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States Want More Control on WIA ‘Set-Aside’ Funds

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State workforce development programs have been suffering drastic cuts, as what was once a 15% set-aside from the federal Workforce Investment Act has been reduced to 5%. This has caused state-level workforce programs to compete directly with themselves for state funding. It’s not as though it’s a benefit to taxpayers, as this is just a dispute between the federal government and several states for who gets to decide which programs to fund. The federal government claims that their own funding for spending has been slashed, but the state governors counter that they should get a larger share of the workforce development budget. It’s critical that money is spent on realistic options, as the unemployment rates are still quite high and the job market is recovering. Poor management may lead to the economy stagnating, or actually worsening. Nevertheless, accepting the re-appropriations which may make Washington decide to reallocate funds to the state may actually just result in a bigger spending budget, rather than redistribution. With the current state of affairs, most services are simply suspended and innovation is stifled. State governments want more control of those shrinking resources which are being allocated to these programs, as money is being redirected to many other programs outside of their control.

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States Want More Control on WIA 'Set-Aside' Funds by
Authored by: Harrison Barnes