Michael Brustein, Esq. [email protected] Steven Spillan, Esq. [email protected] Brustein &...

Michael Brustein, [email protected]

Steven Spillan, [email protected]

Brustein & Manasevit, PLLC www.bruman.comSpring Forum 2013

History and Status of WIA Reauthorization

Brustein & Manasevit, PLLC1

RoadmapWIA BackgroundRecent StudiesPrevious Attempts at Reauthorization

Current Proposed LegislationLegislative Outlook

2 Brustein & Manasevit, PLLC

WIA: BackgroundEnacted in 1998, with a five year

reauthorizationReauthorization is now 10 years overdue

Purpose of WIA:Reorganize and streamline federal

workforce developmentInclude businesses in the processCreate Workforce Investment Boards

(WIBs)One-Stop Career Centers


WIA Title I ServicesPrimary Federal WIA Funding:

YouthAdultDislocated Workers


Workforce Investment BoardsRegional entity to implement WIA

At least 50% of members should be from businesses

Designated seats for labor unions, higher ed

Oversee One-Stops


One-StopsEntities 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


Recent Funding TrendsWIA 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.

2011 2012

Youth $826 million $824 million

Adult $770 million $771 million

Dislocated Worker $1.3 billion $1.2 billion


Recent StudiesGAO Reports on Federal Job Training

Programs

Used annually in Congressional debateBoth in reauthorization and appropriation hearings

Shows duplication among various programs and agencies


GAO Report on Training ProgramsJan 2011: “Colocating Services and

Consolidating Administrative Structures”

Looked at FY 200947 different federal job training programs

$18 billion in total9 federal agencies, but primarily:

DOLEDHHS


GAO Jan ‘11 ReportNearly 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 programMost target Native Americans, veterans, and

youth, and some “economically disadvantaged”

Despite overlap, separate administrative structures offer similar services


GAO Jan ‘11 ReportBarriers to combining administrative

structures:

One-Stop capacity

One-Stop location

No data to support consolidation

Insufficient collaboration at the federal level


GAO Jan ‘11 RecommendationsDOL 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.


GAO Jan ‘11 RecommendationsInformation on these topics could

address:

Challenges faced

Strategies employed

Results achieved

Remaining issues13 Brustein & Manasevit, PLLC

GAO Jan ‘11 RecommendationsDOL and HHS:

Examine incentives for colocation

Identify options for increasing such incentives


Previous Reauthorization Attempts

112th Congress (2011-2012)

2011: All talk, little/no actionHouse held hearings on duplication and

waste in federal job training programsSenate released “discussion draft” but

never formally marked up legislationJust before Christmas, House

introduced two WIA-related bills


House Bills: December 2011Streamlining Workforce Development

Programs ActEliminated requirement for labor union and

state legislature seats on state WIBsConsolidated most funding streams into new

Workforce Investment FundVarious changes related to authority of State

WIBs and Governors to award competitive grants

Bill never went beyond the subcommittee level


House Bills: December 2011Local 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 toEngage local businesses to meet their needs and

support local economic growthDevelop strategies for using technological

improvements to facilitate access to servicesBill never even came up for debate in the

subcommittee


House Reauthorization Bills 2012Democratic 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


House Reauthorization Bills 2012Workforce 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 businessesProvides Governors authority to further consolidate

resources if they have a “responsible plan”

The bill passed the Education and Workforce Committee, but stopped there.


Senate ActionPolitically Correct Descriptions of Senate

Action:StalledHolding PatternNegotiation Phase

More Accurate Terms:BupkisNadaZilchFailure to Launch


Senate 2011 DraftsSenate HELP Committee released draft

language Title-by-Title in 2011Altered make up of State WIBs

1/3 business1/3 labor unions1/3 government rep

Local WIBsMajority business20% labor unions10% government rep


Senate 2011 DraftsSet Standards for State Performance MeasuresRequired Secretaries of Education and Labor to

develop long‐term performance goals for each of the core programs

Creates New Workforce Innovation and Replication GrantsPromote 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


Current Reauthorization EffortsSupporting 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 employersUse a set of common performance measures for

services offered to workers


SKILLS Act vs. WIA of 1998The 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”


SKILLS ActTitle I: Amendments of WIA 1998

Subtitle A: DefinitionsSubtitle B: Statewide and Local Workforce

Investment SystemsSubtitle C: Job CorpsSubtitle D: National ProgramsSubtitle E: AdministrationSubtitle F: State Unified Plan


SKILLS ActState 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.”


SKILLS ActState 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


SKILLS Act

Local WIBs regularly conduct analyses of area workforce needs, including:Economic conditionsKnowledge and skills of workersExisting workforce development

activities to enhance support services for local workers and employers


SKILLS ActAllows 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.


SKILLS ActOne-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


SKILLS ActTitle 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”


SKILLS ActAdult 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


SKILLS ActTitle 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


SKILLS ActTitle 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


SKILLS ActTitle 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


SKILLS ActTitle 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 individualsIn-service training of vocational

rehabilitation personnel


SKILLS Act ProcessPassed the House Education &

Workforce Committee in March.Democrats did not participate in the

voteNo Democratic amendments allowed

Passed House on March 15 (215-202)Referred to Senate


Current Reauthorization EffortsNo Senate bill yet

Senate efforts should reflect earlier drafts


Likely Senate BillEven 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 consolidation39 Brustein & Manasevit, PLLC

Legislative OutlookSKILLS Act unlikely to pass through

Senate “as is”

HELP Chairman Harkin retiring in 2014ESEA and HEA are higher priorities

Sen. Patty Murray (D-WA) biggest WIA advocate on HELPMore focused on budget committee

work40 Brustein & Manasevit, PLLC

Legislative OutlookFuture of Funding:

Democrats and Republicans agree on consolidation (mostly)

Additional sequestration cuts in FY 2014

Few calls for funding increases on the Hill


Legislative OutlookDivisive Issues:

Labor Union Representation

Faith Based Organizations

Authority of the Governors

Mass consolidation vs. targeted consolidation


Questions????


DisclaimerThis 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.


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