Incentive Policy for Exemplary Performance

New York State Department of Labor will set aside three million dollars ($3,000,000) or one percent (1%) of the State’s WIA Title I-B formula allocations, whichever is less, in each Program Year to be awarded to Local Workforce Investment Areas (LWIAs) as WIA Title I-B performance incentive grants, commencing with July 1, 2005. Of the total available:

• 33% will be set aside and made available to Local Workforce Investment Boards that achieve their local performance standards by an average of 100% or more for the 17 WIA Title I-B performance measures;

• 33% will be set aside and made available to Local Workforce Investment Boards that achieve their local performance standards by an average of 110% or more for the 17 WIA Title I-B performance measures;

• 33% will be set aside and made available to Local Workforce Investment Boards that achieve their local performance standards by an average of 120% or more for the 17 WIA Title I-B performance measures.

Should New York State become eligible for and receive federal performance incentive funds, it is our intent to make these funds available to those Local Workforce Investment Boards in the same proportion as delineated in this policy. Plan guidelines for the federal performance incentive funds will be issued at a later date.

• Local Workforce Investment Boards on behalf of their areas and chief elected official(s) would be deemed eligible to be considered for incentive grants if the local area passes (meets at least 80%) each of the 17 WIA Title I-B performance standards; and

• Must attain one of the three benchmarks set forth in the “Performance Scoring Average” of 100%, 110% or 120% for all 17 WIA Title I-B performance standards. (An illustration of the methodology for incentive grants is attached, along with a definition of “Performance Scoring Average.”)

Note: NYSDOL reserves the right to not make available incentive grants to the LWIB if customer service levels for the WIA Title I-B programs are significantly below the historical pattern for the local area and/or historical averages for the State.

NYSDOL, upon completion of its final analysis of all LWIB performance outcomes, will post the results on the NYSDOL website, including identification of those LWIBs that are eligible for incentive grant considerations. The eligible LWIBs will be required to submit an incentive grant plan for NYSDOL review and approval prior to the awarding of the incentive funds. Once incentive funds are awarded to LWIBs, these funds must be fully accrued within 12 months of the date of the award.

Sanction Policy for Not Meeting Performance

The sanction policy will become effective with the outcomes reported for Program Year 2004 WIA Title I-B measures.

Sanction Level 1

A LWIB and local area that fails to meet its negotiated level of performance for any of the core indicators of performance or customer satisfaction will be subject to the following actions:

1. mandatory participation in technical assistance as determined by the Department.

2. preparation and submittal of a performance improvement plan to the Department.

The performance improvement plan must include:

1. a corrective action plan to improve performance, including identification of the measures that will be taken to improve performance, and a timetable for implementing the measures.

2. a written assurance that the Local Workforce Investment Board understands and can administer its duties and responsibilities with regard to State policy and Federal law regarding WIA rules, regulations and reporting responsibilities.

Sanction Level 2

Should a local area fail to meet its negotiated level of performance for any one of the core indicators of performance or customer satisfaction for two or more consecutive years, the NYSDOL will proceed to impose any of the penalties on the LWIB as referenced in the WIA regulations, Section 666.420, based upon a state level analysis on underlying causes for underperformance, including but not limited to the imposition of a fiscal sanction of three percent (3%) from that program funding stream for which the standard was not attained.

Questions regarding this Technical Advisory may be directed to your respective Workforce Development staff.