UNITED STATES DEPARTMENT OF LABOR May 13, 2015 TEGL 27-14: WIOA Transition Authority For Immediate Implementation of Governance Provisions

UNITED STATES DEPARTMENT OF LABOR Moderator & Presenters Joe Barela, Senior Advisor USDOL - Employment and Training Administration Amanda Ahlstrand, Administrator USDOL - ETA - Office Of Workforce Investment Heather Fleck, Governance Unit Chief USDOL - ETA - OWI - Division of WIA Adult Services and Workforce System Sean Fox, Workforce Analyst USDOL - ETA - OWI - Division of WIA Adult Services and Workforce System 2 2

UNITED STATES DEPARTMENT OF LABOR Poll Question # 1 Tell us who you are: Governor’s representative State Workforce Board State Workforce Agencies Local Workforce Board Representative of Locally Elected official One-Stop Operator Other 3

UNITED STATES DEPARTMENT OF LABOR Agenda This session will address: ETA’s Vision for State Boards and the Need to Act Now! Timeframe Appointment of State Board State Policy for Local Board Appointments State Policy for Local Area Designation The Identification of Regions The Designation of Local Areas 4

UNITED STATES DEPARTMENT OF LABOR State and Local Board Vision WIOA represents an opportunity to transform the public workforce system. Statutory deadlines are quickly approaching. Published operating guidance is available at The key to successful implementation is the appointment of qualified State and Local Boards ASAP. 5

UNITED STATES DEPARTMENT OF LABOR State and Local Board Vision Most provisions of WIOA take effect on July 1, 2015, including those related to State and local governance of the workforce system. Boards ensure customer-driven One-stop system. Boards align resources to match employers with skilled individuals. Boards serve as a strategic convener of diverse stakeholders. Boards promote partnerships. Board members must actively participate and collaborate with all partners, both public and private. 6

UNITED STATES DEPARTMENT OF LABOR Activities that must be completed by July 1, EntityAction Required Consultation The Governor Appoint WIOA-compliant State Board N/A Develop a policy for designation of local workforce development areas State Board, Local Board, Chief Elected Officials Establish criteria for the selection and appointment of Local Board members N/A

UNITED STATES DEPARTMENT OF LABOR Activities that may be completed after July 1, 2015 EntityActionRequired ConsultationDeadline The Governor Designate local workforce development areas State Board, Public Comment Described in first Unified or Combined State Plan (The State is strongly encouraged to respond to all requests for initial designation by July 1, 2016) Identify RegionsState Board Described in first Unified or Combined State Plan Chief Local Elected Official Appoint a WIOA- compliant Local Board N/AStrongly encouraged in the first quarter of PY

UNITED STATES DEPARTMENT OF LABOR Appointing a WIOA-Compliant State Board: Board Membership The membership of State Board must meet the requirements of WIOA 101 (b)(1): Business Majority 20 Percent Workforce Remainder Government Optional Members May contribute to 20 percent workforce requirements Expands representation on the Board. Committees 9

UNITED STATES DEPARTMENT OF LABOR Appointing a WIOA-Compliant State Board: Selection Criteria WIOA Section 101(b)(3) prohibits multi-entity representation. All representatives must have optimum policy-making authority. The State Board must conduct business in an open manner as required by the ‘Sunshine Provisions’ at WIOA section 101(g). 10

UNITED STATES DEPARTMENT OF LABOR Polling Question # 2 Of those participating today that represent a State, do you think you will have a WIOA-compliant State Board on July 1, 2015? Definitely – We anticipate that the whole Board will be 100% compliant. We are confident we will be compliant, but are still identifying/recruiting members. We have begun identifying/recruiting members, and hope to be compliant. Not At All 11

UNITED STATES DEPARTMENT OF LABOR Polling Question # 3 For State participants - If you have started recruiting State Board members, are there member categories any that you are having difficulty recruiting? ___________________________________ 12

UNITED STATES DEPARTMENT OF LABOR Appointing a WIOA-Compliant State Board: Hiring Staff New to WIOA: The State Board may hire a director and other staff to assist in carrying out the functions of the State Board. Emphasizes the Board’s leadership role. The director and staff are subject to the limitations on the payment of salary and bonuses described in WIOA Sec. 194(15). 13

UNITED STATES DEPARTMENT OF LABOR Local Board Appointment Policy: Membership Requirements In consultation with the State Board, the Governor must develop a policy for the appointment of Local Board members that takes into account the Local Board membership requirements at 107(b)(2). Business Majority 20 Percent Workforce Representatives of Education and Training Activities Representatives of Governmental and Economic Development Entities Other Optional Membership Categories 14

UNITED STATES DEPARTMENT OF LABOR Local Board Appointment Policy: Appointment Criteria The Governor’s policy must also address the following membership criteria: Policy for the nomination of business, labor, adult education and institutions of higher education All Board members must have “optimum policy-making authority” “Demonstrated experience and expertise” required for members from CBO’s and youth-serving organizations Multiple-entity representation allowed 15

UNITED STATES DEPARTMENT OF LABOR Polling Question # 4 For State participants – Has the Governor published the policy for appointment of local board members yet? Yes No 16

UNITED STATES DEPARTMENT OF LABOR Polling Question # 5 Of those participating today that represent Local areas, do you think you will have a WIOA-compliant Local Board on July 1, 2015? Definitely – We anticipate that the whole Board will be 100% compliant. We are confident we will be compliant, but are still identifying/recruiting members. We have just begun identifying/recruiting members, and hope to be compliant. Not At All 17

UNITED STATES DEPARTMENT OF LABOR Polling Question # 6 For Local participants - If you have started recruiting Local Board members, are there member categories any that you are having difficulty recruiting? ___________________________________ 18

UNITED STATES DEPARTMENT OF LABOR Local Board Appointment Policy: Standing Committees The Department encourages the use of standing committees to expand opportunities for stakeholders to participate in board decision-making. Types of Committees: – Youth – Services to Individuals with Disabilities – One-Stop Operations – Other Committees (as determined by the Chief Elected Official) 19

UNITED STATES DEPARTMENT OF LABOR Polling Question # 7 For Local participants: Which standing committees are you considering putting in place: -Youth Standing Committee -Services to Individuals with Disabilities -One-Stop Operations -Other (Fill in the blank _________________) 20

UNITED STATES DEPARTMENT OF LABOR Designate Local Workforce Development Areas and Identify Regions States must describe the designation of local areas and identify regions in their Unified or Combined State Plan (due March 2016). Purpose of a Region: facilitate alignment of workforce development activities with regional economic development activities and better support sector strategies and career pathways. Regional planning must occur when two or more local areas are assigned to a region. Look for future guidance on regions. 21

UNITED STATES DEPARTMENT OF LABOR Designate Local Workforce Development Areas and Identify Regions Purpose of Local Areas: to serve as a jurisdiction for administration of workforce development activities. Coordinate efforts related to all the core programs at the local level. Governors must designate local areas for the State to receive Adult, Dislocated Worker, and Youth funding. 22

UNITED STATES DEPARTMENT OF LABOR Timing for Regional Identification and Local Area Designation Consider designation of local areas in the context of regions where possible. Statute permits WIA local areas to request initial designation under WIOA in PY 2015 and PY DOL encourages initial designation by July 1, All regions and local workforce areas must be described in the March 2016 State Plan. 23

UNITED STATES DEPARTMENT OF LABOR State Must Develop Policy for Designation of Local Areas ConsiderationsApplies to: Consultation with the State Board ALL Local Area Designations (Initial and New) Consultation with the chief elected officials and affected Local Boards Consideration of comments received through a public comment process. Extent to which the proposed area is consistent with local labor markets NEW Local Areas Extent to which the proposed area is has a common economic development area Extent to which the proposed area has the federal and non-federal resources to administer activities under the Youth, Adult and Dislocated Worker formula programs 24

UNITED STATES DEPARTMENT OF LABOR Requirements to Continue WIA local areas under WIOA Statute refers to WIA local areas that continue under WIOA as “initial designation.” Governor should establish procedure to accept requests from local elected officials and local boards of WIA local areas that want WIOA local area designation. Criteria for approval includes performed successfully and sustained fiscal integrity. Initial designation applies to PY 15 and PY

UNITED STATES DEPARTMENT OF LABOR Initial Designation: Performed Successfully TEGL defines performed successfully as: the local area met or exceeded the levels of performance the Governor negotiated with the Local Board and chief elected official and the local area has not failed any individual measure for the last 2 consecutive program years before the enactment of WIOA. The terms "met or exceeded" and "failure" must be defined by the Governor in the State's policy consistent with how those terms were defined at the time the performance levels were negotiated. When designating local areas, the Governor may not retroactively apply any higher WIOA threshold to performance negotiated and achieved under WIA. 26

UNITED STATES DEPARTMENT OF LABOR Initial Designation: Sustained Fiscal Integrity TEGL defines sustained fiscal integrity as: the Secretary has not made a formal determination that either the grant recipient or the administrative entity of the area misexpended funds due to willful disregard of the requirements of the provision involved, gross negligence, or failure to comply with accepted standards of administration for the two-year period preceding the determination. 27

UNITED STATES DEPARTMENT OF LABOR TEGL 27-14, Change 1 Was issued on Tuesday, May 12,

UNITED STATES DEPARTMENT OF LABOR Appeals The State must develop an appeals policy for units of local government that request but are denied initial designation status. Must include a provision for review by Secretary of Labor. 29

UNITED STATES DEPARTMENT OF LABOR Single-Area States WIA Single-area states may be designated as a single State local area under WIOA. Must be identified in the State Plan. Local Plans must be included in State Plan. State Board must carry out local board functions. States that were not single State local areas in WIA may not designate themselves as such in WIOA. 30

UNITED STATES DEPARTMENT OF LABOR Polling Questions # 8 For State participants – Has the state identified WIOA regions yet? Yes No Does the State plan to align the WIOA regions with other established regions in the State (e.g., economic development regions)? Yes, we will align the regions with _______. No 31

UNITED STATES DEPARTMENT OF LABOR Polling Question # 9 For State participants – Do you think you will have a local area designation policy in place by July 1, 2015? Definitely – We will publish the policy and have it in place by July 1, We are confident we will have a policy in place by then, and we are working hard to develop it now. We just started developing the policy, and hope it will be ready by July 1, We haven’t started developing our policy yet. 32

UNITED STATES DEPARTMENT OF LABOR Polling Question # 10 For all participants – What technical assistance activities, tools, and resources regarding the implementation of governance provisions would be helpful to you? ______________________ 33

UNITED STATES DEPARTMENT OF LABOR Wrap Up Appoint WIOA-compliant Boards ASAP. Ensure the State Board works with the Governor and state agency to develop local board criteria and local area designation policies. The Department encourages immediate action on all provisions, not just those with a statutory deadline of July 1,

UNITED STATES DEPARTMENT OF LABOR Implications of Open NPRM Submit NPRM questions to

UNITED STATES DEPARTMENT OF LABOR Q&A Questions? 36