A Methodology for Setting State and Local Regression-Adjusted Performance Targets for Workforce Investment Act Programs

Beginning with PY2009, the U.S. Department of Labor’s Employment and Training Administration (USDOL/ETA) adopted a regression-adjusted approach for setting national targets for several federal workforce development programs, including WIA Adult, Dislocated Worker, and Youth programs. Prior to that time, national targets were based on past performance and the desire to encourage continuous improvement in the workforce programs. The continuous improvement approach typically increased target levels from year to year without a systematic way of accounting for changes in economic conditions or the ability to meet previous targets. The onset of the 2007–2009 recession drew into question this practice, and the Department of Labor and the Office of Management and Budget (OMB) sought to develop a target-setting methodology that would take into account the effect of changes in labor market conditions on program outcomes. The USDOL/ETA also decided to extend the regressionadjusted approach for setting performance targets so that it also could be used for determining state and LWIA targets. Before the change, state targets were set through negotiations between the state and the USDOL, and LWIA targets were set through negotiations between the state and the LWIAs. This document provides an overview of the methodology for the development of state and local PY2011 performance targets for the three Workforce Investment Act (WIA) programs.