State of Wisconsin PY16-19 WIOA Combined State Plan, October 20, 2016 TABLE OF CONTENTS OVERVIEW ..................................................................................................................................................... 3 I. WIOA STATE PLAN TYPE ......................................................................................................................... 4 II. STRATEGIC ELEMENTS ............................................................................................................................ 5 (a) Economic, Workforce, and Workforce Development Activities Analysis .............................. 5 (b) State Strategic Vision and Goals. ......................................................................................... 30 (c) State Strategy ....................................................................................................................... 33 III. OPERATIONAL PLANNING ELEMENTS .................................................................................................. 40 (a) State Strategy Implementation ............................................................................................ 40 (b) State Operating Systems and Policies .................................................................................. 56 IV. COORDINATION WITH COMBINED STATE PLAN PROGRAMS .............................................................. 84 V. COMMON ASSURANCES ....................................................................................................................... 84 VI. PROGRAM-SPECIFIC REQUIREMENTS FOR CORE PROGRAMS............................................................... 85 Adult, DW and Youth Activities under Title I-B .......................................................................... 85 Wagner-Peyser Act Program (Employment Services) .............................................................. 117 Adult Education and Literacy Programs ................................................................................... 139 Vocational Rehabilitation ......................................................................................................... 155 Appendix 1: Performance Goals for the Core Programs .......................................................... 232 VII. PROGRAM-SPECIFIC REQUIREMENTS FOR COMBINED STATE PLAN PARTNER PROGRAMS ............. 235 Trade Adjustment Act ............................................................................................................... 235 Jobs for Veterans State Grants ................................................................................................. 239 Appendix 2: Wisconsin WIOA Allocation Process..................................................................... 252 ~ 2 ~ State of Wisconsin PY16-19 WIOA Combined State Plan, October 20, 2016 OVERVIEW Wisconsin's economy is strong and continuing to grow. The Wisconsin workforce, raised with strong Midwest values of hard work and dedication, has lowered the state's unemployment rate to its lowest since 2001, below the national average. Open job positions and a willing workforce will help keep Wisconsin's economy strong. However, workforce projections show that over the next ten years there will be a worker shortage largely due to the number of Baby Boomers retiring. The skills gap also prevents individuals from finding meaningful employment and employers from filling open positions. Resources and partnerships are needed to overcome these workforce huddles and meet the needs of industries that keep our State's and country's economy growing. The Workforce Innovation and Opportunity Act (WIOA) challenges the State to combine resources and create partnerships, look to labor market data and industry research to determine which skills the workforce needs and to focus on the creation of a workforce that can meet the expectations of the future economy. Wisconsin's Department of Workforce Development (DWD) and the Wisconsin Technical College System (WTCS) already have a strong tradition of utilizing partnerships to support and grow its workforce creating a foundation for implementing WIOA. The WIOA Combined State Plan builds from this groundwork, creating one talent development system with a "no wrong door" approach to enhance the services available to the current and future workforce. Over the next few years, the State will upgrade data and case management systems to achieve the strategic goals outlined in this plan. These strategic goals were developed through collaboration with our partners and stakeholders, forming a solid foundation for WIOA's success in Wisconsin. This WIOA Combined State Plan was jointly developed by one state team, guided by the WIOA Leadership Team. The WIOA Leadership Team is comprised of executive level leadership from all of Wisconsin's combined state plan programs. The strategic and operational planning elements were written with input from and approval by the WIOA Leadership Team, while program-specific requirements were written by each program and shared for vetting with the WIOA Leadership Team. ~ 3 ~ State of Wisconsin PY16-19 WIOA Combined State Plan, October 20, 2016 I. WIOA STATE PLAN TYPE Unified or Combined State Plan. Select whether the State is submitting a Unified or Combined State Plan. At a minimum, a State must submit a Unified State Plan that covers the six core programs. Combined State Plan. This plan includes the Adult Program, Dislocated Worker Program, Youth o Program, Wagner-Peyser (WP) Act Program, Adult Education and Family Literacy Act Program, and Vocational Rehabilitation Program as well as one or more of the optional Combined State Plan partner programs identified below. • Indicate which Combined State Plan partner program(s) the State is electing to include in the plan. Trade Adjustment Assistance for Workers Programs (Activities authorized under o chapter 2 of title II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.)) Jobs for Veterans State Grants Program (Programs authorized under 38, U.S.C. 4100 et. o seq.) Wisconsin is submitting a combined plan with the following programs: A. Title 1: Adult, Dislocated Worker (DW) and Rapid Response B. Title 2: Adult Basic Education C. WP D. Vocational Rehabilitation (VR) E. Jobs for Veterans State Grant F. Trade Adjustment Act ~ 4 ~ State of Wisconsin PY16-19 WIOA Combined State Plan, October 20, 2016 II. STRATEGIC ELEMENTS (a) Economic, Workforce, and Workforce Development Activities Analysis. The Unified or Combined State Plan must include an analysis of the economic conditions, economic development strategies, and labor market in which the State’s workforce system and programs will operate. Wisconsin's economy continued to grow through 2015. Employment levels are near all-time highs and unemployment is on par with prerecession levels. Wisconsin's unemployment rate has declined steadily from 6.3% in December of 2013 to 5.2% in December of 2014. The real story in Wisconsin is not of industry job growth or occupational demand; rather, it is one of labor force and talent constraints. There is existing demand for jobs in almost every industry, occupation, and geography. The underlying quantity issue is the cause of the "skills gap". If you don't have enough bodies, you won't have enough nurses, welders and programmers; the skill gap becomes ubiquitous. Slowing population growth, retiring Baby Boomers, lower participation by younger workers (16-19), and attractiveness to place or location are shifting the incentives for workers within and outside the state. Wisconsin's population growth is predicted to steadily slow after 2020, as the birth-to-death ratio goes from 1.46 to 1.11, and net migration declines as well. Moreover, the state's population is aging. The percentage of Wisconsin's population 65 years and older was 13.7% in 2010. That percentage increases to 23.7% in 2040, almost doubling in number. Meanwhile, the percentage of the working age population (18-64) goes from 62.8% in 2010 to 55.1% in 2040. According to the Wisconsin DWD Bureau of Workforce Information and Technical Support (BWITS) projection model simulations, an estimated 46,000 jobs could go unfilled in the state in the year 2022 due to labor force quantity constraints. Following is an overview of the economic and workforce situation in Wisconsin. It is worth reiterating that the critical workforce endeavor in the state is to address the quantity challenge, as it is the underlying driver for future economic, jobs, and skills expansion. Below is an explanation of the state's quantity challenge. This report then describes the strategic programs being developed that will help to meet the state's employers' quantity and quality requirements. ~ 5 ~ State of Wisconsin PY16-19 WIOA Combined State Plan, October 20, 2016 (1) Economic and Workforce Analysis (A) Economic Analysis. The Unified or Combined State Plan must include an analysis of the economic conditions and trends in the State, including sub-state regions and any specific economic areas identified by the State. Almost every industry, occupation, and geography has shown annual job growth through this recovery. • Total jobs as based on Quarterly Census of Employment and Wages (QCEW) data increased by over 36,000 or 1.3% through 2014. • Private sector jobs showed a healthier increase of 1.5%, almost 36,000 jobs. • Construction jobs increased by almost 6,200; a vibrant 6.5% growth in 2014. • Manufacturing jobs gained over 6,500 jobs for a 1.4% increase, with food, plastics, fabricated