THE WORKFORCE INVESTMENT ACT
LOCAL WORKFORCE INVESTMENT AREAS
AND REDESIGNATION
Oregon Associated
Counties
April 14, 2014
WHY NOW?
Changing economy
 Increasing disparity
 New approaches to economic development
 Focus on skills as our competitive advantage
Getting more leverage from decreasing funds
 Aligning all workforce development resources toward community
goals
 Aligning workforce with economic development and regional
solutions.
Focus on local decision making
WHAT IS AN LWIB?
Federally mandated private public partnerships (WIA 1998)
The Board members must include:
 Business majority
 Organized Labor, Economic Development, Education and Workforce Programs
 Chief Local Elected Officials (County Commissioners/Judges/Mayors)
LWIB usually incorporated as a 501c3 or as intergovernmental
organization (ORS 190)
Organization’s staff are also the staff to the board
In Oregon, an LWIB may not also be a service provider for WIA
services
RESPONSIBILITIES OF LWIBS
Align workforce programs and strategies at the local level
Invest WIA Title 1 funds to help people get to work
Align local workforce supply and demand
Assure those with barriers to employment are able to find
employment and enter career pathways
Charter WorkSource Centers
Oversee WorkSource Center and local workforce system
performance.
Bring a wide array of partners into the local workforce system
CHANGING LWIB ROLE
“System building” to meet local needs
 Great Recession - high unemployment, reduced federal $, especially in
rural areas - need to reach beyond WIA for $ and in-kind resources
 Economic disparities – require alignment with local economic development
to tailor and prioritize services based on local needs.
 Diffuse system – requires aligning the web of state and local workforce
programs to assure that those with economic challenges have opportunity
to become employed.
SB 1566 and Executive Order 13-08 begin to
address these facts
LWIBS ARE THE PUBLIC TALENT MANAGEMENT TOOL FOR
ECONOMIC GROWTH
But their areas don’t always align with labor markets/economic
development/industry clusters
WORKFORCE AREA REDESIGNATION
2005 Omnibus Budget Bill
 Governors cannot unilaterally change area boundaries, except
for
 poor local performance
 serious fiscal mismanagement
 lack of opposition by affected local governments
Oregon LWIB boundaries set in 1998
Tillamook is the only county to have left one workforce
area and joined another since then.
LOCAL AREA REDESIGNATION
If one or more counties would be better served by having a
different geographic configuration:
 They could ask to join an existing area or ask to form a new workforce area
Any counties remaining from original area:
 Could ask to join another workforce area or ask to form a new workforce area
Once the boundaries are finalized, the new Local Workforce
Area must determine
 Whether to integrate under and existing LWIB or from a new one
LWIB works with Chief Local Elected Officials (CLEOs) to
assure appropriate services throughout the new workforce
area.
 Service providers can be “grandfathered” for a period of time to avoid
disruption of services
FORMING AN LWIB
CLEOs appoint board members
Board establishes organizational structure (501c3, ORS
190, etc.)
 An existing organization can become an LWIB as long as it has control over
its resources and does not provide WIA Title 1 services
Board hires a director and enters into agreements with
CLEOS
LWIB submits to be chartered by OWIB
LWIB issues a request for proposals
ROLES OF CHIEF LOCAL ELECTED OFFICIALS
Appoint and partner with a business-led LWIB
Provide oversight and direction as needed
Assure that the LWIB has a mechanism to manage liability
 Local government(s) are liable for disallowed costs ONLY IF the workforce
area
 cannot pass liability on to a service provider,
 insurance does not cover the deficit,
 there are insufficient general funds held by the local grant recipient to cover the
liability,
 a waiver is denied by either the State or USDOL.
NOTE: To date, no local NW government has incurred liability
due to WIA disallowed costs.
OREGON’S APPROACH TO REDESIGNATION
Collaborative:
 OWIB, CLEOS and public have input
But unfortunately, fast
 CLEOs petition to change boundaries are due April 15,
2014
 New boundaries recommended by July 1, 2014 and sent
to DOL for approval by October 1, 2014
 New/revised workforce area(s) begin(s) operations July
1, 2015
CRITERIA FOR LOCAL AREA
 Areas should be served by local education agencies, post-secondary
educational institutions and area vocational education schools.
 Consistent with labor market areas.
 Consider distance traveled to receive workforce services.
 Assure sufficient resources to administer the WIA 1B program.
 Consider evidence that a redesignation would:
 Better meet criteria in OWIB strategic plan (sector strategies and
work ready communities)
 Be more effective or efficient (?), and
 Produce better performance results for customers (?)
Governor likely to add:
 Align with economic development districts and/or regional solutions
 Counties in the area should be contiguous
WORKSOURCE CENTER AND AFFILIATE
SITES
COSTS/RESOURCES
Factors:
 The cost of coordination – LWIB costs must be budgeted
 When counties move from one area to another, their WIA investment
moves with them.
 Some configurations are too small in terms of resources
 The cost of new configurations will be supported with more than
WIA Title 1
Conclusion: Oregon could support up to 8 to 9 LWIBs
without significant additional investment (there are
currently 7)
BOUNDARIES
AOC
April 14, 2014
NORTH COAST
Clatsop, Columbia, Lincoln and
Tillamook Counties
MID-WILLAMETTE VALLEY
Marion, Polk and Yamhill Counties
SOUTH WILLAMETTE VALLEY
Benton, Lane, Lincoln and Linn
Counties
SOUTHERN OREGON
Coos, Curry, Douglas, Jackson and
Josephine Counties
METRO
Clackamas, Multnomah and
Washington Counties
CENTRAL OREGON
Crook, Deschutes, Hood River,
Jefferson, Klamath, Lake,
Sherman and Wasco Counties
EASTERN OREGON
Baker, Gilliam, Grant, Harney,
Malheur, Morrow, Umatilla, Union,
Wallowa and Wheeler Counties