Funding Source Brief - Workforce Investment Act (WIA)

Background
The Workforce Investment Act (WIA) is the nation's main source of funding for employment and training programs. California receives approximately $ 550 million per year from this source. Roughly 85% of total funding is distributed by the state through 52 regional Workforce Investment Boards (WIBs). The remainder is withheld by the state to meet special needs, such as plant closings, and to fund projects of special interest.

WIB's do not usually deliver training services but rather subcontract to training providers meeting set prerequisites, and certified by the state on the Employment Training Providers List (ETPL). Unlike other training providers, community colleges are automatically eligible for inclusion on the ETPL and must only certify individual programs.

Each local WIB funds core services such as job search, resume writing, and counseling at local community centers. In addition, WIBs may develop specific educational or vocational training targeted to three defined groups:

  • Youth (18-24)
  • Un- or underemployed adults;
  • Dislocated workers

Training is typically in the form of Individual Training Accounts (ITA's) where the WIB contracts with training providers such as proprietary schools or community colleges. Under ITA's, the WIB typically fund the "slot" cost of one individual's training, with training allowances generally running from $1500-$5,000 per person. It is important to note that many WIB's will reimburse community colleges only for the cost of individual tuition in FTES funded courses.

Another option now being pursued by some WIBs is to develop cohort-based training customized to the needs of a company or industry. Under this approach WIBs can pay for development of new courses or programs.

Opportunities and Issues
WIA presents a significant opportunity for community colleges. As above, many WIB's will fund training at a rate of $2,500-5,000 per person for short-term (up to six month) training programs. Proprietary schools, recognizing this opportunity, have made seeking WIA funding a priority, and currently receive the majority of WIA funding allocated for training.

While some community colleges have strong relationships with local WIB's, and receive significant funding from this source, many others have not yet benefited from WIA funding. Reasons include:

  • A lack of established relationships with local WIBs or lack of knowledge about WIA opportunities
  • A perception that WIB's will impose tracking, regulatory or performance requirements that don't "fit" with college mission or will cause additional administrative burdens;
  • Enrolling individuals referred by WIA in FTES funded courses can provide little financial benefit to colleges as many WIBs will only cover individual tuition costs.

At the same time however, it is important to recognize that all these apparent barriers can be overcome. As WIA training policy evolves, WIB's are seeking many of the assets that colleges, more than any other training provider, possess-including experienced and knowledgeable faculty, creditable curriculum, facilities for training, and established relationships with business and the community. The challenge for community colleges is to showcase these assets to WIBs, and to deploy them outside the traditional semester-based schedule and model.

Over the next few years, the best opportunity for community colleges seeking workforce system funding is to work with WIB's and employer partners to develop training to meet regional workforce development needs in high-wage, high-growth sectors such as health, life sciences, manufacturing, and information technology. Creating programs in these areas is increasingly a priority for WIBs around the state. Those community colleges that can draw upon current faculty and curriculum to create the kinds of programs WIBs are seeking-cohort-based, short-term, intensive and delivered on a flexible schedule-can receive as much as $50,000-$70,000 per three month course for programs where training is directly linked to high wage jobs. Colleges creating these programs also have the opportunity to enroll trainees in longer-term degree programs, and to create an ongoing training and educational partnership with partner employers.

Another area of likely opportunity is to create new programs targeted to youth outside the traditional education system, such as transitioning foster care youth and students who have dropped out of traditional schooling. Recognizing that current services to this population, such as job search and GED programs, are not leading to long-term success, WIB's are increasingly open to new programs that provide youth with post-secondary education and training, while promoting job placement in fields offering long-term career options.

Example: Bio-tech
Bay Area WIB's have contracted with local community colleges to create customized pre-employment training leading to manufacturing technician positions at biotechnology companies. The training, developed in close collaboration with bio-technology companies, compresses teaching of many of the key skills and competencies delivered in traditional semester based courses into an intensive 250 hour program delivered to dislocated workers over a four month period. The customized, for-credit training program, linked to a paid internship at major bio-tech companies, has had a high success rate with over 80% of pilot class participants placed in jobs paying $33K and above. Bay area colleges have received $55,000-$70,000 in WIA funding for developing and delivering each training class.

To access WIA funding for customized training, colleges need to develop capacity in four key areas:

  • An infrastructure that is responsive to workforce development programs;
  • Partnerships with employers;
  • The ability to integrate academic and vocational education and training;
  • The ability to deliver short-term courses on a flexible schedule.

Next Steps
Community colleges interested in receiving WIA funding should:

  1. Assess current program capacity and faculty interest in providing training in high wage, high growth sectors;
  2. Seek interest among employment partners in development of customized pre-employment training leading to career pathways;
  3. Develop a program framework that meets the following criteria:
    • Provides short-term (6 months or less) training;
    • Incorporates all the skills and competencies needed for entry-level employment;
    • Provides a direct link to specified job opportunities;
    • Provides a link to ongoing education and training;
  4. Approach the regional Workforce Investment Board to determine interest and funding opportunities;
  5. Apply to the ETPL list.