DEPARTMENTOFEMPLOYMENTSERVICES

FY2012ProposedBudgetHearing

TestimonyofLisaM.Mallory InterimDirector DepartmentofEmploymentServices

VincentC.Gray Mayor
COMMITTEEONHOUSING&WORKFORCEDEVELOPMENT HonorableCouncilmemberMichaelA.Brown,Chairman Thursday,April21,2011

9:00am

Room120 JohnA.WilsonBuilding 1350PennsylvaniaAvenue,NW Washington,DC200043003

DepartmentofEmploymentServices FiscalYear2012ProposedBudgetHearing

TableofContents

AgencyBudgetBreakdown

1. Agency&RelatedBudgets

AgencyResponsesbySection

2. OverallBudget&Policy 3. HumanResources/Administrative/Legal 4. WorkforceInvestmentAct 5. ReturningResidents/TransitionalEmploymentProgram 6. Apprenticeship 7. LaborStandards 8. EmployerServices 9. UnemploymentInsurance

10.YouthEmployment

Department of Employment Services Budget Oversight Pre-Hearing Questions FY 2012

Overall Budget and Policy

1.

Please describe the impact of the proposed FY 12 Budget on the overall operations and effectiveness of your agency/department. Will there be any significant variations in funding expenditures between FY 11 and FY 12? If so, please identify and explain. What budget cuts are proposed within agency for FY 2012, what potential impact will these cuts have on you agency? DOES will experience a slight decrease to its federal workforce development budget now and in FY12. A 0.2% across the board reduction outlined in the federal Continuing Resolution will affect the agencys WIA budget for the remainder of PY11 (July, August, and September 2011). It has also been recently announced that for PY 2012 (July 2012 to June 2013), WIA funds will be reduced by 10% nationally, impacting service for the agencys federal adult, dislocated, and youth funds. The PY12 state agency set aside will also be reduced from 15% to 5%. Specific amounts of the impact of these changes are forthcoming from the U.S. Department of Labor. The agency is currently addressing the potential impact. Despite reductions to federal funding and special purpose revenue, the Mayors proposed budget maintains full funding for adult job training in his proposed Fiscal Year 2012 budget by increasing local funds. The Mayors proposed budget for DOES also reflects a commitment to maintain the same levels from last year to the Transitional Employment Program, despite significant local budget pressures. In FY12, the agencys Transitional Employment Program will be locally funded at $11.3 million. Additionally, DOESs local adult training funds are increased in FY12 by $2.6 million. Currently and through FY12, the agency will also benefit from a major agency policy decision to modify the cost the agency pays to training providers for adult training from up to $8,000 per year to up to $4,000 per year. This change aligns DOES with the neighboring jurisdictions of Maryland and Virginia while maximizing the number of adults receiving training through Workforce Investment Act (WIA) funds. Essentially, this change allows DOES to do more with less. DOESs FY12 budget represents a $4.4 million total increase from FY11, mainly due to an important increase in federal stimulus funds to modernize the Districts unemployment compensation program.

Page 1

2.

Please specify all capital projects, for which, your agency is seeking capital appropriations for in the FY 12 Budget. Please describe the project and the requested amount. In addition, please list all ongoing capital projects and an update concerning their status. DOES has one capital project unemployment compensation modernization. DOESs current system is an out-dated, legacy mainframe computer system that has long outlived its usefulness, and due to the national recession is trying to keep up with claims taking demands 3 to 5 times what the system was ever designed to handle. Modernization of this system is a multi-year project that focuses on developing a fully integrated (Unemployment Benefits and Tax System) robust solution resulting in efficiencies and the ability to offer broader services to the residents of the District of Columbia. All systems within the Unemployment Insurance will be integrated. Currently, DOES is preparing for this large-scale project by documenting its current processes, conducting process redesign, and stabilizing the existing mainframe and overnight updates by integrating more technology to extend the useful life of the current legacy systems. The agency also implemented new federal benefit extensions and automated where possible the high volume of manual processing. Since this modernization project is so large in scope and nearly fifty percent of the states that attempt this endeavor do not realize the full modernization initially envisioned, the agency will undergo a feasibility study in FY11 and FY12 to outline what needs to be done and to develop a realistic timeline of events and development tasks that need to take place to fully modernize. The agency will also evaluate joining a consortium of other states through the National Association of State Workforce Agencies that intend to or are modernizing their systems to fully explore the feasibility of building a common UI system for multiple states and to ensure greater cost-savings as a group purchaser. This project will first use stimulus funding before using precious local capital project funds. In FY12, DOES will use existing budget authority of $6 million for FY 2015. DOES requests an additional $5 million for a total of $11 million for the project. In addition, $7 million from stimulus funds are budgeted in FY 2014 to cover the capital related costs for the project.

3.

Describe all new program and policy initiatives your agency plans to initiate in FY 12. Please provide information regarding staffing and funding requirements. In FY11, as part of the overall effort to review all workforce development programs within the agency, DOES will assess all of the agencys programs and its internal policies. DOES will also examine all of its adult training programs, the First Source program, DC Works! Career Center service levels, and its Individual Training Account (ITA) process. All changes will reflect priorities of the Mayor to ensure a strategic focus leverages city-wide resources for job training, job creation, and workforce development, including a results-oriented onramp to full employment for DC residents. Supportive services will target multiple barriers
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to employment during period of subsidized wages, but focusing on providing placement in unsubsidized employment upon graduation with follow up services to ensure job retention. 4. Will your agency request Budget Support Act language this year? If so, please submit this information to the Committee. No. 5. Mayor Gray stated that he fully funded adult job training; please explain what that means, how much money will be available for adult job training and where we can find that in the budget? a. What are the agencys long term plans related to increasing job training opportunities for adults? The FY 2011 revised budget for the Adult Job Training program (local funds) is $7,507,825. The proposed budget for the job training program in FY 2012 is at the similar level of $7,592,795. The program is funded for both fiscal years for the same level and is fully funded by the Mayor. The general funding can be found in the Program Performance Monitoring activity code 4200, which is also the activity code for the Workforce Investment Act Individual Training Accounts (ITAs). The agency has implemented an important change to increase job training opportunities for adults. In the past, the agencys Workforce Investment Act (WIA) funds paid up to $8000 per participant in a WIA-approved training program. A review of neighboring jurisdictions state workforce agencies for the same training maximized at $4000. As of last month, the Districts training programs will also maximize at $4000, which could increase the number of adults trained in high-demand programs by 50%. DOES will ensure that all long-term plans reflect the Mayors priorities to ensure a strategic focus leverages city-wide resources for job training, job creation, and workforce development, including a results-oriented on-ramp to full employment for DC residents. Supportive services will target multiple barriers to employment during period of subsidized wages, then provide placement in unsubsidized employment upon graduation. 6. What are the agencys plans for the transitional employment program and how will Project Empowerment be administered going forward? The Transitional Employment Program (TEP) is being strengthened currently and will provide a results-oriented on-ramp to full employment for DC residents. Supportive services will target multiple barriers to employment during period of subsidized wages with a stronger focus on securing unsubsidized employment. Going forward, TEP will continue to provide skills training workshops to increase employability skills for District residents with multiple barriers to employment including the barriers faced by returning residents. These skills based trainings are intended to increase the marketability of program participants and the program will continue to provide subsidized wages for job seekers to create steady work experience.
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The skills training will meet the requirements for entrance into high demand occupations and will increase marketable skills to compete in todays competitive work force. TEP will work with community based organizations (CBOs) to provide certification and licensure training and will establish effective working partnership with the District of Columbia First Source Agreement office to identify high demand employment needs. The program will also increase the life skills and job readiness training up to six weeks and will increase job preparedness to include customer service training workshops, introduction to basic computer training, family and parenting skills training, and financial literacy workshops. The program will target its training for high demand jobs that will meet the hiring requirements for available local area jobs. An important component of the strengthening of the program will include a reduction in administrative costs to ensure more program dollars are available. The improvements will also include a renewed focus to provide support to those matched in unsubsidized positions for a period of time to ensure success in the job placement. 7. What guidance has been provided to various agency heads to put a greater focus on linking economic development, workforce development and adult education The Mayor has been clear on his priorities. He has stated in many public settings, speeches, and meetings that adult basic education, job creation, job training opportunities, workforce development, meeting hiring goals for companies that do business in the District, and creating an on-ramp to full employment for DC residents who need it are of the highest priorities for this Administration. DOES intends to do its part, as the lead workforce development and labor agency and as a partner in inter-agency collaboration to meet this objective to ensure that workforce development is also economic development. DOES currently partners with almost all of the District agencies and will continue to strengthen these partnerships through shared resources and joint problem solving and innovation.

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Human Resources/Administrative/Legal 8. What is the agencys proposed 2012 staffing level by fund source? Please describe your agencys proposed staffing responsibilities for 2012. How do they differ from staff responsibilities in FY 11?
Appropriated Fund Title Local Federal Fund Special Purpose Fund Intra-District Fund Total Fund # 100 200 600 700 FY 2012 FTEs 81 378 158 1 618 FY 2011 FTEs 65 362 186 1 614 Variance 16 17 -29 0 4 % Variance 25% 5% -16% 2% 1%

DOES is undergoing an important staff and funding exercise to correct staffing assignments to their appropriate funding sources. This exercise will allow the agency to adjust staffing allocations more appropriately. The most significant staff changes for FY12 include a reduction of TEP staff paid through special purpose funds. As part of the TEP overhaul and the staff/funding exercise, employment service to District residents who face multiple barriers to employment will be aligned through current vacancies in Career Center operations and in FY12 the majority of TEP staff will be paid through local funds.

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9.

Please provide the Committee with an organizational chart of your agency.

10.

Please list all employees within your agency, job title, grade level, start date, salary, and state of residence. ALSO SEE ATTACHMENT 1 in this section Please note that currently 60% of DOES employees live in the District.

11.

Please list and describe all proposed employee training for FY 12 and the cost associated with the training.
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In FY11, DOES created a new unit within the agency, led by a new deputy director position, to manage program performance, agency staff training and to establish key policy initiatives. The unit, which the US Department of Labor encouraged DOES to create, ensures all internal processes are clear, concise, standardized, and adhered to. This unit will ensure that internal training needs and curriculum development is in compliance with program mandates and requirements of policy and local area procedures including the use of the processing systems to blend the WHY of policy and the HOW of procedure. For the remainder of FY11, DOES will realign funding and existing staff to support this initiative, with no net impact to the current budget. This unit will review all current training offered to DOES employees and will recommend training needed to improve overall customer service and staff professionalism. This effort will incorporate the use of online options such as webinars and computer based training methods to ensure cost savings. Additionally, as part of the effort to improve the implementation of services, leverage the skills of Career Center and administrative staff, and to enhance the professional abilities of staff, DOES required staff to participate in training and certification courses led by the National Association of Workforce Development and the Maryland Institute for Workforce Excellence. Training includes courses in providing career services/ enhancing job searches, writing case notes for compliance, resume writing essentials, customer services in a One Stop environment, leadership through team building, and more. Another key employee training held in FY11 is ethics training for senior level managers in the agency. Hosted by the Office of the Attorney General, this training will be offered to the entire staff in the coming months.

12.

Are there positions, within DOES, that are currently not funded and are vacant? If so, how many? Has your agency requested funding for those positions in FY 12? Will those positions be filled in FY 12? Please explain why they were not filled in FY 11? The agency does not have any vacant unfunded positions in FY 2011.

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13.

Does your agency lease space? If so, please provide the location and lease rate. DOES and the Department of Real Estate Services (DRES) worked closely in FY11 to support the overall effort to reduce lease costs by utilizing existing government buildings. To that end, DOES relocated its headquarters from two leased private buildings to the one new government building on Minnesota Avenue, NE. DOES also opened three new Career Centers in government buildings to ensure service across the city while saving costs.
Property
609/625HStreet,NE

Previously reported
$39.13

2012 Per square foot

$

Comments
DOESvacatedandmovedtonewMinnesota buildinginDecember2010.NocosttoDOESin 2012 LeaseexpiresNovember2011.DOESgoestoNew MinnesotaBuildingonlypaysfortwomonthsof rentin2012 ClosedSeptember2010.Nocostin2012 Representsa3%increaseduetoCommonArea Maintenance.LeaseexpiresApril30.MovingtoS. DakotaAvenue. NewsiteutilizinggovernmentspaceatUDC/CCDC

64NewYorkAvenue,NE

$41.58

$41.58

2626NaylorRoad,SE 1500FranklinStreet,NE $33.74

5171S.DakotaAve.NE 4049SouthCapitolSt,NE

$ $38.86 $18.00

LeaseexpiresAugust2010.Theagencyentersinto anewLeasewith3%annualsteps.

14.

Please list all contract employees, within your agency. Please provide the Committee with a description of the work being performed by that individual; the term of the contract; compensation; and rationale for contracting out (detailed costbenefit analysis). In addition, please note whether or not the individuals identified were previous employees of the District of Columbia government (Please provide date of separation, and office employed by). DOES does not have any contract employees.

15.

Please list any pending lawsuits involving your agency? Please explain the nature of those lawsuits. Appeal of Friends of the Carter Barron Foundation of the Performing Arts, Contract Appeals Board, CAB N: D-1421. The complaint filed at D.C. Contract Appeals Board alleging non-payment of its invoices on work performed under DOES Contract No. DCCF-2008-D-0001. The complaint is also alleging fraud and award of work to another contractor. The complaint is seeking $5.5 million in damages. The case is presently in the preliminary stage. The District filed a motion to dismiss on February 4, 2011. Appeal of Center for Therapeutic Concepts, Inc., Contract Appeals Board, CAB N: D-1305. The complaint filed an appeal before the Board asking it to reverse the decision by DOES that it is obligated to pay unemployment insurance taxes to the District. The complaint is not requesting the payment of any money from the District in its appeal. The District has challenged the jurisdiction of the Board to hear this matter, and it has not taken any additional or recent action concerning this appeal after we challenged its jurisdiction over the matter.
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Hunt Reporting Company v. DC, DC Superior Court, Civil Division, C.A. No. 2010 CA 006406 B. This is breach of contract action in Superior Court for $17,590 for court reporting services alleged to have been provided to DOES. The parties are still in discovery for this matter. Anthony Sullivan v. District of Columbia, DC Superior Court, Civil Division, C.A. No. 2010 CA 005386 B. The Plaintiff contends that he was unlawfully terminated from a job at DOES. He contends a claim of slander regarding an accusation of workplace stealing. He is seeking relief of $5,000. The Plaintiff was not an employee of the District of Columbia, but a participant in the Project Empowerment Program. The District filed a motion to dismiss or in the alternative for summary judgment on the basis of statute of limitations, 12-309, lack of employment status or in the alternative at-will status, and failure to exhaust administrative remedies. David Hoffman v. DC, DC Superior Court, Civil Division, C.A. No. 2011 CA 000431 B. The Plaintiff is alleging refusal of the District to pay for services rendered and seeking relief in the amount of $4,800. The next hearing date is May 12, 2011.

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Workforce Investment Act 16. Please provide the FY 2012 budget request level (actual dollars) for job training and workforce development by source and activity/program.
FEDERAL GRANT FUND PRIVATE DONATIO NS

Program Title WORKFORCE DEVELOPMENT

Activi ty

Activity Title

INTRADISTRICT FUNDS

LOCAL FUND

Grand Total

4100

4200

SENIOR SERVICES PROGRAM PERFORMANCE MONITORING OFFICE OF APPRENTICESHIP INFO & TRAINING TRANSITIONAL EMPLOYMENT EMPLOYER SERVICES ONE-STOP OPERATIONS LABOR MARKET INFORMATION YEAR ROUND YOUTH PROGRAM SUMMER YOUTH EMPLOYMENT PROGRAM MAYORS YOUTH LEADERSHIP PROGRAM STATE-WIDE ACTIVITIES

$567,875

$80,532

648,407

$ 3,350,699

$1,100,000

$7,612,772

12,063,472

4300 4400 4500 4600 4700 4810

$ 2,329,747 $ 6,371,369 $1,150,149 $ 2,613,128

$693,067 $11,301,222 $534,768 $4,232,831

693,067 11,301,222 2,864,515 6,371,369 1,150,149 6,845,959

4820

$64,123

$11,975,161

80,000

12,119,284

4830 4900 Grand Total

$76,070 $293,390 $16,816,550

$1,100,000

$674,920 $37,105,274

$80,000

750,991 293,390 $55,101,825

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17.

Please provide the anticipated level of WIA funding for FY 2012. Please provide the actual dollar amount and percentage of WIA funding that will be utilized for Youth, Adult, and Dislocated Worker programs. Please delineate the actual dollars that will be appropriated for Youth Programs; Adult Programs; and Dislocated Worker programs. In addition, please list the various types of programs that will receive funding under the various categories.

Total anticipated Level of WIA Funds for FY 2012: $15,535,748 Amount Percentage WIA Adult $4,084,809.00 26.29% WIA Dislocated Worker $4,488,408.00 28.89% WIA Youth $2,303,708.00 14.83% Wagner/Peyser $4,289,565.00 27.61% Workforce Investment Grant $369,258.00 2.38% Total $15,535,748.00 100.00% Note: These are projected figures and will be adjusted based on the federal awards when received. WIA program Year for 2012 is July 1, 2011 to June 30, 2012 18. Please list each job training and workforce development program managed or funded by DOES. In addition, please provide the following: requested FTEs for 2012 for each program; the requested budget for FY 2012; and the actual dollars available from each of the following funding sources: District of Columbia Local Funds; Federal funds (please specify source); Other funds (please specify source); Private funds (please specify source); and Intra-District funds (please specify source).
Other Funds (O-Type)

Local Funds DOES Job Training & Workforce Development Programs Senior Service Employment Program Transitional Employment Program Apprenticeship Program Employment Services Program WIA Adult Program WIA Dislocated Worker Program In School/Out of School Summer Youth Program Mayor's Youth Leadership Program Total

Federal Funds

Private Donations

Total FTE'S 2 26 6 42 36 39 19 9 4 183

Total Budget $648,407.00 $11,301,222.00 $693,067.00 $3,098,395.00 $4,684,809.00 $4,738,408.00 $6,845,959.00 $12,119,284.00 $750,990.00 $44,880,541.00

FTE'S 0.25 26 6 7

Budget $80,532 $11,301,222 $693,067 $534,768

FTE'S 2

Budget $567,875

FTE'S

Budget

FTE'S

Budget

35 36 39

$2,563,627 $4,684,809 $4,738,408 $2,613,128 $64,123 $76,070 $15,308,040 $0 $80,000 0 $80,000

10 8 3 60.25

$4,232,831 $11,975,161 $674,920 $29,492,501

9 1 1 $123

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19.

Please provide the actual dollars that will be dedicated to Individual Training Accounts in FY 2012. If available, please provide performance/cost information for each of the Districts training providers. Individual Training Accounts (ITAs) are funded through the Workforce Investment Act (WIA) funds provided to DOES by the U.S. Department of Labor. Using ITA funds, WIA Title I-B adults and dislocated workers purchase training services from eligible training providers they select in consultation with a DOES employment counselor. As noted, WIA funds for the remaining program year are being reviewed due to reductions outlined in the Continuing Resolution to fund the remainder for this year. Due to the agencys recent policy decision to align funding for ITAs to a maximum of $4,000 per participant, DOES anticipates a significant increase the number of people that can be served, potentially up to 50%. Cost/Performance for Individual Training Providers for Program Year 2010 (July 2010 to June 2011)

Training Provider 3Soft USA Academy of Computer Education (ACE) Anchor Renaissance Institute Applied Career Training (ACT) College ASM Educational Center Inc. (ASM) AYT Institute Bennett Career Institute Business Interface Byte Back Inc. Career Technical Institute Catholic University of America George Mason University Georgetown University Global Resource Services Inc. Goodwill Of Greater Washington Howard University Center for Urban Progress ICI Systems Inc. Med-Code Data Institute (MCDI) Medicine Circle Inc. Montgomery College National Housing Corporation National Phlebotomy Association Nextec, Inc. Opportunities Industrialization OIC/DC

Served 8 9 1 2 18 27 8 8 14 36 10 19 50 1 9 4 16 10 3 1 27 4 2 28

Obligations $59,520.00 $32,938.00 $80,00.00 $12,554.92 $127,164.00 $216,000.00 $41,226.00 $33,800.00 $61,482.00 $25,9629.21 $59,660.00 $82,710.00 $352,900.00 $8,000.00 $40,500.00 $31,360.00 $69,930.00 $48,500.00 $7,500.00 $4,295.00 $20,0075.00 $22,800.00 $15,860.00 $131,904.00

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Training Provider Paralegal Institute of Washington Potomac College Prince Georges Community College Quality First Training Center RizeUp Technology Training Center Sanz College Sheppards Academy of Cosmetology Shipper's Choice of Virginia So Others Might Eat (SOME) Center for Employment T Spectrum Beauty Academy LLC StrategyUSA Inc. Strayer University Technical Learning Centers The French Institute Toni Thomas Associates University of Maryland University of the District of Columbia (UDC) Urban Solar Solutions VMT Education Center Inc. VW Associates Washington School of the Trades, LLC/HETA Westlink Career Institute

Served 15 2 1 3 9 12 1 4 8 5 6 3 12 3 39 2 45 1 22 3 65 35

Obligations $43,200.00 $7,525.00 $2,007.00 $6,237.25 $61,000.00 $8,0546.00 $4,000.00 $15,380.00 $48,943.00 $31,711.00 $4,7400.00 $16,000.00 $92,163.00 $24,000.00 $311,500.00 $10,364.00 $22,8075.18 $480.00 $12,6131.94 $22,900.00 $456,950.00 $264,000.00 $3,828,821.50

Total 612

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20.

Please provide the overall operating and proposed budget for each of the Districts One-Stop Centers. Please include the following: FTEs funded for each center and the percentage and actual dollar amounts allocated from each of the following funding sources: Local Funds, Federal Funds, Other Funds, Private Funds, IntraDistrict Funds.
The total proposed budget for the District's One-Stop Center is $6.4 million with 85 FTE's. The Agency does not budget by the individual centers. The budget is developed at the One-Stop Operations Activity (activity code 4600) level. FY 2012 Budget
Org Code 4600 Org Code Title One-Stop Operations Fund Detail Name Federal Funds Object class 0011 Regular Pay-Cont. Full Time 0012 Regular Pay-Other 0014 Fringe Benefits 0040 Other Services & Charges One-Stop Operations Sum of Total Budget Total $3,024,383.84 $2,072,622.33 $1,017,362.52 $257,000.00 $6,371,368.69 84.98 FTE's 47.99 36.99 Funding % 100% 100% 100% 100% 100%

21.

Please list the programs, managed by DOES that are tasked with assisting current recipients of Temporary Aid to Needy Families. Please provide the budgets for program operations; personal; and non-personal expenses. Please specify the number of FTEs assigned to each of these programs. How many TANF recipients were served, to date, in FY 2010? How many will potentially be served in FY 2012? DC Works! Career Center customers provide TANF information when applying to enroll in an Individual Training Account (ITA). Based on this information, 1,388 TANF customers have been served in FY10 and 952 TANF customers have been served so far in FY11. DOES is currently coordinating with the Department of Human Services (DHS), who administers the TANF program, to find ways that the two agencies can provide better workforce development services to TANF customers. Please note that the Transitional Employment Program (TEP) does not allow participants to receive subsidized wages and TANF.

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22.

How does the agency intend to use all anticipated stimulus funding? (please detail by program/activity). All funding will be expended in the course of normal program operations.
Award Amount FY 2009 Expenditures FY 2010 Expenditures FY 2011 Expenditures Purchase Orders Total Commitments Current Available Balance

Program Title

Requisitions

WIA Adult WIA Dislocated Worker WIA Youth Wagner Peyser Reemployment Total

$1,542,940

$979,347

$378,171

$2,829

$102,971

$35,524

$1,498,843

$44,097

$3,792,823 $3,969,821 $535,285 $892,142 $10,733,011

$98,980 $0 $0 $0 $1,078,327

$2,362,253 $3,360,848 $392,471 $44,818 $6,538,561

$747,420 $155,018 $12,070 $158,252 $975,468

$570,326 $214,150 $130,744 $348,235 $1,454,247

$0 $0 $0 $240,000 $275,524

$3,766,679 $3,730,016 $535,285 $791,305 $10,320,653

$26,144 $239,805 $0 $100,837 $410,883

All funds expire June 30, 2011 As of 4/5/2011 the unexpended balance is 687,882. The agency plans to exhaust all unexpended funds by 6/30/2011.

23.

Who is responsible for managing the eligible WIA provider standards? Please attach the Districts eligibility standards for its providers. DOES through the Workforce Investment Council maintains a list of eligible providers. To be eligible to receive funds, the provider shall be: A postsecondary educational institution that is eligible to receive Federal funds under Title IV of the Higher Education Act of 1965 that provides a program that leads to an associate degree, baccalaureate degree or certification; An entity that carries out programs under the National Apprenticeship Act through registered apprenticeship sponsored programs; or Another public or private provider of a program of training services such as public or private not-for-profit or for-profit proprietary institutions and/or non-profit faith- or community-based organizations.

24.

What is the budget for the Workforce Investment Council? a. The Department has indicated in years past that unspent funding associated with the Workforce Investment Council was repurposed, do you anticipate this happening in FY 2012? Due to recent WIA expected budget cut projections, the budget for the Workforce Investment Council is not available. The budget for adult training is fully funded and DOES is committed to ensuring that every dollar for workforce is maximally spent.

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Returning Residents/Traditional Employment Program 25. Please list the programs, managed by DOES that are tasked with assisting current ex-offenders. Please provide the budgets for program operations; personal; and nonpersonal expenses. Please specify the number of FTEs assigned to each of these programs. All DOES programs are available to all eligible District of Columbia residents, including returning residents. Generally, DOES does not ask returning resident status when inquiring about or applying for DOES programs. Some locally funded DOES programs, like TEP, ask offender status questions on its application on a volunteer basis. During FY11, the DOESs Employment Readiness Center, a partnership with the Department of Corrections (DOC), served 181 participants at the DOC. The budget for this program supported the salary of one employee at $70,000. This program is currently under evaluation. Additionally, DOES has an agreement with the MOU D.C. Superior Court. This program provides information relating to the DOES programs and services to defendants/offenders involved in the D.C. criminal justice system and other customers who are interested in services and who are District residents. The budget for this program supports the salary of one employee at $30,000. DOES also has a host agency agreement with Court Service Offender Supervision Agency. This effort does not require a budget since DOES only pays for participant stipends and support. The program services 39 returning residents, 18 of which are in subsidized placements, 5 are in unsubsidized placements, and 6 are in occupational skills training. 26. How many ex-offenders were served, to date, in FY 2010? How many will potentially be served in FY 2012? Transitional Employment Program (TEP) participants self-disclose offender status. TEP currently serves 562 ex-offenders to date in FY 2011. New enrollments in FY 11 are 253. The TEP program will be fully funded in FY12 and DOES expects to serve a much higher number as the program will no longer allow subsidized participation beyond 6-month period. This change maximizes the number of participants without an impact to the budget.

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Apprenticeship 27. What is the Apprenticeship Councils proposed budget and sources of funds for FY2012? The Apprenticeship Council's proposed budget for FY 2012 is $693,067. All funding for the program operations are locally funded. 28. How many FTEs will be assigned to the Apprenticeship Council in FY2012? The proposed level of FTEs for the Apprenticeship Council is 6 in FY 2012. 29. Please state all programs and opportunities offered by the Apprenticeship Council. How many Apprenticeship sponsors are currently registered with DOES? How many apprenticeships have been granted in FY2010? How many of the granted apprenticeships were awarded to DC residents? In addition to existing registered apprenticeship programs, the Office of Apprenticeship was successful in reaching agreements with five (5) apprenticeship sponsors to provide preapprenticeship training to disadvantaged DC residents that will assist them in meeting apprenticeship eligibility. The participating apprenticeship sponsors also agreed to accept all completers of pre-apprenticeship as registered apprentices. The five (5) pre-apprenticeship training initiatives will enrolled eighty (80) DC residents. The current number of apprenticeship sponsors registered with DOES is 253. So far during FY-2011, 353 new apprentices have been accepted, of which 140 or 40% are DC residents.

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Labor Standards 30. Please provide a breakdown of the dollars to be expended on the Workers Compensation program.
The FY 2012 proposed budget for the Workers' Compensation Program is $23,384,004 including $4,500,000 for Workers' Compensation Special Fund and $18,884,004 for Workers' Compensation Administration Fund. Budget Detail Personnel Services Supplies Fixed Costs (Rent, Telephone, & Utilities) IT & Other Services Subsidies Equipment Total Administration Fund 12,870,333 241,760 1,341,524 2,561,492 166,556 1,702,339 18,884,004 4,500,000 4,500,000 Special Fund

31.

Please provide an updated assessment of the automated Workers Compensation tracking system. DOESs OWC and IT have developed the requirements needed for a fully automated electronic case management and information system, including creating the workflow process and outlining the document imaging needs. During FY11, DOES will expand the capabilities of the current ICIS (workflow process) system and merge it with FileNet, a highly regarded content, security, and storage management engine, as the core for document imaging. These two systems work together to ensure electronic workflow process and document imaging are seamless. This modernization will yield improved operations for customers and staff alike. OWC has begun to ensure full deployment, including hiring a Program Manager to lead this project in the short term. DOES intends to implement this fully automated system by or before the end of this calendar year.

32.

Has there been an audit of Workers Compensation Special and Administration fund? If so, please submit the audit report. Audits have been conducted. SEE ATTACHMENT 2 in this section for a copy.

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33.

Has the agency conducted its annual Anti-Fraud activities audit? If so, please submit the audit report. In compliance with D.C. Official Code 32-1542.03, the agency completed and submitted its annual anti-fraud report to the Council prior to March 1, 2011. SEE ATTACHMENT 3 in this section for a copy of the report.

34.

How many FTEs are assigned to the Workers Compensation Employer Compliance Enforcement Division? Has DOES referred any cases to the Office of the Attorney General for prosecution? If so, how many? As stipulated in part in D.C. Official Code, 32-1542.04(a): The Director of Employment Services (Director) shall assign from the workforce in the Workers Compensation office a staff equal to 5 full time equivalents to the enforcement of employer compliance In accordance with the Act: o Three (3) full time Investigators are assigned within the Special Fund/Compliance Monitoring Unit; o Along with insurance responsibilities, four (4) Insurance Examiners perform compliance and enforcement duties. As such their time is charged to compliance. Overall, a total of five (5) equivalent FTEs perform duties, along with one clerical assistant. No cases have been referred to the Office of the Attorney General (OAG). Experience shows that at the time an employer recognizes that the case is being prepared for referral, violators agreed to comply.

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Employer Services 35. How many dollars were allocated last year for continued operation and development of the Virtual One-Stop system? What improvements/enhancements were made ensure the systems is current? Requested funding for FY 2012. The Virtual One-Stop (VOS) system is an advanced comprehensive workforce development software system. It provides integrated services via the internet for individuals, employers, training providers, workforce development staff, and Career Center partners. Offering a full range of services, this system also serves as the agencys case management and reporting system for individuals who visit the Career Centers or seek on-line services. In FY2011, DOES allocated $775,196 for VOS (Geographic Solutions, contractor). Services include job spidering, maintenance, and support services. For FY2012, projected VOS expenditures for these same services is $780,000.

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Unemployment Insurance 36. How many dollars were allocated to your Unemployment Insurance program? (to tax collection, unemployment insurance benefits, and unemployment insurance appeals).

Unemployment Insurance Activity Tax Collections Benefits Appeals Total 37.

Total $6,439,159.00 $22,197,562.00 $500,000.00 $29,136,721.00

How many dollars are projected to be expended to provide Unemployment Insurance benefits to enrollees? Based on the FY 2010 expenditures of $480 million (included extended benefits) the agency is requesting $400 million for the FY 2012 to provide benefits to eligible claimants.

38.

Please provide a summary on the solvency of the Districts Unemployment Insurance Trust Fund. It is projected that under the most conservative assumptions, the Fund will remain solvent until fiscal year 2014. As of March 25, 2011, the balance in the Trust Fund was $275,655,371.43.

39.

Has the agency conducted its annual Anti-Fraud activities audit? If so, please submit the audit report. DOES will forward the most recent Anti-Fraud report to the Committee shortly. This report is conducted by BDO Seidman, LLP (BDO).

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Youth Employment 40. The budget cuts SYEP for FY12, what are the agencys long term plans for the size and focus of the program? The budget for SYEP in FY12 allots for $10 million to spend on subsidies and wages. Based on our projections, this will allow us to serve roughly 9,000 youth for a period of 6 weeks (3,000 youth ages 14-15 and 6,000 youth ages 16-21). We are currently exploring ways to maintain services with limited resources. We will be working to solicit more unsubsidized opportunities for SYEP and also explore shortening the length of program, placing additional restrictions on the total number of hours worked, and offering a stipend payment to younger youth in lieu of a wage. 41. How many youth participated in the 2010 summer jobs program? At what cost? How many youth are planned for 2012 participation? Please provide a detailed budget outlining the following:
a. b. c. d. e. f. g. h. i. j. k. l. Local Program Participant Wages and Benefits WIA/ARRA Program Participant Wages and Benefits New Contracts and Memorandum of Agreement Costs (Local and Federal) Existing Contracts and Memorandum of Agreement Costs (Local and Federal) Debit or EBT bank costs Payroll Processing costs Registration costs Staff salaries Projected overtime/compensatory time charges Non personal services costs Youth Leadership Program costs Any projected incoming non-WIA resources

In 2010, there were 21,516 youth who participated in the program. The total cost of the program was $28,079,412 ($22,697,705 from Local Funds, $1,106,243 from Stimulus Youth, and $4,275,464 from Intra-Dist Funds). Expenditures Subtotal Wages Admin/Contracts TOTAL SYEP 2011 42. Amount $12,068,974.00 $1,500,000.00 $13,578,974.00

Please provide the Committee with a spreadsheet that shows the agencys anticipated plan for each age group: a. Age groups (14-15; 16-18, 19-21; 22-24) This summer, we plan to provide jobs for 3,600 youth ages 14-15 and for 8,400 youth ages 16-21. b. Number of referrals for each Participants in the 2011 SYEP are not scheduled to receive their final job placements until the end of May 2011. Youth and employers are currently engaging in activities to learn more about each other. Employers will be able to access a youth database where
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they will be able to review resumes and profile information for youth participants and youth will be able to view and apply for jobs posted within our system. This week, we are hosting our SYEP 2011 Career Exploration Fair where hundreds of employers are sharing information about their offerings to our youth participants. c. Anticipated no show (percentage) and raw numbers/Any estimated attrition calculations The total budget for salaries and wages were calculated based upon attrition rates from last year and a lower estimated attrition rate due to increased efforts to communicate key deadlines and to screen youth for eligibility prior to the start of the program. Based on the attrition rates from SYEP 2010, there was roughly a 10% initial attrition rate from the start of the program to the first pay period, 7.5% from the first pay period to the second pay period, and 5% from the second pay period to the third pay period. d. Hours per week for each Historically, youth ages 14-15 have been permitted to work for up to 20 hours per week and youth ages 16-21 are permitted to work up to 30 hours per week. Due to the reductions implemented in the FY 2011 Gap Closing Measure and to comply with Subtitle T of the FY 2011 Budget Support Act of 2010, maximum total hours per week for youth ages 16-21 will reduce from 30 hours to 25 hours. This ultimately means youth ages 16-21 are permitted to work up to 5 hours per day instead of 6 hours per day. e. Total number of weeks to be worked (if plan includes staggered starts, include plan) The SYEP 2011 will begin on Monday, June 27, 2011. The program will conclude by Friday, August 5, 2011. Participating youth will not be compensated for any hours worked prior to June 27, 2011 or after August 5, 2011. f. Hourly rate and FICA for each All youth participants will be paid for up to $7.25 per hour (the federal minimum wage). With FICA, the total cost is roughly $7.80 per hour. g. Estimated cost including FICA for each The total cost with FICA for a 14-15 year old participant for the entire summer is $905.34. The total cost with FICA for a 16-21 year old participant for the entire summer is $1,358.00. h. Final estimated unit cost for each/unit cost for each (cost per individual) The estimated total cost with FICA after attrition for a 14-15 year old participant for the entire summer is $776.33. The estimated total cost with FICA after attrition for a 16-21 year old participant for the entire summer is $1139.49. 43. How does the agency plan to implement the Youth Leadership Institute in 2012 in light of the proposed budget cuts to the activity? Please discuss plans. DOES plans to run the FY11 Mayors Youth Leadership Institute at the same service levels as FY10.
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