WIOA workforce system vision and first implementation steps

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                                                        CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION               WIOA - Vision
               ADVISORY SYSTEM                          CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR                      OPDR -DPLR
             Washington, D.C. 20210                     DATE
                                                         February 19, 2015

ADVISORY: TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 19-14

TO:           STATE WORKFORCE AGENCIES
              STATE WORKFORCE ADMINISTRATORS
              STATE WORKFORCE LIAISONS
              STATE AND LOCAL WORKFORCE BOARD CHAIRS AND DIRECTORS
              LABOR COMMISSIONERS

FROM:         PORTIA WU /s/
              Assistant Secretary

SUBJECT:      Vision for the Workforce System and Initial Implementation of the Workforce
              Innovation and Opportunity Act

1. Purpose. This Training Employment Guidance Letter (TEGL) lays out the vision for a
   revitalized transformed workforce system as a result of implementation of the Workforce
   Innovation and Opportunity Act (WIOA). Further, it encourages workforce system leaders
   and partners to take action now to support successful implementation to fully realize the
   vision of WIOA. Finally, it provides an overview of upcoming guidance and technical
   assistance to support effective implementation of WIOA.

2. References.
   • WIOA, Public Law (Pub. L.) 113-128, enacted July 22, 2014.
   • Workforce Investment Act of 1998 (WIA), Pub. L. 105-220, et seq.
   • TEGL No. 15-14, Implementation of the New Uniform Guidance Regulations, dated
      December 19, 2014.
   • TEGL No. 12-14, Allowable Uses and Funding Limits of WIA Program Year 2014 Funds
      for Workforce Innovation and Opportunity Act Transitional Activities.
   • Training and Employment Notice (TEN) No. 6-14, Information for Stakeholder
      Engagement for Workforce Innovation and Opportunity Act Implementation.
   • TEN No. 5-14, WIOA Announcement and Initial Informational Resources.
   • WIOA implementation dates, at www.doleta.gov/wioa/pdf/WIOA-Key-Implementation-
      Dates.pdf.
   • TEGL No. 3-14, Implementing a Job-Driven Workforce System.
   • 2 CFR, Part 2900, Uniform Administrative Requirements, Cost Principles, and Audit
      Requirements for Federal Awards.




 RESCISSIONS                                            EXPIRATION DATE
 None                                                   Continuing

3. Vision for WIOA and the Workforce System. WIOA, which supersedes the Workforce
   Investment Act of 1998, presents an extraordinary opportunity to improve job and career
   options for our nation’s workers and jobseekers through an integrated, job-driven public
   workforce system that links diverse talent to businesses. It supports the development of
   strong, vibrant regional economies where businesses thrive and people want to live and work.
   This revitalized workforce system will be characterized by three critical hallmarks of
   excellence:
        The needs of business and workers drive workforce solutions;
        One-Stop Centers (or American Job Centers) provide excellent customer service to
         jobseekers and employers and focus on continuous improvement; and
        The workforce system supports strong regional economies and plays an active role in
         community and workforce development.

   Across the system, continuous improvement is supported through evaluation, accountability,
   identification of best practices, and data driven decision making.

   a. The Needs of Businesses and Workers Drive Workforce Solutions: Businesses
      inform and guide the workforce system and access skilled talent as they shape regional
      workforce investments and build a pipeline of skilled workers. This engagement includes
      leadership in the workforce system and active participation in the development and
      provision of education and training, work-based learning, career pathways, and industry
      sector partnerships. Jobseekers and workers, including those individuals with barriers to
      employment, such as individuals with disabilities, as defined by WIOA, have the
      information and guidance to make informed decisions about training and careers, as well
      as access to the education, training and support services they need to compete in current
      and future labor markets.

   b. One-Stop Centers (American Job Centers or AJCs) Provide Excellent Customer
      Service to Jobseekers, Workers and Employers and Focus on Continuous
      Improvement: One-Stop Centers and partners provide jobseekers, including individuals
      with barriers to employment, such as individuals with disabilities, with the skills and
      credentials necessary to secure and advance in employment with family-sustaining
      wages. Additionally, AJCs enable employers to easily identify and hire skilled workers
      and access other supports, including education and training for their current workforce.
      Further, rigorous evaluations support continuous improvement of AJCs by identifying
      which strategies work better for different populations; states, local areas, and training
      providers remain accountable for performance; high-quality, integrated data informs
      policy maker, employer and jobseeker decision making; and training providers are
      accountable for performance using the data and evidence.

   c. The Workforce System Supports Strong Regional Economies: Meeting workforce
      needs is critical to economic growth. State and local workforce development boards—in
      partnership with workforce, economic development, education, and social service
      organizations at the state, regional and local levels—align education and training
      investments to regional civic and economic growth strategies, ensuring that all jobseekers
      and businesses can access pathways to prosperity.

4. Implementing WIOA: Realizing the Vision. State and local workforce system leaders
   should take immediate action to achieve the vision of modernizing the workforce system and
   ensuring it operates as a comprehensive, integrated and streamlined system that expands
   opportunities for all workers and businesses.

   Key operational and governing principles:

     a. States align programs and ensure integrated services through a unified strategic plan
        and shared governance. Every state collaborates across the core programs (Adult,
        Dislocated Worker and Youth, Wagner-Peyser, Adult Education and Vocational
        Rehabilitation) to create a single unified and integrated strategic state plan. States
        govern the core programs as one system, assessing strategic needs and aligning them
        with service strategies to ensure the workforce system meets employment and skill
        needs of all workers and employers. States also collaborate with One-Stop partner
        programs and other partners at the state and local levels to produce Combined WIOA
        plans. States use the certification process and competition to help achieve this vision
        and ensure continuous improvement.

     b. Workforce boards focus on strategy. As strategic leaders, state and local workforce
        boards, in partnership with governors and chief elected officials, facilitate public-
        private partnerships; support sector strategies and career pathways that advance
        opportunities for all workers and jobseekers, including low-skilled adults, youth, and
        individuals with disabilities; foster innovation; and ensure streamlined operations and
        service delivery excellence.

     c. States and local areas align workforce programs with regional economic
        development strategies. Local boards, program leaders, and elected officials share a
        common vision and design and govern the system regionally; create unified regional
        and local plans integrating education, training, support services, and other workforce
        services across the core programs; align workforce policies and services with regional
        economies; and support sector strategies tailored to their needs.

     d. The One-Stop Center network and partner programs are organized to provide high-
        quality services to individuals and employers. State and local boards, One-Stop Center
        operators and partners must increase coordination of programs and resources to support
        a comprehensive system that seamlessly provides integrated services that are accessible
        to all jobseekers, workers, and businesses.

     e. States and local areas promote accountability and transparency, and data drives
        decisions and informs customer choice. State and local leaders ensure investments in
        employment, education and training programs are evidence-based and data-driven, and
        programs are accountable to participants and taxpayers. This includes evaluating
        approaches and aligning performance accountability and data systems to support
        program management, facilitate common case management systems, and inform policy.
        State and local areas provide robust, validated data to inform strategy, operations, and
        evaluations. Information technology systems are designed to reduce burden and
        present integrated information to support services, inform customer choice and guide
        strategy development. Technological strategies for improving the quality of services

         are adopted, including advances in digital literacy skills and models for accelerating
         skill acquisition and credential attainment of jobseekers.

5. Taking Action Now. Most WIOA provisions related to DOL-administered programs take
   effect in Program Year (PY) 2015, which starts July 1, 2015. ETA strongly advises states
   and local areas to begin planning and implementing WIOA transition activities now. As
   discussed further in Section VI, ETA will issue regulations and additional guidance; in
   addition, the legislation and the technical assistance tools currently available support initial
   implementation and transitional activities. While some provisions do not go into effect until
   PY 2016 (July 1, 2016), such as the unified or combined state plans and the performance
   accountability system, states should be preparing now for the ultimate implementation of
   these provisions.

   Beyond complying with the requirements of the new law, WIOA offers an opportunity to
   continue to modernize the workforce system and create a customer-centered system: where
   the needs of business and workers drive workforce solutions; where One-Stop Career Centers
   provide excellent customer service to all jobseekers and businesses; and where the workforce
   system supports strong regional economies. To realize this vision, workforce system leaders
   are asked to step back and re-envision how they conduct business and restructure activities
   accordingly.

   Below are recommended actions workforce system leaders and partners are strongly
   encouraged to take now to move toward full implementation of the law. These should be
   considered in any state and local transition discussions to ensure states and local areas are
   well positioned on July 1, 2015 to implement WIOA. The list is not exhaustive, and each
   state and local area should fully assess its own situation and requirements and determine the
   activities it will need to undertake to support a full and effective transition.

      Identify and allocate funding for transitional activities. TEGL 12-14, Allowable Uses
       and Funding Limits of Workforce Investment Act Program Year (PY) 2014 funds for
       Workforce Innovation and Opportunity Act (WIOA) Transitional Activities explains that
       states and locals may use up to two percent of the WIA’s Fiscal Year 2014 Youth,
       Adult, and Dislocated Worker formula funds to transition to WIOA. The TEGL
       identifies nine priority areas for transition activities more fully described in this
       document and also details how to incur and report transition activities costs. Please
       consult TEGL 12-14 in tandem with this guidance. Also, please note the importance of
       maintaining a balance between exercising the transitional funding authority and
       continuing to serve current system customers effectively.

      Build new, and strengthen existing, partnerships. WIOA requires states and local
       areas to enhance coordination and partnerships with local entities and supportive
       service agencies for strengthened service delivery, including through unified state plans
       and combined state plans. These plans should include statutorily specified additional
       partners in the planning process; establish a set of system performance measures that
       apply to all core programs; strengthen linkages between a myriad of complementary
       programs within the One-Stop Center system; require co-location of employment
       services in One-Stop Centers; add One-Stop Center partners, such as Temporary
       Assistance for Needy Families (TANF) and the Jobs for Veterans State Grants (JVSG)

   programs; enhance the role of apprenticeship; clarify partner programs support for
   system infrastructure costs and other common costs; and ask the system to work
   regionally and across local workforce development areas.

   Additionally, successful implementation of many of the approaches called for within
   WIOA, such as career pathways and sector strategies, require robust relationships
   across programs and with businesses, economic development, education and training
   institutions, including community colleges and career and technical education local
   entities and supportive service agencies. As workforce system leaders step back and
   explore their approach for moving toward the WIOA vision, robust partnerships will be
   required to successfully enable our dual customers—jobseekers and employers—to
   drive solutions, to ensure these customers receive excellent services, and to effectively
   support economic regions.

 Engage with core programs and other partners to begin strategic planning. Local
  and state leaders should engage in strategic planning and find new ways to align core
  and other key programs, such as Registered Apprenticeship, Job Corps, JVSG, TANF,
  Perkins Career and Technical Education programs, Unemployment Insurance, and
  required partners under the Act. It is vital to understand the new unified and combined
  state plan requirements, and assess whether the right partners are at the table, and are
  participating fully as equal partners in the design and coordination of the programs and
  services within the workforce system. Strategic planning should include concrete goals
  as well as a vision of success: how the workforce system should ideally function in
  each state to best meet WIOA goals. We encourage local and state leaders to include
  state economic development staff and alignment of workforce and economic
  development goals.

 Reassess One-Stop delivery system. With your WIOA partners, reassess the One-Stop
  delivery system and what is needed to achieve seamless service delivery models that
  place the customer at the center of how programs are designed and delivered. Consider
  operations, such as “bricks and mortar” and information technology infrastructures in
  light of new requirements: core and mandatory One-Stop Center partners; co-location
  of Wagner-Peyser employment services; procedures and policies to transition to
  selecting One-Stop Center operators through competitive procurement; a Memoranda
  of Understanding to address One-Stop Center infrastructure funding; physical and
  programmatic accessibility requirements; and the vision of WIOA and state established
  goals. These actions will better position states and local workforce development areas
  to better tailor the state’s plan for infrastructure funding and certification of One-Stop
  Centers.

 Develop plans to ensure workforce investment boards become WIOA compliant.
  State and local boards must meet the new membership requirements and be able to
  carry out new functions by July 1, 2015. Chief elected officers should review the new
  requirements to reconstitute and certify boards. While a business majority is required
  by WIOA and must be maintained for the transition period of July 22, 2014 through
  June 30, 2015, suggested strategies may be employed to bring board membership into
  compliance by July 1, 2015, such as establishing standing committees and transition
  board members. When establishing standing committees, we strongly encourage

   focusing on serving youth, low skilled adults, Indians and Native Americans,
   individuals with disabilities and other relevant priorities for the local area. Also, local
   areas can reach out to the state to signal interest in initial designation or re-designation
   that may result in a new area.

 Develop transition plans. Transition to WIOA and realizing its vision is complex, and
  will require substantial activities leading up to July 1, 2015 and after. We encourage
  states and local areas to develop transition plans that will allow for transition
  preparation and tracking of transition and implementation progress and use these to
  guide implementation of new WIOA requirements. Also, consider customer impacts,
  such as how current WIA participants are impacted in WIOA transition. ETA is
  developing several technical assistance tools to assist states and locals in this area.

 Prepare for fiscal and program changes for transition across legislations. There are
  several fiscal and program changes that have been recently issued that require attention
  as part of transition planning: the new Office of Management and Budget Uniform
  Guidance was published in the Federal Register on December 19, 2014 and ETA issued
  associated guidance in TEGL 15-14, also dated December 19, 2014. Financial staff and
  other applicable staff must become familiar with the requirements of this guidance and
  the impact on the state system and the transition from WIA to WIOA. States should
  also prepare for 100 percent transfer between adult and dislocated worker formula
  funds.

 Assess state laws. It is important to review state legislation and identify areas that may
  conflict with WIOA to develop plans and strategies that resolve these conflicts. When
  state and federal laws conflict, federal laws take precedence.

 Review Eligible Training Provider processes. Review Eligible Training Provider List
  processes and assess how they need to be updated to reflect new eligibility criteria.
  Examples include: adding new procedures for the inclusion of Registered
  Apprenticeship programs; taking into account the need to ensure access to training
  throughout the state, including rural areas; and ensuring the ability of providers to
  provide training to individuals who are employed and individuals with barriers to
  employment. States must also take steps to ensure that eligible training providers are in
  a position to provide required outcomes information for individuals served by their
  programs by July 1, 2015. ETA will be providing additional technical assistance to
  support such implementation.

 Ensure new or existing youth service contract operators support the 75 percent out-
  of-school youth and the 20 percent work experience expenditure rate requirements.
  States and locals that are not currently meeting the 75 percent out-of-school youth
  requirement must begin to prepare for this transition. ETA will provide guidance and
  technical assistance to aid with this transition, including further guidance on use of
  funds, productive approaches for serving out-of-school youth, as well as alternative
  resources for serving in-school youth. In the meantime, states, local areas and federal
  partners should develop plans to address this requirement. States will receive their first
  WIOA allotment for the youth programs in April 2015 and will begin full
  implementation of WIOA for the Youth Program at that time

6. Timeframe of Anticipated Regulations, Guidance & Technical Assistance. ETA is
   committed to continuing its collaborative work with its Federal partners and all workforce
   system stakeholders and grantees to support WIOA implementation. Generally, the WIOA
   provisions take effect on July 1, 2015, with the exception of the provisions in title IV, which
   became effective on enactment, and targeted exceptions.

   Two Notices of Proposed Rulemaking (NPRMs) will be issued in early 2015: a joint NPRM
   with the Department of Education which will cover joint activities, including state planning,
   performance, and provisions covering the One-Stop system; and a second which will cover
   the remaining ETA-administered provisions in WIOA. (Concurrently, three additional
   NPRMs will be published by the Department of Education, one implementing Adult
   Education and Literacy and two implementing WIOA amendments to the Rehabilitation Act
   of 1973.) These NPRMs will provide notice of the current thinking by ETA and the
   Department of Education and an opportunity for public comment. These NPRMs will be
   published in the Federal Register and posted on www.regulations.gov. Instructions on how
   to comment on the NPRMs are included in the preambles of each proposed rule. ETA and
   the Department of Education will analyze these public comments and develop and issue Final
   Regulations by early 2016.

   As many provisions of the law go into effect July 1, 2015, ETA will issue Operating
   Instructions in spring 2015 to support such implementation. ETA also intends to issue
   operating and programmatic guidance and continue to disseminate technical assistance
   beginning in early 2015 and throughout implementation. We will continue to gather
   stakeholder input for guidance development and technical assistance needs and convene
   additional regional events and conferences to provide more in-depth learning and networking
   opportunities.

   The DOL’s official Website for additional information on WIOA is www.doleta.gov/wioa.
   In addition, ETA has created a new WIOA collection page at https://wioa.workforce3one.org
   which currently houses existing technical assistance resources that are relevant for WIOA
   implementation, and will house more technical assistance resources and guidance as they are
   developed. These pages will be updated as new information is available.

7. Inquiries. Questions regarding this guidance should be directed to the appropriate ETA
   regional office or through the ETA email address established for this purpose:
   [email protected]. ETA monitors this account daily, and may respond to inquiries
   directly or through general communications such as official guidance, webinars, and public
   Q&A documents. You can also contact your regional office for any inquiries or feedback.