The Workforce Investment Act and the
One-Stop Delivery System
David H. Bradley
Specialist in Labor Economics
April 5, 2013
Congressional Research Service
7-5700
www.crs.gov
R41135
CRS Report for Congress
Pr
epared for Members and Committees of Congress
The Workforce Investment Act and the One-Stop Delivery System
Summary
The Workforce Investment Act of 1998 (WIA; P.L. 105-220), which succeeded the Job Training
Partnership Act (P.L. 97-300) as the main federal workforce development legislation, was enacted
to bring about increased coordination among federal workforce development and related
programs. WIA authorized the appropriation of “such sums as may be necessary” for each of
FY1999 through FY2003 to carry out the programs and activities authorized in the legislation.
Authorization of appropriations under WIA expired in FY2003 but has been extended annually
through the Departments of Labor, Health and Human Services, and Education and Related
Agencies Appropriations Act (Labor-HHS-ED). Reauthorization legislation was considered in the
108th and 109th Congresses. In both the 108th and 109th Congresses, the House and the Senate
passed different versions of legislation that would have reauthorized WIA. However, in neither
instance did the two chambers reconcile the differences between the bills they had passed. In the
112th Congress, the House Committee on Education and the Workforce ordered reported the
Workforce Investment Improvement Act of 2012 (H.R. 4297) but it was not taken to the House
floor.
In the 113th Congress, the House Committee on Education and the Workforce has ordered
reported H.R. 803—the Supporting Knowledge and Investing in Lifelong Skills Act (SKILLS
Act). This bill was introduced on February 25, 2013, by Representative Virginia Foxx of North
Carolina, the chair of the Subcommittee on Higher Education and Workforce Training. A
legislative hearing on H.R. 803 was held before the full Committee on Education and the
Workforce on February 26, 2013. On March 6, 2013, the committee, after considering four
amendments to H.R. 803, ordered the bill reported by a vote of 23 to 0. H.R. 803 was debated in
the House on March 15, 2013, and passed by a vote of 215-202.
WIA includes five titles: Workforce Investment Systems (Title I), Adult Education and Literacy
(Title II), Workforce Investment-Related Activities (Title III), Rehabilitation Act Amendments of
1998 (Title IV), and General Provisions (Title V). Title I, whose programs are primarily
administered through the Employment and Training Administration (DOLETA) of the U.S.
Department of Labor (DOL), includes three state formula grant programs, multiple national
programs, Job Corps, and demonstration programs. In addition, Title I authorizes the
establishment of a One-Stop delivery system through which state and local WIA training and
employment activities are provided and through which certain partner programs must be
coordinated. Title II, whose programs are administered by the U.S. Department of Education
(ED), includes a state formula grant program and National Leadership activities. Title III of WIA
amends the Wagner-Peyser Act of 1933, and Title IV amends the Rehabilitation Act of 1973. Title
V includes provisions for the administration of WIA.
The focus of this report is on Titles I and II of WIA, both of which authorize programs to provide
job search, education, and training activities for individuals seeking to gain or improve their
employment prospects. The programs and services in these two titles are covered in detail in this
report. Title III of WIA amends the Wagner-Peyser Act of 1933, which establishes the
Employment Service (ES), to make the ES an integral part of the One-Stop system created by
WIA. Because the ES is a central part of the One-Stop system, it is discussed briefly in this report
even though it is authorized by separate legislation (Wagner-Peyser Act of 1933).
Congressional Research Service
The Workforce Investment Act and the One-Stop Delivery System
Contents
Introduction ...................................................................................................................................... 1
Title I—Workforce Investment Systems .......................................................................................... 2
Brief History of Federal Workforce Development Programs .................................................... 2
Overview of WIA Title I Programs ........................................................................................... 3
Characteristics of WIA Title I Programs ................................................................................... 4
The One-Stop Delivery System and Workforce Investment Boards ......................................... 5
One-Stop Delivery System .................................................................................................. 5
The Employment Service .................................................................................................... 8
Workforce Investment Boards ........................................................................................... 10
State Formula Grant Programs....................................................................................................... 12
Adult and Dislocated Worker Activities .................................................................................. 12
Overview and Purpose ...................................................................................................... 12
Structure—Statewide Activities ........................................................................................ 13
Structure—Local Activities ............................................................................................... 15
Youth Activities ....................................................................................................................... 18
Overview and Purpose ...................................................................................................... 18
Structure ............................................................................................................................ 18
Services ............................................................................................................................. 19
Job Corps ................................................................................................................................. 20
Overview and Purpose ...................................................................................................... 20
Structure ............................................................................................................................ 20
Services ............................................................................................................................. 21
National Grant Programs ......................................................................................................... 21
Native Americans Programs (Section 166) ....................................................................... 21
Migrant and Seasonal Farmworker Programs (Section 167) ............................................ 22
Veterans’ Workforce Investment Program (Section 168) .................................................. 22
Demonstration, Pilot, Multiservice, Research, and Multistate Projects
(Section 171) .................................................................................................................. 22
National Emergency Grants (Section 173) ........................................................................ 23
YouthBuild Program (Section 173A) ................................................................................ 23
Funding for Title I Programs and Activities ............................................................................ 24
Allocation Formulas .......................................................................................................... 24
Performance Accountability in Title I ..................................................................................... 27
Negotiating Performance Levels Under WIA ......................................................................... 31
Common Measures and Waivers ............................................................................................. 33
Title II—Adult Education and Literacy ......................................................................................... 33
Overview ................................................................................................................................. 33
Components of AEFLA ........................................................................................................... 34
National Leadership Activities .......................................................................................... 34
WIA Title V Incentive Grants............................................................................................ 35
State Grants ....................................................................................................................... 35
Performance Accountability .................................................................................................... 36
Congressional Research Service
The Workforce Investment Act and the One-Stop Delivery System
Tables
Table 1. Required Partners in One-Stop Centers ............................................................................. 6
Table 2. Services Provided to Adult and Dislocated Workers under Title I of WIA ...................... 15
Table 3. Performance Measures for WIA Title I Activities ............................................................ 29
Table B-1. WIA Title I, Appropriations for FY2009 to FY2012 ................................................... 40
Table B-2. WIA Title I, Appropriations for FY2000 to FY2008 ................................................... 42
Table B-3. WIA Title II, Adult Education and Family Literacy Act, Appropriations for
FY2009 to FY2012 ..................................................................................................................... 44
Table B-4. WIA Title II, Adult Education and Family Literacy Act, Appropriations for
FY1999 to FY2008 ..................................................................................................................... 45
Table B-5. Wagner-Peyser Act, U.S. Employment Service Funding, FY2001-FY2012 ............... 46
Appendixes
Appendix A. Glossary of Selected WIA Terms ............................................................................. 38
Appendix B. Funding for WIA Titles I and II ................................................................................ 40
Contacts
Author Contact Information........................................................................................................... 47
Acknowledgments ......................................................................................................................... 47
Congressional Research Service
The Workforce Investment Act and the One-Stop Delivery System
Introduction
The Workforce Investment Act of 1998 (WIA; P.L. 105-220) is the primary federal program that
supports workforce development. WIA includes five titles:
• Title I—Workforce Investment Systems—provides job training and related
services to unemployed or underemployed individuals;
• Title II—Adult Education and Literacy—provides education services to assist
adults in improving their literacy and completing secondary education;
• Title III—Workforce Investment-Related Activities—amends the Wagner-Peyser
Act of 1933 to integrate the U.S. Employment Service (ES) into the One-Stop
system established by WIA;
• Title IV—Rehabilitation Act Amendments of 1998—amends the Rehabilitation
Act of 1973, which provides vocational rehabilitation services to individuals with
disabilities, to integrate vocational rehabilitation into the One-Stop system; and
• Title V—General Provisions—specifies components of State Unified Plans and
provisions for state incentive grants.
Workforce development programs provide a combination of education and training services to
prepare individuals for work and to help them improve their prospects in the labor market. In the
broadest sense, workforce development includes secondary and postsecondary education, on-the-
job and employer-provided training, and the publicly funded system of job training and
employment services. Most workforce development occurs in the workplace during the course of
doing business. The federal government provides workforce development activities through
WIA’s programs and other programs designed to increase the employment and earnings of
workers. Workforce development may include activities such as job search assistance, career
counseling, occupational skill training, classroom training, or on-the-job training.1
The focus of this report is on Titles I and II of WIA, both of which authorize programs to provide
job search, education, and training activities for individuals seeking to gain or improve their
employment prospects. The programs and services in these two titles are covered in detail in this
report. Title III of WIA amends the Wagner-Peyser Act of 1933, which establishes the
Employment Service (ES), to make the ES an integral part of the One-Stop system created by
1 It is possible to include numerous programs under the general label of “workforce development” or “job training.” For
example, a GAO study reported that there are “44 federal programs that provided a range of employment and training
services” with a combined appropriation of $30 billion (in FY2002). See U.S. General Accounting Office, Multiple
Employment and Training Programs: Funding and Performance Measures for Major Programs, GAO-03-589, April
2003, p. 7, http://www.gao.gov/new.items/d03589.pdf. For many of the programs in the GAO study (e.g., Temporary
Assistance for Needy Families, Food Stamps), however, the primary focus and the vast majority of funding are on
activities other than training and employment. Likewise, Workforce Alliance identified 16 programs in six federal
agencies as “key workforce development programs.” See Gwen Rubinstein and Andrea Mayo, Training Policy In
Brief: An Overview of Federal Workforce Development Policies, The Workforce Alliance, 2nd Edition, Washington,
DC, 2007. Although The Workforce Alliance (now known as the National Skills Coalition) report identified fewer
workforce development programs than the GAO study, it also includes several programs (e.g., Pell Grants) that are
primarily part of the education system, as opposed to the workforce development system.
Congressional Research Service
1
The Workforce Investment Act and the One-Stop Delivery System
WIA. Because the ES is a critical part of the One-Stop system, it is discussed briefly in this report
even though it is authorized by separate legislation (Wagner-Peyser Act of 1933).2
The majority of this report addresses the provisions of WIA Title I. Following a brief history of
federal workforce development programs, there is a discussion of the provisions and
characteristics of WIA Title I programs and services. Next, there is a description of the One-Stop
delivery system and Workforce Investment Boards (WIBs). This section includes an overview of
the Employment Service, whose authorizing legislation (Wagner-Peyser Act of 1933) was
amended by Title III of WIA. Following that, the report covers the services provided by the state
formula grant programs and the national programs authorized under Title I of WIA. The section
on Title I concludes with a discussion of funding and performance accountability. The report then
provides a description of the services, funding, and performance accountability provisions of
WIA Title II. Appendix A provides a glossary of selected key terms in WIA. Appendix B
provides an appropriations history for programs authorized under Titles I and II of WIA and
under the Wagner-Peyser Act of 1933.
Title I—Workforce Investment Systems
Title I of WIA provides job training and related services to unemployed and underemployed
individuals. Title I programs are administered by the U.S. Department of Labor (DOL), primarily
through its Employment and Training Administration (DOLETA). Although WIA authorized the
appropriations of funds for WIA programs through September 30, 2003, WIA programs have
continued to be funded through annual appropriations.
In FY2012, programs and activities authorized under Title I of WIA are funded at $4.9 billion,
including $2.6 billion for state formula grants for youth, adult, and dislocated worker training and
employment activities.
Brief History of Federal Workforce Development Programs
The first major federal funding for training programs in the postwar period started with the
enactment of the Manpower Development Training Act (MDTA) in 1962, although federal
“employment policy,” broadly defined, had its origin in New Deal era programs such as
Unemployment Insurance (UI) and public works employment. Starting with MDTA, there have
been four main federal workforce development programs.3
2 Title IV of WIA amends Title I of the Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.) to create linkages between
state vocational rehabilitation services and workforce investment activities carried out under Title I of WIA. Title I of
the Rehabilitation Act of 1973 authorizes the federal government to make grants to states and territories to provide
vocational rehabilitation services to persons who have disabilities and who require vocational rehabilitation services to
become employed, remain employed, or return to previous employment. For additional information on vocational
rehabilitation state grants, see CRS Report RL34017, Vocational Rehabilitation Grants to States and Territories:
Overview and Analysis of the Allotment Formula, by Umar Moulta-Ali.
3 Except as noted, the material in this section draws on Christopher J. O'Leary, Robert A. Straits, and Stephen A.
Wandner, “U.S. Job Training: Types, Participants, and History,” in Job Training Policy in the United States
(Kalamazoo, MI: W.E. Upjohn Institute for Employment Research, 2004).
Congressional Research Service
2
The Workforce Investment Act and the One-Stop Delivery System
Enacted in 1962, the MDTA (P.L. 87-415) provided federal funding to retrain workers displaced
because of technological change. Later in MDTA’s existence, the majority of funding went to
classroom and on-the-job training (OJT) that was targeted to low-income individuals and welfare
recipients. Funding from the MDTA was allocated by formula to local communities based on
factors of population and poverty. Grants under MDTA were administered through regional DOL
offices and went directly to local service providers.4
The Comprehensive Employment and Training Act (CETA; P.L. 93-203), enacted in 1973, made
substantial changes to federal workforce development programs. CETA transferred more
decision-making authority away from the federal government and toward local governments.
Specifically, CETA provided funding to about 470 “prime sponsors” (sub-state political entities
such as city or county governments, consortia of governments, etc.) to administer and monitor job
training activities. Services under CETA—which included on-the-job training, classroom training,
and public service employment (PSE)—were targeted to low-income populations, welfare
recipients, and disadvantaged youth. At its peak in 1978, the PSE component of CETA supported
about 755,000 jobs and accounted for nearly 60% of the CETA budget.5 CETA was amended in
1978 in part to create private industry councils (PIC) to expand the role of the private sector in
developing, implementing, and evaluating CETA programs. The composition of PICs included
representatives of business, labor, education, and other groups.
In 1982, changes to federal workforce development policy were made by enactment of the Job
Training Partnership Act (JTPA, P.L. 97-300). Major changes implemented under JTPA, which
provided classroom and on-the-job training to low-income and dislocated workers, include
service delivery at the level of 640 “service delivery areas,” federal funding allocation first to
state governors and then to PICs in each of the service delivery areas (unlike CETA, which
provided allocations directly to prime sponsors), prohibition of the public service employment
component, and a new emphasis on targeted job training and reemployment. With a new
emphasis on training (rather than public employment), JTPA required that at least 70% of funding
for service delivery areas be used for training. Although this percentage was dropped to 50% in
the 1992 amendments to JTPA, the emphasis on training remained.
Overview of WIA Title I Programs
Title I authorizes several state and national programs to provide employment and training services
and establishes the One-Stop system as a means of delivering and coordinating workforce
development activities.
Highlights of WIA Title I programs include the following:
• Administration by the U.S. Department of Labor (DOL), primarily through its
Employment and Training Administration (DOLETA).
4 Although not considered one of the four main job training programs, Job Corps was established during this period.
The Economic Opportunity Act of 1964 created the Job Corps program, which is a largely residential educational and
job training program for disadvantaged youth.
5 The growth in employment supported by PSE reflects changes in eligibility criteria that expanded the eligible
population, as amendments were made to CETA to make PSE more of a countercyclical program. Robert F. Cook,
Charles F. Adams, Jr., and V. Lane Rawlins, “The Public Service Employment Program,” in Public Service
Employment: The Experience of a Decade (Kalamazoo, MI: W.E. Upjohn Institute for Employment Research, 1985), p.
12 and Gordon Lafer, The Job Training Charade (Ithaca, NY: Cornell University Press, 2002), p. 163.
Congressional Research Service
3
The Workforce Investment Act and the One-Stop Delivery System
• Three employment and training programs—Youth Activities, Adult Activities,
and Dislocated Worker Activities—funded by federal-to-state formula grants that
are based on measures of states’ unemployment and poverty.6
• Six national programs, including Job Corps, the Native American Program, the
Migrant and Seasonal Farmworker Program, the Veterans’ Workforce Investment
Program, Youth Opportunity Grants, and YouthBuild.7
• Demonstration and pilot projects that currently include programs such as the
Reintegration of Ex-Offenders program, the Career Pathways Innovation Fund,
and the Green Jobs Innovation Fund program.
• A system of “One-Stop” centers through which state and local WIA training and
employment activities are provided and in which certain partner programs must
be co-located.
• Workforce Investment Boards (WIBs) responsible for policy and oversight of state
and local workforce investment activities.
• Local discretion in the design of services for WIA participants.
• Universal access to employment and training services for WIA participants.
• An accountability system based on core indicators with state-adjusted levels of
performance resulting from negotiations between each state and the Secretary of
Labor.
• Operation on a July 1-June 30 program year.
Characteristics of WIA Title I Programs
This report provides details of WIA Title I state formula program structure, services, allocation
formulas, and performance accountability. In addition, it provides a program overview for
national grant programs. It is worth noting at this point, however, the elements of WIA that
characterize it as a workforce development system.
• WIA is designed to be a demand driven workforce development system. This
system is supposed to provide employment and training services that are
responsive to the demands of local area employers. The demand driven nature of
WIA is manifested in elements such as Workforce Investment Boards (WIBs), a
majority of whose members must be representatives of business.
• WIA provides local control to officials administering programs under WIA.
Under the state formula grant portion of WIA, which accounts for nearly 60% of
total WIA Title I funding, the majority of funds are allocated to local WIBs (after
initial allocation from DOLETA to the states) that are authorized to determine the
6 Note: “Youth” programs in Title I include Youth Activities, Job Corps, YouthBuild, pilot programs, and Youth
Opportunity Grants. These employment service and job training programs for youth are discussed briefly in this report
but are covered in greater detail in CRS Report R40929, Vulnerable Youth: Employment and Job Training Programs,
by Adrienne L. Fernandes-Alcantara.
7 The YouthBuild program was formerly in the Department of Housing and Urban Development (HUD) but was made
a part of WIA on September 22, 2006, by the YouthBuild Transfer Act (P.L. 109-281). Youth Opportunity Grants were
last funded in FY2003 and supported program operations through FY2005.
Congressional Research Service
4
The Workforce Investment Act and the One-Stop Delivery System
mix of service provision, eligible providers, and types of training programs,
among other decisions.8
• The WIA system provides central points of service by its system of One-Stop
centers. The concept of a One-Stop center is to provide a single location for
individuals seeking employment and training services, thus making the process
of locating and accessing employment services more efficient and seamless. WIA
requires certain programs to be “partners” in the One-Stop center, either by
physical collocation or other accessible arrangements.
• Unlike its predecessor, the Job Training Partnership Act (JTPA), WIA provides
universal access to its services. Whereas JTPA provided training services to
individuals who were “economically disadvantaged” or dislocated, WIA provides
core services (discussed below) to any individual regardless of age or
employment status.
• WIA is oriented toward a work first approach to workforce development. That is,
placement in employment is the first goal of the services provided under Title I of
WIA. To this end, WIA established a “sequence of services” (discussed below)
that requires individuals to receive core and intensive services before training is
considered.9 Similarly, there is no minimum established in WIA on the amount
states and local WIBs must spend for training services; JTPA, on the other hand,
required that a fixed percentage of funding be spent on training services.
• WIA provides consumer choice to participants. As explained later in this report,
participants determined to be eligible for training services are provided with
Individual Training Accounts (ITAs), with which they may choose a type of
training and the particular provider from which to receive training.
The One-Stop Delivery System and Workforce Investment Boards
One-Stop Delivery System
Because the initial point of contact for WIA participants is frequently at a One-Stop center, it is
worthwhile to explain briefly the “One-Stop delivery system” established by WIA before
describing the services available at and accessible through the One-Stop centers.10
One innovation of WIA was the establishment of One-Stop centers to provide access to
employment and training services. WIA requires each state to establish a One-Stop delivery
system to:
8 The governor of each state determines the list of eligible providers; however, these decisions are supposed to be made
with the input of local officials.
9 To clarify, WIA does not specify an amount of time one must spend or the number of attempts one must make to gain
employment before moving to the next level in the sequence of services. In a 2001 study, the GAO noted that “WIA
allowed local discretion regarding how individuals would move from one level to the next among those three levels
[core, intensive, and training] of services … and the determination that an individual needs intensive and/or training
services can be made without regard to how long the individual has been receiving core services.” See U.S. General
Accounting Office, Workforce Investment Act: Better Guidance Needed to Address Concerns Over New Requirements,
GAO-02-72, October 2001, p. 10, http://www.gao.gov/new.items/d0272.pdf.
10 The One-Stop delivery system was established by Section 134(c) of WIA.
Congressional Research Service
5
The Workforce Investment Act and the One-Stop Delivery System
• provide “core” services and access to “intensive” and training services (see
“Local Activities” in the next section for a description of the three levels of
services provided for in Title I);
• provide access to programs and activities carried out by One-Stop partners (see
below); and
• provide access to all labor market information, job search, placement,
recruitment, and labor exchange services authorized under the Wagner-Peyser
Act.11
Each local workforce investment area in a state is required to have at least one physical One-Stop
center in which the aforementioned programs and services are accessible.12 Services may be
collocated or available through a network of affiliated sites or One-Stop partners linked
electronically.
As noted, one of the characteristics of the WIA One-Stop system is the establishment of a central
point of service for those seeking employment, training, and related services. To this end, WIA
requires that certain partner programs provide access to core services in the One-Stop system and
allows additional programs to operate in the One-Stop system. The required partner programs are
listed in Table 1.
Table 1. Required Partners in One-Stop Centers
Program
Program Authorization
Federal Agency
WIA Adult Activities
WIA—Title I
Department of Labor
WIA Dislocated Worker
WIA—Title I
Department of Labor
Activities
WIA Youth Activities
WIA—Title I
Department of Labor
WIA Job Corps
WIA—Title I
Department of Labor
WIA Native American
WIA—Title I
Department of Labor
WIA Migrant and Seasonal
WIA—Title I
Department of Labor
Farmworker
Veterans’ Workforce Investment
WIA—Title I
Department of Labor
Employment Service
Wagner-Peyser Act of 1933
Department of Labor
(29 U.S.C. 49 et seq.)
Adult Education and Literacy
WIA—Title II
Department of Education
Vocational Rehabilitation
Rehabilitation Act of 1973
Department of Education
(29 U.S.C. 720 et seq.)
Welfare-to-Work Grants
Social Security Act
Department of Health & Human
(42 U.S.C. 603(a)(5))
Services
11 Enacted in 1933, the Wagner-Peyser Act funded the transformation of state and local employment service offices
into a unified national public labor exchange.
12 A “local workforce investment area” is defined in Section 116 of WIA. These areas are designated by governors and
are based on factors such as consistency with labor market areas and availability of educational institutions. See
Appendix A for a full definition.
Congressional Research Service
6
The Workforce Investment Act and the One-Stop Delivery System
Program
Program Authorization
Federal Agency
Senior Community Service
Older Americans Act of 1965
Department of Labor
Employment
(42 U.S.C. 3056 et seq.)
Postsecondary Vocational
Carl D. Perkins Vocational and
Department of Education
Education
Applied Technology Education Act of
2006 (20 U.S.C. 2301 et seq.)
Trade Adjustment Assistance
Trade Act of 1974
Department of Labor
(19 U.S.C. 2271 et seq.)
Veterans’ Employment/
38 U.S.C. Chapter 41
Department of Labor
Disabled Veterans
Employment and Training
Community Services Block Grant Act
Department of Health &
Activities carried out under the
(42 U.S.C. 9901 et seq.)
Human Services
Community Services Block Grant
Employment and Training
Department of Housing and
Activities carried out by the
Urban Development
Department of Housing and
Urban Development
State Unemployment
Social Security Act of 1935 (Titles III,
Department of Labor
Compensation
IX, and XII) and Federal
Unemployment Tax Act 1939
Source: P.L. 105-220 and Department of Labor, Employment and Training Administration, “Workforce
Investment Act; Final Rules,” 65 Federal Register 49399, August 11, 2000.
Notes: The list of required partners, including references to the authorizing statutes for each program, is in
Section 121(b)(1)(B) of WIA. There were 18 required partners specified in the legislation. The Welfare to Work
program ended September 30, 2004. In addition, when WIA was first authorized, HUD was responsible for the
administration of the YouthBuild employment and training program. In 2006, YouthBuild was transferred to the
Department of Labor. Today, HUD does not administer any employment and training programs. However, HUD
programs do feature employment and training related requirements, particularly the Section 3 Economic
Opportunities requirement (12 USC 1701u; 24 CFR 135). Under the Section 3 requirement, certain recipients of
HUD funding are required to provide employment and training opportunities to residents of HUD-assisted
housing and other low-income members of the surrounding community. For more information about Section 3,
see http://www.hud.gov/offices/fheo/section3/section3.cfm.
In addition to the required partner programs listed in Table 1, WIA specifies that One-Stop
centers may incorporate other partner programs, including
• programs for recipients of Temporary Assistance for Needy Families (TANF)
authorized under the Social Security Act;
• any employment and training activities required of recipients under the
Supplemental Nutrition Assistance Program (the SNAP, formerly known as the
Food Stamp program) and work programs for those recipients who are able-
bodied adults without dependents;
• programs authorized under the National and Community Service Act of 1990
(e.g., AmeriCorps); and
• other appropriate government or private-sector programs.
The local WIB must enter into a memorandum of understanding (MOU) with all One-Stop
partners that describes the operation of the One-Stop delivery system in the local area.
Specifically, the MOU must enumerate the services to be provided, specify the division of
Congressional Research Service
7
The Workforce Investment Act and the One-Stop Delivery System
operating costs among partners, describe methods of referral of individuals to partner programs,
and indicate the duration of the memorandum and the procedures to amend the memorandum.13
The Employment Service
The Employment Service, which is authorized by the Wagner-Peyser Act of 1933 (29 U.S.C. 49
et seq.) is the central component of most states’ One-Stop delivery systems, as ES services are
universally accessible to job seekers and employers and ES offices may not exist outside of the
One-Stop delivery system.14 Although the ES is one of 18 required partners in the One-Stop
delivery system, its central mission—to facilitate the match between individuals seeking work
and employers seeking workers—makes it critical to the functioning of the workforce
development system under WIA.15
Title III of WIA amends the Wagner-Peyser Act to require states to deliver employment services
through the One-Stop system and to add Section 15 (“Employment Statistics”) to the Wagner-
Peyser Act. Section 15 requires the Secretary of Labor to oversee the development, maintenance,
and continuous improvement of a nationwide employment statistics system.
The two major categories of activities performed by the ES are the administration of State Grants
and National Activities.16 Services provided by the ES State Grants include
• labor exchange services (e.g., core and intensive employment services, job search
and placement assistance, labor market information);
• evaluation of programs;
• recruitment and technical services for employers; and
• work tests for the state unemployment compensation system.
As noted, WIA amended the Wagner-Peyser Act to make the ES a central part of the workforce
development system under WIA. To this end, one of the key functions played by the ES is to
deliver many of the “core” services that form what is known as the “sequential service strategy”
of WIA. That is, Wagner-Peyser Act-funded ES services are available at all comprehensive One-
Stop centers and many affiliated sites. The ES staff often are the first to assist individuals seeking
13 The division of infrastructure costs has been a source of some problems in the operation of One-Stop centers and has
created a reliance on one or two programs for the majority of funding for these costs. See U.S. Government
Accountability Office, Workforce Development: Community Colleges and One-Stop Centers Collaborate to Meet 21st
Century Workforce Needs, GAO-08-547, May 1, 2008, http://www.gao.gov/new.items/d08547.pdf; and U.S.
Government Accountability Office, Workforce Investment Act: One-Stop System Infrastructure Continues to Evolve,
but Labor Should Take Action to Require That All Employment Service Offices Are Part of the System, GAO-07-1096,
September 2007, http://www.gao.gov/new.items/d071096.pdf.
14 An ES office may operate an affiliated site outside of the One-Stop center or be linked to the local One-Stop
electronically.
15 For additional information on the Employment Service, see CRS Report RL30248, The Employment Service: The
Federal-State Public Labor Exchange System.
16 ES National Activities include the Work Opportunities Tax Credit (WOTC), Technical Assistance and Training, and
State Workforce Agencies Retirement System payments. These programs are not discussed in this report because it is
the ES State Grants that provide the majority of funding and the types of services most relevant to the workforce
development system.
Congressional Research Service
8
The Workforce Investment Act and the One-Stop Delivery System
employment assistance and refer individuals to other programs in the One-Stop system of
partners.17 States provide labor exchange services through three tiers of service delivery:18
• Self-Service. These services, which are typically electronic databases of job
openings, are accessed without staff assistance. Not only are these services
available to job seekers and employers without ES staff assistance, but typically
customers can access these electronic resources away from the local One-Stop
and outside normal business hours (e.g., via the Internet);
• Facilitated Self-Help. Resources of this type are typically available in local One-
Stop offices and include access to self-service tools (e.g., computers, resume-
writing software, fax machines, photocopiers, and Internet-based tools). The
resource room staff interacts with the customers to facilitate usage of the
resources.
• Staff-Assisted Service. These services are provided to customers both one-on-one
and in groups. One-on-one services for job seekers often include assessment,
career counseling, development of an individual service plan, and intensive job
search assistance. One-on-one services for employers may include taking a job
order or offering advice on how to increase job seeker interest in a job opening.
Group services for job seekers include orientation, job clubs, and workshops on
such topics as resume preparation, job search strategies, and interviewing. Group
services for employers may include workshops on such topics as state UI laws or
use of labor market information. Other staff-assisted services that benefit both
job seekers and employers include screening and referring job seekers to job
openings. Staff-assisted services must be provided in at least one physical
location in each workforce investment area.
Programs authorized under Title I of WIA have performance accountability requirements to
measure the employment and wage outcomes for participants. Similar to the Title I programs, the
ES uses three measures of performance: entered employment, employment retention, and average
earnings.19
The vast majority of funds (97%) for Employment Service activities are allocated to states on the
basis of each state’s relative share of the following two factors: civilian labor force (CLF) and
total unemployment.20 Specifically, two-thirds of the ES state funding is allocated on the basis of
the relative share of CLF and one-third on the basis of the relative share of total unemployment.
17 State merit-staff employees typically deliver ES services in a One-Stop. Staff providing other services at One-Stop
centers are not required to be public employees. In the late 1990s, the DOL granted authority to Colorado,
Massachusetts, and Michigan to run demonstration projects with alternative service delivery. Although there has been
disagreement over whether the Wagner-Peyser Act requires state merit staffing to provide ES services, a U.S. District
Court decision in 1998 (State of Michigan v. Alexis M. Herman, 5:98-CV-16 U.S. District Court (W.D. Mich 1998))
held that it was a permissible interpretation by DOL to require such service delivery.
18 Core and intensive services defined in WIA Section 134(d)(2) and (3) can be delivered through any of the three
methods described here.
19 For additional detail on Wagner-Peyser Act performance measures, see Brent R. Orrell, Training and Employment
Guidance Letter, U.S. Department of Labor, Employment and Training Administration, No. 9-08, Washington, DC,
January 14, 2009, http://wdr.doleta.gov/directives/attach/TEGL/TEGL07-08.pdf.
20 ES appropriations fund state allotments (discussed above) and National Activities. Because the focus of this report is
on workforce development and the One-Stop system, only the state allotment formula funding is covered in this
section.
Congressional Research Service
9
The Workforce Investment Act and the One-Stop Delivery System
The remaining 3% of total funding is distributed to states with civilian labor forces below 1
million and to states that need additional resources to carry out ES activities.21
Key features of the state formula allocation for Wagner-Peyser Act state allotments include the
following:
• A reservation for Guam and the Virgin Islands of an amount equal to the
allotment percentage each received in FY1983 (this is reserved prior to state
allocations).
• Provisions for minimum allotments; a state cannot receive less than 0.28% of the
total allocation to all states in a given program year.
• “Hold harmless” provisions such that individual states will not experience large
swings in year-to-year funding for this stream. Specifically, a state may not
receive less than 90% of its relative share of prior year funding.
Of the total allocation to states, 90% may be used for labor exchange services such as job search
and placement assistance, labor market information, and referral to employers. The remaining
10% (Governor’s Reserve) of the state allocation may be used for activities such as performance
incentives and services for groups with special needs.22
Workforce Investment Boards
WIA establishes state and local workforce investment boards (WIBs) as part of the governance
structure for programs that form the workforce development system under WIA. This section
provides information on state and local WIB membership requirements and functions. For both
the state and local WIBs, WIA specifies the composition, but does not specify the number, of
board members. For both state and local WIBs, however, WIA requires that the majority of board
members, as well as the board chairs, be representatives of business.
State WIBs, authorized under WIA Section 111 and established by the governor of each state,
consist of the following required members:
• the governor,
• two members of each chamber of the state legislature,
• representatives of business,
• chief elected officials,
• representatives of labor organizations,
• representatives with experience in youth activities,
• representatives with experience in the delivery of workforce investment activities
(e.g. executive officers of community colleges),
21 For formula details, see http://www.doleta.gov/budget/docs/WIAFormDesc09.pdf.
22 For a detailed list of activities, see Sections 7(a) and 7(b) of the Wagner-Peyser Act.
Congressional Research Service
10
The Workforce Investment Act and the One-Stop Delivery System
• lead state agency officials responsible for the “required” One-Stop partner
programs, and
• any other representatives and state agency officials the governor designates.
With the exception of the board members who are from the state legislature, the governor
appoints all representatives on the state WIB. The state WIB is responsible for assisting the
governor in the following activities:
• development of a state plan;
• development and continuous improvement of statewide workforce activities,
including coordination and nonduplication of One-Stop partner programs;
• designation of local workforce investment areas;
• development of formulas for within-state distribution of adult and youth funds;
• development and continuous improvement of state performance measures;
• preparation of annual reports to DOL on performance measures; and
• development of the statewide employment statistics system.
Local WIBs, authorized under WIA Section 117 and appointed by the chief local elected
official(s) in local workforce investment areas, consist of representatives of the following
required organizations or entities:
• business,
• local educational entities,
• labor organizations,
• community-based organizations,
• economic development agencies,
• One-Stop partner programs, and
• any other representatives deemed appropriate by the local elected official.
The local WIB performs multiple functions in carrying out the programs and services authorized
under WIA, including
• development of a local plan for workforce investment activities;
• selection of One-Stop operators and eligible providers of training;
• development of a budget and administration of funding to service providers;
• oversight of all programs for youth, adult, and dislocated workers;
• negotiation of local performance measures with the governor;
• assistance in development of a statewide employment statistics system;
• coordination of WIA workforce development activities with local economic
development activities; and
Congressional Research Service
11
The Workforce Investment Act and the One-Stop Delivery System
• promotion of participation of private sector employers in the workforce
development system.
Of the many policies for which local WIBs have responsibility, three in particular illustrate the
important governance role that local WIBs play. One, the local WIB is responsible for developing
an MOU among One-Stop partners (see “One-Stop Delivery System”). Two, the local WIB may
designate or certify the following entities (or consortia of these entities) to serve as the One-Stop
operator: a postsecondary educational institution, an employment service agency, a nonprofit
organization, a for-profit entity, a government agency, and other interested entities. WIA
precludes elementary or secondary schools from eligibility to serve as a One-Stop operator.
Three, the local WIB is responsible for establishing limits on the duration and amount of
Individual Training Accounts (ITAs).
State Formula Grant Programs
As noted, WIA was enacted in 1998 and replaced JTPA as the federal government’s primary
employment and job training legislation. Title I—Workforce Investment Systems—authorizes job
training and related services to unemployed or underemployed individuals.
Funds authorized under Subtitle B of WIA (“Statewide and Local Workforce Investment
Systems”) are allocated by formula and are used for workforce development activities. As stated
in WIA, the purpose of workforce systems is to “increase the employment, retention, and
earnings of participants, and increase occupational skill attainment by participants, and as a result,
improve the quality of the workforce, reduce welfare dependency, and enhance the productivity
and competitiveness of the Nation.”23
The three formula grant programs in Title I—youth, adults, and dislocated workers—authorize
funding for employment and training activities available through the national system of One-Stop
centers and provided by service providers in local communities. The majority of funding for WIA
Title I programs is provided through state formula grants.
Adult and Dislocated Worker Activities
Overview and Purpose
The adult and dislocated worker programs both provide training and related services to
individuals ages 18 and older. The programs are funded through formula grants allocated to
states, which in turn allocate the majority of those funds to local entities. These two programs are
discussed together because the services provided are the same. However, the two programs have
different eligibility criteria and different allocation formulas (see “Funding for Title I Programs
and Activities,” below, for the difference in allocation formulas). Any individual age 18 or older
is eligible for services funded by the adult activities allocation. An individual is generally eligible
for services under the provisions for dislocated workers in WIA if the person
23 WIA Section 106 states the purpose of all statewide and local workforce investment systems, so this applies to the
youth, adult, and dislocated worker programs.
Congressional Research Service
12
The Workforce Investment Act and the One-Stop Delivery System
• has been terminated or laid off, or has been notified of a termination or layoff;
• is sufficiently attached to the workforce, demonstrated either through eligibility
for/exhaustion of unemployment compensation or through other means; and
• is unlikely to return to the previous industry or occupation.
There is some breadth in the definition of a “dislocated worker” under WIA. For instance,
eligibility is afforded in cases of anticipated facility closings and for self-employed workers.
However, the core eligibility requirement is displacement due to termination or facility closing.
There is no eligibility requirement under WIA related to the cause of the dislocation.24 From the
perspective of the individual, however, the classification of “adult” or “dislocated” will not make
a difference in the services received under WIA.
Structure—Statewide Activities
After funds are allocated from DOLETA to individual states by formula, the governor of each
state can reserve not more than 15% of the Adult Activities state allocation, not more than 15% of
the Dislocated Worker Activities state allocation, and not more than 15% of the Youth Activities
allocation for “statewide activities.”25 Specifically, funds in the 15% reserve must be used for
“required” activities and may be used for “allowable” activities. In addition, of the state allocation
for dislocated worker activities, the governor of each state must also reserve not more than 25%
for rapid response activities. In sum, not more than 15% of Adult Activities state allocations, not
more than 15% of the Youth Activities state allocations, and not more than 40% of Dislocated
Worker Activities state allocations are reserved at the state level for statewide activities; the
remainder of these three funding streams are subgranted to local areas within each state.
Required statewide employment and training activities, which are funded by the 15% reserve
funds from each of the youth, adult, and dislocated worker state allocations, include26
• dissemination of the state list of eligible providers of training services (including
performance and program cost information for these providers) and eligible
providers of youth activities;
• evaluations of state workforce investment programs for the purpose of
“continuously improving” state activities to “achieve high-level performance”
within the workforce development system and “high-level outcomes” from the
workforce development system;
• distribution of incentive grants to local workforce investment areas for regional
cooperation, local coordination of activities, and “exemplary performance” on
local performance measures;
24 The definition of a “displaced worker” is in WIA Section 101(9).
25 Youth Activities are included in this section because governors may expend the three 15% funds on statewide
activities for Youth, Adults, and Dislocated workers regardless of the source of the funds. Specifically, WIA (Section
133(a)) requires the governor of each state to reserve not more than 15% of the total state allotment for each of the
three formula grants—Youth, Adult, and Dislocated Workers—to fund “statewide activities.” Governors have the
discretion to pool the three 15% funds and expend the funds on any statewide workforce investment activities
regardless of the source of the funding. For example, funds from the Adult formula grant may be spent on statewide
activities for Youth and vice versa.
26 Required and allowable statewide activities are described in Sections 129(b) and 134(a) of WIA.
Congressional Research Service
13
The Workforce Investment Act and the One-Stop Delivery System
• technical assistance to local areas not meeting required performance measures;
• assistance to local areas in establishing One-Stop delivery systems;
• statewide activities and additional assistance to local areas with high
concentrations of eligible youth to carry out program design and program
elements for youth;27 and
• operation of a fiscal and management accountability system in order to report on
and monitor the use of WIA funds.
Allowable statewide employment and training activities include28
• administration of state activities,29
• technical and capacity building assistance to One-Stop operators and partners and
training providers,
• research and demonstration projects,
• implementation of innovative training programs for incumbent workers and
displaced homemakers; and
• assistance in identifying eligible providers of training.
From the 25% reserve from the dislocated worker state allocation, states are required to carry out
rapid response activities to assist workers who have been dislocated in obtaining reemployment
as quickly as possible. A dislocation event is typically defined as a permanent closure or mass
layoffs at a facility or a disaster (natural or otherwise) resulting in mass job dislocation. The
services funded under this reserve may include30
• establishment of onsite contact with employers and employee representatives
immediately after the dislocation event,
• provision of information and access to employment and training programs,
• assistance in establishing a labor-management agreement to determine the
employment and training needs of the affected workers,
• provision of emergency assistance; and
• provision of assistance to the affected local community to develop a coordinated
response in seeking state economic development aid.
27 The program design and elements are described in Sections 129(b) and 129(c) of WIA.
28 Allowable statewide activities are described in Section 134(a)(3) of WIA.
29 As part of the 15% that states may reserve, up to 5% of the total state formula grant may be spent on program
administration. For example, if the total state formula grant for youth, adult, and dislocated workers is $300 million
($100 million for each funding stream) for a given state, the governor of that state may reserve up to $45 million for
statewide activities (15% of each funding stream). Of this $45 million, up to $15 million (5% of $300 million) may be
spent on administrative costs.
30 Required rapid response activities are described in Section 134(a)(2)(A) of WIA. The term “rapid response activity”
is defined in Section 101(38) of WIA.
Congressional Research Service
14
The Workforce Investment Act and the One-Stop Delivery System
Structure—Local Activities
Following the reservation of funds at the state level (for the adult and dislocated worker
programs), the remaining funds are allocated to local areas to carry out “required” and
“permissible” training and employment activities.31 At the local level, funds must be used to assist
in establishing a One-Stop delivery system and to provide core, intensive, and training services.
Table 2 provides information on the required local activities for each of the three service levels of
WIA adult and dislocated worker programs.
Table 2. Services Provided to Adult and Dislocated Workers under Title I of WIA
Core Services
Intensive Services
Training Services
Outreach, Intake, and Orientation
Comprehensive and Specialized
Occupational Skills
Assessments of Skills and Needs
Assessment of Skills and Needs
Development of an Individual
On-the-Job
Employment Plan (IEP)
Job Search Assistance
Group Counseling
Combination of Workplace and
Related Classroom Instruction
Labor Market Information
Career Planning
Skil Upgrading
Performance and Cost
Case Management
Entrepreneurial Training
Information for Eligible Training
and Education Providers
Performance Measurement
Prevocational Services to Prepare
Job Readiness
Information for the Local Area
Individuals for Employment or
Training
Information On and Referral To
Adult Education and Literacy in
Supportive Services
Combination with Training
Information on Filing for
Customized Training in Conjunction
Unemployment Compensation
with an Employer
Assistance in Establishing Eligibility
for Financial Aid for non-WIA
Training and Education Programs
Follow-up Services for at least
One Year to Participants Who
are Placed in Unsubsidized
Employment
Source: P.L. 105-220 and Department of Labor, Employment and Training Administration, “Workforce
Investment Act; Final Rules,” 65 Federal Register 49319-49329, August 11, 2000.
Sequence of Services
The program for adult and dislocated worker participants in WIA is structured around a sequential
service strategy that consists of three levels of services: core, intensive, and training. Service at
31 Required local employment and training activities are detailed in Section 134(d) of WIA and allowable activities are
detailed in Section 134(e) of WIA.
Congressional Research Service
15
The Workforce Investment Act and the One-Stop Delivery System
one level is a prerequisite for service at the next level. That is, any individual may receive “core”
services.32
To receive intensive services, WIA requires that individuals be unable, after receiving core
services, “to obtain or retain employment that allows for self-sufficiency.”33 To receive training,
after receiving intensive services, an individual must have been unable to obtain or retain
employment that allows for self sufficiency. Further, to be considered for training, an individual
must also have the “skills and qualifications” to participate successfully in training (as determined
by a One-Stop case manager), choose a training service linked to an occupation in the local area
(or be willing to locate to another area where the occupation is in demand), and be unable to
obtain other grant assistance (e.g., Pell grants) for the training services.
Statutory provisions do not specify an amount of time an individual must spend or the number of
attempts that must be made to gain employment before moving to the next level in the sequence
of services. WIA regulations provide additional guidance on the sequence of services but do not
set time or job application requirements. Specifically, the regulations stipulate that an individual
must receive at least one core service before receiving intensive services and must receive at least
one intensive service before moving to training services. The regulations clearly state that there is
“no Federally-required minimum time period for participation” in core or intensive services
before receiving the next level of service.34
Training—Eligible Providers and Individual Training Accounts
Following the decision of a One-Stop operator to provide an individual with access to training
services, the implementation of training in WIA is built on the concept of consumer choice, which
involves two main components: eligible providers and Individual Training Accounts (ITA).35
Local WIBs are responsible for establishing and overseeing eligible providers of training in the
local workforce investment area. The purpose of having a list of eligible providers, as opposed to
the One-Stop centers contracting directly with a training provider of its choosing, is to provide
choice to “customers” who are accessing WIA services.
There are two types of provider eligibility: initial and subsequent. For initial eligibility, two types
of entities must submit applications directly to the relevant local WIB, which sets the application
procedures: a postsecondary educational institution that is eligible to receive federal funds under
Title IV of the Higher Education Act of 1965 and offers programs leading to an associate or
32 The workforce development system designed by WIA is premised on universal access, such that an adult age 18 or
older does not need to meet any qualifying characteristics in order to receive core services. However, Section
134(d)(4)(E) of WIA stipulates that in the event funds allocated for employment and training activities are “limited,”
priority is to be given to recipients of public assistance and other low-income individuals for intensive and training
services. It is left to the discretion of the local WIB, in consultation with the state’s governor, to determine this
prioritization.
33 “Self-sufficiency” is not defined in WIA. However, the implementing regulations for WIA (663.230) indicate that
state or local WIBs must set the criteria that determines whether or not employment leads to self-sufficiency. The
regulations do specify that, within this flexibility, employment must pay at least the “lower living standard income
level” as defined in Section 101(24) of WIA.
34 See 20 C.F.R. §663.165 and 20 C.F.R. §663.250.
35 Other training is allowed under WIA that may not involve an ITA, such as on-the-job training or customized training.
Congressional Research Service
16
The Workforce Investment Act and the One-Stop Delivery System
baccalaureate degree, or an entity that provides apprenticeship programs registered under the
National Apprenticeship Act.
If entities other than those described above wish to become eligible providers of training, they
must apply to the local WIB (according to a procedure established by the governor of the state),
which then reviews applications submitted at the local level.
In order to attain subsequent eligibility, existing training providers must follow procedures
established by the governor and implemented by the local WIB. WIA does, however, specify
particular information that eligible providers must submit to be considered for continued
eligibility. Specifically, training providers must annually submit the following performance and
cost information to the local WIB:36
• program completion rates for all individuals participating in the program;
• percentage of all individuals completing the program who obtain unsubsidized
employment;
• wages at placement in employment for all individuals participating in the training
program;
• percentage of WIA participants completing the training program and entering
unsubsidized employment;
• retention rates after six months in unsubsidized employment of WIA participants
completing the program;
• wages received after six months in unsubsidized employment of WIA
participants completing the program;
• rates of licensure, certification, or degree attainment of all graduates of the
program; and
• program cost information for WIA participants.
For eligible training providers that serve few participants supported by WIA funds, the
requirement to collect employment and wage data for all students in a training program may serve
as a disincentive to participate in the ITA system.37 As of September 2009, 40 states had received
a waiver from DOLETA to extend the time limit on the period of initial eligibility for training
providers. These waivers were granted on the basis that the burden of providing data for all
students (rather than just WIA-funded students) might encourage training providers to drop out of
the ITA system and thus limit customer choice.38
36 WIA provides for the collection of additional information but does not require providers to submit this information.
Rather, Section 122(d)(2) permits the governor of each state to determine if providers must submit additional outcome
measures for all individuals (not just WIA-funded) participating in the applicable program. While the statute requires
that states report on outcome data for all individuals (rather than WIA-funded individuals) in a training program, most
states have received waivers for this provision of WIA.
37 See Paul Decker and Irma Perez-Johnson, “Individual Training Accounts, Eligible Training Provider Lists, and
Consumer Report Systems,” in Job Training Policy in the United States, ed. Christopher J. O'Leary, Robert A. Straits,
and Stephen A. Wandner (Kalamazoo, MI: W.E. Upjohn Institute for Employment Research, 2004), pp. 204-205.
38 See http://www.doleta.gov/waivers/pdf/WIA_Waivers_Summary_Sep2009.pdf for a list of states receiving waivers.
Congressional Research Service
17
The Workforce Investment Act and the One-Stop Delivery System
When an individual is deemed eligible to receive training services, that individual, in consultation
with a case manager, may choose training services from a list of eligible providers (discussed
above). At that point, an Individual Training Account (ITA) is established, from which payment is
made to the eligible training provider for training services. Under WIA’s predecessor, the Job
Training Partnership Act (JTPA), customers entering training were often limited to programs that
local areas decided to fund—a “contracted training” approach.39 In the ITA approach under WIA,
participants are able to purchase training from the list of eligible trainers. Local WIBs have the
authority to set limits on the type and duration of training.40 In addition, local WIBs may choose
to set limits on the amount of an ITA, based on individual circumstances or on an across-the-
board level.41
Youth Activities42
Overview and Purpose
In addition to the formula grants for Adult Activities and Dislocated Worker Activities, WIA
authorizes a formula grant program for Youth Activities (although individuals ages 18 or older are
also eligible for services provided through the Adult Activities program). As specified in the law,
the program has several purposes: to provide assistance in achieving academic and employment
success through activities that improve educational and skill competencies and foster effective
connections to employers; to ensure ongoing adult mentoring opportunities for eligible youth; to
provide opportunities for training, continued supportive services, and participation in activities
related to leadership, citizenship, and community service; and to offer incentives for recognition
and achievement to youth.
Structure
A youth is eligible for the Youth Activities formula grant program if the individual is age 14
through 21,43 is a low-income individual, and has one or more of the following barriers:
• deficient in basic literacy skills;
• a school dropout;
• homeless, a runaway, or a foster child;
39 While contracted training was generally the approach taken under JTPA, some local entities experimented with the
training voucher approach. See Sheena McConnell et al., Managing Customers’ Training Choices: Findings From The
Individual Training Account Experiment, Mathematica Policy Research, Inc., Contract No. N-7731-9-00-87-30,
Washington, DC, December 2006, pp. 2-4, http://wdr.doleta.gov/research/FullText_Documents/
managing_customers_choices.pdf.
40 Training must be for occupations that are in demand in the local area, are in demand in an area to which the trainee is
willing to relocate, or are deemed (by the local WIB) to have “high potential” for sustained demand and growth in the
local area.
41 663 C.F.R. §420.
42 The section on Youth Activities draws from CRS Report R40929, Vulnerable Youth: Employment and Job Training
Programs, by Adrienne L. Fernandes-Alcantara.
43 The American Recovery and Reinvestment Act of 2009 (P.L. 111-5; ARRA) provided additional funding to WIA
Title I programs. In addition, the definition of “eligible youth” was raised from 21 to 24 for Youth Activities funded
through the ARRA.
Congressional Research Service
18
The Workforce Investment Act and the One-Stop Delivery System
• pregnant or parenting;
• an offender; or
• requires additional assistance to complete an educational program or to secure
and hold employment. 44
DOLETA provides funding to states based on each state’s relative share of national
unemployment and youth poverty. In turn, the states, in consultation with state WIBs, distribute
85% of funds, also based on unemployment and poverty factors, to local workforce areas that are
designated by the governor.45 The state retains as much as 15% for statewide activities. Local
WIBs, in coordination with their youth councils, competitively award funds to local organizations
and other entities to provide employment and job training services to youth.46
Services
Local programs are responsible for carrying out the purposes of WIA. In addition to assessing the
skills of youth who receive services, local programs must provide the following 10 activities or
“elements” to youth:
• tutoring, study skills training, and instruction leading to completion of secondary
school, including dropout prevention strategies;
• alternative secondary school services, as appropriate;
• summer employment opportunities that are directly linked to academic and
occupational learning;
• as appropriate, paid and unpaid work experiences, including internships and job
shadowing;
• occupational skill training, as appropriate;
• leadership development opportunities;
• supportive services;
• adult mentoring for the period of participation and a subsequent period, for a total
of not less than 12 months;
44 Up to 5% of youth participants in a local area may be individuals who do not meet the income criteria, but have at
least one barrier to employment, some of which are not identical to those listed above. At least 30% of all Youth
Activities formula grant funds must be used for activities for out-of-school youth, or youth who have dropped out or
received a high school diploma or its equivalent but are basic skills deficient, unemployed, or underemployed.
45 Alternatively, a state may distribute to local areas a portion equal to not less than 70% of the funds they would have
received using the employment and poverty factors, with the remaining portion of funds allocated on the basis of a
formula that incorporates additional factors relating to excess youth poverty in urban, rural, and suburban local areas
and excess unemployment above the state average in these areas. Such a formula must be developed by the state WIB
and approved by the DOL Secretary as part of the state plan. Section 128(b)(3) of WIA.
46 Each local WIB is required under law to establish a local youth council (Section 117(h)). Together, the WIB and the
youth council oversee a local youth program funded by Youth Activities. The purpose of the youth council is to provide
expertise in youth policy and to assist the local board in developing portions of the local plan relating to eligible youth.
As specified in the law, the councils must coordinate youth activities in a local area, develop portions of the local plan
related to eligible youth, recommend eligible providers of youth activities to be competitively awarded grants or
contracts, oversee the activities of the providers, and carry out other duties specified by the local WIB.
Congressional Research Service
19
The Workforce Investment Act and the One-Stop Delivery System
• comprehensive guidance and counseling, which may include drug and alcohol
abuse counseling and referral, as appropriate; and
• follow-up services for not less than 12 months after the completion of
participation, as appropriate.
Although local WIBs must make all 10 program elements available to youth, each individual
youth does not need to participate in all elements. Further, local programs that receive Youth
Activities funding need not provide all 10 program elements if certain services are already
accessible for all eligible youth in the area; however, these other services must be closely
coordinated with the local programs.47
Job Corps48
Overview and Purpose
The Job Corps program is carried out by the Office of Job Corps within the Office of the DOL
Secretary,49 and consists of residential centers throughout the country. The purpose of the
program is to provide disadvantaged youth with the skills needed to obtain and hold a job, enter
the Armed Forces, or enroll in advanced training or higher education. In addition to receiving
academic and employment training, youth also engage in social and other services to promote
their overall well-being.
Structure
Currently, 125 Job Corps centers operate throughout the country.50 Of the 125 centers, 28 sites are
known as Civilian Conservation Corps Centers, which are jointly operated by DOL and the
Department of Agriculture or the Department of the Interior.51 Programs at these sites focus on
conserving, developing, or managing public natural resources or public recreational areas. Most
Job Corps centers are located on property that is owned or leased long term by the federal
government.
47 Department of Labor, Employment and Training Administration, Training and Employment Guidance Letter (TEGL)
No. 9-00, January 23, 2001; and Department of Labor, Employment and Training Administration, Training and
Employment Guidance Letter (TEGL) No. 18-00, April 23, 2001. Local WIBs are advised to establish ongoing
relationships with non-WIA funded activities that provide services for WIA-eligible youth.
48 The section on Job Corps draws from CRS Report R40929, Vulnerable Youth: Employment and Job Training
Programs, by Adrienne L. Fernandes-Alcantara.
49 Since FY2006, Congress has directed DOL to operate the Job Corps Office in the Office of the Secretary. Federal
regulations established the Office of Job Corps within the Office of the Secretary, pursuant to Secretary’s Order 09-
2006. U.S. Department of Labor, “Establishment of the Office of Job Corps Within the Office of the Secretary;
Delegation of Authority and Assignment of Responsibility to Its Director and Others,” 71 Federal Register 16192,
March 30, 2006. However, the “Consolidated Appropriations Act, 2010” (P.L. 111-117) authorizes the Secretary of
Labor to submit to the House and Senate a plan for the transfer of the administration of the Job Corps program from the
Office of the Secretary to the Employment and Training Administration. The Secretary is then authorized, 30 days after
the submission of the plan, to complete the transfer.
50 U.S. Department of Labor, Office of Job Corps, Budget Justification of Appropriation Estimates for Committee on
Appropriations, FY2012, Volume I, page OJC-14.
51 Ibid.
Congressional Research Service
20
The Workforce Investment Act and the One-Stop Delivery System
Job Corps centers may be operated by a federal, state, or local agency; an area vocational
education school, or residential vocational school; or a private organization. Authorization for
new Job Corps centers is specified in appropriations law. DOL initiates a competitive process
seeking applicants that are selected based on their ability to coordinate activities in the workforce
system for youth, their ability to offer vocational training opportunities that reflect local
employment opportunities, past performance, proposed costs, and other factors.
Services
Students may participate in the Job Corps program for up to two years. While at a Job Corps
center, students receive the following services and assistance:
• academic, vocational, employment, and social skills training;
• work-based learning, which includes vocational skills training and on-the-job
training; and
• counseling and other residential support services, including transportation, child
care, a cash clothing allowance or clothing that is needed for participating in the
program, and living and other allowances.
Job Corps centers provide services both on-site and off-site, and they contract some of these
services. Centers rely on outreach and admissions contractors to recruit students to the program.
These contractors may include a One-Stop center, community action organizations, private for-
profit and nonprofit businesses, labor organizations, or other entities that have contact with youth.
Contractors seek out potential applicants, conduct interviews with applicants to identify their
needs and eligibility status, and identify youth who are interested and likely Job Corps
participants. Similarly, centers rely on placement agencies—organizations that enter into a
contract or other agreement with Job Corps—to provide placement services for graduates and, to
the extent possible, former students. Services such as vocational training are sometimes provided
by outside organizations, such as the Home Builders Institute.
National Grant Programs
In addition to state formula grants and Job Corps, WIA authorizes a number of competitive grant-
based programs to provide employment and training services to special populations.52
Native Americans Programs (Section 166)
This competitive grant program provides comprehensive workforce investment activities—
academic, occupational, and literacy—to assist participants preparing to enter, reenter, or retain
unsubsidized employment. Services are provided to Indians, Native Hawaiians, and youth on or
near Indian reservations and in Oklahoma, Alaska, or Hawaii.
52 Three programs/activities authorized by Subtitle D (“National Programs”) are not discussed here: Youth Opportunity
Grants (Section 169), Technical Assistance (Section 170), Evaluations (Section 172).
Congressional Research Service
21
The Workforce Investment Act and the One-Stop Delivery System
Funding authorized under WIA Section 166 is provided through a biennial competitive grant
process to Native American tribes and Native American nonprofit organizations. There are
currently 178 grantees.
Migrant and Seasonal Farmworker Programs (Section 167)
This competitive grant program, which is also referred to as the National Farmworker Jobs
Program, provides training and related services (including housing services), and technical
assistance, to disadvantaged migrant and seasonal agricultural workers and their dependents.
Grants are awarded to public, private, and nonprofit organizations. The program was first
authorized by the Economic Opportunity Act of 1964.
Funding authorized under WIA Section 167 is provided through a biennial competitive grant
process to community-based organizations and public agencies that assist migrant and seasonal
farmworkers to gain greater economic stability. There are currently 52 grantees for training
grants.
Veterans’ Workforce Investment Program (Section 168)
This program provides workforce investment activities to veterans to enhance services provided
by other providers of workforce services, to provide services not otherwise provided, and to
promote maximum job and job training opportunities. Funding is provided through competitive
grants to states and nonprofit organizations. It has been administered by DOL’s Veterans’
Employment and Training Service (VETS) since FY2001. There are currently 22 grantees.
Demonstration, Pilot, Multiservice, Research, and Multistate Projects
(Section 171)
The purpose of pilot and demonstration programs is to develop and evaluate innovative
approaches to providing employment and training services. Several programs have been specified
funded under the authority of Section 171.53 For example, the Reintegration of Ex-Offenders
program is a competitive grant program that combines two previous demonstration projects, the
Prisoner Reentry Initiative (PRI) and the Responsible Reintegration of Youthful Offenders
(RRYO). PRI, which was first funded in FY2005, supports faith-based and community
organizations that help recently released prisoners find work when they return to their
communities. RRYO, first funded in FY2000, supports projects that serve young offenders and
youth at risk of becoming involved in the juvenile justice system. In FY2008, the Reintegration of
Ex-Offenders program combined the PRI and RRYO into a single funding stream.
53 From FY2005 through FY2009, funding for the Community Based Job Training Grant (CBJT) program was
provided from the National Reserve fund. The CBJT was approximately $125 million per year. This competitive grant
program, also known as the Community College Initiative, funded entities to strengthen the capacity of community
colleges to train workers in the skills required to succeed in high-growth, high-demand industries. Community Based
Job Training (CBJT) grants were first funded in FY2005, with funds drawn from the Dislocated Worker National
Reserve. The Consolidated Appropriations Act, 2010 (P.L. 111-117) changed the name of this program to the Career
Pathways Innovation Fund but the purpose remained the same as the CBJT program. In addition, P.L. 111-117 changed
the source of funding for the Career Pathways Innovation Fund from the Dislocated Workers’ National Reserve fund to
a separate budget line within DOLETA. However, the President did not request funding for this the CBJT program in
FY2011 and the grants have not been funded since FY2010.
Congressional Research Service
22
The Workforce Investment Act and the One-Stop Delivery System
National Emergency Grants (Section 173)
From total funding appropriated for the Dislocated Workers Activities program in a fiscal year,
Section 132(a)(2)(A) specifies that 20% is to be used for a National Reserve account, which
provides for National Emergency Grants (NEG) and other services for dislocated workers.54 In
practice, the amount provided for each of these activities is often specified in appropriations
legislation. These NEGs are awarded to states and local WIBs to provide services for eligible
individuals, including dislocated workers, civilian employees of the Departments of Defense or
Energy employed at an installation that is being closed within 24 months of eligibility
determination, or certain other members of the Armed Forces.
Services include job search assistance and training for eligible workers. In addition, NEG funding
may be used to provide direct employment (“disaster relief employment”) to individuals for a
period of up to six months. Finally, NEG funding may be used in some cases for health insurance
coverage.
YouthBuild Program (Section 173A)
In 2007, administration of YouthBuild was transferred from the Department of Housing and
Urban Development to DOL under the YouthBuild Transfer Act (P.L. 109-281). This competitive
grant program is authorized under WIA. The purpose of YouthBuild is to (1) enable
disadvantaged youth to obtain the education and employment skills necessary to achieve
economic self-sufficiency in occupations in demand and post-secondary education and training
opportunities; (2) provide disadvantaged youth with opportunities for meaningful work and
service to communities; (3) foster the development of employment and leadership skills and a
commitment to community development among youth in low-income communities; and (4)
expand the supply of permanent affordable housing for homeless individuals and low-income
families by utilizing the energy of disadvantaged youth.
Services include a range of education and workforce investment activities, including instruction,
skill building, alternative education, mentoring, and training in the rehabilitation or construction
of housing. Notably, any housing unit that is rehabilitated or reconstructed as part of a
YouthBuild-funded project may be available only for rental by, or sale to, homeless individuals or
low-income families, or for use as transitional or permanent housing to assist homeless
individuals achieve independent living. In addition to construction activities, programs offered
within a YouthBuild program can support career pathway training targeted toward other high-
demand occupations and industries.
Youth are eligible for the program if they are (1) ages 16 through 24; (2) a member of a low-
income family, a youth in foster care, a youth offender, an individual with a disability, a child of
an incarcerated parent, or a migrant youth; and (3) a school dropout. However, youth who do not
meet the income or dropout criteria may also be eligible, so long as they are basic-skills deficient
despite having earned a high school diploma, GED, or the equivalent; or they have been referred
54 Specifically, Section 132(a)(2)(A) provides that the 20% set-aside is to be used for four purposes: reservation for
outlying areas (Section 132(b)(2)(A)), dislocated worker technical assistance (Section 170(b)), dislocated worker
projects (Section 171(d)), and employment and training assistance to workers affected by major economic dislocations,
such as plant closures or mass layoffs (Section 173(a)(1)).
Congressional Research Service
23
The Workforce Investment Act and the One-Stop Delivery System
by a high school for the purpose of obtaining a high school diploma. A maximum of 25% of
participants may qualify for eligibility according to these latter criteria.
Funding for Title I Programs and Activities
Allocation Formulas
Funding for the state and local workforce investment activities authorized under Title I—Adult
Activities, Dislocated Worker Activities, and Youth Activities—is allocated by formula. The
funding streams for each of the three sets of activities are allocated from DOL to states by a three-
factor formula based on each state’s relative share of each formula factor. That is, a state’s
“relative share” of any formula factor is calculated by dividing the factor population (e.g., number
of unemployed individuals) in the state by the factor population in the United States as a whole.
After the allocations are made to states, within-state allocations are made based on formulas as
well (see below for details). Finally, WIA allows local WIBs to transfer up to 20% of the local
fund allocation between Adult and Dislocated Worker Activities.55
Adult Activities
Funds for adult employment and training activities are allocated to states on the basis of the
following factors:56
• one-third of the funds are allocated on the basis of each state’s relative share of
total unemployment in areas of substantial unemployment (ASU);
• one-third of the funds are allocated on the basis of each state’s relative share of
excess unemployment; and
• one-third of the funds are allocated on the basis of each state’s relative share of
economically disadvantaged adults.
Key features of the state formula allocation for WIA Adult Activities include the following:
• A reservation for the outlying areas of not more than 0.25% of the total Adult
Activities appropriation (this is reserved prior to state allocations).
• A minimum grant amount equal to 0.25% of the total allocation to all states in a
given program year.57 For example, in PY2009, the state minimum allotment
under the adult funding stream was $2,148,465, which is 0.25% of the total
allotted to all states ($859,386,150). A total of 10 states received this minimum
allotment in PY2009.
55 Section 133(b)(4) allows this transfer.
56 See Appendix A for complete definitions of formula factors for all three funding streams.
57 More precisely, WIA Section 132(b)(1)(B)(iv) describes two methods for calculating the minimum annual state
allotments, depending on the total amount allocated to states. The method described in the text is based on a total
annual state allocation of no more than $960 million, which is the dividing point between the two methods. Since
WIA’s enactment, the state allotment for adult activities has not exceeded $960 million, and thus has not triggered the
alternative minimum allotment calculations.
Congressional Research Service
24
The Workforce Investment Act and the One-Stop Delivery System
• “Hold harmless” provisions such that individual states will not experience large
swings in year-to-year funding for this stream. Specifically, a state may not
receive less than 90% of its relative share of prior year funding nor more than
130% of its relative share of prior year funding.58
After funds are allocated from DOLETA to individual states by formula, the governor of each
state can reserve not more than 15% of the Adult Activities state allocation for statewide
“employment and training activities.” Specifically, funds in the 15% reserve must be used for
“required” activities and may be used for “allowable” activities (see the “Structure—Statewide
Activities” section, above, for Adult and Dislocated Worker activities).
The remainder of the Adult Activities funding stream is suballocated to local areas within the
state on the basis of either
• the same three-factor formula used for state allocations but with substitution of
local area relative share of state total; or
• at least 70% of the allocation by the same three-factor formula used for state
allocations and the remaining allocation by a state-derived formula using
measures of excess poverty and unemployment within the state.
Finally, the within-state allocation requirements include a “hold harmless” provision for local
areas, such that a local area must receive an allocation percentage of not less than 90% of the
average allocation percentage of that area for the two preceding fiscal years.
Dislocated Worker Activities
Funding for the dislocated worker program in WIA consists of two parts: the National Reserve
and state formula grants. From total funding appropriated for the Dislocated Workers Activities
program in a fiscal year, Section 132(a)(2)(A) specifies that 20% is to be used for a National
Reserve account, which provides for National Emergency Grants (NEG) and other services for
dislocated workers.59
Funds for state formula grants for dislocated worker employment and training activities are
allocated to states on the basis of the following factors:
• one-third of the funds are allocated on the basis of each state’s relative share of
total unemployment;
• one-third of the funds are allocated on the basis of each state’s relative share of
excess unemployment; and
58 In the event that either the 90% or the 130% calculation is less than 0.25% of the total state allocation, the state
would receive the 0.25% minimum.
59 WIA Sections 132(a)(2)(A) and (a)(2)(B) require that 20% of the amount appropriated for Dislocated Worker
Employment and Training Activities be reserved for national emergency grants, dislocated worker projects, dislocated
worker technical assistance, and dislocated worker activities in the outlying areas. The reservation for outlying areas is
not more than 0.25% of the total dislocated worker activities appropriation and is funded from the National Reserve
set-aside. Thus, in PY2009, a total of $3,667,228 (0.25% of $1,466,891,000) was reserved for dislocated worker
activities in the outlying areas, $283 million was reserved for the National Reserve fund, and $1.2 billion was allocated
by state formula grants.
Congressional Research Service
25
The Workforce Investment Act and the One-Stop Delivery System
• one-third of the funds are allocated on the basis of each state’s relative share of
long-term unemployment.
Unlike the Adult funding formula, the dislocated workers’ formula does not contain provisions for
minimum and maximum allotments. Because the dislocated worker formula does not contain
these “hold harmless” provisions, individual states tend to experience large swings in year-to-year
funding for this stream. For example, in PY2009, 16 states received allotments of 75% or less of
their PY2008 allotments. Likewise, in PY2009, 17 states received allotments of at least 125% of
their PY2008 allotments.
After funds are allocated from DOLETA to individual states by formula, the governor of each
state must reserve not more than 15% of the Dislocated Worker Activity state allocation for
statewide “employment and training activities.” In addition, of the state allocation for dislocated
worker activities, the governor of each state must also reserve not more than 25% for rapid
response activities. In sum, not more than 40% of dislocated worker state allocations are reserved
at the state level for statewide activities.
The remainder of the Dislocated Worker Activities funding stream must be reallocated to local
areas based on a state-developed formula that takes into account the following data:
• insured unemployment,
• unemployment concentrations,
• plant closings and mass layoffs,
• declining industries,
• farmer-rancher economic hardship, and
• long-term unemployment.
Youth Activities
Funds for youth employment and training activities are allocated to states on the basis of the
following factors:60
• one-third of the funds are allocated on the basis of each state’s relative share of
total unemployed in areas of substantial unemployment (ASU);
• one-third of the funds are allocated on the basis of each state’s relative share of
excess unemployed; and
• one-third of the funds are allocated on the basis of each state’s relative share of
economically disadvantaged youth.
Key features of the state formula allocation for WIA Youth Activities include the following:
• A reservation for outlying areas of 0.25% of the total Youth Activities
appropriation (this is reserved prior to state allocations).
60 See Appendix A for complete definitions of formula factors for all three funding streams.
Congressional Research Service
26
The Workforce Investment Act and the One-Stop Delivery System
• A minimum grant amount equal to 0.25% of the total allocation to all states in a
given program year.61 For example, in PY2009, the state minimum allotment
under the Youth Activities funding stream was $2,269,744, which is 0.25% of the
total allotted to all states ($907,897,792). A total of nine states received this
minimum allotment in PY2009.
• “Hold harmless” provisions such that individual states will not experience large
swings in year-to-year funding for this stream. Specifically, a state may not
receive less than 90% of its relative share of prior year funding nor more than
130% of its relative share of prior year funding.62
After funds are allocated from DOLETA to individual states by formula, the governor of each
state must reserve not more than 15% of the Youth Activities state allocation for statewide youth
activities or “employment and training activities” for adults and dislocated workers.63
The remainder of the Youth Activities funding stream is reallocated to local areas within the state
on the basis of either
• the same three-factor formula used for state allocations but with substitution of
local area relative share of state total; or
• at least 70% of the allocation by the same three-factor formula used for state
allocations and the remaining allocation by a state-derived formula using
measures of excess poverty and unemployment within the state.
Finally, the within-state allocation requirements include a “hold harmless” provision for local
areas, such that a local area must receive an allocation percentage of not less than 90% of the
average allocation percentage of that area for the two preceding fiscal years.
Performance Accountability in Title I
Section 136 of WIA sets forth state and local “performance measures” as part of the
accountability system to be used “to assess the effectiveness of States and local areas in achieving
continuous improvement of workforce investment activities funded under this subtitle, in order to
optimize the return on investment of federal funds in statewide and local workforce investment
activities.” Under WIA, “state performance measures” consist of the core indicators of
performance described in Section 136(b)(2)(A) and 136(b)(2)(B) and any additional indicators
identified by individual states. Below is an overview of the 17 core indicators required by Section
136.
61 More precisely, WIA Section 127(b)(1)(C)(iv) describes two methods for calculating the minimum annual state
allotments, depending on the total amount allocated to states. The method described in the text above is based on a total
annual state allocation of no more than $1 billion, which is the dividing point between the two methods. Since FY2003,
the state allotment for Youth Activities has not exceeded $1 billion, and thus has not triggered the alternative minimum
allotment calculations.
62 In the event that either the 90% or the 130% calculation is less than 0.25% of the total state allocation, the state
would receive the 0.25% minimum.
63 See CRS Report R40929, Vulnerable Youth: Employment and Job Training Programs, by Adrienne L. Fernandes-
Alcantara for additional information.
Congressional Research Service
27
The Workforce Investment Act and the One-Stop Delivery System
• There are 12 “General Core Indicators of Performance” for employment and
training activities for adults, dislocated workers, and youth ages 19-21. For each
group of participants, core indicators are: entry into employment, retention in
employment, earnings, and attainment of a credential.
• There are three “Core Indicators for Eligible Youth” for youth ages 14-18. These
indicators are: attainment of basic skills, attainment of a secondary school
diploma, and placement and retention in postsecondary education or
employment.
• There are two “Customer Satisfaction Indicators”—one each for employers and
participants.
Each indicator is described in greater detail in Table 3 below. There are some general
characteristics that apply to the WIA performance measure system:
• Standards are established for one program year (a program year runs from July 1-
June 30; for example, PY2009 runs from July 1, 2009-June 30, 2010).
• The standards are typically expressed as a numerical percentage (e.g., entered
employment rate of 60%) or dollar amount ($500 in average earnings).
• The governor of each state establishes performance standards for that state, based
on measures identified in Section 136 of WIA and defined by the Secretary.
• Governors, on the basis of negotiations with the Secretary, may adjust national
standards for state and local areas based on economic and demographic factors
(see section below).
• States and localities may incur sanctions for falling short of the standards.
Congressional Research Service
28
The Workforce Investment Act and the One-Stop Delivery System
Table 3. Performance Measures for WIA Title I Activities
Group Measure
Definition
Number of adults employed in 1st
Adults Entered
Employment
Rate
quarter after exit quarter / Number
of adult exiters during the exit
quarter
Number of adults employed in 2nd
Adults
Employment Retention Rate
and 3rd quarter after exit / Number
of adult exiters during the exit
quartera
Earnings in 2nd and 3rd quarter after
Adults Average
Earnings
exit quarter / Number of adult
exiters employed in the 1st, 2nd, and
3rd quarters after the exit quarterb
Number of adults employed in 1st
quarter after exit and received
Adults
Employment & Credential Certificate Ratec
credential by end of 3rd quarter /
Number of adult exiters during the
exit quarter
Dislocated Workers
Number of DW employed in 1st
Entered Employment Rate
quarter after exit / Number of DW
(DW)
exiters during the exit quarter
Number of DW employed in 2nd and
Dislocated Workers
Employment Retention Rate
3rd quarters after exit / Number of
(DW)
DW exiters during the exit quarterd
Earnings in 2nd and 3rd quarter after
Dislocated Workers
exit quarter / Number of DW exiters
(DW)
Average Earnings
employed in the 1st, 2nd, and 3rd
quarters after the exit quartere
Number of DW employed in 1st
quarter after exit and received
Dislocated Workers
Employment & Credential Certificate Rate
credential by end of 3rd quarter /
(DW)
Number of DW exiters during the
exit quarter
Number of older youth employed in
1st quarter after exit quarter /
Youth 19-21
Entered Employment Rate
Number of older youth exiters
during the exit quarter
Number of older youth employed in
3rd quarter after exit / Number of
Youth 19-21
Employment Retention Rate at Six Months
older youth exiters during the exit
quarter
Earnings in 2nd and 3rd quarter after
exit minus earnings in 2nd and 3rd
Youth 19-21
Earnings Change in Six Months
quarter prior to participation /
Number of older youth exiters
during the exit quarter
Congressional Research Service
29
The Workforce Investment Act and the One-Stop Delivery System
Group Measure
Definition
Number of older youth employed, in
postsecondary education, or
Youth 19-21
Credential/Certificate Rate
advanced training in 1st quarter after
exit and received credential by end of
3rd quarter / Number of older youth
exiters during the exit quarter
Number of basic skills goals attained
+ Number of work readiness skills
goals attained + Number of
occupational skills goals attained /
Youth 14-18
Skil Attainment Rate
Number of basic skills goals set +
Number of work readiness skills
goals set + Number of occupational
skills goals set
Number of younger youth attaining
secondary school diploma or
Youth 14-18
Diploma or Equivalent Attainment
equivalent by end of 1st quarter after
exit / Number of younger youth
exiters during exit quarter
Number of younger youth in
postsecondary education, advanced
Youth 14-18
Retention Rate
training, employment, or
apprenticeships / Number of younger
youth exiters during exit quarter
Weighted average of employer
Employers Customer
Satisfaction
ratings on each of three survey
questions
Weighted average of participant
Participants Customer
Satisfaction
ratings on each of three survey
questionsf
Source: The Workforce Investment Act of 1998, P.L. 105-220, ETA Training and Employment Guidance Letter
No. 7-99 (“Core and Customer Satisfaction Performance Measures for the Workforce Investment System “),
and ETA Training and Employment Guidance Letter No. 17-05 (“WIA Title IB Performance Measures and
Related Clarifications,” Attachment D).
Notes: All of the measures for adults, dislocated workers, and youth are authorized in WIA Section
136(b)(2)(A) and the customer service measures are authorized in WIA Section 136(b)(2)(B). The measures in
Table 1 are the current measures, as specified in TEGL No. 17-05. It is noted below where measures have
changed from the original.
a. The numerator for this measure was previously “adults employed in the 3rd quarter.”
b. The universe is adults employed in the 1st, 2nd, and 3rd quarters after the exit quarter. This measure was
previously “adult earnings change in six months.”
c. For adults and dislocated workers, credentials are a “national y recognized degree or certificate or
State/locally recognized credential.” Thus, credentials include, but are not limited to, a high school diploma,
a GED or equivalent, post-secondary degrees and/or certificates, recognized skill standards, and licensure or
industry-recognized certificates.
d. This measure was previously “dislocated worker employment retention rate at six months” and only used
3rd quarter employment in the numerator.
e. The universe is DW employed in the 1st, 2nd, and 3rd quarters after the exit quarter. This measure was
previously “dislocated worker earnings replacement rate in six months” and “dislocated worker earnings
change in six months.”
Congressional Research Service
30
The Workforce Investment Act and the One-Stop Delivery System
f.
DOLETA uses the American Customer Satisfaction Index (ACSI) for questions to address customer
experience with WIA.
In addition to the 17 indicators listed in Table 3, states may identify additional indicators of
performance and identify these in the “State plan” (hereafter, “Plan”) required under Section 112.
It is worth noting that while Section 136 does specify 17 core indicators of performance, some
(e.g., entered employment rate) are identical calculations and only require changing the
populations in the numerators and denominators.
Negotiating Performance Levels Under WIA
For each of the core indicators described above, each state is required to establish a “state
adjusted level of performance.” That is, the “measures” are identified in WIA Section 136, but the
“levels” are determined through negotiation between states and the Secretary of Labor (hereafter,
“Secretary”). In the Plan, states must identify the expected (adjusted) level of performance for
each of the core indicators for the first three program years of the Plan, which covers five
program years.64 In order to “ensure an optimal return on the investment of federal funds in
workforce investment activities,” the Secretary and the governor of each state shall “reach
agreement on the levels of performance” for all 17 indicators identified in Section 136(b)(2)(A).
This agreed-upon level then becomes the “state adjusted level of performance” that is
incorporated into the Plan.65
Section 136(b)(3)(A)(i) of WIA specifies that the state adjusted levels of performance must
• be expressed in an “objective, quantifiable, and measurable form”; and
• show the state’s progress toward “continuously improving” performance.
The negotiation between governors and the Secretary that leads to an agreement on adjusted
levels of performance must be based on the following three sets of factors:
• the extent to which the adjusted levels will assist a state in attaining a high level
of customer satisfaction;
• the comparative levels of performance established in other states, accounting for
differences in economic conditions, characteristics of participants entering WIA
programs, and the services to be provided;66 and
64 For Program Years 4 and 5, each governor must also reach an agreement again with the Secretary for the adjusted
levels of performance. The factors for consideration in the agreement, however, are the same as for the Program Years
1 through 3. In practice, following the first five years of WIA, DOLETA has issued guidance allowing states to submit
modifications to existing five-year plans to extend the plans for one or two years. For example, see Brent R. Orrell,
Training and Employment Guidance Letter, U.S. Department of Labor, Employment and Training Administration, No.
7-08, Washington, DC, December 11, 2008, http://wdr.doleta.gov/directives/attach/TEGL/TEGL07-08.pdf.
65 Though not discussed here, WIA also requires local performance measures, but these consist of the same core
indicators required for states. The local levels of performance are determined by negotiation between the local
workforce investment board (LWIB), the chief local elected official, and the governor and are supposed to take into
account specific economic, demographic, and other characteristics of locally served populations.
66 Section 136(b)(3)(A)(vi) allows for a process of revisions to state adjusted levels of performance in the event of
“unanticipated circumstances” in a state that result in “a significant change” in economic conditions, characteristics of
participants, and services provided.
Congressional Research Service
31
The Workforce Investment Act and the One-Stop Delivery System
• the impact of agreed-upon levels on promoting “continuous improvement” in
performance.
While WIA itself is not detailed about the process of negotiation, guidance from DOLETA
provides additional information about the process. Specifically, DOLETA Training and
Employment Guidance Letter No. 9-08 (hereafter, “TEGL 9-08”) indicates that states should
negotiate performance level goals “within the context of integrated service delivery, priority of
service, economic conditions, customers served, and workforce solutions that contribute to the
regional economic competitiveness of their state and sub-state areas.”
While DOLETA encourages states to serve “at-risk” populations—including those who are low-
income and have multiple barriers to employment—and to account for the effect that at-risk
populations might have on performance outcomes, it is ultimately at the discretion of the state to
choose the populations it will serve and the adjustments that will be made on the basis of the
populations served. DOLETA does, however, provide information to assist states in proposing
state adjusted levels of performance, including
• past results on the performance measures,
• goals in the Government Performance and Results Act (GPRA),
• national distribution of WIA performance outcomes,
• average six months’ earnings for adult and dislocated programs,
• estimates of six months’ average earnings from Bureau of Labor Statistics
(BLS);67 and
• effects of economic and demographic variables.68
It should be noted that DOLETA provides states with the relevant data for all items listed above.
Furthermore, Attachment VII of TEGL 9-08 provides estimated effects (using a bivariate
regression model) of changes in unemployment and participant characteristics on performance
outcomes. While these effects are estimated using national data, DOLETA suggests that states
might use such estimated relationships to guide decision making about levels of performance.
The DOLETA policy prescribes a process of negotiation that involves three main steps:69
• First, states are to conduct their own analysis of factors affecting levels of
performance and then submit the proposed levels of performance to the DOLETA
Regional Administrator serving the submitting state. States must include a
67 Specifically, DOLETA suggests using the BLS Quarterly Census of Employment and Wages (QCEW) data series,
which provides employment and wage information for employees covered by state Unemployment Insurance (UI)
laws.
68 DOLETA provides a more extensive list of such variables in its final regulations for WIA. See
http://www.doleta.gov/usworkforce/finalrule.htm#part666 for details.
69 In practice, there is some concern that the process of setting performance levels is dominated by DOLETA rather
than being an actual negotiation. For example, see Carolyn J. Heinrich and Burt S. Barnow, One Standard Fits All? The
Pros and Cons of Performance Standard Adjustments, Robert M. La Follette School of Public Affairs at the University
of Wisconsin-Madison, La Follette School Working Paper No. 2008-023, Madison, WI, November 18, 2008, p. 30,
http://www.lafollette.wisc.edu/publications/workingpapers/heinrich2008-023.pdf.
Congressional Research Service
32
The Workforce Investment Act and the One-Stop Delivery System
description of the methodology and data used to support the proposed levels. For
PY2009, the deadline for submission of proposed levels was April 15, 2009.
• Second, the DOLETA regional offices are to review the data and methodology
used by the states to determine the levels of performance and will “work with the
state to set mutually agreed-upon levels of performance.” This process may
involve alternative proposals by DOLETA.
• Third, upon reaching agreement on performance levels, the DOLETA Regional
Administrator is to send a letter to the state confirming that the agreed-upon
levels will be reflected as a modification to the state’s Plan.
Common Measures and Waivers
In July 2005, DOLETA implemented a “common measures” policy for several workforce
programs and revised the reporting requirements for WIA Title I programs in an effort to
“enhance the ability of Congress, the Administration, and public officials to assess the
effectiveness and impact of workforce investment programs.”70 Specifically, DOLETA introduced
three adult measures and three youth measures:
• Entered Employment Rate—All Adults,
• Employment Retention—All Adults,
• Average Earnings—All Adults,
• Placement in Employment or Education—All Youth,
• Attainment of a Degree or Certificate—All Youth, and
• Literacy and Numeracy Gains—All Youth.
DOLETA specifically indicated that the common measures were not to supercede the existing
statutory performance reporting requirements for WIA and that states would continue to negotiate
performance goals for the indicators required by WIA Section 136. Despite this, DOL has granted
waivers to 34 states to permit implementation of and reporting on only common measures rather
than the current fuller array of measures in WIA.71
Title II—Adult Education and Literacy72
Overview
The Adult Education and Family Literacy Act (AEFLA) is authorized by Title II of WIA. Title II
programs are primarily administered by the U.S. Department of Education (ED) through its
Office of Vocational and Adult Education (OVAE). AEFLA’s authorization of appropriations
70 See DOLETA Training and Employment Guidance Letter No. 18-04 for additional rationale.
71 See DOLETA, “Workforce Investment Act (WIA) Waiver Summary Report: WIA Inception—December 16, 2008”
at http://www.doleta.gov/waivers/pdf/WIA_Waivers_Summary_Sep2009.pdf.
72 This section was prepared by Benjamin Collins, bcollins@crs.loc.gov, 7-7382.
Congressional Research Service
33
The Workforce Investment Act and the One-Stop Delivery System
expired on September 30, 2003.73 Programs authorized under AEFLA continue to be funded
through annual appropriations.
The stated purposes of AEFLA are to
(1) assist adults to become literate and obtain the knowledge and skills necessary for
employment and self-sufficiency; (2) assist adults who are parents to obtain the educational
skills necessary to become full partners in the educational development of their children; and
(3) assist adults in the completion of a secondary school education.74
When it was enacted in 1998, AEFLA replaced the Adult Education Act of 1966 (P.L. 89-750)
and the National Literacy Act of 1991 (P.L. 102-73).
Components of AEFLA
AEFLA is divided into several programs. From the total funding appropriated for AEFLA in a
fiscal year, the statute specifies the following set-asides:
• the lesser of 1.5% of the appropriation or $8 million for National Leadership
Activities;
• the lesser of 1.5% of the appropriation or $8 million for activities carried out by
the National Institute for Literacy (NIFL); and
• 1.72% for WIA Title V incentive grants (administered by DOL).
Actual appropriations activities may vary from these statutory directives. For example, NIFL has
not received funding since FY2009 and some of its functions have been consolidated into
National Leadership Activities. Since then, funding for National Leadership Activities has
exceeded 1.5% of AEFLA appropriations.
AEFLA funds that are not otherwise set aside or reserved are allocated for grants to states. These
state grants account for the majority of AEFLA spending. Since FY2000, appropriation bills have
reserved a portion of state grant funding for integrated English language and civics education
programs.
National Leadership Activities
National Leadership Activities are intended to address adult education issues of national
importance.75 These funds may be used for
• technical assistance (including the development of performance measures),
professional development, distance learning, and the use of technology;
• identification of successful methods and model programs;
73 The General Education Provisions Act (GEPA) provided a one-year extension of the authorization (through
FY2004).
74 Section 202 of AEFLA (20 U.S.C. 9201).
75 For additional details on permissible activities, see section AEFLA section 243 (20 U.S.C. 9253).
Congressional Research Service
34
The Workforce Investment Act and the One-Stop Delivery System
• research, including the estimation of literacy rates;
• demonstration programs; and
• evaluations and assessments.
While funding levels for National Leadership Activities are specified in statute, appropriations
legislation have set differing levels.
WIA Title V Incentive Grants
AEFLA contributes funds for incentive grants to states authorized under section 503 of WIA.76 To
qualify to apply for an incentive grant, a state must achieve superior performance in both Title I
and Title II of WIA.77 Annual performance levels are negotiated by the states, DOL, and OVAE.
Incentive grants may be used to carry out “an innovative program consistent with the
requirements of any one or more of the programs” in Title I or Title II of WIA or the Carl D.
Perkins Vocational and Technical Education Act of 1998. While the total national incentive grant
level is based on the full AEFLA appropriation, the funding itself is taken from the state grant
program. The minimum incentive grant for each qualifying state is $750,000 and the maximum is
$3 million.
State Grants
Funds that are not set aside or reserved for other purposes are allocated to state grants.
The allotment of state grant funds is a two-step process. First, there is an initial allotment of
$250,000 to each state and $100,000 to each eligible territory.78 The second step of the allotment
process distributes the remainder of the funding by formula. The formula is based on each state’s
share of qualifying adults. Qualifying adults are those who are
• at least 16 years of age,
• beyond the age of compulsory school attendance in the states,
• without a high school diploma or the equivalent, and
• not enrolled in secondary school.
States must match their federal grants so that federal funds account for no more than 75% of
expenditures on adult education activities.79 States and outlying areas are guaranteed to receive at
least 90% of the grant they received in the previous fiscal year.80 State grant funds that are set
76 See 20 U.S.C. 9273. More information on requirements related to WIA Incentive Grants are available in annual
Training and Employment Guidance Letters (TEGLs) from DOL. The TEGL related to program year 2010 was
released in June 2012 and is available at http://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=9112.
77 Prior to program year 2007, states also needed to achieve superior performance under Title III of the Carl D. Perkins
Vocational and Technical Education Act of 1998 to receive an incentive grant.
78 For the purposes of state grant allotments, the District of Columbia and Puerto Rico are classified as states.
79 In the outlying areas, the federal share may not exceed 88%.
80 If funding is insufficient to meet this threshold, each state’s share of current year funding will be ratably reduced so
that they receive the same proportion of current year funds as they received in the previous year.
Congressional Research Service
35
The Workforce Investment Act and the One-Stop Delivery System
aside for EL-Civics programs are distributed using a different formula that is described in the
next subsection.
Section 222 of AEFLA specifies how states must allocate their grant funds:
• At least 82.5% of the state allotment must be competitively subgranted to local
service providers. Up to 10% of the 82.5% may be granted to entities that provide
services to individuals in correctional facilities or other institutionalized
individuals.
• Up to 12.5% of the state’s allotment may be allocated to state leadership
activities (i.e., programs of statewide relevance such as the development and
dissemination of curricula).81
• No more than 5% of the total grant or $65,000, whichever is greater, may be used
for administrative expenses.
All recipients of local subgrants must use funds for the provision of one or more of the following
services: adult education and literacy services, family literacy services, and/or English literacy
programs. Entities eligible to receive local subgrants include local educational agencies,
community and faith-based organizations, institutions of higher education, and other nonprofit
organizations.82
AEFLA requires states to consider certain factors when selecting local subgrant recipients. Most
of these considerations relate to a grantee’s ability to successfully serve qualifying adults
(particularly high-need populations) and accurately report performance data.83
English Literacy-Civics Grants
Since FY2000, appropriations legislation has set aside a portion of the AEFLA state grant funding
for integrated English literacy and civics education services (EL-Civics) to populations with
limited English proficiency.
The provisions of the EL-Civics grants are enumerated in annual appropriations legislation and
are not established elsewhere in law. Funds are distributed to the states based on recent
immigration data from the United States Citizenship and Immigration Services (USCIS).
Typically, 65% of the EL-Civics funding is distributed based on each state’s relative share of
immigrants admitted for legal permanent residence in the 10 most recent years and 35% is
distributed based on each state’s relative share of immigrants admitted for legal permanent
residence in the three most recent years.
Performance Accountability
The AEFLA includes accountability requirements for states.84 These core measures are
81 Allowable state leadership activities are listed in section 223 of AEFLA (20 U.S.C. 9223).
82 The full list of eligible providers is available in section 203(5) of AELFA (20 U.S.C. 9202(5)).
83 The 12 statutory considerations are listed in section 231(e) of AEFLA (20 U.S.C. 9241(e)).
84 For full details, see 20 U.S.C. 9212.
Congressional Research Service
36
The Workforce Investment Act and the One-Stop Delivery System
• improvement in literacy skill levels in reading, writing, and speaking the English
language; numeracy; problem solving; English language acquisition; and other
literacy skills;
• placement or retention in, or completion of, postsecondary education, training,
employment, or career advancement; and
• receipt of a secondary school diploma or the equivalent.
States may choose to require grantees to provide data on additional measures of performance.
Each state must have its proposed performance measures approved by the Secretary of ED. Each
state must develop a five-year plan that describes, among other things, how adult education and
literacy activities will be annually evaluated and how the performance measures will be used to
ensure improvements in performance.
ED established the National Reporting System for Adult Education (NRS) to implement the
statutory accountability requirements in AEFLA. Each state must report annually to the Secretary
on its progress with regard to its performance measures. States that fail to meet performance goals
lose eligibility to share in the WIA Incentive Grants program. Local recipients who fail to meet
the performance goals are less likely to receive future awards because past effectiveness is one of
the criteria used in the competition for local awards.
The Secretary is required to make the information from annual state reports available to the
public, including state-by-state comparisons. These data are available on the NRS’ website
(www.nrsweb.org) and through annual reports issued by ED.85
85 In September 2011, ED published its report for the 2008-2009 program year. It is available from ED at
http://www2.ed.gov/about/offices/list/ovae/resource/nrs-rtc-2008-09-part-1.pdf. State-level data are available at
http://www2.ed.gov/about/offices/list/ovae/resource/nrs-rtc-2008-09-part-2.pdf.
Congressional Research Service
37
The Workforce Investment Act and the One-Stop Delivery System
Appendix A. Glossary of Selected WIA Terms
Areas of Substantial Unemployment (ASU)—This concept is used in the Title I state grant
formulas for Youth and Adult Activities. As defined in Sections 127(b)(2)(B) and
132(b)(1)(B)(v)(III), an ASU is “any area that is of sufficient size and scope to sustain a program
of workforce investment activities carried out under this subtitle and that has an average rate of
unemployment of at least 6.5 percent for the most recent 12 months.” States submit potential
ASU designations and DOL approves ASUs once each fiscal year.
Additional guidance from DOLETA defines an ASU as a “contiguous area with a current
population of at least 10,000 and an average unemployment rate of at least 6.5 percent for the 12-
month reference period.”86 If a state has a statewide unemployment rate of at least 6.5%, the
entire state will be designated as an ASU for allocation purposes.87
Economically Disadvantaged—This concept is used in one of the factors for the Title I state
grant formulas for Youth and Adult Activities. For the state formula grants for Youth Activities,
“disadvantaged youth” is defined (in Section 127(b)(2)(C)) as an “individual who is age 16
through 21 who received an income, or is a member of a family that received a total family
income, that, in relation to family size, does not exceed the higher of the poverty line or 70
percent of the lower living standard income level.”88 Similarly, a “disadvantaged adult” is defined
(in Section 132(b)(1)(B)(v)(IV)) the same as a disadvantaged youth with the exception that the
reference individual is age 22 or older. In practice, for both the Youth and Adult Activities
formulas, DOLETA has used the poverty calculations from the 1990 Census (for PY2001-
PY2003) and the 2000 Census (for PY2004-present) for this factor.
Excess Unemployment—This concept is used in one of the factors for the Title I state grant
formulas for Youth, Adult, and Dislocated Worker Activities. For the state formula grants for
Youth and Adult Activities, excess unemployment is defined (in Sections 127(b)(2)(D) and
132(b)(1)(B)(v)(VI)) as the higher of “the number that represents the number of unemployed
individuals in excess of 4.5 percent of the civilian labor force in the state” or “the number that
represents the number of unemployed individuals in excess of 4.5 percent of the civilian labor
force in areas of substantial unemployment in such state.” For the state formula grant for
Dislocated Worker Activities, excess unemployment is defined (in Section 132(b)(2)(B)(iii)) as
“the number that represents the number of unemployed individuals in excess of 4.5 percent of the
civilian labor force in the state.” For example, in a state with a civilian labor force of 100,000 and
an unemployment rate of 8.0% (which would equal 8,000 unemployed individuals), the “excess
unemployment” would be 3,500 (8.0% - 4.5% = 3.5%; 3.5% of 100,000 is 3,500).
Local Workforce Investment Areas (LWIA)—This concept is used in identifying geographic
areas within states that function as administrative units within the One-Stop delivery system.
Section 116 of the WIA directs the governor of each state to designate—in consultation with the
state WIB and with the chief elected local officials in the relevant areas—LWIAs within the state.
86 Jane Oates, Assistant Secretary, Area of Substantial Unemployment Designation under the Workforce Investment Act
(WIA) for Program Year (PY) 2010, Employment and Training Administration, U.S. Department of Labor, TEGL No.
4-09, Washington, DC, September 3, 2009, http://wdr.doleta.gov/directives/attach/TEGL/TEGL04-09.pdf.
87 Ibid.
88 Poverty level and lower living standard income level are defined in WIA Sections 101(36) and 101(24), respectively.
Congressional Research Service
38
The Workforce Investment Act and the One-Stop Delivery System
WIA requires that each LWIA have a local WIB and a One-Stop center. In designating LWIAs,
the governor is required to take into consideration geographic areas served by educational
agencies and institutions, labor market areas, distances that individuals must travel to receive
services, and the resources available from local areas to help carry out the WIA services. WIA
does allow for “automatic designation” of substate areas as LWIAs under three conditions: a unit
of local government with a population of at least 500,000; an area served by a rural concentrated
employment program grant recipient that was a service delivery area (SDA) under the Job
Training Partnership Act (JTPA); and an area that served as an SDA in a state with a population of
no more than 1.1 million and a population density of no greater than 900 persons per square mile.
Long-Term Unemployment—This concept is used in one of the factors for the Title I state grant
formulas for Dislocated Worker Activities. For the state formula grants for Dislocated Worker
Activities, long-term unemployment is defined (in Section 132(b)(2)(B)(ii)(III)) as the number of
individuals in a state who have been unemployed (as measured by the Census bureau) for at least
15 weeks.
Relative Number/Share—This concept is used in the state grant formulas for Youth, Adult, and
Dislocated Worker Activities. Each formula consists of three equally weighted factors. The
factors themselves are based on the concept of the “relative number” or “relative share” of that
factor compared to the analogous number in all of the states. An example from the Dislocated
Worker Activities formula—based on the factors of regular unemployment, excess
unemployment, and long-term unemployment—will demonstrate this. In the PY2012 state
formula allotments, Nevada had the following factor values:
• Regular Unemployment = 178,314;
• Excess Unemployment = 118,912; and
• Long-Term Unemployment = 117,600.
For each of these factors, Nevada’s “relative share” was calculated by dividing the number of
individuals in Nevada by the number of individuals in all states. For example, Nevada’s relative
share of regular unemployment was 1.25% (178,314/14,259,148); its share of excess
unemployment was 1.63% (118,912/7,299,720); and its share of long-term unemployment was
1.41% (117,600/8,358,500). Multiplying each of these individuals by 1/3 and summing the results
would give Nevada a total share of 1.43% ((1.04%*1/3) + (1.45%*1/3) + (0.98%*1/3)). Finally,
multiplying Nevada’s share, 1.43%, by the total funding for all states ($1,008,151,464) yields
$14,404,698, which Nevada received in PY2012.
Congressional Research Service
39
The Workforce Investment Act and the One-Stop Delivery System
Appendix B. Funding for WIA Titles I and II
Table B-1. WIA Title I, Appropriations for FY2009 to FY2012
(dollars in thousands)
Program FY2009
ARRA
FY2010
FY2011
FY2012
State Formula Grant Programs
$2,969,449 $2,950,000 $2,969,449 $2,660,268 $2,605,268
Youth Activities Formula Grants
924,069
1,200,000
924,069
825,914
825,914
Adult Activities Formula Grants
861,540
500,000
861,540
770,922
770,922
Dislocated Worker Activities
1,466,891
1,450,000
1,413,000
1,287,544
1,232,544
Formula Grants
1,183,840
1,250,000 1,183,840 1,063,432 1,008,432
National Reserve
283,051
200,000
229,160
224,112
224,112
Job Corps
1,683,938 250,000 1,708,155 1,706,171 1,706,171
National Programs
Native
Americans
52,758
0 52,758 52,652 47,652
Migrant and Seasonal Farmworkers
79,668
0
84,620
84,451
84,451
Veterans’ Workforce Investment
7,641
0
9,641
9,622
14,622
Ex-Offender
Activities
108,493
0 108,493 85,390 80,390
Responsible Reintegration of
Young
Offenders
88,500 0 0 0 0
Prisoner
Reentry
19,993 0 0 0 0
Reintegration of Ex-Offenders
0
0
108,493
85,390
80,390
Career Pathways Innovation Funda 0 0
125,000 0 0
Green Jobs Innovation Fund
0
0
40,000
0
0
Job Training in High Growth
Industriesb
0
750,000 0 0 0
Workforce Data Quality Initiative
0
$0
12,500
12,475
6,475
YouthBuild
70,000 50,000 102,500 79,840 79,840
Technical
Assistance
0 0 0 0 0
Pilots, Demonstrations, and Research
48,781
0
92,999
9,980
6,616
Evaluation
6,918
0 9,600 9,581 9,581
Workforce Innovation Fund
0
0
0
124,750
50,000
WIA Title I Grand Total
$5,313,649
$4,200,000
$5,544,875
$5,145,892
$4,915,178
Source: Compiled by CRS from the Omnibus Appropriations Act, 2009, (P.L. 111-8), the American Recovery
and Reinvestment Act (P.L. 111-5), the Consolidated Appropriations Act, 2010 (P.L. 111-117), Department of
Defense and Ful -Year Continuing Appropriations Act, 2011 (P.L. 112-10), the Consolidated Appropriations Act,
FY2012 (P.L. 112-74), and Department of Labor Congressional Budget Justifications.
Notes: For state formula grant al ocations, see http://www.doleta.gov/budget/statfund.cfm. Job Corps funding
includes administration, operations, and construction. The amount for “National Reserve” under “Dislocated
Worker Activities” is included in the “Grand Total” but not in the total for “State Formula Grant Programs.”
a. Prior to FY2010, the “Career Pathways Innovation Fund” (CPIF) was named the “Community-Based Job
Training Grant” (CBJTG) program. Funds for the CBJTG were drawn from the Dislocated Workers’
“National Reserve” and are included in the “National Reserve” amount shown in the table for FY2009
Congressional Research Service
40
The Workforce Investment Act and the One-Stop Delivery System
($125 million). There was no appropriation for the CPIF (CBJTG) program in the ARRA. In FY2010, the
CPIF was not funded out of the “National Reserve” and is reflected as a separate appropriation of $125
million.
b. Of the $750 million in the ARRA, $500 million was for training workers for employment in green industries.
Of the remaining $250 million, a priority was established for training in health care careers.
Congressional Research Service
41
Table B-2. WIA Title I, Appropriations for FY2000 to FY2008
(dollars in thousands)
Program
FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008
State Formula Grant Programs
$3,472,185 $3,489,997 $3,532,125 $3,083,395 $3,059,662 $3,060,570 $2,986,030 $2,967,256 $2,969,449
Youth Activities Formula Grants
1,250,965
1,377,965
1,353,065
1,038,669
995,059
986,288
940,500
940,500
924,069
Adult
Activities
Formula
Grants
950,000 950,000 945,372 894,577 893,195 889,498 864,199 851,760 861,540
Dislocated
Worker
Activities
1,587,525 1,437,540 1,542,110 1,425,086 1,445,939 1,466,714 1,461,303 1,453,385 1,464,707
Formula
Grants
1,271,220 1,162,032 1,233,688 1,150,149 1,171,408 1,184,784 1,181,331 1,174,996 1,183,840
National Reserve
316,305
275,508
308,422 274,937 274,531 281,930 279,972 278,388 280,867
Job Corps
1,357,776 1,399,148 1,454,241 1,509,094 1,564,294 1,575,774 1,602,868 1,606,855 1,610,506
National Programs
Native
Americans
58,436 55,000 57,000 55,636 54,676 54,238 53,696 53,696 53,696
Migrant
and
Seasonal
Farmworkers 74,195 76,770 80,770 77,330 76,874 76,259 79,252 79,252 79,752
Veterans’
Workforce
Investment
7,300 7,300 7,550 7,377 7,505 8,482 7,425 7,435 7,351
Ex-Offender
Activities
13,907 55,000 55,000 54,643 49,705 69,440 68,746 68,746 73,493
Responsible Reintegration. of
Young Offenders (non-add)
13,907
55,000 55,000 54,643 49,705 49,600 49,104 49,104 54,039
Prisoner
Reentry
(non-add)
0
0
0
0
0 19,840 19,642 19,642 19,454
Reintegration of Ex-Offenders
(non-add)
0 0 0 0 0 0 0 0 0
Community-Based Job Training
Grantsa
0 0 0 0 0
124,000 0 0 0
YouthBuildb
0 0 0 0 0 0 0
49,500
58,952
Technical
Assistance
5,000 15,000 15,000 10,548 2,982 2,958 1,980
480
0
Pilots,
Demonstrations
and
Research 65,095 97,432 130,149 68,015 58,547 85,167 29,700 14,700 48,508
Evaluation
9,098 9,098 9,098 9,234 8,986 7,936 7,857 4,921 4,835
CRS-42
Program
FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008
WIA
Title
I
Grand
Total
$5,379,297 $5,480,253 $5,649,355 $5,150,210 $5,157,762 $5,346,754 $5,117,526 $5,131,730 $5,186,387
Source: Compiled by CRS from Department of Labor Congressional Budget Justifications.
a. From FY2006 through FY2008, approximately $125 million per year for the “Community-Based Job Training Grant” (CBJTG) program was drawn from the
Dislocated Workers’ “National Reserve.” Funding for the CBJTG program in FY2005 was drawn from the Dislocated Workers’ “National Reserve” ($125 million)
and from a separate appropriation ($124 million). Prior to FY2005, the CBJTG program did not exist.
b. Prior to FY2007, the YouthBuild program was administered and funded by the Department of Housing and Urban Development.
CRS-43
The Workforce Investment Act and the One-Stop Delivery System
Table B-3. WIA Title II, Adult Education and Family Literacy Act,
Appropriations for FY2009 to FY2012
(dollars in thousands)
Program/Fiscal year
FY2009
FY2010
FY2011
FY2012
Adult Education State Grants total
$554,122
$628,221
$596,120
$596,120
English Literacy and Civics Educationa 67,896
75,000
74,850
74,850
Incentive Grantsb 9,760
11,035
10,448
10,448
Net Allocation for Adult Education State Grantsc 476,466
542,186
510,822
510,822
National Leadership Activities
6,878
11,346
11,323
11,323
National Institute for Literacy
6,468
0
0
0
WIA Title II Grand Total
$567,468 $639,567 $607,443 $607,443
Source: Compiled by CRS Department of Education Budget Justifications, Consolidated Appropriations Act,
2010 (P.L. 111-117), Department of Defense and Ful -Year Continuing Appropriations Act, 2011 (P.L. 112-10),
and the Consolidated Appropriations Act, FY2012 (P.L. 112-74).
a. English Literacy and Civics Education grants are reserved from the appropriation for Adult Education State
Grants, at a level specified in the annual appropriations.
b. Incentive Grants are reserved from the appropriation for Adult Education State Grants, at a level equal to
1.72% of the Adult Education and Family Literacy Act (AEFLA) total, and transferred to the Secretary of
Labor for distribution to states for Title V Incentive Grants under the Workforce Investment Act of 1998
(WIA).
c. Actual Adult Education State Grant al ocations are distributed from the remainder of the appropriation for
Adult Education State Grants after reserving amounts for the English Literacy and Civics Education and
Incentive Grants programs.
Congressional Research Service
44
Table B-4. WIA Title II, Adult Education and Family Literacy Act,
Appropriations for FY1999 to FY2008
(dollars in thousands)
Program/Fiscal
Year
FY1999 FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008
Adult Education State Grants total
$365,000
$450,000
$540,000
$575,000
$571,262
$574,372
$569,672
$563,975
$563,975
$563,975
English Literacy and Civics
Educationa
0 25,500 70,000 70,000 70,000 69,545 69,135 68,582 67,896 67,896
Incentive Grantsb
6,622 8,084 9,641 10,166 10,100 10,152 10,071 9,971 9,968 9,765
Net Allocation for Adult Education
State Grantsc
358,378 416,416 460,359 494,834 491,162 494,675 490,466 485,422 486,111 476,461
National
Leadership
Activities
14,000 14,000 14,000 9,500 9,438 9,169 9,096 9,005 9,005 7,000
National
Institute
for
Literacy
6,000 6,000 6,500 6,560 6,517 6,692 6,638 6,572 6,583 6,583
AEFLA Grand Total
385,000 470,000 560,500 591,060 587,217 590,233 585,406 579,552 579,563 577,558
Literacy Programs for Prisonersd
0 5,000 5,000 5,000 5,000 5,000 5,000
0
0
0
WIA Title II Grand Total
$385,000
$475,000
$565,500
$596,060
$592,217
$595,233
$590,406
$579,552
$579,563
$577,558
Source: Department of Education Congressional Budget Justifications and H.R. 3293 (H.Rept. 111-220 and S.Rept. 111-66).
a. English Literacy and Civics Education grants are reserved from the appropriation for Adult Education State Grants, at a level specified in the annual appropriations.
b. Incentive Grants are reserved from the appropriation for Adult Education State Grants, at a level equal to 1.72% of the Adult Education and Family Literacy Act
(AEFLA) total, and transferred to the Secretary of Labor for distribution to states for Title V Incentive Grants under the Workforce Investment Act of 1998 (WIA).
c. Actual Adult Education State Grant al ocations are distributed from the remainder of the appropriation for Adult Education State Grants after reserving amounts for
the English Literacy and Civics Education and Incentive Grants programs.
d. The Literacy Programs for Prisoners program was authorized by §601of the National Literacy Act of 1991 (NLA), P.L. 102-73. This literacy program, along with the
rest of the NLA, was repealed by §251(a) of WIA in 1998. Its repeal notwithstanding, however, annual appropriations from FY2000 through FY2005 continued this
program, with funding at the indicated levels. http://www.ed.gov/programs/lifeskills/funding.html.
CRS-45
Table B-5. Wagner-Peyser Act, U.S. Employment Service Funding, FY2001-FY2012
(dollars in thousands)
Program FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 ARRA FY2010 FY2011
FY2012
Employment
Service
Grants to
States
$796,735 $796,735 $791,556 $786,887 $780,592 $715,883 $715,883 $703,376 $703,576 $396,000 $703,576 $702,169 $702,169
Labor
Market
Information
150,000
120,000
99,350 98,764 97,974 81,662 63,855
52,059 51,720
0 63,720 63,593 63,593
Subtotal
$946,735
$916,735
$890,906 $885,651 $878,566 $797,545 $779,738
$755,435 $755,296 $396,000 $767,296 $765,762 $765,762
Source: Compiled by CRS from the Omnibus Appropriations Act, 2009 (P.L. 111-8), the American Recovery and Reinvestment Act (P.L. 111-5), the Consolidated
Appropriations Act, 2010 (P.L. 111-117), Department of Defense and Ful -Year Continuing Appropriations Act, 2011 (P.L. 112-10), the Consolidated Appropriations Act,
FY2012 (P.L. 112-74), and Department of Labor Congressional Budget Justifications.
Note: This table does not include funding for Employment Service National Activities.
CRS-46
The Workforce Investment Act and the One-Stop Delivery System
Author Contact Information
David H. Bradley
Specialist in Labor Economics
dbradley@crs.loc.gov, 7-7352
Acknowledgments
The WIA funding tables in Appendix B were prepared by Abigail Rudman, Information Research
Specialist, CRS.
Gail McCallion, Specialist in Social Policy and Ann Lordeman, Specialist in Social Policy, provided
invaluable support in preparing this report.
Congressional Research Service
47