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11.12 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:
How levels involved compare with the State adjusted levels of performance established for other states.
The Statistical Adjustment Model
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.
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.
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 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.