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Maximizing Job Training Funds
- Requiring WIBs spend at least 50% of their WIA funds on job training
- Holding WIBs accountable for providing quality services
- Establishing eligibility for job-training funds
Workers in California face the toughest job crisis since the Great Depression. With declining State revenues and pressure on public resources, it is crucial that every dollar of federal workforce funds is invested in high quality employment services that connect workers to good jobs.
California receives about $500 million annually in federal Workforce Investment Act (WIA) funds. The majority of these funds go to 49 local Workforce Investment Boards (WIBs). Local WIBs set workforce policy for their jurisdictions and provide oversight of employment services.
Despite the need for targeted and effective training, the Employment Development Department data shows that we spend very little of our local
WIA funds on skills training. On average, local WIBs in California invest just 20% of their federal funds on training services. A third of the 49 WIBs spend less than 11% on training, and many invest nothing on training.
In effect, we have a federally funded job training system in California that places little or no emphasis on training. States like Florida, Illinois, Michigan, and Wisconsin have all adopted policies or regulations that help drive more local WIA funds toward training. Florida state law, for example, requires that local WIBs spend at least 50% of their WIA funds on training.
SB 776 (DeSaulnier) will require local WIBs to invest at least 50% of Adult and Dislocated Worker funds on quality training programs and services that support workers enrolled in skills training. It will also require local WIBs to spend at least 75% of funds on direct services.
In addition to increasing the funds dedicated to actual job training, we need accountability to make sure workers are benefiting from the program. Federal law grants Governors the authority to certify local WIBs every two years, but certification is based only on meeting the minimum federal requirements.
Federal performance measures are inadequate for ensuring that local WIA dollars provide quality services that lead workers to good jobs. The federal certification requirement also does not reflect state policy and standards.
SB 698 (Lieu) will create a high performance standard for local WIBs to allow the state to hold local WIBs accountable for providing quality services to California workers and employers.
Federal law also requires that training providers receiving local WIA funds be on the Eligible Training Provider List (ETPL). The ETPL was established to ensure that workers receive quality services and that training is relevant to jobs that are in demand in the area. Currently, each of California’s 49 local WIBs establishes its own requirements and standards for training provider eligibility. Standards for provider performance and outcomes are inconsistent and in many cases inadequate. It is difficult to ensure training provider quality or quality outcomes for training program participants.
AB 1115 (Lara) will require the California Workforce Investment Board to set minimum statewide standards for providers to be eligible for training dollars. It will also require training providers to submit performance and cost information.