2018–2019 WIOA state plan modifications

CLASSIFICATION
    EMPLOYMENT AND TRAINING ADMINISTRATION                             WIOA State Planning
                ADVISORY SYSTEM                                        CORRESPONDENCE SYMBOL
           U.S. DEPARTMENT OF LABOR                                    OWI
              Washington, D.C. 20210                                   DATE
                                                                       January 24, 2018

ADVISORY:           TRAINING AND EMPLOYMENT GUIDANCE LETTER WIOA NO. 6-17
                    OPERATING GUIDANCE for the WORKFORCE INNOVATION AND
                    OPPORTUNITY ACT (referred to as WIOA)

TO:                 STATE WORKFORCE AGENCIES
                    STATE WORKFORCE ADMINISTRATORS
                    STATE WORKFORCE LIAISONS
                    STATE AND LOCAL WORKFORCE BOARD CHAIRS AND DIRECTORS
                    STATE LABOR COMMISSIONERS
                    STATE LABOR MARKET INFORMATION DIRECTORS
                    SENIOR COMMUNITY SERVICE EMPLOYMENT PROGRAM
                    GRANTEES
                    STATE APPRENTICESHIP AGENCIES
                    STATE DIRECTORS OF THE OFFICE OF APPRENTICESHIP
                    STATE DIRECTORS FOR VETERANS’ EMPLOYMENT AND TRAINING
                    STATE UNEMPLOYMENT INSURANCE DIRECTORS
                    STATE WORKFORCE AGENCY VETERANS COORDINATORS

FROM:               ROSEMARY LAHASKY /s/
                    Deputy Assistant Secretary

SUBJECT:            Modification Requirements for Workforce Innovation and Opportunity Act
                    (WIOA) Unified and Combined State Plans

1. Purpose. To provide guidance to States, territories, and outlying areas regarding the two-
   year modification requirements, submission process, and deadline for submitting the two-
   year modifications for the WIOA Unified and Combined State Plans for Program Years
   (PYs) 2018 and 2019. States must submit a WIOA Unified or Combined State Plan two-year
   modification to the U.S. Departments of Labor (DOL) and Education (ED) (collectively,
   Departments) by March 15, 2018.

2. References. See Attachment I.

3. Background. WIOA requires the Governor of each State1 to submit a Unified or Combined
   State Plan to the Secretary of Labor that includes a four-year strategy for the State’s

1 For purposes of the Unified and Combined State Plans, the term “State” refers to the 50 States, the District of
Columbia, Puerto Rico, American Samoa, Guam, the U.S. Virgin Islands, the Northern Mariana Islands, and, as
appropriate for certain programs, the Republic of Palau (20 CFR 676.105(e), 34 CFR 361.105(e), and 34 CFR
463.105(e)).


 RESCISSIONS                                                          EXPIRATION DATE
 None                                                                 Continuing

   workforce development system, and to submit a modification to that plan after two years.
   States must have Federally-approved State Plans to receive funding for the WIOA six core
   programs (Adult, Dislocated Worker, and Youth Formula programs (WIOA Title I), Adult
   Education and Family Literacy Act (AEFLA) program (WIOA Title II), Wagner-Peyser
   Employment Service program (WIOA Title III), and Vocational Rehabilitation (VR)
   program (WIOA Title IV)).

   Although all States have approved WIOA Unified or Combined State Plans for PYs 2016-
   2019, WIOA requires that States review their plans every two years and update State Plan
   strategies based on changes in the labor market and economic conditions or other factors
   affecting the implementation of the State Plan. In early 2016, the Departments issued joint
   guidance titled Workforce Innovation and Opportunity Act (WIOA) Requirements for Unified
   and Combined State Plans in TEGL No. 14-15 (DOL), ED Office of Career, Technical, and
   Adult Education (OCTAE) Program Memorandum 16-1, and ED Rehabilitation Services
   Administration (RSA) Policy Directive (PD)-16-03. States may review previously issued
   joint guidance for a more comprehensive discussion of WIOA Unified and Combined State
   Plan requirements and expectations.

   This guidance—developed jointly by the Departments — provides information and
   instructions to States on the WIOA planning requirements for the required two-year
   modification, explains technical adjustments to the planning requirements, and instructs
   States regarding submission procedures and deadlines. The Departments recognize that
   States have been deeply engaged in implementing their initial four-year Unified or Combined
   State Plan for the past two years, and since that time the Departments have published final
   regulations, additional guidance, and technical assistance. With this information, States are
   better positioned to make updates to State Plans that more fully incorporate the opportunities
   and innovations that the law envisioned. The Departments may provide additional
   instructions to States regarding program-specific requirements.

4. Planning Requirements. States must use the Information Collection Request (ICR)
   Workforce Innovation and Opportunity Act (WIOA) Unified and Combined State Plan
   Requirements approved under Office of Management and Budget (OMB) control number
   1205-0522 to develop and submit the two-year modification, as well as future four-year
   WIOA Unified or Combined State Plans. A copy of the ICR, which complies with statutory
   requirements set forth in sections 102 and 103 of WIOA, is available at
   https://www.doleta.gov/wioa/State_Plan_Resources.cfm. A copy of these requirements is also
   available via the online portal hosted by ED’s RSA, discussed in Section 6 of this guidance.

   OMB approved a non-material change to the ICR on December 18, 2017. These non-
   material changes are minor and:

          Clarified required information under section VI.d, which requires single-area states to
           “submit any information required in the local plan.”
          Refined language regarding requirements for the Title I Youth program to more
           clearly identify expectations for articulation of youth strategies as well as required
           policies.

          In the AEFLA portion of the ICR, clarified that States are required to submit
           information to address section 427 of the General Education Provisions Act. This
           submission requirement exists under a separately approved ICR (OMB control no.
           1894-0005).
          Added an assurance, applicable to AEFLA, regarding the statutory requirement in
           section 502 of WIOA concerning the Buy America Act.

   The Departments also expect States to update plans to reflect implementation of WIOA and
   to improve areas of the plan impacted by the publication of jointly-administered regulations
   and guidance, or changes in circumstances in the State, since the initial State Plan submission
   in March 2016. For example, States may be better able to describe their progress in revising
   data collection and reporting systems as well as strengthening program strategies reflecting
   current economic and labor market conditions throughout State regions.

5. Requirements for Stakeholder Collaboration and Comment. Stakeholder collaboration,
   review, and comment are key requirements of the planning process, including the two-year
   modification process. State Workforce Development Boards (State Boards) are responsible
   for assisting the Governor in the development, implementation, and modification of the State
   Plan and for convening all relevant programs, required partners, and stakeholders to
   contribute to the plan. The State Plan must be developed with the assistance of the State
   Board, as required by sec. 101(d) of WIOA, and in coordination with administrators that
   have optimum policymaking authority for the core programs and required one-stop partner
   programs. For Combined State Plans, the portions of the plan that cover partner programs
   other than the core programs are subject to any public comment requirements applicable to
   those partner programs (20 CFR 676.143(c)(3), 34 CFR 361.143(c)(3), and 34 CFR
   463.143(c)(3)).

   States must provide the opportunity for public comment, which allows interested
   stakeholders to participate actively, effectively, and transparently in the development of the
   plan. The Governor must ensure that the State Plan is developed with an opportunity for
   input from representatives of:

          Local Workforce Development Boards and chief elected officials;
          businesses;
          representatives of labor organizations;
          community-based organizations;
          adult education providers;
          institutions of higher education;
          other stakeholders with an interest in the services provided by the six core programs;
           and
          the general public, including individuals with disabilities.

   Programs included in the Combined State Plan may require consultation with other specific
   individuals or groups. The State Board also must make information regarding the State
   planning process available to the public through electronic means and by holding regularly

   occurring open meetings in accordance with State law prior to the submission of the plan
   (WIOA sec. 101(g) and 20 CFR 676.130, 34 CFR 361.130, and 34 CFR 463.130).

6. Instructions for Plan Submission. States must submit their State Plans, including the two-
   year modifications, via the online portal hosted by ED’s RSA, which allows the entire State
   Plan to be available at the same time to multiple Federal program reviewers. The State Plan
   portal is available, along with other State Plan resources, at
   https://rsa.ed.gov/login.cfm?mode=form&usp=Y#skipnav. Instructions on how to request
   State user accounts are available on the web link provided on this site. The Departments will
   deliver training on the portal to State users, and Federal staff will be available to provide
   technical guidance and to authorize individuals from the States to have read-only, view and
   edit and/or submit access to the State Plan portal, as appropriate. Each Governor must
   designate a primary official to serve as the final submitter on behalf of all included programs
   for the State Plan. Please notify the Departments of such designation via correspondence in
   an email to [email protected].

   The portal design permits multiple users within a State to enter portions of the State Plan at
   the same time, thereby allowing program partners to enter content that is common to all State
   Plan partners as well as content that is specific to their program directly. In States where
   there is a separate VR agency serving the blind, each VR agency must complete a separate
   VR services portion of the Unified or Combined State Plan.

   States may revise their currently approved State Plan in the portal, using editing features
   similar to those found in Microsoft Word. Depending on the level of modification needed for
   the State Plan, States may prefer to delete all or much of the existing text and input updated
   material. To enter charts and graphs in the labor market analysis section, or wherever data is
   included or graphically depicted in the narrative, the state may enter those using html coding.
   Additional information and instructions are available at https://rsa.ed.gov/using-the-
   portal.cfm.

   While multiple individuals in the State may enter content into the portal, only one State
   individual may submit the entire plan on behalf of all included programs through the portal
   for Federal review. The portal includes a certification that the official State “submitter” has
   the authority to do so.

   States that include the Carl D. Perkins Career and Technical Education Act (Perkins)
   program as part of their Combined State Plans will submit to the WIOA State Plan portal
   their currently approved Perkins State Plan, including any revisions the State determines are
   necessary. The portal will then redirect States from the WIOA State Plan portal via a link to
   the Perkins State Plan portal. On the Perkins State Plan portal, States will submit: (1)
   Request to Extend Perkins State Plan; (2) updated budget; and (3) proposed performance
   levels for the upcoming PY. ED will provide State Career and Technical Education
   Directors training, passwords, and technical support to upload their information into the
   WIOA State Plan portal and the Perkins State Plan portal.

   States that include Supplemental Nutrition Assistance Program (SNAP) Employment and
   Training (E&T) as part of their Combined State Plan will submit their SNAP E&T specific
   State Plans into the WIOA State Plan portal, but must submit component details, participant
   levels, operating budget and fiscal year planned program costs to their Food and Nutrition
   Service (FNS) Regional Office.

7. Performance Negotiations for Core Programs. The Departments will issue guidance on
   the WIOA performance accountability system negotiation process in an issuance separate
   from this guidance. For this two-year modification to the State Plans, the same indicators of
   performance that States negotiated for PYs 2016 and 2017 will be negotiated for PYs 2018
   and 2019. For some indicators for certain programs, there are insufficient data available on
   which to build the required statistical adjustment model and, consequently, to establish levels
   of performance using the statistical adjustment model as part of the negotiation process. The
   Departments will continue to use a “phased-in” approach to set levels of performance for
   certain indicators for specific programs. The appendix in the Unified and Combined State
   Plan ICR discussed in Section 4, and in Attachment II of this guidance, reflects this approach
   and displays what indicators/programs the Departments will negotiate for PYs 2018 and
   2019. See Attachment II of this guidance for more instructions on establishing performance
   levels and acceptable baseline indicators.

8. Special Instructions for Single-Area States. Item VI.d, in the Title I program-specific
   State Plan requirements in the Unified and Combined State Plan ICR discussed in Section 4
   of this guidance is directed at single-area states. It requires them to “submit any information
   required in the local plan” with the submission of its State Plan as required by WIOA sec.
   106(d)(2). With the initial State Plan submission, DOL exercised its transition authority
   provided in WIOA sec. 503 to delay the requirement that single-area states include a local
   plan with their initial four-year State Plan submission until DOL provided guidance to those
   specific States. Single-area states must now complete the above-referenced requirements, in
   accordance with the ICR, and update their State Plan to reflect particular requirements of
   local plans as part of the two-year modification process.

9. Action Requested. In accordance with the ICR, Workforce Innovation and Opportunity Act
   (WIOA) Unified and Combined State Plan Requirements, States must submit a WIOA
   Unified or Combined State Plan two-year update to the Departments by March 15, 2018,
   using the web portal described in Section 6 of this guidance. Once submitted, the
   Departments will review and provide a decision within 90 days for the core programs.

10. Resources and Tools.

      WIOA Related Guidance,
       https://wdr.doleta.gov/directives/All_WIOA_Related_Advisories.cfm
      Resources and Tools for Workforce Professionals, https://www.doleta.gov/usworkforce/
      Guide to State and Local Workforce Data, Third Edition,
       https://lmi.workforcegps.org/resources/2015/04/03/15/48/Guide_to_State_and_Local_W
       orkforce_Data

      TEN 1-15 Promising Practices in Achieving Universal Access and Equal Opportunity: A
       Section 188 Disability Reference Guide
       https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=3182
      Applying Labor Market Information to Service Delivery Design
       https://lmi.workforcegps.org/resources/2015/04/30/10/47/Putting_LMI_to_Work_in_Em
       ployment_and_Training_Programs
      State Plan Resources, https://www.doleta.gov/wioa/State_Plan_Resources.cfm
      Access to State Plan Portal, https://rsa.ed.gov/
      WIOA State Plans approved in PY 2016,
       https://www2.ed.gov/about/offices/list/osers/rsa/wioa/state-plans/index.html
      Workforce GPS, https://www.workforcegps.org


11. Inquiries. Direct inquiries to the relevant Employment and Training Administration
    Regional Office.

12. Attachments.
        Attachment I — References
        Attachment II — Instructions for Program Years (PYs) 2018 and 2019: Performance
          Goals for the Core Programs

Attachment (official PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2018/TEGL_6-17_Attachment_I_Acc.pdf)

ATTACHMENT I
References

•   Workforce Innovation and Opportunity Act (WIOA) (Pub. L. 113-128) (July 22, 2014)
•   Joint Rule for Unified and Combined State Plans, Performance Accountability, and the One-
    Stop System Joint Provisions; Final Rule (WIOA Joint Final Rule) published at 81 FR 55792
    (Aug. 19, 2016)
•   Employment and Training Administration, Workforce Innovation and Opportunity Act; Final
    Rule (WIOA DOL Final Rule ) published at 81 FR 56071 (Aug. 19, 2016)
•   State Vocational Rehabilitation Services Program; State Supported Employment Services
    Program; Limitations on Use of Subminimum Wage — Final Rule (WIOA Office of Special
    Education and Rehabilitative Services (OSERS) Final Rule) Published at 81 FR 55630
    (August 19, 2016)
•   WIOA: Miscellaneous Program Changes — Final Rule (WIOA OSERS Final Rule)
    Published at 81 FR 55562 (August 19, 2016)
•   Programs and Activities Authorized by the Adult Education and Family Literacy Act (Title II
    of WIOA) — Final Rule (WIOA OCTAE Final Rule) Published at 81 FR 55525 (August 19,
    2016)
•   Training and Employment Guidance Letter (TEGL) No. 14-15, “Workforce Innovation and
    Opportunity Act (WIOA) Requirements for Unified and Combined State Plans,” dated March
    4, 2016
•   Program Memorandum OCTAE 16-1, “Workforce Innovation and Opportunity Act (WIOA)
    Requirements for Unified and Combined State Plans,” dated March 10, 2016
•   RSA PD-16-03, “Workforce Innovation and Opportunity Act (WIOA) Requirements for
    Unified and Combined State Plans,” dated March 9, 2016
•   Workforce Innovation and Opportunity Act (WIOA) Unified and Combined State Plan
    Requirements, OMB Control Number 1205-0522
•   Training and Employment Notice (TEN) No. 20-16, “Announcing the publication and
    effective date of the Section 188 WIOA Nondiscrimination and Equal Opportunity
    Regulations (29 CFR Part 38) Final Rule in the Federal Register,” dated December 2, 2016
•   TEN No 10-15, “Workforce Innovation and Opportunity Technical Amendments Act,” dated
    September 17, 2015
•   Unemployment Insurance Program Letter (UIPL) No. 17-14, Revised Employment and
    Training (ET) Handbook No. 336, 18th Edition: “Unemployment Insurance (UI) State
    Quality Service Plan (SQSP) Planning and Reporting Guidelines”
•   UIPL No. 17-15, Additional Planning Guidance for the Fiscal Year (FY) 2016
    Unemployment Insurance (UI) State Quality Service Plan (SQSP)
•   UIPL No. 20-15, Unemployment Insurance and the Workforce Innovation and Opportunity
    Act of 2014
•   Section 4215 of Title 38, United States Code (38 U.S.C. 4215), Priority of service for
    veterans in Department of Labor job training programs
•   Veterans’ Program Letter (VPL) 05-14 (https://www.dol.gov/vets/VMS/VPLs/VPL-05-
    14.pdf), Jobs for Veterans State Grants Application and Planning Instructions for Fiscal
    Years 2015-2019, issued July 7, 2014

Attachment (official PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2018/TEGL_6-17_Attachment_II_Acc.pdf)

ATTACHMENT II
Instructions for Program Years (PYs) 2018 and 2019: Performance Goals for the Core
Programs

Each State submitting a Unified or Combined Plan is required to identify expected levels of
performance for each of the primary indicators of performance for the two years covered by this
Plan modification, except as provided below. The State is required to reach agreement with the
Secretary of Labor, in conjunction with the Secretary of Education, on State negotiated levels of
performance for the indicators for the two years of the State Plan modification.

States have one year of data available under the performance accountability system in Section
116 of WIOA for Title I, II, and III programs; therefore, the Departments will continue to use the
transition authority under WIOA sec. 503(a) to designate certain primary indicators of
performance for certain programs as “baseline” indicators in the State Plan modification
submission. A “baseline” indicator is one for which States will not propose an expected level of
performance in the plan submission and will not come to agreement with the Departments on
negotiated levels of performance. “Baseline” indicators will not be used to determine failure to
achieve adjusted levels of performance for purposes of sanctions. A joint guidance document is
forthcoming regarding the applicability of sanctions provisions under WIOA. The selection of a
certain primary indicator for designation as a baseline indicator was determined on the likelihood
of a State having adequate data on which to make a reasonable determination of an expected
level of performance, and these designations vary across core programs.

States are expected to collect and report on all indicators, including those that have been
designated as “baseline.” The actual performance data reported by States for indicators
designated as “baseline” in the first two years of the Unified or Combined State Plan and in the
two years under the State Plan modification will serve as baseline data to support appropriate
development and refinements to the statistical adjustment model, as needed, and to establish
performance levels in future years.

Each core program must submit an expected level of performance for each indicator, except for
those indicators that are listed as “baseline” indicators below.

For this two-year State Plan modification, the Departments will work with States during the
negotiation process to establish the negotiated levels of performance for each of the primary
indicators for the core programs.

Baseline Indicators for the Next Two Years of the Plan

Title I programs (Adult, Dislocated Worker, and Youth):
          Median Earnings (Youth)
          Measurable Skill Gains
          Effectiveness in Serving Employers
Title II program (Adult Education and Family Literacy Act):
          Employment in the 2nd quarter
          Employment in the 4th quarter

          Median Earnings
          Credential Attainment
          Effectiveness in Serving Employers
Title III program (Wagner-Peyser):
          Effectiveness in Serving Employers
Title IV program (Vocational Rehabilitation):
          Employment in the 2nd quarter
          Employment in the 4th quarter
          Median Earnings
          Credential Attainment
          Measurable Skill Gains
          Effectiveness in Serving Employers

Under WIOA, States may identify additional indicators in the State Plan and may establish levels
of performance for each of those additional State indicators. Please identify any such State
indicators under Additional Indicators of Performance.