1). Most States Reported Expanding Their Transition Services to Students and Developing Their Administrative Capacity to Provide These Services

		Most State Vocational Rehabilitation Agencies Reported Expanding Their Services for Students with Disabilities

Most state VR agencies that responded to our survey reported expanding  services for students with disabilities since WIOA’s enactment in July  2014 by either serving more students through pre-employment transition  services or by initiating new or additional services. Another agency  responding to our survey reported dedicating a supervisor and 15  percent of their counselors exclusively to this purpose. States Reported Challenges Using Reserved Funds, Updating Interagency Agreements, Among Others, and Reported Needing More Assistance from Education

		Fewer Than Half of States Reported Using All Reserved Funds, and Some Reported a Need for More Information on Allowable Costs

Twenty-one of 56 states (50 states, 5 territories, and the District of  Columbia) reported using the full amount of grant funds they reserved for  pre-employment transition services for students with disabilities for fiscal  year 2016, according to the most recent full year of data available from  Education (see fig. However, Education did not provide additional information  on what specific types of expenditures states were permitted to spend  funds on in providing pre-employment transition services as required  by WIOA. Some state VR agencies we surveyed and those that participated in one  of our three discussion groups said they would like more detailed  information directly from Education. However, an  Education official said they have no timeframe for providing further  information on allowable costs to states. Less than half the state VR agencies that responded to our survey (34 of  74) reported updating their interagency agreement with their state’s  educational agency, which is intended to facilitate collaboration and  coordination on delivery of pre-employment transition services. According to Education’s guidance, a student’s transition from  school to post-school activities is a shared responsibility and  coordination and collaboration between the state VR and educational  agencies is essential. Education officials said that they plan to document and share best  practices with states; however, they said the agency does not have a final  written plan for managing these efforts because plans are still under  discussion in light of inquiries received. Finally, WIOA requires Education to  highlight best state practices for implementing pre-employment transition  services. (Recommendation 2)
The Secretary of Education should develop a written plan with specific  timeframes and activities for identifying and disseminating best practices  that address, as appropriate, implementation challenges for pre- employment transition services, such as those identified in this report. Education concurred with recommendation 1 and disagreed with  recommendations 2 and 3 in the draft report. While these steps may be helpful, given the  number of states that have not updated and finalized their agreements  and the length of time Education officials say they will take to complete  this round of monitoring where Education asks state VR agencies about  these agreements, additional action by Education may be needed to help  states more efficiently and effectively coordinate services to students with  disabilities. By taking  additional steps, such as discussing the benefits of finalizing interagency  agreements, and reminding states of existing technical assistance  resources pertaining to updating and finalizing interagency agreements,  Education would help raise awareness about the importance of the  interagency agreements and be better positioned to help states efficiently  and effectively coordinate services to students with disabilities. Survey of State Vocational Rehabilitation (VR) Agencies

To address both of the objectives, we conducted a survey of all 79 state  VR agencies from October through December 2017. We conducted interviews with  officials in Idaho, Illinois, and Maryland. Related GAO Products

Workforce Innovation and Opportunity Act: States and Local Areas  Report Progress in Meeting Youth Program Requirements.
Why GAO Did This Study

WIOA requires states to reserve at least 15 percent of their total State Vocational Rehabilitation Services program funds to provide pre-employment transition services to help students with disabilities transition from school to work. GAO was asked to review how states were implementing these services.
This report examines (1) steps states reported taking to implement pre-employment transition services, and (2) implementation challenges states reported and how Education has addressed them. GAO reviewed documents and funding data from Education, and federal laws and regulations; surveyed all 79 state VR agencies (74 responded); held discussion groups with representatives of 29 state VR agencies; and interviewed officials from Education and three states (Idaho, Illinois, and Maryland) GAO selected for variety in size and type of agencies, among other factors.

What GAO Found

Of the 74 state vocational rehabilitation (VR) agencies that responded to GAO's survey, most reported expanding services to help students with disabilities transition from school to work as required under the Workforce Innovation and Opportunity Act (WIOA), enacted in July 2014. Most state agencies reported serving more students and providing work-based learning experiences and other activities, referred to as pre-employment transition services (see figure).
State VR agencies reported two key challenges with implementing pre-employment transition services for students as required by WIOA.
Spending reserved funds : States reported spending about $357 million out of the $465 million reserved for these services in fiscal year 2016. Education officials said that states had difficulty determining what expenditures were allowable, and some state officials said they would like more detailed information from Education. Education officials said they plan to clarify guidance but have no timeframe for providing further information, which would help states to better plan their use of reserved funds.
Finalizing interagency agreements : Fewer than half the state VR agencies that responded to GAO's survey (34 of 74) reported updating their interagency agreement with their state's educational agency. Interagency agreements can help promote collaboration by, for example, establishing roles and responsibilities of each agency. Although Education offers technical assistance on interagency agreements, without increased efforts to raise awareness about the importance of these agreements and provide assistance to states where needed, Education may miss opportunities to help state VR and educational agencies efficiently and effectively coordinate services.
In addition, WIOA requires Education to highlight best state practices, and most VR agencies responding to GAO's survey (63 of 74) reported this would be useful. Education does not have a written plan or timeframe for identifying and disseminating best practices. As a result, Education may miss opportunities to help more students with disabilities successfully transition from school to work.

What GAO Recommends

GAO is recommending that Education (1) establish timeframes for providing additional information on allowable expenditures, (2) take additional steps to assist states that have not updated and finalized their interagency agreements, and (3) develop a written plan with specific timeframes and activities for identifying and disseminating best practices. Education agreed with the first recommendation and disagreed with the other two. GAO revised the second recommendation and maintains that specific information is needed for the third, as discussed in the report.