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Regional Delivery of Workforce Development

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Title: Regional Delivery of Workforce Development


1
Regional Delivery of Workforce Development
  • John Twomey
  • Workforce Development Network
  • April 26, 2007

2
Purpose of Todays Session
  • For over 40 years, workforce development in the
    United States has had largely defined roles
    Federal, State, and Local
  • Recently a new emphasis has been placed on
    Regional connections between Economic Development
    and Workforce Development
  • I hope this session will give you something to
    think about, and allow you to help shape these
    efforts in your state

3
What Well Talk About Today
  • Will there be a defined regional role in WIA
    Reauthorization?
  • Where is this push for greater emphasis on
    regional coming from?
  • Geography and Boundaries
  • Some Regional Models
  • What are your next steps
  • Resources to dig a little deeper

4
Whats the Big Deal.
  • People have been talking about Regional
    forever
  • Weve been doing regional projects for a long
    time, whats the big deal

5
What does current WIA law say about regional
delivery ??
  • Section 101. Definitions
  • (18) Labor market area.--The term labor
    market area'' means an economically integrated
    geographic area within which individuals can
    reside and find employment within a reasonable
    distance or can readily change employment
    without changing their place of residence. Such
    an area shall be identified in accordance with
    criteria used by the Bureau of Labor Statistics
    of the Department of Labor in defining such areas
    or similar criteria established by a Governor.

6
What does current WIA law say about regional
delivery ??
  • SEC. 134. USE OF FUNDS FOR EMPLOYMENT AND
    TRAINING ACTIVITIES. (a) Statewide Employment
    and Training Activities.-- (2)
    Required statewide employment and training
    activities.-- (B) Other
    required statewide employment and training
    activities.- (iii) providing incentive grants to
    local areas for regional cooperation
    among local boards (including local boards for a
    designated region as described in section
    116(c)), for local coordination of activities
    carried out under this Act, and for exemplary
    performance by local areas on the
    local performance measures

7
What does current WIA law say about regional
delivery ??
  • SEC. 116. LOCAL WORKFORCE INVESTMENT AREAS.(c)
    Regional Planning and Cooperation.-- (1)
    Planning.--As part of the process for developing
    the State plan, a State may require regional
    planning by local boards for a designated region
    in the State. The State may require the local
    boards for a designated region to participate in
    a regional planning process that results in the
    establishment of regional performance measures
    for workforce investment activities authorized
    under this subtitle. The State may award regional
    incentive grants to the designated regions that
    meet or exceed the regional performance measures.

8
From WIA Regulations
  • Sec. 661.290 Under what circumstances may States
    require Local Boards to take part in regional
    planning activities? (a) The State may require
    Local Boards within a designated region (as
    defined at 20 CFR 660.300) to
  • (1) Participate in a regional planning process
    that results in regional performance measures for
    workforce investment activities under title I of
    WIA. Regions that meet or exceed the regional
    performance measures may receive regional
    incentive grants
  • (2) Share, where feasible, employment and other
    types of information that will assist in
    improving the performance of all local areas in
    the designated region on local performance
    measures and

9
From WIA Regulations
  • (3) Coordinate the provision of WIA title I
    services, including supportive services such as
    transportation, across the boundaries of local
    areas within the designated region. (b) Two or
    more States may designate a labor market area,
    economic development region, or other appropriate
    contiguous subarea of the States as an interstate
    region. In such cases, the States may jointly
    exercise the State's functions described in this
    section. (c) Designation of intrastate
    regions and interstate regions and their
    corresponding performance measures must be
    described in the respective State Plan(s). For
    interstate regions, the roles of the respective
    Governors, State Boards and Local Boards must be
    described in the respective State Plans.
    (d) Unless agreed to by all affected chief
    elected officials and the Governor, these
    regional planning activities may not substitute
    for or replace the requirements applicable to
    each local area under other provisions of the
    WIA. (WIA sec. 116(a).)

10
IF WIA is reauthorized this year, will there be
some new legislated regional role ?
  • Senator Kennedy is a strong supporter of local
    control, but having said that. (some regional
    approach) is not anathema to us J. D. LaRock
    to NACo leadership March 3, 2007
  • If there are too many competing positions from
    groups, WIA Reauthorization might go to the back
    of the line Beth Buelhmann to U. S. Conference
    of Mayors Workforce Development Council, Jan.
    07 (specifically speaking to regional question)
  • Were looking at some regional delivery, probably
    incentivized- Congressman Hinojosas workforce
    staff- March 2007

11
IF WIA is reauthorized this year, will there be
some new legislated regional role ?
  • The competitiveness debate is pushing WIA toward
    reauthorization
  • The CEO of Intel told us that We have done some
    forecasting that has convinced us Intel can be a
    very successful company even if we never hire
    another American James Bergeron, counsel to
    Congressman Buck McKeon, January 2007
  • We are going to pass WIA Reauthorization this
    year, working with Chairman Charles Rangel, and
    in conjunction with TAA- Congressman George
    Miller March 2007

12
The Regional Push Coming from
  • Council on Competitiveness
  • In our global economy place matters more than
    ever. Even as technology, capital, and knowledge
    diffuse internationally, the levers of national
    prosperity are, in fact, becoming more
    localized.
  • As talented people and new ideas become the most
    critical drivers of economic growth, regional
    economic conditions have assumed greater
    importance.
  • Regions that can attract talented residents and
    support the development of highly innovative
    firms will support great prosperity
  • Regions that rely on low cost labor and basic
    extraction of natural resources will not.

13
The Regional Push Coming from Council on
Competitiveness
  • Basically, the Council on Competitiveness was one
    of the earliest drivers here- their thesis is
    that a regional effort to commercialize
    university research is a must!!
  • They have launched RII Regional Innovation
    Initiative
  • RII is the focal point of Council efforts to
    expand (their) message to more regions and reach
    more leaders in the private, public, university,
    labor and non-profit sectors.
  • Three of their 5 objectives are all about
    regions.
  • In my mind, RII is the father of WIRED.

14
The Regional Push Coming from
  • WIRED
  • Through the WIRED model, regions integrate
    economic and workforce development activities and
    demonstrate that talent development can drive
    economic transformation in regional economies
    across the United States ETA website
  • Like Robert Reich with One Stops, USDOL is not
    waiting for Congress, instead moving WIRED to
    such a critical mass that legislation catches up
    with the existing initiative

15
The Regional Push Coming from WIRED
  • Global competition, a 21st century economic
    reality, is typically seen as a national
    challenge, but the front lines of the battlefield
    are regional, where companies, workers,
    researchers, entrepreneurs and governments come
    together to create a competitive advantage.
  • And those regions that are successful
    demonstrate the ability to network innovation
    assets- people, institutions, capital and
    infrastructure- to generate growth and prosperity
    in the regions economy.

16
The Regional Push Coming from WIRED
  • Where Congress finally comes out on this I dont
    know, but after this round three there could be
    as many as 39 WIRED regions across the US
  • In New York, where we already have two WIRED
    regions of 5 total WIBs, seven WIB consortia
    competed before NY SWIB to get Governors
    blessing
  • Other States- like Virginia- pre-decided to only
    send forward two regional proposals of regions
    chosen by the governor

17
The Regional Push Coming from NCEE
  • National Center on Education and the Economy
    NCEE

18
The Regional Push Coming from NCEE
  • NCEE staff combed the globe for 2 and a half
    years researching U.S. versus our global
    competitors
  • Report says only radical reform of BOTH education
    and training can fix the situation we find
    ourselves in
  • The core problem is that our education and
    training systems were built for another era. We
    can get where we must go only by changing the
    system itself.
  • Today Indian engineers make 7500/ year against
    45,000 for an American engineer with the same
    qualifications. why would the worlds employers
    pay us more than they have to pay the Indians to
    do their work ?
  • If we continue on our current course, and the
    number of nations outpacing us in the education
    race continues to grow at its current rate, the
    American standard of living will fall relative to
    those nations, rich and poor, that are doing a
    better job.

19
The Regional Push Coming from NCEE
  • 9 of the 10 Tough Choices recommendations are
    about education reform.
  • 10 is about workforce development reform
  • Create regional competitiveness authorities to
    make America competitive
  • Government funded job training programs in the
    United States were mostly created to provide
    relatively unskilled people the skills needed to
    get a job- any job- as quickly as possible.

20
The Regional Push Coming from NCEE
  • So it is not surprising that government-funded
    job training has not, on the whole, been
    connected to the governments efforts to
    stimulate economic development. That being so,
    the jobs that people who go through the system
    get are all too often short term and dead end. It
    is now clear that the most effective strategies
    for economic development are technology based and
    regionally focused. It is also clear that the
    most effective way to provide a real future for
    people who need jobs is to provide training that
    is related to the economic future of the region
    those people live in, for jobs in growth
    industries.

21
The Regional Push Coming from Governors
  • NGA- State Sector Strategies Regional Solutions
    to Worker and Employer Needs
  • The defining elements of state sector initiatives
    include a focus on customized solutions for a
    specific industry at a regional level
  • Support the development of timely, accurate
    information to identify key industries, examine
    the state of regional economies
  • (Note This is a pretty good paper outlining a
    number of regional sectoral initiatives various
    states have begun.)

22
The Regional Push Coming from
  • Workforce Strategy Center

23
The Regional Push Coming fromWorkforce Strategy
Center
  • Working Together Aligning State Systems and
    Policies for Individual and Regional Prosperity
    (December 2006)
  • This is a good report that highlights how a
    number of States have been working to build a
    genuine workforce system
  • Recommends that Incorporating Employer Demand
    and State Economic Priorities in Workforce
    Educational Planning requires
  • Building workforce education into State economic
    development policy
  • Linking workforce education to state and regional
    economic priorities
  • Using incumbent worker and customized training
    programs strategically

24
The Regional Push Coming fromWorkforce Strategy
Center
  • Supporting Occupational and Workforce Development
    Programs of Economic Importance to State and
    Regions
  • To avoid creating perverse incentives, states
    should convene their economic development,
    workforce development and community and technical
    college leaders to determine which academic and
    training programs are of greatest importance
    economically to the state (and specific regions)

25
The Regional Push Coming from Workforce
Strategy Center
  • Career Pathways Aligning Public Resources to
    Support Individual and Regional Economic
    Advancement in the Knowledge Economy, August
    2006
  • Target industries and job titles that will
    support individual advancement and regional
    growth objectives, and conduct a gap analysis
  • Analyze the current and projected supply and
    demand for labor in the region
  • Expand the pathways process to other key
    sectors, regions, and populations
  • Replicate the pathways process in other sectors
    of importance to the regional economy

26
The Regional Push Coming from
  • U.S. Chamber, WIA Reauthorization draft position
  • An integrated and strategic regional economic
    development program is critical to the continued
    success and competitiveness of the American
    economy.   Thus, we encourage the governor to
    award grants for the development of regional
    economic development partnerships involving
    economic development organizations that primarily
    represent employers, industry leaders, community
    organizations, universities and community
    colleges, associations, and the public workforce
    system to provide solutions to the workforce
    challenges of the 21st century and to provide
    maximum access to for American workers to gain
    the education and new skills they need to be
    engaged in todays workforce.

27
The Regional Push Coming from
  • The factory owner
  • My factory is in area A, my workers live in
    areas A, B, and C. My three WIBs have three
    different OJT policies

28
Geography
  • A Regional Overlay
  • Fixed boundaries
  • Flexible boundaries based on industry clusters

29
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30
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31
A Few Models for Regional Workforce Development
Delivery
  • Consolidation Models
  • Indiana-
  • This was the first of this last round (2005).
    Attempted move from 15 WIBs to 6 regions.
  • Indianapolis was above the population limit and
    survived
  • Key outcome of this move was sector-focused
    framework
  • When skill shortages are determined to be
    statewide, a State Action Team is established
  • Governor has asked for 70 seaside in recent
    submitted plan
  • Virginia- Governor. Wants to go from 15 to 6
    regional WIBs

32
Consolidation ModelsPluses/ Minuses
  • Pluses
  • Less Admin/ more people served same
  • Easier to coordinate with regional economic
    development strategies
  • Could capitalize on Council on Competitiveness
    commercialization of innovation strategy
  • Minuses
  • When California recently proposed moving from 50
    WIBs to 20, Mayor of Oakland testified hed put
    into Alameda County for summer jobs poor kids
    but not a big region
  • California WIB Chairs testified they had been
    volunteering their time because it was their
    community but would not do so on a big regional
    board (California stayed at 50 WIBs then, 49
    WIBs today)

33
Consolidation ModelsPluses/ Minuses
  • Minuses (continued)
  • Recent NYATEP county workforce funding survey
    revealed that many areas have very significant
    local, non- WIA funds. For example, Orange
    County, NY had 1.8 Mil in WIA formula funds but
    that was only 28 of their workforce funding.
    Risk that regionalization could lead to local
    disinvestment- negative funding synergy.
  • Rigid boundaries often dont reflect real
    commutation patterns
  • Community colleges with a local tax levy
    contribution will always keep their original
    boundaries

34
A Few Models for Regional Workforce Development
Delivery
  • NYSTAR
  • New York Science and Technology Research model
  • This is an overlay regional method built on top
    of existing higher education, economic
    development, and workforce development entities
  • Like Council on Competitiveness, one of the main
    goals is to commercialize university innovation
    and research

35
NYSTAR Overlay Model
  • Pluses
  • Leads to new partnerships
  • New funds can be built off existing
    infrastructure with minimal leakage for Admin
  • Easier to coordinate with regional economic
    development efforts
  • Could capitalize on commercializing university
    research
  • Minuses
  • No guarantee efforts will continue or have a
    lasting effect
  • Is this just too little change on the margins

36
A Few Models for Regional Workforce Development
Delivery
  • Joint Planning between Economic Development and
    Workforce Development
  • Sept. 06 survey by New York State Association of
    Counties responded to by 56 of 57 Chief Elected
    Officials indicated that local workforce
    development entities tended to report to either
    Social Services Committee of County Legislature
    or Economic Development Committee
  • Reporting frequency to elected officials varied
    widely
  • In Counties with more than one Industrial
    Development Authority (IDA) 68 reported that the
    IDAs did not coordinate with each other
  • One of the NYSTAR positives is that this type of
    workforce / economic development joint regional
    planning occurs

37
Joint Planning between Economic Development and
Workforce Development
  • Pluses
  • Leads to new partnerships/ strengthens existing
    partnerships
  • Increases understanding between economic
    development and workforce development about each
    others needs and constraints
  • Lays groundwork for future regional opportunities
  • Minuses
  • Planning without funding might not lead to much
    change
  • Is this too feeble for the magnitude of
    challenges NCEE pointed out

38
A Few Models for Regional Workforce Development
Delivery
  • WIRED
  • Pluses
  • Leads to new partnerships/ strengthens existing
    partnerships (even among WIBs)
  • Is very flexible
  • Geography is set by partners in the beginning
  • Can capitalize on sectoral/ career ladder
    approach
  • New funds can build off existing funds to require
    less Admin
  • Can capitalize on commercializing university
    research
  • Minuses
  • Will they continue after seed money disappears
  • Very labor intensive/ slow to start up
  • Once set geographic boundaries are fixed

39
A Few Models for Regional Workforce Development
Delivery
  • MIRSA

Leaders and opinion shapers across the state have
convened to create 13 regions (33 separate
MiRSAs) to coordinate efforts addressing
immediate workforce needs This regional
strategy development reflects the active
participation of representatives of workforce
development, education, private sector,
community, economic development, and local
government organizations. 
40
A Few Models for Regional Workforce Development
Delivery MIRSA
  • At the center of this approach are regional
    partnerships led by Michigan Works! Agencies.
    They will provide the leadership to build and
    strengthen regional strategies that will benefit
    companies and workers alike, and pave theway to
    economic success
  • MiRSAs are one tool for workforce development,
    but by no means the only one. They do not replace
    workforce boards, One-Stops, education and
    training providers, or other entities. Instead,
    they provide a conduit through which those
    organizations can partner and ensure that their
    services become more coherent, valuable, and
    accessible.
  • Michigan Regional Skills Alliances (MiRSA) are
    part of a larger strategy to develop
    public/private partnerships that address
    workforce needs in specific regions and industry
    clusters. Regionalization is not a trend but a
    natural progression for government, at all
    levels, to follow the private sector in Alliances
    initiative was announced by governor Jennifer
    Granholm in her State of the State address in
    January 2004. It is one of many new initiatives
    embracing a regional philosophy

41
 
42
Michigan Regional Skills Alliances
  • Pluses
  • Leads to new partnerships/ Strengthens existing
  • Is demand side driven
  • Capitalizes on sectoral/ career ladder approach
  • Allows a county or WIB to participate in more
    than one regional effort based on industry
    cluster
  • Allows different entities to be the lead
    (convener)
  • Minuses
  • Does this just layer on another level?
  • Will they continue after seed money is gone
  • Is this too little change for the large
    challenges

43
A Few Models for Regional Workforce Development
Delivery
  • Job Ready Pennsylvania
  • Begun in 2005 with 91 Million State
    investment(see excellent rationale QA in
    Resources section)
  • In order for WIB to participate, they have to
    move to high performance WIB, also gives access
    to 2.6 Million incentive funding
  • Four WIBs to date have reorganized
  • Strategy focuses on people already in the labor
    market, or looking for jobs, students in colleges
    and universities, and states employees and
    innovators of tomorrow currently in high school
  • Very broad vision

44
Job Ready Pennsylvania
  • Uses sectoral approach / with career ladders/ 9
    clusters
  • 5 Mil to organize industry partnerships/ 15M
    incumbent worker training by partnerships
  • Focused on higher- level skill development
  • Organized through regional industry partnerships,
    which are regional coalitions of employers, labor
    and outside experts who develop strategies to
    overcome shortages, hiring and training
    bottlenecks.
  • High priority occupations are high wage/ high
    demand jobs.
  • Changes success measures for community colleges
    new performance will be established for each
    community college. Typical performance measures
    such as meeting workforce development needs of
    State, graduation rate of degree and certificate
    programs, and job placement

45
Job Ready Pennsylvania
  • Pluses
  • Bold and innovative
  • State investment has continued to increase
  • Multi faceted approach to building 21st Century
    workforce
  • Upgrades existing workers
  • Minuses
  • Some big city issues with high demand targeting
    versus hospitality type training that is only job
    immigrants are likely to get with existing skill
    levels

46
A Few Other Models for Regional Workforce
Development Delivery
  • Illinois Critical Skills Shortages
  • Shifted workforce under economic development
  • 10 Economic Development regions with fixed
    boundaries
  • Some WIBs are split across two separate regions
  • All WIB Chairs in a region must participate or
    the region cannot be funded
  • Other than WIB chairs, regional consortia must
    have representatives from economic development,
    workforce development, education, labor, business
    and industry
  • Up to the WIB Chairs to determine best method for
    oversight
  • Targeted occupations must pay self sufficient
    wages and provide benefits

47
A Few Other Models for Regional Workforce
Development Delivery
  • A Few Others
  • Washington- High Skills/ High wages identifies
    industry clusters by region to guide funding
    priorities for its Industry Skills Panel
    initiative, which brings together employers,
    community colleges, WIBS, and other organizations
    to develop sector approaches by industry.
  • Massachusetts- Bay State Works, established in
    2001 state funded the development of 11
    regional industry teams to work with local
    industry, workforce development, economic
    development, education, labor, and the community
    to develop skills gaps identified by regional
    industries.

48
So What are your next steps
  • Whats your position on Regional part of WIA
    Reauthorization? Fight it or support a model?
  • What do you have to do to get ready for a
    regional initiative in your state?

49
Regional Reading
  • Executive Summary Tough Times or Tough Choices
    http//www.skillscommission.org/pdf/exec_sum/Tough
    Choices_EXECSUM.pdf
  • NGA Center for Best Practices
  • http//www.nga.org/portal/site/nga/menuitem.9123e8
    3a1f6786440ddcbeeb501010a0/?vgnextoidfcec912a4824
    e010VgnVCM1000001a01010aRCRD

50
Regional Reading List
  • Working Together Aligning State Systems and
    Policies for Individual and Regional Prosperity,
    December 06, Workforce Strategy
    Centerhttp//www.workforcestrategy.org/publicatio
    ns/WSC_workingtogether_12.1.06_3.pdf
  • Career Pathways Aligning Public Resources to
    Support Individual and Regional Economic
    Advancement in the Knowledge Economy, August 06,
    Workforce Strategy Center http//www.workforcestra
    tegy.org/publications/WSC_pathways8.17.06.pdf

51
Regional Reading List
  • A really good booklet on regional asset mapping,
    authored by Randall Kemper, Council on
    Competitiveness, for ETA WIRED efforts, October
    2006, Asset Mapping Roadmap A Guide to Assessing
    Regional Development Resources
    www.doleta.gov/wired/files/Asset_MappingRoadmap.pd
    f
  • Job Ready Pennsylvania Q A
  • www.governor.state.pa.us/governor/cwp/view.as
    p?a1101q440205
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