NCSLnet: Welfare-to-Work Block Grant Levels

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WorkNotes

WorkNotes provides state legislators, legislative staff and other interested parties with information about employment, training and human resource development.

September 1997

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Welfare-to-Work

Welfare-to-Work Estimated Grant Allotments

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Employer Incentives In Michigan

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Legislatures to Appropriate Welfare-to-Work Block Grant -

State Funding Levels Announced

The recent passage of the 1997 Balanced Budget Act added a new level to last year's welfare reform: welfare-to-work block grants. The Department of Labor will soon release the regulations for the $3 billion block grant funds which will be dispersed over the next three years to states. Additional grant money will be available for Indian tribes, an HHS evaluation of the abstinence education program and performance bonuses to states. 75 percent of the allocation in each grant year will be distributed to states through a formula based on poverty and the number of TANF recipients in the state. The remaining 25 percent will serve as competitive grants to local communities. As with the TANF block grant, the welfare-to-work formula funds are subject to appropriation by the state legislature.

85 percent of the state formula funds must be distributed to private industry councils (a.k.a. workforce development boards in the current federal workforce consolidation legislation), of which at least 50 percent of these funds must be directed toward areas with a poverty rate above 7.5 percent. The balance of state formula funds may be disbursed by the Governor for projects to assist long-term recipients into work. Allowable activities cited in the bill include community service or work experience programs, job creation through wage subsidies, on-the-job training, job readiness, job placement and post-employment services through contracts or with vouchers, job retention or support services not excluding child care, and Individual Development Accounts. The legislation also specifies a 15 percent administrative cap.

To be eligible for welfare-to-work funds, a state must meet the TANF maintenance of effort (MOE) requirement (80 percent, reduced to 75 percent if a state meets the work requirement) in addition to providing a 33 percent state match (for every two dollars contributed by the federal government, the state must contribute one dollar). For a more detailed analysis of the welfare-to-work block grant, refer to NCSL's analysis of the budget reconciliation bill .

At a welfare-to-work conference sponsored by the Vice-President Al Gore earlier this month, the U.S. Department of Labor issued FY 1998 state welfare-to-work grant levels. These grant levels are detailed in the chart below.

Welfare-to-Work State Formula Grants (Estimates for FY 1998)

Alabama $13,946,266 Nevada 3,449,131

Alaska 2,860,290 New Hampshire 2,761,875

Arizona 17,486,853 New Jersey 23,239,053

Arkansas 8,440,819 New Mexico 9,770,091

California 189,158,618 New York 96,746,539

Colorado 9,925,558 North Carolina 25,204,721

Connecticut 11,741,584 North Dakota 2,761,875

Delaware 2,761,875 Ohio 43,859,618

District of Columbia 4,573,557 Oklahoma 11,838,761

Florida 51,399,886 Oregon 8,789,018

Georgia 28,951,503 Pennsylvania 44,527,566

Hawaii 4,827,072 Rhode Island 4,348,845

Idaho 2,821,590 South Carolina 12,148,469

Illinois 48,626,791 South Dakota 2,761,875

Indiana 14,740,941 Tennessee 22,350,941

Iowa 8,275,164 Texas 75,625,133

Kansas 6,753,540 Utah 4,670,433

Kentucky 17,573,480 Vermont 2,761,875

Louisiana 23,809,809 Virginia 16,725,507

Maine 5,149,450 Washington 22,458,358

Maryland 15,120,329 West Virginia 9,786,496

Massachusetts 20,592,636 Wisconsin 13,284,419

Michigan 42,478,467 Wyoming 2,761,875

Minnesota 14,377,295 Puerto Rico 34,403,919

Mississippi 13,077,589 Virgin Islands 550,548

Missouri 19,925,594 Guam 595,690

Montana 3,191,313 Total $1,104,750,000

Nebraska 3,979,500

Round 2: Federal Workforce Consolidation Legislation

Passed in House, Senate Bill Introduction Looms

On May 16, 1997, the House passed federal workforce consolidation legislation that would combine various employment, training and literacy programs into three block grants: the Adult Employment and Training Block Grant, the Disadvantaged Youth Employment and Training Block Grant, and the Adult Education and Family Literacy Block Grant. At first glance the legislation impressively consolidates over 60 programs. A closer look reveals that nearly 1/3 of the programs were zeroed out in the previous two budget cycles. In many ways HR 1385 is a win for state legislatures, ensuring state legislative appropriation of block grant funds, granting temporary exemption to states that already have workforce consolidation in statute, and mandating that legislators sit on the state Human Resource Investment Council (HRIC).

The Schaefer - Woolsey Amendment called for a restoration of the crucial role in legislatures in coordinating federal and state workforce policy. The amendment passed after much debate in the markup and added the following language "Any funds received by a State under title II or title III of this Act shall be subject to appropriation by the State legislature, consistent with the terms and conditions required under this Act."

The legislation acknowledges the great progress many states have made toward providing for a seamless workforce development system. Those states that have passed workforce consolidation legislation have three years to incorporate the federal legislation into their system: "If, on or before July 1, 1997, a State has enacted a State statute that provides for the establishment or conduct of three or more of the programs, projects, or activities … the State shall not be required to comply with provisions of this Act that conflict with such State statute for the period ending three years after the date of enactment of this Act."

NCSL worked diligently with a coalition of state and local elected officials to draft principles of possible federal workforce consolidation legislation. The principles included a state collaborative process for implementing federal block grants, which was also used as the backbone of the House legislation. The bill calls for the governor to instigate a collaborative process with state legislators, state agency officials, local government representatives, education and training experts, business leaders, and labor representatives. This group would then agree on a comprehensive three-year state plan that would incorporate the three block grants as well as programs under the Wagner-Peyser Act. They would create a performance measurement system for the block grant programs and develop standards for a statewide workforce delivery system including the designation of a local workforce development area and appointments to local workforce development boards.

You may find a more detailed summary and the bill text of HR 1385 at Thomas, an on-line congressional information service provided by the Library of Congress.

The Senate bill incorporates vocational education and job training programs but keeps the funding streams separate. Check back to this site later for a summary of the Senate bill.

State Innovation: Employer Incentives

Wondering how to get more employers involved in offering internships or apprenticeships? Michigan lawmakers have found a way. Last year the Michigan legislature enacted Senate Bill 872 that grants a tax credit to employers who participate in a registered youth apprenticeship program. The employers are entitled to a credit equal to 50 percent of the apprentice's salary, fringe benefits and other related expenses and 100 percent of all costs incurred by the employer for classroom-related instruction, as long as the registered apprentice is in high school.

The state expects the incentive to attract younger apprentices to significantly impact school-to-work implementation in Michigan, and to revitalize the aging, skilled workforce. The Michigan Jobs Commission has a target goal of 25,000 apprenticeship opportunities, a far cry from the current 200 slots now available. In order to recruit more students and businesses, the legislation also allows schools to become "junior BAT (Bureau of Apprenticeship and Training) representatives" according to Cindy Ballard of the Michigan Jobs Commission. Michigan has the only state-wide, federally registered apprenticeship program, meaning that in the past only the five federal BAT representatives have been able to place an apprentice of any age. The 40 schools that are now certified can do everything but actually register the apprentice in one of the 800 apprenticeships offered. Ms. Ballard believes one strength of the Michigan apprenticeship program is the fact that the federally registered apprentices will complete their training with a journeymen's card that can be accepted anywhere in the country. For further information contact Cindy Ballard, Director of Policy and Program Development with the Michigan Jobs Commission at (517)335-5883.

One-Stop Chartering Study

The Department of Labor's Employment and Training Administration announced the completion of a study of the certification and chartering efforts for One-Stop Career Centers in twelve states. The study was commissioned at the request of some states, which asked for assistance in approaching the development of certification criteria and the application of the criteria in determining when a facility should be certified as a One-Stop Center. The study compares and contrasts the certification criteria established by the states and reflects on the states' varied experiences with certification requirements. It also provides lessons learned and options for proceeding differently. A matrix of the different certification approaches for the twelve states (Ariz., Conn., Ind., Iowa, Md., Mass., Minn., Mo., N.C., Ohio, Texas, and Wis.) is also included. This information should be especially useful for states just beginning the implementation process.

To receive a copy of the study please contact Ingrid Evans, at (202) 219-8395, ext. 173, in the National One-Stop Office.

NCSL Technical Assistance

NCSL received funding from the Kauffman Foundation in Kansas City to help Missouri and Kansas conduct an inventory of their job training programs and school-to-work plans. Although millions of dollars are spent on these programs each year, most states have no comprehensive system for workforce development. The fact that states rely on federal mandates and complex funding streams, differing eligibility requirements, overlapping services and often face turf battles among constituency groups, creates a confusing and sometimes mysterious web of programs. NCSL can help additional states get a better picture of what their work force development programs look like and how money is spent. If your state is interested in using NCSL's services to de-mystified its workforce development web, contact Karen Johnson.

Staff Changes in D.C. and Denver

After seven years with the Employment and Training Project, Scott Liddell has moved on to be the new editor for NCSL's energy, science and natural resources publications.

The policy associate position moved to the D.C. office and was filled by Tracy Schmidt. Tracy previously worked with NCSL's international programs. If you have any questions or need any information from the Employment and Training Project, please feel free to give Tracy a ring at (202) 624-8196 or e-mail her at tracy.schmidt@ncsl.org.

NCSL WorkNotes is published by the Employment and Training Project of the National Conference of State Legislatures, 444 N. Capitol St., NW, Suite 515, Washington, DC 20001; (202) 624-5400, (202) 737-1069 (fax).

This newsletter is funded by the U.S. Department of Labor. Opinions or conclusions expressed herein do not necessarily reflect the views and policies of the U.S. Department of Labor.

If you have news you would like to share with WorkNotes readers or comments on this issue, please contact Tracy Schmidt at the above address, or by e-mail at tracy.schmidt@ncsl.org.