Report 2011-111 All Recommendation Responses

Report 2011-111: Federal Workforce Investment Act: More Effective State Planning and Oversight Is Necessary to Better Help California's Job Seekers Find Employment (Release Date: March 2012)

Recommendation #1 To: Labor and Workforce Development Agency

To make certain that the state board meets the WIA requirement that a majority of the members are representatives of California businesses, the labor agency should continue working with the Governor's Office to identify and appoint a sufficient number of business representatives to the state board as soon as possible.

1-Year Agency Response

The labor agency stated that the governor appointed 12 new members to the state board on March 29, 2013, which increased the total membership to 56. The labor agency stated that 29 of the members, or 51.7 percent, are business representatives.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

6-Month Agency Response

The labor agency stated that the governor has made numerous appointments to the state board and that the governor was considering more appointments. Further, according to the state board's chief of operations, four more appointments are still needed to be made to achieve the 51 percent business majority. He also stated that the state board's executive director was working with the labor agency's secretary and the Governor's Office to make these appointments as soon as possible. (See 2013-406, p. 148)

California State Auditor's Assessment of 6-Month Status: Partially Implemented

Recommendation #2 To: Workforce Investment Board, California

To assist the governor in the development, oversight, and continuous improvement of California's workforce investment system, the state board should collaborate with state and local workforce investment partners to promptly develop and implement a strategic workforce plan as state law requires. The strategic plan should include, at a minimum, the following elements: clear roles and responsibilities pertaining to the state board, EDD, and other state and local workforce partners; clear definitions for terminology used in the strategic plan, such as quality services; performance measures that are specific to California for evaluating the efficiency and effectiveness of WIA-funded programs and activities; and procedures for approving the addition of data elements to EDD's Web-based system and for the exchange of data between EDD and the state board to facilitate the development and implementation of performance measures that are specific to California.

Annual Follow-Up Agency Response From October 2016

Since the September 2015 response, the State Board developed a new 5-year WIOA strategic workforce development plan, which was approved by the United States Department of Labor, Employment and Training Administration (DOLETA) on 6/24/16 (The plan can be downloaded from the State Board website: http://State Board.ca.gov/WIOA_Unified_Strategic_Workforce_Development%20_Plan.htm). This plan satisfied the state statutory requirements (SB 293) and WIOA state plan requirements identified by the CSA in its recommendation. Supporting documentation can be found on the State Board website at: http://cwdb.ca.gov/resources_reports.htm.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

Annual Follow-Up Agency Response From September 2015

Since the September 2014 response the CWIB has continued to implement its 5-year strategic workforce development plan, which was approved by the US Department of Labor (DOL) in 2013. (The plan can be downloaded from the CWIB website: http://cwdb.ca.gov/plans_policies_state_plans.htm).

WIOA requires states to develop a new state plan that must be submitted to DOL in March 2016. The new state plan will implement the additional state measures approved by the CWIB in 2013 as part of new WIOA performance reporting beginning July 1, 2016.

CWIB's full response explaining the reasons for the delay can be viewed at the following link: http://cwdb.ca.gov/res/docs/reports/Audit%20Report/BSA%20response%20to%20recommendation%20number%202%20on%209-22-15.pdf

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

Annual Follow-Up Agency Response From September 2014

Since the December 2013 response the CWIB has made significant progress in implementing its 5-year strategic workforce development plan which was approved by DOL ETA on 6/7/13. However, with the unexpected passage and enactment by President Obama on July 22, 2014 of long-delayed WIA replacement legislation - the Workforce Innovation and Opportunity Act (WIOA) - and the 2016 implementation of the new/expanded WIOA requirements, CWIB's full implementation of this recommendation will be delayed until July 2016 at the earliest.

The CWIB's full response explaining the reasons for this delay can be viewed at the following link:

http://www.cwib.ca.gov/res/docs/state_plans/BSA%20Revised%20response%20to%20Item%203%209-18-14.pdf

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

Annual Follow-Up Agency Response From December 2013

The CWIB submitted its 5-year strategic workforce development plan to the DOL ETA in April 2013 and received approval on 6/7/13. The CWIB established a subcommittee to develop performance and process measures specific to California that define quality services and approved 7 additional performance measures on 8/13/13. The CWIB is working with the EDD to enable the new case management system to capture and aggregate most of the performance data using the DOL ETA WIASRD fields. The CWIB via the State plan has also established definitions of quality workforce services through the creation of criteria for High Performing Local Boards. For the complete response please see the CWIB website: http://www.cwib.ca.gov/res/docs/state_plans/BSA%20Revised%20responses%2012-9-13.pdf

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

1-Year Agency Response

According to the state board, it is finalizing the integrated strategic workforce plan for the Workforce Investment Act and Wagner-Peyser Act programs for submission to the U.S. Department of Labor (Labor) on April 1, 2013. The state board expects the Labor to approve the plan by July 1, 2013. Furthermore, the state board stated that it was continuing to discuss with EDD the procedures for incorporating additional data elements.

California State Auditor's Assessment of 1-Year Status: Partially Implemented

6-Month Agency Response

According to the labor agency, it intends to submit a revised strategic workforce plan to Labor before April 1, 2013. Furthermore, the state board stated that it was continuing to discuss with EDD the procedures for incorporating additional data elements. It indicated that by early 2013, the state board and EDD will finalize the additional data elements that local one-stop staff will be required to complete and will finalize the specific reports the state board will need to evaluate the quality and effectiveness of the program. (See 2013-406, p. 148)

California State Auditor's Assessment of 6-Month Status: Partially Implemented

Recommendation #3 To: Workforce Investment Board, California

To assist the governor in the development, oversight, and continuous improvement of California's workforce investment system, the state board should continue to exercise its legal authority to review the local boards' plans to, among other things, assure the coordination and nonduplication of services to program participants.

Annual Follow-Up Agency Response From September 2014

As of April 3, 2014 all 49 local plans were approved and are all being implemented. CWIB has electronic versions of all 49 local plans that were reviewed and approved and the approval letters. However, these documents are not on the CWIB website and instead, the website contains links to each WIB's website where their local plan is located. The CWIB is following up with the WIBs to ensure they provide the correct link to their approved local plans on their website.

In July, President Obama signed into law the WIA replacement legislation - The Workforce Innovation and Opportunities Act (WIOA). WIOA requires states to submit a 4 year state plan in March 2016, which will result in WIBs having to submit new local plans to the CWIB sometime in 2016. The CWIB will continue to exercise its legal authority under WIOA to review the local plans to, among other things, assure the coordination and nonduplication of services to program participants.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

Annual Follow-Up Agency Response From December 2013

Since November, two additional LWIBs have submitted additional information required to complete the local plan approval. To date, (December 9, 2013), 47 local plans have been approved. The State Board is working with the remaining two local WIBS to improve their performance outcomes in order to finalize approval of all plan criteria. These boards will submit interim performance measures for the period ending December 31, 2013, and local plan approval will be granted to those that have achieved satisfactory performance improvements. Should performance not be sufficiently improved by December 31, 2013, the Stated Board will continue to work with these Board and evaluate progress on a quarterly basis until plan approval granted.

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

Annual Follow-Up Agency Response From September 2013

On May 22, 2013 the CWIB issued policy directive WSD12-14 (http://www.edd.ca.gov/Jobs_and_Training/pubs/wsd12-14.pdf) that outlined the required contents of the local plans, the high performance certification standards, and the state board's new role as the reviewer and approver/certifier of these plans and related quality performance to ensure that the local plans are consistent with the CWIB's vision and goals for California's workforce investment system. The local plans were submitted to the CWIB on July 1, 2013, and the CWIB is currently in the process reviewing and rating the plans. The CWIB will approve the plans, certify local boards and certify the high-performing local boards by October 1, 2013. As required by state law (SB 698)the CWIB will certify local boards and high-performing local boards every two years. The CWIB will continue to issue policy directives outlining the continuous improvement criteria and local planning requirements for these future reviews.

California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented

According to the state board, it approved the plans for 45 of the 49 local workforce investment boards (boards) in October 2013. As of November 26, 2013, the state board also stated that plans for the four remaining boards were "conditional and currently working toward approval." The state board did not provide a time line for approving the last four plans.

1-Year Agency Response

The state board stated that it is taking the lead role in establishing the content of the local plans and in communicating its expectations as part of the review and approval process to ensure that local plans are consistent with the state board's vision and goals for California's workforce investment system. It also stated that is currently working with EDD to issue a very detailed and specific directive outlining the required contents of the local plans, the high performance certification standards, and the state board's new role as the reviewer and approver/certifier of these plans and related quality performance. According to the state board, the local plans are due no later than July 1, 2013, and it intends to review and approve the plans and certify the local boards by October 1, 2013.

California State Auditor's Assessment of 1-Year Status: Partially Implemented

6-Month Agency Response

The state board stated that it is taking the lead role in establishing the content of the local plans and in communicating its expectations as part of the review and approval process to ensure that local plans are consistent with the state board's vision and goals for California's workforce investment system. It also stated that once Labor approves the integrated strategic workforce development plan, the state board will w0rk with EDD to issue a directive outlining the required contents of the local plans as well as the state board's new role as the reviewer and approver of these plans. (See 2013-406, p. 148)

California State Auditor's Assessment of 6-Month Status: Partially Implemented

Recommendation #4 To: Employment Development Department

To assist the state board and other workforce investment partners in the development and implementation of state-specific performance measures, EDD should ensure that it works with the state board to develop procedures for approving the addition of data elements to its Web-based system and for the exchange of data between EDD and the state board.

Annual Follow-Up Agency Response From October 2017

As stated in our prior response, EDD partnered with the California Workforce Development Board (State Board) to implement the State Workforce and Education Alignment Project (SWEAP) initiative, which captured the remaining data needed for the State-specific measures. In addition, this initiative has the secondary benefit of helping implement the provisions of Assembly Bill 2148, which requires EDD to aggregate workforce performance data from the California Job Opening Browse SystemSM (CalJOBSSM) and provide it to the State Board to assist them in producing the requisite workforce dashboard report.

As a result of the work associated with the SWEAP initiative and Assembly Bill 2148, EDD was able to gain a better understanding of the data needed for State-specific measures and implement those measures into CalJOBSSM. In May 2016, using this information in CalJOBSSM, EDD provided the State Board all of the necessary data related to the State-specific performance measures. This data included credential and degree attainment, training completion, and participant earnings from workforce education and training programs.

The California 2016 Budget Act allocated funding to the Labor and Workforce Development Agency to develop a data-sharing pilot project to build a comprehensive data warehouse on California's workforce and education programs. The data would provide policymakers, the public, and program administrators with actionable information about which workforce and education programs best improve an individual's ability to get a job. This project, led by the State Board, was created and is called Cross-System Analytics and Assessment for Learning and Skills Attainment (CAAL-Skills). CAAL-Skills has provided the framework for EDD and the State Board to finalize the data elements to be shared and systematize the procedures for the exchange of data between EDD and the State Board.

California State Auditor's Assessment of Annual Follow-Up Status: Resolved

Annual Follow-Up Agency Response From September 2016

As stated in our prior response, EDD partnered with the California Workforce Development Board (State Board) to implement the State Workforce and Education Alignment Project (SWEAP) initiative which captured the remaining data needed for the State-specific measures. In addition, this initiative has the secondary benefit of helping implement the provisions of Assembly Bill 2148, which requires EDD to aggregate workforce performance data from the California Job Opening Browse System (CalJOBS(SM)) and provide it to the State Board to assist them in producing the requisite workforce dashboard report.

As a result of the work associated with the SWEAP initiative and Assembly Bill 2148, EDD was able to gain a better understanding of the data needed for State-specific measures and implement those measures into CalJOBS(SM). Using this information in CalJOBS(SM), in May 2016, EDD was able to provide the State Board all of the necessary data related to the State-specific performance measures. These data included credential and degree attainment, training completion, and participant earnings from workforce education and training programs.

As of August 2016, the workload associated with the transitional activities required to successfully implement the final regulations of the Federal Workforce Innovation and Opportunity Act is well underway. Once all Federal Workforce Innovation and Opportunity Act changes to CalJOBS(SM) have been implemented, EDD will then work with the State Board to develop, document, and finalize procedures for approving the addition of data elements to CalJOBS(SM) and exchanging data with the State Board.

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

Annual Follow-Up Agency Response From September 2015

The EDD launched an upgrade to the California Job Opening Browse System (CalJOBSSM), which included the Workforce Investment Act (WIA) module on May 5, 2014. CalJOBSSM is currently capable of collecting all of the required federal data and the majority of the data needed for the previously approved State-specific measures.

Additionally, EDD is partnering with the California Workforce Investment Board (State Board) to implement the State Workforce and Education Alignment Project initiative which will capture the remaining data needed for the State-specific measures. The objective of this initiative is the development of an annual workforce metrics dashboard to measure the State's human capital investments in workforce development. The initiative will implement new State-specific performance measures.

This initiative has the secondary purpose of implementing the provisions of Assembly Bill (AB) 2148, which was signed into law September 2014. This bill requires EDD to aggregate workforce development data provided by participating workforce program partners, including performance measures, and report this data to the State Board to assist them in producing an annual workforce metrics dashboard report. This annual report will include data on credential attainment, training completion, degree attainment, and participant earnings from workforce education and training programs. We have attached the AB 2148 text (see Attachment).

We plan to modify CalJOBSSM to include the collection of the workforce performance data required by AB 2148. However, before this can be accomplished, DOL needs to provide states with the Workforce Innovation and Opportunity Act performance requirements which it anticipates will occur in Program Year 2015/2016. After DOL provides the Workforce Innovation and Opportunity Act performance data and the CalJOBSSM program modifications are made, we will then work with the State Board to develop the procedures specified in this recommendation.

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

Annual Follow-Up Agency Response From October 2014

This recommendation has not been fully implemented. The EDD launched the upgraded California Job Opening Browse System (CalJOBSSM) which included the new Workforce Investment Act (WIA) module on May 5, 2014. CalJOBSSM is now capable of collecting all of the data elements identified in Training and Employment Guidance Letter 4-13 (Enclosure A) by the United States Department of Labor and the majority of the data needed for the previously approved State-specific measures. Regrettably, work on the State-specific performance measures noted in our last response, and the attendant data collection, were deferred in order to get the upgraded CalJOBSSM launched before the end of the fiscal year. On July 22, 2014, the WIA was superseded by enactment of the Workforce Innovation and Opportunity Act (Enclosure B). Among the many changes this legislation brings, it "aligns the performance indicators for core programs, and adds new ones related to services to employers and postsecondary credential attainment. Performance goals must reflect economic conditions and participant characteristics."

Fundamentally, this means that the State board and EDD will be working with the United States Department of Labor over the next 21 months to develop and plan for the implementation of these new performance indicators and goals by July 1, 2016, including making the necessary changes in CalJOBSSM. Unfortunately, this will further delay work on these "state-specific performance measures," as these new federally mandated performance measures have to remain the Department's priority.

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

Annual Follow-Up Agency Response From October 2013

This recommendation has not yet been fully implemented. On September 20, 2013 the Department of Labor (DOL) approved of the State Workforce Investment Act (WIA) Strategic Plan PY 2013-2017 (Enclosure A). On August 9, 2013 the California Workforce Investment Board (State Board) approved State-specific performance measures (Enclosure B). On August 28, 2013, DOL released the Training and Employment Guidance Letter (TEGL) 4-13 (Enclosure C) requiring additional data elements for WIA funds. Based on the new data elements required by DOL, the State Board and EDD are working to determine if additional changes will need to be made to California Workforce Services Network (CWSN) to implement the State-specific performance measures.

The EDD plans to launch the WIA module of CWSN in Spring 2014. At that time, CWSN will include the additional required data elements that were released in TEGL 4-13 by the DOL. Additional elements required to meet the State-specific performance measures will be developed and procedures will be in place to start collecting and reporting on the State-specific measure for Program Year 2014-2015.

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

1-Year Agency Response

According to the EDD, it launched its new Web-based system on March 11, 2013. EDD also stated that once the integrated strategic workforce development plan is submitted to Labor, EDD and state board representatives plan to conduct formal discussions to develop procedures for approving additional data elements in the new Web-based system.

California State Auditor's Assessment of 1-Year Status: Partially Implemented

6-Month Agency Response

According to the EDD, it convened preliminary meetings with the state board to ensure that procedures are put in place for considering and approving the collection of additional data elements. EDD also stated that after Labor approves the integrated strategic workforce development plan, EDD will develop and disseminate new procedures in collaboration with the state board and its staff that will allow for the identification of possible new state performance measures and the sharing of additional information with the state board and other stakeholders. (See 2013-406, p. 149)

California State Auditor's Assessment of 6-Month Status: Pending

Recommendation #5 To: Employment Development Department

To comply with WIA requirements and eliminate the State's risk of losing funds, EDD should ensure that it awards rapid-response funding for additional assistance only to local boards or community-based organizations that demonstrate that their local areas experience natural disasters, mass layoffs, plant closings, or other dislocation events when such events substantially increase the number of unemployed individuals.

Annual Follow-Up Agency Response From October 2013

The EDD and the State Board have completed work on modifying the policy for the awarding of WIA Rapid Response funds for Additional Assistance Projects. Specifically, the State revised the policy to define other events that qualify as those events that have precipitated substantial increases in the number of unemployed individuals. The policy revision was presented in Workforce Services Directive WSD 13-2 (Enclosure D), Dislocated Worker Additional Assistance Projects, which was released on August 14, 2013. Workforce Services Directive WIAD05-18, Dislocated Worker 25 Percent Funding Policy, is also being revised pursuant to the new definition regarding other events which precipitate substantial increases in the number of unemployed individuals.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

EDD has now defined "other events" broadly and in a way that appears to be consistent with the intent of federal law. Although federal regulations do not define "other events," EDD has given that phrase a meaning that seems to further the intent of the law.

1-Year Agency Response

EDD stated that it worked with the state board to revise its policy for awarding additional assistance grants to local workforce investment boards. EDD also stated that the new policy clarifies the operative federal definition of what constitutes "other events" that precipitate substantial increases in the number of unemployed individuals. Further, EDD stated that the state board approved the revised policy at its February 13, 2013 board meeting and it also consulted with Labor to ensure the policy complies with WIA statutes and regulations. Finally, EDD stated that the revised policy will be included in a new WIA directive that will reference all of the WIA 25 percent additional assistance guidelines that it currently uses.

California State Auditor's Assessment of 1-Year Status: Partially Implemented

6-Month Agency Response

EDD stated that it convened preliminary meetings with the state board to ensure that state policy is consistent with federal rules and to refine its application procedures to ensure that it awards additional assistance funding only to local boards or community-based organizations for local areas that experience natural disasters, mass layoffs, plant closings, or other dislocation events when such events substantially increase the number of unemployed individuals. EDD also stated that work on the policy has been delayed pending approval by Labor of the integrated strategic workforce development plan. (See 2013-406, p. 149)

California State Auditor's Assessment of 6-Month Status: Pending

Recommendation #6 To: Employment Development Department

To ensure that the State maximizes federal funding opportunities related to workforce investment, EDD should update its written policy to include, at a minimum, the following procedures: the methods it will use to identify federal grant opportunities, the factors it will consider in its decision to pursue or forego applying for these grants, and the process by which it will document its final decision to either pursue or forego the grant opportunity.

6-Month Agency Response

EDD established grant recommendation procedures to ensure it sufficiently documents the steps taken, factors considered, and decisions made regarding grant opportunities (See 2013-406, p. 149)

California State Auditor's Assessment of 6-Month Status: Fully Implemented

Recommendation #7 To: Employment Development Department

To ensure that the State maximizes federal funding opportunities related to workforce investment, EDD should implement the updated policy as soon as practicable.

6-Month Agency Response

EDD indicated that its grant recommendation procedures have been implemented since at least April 2012. (See 2013-406, p. 149)

California State Auditor's Assessment of 6-Month Status: Fully Implemented

Recommendation for Legislative Action

To ensure that the state board promptly develops a strategic workforce plan, the Legislature should consider amending the pertinent statutes to establish a due date for the plan.

Description of Legislative Action

Senate Bill 118 (Chapter 562, Statutes of 2013) requires, among other provisions, the state board to incorporate specific principles into the State's strategic plan that align the education and workforce investment systems of the State to the needs of the 21st century economy and promotes a well-educated and highly skilled workforce to meet the future workforce needs.

California State Auditor's Assessment of 1-Year Status: Legislation Enacted

Description of Legislative Action

Legislation has not been introduced to address this recommendation.

California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken

Description of Legislative Action

N/A

California State Auditor's Assessment of Annual Follow-Up Status: Unknown

Recommendation for Legislative Action

To comply with WIA requirements for state boards, the Legislature should consider amending the pertinent statutes to clarify the roles and responsibilities of the state board and EDD.

Description of Legislative Action

Legislation has not been introduced to address this recommendation.

California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken

Description of Legislative Action

Legislation has not been introduced to address this recommendation.

California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken

Description of Legislative Action

N/A

California State Auditor's Assessment of Annual Follow-Up Status: Unknown

All Recommendations in 2011-111

Agency responses received after June 2013 are posted verbatim.