1. To clarify the State’s incentive and sanction policy for PY 2007 local area performance for the WIA Title 1B program and W-P program with regard to System Improvement Indicators – Reemployment Services Implementation;

2. To provide a revised Attachment 1, consistent with the clarification regarding Reemployment Services Implementation;

3. To revise Attachment 5 and Attachment 7 so as to present updated Entered Employment Rate (EER) incentive/sanction levels based on the most recent available data for PY 2007;

4. To rescind and replace prior State policy issued in WDS-TA #05-13, issued July 22, 2005; and

5. To affirm, pursuant to WIA Final Rules and Regulations, Part 661, Subpart C – Local Governance Provisions, Section 661.305(a)(5), that LWIBs are responsible for negotiating and reaching agreement with the New York State Department of Labor (NYSDOL) on local performance goals for the WIA Title 1B program and W-P program.

WIA Final Rules and Regulations, Part 666 – Performance Accountability Under Title I of the WIA; Subpart C – Local Measures of Performance (sections 666.300 & 666.310); and Subpart D (sections 666.400, 666.410, 666.420), discuss the process for determining local levels of performance and the circumstances under which local areas are eligible for incentive grants or under which sanction may be applied.

• WIA Sec. 134(a)(2)(B)(iii) – Use of Funds for Employment and Training Activities (Providing Incentive Grants to Local Areas); and
• WIA Final Rules and Regulations, Part 666 – Performance Accountability Under Title I of the WIA; Subpart C – Local Measures of Performance (sections 666.300 & 666.310); and Subpart D – Incentives and Sanctions for Local Performance (sections 666.400, 666.410, 666.420);

NYSDOL, in consultation with the Governor and the New York State Workforce Investment Board, has established the New York State PY 2007 Incentive and Sanction policy for Local Workforce Investment Area (LWIA) performance for the WIA Title 1B program and the W-P program.

The incentive and sanction policy:

1. Makes available incentive grants and implements sanction actions for PY 2007 performance.
2. Uses WIA Title 1B state level activity funds and W-P program funds for incentive grants.
3. Establishes 4 System Improvement Indicators (1 regional indicator and 3 LWIA indicators) and 9 Common Measure Indicators (all are LWIA indicators), as the basis for assessing performance:
   • System Improvement Indicators
     1. Reemployment Services Implementation (Regional indicator).
     2. Increase Training Services (LWIA indicator).
     3. Increase Out-of-School Youth Participation (LWIA indicator).
     4. Improve Entered Employment Rate and Employment Retention Rate performance by Reducing the Number of Participants Who Exit While Still Certifying for UI Benefits (LWIA indicator).

   • Common Measure Indicators (all are LWIA indicators)
     1. Adult Entered Employment Rate (staff assisted service).
     2. Adult Employment Retention Rate (staff assisted service).
     3. Adult Average Earnings (staff assisted service).
     4. Dislocated Worker (DW) Entered Employment Rate (staff assisted service).
     5. DW Employment Retention Rate (staff assisted service).
     6. DW Average Earnings (staff assisted service).
     7. Youth Placement in Employment or Education (WIA Title 1B youth).
     8. Youth Attainment of Degree or Certificate (WIA Title 1B youth).
     9. Youth Literacy and Numeracy Gain (WIA Title 1B youth).

4. Establishes that eligibility to receive an incentive grant for any one indicator is independent of performance (incentive or sanction) on any other indicator.

5. Establishes a State Goal and a proposed LWIA Goal for each of the LWIA indicators. The Goals are expressed as:
   • # of Positive Outcomes needed to achieve the goal;
   • % Maximum (ceiling/cap) needed to achieve the goal;
   • % Minimum (floor) needed to achieve the goal; or
   • $ Amount (average earnings) needed to achieve the goal.

   For some indicators, the LWIA Goal is based on the concept of “LWIA Contribution to the State Goal”. The LWIA Contribution to the State Goal represents NYSDOL’s determination of the LWIA’s “share” of the State Goal. In determining the LWIA Contribution to the State Goal, NYSDOL considered: the LWIA’s relative share of the State’s WIA Title 1B allocation for the respective program funding stream for the indicator, and the LWIA’s relative share of projected PY 2007 statewide performance for the indicator (e.g., the projected number of individuals who will be counted in the indicator/denominator).

   Attachments 2-9 present NYSDOL’s proposed LWIA Goals for each indicator.

6. Establishes an:
   • Incentive Eligibility Standard (e.g., achieving 120% or greater of the State Goal) to determine whether a LWIA and/or region is eligible for an incentive grant for an indicator; and a
   • Sanction Status Standard (e.g., achieving less than 80% of the State Goal) to determine a LWIA and/or region is in sanction status for an indicator.

7. Sets the Sanction Status Standard for each Common Measure indicator equal to 80% of the State Goal established with USDOL (per TEGL No. 19-06, March 30, 2007), to align behavior with the State “passing” the indicator. For example, the Sanction Status Standard for the Adult Entered Employment Rate is set equal to 48.0%, which is 80% of the State Goal for the Adult Entered Employment Rate of 60.0%, established with USDOL.

8. Provides the process available to all LWIAs to negotiate their proposed LWIA Goal for each LWIA indicator:
   1. The LWIB, in consultation with the One-Stop Operators and DoES Regional Administrator, must notify NYSDOL via email, by October 19, 2007, of their intent to negotiate a LWIA Goal. The email should be sent to: WDTDLocalPlans@labor.state.ny.us

      The email Subject Line should read: (LWIB Name) Request for Negotiation of PY 2007 Performance Goals.

   2. For each indicator, the LWIB must be prepared to provide:
      1. A counter-offer goal for the indicator.
      2. Justification for the counter-offer goal, including the factors that will contribute to the LWIA achievement of the goal.
      3. The underlying data used to support the LWIB’s determination of the counter-offer goal.

   3. NYSDOL will schedule an opportunity for dialogue around the negotiations.

Incentive Grants

1. Incentive grants will be made available for each indicator for which the State has established an Incentive Eligibility Standard. The State plans to make WIA and Wagner-Peyser funds available to support the incentive grants with dollar amounts capped at $2,000,000 in WIA funds and $500,000 in Wagner-Peyser funds.

2. To be eligible to receive an incentive grant for an indicator, the LWIA and/or region must achieve the Incentive Eligibility Standard for the indicator and the LWIA must have met the 70% Fund Utilization Rate (FUR) calculation as outlined in Technical Advisory #07-10, issued September 12, 2007.

3. A LWIA and/or region determined by NYSDOL to be eligible for an incentive grant will be required to submit an “Incentive Grant Plan” to NYSDOL for review and approval prior to being awarded the grant. The guidelines for preparing and submitting the “Incentive Grant Plan” will be included with the incentive grant eligibility notifications.

4. NYSDOL, upon final determination of all LWIAs and/or regions eligible for incentive grants, will post the results on the WorkforceNewYork website.

5. Incentive grants must be fully accrued within 12 months of the date of the incentive award.

Sanction Status

Sanction Level 1 Status – Performing below the sanction status standard for an indicator.

A LWIA and/or region in Sanction 1 Status for an indicator will be required to prepare and submit a “Performance Improvement Plan” to NYSDOL. The performance improvement plan must include:

1. A corrective action plan to improve performance, including identification of the measures that will be taken to improve performance, and a timetable for implementing the measures.
2. A written assurance that the Local Workforce Investment Board understands and can administer its duties and responsibilities with regard to State policy and Federal law regarding WIA rules, regulations and reporting responsibilities.

A LWIA and/or region in Sanction Level 1 status may also be required to participate in mandatory technical assistance, if determined appropriate by the Department.

Sanction Level 2 Status – Performing below the sanction status standard for the same Common Measure Indicator for two consecutive years.

Sanction Level 2 Status only applies to the Common Measure Indicators, and does not apply to the System Improvement Indicators. Thus, for PY 2007, Sanction Level 2 Status applies to the three Adult Common Measure Indicators and the three DW Common Measure Indicators.

A LWIA in Sanction 2 Status will be subject to any of the penalties referenced in the WIA regulations, Section 666.420, based upon a state level analysis of the underlying causes for underperformance, including but not limited to a fiscal sanction of three percent (3%) of the LWIA’s program year formula allocation for the respective program funding stream for the indicator.

Note that the 3% fiscal sanction from the respective program funding stream will be prorated across the number of indicators for that funding stream.

For the Adult Program, the 3% fiscal sanction is prorated across the 3 adult common measure indicators as follows:

• Entered Employment Rate – 1% of the LWIA’s Adult program funding;
• Employment Retention Rate – 1% of the LWIA’s Adult program funding; and
• Average Earnings – 1% of the LWIA’s Adult program funding.

For the DW Program, the 3% fiscal sanction is prorated across the 3 DW common measure indicators as follows:

• Entered Employment Rate – 1% of the LWIA’s DW program funding;
• Employment Retention Rate – 1% of the LWIA’s DW program funding; and
• Average Earnings – 1% of the LWIA’s DW program funding.

For the Youth Program – Since PY 2007 is the first year that goals and standards have been established for the three youth common measures, Sanction Level 2 Status does not apply until PY 2008. In addition, approval of the State’s Common Measure waiver from USDOL does not hold the State accountable for the seven core WIA Youth Program performance measures for PY 2007.

For PY 2008, the 3% fiscal sanction is prorated across the 3 Youth common measure indicators as follows:

• Placement in Employment or Education – 1% of the LWIA’s Youth program funding.
• Attainment of Degree or Certificate – 1% of the LWIA’s Youth program funding; and
• Literacy and Numeracy Gain – 1% of LWIA’s Youth program funding.

INDICATORS, STATE GOALS AND STANDARDS AND INCENTIVE AMOUNTS

System Improvement Indicators

Reemployment Services Implementation

• State Goal -- Timely Scheduling and Triage

  For UI claimants identified thru the REOS system, the region has achieved 95% on each of the following UI Reemployment Program process measures.

  1. Initial Scheduling – Scheduled first service date within two weeks of the weekly REOS create date.

  2. Rescheduling – Those who were excused and/or failed to comply with the initial scheduled service, were rescheduled for a first service within 2 weeks of the initial scheduled service.

  3. Triage – By no later than the second service day, information on the customer (which will be defined in subsequent guidance) has been collected from those customers who have complied with either their initial or rescheduled activity; and the information has been used to determine whether the customer can or cannot be readily attached to employment (staff assisted service).

     Staff must record the triage in OSOS as “L1 Staff Assisted Core; Assessment Interview, Initial Assessment” (per WDS TA#06-16, Attachment A-2), until such time as OSOS can be modified to list Triage as a service. Staff must also record an OSOS Comment stating the outcome/action-to-be-taken, as a result of the triage.

     Note that a service day is the actual day (date) when the customer receives one or more services.

• Geography – Region, consistent with the regional Reemployment Service Plans submitted pursuant to WDS-TA #06-15, State Policy Guidelines on Serving Unemployment Insurance Customers (September 8, 2006).
  • Capital/Northern Region
  • Central/Mohawk Region
  • Finger Lakes Region
  • Hudson Valley Region
  • Long Island Region
  • New York City Region
  • Southern Tier Region
  • Western Region

• Incentive Eligibility Standard – the region achieves 100% or greater of the State Goal.

• Incentive Amounts – will be determined for each region.

• Sanction Status Standard – the region does not achieve 100% or greater of the State Goal.

• Attachment 1 provides an illustrative report card for this indicator.

Increase Training Services

• State Goal – Increase Training and Skills Development Services by 35% over PY 2006 levels.
  • Training Services – To be counted as a training service, the services must be recorded in OSOS as ITA training, OJT or customized training.
  • Skill Development – To be counted as a skill development service, the service must be recorded in OSOS as “Short-term Pre-vocational Skills to Prepare for Employment or Training” under L1- Staff Assisted Intensive Service. In addition, the name of the pre-vocational session, and its beginning and ending dates should be recorded in OSOS COMMENTS.
  Short-term Prevocational Skill services include development of learning skills, communication skills, interviewing skills, punctuality, personal maintenance skills, and professional conduct, to prepare individuals for unsubsidized employment or training.
• Geography – LWIA.
• Incentive Eligibility Standard – the LWIA achieves 100% or greater of their LWIA Goal (expressed as “# of positive outcomes”).
• Sanction Status Standard – the LWIA does not achieve at least 80% of their LWIA Goal (expressed as “# of positive outcomes”).
• Incentive Grant Amount – 1% of the LWIA’s PY2007 WIA Title 1B Adult and DW allocation.
• LWIA Goals – Attachment 2 provides NYSDOL’s proposed LWIA Goals for this indicator, including the data used to determine the goals.

Increase Out-of-School Youth Participation

• State Goal – Increase number of out-of-school participants by 50% over PY 2006 levels.
• Geography – LWIA.
• Incentive Eligibility Standard – the LWIA achieves 100% or greater of their LWIA Goal (expressed as “# of positive outcomes”).
• Sanction Status Standard – the LWIA does not achieve at least 80% of their LWIA Goal (expressed as “# of positive outcomes”).
• Grant Amount – 3% of the LWIA’s PY2007 WIA Title 1B Youth allocation.
• LWIA Goals – Attachment 3 provides NYSDOL’s proposed LWIA Goals for this indicator, including the data used to determine the goals.

Improve Entered Employment Rate and Employment Retention Rate Performance by Reducing the Number of Participants Who Exit While Still Certifying for UI Benefits

• State Goal – Reduce the number of participants who exit while still certifying for UI benefits by 50% over PY 2006 levels.
• Geography – LWIA.
• Incentive Eligibility Standard – the LWIA achieves 100% or lower of their LWIA Goal. The LWIA Goal is expressed as “% maximum.”
• Sanction Status Standard – the LWIA exceeds their LWIA Goal by 20% or greater. The LWIA Goal is expressed as “% maximum.”
• Grant Amount – 1% of the LWIA’s PY2007 WIA Title 1B Adult and DW allocation.
• LWIA Goals – Attachment 4 provides NYSDOL’s proposed LWIA Goals for this indicator, including the data used to determine the goals.

Common Measures Indicators (all are LWIA indicators)

Adult Entered Employment Rate (Staff Assisted Service)

• State Goal – Achieve an Adult Entered Employment Rate (staff assisted service) of 60.0% or greater (the State Goal established with USDOL).
• Incentive Eligibility Standard – the LWIA achieves 120% or greater of their LWIA Goal (expressed as “# of positive outcomes”).
• Sanction Status Standard – the LWIA does not achieve an Adult Entered Employment Rate of at least 48.0% (equal to 80% of the State Goal established with USDOL).
• Incentive Grant Amount – 1% of the LWIA’s PY2007 WIA Title 1B Adult allocation.
• LWIA Goals – Attachment 5 provides NYSDOL’s proposed LWIA Goals for this indicator, including the data used to determine the goals.

Adult Employment Retention Rate (Staff Assisted Service)

• State Goal – Achieve an Adult Employment Retention Rate (staff assisted service) of 81.0% or greater (the State Goal established with USDOL).
• Incentive Eligibility Standard – the State is not establishing an incentive standard for this indicator.
• Sanction Status Standard – the LWIA does not achieve an Adult Employment Retention Rate of at least 64.8% (equal to 80% of the State Goal established with USDOL).
• LWIA Goals – Attachment 6 provides NYSDOL’s proposed LWIA Goals for this indicator.

Adult Average Earnings (Staff Assisted Service)

• State Goal – Achieve an Adult Average Earnings (staff assisted service) of $12,500 or greater (the State Goal established with USDOL).
• Incentive Eligibility Standard – the State is not establishing an incentive standard for this indicator.
• Sanction Status Standard – the LWIA does not achieve an Adult Average Earnings of at least $10,000(equal to 80% of the State Goal established with USDOL).
• LWIA Goals – Attachment 6 provides NYSDOL’s proposed LWIA Goals for this indicator.

DW Entered Employment Rate (Staff Assisted Service)

• State Goal – Achieve a DW Entered Employment Rate (staff assisted service) of 60.0% or greater (the State Goal established with USDOL).
• Incentive Eligibility Standard – the LWIA achieves 120% or greater of their LWIA Goal (expressed as “# of positive outcomes”).
• Sanction Status Standard – the LWIA does not achieve a DW Entered Employment Rate of at least 48.0% (equal to 80% of the State Goal established with USDOL).
• Incentive Grant Amount – 1% of the LWIA’s PY2007 WIA Title 1B DW allocation.
• LWIA Goals – Attachment 7 provides NYSDOL’s proposed LWIA Goals for this indicator, including the data used to determine the goals.

DW Employment Retention Rate (Staff Assisted Service)

• State Goal – Achieve a DW Employment Retention Rate (staff assisted service) of 81.0% or greater (the State Goal established with USDOL).
• Incentive Eligibility Standard – the State is not establishing an incentive standard for this indicator.
• Sanction Status Standard – the LWIA does not achieve a DW Employment Retention Rate of at least 64.8% (equal to 80% of the State Goal established with USDOL).
• LWIA Goals – Attachment 8 provides NYSDOL’s proposed LWIA Goals for this indicator.

DW Average Earnings (Staff Assisted Service)

• State Goal – Achieve an Adult Average Earnings (staff assisted service) of $15,825 or greater (the State Goal established with USDOL).
• Incentive Eligibility Standard – the State is not establishing an incentive standard for this indicator.
• Sanction Status Standard – the LWIA does not achieve a DW Average Earnings of at least $12,660(equal to 80% of the State Goal established with USDOL).
• LWIA Goals – Attachment 8 provides NYSDOL’s proposed LWIA Goals for this indicator.

Youth Placement in Employment or Education (WIA Title 1B Youth)

• State Goal – Achieve a Youth Placement in Employment or Education rate of 45.0% or greater (the State Goal established with USDOL).
• Incentive Eligibility Standard – the State is not establishing an incentive standard for this indicator.
• Sanction Status Standard – the LWIA does not achieve a Youth Placement in Employment or Education rate of at least 36% (equal to 80% of the State Goal established with USDOL).
• LWIA Goals – Attachment 9 provides NYSDOL’s proposed LWIA Goals for this indicator.

Youth Attainment of Degree or Certificate (WIA Title 1B Youth)

• State Goal – Achieve a Youth Attainment of Degree or Certificate rate of 35.0% or greater (the State Goal established with USDOL).
• Incentive Eligibility Standard – the State is not establishing an incentive standard for this indicator.
• Sanction Status Standard – the LWIA does not achieve a Youth Attainment of Degree or Certificate rate of at least 28% (equal to 80% of the State Goal established with USDOL).
• LWIA Goals – Attachment 9 provides NYSDOL’s proposed LWIA Goals for this indicator.

Youth Literacy and Numeracy Gain (WIA Title 1B Youth)

• State Goal – Achieve a Youth Literacy and Numeracy Gain of 33.0% or greater (the State Goal established with USDOL).
• Incentive Eligibility Standard – the State is not establishing an incentive standard for this indicator.
• Sanction Status Standard – the LWIA does not achieve a Youth Literacy and Numeracy Gain of at least 26.4% (equal to 80% of the State Goal established with USDOL)..
• LWIA Goals – Attachment 9 provides NYSDOL’s proposed LWIA Goals for this indicator.

Questions regarding this Technical Advisory may be directed to your respective Workforce Development staff.

1. Reemployment Services Implementation
2. Increase Training Services
3. Increase Out-of-School Youth Participation
4. Improve Entered Employment Rate and Employment Retention Rate Performance
5. Adult Entered Employment Rate (Staff Assisted Service)
6. Adult Employment Retention Rate (Staff Assisted Service) and Adult Average Earnings (Staff Assisted Service)
7. DW Entered Employment Rate (Staff Assisted Service)
8. DW Employment Retention Rate (Staff Assisted Service) and DW Average Earnings (Staff Assisted Service)
9. Youth Common Measure Indicators (WIA Title 1B Youth)