Early Implementation of the Welfare-to-Work Grants Program: Report to Congress. Private Industry Councils Are, as Planned, the Primary Vehicle for WtW Services


The BBA foresaw that PICs established under the JTPA, or WDBs fulfilling PIC functions, would bear most of the responsibility for delivering WtW services.  Given the mandated funding formulas, 64 percent of all funds must go to PICs or designated alternative entities.1  Although six states declined formula funding, we would expect that almost every one of the 577 JTPA SDAs (or a designated alternative agency) in the remaining 48 jurisdictions will be a formula grantee.  At the time the survey was initiated, 51 competitive grants had been awarded.  PICs also participated in these competitive grants, receiving 18 of the first 51 awarded.

The results in the survey data mirror the pattern foreseeable from the funding process, with PICs accounting for most grantee respondents (Table B.1).  Of the 415 responses included in this analysis, 358 were provided by PICs, 18 of which had received Round 1 competitive grants.  Almost all formula grantees are PICs; among the 388 respondents that reported receiving formula funds, 33 said they were another type of organization.2  Nonprofit service organizations, including community­based organizations, account for 19 of the 49 competitive grantees that responded to the survey.

The range of organizations that actually serve WtW program participants, however, will be considerably more diverse than the data on grantee types suggest, because grantees will contract locally with other provider organizations.  The BBA and the implementing regulations (20 CFR 645.220) require that postemployment services and services relating to job readiness and job placement be provided through contracts or vouchers.  Survey results reflect grantees' plans in accordance with these requirements (and in keeping with PIC practices under JTPA).  The 415 survey respondents reported that, in their first year of program operations, they were going to use, on average, 47 percent and 42 percent of their formula and competitive funding, respectively, for contracted services, drawing on a total of 2,376 different providers.



  Number of Organizations by Grants Received
Organization Type Number of Organizations Formula Grants Only Competitive Grants Only Both Formula and Competitive Grantsa
PIC/WDB or Equivalentb 358 337c 3 18
Other Types:
Public human services agencies 8 6 1 1
Other public agencies 4 2 2 0
Nonprofit service organizations 24 5 18 1
Other 21 16 3 2
Total 415 366 27 22
Source: National Evaluation of the Welfare­to­Work Grants Program, First Grantee Survey (November 1998  February 1999).

a Includes 17 organizations that reported having received WtW competitive grants and state formula funds and 5 organizations that also received state 15 percent discretionary funds.

b Five PICs reported that they expected to receive formula WtW funds but had not yet been formally notified of their award. Three of these organizations had no other WtW funds, two had 15 percent discretionary funds.

c Includes 41 organizations that reported having received both formula WtW funds and state 15 percent discretionary funds.