The Workforce Investment Act of 1998 (WIA; P.L. 105-220 ) is the primary federal program that supports workforce development. WIA includes five titles: Title I—Workforce Investment Systems—provides job training and related services to unemployed or underemployed individuals; Title II—Adult Education and Literacy—provides education services to assist adults in improving their literacy and completing secondary education; Title III—Workforce Investment-Related Activities—amends the Wagner-Peyser Act of 1933 to integrate the U.S. Employment Service (ES) into the One-Stop system established by WIA; Title IV—Rehabilitation Act Amendments of 1998—amends the Rehabilitation Act of 1973, which provides vocational rehabilitation services to individuals with disabilities, to integrate vocational rehabilitation into the One-Stop system; and Title V—General Provisions—specifies components of State Unified Plans and provisions for state incentive grants. Workforce development programs provide a combination of education and training services to prepare individuals for work and to help them improve their prospects in the labor market. In the broadest sense, workforce development includes secondary and postsecondary education, on-the-job and employer-provided training, and the publicly funded system of job training and employment services. Most workforce development occurs in the workplace during the course of doing business. The federal government provides workforce development activities through WIA's programs and other programs designed to increase the employment and earnings of workers. Workforce development may include activities such as job search assistance, career counseling, occupational skill training, classroom training, or on-the-job training. The focus of this report is on Title I of WIA, which authorizes programs to provide job search, education, and training activities for individuals seeking to gain or improve their employment prospects and which establishes the One-Stop delivery system. The programs and services in Title I are covered in detail in this report, while the programs and services in Titles II, III, and IV are discussed briefly. Title II of WIA provides funding for adult education and literacy activities. Title III of WIA amends the Wagner-Peyser Act of 1933, which establishes the Employment Service (ES), to make the ES an integral part of the One-Stop system created by WIA. Because the ES is a critical part of the One-Stop system, it is discussed briefly in this report even though it is authorized by separate legislation (Wagner-Peyser Act of 1933). Title IV of WIA authorizes funding for vocational rehabilitation services for individuals with disabilities. Following a brief history of federal workforce development programs, there is a discussion of the provisions and characteristics of WIA Title I programs and services. Next, there is a description of the One-Stop delivery system and Workforce Investment Boards (WIBs). This section includes an overview of the Employment Service, whose authorizing legislation (Wagner-Peyser Act of 1933) was amended by Title III of WIA. Following that, the report covers the services provided by the state formula grant programs and the national programs authorized under Title I of WIA. The section on Title I concludes with a discussion of funding and performance accountability. The report then provides a description of the services, funding, and performance accountability provisions of WIA Titles II and IV. Appendix A provides a glossary of selected key terms in WIA. Appendix B provides an appropriations history for programs authorized under Titles I, II, and IV of WIA and under the Wagner-Peyser Act of 1933. Reauthorization legislation was considered in the 108 th and 109 th Congresses. In both the 108 th and 109 th Congresses, the House and the Senate passed different versions of legislation that would have reauthorized WIA. However, in neither instance did the two chambers reconcile the differences between the bills they had passed. In the 113 th Congress, WIA was reauthorized by Congress and signed into law on July 22, 2014, after passing the Senate on June 25, 2014, by a vote of 95-3 and the House on July 9, 2014, by a vote of 415-6 (the new law is the Workforce Innovation and Opportunity Act; P.L. 113-128 ). P.L. 113-128 authorizes appropriations for WIOA programs from FY2015 through FY2020. Title I of WIA provides job training and related services to unemployed and underemployed individuals. Title I programs are administered by the U.S. Department of Labor (DOL), primarily through its Employment and Training Administration (DOLETA). Although WIA authorized the appropriations of funds for WIA programs through September 30, 2003, WIA programs have continued to be funded through annual appropriations. In FY2014, programs and activities authorized under Title I of WIA were funded at $4.8 billion, including $2.6 billion for state formula grants for youth, adult, and dislocated worker training and employment activities. The first major federal funding for training programs in the postwar period started with the enactment of the Manpower Development Training Act (MDTA) in 1962, although federal "employment policy," broadly defined, had its origin in New Deal era programs such as Unemployment Insurance (UI) and public works employment. Starting with MDTA, there have been four main federal workforce development programs. Enacted in 1962, the MDTA (P.L. 87-415) provided federal funding to retrain workers displaced because of technological change. Later in MDTA's existence, the majority of funding went to classroom and on-the-job training (OJT) that was targeted to low-income individuals and welfare recipients. Funding from the MDTA was allocated by formula to local communities based on factors of population and poverty. Grants under MDTA were administered through regional DOL offices and went directly to local service providers. The Comprehensive Employment and Training Act (CETA; P.L. 93-203 ), enacted in 1973, made substantial changes to federal workforce development programs. CETA transferred more decision-making authority away from the federal government and toward local governments. Specifically, CETA provided funding to about 470 "prime sponsors" (sub-state political entities such as city or county governments, consortia of governments, etc.) to administer and monitor job training activities. Services under CETA—which included on-the-job training, classroom training, and public service employment (PSE)—were targeted to low-income populations, welfare recipients, and disadvantaged youth. At its peak in 1978, the PSE component of CETA supported about 755,000 jobs and accounted for nearly 60% of the CETA budget. CETA was amended in 1978 in part to create private industry councils (PIC) to expand the role of the private sector in developing, implementing, and evaluating CETA programs. The composition of PICs included representatives of business, labor, education, and other groups. In 1982, changes to federal workforce development policy were made by enactment of the Job Training Partnership Act (JTPA, P.L. 97-300 ). Major changes implemented under JTPA, which provided classroom and on-the-job training to low-income and dislocated workers, include service delivery at the level of 640 "service delivery areas," federal funding allocation first to state governors and then to PICs in each of the service delivery areas (unlike CETA, which provided allocations directly to prime sponsors), prohibition of the public service employment component, and a new emphasis on targeted job training and reemployment. With a new emphasis on training (rather than public employment), JTPA required that at least 70% of funding for service delivery areas be used for training. Although this percentage was dropped to 50% in the 1992 amendments to JTPA, the emphasis on training remained. Title I authorizes several state and national programs to provide employment and training services and establishes the One-Stop system as a means of delivering and coordinating workforce development activities. Highlights of WIA Title I programs include the following: Administration by the U.S. Department of Labor (DOL), primarily through its Employment and Training Administration (DOLETA). Three employment and training programs —Youth Activities, Adult Activities, and Dislocated Worker Activities—funded by federal-to-state formula grants that are based on measures of states' unemployment and poverty. Six national programs , including Job Corps, the Native American Program, the Migrant and Seasonal Farmworker Program, the Veterans' Workforce Investment Program, Youth Opportunity Grants, and YouthBuild. Demonstration and pilot projects that currently include programs such as the Reintegration of Ex-Offenders program, the Career Pathways Innovation Fund, and the Green Jobs Innovation Fund program. A system of "One-Stop" centers through which state and local WIA training and employment activities are provided and in which certain partner programs must be co-located. Workforce Investment Boards (WIBs) responsible for policy and oversight of state and local workforce investment activities. Local discretion in the design of services for WIA participants. Universal access to employment and training services for WIA participants. An accountability system based on core indicators with state-adjusted levels of performance resulting from negotiations between each state and the Secretary of Labor. Operation on a July 1-June 30 program year . This report provides details of WIA Title I state formula program structure, services, allocation formulas, and performance accountability. In addition, it provides a program overview for national grant programs. It is worth noting at this point, however, the elements of WIA that characterize it as a workforce development system. WIA is designed to be a demand driven workforce development system. This system is supposed to provide employment and training services that are responsive to the demands of local area employers. The demand driven nature of WIA is manifested in elements such as Workforce Investment Boards (WIBs), a majority of whose members must be representatives of business. WIA provides local control to officials administering programs under WIA. Under the state formula grant portion of WIA, which accounts for nearly 60% of total WIA Title I funding, the majority of funds are allocated to local WIBs (after initial allocation from DOLETA to the states) that are authorized to determine the mix of service provision, eligible providers, and types of training programs, among other decisions. The WIA system provides central points of service by its system of One-Stop centers. The concept of a One-Stop center is to provide a single location for individuals seeking employment and training services, thus making the process of locating and accessing employment services more efficient and seamless. WIA requires certain programs to be "partners" in the One-Stop center, either by physical collocation or other accessible arrangements. Unlike its predecessor, the Job Training Partnership Act (JTPA), WIA provides universal access to its services. Whereas JTPA provided training services to individuals who were "economically disadvantaged" or dislocated, WIA provides core services (discussed below) to any individual regardless of age or employment status. WIA is oriented toward a work first approach to workforce development. That is, placement in employment is the first goal of the services provided under Title I of WIA. To this end, WIA established a "sequence of services" (discussed below) that requires individuals to receive core and intensive services before training is considered. Similarly, there is no minimum established in WIA on the amount states and local WIBs must spend for training services; JTPA, on the other hand, required that a fixed percentage of funding be spent on training services. WIA provides consumer choice to participants. As explained later in this report, participants determined to be eligible for training services are provided with Individual Training Accounts (ITAs), with which they may choose a type of training and the particular provider from which to receive training. Because the initial point of contact for WIA participants is frequently at a One-Stop center, it is worthwhile to explain briefly the "One-Stop delivery system" established by WIA before describing the services available at and accessible through the One-Stop centers. One innovation of WIA was the establishment of One-Stop centers to provide access to employment and training services. WIA requires each state to establish a One-Stop delivery system to: provide "core" services and access to "intensive" and training services (see "Local Activities" in the next section for a description of the three levels of services provided for in Title I); provide access to programs and activities carried out by One-Stop partners (see below); and provide access to all labor market information, job search, placement, recruitment, and labor exchange services authorized under the Wagner-Peyser Act. Each local workforce investment area in a state is required to have at least one physical One-Stop center in which the aforementioned programs and services are accessible. Services may be collocated or available through a network of affiliated sites or One-Stop partners linked electronically. As noted, one of the characteristics of the WIA One-Stop system is the establishment of a central point of service for those seeking employment, training, and related services. To this end, WIA requires that certain partner programs provide access to core services in the One-Stop system and allows additional programs to operate in the One-Stop system. The required partner programs are listed in Table 1 . In addition to the required partner programs listed in Table 1 , WIA specifies that One-Stop centers may incorporate other partner programs, including programs for recipients of Temporary Assistance for Needy Families (TANF) authorized under the Social Security Act; any employment and training activities required of recipients under the Supplemental Nutrition Assistance Program (the SNAP, formerly known as the Food Stamp program) and work programs for those recipients who are able-bodied adults without dependents; programs authorized under the National and Community Service Act of 1990 (e.g., AmeriCorps); and other appropriate government or private-sector programs. The local WIB must enter into a memorandum of understanding (MOU) with all One-Stop partners that describes the operation of the One-Stop delivery system in the local area. Specifically, the MOU must enumerate the services to be provided, specify the division of operating costs among partners, describe methods of referral of individuals to partner programs, and indicate the duration of the memorandum and the procedures to amend the memorandum. The Employment Service, which is authorized by the Wagner-Peyser Act of 1933 (29 U.S.C. 49 et seq. ) 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. Although the ES is one of 18 required partners in the One-Stop delivery system, its central mission—to facilitate the match between individuals seeking work and employers seeking workers—makes it critical to the functioning of the workforce development system under WIA. Title III of WIA amends the Wagner-Peyser Act to require states to deliver employment services through the One-Stop system and to add Section 15 ("Employment Statistics") to the Wagner-Peyser Act. Section 15 requires the Secretary of Labor to oversee the development, maintenance, and continuous improvement of a nationwide employment statistics system. The two major categories of activities performed by the ES are the administration of State Grants and National Activities. Services provided by the ES State Grants include labor exchange services (e.g., core and intensive employment services, job search and placement assistance, labor market information); evaluation of programs; recruitment and technical services for employers; and work tests for the state unemployment compensation system. As noted, WIA amended the Wagner-Peyser Act to make the ES a central part of the workforce development system under WIA. To this end, one of the key functions played by the ES is to deliver many of the "core" services that form what is known as the "sequential service strategy" of WIA. That is, Wagner-Peyser Act-funded ES services are available at all comprehensive One-Stop centers and many affiliated sites. The ES staff often are the first to assist individuals seeking employment assistance and refer individuals to other programs in the One-Stop system of partners. States provide labor exchange services through three tiers of service delivery: Self-Service. These services, which are typically electronic databases of job openings, are accessed without staff assistance. Not only are these services available to job seekers and employers without ES staff assistance, but typically customers can access these electronic resources away from the local One-Stop and outside normal business hours (e.g., via the Internet); Facilitated Self-Help. Resources of this type are typically available in local One-Stop offices and include access to self-service tools (e.g., computers, resume-writing software, fax machines, photocopiers, and Internet-based tools). The resource room staff interacts with the customers to facilitate usage of the resources. Staff-Assisted Service. These services are provided to customers both one-on-one and in groups. One-on-one services for job seekers often include assessment, career counseling, development of an individual service plan, and intensive job search assistance. One-on-one services for employers may include taking a job order or offering advice on how to increase job seeker interest in a job opening. Group services for job seekers include orientation, job clubs, and workshops on such topics as resume preparation, job search strategies, and interviewing. Group services for employers may include workshops on such topics as state UI laws or use of labor market information. Other staff-assisted services that benefit both job seekers and employers include screening and referring job seekers to job openings. Staff-assisted services must be provided in at least one physical location in each workforce investment area. Programs authorized under Title I of WIA have performance accountability requirements to measure the employment and wage outcomes for participants. Similar to the Title I programs, the ES uses three measures of performance: entered employment, employment retention, and average earnings. The vast majority of funds (97%) for Employment Service activities are allocated to states on the basis of each state's relative share of the following two factors: civilian labor force (CLF) and total unemployment. Specifically, two-thirds of the ES state funding is allocated on the basis of the relative share of CLF and one-third on the basis of the relative share of total unemployment. The remaining 3% of total funding is distributed to states with civilian labor forces below 1 million and to states that need additional resources to carry out ES activities. Key features of the state formula allocation for Wagner-Peyser Act state allotments include the following: A reservation for Guam and the Virgin Islands of an amount equal to the allotment percentage each received in FY1983 (this is reserved prior to state allocations). Provisions for minimum allotments; a state cannot receive less than 0.28% of the total allocation to all states in a given program year. "Hold harmless" provisions such that individual states will not experience large swings in year-to-year funding for this stream. Specifically, a state may not receive less than 90% of its relative share of prior year funding. Of the total allocation to states, 90% may be used for labor exchange services such as job search and placement assistance, labor market information, and referral to employers. The remaining 10% (Governor's Reserve) of the state allocation may be used for activities such as performance incentives and services for groups with special needs. WIA establishes state and local workforce investment boards (WIBs) as part of the governance structure for programs that form the workforce development system under WIA. This section provides information on state and local WIB membership requirements and functions. For both the state and local WIBs, WIA specifies the composition, but does not specify the number, of board members. For both state and local WIBs, however, WIA requires that the majority of board members, as well as the board chairs, be representatives of business. State WIBs, authorized under WIA Section 111 and established by the governor of each state, consist of the following required members: the governor, two members of each chamber of the state legislature, representatives of business, chief elected officials, representatives of labor organizations, representatives with experience in youth activities, representatives with experience in the delivery of workforce investment activities (e.g. executive officers of community colleges), lead state agency officials responsible for the "required" One-Stop partner programs, and any other representatives and state agency officials the governor designates. With the exception of the board members who are from the state legislature, the governor appoints all representatives on the state WIB. The state WIB is responsible for assisting the governor in the following activities: development of a state plan; development and continuous improvement of statewide workforce activities, including coordination and nonduplication of One-Stop partner programs; designation of local workforce investment areas; development of formulas for within-state distribution of adult and youth funds; development and continuous improvement of state performance measures; preparation of annual reports to DOL on performance measures; and development of the statewide employment statistics system. Local WIBs, authorized under WIA Section 117 and appointed by the chief local elected official(s) in local workforce investment areas, consist of representatives of the following required organizations or entities: business, local educational entities, labor organizations, community-based organizations, economic development agencies, One-Stop partner programs, and any other representatives deemed appropriate by the local elected official. The local WIB performs multiple functions in carrying out the programs and services authorized under WIA, including development of a local plan for workforce investment activities; selection of One-Stop operators and eligible providers of training; development of a budget and administration of funding to service providers; oversight of all programs for youth, adult, and dislocated workers; negotiation of local performance measures with the governor; assistance in development of a statewide employment statistics system; coordination of WIA workforce development activities with local economic development activities; and promotion of participation of private sector employers in the workforce development system. Of the many policies for which local WIBs have responsibility, three in particular illustrate the important governance role that local WIBs play. One, the local WIB is responsible for developing an MOU among One-Stop partners (see " One-Stop Delivery System "). Two, the local WIB may designate or certify the following entities (or consortia of these entities) to serve as the One-Stop operator: a postsecondary educational institution, an employment service agency, a nonprofit organization, a for-profit entity, a government agency, and other interested entities. WIA precludes elementary or secondary schools from eligibility to serve as a One-Stop operator. Three, the local WIB is responsible for establishing limits on the duration and amount of Individual Training Accounts (ITAs). As noted, WIA was enacted in 1998 and replaced JTPA as the federal government's primary employment and job training legislation. Title I—Workforce Investment Systems—authorizes job training and related services to unemployed or underemployed individuals. Funds authorized under Subtitle B of WIA ("Statewide and Local Workforce Investment Systems") are allocated by formula and are used for workforce development activities. As stated in WIA, the purpose of workforce systems is to "increase the employment, retention, and earnings of participants, and increase occupational skill attainment by participants, and as a result, improve the quality of the workforce, reduce welfare dependency, and enhance the productivity and competitiveness of the Nation." The three formula grant programs in Title I—youth, adults, and dislocated workers—authorize funding for employment and training activities available through the national system of One-Stop centers and provided by service providers in local communities. The majority of funding for WIA Title I programs is provided through state formula grants. The adult and dislocated worker programs both provide training and related services to individuals ages 18 and older. The programs are funded through formula grants allocated to states, which in turn allocate the majority of those funds to local entities. These two programs are discussed together because the services provided are the same. However, the two programs have different eligibility criteria and different allocation formulas (see " Funding for Title I Programs and Activities ," below, for the difference in allocation formulas). Any individual age 18 or older is eligible for services funded by the adult activities allocation. An individual is generally eligible for services under the provisions for dislocated workers in WIA if the person has been terminated or laid off, or has been notified of a termination or layoff; is sufficiently attached to the workforce, demonstrated either through eligibility for/exhaustion of unemployment compensation or through other means; and is unlikely to return to the previous industry or occupation. There is some breadth in the definition of a "dislocated worker" under WIA. For instance, eligibility is afforded in cases of anticipated facility closings and for self-employed workers. However, the core eligibility requirement is displacement due to termination or facility closing. There is no eligibility requirement under WIA related to the cause of the dislocation. From the perspective of the individual, however, the classification of "adult" or "dislocated" will not make a difference in the services received under WIA. After funds are allocated from DOLETA to individual states by formula, the governor of each state can reserve not more than 15% of the Adult Activities state allocation, not more than 15% of the Dislocated Worker Activities state allocation, and not more than 15% of the Youth Activities allocation for "statewide activities." Specifically, funds in the 15% reserve must be used for "required" activities and may be used for "allowable" activities. In addition, of the state allocation for dislocated worker activities, the governor of each state must also reserve not more than 25% for rapid response activities. In sum, not more than 15% of Adult Activities state allocations, not more than 15% of the Youth Activities state allocations, and not more than 40% of Dislocated Worker Activities state allocations are reserved at the state level for statewide activities; the remainder of these three funding streams are subgranted to local areas within each state. Required statewide employment and training activities, which are funded by the 15% reserve funds from each of the youth, adult, and dislocated worker state allocations, include dissemination of the state list of eligible providers of training services (including performance and program cost information for these providers) and eligible providers of youth activities; evaluations of state workforce investment programs for the purpose of "continuously improving" state activities to "achieve high-level performance" within the workforce development system and "high-level outcomes" from the workforce development system; distribution of incentive grants to local workforce investment areas for regional cooperation, local coordination of activities, and "exemplary performance" on local performance measures; technical assistance to local areas not meeting required performance measures; assistance to local areas in establishing One-Stop delivery systems; statewide activities and additional assistance to local areas with high concentrations of eligible youth to carry out program design and program elements for youth; and operation of a fiscal and management accountability system in order to report on and monitor the use of WIA funds. Allowable statewide employment and training activities include administration of state activities; technical and capacity building assistance to One-Stop operators and partners and training providers; research and demonstration projects; implementation of innovative training programs for incumbent workers and displaced homemakers; and assistance in identifying eligible providers of training. From the 25% reserve from the dislocated worker state allocation, states are required to carry out rapid response activities to assist workers who have been dislocated in obtaining reemployment as quickly as possible. A dislocation event is typically defined as a permanent closure or mass layoffs at a facility or a disaster (natural or otherwise) resulting in mass job dislocation. The services funded under this reserve may include establishment of onsite contact with employers and employee representatives immediately after the dislocation event; provision of information and access to employment and training programs; assistance in establishing a labor-management agreement to determine the employment and training needs of the affected workers; provision of emergency assistance; and provision of assistance to the affected local community to develop a coordinated response in seeking state economic development aid. Following the reservation of funds at the state level (for the adult and dislocated worker programs), the remaining funds are allocated to local areas to carry out "required" and "permissible" training and employment activities. At the local level, funds must be used to assist in establishing a One-Stop delivery system and to provide core, intensive, and training services. Table 2 provides information on the required local activities for each of the three service levels of WIA adult and dislocated worker programs. The program for adult and dislocated worker participants in WIA is structured around a sequential service strategy that consists of three levels of services: core, intensive, and training. Service at one level is a prerequisite for service at the next level. That is, any individual may receive "core" services. To receive intensive services, WIA requires that individuals be unable, after receiving core services, "to obtain or retain employment that allows for self-sufficiency." To receive training, after receiving intensive services, an individual must have been unable to obtain or retain employment that allows for self sufficiency. Further, to be considered for training, an individual must also have the "skills and qualifications" to participate successfully in training (as determined by a One-Stop case manager), choose a training service linked to an occupation in the local area (or be willing to locate to another area where the occupation is in demand), and be unable to obtain other grant assistance (e.g., Pell grants) for the training services. Statutory provisions do not specify an amount of time an individual must spend or the number of attempts that must be made to gain employment before moving to the next level in the sequence of services. WIA regulations provide additional guidance on the sequence of services but do not set time or job application requirements. Specifically, the regulations stipulate that an individual must receive at least one core service before receiving intensive services and must receive at least one intensive service before moving to training services. The regulations clearly state that there is "no Federally-required minimum time period for participation" in core or intensive services before receiving the next level of service. Following the decision of a One-Stop operator to provide an individual with access to training services, the implementation of training in WIA is built on the concept of consumer choice, which involves two main components: eligible providers and Individual Training Accounts (ITA). Local WIBs are responsible for establishing and overseeing eligible providers of training in the local workforce investment area. The purpose of having a list of eligible providers, as opposed to the One-Stop centers contracting directly with a training provider of its choosing, is to provide choice to "customers" who are accessing WIA services. There are two types of provider eligibility: initial and subsequent. For initial eligibility, two types of entities must submit applications directly to the relevant local WIB, which sets the application procedures: a postsecondary educational institution that is eligible to receive federal funds under Title IV of the Higher Education Act of 1965 and offers programs leading to an associate or baccalaureate degree, or an entity that provides apprenticeship programs registered under the National Apprenticeship Act. If entities other than those described above wish to become eligible providers of training, they must apply to the local WIB (according to a procedure established by the governor of the state), which then reviews applications submitted at the local level. In order to attain subsequent eligibility, existing training providers must follow procedures established by the governor and implemented by the local WIB. WIA does, however, specify particular information that eligible providers must submit to be considered for continued eligibility. Specifically, training providers must annually submit the following performance and cost information to the local WIB: program completion rates for all individuals participating in the program; percentage of all individuals completing the program who obtain unsubsidized employment; wages at placement in employment for all individuals participating in the training program; percentage of WIA participants completing the training program and entering unsubsidized employment; retention rates after six months in unsubsidized employment of WIA participants completing the program; wages received after six months in unsubsidized employment of WIA participants completing the program; rates of licensure, certification, or degree attainment of all graduates of the program; and program cost information for WIA participants. For eligible training providers that serve few participants supported by WIA funds, the requirement to collect employment and wage data for all students in a training program may serve as a disincentive to participate in the ITA system. As of September 2009, 40 states had received a waiver from DOLETA to extend the time limit on the period of initial eligibility for training providers. These waivers were granted on the basis that the burden of providing data for all students (rather than just WIA-funded students) might encourage training providers to drop out of the ITA system and thus limit customer choice. When an individual is deemed eligible to receive training services, that individual, in consultation with a case manager, may choose training services from a list of eligible providers (discussed above). At that point, an Individual Training Account (ITA) is established, from which payment is made to the eligible training provider for training services. Under WIA's predecessor, the Job Training Partnership Act (JTPA), customers entering training were often limited to programs that local areas decided to fund—a "contracted training" approach. In the ITA approach under WIA, participants are able to purchase training from the list of eligible trainers. Local WIBs have the authority to set limits on the type and duration of training. In addition, local WIBs may choose to set limits on the amount of an ITA, based on individual circumstances or on an across-the-board level. In addition to the formula grants for Adult Activities and Dislocated Worker Activities, WIA authorizes a formula grant program for Youth Activities (although individuals ages 18 or older are also eligible for services provided through the Adult Activities program). As specified in the law, the program has several purposes: to provide assistance in achieving academic and employment success through activities that improve educational and skill competencies and foster effective connections to employers; to ensure ongoing adult mentoring opportunities for eligible youth; to provide opportunities for training, continued supportive services, and participation in activities related to leadership, citizenship, and community service; and to offer incentives for recognition and achievement to youth. A youth is eligible for the Youth Activities formula grant program if the individual is age 14 through 21, is a low-income individual, and has one or more of the following barriers: deficient in basic literacy skills; a school dropout; homeless, a runaway, or a foster child; pregnant or parenting; an offender; or requires additional assistance to complete an educational program or to secure and hold employment. DOLETA provides funding to states based on each state's relative share of national unemployment and youth poverty. In turn, the states, in consultation with state WIBs, distribute 85% of funds, also based on unemployment and poverty factors, to local workforce areas that are designated by the governor. The state retains as much as 15% for statewide activities. Local WIBs, in coordination with their youth councils, competitively award funds to local organizations and other entities to provide employment and job training services to youth. Local programs are responsible for carrying out the purposes of WIA. In addition to assessing the skills of youth who receive services, local programs must provide the following 10 activities or "elements" to youth: tutoring, study skills training, and instruction leading to completion of secondary school, including dropout prevention strategies; alternative secondary school services, as appropriate; summer employment opportunities that are directly linked to academic and occupational learning; as appropriate, paid and unpaid work experiences, including internships and job shadowing; occupational skill training, as appropriate; leadership development opportunities; supportive services; adult mentoring for the period of participation and a subsequent period, for a total of not less than 12 months; comprehensive guidance and counseling, which may include drug and alcohol abuse counseling and referral, as appropriate; and follow-up services for not less than 12 months after the completion of participation, as appropriate. Although local WIBs must make all 10 program elements available to youth, each individual youth does not need to participate in all elements. Further, local programs that receive Youth Activities funding need not provide all 10 program elements if certain services are already accessible for all eligible youth in the area; however, these other services must be closely coordinated with the local programs. The Job Corps program is carried out by the Office of Job Corps within the Office of the DOL Secretary, and consists of residential centers throughout the country. The purpose of the program is to provide disadvantaged youth with the skills needed to obtain and hold a job, enter the Armed Forces, or enroll in advanced training or higher education. In addition to receiving academic and employment training, youth also engage in social and other services to promote their overall well-being. Currently, 125 Job Corps centers operate throughout the country. Of the 125 centers, 28 sites are known as Civilian Conservation Corps Centers, which are jointly operated by DOL and the Department of Agriculture or the Department of the Interior. Programs at these sites focus on conserving, developing, or managing public natural resources or public recreational areas. Most Job Corps centers are located on property that is owned or leased long term by the federal government. Job Corps centers may be operated by a federal, state, or local agency; an area vocational education school, or residential vocational school; or a private organization. Authorization for new Job Corps centers is specified in appropriations law. DOL initiates a competitive process seeking applicants that are selected based on their ability to coordinate activities in the workforce system for youth, their ability to offer vocational training opportunities that reflect local employment opportunities, past performance, proposed costs, and other factors. Students may participate in the Job Corps program for up to two years. While at a Job Corps center, students receive the following services and assistance: academic, vocational, employment, and social skills training; work-based learning, which includes vocational skills training and on-the-job training; and counseling and other residential support services, including transportation, child care, a cash clothing allowance or clothing that is needed for participating in the program, and living and other allowances. Job Corps centers provide services both on-site and off-site, and they contract some of these services. Centers rely on outreach and admissions contractors to recruit students to the program. These contractors may include a One-Stop center, community action organizations, private for-profit and nonprofit businesses, labor organizations, or other entities that have contact with youth. Contractors seek out potential applicants, conduct interviews with applicants to identify their needs and eligibility status, and identify youth who are interested and likely Job Corps participants. Similarly, centers rely on placement agencies—organizations that enter into a contract or other agreement with Job Corps—to provide placement services for graduates and, to the extent possible, former students. Services such as vocational training are sometimes provided by outside organizations, such as the Home Builders Institute. In addition to state formula grants and Job Corps, WIA authorizes a number of competitive grant-based programs to provide employment and training services to special populations. This competitive grant program provides comprehensive workforce investment activities—academic, occupational, and literacy—to assist participants preparing to enter, reenter, or retain unsubsidized employment. Services are provided to Indians, Native Hawaiians, and youth on or near Indian reservations and in Oklahoma, Alaska, or Hawaii. Funding authorized under WIA Section 166 is provided through a biennial competitive grant process to Native American tribes and Native American nonprofit organizations. There are currently 178 grantees. This competitive grant program, which is also referred to as the National Farmworker Jobs Program, provides training and related services (including housing services), and technical assistance, to disadvantaged migrant and seasonal agricultural workers and their dependents. Grants are awarded to public, private, and nonprofit organizations. The program was first authorized by the Economic Opportunity Act of 1964. Funding authorized under WIA Section 167 is provided through a biennial competitive grant process to community-based organizations and public agencies that assist migrant and seasonal farmworkers to gain greater economic stability. There are currently 52 grantees for training grants. This program provides workforce investment activities to veterans to enhance services provided by other providers of workforce services, to provide services not otherwise provided, and to promote maximum job and job training opportunities. Funding is provided through competitive grants to states and nonprofit organizations. It has been administered by DOL's Veterans' Employment and Training Service (VETS) since FY2001. There are currently 22 grantees. The purpose of pilot and demonstration programs is to develop and evaluate innovative approaches to providing employment and training services. Several programs have been specified funded under the authority of Section 171. For example, the Reintegration of Ex-Offenders program is a competitive grant program that combines two previous demonstration projects, the Prisoner Reentry Initiative (PRI) and the Responsible Reintegration of Youthful Offenders (RRYO). PRI, which was first funded in FY2005, supports faith-based and community organizations that help recently released prisoners find work when they return to their communities. RRYO, first funded in FY2000, supports projects that serve young offenders and youth at risk of becoming involved in the juvenile justice system. In FY2008, the Reintegration of Ex-Offenders program combined the PRI and RRYO into a single funding stream. From total funding appropriated for the Dislocated Workers Activities program in a fiscal year, Section 132(a)(2)(A) specifies that 20% is to be used for a National Reserve account, which provides for National Emergency Grants (NEG) and other services for dislocated workers. In practice, the amount provided for each of these activities is often specified in appropriations legislation. These NEGs are awarded to states and local WIBs to provide services for eligible individuals, including dislocated workers, civilian employees of the Departments of Defense or Energy employed at an installation that is being closed within 24 months of eligibility determination, or certain other members of the Armed Forces. Services include job search assistance and training for eligible workers. In addition, NEG funding may be used to provide direct employment ("disaster relief employment") to individuals for a period of up to six months. Finally, NEG funding may be used in some cases for health insurance coverage. In 2007, administration of YouthBuild was transferred from the Department of Housing and Urban Development to DOL under the YouthBuild Transfer Act (P.L. 109-281). This competitive grant program is authorized under WIA. The purpose of YouthBuild is to (1) enable disadvantaged youth to obtain the education and employment skills necessary to achieve economic self-sufficiency in occupations in demand and post-secondary education and training opportunities; (2) provide disadvantaged youth with opportunities for meaningful work and service to communities; (3) foster the development of employment and leadership skills and a commitment to community development among youth in low-income communities; and (4) expand the supply of permanent affordable housing for homeless individuals and low-income families by utilizing the energy of disadvantaged youth. Services include a range of education and workforce investment activities, including instruction, skill building, alternative education, mentoring, and training in the rehabilitation or construction of housing. Notably, any housing unit that is rehabilitated or reconstructed as part of a YouthBuild-funded project may be available only for rental by, or sale to, homeless individuals or low-income families, or for use as transitional or permanent housing to assist homeless individuals achieve independent living. In addition to construction activities, programs offered within a YouthBuild program can support career pathway training targeted toward other high-demand occupations and industries. Youth are eligible for the program if they are (1) ages 16 through 24; (2) a member of a low-income family, a youth in foster care, a youth offender, an individual with a disability, a child of an incarcerated parent, or a migrant youth; and (3) a school dropout. However, youth who do not meet the income or dropout criteria may also be eligible, so long as they are basic-skills deficient despite having earned a high school diploma, GED, or the equivalent; or they have been referred by a high school for the purpose of obtaining a high school diploma. A maximum of 25% of participants may qualify for eligibility according to these latter criteria. Funding for the state and local workforce investment activities authorized under Title I—Adult Activities, Dislocated Worker Activities, and Youth Activities—is allocated by formula. The funding streams for each of the three sets of activities are allocated from DOL to states by a three-factor formula based on each state's relative share of each formula factor. That is, a state's "relative share" of any formula factor is calculated by dividing the factor population (e.g., number of unemployed individuals) in the state by the factor population in the United States as a whole. After the allocations are made to states, within-state allocations are made based on formulas as well (see below for details). Finally, WIA allows local WIBs to transfer up to 20% of the local fund allocation between Adult and Dislocated Worker Activities. Funds for adult employment and training activities are allocated to states on the basis of the following factors: one-third of the funds are allocated on the basis of each state's relative share of total unemployment in areas of substantial unemployment (ASU); one-third of the funds are allocated on the basis of each state's relative share of excess unemployment; and one-third of the funds are allocated on the basis of each state's relative share of economically disadvantaged adults. Key features of the state formula allocation for WIA Adult Activities include the following: A reservation for the outlying areas of not more than 0.25% of the total Adult Activities appropriation (this is reserved prior to state allocations). A minimum grant amount equal to 0.25% of the total allocation to all states in a given program year. For example, in PY2014, the state minimum allotment under the adult funding stream was $1,905,148, which is 0.25% of the total allotted to all states ($762,059,077). A total of eight states received this minimum allotment in PY2014. "Hold harmless" provisions such that individual states will not experience large swings in year-to-year funding for this stream. Specifically, a state may not receive less than 90% of its relative share of prior year funding nor more than 130% of its relative share of prior year funding. After funds are allocated from DOLETA to individual states by formula, the governor of each state can reserve not more than 15% of the Adult Activities state allocation for statewide "employment and training activities." Specifically, funds in the 15% reserve must be used for "required" activities and may be used for "allowable" activities (see the " Structure—Statewide Activities " section, above, for Adult and Dislocated Worker activities). The remainder of the Adult Activities funding stream is suballocated to local areas within the state on the basis of either the same three-factor formula used for state allocations but with substitution of local area relative share of state total; or at least 70% of the allocation by the same three-factor formula used for state allocations and the remaining allocation by a state-derived formula using measures of excess poverty and unemployment within the state. Finally, the within-state allocation requirements include a "hold harmless" provision for local areas, such that a local area must receive an allocation percentage of not less than 90% of the average allocation percentage of that area for the two preceding fiscal years. Funding for the dislocated worker program in WIA consists of two parts: the National Reserve and state formula grants. From total funding appropriated for the Dislocated Workers Activities program in a fiscal year, Section 132(a)(2)(A) specifies that 20% is to be used for a National Reserve account, which provides for National Emergency Grants (NEG) and other services for dislocated workers. Funds for state formula grants for dislocated worker employment and training activities are allocated to states on the basis of the following factors: one-third of the funds are allocated on the basis of each state's relative share of total unemployment; one-third of the funds are allocated on the basis of each state's relative share of excess unemployment; and one-third of the funds are allocated on the basis of each state's relative share of long-term unemployment. Unlike the Adult funding formula, the dislocated workers' formula does not contain provisions for minimum and maximum allotments. Because the dislocated worker formula does not contain these "hold harmless" provisions, individual states tend to experience large swings in year-to-year funding for this stream. For example, in PY2009, 16 states received allotments of 75% or less of their PY2008 allotments. Likewise, in PY2009, 17 states received allotments of at least 125% of their PY2008 allotments. After funds are allocated from DOLETA to individual states by formula, the governor of each state must reserve not more than 15% of the Dislocated Worker Activity state allocation for statewide "employment and training activities." In addition, of the state allocation for dislocated worker activities, the governor of each state must also reserve not more than 25% for rapid response activities. In sum, not more than 40% of dislocated worker state allocations are reserved at the state level for statewide activities. The remainder of the Dislocated Worker Activities funding stream must be reallocated to local areas based on a state-developed formula that takes into account the following data: insured unemployment, unemployment concentrations, plant closings and mass layoffs, declining industries, farmer-rancher economic hardship, and long-term unemployment. Funds for youth employment and training activities are allocated to states on the basis of the following factors: one-third of the funds are allocated on the basis of each state's relative share of total unemployed in areas of substantial unemployment (ASU); one-third of the funds are allocated on the basis of each state's relative share of excess unemployed; and one-third of the funds are allocated on the basis of each state's relative share of economically disadvantaged youth. Key features of the state formula allocation for WIA Youth Activities include the following: A reservation for outlying areas of 0.25% of the total Youth Activities appropriation (this is reserved prior to state allocations). A minimum grant amount equal to 0.25% of the total allocation to all states in a given program year. For example, in PY2014, the state minimum allotment under the Youth Activities funding stream was $2,009,628, which is 0.25% of the total allotted to all states ($803,851,042). A total of six states received this minimum allotment in PY2014. "Hold harmless" provisions such that individual states will not experience large swings in year-to-year funding for this stream. Specifically, a state may not receive less than 90% of its relative share of prior year funding nor more than 130% of its relative share of prior year funding. After funds are allocated from DOLETA to individual states by formula, the governor of each state must reserve not more than 15% of the Youth Activities state allocation for statewide youth activities or "employment and training activities" for adults and dislocated workers. The remainder of the Youth Activities funding stream is reallocated to local areas within the state on the basis of either the same three-factor formula used for state allocations but with substitution of local area relative share of state total; or at least 70% of the allocation by the same three-factor formula used for state allocations and the remaining allocation by a state-derived formula using measures of excess poverty and unemployment within the state. Finally, the within-state allocation requirements include a "hold harmless" provision for local areas, such that a local area must receive an allocation percentage of not less than 90% of the average allocation percentage of that area for the two preceding fiscal years. Section 136 of WIA sets forth state and local "performance measures" as part of the accountability system to be used "to assess the effectiveness of States and local areas in achieving continuous improvement of workforce investment activities funded under this subtitle, in order to optimize the return on investment of federal funds in statewide and local workforce investment activities." Under WIA, "state performance measures" consist of the core indicators of performance described in Sections 136(b)(2)(A) and 136(b)(2)(B) and any additional indicators identified by individual states. Below is an overview of the 17 core indicators required by Section 136. There are 12 "General Core Indicators of Performance" for employment and training activities for adults, dislocated workers, and youth ages 19-21. For each group of participants, core indicators are: entry into employment, retention in employment, earnings, and attainment of a credential. There are three "Core Indicators for Eligible Youth" for youth ages 14-18. These indicators are: attainment of basic skills, attainment of a secondary school diploma, and placement and retention in postsecondary education or employment. There are two "Customer Satisfaction Indicators"—one each for employers and participants. Each indicator is described in greater detail in Table 3 below. There are some general characteristics that apply to the WIA performance measure system: Standards are established for one program year (a program year runs from July 1-June 30; for example, PY2014 runs from July 1, 2014-June 30, 2015). The standards are typically expressed as a numerical percentage (e.g., entered employment rate of 60%) or dollar amount ($500 in average earnings). The governor of each state establishes performance standards for that state, based on measures identified in Section 136 of WIA and defined by the Secretary. Governors, on the basis of negotiations with the Secretary, may adjust national standards for state and local areas based on economic and demographic factors (see section below). States and localities may incur sanctions for falling short of the standards. In addition to the 17 indicators listed in Table 3 , states may identify additional indicators of performance and identify these in the "State plan" (hereafter, "Plan") required under Section 112. It is worth noting that while Section 136 does specify 17 core indicators of performance, some (e.g., entered employment rate) are identical calculations and only require changing the populations in the numerators and denominators. For each of the core indicators described above, each state is required to establish a "state adjusted level of performance." That is, the "measures" are identified in WIA Section 136, but the "levels" are determined through negotiation between states and the Secretary of Labor (hereafter, "Secretary"). In the Plan, states must identify the expected (adjusted) level of performance for each of the core indicators for the first three program years of the Plan, which covers five program years. In order to "ensure an optimal return on the investment of federal funds in workforce investment activities," the Secretary and the governor of each state shall "reach agreement on the levels of performance" for all 17 indicators identified in Section 136(b)(2)(A). This agreed-upon level then becomes the "state adjusted level of performance" that is incorporated into the Plan. Section 136(b)(3)(A)(i) of WIA specifies that the state adjusted levels of performance must be expressed in an "objective, quantifiable, and measurable form"; and show the state's progress toward "continuously improving" performance. The negotiation between governors and the Secretary that leads to an agreement on adjusted levels of performance must be based on the following three sets of factors: the extent to which the adjusted levels will assist a state in attaining a high level of customer satisfaction; the comparative levels of performance established in other states, accounting for differences in economic conditions, characteristics of participants entering WIA programs, and the services to be provided; and the impact of agreed-upon levels on promoting "continuous improvement" in performance. While WIA itself is not detailed about the process of negotiation, guidance from DOLETA provides additional information about the process. Specifically, DOLETA Training and Employment Guidance Letter No. 9-08 (hereafter, "TEGL 9-08") indicates that states should negotiate performance level goals "within the context of integrated service delivery, priority of service, economic conditions, customers served, and workforce solutions that contribute to the regional economic competitiveness of their state and sub-state areas." While DOLETA encourages states to serve "at-risk" populations—including those who are low-income and have multiple barriers to employment—and to account for the effect that at-risk populations might have on performance outcomes, it is ultimately at the discretion of the state to choose the populations it will serve and the adjustments that will be made on the basis of the populations served. DOLETA does, however, provide information to assist states in proposing state adjusted levels of performance, including past results on the performance measures; goals in the Government Performance and Results Act (GPRA); national distribution of WIA performance outcomes; average six months' earnings for adult and dislocated programs; estimates of six months' average earnings from Bureau of Labor Statistics (BLS); and effects of economic and demographic variables. It should be noted that DOLETA provides states with the relevant data for all items listed above. Furthermore, Attachment VII of TEGL 9-08 provides estimated effects (using a bivariate regression model) of changes in unemployment and participant characteristics on performance outcomes. While these effects are estimated using national data, DOLETA suggests that states might use such estimated relationships to guide decision making about levels of performance. The DOLETA policy prescribes a process of negotiation that involves three main steps: First, states are to conduct their own analysis of factors affecting levels of performance and then submit the proposed levels of performance to the DOLETA Regional Administrator serving the submitting state. States must include a description of the methodology and data used to support the proposed levels. For PY2009, the deadline for submission of proposed levels was April 15, 2009. Second, the DOLETA regional offices are to review the data and methodology used by the states to determine the levels of performance and will "work with the state to set mutually agreed-upon levels of performance." This process may involve alternative proposals by DOLETA. Third, upon reaching agreement on performance levels, the DOLETA Regional Administrator is to send a letter to the state confirming that the agreed-upon levels will be reflected as a modification to the state's Plan. In July 2005, DOLETA implemented a "common measures" policy for several workforce programs and revised the reporting requirements for WIA Title I programs in an effort to "enhance the ability of Congress, the Administration, and public officials to assess the effectiveness and impact of workforce investment programs." Specifically, DOLETA introduced three adult measures and three youth measures: Entered Employment Rate—All Adults, Employment Retention—All Adults, Average Earnings—All Adults, Placement in Employment or Education—All Youth, Attainment of a Degree or Certificate—All Youth, and Literacy and Numeracy Gains—All Youth. DOLETA specifically indicated that the common measures were not to supercede the existing statutory performance reporting requirements for WIA and that states would continue to negotiate performance goals for the indicators required by WIA Section 136. Despite this, DOL has granted waivers to 49 states, territories, and the District of Columbia to permit implementation of and reporting on only common measures rather than the current fuller array of measures in WIA. Title II of WIA is the Adult Education and Family Literacy Act (AEFLA). The stated purposes of AEFLA are to 1. assist adults to become literate and obtain the knowledge and skills necessary for employment and self-sufficiency; 2. assist adults who are parents to obtain the educational skills necessary to become full partners in the educational development of their children; and 3. assist adults in the completion of a secondary school education. Title II programs are primarily administered by the U.S. Department of Education (ED) through its Office of Vocational and Adult Education (OVAE). AEFLA's authorization of appropriations expired on September 30, 2003. Programs authorized under AEFLA continue to be funded through annual appropriations. Historical funding levels are available in Table B -3 and Table B -4 in Appendix B . Approximately 95% of annual AEFLA appropriations are allotted to the states via formula grants. States are required to match a portion of their federal grants. Many states contribute well beyond their required match, though there is substantial variation among the states. Actual educational services are typically provided by local entities using a combination of full-time, part-time, and volunteer personnel. Adult education activities are typically divided into three broad categories: Adult Basic Education (ABE), which includes instruction for adults whose literacy and numeracy skills are below the high school level; Adult Secondary Education (ASE), which includes instruction for adults whose literacy skills are approximately at the high school level, including adults who are seeking to pass the General Education Development (GED) test; and English Literacy (EL), which includes instruction for adults who are not proficient in the English language. Performance data are tracked through the National Reporting System (NRS). States are required to report enrollment and educational progress. States must also track outcome data in cases where a student states an objective beyond educational progress (such as obtaining a high school credential or entering employment). AEFLA sets aside a portion of annual appropriations for national activities and incentive grants. Specifically, the act reserves 1.5% of the appropriation for National Leadership Activities (NLA), 1.5% for the National Institute for Literacy (NIFL), and 1.72% for incentive grants for states that meet certain performance criteria. The actual allotments may vary from these statutory directives; for example, NIFL has not received funding since FY2009. Title IV of WIA amended the Rehabilitation Act of 1973 and authorized appropriations for its programs. Most programs under the Rehabilitation Act are related to the employment and independent living of individuals with disabilities and are administered through ED's Rehabilitation Services Administration (RSA). Several related independent agencies are also authorized by the Rehabilitation Act. Vocational Rehabilitation (VR) state grants account for the large majority of funds appropriated under the Rehabilitation Act. Since the enactment of WIA, VR state grants have accounted for between 85% and 90% of the funds appropriated under the act each year. An individual is eligible for VR services from the appropriate state agency if (1) he or she has a disability that creates an obstacle to employment and (2) he or she would benefit from VR services. In cases where a state is not able to serve all eligible individuals, preference is given to individuals with the most severe disabilities. Once an individual has established eligibility, the client develops an individualized plan for employment (IPE) in conjunction with a VR counselor. The IPE includes the individual's desired employment outcome and outlines the services necessary to achieve that outcome. Services can include, but are not limited to, case management, counseling, job training, and supplemental support services. Grants are allotted to the states via formula. States are required to match their grants so that no more than 78.7% of their VR funds are from federal sources. If a state is not able to match its entire grant, unmatched funds are made available to other states to match. VR state grants are mandatory spending and the authorization status of the VR state grants program is different from most other programs that were created or amended by WIA. The Rehabilitation Act specifies that if authorization for appropriations expires and Congress has not acted to reauthorize the program, it will automatically be reauthorized for one year and the annual appropriation will equal the prior year's appropriation plus an increase equal to inflation. The program has operated under these automatic authorization provisions since the WIA authorization expired at the end of FY2003. Several other formula and competitive grant programs are authorized under the Rehabilitation Act. These grants are administered by RSA and support the employment and independent living of individuals with disabilities. The act also authorizes two independent agencies that advocate for individuals with disabilities. A full list of these authorizations and their recent funding histories are listed in Table B-7 in Appendix B . Appendix A. Glossary of Selected WIA Terms Areas of Substantial Unemployment (ASU) —This concept is used in the Title I state grant formulas for Youth and Adult Activities. As defined in Sections 127(b)(2)(B) and 132(b)(1)(B)(v)(III), an ASU is "any area that is of sufficient size and scope to sustain a program of workforce investment activities carried out under this subtitle and that has an average rate of unemployment of at least 6.5 percent for the most recent 12 months." States submit potential ASU designations and DOL approves ASUs once each fiscal year. Additional guidance from DOLETA defines an ASU as a "contiguous area with a current population of at least 10,000 and an average unemployment rate of at least 6.5 percent for the 12-month reference period." If a state has a statewide unemployment rate of at least 6.5%, the entire state will be designated as an ASU for allocation purposes. Economically Disadvantaged —This concept is used in one of the factors for the Title I state grant formulas for Youth and Adult Activities. For the state formula grants for Youth Activities, "disadvantaged youth" is defined (in Section 127(b)(2)(C)) as an "individual who is age 16 through 21 who received an income, or is a member of a family that received a total family income, that, in relation to family size, does not exceed the higher of the poverty line or 70 percent of the lower living standard income level." Similarly, a "disadvantaged adult" is defined (in Section 132(b)(1)(B)(v)(IV)) the same as a disadvantaged youth with the exception that the reference individual is age 22 or older. In practice, for both the Youth and Adult Activities formulas, DOLETA has used the poverty calculations from the 1990 Census (for PY2001-PY2003) and the 2000 Census (for PY2004-present) for this factor. Excess Unemployment —This concept is used in one of the factors for the Title I state grant formulas for Youth, Adult, and Dislocated Worker Activities. For the state formula grants for Youth and Adult Activities, excess unemployment is defined (in Sections 127(b)(2)(D) and 132(b)(1)(B)(v)(VI)) as the higher of "the number that represents the number of unemployed individuals in excess of 4.5 percent of the civilian labor force in the state" or "the number that represents the number of unemployed individuals in excess of 4.5 percent of the civilian labor force in areas of substantial unemployment in such state." For the state formula grant for Dislocated Worker Activities, excess unemployment is defined (in Section 132(b)(2)(B)(iii)) as "the number that represents the number of unemployed individuals in excess of 4.5 percent of the civilian labor force in the state." For example, in a state with a civilian labor force of 100,000 and an unemployment rate of 8.0% (which would equal 8,000 unemployed individuals), the "excess unemployment" would be 3,500 (8.0% - 4.5% = 3.5%; 3.5% of 100,000 is 3,500). Local Workforce Investment Areas (LWIA) —This concept is used in identifying geographic areas within states that function as administrative units within the One-Stop delivery system. Section 116 of the WIA directs the governor of each state to designate—in consultation with the state WIB and with the chief elected local officials in the relevant areas—LWIAs within the state. WIA requires that each LWIA have a local WIB and a One-Stop center. In designating LWIAs, the governor is required to take into consideration geographic areas served by educational agencies and institutions, labor market areas, distances that individuals must travel to receive services, and the resources available from local areas to help carry out the WIA services. WIA does allow for "automatic designation" of substate areas as LWIAs under three conditions: a unit of local government with a population of at least 500,000; an area served by a rural concentrated employment program grant recipient that was a service delivery area (SDA) under the Job Training Partnership Act (JTPA); and an area that served as an SDA in a state with a population of no more than 1.1 million and a population density of no greater than 900 persons per square mile. Long-Term Unemployment —This concept is used in one of the factors for the Title I state grant formulas for Dislocated Worker Activities. For the state formula grants for Dislocated Worker Activities, long-term unemployment is defined (in Section 132(b)(2)(B)(ii)(III)) as the number of individuals in a state who have been unemployed (as measured by the Census bureau) for at least 15 weeks. Relative Number/Share —This concept is used in the state grant formulas for Youth, Adult, and Dislocated Worker Activities. Each formula consists of three equally weighted factors. The factors themselves are based on the concept of the "relative number" or "relative share" of that factor compared to the analogous number in all of the states. An example from the Dislocated Worker Activities formula—based on the factors of regular unemployment, excess unemployment, and long-term unemployment—will demonstrate this. In the PY2012 state formula allotments, Nevada had the following factor values: Regular Unemployment = 178,314; Excess Unemployment = 118,912; and Long-Term Unemployment = 117,600. For each of these factors, Nevada's "relative share" was calculated by dividing the number of individuals in Nevada by the number of individuals in all states. For example, Nevada's relative share of regular unemployment was 1.25% (178,314/14,259,148); its share of excess unemployment was 1.63% (118,912/7,299,720); and its share of long-term unemployment was 1.41% (117,600/8,358,500). Multiplying each of these individuals by 1/3 and summing the results would give Nevada a total share of 1.43% ((1.04%*1/3) + (1.45%*1/3) + (0.98%*1/3)). Finally, multiplying Nevada's share, 1.43%, by the total funding for all states ($1,008,151,464) yields $14,404,698, which Nevada received in PY2012. Appendix B. Funding for Programs Authorized Under WIA

Summary: The Workforce Investment Act of 1998 (WIA; P.L. 105-220), which succeeded the Job Training Partnership Act (P.L. 97-300) as the main federal workforce development legislation, was enacted to bring about increased coordination among federal workforce development and related programs. WIA authorized the appropriation of "such sums as may be necessary" for each of FY1999 through FY2003 to carry out the programs and activities authorized in the legislation. Authorization of appropriations under WIA expired in FY2003 but has been extended annually through the Departments of Labor, Health and Human Services, and Education and Related Agencies Appropriations Act (Labor-HHS-ED). In 2014, Congress passed, and the President signed, a new law—the Workforce Innovation and Opportunity Act (WIOA; P.L. 113-128)—that replaced WIA, the provisions of which start to be implemented in 2015. This report covers WIA and will not be updated. Workforce development programs provide a combination of education and training services to prepare individuals for work and to help them improve their prospects in the labor market and may include activities such as job search assistance, career counseling, occupational skill training, classroom training, or on-the-job training. The federal government provides workforce development activities through WIA's programs and other programs designed to increase the employment and earnings of workers. The WIA system provides central points of service by its system of around 3,000 One-Stop centers nationwide through which state and local WIA training and employment activities are provided and through which certain partner programs must be coordinated. This system is supposed to provide employment and training services that are responsive to the demands of local area employers. Administration of the One-Stop system occurs through Workforce Investment Boards (WIBs), a majority of whose members must be representatives of business and which are authorized to determine the mix of service provision, eligible providers, and types of training programs, among other decisions. Unlike its predecessor, the Job Training Partnership Act (JTPA), WIA provides universal access to its services. Finally, WIA is oriented toward a work first approach to workforce development, such that placement in employment is the first goal of the services provided under Title I of WIA WIA includes five titles: Workforce Investment Systems (Title I), Adult Education and Literacy (Title II), Workforce Investment-Related Activities (Title III), Rehabilitation Act Amendments of 1998 (Title IV), and General Provisions (Title V). Title I, whose programs are primarily administered through the Employment and Training Administration (DOLETA) of the U.S. Department of Labor (DOL), includes three state formula grant programs, multiple national programs, Job Corps, and demonstration programs. Title II, whose programs are administered by the U.S. Department of Education (ED), includes a state formula grant program and National Leadership activities. Title III of WIA amends the Wagner-Peyser Act of 1933, and Title IV amends the Rehabilitation Act of 1973. Title V includes provisions for the administration of WIA. This report provides details of WIA Title I state formula program structure, services, allocation formulas, and performance accountability. In addition, it provides a program overview for national grant programs. It also provides brief overviews of Titles II and IV. Title III of WIA amends the Wagner-Peyser Act of 1933, which establishes the Employment Service (ES), to make the ES an integral part of the One-Stop system created by WIA. Because the ES is a central part of the One-Stop system, it is discussed briefly in this report even though it is authorized by separate legislation (Wagner-Peyser Act of 1933).