DRAFT FOR PUBLIC REVIEW AND COMMENT

ARRA ADDENDUM TO WISCONSIN'S WIA STATE PLAN MODIFICATION



WISCONSIN'S

AMERICAN RECOVERY and REINVESTMENT ACT

ADDENDUM

to the

WORKFORCE INVESTMENT ACT

STATE PLAN PROGRAM YEAR 2009- 2010

JUNE 2009






ARRA ADDENDUM TO WISCONSIN'S WIA STATE PLAN MODIFICATION
Index of American Recovery and Reinvestment Act Addendum
to
Wisconsin's Plan Modification Program Year 2009 - 2010


American Recovery and Reinvestment Act (ARRA) Elements Required per the Training
and Employment Guidance Letter 14- 08:

Section I. Context, Vision, and Strategy Page 1
Economic and Labor Market Context
State Vision and Priorities
Overarching State Strategies
Service Delivery Strategies, Support for Training

Section II. Service Delivery Page 13
State Governance and Collaboration
Reemployment Services and Wagner-Peyser Act Services
Adult and Dislocated Worker Services
Youth Services
Veterans' Priority of Services
Service Delivery to Targeted Populations

Section III. Operations Page 28
Transparency and Public Comment
Increasing Services for Universal Access
Local Planning Process
Procurement
Technical Assistance
Monitoring and Oversight
Accountability and Performance

Attachments:

ETA Regional Administrator Attachment A
Program Administration Designees and Plan Signature Attachment B
Acronyms Attachment C
Governor Doyle's Executive Order Attachment D
Department of Workforce Development ARRA Administrative Memos Attachment E
Map of Comprehensive Centers Attachment F
Map of Additional Sites Attachment G
State Veterans Policy Issuance Attachment H
Council on Workforce Investment Subcommittee Charge Attachment I
ARRA Addendum Local Plan Guideline Attachment J
Monitoring Guides Attachment K
Wavier Plan Attachment L
Public Review and Comment Attachment M ARRA ADDENDUM TO WISCONSIN'S WIA STATE PLAN MODIFICATION
Introduction


Governor Doyle submitted Wisconsin's Workforce Investment Act State Plan
Modification for program year 2009 - 2010 on April 15, 2009. This submission was
warranted due to the major modifications that had occurred to improve the workforce
system and upgrade the skills of our citizens.

This Wisconsin American Recovery and Reinvestment Act Addendum is an
amplification of the State Plan Modification. [The notations in brackets below each
section in this ARRA Addendum identifies the page numbers in the State Plan
Modification for cross-reference purposes between the two documents.]

The April 15, 2009 State Plan Modification incorporates many of the Invest in People
strategies contained in the Governor's plan for growing Wisconsin's economy, GROW
Wisconsin - the Next Steps. Last fall, the Governor charged Wisconsin's Council on
Workforce Investment with developing recommendations that could improve the State's
workforce system. Earlier this year, the Governor accepted the recommendations, and
incorporated these, along with the strategies from the GROW Wisconsin plan, into the
Plan Modification. These and other efforts, combined with the recently launched
Wisconsin Sector Strategy Initiative, represented a substantial shift in policy that
necessitated a major modification to the Workforce Investment Act Plan.

During the planning development, the passage of the American Recovery and
Reinvestment Act occurred. The direction set forth in the State Plan Modification
provided a solid foundation on which to build those recovery efforts. Therefore, the
State of Wisconsin is submitting a stand-alone ARRA to meet the elements required by
June 30, 2009.


ARRA ADDENDUM TO WISCONSIN'S WIA STATE PLAN MODIFICATION
Section I. Context, Vision, and Strategy

Economic and Labor Market Context
Question IV in PY 2009 Stand-Alone Planning Guidance: Provide a detailed analysis of
the state’s economy, the labor pool, and the labor market context. (§112(b)(4).)
In responding to this question, the state should update its analysis to indicate how the economic downturn
has impacted the state’s economy and the labor market context. This analysis should include current and
anticipated impacts on employment by sector, current and projected demographics of the available labor
pool including income levels as appropriate, and describe any skills gaps the state faces, based on the
skills held by current and expected dislocated workers and the skills demanded by industries and
occupations expected to grow through economic recovery.

[Wisconsin WIA State Plan Modification PY 09-10, Page 9]

Economic activity in Wisconsin, as measured in non-farm jobs, declined steeply since the late
fall of 2008. A comparison of jobs reported in the Quarterly Census of Employment and Wages
(QCEW) data for the fourth quarter 2007 to preliminary data for fourth quarter 2008, shows the
combined construction, trade/ transportation & utilities, and durable goods sectors with a net job
decline greater than the Wisconsin economy as a whole. Increases in jobs in the educational
and health services group, in both the public and private sectors, offset significant additional job
loss in the professional services and leisure and hospitality sectors. Table 1 summarizes the
changes in jobs.

Table 1 Changes in Jobs from Fourth Quarter 2007 to Fourth Quarter 2008
By Major Economic Sectors
4th Qtr 2007 4th Qtr 2008 Change % Change 4th Qtr 2007 4th Qtr 2008 Change % Change
Jobs Jobs Total wage Total wage
10- Natural Resources and Mining 21,872 22,633 761 3.5% 191,991,602 218,904,234 26,912,632 14.0%
20 - Construction 121,432 108,320 (13,112) -10.8% 1,683,630,163 1,589,986,069 ( 93,644,094) -5.6%
30 - Manufacturing498,016 478,083 (19,933) -4.0% 6,157,826,795 6,096,785,424 ( 61,041,371) -1.0%
32-33 - Durable Goods Manufacturing 429,524 409,390 (20,134) -4.7% 5,482,273,019 5,393,560,383 ( 88,712,636) -1.6%
31 - Non-Duoods Manufacturing 68,492 67,387 (1,105) -1.6% 675,553,776 704,959,147 29,405,371 4.4%
40 - Trade, Transportation and Utilities 559,760 542,676 (17,084) -3.1% 4,609,980,034 4,665,711,734 55,731,700 1.2%
42 - Wholesale Trade122,930 120,868 (2,062) -1.7% 1,678,525,570 1,725,233,449 46,707,879 2.8%
44-45 - Retail Trade 328,509 317,588 (10,921) -3.3% 1,805,651,443 1,795,514,826 ( 10,136,617) -0.6%
22, 48-49 - Transportation and Utilities108,321 104,434 (3,887) -3.6% 1,125,803,021 1,116,814,503 (8,988,518) -0.8%
50 - Information 50,759 49,603 (1,156) -2.3% 639,212,359 664,346,755 25,134,396 3.9%
55 - Financial Activities 213,609 211,184 (2,425) -1.1% 2,075,869,177 2,043,395,342 ( 32,473,835) -1.6%
60 - Professional and Business Services284,102 272,470 (11,632) -4.1% 3,428,175,575 3,440,638,205 12,462,630 0.4%
65 - Education and Health Services 373,361 382,817 9,456 2.5% 3,950,770,025 4,155,705,755 204,935,730 5.2%
70 - Leisure and Hospitality251,027 243,328 (7,699) -3.1% 881,731,529 880,837,986 (893,543) -0.1%
80 - Other Services 87,096 87,128 32 0.0% 504,251,092 513,294,985 9,043,893 1.8%
90 - Government 394,026 399,040 5,014 1.3% 3,947,076,342 4,217,619,891 270,543,549 6.9%
Total* 2,855,060 2,797,282 (57,778) -2.0% 28,070,514,693 28,487,226,380 416,711,687 1.5%
*May not add due to rounding
QCEW unpublished data
Created by Nicki Stapleton 05/05/09

Perhaps surprisingly, total wages in non-farm jobs does not present a similar picture. As Table 2
shows, total wages increased in both annual 2008 and fourth quarter statistics as compared to
2007. There are several possible explanations for the different outcomes in job and wage
measurements. Regardless of cause, the divergence raises significant concerns because it
suggests that the observed decline in jobs does not reflect a slow down in the economy in the
traditional sense. The decline in economic activity is not the result of decreased purchasing
power in the economy. This raises the possibility that increasing job loss will trigger declines in
purchasing power and thus trigger a further decline in economic activity.
1 ARRA ADDENDUM TO WISCONSIN'S WIA STATE PLAN MODIFICATION
TABLE 2 TOTAL NON-FARM WAGES 1999 THROUGH 2008

Total Non-Farm Wages
1999 - 2008

YEAR WAGES IN $ PERCENT WAGES IN $ PERCENT
FOURTH
QUARTER CHANGE AN