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WORKFORCE INVESTMENT ACT STEVE PINES New “Old” Opportunities for ED-Entrepreneurs!

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Presentation on theme: "WORKFORCE INVESTMENT ACT STEVE PINES New “Old” Opportunities for ED-Entrepreneurs!"— Presentation transcript:

1 WORKFORCE INVESTMENT ACT STEVE PINES New “Old” Opportunities for ED-Entrepreneurs!

2 What You Will Learn Copyright (C) 2012, EDUMETRIX INC.  Overview of WIA  Program History  Funding  Provider Eligibility  Services for Youth and Adults  The Business Proposition  Contract Models  Q/A 2

3 Workforce Experience Copyright (C) 2012, EDUMETRIX INC. 1978-1980 USDOL- Office of Ass’t Sec’y and Youth Programs 1980-1983- NACo Rep for CETA Prime Sponsors 1983-1987- NAB Director of Youth Services 1993-2003- Sylvan Learning-Career Starters Sold and Operated 40+ Sites Annually I-S and O-S Youth, Welfare to Work, College Remediation $14 Million Annual PL 3

4 What Is WIA?? Copyright (C) 2012, EDUMETRIX INC.  US Dept of Labor-ETA (  Training and Employment Programs for Low-income Youth and Unemployed Adults  Spans Several Decades/Many Acronyms: CETA- JTPA-WIA  Invests ~ $2 Billion Annually; $824 Million For Youth; 70% In-School; 30% Out of School. Majority for Adults.  Job Corps for Drop Outs; Vocational Rehab for Adults-Other Funding Streams  Same Congressional Committee Jurisdiction as ESEA 4

5 Funding Flow-Cycles Copyright (C) 2012, EDUMETRIX INC. Like ESEA Title I, WIA $$ Flow to States; to Local Govt’s That Organize Workforce Investment Boards (WIBs) Funds Allocated Based on Unemployment and Poverty Rates. Funding Program Year=July 1 Thru June 30 WIBs Are Public-Private Orgs that Control All Local Funding Decisions—Your New “BFF”! One-Stop Centers Co-Locate Job Service, UI, and Job Training Services 5

6 Youth Services/Outcomes Copyright (C) 2012, EDUMETRIX INC. 70% for In-School Youth Ages14-18: Basic Skills Remediation Support to Obtain HS Diploma or GED Work Readiness/Life Skills 30% for Out of School Youth Ages 19-21 Support to Attain “Credential”=Diploma or GED Work Readiness/Life Skills Employment, Apprenticeship or Military Retention Rate (6 months post-program) 6

7 Adults Copyright (C) 2012, EDUMETRIX INC. Unemployed, Including Dislocated Workers (and Trade-Impacted) Services include: Assessment and Career Guidance (1-Stops) Basic Skills and GED Counseling Job-Specific Skills Training: Classroom OJT Job Placement and Retention Support 7

8 Service Providers-Buying Cycles Copyright (C) 2012, EDUMETRIX INC. Commercial Vendors and Not For Profits e.g. Lockheed Martin, Maximus, Goodwill Industries, Urban League, LEAs, etc Seek Local Partners If Out Of Area Subrecipient vs Vendor-differences Get on Bidders’ Lists By Late Fall To Winter WIBs Make All Procurement Decisions Driven By Published RFPs In Winter Attend Local Bidders Conferences Contracts Finalized By Late Spring-Negotiation! Services Usually Start July 1 8

9 Contract Types-Pros and Cons Copyright (C) 2012, EDUMETRIX INC. Cost Reimbursement: Actual Documented Expenses Fixed Unit Price: Published “Commercially-Available Price for Unit of Service (e.g. GED Prep Program of 40 hours =$3,000) Performance-Based Contracts: Payments Based on Program Milestones By Students (e.g. 25% Enrollment, 50% of Objectives Met, GED Attained) 9

10 Sample O-S Youth Budget for 90 Participants (3 cycles of 30 each) Copyright (C) 2012, EDUMETRIX INC. Center Director $50,000 Instructor 40,000 Case Manager 40,000 Admin 32,000 Equipment/PCs 10,000 Facilities 20,000 Student Incentives 9000 Subtotal $201,000 Overhead (10%) $20,000 Total with 25% Profit $276,250 Cost Per Student $3069.00 10

11 Example of Perf-Based Contract Copyright (C) 2012, EDUMETRIX INC. If Internal Base Cost+ Per Student is $3000, Gross It Up To $3500 for Risk-Reward: 30% upon Enrollment/Assessment 30% Upon Midpoint 40% Upon Completion (e.g. GED and Job) 10% 3-6 Month Retention (Bonus) 11

12 Questions? Copyright (C) 2012, EDUMETRIX INC. For more information: United States Department of Labor, Employment and Training, Youth Services: One-pager on WIA Youth Program: df df One-Stop Center program: National Association of Workforce Investment Boards: http://nawb.org National Youth Employment Coalition Issue Brief on WIA: 12

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