By Josie Hathway
January 31, 2005

Rockford Mayor Douglas P. Scott, Chair of the Workforce Development Standing Committee, opened the meeting calling for a strong local governance role in the reauthorization of the Workforce Investment Act of 1998 (WIA), which Congress is due to reauthorize this year. Department of Labor Employment and Training Administration Assistant Secretary, Emily Stover DeRocco, who was appointed by President Bush in his first term, addressed the committee.

The Administration's workforce agenda, which DeRocco described as a "forward looking economic development agenda," is seeking to provide more flexibility to address local labor market needs, empower individuals to take more control of their own education and training, and expand alternatives for post'secondary education and training. In order to address these goals, DeRocco said that there must be changes made to WIA.

Under current law states pass the majority of federal WIA funds through to local workforce areas, which are governed by local elected officials and their business led workforce investment boards (WIBs). The local elected officials and WIBs are responsible for the design and implementation of workforce strategies, including One'stop career centers, to meet the needs of the workforce and businesses, with targeted funds for youth, adults and dislocated workers.

DeRocco described proposed reforms to WIA as follows:

• Streamline the governance structure.
• Integrate job search assistance services provided by the Employment Services program, which serves unemployed individuals, and WIA One-Stop services.
• Redirect funds for One'stop infrastructure and administration to training.
• Redirect the distribution of funds within states. DeRocco said, "In some areas, there is an artificial distribution of funds. Funds are not distributed to economic development or local labor market areas that make sense; they are driven only on political jurisdictions. We think that at least we need to discuss the in'state distribution and allow some flexibility to work with your governors to ensure that the distribution of funds in the state helps reflect the economy in your state."
• Strengthen business presence on WIBs
• Create more individual choice by providing additional funds for Personal Reemployment Accounts (PRAs), which are personal accounts of up to $3,000 for unemployed individuals to purchase training and other services of their choice.
• Increase accountability measures.
• Provide more flexibility and control. DeRocco said, "We believe that we should give governors and local elected officials flexibility and control over more resources."

DeRocco said that the Administration will reintroduce last year's proposal for a consolidated state block grant and also include the WIA youth program. The proposal would consolidate WIA adult, dislocated worker, Employment Services and youth funding. The President's FY 2005 budget proposed a consolidated adult block grant which combined and cut the resources by $159 million. It was not included in the final FY 2005 omnibus appropriations bill passed by Congress.

Though DeRocco talked about giving more flexibility and control over resources to mayors, it is not clear what authority and resources mayors would have under a state block grant. Details of the Administration's WIA proposals will be included in the President's Fiscal Year (FY) 2006 budget which is scheduled to be released on February 7.

Scott reinforced the importance of a providing a strong role for mayors and their workforce boards in the Administration's proposals, including the newly funded $250 million community college initiative. DeRocco agreed that there should be a strong partnership with workforce boards, though she said that the grants will be awarded competitively to partnerships between businesses and community colleges. The purpose of the grants is to increase the faculty, curriculum and capacity for community colleges to become strong workforce development partners. The announcement of grant applications is expected in the spring for grants that will be awarded July 1.