Narrative: d. 2. O. viii. I.

Maine is a large geographical state, which spans 30,843 square miles. The state is primarily rural in nature with a dispersed population of 1.3 million people and a density of 43 people per square mile. The largest population center can be found in southern Maine in the greater Portland area where approximately 91,200 individuals reside. Residents are primarily White (93.5%) with small representation of Black (1.5%), Asian (1.2%), and Native American (0.7%) individuals in certain geographical areas of the state. Maine’s population growth is significantly lower than the rest of the country with a rate of 0.6% between 2010 and 2017 as compared to the national rate of 5.5%. Additionally, the 2017 demographic profile released by the US Census Bureau indicates that Maine’s median age is 44.0 years, which is the oldest in the country. Workforce conditions in Maine continue to improve, although there has been virtually no real economic growth for a decade. Underlying those seemingly contradictory statements is a rapidly advancing age structure of the population that is constraining growth and tightening the labor market at the same time. Through 2016, real gross domestic product (GDP) has been little changed since 2006, after relatively steady growth in previous decades. Meanwhile, the number of jobs is up since 2010 post-recession low, but still nearly 3% short of the 2008 peak level. In the middle of 2015, the state has about the same number of jobs as in 2004. This situation is in stark contrast to the nation, which began reaching new highs in GDP in 2012 and in non-farm payroll jobs in 2014. Though lagging from a net growth perspective, Maine is outperforming the nation in terms of employment and unemployment rates. As of November 2017, the 3.0% unemployment rate was back to pre-recession levels and below the 4.1% U.S. average and the employment to population ratio remained higher than the nation. The reason employment and unemployment rates are better, but labor force, GDP, and other measures of net growth are lagging is that growth is increasingly being constrained by the sharp decline in births in the 1990s that leaves Maine with much smaller numbers of young people entering the labor force than baby boomers retiring. The 25 to 54 age cohort that has the highest rates of labor force participation, near 85%, has been declining since around the turn of the century. The broader 16 to 69 population, which comprises nearly everyone in the workforce, peaked in 2008 and today is more than 30,000 lower. Maine has the lowest share of youths and highest share of people in their upper 50s and 60s in the nation. The imbalance of entrants and exits caused the labor force to begin declining in 2014. The labor force decline has been expected, but it is occurring at a faster rate than previously forecast. In 2014, the Center for Workforce Research and Information (CWRI) forecast that the size of the labor force would decline to 695,500 in 2024. Through September, the labor force had already declined to an average of 691,000 in 2015. The reason the labor force is declining more rapidly than previously expected is that the rebound in labor force participation that normally occurs as conditions improve in post-recession recoveries has been much less than usual among cohorts under 55. If participation rates were as high in 2014 as in 2006 and 2007 among those age groups, there would be 33,000 more in the labor force. This was also the case nationally. There are many theories about why participation in the labor force has not rebounded as usually occurs in economic recoveries. For people under 30, higher rates of enrollment in educational programs is a primary reason. For people in their 30s to 50s, it is less clear, but likely that the high rates of displacement during the recession of production, construction, administrative support, and other types of workers who primarily performed physical labor or routinized functions is a primary factor. Those functions provide a declining share of jobs today. Many who were displaced do not have the education or work experience to match the needs of hiring employers in growing sectors. Many individuals will require job training or educational intervention to gain marketable skills to reenter the workforce. The mismatch between the educational attainment and experience of job seekers and the needs of employers is also revealed in the increased share of long term unemployed and elevated rates of labor underutilization among those who want a job, but are no longer looking or working fewer hours than they prefer who are not included in the unemployment rate. The 27 weeks’ average duration of unemployment in 2016 was nearly double the 2007 average (15.1 weeks). Though most job seekers became employed relatively quickly, 25% were unemployed more than 26 weeks, up from just 15% in 2007. If not for the elevated share of long term unemployed, the unemployment rate in Maine would be even lower. Additionally, the broadest measure of labor underutilization, known as U-6, which adds discouraged and other marginally attached workers who want a job, but are not looking and those working part-time who prefer full-time work to the job seeking unemployed, remains more elevated than the unemployment rate. (Only those actively seeking and unavailable for work are counted as unemployed. Retirees, homemakers, and other jobless people not looking for work are not in the labor force.) In an environment in which the labor force is shrinking, Maine does not have the luxury of tens of thousands of people less than fully engaged in the workforce. Many will require education or training intervention to acquire meaningful skills employers need. (CWRI, 2015). The passage of The Workforce Innovation and Opportunity Act (WIOA) of 2014 and reauthorization of the Rehabilitation Act of 1998, along with the subsequent release of final rules in 2016, has resulted in important changes to the practices of state vocational rehabilitation agencies including increased collaboration with other workforce development system partners and expanded services to students with disabilities. Many changes designed to help youth and adults with disabilities access employment education, job training and support services, have been made, including: • Establishing a much larger role for public vocational rehabilitation (VR) as youth with disabilities make the transition from school to adult life. Public VR funds in the amount of a 15% set-aside, must now be used for transition services, specifically pre-employment transitions services that include job exploration counseling, work-based learning experiences, counseling on post-secondary opportunities, workplace readiness training, and training on self-advocacy. Each local VR office must also undertake pre-employment transition coordination activities and they must involve schools and workforce development system in these activities. • Focusing supported employment state grants to VR agencies on youth. Half the money the state receives under these grants will now have to be used to support youth up to age 24 with the most significant disabilities to achieve supported competitive integrated employment. • VR may now provide extended supported employment services for up to 24 months (previously the limit was 18 months). • Limiting the use of sub-minimum wage. Section 511 is specifically intended to reduce the number of transition-age youth entering sheltered workshops and working for sub-minimum wage. The emphasis is on moving young people with significant disabilities into integrated community employment. The bill prohibits individuals with disabilities age 24 and younger from working in jobs paying less than the federal minimum of $7.25 per hour unless they first apply for and receive vocational rehabilitation services, among other requirements. There are exceptions but only for those already working for subminimum wage and cases where individuals may be deemed ineligible for vocational rehabilitation services. Section 511 also prohibits schools from contracting for services, training or work experiences that involve the use of sub-minimum wage. • Requiring state VR agencies to have formal agreements with the state Medicaid systems, and the state intellectual and developmental disability (IDD) agency. • Adding a definition of “customized employment” in federal statute, and an updated definition of “supported employment” that includes customized employment. • Adding a definition for “competitive integrated employment” as an optimal outcome. • Enhancing roles and requirements for the general workforce system and One-Stop Career Centers in meeting the needs of people with disabilities, including the expectation of full programmatic accessibility. (Lisa A. Mills, 2015) This Act regulates a major portion of the state’s rehabilitation services, including consumer-related services that are routinely purchased from community-based service providers. Since the passage of WIOA, the Bureau conducted an initiative to improve Provider relations and convened the Community Rehabilitation Provider (CRP) Project Steering Team. Based on the recommendations from this team, the Bureau of Rehabilitation — Division of Vocational Rehabilitation piloted an outcome-based milestone payment system that compensated Providers for meeting employment milestones for the clients that they serve and they assisted in revising and updating the CRP approval process and In-State standards. The findings from that pilot revealed mixed success, and in 2017, a hybrid payment system was introduced that both provided an incentive bonus payment for timely job placement and closure and returned to a fee for service model. The Bureau is engaged at all levels as the implementation of WIOA transforms existing systems into a more cohesive, effective and collaborative entity through participation in restructuring the One-Stop Career Center processes, Workforce Boards, training, employment and youth workforce activities. DVR was a full participant in and contributor to the submission of Maine’s first unified State Plan in 2016. Work to align performance metrics across State agencies is well underway along with new joint initiatives to engage with businesses as partners. WIOA’s increased attention on services to students and youth with disabilities has resulted in Maine in a number of pilot initiatives to deliver Pre-Employment Transition Services, as defined in WIOA. Passage of the final rules provided clarification on implementation of these services and DVR has reflected those changes in guidance and outreach materials to schools, families, employers and providers. An updated Memorandum of Understanding with the Maine Department of Education has been vetted by the State Rehabilitation Councils and Rehabilitation Services Administration and is currently awaiting signatures. Demand for community inclusion and access to employment by people with disabilities and their supporters continues to be strong across the country with consumer choice and opportunity for full participation being important for all. The advocacy and advice of the State Rehabilitation Council, Independent Living Council, and Disability Rights Maine, as well as groups, such as Maine APSE and the Alliance for Full Participation, help to ensure that rights are being respected, laws are being followed, and practices are being improved to increase the successful employment of people with disabilities. In June 2014, Maine’s legislature enacted the Employment First Maine Act (Sec. A-1. 26 MRSA c.3), which was a natural progression in Maine’s focus on competitive integrated employment as a valued outcome for the state’s citizens with disabilities. It set forth that the Departments of Health and Human Services, Labor, and Education must implement employment as a core component of services and supports provided and is the first and preferred service or support option offered to individuals with disabilities. The Act also convened a time-limited coalition of interested parties, including employers, state agency representatives, advocacy organizations, and people with disabilities, to review and make recommendations regarding the improvement of the administration of employment services and the employment outcomes of people with disabilities. Before its sunset in October 2016, the Employment First Maine Coalition produced a report summarizing the work that was completed and identifying twenty-seven recommendations for consideration by the Governor, the Legislature and state agencies, primarily identifying strategies that encourage the employment of youth and adults with disabilities, engage the business community, and improve EFM performance measures. (See complete report at: http://employmentfirstmaine.org/) According to the Maine Department of Labor’s Center for Workforce Research and Information (CWRI), there are 208,600 people with one or more disabilities in Maine, which comprise 16% of the civilian population and is above the 12% U.S. average. More than half of those with disabilities were between ages 18 and 64. Labor force participation of adults with disabilities averaged just 32% compared to 79% of those with no disability from 2011 to 2015. The unemployment rate was more than twice the rate for other workers. (Source: http://www.maine.gov/labor/cwri/disabilities/ ) Workers with disabilities in Maine were less likely to hold year-round, full-time jobs and most earned less than $25,000 per year. Adults with a disability are more likely to live in or near poverty, regardless of work status, and are less likely to have post-secondary education than adults with no disability. In the face of a declining labor force, there is opportunity for people with disabilities to become employed. (CWRI, 2017) While DVR services are an important resource for individuals with disabilities who are looking to enter, or re-enter the Maine workforce, VR services are only one option in an expanding array of employment supports and services. Co-location in Maine’s network of Department of Labor (MDOL) One-Stop CareerCenters has provided DVR the opportunity to work in partnership with several other programs that support employment of people with disabilities. The CareerCenters provide several employment programs that serve people with disabilities. The newly redesigned Maine Job Link is an online accessible CareerCenter tool to allow job seekers from around the state to be matched with real-time available open (currently over 11,000) positions. The Job Link has 22,248 active job bank registrants of whom 1,634 are self-disclosed job seekers with disabilities. This represents 7.3% of total Job Link registrants. Data reported on the ETA 9002 for Program Year 2014 showed that under the Wagner-Peyser Act, Maine served 2,627 individuals who disclosed a disability. This represents only 3.4% of all individuals served — and a significant decrease from the 4,525 individuals served in 2008. However, while the number of individuals with disabilities served was much lower than during the recession, the proportion of those with disabilities served remained almost unchanged. In Program Year 2014 (July 1, 2014-June 30, 2015), Maine’s Workforce Investment Act (WIA) data indicate that 172 individuals with self-disclosed disabilities were enrolled in WIA services. Among those that exited services, the entered employment rate was 77.1% compared to 73.2% for public assistance recipients and 69.6% for veterans. Average earnings data reveal that individuals with disabilities earned only $10,749 compared to $11,762 for public assistance recipients and $12,366 for veterans. While the Bureau of Employment Services (BES) collects data on self-reported disability, it does not require that individuals disclose having a disability. As a result of past work through collaborative efforts including two rounds of the Disability Employment Initiative grant funding, there is increased awareness and attention in the CareerCenters to increasing access to expanded services for customers with disabilities. There are concerns about the reliability of the current case management database; the system defines disability status within the context of vocational rehabilitation. Individuals who have a disability, which does not constitute a significant barrier to employment, are often not recorded as having a disability at all. Administrative override is required to update a person’s disability status when they disclose post-enrollment. We know that the number of people with disabilities served by CareerCenters is under-reported. According to 2016 estimates from the American Community Survey, people with disabilities comprise 13.7% of Maine’s working age population. ((ACS), 2012-2016). We would be hard pressed to assert that we are serving them in numbers commensurate with their presence in the general population. In addition to BES and CareerCenter services, the Department of Health and Human Services (DHHS) is a growing partner in the support and delivery of employment and pre-employment services for people with disabilities. DHHS currently supports approximately 6,000 people with developmental disabilities, brain injuries or physical disabilities through four Centers for Medicaid and Medicare Services (CMS) 1915c Waivers. The waivers allow individuals who have been found eligible for the Maine Office of Aging and Disability Services (OADS) Services based on disability/eligibility to become prepared for employment through Community Supports Services that can assist the person to volunteer, increase work-readiness skills, and address issues of health and safety. The Brain Injury waiver expanded to include a Work Ordered Day Clubhouse and the first one opened in the fall of 2017 in southern Maine. Career Planning Services are now available under all four waivers for people who need to spend time exploring interests, skills and abilities prior to going to Vocational Rehabilitation. Career Planning is expected to serve approximately 100 new people each year. Furthermore, OADS is providing on-the-job support through the waivers to about 1,000 people who are working throughout Maine. These services can provide support to both the individual and the employer to maintain employment. Now, approximately 3,500 working-age MaineCare waiver recipients are not working but are being asked about their interest and desire to move toward employment through their yearly planning process. Beginning in 2018, all Intake and Eligibility staff will also share information on employment as they meet people and their families for the first time. In the packet OADS provides during intake, there will be an Employment Pathway visual, an updated Employment Services VR brochure, and Work and Benefit Counseling information showing work is possible. The Department of Health and Human Services, in conjunction with other State Agencies and partners, has begun to implement the recommendations that were developed by the Employment First Maine Coalition. The Offices of Substance Abuse and Mental Health, Child and Family Services, and Aging and Disability Services have committed to work together to ensure that the outcome of employment of people with disabilities is a strong focus of the services they provide. During the past year, DHHS has created new resources, developed additional employment services, and has begun to expand expectations that service providers all have a responsibility to promote employment as the first and preferred outcome. SAMHS contracts with Maine Medical Center’s Vocational Services to provide Employment Specialists that are embedded in behavioral health organizations across the state to assist individuals living with serious mental illness. They assist with career exploration and securing employment, and provide other supports as needed. In keeping with best practices, these Employment Specialists work as a team with behavioral health professionals to improve outcomes. This service is supplemental and not necessarily a replacement service for Vocational Rehabilitation services through the DOL Bureau of Rehabilitation Services. Clubhouses help support members with overcoming barriers to employment by offering a variety of services such as in-house prevocational programs, transitional employment and competitive employment in the community with or without Supported Employment (SE) services. Prevocational programs give members the opportunity to contribute to the daily operation of the clubhouse on a volunteer basis while learning valuable skills. Transitional employment offers members the chance to work at temporary part time jobs through Clubhouse partnerships with local employers with on-the-job support from both the Clubhouse and the employer. Members also work in permanent positions in the community, at a job of their choosing, with SE as needed. There are four clubhouses in Maine. SAMHS and OADS contract with the Maine State Chamber of Commerce to maintain a state Business Leadership Network (BLN) affiliate. The Maine BLN is focused on assisting businesses in attracting and retaining new employees and customers with disabilities, developing business leaders who value diversity and actively work to promote strong communities that include individuals with disabilities, and increasing opportunities for businesses to expand their diversity recruiting efforts, not as a social model but as a business case to recruit talent and better serve their customers. Both the primary Community Support Services (Community Integration Services, Assertive Community Treatment and Community Rehabilitation Services), as well as Behavioral Health Home services require the development of an Individual Support Plan (ISP). Every 90 days, through the Individual Support Planning process, individuals receiving these services are asked about their vocational status and about unmet vocational needs. SAMHS funds specific employment services and collaborates with the Department of Labor’s Division of Vocational Rehabilitation to provide resources to address vocational needs. In keeping with the fidelity of the model, all ACT teams are required to have an employment specialist. Six Community Work Incentive Coordinators (CWICs) are available statewide to provide all Social Security beneficiaries with disabilities access to benefits counseling services. This initiative is a collaboration between SAMHS, OADS, and the Department of Labor’s Bureau of Rehabilitation Services. DHHS (SAMHS and OADS) and DOL BRS also collaborate on the development and maintenance of a comprehensive website, www.employmentforme.com, providing information on best practices and resources for employment for people with disabilities. The website is broken into four target audience sections — job seekers, service providers, youth in transition and employers. Another collaboration that is ongoing is the training and certification infrastructure. DHHS (SAMHS and OADS) also made available Balancing Incentive Program funds to increase system capacity to support individuals with disabilities on the path to employment. This initiative included training for Work and Benefits Navigators, the development of an advanced Work and Benefits Navigator training for Employment Specialists, the development of a Pathways to Employment infographic, and training in Individual Placement and Support and Supported Employment.