1. How does workforce development funding from ARRA get implemented?

The vast majority of the training dollars available through the ARRA goes through the existing Workforce Investment Act (WIA) system, although ARRA allows some important administrative changes that will benefit training providers. These changes are noted in the answer to Question 3: How does the Workforce Investment Act funding distribution system work. Funding through the Workforce Investment Act System can come from two separate sources. All federal funding for workforce development that runs through the WIA system is distributed by a state-by-state formula according to population. State Workforce Investment Boards (SWIBs) may keep up to 15% of WIA funding to be used at the Governor’s discretion. This fund is generally called the Governor’s 15% Discretionary Fund. The remaining 85% is distributed by formula to Local Workforce Investment Boards (LWIBs). 

Public resources can also be used to support successful union-sponsored occupational training programs. The Wisconsin Regional Training Partnership/BIG STEP is an excellent example of how public resources can create additional funding sources for good union-sponsored training programs. Union-sponsored occupational training programs—those with strong connections to family-sustaining careers—are just the kinds of programs that the ARRA was created to support.

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