Workforce Investment Act (WIA) Reauthorization Proposals in the 113th Congress: Comparison of Major Features of Current Law and S.1356
Released: 2013-10-29T00:00:00

Introduction

The Workforce Investment Act of 1998 (WIA; P.L. 105-220 ) is the primary federal program that supports workforce development. WIA includes four main titles:

Title I—Workforce Investment Systems—authorizes programs that provide job training and related services to unemployed or underemployed individuals. Title I programs, which are primarily administered through the Employment and Training Administration (ETA) of the U.S. Department of Labor (DOL), include three state formula grant programs, multiple national programs, Job Corps, and demonstration programs. In addition, Title I authorizes the establishment of a One-Stop delivery system through which state and local WIA training and employment activities are provided and through which certain partner programs must be coordinated. Title II—Adult Education and Literacy—authorizes education services to assist adults in improving their literacy, completing secondary education, and developing English language proficiency. Title III—Workforce Investment-Related Activities—amends the Wagner-Peyser Act of 1933 to integrate the U.S. Employment Service (ES), which provides job search and job matching assistance to unemployed individuals, into the One-Stop system established by WIA. Title IV—Rehabilitation Act Amendments of 1998—amends the Rehabilitation Act of 1973, which provides employment-related services to individuals with disabilities.

The authorizations for appropriations for most programs under the Workforce Investment Act (WIA) of 1998 ( P.L. 105-220 ) expired at the end of FY2003. Since that time, WIA programs have been funded through the annual appropriations process. In the 108 th and 109 th Congresses, bills to reauthorize WIA were passed in both the House and the Senate; however, no further action was taken.

In the 113 th Congress, the House Committee on Education and the Workforce ordered reported H.R. 803 —the Supporting Knowledge and Investing in Lifelong Skills Act (SKILLS Act), which was introduced on February 25, 2013, by Representative Virginia Foxx of North Carolina. On March 6, 2013, the committee, after considering four amendments to H.R. 803 , ordered the bill reported by a vote of 23 to 0. No Democrats on the committee cast a vote on the measure, maintaining that they were not provided adequate input in the process. H.R. 803 was debated in the House of Representatives on March 15, 2013, and passed by a vote of 215-202.

In the Senate, Senators Patty Murray, Lamar Alexander, Tom Harkin, and Johnny Isakson introduced S. 1356, the Workforce Investment Act of 2013, on July 24, 2013. The Senate Committee on Health, Education, Labor, and Pensions (HELP) held a markup of S. 1356 on July 31, 2013, and ordered the bill reported by a vote of 18 to 3.

This report summarizes each of the WIA titles and highlights the major features of S. 1356 , as ordered reported, pertaining to each title. The report also compares the proposed provisions of S. 1356 to current law in the following tables:

Table 1. Major Provisions of Title I of WIA and Titles I and II of S. 1356 . This table covers provisions governing the "workforce investment systems" that provide for, among other things, state formula grants, state and local planning procedures, and the establishment of the One-Stop delivery system. WIA established the One-Stop delivery system as a way to co-locate and coordinate the activities of multiple employment programs for adults, youth, and various targeted subpopulations. The delivery of these services occurs primarily through more than 3,000 career centers nationwide.

Table 2. Major Provisions of Title II of WIA and Title III of S. 1356 . This table covers provisions for adult education and literacy activities.

Table 3. Major Provisions of Title III of WIA and Title IV of S. 1356 . This table covers changes to the Wagner-Peyser Act of 1933, which was also amended in Title III of WIA. Wagner-Peyser provides authorization for the Employment Service, which provides job matching and job search assistance for unemployed individuals.

Table 4. Major Provisions of Title IV of WIA and Title V of S. 1356 . This table addresses amendments to the Rehabilitation Act of 1973, in particular to the Vocational Rehabilitation and other employment-related provisions of that act, which authorizes various employment services for individuals with disabilities.

Title I (System Alignment and Innovation) and Title II (Workforce Investment and Related Activities)6

Title I of the Workforce Investment Act—Workforce Investment Systems—authorizes the establishment of a One-Stop delivery system through which state and local WIA training and employment activities are provided and through which certain partner programs must be coordinated. Title I also authorizes appropriations for the three major state formula grant programs (Adult, Youth, and Dislocated Worker), Job Corps (a DOL-administered program for low-income youth), and several other national programs that are directed toward subpopulations with barriers to employment (e.g., Native Americans).

S. 1356 would maintain the existing One-Stop delivery system as the delivery mechanism for employment and training services but would change the governing structure, performance accountability, and some programs. S. 1356 would split the current Title I into a new Title I (system alignment and governance) and a new Title II (programs). Below is a brief summary of the major provisions of S. 1356 . This list is followed by a thematic comparison in Table 1 of current law and S. 1356 .

Coordination and Alignment

S. 1356 would maintain the One-Stop system and make adjustments to increase coordination and alignment of workforce development programs. To address coordination and alignment, S. 1356 would

add the Temporary Assistance for Needy Families (TANF) program as a required One-Stop partner (optional partner under current WIA); add requirements for Workforce Development Boards (WDBs, renamed from current Workforce Investment Boards) to coordinate, align programs, and reduce duplicative services; require a Unified State Plan (USP) for core programs—state formula grants, adult education, the Employment Service, and Vocational Rehabilitation; allow a Combined State Plan (CSP) that would include core programs and at least one other One-Stop partner program; expand demonstration and evaluation activities to emphasize collaborative partnerships across institutions and strategies to improve outcomes for individuals with barriers to employment; and establish and authorize appropriations for Workforce Innovation and Replication Grants (WIRG) and Youth Innovation and Replication Grants (YIRG); the WIRG program would provide competitive grants to states and localities to develop and implement innovative strategies to align programs and create coordination in workforce strategies and the YIRG program would provide competitive grants to states and localities to develop and implement strategies and programs (e.g., career pathways) to improve education and employment outcomes for youth.

Funding

S. 1356 would authorize Title II programs (Adult, Youth, and Dislocated Worker State Formula Grants, Job Corps, and National Programs) at "such sums as may be necessary" for each of FY2014 through FY2018.

In addition, S. 1356 would maintain the three state formula grant programs but would change some of the formula features.

WIA Youth Activities— S. 1356 would maintain formula weights but would replace current factors with three new factors: Civilian Labor Force Ages 16-21 (weight=1/3); Total Unemployed (weight=1/3); and Disadvantaged Youth Ages 16-21 (weight=1/3); the definition of "disadvantaged youth" would change to a person with an income of or in a family with an income of less than 150% of the federal poverty line. WIA Adult Activities— S. 1356 would change formula factors and weights: Unemployed in Areas of Substantial Unemployment (weight=40%); Civilian Labor Force (weight=25%); and Disadvantaged Adults (weight=35%); the definition of "disadvantaged adult" would change to a person with an income of or in a family with an income of less than 150% of the federal poverty line. WIA Dislocated Worker Activities. The formulas and weights would remain the same as current law but S. 1356 would add hold harmless (90% of previous fiscal year allotment percentage) and stop gain (130% of previous fiscal year allotment percentage) provisions that prevent large funding losses or gains from year to year.

S. 1356 would also increase the percentage of funds that local Workforce Development Boards may transfer between Adult and Dislocated programs from 20% to 100%.

Finally, S. 1356 would allow local Workforce Development Boards (LWDBs) to choose between two methods of funding the costs of infrastructure of One-Stop centers. First, LWDBs would be allowed to continue to develop memoranda of understanding between the LWDB, chief elected local official, and One-Stop partner programs to fund the costs of One-Stop infrastructure. Second, the governor of each state would be permitted to determine the infrastructure amounts based on the proportionate use of each partner program in each local One-Stop, subject to a cap of the funds provided for each program. In the event that local areas are not able to develop a memorandum of understanding for infrastructure costs, the state funding mechanism would automatically apply.

Workforce Investment Boards

S. 1356 would change the name Workforce Investment Board (WIB) to Workforce Development Board (WDB) and would maintain the current business majority requirement for WDBs. S. 1356 would alter other membership provisions, including a requirement that a minimum of 20% of WDB members represent the workforce. These changes would apply to both the state and local boards.

In addition, S. 1356 would add state WIB functions to

develop recommendations to align core and non-core programs, develop plans to remove barriers to coordination and non-duplication, develop career pathways programs, develop and expand industry or sector partnership initiatives, identify regions for purposes of regional planning, design and implement integrated data systems, and develop and disseminate best practices.

Similarly, S. 1356 would change local WDB functions to require

expanded parameters of regional economic analysis that LWDBs conduct, efforts to engage local employers, development and expansion of career pathways programs, and identification and promotion of proven and promising practices in workforce development.

Finally, S. 1356 would require that the Secretary of Labor (in consultation with the Secretary of Education) develop and identify guidelines for qualifications of directors of state and local WDBs.

Performance Accountability

Under S. 1356 , "state performance accountability measures" would consist of the primary indicators of performance described in Section 131(b)(2)(A)(i) and any additional indicators identified by individual states. These six primary indicators of performance would be

the percentage of program participants who are employed during the second quarter after exit from the program; the percentage of program participants who are employed during the fourth quarter after exit from the program; the median earnings of program participants who are employed during the second quarter after exit from the program; the percentage of program participants who obtain a recognized postsecondary credential, or a secondary school diploma or its recognized equivalent, during participation in or within one year after exit from the program; the percentage of program participants who, during a program year, are in an education or training program that leads to a recognized postsecondary credential or employment and who are achieving measurable skill gains toward such a credential or employment; and the indicators of effectiveness in serving employers (to be developed by the Secretary of Labor and Education).

These primary indicators of performance would apply to most programs authorized under WIA, including the Adult and Dislocated Worker formula grant programs, national programs, adult education programs, Employment Service programs, and Vocational Rehabilitation programs. A slightly different set of six indicators would apply to youth programs authorized under WIA.

Finally, S. 1356 would establish the use of a statistical model (regression) to adjust levels of performance based on economic conditions and characteristics of the populations served.

Planning

S. 1356 would change state and local planning requirements to combine more programs into a single planning process.

Specifically, for state plans, S. 1356 would require states to submit a Unified State Plan (USP) to the Secretaries of Labor and Education every four years that covers the "core" program—WIA state formula grant programs, adult education programs, the Employment Service, and vocational rehabilitation programs. The USP would include

strategic planning elements: economic conditions of the state, a description of the workforce (including gaps between workforce and employer needs), workforce development activities, and a strategy for aligning core programs; and operational planning elements: alignment of programs with WIA programs and other employment programs not covered under the USP, implementation of career pathways, provision of support services, integration of technology into service delivery, assistance to local WIBs and One-Stop partners, and assessment plans for measuring effectiveness of One-Stop programs.

In addition, S. 1356 would allow states to submit a Combined State Plan (CSP), which would cover the core programs and one or more of the partner programs in the One-Stop system. States choosing to submit a CSP would be required to provide the same content as in the USP.

Employment and Training Activities

Some of the changes that S. 1356 would make to employment and training activities include

an increase from 30% to 75% in the minimum percentage of funding that must be spent on out-of-school youth; the addition of several new allowable statewide activities, including developing and implementing industry sector strategies, career pathway programs, microenterprise programs, and business intermediary strategies; the addition of a required activity for local areas to designate a dedicated business liaison to develop relationships and networks with local employers; the addition of incumbent worker training (i.e., training for currently employed workers) and transitional jobs to the list of allowable training activities at the local level; an increase from 50% to 75% in the allowable wage reimbursement rate for on-the-job training; the addition of a series of allowable local activities related to coordinating with non-WIA programs, developing and expanding sector strategies, and collaborating with multiple employers to address skill gaps; and the removal of the sequences of services requirement, such that individuals would be eligible to receive training without core or intensive services if a One-Stop operator determines the individual is ready and would benefit from training.

Title III: Adult Education and Family Literacy Act7

The Adult Education and Family Literacy Act (AEFLA) is the primary federal legislation that supports basic education for out-of-school adults. Commonly called "adult education," the programs funded by AEFLA typically support educational services at the secondary level and below, as well as English language training. Approximately 95% of AEFLA funding is allotted to the states via formula grants. States are required to subgrant the large majority of these grants to local providers that deliver educational services.

Authorization and Set-Asides

Authorization of appropriations for AEFLA expired after FY2003, but the authorized programs continued under the appropriations process. Under current law, approximately 5% of the AEFLA appropriation is set aside for national programs and incentive grants.

S. 1356 would authorize such sums as necessary for FY2014 through FY2018. The bill would maintain a set-aside of 2% for National Activities and would repeal the other set-asides. The remaining funds would be allotted to states via formula grants.

Performance Accountability System

Under current law, AEFLA performance metrics are specific to the program. AEFLA grantees report educational progress for all participants and additional outcomes (such as entering employment or the receipt of a secondary credential) for certain subpopulations of participants.

S. 1356 would replace the current AEFLA-specific performance accountability metrics with new common metrics across all titles of S. 1356 programs. These metrics would focus on employment, earnings, and credential attainment. Reporting participants' educational progress not resulting in the attainment of a credential would no longer be required.

State and Local Activities

S. 1356 would amend AEFLA to increase the alignment of adult education with other employment and training activities. When awarding subgrants to localities, it would require states to consider a local provider's ability to meet the new employment and credential-oriented performance metrics as well as the provider's capacity to provide integrated education and training. S. 1356 would also increase the portion of state grant funds that may be used for state leadership activities (SLA) and would require states to use SLA funding to develop or enhance the alignment of adult education activities with other core programs of One-Stop partners.

S. 1356 would create a new set-aside of 12% of state grant funds for English Language-Civics grants. These grants would be allotted to states using a formula that considers recent levels of authorized immigration to the state. While the codification of this set-aside would be new, appropriations legislation has set aside a similar portion of AEFLA funds for this purpose since FY2000.

Title IV: Amendments to the Wagner-Peyser Act11

Title III of the Workforce Investment Act—Workforce Investment-Related Activities—makes amendments to the Wagner-Peyser Act of 1933 (29 U.S.C. 49 et seq. ), which authorizes the Employment Service (ES). The ES is the central component of most states' One-Stop delivery systems, as ES services are universally accessible to job seekers and employers and ES offices may not exist outside of the One-Stop delivery system. ES is one of the required partners in the One-Stop delivery system. Its central mission is to facilitate the match between individuals seeking work and employers seeking workers. It has been a central component of the workforce development system through WIA. Title III adds Section 15 ("Employment Statistics") to Wagner-Peyser, which requires the Secretary of Labor to develop, provide, and improve various types of labor market information.

S. 1356 would maintain the ES system, while making some changes and additions. These would include

required colocation of ES offices with One-Stop centers; creation of a competitive grant pilot program for ES agencies to enhance professional development of ES staff; and establishment of a Workforce Information Advisory Council to meet with the Secretary of Labor at least two times a year for the purpose of evaluating and improving the national labor market information system.

Title V: Amendments to the Rehabilitation Act of 197312

The Rehabilitation Act of 1973, as amended, authorizes programs that support the employment of individuals with disabilities. The largest of these programs is Vocational Rehabilitation (VR) grants to states, which provides formula funding to state agencies that provide customized employment services to eligible individuals. Other programs support grants or independent agencies that relate to the employment or independent living of individuals with disabilities.

Authorizations of Appropriations

Title V of S. 1356 would authorize such sums as necessary from FY2014 through FY2018 for programs authorized under the Rehabilitation Act. In FY2013, approximately $3.4 billion was appropriated under the Rehabilitation Act, of which about $3.1 billion was allotted to VR grants to states.

Revised Purposes and Proposed Programmatic Changes

S. 1356 would insert three new purposes into Section 2 of the Rehabilitation Act. Programmatic changes that would reflect these added themes are included throughout the legislation:

Emphasis on competitive integrated employment for individuals with disabilities . The bill would insert a new definition of "competitive integrated employment" into the general provisions of the Rehabilitation Act. Language would be revised throughout the act to emphasize competitive integrated employment rather than simply employment for program participants. The bill would also add conditions to the subminimum wage provisions of the Fair Labor Standards Act that would increase the regulation of employers certified to pay subminimum wages and encourage the transition of workers employed under the subminimum wage provisions to competitive integrated employment. Increasing employment opportunities for individuals with disabilities by encouraging involvement and input from employers . S. 1356 would amend the Rehabilitation Act to allow states to spend VR funds on outreach, technical assistance, and other services to employers that provide opportunities for VR clients. State plans would be required to describe how agencies will collaborate with employers to develop community-based competitive integrated employment. The bill would reauthorize Projects with Industry competitive grants that provide funding for projects that involve private businesses in developing employment for individuals with disabilities. S. 1356 would also create a public education campaign about hiring individuals with disabilities. Emphasis on services to youth with disabilities and students with disabilities to assist these populations in transitioning from secondary school to postsecondary education or competitive integrated employment . S. 1356 would require each state to reserve 15% of state VR grants for pre-employment transition services for this population. It would also reserve 50% of supported employment state grant funding for services to youth with disabilities. The bill would create pre-employment transition coordinators at the national and local levels to coordinate services for youth with disabilities transitioning to the workforce or postsecondary education.

Administrative Changes and New Administrative Entities

Under current law, most programs authorized by the Rehabilitation Act are administered by the Rehabilitation Services Administration (RSA) of the Department of Education (ED). S. 1356 would move the act's administration to newly created entities in other departments: activities under Titles I, III, and VI of the Rehabilitation Act would move to the Department of Labor, while activities under Title VII would move to the Department of Health and Human Services.

Note on Terminology

This section discusses Title V of the Workforce Investment Act of 2013. This one title of S. 1356 would amend each of the seven titles of the Rehabilitation Act and would add an eighth. Unless specified otherwise, when the accompanying table refers to titles of law, it is referring to the titles of the Rehabilitation Act, not titles of WIA.