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HomeMy WebLinkAbout20A - AA - WIOA FUNDSREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MARCH 1, 2016 TITLE: APPROPRIATION ADJUSTMENT - WORKFORCE INNOVATION AND OPPORTUNITY ACT FUNDS FOR PROGRAM YEAR 2015 -2016 {STRATEGIC PLAN NO. 2,41 CITY MAN GER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED [7 As Recommended [I As Amended rl Ordinance on 1" Reeding L1 Ordinance on 2 "d Reading 171 Implementing Resolution 0 Set Public Hearing For CONTINUED TO FILE NUMBER Approve an appropriation adjustment recognizing additional Workforce Innovation and Opportunity Act grant funds in the total amount of $104,529 in revenue account (no. 12318002- 52001) and appropriating as follows: • $ 2,021 in Administrative Allowance funds to account no. 12318752 - 69011; • $ 9,254 in Adult funds to account no. 12318753- 69011; • $ 8,951 in Dislocated Worker funds to account no. 12318754 - 69011; • $84,303 in Rapid Response funds to expenditure account no. 12318756- various. DISCUSSION The federal Workforce Innovation and Opportunity Act (WIOA) was signed into law on July 22, 2014. WIOA is designed to help job seekers access employment, education, training, and support services to succeed in the labor market and to match employers with the skilled workers they need to compete in the global economy. WIOA supersedes the Workforce Investment Act of 1998 and is the first legislative reform of the public workforce system in 15 years. The WIOA went into effect on July 1, 2015 with the Department of Labor responsible for its implementation. California is a direct recipient of WIOA funding and contracts with designated Local Workforce Development Areas (LWDA) to address workforce needs of employers and the community. The California Workforce Investment Board recommended approval that Santa Ana be designated as a local workforce development area under WIOA. The Governor and Secretary of the Labor and Workforce Development Agency concurred with the recommendation. The designation is from July 1, 2015 to June 30, 2017 and will be reviewed and evaluated every two years against federal performance and compliance outcomes. 20A -1 Appropriation Adjustment — WIOA Grant Funds FY 15 -16 March 1, 2016 Page 2 On August 18, 2015, City Council authorized the execution of a new sub -grant agreement with the Workforce Services Division of the State Employment Development Department (EDD) and approved an appropriation adjustment to recognize the $13,554 additional Youth funds that were not anticipated at the time of the Fiscal Year (FY) 2015 -16 budget adoption. EDD has disbursed additional program funds to the Santa Ana Local Workforce Board through unilateral sub -grant modifications to the agreement. The final amounts of the WIOA funds allocated to Santa Ana Local Workforce Board for Program Year 2015 -16 are shown in the table below: The WIOA regulations allows each LWDA to use ten percent of Adult, Dislocated Worker, and Youth funds for administrative costs. Ten percent of the additional Adult and Dislocated Worker funds is $2,021. The remaining Adult and Dislocated Worker funds will be utilized to provide career and training services to participants in the community that need assistance. Rapid Response funds will be used to plan for and respond to layoffs and dislocations, and preventing or minimizing their impacts on workers and businesses. STRATEGIC PLAN ALIGNMENT Approval of these items assists the City in meeting Goal #2 — Youth, Education, Recreation, Objective #4 (Partner with groups and organization to promote education, senior services, job training and development for all Santa Ana residents). FISCAL IMPACT The adopted FY 2015 -16 budget included the estimated $1,100,490, $702,725, and $173,260 in WIOA Adult, Dislocated Worker, and Rapid Response grant funding, respectively. The final program allocation total for these three programs is $104,529 greater than the original amount budgeted. Approval of the appropriation adjustment will recognize $104,529 in revenue account (no. 12318002 - 52001) and increase the FY 2015 -16 expenditure accounts in the Rapid Response program budget by $84,303, and appropriate $20,226 for expenditure in FY 2016 -17 for the remaining programs as follows: 20A -2 Adult Dislocated Worker Youth Rapid Response Totals Final Allocation Amounts $1,110,771 $712,670 $1,136,469 $257,563 $3,217,473 Budgeted Amounts $1,100,490 $702,725 $1,122,915 $173,260 $3,099,390 Difference $ 10,281 $ 9,945 $ 13,554 $ 84,303 $ 118,083 The WIOA regulations allows each LWDA to use ten percent of Adult, Dislocated Worker, and Youth funds for administrative costs. Ten percent of the additional Adult and Dislocated Worker funds is $2,021. The remaining Adult and Dislocated Worker funds will be utilized to provide career and training services to participants in the community that need assistance. Rapid Response funds will be used to plan for and respond to layoffs and dislocations, and preventing or minimizing their impacts on workers and businesses. STRATEGIC PLAN ALIGNMENT Approval of these items assists the City in meeting Goal #2 — Youth, Education, Recreation, Objective #4 (Partner with groups and organization to promote education, senior services, job training and development for all Santa Ana residents). FISCAL IMPACT The adopted FY 2015 -16 budget included the estimated $1,100,490, $702,725, and $173,260 in WIOA Adult, Dislocated Worker, and Rapid Response grant funding, respectively. The final program allocation total for these three programs is $104,529 greater than the original amount budgeted. Approval of the appropriation adjustment will recognize $104,529 in revenue account (no. 12318002 - 52001) and increase the FY 2015 -16 expenditure accounts in the Rapid Response program budget by $84,303, and appropriate $20,226 for expenditure in FY 2016 -17 for the remaining programs as follows: 20A -2 Appropriation Adjustment — WIOA Grant Funds FY 15 -16 March 1, 2016 Page 3 Accounting Unit 12318756 12318748 ipa? l-IF1*3 12318754 Program Rapid Response WIB Admin Adult Dislocated Worker Kelly Reenders Executive Director Community Development Agenpy Expenditure in FY Amount 2015 -16 $ 84,303 2016 -17 2,021 2016 -17 9,254 2016 -17 8,951 TOTAL: $104,529 APPROVED AS TO FUNDS AND ACCOUNT: I Francisco Gutierrez Executive Director Finance and Management Services Agency 20A -3 20A -4