2.6 One-Stop Delivery System Memoranda of Understanding (MOUs) | 2.6.4 Local Negotiations

2.6.4 Local Negotiations

Effective date: August 1, 2020

Local WDBs and all WIOA-required one-stop partners must enter into good-faith negotiations to determine each provision in the MOU, including:

Completion of the MOU template regarding the structure and integration of the one-stop delivery system in the local area;
Costs necessary to support the infrastructure of the one-stop delivery system in the local area;
Costs necessary to support the delivery of shared services in the local area; and
The cost allocation methodology or methodologies by which shared costs will be split between partners to reflect proportionate use and relative benefit.

DWD-DET strongly recommends convening these negotiations in-person to facilitate effective communication between all parties. Local WDBs, CEOs, and/or partners may request assistance with the negotiation process from DWD-DET.

The method for determining the appropriate portion of funds and noncash resources to be provided by the one-stop delivery system partner for each program for a Job Center must be determined as part of the development of the MOU for the Job Center or one-stop delivery system and must be stated in the MOU. In cases where local negotiations stall or fail DWD-DET will implement the State Funding Mechanism (SFM) upon request.

2.6.4.1 Allocation Cost Pools

Local areas are empowered to select the cost sharing methodologies that best suit the needs of the participating one-stop partners. While some areas might be best served by a single cost-sharing method, others may benefit by allocating different types of costs using multiple methodologies. To simplify the cost-allocation process, DWD-DET recommends that partners bundle similar costs into cost pools and allocate the pools as a whole, as opposed to allocating each line item individually. For example, a WDB may choose to bundle all infrastructure costs into one cost pool that is allocated on a square-footage basis, while the remaining costs are pooled and allocated on a per-participant basis. This allows WDBs more flexibility in determining equitable cost allocations for costs driven by use, while correctly accounting for fixed facility costs. Acceptable cost allocation methodologies may include:

Square footage;
Full-time equivalent employee count (FTE);
Customer count; and
Customized/Manual allocations based on local negotiations.