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WIOA CommitteeGovernor’s Workforce Development Council

February 12, 2015

Agenda

• Regional Planning• Industry Sectors/Emerging Industries• Completing the board structure for the full

council meeting in March

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WIOA &Workforce Development Areas

Strategic Approach to Enhancing Regional Planning for

Workforce and Economic Development

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Workforce Development Regions under WIOAChapter 2, sec. 106(a)(1)-(2)

(a)(1) IDENTIFICATION.—Before the second full program year after the date of enactment of this Act, in order for a State to receive an allotment under section 127(b) or 132(b) and as part of the process for developing the State plan, a State shall identify regions in the State after consultation with the local boards and chief elected officials in the local areas and consistent with the considerations described in subsection (b)(1)(B). (a)(2) TYPES OF REGIONS.—For purposes of this Act, the State shall identify—which regions are comprised of 1 local area that is aligned with the region; which regions are comprised of 2 or more local areas that are (collectively) aligned with the region (referred to as planning regions, consistent with section 3); and which, of the regions described in subparagraph (B), are interstate areas contained within 2 or more States, and consist of labor market areas, economic development areas, or other appropriate contiguous subareas of those States.

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Workforce Development Regions ConsiderationsChapter 2, sec. 106(b)(1)(B)

CONSIDERATIONS.—The Governor shall designate local areas (except for those local areas described in paragraphs (2) and (3)) based on considerations consisting of the extent to which the areas—

1.are consistent with labor market areas in the State;

2.are consistent with regional economic development areas in the State; and

3.have available the Federal and non-Federal resources necessary to effectively administer activities under subtitle B and other applicable provisions of this Act, including whether the areas have the appropriate education and training providers, such as institutions of higher education and area career and technical education schools.

Work Group Composition and Roles

Logistical Planning & Oversight WDD Directors, GWDC WIOA Committee, MWCA RepresentativesROLE: Responsible for establishing the subcommittees, setting scope, approving work plans and monitoring progress toward implementation.

One-Stop Operations WSCO Staff, MWCA Reps, Core Partner Field Managers

Policy and Procedures

One-Stop System Design

Finance and Budgeting

Technology Applications

Program Implementation

System Directors and SME from Required PartnersROLE: Responsible for coordinating the development/deployment of system-wide integration/alignment strategies for WIOA

ROLE: Responsible for implementing the certification requirements, including MOUs for full and affiliate WFCs and stand-alone partner offices.

ROLE: Responsible for interpreting and updating policies and procedures related to data and other integrity management issues.

ROLE: Responsible for establishing new fiscal requirements and controls to ensure the integrity of the financial system.

ROLE: Responsible for making recommendations on technology investments to achieve desired use to support outreach and service impact.

ROLE: Responsible for ensuring the system meets the operation demands for implementing the program on given dates.

PPM, MWCA Reps and Other Required Core Partner SMEs

AFS, Titles I-IV Fiscal Managers and Other SMEs

DEED’s IT Gov. Reps, MWCC and other Core Partner Leadership

Program Directors, MWCA Reps and Other SMEs

July2016

April2016

Jan2016

Oct2015

July2015

April2015

Unified Plan Implemented

WIOA Local Plans

Implemented

WIOA Regional Plans Implemented

Regional Plan Guidance?

Unified Plan

Guidance

Unified Plan Due 3-2-16

WIA 2015Local Plan

WIOA Regional Plans

Developed

Local Plan Guidance?

WIOA Local Plan

Proposal

WIOA Local Plans

Developed

Aligning the timing of required WIOA Plans

Unified Plan Developed

Regional Plans will feed local and unified plans

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WIOA &Industries and Services

Using Labor Market Information to determine industry representation.

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Labor Market Areas – Metro & Micro Statistical Areas

Metropolitan Statistical Areas Micropolitan Statistical Areas

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Other Criteria– EDRs and Workforce Development Resources

Economic Development Regions Workforce Service Areas Resources

Industry Employment Statistics, 2013Statewide

- Highest number of jobs

Industry Title Number of Jobs Avg. Annual Wages

Health Care & Social Assistance 446,744.00 $45,500

Manufacturing 307,237.00 $59,540

Retail Trade 286,850.00 $25,896

Educational Services 218,558.00 $44,564

Accommodation & Food Services 216,895.00 $16,016

Source: DEED Quarterly Census of Employment & Wages (QCEW) program

Industry Employment Statistics, 2013Statewide

- Lowest number of jobs

Industry Title Number of Jobs Avg. Annual WagesArts, Entertainment &

Recreation 49,008 $29,640

Real Estate, Rental & Leasing 39,756 $53,560

Agriculture , Forestry 20,591 $32,084

Utilities 14,403 $93,600

Mining 6,223 $84,344

Source: DEED Quarterly Census of Employment & Wages (QCEW) program

Concentration of Industries within Regions

Industries with high Location Quotient (LQ) in more than one region

Accommodation

Amusement, Gambling & Recreation Industries

Animal Production & Aquaculture

Crop Production

Forestry & Logging

Manufacturing

Support Activities for Agriculture & Forestry

Source: DEED Quarterly Census of Employment & Wages (QCEW) program

Short-term Projections• The State of Minnesota is projected to gain nearly

50,000 net new jobs in the next year, a 1.6 percent growth rate.

• Fastest growing industry: Construction• Actual job growth (net new jobs created): Health

Care & Social Assistance, Manufacturing, Accommodation and Food Services, Public Administration.

Long-term Projections • Over the next decade, Minnesota’s economy is

expected to add about 205,000 jobs, a 7.0 percent growth rate.

• Fastest growing industries: Construction and Health Care & Social Assistance, which are expected to expand about 25 percent.

• Other growing industries: Professional & Technical Services, Administrative Support & Waste Management Services, and Real Estate & Rental & Leasing.

Emerging Industry Sectors• From 2011 to 2013, the largest growing industry sector was

Health Care and Social Assistance. • Consumer confidence and spending increased, so did

employment growth in Leisure and Hospitality, Retail Trade and Construction. Also Professional, Scientific and Technical Services.

• Mining has seen dramatic employment gains. • Some job declines are expected in Utilities but the industry

has an older, soon-to-be-retiring workforce. Incomes are relatively high.

Incomes and the Cost of Living

• Income is another consideration in industry representation.

• What is the cost of living and working in Minnesota for individual workers and families?

• DEED’s Cost of Living Toolhttp://mn.gov/deed/data/data-tools/col/index.jsp

Brookings Report on Advanced Industries

“Private and public sector leaders – particularly those working at the state and regional level – must engage. Already numerous state and regional partnerships are working to expand America’s advanced industries often by attending to the fundamental inputs needed to ensure these industries’ long-term growth.” The Brookings Institution | America’s Advanced Industries

http://www.brookings.edu/research/reports2/2015/02/03-advanced-industries#/M10420

Recommended Industry Representatives

• Agriculture (Animal and Crop Production)• Construction • Finance & Insurance• Health Care and Social Assistance• Management of Companies & Enterprises• Manufacturing• Mining• Professional & Technical Services• Utilities

State Board StructuresSec. 101 Workforce Development Boards

• WIOA requires the Governor to establish a state workforce development board to carry out the functions (subsection d)

• Alternate Entity-if in compliance with sections (a),(b), and (c), a state may use our existing state council (within the meaning of the Workforce Investment Act of 1998 (H.R. 803-19, (e)(1)

Comparison of GWDC & WIOA

GWDC (Current) GWDC Proposed under WIOA

Governor Governor

Chair appointed by Governor Chair appointed by Governor

2 members of each state chamber of the state legislature (House and Senate, Majority and Minority)

1 member of each state chamber of the state legislature –presiding officers

Comparison of GWDC and WIOA

GWDC (Current) GWDC Proposed Under WIOA

Required under balance of board:

Chief elected officials (local/county) Chief elected officials-cities and counties where appropriate

Lead state agency officials for One-StopsMinnesota (DEED)

State agency responsible for Core WIA programs

Comparisons GWDC and WIOA

GWDC (Current) GWDC Proposed Under WIOA

Community Based OrganizationsRepresent:

Disability communityRural/AgricultureCommunity Minority community

May include:Community based organizations with expertise in employment, training, serving individuals with barriers to employment, disability community

Additional State Agencies:MN Department of EducationMN Department of Human Services

May include: organizations with expertise in serving youth (out-of-school )

Comparison GWDC & WIOAGWDC (Current) GWDC Proposed Under WIOA

Labor 6 members

LaborNot less than 20 percent:Labor organization representatives, nominated by State labor federations; representative from a labor organization or training director from a joint labor-management apprenticeship program

EducationSecondary & Post-secondary Vocational InstitutionsEducation –University of Minnesota, MNSCUSchool-based Service LearningLocal Public SecondaryAgriculture Education

Education

So What Does This Mean?– Apprenticeships- a priority under WIOA– In-demand industry sectors for the state– Youth – may include a representative – May include-• Community based organizations• Education • Other relevant state agencies engaged in workforce• Partners in Minnesota’s WorkForce Centers

Minnesota’s Future under WIOAPropose adoption of WIOA for Minnesota’s state board

•Majority business– What is the correct number?– Considerations: size, key driving industry sectors, regions (for planning

purposes), and leadership– Use data to validate recommendation, parameters around industry

sectors and growth (occupations)– Align with regional planning efforts– Geographic representation

Proposed Board Structure – 21 Voting Members

• 2 Minnesota state legislators• 1 required state agency – DEED• 1 elected city official from the Twin Cities metropolitan area• 1 elected county official from outstate Minnesota• 1 Adult Basic Education (ABE) representative • 1 higher education – TBD

– Minnesota State Colleges and Universities (MnSCU)– University of Minnesota– Vocational/technical schools– Private colleges/universities

• 9 business and industry (% ? from Workforce Development Boards)• 5 labor (20 percent requirement)

Non-voting members• 1 representative of a Community-Based Organization (CBO)

serving persons with disabilities• 1 youth representative• State agencies– Minnesota Department of Human Services (DHS)– Minnesota Department of Education (MDE)– Minnesota Department of Labor & Industry (DLI)– Minnesota Department of Corrections (DOC)– Minnesota Office of Higher Education (OHE)– Public Libraries– Women’s Economic Security Act (WESA)

DISCUSSION

Requirements under WIOAAdoption under WIOA:•Move to the full council with committee recommendations at the March meeting•Amend by-laws •Revision of state statue– In addition to the new federal language, board

terms, representation, meetings, sub-committees and funding

Next Steps• WIOA committee will submit the

recommendations to the GWDC Executive Committee

• Present recommendations at the full GWDC March meeting

• Staff prepare document revisions to be reviewed and presented at the June GWDC meeting