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a. 1. B. Describe the process used for designating local areas, including procedures for determining whether the local area met the criteria for “performed successfully” and “sustained fiscal integrity” in accordance with 106(b)(2) and (3) of WIOA. Describe the process used for identifying regions and planning regions under section 106(a) of WIOA. This must include a description of how the State consulted with the local boards and chief elected officials in identifying the regions

Current Narrative:

As outlined in Workforce Services Directive WSD18-14, the Governor is required to approve a request for subsequent designation from a Local Area, if the Local Area performed successfully, sustained fiscal integrity, and engaged in the regional planning process. The State provided definitions of the required criteria and established an application process for Local Areas to obtain subsequent designation for Program Years (PY) 2019-20 and PY 2020-21.

Definitions

Performed Successfully

For the purposes of subsequent designation for PY 2019-20 and PY 2020-21, performed successfully is defined as a Local Area that has successfully negotiated PY 2018-19 and PY 2019-20 performance goals within their designated RPU.

For any subsequent designation and recertification request received from a Local Area after PY 2020-21, that Local Area's WIOA Title I Adult, Dislocated Worker, and Youth performance goals must be successfully negotiated within their RPU and must meet or exceed negotiated performance for the two previous program years.

Sustained Fiscal Integrity

The Local Area has not been found in violation of one or more of the following during PY 2016-17 or PY 2017-18: Issues of fiscal integrity or misexpended funds due to the willful disregard of or failure to comply with any WIOA requirement, such as failure to grant priority of service or verify participant eligibility, as identified in final determination of significant finding(s) from audits, evaluations, or other reviews conducted by state or local governmental agencies or the DOL. Gross Negligence, which is defined as a conscious and voluntary disregard for the need to use reasonable care, which is likely to cause foreseeable grave injury or harm to persons, property, or both.

Engaged in Regional Planning

For the purposes of subsequent designation for PY 2019-20 and PY 2020-21, engaged in regional planning is defined as participating in, and having contributed to, regional planning and regional plan implementation (for example, participating in regional planning meetings, leading regional plan implementation efforts, and review and approval of regional plan and modifications by Local Boards and local Chief Elected Officials), and participating in regional performance negotiations.

Application Process

Local Areas had to complete and submit one of the following two applications to the California Workforce Development Board:

  • Existing Local Area - Application for Subsequent Local Area Designation and Local Board Certification Program Year 2019-21
  • Modified Local Areas for Local Areas that are requesting Local Area modification as part of their subsequent designation, complete “Modified Local Area - Application for Subsequent Local Area Designation and Local Board Certification Program Year 2019-21

The CWDB, in coordination with the Employment Development Department (EDD), verified the information provided and determined whether to recommend approval, conditional approval, or denial of the subsequent application to the Secretary of Labor and Workforce Development.

As part of WIOA implementation and development of the 2016-2019 California Unified Strategic Workforce Development Plan (State Plan), the CWDB issued Workforce Services Directive WSD15-17 which outlined the current 14 RPUs.

Local Board placement in the 14 RPUs was based primarily on the location of WIOA client populations and the way these populations fit into regional economies as defined by economic data including commute patterns, industry composition, labor markets, geographic location, and transportation infrastructure. Boundaries of the RPUs were largely set by giving weight to the foregoing economic data and by starting with regional economic market boundaries drawn by the EDD Labor Market Information Division (LMID). These regional economic market boundaries were then modified to take into account the number of Local Areas in a region, the size of the area covered, and the boundaries and planning regions of existing regional workforce consortia.

As part of the development of the updated State Plan, the CWDB is revisiting the existing RPU framework to identify if adjustments should be made based on economic or demographic changes that have occurred in the period since the 14 RPUs were first identified. To assist in this process, the EDD-LMID conducted an updated analysis that incorporates the most recent commute pattern data from the U.S. Census Bureau’s American Community Survey and the most recent industry employment data from EDD-LMID.

On the basis of this analysis, the CWDB released Workforce Services Draft Directive WSDD-209 on February 13, 2020, proposing potential changes. Local Boards were encouraged to provide input and feedback through the public comment process. In order to preserve the statutory intent that RPUs represent existing economic market regions, the language of the draft directive required that any requested modifications other than those outlined in the draft directive itself bear the burden of presenting a compelling, data-based rationale for the proposed change.

Unfortunately, the public comment period coincided with California’s rapid onset of the COVID-19 global health pandemic and Local Boards had to redirect their time and resources to providing critical services to their communities. In alignment with WIOA Section 101, CWDB wants to ensure that ample time is provided for local input and consultation on the proposed RPU updates and therefore will be continuing discussions with Local Boards over the next few months prior to finalizing any changes or moves.