The Workforce Innovation and Opportunity Act (WIOA), Public Law 113-128.
Plain language analysis
This rule revises ch. DWD 801, which governs grants under the Wisconsin Fast Forward and expanded Wisconsin Fast Forward programs. The revisions include the following: Terminology. The rule defines "project" as a workforce training program that an applicant proposes to conduct under a grant. In addition, the rule defines "placement partner" as an employer, other than a grant applicant, that, upon completion of a project, makes certain commitments regarding hiring unemployed or underemployed workers or providing full-time employment, higher-level employment, or wage increases to incumbent employees. The rule also defines "trainee" as an individual who receives workforce training under a project. The rule revises the chapter to consistently refer to all of the foregoing terms.
Applications for grants. As under current ch. DWD 801, the rule requires the Department to solicit applications for grants by publishing a Grant Program Announcement ("GPA"). The rule requires a GPA to specify the outcomes that grantees must achieve and any matching funds that the Department requires from grantees pursuant to its statutory authority. Like current ch. DWD 801, the rule allows certain public and governmental entities, including tribal governing bodies, to apply for grants, but refers to those entities as "public organizations" instead of "public agencies." Also like current ch. DWD 801, the rule allows a private organization, which is defined as a private for−profit or non−profit business or service provider, to apply for grants. The rule also allows a consortium of placement partners to apply for a grant, instead of a coalition or partnership of entities that is allowed to apply under current ch. DWD 801. However, a lead public or private organization must serve as the applicant for a consortium and the lead public or private organization, instead of the placement partners, must comply with the requirements that apply to grantees. The rule makes certain changes to the contents of an application. The rule eliminates requirements for applications to include an application summary sheet and checklist, which are duplicative of other application requirements. The rule also eliminates a requirement for an application to include documentation verifying compliance with state and federal lobbying laws. This requirement is not necessary because federal lobbying laws do not apply to this state-funded grant program. The requirement is also not necessary because current DWD ch. 801 prohibits using grant funds for lobbying purposes and the rule does not affect that prohibition. The rule also affects applications by specifying the information that must be included in the narrative description of the project that is required under current ch. DWD 801. In addition, the rule requires an application for a consortium of placement partners to identify the placement partners. The rule also eliminates a requirement for written documentation of agreements with partners and requires instead letters of commitment from placement partners, as well as from organizations that will provide matching contributions to the project. The rule adds the following eligibility requirements for applying for grants: 1) applicants must be in compliance with applicable federal and state laws and regulations and 2) projects funded by grants must propose plans to achieve the outcomes specified in GPAs. The rule allows the Department to deny an application that fails to meet any eligibility requirements or to include the required contents. Like current ch. DWD 801, the rule provides that such a denial is not subject to administrative review. Department action on applications. The rule eliminates an evaluation committee that is authorized to evaluate applications and allows the department to invite persons to participate in evaluations. The rule adds cost-per-trainee as an additional factor the Department is allowed to consider in reviewing an application. The rule changes the Department's deadline regarding an application. Under current ch. DWD 801, the Department must notify an applicant about the Department's decision with 60 days of a grant application deadline. Under the rule, within that same deadline, the Department may either 1) notify the applicant about the Department's decision or 2) notify the applicant of the status of the application and the date by which the Department anticipates issuing a decision on the application. The rule also makes revisions that allow an applicant to request administrative review of, instead of appeal, an adverse decision regarding an application. These revisions more accurately reflect the Department's long-standing process when an applicant seeks review of an adverse decision. Matching contributions. As noted above, the rule requires a GPA to specify any matching contributions that the Department requires from grantees. The rule also specifies that match contributions must be from private or public funds, instead of from locally generated or federal revenues as required under current ch. DWD 801. As under the current chapter, the rule allows in-kind contributions to satisfy match contribution requirements, but the rule specifies that a grantee must provide the basis for valuing the in-kind contributions. The rule eliminates a limit on the percentage of match contributions that can be expended on instructional materials, software, and equipment. Use of grant funds. Current ch. DWD 801 allows grant funds to be used to purchase capital equipment if the Department gives its prior written approval. Because funding capital expenditures is not the purpose of the grant program, the rule prohibits using grant funds for purchasing capital equipment. The rule also prohibits using grant funds on pre-existing programs, as defined in the rule. In addition, the rule eliminates a prohibition on using grant funds to supplant existing employee wages and compensation. The prohibition is redundant because (a) current chapter DWD 801 prohibits using grant funds for trainee wages, stipends, or fringe benefits and (b) the rule prohibits using grant funds on pre-existing programs. The rule eliminates a statement that grant funds may be used to train persons who work less than full-time. The statement is unnecessary based on current ch. DWD 801's definition of "underemployed worker" and because current ch. DWD 801 does not otherwise prohibit using grant funds for that purpose. Currently, ch. DWD 801 allows the Department to limit administrative costs to no more than 5% of a project's total budget. The rule provides instead that the Department may limit the amount of grant funds that can be used for administrative costs to no more than 10% of the costs reimbursed under a grant. A similar limit applies for workforce investment activities that are funded under Title I of WIOA. The rule also revises the definition of "administrative costs." Other revisions. The rule also does the following:
— Eliminates requirements regarding the Department's ownership of instructional materials, software, and equipment developed under grants in order to allow the Department to determine the future use of products developed under grants as part of the grant agreement terms.
— Clarifies that a prohibition on a grantee receiving more than $400,000 annually in grants does not apply to a grantee who serves as an applicant for a consortium of placement partners.
Summary of, and comparison with, existing or proposed federal regulations
WIOA provides funding for employment and training programs. With the approval of the Council on Workforce Investment, the Department provides grant allocations to 11 regional workforce development boards, which fund and supervise local programs. Programs for employment placement and retention, job training, and education-related training programs are delivered through Wisconsin Job Centers.
The proposed rule has purposes that are similar to those under federal regulations implementing WIOA, 20 CFR part 652. Those federal regulations relate to the establishment and functioning of state employment service and have the basic purpose to improve the functioning of the nation's labor markets by bringing together individuals who are seeking employment and employers who are seeking workers. Comparison with rules in adjacent states
Minnesota. The Minnesota Job Skills Partnership Program is a state grant program, funded by state general purpose revenue, which is focused on connecting state businesses with training opportunities through educational or nonprofit institutions who can provide skills development training for the workforce. Approximately 65% of the grants have provided skills training for state manufacturers, which is followed by health and social service providers. Financial match was recently lowered to a near one-to-one ratio, which requires employers to provide approximately 1 dollar for every public dollar provided. Partnership grants are awarded in amounts up to $400,000, with a "short form" application option available to grantees requesting $50,000 or less.
Illinois. The Illinois Department of Commerce and Economic Opportunity offers the Illinois Talent Pipeline program, which provides employer-based grant opportunities in the following categories: class-sized training, customized training, incumbent worker training, on-the-job training, and apprenticeship opportunities. These programs allow employers to upgrade the skills of their employees, remain current with technology and business practices, and provide new skills to new hires. The program continually expects to award 8 to 10 pilot projects of $250,000 to $500,000 each cycle, with up to 50 percent of eligible costs being reimbursable. Illinois has not offered additional funding for this program since the 2018 state fiscal year.
Iowa. Legislation passed in 2018 created the Future Ready Initiative, which connects individuals to the education and training needed to obtain careers and jobs at a livable wage. The initiative offers opportunities for adult learners, high school students, teachers, counselors, and employers. As part of this initiative, the Employer Innovation Fund provides a grant opportunity for employers to carry out creative solutions to address local workforce needs. Program offerings include certifications, trainings, funding for mobile construction labs, and other offerings. The maximum grant award is $50,000 and a one-to-one match ratio is required. In addition, projects must be completed within a 12-month period.
Michigan. The Michigan Industry Cluster Approach strategy focuses on the following industry clusters: agriculture, construction, energy, healthcare, information technology, manufacturing, mobility, hospitality, and outdoor recreation. Under the strategy, regional agencies work with employers to identify industry demand and vacancies to provide input on the design of educational program offerings, employment skills requirements, and the development of industry solutions. By partnering with regional cluster teams, the state’s cluster team can align services and programs with identified needs for workers and skills statewide. There are various programs under this strategy, including the Michigan Industry Cluster Approach 2.0 grant program, which focuses on helping the development and launch of employer-led collaboratives to provide funds for talent recruitments, customized training programs, transportation, financial planning education, and other purposes.
Summary of factual data and analytical methodologies
The rules of other public grant programs were reviewed as part of the process for developing this proposed rule. The Department also relied on its experience in administering the standard and expanded Wisconsin Fast Forward programs. No other data or analysis was needed.
Analysis and supporting documents used to determine effect on small business or in preparation of an economic impact analysis
The analysis is based upon the text of the proposed rule and s. 106.27, Stats. The Department posted the scope statement for the rule for 14 days to solicit comments on economic impact from the public and no comments were received. Effect on small business
The rule is not expected to have a significant economic effect on small businesses, as defined in s. 227.114 (1), Stats. The rule has no effect on small businesses, as so defined, that do not apply for workforce training grants. Any business that does apply for a grant will have to comply with the administration and reporting requirements of the rule. Agency contact person
Questions and comments related to this rule may be directed to:
John Roos, Office of Skills Development Director
Division of Employment & Training
Department of Workforce Development
P.O. Box 7972
Madison, WI 53707-7946Telephone: (608)-733-3918
Place where comments are to be submitted and deadline for submission
Mark Kunkel, Rules and Records Coordinator
Department of Workforce Development
P.O. Box 7946
Madison, WI 53707
The deadline for comments was August 29, 2022.
Text of Rule
Section 1. DWD 801.01 is amended to read:
DWD 801.01 Authority and purpose. This chapter is created to establish the rules that shall govern the administration and granting of funds for the training of unemployed and underemployed workers and incumbent employees in this state, as authorized under s. 106.27 (1), Stats. Section 2. DWD 801.02 is amended to read:
DWD 801.02 Applicability. This chapter applies to the department, to applicants for grants awarded by the department, and to public and private organizations that are awarded grants by the department, all in connection with workforce training grants applied for and awarded under s. 106.27 (1), Stats. Section 3. DWD 801.03 (1) and (2) are amended to read:
DWD 801.03 (1) "Administrative costs" means costs associated with implementing grant objectives and activities, such as the provision of office space, telephone service, and employees a grantee's general administration of a grant, such as office supplies and the wages and benefits of staff who perform functions related to the administration of the grant but who do not directly carry out the grant's objectives or activities.
(2) “Applicant" means a public or private organization that applies for a grant from the department for the development or implementation of a workforce training program project.
Section 4. DWD 801.03 (5) and (7) are repealed.
Section 5. DWD 801.03 (8) and (9) are amended to read:
DWD 801.03 (8) “Grant" means an agreement a contract between the department and the a grantee whereby the department provides funds from the appropriation under s. 20.445 (1) (b), Stats., for the purposes specified in s. 106.27 (2g) (1), Stats. (9) "Grantee" means a public or private organization or agency receiving a grant either directly or indirectly from the department, except that if a lead public or private organization serves as the applicant for a consortium of placement partners under s. DWD 801.05 (1) (c), "grantee" means the lead public or private organization and not the placement partners.
