Workforce Investment Act Title I-B
 Washington State Policies

SECTION D: WIA Title I-B Incentive Policy


This document has been formatted for use on this website. It contains hyperlinks that enable the user to jump directly to specific areas within the document or to related documents.

Grantees, subrecipients, and contractors funded under the Workforce Investment Act, (WIA) whether in whole or in part, must abide by the Workforce Investment Act of 1998, the WIA Regulations, all applicable Office of Management and Budget (OMB) Circulars, state regulations in laws and rules (Revised Code of Washington and Washington Administrative Code), Office of Financial Management (OFM) policies, and the Washington State WIA Policies.
EFFECTIVE DATE:
WIA POLICY NUMBER:
SUBJECT:		 February 5, 2003
3665 (Revision No. 2)
WIA Title 1-B Incentive Policy


BACKGROUND | POLICY | DEFINITIONS | REFERENCES
SUPERSEDES | WEBSITE | INQUIRIES


BACKGROUND

Under the Workforce Investment Act (WIA) Title I-B, a portion of the Statewide Employment and Training Activities funds must be used to allocate incentive funds to local workforce development areas [WIA Sec.134(a)(2)(B)(iii)]. According to the state Strategic Plan for Workforce Development, "The State will earmark a portion of the state set-aside to reward local areas that exceed 100 percent of the average of the expected levels of performance for the state and federal core indicators. The Employment Security Department will allocate these funds to the local areas."

POLICY

Basic Principles For Incentive Allocations

Four incentive awards: The state will allocate four separate incentive awards to Workforce Development Councils (WDC) for exemplary performance results under the WIA Title I-B Youth Grant, Adult Grant, Dislocated Worker Grant, and for high levels of satisfaction by participants and employers. Depending on the results, a local area might receive no award, one award, two awards, three or four awards.

The following chart is the incentive distribution plan.

Incentive Category

 

Proportion of the total incentive funds to be awarded

Performance level for a WDC to receive an incentive allocation

Title I-B Youth Services

30 percent

Meeting or exceeding an average of 100 percent of the youth federal and state performance targets

Title I-B Adult Services

30 percent

Meeting or exceeding an average of 100 percent of the adult federal and state performance targets

Title I-B Dislocated Worker Services

30 percent

Meeting or exceeding an average of 100 percent of the dislocated worker federal and state performance targets

Federal core indicators for employer satisfaction and participant satisfaction

10 percent

Meeting or exceeding an average of 100 percent of the targets on the federal core satisfaction indicators

STEP ONE

Adjusting for local conditions: Regression models will adjust local targets for changes in area economic conditions and participant demographics that affect performance on the core indicators. The regression may move the target number downward or upward.

STEP TWO

Formula for calculating average performance in each category: The method used in the following example will be used to calculate the averaged performance in each of the four award categories:

WIA Title I-B Adult Services Example

Federal Adult Measures

WDA Regression Adjusted Target

WDA

Result

(Result/ Regression Adjusted Target)

x 100

Credential Attainment

67%

66%

98.5%

Entered Employment Rate

76%

78%

102.5%

Retention in Employment

83%

85%

102.4%

Earning Gains

$4,100

$4,300

104.9%

Average Performance Results for the Federal Measures

 

 

 

 

102.1%

State Adult Measures

 

WDA Regression Adjusted Target

WDA

Result

(Regression/ Regression Adjusted Target)

x 100

Educational Attainment

24%

33%

137.5%

Employment

73%

64%

87.7%

Earnings

$13,900

$14,100

101.4%

Participant Satisfaction

90%

84%

93.3%

Average Performance Results for the State Measures

 

 


104.9%
       

Total Average (Federal Average + State Average) divided by 2

 

 

 

103.5%

STEP THREE

Allocation Proportion: The amount of an area’s award for a given incentive category will depend on:

  1. The extent to which an area meets or exceeds 100 percent of the average regression adjusted results for the incentive category.
  2. The number of WDAs that meet or exceed 100 percent of the average regression adjusted results for the same incentive category.
  3. The size of the local area as measured by the same formulas used to allocate Title I-B Youth, Adult, Dislocated Worker grants. WDA size will not be a factor in calculating allocations for the federal satisfaction incentive award category.

The following formula will be used to calculate the awards in each of three award categories for Youth, Adults and Dislocated Workers:

   (Area Relative Performance)* X (Area Relative Size)**
    __________________________________________ 

   Average of (Area Relative Performance) X (Area
   Relative Size) Among Areas Meeting or Exceeding 
   100 percent

   X

Total Incentive Funds
_____________________

Number of Areas Meeting
or Exceeding 100 percent


*

Where "Relative Performance" for an area is calculated by:

            Area Adjusted Performance
            ____________________________
            
            Average Performance of Areas
            Meeting or Exceeding 100 percent

**

Where "Relative Size" for an area is calculated by:

              Area Size
              ___________________________

              Average Size of Areas Meeting
              or Exceeding 100 percent

 

For the award category of customer satisfaction, the following formula will be used:

Area Adjusted Performance                             Total Incentive Funds
________________________             X            ____________________

Average Performance of Areas                         Number of Areas Meeting
Meeting or Exceeding 100 percent                   or Exceeding 100 percent


Allowable Uses of the Incentive Funds

The local area incentive funds may be used for any activities allowed under WIA Title I-B [CFR 666.410] including program and administrative activities. In accordance with DOL guidance, expenditures for state incentive awards will be reported as non-administrative expenditures on the statewide report submitted to DOL.

This policy offers flexibility in that incentive funds awarded to a WDC for exemplary youth performance, for example, may be directed for services to eligible youth, adults, and/or dislocated workers. The source of the incentive funds is the WIA Sec.134(a).

DEFINITIONS

None.

REFERENCES

  • WIA Sec.134(a)(2)(B)(iii)
  • Final Rule 20 CFR Part 666.400 and 666.410
  • Washington State Strategic Plan for Workforce Development
  • Workforce Development Council WIA Operations Plans
  • Guidance delivered by DOL at a WIA fiscal training session

SUPERSEDES

None. This communication is new.

WEBSITE

http://www.wa.gov/esd/policies


DIRECT INQUIRIES TO:
Bryan Wilson
Workforce Training and Education Coordinating Board
PO Box 43105, MS 43105
Olympia, WA 98504-3105
E-Mail: bwilson@wtb.wa.gov
Telephone: (360) 753-0891
Fax: (360) 586-5862

Return to Top

Home

Title I-B