ELIGIBLE TRAINING PROVIDER CRITERIA

DISCUSSION PAPER

Background

The Workforce Innovation and Opportunity Act (WIOA)emphasizes consumer choice, job-driven training, training provider performance, and continuous improvement in the workforce development system. The quality and selection of providers and programs of training services is integral to achieving these essential principles.

The State Eligible Training Providers List (ETPL)and related eligibility procedures ensure the accountability, quality, and labor market relevance of the programs of training services that receive WIOA Title I funds.

On August 11, 2015, the Texas Workforce Commission’s(TWC) three-member Commission approved staff recommendations to:

  • retain existing performance expectations for ETPs;
  • add new criteria regarding partnerships with employers and alignment with in-demand occupations; and
  • authorize Local Workforce Development Boards (Boards) to adopt higher performance standards, monitor provider outcomes, and withdraw approval as necessary.

On May 3, 2016,the Commission approved staff recommendations to:

  • define “entered employment” as “in unsubsidized employment during the second quarter after exit,” to align with WIOA;
  • temporarily remove the performance expectation with respect to the average wage at placement, with the understanding that staff will develop a wayto evaluate earnings outcomes in the future; and
  • retain the following performance minimums:

at least 60 percent of all program participants complete the training program; and

at least 60 percent of all program participants enter employment (in unsubsidized employment during the second quarter after exit).

Issue

As set forth in WIOA §122(b)(4), a provider thatpreviously has not been an eligible provider of training services under WIOA must participate in an initial eligibility process and provide verifiable program-specific performance information that supports the provider’s ability to serve WIOA participants. WIOA sets forth the factors that must be included as criteria forinitial eligibility.

For training providers that are applying for continued eligibility, the evaluation is more heavily weighted on performance. WIOA §122(b)(1) sets forth the factors that must be considered when developing criteria for continued eligibility.

Performance Standards

Since the current performance standards were approved, staff has evaluated WIOA performance outcomes for adults and for dislocated workers and has found that the current standard of 60 percent is far below the US Department of Labor (DOL) standards for all participants, not just those receiving training services. The DOL standards for Program Year 2016 for entered employment in the second and fourth quarters after exitfor adults, dislocated workers, and youth range from 64 percent to 78 percent. Those with recent training in a high-demand occupation likely will have even better outcomes than those who do not have the benefit of such training.

Therefore, staff are recommending that ETP performance standards be increased over the next two program years to reach levels consistent with WIOA adult outcomes.Because of the significant delay in these measures (focusing on results in the second and fourth quarters after exit) and the nearly six-month wait for wage records, training providers would benefit from a plan that includes future performance standards. Such a plan would help providers whose performance does not meet the future standards look for ways to improve outcomes.

Recommendations

Staff recommends the following criteria for evaluating the initial and continued eligibility of programs of training services to receive WIOA Title I funds:

  • Providers must be:

an institution of higher education providing a program that leads to a recognized postsecondary credential;

an entity that provides registered apprenticeship training; or

a public or private training provider, which may include community-based organizations, joint labor-management organizations, and providers of Adult Education and Literacy (AEL) activities under Title II (if AEL training services are provided concurrently or in combination with occupational skills training, on-the-job training, incumbent worker training, and other training cited under WIOA §680.350).

  • Providers must be appropriately licensed and regulated.
  • Programs must align with the Board’s target occupations.
  • Partnership with business—programs must demonstrate an alignment of training services with in-demand industry sectors and occupations by providing:

a letter of support from a local employer or employers;

evidence of the existence of an employer-based advisory committee; or

other means acceptable to the Board as set forth in policy adopted in a public meeting.

  • Programs must meet the performance standards shown in the tables below.

For Initial Eligibility:

Performance Standards for All Former Students / Exiting before
July 1, 2018 / Exiting on/after
July 1, 2018
Percentage in unsubsidized employment in the second quarter after exit from the ETP program / 60% / 65%

For Continued Eligibility:

Performance Standards for All Former Students / Exiting before
July 1, 2018 / Exiting on/after
July 1, 2018
Percentage in unsubsidized employment in the second quarter after exit from the ETP program / 60% / 65%
Percentage in unsubsidized employment in the fourth quarter after exit from the ETP program / 60% / 65%
Median quarterly earnings of those in unsubsidized employment in the second quarter after exit from the ETP program* / Wages >= entry-level wage in the local area for the occupation to which the ETP was intended to lead. / Wages >= entry-level wage in the local area for the occupation to which the ETP was intended to lead.

*Median earnings of program participants in unsubsidized employment during the second quarter after exit must be greater than or equal to the starting wage of the occupation for which training was provided, as listed on the Board’s target occupation list.

Staff also recommends that, in the spirit of continuous improvement, Boards continue to be required to:

  • adopt performance requirements that meet or exceed the performance minimums for initial and continued eligibility as appropriate for their local workforce development areas;
  • report to TWC any information or findings regarding submission of inaccurate information, violations of WIOA requirements, or violations of state or local laws by providers;
  • withdraw Board approval for a program for failure to meet the Board’s performance criteria; and
  • require a provider to resubmit an application in cases of change in regulatory or accreditation status or violations of state or local laws.

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