Where s the Money? Innovative City and State Funding Approaches to Supporting Transitional Jobs & Subsidized Employment Programs

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1 Where s the Money? Innovative City and State Funding Approaches to Supporting Transitional Jobs & Subsidized Employment Programs April 5, 2013 I 12:00p.m. EST

2 John Padilla Annie E. Casey Foundation

3 Elizabeth Lower-Basch Policy Coordinator Big Ideas for Jobs: Where s The Money? April 5,

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6 City of Newark Office of Reentry Transitional Jobs Funding Sources Ingrid D. Johnson Director, Reentry Initiatives Follow NewarkReentry on Twitter at

7 City of Newark s Office of Reentry An initiative of the Department of Economic and Housing Development Focuses on serving the several thousand residents returning home from prison and jail each year Emphasizes a rapid attachment to work model

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9 Clean and Green Program is one of Office of Reentry s strategies to assist participants in finding and maintaining employment. Participants must be case managed by an agency under contract with the Office of Reentry. Participants have the opportunity to work 32 hours per week for 13 weeks.

10 Clean and Green Projects Develop and harvest urban farms Clean, restore and maintain vacant city-owned lots

11 Major Funding Sources for Wages Economic Development Trust Fund (projects limited to redevelopment projects, urban revitalization projects, economic stabilization and stimulation ) ( ) Rental Car Tax (2013- ) Second Chance Act ( ) USDOL/ReXo ( ) Congressional Earmark funding ( )

12 Major Funding Sources for Case Management OJJDP ( ) Rental Car Tax (2013- ) WIA (2013- ) Second Chance Act funding ( ) USDOL/ReXo ( ) Federal Earmark ( )

13 Major Funding Sources for TJ Supervision/Supplies OJJDP ( ) Rental Car Tax (2013- ) Second Chance Act funding ( ) Private Philanthropy ( )

14 Mechanics of the Rental Car Tax State passed legislation to allow City to impose rental car tax within designated industrial zones to finance redevelopment. Municipal Council passed ordinance to impose 5% rental car tax. Collections are placed into a trust fund to be used for certain eligible purposes that include any redevelopment project or under undertaking in furtherance of a redevelopment plan in any area in need of redevelopment.

15 Mechanics of the Community and Economic Development Dedicated Trust Fund Funded through land sales; land obtained through tax foreclosures. Per ordinance, purpose is limited to financing the development costs associated with redevelopment projects, urban revitalization projects, economic stabilization and stimulation.

16 Wisconsin Transitional Jobs Demonstration Project Angela Davis, Data Analyst (608)

17 Overview of the Wisconsin TJDP Individuals Served TJDP Worker Eligibility: Age Must be a biological or adoptive parent, or primary relative caregiver of a child under age 18, unless the individual is less than 25 years of age (Individuals less than age 25 do not need to be a parent or primary relative caretaker of a child under age 18.) Household Income Below 150% of the Federal Poverty Level Unemployed for at Least 30 Days Ineligible for Unemployment Insurance Benefits Ineligible for W-2* Cash Benefits *Wisconsin Works (W-2) is Wisconsin s TANF/Welfare Reform Program dcf.wisconsin.gov

18 Wisconsin TJDP Funding *Budgeted for July 1, 2011-June 30, 2013.

19 How the Wisconsin TJDP Works TJDP Program Funding Allocation and Administration: Statewide Request for Proposals (RFPs) 17 Contractors Serving 38 Counties Received Funding Contractor or its Subcontractor Serve as Employer of Record Utilized private for-profit, private nonprofit, and government employers from various industries Contractor Reimbursed for Expenses Average Cost Per Worker is Approximately $6,300 dcf.wisconsin.gov

20 Wisconsin TJDP Public Support & Sustainability Community Support & Advocacy Employer Participation & Support Transitional Jobs Program Government Administration and Agency Support Legislative Support

21 Applying the Wisconsin Model TANF Utilization Focus on Economic Benefits for Employers as well as TJWs Common Eligibility Requirements and Program Phases : Orientation, Subsidized (Transitional Job), Follow Up Various Model Characteristics Differences: Budget utilization approach Level and length of training/job preparation offered Job supports offered Retention bonus offered Experienced Agencies and Subcontractors Larger/more experienced agencies stronger with administrative roles and data collection/documentation Smaller agencies can do well with worker and employer services; subcontracting can be useful. Thoughtful, Collaborative Implementation

22 Questions? Wisconsin Department of Children and Families Transitional Jobs Demonstration Project Angela Davis, Data Analyst Department of Children and Families Division of Economic and Family Security Bureau of Working Families (608)

23 THE CEO MODEL: OVERVIEW AND OUTCOMES Should include more diverse photos JOB READINESS TRAINING TRANSITIONAL EMPLOYMENT FULL-TIME PLACEMENT ONE YEAR FOLLOW UP 3,000+ Enrolled Annually Average 250 Participants Working Every Day On 45+ Work Crews 1,642 Placements In FY 2012 Up to $500 in Retention Incentives available to participants

24 HOW IT WORKS IN NY: INTERNAL SERVICE FUND New York State Department of Corrections and Community Supervision (DOCCS) houses the Fund; CEO acts as the managing agent of the Fund; CEO does work for government agencies and bills Parole directly for expenses; DOCCS pays CEO for its work and gets reimbursed directly from government agencies that use CEO crews. Intergovernmental transfers simplify access to crew labor and provide critical earned income revenue stream. CEO s Internal Service Fund Produces Job-Ready Workers, a Viable Service and Earned Income Through a Simple, Easy-to-Use, Cost-Effective Process 2

25 Big Ideas for Job Creation Where s the Money? Innovative Funding Approaches for Supporting Subsidized Employment and Transitional Jobs April 5, 2013 Melissa Young myoung@heartlandalliance.org

26 Recommendations: City & State Administrators Choosing a funding stream Making the case Showing capacity Public champions Non-Financial strategies for supporting these approaches

27 Get Connected. Stay Connected. Sign up for newsletters: us: Follow us: National Transitional Jobs

28 Thank you! Supporters: Annie E. Casey Foundation University of California Berkeley Presenters: Ingrid Johnson Angela Davis Marta Nelson