In July, the LePage administration asked U.S. Labor Secretary Alexander Acosta to allow Maine to replace the three regional workforce boards with just one state-run entity to oversee job training for laid-off workers and others. In anticipation of a favorable response, the Maine Department of Labor only released a small amount of federal funds to the workforce boards, not their full, annual allotment.
When the U.S. Department of Labor rejected the governor’s request (for a third time since 2012) to eliminate the regional workforce boards, the LePage administration reacted by withholding $8 million in federal funds from the boards and informed the department that Maine would no longer participate in Workforce Innovation and Opportunity Act-funded program, which governs the workforce boards, and send the funds back.
Exactly why the governor responded as he did is vexing. It appears, however, that the bulk of his argument is based on faulty assumptions and erroneous information. During a meeting with two county commissioners who are the designated chief elected officials from two of the three workforce regions last week, the governor, citing data from the Maine Department of Labor, claimed that 72 percent of the funds spent by the workforce boards are for “administrative” costs, while only 28 percent are used for direct participant costs, such as training. He is gravely misinformed about the Workforce Innovation and Opportunity Act program.
These figures completely mischaracterize the intent and purpose of the law funding the workforce boards. Although it is absolutely true that 28 percent (or more) of the funds are being used to cover direct participant costs for “training,” such as classes and needed supportive services, characterizing the 72 percent expended as bloated overhead is both inaccurate and untrue.
A good portion of the 72 percent is, in fact, spent on crucial case management services. The majority of customers who are serviced are those “most in need” and therefore require intensive case management to be successful. They have multiple barriers to employment, requiring assistance with resume development, career exploration, testing and assessment, and job coaching, in addition to one-on-one counseling.
Interestingly, not only are these services needed by most job seekers in order to be successful, but the law funding the boards requires the provision of these services. It is not an option to stop providing case management services under this program.
The remainder of the 72 percent is spent on service locations. Although, to the extent possible, our system uses free space when it’s available, sometimes offices have to be rented. Having office space to provide services is also crucial. We cannot conduct business on the street.
The Workforce Innovation and Opportunity Act has many requirements that come with it, including accountability measures called “performance outcomes.” A workforce region must meet these performance outcomes (entered employment rate, employment retention, average earnings, placement in employment or education, degree or certificate attainment, and so on) or sanctions are imposed on the workforce board. Frankly, Maine’s workforce boards have performed strongly over the years.
The Workforce Innovation and Opportunity Act provides governors with flexibility to infuse the system with additional funding. For instance, Gov. Paul LePage has the option of directing a portion of the state’s administrative funding to supplement workforce development programs, although he has never exercised that option. (It would be helpful to understand what the state does with all the administrative funding it receives.) Perhaps LePage should task the state board to work with the local workforce boards to develop a plan to release some of these funds? Or, perhaps a study can be undertaken analyzing the return on investment for Maine’s entire workforce system?
Certainly, either of these two undertakings would be far more productive than continuing to withhold important training funds from the residents of this state.
Michael Bourret is the executive director of Coastal Counties Workforce Inc. in Brunswick.