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Under the American Recovery and Reinvestment Act, DLLR expects to
receive roughly $34 million in Workforce Investment Act and Wagner-Peyser
dollars and roughly $9 million to administer the states unemployment
insurance program. Other potential funding streams are outlined below.
Job creation and workforce development are the cornerstones of the recovery package. The Act contemplates the creation and retention of thousands of jobs through funding for infrastructure, school construction, retrofitting and weatherization projects, among others. While the funding for these projects and programs will go directly to a variety of other state agencies, the job training component will require close coordination with DLLR and the state's workforce development system. Ensuring strategic deployment of these funds and full access to all of the competitive opportunities will require unprecedented interagency coordination at the state level. DLLR looks forward to expanding existing partnerships with our sister agencies to capitalize on this unprecedented opportunity to prepare Maryland's workforce.
A. Overview of Unemployment Insurance Funds
The Unemployment Insurance (UI) components of the Act include the following:
- Extension of UI Benefits: A further extension of benefits through May 31, 2010. Federal funds would be used for the extension payments.
- Weekly Supplement: Fact Sheet - $25 Federal Additional Compensation
(FAC) Payment Information
- UI Administration: Of the $500 million allocated for the administration of unemployment insurance, Maryland's share will be $9.1 million. These funds will go into the UI Trust Fund. We are awaiting further guidance on the allowable uses from USDOL, but it is our understanding that these funds may be used for the following activities:
- Improvement of UC benefit and tax operations
- Staff -assisted reemployment services to UC claimants
- UI Modernization Funds: There is the potential for a $7 billion Reed Act distribution for states that have certain legal provisions in place by August 30, 2011. Maryland's share of this portion is $126.8 million. These funds would be deposited in the State's UI trust fund and could be used for benefits or administrative purposes. States must apply for the distribution by August 30, 2011, and the state's legal provisions must be enacted by that time.
B. Overview of Workforce Development Funds
1. Workforce Investment Act Funds
Maryland is poised to receive an additional $27.8 million in adult, dislocated worker and youth funds under the Workforce Investment Act. While we are awaiting definitive guidance from USDOL, we anticipate that 85% (or
$21.6 million) of these funds must be allocated to local workforce investment areas (WIA's) using a pre-determined federal formula. Under this formula, this 85 percent would be allocated to local workforce investment boards and one-stop career centers approximately as follows:
- $4.2 million for employment and training for low-income adults
- $9.8 million for youth employment and training and summer youth employment programs
- $7.6 million for dislocated workers
Close coordination with the local workforce investment areas is critical to the successful and speedy expenditure of these ARRA funds.
2. Wagner-Peyser Funds
DLLR will also receive $6.7 million in Wagner Peyser funds, which can be used for a variety of employment-related labor-exchanges services including job search assistance, job referrals, re-employment services for unemployment insurance claimants, and job search workshops. These funds might also be used for job fairs and hiring additional one-stop staff, improvement of the statewide labor exchange database, and IT infrastructure for case management and statistical reporting. There is no formula requirement for these funds.
3. DLLR Competitive Grant Opportunities
It is impossible to determine the number, individual amounts, and the specific requirements (including who will be eligible) for all of the competitive grant opportunities that will emerge.
We know that one area of competitive grants will be $750 million for worker training and job placement in high growth and emerging industry sectors. Of that amount, $500 million is reserved to prepare workers for efficiency and renewable energy careers and the remaining is for preparation of workers in the health sector. We will organize and plan with local WIBs and our community college partners to prepare for the upcoming Solicitations for Grant Awards (SGAs) to tap into these competitive funds. There will also be $200 million in competitive grants through National Emergency Grant funds for areas hardest hit by high unemployment or high poverty.
DLLR is ready. Over the past nineteen months, we have created regional collaborative groups with Delaware, Virginia, and the District of Columbia (the Mid-Atlantic Regional Collaborative (MARC) is an example). We must continue to develop these relationships and be ready to partner, when possible, with neighboring states and governments in the event that interstate competitive grant opportunities emerge. We anticipate that the competitive grant opportunities will involve already established policies and focus areas such as WIRED and regional activities.
DLLR has already taken many steps to ensure that we have the grant-writing infrastructure necessary to successfully compete for competitive funds:
- Nineteen months ago we established a grants office within the Division of Workforce Development and Adult Learning.
- We have also developed a strategy on how to be able to apply for multiple grant opportunities as they become available.
- The Maryland Workforce Corporation, created by legislation which takes effect July 1, 2009, will give Maryland a huge competitive advantage to acquire ARRA funds and implement recovery-related projects.
Read the Division of Workforce Developments field instructions for
more information:
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