Draft - August 10, 1998
| CURRENT LAW | WORKFORCE INVESTMENT ACT (P.L. 105-220)* | |
| Structure
Funding Streams |
Separate funding streams and authorizing legislation
for JTPA, Wagner Peyser, vocational education, adult
education, and vocational rehabilitation.
JTPA: separate funding streams for disadvantaged adults, dislocated workers, disadvantaged youth, and summer youth. |
Bill is organized into five titles: (1) job training; (2) Adult Education;
(3) amendments to Wagner-Peyser and related Acts; (4) amendments
to the Vocational Rehabilitation Act; and (5) general provision. Does
not include vocational education, which is addressed in separate
legislation.
Maintains separate funding streams for adults, dislocated workers, and youth. |
| Target Populations
|
Economically Disadvantaged Adults - Must be age 22
or older, economically disadvantaged (10% window for
non-disadvantaged if they have serious barriers to
employment). 65% must be "hard-to-serve" in
identified categories.
Dislocated Workers - Eligible dislocated workers defined to include four categories. Youth - Defined to include ages 16-21, plan may include 14 and 15. In year-round program, must be economically disadvantaged (10% window for non-disadvantaged if they have serious barriers to employment). 65% must be "hard-to-serve" in identified categories. At least 50% must be out-of-school youth. In summer program, must be economically disadvantaged. |
Adults - Eligibility for core services open to all adults ages 18 and
older. Priority for intensive and training services must be given to
recipients of public assistance and other low-income individuals.
Dislocated Workers -Excludes long-term unemployed from definition of dislocated worker, and adds displaced homemakers. Youth -Youth must be ages 14- 21, low income, and meet at least 1 of
the 6 specified barriers to employment. 5 percent window for non-low-income youth if they experience one or more specified barriers to
school completion or employment. In addition, at least 30% of funds
must be expended on out-of-school youth.
|
| One-Stop Service Delivery
|
One-stop implementation grants are currently awarded with Wagner-Peyser funds, but there are no statutory requirements to provide services through the One-Stop system. | Establishes the one-stop delivery system as the access point for employment-related and training services. All core services must be available at at least one physical site which may be supplemented by multiple additional sites and technological networks. Specifies designated One-Stop partners that are to provide core services through the one-stop, including programs authorized under this Act, Wagner-Peyser, Welfare-to-Work, vocational-rehabilitation, etc. Provides for memorandum of understanding between partners and local board to address issues such as services to be provided, referrals, and operating costs. Local board selects operator of a one-stop center through a competitive process or may designate a consortia of not less than three partners to operate a center. |
| Summer Jobs | The summer jobs program is specifically authorized under Title IIB of JTPA. | Includes summer jobs as a required component of the youth program, but no separate appropriations are authorized for the program. |
| Youth Services | Requires individual assessment of skill levels and service needs; service strategy; availability of basic skills, occupational skills, and work maturity skills training; work experience and supportive services; and authorizes an array of training and training-related services. | Retains requirement for assessment and service strategy, adds as required elements: preparation for postsecondary educational opportunities or unsubsidized employment (as appropriate); strong linkages between academic and occupational learning; and effective connections to intermediaries with strong links to the job market and employers. The other required elements of youth programs include: tutoring, study skills training and instruction leading to completion of secondary school, including dropout prevention; alternative school services; adult mentoring; paid and unpaid work experiences, including internships and job shadowing; occupational skills training; leadership development opportunities; supportive services; follow-up services for not less than 12 months as appropriate; and comprehensive guidance and counseling. |
| Youth Opportunity Area Grants for Out-of-School Youth | Administration proposal calls for saturation grants to increase employment rates among youth ages 16-24 in high poverty areas in EZ/ECs. The DOL FY 98 Appropriations Act provides an advance FY 1999 appropriation of $250 million for this program. | Reserves amounts appropriated for youth in excess of $1 billion (up to $250 million) for youth opportunity grants, which the Secretary may provide to assist youth ages 14-21 in high poverty areas located in Empowerment Zones/Enterprise Communities, high poverty areas located on Indian reservations, or other high poverty areas designated by the States. |
| Adult and Dislocated Worker
Services
|
Title II prohibits stand-alone employment services (e.g. job search assistance). Title III authorizes readjustment and retraining services. | Funds will be used at the local level to pay for core services through the one-stop system, as well as for intensive and training services for program participants. Core services funded by the adult stream would be available on a universal basis with no eligibility requirement. Funds for dislocated workers would be used exclusively for services to dislocated workers. Intensive services (e.g. counseling and prevocational services) available for unemployed individuals who have been unable to obtain jobs thru core services and those who are employed but need additional services to reach self-sufficiency. Training is available for those who met intensive services eligibility but were unable to find employment through those services. |
| Skill Grants for Training
|
Most training is provided through contracts with training providers. Vouchers are only used on a limited basis. | For adult and dislocated worker training, requires the use of Individual Training Accounts (ITAs), through which a participant chooses among qualified providers. The three exceptions where a contract for training may be used in lieu of ITAs are: on-the-job training and customized training; an insufficient number of providers; and programs provided by CBOs or other private organizations serving special participant populations that face multiple barriers to employment. |
| Accountability
|
Performance standards applicable to local areas are
established by the Secretary which is to include factors
identified in the law. States adjust the standards based
on economic, demographic, and other factors within
parameters established by the Secretary. States may
award incentive funds or impose sanctions based on
local performance.
|
Establishes indicators of performance for all adult, dislocated workers, and youth programs to be applied to States as well as local areas. There are four core indicators relating to adult, dislocated worker programs, and youth ages 19-21(i.e. placement, retention, and earnings, and skill attainment), and three core indicators relating to the youth ages 14-18 (i.e. basic skills attainment and as appropriate occupational skills; high school diplomas; and placement and retention in postsecondary education, advanced training, or employment). The Secretary of Labor is to negotiate the expected levels of performance for each indicator with each State, and the State in turn is to negotiate expected levels of performance with each local area. Negotiations are to take into account special economic and demographic factors. Technical assistance, sanctions, and Federal incentive funds are tied to whether States meet the expected levels of performance. |
| Eligibility of Training
Providers
Consumer Reports |
Other than general procurement requirements, there are
not eligibility requirements for training providers.
No requirement for consumer information on training providers. |
Requires that to be eligible to receive adult/dislocated worker funds a
training provider must either be certified under the HEA, the National
Apprenticeship Act, or an alternative procedure established by the
Governor. All providers must submit annual specified performance-based information relating to outcomes of their students (i.e.
completion rates, placement and earnings). To remain eligible,
providers must meet or exceed minimum levels of performance
established by the State and localities.
Grants and contracts are to be awarded providers of youth activities by
the local partnership on a competitive basis.
Consumer information relating to each provider is to be disseminated
to one-stops and available to assist participants in the training selection
process. The information is the performance-based information
relating to outcomes of students and participants described above.
|
| State and Substate Shares of
Funding and State Reserve
Activities
|
Disadvantaged Adults (II-A) -
77% allocated to local areas. 23% reserved by State, of which:
5% State incentives, 8% Education and Coordination Grants, 5% Older Worker program. Dislocated Workers (III) - 60% allocated to local areas. 40% reserved by the State to carry out administration, rapid response, and special projects. Disadvantaged Youth Summer (II-B) - 100% allocated to local areas. Year-Round (II-C) - 82% allocated to local areas. 18% reserved by the State. Same State reserves as II-A except does not include Older Worker program. |
Adults
85% allocated to local areas. 15% reserved for Statewide activities which must include incentive grants, technical assistance, MIS, evaluation and one-stop system building. Permissible Statewide activities include incumbent worker projects, authorized youth and adult activities, and additional system building. Not more than 5% may be used for administration. Dislocated Workers 60% allocated to local areas 40% reserved by State, or which:.
25% reserved for rapid response activities. Youth 85% allocated to local areas. 15% reserved for Statewide activities as described above. Note: State 15% reserve amounts from each stream may be merged to carry out the activities. |
| Interstate Allocation Formulas | Adults
• 1/3 number of unemployed residing in areas of substantial unemployment ( 6.5%), • 1/3 excess unemployment (> 4.5%), • 1/3 economically disadvantaged adults. • 0.25% small state minimum. • 90% hold harmless. Dislocated Workers • 1/3 unemployed, • 1/3 excess unemployment (> 4.5%), • 1/3 long-term unemployed (15 weeks or longer). Youth • 1/3 number of unemployed in areas of substantial unemployment ( 6.5%). • 1/3 excess unemployment (> 4.5%), • 1/3 economically disadvantaged youth. • 0.25% small state minimum. • 90% hold harmless. |
Adults
Factors same as JTPA
|
| Substate Allocation Formulas
Transfers |
Adult
Same as interstate factors.
Dislocated Workers Governor prescribes, must include at least 6 specified
factors.
Youth Same as interstate factors.
With approval of Governor, locals may transfer up to 10% between adult and year-round youth and may transfer 20% from summer to year-round youth. Appropriations Acts have recently allowed 20% transfer between adult and dislocated workers, and 100% between summer and year-round youth. |
Adult
State may allocate all (but not less than 70% of) substate funds in
accordance with interstate factors or may, for up to 30% of funds, use
alternate formula that incorporates additional factors developed by the
State board relating to excess poverty or excess unemployment.
Dislocated Workers Same as current law.
Youth State may allocate all (but not less than 70% of) substate funds in
accordance with interstate factors or may, for up to 30% of funds, use
alternate formula that incorporates factors developed by state board
relating to youth poverty or excess unemployment.
With approval of Governor, local areas may transfer 20% between adult and dislocated workers funding streams. |
| Governance/Local
|
JTPA is administered on the local level by Private
Industry Councils (PICs) in partnership with local
elected officials. PICs and LEOs responsible for
development of local plan and oversight.
Members of PICs are appointed by LEO.
Composition of PICs: majority to be representatives of
business; not less than 15% representatives of
organized labor and community-based organizations;
and representatives for 5 other specified public
agencies (e.g. ES, Vocational Rehabilitation, public
assistance and economic development).
PICs may operate programs.
|
Local Workforce Investment Boards in partnership with local elected
officials, are responsible for planning and overseeing the local
program. The board is responsible for developing the local plan to be
submitted to the Governor for approval, designating local one-stop
operators, designating eligible providers of training services,
negotiating local performance measures, and assisting in developing a
employment statistics system.
In addition, a youth council is to be established in each local area as a
subgroup of the local boards. The youth council develops portions of
the local plan relating to youth, recommends the providers of youth
activities to be awarded grants by the local board, and coordinates
youth activities in the local area.
Members of Workforce Investment Boards are appointed by LEO in
accordance with criteria established by Governor.
Composition of Workforce Investment Boards: Boards must have a
majority of business representatives, and include representatives of
education providers, labor organizations, community-based
organizations (including those representing the disabled and veterans),
economic development agencies, and each of the one-stop partners
(i.e., programs participating in the one-stop system). It may include
other representatives the local elected official determines are
appropriate.
The board is prohibited from directly providing training services
unless the Governor waives the prohibition based on a determination
that another entity is not available to meet local demand for such
training. In addition, the board may not directly provide non-training
services unless the local elected official and the Governor agree to
allow the board to provide such services.
|
| Designation of Sub-State Areas | Governor is to take into account specified factors, including consistency with labor market areas, in designating local areas. Governor must approve any request from any unit of general local government or consortia of such units with a population of 200,000 or more to be a Service Delivery Area | The Governor is to take into account similar factors as current law (e.g., labor market areas) in designating areas. The Governor must approve a request for designation from units of general local government with a population of 500,000 or more. In addition, pursuant to their request, units of local government (or combinations of such units) with a population of 200,000 or more that were service delivery areas under JTPA are to receive temporary designation if they met JTPA performance measures during the preceding two years and had sustained fiscal integrity. If such areas substantially meet local performance measures for up to two subsequent years, the designation extends through the end of the state plan. Finally, local areas designated pursuant to previously enacted State laws are grandfathered. |
| Governance/State
|
States are to establish SJTCC or SHRIC to advise
Governor on coordination of workforce programs and
carry out other activities.
Under title II, the Governor submits a biennial
Coordination and Special Services Plan describing how
programs within the State will be coordinated, and the
use of certain State reserve funds. Under title III, the
State submits a biennial plan providing assurances
relating to the services to be provided to dislocated
workers and the activity of the State dislocated worker
unit.
State approves local plans and is responsible for
oversight of local programs.
|
States are to establish State Workforce Investment Board to develop
State plan and carry out other activities.
The state board develops a 5-year strategic plan to be submitted to the
Secretary of Labor, advises the Governor on developing the statewide
workforce investment system and the statewide labor market
information system, and assists the Governor in reporting to the
Secretary of Labor and monitoring the statewide system. The
comprehensive state plan developed by the board describes the
workforce development activities to be undertaken in the state, how the
state will implement the key requirements of the Act, and how special
populations, including welfare recipients, veterans and individuals
with multiple barriers to employment, will be served. The plan is also
to incorporate the detailed state plans under the Wagner-Peyser Act
relating to the delivery of employment services.
Similar to current law. In addition, the State can decertify a local board in cases of fiscal noncompliance or nonperformance. |
| Unified State Plan | Separate plan required for each Federal program. | The bill permits and encourages the submission of "unified" state plans to ensure coordination of, and avoid duplication between, workforce development activities. The plan continues to be subject to the requirements of the plan or application under the Federal statute authorizing the program. Fourteen programs are specified that may be included, including programs authorized under this Act, the Wagner-Peyser Act, the Food Stamp Act, etc. Plans are approved unless the appropriate Secretary indicates within 90 days of receipt that the plan is not consistent with the requirements of the Federal statute authorizing the activity. The state legislature must approve the inclusion of secondary vocational education in the unified plan. |
| Governance/Federal
Regulatory Authority |
Federal role includes plan review and approval,
performance awards/ sanctions, MIS, oversight,
administration and management of national activities.
General authorization for regulations as the Secretary deems necessary |
Similar to current law.
The state plan is to be approved within 90 days unless the Secretary
determines the plan is inconsistent with the provisions of the title or
the Wagner-Peyser plan does not meet the approval standard of that
Act.
Authorizes rules and regulations only to the extent necessary to administer and ensure compliance with the specific requirements of the Act. |
| Labor Market Information
|
JTPA Title IV-E requires the Secretary to maintain a comprehensive labor market/occupational information system. Governors must designate the SOICC or other entity to oversee and manage a statewide comprehensive labor market and occupational supply and demand information system that meets BLS standards. Secretary to reimburse States thru NOICC. | A national employment statistics system is established, which is to be planned, administered, overseen, and evaluated through a cooperative governance structure involving the Department of Labor and the States. Requires the Secretary, through the Bureau of Labor Statistics, and in cooperation with the states, to prepare an annual plan to manage the nationwide system. |
| Job Corps
|
Currently authorized, under JTPA, as a separate national program. | Job Corps is retained as a separate national program. Job Corps provisions are amended to strengthen linkages between Job Corps centers and the state workforce development systems and the local communities in which they are located (e.g., each Job Corps center must establish an Industry Council to recommend appropriate vocational training for the center to meet local labor market needs). Applicants would be assigned to centers nearest to where they reside, with certain exceptions. Job Corps center performance indicators and expected levels of performance would be established for graduation, placement, retention, earnings, entry into postsecondary education or advanced training, and skill gains of graduates, and students would be provided with follow-up counseling for up to 12 months after graduation. The bill also codifies current administrative practices relating to a zero tolerance policy for the use of drugs or violence committed by an enrollee. |
| National Activities
National Reserve Account
Indian & Native American
Grants
Migrant & Seasonal
Farmworkers
Veterans Employment Program |
JTPA Title III-B establishes a National Reserve Account through which the Secretary may award grants to assist in addressing mass layoffs and carrying out other special dislocated worker projects. Disaster relief currently funded through dislocated worker demonstration authority. Separate DCA and DDP programs authorized to assist Defense workers affected by base closings and downsizing. JTPA section 401 authorizes a nationally-administered
Indian and Native American Grant program. Grants
are awarded competitively.
JTPA section 402 authorizes a nationally-administered
Migrant and Seasonal Farmworker Grant program.
Grants are awarded competitively.
JTPA section 441 authorizes the Secretary to conduct
programs to meet the employment needs of veterans
with service connected disabilities, from the Vietnam
Era, and who are recently separated from service.
|
Establishes National Emergency Grants which would merge National Reserve Account authority for dislocated workers and disaster relief assistance. Similar to current law, but adds authority for Secretary, with specified
exceptions, to waive provisions of the title that are inconsistent with
the needs of the grantees pursuant to a plan submitted by the grantees
to improve the program.
Similar to current law, but specifies eligibility criteria in law.
Broadens eligibility to add veterans with significant barriers to
employment and veterans who served on active duty during war or
campaign for which badges have been authorized.
|
| National Incentive Grants | N/A | Beginning on July 1, 2000, the Secretary is required to award an incentive grant to each State that exceeds the State adjusted levels of performance for each of these workforce investment, adult education, and vocational education and submits an application for funds. The funds are to be used by the State for carrying out an innovative program consistent with the requirements of any one or more of the three programs. An incentive grant provided to a State shall be awarded in an amount that is not less than $750,000 and not more than $3,000,000. If the amount available for grants under this section for a fiscal year is insufficient to award a grant to each State or eligible agency that is eligible for a grant, the Secretary shall reduce the minimum and maximum grant amount by a uniform percentage. |
| Technical Assistance
|
The Secretary must establish a Capacity Building and
Information and Dissemination Network to provide
training and technical assistance and related activities.
Note: Congress has not appropriated funds for this
activity in recent years.
Dislocated worker program technical assistance separately authorized. Up to 5% of national reserve funds may be used for staff training and technical assistance. |
The bill authorizes the Secretary to provide, coordinate and support the
development of appropriate technical assistance, staff development,
and other activities, including assistance in replicating programs of
demonstrated effectiveness. The Secretary is also authorized to assist
States in making transitions from carrying out activities under the
provisions of law repealed by this title to carrying out activities under
this title.
The Secretary may use not more than 5 percent of the dislocated worker funds reserved at the national level to provide technical assistance to States that do not meet the State performance standards for dislocated workers. These funds may also be used to provide assistance to States, localities and other entities involved in providing assistance to dislocated workers, to promote the continuous improvement of assistance provided to dislocated workers. |
| National Partnership Grants | The Secretary is authorized to award grants to eligible entities to carry out programs that are most appropriately administered at the national level. | Multiservice projects and multistate projects over $100,000 must be funded competitively , selected pursuant to peer review process (for grants over $500,000), and are subject to 3-year time limits. |
| Research, Pilots and
Demonstration Grants
|
The Secretary is authorized to conduct continuing
research.
The Secretary is authorized to conduct pilot and
demonstration programs, through grants and contracts,
for the purpose of developing and improving
techniques and demonstrating the effectiveness of
specialized methods in addressing employment and
training needs. Demonstration programs may not be
funded for more than 7 years. Pilot programs may not
be funded for more than 3 years.
Dislocated worker program has separately authorized demonstration programs. Not less than 10% of national reserve funds must be expended on such programs. |
The Secretary is required to award grants or contracts to carry out
research projects. Awards over $100,000 must be made on a
competitive basis. However, a noncompetitive award may be made in
the case of a project that is funded jointly with other public or private
sector entities that provide a substantial portion of assistance for the
project. The Secretary is required to utilize a peer review process to
review and evaluate all grants in amounts that exceed $500,000.
Demonstration and pilot projects are only to be awarded on a
competitive basis, except that a noncompetitive award may be made in
the case of a project that is funded jointly with other public or private
sector entities that provide a portion of the funding for the project.
The Secretary is to use not use more than 10 percent of dislocated worker funds reserved at the national level to carry out demonstration and pilot projects, multiservice projects, and multistate projects, relating to the employment and training needs of dislocated workers. |
| Evaluation
|
The Secretary is authorized to provide for the continuing evaluation of programs conducted under JTPA, as well as of federally-funded employment-related activities under other provisions of law. | Similar to current law. |
| Wagner-Peyser
|
Currently, separate authorization and funding stream. | Retains separate authorization and funding stream. Public labor exchange activities are required to be part of the one-stop system. Integrates Wagner-Peyser plan into State Workforce Development plan. |
| Twenty-First Century Workforce Commission | N/A | A "Twenty-First Century Workforce Commission" would be established to study matters relating to the information technology workforce in the United States. Composed of 15 members, the Commission is required to submit to the President and Congress their report within 6 months of their first meeting and terminate within 90 days after submitting their report. |
| Funding Authorization Level
|
No funding levels specified (such sums only) for all but Vocational Rehabilitation. | No funding levels included (such sums only). Includes percentage earmarks for specific categories of national activities. |
| General Waiver of Statutory Requirements | FY 96, 97 and 98 appropriations acts have provided the Secretary with general waiver authority over JTPA provisions, except for specified provisions that may not be waived, pursuant to State requests. Waivers are for one year in duration. | Includes waiver authority similar to current appropriations acts, except waivers may be granted for the full 5-year authorization period.. |
| Work-Flex | The Department of Labor Appropriations Act of 1997 authorized the Secretary to grant Work-Flex authority for the provision of workforce training and employment activities to a maximum of six States. Work-Flex States are authorized to waive certain statutory and regulatory provisions of titles I-III of JTPA and section 8-10 of Wagner-Peyser. | Eligibility for "Work-Flex (currently authorized for six States by appropriations law) is expanded to all States. Pursuant to an approved plan, Governors would be granted authority to approve requests for waivers of statutory or regulatory provisions of title I submitted by their local workforce areas (except for labor standards and certain other provisions). Work-Flex States also would be authorized to waive section 8-10 of the Wagner-Peyser Act and provisions of the Senior Community Service Employment Program. |
| Extended Transition/ Grandfathering | N/A | Allows state law provisions, enacted prior to December 31, 1997, relating to designation of service areas, and sanctioning of local areas for poor performance that are inconsistent with title I requirements to continue in effect for the 5-year authorization period. In addition, all states and localities may retain their existing state councils and local boards created under JTPA if they substantially meet the requirements of this Act. |
| Labor Standards | Requires participants to be paid at same rates as similarly situated employees, prohibits displacement of employed workers, and use of funds to encourage employer relocation, limits use of funds for economic development, contains separate nondiscrimination protections. Requires State and local grievance procedures. | Similar to current law. |
| Miscellaneous Administrative Provisions | OMB circulars do not apply, Secretary prescribes regulations relating to cost principles and administration of funds. State responsible for repaying disallowed costs from non-Federal funds (including stand-in costs), although Secretary may allow States to use future allotments as offset in certain cases. Program to be carried out on program year cycle (July 1 - June 30). Funds available for expenditure by States and localities during year of obligation and two succeeding years. Contains reporting, recordkeeping, administrative adjudication and judicial review provisions. | Applies OMB circulars to the administration of funds and cost principles. States are provided authority to repay disallowed local costs by deducting future year local administrative funds. Program year cycle retained, but youth funds available April 1. Expenditure period shortened for local areas to year of obligation and the succeeding year. Similar to current law with respect to other administrative provisions. |
| Implementation Schedule
Authorization Period |
N/A
Unlimited Authorization |
The Secretary of Labor and the Secretary of Education are each
authorized to take such actions as they determine to be appropriate to
provide for orderly transition to the new programs under their purview.
The Act is effective on the date of enactment, except as otherwise
provided in the Act.
Authorizes appropriations for five years (FY 1999-FY 2003). |
*H.R. 1385, the Workforce Investment Act, was enacted into law on August 7, 1998 as P.L. 105-220.