Highlights from the TennesseeComprehensive Review UNITED STATES DEPARTMENT OF LABOR Employment and Training Administration
Overview • Participants Enrolled in Tennessee’s Workforce Programs, and Characteristics • PY 2012 Performance Outcomes - W-P/WIA • Program Design and Governance • Program and Grant Management Systems • Financial Management Systems • Service and Product Delivery • Performance Accountability 1 2 3 4 5 6 7
Tennessee Department of Labor and Workforce Development (TDLWD) Administrative Entity • Changes in Commissioners • State agency has undergone a major reorganization • Major staff reductions in the state • A loss of 34 Career Centers in the state • Re-engineering of the state’s systems and processes • The state’s loss of $40 million in child allowances for unemployed • Impact of sequestration
Scope of the Comprehensive Review Workforce Programs • Title 1 Adult • Dislocated Workers • Youth • WIA Title V Incentive Grant • Wagner-Peyser • Workforce Information Grant • Worker Opportunity Tax Credit
Review Scope Continued Workforce Programs • National Emergency Grant • Migrant Seasonal Farm Worker • Trade Adjustment Assistance program • Reemployment and Eligibility Assessment Program • Senior Community Service Employment Program • Veterans Employment Training Services
Methodology Used - Comprehensive Review Interviews • SWIB and LWIB Members • State and Local staff • Program Participants and Customers Document Reviews • State’s Five Year Strategic Workforce Plan • Local Area Plans • Quarterly programmatic and financial reports • Audit reports, etc.
Onsite Visits Comprehensive Review State Office Local Areas: • Memphis LWIA 13 • Dyersburg LWIA 12 • Chattanooga LWIA 5 • American Job Centers • Meritan SCSEP Sub-grantee
Program Participation Summary, Program Year 2012, 3rd Quarter Distribution of Enrollments
PY 2012, 3rd Quarter Performance Outcomes for the Wagner-Peyser Act Program Entered Employment Rate 27 NATIONAL RANK BASED ON 53 STATES & TERRITORIES
PY 2012, 3rdQuarter Performance Outcomes for the Wagner-Peyser Act Program Employment Retention Rate 38 NATIONAL RANK BASED ON 53 STATES & TERRITORIES
PY 2012, 3rd Quarter Performance Outcomes for the Wagner-Peyser Act Program Average 6-Month Earnings 46 NATIONAL RANK BASED ON 53 STATES & TERRITORIES
PY 2012, 3rd Quarter Performance Outcomes for the WIA Adult Program Entered Employment Rate 6 NATIONAL RANK BASED ON 53 STATES & TERRITORIES
PY 2012, 3rd Quarter Performance Outcomes for the WIA Adult Program Employment Retention Rate 7 NATIONAL RANK BASED ON 53 STATES & TERRITORIES
PY 2012, 3rd Quarter Performance Outcomes for the WIA Adult Program Average 6-Month Earnings 7 NATIONAL RANK BASED ON 53 STATES & TERRITORIES
PY 2012, 3rd Quarter Performance Outcomes for the WIA Dislocated Worker Program Entered Employment Rate 3 NATIONAL RANK BASED ON 53 STATES & TERRITORIES
PY 2012, 3rd Quarter Outcomes for the WIA Dislocated Worker Program Employment Retention Rate 16 NATIONAL RANK BASED ON 53 STATES & TERRITORIES
PY 2012, 3rd Quarter Outcomes for the WIA Dislocated Worker Program Average 6-Month Earnings 37 NATIONAL RANK BASED ON 53 STATES & TERRITORIES
PY 2012, 3rd Quarter Outcomes for the WIA Youth Program Placement in Employment or Education 5 NATIONAL RANK BASED ON 53 STATES & TERRITORIES
PY 2012, 3rd Quarter Outcomes for the WIA Youth Program Attainment of a Degree or Certificate 5 NATIONAL RANK BASED ON 53 STATES & TERRITORIES
PY 2012, 3rd Quarter Outcomes for the WIA Youth Program Literacy and Numeracy Gains 13 NATIONAL RANK BASED ON 53 STATES & TERRITORIES
State LevelBest Practices • Commissioner Phillip’s listening sessions to stakeholders. • The Paycheck for Patriots job fair that focuses on hiring veterans, and the proclamation from the Governor issued to the state in recognition of this initiative. • The state’s sound leadership in managing the Eligible Training Provider List. • The state board’s success with fostering the Baldridge principles in its governance.
State LevelBest Practices Cont’d • Checks/balances in the state’s financial management system for managing USDOL-ETA grants • Proposing local board members to have six months of experience on a local board before being appointed to the state board is a promising practice. • State staff hired several participants into permanent positions that previously worked in American Recovery Reinvestment Act temporary positions.
Design and Governance, Strategic Planning Finding: The State Board is not the primary policy driver and steward as required by law. • Interviews, documents reviewed indicate Board needs more information from staff to move from a reactive to proactive Board. • In most cases, the Board is provided opportunity for input on policy, but does not develop policy. • The degree of flexibility that the State Board affords to the LWIAs limits the Board’s ability to align service delivery with the State Plan. • Local Boards: Policies, agenda, and key strategies are staff-driven; information, data, etc. needed to help board-driven decision making. • Boards don’t have very active role in developing plans • Board’s actions are not linked or traceable to achieving strategic goals articulated in WIA plans.
Design and Governance, Strategic Planning The Tennessee WIA State Plan is out of date and needs to be modified • The strategies enumerated in State Plan do not track with economic realities in the State. • The State has not provided actionable guidance for the LWIAs to implement service strategies. • Major State Agency/Board staffing changes and functional alignment efforts are not reflected in the current plan. • The current Plan includes strategies such as partnership with INCITE Fund and Training Institute that have not been executed.
Design and Governance - Strategic Planning The State Board must develop or finalize policy to support major organizational transition and new program strategies. • The State has not developed policy to support the primary initiatives in the State including Job Base Camps. • Other key policies (including the State’s One-Stop chartering policy, WIA/WP Integration) remain in draft.
Design and Governance, Strategic Planning WIA and W-P programs are not fully integrated - Fragmented programs, Co-location exists, but no integration - Duplicate services for core and some intensive services are being provided by W-P and WIA - Many required partners are missing in the One Stop Comprehensive Centers. Conflict of Interest policy for boards not fully applied - While board members are abstaining from voting on award decisions, they are not abstaining from participating in decision-making that leads to the votes.
Design and Governance - Strategic Planning The State’s monitoring tool does not include Veterans priority of service - The State’s monitoring must be amended to include Veterans priority of service Waivers policy for local Incumbent Worker Training (IWT) is lacking - The State is approved for a waiver of WIA Section 134(a) which allows local funds to be used for IWT. The State must develop a lay-off aversion policy for to use local funds for IWT.
State Workforce Investment Board The Tennessee State Workforce Investment Board is intended to be a conduit and avenue by which workforce development partners and partnerships are formed and enhanced. A charge of the Tennessee State Workforce Investment Board is to support Governor Bill Haslam’s vision and the following initiatives as stated in the July 1, 2012 – June 30, 2017 Integrated State Plan: • Jobs and Economic Development • Education and Workforce Development • Conservative Fiscal Leadership
State Workforce Investment Board During our review, seven (7) current board members, the immediate past SWIB Chair and State Staff (Dan Holton, Briana Johnson, and Christy Montgomery) were interviewed. Board members: • Kristee Bell, Director, Powerlines Community Network for Agape Child & Family Services • Craig Butler, SWIB Interim Board Chair, Senior Vice President, Human Resource Director, FirstBank • Echell Eady, Adult Student Coordinator, “Graduate Tennessee”, Middle Tennessee Consortium • John Greeter, Greeter Building Center • David Hayes, David Hayes & Associates • Bethany Lay, Executive for Advancement, Columbia State College • Yolanda Shields, Youth Life Foundation of Tennessee & Vice President of the Adassa Foundation • Wallace G. Grills, SWIB Immediate Past-Chair, Tele-Optics, Inc.
State Workforce Investment Board Best Practice Commissioner Burns Phillips’ listening sessions throughout the state are described by Board members interviewed as of great value in connecting with communities impacted by the AJC closures.
State Workforce Investment Board Five Standing Committees • Strategic Planning • Continuous Improvement • Operations • Policy • Executive * Ad-hoc committees are also appointed as needed.
State Workforce Investment Board Finding Review of SWIB meetings provided proof that some board members had not been in attendance for several consecutive meetings. In at least one case a member missed meetings for two consecutive years. Staff reported this board member was removed from the board on June 17, 2013. According to Tennessee’s current State Workforce Development Board By-Laws in Article V-Meetings, Section 5, “Any board member absent for two (2) consecutive regularly scheduled meetings shall be contacted by the Workforce Development staff. Any Board member absent for three (3) consecutive regularly scheduled meetings shall be considered to have resigned. The chairperson of the Board shall request the governor to fill the vacant position.”
State Workforce Investment Board • Moving forward, recommend taking substantive measures to more fully engage the entire SWIB throughout the Strategic Planning process. • Expand leveraging Board Members’ connections to promote expanded engagement of the business community. • Provide to the board at each meeting performance data in an easy to understand, relevant format including return on investment (ROI). • Ongoing Board development is critical - recommend further board development activities be incorporated throughout the lifecycle of a Board Member’s term.
Service Delivery, One-Stop Operations, Operating Systems Findings • Undercounting of WIA participants WIA-funded core and intensive services are being provided to participants without enrollment in WIA. This is in violation of ETA reporting requirement. • The state’s Program Year 2012 WIA Incentive Grant lacks an Incentive Plan as required by the grant agreement. • Required Provisions in Contracts are lacking - Grantees are required to include certain provisions in contracts funded by Federal funds.
Service Delivery, One-Stop Operations, Operating Systems Lack of documentation supporting the need for training services • IEPs arenot fully developed; and do not contain documentation for the need for services; assessment results are not used to document needs. • Services are not targeted to the hardest-to-serve population.
Service Delivery, One-Stop Operations, Operating Systems Lack of Documentation to support the need for training services • Assessment instruments such as TABE, Work Keys, etc. do not demonstrate sufficient information to justify/support the need for training in particular occupations. • In LWIAs, performance outcomes, not needs are driving who receive training services; policies and procedures appear to focus on those likely to succeed.
Observation Interviews with key State Agency staff revealed that the current PY 2012-2016 State Plan was developed with the assistance of a contractor. During the process, staff input was limited and key strategies enumerated in the State Plan were never implemented. While ETA does not prohibit the use of contractors, we remind the State that the formulation of a strategic direction is the role of the SWIB.
Observations W-P:No system to periodically track how long individuals are in services to evaluate if such services are sufficient to obtain employment. • Individuals can linger in program for prolonged periods of time or at least for 90 days; placed in inactive files and only resurface when they reengage the system for services. • Need mechanism for referrals to WIA for those suited for training or other core, and intensive services.
LWIA Memphis Area 13Best/Promising Practices • Pre-award review process for getting providers on ETPL • Stackable credential initiative with key business partners, (i.e. light industrial program with Electrolux, Community college) • Secret shopper/anonymous investigation to evaluate validity, accuracy, and truthfulness of provider information
LWIA Memphis Area 13Findings • Lack of Board participation due to absenteeism threatens board integration • Certain board policy and intake procedures (i.e. 9thgrade unwritten policy) inhibits the most in need from accessing training • Missing partners in comprehensive centers • Adult Ed/Literacy, • Voc Rehab, • Voc Education, • Community Services Block Grant, HUD, • Welfare to Work is in building but has no MOU signed and no cost-sharing agreement; only running a state special program for SNAP recipients.
LWIA Dyersburg Area 12Best/Promising Practices • Comprehensive Strategic plan; use of Baldridge criteria • EMSI used to conduct market analysis, labor market trends, and skills gap analysis. Need to use for IEP, plan development • Development of quarterly financial and customer outcome reports; link participant ITA, invoice, payments to info collected; using to make quarterly financial projections