Investing in Human Capital: Workforce Development

Since the passage of the Workforce Investment Act (WIA) of 1998 (PL 105-220), many states are using regional development organizations as administrators of local workforce investment boards. According to NADO Research Foundation’s 2000 survey of regional development organizations, 40 percent feel that workforce development is a current economic development need. Approximately 21 percent administer the US Department of Labor’s Workforce Investment Act in their region. Region XII Council of Governments (COG), an EDA funded district in Carroll, Iowa, has coordinated the local WIA Board since July 1, 2000.

Assisting in workforce development is not new for Region XII COG, as it administered the region’s efforts under the Job Training Partnership Act, the precursor to the workforce legislation. Region XII COG is a logical fit for the task, because as administrators of other programs, the organization has built relationships with a wide variety of members in the community including businesses, nonprofits, state agencies and local elected officials. Many states are looking to regional development organizations to help in this process because these organizations are locally controlled and understand the needs of the jurisdictions and citizens they serve.

Region XII COG provides services for adult, youth and dislocated workers in the six-county region, which is home to approximately 80,000 people. The COG’s three-person staff for workforce development focuses on assessing industry needs and evaluating the personal strengths of the individual to provide the best match in the job market. If a potential job match is identified but the individual needs more training for a high demand job, the COG will pay up to $4,000 in tuition for training. The COG also assists by defraying the costs of transportation and child-care while individuals are in school. The region also offers counseling on job seeking and retention skills.

After assisting an individual in obtaining employment, the COG then continues to follow the individual for one year to ensure the match was a good fit.

Workforce Success in Oregon Another example of a regional development organization being involved as a Workforce Investment Act (WIA) administrator is the Central Oregon Intergovernmental Council (COIC). COIC, an EDA funded district, serves 160,000 people in the three-county region and has an established record as a workforce development trainer and provider. As a Job Training Partnership Act (JTPA) provider, COIC had a placement rate of 90 percent for unemployed workers and 105 percent wage replacement for dislocated workers. While comparable WIA data is not yet available, COIC plans to use its past experiences from JTPA and build upon the new flexibility that WIA affords. Rik Mackay, the Executive Director of COIC, is focusing on business services through the one-stop centers. As Mackay stated, “If you create demand in the business community, the supply of workers will come.”

While other COGs in the state have 15-person boards, Region XII COG has a 28-person WIA board. Karen Burchfield, the Workforce Development Director/ Regional Manager for Region XII COG, believes that the larger board is an advantage. She explains, “More people bring more ideas and greater diversification to the board.” Members of the WIA board include business leaders, members of labor unions, city administrators, local elected officials and representatives of local nonprofit groups.

By Joseph Dunn, NADO Legislative Representative

For more information, please contact Karen Burchfield of Region XII COG at (712) 792-2685; and Rik Mackay of COIC at (541) 548-9522 or by email at rmackay@coic.org.

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