What the Law Requires: Each state is required to submit a five year plan to the Department of Labor in order to receive funds to serve adults, dislocated workers and youth. States are allowed to keep 5% of these funds for administrative costs and can spend up to 15% of each funding stream for a variety of activities. State plans are to contain:

• the state criteria for appointing local board members

• the designation of local workforce areas and local allocation formulas

• procedures for certifying training providers

• coordination of local one-stop systems

• financial and management systems and performance measures.

States can use the 15% set aside for the following activities:

• building a statewide one-stop system

• certifying training providers

• technical assistance to under performing local areas and incentive grants to high-performing areas

• incumbent worker training

• capacity building for stakeholders (including labor and CBOs)

• research and demonstration programs

Interested parties, including business and labor organizations, have the right to review and comment on the plan. There are four ways a state can develop and submit a plan to the make the transition to the WIA.

Option 1. Full Early Implementation - States that have all of the critical elements in place and can meet all of the DOL planning requirements can submit a five year plan on April 1, 1999 for programs effective July 1, 1999.

Option 2. Transition Plan - States that do not have all of the elements in place may submit a transition plan that describes how the funds in Program Year 1999 will be used during the state's transition to WIA by July 1, 2000.

Option 3. July 1, 2000 Implementation - States can wait until April 1, 2000 to submit their plans for programs effective July 1st. They can use two percent of JPTA funds to assist in the transition planning and can seek waiver authority to plan WIA implementation.

Option 4. Unified Plan- All states, whether they submit a plan under Option 1,2, or 3 may develop and submit a Unified Plan which includes plans from WIA, vocational and adult education, vocational rehabilitation and Employment Service.

Labor's Perspective: Labor should be consulted on the full range of state issues, including:

Criteria for selection of local boards - This provides an important opportunity to assure maximum labor representation on local WIBs. The state should set criteria that includes requirements for:

• at least two labor representatives

• early consultation with and nominations from the local labor federation

• preference for signatory employers as employer representatives

Designation of local workforce development areas - Governors may seek to realign local boundaries to consolidate control over local programs or to create state-based systems for delivery services. Labor representatives should carefully examine these proposals to ensure that all stakeholders interests are considered.

Incumbent worker training - States have significant flexibility to award contracts to employers, unions, educational and other entities to provide incumbent worker training. Priority should be given to programs that operate through a labor-management structure. All programs should be subject to high standards for quality and outcomes, including wages, benefits, career ladder opportunities and retention.

Review and comment - The state should be required to establish specific timeframes and procedures for the review of state plans as well as a process for modifying the state plan. This should include:

• specific outreach to unions, employers and community organizations

• publication and notice requirements

• ease of access to review and reproduce the plan

• timeframes (at least 60 days) for review and comment

• written responses to comments received

Rapid response - States should have well-developed rapid response systems including:

• fully staffed dislocated worker units that work closely with the state labor federation to assist workers and companies facing layoff.

• on-site contact with employers and workers, including the bargaining unit when contact is made with a signatory employer

• linkages with training and reemployment resources, including unions, to provide early intervention services including employee buyouts as well as retraining to dislocated workers prior to layoff.

• creation of union-involved adjustment programs.

• knowledge of employee ownership issues.

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