Adult, Dislocated Worker, and Youth Activities

The subsequent designation process for local workforce development areas is data-driven and the State issued state policy on Subsequent and New Discretionary Designation of Local Workforce Development Areas under the Workforce Innovation and Opportunity Act (WIOA) that established the process for subsequent designation of local workforce development areas, and the process for local areas wishing to receive new discretionary designation should they meet the applicable criteria.  Activities reviewed for subsequent designation are analysis of the required workforce activities under the WIOA and criteria for a local workforce development area, and assessment of the current local workforce investment area as previously designated under the WIOA and surrounding areas with regards to regionalization. 

Pursuant to Section 106(b) of the WIOA, the Governor shall designate local workforce development areas within the state through consultation with the State Board, Chief Elected Officials (CEOs) and local boards, and after consideration of comments received during a public comment process.  After the policy comment and concurrence period closed, the State held consultation via webinar with CEOs and local board members, and an on-site meeting/conference call option was available with the State Board. 

 The Michigan Works! Agencies (MWAs) were required to submit a request for subsequent designation.  Subsequent designation will occur every four years, consistent with submission of the State’s Unified Plan and the MWAs’ four-year Local and Regional Plans. 

The Governor approves the request if, for the two (2) program years preceding the subsequent designation determination, the following criteria are met: 

• Performed successfully, meaning the local area met or exceeded all levels of performance and the local area has not failed any individual measure for the last two (2) consecutive program years prior to the enactment of the WIOA;
   

• Sustained fiscal integrity, meaning that the Secretary has not made a formal determination that either the grant recipient or the administrative entity of the area mis-expended funds due to willful disregard of the requirements of the provision involved, gross negligence, or failure to comply for the two (2) years preceding the determination, and
• Met requirements under the WIOA Section 106(c)(1).
   
  For the purposes of local area subsequent designation under the WIOA, the following definitions apply:
   
  Performed Successfully.  For the purposes of subsequent designation, the term “performed successfully” means that the local area met or exceeded all of the negotiated levels of performance and the local area has not failed any individual performance measure for the previous two consecutive years prior to their request for subsequent designation.  The U.S. Department of Labor (USDOL) interprets this to mean that a local area satisfies the “performed successfully” criterion providing that the local area did not fail the same performance measure twice within the two-year period in question.  The terms “met or exceeded” and “failure” are defined at the time performance levels are negotiated.  Specifically:
   

• Local areas must meet or exceed 50 percent of their negotiated level of performance for each performance indicator; and
   
• Local areas must attain a minimum of 90 percent achievement rate for the same indicator across all Title I and Title III programs (Adult, Dislocated Worker, Youth, and Wagner-Peyser), or across all individual program measures.
   
  For purposes of subsequent designation determinations for Program Years (PYs) 2019 thru 2023, the following performance indicators apply:
   

• Employment Rate – 2^nd Quarter after Exit,
• Employment Rate – 4^th Quarter after Exit,
• Median Earnings – 2^nd Quarter after Exit, and
• Credential Attainment.
   
  The Effectiveness in Serving Employers performance indicator will not be used for the purposes of determining subsequent designation for PYs 2019 thru 2023, as the USDOL and the U.S. Department of Education are still evaluating the various states’ experiences and approaches prior to identifying a standard indicator.  Once a standard indicator for Effectiveness in Serving Employers is determined by the Departments, local areas will be required to meet or exceed this indicator as well.
   
  Final performance is based on the WIOA Annual Report submitted to the USDOL for the most recent program year at the time of the local area’s request for subsequent designation.
   
  Sustained Fiscal Integrity.  For the purposes of determining subsequent designation, the term “sustained fiscal integrity” means that there has not been a formal determination by the Secretary that either the grant recipient or the administrative entity of the area mis-expended funds due to willful disregard of the requirements of the provision involved, gross negligence, or failure to comply with accepted standards of administration for the two years preceding the determination.
   
  For the purposes of subsequent designation, the term “met requirements under the WIOA 106(c)(1)” means that the Regional Plan has been submitted and approved by the Department of Labor Economic Opportunity-Workforce Development (LEO-WD).
   
  Requests for subsequent designation were initiated by the MWAs completing a WIOA Local Workforce Development Area Subsequent Designation Application (Attachment A to the policy), which was signed by the CEO, and submitted electronically to LEO-WD.  Applications were submitted to the State by October 1, 2019. 
  The MWAs that were originally approved under initial designation criteria, may request and be considered at any time for approval under new discretionary designation criteria if the local area met the following requirements pursuant to Section 106(b)(1)(B) of the WIOA: 

• Is consistent with labor market areas,
   
• Is consistent with regional economic development areas,

• Has available the Federal and non-Federal resources necessary to effectively administer WIOA activities,

• Has appropriate education and training providers,

• Is consistent with the geographical boundaries of the WIOA planning regions (see Attachment B), and

• Meets the aforementioned criteria for subsequent designation.
   
  At any point during the discretionary designation process, the CEO could request technical assistance from LEO-WD to support the process.  However, there were no local areas that requested new discretionary designation. 
   
  Regardless of the method used to obtain designation (subsequent or new discretionary designation), the local areas shall have one official CEO and one official Workforce Development Board (WDB), consistent with the WIOA.  However, local areas may have additional advisory boards that advise the official CEO board and the official WDB.  Furthermore, additional board members representing the region may be appointed as official members of the WDB, consistent with federal and state policy.
   

The approach of our 10 WIOA planning regions ensures that the State of Michigan is investing in the success of our state’s citizens to improve equity and access to workforce programming resulting in greater opportunities for economic opportunities and mobility.  As federal dollars become scarcer, this helps to ensure that available resources have the greatest impact possible for both employers and residents.