Located in:
- Program-specific Requirements for Adult, Dislocated Worker, and Youth Activities under Title I-B
The Unified or Combined State Plan must include the following with respect to activities carried out under subtitle B—
e. Waiver Requests (optional) (e1-e6)
States wanting to request waivers as part of their title I-B Operational Plan must include a waiver plan that includes the following information for each waiver requested:
1. Identifies the statutory or regulatory requirements for which a waiver is requested and the goals that the State or local area, as appropriate, intends to achieve as a result of the waiver and how those goals relate to the Unified or Combined State Plan;
2. Describes the actions that the State or local area, as appropriate, has undertaken to remove State or local statutory or regulatory barriers;
3. Describes the goals of the waiver and the expected programmatic outcomes if the request is granted;
4. Describes how the waiver will align with the Department’s policy priorities, such as:
A. Supporting employer engagement;
B. Connecting education and training strategies;
C. Supporting work-based learning;
D. Improving job and career results, and
E. Other guidance issued by the department.
5. Describes the individuals affected by the waiver, including how the waiver will impact services for disadvantaged populations or individuals with multiple barriers to employment; and
6. Describes the processes used to:
A. Monitor the progress in implementing the waiver;
B. Provide notice to any local board affected by the waiver;
C. Provide any local board affected by the waiver an opportunity to comment on the request;
D. Ensure meaningful public comment, including comment by business and organized labor, on the waiver.
E. Collect and report information about waiver outcomes in the State’s WIOA Annual Report.
7. The Secretary may require that States provide the most recent data available about the outcomes of the existing waiver in cases where the State seeks renewal of a previously approved waiver.
Current Narrative:
For PYs 2022 to 2023, Arizona requests an extension to the current, approved waiver of the requirement (20 CFR § 681.550) that Individual Training Accounts (ITAs) are only available to Out-of-School Youth enrolled in the WIOA Title I-B Youth Program. The current waiver was initially approved by the DOL on November 14, 2019. The current waiver expires on June 30, 2022.
This waiver enables In-School Youth ages 18 to 21 to use an ITA to purchase training services from training providers listed on ETPL, allowing Arizona to continue serving In-School Youth preparing to graduate high school and supporting their goal of entry into postsecondary education. This waiver encourages Youth Service Providers to continue supporting In-School Youth with postsecondary education and training activities allowing these youth to obtain industry-recognized credentials required for employment. It also helps with the recruitment of In-School Youth for enrollment into WIOA Title I-B Youth Program, expands the menu of services available to In-school youth enrolled in the WIOA Title I-B Youth Program, and increases consumer choice by the allowing In-School Youth to choose any of the training programs listed on Arizona’s ETPL. Without the waiver, In-School Youth will be limited to occupational skills training programs that are procured for youth. The waiver also allows Arizona to assist In-School youth already enrolled in postsecondary education by providing ITAs to assist paying for tuition and education-related expenses and fees. This allows the In-School Youth to complete their training program, provided the training program is listed on the ETPL. Arizona requests an extension of this waiver to allow LWDB within the State sufficient time to utilize the waiver and assess the outcomes of In-School Youth utilizing an ITA to pursue postsecondary education and training activities.
Arizona served 2,444 Out-of-School Youth and 326 In-School Youth in PY 2018. In PY 2018, Arizona spent $10,443,244 on Out-of-School Youth and $1,836,914 on In-School Youth, maintaining the required 75 percent of expenditures on Out-of-School Youth. Arizona continues its focus to serve Out-of-School Youth with the goal of increasing outcomes and increasing the number of Out-of-School Youth applying for and receiving WIOA Title I-B Youth Program services and increasing awareness by building partnerships with organizations and programs that serve Out-of-School Youth.
In preparing job seekers, as outlined in Goal #3 of the Arizona Unified State Workforce Development Plan for PYs 2020 to 2023, training opportunities must be available to both Out-of-School and In-School Youth.
1. The statutory and/or regulatory requirements the State would like to waive:
Arizona requests approval to waive the requirement under 20 CFR § 681.550 allowing use of ITAs to only Out-of-School Youth for attending training programs on the ETPL. Arizona requests ITAs also be available to In-School Youth so they may attend training programs on the ETPL.
2. Actions the State has undertaken to remove State or local barriers:
N/A
3. State the strategic goal(s) and DOL priorities (i.e., expansion of apprenticeship, improved employer engagement, etc.) supported by the waiver:
The waiver will support the implementation of the State Plan by:
- Supporting Goal 3; prepare job seekers, as defined in Arizona’s Unified Workforce Development Plan for PYs 2020 to 2023, The State Plan specifies that supporting participants as early as possible to obtain core employment and basic skills services is one of Arizona’s current strengths. By extending this waiver, Arizona will continue to assist youth in obtaining industry-recognized credentials that lead to employment.
- Encouraging transition of youth to postsecondary education and supporting entry into career pathways, including those with low skill levels.
- Encouraging Youth Service Providers to serve and support In-School Youth already enrolled in postsecondary education by issuing an ITA to assist with costs of the training program, therefore improving success in completion of the training program.
4. Projected programmatic outcomes resulting from implementation of the waiver:
It is anticipated that more In-School Youth will obtain industry-recognized credentials as the result of gaining access to training programs listed on the ETPL. As a result of the waiver, which DOL first approved in November 2019, the credential attainment rate for the WIOA Title I-B Youth Program is expected to increase. In PY 2020, local workforce development boards reported 95 ITAs created for In-School Youth, and the State intends to continue collecting and monitoring data to determine the outcomes of the waiver implementation.
5. DOL Policy Priorities
This waiver request aligns with DOL policy priority for increasing the number of youths who transition into postsecondary education. The waiver supports DOL’s commitment to providing high quality services for youth, including opportunities for skills training for in-demand industries and occupations that result in employment, enrollment in postsecondary education, and/or registered apprenticeships.
6. Individuals, groups, or populations benefitting from the waiver:
- In-School Youth are supported during their transition from secondary education into postsecondary education. By issuing ITAs, youth may receive financial assistance to attend training listed on Arizona’s ETPL, earn industry-recognized credentials, and become employed in jobs on a career pathway.
- In-School Youth already attending postsecondary education are supported to ensure completion of their training programs, to obtain industry-recognized credentials, and to become employed in jobs on a career pathway.
- In-School Youth benefit from increased consumer choice as Arizona’s ETPL currently includes over 1,200 training programs in PY 2018. The ETPL also provides information regarding the related occupation, expected entry-level wage, training program cost, and training program performance information allowing youth to make an informed choice regarding their training options.
7. How the State plans to monitor waiver implementation, including collection of waiver outcome information:
- Arizona will continue to monitor spending levels for Out-of-School Youth ensuring at least 75 percent of WIOA Title I-B Youth funds are spent on Out-of-School Youth.
- Arizona will continue to monitor ITAs issued to In-School and Out-of-School Youth to ensure they are used for attending training programs listed on the ETPL.
- Arizona provides technical assistance for reengaging Out-of-School Youth and increasing enrollment with the LWDAs.
8. Assurance of State posting of the request for public comment and notification to affected local workforce development boards:
This request for a waiver was posted online on the ARIZONA@WORK website from February 4 to 11, 2020 and disseminated via e-mail to ARIZONA@WORK partners, including LWDBs, with an opportunity to comment on the request.
Additional data:
- In PY20 Performance, 18 of 33 In-School Youth exiters who received Training Services were documented as having achieved a positive outcome in Credential Attainment. (Exit Dates 1/1/2019 - 12/31/2019)
- In PY21 Performance (as of 4/21/2022), 32 of 49 In-School Youth exiters who received Training Services achieved a positive outcome in this measure. (Exit Dates 1/1/2020 - 12/31/2020)
- The year-over-year increase in total participants in training services may be attributed in part to the ISY waiver, which was approved in November 2019. Further, the increased Credential Attainment rate, from 54.55% to 65.31% supports the original projections and expectations in the State plan. Currently, it appears that the PY22 Credential Rate Performance Indicator will include 88 In-School Youth exiters, another increase from the previous year. Using the previous two years as a baseline, it may be projected that approximately 50 individuals will achieve positive outcomes in PY22.