The Workforce Investment Act (WIA)  was passed in 1998 to consolidate services for many employment and  training programs, requiring states and localities to use a centralized  service delivery structure—the one-stop center system—to provide most  federally funded employment and training assistance. Nearly all states reported some coordination at the state or local level,  achieved with methods ranging from informal linkages (such as  information sharing or periodic program referrals) to formal linkages  (such as memoranda of understanding), shared intake, or integrated case  management. Coordinating TANF Services with One- Stop Centers Has Continued to Present Challenges to States and Localities

Despite increases in coordination between the TANF program and one- stops from 2000 to 2001, states and localities have continued to face  challenges in coordinating their TANF work programs with one-stop  centers. However, other  challenges cannot be easily resolved at the local level. States developed ways to overcome these challenges to  colocation in order to meet the needs of TANF clients. Developing More Compatible Program Definitions and Requirements

As states and localities attempted to coordinate services for TANF clients  through the one-stop, they encountered challenges to harmonizing  program definitions and meeting reporting requirements.
What GAO Found

The Workforce Investment Act (WIA) brought most federally funded employment and training services into a single, one-stop center system. Coordination between Temporary Assistance for Needy Families (TANF) programs and one-stop centers has increased since the act was implemented in 2000. Nearly all states reported some coordination at either the state or the local level. Most often, coordination took one of two forms: colocation, in which a client accesses TANF programs at the local one-stop, or referrals and electronic links to off-site programs. Despite progress, states and localities continue to report problems because of infrastructure limitations and varying program definitions and reporting requirements. Some of these challenges could be overcome through state and local innovation, but others will be resolved only through federal intervention. Early evidence suggests that states and localities are increasing their efforts to bring services together to fit local needs. As states and localities have begun to recognize the shared goals of the workforce and welfare systems, they have developed ways to coordinate services.