Strengthening Business Services
and Employer Outreach with ETP
Stewart Knox, Executive Director
Robert Meyer, Director of Economic Development
Nick Loret de Mola, Program Manager, CWA
1
Session Overview
1. What is ETP? (a primer)
2. Funding and Program Updates
3. WIB and WIA-Funded ETP Partnerships
California Workforce Association
4. WIOA implementation and new
opportunities
5. Q&A
2
What is ETP and what does it do?
ETP is a State agency that uses a pay-forperformance contract to reimburse the costs
for employer-customized, job skills training.
ETP does not:
•
•
•
provide training
mandate training topics for the employer
select or approve trainers
3
Basic Contract Relationships
ETP
Administrator
Trainers
Contractor
Internal Company Trainer
Private Training Vendor
Trainees
Public/Non-Profit Instructor
Participating Employers
Curriculum
4
What training does ETP fund?
ETP funds employer-customized, job-specific
skills training.
ETP does not fund Legally mandated training
(e.g. sexual harassment), company
orientation, CEU, general safety training.
These training topics, along with the range of
hours, and training delivery methods are
consolidated into the Curriculum.
5
Is the Employer ETP Eligible?
To be eligible for ETP funding, employers must be:
•
•
•
Subject to the Unemployment Insurance
contribution and the Employment Training Tax
One or More Full-Time Employees
Use a California Employer Account Number to
report wages
Special criteria may exist for alternatively funded
training programs, such as Alternative Fuel programs
6
Retraining Requirements
Employers training incumbent workers must:
• Face out-of-state competition or meet alternate
criteria under our Special Employment Training
framework.
Employers must also demonstrate
• the need for training
• that the training is supplemental and not
supplanting available funding
• their In-Kind Contribution and
• that they provide Secure Jobs (low turnover)
7
Individual Trainee Model
Contract Term Dates
(all training and the retention period
must be completed within these dates)
Trainee A
Topic A
(40 Hrs)
Topic B
(24 Hrs)
Post-Training
Retention Period
Funds
Earned
Total Training Hours = 64
(Within the Range of Hours)
Start of Training
Completion of
Training
Time
8
8
Will the trainee qualify?
Trainees must complete a minimum of 8 hours of
training within the contract term.
Training funds are EARNED
1. after the post-training employment retention
period (usually 90-days) and
2. earning in excess of a contract-specified
minimum wage.
9
2015 ETP Minimum Wages
Effective for contracts approved on or after January 1, 2015 and
before December 31, 2015.
Category
Standard ETP Minimum Wage
High Unemployment Area
(with Wage Waiver)
New Hire
Retrainee
(Minimum Wage After
Retention)
(Minimum Wage
After Retention)
$12.33 - $13.70
$15.07 - $16.44
$10.00* - $10.28
$11.30 - $12.33
SET Frontline Workers
$27.40
SET Frontline Workers (Critical
Proposal/Priority Industry)
$20.55
10
ETP Reimbursement
(the good part)
The cost of training is the cost of training.
ETP reimbursement
• based only upon the number of training hours
delivered and tracked
• the reimbursement rate
11
ETP Reimbursement
(the good part)
ETP uses a fixed-fee training reimbursement rate that
is inclusive of all administration and training costs.
ETP reimbursement rates are contract specific but
range from $15 - $26 per trainee, per training hour.
Funding = total training hours x reimbursement rate
12
ETP Reimbursement
Reimbursement rates are intended for training and administrative costs, and vary
with the type of training and delivery method.
Type of Trainee/Proposal
Class/Lab
Productive Lab
Videoconference
E-Learning
Retraining – Standard
$15
Retraining – Job Creation or New Hire
$20
Small Business – Standard,
New Hire- Veteran
$22
Priority Industry/Large Employer
(100 or more employees)
$18
Priority Industry Small Business Including
businesses served under an MEC or
entrepreneurial agreement.
$26
CBT Training $8 per hour
13
ETP Reimbursement
(the good part)
Contractors may request progress payments
during training. Progress payments are
UNEARNED funds.
Here is a standard progress payment schedule:
25% of Estimated Cost per Trainee [Enrollment]
50% of Cost of Training [Completion of Training]
25% of Cost of Training [Completion of Employment Retention
Period – ETP Funds Earned]
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Individual Trainee Model
Contract Term Dates
(all training and the retention period
must be completed within these dates)
Trainee A
Topic A
(40 Hrs)
Topic B
(24 Hrs)
Post-Training
Retention Period
Funds
Earned
Total Training Hours = 64
(Within the Range of Hours)
Start of Training
Completion of
Training
Time
15
15
ETP Related Costs
MEC may increase reimbursement for program
support costs, e.g. recruitment and marketing efforts
(up to 8% of the standard reimbursement). Higher
levels for hard-to-serve populations
ETP Contractors may hire an administrator and pay
them any amount up to 13% of the earned amount of
ETP funding; this is administrative fees.
ETP Applicants may hire a subcontractor to assist in
development; development costs may NOT be paid
for with ETP funds.
16
ETP Administration
(the catch)
Contractor is responsible for all contract administration
including record keeping and payroll documentation
- even if a third-party has been contracted to
provide these services.
ETP provides technical assistance throughout the
contract development process and during the
training delivery.
17
Funding and Program Updates
FY14/15
$86.4M contract value [$13.0M remaining]
AB118 $3M [$2.1M available]
RESPOND $2M [$0 Available]
FY 15/16
$90.5M available
AB118 $1M + any FY14/15 balance
18
Current Programs
Core Program Funding
Apprenticeship Pilot Program
Alternative Funding Programs
Alternative and Renewable Fuels and Vehicle Technology
Program (ARFVTP ala AB118)
Rapid Employment Strategies Pilot on Natural Disasters
(RESPOND – Drought ETP Core Funding)
Please see the ETP website (http://www.etp.ca.gov) for the latest
information regarding the availability of funds as this information
does change.
19
Funding Strategy 15/16
1. Phase in Funding by Category - Staggered
Release Dates
a) Release 15/16 Funds to MECs and Apprenticeship
Programs – April
b) Single Employers including Small Business – May
2. Project Cap Increase
3. Allocation based Funding
4. Project Prioritization
20
Funding Caps
Contractor Category
Historical
13/14 Caps
Current
14/15 Caps
Proposed
15/16 Caps
MECs
$1.25 M
$650 K
$950 K
MECs serving Small Business *
N/A
N/A
$1.2 M*
Single Employers
$850 K
$425 K
$750 K
Small Business
$50 K
$50 K
$50 K
Critical Proposal
$1.5 M
$750 K
$900 K
Apprenticeship – per sponsor
$450 K
$300 K
$450 K
Single Employer Job Creation
$700 K
N/A
N/A
Single Employer Job Creation &
Retraining
$1.5 M
N/A
N/A
Single Employer Multiple
Locations
$1.5 M
N/A
N/A
*MECs serving a “substantial” number of Small Businesses.
21
Proposed Funding Allocations
Allocation by Category
• Single Employer: $44,300,000
• MECs: $19,782,779
• Small Business: $6,500,000
• Critical Proposals: $7,840,000
• Apprenticeship/non-traditional: $12,078,779
Total: $90,501,558
22
Prioritization Strategies
Develop a “simple” way to work through
proposals in the 15/16 year for determination of
funding within each category:
• Does it meet the Panel’s Priority Industries?
• Does it meet the Governor’s Priorities?
• Does it target Special Populations
23
ETP Priority Industries
Manufacturing/Food Production
Biotechnology & Life Sciences
Information Technology Services
Multimedia/Entertainment
Goods Movement & Transportation Logistics
Agriculture
Allied Healthcare
Construction
Green / Clean Technologies
24
Prioritization Strategies
1. Develop around Governor/Labor and Workforce
Development Agency: Investing in California's
Workforce – Governors Budget
2. Drought/Water reduction, Clean/Green Industries
3. Critical Proposals/Business Expansion/Retention
4. High Speed Rail
5. Non Traditional Apprenticeship Programs
6. Training that leads to industry recognized credentials
7. Underserved/ Hard-to-Serve Populations
25
WIA Funded ETP Training
FY13/14 to Present
Total Agreements Approved: 1,010
$211,492,930
210,341 Trainees
Total WIB and WIA Funded Entities Approved:
21
$8,957,848
7,076 Trainees
26
City of Richmond Workforce
Investment Board
Contract Term:
Amount
Trained:
12/31/2012 – 12/30/2014
$183,000 (Earned $127,539)
35 At-Risk Youth/Offender and 5
Unemployed Veterans
Project Focus: RichmondBUILD Careers Academy
(Richmond Build) pre-apprenticeship training.
Contact: Sal Vaca (510)307-8006
27
Workforce Development Board of
Southeast Los Angeles County Inc.
Contract Term:
Amount
Trained:
9/23/2013 – 9/22/2015
$1,249,307 (Earned $499,896 to date)
1,100 (Enrolled 966 to date)
Project Focus: Training of incumbent workers of
manufacturing companies need manufacturing skills
and continuous improvement training.
Contract serves employers statewide though focused
on Southern California.
Contact: Larry Lee (562)485-5305
28
California Workforce Association
Contract Term:
Amount
Trained:
11/17/2014 – 11/16/2016
$649,295
545 (Enrolled 366 to date)
Project Focus: Training of incumbent workers of
manufacturing companies need manufacturing skills
and continuous improvement training.
Contract serves employers statewide though focused
on Northern and Central California.
Contact: Nick Loret de Mola (916)325-1610
29
CWA – WIB Benefits
Developing Regional Small Business Proposal, working
with WIBs in regions to engage small business
May be another way to utilize Layoff Aversion money
A conversation starter with businesses looking to grow
CWA handles the paperwork, audits, compliance and
payments
30
CWA – Employer Benefits
Have gone from initial discussions to the start of
training in as few as six days
Flexibility provided to employers to determine their
own training and their own trainers through CWA’s
contract
CWA handles the paperwork, solves capacity issues
businesses may have had in the past when dealing
with ETP
31
WIOA Implementation
WIOA-funded incumbent worker training flexibilities
creates new leveraging opportunities with ETP.
• Employer Services can be provided as part of an
overall training strategy
• Employed and Unemployed adults and
dislocated workers may receive training services
with wider range of criteria.
32
WIOA Implementation
WIOA-funded incumbent worker training flexibilities
creates new leveraging opportunities with ETP.
• 20 percent of combined total of adult and
dislocated worker allotments for incumbent
worker training
• Statewide activities funds and Rapid Response
funds may be used for statewide incumbent
worker training activities
33
WIOA Implementation
WIOA-funded incumbent worker training flexibilities
creates new leveraging opportunities with ETP.
• Cost sharing requirement flexibility – employer
match
• Industry flexibility for customized training for
incumbent workers based upon Local
• WIOA and ETP provide greater retention model
flexibility
34
Q&A
35
Contact Information
Stewart Knox, Executive Director
(916)327-5640
stewart.knox@etp.ca.gov
Robert Meyer
(916)327-4391
robert.meyer@etp.ca.gov
Nick Loret de Mola
(916)325-1610
nloretdemola@calworkforce.org
36
Appendix Materials
37
Basic Contract Relationships
ETP
Administrator
Trainers
Contractor
Internal Company Trainer
Private Training Vendor
Trainees
Public/Non-Profit Instructor
Participating Employers
Curriculum
38
Individual Trainee Model
Contract Term Dates
(all training and the retention period
must be completed within these dates)
Trainee A
Topic A
(40 Hrs)
Topic B
(24 Hrs)
Post-Training
Retention Period
Funds
Earned
Total Training Hours = 64
(Within the Range of Hours)
Start of Training
Completion of
Training
Time
39
39