Text of a letter from the National Association of State Workforce Board Chairs to HELP Committee Chairman Enzi and Ranking Member Kennedy re: the Association Chairs' position on WIA Reauthorization.


April 8, 2005


The Honorable Michael B. Enzi
Chairman
Senate Health, Education, Labor, and Pensions Committee
Washington, D.C. 20510

The Honorable Edward "Ted" M. Kennedy
Ranking Member
Senate Health, Education, Labor, and Pensions Committee
Washington, D.C. 20510

Dear Chairman Enzi and Senator Kennedy:

The National Association of State Workforce Board Chairs is pleased to
provide recommendations on reauthorization of the Workforce Investment
Act of 1998.  Our membership consists of the private sector executives
appointed by their governors to chair the state's workforce investment
board authorized under WIA, along with staff directors to state WIBs,
who are associate members of the Association.    

As private sector chairs, we firmly believe that the workforce
development system for the 21st Century must be broader and more
flexible than the current system. The needs and demands on this system
have changed significantly since the passage of the Workforce
Investment Act (WIA) in 1998. More than ever, the United States depends on the
skills and knowledge of its workforce to compete successfully in the
global economy.  The system must provide opportunities for every
individual to advance and every employer to gain the skilled workers
they need to compete.  It also must address the need to develop a
workforce equal to the global challenges facing America's businesses
and current and future workers, as well as the economic and demographic
challenges we face within our country.

WIA provided Governors the authority to make broad structural reforms
in their workforce development systems and to better align them with
education and economic development systems.  Using this authority,
Governors, working through state workforce boards and agencies, have
made significant progress in restructuring their workforce development
systems to produce the skilled workers needed to strengthen businesses
and the economy.   Reauthorization of WIA should support the expansion
of these efforts and address challenges that remain in building a
comprehensive, demand-driven, and accountable workforce development
system.  As private sector leaders in workforce development, we offer
the following recommendations for your consideration as you move
forward with reauthorization of WIA.   

1.    Workforce Board Composition:  The membership requirements under
WIA for workforce investment boards have led to the creation of large,
unmanageable boards in many states, which are a disincentive to active
business participation.  We recommend that the Governors be given full
discretion for determining the composition and organization of state
workforce boards while strengthening business leadership on the boards
and maintaining the business majority.  Governors also should be
allowed to grandfather in state boards established by legislation or executive
order prior to the passage of WIA. In addition, Governors should be
authorized to work with local elected officials to set the appropriate
membership and structure of local boards so they reflect the business
and community leadership within the regional labor markets.

2.    Designation and Redesignation of Local Workforce Investment
Areas: As states seek to bridge education, workforce and economic
development, they need the freedom to adjust local workforce areas to
match regional labor markets, local economic development regions,
community college districts and other system boundaries.  States also
need to designate local areas that are financially viable in an
environment of limited federal and state funding.

We believe that Governors, in partnership with local elected
officials, should have the authority to designate local workforce investment
areas to reflect unique workforce and economic needs within regions and
across the state.  While designation of local areas should be tied to
performance, we think that states require even greater flexibility to
create a more efficient and effective system that is aligned with
regional labor markets.  We also believe Governors should have the
authority to establish new single state workforce areas in consultation
with local elected officials when this contributes to a more efficient
and effective system.

3.    One Stop Infrastructure Funding:  Since the early days of WIA
implementation, most states and local areas have struggled to secure
commitments from partner programs to support the maintenance and
ongoing costs of one-stop centers.  In most states, the local Memorandum of
Understanding process has not led to strong or effective approaches to
cost and resource sharing. The two programs that currently cover the
bulk of the non-personnel costs of running one-stop centers are WIA
and the Wagner-Peyser Act.

We believe that all mandatory partners in the workforce investment
system should share the costs associated with the one-stop
infrastructure.  A reauthorized WIA should call for equitable
contributions of federal funds from all the mandated one-stop partners
to support the infrastructure costs associated with the administration
and operation of the one-stop system and provide Governors the
authority to achieve this.  We urge the Senate to provide Governors the
authority to develop solutions to infrastructure funding without restrictions on
the source of funding and without caps on partner contributions;
ensure that infrastructure funding comes from operating, not simply
administrative costs; and, give states full discretion in identifying
one-stop centers eligible for infrastructure funds.

4.    Governor's Discretionary Funds: One of the signal accomplishments
of WIA was the creation of a flexible pool of discretionary funds drawn from
15 percent of the state allotments for adult, dislocated workers and youth.
Governors have used discretionary funds to support vital services and
infrastructure, such as management information systems and one-stop
centers, provide additional assistance to local areas, and launch innovative
projects with statewide benefits.

We believe Governors should have full discretion over state reserve
funds. Nothing in WIA reauthorization should diminish opportunities
for Governors to direct discretionary funds toward the state's highest
priorities in addressing the skill needs of employers and workers in
regions across the state. We urge the Senate to avoid placing new
restrictions on the use of state-level funds.

5.    Business Services:  We view business as one of the primary
customers of the state and local workforce investment system.  A
reauthorized WIA should not diminish the flexibility to serve business
that is available under the current Wagner-Peyser program and should
expand upon this flexibility to serve business in existing WIA
programs. If Governors are to effectively link economic development and
workforce development, this flexibility is essential.  We urge the Senate to
ensure that the full range of labor market information and labor
exchange services can continue to be offered without increasing the
cost to our business customers.  

6.    Targeting Youth Services: Just as Governors need maximum
discretion over statewide funds, so they should have the authority to
determine the strategic focus and setting of youth programs based on
the needs and resources of their states, including determining the
appropriate mix of in-school youth and out-of-school youth.  We also
believe that state and local youth programs should maintain their
current share of the national appropriation.

7.    Waiver Authority: In today's fast-paced economy, Governors will
need the flexibility to act faster than ever before. Statutory
limitations to increased waiver authority should be removed and
Governors should be given broader waiver authority to adjust the
state's workforce development system to economic and labor market changes.
Governors should have the opportunity to apply for waivers that allow
for the integration of funding across programs and the creation of
workforce development systems that fit unique circumstances in each
state.  Waiver options, with the appropriate review and input from
other stakeholders could test new approaches on a smaller scale yielding
models for the next generation of workforce development legislation.
We urge the Senate to give broad discretion to Governors to apply for
waivers.   

8.    Discretion to Align Funds:  The current multiplicity of federal
programs and funding streams supporting workforce development with
numerous regulations, reporting requirements, and  administrative
agencies present formidable barriers to building a comprehensive,
demand-driven workforce development system.  Governors should have the
discretion to pool WIA, higher education, Temporary Assistance for
Needy Families (TANF) and other sources of federal training money at the
state level to respond to the needs of current and future workers and
businesses.  

9.    Performance Measures:  The current system of multiple
performance measures and reporting requirements for workforce
development programs is confusing, costly and ineffective in providing
policymakers the information they need to make quality decisions about
the investment of public resources.  We urge the development of a new
streamlined performance measurement system that is voluntarily
developed by states to include integrated performance information, common
measures and definitions, and that allows for the evaluation of short- and
long-term benefits to individuals and employers.  In addressing this
issue, we recommend that the Senate consider the groundbreaking work
of the leading states that developed a set of common measures and a guide
for integrating performance information as participants in the
Integrated Performance Information project funded by the Employment
and Training Administration.    

10.    Funding:  The federal resources to support the important work
of developing a skilled workforce have diminished significantly since
passage of WIA.  We believe that investing in workforce development
strengthens our economy and in turn the security of this country.  We
urge the Senate to maintain adequate funding, not only for WIA, but
for all workforce programs and to include a hold harmless provision to
ensure that the federal investment in these is not diminished.

The State Workforce Board chairs and directors believe there is an
urgent need to reform our public workforce development system and see
the reauthorization of the Workforce Investment Act as critical to
providing Governors, local officials, businesses, educators, and
workers the tools to achieve this.  Thank you for your consideration of our
recommendations.  Please contact me at (503) 642-4683 if you have any
questions or comments or Greg White, chair of the Association's staff
directors' advisory committee on (503) 378-8648, extension 465.   

Sincerely,
 

Gwyn Harvey
Association Chair