Workforce Development OverviewTravis County HHS&VS

UT Austin: Ray Marshall CenterWorkSource Travis County Commissioners CourtWork Session, November 29, 2007

WFD System Goals

Successful Workforce Development efforts are built around the following functions: Pursuing a “dual customer approach”, serving businesses

looking for qualified workers and job seekers and workers looking to advance their careers;

Organizing multiple institutions and funding streams around common goals;

Providing or brokering services—training and supports—that help workers gain access to the initial rungs on the ladder to economic opportunity and advancement;

Serving a variety of workers but recognizing and addressing the special needs of lower-skilled, lower-wage workers and job seekers;

WFD System Goals

Successful Workforce Development efforts are built around the following functions: Reducing turnover and increasing the economic mobility of

workers; Testing and adapting innovative approaches to workforce

problems; and Catalyzing improvements in public systems and business

employment practices; Emphasizing a mix of labor force attachment and intensive

skill training services tied to high-wage, high-demand sectors

Investment Summary

Our current investment falls into three broad categories: Long-term training: degree or certificate training

targeting high wage careers Short-term training: employability and technical

skills for quick entry into employment – including the REM pilot

Basic Education: literacy, ESL, GED and other foundation skills

Long-Term Training

Current Investment 2007: $700,213 Target Number Served 2007: 600 Performance goals:

Outputs: Number of clients receiving basic education and/or job training

Outcomes: 95% placement rate, 97% placement at $9/hr or more, 96% retention at 6 month

Description: Wraparound services through up to 36 months to high

wage employment in demand occupations in health care, technology, finance, and construction trades

Performance Summary: Long-Term TrainingCapital IDEA Participants, 2003-2005

Employment & Earnings – Before & After Service

Quarterly Employment

Participants* 4 Quarters before

2nd Quarter after

All quarters after

% Change

(Before to All)

321 68.5% 77.9% 77.5% + 13.1%

Quarterly Earnings of those Employed

Participants* 4 Quarters before

2nd Quarter after

All quarters after

% Change

(Before to All)

321 $4,429 $5,651 $6,107 + 37.9%

* Excludes participants who are continuing in education and training services.

Performance Summary: Long-Term TrainingEmployment & Earnings Impacts: Capital IDEA Participants, 2003-2005

Quarterly Employment All Qtrs After

Service: Comparison

Group

All Qtrs After Service:

Treatment GroupUnadjusted Net Effect

Adjusted Net Effect

Overall 68.9% 77.5% + 8.6% + 9.1%**

Average Quarterly Earnings of those EmployedAll Qtrs After

Service: Comparison

Group

All Qtrs After Service:

Treatment GroupUnadjusted Net Effect

Adjusted Net Effect

Overall $5,726 $6,107 $381 $428**

Note: Comparison group members received workforce services through ES/WIA core.** Significant at the 95% level.

Performance SummaryQuarterly Earnings Trajectories

Capital IDEA Participants v. Comparison Group

$2,000

$3,000

$4,000

$5,000

$6,000

-8 -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 12

Capital IDEA Comparison group

Short-Term Training

Current Investment 2007: $347,802 Target Number Served 2007:

152 in adult basic education, 353 in work readiness, 96 in job training and 151 receive only placement assistance

Performance goals: Outcomes: 66% to 85% placement rate, 50% to 85% retention

rate, 50% to 85% start at $9/hr or more; Description:

Includes a range of short-term services including Goodwill, Construction Gateway, Crime Prevention Institute, Austin Area Urban League and The Austin Academy

Performance SummaryQuarterly Employment

Provider Participants 4 Quarters before

2nd Quarter after

All quarters after

% Change(Before to All)

Austin Academy (’01-’06)

301 52.7% 63.9% 62.8% + 19.2%

AAUL (’04-’06)

334 49.1% 71.9% 68.2% + 38.9%

CPI(’04-’06)

218 18.1% 40.0% 39.6% + 118.8%

Gateway*(’02-’06)

329 33.5% 55.7% 51.5% + 53.7%

Goodwill(’03-’06)

437 58.1% 72.3% 69.8% + 20.1%

* Outcomes likely under-reported due to employment in construction trades, a sector with low UI coverage.

Performance SummaryQuarterly Earnings of Those Employed

Provider Participants 4 Quarters before

2nd Quarter after

All quarters after

% Change(Before to All)

Austin Academy (’01-’06)

301 $3,314 $3,455 $3,968 + 19.7%

AAUL (’04-’06)

334 $3,447 $3,242 $3,660 + 6.2%

CPI(’04-’06)

218 $1,995 $2,217 $2,702 + 35.4%

Gateway*(’02-’06)

329 $4,577 $3,212 $3,967 - 13.3%

Goodwill(’03-’06)

437 $3,792 $4,085 $4,403 + 16.1%

* Outcomes likely under-reported due to employment in construction trades, a sector with low UI coverage.

REM Pilot

Short-term training system Current Investment 2007: $249,275 Performance goals:

Outputs: screen 85, 68 enter job training Outcomes: 70% job placement, 50% retention at 6

months, $9/hr average wage at entry Description:

Customer-driven model that leads to employment in demand occupation within 6 weeks.

REM Performance Summary

Employment & Earnings – Before & After Service

Quarterly Employment 2006

Participants 4 Quarters before

2nd Quarter after

All quarters after

% Change

(Before to All)

103 16.3% 54.5% 59.6% + 265.6%

Quarterly Earnings of those Employed 2006

Participants 4 Quarters before

2nd Quarter after

All quarters after

% Change

(Before to All)

103 $1,953 $3,035 $2,931 + 50.1%

* Outcomes likely under-reported due to employment in construction trades and truck driving, sectors with low UI coverage.

Adult Basic Education

Current Investment 2007: $141,399 Target Number Served 2007:1950 Performance goals:

Outputs: number clients receiving Literacy, ESL, or GED instruction

Outcomes: 60%-75% of participants show a gain in standardized test scores (BEST for ESL, TABE or Literacy, or GED tests)

Description: classroom or individualized instruction, largely volunteer based, coordinated with local school districts and community college for broadly accessible adult education.

Other Services

Travis County also invests roughly $500,000 in highly specialized services that do not fit neatly in the above categories: Volunteer Firefighter Academy at ESD #4 Skillpoint Alliance – Youth college and career

activities American Youthworks:

MetroTrails partnership with TNR Workforce development for older youth and young adults

(included in the RMC evaluation project) Austin Urban Youth Corps

Other Services

American Youthworks provides both education and workforce development services to youth ages 16-25

Employment & Earnings – Before & After Service:

Quarterly Employment 2005-2006

Participants 4 Quarters before

2nd Quarter after

All quarters after

% Change

619 27.3% 47.8% 47.0% + 72.2%

Quarterly Earnings of those Employed 2005-2006

Participants 4 Quarters before

2nd Quarter after

All quarters after

% Change

619 $1,515 $1,897 $1,943 + 28.3%

Other Findings

Overall, participants experienced more stable employment in the post-service period, resulting in a larger share qualifying for the first-tier safety net of Unemployment Insurance (UI), a system supported by both employers and workers

Participants as a whole had significantly fewer UI claims in the post-service period

Regional Workforce System

The Capital area regional workforce system iscomprised of a number of independentcomponents: Pre-K programs K-12 Colleges/Universities Technical schools Community & Faith-Based Organizations City/County funded programs WorkSource funded programs

The WorkSource Board

The WorkSource Board, appointed by the Chief

Elected Officials of the City and County, serves

as the governing and leadership body for the

regional workforce system, setting the policy

framework which provides direction, focus and

alignment to the system’s many components.

Board Objectives

Provide focus & direction for the regional workforce system Align the various components of the workforce system to a

common set of goals Advocate for workforce issues/needs Facilitate partnerships/collaborations Strategically invest workforce funds Leverage resources to enhance/expand services to customers Yield a positive return on investment of workforce funds

LONG-TERM ENDS

A better-educated, skilled workforce More globally competitive employers A diverse employer base A prosperous community

Sample Measurements

% of population with an education credential (high school diploma, GED, post-secondary degree/certificate)

% of population with a post-secondary degree or certificate

% of students enrolled in 9th-12th grade who attain a high school diploma

% of students enrolled in 9th-12th grade earning a high school diploma who are “college ready”

% of minority students entering post-secondary education

Sample Measurements

Increase in region’s per capita income Increase in region’s average weekly wage Decrease in % of families/individuals living below

poverty level % of net new jobs created with employers in

targeted industries % of net new jobs created in high-skill, high-wage

occupations Increase in region’s gross regional product

Board Priorities - 2008

ESL/vocational training needs of the Limited English Proficient (LEP) population

Employment/training needs of the ex-offender population

Development/implementation of a work readiness certification initiative

Adopt an industry sector (cluster) approach to workforce development

WorkSource Programs

Workforce Investment Act (economically disadvantaged youth and adults, and dislocated workers)

Trade Adjustment Assistance Temporary Assistance for Needy Families (TANF) Food Stamp Employment and Training Project Re-Integration of Offenders Child Care Wagner-Peyser Employment Service Special Grants/Awards

Average annual budget (all programs) = $30 million; Serving over 100,000 Individuals and 6,000 area businesses.

Looking Ahead: Funding

Funding Strategies & Leverage Opportunities Alternative funding strategies - RMC

UI-related Training Fund Options Bond Financing Food Stamp Employment & Training Program-related Investments Tuition-based Strategies

Leveraging opportunities – WorkSource

Looking Ahead: Investing

Framework for Future Investments:Service Area

Target Outcomes Time Cost/ Client

Long-Term

90% Employed

90% Retained 6 months

$15/hr avg. wage at entry

Up to 36 mo.

$6,000/yr

Short-Term

65% Employed

60% Retained 6 months

$10.50/hr avg. wage at entry

Up to 3 mo.

$3,200

Adult Basic Educ.

Measurably improved skills - using TABE for literacy, BEST for ESL, or earn GED.

Up to 12 mo.

$3,000

?

Also expect: Multiple career

paths for participants

Ability to leverage resources

Cooperation with ongoing third-party evaluation

Increase and diversify investment in independent evaluation