1. www.workforcealliance.org National Election and Federal Policy Update What’s Happened, What’s Next and Where We Go From Here

2. www.workforcealliance.org The 2008 Election: What it Meant for Workforce Issues

3. www.workforcealliance.org White House: Candidate Obama on Skills Job Creation: Investments in Clean Energy, Infrastructure College Access: American Opportunity Tax Credit Education Reform: Range of K-12 proposals, including for college prep Urban Poverty: Career Pathways, Transitional Jobs, Ex-Offenders Job / Technical Training: Reauthorize WIA; Community College Partnerships

4. www.workforcealliance.org President Obama: The First 100 Days Cabinet and Departmental Appointments: Labor, ETA; Education, OVAE American Recovery and Reinvestment Act Middle-Class Task Force (OVP) FY2010 Budget Proposal

5. www.workforcealliance.org New Congress and Administration: What’s Next?

6. www.workforcealliance.org 111th Congress: Unfinished Business FY09 Appropriations WIA TAA SECTORS Act

7. www.workforcealliance.org 111 th Congress: New Business Economic Recovery Bill Financial System Health Care, Energy, Education Reform FY2010 Budget, Appropriations

8. www.workforcealliance.org American Recovery and Reinvestment Act

9. www.workforcealliance.org Purpose of the Bill To create or save between 3-4 million jobs  Emphasis on infrastructure, green jobs, health care Jump start the economy (short-term) Rebuild economy (long-term)

10. www.workforcealliance.org Basic Structure of the Bill $790 billion total cost (down from high of $940B in Senate version) Roughly 2/3 spending, 1/3 tax cuts Focuses on funding existing programs

11. www.workforcealliance.org WIA Formula WIA Bill Provision National Funding Total Funding $2.95B WIA Adult $500M includes supportive services; provides that priority for intensive and training services to recipients of public assistance and other low-income individuals WIA Dislocated Worker $1.25B WIA Youth $1.2B work readiness only performance measure for effectiveness of summer jobs; expands age limit from 21 to 24

12. www.workforcealliance.org Funds are Short-Term: Funds to remain available “only as long as the other funds [PY08] allotted in that program year.” The Challenges Huge Expectations: The anticipation of “Transformative Change” is being shouldered by the workforce system.

13. www.workforcealliance.org A Monumental Shift from Contingency Planning to Capacity Building: an unanticipated turnabout after years of disinvestment in the country’s workforce system. The Challenges

14. www.workforcealliance.org WIA Discretionary WIA Bill Provision National Funding Total Funding$1B YouthBuild$50M Funds may be used to serve individuals who have dropped out of high school and enrolled in an alternate school if part of a sequential service strategy National Emergency Grants$200M Competitive Grants for High Growth Industries $750M; $500M Reserved for research, labor exchange, and job training to prepare workers for green jobs. Priority for remaining funds given to health care sector and other high demand industries identified by local workforce areas

15. www.workforcealliance.org Other DOL Programs Bill Provision National Funding State Unemployment Insurance and Employment Services Operations $400M / $250M To be used to provide reemployment services to UI claimants Community Service Employment for Older Americans $120M Available through June 2010; funding to be allotted in proportion to PY 2008 to current grantees w/in 30 days Job Corps$250M

16. www.workforcealliance.org Department of Education Bill Provision National Funding Pell Grant Program (discretionary) $15.64B For Federal Pell Grant program; would increase maximum grant by $500 per year Vocational Rehabilitation State Grants $540M Work-Study$200M

17. www.workforcealliance.org Other Education and Training Provisions Bill Provision National Funding Electricity delivery and energy reliability activities (DOE) $100M For worker training activities On-the-Job Training/Supportive Services (OJT/SS) (DOT) $20M To support programs that enhance training opportunities for members of minority groups Health Resources and Service Administration workforce development programs (HHS) $500M To address health professions workforce shortage. Federal Building Fund (GSA)$3M For OJT pre-/apprenticeship programs registered with DOL for construction, repair and alteration of federal buildings

18. www.workforcealliance.org Other Programs Bill Provision National Funding Community Service Block Grant (CSBG) (HHS) $1B Full amount available upon enactment. Permits states to set eligibility at 200% of poverty Community Development Block Grant (CDBG) (HUD) $1B

19. www.workforcealliance.org Infrastructure and Energy Efficiency Focus on infrastructure and clean energy projects Opportunities to coordinate (ETA TEGL) Examples of funding  $27.5B for highway infrastructure  $8B for high-speed rail  $5B weatherization assistance fund  $3.2B for Energy Efficiency and Conservation Block Grant (EECBG)  $4B for public housing capital fund

20. www.workforcealliance.org American Opportunity Tax Credit Amends Hope Higher- Education Tax Credit for tax years 2009, 2010 Worth up to $2500 per year 40% refundable

21. www.workforcealliance.org TAA Reauthorization Expands coverage Increases training funds to $575M for FY09 and FY10 $40M in FY09 and FY10 (plus $10M for balance of 2010) for sector partnership $40M to community colleges in FY09 and FY10 (plus $10M for balance of 2010) Fixes the 8/16 rule, shifts to a straight 26 weeks Allows more flexible training options including part-time, long- term, and pre-layoff training options.

22. www.workforcealliance.org TAA Sector Partnership Grant Program Up to $2.5M over 3 years to “strengthen and revitalize industries and sectors and create employment opportunities for dislocated workers” Mandatory Partners Allowable activities

23. www.workforcealliance.org Unemployment Insurance (UI) Continues current extension of unemployment insurance Increases (through December 31) average benefit by $25 per week, to $325 Allows up to $7B to be transferred to state account to incentivize modernizing UI system

24. www.workforcealliance.org Next Steps IMMEDIATELY: A lot of money is to pouring down—need to be acting now to shape how its spent  Organizations should be talking to partners in the workforce system now  Demonstrate training capacity, job placement LONG(ER)-TERM: Critical that workforce community be able to show effective use of funds for positive outcomes

25. www.workforcealliance.org FY 2009 Appropriations Omnibus $410 billion total Basically level funds workforce, employment services at FY08 levels, about $3.6 billion Funds to be used simultaneously with recovery funding

26. www.workforcealliance.org FY 2010 Budget Proposal Summary released February 26 th, Details released May 7 th “Strong support” for federal workforce training programs Interest in promoting transitional jobs and career pathways programs Expands on the significant support for green jobs training under the recovery bill Calls for Pell Grant funding to be mandatory, increases maximum award to $5,500, eliminates lender subsidies under current Federal Family Education Loan Program (FFELP). House budget resolution includes reconciliation language

27. www.workforcealliance.org WIA Reauthorization? House Education and Labor Committee hearings – most recent May 5th Senate HELP staff “Listening Sessions” in November 2008, April 2009

28. www.workforcealliance.org SECTORS Act S. 777 introduced by Sen. Brown (D-OH), Sen. Snowe (R-ME), Sen. Murray (D-WA) H.R. 1855 sponsored by Rep. Loebsack (D-IA), Platts (R-PA) Establishes designated capacity for sector partnerships under WIA

29. www.workforcealliance.org

30. Key Messages We need new attention on the forgotten middle of the skilled labor market The workforce of today is the workforce of tomorrow There are multiple pathways to good jobs We need a 21 st -century skill guarantee

31. www.workforcealliance.org Changing the Conversation: Changing Policy

32. www.workforcealliance.org Presidential Signals Joint address to Congress on February 24th: "It is our responsibility as lawmakers and as educators to make this system work. But it is the responsibility of every citizen to participate in it. So tonight, I ask every American to commit to at least one year or more of higher education or career training. This can be community college or a four-year school; vocational training or an apprenticeship. But whatever the training may be, every American will need to get more than a high school diploma.“

33. www.workforcealliance.org Jessie Hogg Leslie Senior Regional Field Director The Workforce Alliance jessieh@workforcealliance.org 513-321-0998