Focus for Funds, Eligible Activities, Distribution of Resources, Team Formation

Anticipated Outcomes:

·         Living wage jobs, created and retained, in Oregon
·         Highly skilled workforce, especially for knowledge-based industries
·         Globally competitive Oregon businesses, based on the skills of their workforce
 
I.    Purpose
The Employer Workforce Training Fund (EWTF) was established by Executive Order to support the retention and growth of living wage jobs, a skilled workforce, and competitive businesses in Oregon.  The Fund is a flexible, responsive, and time-sensitive resource for training Oregon's private sector workforce.  The emphasis of the funds is to upgrade skills of the workforce in order to increase productivity, keep Oregon businesses viable and competitive, and to offer new skills and opportunities to Oregon's workers. 
The EWTF supports training of current workers, for growing businesses, training initiatives for industry associations and strategic economic clusters, and initiatives designed by business-labor consortia.  Particular emphasis will be placed on investments that assist labor, businesses and industries with cost effective training projects that retain and expand jobs in traded-sector clusters that are economically important to the state's regional economies and the state as a whole.
Funds are available at the regional and state levels.  On the regional level, funds are prioritized and awarded through Workforce Response Teams (WRTs).  These teams: 1) provide a single point of contact and a quick turnaround for existing businesses and their workforce needs;  2) set regional funding priorities for grants; and 3) award grants to businesses.  On a state level, funds are utilized for projects having statewide and/or strategic economic impact through the Community College and Workforce Development Department, at the Oregon Workforce Investment Board´s (OWIB) discretion.
 
II.         Fund Allocation A.  First Year Allocation:                                  $6.0M                          
15% Governor's Strategic Reserve                       $0.9M                          
20% Statewide Initiatives                                    $1.2M                          
65% Distribute to 15 Workforce Regions               $3.9M  
 
B.  Distribution of Funds for fiscal year 2003-2004: First year:  65% to regions; 35% reserved at state level.
For subsequent years: Annual review will be conducted by OWIB to determine fund allocation.
 
C.      Regional Distribution Formula The distribution formula for the regional funds will be easy to understand and simple to calculate.  The Regional Fund will be apportioned so that 60% is distributed based on Economic Drivers and 40% based on Equitable Foundation.
The 40% foundation will be divided into 15 equal shares among the 15 workforce regions.  Then the 60% will be added to each region's foundation, based on the region's percentage of covered private establishments, and the region's percentage of  covered private sector labor force.
  III.        Regional Fund Focus A.      Eligible Uses
The Employer Workforce Training Fund will be used at the Regional Level for job-attached training for incumbent, private sector workers.
Emphasis areas for training projects: Emphasis areas will be used in the regions to focus their work and screen projects to determine which are the most advantageous economically to the region and the state.  Projects that address the most emphasis areas will have the greatest priority for funding.
1)       Companies in clusters formed around traded-sectors;
2)       Training in occupations or skills where shortage exists in region or state;
3)       Training in skills necessary to permit companies to advance their technological capabilities or enhance their productivity.
4)       Multiple employer, worker or industry association-led projects, while still allowing single employer projects;
5)       Projects that make a conscious attempt to utilize existing curricula/training programs/resources, when available, and develop new curricula only when it will not duplicate other work;
6)       Training of workers who are paid wages that meet or exceed the median hourly wage in the county in which they are trained, or result in wage gain or career ladder development;
7)       Training that leads to industry certification or industry skill standards.
 
Capacity-building activities that are part of a specific training project, such as conducting needs assessments with employers, designing and developing curricula, or developing and delivering post-training evaluation, are considered eligible activities to be funded within the context of a training project.
 
Recapture Clause:  First year: any region that has not made contractual commitments for at least 75% of its funds within six months after certification of its Workforce Response Team will demonstrate a plan for expending resources by the end of the fiscal year or will return the funds to the state for distribution to other regions demonstratiing excess need. 
Subsequent years: any region that has not made contractual commitments for at least 50% of its funds by January 15^th will demonstrate a plan for expending resources by the end of the fiscal year or will return the funds to the state for distribution to other regions demonstrating excess need. 
 
B.   Ineligible Expenditures
Funds may not be used for:
1)       Training of public sector employees;
2)       Recruitment of non-Oregon-based businesses or workers;
3)       Wages for trainees;
4)       Purchase of equipment;
5)       Businesses that are relocating existing jobs from one location to another in or outside the state.  Companies that locate in Oregon or relocate workers from their original location outside the state will be eligible for training funds after the workers to be trained have been paid employees in Oregon for 120 days.
Note: clarify allowable relocation within regions and state in administrative rules.
 
           C.        Grant Size 
There is no minimum or maximum grant size for regional or state projects.  Regional Workforce Response Teams will have discretion in the award of grants and will make appropriate investments to leverage resources and maximize program outcomes and performance measures.  The OWIB will determine the appropriate size for statewide grants.
D.         Employer Match
Companies that receive grants from the Employer Workforce Training Fund for training projects must provide non-governmental matching funds or in-kind contributions to the project that equal or exceed the amount of the grant.
Note: clarify allowable in-kind contributions in Administrative Rules.
 
E.      Workforce Regional Response Teams (WRTs)
1)  Formation
The regional WRT core team consists of representatives from the Employment Department, Community College, Title 1-B Provider, one or more local economic development organizations, the Oregon Economic and Community Development Department Regional Development Officer, and other representatives as determined by the region to be necessary.
 
WRTs are formed by and with the collective partners in a process that insures that each organization or entity is actively engaged in determining the regional formation, composition, responsibility, and operational functions and practices of the WRT.  There should be a conscious effort to empower the team to discuss approaches to linking economic and workforce development in the regions to address employer and current worker needs.
 
All members need to be formally assigned by their organizations to the WRT and be clear about what they bring to the WRT and what roles they play.
 
Additional team members from business, labor, higher education, industry associations, or other local economic development organizations, et al. should be added as appropriate to the core WRT to perform the function of awarding grants to eligible businesses by:
a)       Utilizing data and statewide policies to determine the strategic focus of the training funds;
b)       Developing and utilizing a process for awarding grants to regional businesses;
c)       Developing strategies (where appropriate) to work with multiple employers in a sector and/or cluster to maximize regional and statewide impacts; and
d)       Communicating and being responsible to the designated administrative and/or fiscal entity for reporting requirements and the notification for awarding grants;
e)       Awarding grants to businesses meeting the criteria of the Employer Workforce Training Fund guidelines, the OWIB Training Fund Advisory Committee, and their regional strategic priorities;
f)         Communicating to regional partners the status of the grant award process and the recipients of the grants.
 
      2)   WRT Recognition Process:
The designated regional Workforce Response Team (WRT) will respond to a Request for Qualification (RFQ) from the state.
The WRT will respond in writing to these areas:
a)       A list of the WRT members performing the business response operational function and another list of the expanded team members performing the grant award function.
b)       Letters from member organizations identifying their particular representative to the WRT and contributions they will make to the team.
c)       Description of process for conflict resolution, decision-making, and awarding the grants.
d)       Identification of an administrative agent with a single point of contact:
1.       Responsible for gathering performance measures and outcomes data on a quarterly basis, or more often, if necessary;
2.       Reporting performance measures and outcomes data as described in the Administrative Rules;
3.       Assuring that the grant funds are expended for the purposes described in the Rules;
4.       Developing and maintaining a process for conflict resolution between WRT members, partner agencies, the community, and/or recipients or non-recipients of the grants;
5.       Identification of a fiscal agent, and assurances that the designated administrative and/or fiscal agent:
                                                                                                   i.      Uses generally accepted accounting principles; and
                                                                                                 ii.      Has demonstrated fiscal responsibility.
 
A boiler plate application form will be available for each region to customize for its own use, ensuring that businesses located in multiple regions will have a similar application form.
 
                  3)   Reporting Requirements
Reporting requirements will be determined by the Department of Community Colleges and Workforce Development and will include, but not be limited to:
a)       Quarterly reports on: 1) performance measures and outcomes; 2) fiscal reports on grants awarded; and 3)  projects completed and in process;
b)       Periodic reports to regional Workforce Investment Board; and
c)       Annual project and fiscal reports that include recommendations for program improvements.
 
Note:  A matrix will be developed to simplify the reporting process that includes the report required; the frequency of submission; to whom; and the agency/institution requiring the report.
 

IV.        Statewide Funds and OpportunityAreas:
Statewide funds are for the purpose of solving unique challenges or engaging in unique opportunities in the state with regard to its workforce development system.  Statewide funds will only be used if the challenge or opportunity cannot be addressed with other system resources (e.g., Title 1B, Wagner-Peyser, Title II). 

 
A. Statewide funds will be focused in Opportunity Areas
Opportunity Areas (some of these projects will be coordinated with regions):
1)       Address major skill gaps in specific occupations/industry across the state.  Must have an impact on addressing skill gaps in at least five workforce regions. Example: health care - expand statewide capacity to train in one or two high demand health occupations by removing barriers, improving articulation, or expanding class offerings, scheduling, etc.
2)       Build capacity statewide in a traded-sector industry.  Example: build skill panels in several regions for biomedical or metals or food processing; identify their training needs; utilize or develop curricula; position industry/employer consortia to qualify for training funds at regional level in future years.
3)       Implement cross-industry, transferable skills training project statewide.  Example: Scale the manufacturing skills standard project (in 8/8 reading materials) or implement OCKED IT Road Map project that would develop capacity for regional and on-line development of IT skills across industries statewide or develop vocational ESL/language proficiency project.
4)       Identify a successful project(s) previously funded by the Current Worker Grant Program and expand to more regions and/or to a statewide scale.  Example: Secondary Wood Products Training System (31 companies, multiple community colleges).
5)       Develop alternative training delivery systems that provide just-in-time training, training in remote areas, or training designed around the needs of businesses and workers (evenings, shortened schedules, sequential modules rather than academic schedules). Example: develop improved access to on-line training, implement Career Pathways project in several regions.
 
B.  OWIB will seek or identify proposals based on OWIB strategic plan priorities.
 
C.  OWIB will elect projects within opportunity areas and recommend projects and funding amounts to the Governor.
 
V.         Governor's Strategic Reserve:  The Governor's Strategic Reserve will use broad criteria that mirrors OEDCC Division 90 Administrative Rules, with minor changes (replace "community development" with "workforce development," delete references to recruitment and focus on retention and expansion of companies.