THE WORKFORCE INVESTMENT ACT LOCAL WORKFORCE INVESTMENT AREAS AND REDESIGNATION Oregon Associated Counties April 14, 2014

WHY NOW? Changing economy  Increasing disparity  New approaches to economic development  Focus on skills as our competitive advantage Getting more leverage from decreasing funds  Aligning all workforce development resources toward community goals  Aligning workforce with economic development and regional solutions. Focus on local decision making

WHAT IS AN LWIB? Federally mandated private public partnerships (WIA 1998) The Board members must include:  Business majority  Organized Labor, Economic Development, Education and Workforce Programs  Chief Local Elected Officials (County Commissioners/Judges/Mayors) LWIB usually incorporated as a 501c3 or as intergovernmental organization (ORS 190) Organization’s staff are also the staff to the board In Oregon, an LWIB may not also be a service provider for WIA services

RESPONSIBILITIES OF LWIBS Align workforce programs and strategies at the local level Invest WIA Title 1 funds to help people get to work Align local workforce supply and demand Assure those with barriers to employment are able to find employment and enter career pathways Charter WorkSource Centers Oversee WorkSource Center and local workforce system performance. Bring a wide array of partners into the local workforce system

CHANGING LWIB ROLE “System building” to meet local needs  Great Recession - high unemployment, reduced federal $, especially in rural areas - need to reach beyond WIA for $ and in-kind resources  Economic disparities – require alignment with local economic development to tailor and prioritize services based on local needs.  Diffuse system – requires aligning the web of state and local workforce programs to assure that those with economic challenges have opportunity to become employed. SB 1566 and Executive Order begin to address these facts

LWIBS ARE THE PUBLIC TALENT MANAGEMENT TOOL FOR ECONOMIC GROWTH But their areas don’t always align with labor markets/economic development/industry clusters

WORKFORCE AREA REDESIGNATION 2005 Omnibus Budget Bill  Governors cannot unilaterally change area boundaries, except for  poor local performance  serious fiscal mismanagement  lack of opposition by affected local governments Oregon LWIB boundaries set in 1998 Tillamook is the only county to have left one workforce area and joined another since then.

LOCAL AREA REDESIGNATION If one or more counties would be better served by having a different geographic configuration:  They could ask to join an existing area or ask to form a new workforce area Any counties remaining from original area:  Could ask to join another workforce area or ask to form a new workforce area Once the boundaries are finalized, the new Local Workforce Area must determine  Whether to integrate under and existing LWIB or from a new one LWIB works with Chief Local Elected Officials (CLEOs) to assure appropriate services throughout the new workforce area.  Service providers can be “grandfathered” for a period of time to avoid disruption of services

FORMING AN LWIB CLEOs appoint board members Board establishes organizational structure (501c3, ORS 190, etc.)  An existing organization can become an LWIB as long as it has control over its resources and does not provide WIA Title 1 services Board hires a director and enters into agreements with CLEOS LWIB submits to be chartered by OWIB LWIB issues a request for proposals

ROLES OF CHIEF LOCAL ELECTED OFFICIALS Appoint and partner with a business-led LWIB Provide oversight and direction as needed Assure that the LWIB has a mechanism to manage liability  Local government(s) are liable for disallowed costs ONLY IF the workforce area  cannot pass liability on to a service provider,  insurance does not cover the deficit,  there are insufficient general funds held by the local grant recipient to cover the liability,  a waiver is denied by either the State or USDOL. NOTE: To date, no local NW government has incurred liability due to WIA disallowed costs.

OREGON’S APPROACH TO REDESIGNATION Collaborative:  OWIB, CLEOS and public have input But unfortunately, fast  CLEOs petition to change boundaries are due April 15, 2014  New boundaries recommended by July 1, 2014 and sent to DOL for approval by October 1, 2014  New/revised workforce area(s) begin(s) operations July 1, 2015

CRITERIA FOR LOCAL AREA  Areas should be served by local education agencies, post-secondary educational institutions and area vocational education schools.  Consistent with labor market areas.  Consider distance traveled to receive workforce services.  Assure sufficient resources to administer the WIA 1B program.  Consider evidence that a redesignation would:  Better meet criteria in OWIB strategic plan (sector strategies and work ready communities)  Be more effective or efficient (?), and  Produce better performance results for customers (?) Governor likely to add:  Align with economic development districts and/or regional solutions  Counties in the area should be contiguous

WORKSOURCE CENTER AND AFFILIATE SITES

COSTS/RESOURCES Factors:  The cost of coordination – LWIB costs must be budgeted  When counties move from one area to another, their WIA investment moves with them.  Some configurations are too small in terms of resources  The cost of new configurations will be supported with more than WIA Title 1 Conclusion: Oregon could support up to 8 to 9 LWIBs without significant additional investment (there are currently 7)

BOUNDARIES AOC April 14, 2014

NORTH COAST Clatsop, Columbia, Lincoln and Tillamook Counties MID-WILLAMETTE VALLEY Marion, Polk and Yamhill Counties SOUTH WILLAMETTE VALLEY Benton, Lane, Lincoln and Linn Counties SOUTHERN OREGON Coos, Curry, Douglas, Jackson and Josephine Counties METRO Clackamas, Multnomah and Washington Counties CENTRAL OREGON Crook, Deschutes, Hood River, Jefferson, Klamath, Lake, Sherman and Wasco Counties EASTERN OREGON Baker, Gilliam, Grant, Harney, Malheur, Morrow, Umatilla, Union, Wallowa and Wheeler Counties