Labor and Employment

WorkNotes

WorkNotes provides state legislators and legislative staff with information about employment, training and human resource development.
September 1999

State Legislatures Drive Workforce Development Reforms
NCSL Conducts More Workforce Inventories
Publications of Interest

WorkNotes Archive

State Legislatures Drive Workforce Development Reforms

Remember when you were sixteen and anxious to drive? What did you do when your father handed you the keys to the car? Did you sit on them? Did you toss them out the window? No, of course not. You said thanks, ran out the door and revved up that engine. Usually in life we are anxious to be in the driver's seat.

With the 1998 passage of the federal Workforce Investment Act (WIA), Congress handed state legislatures the keys to drive their state workforce development system. Some legislatures have already gotten behind the wheel while others are still in the back seat being taken for a ride.

Although there are only three references for state legislative action in WIA, state legislatures can still codify as much of the new workforce paradigm as they would like and still put their mark on the system by going further than WIA.

WIA clearly states that legislative leadership will appoint four legislators to serve on the state workforce investment board (WIB)(or human resource investment council, as it was known in pre-WIA days). This is a valuable connection between the legislature and planning for the state workforce system. It is imperative that legislators know and understand what transpires in the state WIB because the legislature must also appropriate all federal training money. Legislatures should not be snookered into inaction because the state may loose the right to grandfather their system, especially since in many cases prior executive orders do not constitute whole system reform agreed to by all stakeholders.

Nineteen legislatures passed laws (and one resolution) in their 1999 sessions mentioning WIA. Some legislatures made superficial changes. Others took the lead on system reform by not only codifying the workforce development structure laid out in WIA, but also putting their own stamp on the system.

Since legislatures have the right to appropriate WIA title III training funds, they have the power to direct federal funds like never before. One prime example of directing local policy with federal dollars is in Florida. The Florida legislature earmarked 10 percent of WIA youth funds that go to the regional WIBs for performance payments for public schools' dropout prevention programs. In addition, another legislative priority, incumbent worker training, will receive five percent of the 15 percent funds that remain at the state level.

In addition to appointing legislators, and appropriating the federal training money, legislatures must also approve the inclusion of secondary vocational funds if it's the state's intent to make vocational education part of the workforce development system. Florida, Indiana and Wyoming were the only states in the survey that approved this inclusion.

Arkansas, Hawaii, Indiana, North Carolina, and Oregon codified in detail the state and sub-state structural changes to their workforce system based on WIA. States can also go above and beyond the federal guidelines when establishing their system, as did some of these states. Arkansas incorporated the WIA template into their new overall workforce system, which included numerous provisions to keep the General Assembly informed of the state WIB actions and recommendations. Arkansas' law also allows one legislative appointment to the state WIB to come from the Women's Caucus as well as the Black Caucus. Indiana created Incumbent Worker Councils on the local level to develop an incumbent worker plan to be incorporated into the regional plan, much like the youth councils that are mandated in WIA. North Carolina established an Employment and Training Grant program to dole out federal funds to locals based on the WIA funding formula. Presumably, this should make appropriating the federal funds easier. Oregon's legislation also creates lines of communication between the Legislative Assembly and the state WIB, and mentions that any funds under sections 1-6 of WIA will be appropriated by the legislature. It also allows one-stop services to include drug and alcohol rehabilitation services.

Some states like Texas and Vermont mainly amended their state WIB statute. Texas' law now requires the state WIB to report to the legislature and asked the WIB to evaluate the workforce development system as a whole, instead of individual programs. Vermont's law really strengthened its state WIB by allowing the board to examine the revenues and expenditures of all state agencies with workforce programs. It also empowers the board to hold agencies accountable for their annual objectives set by the WIB.

State legislatures shouldn't miss the opportunity to creatively and effectively influence their workforce policy. All of the previously mentioned laws are excellent examples of state legislatures in the driver's seat directing their state's workforce development journey.

1999 Enacted Legislation Regarding
The Federal Workforce Investment Act of 1998
as of July 1999

California SB 160	Funds earmarked to conform to data collection, reporting, and performance management requirements in WIA. Funds for local workforce investment boards (WIB) for transitioning to WIA
Florida SB 1566	Names one-stop career centers as the state's customer service delivery mechanism. Adds food stamp and WAGES/TANF programs to the required one-stop partners in WIA. Further defines the relationship between one-stops and their regional workforce development boards (RWDBs). Designates the state workforce development board (WDB) as the state's WIB, and the RWDBs as the local WIBs pursuant to WIA. Brings board membership composition in compliance with WIA, and directs the WDB to plan the incorporation of the new members. Requires the WDB to prepare a five-year plan (to include secondary vocational education), that will also fully integrate all federally mandated and optional partners in the second year of the plan. Orders the WDB to contract with an administrative entity for the allocation of WIA funds, including Rapid Response funds, to the RWDBs. Unless a RWDB obtains a waiver, at least 50 percent of pass through Adult/Dislocated WIA Title I funds must be used for ITAs. Tuition, fees, performance-based incentive awards, as well as other programs, qualify as an ITA expenditure. Ten percent of the WIA youth funds allocated to RWDBs must be used as performance payments for public schools' dropout prevention programs. Creates an Incumbent Worker Training Program, administered by a private entity, to provide grant funding for continuing education and training of incumbent employees. Five percent of the 15 percent of the WIA funds retained at the state level is dedicated to this program.
Arkansas HB 1074	Establishes state WIB, conforms with WIA membership roster - including one member each of House and Senate and one member each appointed by the chairs of the Women's Caucus and Black Caucus. Intent for the state WIB is clearly to foster coordination and efficiency. Has numerous provisions to keep the General Assembly informed of state WIB actions and recommendations. Includes career development system and youth programs in alignment. Gives a thorough listing of what should be in their state plan. Defines local workforce investment areas and WIBs. Includes sanctions for noncompliance at the local level.
Connecticut HB 6723	Amends state WIB to include legislators. Asks state WIB to provide the General Assembly with recommendations as to how to allocate WIA funds. Charges the state WIB with developing continuous improvement models and performance measures for the workforce development system.
Hawaii SB 1147	Changes title of HRIC to state WIB. Increases membership from 17 to 29 (includes legislators). Instructs the state WIB on coordinating, organizing and running the system, which includes: develop state plan, develop continuous improvement model, redefines SDA's based on WIA, redefines allocation formula based on WIA, and orders state performance measures.
Illinois SB 1117	Bill relates to the Dept. of Human Services. Only replaces the language of the Rehabilitation Act of 1973 with WIA.
Indiana HB 1652	Amends the state HRIC to conform to the WIA membership guidelines (includes legislators). Establishes the workforce investment system to coordinate state and local activities, reduce welfare dependency, enhance competitiveness, and encourage continuous improvement. Charges HRIC with developing the state plan to include secondary vocational education and one-stop partners' programs. Redefines SDA's pursuant to WIA. Outlines the WIA sub-state structure for Indiana. Creates Incumbent Worker Councils and Youth Councils within the local WIBs to develop an incumbent worker plan and youth plan to be incorporated into the regional plan to the state. Spells out how one-stop system will operate, as per WIA. Gives local WIBs and chief elected official planning, policy and oversight responsibilities for the one-stop system. Names the chief elected official as the grant recipient and can assign a fiscal agent but must retain liability.
Louisiana SB 354	Language Changes. JTPA to WIA, SDA to workforce investment area, and PIC to local WIB.
Minnesota SB 653	Only refers to data collection for WIA
New Mexico HB 9A	Reference that funds will come from WIA.
North Carolina HB 168	Establishes in statute state and local WIBs. Conforms to WIA membership and sub-state structure. A couple of provisions to keep the General Assembly informed of state WIB recommendations and state plan. Establishes Employment and Training Grant program to dole out federal funds to locals based on WIA funding formula. (Presumably so it will be in the Dept. of Commerce's budget for appropriation purposes.)
Oklahoma HB 2989	Resolution commending the work of current system and advising state and locals in their job training system to exercise extreme care in instituting any WIA changes.
Oregon HB 2989	Establishes a state WIB. Conforms to WIA membership and sub-state structure. A couple of provisions to keep the Legislative Assembly abreast of state WIB recommendation and state plan. Includes directives for continuous improvement, performance measures, etc. Allows one-stop services to include drug and alcohol rehab. Notes that any funds expended under sections 1-6 of WIA will be appropriated by the legislature.
Rhode Island HB 5781	Mentions the use of unemployment insurance wage data for performance measures under WIA.
Tennessee HB 1875	Creates the Department of Labor and Workforce Development from the Departments of Labor and of Employment Security with the intent to integrate, coordinate and simplify the workforce system. Lists various programs that will be a part of the new department, including WIA programs.
Texas HB 2641	Qualifies that the department must use disbursement guidelines under WIA to retain exemption status.
Texas HB 3431	Requires the state WIB to report to the legislature and to evaluate the workforce development system as a whole, rather than as individual programs.
Texas HB 3480	Clearly states that a community college representative should serve on the local WIBs. Provides that if this amendment conflicts with WIA, federal law will prevail.
Vermont HB 290	Amends HRIC statute. Adds legislators and mandates that business reps. make up 51% of membership. Gives the council the right to examine the revenues and expenditures of agencies. Empowers the council to hold agencies accountable for their annual objectives set by the council.
Wyoming SB 8	Allows the Department of Employment to submit their state unified plan to the federal government and approves the inclusion of vocational education programs in the plan (with the concurrent approval of the governor and state superintendent).

Prepared by Tracy Schmidt

NCSL Conducts More Workforce Inventories

The Employment and Training Project's efforts to assist state legislatures in reexamining their workforce development policies are going full steam ahead as three more states are slated for program inventories for '99-'00 fiscal year. They are Florida, North Dakota, and Puerto Rico. The project completed state inventories in Alaska, Georgia, New Hampshire, and Virginia this May. And in 1998 surveyed Kansas and Missouri.

All the states' agencies with workforce development programs provide NCSL with the critical data of program services and funding. The inventories highlight the complexities created by multiple programs serving multiple constituencies and can be used as a tool to help the state advance to a strategic planning phase. The inventories cast a broad net, to be sure to include all job training, workforce services, and career development programs for a thorough report. The project conducts these inventories at no cost to the state with funding from the U.S. Department of Labor.

If your legislative leadership is interested in a workforce development program inventory for your state, please contact Karen Johnson at (202) 624-5400 or at Karen.Johnson@ncsl.org.

Publications of Interest

NCSL recently published a legislator's overview to school-to-work. The overview includes statistics, typical questions a legislator may field on school-to-work, and a list of other national organizations that support the effort. For a copy of the overview, please send an e-mail to Steve Smith, or call him at (202) 624-5400.
To better understand the new federal Workforce Investment Act section-by-section you may want "A Guide to the Workforce Investment Act of 1998." The National Association of Private Industry Councils publishes the guide that includes a synopsis of every subtitle in easy-to-read English plus an annotated version of the complete law. A must have for any drafter dealing with WIA. You may order a copy for $40 by calling (202) 289-2846 or get the order form from NAPIC's web site.
The National Governors' Association recently published "A Comprehensive Look at State-Funded, Employer-Focused Job Training Programs." In addition to 47 state profiles of state-funded customized training programs, the report highlights those of California, Georgia, Iowa, Michigan, New Jersey, North Carolina, Rhode Island and Texas. The report costs $25 and can be ordered online at www.nga.org or by calling NGA's publications warehouse at (301) 498-3738.
Will WIA really help low income and dislocated workers earn a 'livable' wage? This question is probed in the John Hopkins University's Sar Levitan Center for Social Policy Studies' monograph "A Second Chance for the Fourth Chance, A Critique of the Workforce Investment Act of 1998." One chapter is dedicated to how states can try to overcome the inherent weaknesses in WIA to develop their own workforce investment system to pull these workers above the poverty line. Order a copy on-line at www.levitan.org or call (410) 516-7174.

Labor and Job Training

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 Karen Johnson at the above address or by e-mail at karen.johnson@ncsl.org.

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