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11.12 Setting Negotiated and Adjusted Levels of Performance


11.12.1 Setting Negotiated and Adjusted Levels of Performance

Effective date: June 28, 2024

State Negotiated Levels of Performance

The Governor (state), Secretary of the Department of Labor (DOL) in conjunction with the Secretary of the Department of Education (DOE), 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 negotiated levels of performance:

  1. How levels involved compare with the State negotiated levels of performance established for other states.
  2. DOL's 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 DOL Secretary in conjunction with the DOE Secretary shall establish national 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), CEO, and local WDB will reach mutually agreed upon negotiated levels of performance for each of the indicators for each of the Title I core programs bienially.2

The local negotiations process begins with providing the local areas with the results and pre-estimates of the Wisconsin Local Statistical Adjustment Model. Local areas consider the following factors to determine proposed levels of performance:

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

Local areas submit proposed levels for two program years to the state. The state may accept the local area's original proposed levels or set negotiations meetings to come to a final agreement on the Negotiated Levels of Performance.

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 DOL Statistical Adjustment Model must be used to assist the State and Secretary of Labor in reaching agreements on the levels of performance. The Wisconsin Local Statistical Adjustment Model is used to assist the state, local WDB and CEO reach agreements on the local levels of performance.

Upon the completion of the program year, the Statistical Adjustment Models 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 employment influencers.

Wisconsin's Statistical Adjustment Model uses linear modeling to produce pre-estimates/levels using the following variables:

  • Independent Variables:
    • Female (Adult, DW, Youth)
      • Note: to be compared to males or not specified/identified
    • Age 25 to 44 (Adult, DW); Age 20 to 21 (Youth)
      • Note: To be compared to younger (Adult, DW, Youth) and older workers (Adult, DW, Youth).
      • Note: Employment rates tend to be higher for this age group.
      • Note: Focused on one age group because including more than one age group accounted for almost all participants, so needed to include only one age group to allow for a comparison.
    • Race/Ethnicity (Adult, DW, Youth)
      • Hispanic
      • Black
      • American Indian
      • Asian
      • Compared to white and other race/ethnicity groups and not specified.
      • Other race/ethnicity groups were too small/inconsistent to include in the model.
    • Education at program entry (Adult and DW): High school diploma or equivalency.
      • Only for Adult and DW (different education variable for Youth).
      • Compared to less than high school or more than high school.
    • Education at program entry (Youth): Out of School Youth
    • Disability (Adult, DW, Youth)
    • Employed at program entry (Adult, DW, Youth)
    • Low Income at entry (Adult, DW, Youth)
    • Foster Care Youth (Youth)
    • Unemployment Rate for local area, calendar quarter (Adult, DW, Youth)
    • Industries (Adult, DW, Youth)
      • Proportion of local workforce employed in the industry for the calendar quarter
      • Natural Resources
      • Construction
      • Manufacturing
      • Information
      • Financial
      • Business
      • Education/Healthcare
      • Leisure
      • Other
      • Public Administration
      • To be compared to Transportation (not included in the model to allow for comparison)
  • Dependent Variables:
    • For participants who exited in a specific calendar quarter for a specific program by WDA.
      • Employment rate two quarters after exit
      • Median wages two quarters after exit
      • Employment rate four quarters after exit
      • Credentials in service period or within year after exit
      • Measurable Skills Gains (MSGs) during service period

Re-negotiated Performance Levels

States are required to set negotiated levels of performance for Adult, Dislocated Worker, and Youth programs with the DOL, 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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