Narrative: e.

Eligible Training Provider (ETP) Performance Data Waiver Request

Statutory and regulatory requirements to be waived:

The State of Nevada (state) requested a waiver of the obligation of eligible training providers (ETPs) to collect performance data on all students in a training program at the Workforce Innovation and Opportunity Act (WIOA) sections 116(d)(4)(A) and 122; and, 20 CFR §677.230(a)(4) and (5) and 20 CFR §680.  Said waiver was approved on December 13, 2018, effective through June 30, 2020[1]. 

The state is now seeking a continuation of this waiver of the obligation of ETPs to collect performance data on all students in a training program at the above-referenced WIOA authorities, effective July 1, 2020 through June 30, 2022. 

Specifically, the state requests waiver authority to report a “0” in the eligible training provider performance report for non-WIOA program participants in the following nine data elements related to “all” individuals in training (data elements 120-128 on form EA 9171):

• 120 the number of individuals served;
• 121 the number exited (includes students who completed, withdrew or transferred out of the program);
• 122 the number who completed the program;
• 123 the number of exiters employed in the 2^nd quarter after exit;
• 124 the number of exiters employed in the 4^th quarter after exit;
• 125 median earnings of exiters in the 2^nd quarter after exit;
• 126 the number of exiters who attained a credential during participation or within one year after exit;
• 127 average earnings in the 2^nd quarter after exit; and
• 128 average earnings in the 4^th quarter after exit.

If approved, this waiver would allow eligible training providers (ETPs) to collect and report performance data for WIOA-funded participants only.

Issues identified prompting this waiver request:

WIOA §116(d)(4)(A), 20 CFR §677.230(a)(5) and 20 CFR §680 Subpart D require that training providers participating in WIOA report performance data for all individuals engaging in a program of study (both WIOA funded and non-supported) that is included on the Eligible Training Provider List (ETPL), which is maintained by the Department of Employment, Training and Rehabilitation (DETR) and Local Workforce Development Boards (LWDB); Nevadaworks and Workforce Connections.  This federal requirement creates a hardship for many training providers, resulting in fewer programs applying for inclusion on the state’s ETPL . 

Nevada recognizes the importance of monitoring provider performance; however, requiring training providers to produce data on all individuals, instead of solely WIOA-funded participants, could reduce the training choices and opportunities available to program participants

Nevada has identified several issues impacting delivery of training services to program participants that prompt this waiver request. These issues include and address:

• Insuring a sufficient numbers of training providers to provide a breadth of choices to program participants.
• Reducing the administrative burden on training providers to provide performance information to the state, particularly for private institutions without access to all data sources.
• The potential liability risk to ETPs collecting, maintaining and reporting students’ personally identifiable information (PII; e.g., social security numbers) and other sensitive data. 
• Educational institutions’ concerns with unauthorized access to their student data systems by potentially malicious parties.
• The state’s lack of the necessary data collection and validation tools needed to comply with the requirement to report all training program participant data, specifically non-WIOA student participants.

An example of the significant burden and impact that this federal requirement places on smaller training providers with limited administrative capacity is demonstrated in proprietary schools providing Commercial Driver’s License (CDL) training.  Graduates are often transient and work throughout the country, therefore making it difficult for training providers to obtain contact, identification and employment data on these program participants, particularly for students who were not assisted by WIOA and who do not recognize the importance of providing this post-training/graduation information. 

These issues also apply to program participants seeking higher academic and/or career credentials.  The Nevada System of Higher Education (NSHE) and private institutions typically have large numbers of students wherein only a small percentage are WIOA participants.  This results in these institutions considering that the administrative burden outweighs the benefits obtained from educating WIOA students.  Ultimately, this reduces the opportunities for students and the diversity of training programs that these institutions could offer.

The state believes that providing data on all individuals engaging in a program of study, instead of just WIOA-funded participants, conflicts with both the Family Educational Rights and Privacy Act of 1974 (FERPA; 20 U.S.C. §1232 g) and Nevada state law (NRS 388.267; NRS 388.272), which protect the privacy of student education records.   Releasing student information on individuals who are not workforce system participants without their explicit consent could potentially violate federal and state privacy laws and potentially compromise their personally identifiable information (PII).

Under this waiver, Nevada will continue to require training providers to collect and report performance data for all WIOA-funded participants in accordance with WIOA §116(d)(4)(A) and as specified at 20 CFR §677.230 (a), and will assist training providers in this process according to the requirements of 20 CFR 680.490.

Goals and expected outcomes of waiver:

Goals:

The goal of increasing training/educational choices for WIOA clients can be greatly assisted by reducing barriers that training service providers must contend with, as well as waiving the requirement to report on students who obtain no benefit from WIOA. State strategic goals supported by this waiver request include, but are not limited to:

1. Increased availability of high quality training/education options for WIOA participants.  This proposed waiver could increase the number of training providers on the ETPL resulting in additional choices for WIOA participants.
2. Ensured protection of PII of non-WIOA participants.  Not requiring the reporting of data for non-WIOA students would reduce the chances of unauthorized disclosure of student PII.

Programmatic Outcomes:

Approval of this waiver would:

1. Reduce the reporting and administrative burdens placed on the training providers, which would allow them to focus time and resources on producing successful outcomes for both their WIOA-funded and non-WIOA students.
2. Increase access and opportunities by promoting a wider variety of training programs through the increase of ETPs on the ETPL.
3. Potentially decrease training costs through the increase of ETPs and training options available to individuals.
4. Provide a wider breadth of training options, with increased demand-driven training options for individuals.

Actions to Remove Barriers:

There is currently no state or local statutory or regulatory barrier to implementing the requested waiver.  The State of Nevada’s regulations and WIOA State Compliance Policies are in compliance with current state and federal laws.

Department of Labor Policy Priorities:

This proposed waiver will support the U.S. Department of Labor’s (USDOL) education and training strategy priorities to allow the increase in training and education choices available to WIOA participants, and encourage training providers to focus on successful outcomes for WIOA-funded participants while protecting the privacy rights of non-WIOA students.

Individuals impacted by the waiver:

This waiver will reduce the reporting burden on training providers while retaining the requirement to report all required performance data for all WIOA-funded participants resulting in significant impact on multiple populations of the public workforce system including, but not limited to:

• Individuals who access training services in Nevada via Individual Training Accounts (ITAs)
• Nevada Department of Employment, Training and Rehabilitation (DETR), Employment Security Division (ESD), Workforce Investment Support Services’ (WISS) staff
• Nevada Jobconnect and One-Stop Career Center staff
• State workforce development board and staff
• Local workforce development boards and staff
• Staff and administrators of ETPs

Continued Eligibility:

To comply with the state’s responsibility to maintain a procedure whereby eligible training providers and programs maintain their continued eligibility as provided in 20 CFR § 680.460, the state has established the following WIOA State Compliance Policies: 

• 1.9 Individual Training Accounts
• 1.12 WIOA Selection of Eligible Training Providers
• 1.13 Termination of Training Service Providers
• 5.7 Oversight and Monitoring

Process for monitoring the waiver implementation progress:

The state will obtain program information and required data from ETPs on their WIOA-funded students, and submit that information in the state’s annual WIOA report to USDOL.  Furthermore, the state will continue oversight, monitoring and technical assistance to ensure WIOA requirements for state, local areas and direct recipients of program funds are in compliance (SCP 5.7).

Notice to affected Boards:

The state will review this waiver request with local elected officials and local workforce board staff, and provide any relevant input and/or comments in an addendum to this waiver request.

Public comment:

The state provided a period for public comment as required by 20 CFR §679.620 by providing the state’s two local workforce development boards (i.e., Nevadaworks and Workforce Connections) opportunity to comment on said waiver, as well as posting public notice of said waiver to ensure that opportunities for meaningful public comment were made available.  Said public notice posting was published on the  department’s website (www.detr.nv.gov/Page/PUBLIC_NOTICES), soliciting comments from March 9, 2020 through March 31, 2020.  There were no public comments submitted to the department.

Waiver impact:

Under the provisions of this waiver, training providers will be able to submit data on their WIOA-funded students with less concern over control of PII or other sensitive data on non-WIOA students. This will increase retention of WIOA ETPL providers, increase market choices available to program participants and allow Nevada to continue delivering essential training services to meet the needs of employers, job seekers and workers.

Title 1-B Assurances:

The Unified State Plan must include assurances that:

1. The State has implemented a policy to ensure Adult program funds provide a priority in the delivery of training services and individualized career services to individuals who are low income, public assistance recipients and basic skills deficient.  Yes
2. The State has implemented a policy to ensure local areas have a process in place for referring veterans with significant barriers to employment to career services provided by the JVSG program's Disabled Veterans' Outreach Program (DVOP) specialist. Yes
3. The state established a written policy and procedure that set forth criteria to be used by chief elected officials for the appointment of local workforce development board members.  Yes
4. The State established written policy and procedures to ensure local workforce development boards are certified by the governor every two years in accordance with WIOA section 107(c)(2).  Yes
5. Where an alternative entity takes the place of a State Board, the State has written policy and procedures to ensure the alternative entity meets the definition under WIOA section 101(e) and the legal requirements for membership.  N/A
6. The State established a written policy and procedure for how the individuals and entities represented on the Governor’s Workforce Development Board help to determine the methods and factors of distribution, and how the State consults with chief elected officials in local areas throughout the State in determining the distributions.  Yes
7. The State will not use funds received under WIOA Title I to assist, promote, or deter union organizing in accordance with WIOA section 181(b)(7).      Yes
8. The State distribute adult and youth funds received under WIOA equitably throughout the State, and no local area suffers significant shifts in funding from year-to-year during the period covered by this plan. Yes
9. If the Governor’s Workforce Development Board, department, or agency administers State laws for vocational rehabilitation of persons with disabilities, that board, department, or agency cooperates with the agency that administers Wagner-Peyser services, Adult and Dislocated Worker Programs and Youth Programs under Title I. Yes
10. The State agrees to report on the impact and outcomes of its approved waivers in its WIOA Annual Report. Yes
11. The State has taken appropriate action to insure compliance with the Uniform Guidance at 2 CFR 200 and 2 CFR 2900, including that the State will annually monitor local areas to ensure compliance and otherwise take appropriate action to secure compliance with the Uniform Guidance under section WIOA 184(a)(3). Yes

Nevada’s Clarification Responses to Eligible Training Provider (ETP) Performance Data Waiver Request

Question (Q)1:  Evidence that ETP data collection and reporting requirements are limiting choice (not enough providers).

Answer (A) 1:  The Nevada Department of Employment, Training and Rehabilitation (DETR) asked training providers if they would be able to provide the information on all training participants; the majority indicated ‘no’ for several reasons that include, but are not limited to: (1) Colleges and universities within Nevada’s System of Higher Education (NSHE) do not require social security numbers during the registration process, nor do they release information on individual students or their employment per the Family Educational Rights and Privacy Act (FERPA; 20 U.S.C. § 1232g; 34 CFR Part 99); (2) Local truck driving schools are prohibited by Department of Transportation regulations to ask for social security numbers, which are needed to be able to perform the wage match for the employment performance reporting; and, (3) Small, locally owned approved training providers do not have the resources to track and report on all participants within their programs of study.

Q2:  Are there any special circumstances, especially those which would benefit WIOA priority populations?

A2:  There are none that Nevada is currently aware of.

Q3:  Are there plans for improving data collection efforts that would negate the need for his waiver as per TEGL 8-19?

A3:  Nevada, as well as many other states, is working with its management information system – Geographic Solutions – to develop and implement a process to be able to securely capture this data for reporting purposes.  Said project has been temporarily placed on hold due to the impact of the state of emergency resulting from COVID-19.  Nevada plans on resuming this work post-COVID-19 priority projects, eta. Spring-Summer 2021, pending any additional unknown emergency events.

Q4:  As a renewal - How did the waiver improve consumer choice? How many additional providers was the state able to attract to the ETP list?

A4:  Because Nevada did not report all participants, or deny providers the inability to report this information, only data regarding new providers, existing providers, reviewed and approved providers is available.  A total of 18 new providers were added to Nevada’s ETPL from 2017-2019.

Q5:  Provide evidence that the state is achieving the goals (or making progress towards them) they projected in their prior waiver request.

A5:  Nevada’s employment data demonstrates that stated goals are being met.  Attached is Nevada’s AR10 report, which reflects employment for years 2019-2020.

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Waiver Request

Out of School Youth Expenditure Requirement

Actions for the removal of state or local statutory or regulatory barriers:There are no State of Nevada or local statutory or regulatory barriers to implementation.  DETR compliance policies meet current federal program requirements.

State strategic goals/US Department of Labor priorities supported by waiver request:This request supports the DOL policy priorities of:

• Secondary and post-secondary educational obtainment,
• Increase youth access to educational, training, employment, and support services for at-risk in school Youth (ISY) as needed,
• Support the development of career pathways that align with in-demand career areas identified by Department of Labor and the Nevada’s Office of Workforce Innovation (OWINN).

Nevada believes that the local areas will benefit from the OSY waiver because:

ISY programs produce higher quality educational outcomes at a greater rate. Nevada has examined 908 exits over PY18 and PY19 comparing educational outcomes of ISY vs. OSY who do not have a high school diploma (drop-outs).  Based on educational status at participation and exit, ISY had a secondary drop-out rate of 9.4% as compared to OSY who had 43.1% of participants in the secondary drop-out educational status.  In other words, ISY are more apt to remain in school, achieve a diploma and move on to post-secondary education. See table below

Increased educational outcomes are strongly correlated to long term earnings and employment outcomes. Increased earnings and post-secondary educational attainment for high school diploma holders vs. GED holders indicates a significant benefit to implementing drop-out prevention strategies. Data presented at https://www.census.gov/newsroom/blogs/random-samplings/2012/02/ged-recipients-have-lower-earnings-are-less-likely-to-enter-college.html indicates, “GED certificate holders had lower earnings than those who earned a regular high school diploma regardless of sex, race and ethnicity or age. Overall, high school diploma holders earned approximately $4,700 in mean monthly earnings compared with GED certificate holders, who earned $3,100.” Also, the benefit of the high school diploma over the GED extends to individuals even after they obtain higher degrees. “In addition to being less likely to pursue a college education, GED certificate holders earned less than high school diploma recipients even when they did achieve higher education. Among adults who attained a bachelor’s degree or higher, the mean earnings of those who earned a high school diploma were approximately $6,300, while the earnings of those who earned a GED certificate were approximately $4,900.” See table below:

Nevada has one of the highest, frequently the highest, drop-out rates in the nation.  For 2017/18 Nevada recorded a statewide drop-out rate for 9^th through 12^th grade students of 3.1 percent followed by 2.7 percent for 2018/19, for the Clark County School District which is the fifth largest in the nation; the respective rates were 3.4 and 3.0 percent. Addressing the challenges which at-risk ISY face, will reduce the drop-out rate thereby reducing the number of OSY in need of WIOA services. Engagement of additional ISY through the increased availability of WIOA funding will provide them with additional education and training resources enabling them to both enter career oriented economically self-sufficient work and pursue additional post-secondary opportunities.  Specific services that can be provided through WIOA include on the job training (OJT) and work experience (WEX) opportunities which should decrease the number of youth dropping out or otherwise failing to obtain a secondary credential.  These activities also allow participants to gain the hard and soft work skills necessary for successful integration into the workplace. 

WIOA also allows support service assistance to program participants.  A population that would particularly benefit in Nevada is foster youth.  Foster youth and youth aging out of foster care, who are typically ISY, have been identified as a target population by Workforce Connections the local board organization serving the metropolitan Las Vegas area and surrounding rural areas of Clark, Nye, Lincoln and Esmeralda counties.  Having access to WIOA resources should significantly increase the rate of secondary school graduation and increase their success in transitioning to adult life. 

Local Boards have also targeted services toward youth involved with the juvenile justice system.  Many of these are younger youth, are still enrolled in education and the ability to provide the education and career services available within WIOA will increase their chances of both high school graduation and integration into the career path workforce.  Also, some populations which are currently served as OSY would be better served with an ISY program model (i.e. Incarcerated youth). Youth who are enrolled in Juvenile Justice are often enrolled in OSY programs based on educational status when they are incarcerated.  Although these youths fit the definition of an OSY, they are better suited for ISY programs due to their age and goals.

While the state and local districts have made significant progress addressing the drop-out rate, this situation is an area of continued concern for education administrators and elected officials at both levels[1].  Businesses, the State board working through the Governor’s Office of Workforce Innovation (OWINN) and other workforce system participants also recognize the issue as negatively impacting efforts to develop the labor force necessary to grow and diversify the state economy.  Local and State agencies are attempting to address the problem, but are often limited in scope and program design and additional resources provided through increased ISY funding will augment and improve their results.  County school districts have developed local programs to help alleviate the situation.  The Governor’s Office provides significant support to the Jobs for Nevada’s Graduates (JAGNV) program including the use of Governor’s reserve (WIOA) funds, and the State Department of Education has developed ongoing programs and initiatives addressing issues including distance learning, homelessness, and competency based learning intended to increase the number of students obtaining secondary credentials. 

Nevada has been successful with exceeding OSY expenditure requirements.  With the implementation of WIOA, the local Boards have worked diligently to transition the system from ISY dominant to OSY dominant.  Several factors have contributed to continued low ISY expenditure rates:

• The original strategy for implementation of WIOA was containment of ISY expenditures.
• Procurements have been primarily designed around serving OSY.
• Shift of expenditures to OSY has limited system capacity to work with and recruit ISY in the schools.

Approval of the proposed waiver will provide additional tools to both state and local, public and private, service providers and administrators to address Nevada’s situation.  The reduction would allow the local areas to continue serving the OSY population while also increasing the ability to meet the needs of ISY in alignment with WIOA’s intent by supporting career pathways and the preparation of young people for in-demand careers in the workforce, regardless of a youth’s school status.

DETR also recognizes the need to continue to prioritize service to OSY and will pursue strategies including youth and adult co-enrollment, seek to partner with other agencies including adult education, and will remain in compliance with all program and reporting requirements.

The State of Nevada and the Local Boards (Nevadaworks that serves northern Nevada, and Workforce Connections that serves the southern four counties of the state) also recognize their continued responsibility to address the needs of OSY.  The State will monitor the Local Boards to ensure compliance with the modified funding apportionment, to provide effective, quality service to both ISY and OSY participants, and ensure that all other statutory and regulatory requirements are met by the Local Boards, one-stop operators and client service providers.

Projected programmatic outcomes from waiver:Approval of this waiver request would permit the Local Boards the opportunity to determine how best to meet the educational and training needs of youth, regardless of school status, and specific to the population, geographical location, and the economic and employment conditions of each workforce area.  Nevada is a majority/minority state, both Boards are responsible for serving urban and rural populations, both have areas of extreme poverty and significant English language learner populations.  Approval of the waiver will allow Nevada to efficiently target all at-risk youth, meet the revised expenditure targets and negotiated performance measures for this client population.  Nevada expects to shift $2.3 million from OSY expenditures to ISY expenditures to enroll 300 additional ISY because of the waiver.  As a result, Nevada expects the following outcomes associated with WIOA:

Individuals, groups or populations impacted by the proposed waiver:DETR intends for this waiver to benefit the large number of at-risk ISY in Nevada.  It will reduce barriers to education, training, and employment and will continue to serve OSY as a priority population as required by WIOA. Nevada expects to enroll 250 fewer OSY because of the proposed waiver.

Long term benefit to ISY participants: Based on Census data, noted above, long term educational achievement outcomes not measured by WIOA are projected to be as follows:

Procedure for monitoring progress of waiver implementation/collection of outcome information:

DETR will continue monitoring state and local area performance using both state and federal accountability systems to ensure that all negotiated performance measures are met including expenditure percentages, results are accurately reported and will provide necessary technical assistance to the Local Boards, one-stop operators and service providers.  As part of the monitoring and performance accountability process, DETR will collect data on waiver outcomes which will be included in the Nevada WIOA Annual Report.  Any waiver renewal requests will include the most recent available outcomes data.

Assurance of state posting of the request for public comment and notification of affected local workforce development boards:

DETR will provide for meaningful public review and comment.  It will publish the proposed waiver in compliance with Nevada statutory requirements and will review and develop a response to all comments received.  DETR has notified all Boards that the agency is seeking this waiver request and sought their input before submitting this request to DOLETA.

Public Comment

The state provided a period for public comment as required by 20 CFR §679.620 by providing the state’s two local workforce development boards (i.e., Nevadaworks and Workforce Connections) opportunity to comment on said waiver, as well as posting public notice of said waiver to ensure that opportunities for meaningful public comment were made available.  Said public notice posting was published on the  department’s website (www.detr.nv.gov/Page/PUBLIC_NOTICES), soliciting comments from March 26, 2020 through April 27, 2020.  There were no public comments submitted to the department.