Financing Youth Transitional Jobs Programs

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Financing Youth Transitional Jobs Programs

• Prepared for National Transitional Jobs Network
• by
• Sara Hastings
• April 1st, 2008

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CCRY Network

• Communities Collaborating to Reconnect Youth
  (CCRY) Network
• The Networks mission is to empower communities
  to create effective, innovative partnerships
  among local youth-serving systems to improve
  young people's opportunities and well-being

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Overview

• Types of TJ Program Models for Youth
• Cost Structure of TJ Programs
• Developing a Finance Plan
• Funding Sources
• Examples of Funding for TJ programs
• Strategies for Securing Funding

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Types of TJ Program Models for Youth

• For all populations
• Individual Placement
• Work Crews
• Social Enterprises

• For Youth
• mainly operate social enterprises or work crew
  based models

Source Transitional Jobs for Youth, National
Transitional Jobs Network, 2007
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Cost Structure of TJ Programs

• Participant Wages
• Case Management
• Support Services
• Education and Training
• Job Placement and Retention

Source Financing Transitional Jobs Programs, A
Strategic Guide to Federal Funding Programs The
Finance Project, June 2004
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Cost per Transitional Job Particpant

• Average cost 10,000 per slot varies
  depending on
• wage
• hours worked per week
• length of transitional jobs experiences (ex 3, 6,
  or 9 mo)
• program staff size structure (expenses
  associated with being the employer of record)
• incidental costs (uniforms, transportation,
  equipment, etc.)
• Incentive payments for retention

Source Andrea Ray, Heartland Alliance for Human
Needs and Human Rights
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When Developing a Finance Plan..

• Determine who to serve and what your programs
  goals are
• Think about how you want to market your program
  be strategic when you cost out the program for
  funding
• Diversify, coordinate and align funding
• Partner with existing systems and organizations
• Dont underestimate the staff capacity necessary
  to meet the requirements and outcomes of a
  specific funding stream
• Network with other TJ program providers

Source Financing Transitional Jobs Programs, A
Strategic Guide to Federal Funding Programs The
Finance Project, June 2004
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Federal Funding Sources

• AmeriCorps
• Community Development Block Grant (CDBG)
• HOPE VI
• Perkins Vocational and Technical Education Act
• Renewal Communities (RCs), Empowerment Zones
  (EZs), Enterprise Communities (ECs)
• Resident Opportunities and Self-Sufficiency
  Program (ROSS)

Source Financing Transitional Jobs Programs, A
Strategic Guide to Federal Funding Programs The
Finance Project, June 2004
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Federal Funding Sources

• State Vocational Rehabilitation Services
• Social Services Block Grant (SSBG)
• Temporary Assistance for Needy Families (TANF)
• Weed and Seed
• Workforce Investment Act (WIA)
• YouthBuild
• Youth Opportunity

Source Financing Transitional Jobs Programs, A
Strategic Guide to Federal Funding Programs The
Finance Project, June 2004
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Overview of 4 Federal Funding Sources for
Transitional Jobs
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Federal Funding Opportunities for Transitional
Jobs

• Workforce Investment Act (WIA)
• Temporary Assistance for Needy Families (TANF)
• Community Development Block Grant (CDBG)
• Youthbuild

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Workforce Investment Act (WIA)

• WIA is the major federal workforce program
• Purpose is to provide activities to 14-21 year
  old low-income with employment barriers
• Educational and competency skills
• Connections to employers
• Mentoring opportunities, training and supportive
  services
• Opportunities for leadership development,
  decision-making, citizenship and community
  service
• WIA can fund all five components of the TJ model
• At least 30 of youth funds must be used for
  out-of-school youth

Source Financing Transitional Jobs Programs, A
Strategic Guide to Federal Funding Programs The
Finance Project, June 2004
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WIA Considerations

• Program rules are specific and may not match your
  program design
• Performance measures can be a disincentive to
  serving individuals with barriers to employment
• Funds are highly competitive and can be difficult
  to secure

Source Financing Transitional Jobs Programs, A
Strategic Guide to Federal Funding Programs The
Finance Project, June 2004
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Temporary Assistance for Needy Families (TANF)

• Major federal welfare program
• TANF is both a program and a funding stream
• States have significant discretion over how funds
  are used and can enter into contracts with
  nonprofit service providers
• Funds can be used to pay for all five components
  of a transitional jobs program

Source Financing Transitional Jobs Programs, A
Strategic Guide to Federal Funding Programs The
Finance Project, June 2004 CLASP, 2008
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TANF Considerations

• Reauthorized in 2005 under the Deficit Reduction
  Act (DRA)
• Increased work participation rate requirements
• Narrowed the definitions of allowable work
  activities
• Transitional Jobs can be an attractive option to
  help states meet their rates.
• TJ providers will need to analyze how activities
  are tracked and counted
• Project 6 months forward with one full month of
  documentation

Source Transitional Jobs Helping TANF
Recipients with Barriers to Employment Succeed in
the Labor Market, CLASP 2006
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Community Development Block Grant (CDBG)

• Awarded annually by HUD through formal grants to
  states and certain municipalities
• Puprose is to develop and sustain programs that
  enhance the economic and housing conditions of
  low and moderate income persons and neighborhoods
  
• Funding
• Up to 15 to support public services
• The rest to public improvements and facilities

Source Using CDBG to Support Community-Based
Youth Programs, The Finance Project, 2008
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CDBG Considerations

• Very large and flexible funding stream
• Can support all five components of a transitional
  jobs model
• Considerable competition in communities to access
  this funding
• Understand and if possible, being involved in,
  this Consolidated Planning Process is critical
• Analyze how accessible these particular funds are
  in your community and how you could blend other
  resources to sustain your program

Source Using CDBG to Support Community-Based
Youth Programs, The Finance Project, 2008
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YouthBuild

• DOL now administers the YouthBuild program and
  funds grantees that are selected on a competitive
  basis
• Serves youth ages
• 16 to 24 dropouts,
• AND are either low-income, in foster care, a
  youth offender, have a disability, are the child
  of an incarcerated parent OR a migrant youth
• Purpose is to enable disadvantaged youth to
  obtain the education and employment skills and
  work opportunities necessary to achieve economic
  self-sufficiency

Source YouthBuild General Program Questions,
U.S. Department of Labor, www.dol.gov
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YouthBuild

• YouthBuild funds can now be used to support
  career pathway training in other high-demand
  occupations or industries offered within a
  YouthBuild program in addition to construction.
• YouthBuild can fund all five major components of
  a transitional jobs program
• Participants can be co-enrolled in other types of
  funded programs including WIA and AmeriCorps

Source YouthBuild General Program Questions,
U.S. Department of Labor, www.dol.gov
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YouthBuild Considerations

• Grants are highly competive and funds are limited
• Grantees are eligible for AmeriCorps support
• Programs can also receive some funding through
  YouthBuild USA
• YouthBuild grantees need to be knowledgeable
  about local labor market needs not only in the
  construction industry, but other high-growth,
  high-demand industries

Source YouthBuild General Program Questions,
U.S. Department of Labor, www.dol.gov
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Trasitional JobsProgram Examples

• Mile High Youth Corps (Denver, CO)
• Youth Opportunity Boston

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Mile High Youth Corps

• Uses CDBG,TANF, Americorps, YouthBuild and other
  state, local and private funding.
• TANF restricts the use of funding to only pay for
  support services and staff but NOT wages.
• AmeriCorps funding Corpsmembers receive
  education award
• CDBG pays for all components of the model

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Mile High Youth Corps

• Partnership with Denver Housing Authority to host
  YouthBuild Program
• Several Fee-for-service contracts
• For more information on Youth Corps, visit The
  Corps Networks www.corpsnetwork.org
• For more information on the Mile High Youth
  Corps, visit www.milehighyouthcorps.org

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Youth Opportunity Boston

• Serves court-involved youth 14 to 24
• Multi-tiered Transitional Employment Service
• Level One Pre-employment, job readiness training
  and professional development track working in
  groups
• Level Two Bridge Program - transitional
  employment to improve on workplace behavior and
  academic skills.
• Level Three Offers employment placement and
  career counseling and continued educational
  support

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YO Boston Funding

• 2000-2005 Youth Opportunity Grant (under WIA)
  funded the program
• Currently, just over 50 of YO Boston is funded
  by the State Shannon Anti-Gang Grant.
• For 06-07 Boston was awarded 3 million and out
  of that YO Boston received 1.3 million
• Around 30 is funding through city funding
  streams
• The rest is funded through small pockets of state
  funding, private foundations and local vendors.

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Strategies for Securing Funding

• Understand the goals and priorities of the state
• Identify, track and monitor grant opportunities
• Learn who the decision-makers are
• Be prepared to take advantage of emerging trends
• Build relationships with national networks - like
  NTJN, NYEC, The Corps Network, CCRY Network

Finding Funding A Guide to Federal Sources for
Youth Programs, The Finance Project, January 2007
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Helpful Resources

• National Transitional Job Network website
  http//transitionaljobs.net
• Center for Law and Social Policy
  http//www.clasp.org/
• The Finance Project website http//www.financepro
  ject.org
• Financing Transitional Jobs Programs A Strategic
  Guide to Federal Funding Programs, The Finance
  Project, June 2004
• Finding Funding A Guide to Federal Sources for
  Youth Programs, The Finance Project, January 2007
• Grants.gov - http//www.grants.gov

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Questions

• Sara Hastings
• Center for Law and Social Policy
• [phone]
• shastings_at_clasp.org