FINANCE

The information below provides background information on federal Workforce Investment Act (WIA) funding for workforce and business development in Ventura County.

  • Introduction to WIA Funding
  • Historical Perspective on WIA Funding
  • Federal Allotments of WIA Funds to States

 

INTRODUCTION TO WIA FUNDING

The Workforce Investment Act (WIA) of 1998 supports Ventura County workforce and business development by:

  • Allocating federal funds that enable states and local workforce areas to offer a comprehensive range of workforce development activities to qualifying adults, dislocated workers, and youth
  • Promoting an increase in employment, job retention, earnings, and occupational skills development for program participants, resulting in an overall improvement of workforce quality, reduced welfare dependence, and increased national productivity and competitiveness
  • Providing approximately $478 million in funding to the State of California (2007-2008), which then allocates funds to be administered by California's 50 local workforce areas
  • Administering funding for programs and services in Ventura County through the Workforce investment Board of Ventura County, as authorized by the Ventura County Board of Supervisors

 

HISTORICAL PERSPECTIVE ON WIA FUNDING

The Employment Development Department has prepared an historical perspective of Workforce Investment Act (WIA) funding at the national and California levels. 

Total WIA funding to California has decreased by approximately $252 million or 40%, while funding at the national level has dropped about $263 million or 7.4%.  Documents are attached as PDF:

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

  • Funding History: SFY 2000-01 through 2007-08: a year-to-year analysis of the amount of WIA funds appropriated nationally and then allotted to California, showing California’s share of the national amounts each year and changes from one year to the next  

From the inception of WIA, California’s relative share of total WIA has declined steadily for adult and Youth Services and dropped steeply for dislocated worker programs.  For example, California’s share of the national adult and youth funding streams in PY 2000-01 was about 17% of the WIA program, while the share for PY 2007-08 is less than 14%.  California’s share of the dislocated worker program in the first year was about 19% and will fall to about 9% in the coming year.

Without the same minimum and maximum funding protections as WIA provides for the adult and Youth Services, California's share of the national dislocated worker funding has decreased almost three times as much as the youth and adult programs.  In real terms, California's allotment of dislocated worker funds has dropped from $298 million to $137 million ($161 million or 54%) over the same time period, even though the national dislocated worker account has lost approximately $117 million or 7%.  

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FEDERAL ALLOTMENTS OF WIA FUNDS TO STATES

The Workforce Investment Act (WIA) prescribes the formula the federal government must use in allotting adult, youth and dislocated worker funds to States.  Using the formula for each funding stream, the federal government determines the share of national funding that each State will receive in a given year.  Two primary factors determine a State allocation: 

  • The amount of funding available nationally and
  • The State’s economic and demographic statistics as a relative share of those statistics for all states 

In addition, WIA establishes minimum and maximum amounts by which a State’s share of total adult and youth funding may change from the prior year.  This provision protects States from losing too much of their relative share from year to year.  There is no similar provision for the dislocated worker funding stream.

Following is a description of the allotment formula for each funding stream:

Adult Program Formula

  • 1/3: State’s relative share of unemployed individuals in areas of substantial unemployment areas with greater than 6.5 percent unemployment)
  • 1/3:  State’s relative share of excess unemployed (in excess of 4.5 percent unemployment)
  • 1/3: State’s relative share of economically disadvantaged adults

Youth Program Formula

  • 1/3:  State’s relative share of unemployed individuals in areas of substantial unemployment (areas with greater than 6.5 percent unemployment)
  • 1/3: State’s relative share of excess unemployed (in excess of 4.5 percent unemployment)
  • 1/3: State’s relative share of economically disadvantaged youth

Dislocated Worker Formula

  • 1/3: State’s relative share of total unemployed
  • 1/3: State’s relative share of excess unemployed (in excess of 4.5 percent unemployment)
  • 1/3: State’s relative share of long-term unemployed (individuals who have been unemployed for 15 weeks or more)

 Source: California Employment Development Department (May 2007)

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