I.Purpose
The purpose of this policy is to provide guidance on the use of the
United States Department of Labor (USDOL) approved waivers of Workforce Innovation
and Opportunity Act (WIOA) laws and regulations.
II.Effective
Date
July 1, 2022-June 30, 2024
III.Rescission
Workforce Innovation and Opportunity Act (WIOA) Policy Letter No. 17-04.1, Waivers for Implementation of
the Comprehensive Case Management and Employment Program (October 14, 2020).
IV.Background
The Comprehensive Case Management and Employment Program (CCMEP)
was created to transform the network of human services and workforce programs across
Ohio. To help Ohioans move beyond poverty
to meaningful employment, Ohio has modernized its system by integrating youth programs
funded by Temporary Assistance for Needy Families (TANF) and WIOA to create a new
way to work.
By integrating WIOA and TANF youth programs, Ohio may more effectively
utilize and leverage federal dollars from these funding sources to support the needs
of customers who are eligible for these separate funding sources. Braiding funds allows the WIOA youth program to
provide more comprehensive services to participants while maximizing partner resources
to assist youth.
To allow more flexibility with WIOA youth program funds to implement
CCMEP, Ohio requested the following waivers:
1.Waiver
of WIOA Section 129(a)(4) and 20 CFR 681.410 which require that local workforce
development areas expend at least 75 percent of local area youth funds to provide
services to out-of-school youth (OSY) and calculation of the local area expenditure
for each local area.
2.Waiver of 20 CFR 681.550 to allow WIOA individual
training accounts (ITAs) for in-school youth (ISY).
3.Waiver of 20 CFR 681.590(b) to allow local
workforce development areas to count both WIOA local youth formula funds and TANF
funds toward the minimum 20 percent expenditure requirement for paid or unpaid work
experience.
4.Waiver associated with the requirement at
WIOA Section 129(a)(4)(A) and 20 CFR 681.410 that States expend 75% of Governor’s
reserve Youth funds on Out of School Youth (OSY).
On June 7, 2022, the Ohio Department of Job and Family Services received
a letter from the United States Department of Labor (USDOL) fully approving Ohio's
requested waivers. These waivers are approved
through Program Year (PY) 2023 or June 30, 2024.
V.Requirements
A.Waiver
to allow TANF funds to count toward the 75 percent expenditure requirement for out-of-school
youth and to calculate the expenditure requirement on a statewide basis.
Under CCMEP, with its emphasis on co-funding to benefit a more cost-effective
service delivery, the number of disconnected youth that can be served will increase,
particularly given the large infusion of TANF dollars. This will ultimately allow WIOA youth dollars
to have a further reach and greater impact in local communities. Additionally, by allowing the calculation of the
expenditure rate to be statewide, there would be more flexibility amongst all the
local areas to serve the population of participants unique to that local area.
To recognize the influx of TANF dollars being invested in the WIOA
out-of-school youth population under CCMEP, the Office of Workforce Development
(OWD) will include the amount of TANF dollars spent on co-enrolled WIOA out-of-school
youth during a program year (PY) both the numerator and denominator of the out-of-school
rate calculation. The formula below defines
the calculation to be used beginning with PY22 funds:
Out-of-School
Youth (OSY) Rate Calculation Under Waiver Authority
|
|
WIOA OSY expenses
|
|
+
|
|
TANF spent
on co-enrolled WIOA OSY
|
|
|
Total WIOA
OSY + In-School Youth expenses
|
|
|
TANF spent
on co-enrolled WIOA OSY
|
|
To align TANF spending to a WIOA program year, the time period for
CCMEP TANF expenses to be included in both the numerator and denominator will be
the TANF expenses for co-enrolled out-of-school youth reported in the twelve months
preceding the end-date of the WIOA Youth funds at the local area level. For example, PY21 Youth funds are available to
local areas until June 30, 2023, so the calculation will include TANF dollars invested
in local services benefitting out-of-school youth from July 1, 2021 until June 30,
2023.
The example below compares the out-of-school youth rate calculation
under current WIOA law to the proposed waiver flexibility for a local area that
spent $400,000 of its $600,000 in PY20 WIOA Youth program funds during the two years
of availability as well as $200,000 of its CCMEP TANF funds spent during the second
year of the Youth grant on services for out-of-school youth who are co-enrolled:
Of $600,000 in
Youth spending, $400,000 was spent on OSY:
$400,000 (divided by) $600,000
= 67% |
The area also invests
$200,000 of its TANF funds on co-enrolled OSY WIOA Youth:
WIOA TANF
$400,000 + $200,000 =
$600,000 $600,000 $200,000 $800,000
= 75% |
To determine the amount of TANF funds spent on co-enrolled WIOA out-of-school
youth, OWD will pro-rate the CCMEP TANF expenditures in a program year based on
the number of participants served in each CCMEP TANF population during that year
(i.e., served with TANF funds only, co-enrolled in WIOA in-school youth, and co-enrolled
in WIOA out-of-school youth). Only the proportion
of CCMEP TANF expenses for the program year attributable to co-enrolled WIOA out-of-school
youth based on relative participant counts in the three categories will be included
in the out-of-school youth rate calculation.
B.Waiver
to allow the use of individual training accounts (ITA) for in-school youth (ISY),
ages 18-21 years.
The intent of using ITAs in the WIOA ISY program is to expand training
options, increase program flexibility, enhance customer choice, and reduce paperwork.
This waiver encourages the youth
population to seriously look at career pathways and in-demand occupations
and empowers them to make their own decisions, thereby taking responsibility for
their actions.
Under this waiver, local WDBs and CCMEP lead agencies may use ITAs
for in-school youth. Local WDB directors
should contact the lead agencies and/or youth program providers to coordinate this
activity and ensure local area policies pertaining to ITAs will be adhered to.
By using an ITA, the local WDB does not have to competitively procure
training services funded by WIOA for in-school youth. However, training services must still be provided
in a manner which maximizes informed consumer choice in selecting an eligible training
provider.
This waiver expands the population of individuals who may receive
an ITA. Therefore, the requirements for providing
an ITA found in Workforce Innovation and Opportunity Act Policy Letter (WIOAPL)
No. 15-11.2, Use of Individual Training Accounts, and paragraph (E)(4)(a) of rule
5101:14-1-02 of the Ohio Administrative Code will also include in-school youth in
addition to out-of-school youth.
C.Waiver
to allow TANF funds to count towards the 20 percent work experience expenditure
requirement.
The purpose of this waiver is to increase participant enrollment
in work experiences by having TANF funded, co-enrolled participants count towards
the 20 percent requirement defined in 20 CFR 681.590. The waiver supports the principles
of streamlining services, increasing accountability and accessibility, state and
local flexibility and ease of administration.
Both WIOA youth and TANF expenditures will count toward the 20 percent
expenditure requirement for paid or unpaid work experience for youth co-enrolled
in those programs. In addition to WIOA local youth program funds spent on paid and
unpaid work experiences, including wages and staff costs for development and management
of work experiences, local areas in Ohio may include TANF work experience expenditures
in the calculation of the 20 percent work experience expenditure requirement.
If TANF funds are used for a co-enrolled youth’s work experience
wages, those funds must be added to the numerator and denominator of the existing
20 percent work experience calculation.
Of $500,000 in
WIOA Youth spending, $50,000 was spent on work experience:
$50,000 (divided by) $500,000
=10% | The area also invests
$100,000 of its TANF funds on work experiences for co-enrolled WIOA Youth:
WIOA TANF
$50,000 + $100,000 =
$150,000 $500,000 $100.000 $600,000
= 25% |
This will allow for more youth to be served in the WIOA Youth program,
more work experiences to be developed, and, ultimately, better outcomes for co-enrolled
WIOA and TANF youth.
D.Waiver
associated with the requirement at WIOA Section 129(a)(4)(A) and 20 CFR 681.410
that the State expend 75 percent of Governor’s reserve youth funds on OSY.
The state of Ohio requested a waiver to lower the minimum OSY expenditure
requirement for providing direct services to youth to 50 percent. This waiver will
allow more flexibility of funding special projects with WIOA Statewide Activities
funding to meet the mission of the state and address the effects that the COVID-19
pandemic and shutdown of schools to in-person learning had on students.
The goal of this waiver is to promote innovative special projects
through the implementation of evidence-based programs and strategies that increase
services to at-risk, in-school youth in local schools and communities, despite their
education status.
This waiver will allow local areas to partner with Ohio schools to
identify students who are most in need, provide necessary services, and leverage
federal funding for positive results.
VI.Technical
Assistance
Ongoing support, guidance, training and technical assistance on workforce
development area designation, subsequent designation, or redesignation requirements,
including stakeholder consultation, are available to all local areas.
Requests for technical assistance may be sent to ODJFS, Office of
Workforce Development: CCMEPQNA@jfs.ohio.gov.
VII.References
Workforce Innovation and Opportunity Act, §§ 129 and 189, Public
Law 113-128.
20 C.F.R. §§ 679.600 - 679.620, 681.410 and 681.550.
ODJFS, Workforce Innovation and Opportunity Act Policy Letter No.
15-11.2, Use of Individual Training Accounts, (August 11, 2020).