Reliable Measurements Needed to Assess Workforce Investment Act, GAO Says

While local workforce boards are using substantial funds for worker training under the Workforce Investment Act (WIA), little is known on a national level about the outcomes of those trained, says a new report from the Government Accountability Office (GAO).

In 1998, Congress passed the WIA to create a system connecting employment, education and training services to better match job seekers to labor market needs, according to the report. Since its creation, however, questions have been raised regarding how those funds are being used and how much is being spent on training. Also, according to the report, concern remains regarding the lack of accurate information on the extent to which WIA participants are enrolled in activities. The GAO report seeks to answer the following:

• The extent to which WIA funds are used for training;
• How local workforce boards manage the use of individual training accounts (ITA) and what challenges they encountered; and,
• What is known at the national level about outcomes of those being trained.

To answer these questions, GAO conducted a web-based survey of 590 local workforce investment boards examining program year 2003 funds. GAO also visited two local workforce investment boards within four states of varying population to obtain additional information on training policies, challenges and reliability of data systems.

Results indicate that local boards across the country used a combined total of approximately $2.4 billion in program year 2003 funds. Local boards also reported that an estimated 40 percent of WIA funding was used for training approximately 416,000 participants across the nation. Most local boards have developed policies to manage the use of ITAs, the report states, although many have encountered challenges implementing them. Lack of good performance data on training providers was cited as the most frequent challenge, while rural areas often face a lack of nearby training providers.

To collect and report information about the extent to which WIA participants are enrolled in training activities, GAO relied on the Department of Labor's (DOL) national participant database, the Workforce Investment Act Standardization Record Data (WIASRD). However, GAO references a number of weaknesses within the database, including concerns over completeness and accuracy of the records. Because of such weaknesses, the report states, little is known on a national level about the outcomes of those trained under the WIA.

In response to concerns over WIASRD, DOL stated that it is developing a single, streamlined reporting and record keeping system to replace several databases, including WIASRD.

The report, Workforce Investment Act: Substantial Funds Are Used for Training, but Little is known Nationally about Training Outcomes, is available in full from GAO at: http://www.gao.gov/