WORKFORCE INNOVATION AND OPPORTUNITY ACT
ADDITIONAL ASSISTANCE FOR DISLOCATED WORKER FUNDING
DISCUSSION PAPER
Background
Permian Basin Workforce Development Board (Board) continues experiencing significant unemployment insurance (UI) claim volume due to layoffs in the oil and gas industry and related businesses. On April 4, 2016, the Texas Workforce Commission’s (TWC)approved Workforce Innovation and Opportunity Act (WIOA) Dislocated Worker (DW) Additional Assistance funds in the amount of $251,000 to assist with providing services to DW individuals impacted by layoffs in the oil and gas layoffs and related businesses through August 31, 2016. At the time of that request, Oil and Gas Claims Report highlighted a 47 percent increase in UI claims on total industry from the previous year, while the Support Activities for Oil and Gas Operations metric increased 73 percent from UI claims filed for the same period last year. The Board has used the funding to train 35 impacted individualsand hired nine temporary staff members providing Workforce Solutions Office services to meet the increased demand.
Issue
The Board reports that oil and gas and related business closures and bankruptcies continue, resulting in more layoffs and individuals needing retraining. The Board also reports recent economic forecastsfor the Permian Basin area project that the downturn in oil and gas will continue and will not turnaround until 2018. Additionally, the Board reports that its WIOA DW funding will be 100 percent obligated by December 2016. The Board has requested National Emergency Grant funding through TWC along with other impacted Boards. The application is currently in development.
To continue serving impacted individuals, the Board is requesting additional WIOA Additional Assistance funds in the amount of $300,000, with total combined funding of $551,000. Fundswill be used through May 31, 2017, to:
- provide quality training in targeted occupations and support services for approximately 28 to 35 additional customers; and
- fund up to five support staff members on a temporary basis, allowing the Board to provide the level of support necessary to serve the numerous individuals seeking assistance through Workforce Solutions Offices.
Recommendation
Staff recommends that $300,000 in additional WIOA Additional Assistance for Dislocated Workers funding be allocated to the Permian Basin workforce area for the purposes described above.
Notebook: Commission Meeting 8-9-16