February 2016 WASHINGTON UPDATE...Apprenticeship Training Fund: Renewing his request from the 2016 budget request, the President asked for $2 billion to expand apprenticeship, consistent

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In this Issue Fiscal Year 2017

Budget Analysis…1

Federal agencies

release final

requirements for

WIOA unified,

combined plans…9

DOL announces

revised submission

dates for WIOA state

plans, updates on

final rules…11

NSC submits

comments on DOL’s

Notice of Proposed

Rulemaking on Equal

Employment

Opportunity in

Apprenticeship…12

New grant will provide

childcare to parents

in training

programs…13

“The budget also

includes substantial

changes to the Pell

Grant program, calls

for Carl D. Perkins

Act (Perkins)

reauthorization…”

Fiscal Year 2017 Budget Analysis

On February 9, President Obama unveiled his fiscal year (FY) 2017 budget request,

outlining the Administration’s spending priorities for federal programs and activities,

beginning October 1, 2017.

The FY 2017 budget renews several major workforce and education proposals that

were included in the President’s FY 2016 budget, while providing modest increases or

level funding for most existing workforce programs. The budget also includes

substantial changes to the Pell Grant program, calls for Carl D. Perkins Act (Perkins)

reauthorization, and proposes increases to the Temporary Assistance for Needy

Families (TANF) block grant, along with policy changes that could expand access to

training. The President also proposes investments in expanding apprenticeship,

significant increases in funding for workforce data investments, and a focus on

“opportunity youth.”

While most of the new funding and policy proposals in the budget request are unlikely

to be part of the final 2017 funding bill, the budget does reinforce the importance of

skills investments as part of the President’s overall economic development legacy, and

helps lay the groundwork for key policy discussions that are likely to carry over into

the next Congress and Administration.

The President’s overall discretionary budget request is consistent with the budget

levels established under the Bipartisan Budget Act of 2015 which increased budget

caps over sequestration levels by $50M in 2016 and $30M in FY 2017. However, the

revised FY 2017 funding levels under BBA are not significantly higher than current FY

2016 funding levels, so overall discretionary funding for workforce programs is

unlikely to see major increases.

Key Congressional leaders, including new Speaker Paul Ryan (R-WI), have expressed

interest in moving a joint budget resolution that is consistent with the BBA caps in an

effort to avoid the year-end spending battles that have characterized the

appropriations process in recent years. However, resistance from fiscal conservatives

February 2016

WASHINGTON UPDATE

WASHINGTON UPDATE 2

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“The Administration

requested $3.525

billion in

discretionary

funding for ”Training

and Employment

Services” –

including WIOA

formula grants and

national programs

under DOL’s

Employment and

Training

Administration…”

who voted against the increased budget caps last year may complicate these efforts,

meaning that Congress may be unable to complete all of the FY 2017 bills by the end of

September. If lawmakers cannot complete work on appropriations before the start of

the fiscal year, it is likely that Congress will roll spending into a short-term continuing

resolution (CR) at current funding levels at least through the November elections, and

may potentially delay final funding decisions until early 2017 to allow the next

Administration to weigh in on spending priorities.

While uncertainty around the budget and appropriations process is nothing new for

the workforce field, the ongoing implementation of the Workforce Innovation and

Opportunity Act (WIOA), and potential reauthorizations for the Higher Education Act

and the Carl D. Perkins Career and Technical Education Act, make it more important

than ever for advocates to educate policymakers on the need for adequate workforce

and education investments.

National Skills Coalition hosted a webinar on Wednesday, February 17th with more

information on the President’s budget proposals and provided a preview of federal

skills policy in 2016. We will continue to provide updates to the field as the budget and

appropriations process unfolds.

Department of Labor

Overall, the President’s Budget Request would provide the Department of Labor

(DOL) with $12.8 billion in discretionary funding, an increase of about $627 million

over FY 2016 enacted levels. The Administration requested $3.525 billion in

discretionary funding for ”Training and Employment Services” – including WIOA

formula grants and national programs under DOL’s Employment and Training

Administration - an increase of about $320 million compared to FY 2016 enacted levels.

The budget would provide modest increases for a range of existing DOL workforce

programs, including $138 million in additional funding for the WIOA Title I state

formula grants. The budget also includes proposals for significant new investments in

employment and training programs on the mandatory side of the budget (which do

not count against discretionary budget caps), though as noted above these investments

are unlikely to be adopted by Congress in the final appropriations process.

WASHINGTON UPDATE 3

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Existing DOL Programs

WIOA Adult Formula Grants – the administration requests $842.4 million for the

WIOA adult program, $26.8 million above FY 2016 levels and consistent with statutory

authorized levels. The administration would maintain the Governor’s Reserve for

statewide activities at 15 percent across all three formula grants.

WIOA Dislocated Worker Formula Grants – the Administration requests $1.3 billion,

$92.4 million above FY 2016 levels and consistent with authorized levels.

WIOA Youth Formula Grants – the Administration requests $902.1 million, $28.7

million above FY 2016 levels and consistent with authorized levels, to help respond to

high needs among youth for job placement, career counseling, and skills training

services.

Wagner-Peyser Employment Services – the Administration requests $680 million in

Employment Service state grants, consistent with FY 2016 levels. The FY 2017 budget

does not renew a $400 million proposal in the President’s FY 2016 request which

would have supported supplemental grants to states for intensive reemployment

services to dislocated workers.

Workforce Data Quality Initiative (WDQI) and State Data Longitudinal Systems

Grants – the Administration requests $40 million, an increase of $34 million over FY

2016 levels for WDQI grants. For more information on the President’s workforce data

requests, see the Workforce Data Quality Campaign blog.

Apprenticeship Grants: the Administration requested $90 million in funding, which

would build on the $90 million in funding included in the FY 2016 omnibus. The

Administration anticipates half of this funding would be targeted at apprenticeship

state funds, $22.5 million for intermediary funding, $13.5 million in funding for

community based organizations and workforce intermediaries and $9 million for

national activities such as promoting apprenticeship, conducting outreach and

delivering technical assistance. As in his FY 2016 budget, the Administration also

proposes eliminating funding for Women in Apprenticeship and Non-Traditional

Occupations (WANTO), intending grants provided under the funding for community

based organizations and workforce intermediaries to fund innovative strategies for

increasing women –and other underrepresented populations – in apprenticeship.

WASHINGTON UPDATE 4

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“This $5.5 billion in

mandatory funding

would target job

and skill training

opportunities for

youth, including

$3.5 billion in

formula funding for

partnerships with

employers and

communities to

support up to one

million summer job

opportunities...”

Trade Adjustment Assistance (TAA) – the Administration requests $450 million in

funding for the TAA program, reauthorized in 2015 through June 30, 2021. This would

be a $58.5 million increase over FY 2016 TAA training fund levels.

Reintegration of Ex-Offenders – the Administration requests $95 million, an increase

of $7 million over FY 2016 enacted levels. The additional resources would support

expanded programs serving adult and juvenile offender in areas most impacted by

recent “unrest.”

Indian and Native American Program – the Administration requests $52 million, an

increase of $2 million over the FY 2016 enacted levels.

Migrant and Seasonal Farmworkers Program – the Administration requests

$81,896,000 million, consistent with FY 2016 levels.

YouthBuild: the President’s request would fund YouthBuild at $84,534,000, consistent

with FY 2016 levels.

New Investments in Education and Training

Opening Doors for Youth: The President’s budget request included important

emphasis on youth. Right now, there are about six million youth (ages 16-24) who are

not in school or working. The President’s proposal would encourage focusing funding

on these out of school youth, an important target population under WIOA, as

Congress continues to fund the implementation of the law. This $5.5 billion in

mandatory funding would target job and skill training opportunities for youth,

including $3.5 billion in formula funding for partnerships with employers and

communities to support up to one million summer job opportunities and 150,000 year-

round work experiences for out-of-school youth; and a $2 billion competitive grant

program for communities that would be administered jointly be the Departments of

Labor and Education and would focus on dropout recovery strategies.

America’s Talent Compact: The president’s budget request continues to call for a focus

on industry and sector partnerships, key elements of WIOA and part of the

Administration’s 2014 job-driven action plan. This $3 billion request for mandatory

funding over five years will build off of the Administration’s job-driven action plan,

targeting regional partnerships to train workers to meet local employers’ demand. The

Administration proposes linking these efforts to the Workforce Innovation and

Opportunity Act requirements to focus and develop industry and sector training

WASHINGTON UPDATE 5

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“The budget

proposes using $1.3

billion for increasing

state-led strategies

for increasing the

number of

employers using

apprenticeship as a

training system...”

strategies. The Talent Compact would fund 50-60 regions a year, through competitive

grants, to increase collaborations between workforce boards, employers, CTE

programs, community colleges and economic development organizations. While

significant, this proposal is less than the $16 billion the President requested in FY 2016

for High Growth Sector Training and Credentialing Grants.

Workforce Data Science and Innovation Fund: The President requested $500 million in

mandatory funding to invest in tracking and updating data on workforce needs and

trends. The system would be based on Health and Human Services Open Health Data

Initiative and include partnership with Department of Commerce to share data

collected. The Workforce Data Quality Campaign has more information in their blog

post on the President’s 2017 budget request.

Apprenticeship Training Fund: Renewing his request from the 2016 budget request, the

President asked for $2 billion to expand apprenticeship, consistent with the

Administration’s goal of doubling the number of apprentices nationally by 2019. This

fund would include a new $200 million proposal targeting youth apprenticeship and

pre-apprenticeship, requiring elements of both classroom and on-the-job training. The

budget proposes using $1.3 billion for increasing state-led strategies for increasing the

number of employers using apprenticeship as a training system and $500 million

targeting local and national partnerships to support apprenticeship.

Career Navigators: The president’s budget includes $1.5 billion over 5 years in

mandatory funds to create a network of Career Navigators to specifically work with

long-term unemployed and those who have left the labor force. The Administration

estimates that at these funding levels, Career Navigators could provide intense

services to up to one million participants a year.

Department of Education

The President’s budget request for the Department of Education would provide $69.4

billion in discretionary funding for FY 2017. This increase of $1.3 billion over 2016

levels would be coupled with $139.7 million in new mandatory funding over the next

ten years under the Administration’s budget request. The budget reflects additional

implementation costs if Congress is able to reauthorize the Higher Education Act and

the Carl D. Perkins Career and Technical Education Act before October 1, 2016.

The budget would level fund WIOA Title II Adult Basic Education state grants and

WASHINGTON UPDATE 6

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“…the

Administration

requests $22.5 billion

in discretionary

funding for federal

Pell grants,

consistent with FY

2016 discretionary

funding levels.”

Perkins Career and Technical Education Title I state grants, meaning that both

programs remain well below FY 2010 funding levels despite increasing demands for

services. The budget request also calls for expansions of the Pell Grant program to

make it easier for incarcerated individuals and other non-traditional students to access

funds.

Existing ED Programs

Career and Technical Education – the Administration requests $1.12 billion for CTE

state grants, consistent with FY 2016 levels. The President’s budget also includes $75

million in funding to support the American Technical Training Fund (ATTF), which

was included in the President’s FY 2016 budget request at $100 million in funding. The

President’s budget request calls for reauthorization of the Carl D. Perkins Act of 2006,

and includes a request for $80 million in competitive grants for partnerships between

local educational agencies, institutions of higher education, businesses, and other

entities to support college and career readiness.

NSC submitted Perkins Act reauthorization recommendations to the Senate HELP

committee and House Education and Workforce Committee in October 2015, and has

called for Congress to include dedicated funding for industry partnerships as part of

the reauthorization process.

Adult Education State Grants – the President’s request proposes $582 million for adult

basic and literacy education state grants, consistent with FY 2016 levels but below

WIOA authorized levels of $635.2 million. The budget calls for $24.7 million for

national leadership activities, an increase of $11 million compared to FY 2016.

Pell Grants – the Administration requests $22.5 billion in discretionary funding for

federal Pell grants, consistent with FY 2016 discretionary funding levels. The total

maximum award will be $5,935 for the 2017-2018 school year, an increase of $20 over

2016-2017.

The President’s budget request would make significant policy changes to the Pell

program, reinstating “year-round” Pell Grant that would allow students to access a

second award during an academic year, but capping the total available aid at 150

percent of the maximum annual award level. To be eligible for year-round Pell,

participants would be required to have completed a full-time course load of 24 credits.

The request also encourages students accelerating their degree by awarding a $300 Pell

WASHINGTON UPDATE 7

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“While America’s

College Promise

would make higher

education a reality

for millions of

students, the

proposal in its

current form would

not benefit working

adults who are only

able to attend

school less-than half

time.”

bonus award to students participating in 15 credits a semester and 30 semester hours

in an academic year. The budget calls for lifting the restrictions on providing Pell

Grants to incarcerated individuals, consistent with the Administration’s Second

Chance Pell proposal.

New Investments in Education and Training

American College Promise: Originally proposed in the FY 2016 budget request,

America’s College Promise would make up to two years of community college tuition-

free for all interested individuals who meet certain eligibility requirements. Funds

could be used to support enrollment in either academic programs that fully transfer to

public four-year colleges and universities or for occupational training programs with

high graduation rates that lead to certificates or degrees in demand by employers.

Participating states would also commit to maintaining support for current investments

in higher education, improve coordination between secondary and postsecondary

systems to reduce the need for remediation, and allocate at least some funding on the

basis of performance, rather than enrollment. While America’s College Promise would

make higher education a reality for millions of students, the proposal in its current

form would not benefit working adults who are only able to attend school less-than

half time.

Community College Partnership Tax Credit: The President proposes a business tax

credit of up to $5,000 for each community college graduate an employer hires to fill

skill gaps. Employers would be required to establish partnerships with community

colleges and donate instructors and equipment and make work-based learning

opportunities available to students. The proposal would make $500 million in credits

available for each year from 2017-2021.

Health and Human Services

The President’s budget request targets critical updates to Temporary Assistance to

Needy Families (TANF) by increasing the funding for the TANF block grant program

for the first time in twenty years and calls for new investments in systems

interoperability.

Existing Programs

Temporary Assistance for Needy Families (TANF): the President’s budget requests an

increase to the TANF overall state block grant by $8 billion over the next five years and

WASHINGTON UPDATE 8

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would require states to spend at least 55 percent of combined federal and state funds

on core benefits, including work activities. The request would repurpose the current

TANF Contingency Fund to, among other things, establish the $473 million Pathways

to Jobs Initiative and invest $100 million in two-generation demonstration projects.

The budget also calls for the establishment of a $2 billion TANF Economic Response

Fund, similar to the TANF Emergency Contingency Fund, established under the

American Recovery and Reinvestment Act.

NSC submitted TANF reauthorization recommendations to the House Ways and

Means Committee in July 2015, including calls for increased funding for the TANF

block grant and increased investments in innovative workforce strategies.

New Investments in Education and Training

Advancing Human Services Interoperability: the President’s budget request proposes

$10 million in discretionary funding to establish a Systems Innovation Center, to

improve interoperability between programs including TANF, Child Care, Child

Welfare and SNAP. The President’s proposal also includes $50 million in mandatory

funding to create a Statewide Human Services Data System Grant Program intending

to support states management of longitudinal data. The Workforce Data Quality

Campaign has more information on this request and other data requests in the

President’s budget.

Training and Employment Services Omnibus FY 2016

Appropriation

Levels

President’s FY

2017 Budget

Request

Department of Labor

Workforce Innovation and

Opportunity Act Title I – State

Formula Grants1

$2,709,832,000 $2,847,861,000

WIOA Adult $815,556,000 $842,376,000

WIOA Dislocated Worker2 $1,241,719,000 $1,334,205,000

1 Sum of WIOA Adult, Dislocated Worker, and Youth grants 2 Includes Dislocated Worker National Reserve

WASHINGTON UPDATE 9

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WIOA Youth $873,416,000 $902,139,000

Wagner-Peyser/Employment Service

Grants

$680,000,000 $680,000,000

Workforce Data Quality Initiative

Grants

$6,000,000 $40,000,000

Apprenticeship Grants $90,000,000 $90,000,000

Native American Programs $50,000,000 $52,000,000

Ex-Offender Activities $88,078,000 $95,078,000

Migrant and Seasonal Farmworkers $81,896,000 $81,896,000

Youth Build $84,534,000 $84,534,000

Department of Education

Career and Technical Education State

Grants

$1,117,598,000 $1,117,598,000

American Technical Training Fund N/A $75,000,000

Adult Education and Family Literacy

State Grants

$581,955,000 $581,955,000

Federal agencies release final requirements for WIOA unified, combined

plans On February 22, the US Department of Labor, in coordination with the US

Departments of Education, Health and Human Services, Agriculture, and Housing and

Urban Development, released the final requirements for State Unified or Combined

Plans as required under the Workforce Innovation and Opportunity Act (WIOA). The

information collection (IC) outlines all of the elements that must be included in a state

plan, including the basic requirements for a Unified Plan that covers only the six

“core” programs under Titles I-IV of WIOA, and additional elements that are required

for a Combined plan that includes the core programs and at least one additional

workforce or education program described in (§) 103 of WIOA.

WASHINGTON UPDATE 10

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The agencies released a draft of the state plan requirements for public comment in

August 2015, and National Skills Coalition submitted recommendations in response to

this draft in September 2015. The agencies have posted a “supporting statement” that

outlines the comments received from NSC and other organizations, and modifications

to the August draft IC made in response to those recommendations. Among other

things, the agencies accepted NSC’s recommendations to:

Require states to provide clear descriptions of the industry or sector

partnerships and career pathways that will be implemented in the state,

including descriptions of how core programs and other partner programs are

aligned to support sector partnerships.

Require states to include a description in the state plans of the methods used

for joint planning and coordination across core and partner programs.

Expand the requirement that states describe efforts to engage community

colleges and area career and technical education (CTE) schools to include other

education and training providers, including training programs on the state

eligible training provider list and adult education providers.

Clarify that accessibility requirements for the one-stop system, including

physical accessibility requirements under the Americans with Disabilities Act,

apply to all one-stop partner programs and operators.

The revised IC and supporting statement also:

Provides that states will not be required to include one-stop infrastructure cost-

sharing agreements (as described under section 121(h) of WIOA) in their first

WIOA plan, but will be required to include their cost-sharing guidelines in

their 2018 plan modifications;

Adds a requirement that states describe how they will ensure accessibility in

the one-stop system for individuals with limited English proficiency;

Provides that assessments of the effectiveness of core programs and one-stop

partner programs (as required under section 102(b)(2)(C)) will not be required

until states submit plan modifications in 2018;

WASHINGTON UPDATE 11

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“…the later

submission date for

state plans may

provide states and

stakeholders with

additional

opportunities to

ensure that plans

are inclusive of key

partners and

strategies

highlighted under

the law.”

Includes a requirement that states identify criteria for approval of local

transfers of funds between Title I Adult and Dislocated Worker programs.

DOL announces revised submission dates for WIOA state plans, updates

on final rules

On January 21, the Department of Labor (DOL) issued updated information about the

deadlines for state plans under the Workforce Innovation and Opportunity Act. By

statute, unified or combined state plans must be submitted by March 3 of this year, but

the department has indicated that it will accept plans as timely if they are submitted

by April 1st.

DOL also states that they are working with the Department of Education and other

Federal agencies to release final regulations for WIOA in June 2016. Under WIOA, the

final rules were supposed to be released not later than January 22, 2016; DOL indicates

that the volume of comments received in response to draft regulations released in

April 2015 - as well as comments received in response to a state plan information

collection request (ICR) instrument in August – is responsible for the delay. National

Skills Coalition submitted comments on both the draft rules and the state plan ICR,

with a particular focus on ensuring that the final rules adequately supported the

expansion of sector partnerships and career pathways strategies, and ensuring that

outcome requirements under WIOA supported high-quality services for job seekers

and employers.

While the delayed release of the final rules is disappointing, the later submission date

for state plans may provide states and stakeholders with additional opportunities to

ensure that plans are inclusive of key partners and strategies highlighted under the

law. National Skills Coalition has released a range of publications and materials on

realizing the potential of WIOA, including our “Aligned by Design” webinar series on

aligning WIOA state plans with career and technical education under the Perkins Act,

adult education programs under WIOA Title II, Temporary Assistance for Needy

Families (TANF), and Supplemental Nutrition Assistance Program Education &

Training (SNAP E&T).

National Skills Coalition encourages the agencies to ensure that states and local

stakeholders are provided with sufficient guidance to support the continued

implementation of the law, particularly as we head into the second year of

WASHINGTON UPDATE 12

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implementation. We will continue to monitor developments on regulatory process and

will provide updates to the field as new information becomes available.

NSC submits comments on DOL’s Notice of Proposed Rulemaking on

Equal Employment Opportunity in Apprenticeship On January 4th, National Skills Coalition submitted comments on the Department of

Labor’s (DOL) Notice of Proposed Rulemaking(NPRM) on Equal Employment

Opportunity (EEO) in registered apprenticeship programs.

Under the National Apprenticeship Act of 1937, the Department of Labor (DOL) is

tasked with promoting standards necessary to “safeguard the welfare of apprentices,”

which the agency interprets as including EEO in apprenticeship. The relevant

regulations, found at 29 CFR 30, address the potentially discriminatory impact of

recruitment, selection and hiring, and retention policies within apprenticeship

programs registered with DOL and State Apprenticeship Agencies. These regulations

are intended to further DOL’s goal to promote and protect opportunity for all workers

and all employers by removing barriers to fair workplaces.

The proposed rule would be the first update to the regulations since 1978 and would

make two major changes: (1) add age (40 or older), genetic information, sexual

orientation, and disability as protected bases upon which a sponsor of an

apprenticeship program cannot discriminate, and (2) update affirmative action

requirements for sponsors of registered apprenticeship programs. The proposed rules

would also align the regulations with other changes to EEO laws in the past 37 years.

Overall, NSC supports DOL’s proposed rules. NSC’s comments focus on the potential

linkage between the registered apprenticeship system and the workforce development

system, given the recent passage and implementation of the Workforce Innovation and

Opportunity Act (WIOA), and the importance of quality pre-apprenticeship programs

as a part of a career pathway leading to registered apprenticeship.

Specifically, NSC encourages DOL to issue updated guidance on what qualifies as a

quality pre-apprenticeship program, adding specific references to WIOA and best

practices on linkages between quality pre-apprenticeship programs and industry or

sector partnerships.

WASHINGTON UPDATE 13

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NSC also encourages DOL to suggest registered apprenticeship sponsors partner with

pre-apprenticeship training programs, working with the pre-apprenticeship training

providers to tailor programming to sponsors’ needs and leading to more efficient –as

well as diverse –recruitment outcomes for sponsors.

You can read the entirety of NSC’s comments here.

New grant will provide childcare to parents in training programs On December 17th, 2015, the Department of Labor announced the availability of

$25,000,000 in grants under the Strengthening Working Families (SWF) Initiative. The

Initiative will award up to $4,000,000 in funds to partnerships between the workforce

development system, education providers (including community colleges, community

based organizations, and tech boot camps), child care providers and employers.

Funded by H-1B visa funds, the program is intended to address barriers related to

child care that workers face in maintaining employment and engaging in training.

Applicants will be required to show their partnership’s capacity to improve access to

child care resources in a way that supports both parents’ current attachment to the

workforce and benefits the long-term success of the child. The grants may offer

recipients the chance to support career pathways in their region, as required under the

Workforce Innovation and Opportunity Act (WIOA), by funding services that improve

access to child-care services, a key element of many career pathways.

Partnerships are required to include at least three employer partners or an employer

industry association with at least three employer members. As states and regions set

up and expand industry or sector partnerships, as required under WIOA, these

partnerships may be integral for applicants’ success under the SWF Initiative.

This grant program is an element of the Administration’s Job-Driven Action Plan,

which includes goals to maximize the use of limited resources by creating new or

expanding existing partnerships between key workforce stakeholders and to provide

critical supportive services to ensure all individuals can succeed in the labor market.