of school youth WIA - 30% of funds required to be spent on OSY WIOA - 75% of funds required to be spent on OSY Youth Councils no longer required Local Boards are encouraged to designate a standing Youth Committee

26 Changes in youth policy Changes to Youth Eligibility Out-of-school youth must be aged 16-24, not attending any school; In-school youth must be aged 14-21, attending school, low income and one other barrier

27 Changes in youth policy New Youth Program Elements Financial Literacy; Activities that help youth transition to postsecondary education and training; Work based learning for specific occupation or occupational clusters; Entrepreneurial skills training;

28 Changes in youth policy Emphasis on Work-Experience At least 20 percent of local Youth formula funds must be used for work experiences, such as: summer and year-round employment, pre-apprenticeship, on-the-job training, internships and job shadowing

29 WIOA: Innovation Opportunity Pay-for-Performance significant expansion WIOA allows states and locals to use their annual formula funds for pay-for-performance Dedicated resource for states and locals With no additional overall funding allows states and localities to directly contract with providers for outcome-based performance.

30 Pay-for-Performance significant expansion States can also augment pay-for-performance with non-federal funds Local areas can use up to 10 percent for payfor-performance States can provide technical assistance to WIB s on pay-for-performance

31 Pay-for-Performance significant expansion Specific outcomes and populations to be served negotiated between providers with state or local Can create incentives or bonus payments to assist harder to serve populations Paid upon successful completion of these outcomes Pay for Performance expanding across social service programs bipartisan support for evidenced based programming

32 32 Pay-for-Performance significantly expanded Effort to incorporate pay for performance in WIOA formula funds led by Senator Portman Also key focus of the Administration is on Pay for Success in social service programming WIOA creates a different authority than the Administration s Workforce Innovation Fund

33 What should we be doing now?

34 WIOA implementation - overall approach Beg for forgiveness, rather than wait for permission Implement what the statute outlines now and tweak if necessary post regulations

35 WIOA implementation - overall approach All aspects of the law must be implemented on July 1 (except unified planning and new performance accountability); DOL s approach technical assistance, not gotcha a learning process at all levels; Guidance papers, quick start action plan, webinars, will try to address toughest regulatory issues before beginning of PY 15;

36 WIOA implementation - overall approach The statute and WIOA vision paper spell out much of what you can be doing now: Meet with your new cross agency partners Explore strategies and partners to meet new OSY youth requirement Examine your Eligible Training Provider list Begin planning on how to work regionally Examine pooling admin functions to reduce costs

37 WIOA implementation what should I do now? Use the 100% transferability in WIOA formula programs to better target local and regional needs Work with your IHE partners to train cohorts in high demand professions Examine now how to better incorporate strategies to include people with disabilities

38 WIOA implementation what should I do now? Recruit new board members Form a subcommittee with your governmental partners Ensure you have a physical One Stop location and competitively bid it out

39 WIOA implementation what should I do now? Understand ETA guidance is a work in progress Read and respond to the proposed rule Utilize your Congressional delegation

40 WIOA implementation what should I do now? Understand it is unlikely there will be additional federal workforce funding for the next several years Proactively take advantage of new authorities in the law, like pay for performance, to more effectively utilize what is available on the state and local level

41 QUESTIONS AND COMMENTS John Colbert, Esq. Capitol Hill Partners