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HomeMy WebLinkAboutResolutions - 1997.03.19 - 25080MISCELLANEOUS RESOLUTION # 97044- BY: PUBLIC SERVICES COMMITTEE - SHELLEY TAUB, CHAIRPERSON RE: PUBLIC SERVICES DEPARTMENT - THE EMPLOYMENT AND TRAINING DIVISION'S BUDGET FOR PROGRAM YEAR 1996/97 TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Mr. Chairperson, Ladies and Gentlemen: WHEREAS notice of allocation of Job Training Partnership Act (JTPA) and other employment and training funds has been received from the Michigan Jobs Commission and other entities, as outlined in Attachment A; and WHEREAS the funding allocations as shown in Attachment A for the total amount of $6,986,450 serve as an estimate of Program Year 1996/97 fund availability, subject to finalization of some allocations from the Michigan Jobs Commission; and WHEREAS the JTPA and other employment and training programs identified in Attachment A are totally supported through federal and state funds and require no financial match support from the Oakland County General Fund; and WHEREAS Article II of the Balance of Oakland County Workforce Development Board's By-Laws stipulates that the Board shall "provide policy guidance for, and exercise oversight with respect to, the Balance of Oakland County Service Delivery Area's activities under the JTPA" in partnership with the Government of Oakland County; and WHEREAS the Executive Committee of the Balance of Oakland County Workforce Development Board has recommended the Employment and Training Division's Administrative Budget for Program Year 1996/97, as shown in Attachment B. NOW THEREFORE BE IT RESOLVED that the Oakland County Employment and Training Division's Budget for Program Year 1996/97 be adopted for the total amount of $6,986,450, as follows: 1. to establish an Administrative Budget of $864,205 for staff salaries, fringe benefits, and related operating costs; 2. to establish an Administrative Budget of $434,525 for the program contractors' administrative operating costs; and 3. to provide for an appropriation of $5,687,720 for employment and training program operations and activities. BE IT FURTHER RESOLVED that the Employment and Training Division will prepare and present a written status report to the Public Services Committee on a yearly basis. Mr. Chairperson, on behalf of the Public Services Committee, I move the adoption of the foregoing resolution. C SERVICES COMMITTEE BALANCE OF OAKLAND COUNTY SERVICE DELIVERY AREA ESTIMATE OF TOTAL JOB TRAINING PARTNERSHIP ACT AND OTHER FUNDS FOR PhOGRAM YEAR 1995 I. Administrative Funds Funding Source Amount JTPA Title IIA Adult Program $ 254,373 JTPA Title IIB Summer Youth Program 57,142* JTPA Title IIC Youth Program 151,466* JTPA Title III Dislocated Worker Program 163,178 JTPA Title III Voucher Pilot Program 21,300 JTPA Title III Profiling Project 12,430 JTPA Incentive Award 101,156* JTPA 8% Education Program 23,571* The No Wrong Door Planning Grant 77,951 Work First Program 350,451 Community Corrections Employment and Training Program 11,444 Total Administrative Funds $1,224,462 II. Program Funds Funding Source Amount JTPA Title IIA Adult Program $ 993,830 JTPA Title IIB Summer Youth Program 619,563* JTPA Title IIC Youth Program 587,854* JTPA Title III Dislocated Worker Program 781,238 JTPA Title III Voucher Pilot Program 120,700 JTPA Title III Profiling Project 123,442 JTPA 8% Education Program 139,123* Work First Program 1,886,826 Community Corrections Employment and Training Program 122,383 Total Program Funds $5,374,959 III. Total Funds Administrative Funds Employment and Training Division's Portion $ 832,784 Contractors' Portion 391,678 Total Administrative Funds $1,224,462 Program Funds $5,374,959 GRAND TOTAL $6,599,421 *This is an estimated figure. THE OAKLAND COUNTY EMPLOYMENT AND TRAINING DIVISION'S PROPOSED BUDGET FOR PROGRAM YEAR 1996/97 A narrative for the Oakland County Employment and Training Division's proposed Program Year 1996/97 budget follows: Introduction - The Oakland County Employment and Training Division administers Job Training Partnership Act (JTPA) and other employment and training programs for the Balance of Oakland County Service Delivery Area (SDA) under the joint policy direction of the Workforce Development Board (WDB) and the County Executive/Chief Elected Official (CEO). The JTPA establishes programs to prepare youth and adults who face serious barriers to employment for participation in the labor force. These programs provide job training and other services that will result in increased employment and earnings, increased educational and occupational skills, and decreased welfare dependency, thereby improving the quality of the workforce and enhancing the productivity and competitiveness of the nation. The Michigan Employment Security Agency's "Annual Planning Information Report for 1996" states that 45,538 JTPA eligible individuals reside in the Balance of Oakland County SDA. The SDA's 1996/97 JTPA funding level of nearly $7 million will serve approximately 7% (or 3,240) of these eligible residents. During Program Year 1995/96, programs funded under JTPA Titles IIA and IIC, which serve economically disadvantaged adults and youths, were evaluated according to nine performance standards. These standards measured such outcomes as the adult long-term employment rate, the youth entered employment rate, and the adult long-term weekly wage rate. The JTPA Title III Program, which serves dislocated workers, was measured by the number of participants who enter employment. In 1995/96, the SDA achieved and exceeded all ten of these performance standards. (A Fact Sheet that provides additional information on the JTPA and the Balance of Oakland County SDA follows this narrative.) Funding - Attachment A to the Resolution provides an estimate and breakdown of the Balance of Oakland County SDA's total JTPA and other funding that is available for Program Year 1996/97. Significant points about the Attachment follow: A. Section I. of Attachment A identifies and delineates administrative funds, which are appropriated from a number of sources, including the Work First (Welfare-to-Work) Program and the following JTPA programs: the Title IIA Disadvantaged Adult Program, the Title IIC Disadvantaged Youth Program, the Title III Dislocated Worker Program, and the Title IIB Summer Youth Program. B. Section IL of Attachment A identifies and delineates the program funds available for Program Year 1996/97. These dollars will fund the various training programs (e.g., on-the- job training, occupational classroom training, work experience, and job search assistance) into which participants from the Balance of Oakland County SDA will be enrolled. C. Section III. of Attachment A states that the SDA's total funding for Program Year 1996/97 is $6,986,450, which represents a $387,029 (or 6%) increase from the Program Year 1995/96 funding level of $6,599,421. The additional funding reflects a modest increase to the 1997 JTPA Summer Youth Program and a significant increase in the Work First Program. Other new sources of funding include 1.) a "No Wrong Door" Grant, with which the SDA will implement a System that allows employers and job seekers to access all workforce and economic development services through a single point of entry; 2.) the Targeted Assistance Program, which provides employment services to refugees; and 3.) School-to-Work, which helps all youth transition from school to employment. Budget - Attachment B to the Resolution delineates the Oakland County Employment and Training Division's proposed Program Year 1996./97.administrative budget. Significant points about the budget follow: A. The Division's proposed budget is funded entirely with administrative dollars; no program (or training) dollars, in other words, supplement the budget. This is in marked contrast to the Division's budgets during the 1980s, when thousands of training funds were allocated to support the Division's activities. B. The Division's proposed Program Year 1996/97 budget is funded at $864,205. This amount represents a $31,421 (or 4%) increase from the $832,784 level at which the Division's 1995/96 budget was funded. A significant portion of this increase will support the No Wrong Door System's implementation activities. C. The Division's proposed Program Year 1996/97 budget includes a separate $434,525 administrative allocation for the SDA's service provider contractors, who require administrative funds to operate employment and training programs. Although it is charged to the administrative budget, this allocation will not fund any Employment and Training Division staff or operating expense. D. Of the total Program Year 1996/97 dollars available for administrative staff and operations, approximately $100,000 has been converted to fund service provider activities (e.g., on- the-job training, work experience, No Wrong Door implementation, etc.). The Division's proposed budget does not, in other words, utilize the entire amount of available administrative dollars. E. Attachment B divides the budget into four sections: "Salaries and Fringe Benefits" (Lines 1-4), "Contractual Services" (Lines 6-21), "Commodities" (Lines 23-25), and "Internal Services" (Lines 27-38). The Attachment also provides an explanation for each of the line items in each of these sections and indicates whether the Program Year 1996/97 amount proposed for each line item represents an increase or decrease from the amount allocated in Program Year 1995/96. A summary of the line items that have been increased or decreased follows: Line Item 1 (Salaries) - This line item has been increased by $44,724, because, effective January 1, 1996, a staff person who had been assigned from the Oakland County Fiscal Services Division (and 50% of whose salary had been paid by the Fiscal Services Division), became a full-time employee of the Employment and Training Division. In addition, the increase to this line item reflects a 3.5% cost of living increase and a few merit and service increments. Line Item 3 (Fringe Benefits) - This line item has been decreased by $4,032 to reflect a reduction in the County's fringe benefit rates. Line Item 7 (Professional Services) - This line item, which includes the costs the SDA's certified public accounting firm incurs as it monitors contractors for fiscal and programmatic compliance, has been increased by $10,069, because additional technical assistance for the No Wrong Door System is anticipated. Line Item 9 (Accounting Services) - This line item has been decreased by $25,228, because, since January 1, 1996, the Fiscal Services Division has assigned only one accountant to the Employment and Training Division. (Previously, two accountants were assigned.) In addition, many functions a third Fiscal Services staff member previously performed for the Employment and Training Division are now completed by the accountant. Line Item 10 (Subcontractors) - As noted above, most of the SDA's service provider contractors require administrative funds to operate employment and training programs. Accordingly, Line Item 10 has been increased by $42,847, which reflects increases to the SDA's programs and the costs of technological changes the No Wrong Door System will require. Line Item 15 (Indirect Cost) - Indirect costs are associated with County Departments or Divisions (e.g., Personnel, Purchasing, Fiscal Services, Corporation Counsel, and the Treasurer) that provide the Employment and Training Division services whose costs cannot be directly charged. Because indirect costs are determined by applying an indirect cost rate percentage to the Division's salaries (and because the Division's salary total has increased), the Indirect Cost line item has also been increased. In addition, the Oakland County Fiscal Services Division recalculated the indirect cost rates of all County Divisions for 1997. The new rates were based on a number of factors, including: the number of positions in a given Division vs. the total number of County positions and 2.) the amount of a given Division's federal or state grants vs. the total grant dollars the County receives. As a result of these factors, the Employment and Training Division's indirect cost rate was increased from 7.7% to 8%. Line Item 27 (Office Space Rent) - This line item has been reduced by $1,284 to reflect a rental decrease that occurred in 1996. Line Item 32 (Equipment Rental) - This line item has been decreased by $668, because most of the Division's equipment has fully depreciated. Line Item 36 (Insurance Fund) - The County has a Self-Insurance Fund that is maintained by charging each operating Division a percentage rate, based on the risks associated with that Division's functions. This line item has been increased by $926 for two reasons: 1.1 the County's "Incurred, but not Reported (IBNR)" claim rate has increased, and 2.) the County may purchase Umbrella Insurance to supplement the Self-Insurance Fund. Line Item 37 (Communications) - This line item has been increased by $2,200 to reflect the costs of additional telephone/modem lines anticipated for the No Wrong Door System. FISCAL NOTE (M.R.#97044) BY: FINANCE AND PERSONNEL COMMITTEE, SUE ANN DOUGLAS, CHAIRPERSON IN RE: PUBLIC SERVICES DEPARTMENT - THE EMPLOYMENT AND TRAINING DIVISION'S BUDGET FOR PROGRAM YEAR 1996/1997 TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: Pursuant to Rule XII-F of this Board, the Finance and Personnel Committee has reviewed the above referenced resolution and finds: 1. Oakland County has received notification of $6,986,450 in Job Training Partnership Act (JTPA) and other employment and training funds, that are available from the Michigan Jobs Commission and other entities for Program Year 1996/97. 2. No additional personnel are required. 3. Grant funds will cover 100% of program cost, no additional County appropriation is required. 4. The FY 1997 Budget should be amended, as specified on the attached schedule, to coincide with the latest award. FINANCE AND PERSONNEL COMMITTEE ( FUND TOTAL $6.986.45Q $387.029 OAKLAND COUNTY, MICHIGAN EMPLOYMENT AND TRAINING DIVISION PROGRAM YEAR 1996/1997 AMENDED BUDGET REVENUES GRANT REVENUE Adopted Amended Budget Budget Budget • FY 1997 FY 1997 Amendment $6,599,421 $6,986,456 samon EXPENDITURES SALARIES $378,807 $423,531 $44,724 OVERTIME 250 250 0 FRINGE BENEFITS 166.222 162.190 (4.032) TOTAL PERSONNEL $545,279 $585,971 $40,692 LEGAL EXPENSE $1,500 $1,500 $0 PROFESSIONAL SERVICES 74,931 85,000 10,069 PUBLIC SERVICE ADMIN. EXPENSES 10,850 10,850 0 ACCOUNTING SERVICES 35,028 9,800 (25,228) ADVERTISING 3,700 3,700 0 COMMUNICATIONS 500 500 0 EQUIPMENT REPAIRS & MAINT. 250 250 0 EXPENDABLE EQUIP. EXPENSE 275 275 0 INDIRECT COSTS 29,168 33,882 4,714 JTPA SUB-CONTRACTORS 391,678 434,525 42,847 MEMBERSHIP DUES/PUBLICATIONS 7,300 7,300 0 MISCELLANEOUS 3,200 3,200 0 PERSONAL MILEAGE 4,200 4,200 0 TRAINING 3,955 3,955 0 TRAVEL & CONFERENCE 4,600 4,600 0 OFFICE SUPPLIES 800 800 0 POSTAGE 3,880 3,880 0 PROGRAM OPERATIONS 5,374,959 5,687,720 312,761 BLDG. SPACE COST ALLOCATION 40,536 39,252 (1,284). MAINTENANCE DEPT. CHARGES 300 300 0 CENT. STORES-MISCELLANEOUS 150 150 0 COMPUTER SERV. -OPERATIONS 34,902 34,902 0 LEASED VEHICLES 150 150 0 EQUIPMENT RENTAL 1,770 1,102 (668) CONVENIENCE COPIER 5,760 5,760 0 STATIONERY STOCK 2,604 2,604 0 PRINT SHOP 2,496 2,496 0 INSURANCE FUND 4,900 5,826 926 TELEPHONE COMMUNICATIONS 9.800 12.000 2.200 TOTAL OPERATING $6,054,142 $6,400,479 $346,337 Prepared by: Fiscal Services 03/06/97 Resolution #97044 March 20, 1997 Moved by Taub supported by Jacobs the resolution be adopted. AYES: Johnson, Kaczmar, Kingzett, Law, McCulloch, McPherson, Millard, Obrecht, Palmer, Pernick, Powers, Schmid, Taub, Wolf, Amos, Coleman, Devine, Dingeldey, Douglas, Garfield, Huntoon, Jacobs, Jensen. (23) NAYS: None. (0) A sufficient majority having voted therefor, the resolution was adopted. STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Lynn D. Allen, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on March 20, 1997 with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac, Michigan this 20th day of March 1997. Lypn D. Allen, County Clerk