Examples of Funding Sources Used to Support Sector Initiatives

Federal Sources

WIA Discretionary Funding

WIA can be used for a variety of activities. Governor's WIA discretionary funding often is used as seed funding for sector initiatives, research, partnership development and coordination, project management and administration and can support a variety of operational activities such as training and supportive services.

WIA Title I

Core and Intensive Services: These funds are distributed by local workforce boards and can be used to serve WIA eligible populations. They support a variety of activities, including orientation, skills/interest assessments, supportive service needs, career counseling, job readiness classes, and case managements.

On-the-Job Training: These funds are distributed and governed by local workforce investment boards. They support employer or training provider designed programs and can be used for wage subsidies. These funds may be used to support employers or groups of employers, who must provide a 50 percent match. Local workforce investment boards must approve the training programs.

Training Funds: These funds are available for WIA eligible and registered participants. They can be used for training up to a limit set by the local workforce investment board. They support job training, tuition and other training programs approved by the local workforce investment boards.

WIA Title II

Adult Education: These funds can be utilized to provide skills training to low skilled adults that lack a high school diploma or GED. These are granted as contracts to education institutions and community based organizations.

Food Stamp Employment & Training Job Placement with Retention

These funds can be utilized to serve Food Stamp eligible populations. They can be used to support skill development and create career paths among other activities. These funds are usually administered by the State Departments of Human/Social Services.

Pell Grants

These grants may be used to provide for tuition, living expenses, materials, and other expenses for eligible low-income students.

Federal Work Study

These funds, administered by the U.S. Department of Education directly to accredited educational institutions, can be used to subsidize a student's wages. Campuses may target these resources to provide work subsidies for students in sector based training programs.

State Sources

State Discretionary Education Funds: Many states have utilized education funds to support sector strategies. In post secondary institutions, many states have utilized education funding to create new industry-aligned curricula, create short-term program models, and create customized training and other activities that reshape educational institutions to be more industry responsive.

State Economic Development Resources: Some states have developed training tax credits for groups of employers to train new entrant or incumbent workers that allow workers to enter or advance within an industry. Some states also have utilized state economic development resources to train workers for firms that relocate or expand in the state.

State General Revenue: General revenue can be used to support a wide range of activities. Many states have developed grant funds to provide start-up capital for sector initiatives, pay for training for new entry workers and incumbents, provide scholarships to participants, and conduct a number of research, analysis and evaluation activities.

Unemployment Insurance Surplus: Some states have utilized surpluses in unemployment insurance revenue to incumbent worker grant funds to provide skills training to allow workers to advance in the workplace.

Private Sources

Foundation: Foundation resources support a range of activities at various stages of a sector initiative. Usually foundation resources have been used as start-up capital to convene a sector initiative and develop partnerships. However, foundation resources also have been used to provide training, supportive services, and project management.

Industry Contribution: Employer partners provide financial and in-kind contributions to sector initiatives that support various aspects of sector initiatives, including paid release time, tuition reimbursement, materials, instructors, facilities, skills testing, and marketing/recruitment among others.


Source: State Sector Strategies: Regional Solutions to Worker and Employer Needs, NGA Center for Best Practices, National Network of Sector Partners, Corporation for a Skilled Workforce, November 2006

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