Commission Meeting Materials March 9, 2016 10:00 A.M. - Acceptance of the Permian Basin

1 WORKFORCE INNOVATION AND OPPORTUNITY ACT 2 ADDITIONAL ASSISTANCE FOR DISLOCATED WORKERS FUNDING 3 DISCUSSION PAPER 4 5 Background 6 Beginning in September 2014, the Permian Basin Workforce Development Board (Board) has 7 been experiencing significant unemployment insurance (UI) claim volume due to layoffs in the 8 oil and gas industry and related businesses. The Texas Workforce Commission January 15, 9 2016, Oil and Gas Claims Report highlights a 47 percent increase in UI claims on total industry 10 from the previous year, while the “Support Activities for Oil and Gas Operations” metric 11 increased 73 percent from UI claims filed for the same period last year. The Permian Basin local 12 workforce development area (workforce area) continues to see a major downward shift in oil and 13 gas prices, obliging several companies to lay off their workforces. The Board’s contractor has 14 obligated all available Workforce Innovation and Opportunity Act (WIOA) Dislocated Worker 15 funds and has a wait list of 75–100 potential customers. 16 17 Issue 18 The Board reports more than 4,600 customers applying for unemployment benefits from 19 February 2015 to August 2015, with 900 individuals being laid off in January 2016. During the 20 same time period, there also has been a sharp increase in Worker Adjustment and Retraining 21 Notification Act (WARN) notices, impacting over 450 customers. Additionally, Workforce 22 Solutions Offices report large increases in the number of dislocated workers requesting training. 23 24 The Board is requesting WIOA Additional Assistance for Dislocated Workers funds in the 25 amount of $251,000. Funds will be used through August 31, 2016, to: 26  provide quality training in targeted occupations and support services for approximately 28 to 27 35 customers; and 28  fund support staff on a temporary basis, allowing the Board to provide the level of 29 support necessary to serve the numerous individuals seeking assistance through Workforce 30 Solutions Offices. 31 32 Recommendation 33 Staff recommends that $251,000 in WIOA Additional Assistance for Dislocated Workers 34 funding be distributed to the Permian Basin workforce area for the purposes described above. 35 The Board may request a second increment of funding should the needs in the area persist.

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