Adult, Dislocated Worker, and Youth Activities

Requested Waiver:  Allow the use of individual training accounts (ITAs) for in-school youth, ages 14-21 years.

Statutory and/or regulatory requirements to be waived

20 CFR 681.550 allows ITAs funded by WIOA youth funds to be used by out-of-school youth.  The final rule did not expand the use to ITAs to in-school youth.  Instead, in-school youth wishing to access ITAs may only do so through the WIOA adult program.  Alabama would like to waive the requirement to only allow ITAs for out-of-school youth and expand this flexibility to in-school youth, ages 14-21 years.

The intent of using ITAs in the WIOA out-of-school youth program is to expand training options, increase program flexibility, and enhance customer choice.  If the State of Alabama is going to offer an adequate supply of workers to in-demand industry and occupations, it cannot include only those who are determined to be out-of-school as part of that supply. Alabama needs a waiver to support those with post-secondary educational goals past high school. In-school youth deserve the same opportunities for support as those being served as out-of-school youth, and it would be a disservice to those in-school customers to not support them past their high school diploma or its equivalent. Although it has been recommended to close the enrollment of those in-school youth who graduate and then re-enroll them as an out-of-school youth for the purpose of assisting them with an ITA after age 18, this poses a risk that the customer may no longer be eligible under the barrier requirements. It also prevents the State of Alabama from serving youth customers who graduate early (at 16 or 17) under an ITA, even if they are enrolled as an out-of-school youth once they earn their diploma.

Providing occupational training to in-school youth via an ITA will maximize the service delivery capacity of the State of Alabama’s WIOA Youth Program by allowing those youth that are focused on employment to have the same access as adults, dislocated workers, and out-of-school youth to the advantages of ITAs. ITAs for in-school youth will support several strategic goals in Alabama’s State Plan:

1. Provision of occupational skills training activities to youth;

2. Participation of youth in apprenticeship programs through the use of ITAs for the classroom learning component of apprenticeship; and

3. Contributing to the achievement of Alabama’s postsecondary attainment goal of adding 500,000 credential holders to the workforce and raising Alabama’s labor force to the national average by 2025, especially creating career pathways for in-school youth.

The State of Alabama is requesting a renewal of this waiver, which was initially approved at the end of Program Year (PY) 2018. In the eleven months since the waiver was approved, approximately 30 in-school youth have been served who would not have been eligible for an ITA without the waiver. Most of these youth graduated high school at the age of 17 and would not have been eligible to receive services or an ITA as an adult or out-of-school youth. All of these youth are still currently enrolled, and performance data will be available at the end of PY 2019. Alabama plans to provide technical assistance to Local Workforce Development Areas (LWDAs) during the upcoming year to expand the use of this waiver.

State or Local Statutory Barriers

There are no state or local statutory or regulatory barriers to implementing the proposed waiver. 

Strategic Goals of the Waiver and Expected Programmatic Outcomes

This waiver if granted would have a significant impact on all of the youth performance measures as well as increase the number of youth served in Alabama. We anticipate approximately 100 in-school youth will be served per year who would not be eligible for an ITA otherwise if this waiver is approved. The State overall and the majority of LWDAs have had difficulty meeting the Credential Attainment within a Year After Exit measure for youth. This waiver would assist the State and LWDAs in meeting this measure since in-school youth would be encouraged and provided the necessary tools through the program to complete their education and training, which would not only lead to valuable credentials for the youth but also increase the youth credential rate for the state. We anticipate that 50% of in-school youth enrolled in ITAs will earn a credential, which is 13 points higher than our requested 37% goal in PY 2020 for all youth. Additionally, the State and LWDAs would have increases in the number of Measurable Skills Gains (MSGs) since the in-youth would be involved in occupational, pre-apprenticeship, or apprenticeship training. We anticipate 45% of in-school youth enrolled in ITAs will obtain a MSG, which is 5.5 points higher than our requested goal of 39.5% in PY2020 for all youth. The State also expects Placed in Employment/Education Second Quarter (67.3%), Placed in Employment/Education Fourth Quarter (67.0), and Median Earnings Second Quarter ($2,742.30) to be impacted in a positive way.

In addition to these programmatic outcomes, Alabama expects to achieve the following goals:

• Improve the ability of local workforce development boards, youth program providers, and workforce and education lead agencies to respond quickly to the needs of in-school youth, ages 14-21 years;
• Increase the quality of learning opportunities;
• Increase employment and training opportunities;
• Improve coordination by reducing fragmentation of service delivery;
• Increase the opportunities for work-based learning;
• Improve customer choice and increase empowerment for youth, making them capable and responsible for making thoughtful choices about their career;
• Reduce unnecessary paperwork;
• Develop an emerging workforce with prepared candidates ready for work; and 
• Increase accountability.

Alignment with USDOL/ETA Policy Priorities

In the WIOA Final Rule, the intent of using ITAs in the WIOA out-of-school youth program is to expand training options, increase program flexibility, enhance customer choice, and reduce paperwork.  Alabama would like in-school youth, ages 14-21, to also have this option.  This waiver encourages this youth population to seriously look at career pathways in the in-demand occupations and empowers them to make their own decisions, thereby taking responsibility for their actions.  The waiver also assists in the preparation of an emerging workforce with candidates who are ready for work.

Description of Individuals, Groups, or Populations Impacted by the Waiver

WIOA in-school youth participants, ages 14-21 years, will benefit from this waiver.  By virtue of the WIOA program’s eligibility requirements, Alabama is directly addressing service delivery for disadvantaged populations and individuals with multiple barriers to employment.  This waiver will enable the youth population ages 14-21 years to seriously look at career pathways and in-demand occupations, increase training and employment opportunities for this population of youth, and empower youth to make their own decisions.  

Description of the Process to Monitor the Waiver Program and Collect Waiver Outcome Information

Upon USDOL's approval of the Four-Year Combined State Plan including this waiver request, the Alabama Workforce Development Board will communicate the waiver allowance to all its members and statewide partners.

The Workforce Development Division (WDD) of the Alabama Department of Commerce will revise applicable state level policy and ensure applicable operational guidance reflects the waiver allowance parameters. WDD will widely communicate these changes by posting revised policy on its public website. Additionally, WDD will communicate directly with all key stakeholders including the Local Workforce Development Areas (LWDAs) by way of email to announce the revised policy and other information important to convey regarding the waiver allowance. WDD will also establish new cost categories reflecting training attended by in-school youth, and project numbers assigned to these categories will be programmed into the state's workforce development financial record system to be able to account eligible youth participant costs.

WDD and the Alabama Department of Labor (ADOL), the current one-stop operator in each of the State’s seven LWDAs, will launch a new unified case and data management system in April 2020, which will be used to track and report youth participant activities. However, until the launch of the new system, WDD will track and be able to report youth participant activities through its Alaworks data management system. Alaworks receives data from the Alabama JobLink case management and data system, which is the system currently used by ADOL. WDD will request for ADOL to add new data entry options for local case workers to account for the number of occupational, pre-apprenticeship and apprenticeship trainings authorized; data collected will include participant eligibility status, demographic data including age, program start and end dates and reported outcomes.

Also, case managers in the one-stop career centers will collaborate with subrecipient youth services providers as well as pre-apprenticeship and apprenticeship program sponsors. Case managers will maintain copies of necessary forms in youth participant case files. Case managers and/or WDD staff may request additional information from program sponsors or employers as necessary.

In addition, WDD will coordinate to revise statewide ETPL operational procedures and field guidance to account for these in-school programs accordingly. This includes pre-apprenticeship and apprenticeship programs. 

Youth In-School ITAs will be delivered to youth primarily at the local level. If a local board decides to offer ITAs for eligible in-school youth, ages 14 - 21 at time of program enrollment, the board will amend their local ITA policy accordingly and may amend any other local policies impacted by this waiver as need be. As is the case with WIOA funded activities, the local board is responsible for oversight and monitoring. The local board will ensure local area policies pertaining to this waiver allowance and ITAs will be adhered to by all parties concerned. The local board is responsible to communicate relevant information to local stakeholders, Alabama Career Center System staff and partners, lead agencies and youth program providers. Local case workers will be directed to document the use of an ITA in each eligible youth's individual service strategy, which contains the goals and objectives for the youth's participation in WIOA programs and activities as well as the participant service plan.   Per existing policy and operational procedures, youth participant service activity must be recorded in the Alabama JobLink case management system (with data subsequently captured by AlaWorks) including ITA-related training, supportive services, follow-up and outcomes.

For any Youth In-School ITAs funded at the State level out of Governor’s 15% funds, the WDD State Program Integrity Section will monitor implementation of this waiver. Monitoring of the waiver may be conducted through a variety of approaches that may include routine desk reviews and on-site compliance monitoring to ensure the state is complying with all applicable regulations and requirements. 

The WDD State Reporting Section will coordinate with appropriate data and case management staff to ensure in-school data is accurately captured and reported in Youth WIOA performance measures.

At the end of each program year after the waiver allowance is implemented, the WDD State Reporting Section will evaluate impacts, if any, the availability of in-school youth ITAs have had on the state's workforce development system and report this data to the Alabama State Workforce Development Board.

Opportunity for Local Board and Public Comment on the Waiver Request

Workforce development stakeholders, including local boards, businesses, and organized labor organizations, will be notified of the State of Alabama’s proposed Four-Year Combined State Plan including this waiver request through an e-mail alert.  The e-mail alert will contain instructions on how to submit comments.  In addition, both the general public and stakeholders will have access to the waiver request on the Alabama WIOA website: https://wioa-alabama.org. The public comment period will be open for two months. 

Requested Waiver:  Waiver of the Requirement for Eligible Training Providers to Collect Performance Data for All Students in a Training Program

Statutory and/or regulatory requirements to be waived

Alabama requests the consideration of a waiver from the requirements in WIOA, Sections 116 (related to performance) and 122 (related to the Eligible Training Provider List), and at 20 Code of Federal Regulations (CFR) 677.230 and 20 CFR 680.400-680.530. In whole these regulations constitute a burdensome requirement for the collection and reporting of performance outcomes for all students, above and beyond WIOA participant students, participating in training programs listed on Alabama’s Eligible Training Provider List (ETPL).

Many training providers do not have existing staff to perform the data gathering processes required to submit program information and performance data and cannot justify hiring additional staff. The regulations and related performance measures requiring providers to include an “all students” cohort also interferes with The Federal Educational Rights and Privacy Act of 1974 (FERPA) laws. These issues are leading to Alabama having a less than robust list of training providers. Alabama currently has 711 programs on its ETPL compared to the 1,366 programs it had in PY 2014 before the implementation of WIOA and these regulations.

Alabama will continue to consider all student data when making a determination of eligibility of a provider and programs as made available to the public by training providers. However, it will only report on WIOA participants who receive training from an ETP in line with this waiver.

Alabama will also review requirements for eligibility determination each year. Reporting requirements will be altered each year incrementally over a time period of four years until the level of collection and reporting is in line with the requirements contained in Training and Employment Guidance Letter (TEGL) 8-19.

State or Local Statutory Barriers

There is no State or local statutory or regulatory barrier to implementing the proposed waiver.

Strategic Goals of the Waiver and Expected Programmatic Outcomes

Strategic goals and expected programmatic outcomes include:

• Removal of the most significant disincentive for schools and training providers to participate in the ETPL, in anticipation of maximizing the available marketplace of training curriculum.
• More numerous and varied training offerings for individuals utilizing Individual Training Accounts (ITAs) via the public workforce system.
• More training providers may lead to lower cost and more robust demand-driven training options.
• Greater utilization of the ETPL by individuals pursuing training in Alabama related to jobs that are in-demand by employers now and in the future. Enabling Alabama to provide training at the speed of business development.
• Stronger partnerships and relationships between training providers and the public workforce system.
• Enhanced ability of staff at local Alabama Career Centers to more effectively respond in meeting the needs of job seekers and employers alike.

Alignment with USDOL/ETA Policy Priorities

This waiver aligns with USDOL/ETA policy priorities such as:

• Efficiently and effectively connecting the current network of education and training strategies with an existing proven system of accountability;
• Improving job and career results by increasing the ability of new and established providers to meet reporting accountability standards; and
• Creating efficiencies by eliminating burdensome reporting requirements.

Description of Individuals, Groups, or Populations Impacted by the Waiver

Alabama citizens in need of additional training to obtain employment, the Alabama Department of Commerce/Workforce Development Division ETPL staff, the Alabama Career Center System and staff, subcontracted service providers, and especially the training provider staff will benefit from this waiver.

Description of the Process to Monitor the Waiver Program and Collect Waiver Outcome Information

The State of Alabama will monitor progress and ensure accountability for Federal funds in connection with these waivers by reviewing monthly expenditure, performance and other reports, through regular contact with the ETA Regional Office liaisons, and through its monitoring and performance accountability system.

Opportunity for Local Board and Public Comment on the Waiver Request

Workforce development stakeholders, including local boards, businesses, and organized labor organizations, will be notified of the State of Alabama’s proposed Four-Year Combined State Plan including this waiver request through an e-mail alert.  The e-mail alert will contain instructions on how to submit comments.  In addition, both the general public and stakeholders will have access to the waiver request on the Alabama WIOA website: https://wioa-alabama.org. The public comment period will be open for two months. 

Requested Waiver: Waivers associated with the requirement at WIOA Section 129(a)(4)(A) and 20 CFR 681.410 that states and local areas expend 75% of all Governor's reserve and local formula youth funds on out-of-school youth (OSY).

Statutory and/or regulatory requirements to be waived

WIOA Section 129(a) (4) and 20 CFR 681.410

1. A waiver of the requirement to expend 75% of funding on the OSY population. Alabama is requesting that this percentage be lowered to 50%.
2. A waiver of the requirement that local funding must meet the 75% minimum expenditure requirement. Alabama is requesting that this percentage be lowered to 50%.
3. A waiver of the requirement to expend 75% of Statewide activities funding on the OSY population. Alabama is requesting that this percentage be lowered to 50%.

The State of Alabama has been able to meet the required 75% expenditure rate for out-of-school youth since WIOA began. However, we are requesting to lower the out-of-school expenditure rate for out-of-school youth for the state as a whole, local areas, and statewide activities to 50% because the State sees the need to serve more in-school youth by partnering with programs for at-risk in-school youth such as Jobs for America’s Graduates (JAG). By investing additional funds for in-school youth at risk of dropping out of school, the State expects to lower the number of out-of-school youth who dropped out of school. 

The State of Alabama will continue to serve out-of-school youth by providing occupational skills training, work based learning, tutoring/study skills, education and workforce preparation activities, leadership development opportunities, supportive services, mentoring, guidance and counseling, financial literacy, entrepreneurial skills training, career counseling, transition to postsecondary education activities, and follow up services. The State of Alabama will also work with combined state plan partners to ensure out-of-school youth have access to the all the services they need using a no wrong door approach. By partnering with other agencies to serve out-of-school youth, the impact of reduced funding will be lessened, and the needs of this population will continue to be met.

State or Local Statutory Barriers

There is no State or local statutory or regulatory barrier to implementing the proposed waiver.

Alignment with USDOL/ETA Policy Priorities

The WIOA encourages strategies that connect education and training as well as supporting work-based learning and improving job and career results. This waiver request will increase the connection between education and training and training, provide work-based learning opportunities that include work experience and pre-apprenticeship, and increase access to workforce services for disadvantaged youth.

Strategic Goals of the Waiver and Expected Programmatic Outcomes

1. Align Youth Services with the strategic plan. An additional 200 in-school youth will be served each year as a result of this waiver.
2. The state better spends federal resources with more flexibility
3. The decreased dropout rate will result in a shrinking pool of potential out-of-school youth by 10% of the number of out-of-school dropouts during 2019.
4. Improved fiscal accountability relative to providers of services

Description of Individuals, Groups, or Populations Impacted by the Waiver

• Future Employers, 
• Alabama ln School and Out of School Youth populations; 
• Parents; 
• Out of School Youth providers; and In-School Youth Providers; 
• Alabama Career Center (One-Stop) System

Description of the Process to Monitor the Waiver Program and Collect Waiver Outcome Information

Annual WIOA on-site programmatic reviews will include an evaluation of how local waivers are being utilized and the success of achieving goals and outcomes. Youth service providers will also be responsible for assessing the use and effectiveness of waivers.

Opportunity for Local Board and Public Comment on the Waiver Request

Workforce development stakeholders, including local boards, businesses, and organized labor organizations, will be notified of the State of Alabama’s proposed Four-Year Combined State Plan including this waiver request through an e-mail alert.  The e-mail alert will contain instructions on how to submit comments.  In addition, both the general public and stakeholders will have access to the waiver request on the Alabama WIOA website: https://wioa-alabama.org. The public comment period will be open for two months.