State Workforce Board

June 7, 2019: 10:00 AM
Frances Perkins Rm, 45 Commerce Drive, Augusta



Present: Guy Langevin, (Chair), Jon Mason, John Fortier, LuAnn Ballesteros, Laura Fortman, Scott Good, Sara Gagne-Holmes, Dan Belyea, John Leavitt, Nathan Pelsma, Robert "Brett" Watson, (Phone), Andrew Nichols, (Phone), Gail Senese, (Phone), David Duguay, (Phone), Mel Clarrage, (Phone), Tracey Cooley, (Phone), Ashley Pringle, (Proxy), Thomas Davis, (Proxy), Ed McKersie, (Proxy), Peter Anania, (Proxy)

Staff: Christopher Quint, Joshua Howe, Cheryl Moran

Welcome & Introductions Chris Quint, Director of the State Workforce Board opened the regular meeting at 10:03am and announced a new Chair has been appointed by the Governor and we welcome and congratulate Guy Langevin. Chris announced Jotul was awarded Manufacturer of the Year by the Maine Manufacturing Association. Congratulations Brett Watson! Referring to the Bylaws, Chris stated there is one specific change that will not be discussed today. Because many changes are needed, he stated a small group will be pulled together over the summer to work on this and then brought back to the meeting in September. Commissioner Fortman then asked everyone to introduce themselves and state their affiliations. After the introductions were completed, she asked if they have a quorum.
Chris stated they do not have a quorum, down 1 employer. Without a quorum, the Board cannot vote. In reference to the 70% Training Expenditure Requirement Policy, he stated they will hold a special meeting where they will have a quorum. The PowerPoint presentation will still be presented to provide a foundation.

Policy 70% Training Expenditure Requirement A PowerPoint presentation on the Minimum Training Expenditure - PY17-02 was provided by Chris Quint, Director State Workforce Board and Ginny Carroll, Director Division of Policy & Evaluation, MDOL. Chris opened the presentation stating again without a quorum, there will be no motion. Ginny stated some of these services require significant staff. Staff time under this Policy is administrative which she thinks is part of the issue. Highlights: WIOA funds should be the last resort to pay for tuition. The Law requires funds should be leveraged from other sources; scholarships, Pell Grant, Competitive Skills Scholarship Program (CSSP), Trade Act. The State is the grant recipient and cannot use more than 5%. The Local Workforce Board's (LWBs) cannot use more than 10%. This is the federal cap and what is being monitored.
Important Note: USDOL requires the State to report total money spent on career services vs training. WIOA identifies whats included in the administrative cost. WIOA requires not to be individually siloed but to partner/collaborate and package on behalf of the customer and employer. Funds are blended to meet the need of the employer. There are 3 levels of oversight of how the LWBs and Service Providers are managing their funds which are looked at annually by the State and 1 3 years by USDOL. Career Services The Law considers program costs not administrative costs. Other states receive more funding than others...all around small state funding. Maine is not spending as much because theyre leveraging other funds. Training percentage has dropped since this Policy has been in place. Challenge: The Law defines administrative a certain way and programs a certain way. Career Services and Training combined is 90%. Many individuals receiving services from the Adult & Dislocated Worker programs have significant barriers. Funding depends on meeting outcomes/measures wage level, credential. Under WIOA, participants may only receive training funds if they meet specific requirements: o Must be in-demand. o Must have the skills and qualifications to successfully complete the training however; they may need remedial training. o Unable to receive grant sources. The LWBs have been so constrained on staffing that MDOL has been bearing the cost ($500,000 per year).

Commissioner Fortman asked what do we think needs to take place in this workforce system and accountability? Guy Langevin stated it is important that all sides understand the perspective of where its coming from. Therefore, its very important to have this conversation. We need to make sure Maine businesses have access to skilled labor. The question is, how do we get there?

John Fortier asked how do you define success? Ginny Carroll responded, if weve met the performance as an individual, self-sustaining wage, credential, serving people with barriers. We never give up on anyone. Therefore, we are really serving the hardest to serve. Ginny listed some of the services they provide; Financial literacy Work Ready Employer Services hiring and keeping Millennials Ginny stated 98% are small employers without Human Resource departments. Therefore, a very holistic collaboration must go on. Josh Howe stated earnings are reported the 2nd and 4th quarters out. Ginny stated WIOA wants us directing dollars to get the best return on investment. We will want to provide information on this as we go along. Nathan Pelsma stated he would like to see a complete breakdown of dollars spent. Ginny stated reporting on tracking and data, we want to constrain to WIOA PY16. Jon Mason stated data was requested at the last meeting. Where does that stand? Chris stated he did not put together specific dollarsWhat has been presented today, we will get this put together to hopefully move to the next step. Guy Langevin stated we need to have a special meeting quickly. The vote can be suspended for a yearwe will need to work through what that might be. Commissioner Fortman suggested keeping the 70-30 using definitions that is in WIOA. Chris stated he will send out a Doodle poll with options filled out by Monday. Guy stated they will work together to get information before the next meeting and will ask Board members who were unable to attend to be vocal. Ed Upham, Director Bureau of Employment Services, MDOL stated the sooner we get something in place, the sooner we can get the money out. Changes creates issues. We need to have an answer in 2 weeks. Antoinette Mancusi, Executive Director Coastal Counties Workforce, Inc., stated as far as the 70%, they have lost 40% of their funding 1 million dollars to serve 6 counties. One case manager would only be able to serve 50 people if it goes through vs 300 400. This is the real affect of 70%.

SWB Update Chris Quint stated there are no updates at this point. He stated he has been working with Josh Howe mapping out a calendar deadline on the new State Plan (2020 -2024). He stated he wants to engage the SWB and Partners across the state. The sub-committees also are a part of that. Integrating the sub-committees; Chris stated he wants to ask what they are doing and then bring to the attention of the SWB.

Meeting adjourned at 11:45am

Next Meeting September 20, 2019 10:00 12:00 Frances Perkins Room 45 Commerce Drive, Augusta

Respectfully submitted by Cheryl Moran

Attachments Agenda June 7, 2019