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Economic Stimulus and Recovery


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      Quick Links: 
      About the ARRA 
      Updates and Announcements
      National Current Developments 
      Publications 
      Resources

About the American Recovery and Reinvestment Act of 2009

Thanks to the passage of the American Recovery and Reinvestment Act (ARRA), the Federal government is helping states recover from the recession. While the majority of the funds will flow through existing state programs and formulas, there are also billions in competitive grant dollars. Virginia's Community Colleges, Office of Workforce Development Services will be receiving ARRA funds for job creation, job training and job placement services for Virginians.  The majority of these funds will go to Local Workforce Investment Boards to develop programs to meet local needs.  Visit this Web site in the near future to learn more about these programs as Federal guidance is developed.


Updates and Announcements

State Recovery Act Leads Meet in DC

On November 9 and 10, NGA hosted a meeting of governor appointed state Recovery Act leads titled Recovery Act Implementation: Where We’ve Been and Where We are Going.  The meeting was held in Washington, DC and included representatives from 48 states and all the territories.  The purpose of the meeting was to identify common issues, problems and solutions states are experiencing in administering the Recovery Act funds and to have high-level policy discussions with administration and federal agency officials to address the issues. 

The Office of Management and Budget and the Recovery Accountability and Transparency Board (“Rat board”) participated in a dialog on the 1512 reporting requirement under the Recovery Act.  The 1512 data from states was made public through the federal Recovery website and includes performance and job creation data from the Act's inception through the close of the first quarterly reporting period ending September 30. 

The Department of Labor sent two officials to the meeting; Thomas Dowd, from the Office of Policy Development, Evaluation, and Research in the Employment and Training Administration gave a brief overview of implementation of Recovery Act funds for WIA programs. Thomas Markey, from the Wage and Hour Division of the Employment Standards Administration addressed issues related to implanting Davis Bacon Act provisions for the Department of Energy’s Weatherization Assistance Program.

ETA, EPA and American Water Works Association Announce New Water Sector Competency Model

Over the past year the American Water Works Association (AWWA) worked with its membership to identify the occupation specific competencies required for workers in the Water Sector.  In collaboration with the Environmental Protection Agency, Office of Water and the Water Environment Federation (WEF), the results of those efforts were formatted into a competency model using the framework provided by the Employment and Training Administration.

The Water Sector, which depicts the core competencies required for field staff and operators, will be a resource for workforce developers and educators.  The new Water Sector Competency Model depicting the core competencies required for field staff and operators is now available at: http://www.careeronestop.org/COMPETENCYMODEL/pyramid.aspx?WS=Y .


National Current Developments


President Announces a Forum on Jobs and Ecnoomic Growth

President Obama announced that he will host a forum on jobs and the economy this December.  The announcement came as the President was preparing to leave for his trip to Asia on Thursday morning.  The President also made a brief statement about the economy.

According to the White House, the December forum will include CEOs and small business owners, economists and financial experts, as well as representatives from labor unions and nonprofit groups.  The participants will discuss what policies could lead to the creation of jobs. The President also announced that he would press foreign leaders to further open their markets to U.S. goods.

House-Passed Health Care Reform Bill Includes Online Health Workforce Training Program

The House Health Care bill, HR 3962, that passed last Saturday includes an amendment to the Workforce Investment Act of 1998.  The amendment could have implications for industry partnerships and sector strategies, and for online learning.

Section 2591 adds an Online Health Workforce Training Program.  The program would award competitive grants for online training for individuals to attain or advance in health care occupations.  Grantees could leverage Federal, State, local or private resources “to expand the participation of businesses, employees, and individuals in such training programs”.

• Eligible entities: educational institutions, nonprofits, workforce investment boards, local/county governments.
• Authorized appropriation: $50 million for FY 2011-2020
• Data collection: numbers of participants, services received, completion rates, factors for non-completion, job placement.

Additionally, another grant to one or more postsecondary institutions would establish a clearinghouse of the data and best practices created under the Online Health Workforce Training Program and provide technical assistance to grantees.  This grant has a separate appropriation of $1 million for FY 2011-2020.

President Obama launches Veteran Employment Initiative

On Monday, President Obama signed an Executive Order on the Employment of Veterans in the Federal Government, an initiative designed to transform the federal government into the model employer of America's veterans.  The Executive Order establishes the Veterans Employment Initiative for the Executive Branch and highlights the important role federal agencies play in recruiting and training veterans, increasing the employment of veterans within the Executive Branch, and helping recently hired veterans adjust to service in a civilian capacity.

DOL Issues Guidance on Priority of Service for Veterans in Job Training Programs**
DOL’s Employment and Training Administration and the Veterans’ Employment and Training Service issued joint guidance on the Priority of Service for Veterans and Eligible Spouses Final Rule.  The Jobs for Veterans Act passed in 2002 established a priority of service requirement for veterans, spouses, widows and widowers in qualified job training programs, and since that time, recipients and sub-grantees of DOL funds have been required to provide the veteran’s preference.

The Training and Employment Guidance Letter (TEGL) released this week provides additional information to state agencies and state workforce boards operating programs funded by the DOL and signals to grant recipients to review and revise current policies and procedures to ensure adequate protocols are in place.  DOL-funded programs subject to the regulations include all Workforce Investment Act and Wagner-Peyser activities and the Trade Adjustment Assistance programs.

To view a copy of the Final Rule, go to http://wdr.doleta.gov/directives/attach/TEGL/TEGL10-09.pdf.

Third Quarter Extended Mass Layoff Report Released

The third quarter extended mass layoff report released this week by the DOL’s Bureau of Labor Statistics set a record high for any third quarter since the data collection began in 1995, with nine major industry sectors and 15 states also reaching record highs.  Over the quarter, there were 1,776 mass layoffs that resulted in the separation of 277,924 workers from their jobs.  Only 22 percent of employers reporting a mass layoff expected to recall workers.  The BLS defines extended mass layoffs as involving 50 or more initial unemployment insurance claims against an employer during a five-week period.  Manufacturing firms experienced 511 extended mass layoff events involving 80,135 separations in the third quarter and were responsible for 29 percent of extended layoff events and related job separations.  A year earlier, manufacturing made up 31 percent of events and 33 percent of separations.  The construction industry came in a distant second with 302 mass layoff events and 34,135 job separations.  Among the four census regions, the West and the Midwest recorded the highest numbers of separations due to extended mass layoffs.  After excluding the impact of seasonal reasons, California reported the highest number of job cuts (81,079), followed by Florida (24,066) and Pennsylvania (16,833).

To view a copy of the report, go to www.bls.gov/news.release/pdf/mslo.pdf.


Recent Publications

The Workforce Strategy Center Issues Two Publications

• Effective Employer Engagement: The Year Up Model examines the Year Up program in this second in a series of studies on how successful programs engage employers in the education and training of young adults.

• Employers, Low-Income Young Adults, and Postsecondary Credentials: A Practical Typology for Business, Education and Community Leaders highlights programs in 14 communities that are successfully addressing the challenge of providing disadvantaged young adults with the technical and postsecondary education that may qualify them for skilled positions.

Help Wanted: Postsecondary Education and Training Required
A recent chapter in a publication called “New Directions in Community Colleges” authored by Anthony P Carnevale and two other professors from Georgetown University Center on Education and the Workforce asserts that postsecondary credentials are increasingly important for achieving middle-class earnings and status. 

To read the chapter, go to: http://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/HelpWanted.pdf

Help Small Businesses Hire Again
Mark Zandi, Op-Ed Contributor
NY Times
“Finally, the government could help minimize the number of new job losses by promoting work-share programs.”

Report: 10 States Face Looming Budget Disasters
Associated Press
A study released this week by the Pew Center of the States warned that at least ten big states are barreling toward economic disaster, raising the likelihood of higher taxes, more government layoffs and deep cuts in services.

Game Developer’s Newest ‘Call of Duty’” Help Vets Find Jobs
Washington Post
A video game company is donating $1 million on Tuesday to set up a foundation to help veterans find employment, organizers announced.

In N.C., Damage Not Easily Mended
Washington Post
Globalization drives unemployment to 15% in one corner of state (story about the TAA program)

Rules Set for $4 Billion ‘Race to the Top’ Contest
Education Week
For a good shot at the $4 billion in grants from the federal Race to the Top Fund, states will need to make a persuasive case for their education reform agenda, demonstrate significant buy-in from local school districts, and develop plans to evaluate teachers and principals based on student performance, according to final regulations set for release Thursday by the U.S. Department of Education.  

States face more cutbacks and tax hikes
CNN Money
While the national economic picture is starting to brighten, the states are still suffering their worst budget crises in decades, a new report found.

Obama calls for White House Summit on Job Creation
The Washington Post
President Obama plans to hold a White House forum on job creation next month, an attempt to signal his concern about the growing ranks of the unemployed and build consensus on future action to stoke the economy.

Resources

Recovery.gov
ARRA presentation

ARRA legislation


Eastern Shore Community College student, Nicole Justis, works as an avionics installation technician for BaySys Technologies.

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