Purpose 

Provide Local Workforce Development Boards (LWDBs) and other stakeholders negotiations, performance accountability, and sanctions requirements for Workforce Innovation and Opportunity Act (WIOA) Title I Adult, Dislocated Worker, and Youth Programs.

Definitions

• Actual levels of performance: The outcomes reported on the regional Annual Performance Report (regional version of the ETA-9169) for each primary indicator of performance for each core program.
• Adjusted levels of performance: The levels of performance determined by adjusting the negotiated levels of performance at the end of the program year to reflect actual participant characteristics and economic conditions for the local area, based on the re-estimations modeled by the local statistical adjustment model (LSAM).
• Adjustment factor: A positive or negative difference that will be added to the negotiated level of performance to determine the adjusted level of performance. The adjustment factor is the difference between the estimated levels of performance predicted by the LSAM based on pre-program year estimates and the levels of performance re-estimated by the LSAM after the close of the program year based on the actual participant characteristics and economic conditions.
• Expected levels of performance: The levels of performance proposed by the local area to IWD for each primary indicator of performance for each core program.
• Individual indicator score: The proportion of actual level of performance out of the adjusted level of performance for a single primary indicator of performance for a single program.
• Negotiated levels of performance: The levels of performance mutually agreed upon by the local area and IWD for each primary indicator of performance for each core program.
• Overall state indicator score: The average of the individual indicator scores for a single performance indicator across all core programs.
• Overall state program score: The average of the individual indicator scores for a single core program across all five primary indicators of performance.

Content 

Iowa Workforce Development (IWD) will work with LWDBs to negotiate and reach agreement on local levels of performance based on the state negotiated levels of performance. This process involves IWD, LWDBs and their respective Chief Lead Elected Official (CLEO), with agreement reached on levels of performance for two program years at a time. This must be completed no later than September 30th in each year in which state negotiations occur.

Performance Indicators

Each local area is subject to the same primary indicators of performance for the core programs of WIOA Title I that apply to the state. The six primary indicators of performance for Title I Adult, Dislocated Worker, and Youth programs are:

1. Employment Rate 2nd Quarter after Exit: The percentage of participants who are in unsubsidized employment during the second quarter after exit from the program.
2. Employment Rate 4th Quarter after Exit: The percentage of participants who are in unsubsidized employment during the fourth quarter after exit from the program.
3. Median Earnings 2nd Quarter after Exit: Median earnings of participants who are in unsubsidized employment during the second quarter after exit from the program.
4. Credential Attainment within Four Quarters after Exit: The percentage of those participants enrolled in an education or training program (excluding those in on-the-job training [OJT] and customized training) who attained a recognized postsecondary credential or a secondary school diploma, or its recognized equivalent, during participation in or within one year after exit from the program.
   1. For Adults and Dislocated Workers: A participant who has attained a secondary school diploma or its recognized equivalent is included in the percentage of participants who have attained a secondary school diploma or recognized equivalent only if the participant also is employed or is enrolled in an education or training program leading to a recognized postsecondary credential within one year after exit from the program.
5. Measurable Skill Gains: The percentage of participants who, during a program year, are in an education or training program that leads to a recognized postsecondary credential or employment and who are achieving measurable skill gains, defined as documented academic, technical, occupational, or other forms of progress, towards such a credential or employment. Depending upon the type of education or training program, documented progress is defined as one of the following:
   1. Documented achievement of at least one educational functioning level of a participant who is receiving instruction below the postsecondary education level.
   2. Documented attainment of a secondary school diploma or its recognized equivalent.
   3. Secondary or postsecondary transcript or report card for a sufficient number of credit hours that shows a participant is meeting the State unit's academic standards.
   4. Satisfactory or better progress report towards established milestones such as completion of OJT, completion of one year of an apprenticeship program, or similar milestones from an employer or training provider who is providing training; or
   5. Successful passage of an exam that is required for a particular occupation or progress in attaining technical or occupational skills as evidenced by trade-related benchmarks such as knowledge-based exams.
6. Retention with the Same Employer: Percentage of participants with wage records who exit from WIOA core programs and were employed by the same employer in the second and fourth quarters after exit. This definition specifically measures retention in unsubsidized employment.

Local Negotiation Procedure

• IWD will disseminate its negotiated levels of performance to LWDBs prior to the start of the program year.
• IWD will use the Local Area Statistical Adjustment Model (LSAM) to provide information to local areas during performance negotiations and for performance assessment at the end of each program year. The Workforce Innovation and Opportunity Act (WIOA) requires the use of a Statistical Adjustment Model (SAM) when establishing negotiated and adjusted levels of performance. The SAM is an objective regression model used to account for variations in the actual economic conditions and characteristics of participants served during the negotiation and assessment process. The SAM is applied to determine expected levels of performance prior to the start of a PY and to the negotiated levels of performance after the completion of a PY to determine adjusted levels of performance.
• LWDBs must submit Appendix K to wioagovernance@iwd.iowa.gov no later than August 1^st of the negotiation year to provide IWD their expected levels of performance for each primary indicator of performance in each WIOA Title I program, Adult, Dislocated Worker, and Youth. Local areas are encouraged to include LWDB members on their negotiation teams. The LWDB and the CLEO are required to approve the proposed goals and participate in the negotiation process. Starting with the expected levels of performance provided by the local areas, the local areas and IWD will then negotiate the levels of performance based on the following negotiation factors:

1. Adjustments based on the objective LSAM.
2. The extent to which the levels promote continuous improvement.
3. How the actual levels achieved compare with the negotiated levels of performance from prior years.
4. How the levels of performance compare with levels of performance established for other local areas.
5. The extent to which the levels will assist the State in meeting the performance goals established by the Secretaries of Labor and Education for the core programs in accordance with Government Performance and Results Act.

Negotiations between IWD and the LWDBs must be completed by September 30th in each year in which state negotiations occur, and the results of the negotiations must be reported to the USDOL-ETA Regional Office. LWDBs must incorporate the final negotiated levels of performance into the local plan.

Determination of Performance Success or Failure

Success

The primary indicator of performance will be considered to have "exceed" if the individual performance indicator score is greater than 100 percent.

The primary indicator of performance will be considered to have "met" if the individual performance indicator score is greater than or equal to 90 percent and less than or equal to 100 percent.

Failure

The primary indicator of performance will be considered to have "not met" performance if:

• Any single individual indicator score for any single core program falls below 50 percent of the adjusted level of performance for the program year,
• The overall program score falls below 90 percent for that single core program for the program year, or
• The overall indicator score falls below 90 percent for that single measure for the program year.

Table 1: An example showing the performance results for each indicator and the overall program score resulting in a “success”.

• Grey: Individual Indicator Score >=50%
• Yellow: Overall Indicator Score >=90%
• Green: Overall Program Score >=90%

Table 2: An example showing the performance results for each indicator and the overall program score resulting in a “failure”.

• Grey: Individual Indicator Score >=50%
• Yellow: Overall Indicator Score >=90%
• Red: Overall Program Score >=90%

Sanctions for Failure to Meet Adjusted Levels of Performance

The first time a local area fails to meet adjusted levels of performance for the primary indicators of performance for any year, the local area is required to complete the Performance Improvement Plan Template included in Appendix L and submit it to wioagovernance@iwd.iowa.gov within 30 days of receipt of their performance assessment. After receipt, IWD will follow up with the local area and provide additional technical assistance.

If a local area fails to meet the adjusted levels of performance agreed to for the same primary indicators of performance for the same program for a second consecutive year, the local area will again be required to submit the Performance Improvement Plan Template included in Appendix L to wioagovernance@iwd.iowa.gov within 30 days of receipt of their performance assessment. In addition to providing technical assistance, IWD may also request USDOL to provide technical assistance including but not limited to:

• Assistance in the development of the performance improvement plan;
• The development of a modified local plan; or
• Other actions designed to assist the local area in improving performance.

If a local area fails to meet the adjusted levels of performance agreed to for the same primary indicators of performance for the same core program for a third consecutive program year, the state must take corrective actions. After advising Iowa’s Federal Project Officer, the Governor must develop a reorganization plan that:

• Requires the appointment and certification of a new local board, consistent with the criteria in 20 CFR 679.350;
• Prohibits the use of eligible providers and one-stop partners that have been identified as achieving poor levels of performance; or
• Takes such other significant actions as the Governor determines are appropriate.

Appealing a Reorganization Plan

The LWDB and CLEO may appeal the final decision of the Governor to the Secretary of Labor not later than 30 days after receiving the decision from the Governor. Any appeal of the Governor’s final decision must be:

• Appealed jointly by the LWDB and the CLEO to the Secretary of Labor; and
• Must be submitted by certified mail, return receipt requested, to the Secretary of Labor using the address below:

Secretary of Labor

U.S. Department of Labor

200 Constitution Ave. NW.

Washington, D.C. 20210 Attention: ASET

• A copy of the appeal must also be simultaneously sent to the Governor, in care of IWD, using the address below:

Iowa Workforce Development

1000 E Grand Ave.

Des Moines, IA 50319

Upon receipt of the joint appeal from the LWDB and CLEO, the Secretary of Labor must make a final decision within 30 days. In making this determination the Secretary of Labor may consider any comments submitted by the Governor in response to the appeals. The decision by the Governor on the appeal becomes effective at the time it is issued and remains effective unless the Secretary of Labor rescinds or revises the reorganization plan under WIOA Sec. 116(g)(2)(C).

Action   

LWDBs and CLEOs must familiarize themselves with this policy to prepare themselves for the local performance negotiation process. 

The content of this policy may be subject to routine monitoring.