Workforce Investment Act: Implementation Status and the Integration of
TANF Services (Testimony, 06/29/2000, GAO/T-HEHS-00-145).
Pursuant to a congressional request, GAO discussed the Workforce
Investment Act (WIA) and the integration of services at one-stop centers
provided under the Temporary Assistance for Needy Families (TANF) block
grant, focusing on: (1) the status of states' efforts to implement WIA
and the extent to which TANF services are integrated into the new
workforce investment system; (2) the challenges states and localities
have encountered in establishing their integrated systems under WIA; and
(3) service delivery approaches that show promise in integrating and
streamlining services in the one-stop centers.
GAO noted that: (1) while states are making progress implementing WIA,
not all of them will have completed all implementation steps by July 1,
2000, when WIA takes full effect; (2) frequently delayed are the steps
related to establishing formal agreements between partners at the
one-stop centers; (3) to support the one-stop system required under WIA,
states report using multiple federal funding streams during fiscal year
2000 with the top funding sources most often coming from Department of
Labor programs, such as WIA, the Employment Service, and Unemployment
Insurance; (4) although TANF is an optional partner with WIA, linkages
between WIA and TANF are being forged in most states; (5) as states and
localities have attempted to integrate their services under WIA, they
report having confronted several challenges including: (a) the
difficulties of building partnerships with other agencies, as required
under WIA; (b) developing the infrastructure to support an integrated
program--including both the physical facilities and the computer
systems; and (c) developing an integrated approach and responding at the
same time to the requirements of individual federal programs; and (6)
despite these challenges, GAO found that states are developing
integrated service delivery approaches that show promise, often focusing
their efforts on resolving the issues that had been found in the
fragmented employment training system.
--------------------------- Indexing Terms -----------------------------
REPORTNUM: T-HEHS-00-145
TITLE: Workforce Investment Act: Implementation Status and the
Integration of TANF Services
DATE: 06/29/2000
SUBJECT: Workfare
Employment or training programs
State-administered programs
Disadvantaged persons
Program graduation
Public assistance programs
Federal/state relations
Management information systems
IDENTIFIER: HHS Temporary Assistance for Needy Families Program
DOL One-Stop Center System
DOL Employment Service Program
Unemployment Insurance Program
DOL One-Stop Planning and Implementation Grant Program
DOL Employment and Training Assistance for Dislocated
Workers Program
Dept. of Education Vocational Rehabilitation Program
Food Stamp Employment and Training Program
DOL One-Stop Operating System
Florida
Ohio
Wisconsin
Utah
Kentucky
Oregon
Texas
******************************************************************
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GAO/T-HEHS-00-145
For Release on Delivery Expected at 2: 00 p. m. Thursday, June 29, 2000
GAO/ T- HEHS- 00- 145
WORKFORCE INVESTMENT ACT
Implementation Status and the Integration of TANF Services
Statement of Cynthia M. Fagnoni, Director Education, Workforce, and Income
Security Issues Health, Education, and Human Services Division Testimony
Before the Subcommittee on Postsecondary Education, Training and Life- Long
Learning, Committee on Education and the Workforce; and the Subcommittee on
Human Resources, Committee on Ways and Means, House of Representatives
United States General Accounting Office
GAO
Page 1 GAO/ T- HEHS- 00- 145
Mr. Chairman, Madam Chairman, and Members of the Subcommittees: Thank you
for inviting me here today to discuss our work on the Workforce Investment
Act (WIA) and the integration of services at onestop centers, including
those provided under the Temporary Assistance for Needy Families (TANF)
block grant. Two years ago, the Congress passed WIA to begin unifying a
fragmented employment and training system– creating a new,
comprehensive workforce investment system. At its core, WIA focuses on
integrating and streamlining services, requiring most employment and
training services be provided through a single system, called the One- Stop
Center System. The degree to which services are integrated and the form of
service integration have generally been left to the states and localities to
decide. In general, WIA provides for greater local control and closer
coordination among employment and training programs than before. While
several programs are required by the Act to provide services through the
one- stop centers, others have been left to the discretion of state and
local officials, including the TANF block grant program (a major federally
funded assistance program that makes available to states up to $16.8 billion
each year through 2002 to provide needy families with income support and
employment- related assistance). With the passage of WIA, the nation's
workforce development and TANF programs now share similar goals– a
focus on employment and a movement toward greater state and local decision-
making.
As you requested, my remarks today focus on (1) the status of states'
efforts to implement WIA and the extent to which TANF services are
integrated into the new workforce investment system, (2) the challenges
states and localities have encountered in establishing their integrated
systems under WIA, and (3) service delivery approaches that show promise in
integrating and streamlining services in the one- stop centers. My testimony
is based on a survey we conducted during April and May 2000 of workforce
development agency officials in each of the 50 states, and fieldwork
conducted from January to April 2000 in five states that were early
implementers of WIA, with additional visits to several wellestablished one-
stop centers in states that were not yet implementing WIA. 1
In summary, while states are making progress implementing WIA, not all of
them will have completed all implementation steps by July 1, 2000,
1 Site visits included Kentucky, Florida, Oregon, Texas, and Utah. Fieldwork
also included local visits to sites in Chicago and Mattoon, Illinois;
Baltimore, Maryland; Dayton, Ohio; and Janesville and Racine, Wisconsin.
Workforce Investment Act: Implementation
Status and the Integration of TANF Services
Workforce Investment Act: Implementation Status and the Integration of TANF
Services
Page 2 GAO/ T- HEHS- 00- 145
when WIA takes full effect. Frequently delayed are the steps related to
establishing formal agreements between partners at the one- stop centers. To
support the one- stop system required under WIA, states report using
multiple federal funding streams during fiscal year 2000, with the top
funding sources most often coming from Department of Labor programs, such as
WIA, the Employment Service (ES), and Unemployment Insurance. Although TANF
is an optional partner with WIA, linkages between WIA and TANF are being
forged in most states. As states and localities have attempted to integrate
their services under WIA, they report having confronted several challenges
including
the difficulties of building partnerships with other agencies, as required
under WIA;
developing the infrastructure to support an integrated program–
including both the physical facilities and the computer systems; and
developing an integrated approach and responding at the same time to the
requirements of individual federal programs.
Despite these challenges, we found that states are developing integrated
service delivery approaches that show promise, often focusing their efforts
on resolving the issues that had been found in the fragmented employment
training system.
For well over a decade, states and localities have engaged in efforts to
integrate their employment and training programs, often using a structure
called a one- stop center that provides access to many employment- related
services in a single location. With the passage of WIA in 1998, states and
localities are now required to use one- stop centers to provide most
federally funded employment and training services. However, services funded
by TANF, a key program that provides employment, income support, and other
assistance to low income adults with children, are not a mandatory part of
this one- stop center system, and the degree to which TANF services have
been provided through the one- stop centers has historically varied from
state to state.
States and localities have worked to integrate the services of the various
federally funded employment and training programs. Some of these programs,
such as ES, provided services, such as counseling, testing, and job
referrals, to all job seekers without regard to economic or employment
status. But other programs, such as the Job Training Partnership Act (JTPA),
provided services- such as training and job placement Background
Early Efforts Seek to Integrate Employment and Training Services
Workforce Investment Act: Implementation Status and the Integration of TANF
Services
Page 3 GAO/ T- HEHS- 00- 145
assistance– only to targeted groups of individuals, such as
economically disadvantaged or dislocated workers. While many of the programs
shared similar goals, their services were rarely coordinated, creating an
environment of confusion and frustration and hampering efforts to help job
seekers get and keep a job. 2 In fiscal year 1994, Labor began awarding One-
Stop Planning and Implementation Grants to help states integrate employment
and training services for Labor- funded programs. The key objectives of this
one- stop initiative, aside from integration, were to create a system that
was customer- driven, accountable for its outcomes, and made its core
services available to all job seekers. 3 By 1998, all 50 states had received
at least some implementation grant funds.
When WIA was enacted in 1998, it replaced the JTPA programs for economically
disadvantaged adults and youth, and dislocated workers with three new
programs- Adult, Dislocated Worker, and Youth– that deemphasize the
categorical nature of JTPA and allow for a broader range of services to be
given to the general public. 4 The newly authorized WIA programs provide for
three tiers, or levels, of service: core, including basic services such as
job search assistance; intensive, including staff- intensive services such
as assessment and case management; and training for eligible individuals. 5
In addition to the three new programs, WIA requires states to use one- stop
centers to provide many other employment and training services. In requiring
the use of one- stop centers, WIA continues the key objectives of the one-
stop initiative, while also emphasizing state and local flexibility and a
strong role for the private sector in new, local boards that oversee the
program. WIA also extends the one- stop concept beyond Labor programs,
requiring states and localities to form partnerships with other agencies
offering employment and training
2 See for example , Multiple Employment Training Programs: Major Overhaul Is
Needed( GAO/ T- HEHS94- 109, Mar. 3, 1994); The Job Training Partnership
Act: Potential for Program Improvements But National Job Training Strategy
is Needed( GAO/ T- HRD- 93- 18, Apr. 29, 1993).
3 Integration is characterized by features such as common intake and
“seamless” service delivery. The customer may receive a range of
services from different programs without repeated registration procedures,
waiting periods, or other administrative procedures. Integrated services are
sometimes, but not always, physically collocated.
4 Authorized through fiscal year 2003, WIA's three new programs had a budget
authority of about $3. 5 billion in fiscal year 2000. 5 Services are
provided sequentially. That is, in order to receive intensive services,
clients must first receive core services; to receive training services, a
client must first receive core and then intensive services. Localities may
establish certain activities that lead from participation in core to
intensive and training services. Key to moving from core to a higher level
of services is that the services are needed to help job seekers become self-
sufficient. The Workforce Investment
Act Emphasizes Service Integration
Workforce Investment Act: Implementation Status and the Integration of TANF
Services
Page 4 GAO/ T- HEHS- 00- 145
services. About 17 categories of programs, funded through four separate
federal agencies, are required to provide services through the one- stop
center system under WIA. 6 Table 1 shows the programs that WIA requires to
provide services through the one- stop centers (termed mandatory programs)
and the related federal agency.
Table 1: WIA's Mandatory Programs and Related Federal Agencies Federal
agency Mandatory program
Department of Labor WIA Adult WIA Dislocated Worker WIA Youth Employment
Service (Wagner- Peyser) Trade adjustment assistance programs Veterans'
employment and training programs Unemployment Insurance Job Corps Welfare-
to- Work grant- funded programs Senior Community Service Employment Program
Employment and training for migrant and seasonal farm
workers Employment and training for Native Americans
Department of Education Vocational Rehabilitation Program Adult Education
and Literacy Vocational Education (Perkins Act)
Department of Health and Human Services Community Services Block Grant
Department of Housing and Urban Development (HUD)
HUD- administered employment and training
WIA does not require that all program services be provided on- site (or
collocated)– they may be provided through electronic linkages with
6 In addition, three other categories of programs are required to provide
services through the one- stop center: Youth Opportunity Grants;
demonstration, pilot, multiservice, research, and multistate projects; and
national emergency grants. Because they are of limited scope, we did not
include them in our total.
Workforce Investment Act: Implementation Status and the Integration of TANF
Services
Page 5 GAO/ T- HEHS- 00- 145
partner agencies or by referral- but WIA does require that the relationships
and services be spelled out in a Memorandum of Understanding (MOU). Other
key requirements of WIA are that states or localities must
submit a 5- year strategic plan to Labor; 7
establish a State Workforce Investment Board to assist the governor in
developing statewide policies on a new Workforce Investment System;
establish Local Workforce Investment Areas, each with its own Local
Workforce Investment Board to oversee the new system locally;
establish a comprehensive one- stop center in each local area; 8
negotiate with Labor on the state's expected level of performance on key
measures (termed performance standards);
include cost allocation plans in MOUs between the local boards and WIA
partners;
identify eligible training providers whose performance qualifies them to
receive WIA funds; and
establish a new training system in which a qualified client can choose his/
her own training from the list of eligible training providers, and pay for
it through a voucher called an Individual Training Account (ITA).
WIA also requires states to report regularly to Labor on specific client
outcomes, including post- employment earnings and retention.
While WIA requires some program elements, many program policies are left to
states and localities to decide, including whether to use the one- stop
center system to provide services to TANF clients. State and local
flexibility is also a key feature of the TANF program, which was created by
the 1996 welfare reform legislation passed by the Congress 2 years before
WIA. Under TANF, states have more flexibility than under its predecessor
7 In order to obtain funds states must have an approved plan in place. Labor
is given 90 days to review the plan. If Labor does not act within 90 days
the plan will be considered approved. 8 Each local area must include at
least one comprehensive center that must provide services by all partners
under WIA. The Role of the One- Stop
Centers in Providing TANF Services Has Varied
Workforce Investment Act: Implementation Status and the Integration of TANF
Services
Page 6 GAO/ T- HEHS- 00- 145
programs to determine the nature of financial assistance, the types of
client services, the structure of the program, and how services are to be
delivered. At the same time, TANF established new accountability measures
for states and a 5- year lifetime limit on federal TANF assistance. These
measures heighten the importance of helping TANF recipients find work
quickly and retain employment. As states have used the new flexibility under
TANF and focused more on employment, the importance of integrating services
for those receiving TANF has received increased attention. To help clients
get and retain their jobs, states need to address problems that interfere
with employment, such as child care and transportation issues and mental and
physical health problems. Solving these problems often requires those who
work directly with clients to draw on other federal and state programs,
often administered by other agencies, to provide a wide array of services.
While local welfare agencies have typically administered TANF, food stamps,
and Medicaid, other programs that provide key services to TANF clients are
administered by housing authorities, education agencies, and state
employment services offices. TANF's focus on employment requires welfare
agencies to work more closely than before with state and local workforce
development systems. 9 Our previous work on pre- WIA programs found wide
variation in the degree to which the welfare and non- welfare programs
collaborated to provide employment and training services. We found that 17
states used one- stop centers or other traditional employment and training
structures to provide employment- related services to TANF clients, 14
states separated services for welfare clients by providing these services in
a welfare- dedicated structure, and the remaining 19 states used a
combination of approaches. 10
States are making progress implementing WIA, but not all states will have
all WIA implementation steps completed by July 1, 2000. Frequently delayed
are actions related to establishing formal agreements between partners in
the one- stop centers. States report that many program services- especially
those provided by the larger mandatory Labor- funded programs– are
being provided on- site at the one- stop centers. During fiscal year 2000,
the largest sources of funding to support the one- stop
9 This is particularly true in administering services funded by the Welfare-
to- Work Grants created by law in 1997 and administered by Labor. Through
these grants, Labor is authorized to provide states and grantees up to $3
billion over 2 years to help welfare clients considered the hardest to
employ find jobs.
10 For further information, see Welfare Reform: States' Experiences in
Providing Employment Assistance to TANF Clients( GAO/ HEHS- 99- 22, Feb. 26,
1999). States Show Mixed
Progress in Implementing WIA
Workforce Investment Act: Implementation Status and the Integration of TANF
Services
Page 7 GAO/ T- HEHS- 00- 145
infrastructure and operations were most often the WIA- mandated Labor
programs. The TANF block grant was also often cited as a primary funding
source.
States are making progress implementing WIA, but not all states will have
completed all WIA implementation activities by July 1, 2000, when WIA takes
full effect. States have completed much of the planning necessary to
implement one- stop center systems. For example, all 50 states have
submitted their 5- year WIA plans to Labor, and Labor expects to have all
states' plans approved for at least transitional implementation by July 1,
2000. 11
In addition, by July 1, 2000,
all 50 states, according to our survey, expect to have established and
convened their State Workforce Investment Board;
all 50 states will have established their Local Workforce Investment Areas
and have set up their Local Workforce Investment Boards, according to Labor;
forty- nine states told us they expect to have established a comprehensive
one- stop center in each local area; and
all states will have negotiated their performance standards, according to
Labor.
While many elements are in place in most states, some states do not
anticipate having completed other WIA implementation activities by July 1,
2000. For example, our survey found the following:
Nine states did not expect to complete their cost allocation plans- a key
component of the MOUs between the local area and the other required
partners. Seven other states could not tell us when they will complete their
cost allocation plans.
11 There are five critical requirements that must be completed or in place
before Labor can approve the plan for either full or transitional
implementation. States must (1) have negotiated their performance levels
with Labor and incorporated them in the plan, (2) describe in the plan the
public comment process; (3) identify in the plan the entities serving on the
state board; (4) identify each local area; and (5) identify the formula for
allocating WIA funds to the local areas. If transitional approval of the
plan is received, Labor will provide full WIA funding to the state as long
as the state meets an established timeline for completing the remaining
actions needed for full implementation. States Are Making
Progress, But Not All States Will Have Completed WIA Implementation
Activities by July 1, 2000
Workforce Investment Act: Implementation Status and the Integration of TANF
Services
Page 8 GAO/ T- HEHS- 00- 145
At least five states do not anticipate being able to make available their
eligible training provider list.
At least six states do not anticipate having ITAs available for customers to
use to access their training.
Even though WIA does not require states to provide all mandatory program
services on- site at the one- stop centers, states report that many
services- especially for the larger mandatory Labor- funded programs–
are being provided on- site, at least part of the time. 12 WIA Dislocated
Worker programs are on- site in the majority of one- stop centers in 40
states, and WIA Adult and Youth programs and the Employment Service are on-
site in the majority of one- stop centers in 39 states. 13 Other mandatory
programs not funded through Labor are less often found on- site. For
example, somewhat fewer states have Department of Education's mandatory WIA
programs on- site. Nearly half of the states report that Vocational
Rehabilitation services are on- site in the majority of one- stop centers,
and 12 states provide Adult Education and Literacy services at the majority
of one- stop centers (see table 2).
12 These services may only be provided on- site a few days a week through,
for example, an outstationing arrangement under which program staff are
assigned to the center according to a set schedule. In these arrangements,
program staff may move from one office to another throughout the course of a
week.
13 States that had not yet implemented WIA provided responses on how they
deliver services for their JTPA programs. Larger Mandatory
Programs Are Often Collocated at the One- Stop Centers
Workforce Investment Act: Implementation Status and the Integration of TANF
Services
Page 9 GAO/ T- HEHS- 00- 145
Table 2: WIA's Mandatory Programs and the Number of States Reporting
Services On- Site in the Majority of One- Stop Centers
Mandatory program Number of states Labor
WIA Dislocated Worker (JTPA title III) 40 WIA Adult (JTPA title IIA) 39 WIA
Youth (JTPA title IIB andC) 39 Employment Service (Wagner- Peyser) 39 Trade
adjustment assistance programs 35 Veterans' employment and training programs
35 Unemployment Insurance 29 Welfare- to- Work grant- funded programs 27
Senior Community Service Employment Program 21 Employment and training for
migrant and season farm workers 15 Job Corps 7 Employment and training for
Native Americans 3
Education
Vocational Rehabilitation Program 21 Adult Education and Literacy 12
Vocational Education (Perkins Act) 6
Health and Human Services a
Community Services Block Grant activities 4
HUD b
HUD- administered employment and training 4 Note: Eight states were not able
to provide any data on collocation. a Department of Health and Human
Services.
b Department of Housing and Urban Development
During fiscal year 2000, the largest sources of funding to support the
onestop infrastructure and operations were most often the WIA- mandated
Labor programs. 14 WIA was identified by all states as a funding source for
one- stop centers, and one of the largest three sources by 44 states. 15 The
Employment Service was also identified as a source of one- stop funding by
nearly all states. 16 Other federal funding sources, such as Education's
Vocational Rehabilitation Program, were sometimes cited as important in
14 States are not required to track one- stop center costs directly–
financial reporting is done through each of the individual programs.
Therefore, states could not provide information about the exact amount of
funds used to support one- stop centers.
15 States not yet implementing WIA reported on JTPA funding. 16 The
Employment Service (Wagner- Peyser) had a budget authority of about $765
million in fiscal year 2000. One- Stop Funding Often
Comes From LaborFunded Mandatory Programs
Workforce Investment Act: Implementation Status and the Integration of TANF
Services
Page 10 GAO/ T- HEHS- 00- 145
funding one- stop centers. The majority of states say they use more than 11
separate sources of funds 17 to support one- stop infrastructure and
operations; four states use 20 or more funding sources (see table 3).
Table 3: Mandatory Programs Funding One- Stop Center Infrastructure and
Operations
Mandatory program Number of states using program to fund infrastructure and
operations
Number of states identifying program as one of three largest funding sources
Labor JTPA/ WIA 50 44 Employment Service (Wagner- Peyser)
49 42 Veterans' E& T Program 43 1 Trade adjustment assistance programs 39 0
Unemployment Insurance 39 11 Welfare- to- Work Grants 39 1 One- Stop
Implementation Grant 37 18 Senior Community Service Employment Program 28 0
Job Corps 20 0 Education Vocational Rehabilitation 37 1 Adult Education and
Literacy 29 0 Vocational Education 24 0 HUD HUD Employment and Training 11 0
Note: We did not require states to provide funding information on Health and
Human Services' Community Services Block Grant and employment and training
programs for Native Americans and migrant and seasonal farmworkers.
While TANF is an optional program under WIA, a majority of states reported
at least some relationship between the one- stop centers and TANF at either
the state or local level. Forty- three states told us that TANF is a state-
level partner with the one- stop center system developed under WIA. Often
the coordination between the two programs at the state level is formal,
through MOUs or other state- level agreements, but it is also often
informal, such as through sharing program information. At the local level,
17 Includes both mandatory and nonmandatory programs. TANF Services Are
Often
Part of the One- Stop System
Workforce Investment Act: Implementation Status and the Integration of TANF
Services
Page 11 GAO/ T- HEHS- 00- 145
24 states reported providing at least some TANF services on- site at a
majority of their one- stop centers. 18 Because low- income families may be
eligible for many other federal welfare- related programs, including food
stamps and Medicaid, these centers sometimes include those services, as
well. In seven of the 24 states, one- stop centers provide TANF employment-
related services and the Food Stamp Employment and Training Program, along
with eligibility services for TANF, food stamps, and Medicaid. Eight more
states reported that a majority of their one- stop centers have TANF
employment- related services in combination with the Food Stamp Employment
and Training Program, but do not have eligibility services on- site. Another
seven include TANF employment- related services alone without the Food Stamp
Employment and Training Program or eligibility services. 19 In these states,
individuals would apply for TANF cash assistance and other welfare- related
services through a separate welfare system. TANF funds also often
contributed to financing one- stop infrastructure and operations during
fiscal year 2000– 33 states cited TANF funds as a source of support
and 12 of these states ranked it among their three largest funding sources.
As states have worked to integrate their services at one- stop centers, and
some have broadened the range of program services they provide at the one-
stop centers to include those funded by TANF, they report facing several
challenges. These challenges result from
establishing and formalizing partnerships, as required under WIA;
developing the one- stop infrastructure to support a broader, more
comprehensive one- stop center system; and
integrating program services while responding to the multiple federal
requirements for these programs.
WIA requires that a broader array of program services be included in the
one- stop system than was often found in earlier one- stop centers, and
18 Another 15 states reported no TANF or other welfare- related services are
provided at a majority of one- stop centers, and the remaining 11 did not
respond to this survey question. 19 Of the 24 states that reported including
at least some TANF services at a majority of their one- stop centers, two
other combinations of TANF services were reported– one state had TANF
employmentrelated and eligibility services and another included TANF
employment and eligibility in combination with the Food Stamp Employment and
Training Program. Implementing an
Integrated System Has Presented Challenges to States and Localities
Establishing New, More Formal Partnerships
Workforce Investment Act: Implementation Status and the Integration of TANF
Services
Page 12 GAO/ T- HEHS- 00- 145
developing partnerships with the agencies that administer the newly
integrated programs has been problematic for many states. Building new
partnerships was the subject of the largest number of written comments in
our 50- state survey. These partnerships must be formally articulated
through MOUs, including plans for how costs will be shared. The requirement
for stipulating cost sharing has caused widespread difficulties in states
and localities. Many one- stop centers we visited reported that they had
experienced problems determining how partners would share costs for common
expenses, such as administrative staff and utilities. For example, they told
us that funding limitations across program partners and the lack of guidance
from state and federal agencies make it difficult for them to allocate costs
in a fair and proper manner. In addition, states volunteered that, while in
the past local agencies might share resources, such as staff or telephones
in exchange for office space, they can no longer make these trades under WIA
guidelines. Difficulties in allocating costs have resulted in MOUs being
delayed, and states and localities are struggling to find equitable cost
sharing methodologies while still meeting operational costs and the
requirements of the legislation. In addition, several states reported
“growing pains” as they merged cultures across the various
program partners. They attributed these to differences in managerial style,
service delivery philosophy, or administrative rules. Onestop centers have
used a variety of mechanisms to overcome these cultural barriers. For
example, the one- stop center in Janesville, Wisconsin, took active steps to
address this cultural challenge by engaging all of the one- stop center
staff in joint planning efforts long before the center was open to the
public.
States have been challenged by the logistical issues involved in designing
and developing an integrated one- stop center system under WIA. Deciding how
to provide services- whether on- site, through electronic linkages, or by
referral- has been complicated, and the decisions sometimes bring unforeseen
consequences. For example, providing employment and training services on-
site to TANF clients might be seen as the best way to make use of existing
resources and expertise. Because TANF clients often must bring their
children with them to receive the services, it's likely that the center will
need to establish on- site child care facilities. In Provo, Utah, for
example, the one- stop center pursued on- site child care facilities to help
parents better utilize one- stop services and minimize disruptions for staff
and customers. The Provo center contracted with a licensed day care provider
to provide on- site child care services, which, they told us, have been
well- used. Designing the OneStop
Center System and Its Infrastructure
Workforce Investment Act: Implementation Status and the Integration of TANF
Services
Page 13 GAO/ T- HEHS- 00- 145
Once states and localities decided how the one- stop center system would
provide integrated services, they struggled to develop the one- stop center
infrastructure. One of the other major infrastructure challenges encountered
by states has been the development of computer systems to support an
integrated environment. We recently reported that states' automated systems
for welfare reform, for example, have major limitations, such as the
inability to access individual data on TANF recipients from some of the
agencies serving them, including job assistance agencies. 20 One- stop
partners face similar challenges in their inability to share client
information and performance data that would, for example, require customers
to complete the same information or take the same assessment tests
separately for each program they use. In addition, many of the systems that
support the various one- stop partners are incompatible with one another.
One location we visited, for instance, had several computer networks but
none of them could communicate with the other. Over one- third of the states
in our survey do not expect to have a Management Information System in place
by July 1, 2000; some do not know when such a system will be available.
Labor has been working to develop a comprehensive computer system- the One-
Stop Operating System (OSOS)– that states could use to support WIA-
required data collection, but the system is not yet available and, as
currently configured, will support only the Labor- funded mandatory
programs. Several states told us that the system will not be flexible enough
to meet their needs. Labor estimates that between 8 and 12 states may use
OSOS when it is available.
States' efforts to integrate their programs to provide customers with
seamless service delivery have been affected by the differing requirements
of the multiple federal funding sources supporting one- stop systems. Each
program has restrictions on how its money can be used, and specific
requirements for reporting. While WIA requires the programs to work together
and provides the opportunity for federally funded programs to integrate
services, the way in which the funds are distributed to states makes it
difficult for them to respond to the spirit of the law, according to state
and local officials. For example, states must track and report
administrative costs separately for a number of federally funded programs,
but the definition of administrative cost can differ by program. In
addition, states report that it is difficult to measure and evaluate overall
one- stop center performance because federal measures are established to
evaluate
20 See Welfare Reform: Improving State Automated Systems Requires
Coordinated Federal Efforts (GAO/ HEHS- 00- 48, Apr. 27, 2000). Responding
to Multiple
Federal Requirements
Workforce Investment Act: Implementation Status and the Integration of TANF
Services
Page 14 GAO/ T- HEHS- 00- 145
each separate program, rather than to evaluate system- wide success. To
address this, some states are developing their own system- wide performance
measures, in addition to those required under the federal statutes. For
example, to measure the degree to which the one- stop centers are serving
employers, Utah's centers are measuring the percentage of area employers
that are served by the centers.
Despite these challenges, states and localities are designing and developing
integrated service delivery approaches at one- stop centers, focusing their
efforts on resolving some of the longstanding issues inherent in a
fragmented system. In so doing, they have looked to the new requirements of
WIA and focused on a broader range of services to meet the employment-
related needs of the general public. In addition, they have begun to
emphasize simultaneous services to both employers and job seekers. While no
outcome data are yet available on the success of their work, some of their
early efforts show promise for implementing an integrated workforce
investment system.
In designing services at one- stop centers, states and localities have
sought to combine WIA's emphasis on employment and post- employment services
to the general public with efforts to solve the problems that have existed
in a fragmented employment and training system. For example, in earlier
work, we identified some key problems that exist in a fragmented system,
including (1) frustration for employers because of wasted time responding to
multiple job inquiries for the same openings from several different
government entities; (2) confusion on the part of job seekers and service
providers because there was not a clear entry point or clear path from one
program to another, nor was there ready access to program information; and
(3) frustration for job seekers because programs were not tailored to meet
their needs and because navigating the various programs to get needed
assistance meant completing multiple intake and assessment procedures. 21 To
effectively integrate their programs, states and localities needed to
address these issues, while meeting the enhanced client focus of WIA. We
identified the following key areas as critical to successfully integrating
services under WIA:
Attracting and serving employers in ways that minimize wasted time and
reduce their frustration;
21 See for example, Multiple Employment Training Programs: Major Overhaul Is
Needed( GAO/ THEHS- 94- 109, Mar. 3, 1994). Despite Challenges,
States and Localities Are Developing Integrated Service Delivery Approaches
That Show Promise
One- Stop Service Delivery Approaches Use WIA's Customer Focus and Aim to
Reduce Problems Inherent in Fragmented System
Workforce Investment Act: Implementation Status and the Integration of TANF
Services
Page 15 GAO/ T- HEHS- 00- 145
Bringing job seekers to the one- stop centers to help them obtain ready
access to employment and program information;
Creating a customer- friendly environment for job- seekers by reducing
confusion, providing them with a clear entry point and clear path from one
program to another;
Providing job seeker services that are tailored and seamless, helping them
identify and obtain needed program services without the burden of completing
multiple intake and assessment procedures;
Helping job seekers become self- sufficient by providing post- employment
services that assist with job retention and advancement.
Fig. 1 charts the processes followed by customers passing through the system
and each of the key areas in which we identified promising approaches. App.
I provides a summary of the promising approaches.
Fig. 1: One- Stop Process, Key Areas of Promising Approaches
� � �
Attracting and Serving Employers Employers
Employer Services One-Stop
Information/ Referral Job
Seekers Follow-Up
and Retention
Services Core/ Intensive/ Training
Universal Specialized Bringing in
Job Seekers Creating a
“Customer- Friendly” Environment for Job Seekers Providing Job
Seeker Services That
Are Tailored and Seamless Helping
Job Seekers Become Self-Sufficient Pre-Employment Services
Workforce Investment Act: Implementation Status and the Integration of TANF
Services
Page 16 GAO/ T- HEHS- 00- 145
To effectively attract and better serve employers, many one- stop centers
market their services, minimize the burden on employers who use the centers,
and provide employer- focused services. To bring in employers and to reduce
the frustration and confusion that they experienced when receiving contacts
from multiple agencies, the centers we visited in Titusville and Melbourne,
Florida, designated an individual or a team to serve as the center's
representative for an employer or employment sector, covering issues related
to job listings and placements. In providing services to employers, centers
in Dayton, Ohio, Janesville, Wisconsin, and in Utah allow employers to use
the one- stop facilities to recruit, interview, and test job candidates. One
center in Florence, Kentucky, provides videoteleconferencing facilities so
that candidates can be interviewed by employers who may be located outside
the local area. In a small center in Portland, Oregon, where facility space
is limited, a desk is dedicated for employer use, allowing them to have a
presence at the one- stop center and to recruit, screen, and interview
candidates. To help bring in and serve small businesses, centers in Killeen,
Texas, and Eugene, Oregon, are creating a business- only resource center
within the one- stop center with special resources that include internet
services, business- related reference material, and assistance with business
tax questions.
At the same time one- stop centers are attracting employers, they also need
to attract job seekers and make them aware of the centers' resources. In our
earlier work on multiple employment programs, we found that job seekers were
confused and frustrated by the limited information readily available on
government programs that could help them and on where they could access this
information. 22 The centers we visited found several ways to address these
problems and bring in job seekers. For example, to help residents identify a
site as one of a network of one- stop centers, all centers in Utah have
developed a “franchise look” that includes consistent signage,
interior designs, layouts, color schemes, and logos. To increase community-
wide awareness, centers in Killeen, Texas, and Kanab, Utah, have become
identified as a community resource by providing space, such as kitchen or
banquet facilities or classrooms, for a variety of communitywide events.
Other centers bring in customers by targeting services to younger members of
the community, such as high school students. For example, the center in
Racine, Wisconsin, established a youth resource area with computers and
programs dedicated to career exploration. The
22 See, for example, Multiple Employment Programs( GAO/ HRD- 93- 26R, June
15, 1993). Attracting and Serving
Employers Bringing in Job Seekers
Workforce Investment Act: Implementation Status and the Integration of TANF
Services
Page 17 GAO/ T- HEHS- 00- 145
center worked with the school system and has become a site for school field
trips throughout the primary and secondary school years.
Once job seekers are inside the door of the one- stop center, the next step
is to create a “customer- friendly” environment- one that
reduces confusion and provides a clear entry point to services. One- stop
center operators told us that they try to find ways to avoid the atmosphere
of a government office and the long waiting lines that have symbolized
government transactions, like applying for welfare benefits or unemployment
insurance. Almost without exception, one- stop centers we visited had an
information desk directly inside the front door that was continually staffed
by a receptionist or greeter. Some centers considered this position key to
providing high- quality services to their clients. One center in Texas
assigns only top performers to the information desk and regards that
assignment as an honor.
Many centers, such as Dayton, Ohio, and Killeen, Texas, minimize the waiting
time for services by performing a quick assessment at the information desk
and then refer clients to service areas. One- stop centers in Utah feature
an express desk that serves customers needing quick services. Instead of
having to sit down with a job counselor or case manager, customers using the
express desk can, for instance, obtain bus passes or electronic benefit
transfer cards, or drop off required documents. Some centers, such as the
one in Janesville, Wisconsin, also use their resource rooms- where they
maintain job listings, computers with internet access, telephones, and fax
machines- as the waiting area for specialized services, thus allowing the
customers to use their wait time to accomplish necessary job search tasks.
Many job seekers can meet all their needs in the self- service resource
room. In fact, Labor officials expect that the majority of customers under
WIA will receive needed services through self- service or with very limited
assistance from staff. However, some clients, like many TANF recipients, may
need more intensive case management services to help them get and keep a
job. Trying to obtain just this type of intensive service has historically
frustrated clients who were left on their own to navigate the array of
federal programs, each with its own intake and assessment procedures. One-
stop centers we visited often found ways to integrate the services provided
by multiple programs, creating a seamless approach to delivering services.
Creating a CustomerFriendly
Environment for Job Seekers
Providing Job Seekers with Services That Are Tailored and Seamless
Workforce Investment Act: Implementation Status and the Integration of TANF
Services
Page 18 GAO/ T- HEHS- 00- 145
Clients in all centers in Utah, for example, see a single case manager for
all intensive services, including TANF services, food stamps, and Medicaid,
despite the program or combination of programs that fund the services. All
case managers in Utah are trained to provide services for every program
offered through the center, minimizing the burden on the client who, in an
unintegrated system, might have had to go through several assessment and
intake processes.
In Killeen, Texas, where more than one case manager may be involved in a
case, the centers assign a primary case manager who takes the lead to
coordinate most activities and assist the client to navigate the system.
In many locations we visited, the case managers are aware of all the program
services available to serve a client- including support services to enable a
client to attend training or to get or keep a job- and tailor the services
to meet the clients' needs. In our earlier work, we found tailoring of
services to be a key feature in successful employment training programs. 23
The efforts of the one- stop center do not end once a client gets a job. The
focus of the services provided to clients changes to one of helping the
client retain the job or upgrade skills to get a better job. WIA's
performance measures track the program's ability to help clients retain
employment and increase their earnings over time. This post- employment
program emphasis is new for the workforce development system, and most
states and localities we visited were only beginning to develop their
efforts. Most of the promising approaches we identified were being provided
only to current and former TANF clients. For example, Florida has
established Retention Individual Training Accounts, funded with TANF funds,
to provide post- employment training through vouchers to their TANF clients
who have found employment.
We are still a long way from having in place a nationwide comprehensive
workforce investment system that effectively serves both job seekers and
employers, but it is evident that a transformation is underway in how
employment and training services are provided. At this early stage of WIA
implementation, we see states making progress in integrating employment and
training services, a key goal of WIA. The system is starting to unfold,
23 See Employment Training: Successful Projects Share Common Strategy( GAO/
HEHS- 96- 108, May 7, 1996). Helping Job Seekers
Become Self- Sufficient Conclusion
Workforce Investment Act: Implementation Status and the Integration of TANF
Services
Page 19 GAO/ T- HEHS- 00- 145
new relationships are being established, and, despite the challenges, states
and localities are developing promising approaches in the way they serve
their customers.
Mr. Chairman, Madam Chairman, this concludes my prepared statement. I will
be happy to respond to any questions you or other Members of the
Subcommittee may have.
For future contacts regarding this testimony, please call Cynthia M. Fagnoni
at (202) 512- 7215 or Sigurd Nilsen at (202) 512- 7003. Individuals making
key contributions to this testimony included Gale Harris, Dianne Blank,
Ronni Schwartz, Katrina Ryan, and Kathy Larin. GAO Contacts and
Acknowledgments
Page 20 GAO/ T- HEHS- 00- 145
States and localities are designing and developing integrated service
delivery approaches at one- stop centers. While no outcome data are yet
available, some of their early efforts show promise for implementing an
integrated workforce investment system. We identified five key areas that
are critical to successfully integrating services under WIA, and provide
illustrative examples of the promising approaches we identified in those
areas.
Key area Example of promising approach
Employers
Attracting and serving employers Establishing a single point- of- contact
from the onestop center to a business or business sector Locating computers/
kiosks in chambers of commerce and other business- related facilities
Providing dedicated facilities on- site for employers to use in recruiting,
interviewing, testing, and training job candidates Involving private
staffing agencies on- site to increase the number of jobs available to their
jobseekers
Creating a business resource center on- site including computers that have
specialized software and internet linkages, publications on small business
issues, and a assistance with business tax questions
Job seekers
Bringing in job seekers Establishing a youth resource area with computers
and programs dedicated to career exploration, and connecting with the school
system so that the area is the site for school field trips at regular
intervals throughout the primary and secondary school years Providing space/
facilities, such as kitchen/ banquet facilities or classrooms, for
community- wide events, making the community aware of the one- stop as a
resource Developing a “franchise look,” such as consistent
interior designs, layouts, color schemes, and logos to make it easier for
customers to locate and recognize the one- stop center Locating one- stop
centers in lowest- income areas or on bus lines to increase accessibility
Creating a “customer friendly” environment for job seekers
Establishing an information desk with a greeter/ receptionist immediately
inside the front door to reduce initial client confusion and efficiently
direct clients to services Minimizing the waiting time for services by
performing initial screening at the front desk and
Appendix I: Examples of Promising Approaches in Service Delivery
Appendix I: Examples of Promising Approaches in Service Delivery
Page 21 GAO/ T- HEHS- 00- 145
Key area Example of promising approach
referring customers to service areas Making the resource room– with
its job listings, computers, telephone, and fax resources– the waiting
area for specialized services Establishing an “express desk” to
collect paperwork requirements without a wait and using call- in centers to
help determine initial eligibility for TANF Providing job- seeker services
that are tailored and seamless
When intensive or specialized services are needed, establishing a single or
primary case manager for clients enrolled in multiple programs to reduce the
burden on clients and staff Establishing a “value added”
referral system, where case managers would be familiar with other programs
and would provide extra assistance to assure that the program referral was
appropriate and valuable
Helping job seekers become selfsufficient Establishing “Retention
Individual Training Accounts” to provide incumbent worker training to
TANF clients by way of vouchers Linking hands- on training to one- stop
center needs in order to improve access to training
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