States and Local Workforce Areas Report Progress in Meeting Spending Requirements

		Most States Appear on Track to Meet Targets for Spending on Out-of- School Youth

Complete data on the spending of youth grants allocated to states for the  first 2 program years of WIOA (PY2015 and PY2016) were unavailable  during our review, but available data states reported to DOL showed a  growing number of states were on target to expend at least 75 percent of  their youth formula grant on out-of-school youth (see fig. 4). In general, many local workforce areas reported that it was not  challenging or only slightly challenging to meet WIOA’s spending  requirements for serving out-of-school youth and the provision of work  experiences. 6). DOL takes steps to determine whether states are carrying out their  monitoring responsibilities, including conducting on-site visits to state  offices. As of February 2018, DOL’s monitoring had thus far focused on assisting  states in overcoming challenges with WIOA requirements through  technical assistance and guidance, according to DOL officials. Local Areas Reported Using a Combination of Strategies to Address the Out-of- School Youth Spending Requirement and Related Challenges

		Local Workforce Areas Restricted Enrollment of In-School Youth to Help Meet the Spending Requirement for Out-of- School Youth

While most local areas reported that their efforts to meet the out-of-school  youth spending requirement involved serving greater numbers of that  population, they also reported the need to accommodate that increase by  significantly reducing or eliminating services provided to in-school- youth. Notably, an estimated 35 percent of local areas reported that they had  stopped enrolling in-school youth in their WIOA youth program entirely. For example, one local workforce development  board used its funds to hire an additional staff person to assist a service  provider with its recruitment efforts. Strengthened Partnerships: Local workforce areas report strengthening  partnerships with other WIOA programs and organizations to enroll and  serve out-of-school youth. Similarly, local workforce areas reported  developing new partnerships or strengthening relationships with state and  local government agencies, as well as community-based organizations. Local Areas Used Various Strategies to Meet the New WIOA Work Experience Requirement, Yet Many Reported Challenges

		Local Areas Expanded Work Experience Opportunities for Youth and Frequently Paid for Youth Salaries in Order to Meet the New Work Experience Requirement

Many local workforce areas we surveyed have increased their emphasis  on work experiences for youth under WIOA, with paid employment being  the most common type of opportunity provided to participants. Local Areas Have Taken Steps to Address a Variety of Challenges That Inhibit Their Ability to Provide Work Experiences to Youth

WIOA requires local areas spend at least 20 percent of local youth funds  on work experience for in-school and out-of-school youth. Agency Comments

This report does not include any recommendations. Both agencies provided technical comments which we  incorporated as appropriate. Appendix I: Objectives, Scope, and Methodology

This report examines the implementation of the Workforce Innovation and  Opportunity Act (WIOA) youth program in states and local workforce  areas with respect to the new requirements that 75 percent of youth funds  be expended on out-of-school youth and 20 percent of youth funds be  expended on work experiences. In particular, this report examines: (1)  what is known about states’ and local areas’ progress in meeting the  WIOA spending requirements for serving out-of-school youth and  providing youth with work experiences; (2) how local areas are  addressing WIOA’s emphasis on serving out-of-school youth, and any  challenges they have encountered; and (3) how local areas are  addressing WIOA’s emphasis on youth work experiences and any  challenges they have encountered. To answer all of our research objectives we reviewed relevant federal  laws, regulations, and guidance. Analysis of DOL Data and Documents

To address our first objective, we analyzed Department of Labor (DOL)  state-level WIOA youth program expenditure data from program year  (PY) 2015 and PY2016, the most recent data available, for the 50 states  and the District of Columbia. There were 33 total workforce development areas in this strata. All  percentage estimates in this report have a margin of error of plus or  minus 10 percentage points or fewer, unless otherwise noted.
Why GAO Did This Study

Approximately 4.6 million youth ages 16 to 24 were neither in school nor employed in 2016. WIOA, enacted in July 2014, provides, in part, grants to states and local areas to assist youth—particularly out-of-school youth—in accessing employment, education, and training services. It also emphasizes the provision of work experiences to in- and out-of-school youth.
GAO was asked to review how states and local areas are using WIOA grants to serve youth. This report examines (1) what is known about states' and local areas' progress in meeting WIOA spending requirements for serving out-of-school youth and for providing youth with work experiences; (2) how local areas are addressing WIOA's emphasis on serving out-of-school youth and any challenges, and (3) how local areas are addressing WIOA's emphasis on youth work experiences and any challenges. GAO reviewed relevant federal laws, regulations, and guidance; interviewed DOL officials; analyzed DOL state level WIOA youth program expenditure data from program years 2015 and 2016, the most recent data available; surveyed a nationally representative sample of local workforce development areas; and visited nine local workforce development areas in three states selected for their relatively large WIOA Youth funding allotments and relatively high rates of out-of-school youth.
GAO is not making recommendations in this report. DOL and the Department of Education provided technical comments on a draft of this report, which were incorporated as appropriate.

What GAO Found

Most states reported they were on target to meet the Workforce Innovation and Opportunity Act's (WIOA) requirement to spend 75 percent of their Program Year 2015 and 2016 youth grant funding to serve out-of-school youth, according to Department of Labor (DOL) data. Because deadlines had not arrived for the spending of state youth grant allotments for these program years, compliance could not be determined. Similarly, most local areas reported they were on track to meet the out-of-school youth spending requirement, as well as the requirement that 20 percent of local youth grant funds be spent on providing work experiences to youth. Through GAO's survey, many local areas reported it was not challenging or only slightly challenging to meet the spending requirements, but some reported experiencing greater challenges (see figure). Under WIOA, DOL does not collect local expenditure information, but states must monitor local areas' compliance while DOL monitors state oversight. DOL has taken some steps to determine whether states are carrying out their monitoring responsibilities, including limited on-site monitoring and ongoing dialogue with states. According to DOL officials, the agency's monitoring of the new requirements has thus far focused on providing technical assistance and guidance, but they reported plans for more formal compliance monitoring.
Note: All percentage estimates in this figure have a margin of error of plus or minus 10 percentage points or fewer. Percentages do not add to 100 due to rounding and because a small number of survey respondents answered “don't know” or did not respond.
Local areas reported in GAO's survey that they used a combination of strategies to meet the WIOA spending requirement for serving out-of-school youth and to address other related challenges. For example, many local areas reported suspending enrollment of in-school-youth to help meet the requirement to spend 75 percent of youth grant funds on out-of-school youth. In addition, local areas reported having taken steps to address challenges locating, retaining, and serving out-of-school youth in their WIOA-funded programs, including increasing their recruiting efforts and strengthening partnerships with other WIOA programs, state and local government agencies, and community-based organizations.
To meet WIOA's 20 percent spending requirement for work experiences, local areas reported expanding work experience opportunities for youth, most commonly with temporary paid employment. An estimated 81 percent of local areas reported they paid youth participants' salaries, with most paying the entire salary. Many local areas also reported challenges, including youths' lack of job-readiness and employers' reluctance to hire WIOA participants. To address these challenges, local areas reported providing job-readiness training for youth and strengthening partnerships with employers.