BWIB Briefer: An Update on MOED-WIA FY 05 Plans
May 28, 2004
The Mayor’s Office of Employment Development (MOED) is proud of the success it has
demonstrated in meeting and/or exceeding the federal Workforce Investment Act
(WIA) performance standards every year since WIA’s inception in Maryland in July
2000. Our efforts have focused on serving Baltimore citizens seeking to find jobs and
build careers and serving Baltimore area businesses seeking to hire, train and retain
qualified workers. As we face increased fiscal constraints in FY 2005, our guiding
principle will be to continue to provide this same level of excellent service to our all of
customers.
Challenges And Changes

Between FY 2002 and FY 2004, MOED has experienced and absorbed a 26%
reduction in federal WIA funding, and the agency is facing another 13% reduction in
allocations for FY ’05 over FY ‘04. Despite these funding cuts, there has been no
reduction in the number of customers who have been served through our One-Stop
System through the current period.

Based on a series of dialogues with the state Department of Labor, Licensing and
Regulation (DLLR), we are anticipating Wagner-Peyser funds (which currently
support state Job Service offices) and Workforce Investment Act funds (which
currently support the infrastructure and training services of the One-Stop System) to
be combined, significantly changing the local workforce system. This innovative
approach has the potential of streamlining the local delivery system, eliminating
duplication of services and providing increased resources in support of job specific
skills training. While it has not yet been determined when this consolidation will
formally occur, all local areas across the state have been encouraged to begin
planning for this change. Already, Job Service staff located within the One-Stops are
working in partnership with and receiving guidance from the local One-Stop
managers.

Affiliated Computer Services (ACS), the for-profit business that has been under
contract to manage the Northwest Career Center, has opted not to continue in this
role. According to ACS, the decreased funding that is allocated to support each
Career Center in FY 2005 will not allow the company to meet its desired profit
margin.
And Opportunities
MOED must reduce the costs of its infrastructure in order to address the serious fiscal
constraints. However, we view this as an opportunity to restructure parts of our delivery
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system that will help us increase the effectiveness of our agency. The following are
highlights of this restructuring:

The major structural change is a formal consolidation of MOED’s Employ Baltimore
and Career Center Network divisions. This will create a new streamlined single
division called the Workforce Exchange Division. This change will bring about a
better alignment between the demand side (business needs) and the supply side
(job seeker/career changer needs) of the workforce equation. We believe this will
promote more effective job matching and greater coordination in providing services
to our entire customer base.

We are also restructuring the FUTURES dropout prevention program as a result of a
50% funding reduction from the Baltimore City Public School System. By
reorganizing this department, we are able to continue to support our future workforce
by providing vital dropout prevention services to at-risk youth in five high schools.

MOED will manage the operations of the Northwest Career Center beginning July 1,
2004. With limited notice from Affiliated Computer Services, there was insufficient
time to issue an RFP to seek another contractor to operate the center. More
important, the anticipated consolidation of the Job Service and MOED staff will allow
us enough flexibility in realigning staff to enable us to take on the responsibility of
managing the center during the next fiscal year. In addition, we determined that it
was advantageous not to bring in a new contractor until our funding picture was
clearer.

With the significant decline in funding, MOED has been forced to implement a
reduction in force. The fiscal reductions (including significant reductions in the
federal MetroTech grant, the state dropout prevention dollars to fund our FUTURES
program and substantial cuts in our WIA allocation) have resulted in the elimination
of positions across the agency. However, there will be minimal reductions in our
direct service staff positions.

MOED successfully petitioned DLLR to provide us with additional funds for FY05
that will be dedicated to supporting MOED’s training initiatives, which include
individual training accounts (ITAs), customized training and our four Digital Learning
Labs. This will enable the agency to provide in FY 2005 approximately the same
level of training services as provided in FY 2004.

MOED has also increased its efforts to secure additional funding from foundations
as well as government sources – responding to grant opportunities, forging new
relationships with potential funders and submitting unsolicited proposals.
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
MOED is transforming its challenges into new opportunities – reshaping the agency,
building on our talents, employing innovation and technology and staying close to
our customers.

In FY 2004 the Department of Labor Licensing and Regulation supported a $1
million incumbent-worker training grant called “Maryland Business Works”. Each of
the 12 local Workforce Investment Areas were awarded a portion of that grant and
the remaining funds were open on a first come-first serve basis. To date, Baltimore
City has expended its allocation of $75K and has pulled down an additional $21K. A
summary of the first year’s accomplishments include:
 18 approved projects representing 17 businesses (BrannMD has two projects)
 240 employees participating in training
 $96,828 awarded to employers ($14,660 for training occurring after July 1, 2004)
 $14,443 still available for June projects (Johns Hopkins Community Physicians &
Sinai)
 $403 average cost per trainee
 31 planned promotions
 19 planned new positions
(Examples of Training: Central Sterile Processing Certification, Software System
training, Web Server Development, Graphic Design, Nursing Leadership,
Accounting, MOUS, MCSA, Personnel Management)
o We have recently learned that the State will allocate $1 million in a similar
fashion for this program in FY 2005
 FY 2005 will be an exciting year, with the opening of the new Innovation High
School, the Academy for College and Career Exploration (ACCE), in the fall, with the
continuation of our high-profile work on ex-offender employment, and continued
efforts related to DLLR’s new Maryland Workforce Exchange – a promising
electronic tool being used to promote job seeker and employer coordination and
success.
 MOED will continue to operate four one-stop career centers, increase coordination
of efforts with the Maryland Job Service and realign staff under Workforce
Exchange, the new structure uniting Employ Baltimore and the Career Center
Network. While our current assistant director, Pat Jackson, is moving to Kansas, our
new assistant director, Mary Sloat, brings to the position a wealth of experience in
workforce development including many years of managing the one-stop system for
Baltimore City.
 With the continued support of the Baltimore Workforce Investment Board, strong
leadership, talented staff, committed partners, and a well-grounded plan, MOED will
continue to provide the employment services needed to help Baltimore City
residents and business thrive.
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