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F I N D I N G F U N D I N G S E R I E S

June 200

GuideFinding Funding

A to Federal Sources

InitiativesWorkforce Developmefor


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June 2005

GuideFinding Funding:

A to Federal Sources

InitiativesWorkforce Developmentfor

The Finance Project; 1401 New York Avenue, NW, Suite 800; Washington, DC 20005(202) 587-1000, fax (202) 628-1293, www.financeproject.org

By Nannette Relavewith Elizabeth Mendes


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Preface

Introduction Overview

I. Current Context for Financing Workforce Development Services Public Investments in Workforce Development Private Investments Factors Affecting Funding for Workforce Development

II. Overview of Federal Funding Types of Federal Funding Matching Requirements

III. Federal Funding for Workforce Development Services Service Domains and Categories Analysis of Federal Funding Programs by Service Domain

IV. Federal Funding Strategies Maximizing Federal Revenue Selecting Among Funding Sources: How to Choose? Building Partnerships

V. Catalog of Federal Funding Sources

Appendix A: Funding Sources Listed by Federal AgencyAppendix B: Funding Sources Listed by Funding Type

Acknowledgments

About The Finance Project

Table of Contents

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Participation in the workforce, the development ofnew skills, and the acquiring of education and

credentials continue to be key contributors toindividual economic success as well as thecompetitiveness of the national economy in 21st

century America. Workforce developmentprograms and services provide a vital link toemployment opportunities, education and training,and career advancement for disadvantaged youthand adults. In a job market that is demandingimproved basic and technical skills, workforcedevelopment initiative leaders and programdevelopers are challenged to help diverse

populations low-income families, immigrants,out-of-school youth, older workers, and others meet employers expectations, develop the skillsto secure employment and advance, and accessthe supports needed to stabilize in the workforce.While economic and demographic trends heightenthe need for quality workforce developmentprograms that help emergent and incumbentworkers succeed in the labor market, fiscalpressures at the federal and state levels challengepolicy makers and initiative leaders to broadentheir base of funding for critical workforcedevelopment services.

There are a variety of strategies for financingworkforce development initiatives for youth andadults, and typically, successful program leaderswill use multiple approaches to mobilize theresources they need. Included in the portfolio ofavailable financing strategies is making good use

of available federal funds. Federal grant programsoffer a potentially important source of revenue for

starting, operating, and expanding workforcedevelopment initiatives. Maximizing federal fundingcan help leverage other funds, build a moresustainable base of funding, and increase programcapacity. The creative use of these funds can alsosupport and enhance the delivery and coordinationof workforce services and supports. Diversifyingsources of federal funding and making the moseffective use of these funds is especially importanfor workforce development initiative leaders in thecurrent fiscal climate. This Guide to Federa

Funding Sources for Workforce DevelopmenInitiativesprovides a catalog of 87 federal sourcesas well as guidance on accessing federal fundsand strategies for maximizing federal funds andbuilding partnerships.

The Finance Projects mission is to supportdecision making that produces and sustains goodresults for children, families, and communities bydeveloping and disseminating informationknowledge, tools, and technical assistance forimproved policies, programs, and financingstrategies. This guide is part of a series of toolsand technical assistance resources developed byThe Finance Project for The Annie E. CaseyFoundations Making Connections Initiative andother community and workforce developmentinitiatives. The development and publication of thisguide was made possible through the generoussupport of The Annie E. Casey Foundation.

Cheryl D. HayesExecutive Director

Preface

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Introduction

Preparing this countrys workforce to meet theeconomic and technological challenges of the 21st

century is an important national priority. Doing sowill require helping out-of-school youth, dislocatedworkers, immigrants, low-income working families,incumbent workers, and others succeed in a labormarket that is demanding more advanced skills.Federal, state, and local government agencies haveinvested in workforce development initiatives to helpprepare diverse populations for employment andadvancement. A number of national and regionalfoundations have supported initiatives to improveworkforce development systems for low-income

individuals. Sustaining these initiatives over thelong-term is a key challenge for program leadersand policy makers at all levels.

One critical financing option for workforcedevelopment initiative leaders is to gain access tofederal funds. Federal funding, provided by manyagencies through an array of funding mechanisms,can provide significant resources to supportworkforce development activities. Federal funds

can also support coalitions or partnerships workingto develop and strengthen workforce developmentprograms and systems for adults and youth. Forwell-established programs, federal revenue canhelp build program capacity. For smaller or newercommunity-based programs, gaining access tofederal funds is key to creating a more sustainablesupport base.

This guide is intended to help program developers,policy makers, and initiative leaders identify federal

funding sources to support workforce developmentprograms and services for adults and youth. This

guide is one of a set of resources developed byThe Finance Project to support program and policy

leaders in the design, implementation, andsustainability of workforce development programsand services.

Overview of this Guide

This guide provides an overview of strategies fogaining access to and using federal funds, as welas a catalog of 87 funding sources that canpotentially support workforce development

initiatives for adults and youth. The guide includeswell-known sources of funding for workforcedevelopment efforts (e.g., the Workforce InvestmentAct, Temporary Assistance for Needy Families, JobCorps), and less obvious sources like theDepartment of Housing and Urban Developments(HUD) Community Outreach Partnership CentersProgram. The HUD program supports partnershipsbetween institutions of higher education andcommunity groups to create initiatives that include

job training, counseling and mentoring for youth.

Section I of this guide looks at the changingcontext for financing workforce developmentprograms and services. It provides an overview opublic and private investments in workforcedevelopment initiatives. It also outlines some of thekey issues facing policy makers and initiativeleaders, as well as factors affecting current andfuture investments in these initiatives.

Section II describes the various federal fundingmechanisms, their structures and requirements.

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A Note on the Funding Sources Included in This Guide

The 87 funding sources included in this guide are as wide-ranging as the services and activitiesoffered by workforce development initiatives across the country, and as diverse as the populationsand communities served. Not every funding source listed in this guide will be appropriate for everyworkforce development initiative. The suitability of a funding source for a particular initiative will

depend on the specific services or activities offered by a particular program (e.g., job search andplacement, skills training, work experience, transportation and other supportive services), and thepopulation served (e.g., youth or adults, individuals with disabilities, migrant workers, low-incomefamilies). Finally, the relevance of particular programs depends on the initiatives eligibility to applyfor fundssome of the funding sources included in this guide are limited to certain grantees, suchas institutions of higher education, state government agencies, or to specific types of partnerships.Keep in mind, however, that it is important to be aware of the full array of potential resources. Whilean initiative may not be eligible to receive funds directly, it may be able to access resources throughstrategic partnerships with grantee organizations.

Section III presents the framework used to guidethe research of federal funding sources forworkforce development activities. It also analyzesthe broad service domains (e.g., employment,retention, and advancement; education and

training; youth workforce development) used in theframework along with examples of federalprograms that can support activities in each servicedomain.

Section IV highlights strategies for maximizingfederal funds and building partnerships. It includesexamples of initiatives that have successfullyaccessed federal funds to support workforcedevelopment services, and provides tips forimplementing financing strategies.

Section V is a catalog of federal funding sourcesthat support workforce development initiatives.Each entry provides a short description of thefunding source, eligibility requirements, applicationinformation, and contact information. To help

readers identify specific funding sources to supporttheir initiative, each source is also categorizedaccording to the particular activities or services itcan fund.

Appendix A lists the funding sources catalogedin Section V sorted by the federal agencyadministering the funding source.

Appendix B displays the federal programs byfunding type (e.g. block grants; discretionary

grants; direct payment; etc.).

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I. The Current Context for FinancingWorkforce Development Services

Changes in labor market needs, public policy, andlabor force demographics have made a significantimpact on the U.S. workforce. With globalcompetition, technological changes, and thegrowth of a knowledge and service-basedeconomy, even entry-level jobs require more basicand advanced skills than they did several decadesago. And in the coming decades the number of

jobs that require some postsecondary educationwill grow. Preparing workers to meet these skillneeds will be one of the major challenges of the

21st century as the labor force becomes morediverse. Public policy reforms in welfare andworkforce development have led many low-incomefamilies into the workforce. In addition, as workersof the baby boom generation retire and leave theworkforce, labor force growth will be fueled byimmigration and increased participation by ethnicminorities, women, and individuals with disabilities.

At the same time, unemployment remains high

among certain segments of the population, suchas high school dropouts. These trends are creatinga critical need for workforce development servicesthat can upgrade emergent and incumbent workersskills, support working families, and meet theneeds of an increasingly diverse workforce byteaching them basic and technological skills andproviding workplace support. Additionally, theseservices can stabilize the workforce by helpingthose struggling with unemployment or dislocation.Ultimately, helping individuals succeed in the

workforce is critical to personal and family financialstability as well as to the nations economic healthand well-being.

Public Investments inWorkforce Development

Federal Investments

Federal Investments

A variety of initiatives demonstrate that federastate, and local policymakers recognize the needfor workforce development programs to addreslabor market demands, promote employment, an

support economic development. For over 50 yearsthe federal government has invested resources iworkforce development through an array oemployment and training programs administereby a number of federal agencies. The U.SDepartments of Labor, Health and Human ServicesEducation, Housing and Urban Development andothers invest significant resources in employmenservices, job training, and education. Although manfederally-funded programs support workforc

development services, a small number of programspend the majority of funds and resources in thiarea. These programs include WorkforceInvestment Act programs, Temporary Assistance foNeedy Families (TANF) grants, State VocationaRehabilitation Services, and the Job Corpprogram.1 In addition, federal spending opostsecondary education a key component odeveloping the nations workforce is significanand eclipses spending on employment and othetraining services.2

1 U.S. General Accounting Office, Multiple Employment and Training Programs: Funding and Performance Measures foMajor Programs(Washington, D.C., April 2003),12, available at http://www.gao.gov/new.items/d03589.pdf.

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Over time, the federal approach to workforcedevelopment has become more decentralized andcategorical serving specific target populationsand in recent years focusing on employmentservices and job-related outcomes. While a range

of federal resources are available to states,localities, and communities for workforcedevelopment, fragmentation, program silos, andthe categorical nature of funding sources make itmore challenging to access federal funds. Inaddition, funding to provide training or educationto working adults and nontraditional students islimited and difficult to access.

State InvestmentsStates invest their own resources in workforce

development, particularly in the area of skillsdevelopment, to supplement federal programs andcreate their own state programs. Nearly all stateshave state-funded incumbent worker programsfinanced through general fund appropriations,funds tied to the Unemployment Insurance programor other funding mechanisms.3 These programstend to address business needs, support skillupgrading, and promote economic development.Californias Employment Training Panel (ETP) is

the nations largest state-funded customizedtraining program and it pays for training toincumbent and unemployed workers, typically

providing between $70-80 million per year intraining funds.4 In recent years, fiscal challengeshave forced several states to reduce funding forstate-financed job training programs.5

State investments are also an important resourcefor postsecondary education. States invest instudent aid grant programs, appropriate funds forcommunity colleges, provide most of theinstitutional aid to colleges and universities, andprovide funds for nontraditional and disadvantagedstudents.6 The Georgia HOPE Grant program, forexample, is available to state residents who enrollin nondegree programs resulting in a certificate ordiploma.

In addition to helping finance training and educationprograms, a number of states are experimentingwith ways to combine existing workforcedevelopment-related programs and spending suchas U.S. Department of Labor-funded employmentand training programs, vocational rehabilitation,TANF, education, and economic development atthe state level.7 The state of Utah, for example,integrated its TANF program into the UtahDepartment of Workforce Services. State officials

created this department to consolidate jobplacement, job training, and welfare services forgreater efficiency and improved service delivery.

2 Major federal student financial assistance programs financed through Title IV of the Higher Education Act totaled nearly$50 billion in fiscal 2001, see Bosworth, Brian, and Victoria Choitz, Held Back: How Student Aid Programs Fail WorkingAdults (Belmont, Mass.: FutureWorks, April 2002), 1, available at http://www.futureworks-web.com/pdf/Held%20Back%20exec%20summary.pdf. The General Accounting Office identified 44 federal programs that provideemployment and training services representing a combined appropriation of about $30 billion in fiscal 2002, see U.S.General Accounting Office, Multiple Employment and Training Programs, 7.

3 Relave, Nanette, Incumbent Worker Training for Low-Wage Workers, WIN Issue Notes(Washington, D.C., The FinanceProject, October 2003), available at http://www.financeprojectinfo.org/Publications/incumbentworkertrainingIN.htm.

4 See the ETP web site at http://www.etp.ca.gov/m_program.cfm.

5 See Jack Mills and Radha Roy Biswas, State Financing Declines for Job Training: Need for Federal Funding Increases(Boston, Mass.: Jobs for the Future, July 2003), available at http://www.jff.org/jff/PDFDocuments/statefinances.pdf.

6 Bosworth and Choitz, Held Back, 6-10.

7 National Governors Association, A Governors Guide to Creating a 21stCentury Workforce(Washington, D.C., 2002), 31,available at http://www.nga.org/cda/files/AM02WORKFORCE.pdf.



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Local InvestmentsLocalities play a key role in operating the nationsworkforce development system, as issues such asyouth employment, adult training, labor shortages,and job creation are of vital interest to cities and

counties. Supported by a combination of resourcessuch as general funds and revenue from specialtaxes, cities and counties across the nation areworking to improve the effectiveness of theworkforce development system, improve accessto training and quality jobs, and meet the needs oflocal businesses. Cities such as Long Beach, CA,Louisville, KY, and Hartford, CT invest generalfunds to support workforce programs. Over the lastseveral years many localities have devoted citygeneral funds toward summer job programs for

youth. Chicago officials created a program calledTIFWorks that invests Tax Increment Financedollars in a variety of job training and workforcedevelopment initiatives.

Officials in Boston developed Neighborhood JobsTrust to invest in training and skills developmentfor city residents. The Trust is funded by linkagepayments from commercial developmentthroughout the city.8 Funds from the Trust are

helping support the Boston SkillWorks initiative thatseeks to improve Bostons workforce developmentsystem to help low-income residents get familysustaining jobs and help employers find and retainskilled workers. This initiative brings togetherpublic workforce agencies, Boston-area andnational foundations, community organizations,unions, and employers, and is financed through apublic-private investment partnership. Initiativepartners are also working at the state level toincorporate SkillWorks design principles into

statewide workforce development activities.9

Private Investments

Private foundations in recent years have provideddirect operating support for programs as well as

supporting systems change and reform efforts inthe workforce development field. The Annie ECasey Foundation launched the Jobs Initiativeprogram in 1995 to improve the way that urbanlabor markets work for low-income residentsThrough the initiative workforce developmentintermediaries developed and tested a range ofinnovative strategies to help low-incomeindividuals gain access to better jobs. TheFoundations Making Connections initiative, whichfocuses on strengthening families and

neighborhoods, supports local efforts to increasefamilies earnings and income through workforcedevelopment strategies such as buildingmicroenterprise opportunities, providing jobtraining, and supporting job creation. TheFoundations current Family Economic Successapproach looks to integrate workforcedevelopment, family economic support, andcommunity investment strategies to promotegreater self-sufficiency for low-income families.

The Charles Stewart Mott Foundations PathwaysOut of Poverty program provides grants thatpromote policies and programs to help low-income individuals connect to the labor market andadvance into better-quality jobs. In addition, theFoundations Flint, MI-area program supportsworkforce development initiatives to help residentsgain job skills and overcome other barriers toemployment. The Ford Foundations longstandingcommitment to poverty reduction includes

providing grants to organizations that help improve

8 Large-scale construction projects in the city are required to pay a linkage fee, based on square footage, to the NeighborhoodJobs Trust.

9 For more information, see Geri Scott and Jerry Rubin, Reinventing Workforce Development: Lessons from BostonsCommunity Approach(Boston, Mass.: Jobs for the Future, October 2004), available at http://www.jff.org/jff/PDFDocumentsskillworks.web.pdf.



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the way low-income individuals develop skills andobtain living-wage employment, as well as supportresearch, policy analysis, and advocacy. Theseand other initiatives are building resources andknowledge to support the field of workforce

development and the effort to help low-incomeindividuals succeed in the labor market.

Employers invest significant resources in employeetraining, though workers with higher wages andmore education tend to receive more than low-income, low-skilled workers. The AmericanSociety for Training and Developments 2004annual review of trends in workplace learning foundthat the average percentage of payroll invested inlearning increased from 2.2 percent in 2002 to 2.52

percent in 2004.10 Management, informationtechnology, and business processes were amongthe most common training topics.

Factors Affecting Funding forWorkforce Development

Publicly-funded workforce development programshave undergone many changes over time in

mission and goals, target populations, services,administration, and funding.11 Changes in publicpolicy and labor market demands have a majorimpact on the funding environment for workforcedevelopment. Over the last decade there havebeen significant policy reforms that created newopportunities and challenges for programadministrators and community organizationslooking to fund and provide workforce services.

Pending legislative reauthorizations in welfare,workforce development, and education are likelyto alter funding opportunities once again. Inaddition, federal budget deficits might constrainfuture spending on workforce development,

especially if funding for discretionary programsdecreases.

Labor Market IssuesLabor market demands are among the moreimportant drivers of workforce developmentactivities, though funding does not always keeppace with employment needs. Current andprojected demand for workers with improved basicand technical skills and for those with somepostsecondary education stem from global

competition, technological changes, the transitionto a knowledge and service-based economy, andthe aging of the current skilled workforce. As aresult, workforce development providers mustimprove emergent and entry-level workers skillsand help incumbent workers advance. As babyboomers age, labor force growth will come fromimmigrants, ethnic minorities, women, andindividuals with disabilities, creating a greater needfor services such as English literacy training and

workplace supports to accommodate anincreasingly diverse workforce.12 In addition, theBureau of Labor Market Statistics projects growthin the number of jobs requiring somepostsecondary education.13 Working adultspursuing higher education will meet some of thisdemand. However, decreasing support for trainingprograms, a lack of emphasis on career andtechnical education,14 and limited resources for

10

This data is for the Benchmarking Service Organizations sample that includes the broadest range of U.S. organizationsin terms of size and industry. See http://www.astd.org/astd/research/research_reports.

11 See Burt S. Barnow and Christopher T. King, Editors , Improving the Odds: Increasing the Effectiveness of PubliclyFunded Training(Washington, D.C.: Urban Institute Press, February 2000), order at http://www.urban.org/pubs/improving/

12 National Governors Association, A Governors Guide, p. 11.

13Ibid.

14 U.S. General Accounting Office, Highlights of a GAO Forum, Workforce Challenges and Opportunities for the 21st

Century: Changing Labor Force Dynamics and the Role of Government Policies (Washington, D.C., June 2004), availableat http://www.gao.gov/new.items/d04845sp.pdf.



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working adults seeking postsecondary educationwill challenge workforce providers, particularlythose serving individuals with low skills, andworkers to gain the resources necessary torespond to labor market demands.

Welfare ReformWelfare reform legislation enacted in 1996 thePersonal Responsibility and Work OpportunityReconciliation Act (PRWORA) has had asubstantial impact on funding for workforcedevelopment services. By requiring participationin work-related activities for those receiving cashassistance, PRWORA steered many state welfaresystems toward work-focused policies andservices an approach known as work first. This

approach directs welfare agencies to fundemployment services or a combination ofemployment and training, and has influenced otherdevelopments in the field of workforcedevelopment.

PRWORA also granted states the flexibility to useTANF funds for a broad array of workforce andsupportive services for low-income workingfamilies, including those that never received cash

assistance. As a result, TANF has become animportant source of funding in communities foremployment services and work supports. Forexample, in 2003, child care remained the secondlargest use of TANF funds, representing 18 percentof TANF and state maintenance-of-effort (MOE)funding.15

In addition, welfare reform increased statesflexibility to administer programs and servicesthrough grants and contracts to private and

nonprofit organizations, creating new opportunitiesfor workforce providers to access TANF fundingMany states and localities contract out workforcedevelopment and other services and supports folow-income families to private and nonprofit

providers. Service outsourcing exceeded $1.5billion in TANF and MOE funds in 2001 with mostof the funds going to nonprofit providers foreducation and training, job placement, and supportservices to promote job entry or retention.16

Workforce Development System Reform

The Workforce Investment Act of 1998 (WIA) wasdesigned to improve service coordination amongfederally funded workforce development programsand to create a more market-oriented workforce

system. Its implementation has effected howindividuals and service providers access andfinance workforce services under the WIA systemWhile core services such as job search andplacement assistance are available to all one-stopsystem customers, individuals must move througha sequence of services to access limited trainingfunds. The number of individuals trained under WIAhas declined as compared to its predecessor, theJob Training Partnership Act.17

Several elements of WIA, including a strongemphasis on performance accountabilitycertification of eligible training providers, and theuse of training vouchers effect the ability of someproviders, particularly community-based andnonprofit organizations, to deliver services underWIA. Providers must demonstrate positiveemployment outcomes including job retention andwage gains, even for hard-to-serve clients. The shiffrom contracts to vouchers for most training

15 Greenberg, Mark, and Hedieh Rahmanou, TANF Spending in 2003(Washington, D.C.: Center for Law and Social PolicyJanuary 2005), 1, available at http://clasp.org/publications/fy2003_tanf_spending.pdf.

16 For more information, see Evelyn Bandoh, Outsourcing the Delivery of Human Services, WIN Issue Notes(WashingtonD.C.: The Finance Project, October 2003), available at http://www.financeprojectinfo.org/Publications/outsourcinghumanservicesIN.htm.

17 Patel, Nisha, Why Funding for Job Training Matters(Washington, D.C.: Center for Law and Social Policy, May 2004)available at http://www.clasp.org/publications/training_1pager.pdf.



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activities has created client- and cash-flowproblems for some small community-basedorganizations, which may choose not to participatein delivering WIA-funded services.

While the amount of funding under WIA representsa small percentage of total federal resources forworkforce development, as a system-building effortit influences the workforce development communityin many other ways. For example, institutionalizingthe one-stop system and designating required one-stop partners such as Adult Education and Literacy,Trade Adjustment Assistance, and RehabilitationAct programs is supposed to improve coordinationamong programs. It is also expected to leverageresources from multiple federal education and

training programs to support local workforcedevelopment systems and activities.Devolution

Devolution, or shifting responsibility and decisionsaway from the federal government to state and local

jurisdictions, has been a trend in the workforcedevelopment system for over 30 years. In the1970s, the Comprehensive Employment TrainingAct decentralized the administration of public

training programs. In the 1980s, the Job TrainingPartnership Act gave authority to Private IndustryCouncils. WIA created state and local WorkforceInvestment Boards to govern the workforceinvestment system and allocate funds to states andlocalities. In addition, PRWORA grants statessignificant flexibility to use TANF funds forworkforce development. As a result, state and localagencies are key players in workforcedevelopment policy and administration.

Devolution brings flexibility and new responsibilityin terms of program parameters and financing.Flexibility allows state and local leaders to craftprograms that address specific workforce andeconomic development needs. Substantive

workforce reforms have been implemented invarious ways; some have consolidated programsat the state level while others coordinate programslocally.18 To gain greater access to funds, communityleaders and service providers will need to findopportunities to partner or contract with state andlocal agencies.

Pending ReauthorizationsSeveral key federal legislative reauthorizations arepending including TANF, WIA, and the Higher

Education Act, which will likely create newopportunities and challenges for workforcedevelopment policy, programming, and funding.Reauthorization debates reflect policy differenceson critical workforce issues such as the role ofeducation and training in workforce developmentand the level of funding required to meet targetpopulations needs. State and local policy makers,as well as program and community leaders, willneed to stay abreast of the dynamic political and

economic environment to plan for and sustainworkforce development initiatives. Staying on topof policy developments can help state, local, andprogram leaders take advantage of opportunitiesthat new policies and programs create, as well asavoid situations that might threaten long-termsustainability.19

18 See Barnow and King, Improving the Odds.

19 Adapted from Heather Clapp Padgette, Finding Funding: A Guide to Federal Sources for Out-of-School Time andCommunity School Initiatives(Washington, D.C.: The Finance Project, revised January 2003), 9, available at http://www.financeprojectinfo.org/Publications/FundingGuide2003.pdf.



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II. Overview of Federal Funding

Types of Federal Funding

Federal agencies use a variety of mechanisms todistribute funds to states and communities. Eachis designed to serve a particular purpose andcomes with its own rules and requirements.Understanding the various types of funds isimportant as the funding mechanism effects thestrategy used to access a particular funding source.The federal programs listed in this guide areorganized into the following categories:20

1. Formula or Block GrantsFormula or block grants provide states with a fixedallocation of funds based on an established formulathat may, for example, be linked to a statesunemployment rate. States must regularly submita general plan describing the broad functions andpopulation that are served by the grant-receivingprogram to the federal agency that oversees it.States often have flexibility in determining how tospend formula and block grants to meet program

goals. While states are usually the primary granteesunder this funding mechanism, they can furtherallocate funds to localities and other eligiblerecipients through subgrants and contracts. Thisguide identifies 28 formula or block grant programsthat can potentially support workforce developmentactivities. The WIA Adult and Dislocated Workerprogram, Youth program and the TANF program,described below, are formula and block grants thatfund a broad array of workforce developmentservices. Formula and block grants, unlike

entitlement programs, do not guarantee coveragefor all eligible parties.21

Workforce Investment Act (WIA) Adult andDislocated Worker Program.The Adult and

Dislocated Worker program under Title I of WIAprovides funds to states and localities tosupport an array of employment and trainingservices. These include job search andplacement, assessments and career planningbasic and occupational training, andsupportive services for adults 18 years andolder and dislocated workers. Through asystem of local one-stop career centersindividuals access services provided by a setof federally-funded employment, training, and

education programs that are required partnersin the one-stop system. The one-stop careercenters help improve coordination and deliveryof a wide array of services. As such, WIA makesa broader array of federally-funded programsavailable to one-stop customers. Nonprofit andcommunity-based organizations provideworkforce services under WIA in several waysincluding; becoming one-stop system partnersdelivering workforce development services at

one-stop centers, becoming certified aseligible training providers, and serving speciapopulations that face multiple barriers toemployment.

Workforce Investment Act (WIA) YouthProgram. The WIA Youth programconsolidated year-round and summer youthprograms into a single formula-funded programthat supports services for primarily low-incomeyouth, ages 14-21, who have barriers to

employment. WIA requires that ten program

20 In addition to the types of federal funding described in this section of the guide, federal entitlement programs (programsthat serve all individuals who meet eligibil ity criteria) constitute another major type of federal funding. None of the federaprograms listed in this guide are entitlement programs.

21 TANF is not an entitlement program, but its predecessor, Aid to Families with Dependent Children, was an entitlemenprogram.

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Job Corps Program. The Job Corps programis the nations oldest and largest residentialeducation and job training program for at-riskyouth, ages 16 through 24. Due to its intensiveand comprehensive services, it is also one of

the most expensive youth education and trainingprograms. The program serves around 70,000students each year at 118 Job Corps centersacross the country. The centers provideacademic education, vocational training,residential living, and other services to students.Job Corps centers are funded through contractsand may subcontract for additional services andproducts. In addition to center operations,contract opportunities are available foroutreach and admissions activities and for

career transition services such as jobplacement. For more information, visit theDepartment of Labor at http://www.doleta.gov/

jobcorps/jc_index.cfm.

4. Direct PaymentsDirect payments are funds paid by the federalgovernment directly to individual beneficiaries whosatisfy federal eligibility requirements. These

programs may, however, be administered by anintermediate state agency or other organization.The Department of Educations Federal Pell Grant,described below, and Federal Work-Studyprograms are two examples of programs thatprovide direct payments to students to help themfinance the costs of postsecondary education. Thisguide includes eight direct payment programs.

Pell Grant Program. The federal Pell Grantprogram is the single largest source of grant

aid for postsecondary education for low-income students. The program wasappropriated $12.4 billion in fiscal year 2005.

Over five million students receive Pell grantsand most families receiving financial aid earnless than $35,000 a year. The maximum grantis $4,050 and the average grant is around$2,400.23 Despite the size of the program,

there is a funding shortfall, and recent changesto the formula for calculating eligibility couldreduce aid for many students as well as effectstate grant programs that rely on the sameformula. While Pell grants are provided directlyto students, it is important for workforceproviders to understand this key program tohelp their youth and adult clients securefinancing for postsecondary education.

5. Loan ProgramsLoan programs enable individuals, community-based organizations, public and private entities,and some private businesses to borrow funds,sometimes at below-market rates, from public orprivate lenders for specific purposes. Loanprograms can provide funds directly to applicantsor to institutions that act as intermediaries. Thisguide identifies six loan programs that can helpfund workforce development activities such as job

creation and education. The Department ofEducations Federal Direct Student Loans providefunds to vocational, undergraduate, and graduatepostsecondary school students and their parentsto help defray the costs of education. LoanGuarantee programs do not provide loan funds,but provide indemnification to lenders in casethose responsible for loan repayment end updefaulting. Loan guarantees make it moreattractive for private lenders to make riskier loans.Federal Family Education Loans are insured by a

state or private nonprofit guaranty agency andreinsured by the Federal government to encouragebanks and credit unions to make loans topostsecondary education students.

23 Fletcher, Michael, Bush Proposes $500 Boost for Student Aid, Washington Post(January 15, 2005).

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Matching Requirements

Another feature of federal grants and loans thatcuts across different kinds of assistance is the

requirement for matching funds. Under manyprograms recipients must match federalcontributions, usually on a percentage basis.Sometimes these matches must be made withstate or program dollars while other times in-kindcontributions are accepted. For instance, the TANFprogram requires that states each fiscal year mustspend an applicable percentage of their own money(state maintenance-of-effort funds) to help eligible

families in ways that accomplish the programspurpose. Likewise, many discretionary grantprograms, for example the Migrant Education EvenStart program, require the applicant to provide acertain percentage of funding for the project. The

Migrant Education Even Start program providesgrants for family literacy services such as earlychildhood education, adult literacy or basiceducation, and parenting education. Workforcedevelopment program leaders, as they exploreways to tap federal funding sources, will need tolearn about the various types of grants and specificrequirements, such as matching funds, for eachgrant.



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III. Federal Funding forWorkforce Development Services

Service Domains and Categories

To identify the funding programs included in thisguide, The Finance Project first developed aframework of broad service domains to direct theresearch of federal funding sources. Thisframework reflects the major types ofprogrammatic activities and elements thatworkforce development initiatives tend to supportsuch as employment services, job retention and

advancement, and education and training. Theframework contains supportive services thatpromote employment and job retention, andinfrastructure activities that help workforceinitiatives provide services. The frameworkincludes the following five broad service domains:

Employment, Retention and Advancement; Education and Training; Youth Workforce Development;

Supportive Services; and Infrastructure.

Within each service domain, The Finance Projectidentified specific categories of activities andprogram elements that federal programs maysupport. Framework of Service Domains andCategories on pages 26-28 gives details onspecific services and activities in each domain.

Analysis of Federal FundingPrograms by Service Domain

By identifying the service domains and categoriesthat federal programs could support, the catalogof federal programs in this guide can help policymakers and program leaders determine whichfunding programs can support the activities andneeds of a particular initiative. This information canalso help guide strategic planning around financing

and sustainability. The service domains andcategories described in the framework areinterrelated and many funding sources identifiedin the catalog can support more than one set ofactivities. Provided below is an overview of eachof the service domains and examples of federaprograms that can support these kinds of workforcedevelopment activities. The table on pages 47-52identifies, for each federal program included in thecatalog, the activities that the program could

support.

Employment, Retention and AdvancementEmployment, retention, and advancement activitiespromote work-readiness and support therecruitment, hiring, retention, and advancement ofindividuals in the labor market. This service domainincludes job readiness, job search and placementwork experience, job creation, job retention, and

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FRAMEWORK OF SERVICE DOMAINS AND CATEGORIES

Employment, Retention, and Advancement

Job Readiness: Prepares individuals for the labor market, includes soft skills training and

workshops on basic work habits. Job Search and Placement: Promotes the recruitment and hiring of job-seekers such as job

development, training in job search skills, and job search clubs.

Work Experience: Provides direct work experience in public, community, or private sectorworkplaces including unpaid work experience, community service, subsidized employment, andtransitional jobs.

Job Creation: Fosters new employment opportunities such as new business creation, expansionof existing businesses, and tax incentives.

Job Retention/Follow-up Services: Supports job retention and encourages steady employment

of individuals, such as job coaching, counseling, and continuing case management.

Career Counseling and Planning: Assists individuals with career planning and development suchas occupational assessments, goal-setting, and career counseling that promote employmentand training goals and career advancement.

Education and Training

Adult Basic Education/Literacy/GED Attainment: Helps individuals acquire basic skills in reading,writing, math, English language competency, and problem-solving. It includes English as a SecondLanguage (ESL) and GED programs.

Vocational Education and Training: Helps individuals acquire occupational career and technical skills, includes noncredit and credit-based programs.

Postsecondary Education: Includes activities and resources that help individuals participate incredit, certificate, and postsecondary degree programs such as tuition assistance, financial aid,and work-study programs.

Job-Specific Training: Provides individuals with skills directly related to employment includingon-the-job training, incumbent worker training, and customized training.

Skill Upgrade Training: Helps individuals improve existing skills or acquire new ones to updatetheir skill base and enhance employability.

Entrepreneurial/Microenterprise Training: Prepares individuals for business start-up and self-employment such as entrepreneurship and microenterprise training.



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Youth Workforce Development

Basic Education/Literacy: Helps youth acquire basic skills in areas such as reading, writing,math, English language competency, and problem-solving. Programs include English as a SecondLanguage (ESL) programs.

Secondary School Diploma/GED Attainment: Helps youth complete secondary school or earn aGED. Services include tutoring, study skills training, dropout prevention, and GED preparation.

Vocation Education and Training: Helps youth acquire occupational career and technical skills at the secondary or postsecondary levels. Programs include a large array of vocationaleducation programs.

Postsecondary Education: Helps youth connect to and participate in credit, certificate, andpostsecondary degree programs such as academic counseling, enrollment assistance, andfinancial aid.

Work Experience: Provides youth with direct work experience in the public, community, or private

sectors including community service, internships, and summer employment. Follow-up Services: Supports youth in the transition to steady employment or postsecondary

education. Services include counseling and continuing case management.

Leadership Development: Encourages and provides youth with opportunities to developleadership skills such as participation on Youth Councils.

Mentoring: Connects youth with adults who can offer guidance and advice, and connects youth toresources to facilitate their transition to employment or postsecondary education.

Supportive Services

Childcare: Activities and resources to help individuals secure and pay for childcare - includesreferrals, childcare subsidies, and capacity-building activities.

Transportation: Helps individuals obtain transportation needed for employment such as vanservices, auto purchasing programs, and providing transit passes.

Health Care: Helps individuals and their families gain access to health care services, includespublic health insurance program outreach and funding sources for health services.

Nutrition Assistance: Helps individuals and their families meet their nutritional needs, such asmeal programs and food stamps.

Housing: Helps individuals secure stable housing such as home-ownership programs and rentalvouchers.

Wage Supplements: Makes work pay for low-income workers, includes Earned Income Tax Credit(EITC) programs and earnings disregards.

Mental Health/Substance Abuse: Reduces mental health and substance abuse barriers toemployment such as referrals and counseling.

Domestic Violence Prevention: Reduces domestic violence as a barrier to employment such asscreening, safety planning, referrals, and counseling.



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Infrastructure

Technology: Aims to improve technological capacity such as acquiring or upgrading hardware,software, networks, and management information systems.

Facilities: Activities and materials related to capital improvement such as expansions and

upgrades.

Technical Assistance and Training: Provides technical support and/or staff training anddevelopment to organizations providing workforce development and related services, includesdevelopment of technical assistance and training resources.

Case Management: Activities to plan, coordinate, monitor, and evaluate services and supportson behalf of individuals transitioning into employment or further education.

Research and Evaluation: Activities to develop or replicate, test, track, and evaluate researchand demonstration projects related to workforce development.

Labor Market Information/Data: Collects and provides labor market information and data toindividuals and organizations, includes employment statistics and wage data.

System-Building: Assists building or linking systems of supports and services for workforcedevelopment.

Planning/Coordination/Collaboration: Plans and coordinates programs and services in workforcedevelopment.



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career counseling activities. These activities formthe core service offering of many communityworkforce development initiatives, and welfare andworkforce development reforms have emphasizedprovision of such services. Nearly half of the

programs identified in the guide (42) supportemployment, retention, and advancementactivities; most frequently job search andplacement, and career counseling and planning. AGeneral Accounting Office review of federalemployment and training programs supports thisconclusion, finding that more programs reportedproviding employment counseling and job searchand placement activities than any other services.24

This guide identifies programs across a range of

federal agencies that support employment,retention, and advancement activities. Theagencies include the Departments of Labor,Education, and Health and Human Services andthe Small Business Administration These programsinclude federal programs such as WIA, TANF, andTrade Adjustment Assistance as well as smallerprograms such as Refugee and Entrant Assistance.Workforce development initiative leaders shouldthink broadly about funding opportunities and

potential partners for activities in this servicedomain. Some funding sources such as WIA cansupport a range of activities for diverse populationswhile other funding sources support a particularworkforce activity or target a particular population.Examples of the latter include Job Opportunitiesfor Low-Income Individuals (JOLI), which funds jobcreation, and Employment Programs for Peoplewith Disabilities, which targets persons withdisabilities.

Education and TrainingEducation and training activities build knowledgeand skills to enhance employability and promoteadvancement in the workforce. This guide includes58 federal programs that support a broad rangeof education and training activities including basic,vocational, and postsecondary education; job-

specific and skill upgrade training; andmicroenterprise training. While education andtraining are key components of workforcedevelopment, declines in WIA and TANF resourcesfor these activities have generated concern that

there is insufficient federal funding for training low-income individuals. Workforce developmentprogram leaders will need to focus on a broaderset of resources to help their clients gain accessto education and training opportunities. These mayinclude federal funds for postsecondary educationfederal programs for targeted populations such asveterans, Native Americans, public housingresidents, and migrant workers; as well as statefunds for education and worker training. As thisguide illustrates, many federal programs beyond

WIA and TANF may support basic, vocational, andpostsecondary education and job skills trainingthrough grants as well as direct payments andloans.

In addition, initiative leaders might want to look tofederal programs where funds have grown in recentyears such as the Department of Labors TradeAdjustment Assistance and National PilotsDemonstrations, and Research programs. Since

federal spending on postsecondary education issignificant, program leaders and staff should knowabout Pell grants, Work-Study programs and othesources of federal student financial aid to help theirclients understand and access federal resourcesfor higher education. Creating linkages withcommunity colleges, universities, and othereducational institutions can facilitate access toacademic and vocational programs, and may openopportunities for workforce providers to partner intraining initiatives.

Youth Workforce DevelopmentYouth workforce development initiatives helpdisadvantaged and at-risk youth prepare forproductive employment or postsecondaryeducation. Education and training activities thatprovide basic or vocational skills, help youth

24 U.S. General Accounting Office, Multiple Employment and Training Programs, 7.



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complete high school, and help youth pursuepostsecondary education are key components ofyouth workforce development. These kinds ofprograms and activities can help youth stay inschool and improve academic achievement, job

skills development, and career preparation.Another important element of youth workforcedevelopment is work experience, as it helps youthdevelop job-related skills as well as provides themwith valuable experience. Youth developmentactivities, such as mentoring and leadershipdevelopment, that foster social, emotional, and lifeskills are key features of many youth workforceinitiatives and an integral part of the WIA Youthprogram.

In all, the guide includes 47 programs that cansupport workforce development activities for youth,most frequently educational activities includingbasic, vocational, and postsecondary education.This reflects the importance of education in careerdevelopment. In addition to federal programs thatcan support workforce development for youth andadults, this guide identifies programs thatspecifically target youth for services. These includeprograms such as Job Corps, WIA Youth,

Education for Homeless Children and Youth, andGrants to States for Incarcerated Youth Offenders.To maximize federal resources, youth workforcedevelopment initiative leaders will want to evaluatethe potential of youth-focused federal programs andones that serve youth and adults to fund theiractivities. TANF, for example, can help to supportschool dropout prevention programs. Initiativeleaders will also want to collaborate withcommunity partners such as schools, colleges, andcommunity-based organizations, as well as

maintain linkages with the WIA Youth Council, tocoordinate services for program participants andaccess additional federal resources.

Supportive ServicesSupportive services such as transportation,childcare assistance, and domestic violenceprevention help workers meet basic and work-related needs, thus increasing employment and job

retention. These services play a critical role insupporting low-income individuals and workingfamilies in their employment efforts. Low earnings,costs related to working, and limited access to job-related benefits make it difficult for low-wageworkers to maintain steady employment.Supportive services encompass a range ofactivities and programs including information andreferral services, counseling, in-kind benefits,subsidies, and wage supplements, such asEarned Income Tax Credit programs.

This guide identifies 22 federal programs that canbe used for supportive services in addition toworkforce development activities such as trainingand employment services. These programs canmost frequently support transportation assistance,an essential work support for individuals withoutreliable or affordable transportation. Around halfof the 22 programs support other important worksupports for disadvantaged individuals including

childcare, housing, and health care services. Onlya small number of programs in this guide supportnutritional assistance, domestic violenceprevention, mental health and substance abuseservices, or wage supplements.

Program leaders should consider using federalfunds for supportive services along with workforcedevelopment activities to promote programparticipation, employment, and job retention. Theprograms in this guide that fund supportive

services formula and block grant programs, anddiscretionary grant programs include severalmajor federal funding sources such as TANF, WIA,



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Community Services Block Grant, and ChafeeFoster Care Independence Program. TANF is aparticularly important funding source for servicessuch as childcare assistance as it supports welfarerecipients and other low-income individuals

transition into the workforce.

InfrastructureWorkforce development services are made moreeffective when the surrounding infrastructure,including the public and private systems andinitiatives that provide supporting services, caneffectively meet the demands of people enteringthe workforce. Therefore, workforce developmentinitiative leaders also need to secure funding forstaff training, case management, planning and

coordination, and upgrading technology andfacilities. This guide identifies 44 programs thatsupport one or more infrastructure activitiesTechnical assistance and training for workforcedevelopment initiatives are supported by many o

these programs including WIA, TANF, Adult andVocational Education State Grants, and ResidentOpportunities and Supportive Services. A numbeof programs also support planning andcoordination activities, research and evaluationand case management. Several programs supporttechnology or facility improvements, but initiativeleaders that want to upgrade in these areas mayneed to identify other funding sources as well asthose listed in this guide.25

25 For additional information on financing facility improvements, see The Finance Projects guide to developing a facilitiesfund: Amy Kershaw, Making Space for Children: A Toolkit for Starting a Child Care Facilities Fund(Washington, D.C.: TheFinance Project, October 2000), visit http://financeproject.org/TFPPubs.asp#Financing%20Strategies.



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IV. Federal Funding Strategies

Despite growing demands for qualified workersand a critical need to help low-income individuals

procure satisfactory employment, workforcedevelopment initiative leaders still struggle to findfunds to support their activities.26 While manyprograms support particular activities or specificcomponents, funding sources can be fragmented,categorical, have complicated requirements, andpresent other difficulties that make accessing thema challenge. Thus, starting and sustainingworkforce development initiatives requires pullingtogether a variety of funding sources from publicand private sectors. It is crucial to be strategic

about financing and think broadly and creativelyabout what funds and resources are necessary,evaluate existing financial sources, align funds withprogram goals, and come up with strategies foraccessing further resources.

Strategic financing requires clearly identifying thenecessary supports to sustain a program orinitiative and then systematically assessing the fullrange of possible resources to determine the most

appropriate approach toward fulfilling a programor initiatives needs and circumstances. A strategicfinancing approach includes maintaining a diverseportfolio of funds that are aligned with programgoals. A diverse portfolio include a balance of short-and long-term sources as well as an array offederal, state, local, and private sources.

Initiative leaders should use the most appropriatefunding source to support a particular programcomponent. For example, a more stable and long-

term funding source, like the Child Care andDevelopment Fund or TANF, is a good choice forfinancing ongoing operating expenses such aschildcare assistance for program participants.Using available federal dollars this way frees upthe time-limited grant dollars for other uses, such

as piloting a new program component. Building adiverse array of funding sources and using each

one in a way that best matches its characteristicshelps to ensure a programs survival and avoidsputting it into jeopardy when a grant runs out or afinancial source is threatened.

This guide focuses on two distinct butinterdependent strategies for meeting financiagoals: maximizing federal revenue, and buildingpartnerships. Success in accessing federal fundsoften depends on the ability of an initiative to forgesolid partnerships with compatible o

complementary organizations in the communityOne advantage of partnerships is that they oftenextend the reach of public sector funds by usingthem to leverage additional public or private fundsHowever, to achieve a diverse portfolio of fundingsources, initiative leaders should consideradditional financing strategies described below inaddition to the federally-focused ones describedhere.

Maximizing Federal Revenue

For many workforce development programsfederal funds are an important piece of the fundingportfolio. Initiative leaders efforts to maximizefederal funding can substantially expand thefunding base for programs, provide stablerevenues, and free up existing funds for otherpurposes. There are several types of federafunding and each has its own set of procedures

for allocating funds (see pages 19 for a definitionof each funding type). Strategies and tactics foallocation also differ depending on whether fundingis at the program, community, or state level. Whiletime-consuming to access, block or formula grantssuch as WIA and TANF can provide stable long-term funding and may be worth the initial effort to

26 Adapted from Padgette, 15-27.

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FINANCING STRATEGIES FOR WORKFORCE DEVELOPMENT INITIATIVES:AN OVERVIEW

Program developers and initiative leaders can implement five broad categories of financing strategies tosupport workforce development programs and services.1 Strategies can be implemented at the programlevel or be targeted toward systems-level reforms at the county or state levels. The most appropriatestrategy or combination of strategies for an initiative depends on its general nature, its stage of development,and the economic and political environment in which it operates.

Strategy 1: Making Better Use of Existing ResourcesEnsuring that current resources are spent in the most effective and efficient way helps prevent the need toconstantly seek additional funding sources. Efforts to make better use of existing resources includecoordinating and streamlining services to reduce administrative costs, creating greater efficiency by makingbetter use of in-kind resources, and taking advantage of economies of scale.

Strategy 2: Maximizing Federal Revenue

Maximizing federal revenue involves identifying relevant federal resources, understanding the flow of variousfederal funding streams, learning which decision makers control funds allocations in your state or community,and developing a plan for making the best use of federal revenue.

Strategy 3: Creating More Flexibility in Existing Categorical FundingIncreasing flexibility in funding streams involves coordinating funding streams and aligning programrequirements. This minimizes difficulties getting recipients to qualify, in tracking funds allocation, and inreporting. This strategy is typically pursued at the state or federal level.

Strategy 4: Building PartnershipsBuilding partnerships with various players in the community, including public and private entities, cangreatly expand the base of public support for programs, provide leadership and technical resources, andleverage new funding opportunities.

Strategy 5: Creating New Dedicated Revenue StreamsDedicated revenue sources raise or direct public- and private-sector funds for specific purposes. Theyare generated privately through fundraising, charging fees, and taking advantage of opportunities for unrelatedbusiness income. They can also be generated publicly by state and local governments through the creationof special taxing districts, special tax levies, trust funds, and other narrowly-based taxes.

The selection of a particular financing strategy depends on the size, scope and developmental stage ormaturity of the initiative. For instance, a small or new initiative (e.g. a single program) is more likely tosupport a single activity or program, while a larger (e.g. citywide) or more mature initiative (one that has

developed strong community support) is more appropriate for systems-building work focused on supply,accessibility, and quality issues. Some of the more complex strategies, such as establishing new dedicatedlocal revenue sources or creating more flexibility in existing revenue streams, may be more appropriate forlarger, established initiatives. Other strategies such as making better use of existing resources, are relevantto all initiatives. However, smaller or newer initiatives should not be deterred from pursuing more complexstrategies; rather, it is important to evaluate the potential of each strategy given the particular circumstances

of each initiative.

1 Adapted from Cheryl D. Hayes, Thinking Broadly: Financing Strategies for Comprehensive Child and Family Initiatives(Washington, D.C.: The Finance Project, March 2002).



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ACCESSING WIA TO SERVE INDIVIDUALSWITH MULTIPLE BARRIERS TO EMPLOYMENT

WIA allows contracts for adult training services in programs of demonstrated effectiveness that serve

special participant populations facing multiple barriers to employment such as offenders and peopleoften served by community-based and other nonprofit organizations. The Center for EmploymentOpportunities (CEO), an independent nonprofit corporation, offers a highly structured, job-focusedset of employment services to men and women returning from prison and other ex-offenders undercommunity supervision in New York City. CEO intervenes immediately after release, providing pre-employment training, short-term work crew experience, and long-term job development servicesleading to support through the first year of permanent employment. Though it is serving a populationthat faces substantial barriers to employment, CEO has demonstrated positive employment outcomesfor its clients. CEO is taking part in several evaluation studies and is a nationally recognized model.By providing effective services to former inmates and clearly documenting its results, CEO has beenable to receive WIA funding for special populations with multiple barriers to employment through a

contract with the New York City Department of Small Business Services. WIA helps fund CEOsextensive job development activities. In addition, WIA funds help to support the Rikers Island Initiativefor which CEO is providing services. Rikers Island Initiative is a multi-agency, public/private partnershipinitiated by New York City officials to engage city-sentenced inmates leaving Rikers Island intransitional work experience and job placement activities.

Contact: Laura Brenden, Center for Employment Opportunities, 212-422-4430 or visit http://www.ceoworks.org/homepage.htm.

LEVERAGING RESOURCES FOR YOUTH WORKFORCE DEVELOPMENT INOREGON

Portland, Oregons youth workforce investment system uses the citys network of high-qualityalternative education programs to provide comprehensive education, training, employment, andretention services to in- and out-of-school youth.1 Worksystems, Inc. is a nonprofit organization andits board serves as the local workforce investment board. It contracts with youth service providers forWIA-funded youth services. Out of the 12 WIA youth contractors, eight are community-based alternativeeducation programs that also receive funds from the local school system. By accessing andcoordinating workforce development and education funds, these alternative education programsare able to provide education, training, and employment services to a larger pool of at-risk youth inthe community. Blending resources at the provider level helps move policy and program leaders to asystem-level discussion of using diverse resources to build the youth workforce investment system.

Contact: Sharon McFarland, Worksystems, Inc., 503-478-7341 or visit http://www.worksystems.org/youthServices/youthServices.shtm.

1 For a detailed profile, see Jobs for the Future, Profiles of Partnerships, Programs, and Practices to Illustrate the U.S.Employment and Training Administrations New Vision for Youth Services (Boston, Mass., October 2004), 10-16,available at http://www.jff.org/jff/PDFDocuments/ProfilesPPP-Doleta.pdf.



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USING TANF TO SUPPORT WORKFORCE DEVELOPMENT ACTIVITIES

Home Care Associates (HCA) in Philadelphia, Pa., is a home care agency that trains and employslow-income individuals to work as home health aides. Many of its trainees and workers are women

transitioning from welfare to work. HCAs reputation for high-quality home health aide training, itssuccess in employing training graduates, and its retention of employees through support, incentives,and additional training enabled the company to receive substantial TANF-funded contracts from thePennsylvania Department of Public Welfare. It uses the funds to train and support welfare recipients.HCAs intensive training program it provides twice as many training hours as required by Medicare

teaches basic medical skills with an emphasis on soft skills and job readiness. The companyprovides new home health aides with case management and work supports such as transportationassistance provisions crucial to welfare recipients success in entering the workforce. In additionto public funds, HCA supports its activities with foundation grants as well as revenue generated byits home health aide services.

Contact: Tovah Poster, Home Care Associates, 267-238-3237 or visithttp://www.homecareassociatespa.com/index1.htm.

TIPS FOR ACCESSING BLOCK OR FORMULA GRANTS

Block or formula grants provide a fixed allocation of funds to states or other government entitiesbased on an established formula. Generally speaking, block grant administrators at the state levelhave wide discretion in allocating funds within broad federal guidelines. Block grant funds requireadditional time and energy to access, as the funds generally flow through state-level agencies thatmaintain specific priorities and agendas, but they can be a sizable source of long- term, stable

funding.

Be familiar with the state plan. For each block grant, the federal government requires statesand other entities receiving funds to engage in a formal consultative planning process on a regularbasis. Review the state plan, available from the administering state agency, to determine howthe goals and priorities of your initiative line up with those of the state plan.

Get to know the decision makers. It is important to know the people responsible for allocatingblock grants and to promote a proposed initiative or program in such a way that it will appeal tothose making the final decision. Depending upon the particular block grant and how it isadministered, the decision makers may be at the state, county, or city level. Find the key officials

within that agency, such as workforce investment board members, and build relationships withthem. Schedule meetings with key officials to introduce them to your initiative, and add them toyour mailing list to keep them informed of developments.

Create or join a coalition. Coalitions can provide access to current information on workforcedevelopment-related issues for youth and adults. They also provide opportunities to join in organizededucation and outreach efforts. Influencing allocation of block grant dollars is essentially a lobbyingeffort and a message carries more weight when delivered by a consortium of groups bandedtogether in a single request.



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FUNDING A YOUTHBUILD PROGRAM IN WASHINGTON, D.C.

The Latin American Youth Center (LAYC) in Washington, D.C. has run a Youthbuild program for 10years. It provides academic support, construction skills, and leadership training to disadvantaged

youth ages 16 to 24 who have serious barriers to employment such as substance abuse, low literacy,and behavioral problems. The grants for Youthbuild programs such as LAYCs are awarded annuallythrough a very competitive process. LAYC has received a HUD Youthbuild grant eight times. Buildingpartnerships and leveraging additional funds are critical to successful grant applications and runningYouthbuild programs. LAYC has partnered with organizations such as a community health center, alow-income housing developer, and the D.C. Department of Human Services. The organizationleverages additional funds for its Youthbuild program from WIA youth funds available through theD.C. Department of Employment Services; funds from the Children and Youth Investment TrustCorporation, a local public-private partnership; and funds from the Fannie Mae Foundation. In addition,LAYC staff has developed the technical expertise needed to complete HUDs complex grantapplication process for Youthbuild. In 2005, LAYC is transitioning its Youthbuild program into a charter

alternative school that will open in September. This transition will allow LAYC to improve sustainabilityof its Youthbuild program by gaining access to local educational dollars and providing moreeducational resources and services to program participants.

Contact: Patricia Bravo, Latin American Youth Center, 202-518-0601 or visit http://www.layc-dc.org.



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TIPS FOR ACCESSING DISCRETIONARY/PROJECT GRANTS

Discretionary grants, sometimes called project grants because of their targeted focus, are awardeddirectly to applicants through a competitive bidding process. An application for a discretionary grant

does not guarantee an award, and the amounts awarded are not based on a formula. The followingare some tips on identifying discretionary grant opportunities and developing strategies for accessingthem. Learn about the various programs and deadlines. This guide outlines more than 40

discretionary grant programs. Keeping up with programs and their deadlines is important. Federalagencies publish notices of fund availability in the Federal Register, and there are many ways tomonitor what funds are available and when they are available.

Funding outlooks published on federal agency websites. These outlooks are usuallypublished annually and provide information on grant opportunities that will be open in thecoming year, as well as a schedule of availability.

Grants.gov. This web site, accessed at http://www.grants.gov/, allows grant-seekers to findand apply for competitive grant opportunities from all Federal grant-making agencieselectronically. Search categories include Employment, Labor, and Training. Grants.gov alsohas an email notification service.

Employment and Training Reporter. This subscription-only weekly newsletter publishedby MII Publications covers the range of federal, state, and local workforce developmentprograms for economically disadvantaged and displaced workers, and periodically highlightsfunding opportunities. For more information, see http://www.miipublications.com/etr.htm.

Create partnerships to expand funding options. Partnerships open up many new avenuesof funding that might not otherwise have been available to individual organizations. Moreover,many discretionary grants now requirecollaboration among two or more entities from thecommunity. See the Building Partnershipssection below.

Identify shared funding needs and apply as a consortium. To minimize grant writing costs,consider applying for various discretionary grants jointly with other groups from the communitythat share similar funding needs.



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secure. In general, initiative leaders should startwith a clear idea of what they are financing andpursue options that will result in the most significantreward.

In addition to block and formula grants there aremany discretionary grants available from differentfederal agencies that can fund specific programcomponents and fill shorter-term funding gaps.Discretionary grants often have an extensive andlabor-intensive application process and requiresidentifying and working with a range of partners.The Department of Housing and UrbanDevelopments (HUD) Youthbuild program and theDepartment of Labors Senior Community ServiceEmployment Program are two discretionary grant

programs that have been used to support workforcedevelopment initiatives.

Selecting Among FundingSources: How to Choose?

When considering various funding sources, federalor otherwise, there are a number of factors to keep

in mind. Carefully weighing the following criteriawill help direct where to focus efforts.

Mission: Does the funding source fit withthe mission? Rather than spending energyand resources following up on all availableopportunities, it is important to discern whetherthe funding source supports your programsgoals. Be creative in framing your program tointerest new funders, but not to the point ofretooling the programs mission just to fit the

whim of every new grant opportunity.

Use of Funds: Does the funding sourcesupport the right activities? Some federalfunding sources can support an array ofservices and activities, while others reserveresources for specific populations or services.It is important to find out when applying if afunding source will support the services,

activities, and expenditures designated forfunding.

Added Value: Do the benefits outweigh thecosts? Many federal funding sources have

significant reporting and/or eligibility verificationrequirements. Also, creating and maintainingthe partnerships required by some fundingsources takes time and effort. It is important tohave a clear understanding of the costs versusthe benefits of participation in these programsIn some cases, the administrative costs mayoutweigh the financial returns.

Diversified Portfolio: Does the fundingsource expand or create balance in your

portfolio? While this guide focuses onmaximizing federal funds, it is important tocreate a diverse portfolio of resources aspolitical and economic changes and alteredpriorities can significantly affect grantavailability. Ideally, a portfolio should contain anappropriate mix of short-term and long-termand categorical and flexible funding sourcesfrom public and private entities, and state, locaand federal departments and programs.

Politics: Is accessing this funding sourcepolitically feasible? When considering a newfunding source, its important to assess thepolitical ramifications if it pits your initiativeagainst other community partners. This canhappen if the funding source has an entrenchedconstituency from whom you may be takinglimited resources.

Building PartnershipsMaximizing federal revenue and buildingpartnerships are strategies that build on eachotherfederal dollars help attract and leverageresources from potential partners, and partnershelp attract more federal dollars. Partnershipsbetween government agencies, community non-profit organizations, educational institutions



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employers, and charitable foundations providevaluable avenues for accessing funds andbroadening support for workforce developmentinitiatives. Although each public-private partnershipis unique, effective partnerships share several key

characteristics:27

They bring together representatives fromfederal, state and/or local government entities,businesses, philanthropic organizations,educational institutions, and communityorganizations to work toward a commonagenda.

All partners contribute time, money, expertise,and other resources and in return gain

opportunities from working together.

Partners work together toward common goalsand objectives for youth, adults, and workingfamilies.

For many workforce development initiatives,collaboration is the key to accessing a variety offunding sources, particularly at the federal level.Federal funds often flow to a variety of entities

including local government, community-basedorganizations, or institutions of higher education.Collaboration brings many benefits to workforcedevelopment programs, including:

increased funding opportunities some grantsmay be available to one of the partners (e.g.,an institution of higher education or a workforceinvestment board) and not others;

shared time and cost burden of writing grants;

elimination of duplication of effort; and

new champions and community supportdeveloped for the initiative.

Every community and region has a variety of publicand/or private organizations that program leadersturn to for support. Program administrators shouldbe strategic about seeking partners, keeping inmind that many local groups and organizations

benefit from workforce development programs.Government leaders, employers, businessassociations, unions, philanthropic organizations,human service professionals, communityorganizations, economic development agencies,parents, and educators all have a stake in ensuringthat youth and adults have access to workforcedevelopment programs. In addition, public entitiessuch as city and county governments, TANFagencies, and workforce investment boardsadminister and allocate money that comes to the

community from federal and state sources. Thismoney can be directed toward workforcedevelopment activities and partnerships with thepreviously mentioned agencies can pay off in manyways.

While these two strategies building partnershipsand maximizing federal funds are not the onlystrategies used in developing a strategic financingplan, they are an important first step. These two

strategies require thinking broadly and creativelyabout the benefits and advantages your initiativebrings to the community. Program leaders thatsuccessfully access a wide variety of fundingsources, including federal funds, are able tocreatively frame their initiative by understandingthat different goals can be accomplished throughthe same means. For example, a youth-focusedworkforce development initiative can be promotedas a strategy to build occupational skills as well asa deterrent to juvenile crime and teen pregnancy.

This kind of thinking opens the door to a variety offunding streams. The ability to creatively frame aninitiative also helps when attracting partners. Whiledifferent parties may have diverse reasons for

27 Deich, Sharon, A Guide to Successful Public-Private Partnerships for Out-of-School Time and Community SchoolInitiatives(Washington, D.C.: The Finance Project, January 2001).



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being at the table, they need to feel that they areworking toward common goals. Whether it is abusiness that wants to develop future employeesskills, a youth-serving organization looking for newfunding opportunities, or a school that wants to

provide additional vocational training opportunities,all partners stand to benefit from the partnerships.

POTENTIAL PARTNERS FOR WORKFORCE DEVELOPMENT INITIATIVES

Partnerships provide opportunities for workforce development initiatives to access funding and in-

kind support, leadership, and technical assistance. Many federal programs now requirecollaborativearrangements. When looking for potential partners, program leaders should consider the following:

Business leaders

Unions

Local Workforce Investment Boards

Local TANF agencies

One-stop career centers

Employment Service agencies

Community development corporations

Neighborhood associations

Public Housing Authorities

Economic development organizations

Vocational rehabilitation providers

Local health departments and health care organizations

Schools and school districts (also called local educational agencies)

Literacy programs

Colleges and Universities

Faith-based organizations

Local business organizations (e.g. the Chamber of Commerce)

Youth-serving organizations

The following section of the guide contains acatalog of federal programs that can supportworkforce development initiatives. Each fundingsource entry includes a short description of thefunding program and eligibility and application

information.



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MAKING EFFECTIVE USE OF PARTNERSHIPSTO EXPAND FUNDING OPTIONS

Dont limit federal funding options to grants that can be applied for directly. Learn about entitiesin your community that share similar goals and explore new partnerships.

Think strategically when identifying potential partners. Build collaboration into the sustainability

plan.

Dont wait until a grant notice appears to begin thinking about collaboration. Building partnershipstakes time and effort, but it will pay off by helping gar