Transcript Colorado Department of Labor & Employment (CDLE) Implementation of the American Recovery and Reinvestment Act (ARRA) Prepared for the Progressive 15 Spring Conference Presented.

Colorado Department of Labor & Employment (CDLE)
Implementation of the American Recovery and
Reinvestment Act (ARRA)
Prepared for the Progressive 15 Spring Conference
Presented by Jennifer R. Beck
Burlington Workforce Center
April 17, 2009
Workforce Development Programs
•
Workforce Investment Act
• Wagner-Peyser
Workforce Investment Act (WIA)
Job Training
•
The Workforce Investment Act was originally signed into law
on August 7, 1998. Colorado implemented WIA in July 2000.
•
WIA reformed previous job training programs by creating a
comprehensive, seamless and integrated system of one-stop
centers offering training and employment service to all job
seekers and employers.
•
The system allows Colorado to create a pipeline of skilled
workers to meet industry needs and increase our competitive
edge in the global economy.
Workforce Investment Act (WIA)
Job Training
•
The Recovery Act provided an additional $3,950,000,000 in funding for
job training nationwide.
•
Of this amount, $3,118,500,000 was directly disbursed to states and local
workforce agencies in the form of formula grants.
•
The federal formula and in-state formula are based on local need as
reflected in poverty and unemployment figures and are mandated by federal
law and regulation.
•
Colorado’s total allocation amount equals $31,132,248.
•
WIA allocations are separated into three (3) distinct funding types: Adult,
Youth and Dislocated Worker.
Workforce Investment Act (WIA)
Job Training
Adult:
• Training and employment services for unemployed or
underemployed individuals 18 or older.
•
•
Priority of service to low income adults
Skill upgrades and occupational training for high-growth
industry/sector jobs including new energy and green jobs.
•
Nationwide funding to states equals $495,000,000
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Colorado’s allocation equals $4,792,362.
•
•
15% for state administration and discretionary initiatives:
• $ 718,854
85% formula-allocated to workforce regions:
• $4,073,508
Workforce Investment Act (WIA)
Job Training
Dislocated Worker:
•
Training and employment services for individuals 18 and older, who
through no fault of their own have been laid-off or are at risk of layoff.
•
•
Retraining laid off workers to prepare for demand occupations including new
energy and green jobs
Retraining incumbent workers to avoid layoffs
•
Nationwide funding to states equals $1,435,500,000.
•
Colorado’s allocation equals $14,464,916.
•
•
•
15% for state administration and discretionary initiatives
•
$2,169,737
25% for Rapid Response (layoff assistance) activities
•
$3,616,229
60% formula-allocated to workforce regions:
•
$8,678,950
Workforce Investment Act (WIA)
Job Training
Youth:
•
Training and educational services for individuals age 14-24 who are low
income, disabled, homeless or in need of assistance to increase basic
literacy skills.
• Serve in-school and out-of-school youth with reading and math
remediation
• Provide career and industry-specific exposure and work readiness
through summer youth employment opportunities
•
Nationwide funding to states equals $1,188,000,000.
•
Colorado’s allocation equals $11,874,970.
• 15% for state administration and discretionary initiatives
• $1,781,246
• 85% formula-allocated to workforce regions:
• $10,093,724
Workforce Investment Act (WIA)
•
Core Services: Initial assessment, labor market information,
referrals to jobs, career planning, job search workshops,
referrals to intensive and training services.
•
Intensive Services: Case management, in-depth assessment,
career counseling, pre-vocational workshops, supportive
services, subsidized work experiences and literacy classes.
•
Training Services: Occupational skills training, on-the-job
training, customized training, skills upgrade, entrepreneurial
and job readiness training.
•
These services apply to the Adult, Youth and Dislocated
Worker programs. The Youth program is further divided into
more detailed federal reporting categories.
Workforce Investment Act (WIA)
•
Colorado’s WIA allocations are allotted further to Nine (9) Workforce
Regions.
•
These Regions are:
Adams County
Arapahoe/Douglas Counties
Boulder County
City and County of Denver
El Paso/Teller Counties
Larimer County
Rural Consortium
Tri-County
(Jefferson/Gilpin/Clear Creek)
Weld County
$ 2,503,234
$ 2,613,208
$ 1,015,080
$ 3,883,971
$ 3,277,091
$ 1,014,913
$ 5,486,091
$ 1,762,002
$ 1,290,599
$22,846,183
Workforce Investment Act (WIA)
Workforce Investment Act (WIA)
•
Rural Consortium Regional Allocations
Rural Consortium
ARRA-Adult
ARRA-Youth
ARRA - DW
TOTAL WIA
Eastern
$60,418
$146,862
$175,991
$383,271
Northwest
$26,290
$63,896
$82,349
$172,535
$265,957
$646,639
$261,938
$1,174,534
Rural Resort
$66,536
$161,568
$199,861
$427,965
South Central
$117,157
$284,698
$171,297
$573,152
Southeast
$73,864
$178,099
$121,075
$373,038
Southwest
$55,441
$136,774
$134,703
$326,918
Upper Arkansas
$99,513
$239,935
$121,436
$460,884
Western
$62,836
$154,180
$166,206
$383,222
Mesa
$94,704
$233,940
$159,026
$487,670
Broomfield
$39,243
$91,976
$116,626
$247,845
Consortium Administration
$92,002
$223,627
$159,428
$475,057
$1,053,961
$2,562,194
$1,869,936
$5,486,091
Pueblo
TOTAL
Wagner-Peyser (WP)
•
Wagner-Peyser Act of 1933, as amended by Public Law 97-300 Job Training
Partnership Act (JTPA), effective October 1, 1983; as amended by Public Law 105220 Workforce Investment Act of 1998, effective August 7, 1998; and C.R.S. Title
8, Article 71, Sections 101 and 106.
•
Labor exchange system providing core services to all job seekers and offering
employer services including: recruitment, screening and referral of qualified
applicants
•
Serves all job seekers and employers (no eligibility) and has no training activities;
can be self-service through automation, or staff-assisted
•
There are two (2) categories of Wagner-Peyser ARRA Funding
•
•
ARRA Wagner-Peyser labor exchange services – Colorado received $2,329,663
which has been fully allocated to regions
ARRA Reemployment Services – core and intensive services targeted to
Unemployment Insurance claimants- Colorado received $3,882,771 which has been
fully allocated to regions
Wagner-Peyser (WP)
Labor-Exchange
•
The Recovery Act provides an additional $396,000,000 for
Labor-Exchange activities nationwide.
•
Of this amount, Colorado’s total allocation equals
$6,212,434.
•
The federal allocation is based on need as reflected by
unemployment. The in-state allocation is based on
unemployment, job seekers served, and size of region in
square miles.
•
Colorado’s total allocation is further separated into
$3,882,771 for Reemployment Services (RES) and
$2,329,663 for WP labor exchange.
Wagner-Peyser (WP)
Regional Allocations
ARRA WP-RES
ARRA- WP
Total by Region
Adams
$355,126
$213,076
$568,202
Arapahoe
$441,394
$264,836
$706,230
Boulder
$148,586
$89,152
$237,738
Denver
$487,054
$292,232
$779,286
El Paso
$433,763
$260,258
$694,021
Tri-County
$297,808
$178,685
$476,493
Larimer
$199,493
$119,696
$319,189
Weld
$201,729
$121,037
$322,766
Rural
$1,317,818
$790,691
$2,108,509
TOTAL
$3,882,771
$2,329,663
$6,212,434
Wagner-Peyser (WP)
Regional Allocations
Rural Consortium
ARRA WPRES
ARRA-WP
Total by Region
Eastern
$167,839
$100,703
$268,542
Northwest
$116,419
$69,851
$186,270
Pueblo
$149,912
$89,947
$239,859
Rural Resort
$112,190
$67,314
$179,504
South Central
$152,924
$91,754
$244,678
Southeast
$98,292
$58,975
$157,267
Southwest
$101,420
$60,852
$162,272
Upper Arkansas
$98,916
$59,350
$158,266
Western
$118,486
$71,092
$189,578
Mesa
$150,817
$90,491
$241,308
Broomfield
$50,603
$30,362
$80,965
$1,317,818
$790,691
$2,108,509
TOTAL
Total Recovery Act Funding
by State (in millions)
8.3
63.5
New Hampshire
Washington
8.8
8.1
Montana
43.5
North Dakota
52.6
7.2
12.8
Vermont
Maine
Minnesota
64.2
Oregon
10.6
Idaho
6.9
42.3
7.9
Wisconsin
South Dakota
Wyoming
10.3
535.6
28.7
Nevada
14.7
173.1 67.1
Colorado
Illinois
18.5
69.1
Kansas
Missouri
114.8
153.1
Iowa
37.3
17.2
Michigan
15.7
Arizona
22.3
15.1
49.8
Oklahoma
New Mexico
13.5
197.3
43.2
Texas
Louisiana
73.6
34.8
Connecticut
New Jersey
7.3
Delaware
Virginia
90.9
North Carolina
Tennessee
Arkansas
Rhode Island
14.5 41.1
West Virginia
Kentucky
28.0
Pennsylvania
Ohio
Indiana
71.7
49.9
Massachusetts
New York
197.1
Nebraska
Utah
California
192.3
34.4
10.7
Maryland District of Columbia
65.4
100.0
South Carolina
44.3
35.0
Mississippi
Alabama
Alaska
Georgia
165.0
Florida
7.7
Hawaii
96.8
Puerto Rico
Source: United States Department of Labor,
Dallas Regional Office
2.9
Virgin Islands
Unemployment Insurance
•
•
Emergency Unemployment Compensation (EUC)
• Federal Additional Compensation (FAC)
• Unemployment Insurance Modernization
Unemployment Insurance Administrative Funding
Emergency Unemployment Compensation
(EUC)
•
The Recovery Act extended the expiration of the EUC
Program from August 29, 2009, to May 31, 2010.
•
The goal of the program is to promote economic recovery and
assist persons most impacted by the recession.
•
The EUC Program under the Recovery Act begins for claims
filed on or after March 2009.
•
Monitor/Tracking Process:
•
CDLE’s Finance office has integrated coding and tracking of Recovery
Act funds into the existing accountability structures and systems. The
CDLE Finance and Budget offices are jointly responsible for the
monitoring and reporting of ARRA funds monthly, quarterly and as
needed.
Federal Additional Compensation
(FAC)
•
The Federal Additional Compensation Program provides a $25 weekly
supplement to the unemployment insurance benefits.
•
FAC is payable to unemployed individuals who are receiving either state
or federal unemployment insurance benefits.
•
FAC is paid for by Federal General Revenue.
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The program pays benefits for the week ending February 28, 2009.
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The last payable week for FAC will be the week ending July 3, 2010.
•
The department estimates that a total of 58,000 Coloradoans will receive
FAC benefits weekly.
Unemployment Insurance Modernization
•
The Recovery Act sets aside $7,000,000,000 in
incentives for states that enact specified “UI
Modernization” provisions in state law.
•
If Colorado enacts all necessary changes, the
state will receive $127,469,762.
•
Funding for UI Modernization is from the
Federal Unemployment Account (FUA).
Unemployment Insurance Modernization
•
If Colorado enacts “alternative base period”
legislation, it will receive one-third (1/3) of its
available allocation which equals $42,489,921.
•
An alternative base period allows claimants to
include the most recent quarter of earnings in
the base period calculation.
Additional Colorado Department of Labor and Employment
ARRA Provisions
•
Trade Adjustment Assistance (TAA)
Worker Training and Placement in High-Growth Industries
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Dislocated Worker National Reserve
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YouthBuild
•
Job Corps
•
Federal Income Tax Deduction
•
Cobra
•
Work Opportunity Tax Credit (WOTC)
•
Leaking Underground Storage Tank Fund (LUST)
Other ARRA Provisions Impacting the CDLE
•
Trade Adjustment Assistance. The bill reauthorizes and expands the Trade
Adjustment Assistance (TAA) program by, among other things, extending
TAA benefits to trade-affected service sector workers, increasing funding
available to states, and increasing the accessibility of training, health care, and
reemployment TAA benefits.
•
Worker Training and Placement in High Growth Industries. The bill
provides $750,000,000 for competitive grants for worker training and
placement in high-growth occupations. Of this amount, $500,000,000 is
dedicated to preparing workers for occupations in renewable energy and energy
efficiency as described in the Green Jobs Act of 2007. Of the remaining
$250,000,000 the priority will be to prepare workers for careers in health care.
•
Dislocated Worker National Reserve. The bill provides $200,000,000 for the
dislocated national reserve. This funding provides the Secretary of USDOL to
make emergency grant awards for areas experiencing mass layoffs, plant
closings, and other types of worker dislocations.
Other ARRA Provisions Impacting the CDLE
•
YouthBuild. The bill provides $50,000,000 for the YouthBuild
program dedicated to funding for services for at-risk youth who gain
experience and occupational credentials while constructing or
rehabilitating affordable housing.
•
Job Corps. The bill provides $250,000,000 for the Office of Job
Corps. The funds will be used to for the construction of residential
facilities serving at-risk youth. Job Corps provides career development
services to at-risk youth ages 16-24.
•
Federal Income Tax Deduction. Under current law, unemployment
insurance benefits are included in the calculation of an individual’s
gross income for tax purposes. The bill excludes from the calculation
of up to $2,400 of unemployment insurance benefits. This deduction
becomes effective for the 2009 taxable year.
Other ARRA Provisions Impacting the CDLE
•
COBRA. The bill provides a 65 percent subsidy for COBRA health
insurance payments to persons who have been involuntarily separated
from a job. The subsidy is limited to nine months.
•
Work Opportunity Tax Credit. The bill expands eligibility for the
Work Opportunity Tax Credit to employers who hire unemployed
veterans and disconnected youth between the ages of 16 and 25.
•
Leaking Underground Storage Tank Fund. The ARRA provides the
Environmental Protection Agency with $190,700,000 for
environmental cleanups of underground petroleum storage tanks. On
April 8, 2009, the department’s Division of Oil and Public Safety was
awarded $2,540,000 for cleanups.