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Background
In 1998, Congress passed the Workforce Investment Act (WIA) to reform,
consolidate, streamline, and better coordinate the nation’s job training
system. WIA consolidated and integrated employment and training services
at the local level into unified workforce development system. The Act
authorized the appropriation of funds from FY 1999-2003. Effective July 1,
2000, WIA repealed the Job Training Partnership Act (JTPA), and created
three funding streams, 1) Adult Employment and Training – ages18 or over;
2) Dislocated Workers; and 3) Youth Development Services. These services
are directed by local Workforce Investment Boards (WIBs).
Youth Development Services
WIA authorizes funds for services for youth (14-21 years of age) who face
barriers to school completion or employment. Youth served are prepared for
postsecondary educational opportunities or employment, and must receive at
least one year of guidance and counseling, and follow-up services. In
addition, WIA requires individual skills and service needs assessment,
service strategy availability of basic, occupational, and work maturity
skills training and work experience, and supportive services.
By combining the Summer Youth Employment and Training Program and JTPA’s
year-round youth program, WIA moved from a system mostly characterized by
one-time and short-term interventions to a systematic offering of services
connected to individual goals for youth. The Act requires that youth
services should incorporate ten core elements including mentoring,
community service, leadership development, peer-centered activities, and
long-term follow-up and supports.
While 95 percent of the funds must be used to serve low-income youth, 5
percent may be used to serve youth who do not meet the income requirement,
yet face the same
barriers to employment or are 1) at least one grade level behind in
school; 2) are disabled or have a learning disability; or 3) face a
serious barrier to employment as identified by the local WIB.
Barriers
1. School dropout
2. Basic literacy skills deficiency
3. Homeless, runaway, or foster child
4. Pregnant of a parent
5. An offender
6. Need help completing an education program or securing and holding a
job
Funding
Funding is allocated through a formula (based on youth population,
poverty, and unemployment rates) to states, which in turn use the same
formula to distribute funds to local WIBS. Of the Youth Formula funds,
85 percent is allocated to local areas, while the remaining 15 percent
are reserved for statewide activities. The 15 percent state set-aside
funds may be used to fund state activities for youth, adults, or
dislocated workers, or (vice versa, meaning 15 percent set-asides funds
from adult services or dislocated workers can be used for youth state
activities.)
The Act also requires 30 percent of the WIA youth formula funds to be
spent on out-of-school youth. The WIA definition of out-of-school youth
includes dropouts and youth who have graduated from high school or hold
a GED but are deficient in basic skills, unemployed or underemployed.
WIA prohibits spending the out-of-school funds on youth who are enrolled
in any school or alternative educational programs at the time or
registration, although the youth may be placed in an educational program
(such as a GED program or alternative school) as part of their service
strategy.
Youth Opportunity (YO!) Grant Program
WIA also authorizes $250 million for the Youth Opportunity Program, a
competitive grant program (currently in 36 communities, 24 urban + 6
rural + 6 Native American). The Act stipulates that, up to $250 million
of appropriated WIA youth funds in excess of $1 billion are to be used
to fund YO, which targets and concentrates its funds in high-poverty
communities (Empowerment Zones and Enterprise Communities). If a youth
lives in a targeted community, the youth is eligible to receive YO
services.
Accountability
There are different core indicators used to measure services for younger
(age 14-18) and older (ages 19-21) youth. The Secretary of Labor is
authorized to negotiate the expected performance levels for each
indicator with each state. States then negotiate expected performance
levels with each local area. Negotiations are to consider special
economic an demographic factors, while technical assistance, sanctions,
and federal incentive funds are tied to whether states meet the expected
levels of performance.
Younger Youth Indicators
- Basic skills and occupational skills (as appropriate) attainment;
- High school diplomas;
- Placement and retention in postsecondary education, advanced training,
or employment; and
- Customer satisfaction for both participating youth and their
employers.
Older Youth Indicators
- Entry into subsidized employment;
- Retention in unsubsidized employment 6 months after entry into the
employment;
- Earning received in unsubsidized employment after entry in the
employment
- Attainment of recognized credential relating to the achievement of
educational skills, which may include attainment of a secondary school
diploma or its recognized equivalent, or occupational skills; and
- Customer satisfaction for both participating youth and their
employers.
Local Governance
Local WIBs, in partnership with local elected officials, are responsible
for planning and overseeing the local program. The WIB is also
responsible for developing the local plan for submission to the Governor
for approval; designating local “One-Stop” operators, service providers;
negotiating local performance measures; and assisting in developing an
employment statistics program. WIBs must have a majority of business
representatives and include representatives of education providers,
labor organizations, community-based organizations, economic development
agencies, and each of the “One-Stop” partners. The involvement of other
representatives is left to the discretion of local elected officials.
WIA also requires the establishment of local Youth Councils as a
subgroup of the WIB to develop parts of the local plan for youth,
recommend services providers for youth programs, and coordinate area
youth activities. Required members of Youth Councils are local WIB
members, representatives of youth service agencies (including juvenile
justice and local law enforcement agencies), representatives of local
public housing authorities, parents of eligible youth, individuals
(including former participants) and representatives of organizations
that have experience relating to youth activities; and representatives
of the Job Corps.
One Stops
WIA promotes the establishment of a One-Stop service delivery system
that connects the broad range of available services to youth and adults
in a local area and often serves as a place for youth to begin to
navigate their way into the workforce. One-stops conduct individual
assessments and strategy with the individuals. Eligible youth may access
various one-stops and after they reach 18, may participate in adult
services as well as youth programs, depending on the youth’s needs
assessment.
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