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  2. Employment & Training
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  4. WIOA Title I-A & I-B
  5. Policy & Procedure Manual
  6. 11.12 Setting Negotiated and Adjusted Levels of Performance

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11.12 Setting Negotiated and Adjusted Levels of Performance

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Chapter 11.12.1 Resources

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11.12.1 Setting Negotiated and Adjusted Levels of Performance

Effective date: August 7, 2017

State Negotiated Levels of Performance

The Governor (state), Secretary of Labor in conjunction with the Secretary of Education, will reach mutually agreed upon levels of performance for each of the indicators in each of the core programs.1 The Departments and state shall take the following factors into consideration when setting adjusted levels of performance:

  1. How levels involved compare with the State adjusted levels of performance established for other states.
  2. The Statistical Adjustment Model
  3. The extent to which the levels involved promote continuous improvement in performance accountability on the performance accountability measures by such State and ensure optimal return on the investment of federal funds.
  4. The extent to which the levels involved will assist the state in meeting the national goals. The Secretary of Labor in conjunction with the Secretary of Education shall establish performance goals for the core programs in accordance with the Government Performance and Results Act (GPRA) of 1993 and GPRA Modernization Act of 2010. These are long term national goals for the primary indicators of performance to be achieved by each program.
  5. The state must solicit public comment for the "Expected Levels of Performance" and incorporate them into the state plan prior to submission to the federal Department of Labor.

Local Levels of Performance

The Governor (state), Chief Elected Official (CEO) and local board will reach mutually agreed upon negotiated levels of performance for each of the indicators for each of the Title I core programs.2 The factors to consider are:

  • Statistical Adjustment Model
  • Circumstances not accounted for in the model.
  • The extent to which the levels promote continuous improvement.

Local Provider Performance3

Local WDBs may apply performance measures to service provides that differ from the performance indicators that apply to the local areas. These performance measures must be established after considering:

  • The established local negotiated levels;
  • The services provided by each provider;
  • The populations the service providers are intended to serve.

Statistical Adjustment Model

Before the program year, the statistical adjustment model must be used to assist the State and Secretary of Labor in reaching agreements on the levels of performance. The statistical adjustment model is used to assist the state, local workforce board and chief elected official reach agreements on the local levels of performance.

Upon the completion of the program year, the statistical adjustment model will be applied to account for actual economic conditions and participants served in the completed program year. The negotiated level of performance after adjustment through the application of the adjustment model is named the "Adjusted Level of Performance". The Adjusted Level of Performance is compared to the actual performance for the program year to determine the individual indicator score.

The statistical adjustment model generates levels taking differences among states (and local areas) in actual economic conditions (including differences in unemployment rates and job losses or gains in particular industries) and the characteristics of participants when the participants entered the program involved, including indicators of poor work history, lack of work experience, lack of educational or occupational skills attainment, dislocation from high-wage and high-benefit employment, low levels of literacy or English proficiency, disability status, homelessness, ex-offender status, and welfare dependency.

Re-negotiated Performance Levels

States are required to set negotiated levels of performance for Adult, Dislocated Worker, and Youth programs with the Department of Labor, under WIOA prior to the beginning of the program year. Renegotiation guidance may be provided by DOL/DOE. Local area renegotiation guidance will be disseminated consistent with the annual performance negotiation process from the state.

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