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Workforce Investment Act Community Planning Session November 21, 2008

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240,000 jobs were lost. Retail chains recorded their worst same-store sales since 1969. ... Increased education and skill content in new jobs. ... – PowerPoint PPT presentation

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Title: Workforce Investment Act Community Planning Session November 21, 2008


1
Workforce Investment Act Community Planning
Session November 21, 2008
The Workforce Board of Northern Cook County
2
Workforce Investment Act Title IB Plan Update
  • Background
  • The Workforce Investment Act Plan is modified at
    a minimum on an annual basis to accept the new
    allocations and make necessary narrative changes
    to align with the local economy and services.
  • This current modification will be effective
    December 14, 2008 to include
  • Acceptance of the WIA Title I Dislocated Worker
    Program Allocation Increase to Program Year 2008
    of 248,886 according to WIA Notice No.
    08-NOT-29.
  • Narrative Changes
  • Workforce Board Strategic Plan
  • Training Provider Policy
  • Labor Market Information
  • The Workforce Investment Act Plan modifications
    are posted on the Workforce Boards website along
    with instructions on how to submit comments.
    www.workforceboard.org

3
Workforce Investment Act Title IB Plan Update
  • WIA Section 118 requires that each Local Board,
    in partnership with the chief elected officials,
    develop and submit a comprehensive plan.
  • The Plan
  • Creates the foundation for a market demand-driven
    system approach in the area
  • Focusing on employers needs
  • Spells out the how and why in providing services
  • The individual customers
  • Establishes the Illinois workNet Center system as
    the route to services.
  • Defining operations and partners
  • Identifies needs, goals, improvements.
  • Regional, local and service delivery strategies

4
Current State of the Workforce
  • October 2008 Labor Department Report
  • Unemployment surged to a 14-year high of 6.5 in
    October, passing the peak of 6.3 seen after the
    economy's last recession in 2003
  • 240,000 jobs were lost.
  • Retail chains recorded their worst same-store
    sales since 1969.
  • Job losses continued in manufacturing,
    construction, and several service-providing
    industries.
  • Health care and mining continued to add jobs.
  • Job losses thus far in 2008 1.2 million.

5
Current State of the Workforce
  • In October, the number of long-term unemployed
    (those jobless for 27 weeks or more) rose by
    249,000 to 2.3 million.
  • The long-term unemployed accounted for 22.3
    percent of total unemployment.
  • The newly unemployedthose who were jobless fewer
    than 5 weeksincreased by 212,000 to 3.1 million
    in October.
  • 484,000 discouraged workers, 164,000 higher than
    a year earlier persons not currently looking for
    work specifically because they believe no jobs
    are available for them.

6
Changing Workforce
  • Growing gap between the number of jobs and the
    available workforce.
  • Retiring baby boomers
  • Next 30 years, 76M will retire with only 46M
    entering the labor force
  • In 2010, 28M individuals will be between the ages
    65-79 and by 2030, 52M
  • Individuals will be bringing unique assets to the
    task of assisting individuals looking for
    training and employment.

7
Changing Workforce
  • In 2002, 5 million individuals were receiving
    public aid.
  • 600,000 men women will be released from a
    correctional institution in the next 3 years.
  • 30 million working age individuals have a
    disability.

8
Growth in the US Labor Force
9
Illinois Workforce
  • There is a workforce crisis in Illinois caused by
  • Retirement of baby boomers,
  • Large numbers of unskilled immigrants entering
    the country,
  • Technical advances that require constant
    retooling of the incumbent workforce and high
    drop out rates from our K-12 school system.
  • In Illinois alone, it is projected that in 2008,
    41,068 students out of 176,606 ninth grade
    students that enrolled in 2004 will not graduate
    (23).
  • As reported by the Daily Herald, 14 companies
    statewide are laying off around 2,600 workers
    altogether.

10
Illinois Workforce
  • Unemployment rate rose to 7.3 in October 2008
  • Fifth consecutive month of job loss for the state
  • The hardest hit sectors
  • Construction lost 4,100 jobs
  • Financial services lost 2,200 jobs
  • In September some industries did add jobs,
  • Government added 6,000 jobs
  • Professional and business services 1,000 jobs
  • Leisure and Hospitality 400 jobs
  • Local Workforce Boards and One-Stops are in the
    best position to address these problems in our
    communities.

11
Illinois Workforce
  • Most recently, Illinois was subject to a
    rescission in WIA dollars (over 10 million) by
    the US Department of Labor.
  • These rescission dollars were shared among local
    workforce areas which forced all local areas to
    reduce services to customers including closing
    offices.

12
Local Workforce Area
  • Unemployment rates September 2008
  • Illinois unemployment rate is 6.9
  • Northern Cook County is 5.1
  • (increased from 3.6 in 2007)
  • Elgin 7.2, Des Plaines 6.0
  • Cook County 6.8
  • (source IDES LED data)

13
Local Workforce Area
  • North and Northwest Cook County
  • 34 municipalities Over 200 square miles.
  • Home to more than 1,047,000 residents.
  • Comprises 19.7 of the Cook County population.
  • Nearly 40,000 businesses.
  • (source www.census.gov annual estimates, July 1,
    2005)

14
Local Workforce System
  • A diverse industrial mix
  • Strengths in manufacturing, professional/scientifi
    c/technical services, construction, and
    information
  • High-wage, high skill occupations
  • Attraction of workers from outside the area
  • High median household incomes
  • Generally considered to be a fairly affluent
    area
  • Vitality from increasing diversity.

15
Local Workforce System
  • Declining manufacturing employment
  • Large number of dislocated workers
  • Lack of alignment between educational demand and
    educational attainment
  • Relatively unaffordable housing
  • Large number of people with difficulty
    communicating in English.

16
Northern Cook Economic Impact
  • Schaumburg
  • Largest economic center in the state outside of
    Chicago
  • 34.8 million square feet of office, industrial,
    and commercial development space
  • Over 85,000 employees.
  • Elk Grove Village
  • Ranked second highest in the state in the number
    of manufacturing firms
  • More than 3,600 companies employing more than
    90,000 employees
  • A steady gain of 100 companies per year for the
    past ten years.
  • Wheeling
  • Home to over 900 business, commercial and retail
    establishments.
  • More than 20,000 jobs are generated by these
    businesses.
  • Skokie
  • Over 200 manufacturing firms
  • Employing more than 9,000 people, including many
    industry leaders.

17
Industrial Makeup
18
Fastest Growing Industries
19
Fastest Declining Industries
20
Occupational Makeup
21
Fastest Growing Occupations
Education Level Postsecondary vocational award
Associate's degree Bachelor's degree Degree
plus work experience
22
Fastest Growing Occupations
Education Level Short-term on-the-job training
Moderate-term on-the-job training Long-term
on-the-job training Work experience in a related
field Postsecondary vocational award
23
What Businesses Need
  • Ideal workforce system that can fulfill workforce
    development requirements
  • Meet needs quickly and efficiently
  • Services tailored specifically to the business,
    the industry
  • Responsive and excellent follow through and
  • Sense of caring for both employees and the
    employer needs.

24
What Businesses Need
  • Reduce costs in finding and keeping qualified and
    motivated employees
  • Turnover costs are estimated between 33 - 250
    of annual pay
  • Screening applications
  • Interviewing and testing candidates
  • Overwhelming number of applications to job
    postings
  • Employers have stated they receive from 100 to
    4,000 submissions for almost every advertised
    job, with only 10 being qualified.
  • Time and resources to train new employees some
    only staying for a short time.
  • Cost for hiring a 7.50 per hour job may be from
    5,000 to 37,000.

25
Job Seeker Customer
  • Who is the unemployed?
  • The unemployed person changes from the time of
    year, the seasons, and the economy.
  • Anyone can be affected by unemployment it
    happens to everybody.
  • People who are educated, skilled, and have a good
    work history, and suddenly find themselves
    unemployed.  People who have barriers in their
    search, those who don't have the skills,
    education or physical needs to perform in a
    specific job.  People who lack the current
    skills needed to keep their position. 

26
Job Seeker Customer Needs
  • The area has pockets of significant low-income
    individuals
  • Residents lacking basic skills
  • Residents lacking documentation to work in the
    U.S.
  • Residents lacking reliable transportation and
    access to public transportation
  • Dislocated workers in need of retraining
  • Dislocated workers unable to retain wages

27
Workforce Programs in todays Economy
  • As reported by national workforce organizations
  • The U.S. economy plummeted to depths not
    experienced since the Great Depression, Congress
    is gearing up to respond.
  • There is a major effort to include funding for
    workforce programs in the pending economic
    stimulus package.
  • The potential exists for a 1.5 billion
    investment
  • including 500 million for dislocated workers,
  • 500 million for disadvantaged youth,
  • 250 million for low-income adults, and
  • 250 million for reemployment services targeted
    to those most likely to exhaust their
    unemployment benefits.

28
Workforce Investment Act
  • The purpose of title I of the Workforce
    Investment Act of
  • 1998 (WIA) is to provide workforce investment
    activities
  • that
  • Increase employment, retention and earnings of
    participants and
  • Increase occupational skill attainment by
    participants, which will improve the quality of
    the workforce, reduce welfare dependency, and
    enhance the productivity and competitiveness of
    the Nation's economy.
  • These goals are achieved through the workforce
  • investment system.

29
Policy and Programmatic Implications
  • Resource Implications
  • WIA Title I funds are limited and can, at best,
    just begin to serve the customers needs.
  • Coordinate and leverage resources into a true
    workforce system through referrals and programs.
  • Development and implementation of business plans
    to coordinate the funding streams into an
    integrated workforce system.
  • Promote pooled costs and discourage silos.
  • Implement Strategic Networking.

30
Faith Based and Community Organization (FBCO)
Initiative
  • With declining WIA funds and increasing
    unemployment figures, the Workforce Board and
    workforce development system looks to other
    resources to leverage funds and support the
    strategic plan of the Board.
  • US DOL encourages FBCOs that provide job training
    or support services to collaborate with the
    one-stop centers in their local communities.
  • DOL the Center for Faith Based and Community
    Initiatives have worked with FBCOs to meet the
    employment needs of their communities.
  • DOL made available funds to coordinate these
    initiatives.

31
Faith Based and Community Organizations Initiative
  • The Workforce Board in partnership with Harper
    College, St. Hubert Job and Networking Ministry,
    and Business and Career Services received a small
    grant of 7,500 to pay for expenses related to
    hosting a summit Build Your Community Network!
  • Designed to bring together leaders, staff and
    volunteers from FBCOs and the Workforce System
    along with representatives from education and
    business, including Chambers of Commerce.
  • The result was a facilitated event that was
    results driven to create new strategies
  • To meet the businesses need for work-ready and
    competent employees
  • To provide skills training to volunteers
  • To adequately prepare struggling
    individuals/populations to become
  • Work-ready
  • Start them on a career path full of opportunity
    and
  • Stay employed over time.

32
Workforce System Partner Contribution
  • FBCOs already work with the businesses or offer
    the services employers want
  • FBCOs have demonstrated expertise and offer
    continued support services
  • Individuals have a connection to the faith based
    organization which is critical during transition
    into work
  • FBCOs bring unique assets to the task of
    assisting individuals looking for training and
    employment and
  • Partnerships are typically built around mentoring
    relationships, many addressing specific
    population groups
  • Ex-offenders
  • Immigrants
  • Homeless
  • Desperate for work

33
Workforce Training
  • Post-secondary Credentials Are More Important
    Than Ever
  • More education (with credentials) more
    earnings, more assets, more wealth.
  • Increased education and skill content in new
    jobs.
  • Demographic trends suggests potential serious
    shortages of educated adults.
  • Better educated workforce greater productivity.

34
Workforce Training
Conditions
  • Global economic malaise slower growth than 90s
    likely.
  • Intense global competition impacting both
    domestic and international business many
    businesses are losing pricing power cost
    containment growth in wages and salaries slow to
    moderate.
  • Globally, a potential surplus of skilled and
    knowledge workers employers seek the best from
    wherever.

35
Workforce Training
Trends
  • Significant aging of the population in developed
    countries.
  • High quality and global leadership of American
    higher education and research institutions likely
    to continue.
  • Changing ethnic and cultural composition of the
    American population.
  • Expectations of younger workers different from
    older generations Generation X, Generation Y,
    and Nexters.
  • May not be enough affordable traditional college
    to go around for the boomlet generation rising
    costs of traditional college.
  • Rapid expansion of e-learning significant
    implications for the traditional campus.
  • Adults learning must be convenient, modular,
    affordable, credentialed and relate directly to
    wage and job advancement.

36
Workforce Training
For Students/Workers/Learners
  • Lifelong learning continuously learn nibblets
    of knowledge, information, skills.
  • Save-Spend for learning throughout life.
  • Hire on with employers with commitment to
    learning e.g., tuition reimbursement a key
    fringe benefit.

37
Workforce Training
For Employers
  • Adopt a supply chain management approach to human
    capital retention critical in good and bad
    times.
  • Market organization as an employer of choice.
  • Hire for desired attributes target attitudes,
    outlook, work ethic.
  • Invest in workers and their work environment for
    retention offer the good worker a compelling
    case to stay with the organization.
  • Create training funds tied directly to employee
    benefits.

38
Workforce Training
For Employers
  • Make sure information is available to employees
    about training choices.
  • Business location influenced by where the quality
    workers are Businesses must shape the talent
    pool beyond their doors.
  • Collaborate selectively with other businesses on
    issues of common need, e.g. diversity training.
  • Learn how to develop long range human capital
    asset plans.
  • Design the work environment for high level
    productivity and job satisfaction, e.g. flexible
    work hours, cafeteria benefit plan, ways for
    working at home.

39
Workforce Training
For the Workforce System
  • Leverage funds -- individual, employer, govt.
    dollars.
  • Create viable education and training
    opportunities for those not immediately college
    bound.
  • Highly accessible and affordable adult learning
    for incumbent workers and displaced workers to
    achieve credentials.
  • Subsidized labor market information, information
    on educational offerings, financial aid etc.

40
Workforce Education and Training Implications
  • Implement a minimum training expenditure
    requirement
  • All LWIAs are required to ensure at least 40 of
    their formula-allocated program expenditures in a
    program year are on allowable training costs in
    both the WIA Title I Adult and Dislocated Worker
    programs.
  • Capitalize on the wealth of the areas access to
    more than 300 training providers offering
    literally thousands of program options.
  • Maintain an effective Individual Training Account
    system that meets customer needs and maximizes
    customer choice.
  • Explore ways other funding sources and resources,
    beyond the Illinois workNet Center, can be
    coordinated and leveraged to the utmost
    efficiency.

41
Training Program Options
  • Occupational Classroom Training through ITAs
  • Incumbent Worker Training
  • Academic Remediation/Pre-vocational Services
  • Books, Materials and Related Supplies
  • Participant Support
  • Occupational Bridge Programs

42
Individual Training Accounts (ITA) PY07 Policy
Changes
  • Workforce Board Policy Change Objectives
  • 1) Meet employer needs in targeted industry
    sectors, leading to high wage, high growth
    employment.
  • 2) Align ITA values with surrounding workforce
    areas,
  • 3) Limit financial constraints of customers,
    allowing them to successfully complete training
    programs.

43
Individual Training Accounts (ITA) PY07 Policy
Changes
  • For Training programs leading to high wage, high
    growth occupations in the core industry sectors
    (identified by the Workforce Board and supported
    by CSSI reports)
  • An ITA budget including tuition, fees, books, lab
    fees, and required supplies, not to exceed 6,000
    with an ITA maximum of 10,000 for a training
    program equivalent to a two year degree, during a
    five year period.
  • For Training programs not captured in the
    industry and occupational series of information
  • A one time ITA budget not to exceed 3,000.

44
Additional ITA Policy Implications
  • Customers must complete comprehensive reading and
    math assessments and assessed as suitable for the
    training program.
  • Customers must be eligible for any necessary
    occupational licensure or employment.
  • Funds must be available on the date the ITA
    voucher is written.
  • The course or program, even though on the
    statewide list, must meet the Workforce Board's
    performance standards.
  • The training course or program must result in
    employment in the geographic area the prospective
    trainee intends to reside upon training
    completion
  • The training course or program must prepare the
    participant for a job in a high wage/high growth
    occupation.

45
High Wage/High Growth Occupations
  • High Wage Occupations
  • The Workforce Board has defined high wage
    occupations, as occupations with an average
    hourly wage as reported through labor market data
    for Cook County as no less than the threshold
    established for the negotiated performance goals
    for each funding stream in a given program year
    (July 1 to June 30).
  • High Growth Occupations
  • The Workforce Board has defined high growth as an
    occupation projected to increase due to job
    creations or replacements as projected through
    2012.

46
Training Provider Certification and Customer
Choice
  • Workforce Board Training Provider Certification
    System
  • The Workforce Board establishes guidelines
  • Maintains tracking mechanisms
  • Tracks provider performance and ensure
    accountability
  • Standards developed to ensure timely payment and
    grant management
  • Utilizes the Illinois Workforce Development
    System (IWDS) electronic application
  • Maintain communication standards with local
    training service providers

47
Training Provider Certification Reporting
Requirements
  • At a minimum the Training Provider is encouraged
    to develop systems that captures the following
    data
  • Number of WIA students enrolled in each program.
  • Total number of students enrolled in each
    program.
  • Number of WIA and non-WIA students completing/not
    completing training programs.
  • Number of WIA and non-WIA students obtaining
    employment and wages/salaries.
  • Number of WIA and non-WIA students in training
    related/non-training related occupations.

48
ITA Return on Investment
  • Requiring both case managers and customers to
    take a more proactive approach in developing a
    career path formulating a consistent,
    comprehensive upfront assessments of customer
    skills and related occupational aptitudes.
  • Requiring case managers and customers to become
    educated on employer needs, labor market
    information, and appropriate training
    opportunities.
  • Taking into account the peripheral needs of the
    customer to customize the approach to training
    based on the full scope of customers needs.
  • Case managers approving customer training
    applications with a continual focus of the
    employer needs and the job requirements.
  • Keeping employer needs and job requirements as
    the focal point of Workforce Board approval and
    certification of training provider and programs.

49
Local Workforce Area (LWIA) Infrastructure
  • During the development in the workforce area, the
    Governors Office is the CEO for LWIA 08.
  • Department of Commerce and Economic Opportunity
    is the CEOs liaison to the North and Northwest
    Cook County area.
  • The Workforce Board and the CEO have a signed
    agreement.
  • The Workforce Board is the grant recipient.

50
LWIA Fiscal Agent
  • According to WIA Section 117, the grant recipient
    designates the fiscal agent or sub grant
    recipient of the funds.
  • The Workforce Board has procured the services of
    a financial management firm to act as the fiscal
    agent.
  • The fiscal agent disburses funds for activities
    at the direction of the board.

51
Illinois workNet Centers
  • Two comprehensive Illinois workNet centers have
    been established
  • Arlington Heights
  • Evanston
  • One affiliate Illinois workNet Center site at
    Oakton Community College
  • Additional service center sites throughout the
    area
  • Hanover Township
  • Center for Professional Development

52
Illinois workNet Centers
  • The guiding principles for the Illinois workNet
    Center delivery system envisioned by the U.S.
    Department of Labor
  • Universality Services must be available for
    everyone all workers and employers.
  • Customer Choice All customers must be informed
    and aware of choices and opportunities.
  • Integration Customers should be able to enter
    the system through multiple access points
  • Performance-driven and Outcome-based The system
    should be accountable.

53
Partners in the Illinois workNet Centers
Current Partners in the Illinois workNet Centers
  • Illinois workNet Northern Cook County
    North/Evanston
  • Governed by a contracted Illinois workNet Center
    Operator WIA Partner
  • Illinois Department of Employment Security
  • WIA Core and Intensive Service Provider
  • Adult Basic Education
  • CEDA
  • Department of Commerce and Economic Opportunity
  • Oakton Community College
  • Evanston Township High School
  • Department of Human Services
  • AgeOptions
  • National Student Partnership
  • on-site presence
  • Illinois workNet Northern Cook County
    Northwest/Arlington Heights
  • Governed by a consortium of partners including
  • Illinois Department of Employment Security
  • Department of Human Services
  • William Rainey Harper College
  • WIA Core and Intensive Service Provider
  • Department of Commerce and Economic Opportunity
  • Adult Basic Education
  • Northwest Suburban Education to Careers
    Partnership
  • CEDA
  • AgeOptions
  • on-site presence

54
WIA Youth Services
  • All programs must make accessible to the youth
    customer formal and informal education
    opportunities, to include
  • Tutoring, job and study skills training
  • Alternative secondary school services and
    programs, and completion of high school or GED
  • Experiential and occupational exposure
  • Seasonal employment, paid/unpaid work
    experiences
  • Occupational skills training
  • Leadership development opportunities
  • Supportive services
  • Adult mentoring
  • Follow-up services for no less than 12 months
  • Comprehensive guidance and counseling and
  • Individual Training Accounts (ITA).

55
Service Structure PY08
Chief Elected Official (Governor) DCEO as
Governors Representative
56
Illinois workNet Center Rebranding
57
Launched by the Illinois Workforce Investment
Board, sponsored DCEO, and administered by
SIU-Carbondale. Aimed at increasing access to
statewide and local resources and services by
optimizing the use of technology and existing
resources. Statewide implementation of Illinois
workNet is expected to enhance the way Local
Workforce Boards and Local Workforce Investment
Areas provide access to resources and services.
58
  • Save money - Participating with the Illinois
    workNet Program is free!
  • Save time by using one easy-to-use entry point
    to the benefit of both staff and customers.
  • Connect to resources verified to be accurate and
    pertinent.
  • Train staff as Certified Illinois workNet
    Advisors through and online course. Enrollment
    is free to Illinois workNet Partners!
  • Network with professionals dedicated to raising
    the economic standards, health, and education of
    your community.
  • Advertise services to your community Publishing
    information to the Portal is free!

59
Program Year 2008 Registrant Plan
60
WIA PY08 ALLOCATION FUNDING
61
Regional Strategic Direction
  • Consortium of nine Workforce Boards representing
    11 counties and the City of Chicago came together
    around a few core initiatives (started working
    together in 2000)

Name of Workforce Board Chicago Workforce
Board Cook County Workforce Investment Board
DuPage County Workforce Board Kankakee Grundy
Livingston Workforce Investment Board Lake
County Workforce Investment Board McHenry County
Workforce Investment Board River Valley
Workforce Investment Board The Workforce Board of
Northern Cook County Workforce Investment Board
of Will County
Workforce Area Covered City of Chicago South and
West Suburban Cook County County of
DuPage Counties of Grundy, Kankakee,
Livingston County of Lake County of
McHenry Counties of DeKalb, Kane, and
Kendall North Northwest Suburban Cook County of
Will
62
Regional Impact
  • Illinois population impact 8.9 million
  • 68.7 of Illinois population
  • Illinois workforce impact 5.4 million
  • 70 of Illinois workforce
  • Illinois business impact More than 207,000
    employers
  • 70 of Illinois employers
  • Illinois stakeholder impact
  • 22 Illinois community colleges of 48 in the state
  • More than 400 chambers of commerce and industry
    associations
  • More than 250 economic development entities
  • A cast of thousands of regional stakeholders

63
Workforce Boards of Metropolitan Chicago Initial
Work
  • Local and regional labor market analysis
  • State of the Workforce Reports for each workforce
    area and region
  • Regional forums focusing on youth service
    providers and educators and youth resource
    mapping project (www.youthfuturesmetro.com )
  • Regional communications and website
    (www.workforceboardsmetrochicago.com )
  • Sector initiatives
  • NRF partnerships with regional shopping centers
    for skill center development (Westfield Old
    Orchard Skill Center)
  • Critical Skills Shortage Initiative

64
Regional Sector Initiatives
  • The Workforce Boards of Metropolitan Chicago
    initiated activities with the following sectors
  • Healthcare
  • Manufacturing
  • Transportation, Warehousing Logistics
  • Hospitality, Tourism, Retail
  • Finance and Insurance
  • Technology pending

65
Input and Comment to The Local WIA Plan
  • Present changes and modifications to the Local
    WIA Plan
  • Community Planning Forum
  • Posted to the Website www.workforceboard.org
  • Published in local media and made available for
    review
  • Presented to the Workforce Board Executive
    Committee
  • Presented to the Workforce Board
  • Presented to the CEO
  • Obtain comments from community, partners, and
    local stakeholders
  • Discussion points today
  • Written comments submitted

66
Opportunity to Provide Input
  • Please address comments, questions and input to
    the Workforce Board in writing by December 5,
    2008.
  • Fax Comments form to 847-699-9155
  • Mail The Workforce Board of Northern Cook County
  • 2604 E. Dempster, Suite 502,
  • Park Ridge, IL 60068
  • Attn J. Terry
  • Go to www.workforceboard.org and follow link for
    Title 1B plan review and comments to send
    comments electronically.
  • Email to jterry_at_workforceboard.org
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