December 18, 2003
SUBJECT: Authorization for NOVA to Apply for Additional Funding no to Exceed $10 Million to Serve Dislocated Workers
REPORT IN BRIEF
NOVA’s current STAR grant (STAR XII) is projected to be fully spent in early 2004. Existing dislocated worker allocated funds are not sufficient to meet the demand for services. It is recommended that the Sunnyvale City Council, on behalf of the seven NOVA Consortium cities, concur with the decision of the NOVA Workforce Board and authorize staff to submit grant proposals totaling up to $10,000,000 to the State of California and/or the U.S. Department of Labor to provide for the continuation of dislocated worker services for the remainder of FY 2003-04 and through FY 2004-05.
BACKGROUND
The State of California initially funded NOVA’s Skills Testing Assessment and Reemployment (STAR) services in the fall of 1989. NOVA has since received continuous funding through 12 major grants over a 14-year period. EDD has invested over $58,000,000 in STAR to serve over 16,000 dislocated workers. Over its history, 71 percent of all STAR participants have found work, with an average wage at placement of $20.11. The average amount of NOVA’s STAR grants, which has steadily increased over the years, is almost $6 million.
NOVA’s current STAR XII grant is for $8,000,000 and has enrolled a total of 1950 clients in a myriad of services including extensive testing and assessment, occupational classroom training, on-the-job training, re-employment workshops, ProMatch services, a computerized learning lab, and funding for appropriate one-stop services. STAR’s program model provides the basis for NOVA's service delivery system for dislocated workers. This model provides for a comprehensive assessment of the individual participant's work experience, aptitudes, interests and career goals.
Several months ago, realizing the state of urgency that exists in the region relative to the re-employment efforts of dislocated workers, NOVA partnered with the workforce boards of San Mateo, San Jose, and Santa Cruz to submit a proposal for National Emergency Grant (NEG) funding in the amount of $14.4 million to serve dislocated high-tech workers using our STAR model. NOVA’s proposal became part of a statewide proposal submitted to the Department of Labor, which was recently funded for $10 million. The State is currently in the process of determining an allocation methodology for distributing these funds to Local Workforce Investment Areas. It is anticipated that NOVA would receive no more than $2.5 million.
EXISTING POLICY
The proposed activities are consistent with the City of Sunnyvale's Socio-Economic Goal 5.1F: Provide job training and employment services within constraints of operative, federal regulations and available federal funding, to address the locally-determined employment and training needs of economically disadvantaged residents and others with special needs.
DISCUSSION
The demand for dislocated worker services in the NOVA area has never been higher. For calendar year to date, 100 WARN (Workers’ Adjustment and Retraining Notification Act) notices affecting 9,714 employees have been issued solely in the NOVA area, compared to 53 notices for all of 2002. NOVA represents 14% of all WARN notices issued statewide, yet received only 1.7% of state Workforce Investment Act (WIA) allocated funds. Allocated funds alone cannot meet the huge demand for services, and neither can our anticipated NEG funding.
NOVA’s STAR grant has performed positively over the years and has proven its benefit to the community. The State of California recognizes that NOVA’s STAR program is a model of how a workforce development system should work and has continued its investment in NOVA through the renewal of STAR funding over the past 14 years. NOVA now seeks to request funding from the State for what would be STAR XIII, in order to meet community needs based on the current economy. NOVA recognizes that the State may not have discretionary funds available in FY 2003-04 to continue its investment in STAR to the extent it has in recent years. Therefore, NOVA is prepared to develop another proposal for National Emergency Grant funding. The combined funding requested through both proposals will not exceed $10 million.
At its meeting of October 22, 2003, the NOVA Workforce Board approved the submission of grant proposals for dislocated workers funding.
Fiscal Impact
There will be no fiscal impact to the City because funds received will offset program expenditures.
PUBLIC CONTACT
1. Public contact was made through posting of the Council agenda on the City's official notice bulletin board, posting of the agenda and report on the City's web page and the availability of the report in the Library and City Clerk's Office.
2. Public meeting of the NOVA Workforce Board on October 22, 2003.
ALTERNATIVES
1. Council approves submission of proposals not to exceed $10,000,000 to the State of California and/or the U. S. Department of Labor for dislocated workers funding for the remainder of FY 2002-03 and through FY 2004-05.
2. Council rejects submission of the proposals.
3. Other action as determined by Council.
RECOMMENDATION
It is recommended by staff that the Sunnyvale City Council, on behalf of the NOVA seven-city consortium, and in concurrence with the NOVA Workforce Board, adopt Alternative 1: Council approves submission of proposals not to exceed $10,000,000 to the State of California and/or the U. S. Department of Labor for dislocated workers funding for the remainder of FY 2002-03 and through FY 2004-05. It is further recommended that the City Manager or his designee be authorized to execute the necessary grant agreement(s).
Prepared By:
Jeanette Langdell
Employment Training Manager Department of Employment Development
Reviewed by:
Michael J. Curran
Director Department of Employment Development
Approved by:
Robert S. LaSala
City Manager