Recommendations to Improve Virginia's Utilization of Registered Apprenticeships (Senate Document No. 10)

Summary

Report of the Virginia Board of Workforce Development to the Governor and the General Assembly of Virginia, with a cover letter dated December 14, 2022 from the Board's Chair to Secretary George "Bryan" Slater. The report states that at its quarterly business meeting on November 16th, 2022, the Board recommended that the Division of Registered Apprenticeship (DRA) be consolidated in a new workforce agency within the Department of Labor secretariat. It lists four courses of action considered: reassigning the program to the Virginia Employment Commission, reassigning it to the Virginia Community College System, establishing a new workforce agency, or maintaining the status quo. Further recommendations cover business incentives, awareness and promotion, and data collection.

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“Recommendations to Improve Virginia's Utilization of Registered Apprenticeships (Senate Document No. 10).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-sd10-ffa1d9a291/, SHA-256 4c30ee9664adad1f077d88879026cbb2366202a8264ce36aae792c79648aa612.

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REPORT OF THE VIRGINIA BOARD OF
WORKFORCE DEVELOPMENT

Recommendations to Improve
Virginia’s Utilization of
Registered Apprenticeships in
the New Virginia Economy
(Chapter 700, 2022)

TO THE GOVERNOR AND
THE GENERAL ASSEMBLY OF VIRGINIA

SENATE DOCUMENT NO. 10

COMMONWEALTH OF VIRGINIA
RICHMOND
2022
VIRGINIA BOARD OF
WORKFORCE DEVELOPMENT

December 14, 2022

The Honorable Secretary George “Bryan” Slater
Virginia, State Capitol
900 East Main Street, Richmond, Virginia, 23219.

RE: Recommendations for creating a primary office for apprenticeship programs and actions leading to
increased access and participation in apprenticeship programs as directed by Acts of Assembly Chapter
699

In accordance with Acts of Assembly Chapter 699, the enclosed attachment contains the Board of
Workforce Development (the Board) recommendation to the Governor and the General Assembly for
creating a primary office for apprenticeship programs.

The Board studied the current state of the apprenticeship programs in Virginia, and on November
16th, 2022, at its quarterly business meeting, the Board acted to recommend that the Division of
Registered Apprenticeship (DRA) be consolidated in a new workforce agency established within the
Department of Labor secretariat. Currently the Registered Apprenticeship program in Virginia is
administered by the Department of Labor and Industry.

The board examined and considered four courses of actions:
1. Reassign to the Virginia Employment Commission
2. Reassign to the Virginia Community College System
3. Establish a new workforce Agency
4. Maintain Status Quo

In addition, the board made 16 additional policy considerations for state leaders to consider in an effort to
improve the functional effectiveness of DRA.

Sincerely,

Lane Hopkins
Chair, Virginia Board of Workforce Development

1
Virginia Board of Workforce Development Recommendations to Improve Virginia’s Utilization of
Registered Apprenticeships
in the New Virginia Economy (10 November 2022)

Bottom Lines Up Front:
 To meet the labor market demands and challenges of the future, Virginia’s Registered Apprenticeship
performance must evolve.
 The Division of Registered Apprenticeship (DRA) should be consolidated in a new workforce agency
established within the Department of Labor secretariat to more effectively grow registered
apprenticeship (RA) programs and develop a dynamic workforce. However, hierarchal reorganization
alone will not enhance the Division’s performance, and additional policies and strategies are
necessary.

Issue: To meet the growing demand for middle-skilled and highly-skilled workers in the 21st Century
Economy, the Commonwealth must retool and refit its Registered Apprenticeship Program with the
resources and structure required to make the Commonwealth a model among states.
When assessed, the Agency’s historic performance yields inconsistent results as measured against its self-
determined strategic performance objectives. The status quo is insufficient to successfully ensure the
marketed success of Registered Apprenticeship Programs (RAP) in Virginia. Over the last decade, the rate
of growth barely trended upward, while the growth of active apprentices trended downward. Virginia’s
growth in the number of apprentices trended similarly with the much smaller state of Maryland. In its ten-
year assess period, though, Virginia’s numbers aligned with larger states such as a North Carolina and
Washington.

Compilation of Sources FYs 2011-2021 Data & Statistics. Employment and Training Administration,
U.S. DEPARTMENT OF LABOR. https://www.dol.gov/agencies/eta/apprenticeship/about

Limited available data constrains the ability to make an accurate assessment of Virginia’s DRA. A review
of the Division’s performance assessments in its Strategic Agency Plan show some quantitative progress
in meeting its performance goals. However, these goals are immeasurable and generally do not provide
either quantitative or qualitative depictions of the program’s capabilities to serve as a productive
workforce partner. Additionally, the published performance objectives for DRA do not match the
complexity of the challenge of attracting more businesses.
Additional observations from reviews of workforce development programs in the Commonwealth also
note the Division’s limited performance. Per a 2014 Joint Legislative Audit & Review Commission
(JLARC) Report:
“Virginia’s registered apprenticeship program appears more limited than programs in other states, which market
their services to job seekers and employers and help promote apprenticeship opportunities…Virginia does not use
Federal WIOA funds to offset the cost of the program to employers, this practice is currently not in place in
Virginia.”
The Virginia Department of Labor & Industry’s (DOLI) DRA is a historically lean team that has been
under-resourced and ill-equipped to serve as an agile workforce development partner. Since the General
Assembly and Governor approved an increased budget for DRA, the program has been able to achieve
some success in growing the number of Registered Apprenticeship (RA) business sponsors, and one may
infer that increased funding may have an effect on the rate (%) of growth of programs. In 2017, DRA-
DOLI’s GF Operating budget grew by 172% and during the same timeframe Active RA programs grew
by 22%.

Compilation of Sources FYs 2011-2021 Data & Statistics. Employment and Training Administration,
U.S. DEPARTMENT OF LABOR. https://www.dol.gov/agencies/eta/apprenticeship/about

However, even increased funding does not appear to have a significant correlation to the rate (%) of growth of
apprentices.

Compilation of Sources FYs 2011-2021 Data & Statistics. Employment and Training Administration,
U.S. DEPARTMENT OF LABOR. https://www.dol.gov/agencies/eta/apprenticeship/about. & Va. Department of Planning
& Budget. Virginia's Budget 2010-2024. https://dpb.virginia.gov/budget/budget.cfm?biennium=2022-2024

Although the Labor Secretariat is the appropriate cabinet-level office in which to champion and
administer DRA, DOLI’s core focus and functions are regulatory in nature, rather than fostering and
enabling the number of apprentices necessary to achieve the growing demand of maritime, health care and
IT industries in the Commonwealth.

Discussion Points:
• Overall, RA programs in Virginia have grown in number, but the number of apprentices in those
programs have stagnated and trended downward.
• There is limited performance data available for DOLI-DRA program effectiveness.
• A growth in the number of programs did not yield or correlate to a sustained growth in the number
of apprentices.
• U.S. Department of Labor performance metrics (e.g. completion rates) do not prove quality or
satisfaction.
• DOLI lacks specific data for analysis and to perform informed decisions about targeting
businesses and high-demand trades/industries.
Course of Action (COA) Analysis & Comparison
Situation: DOLI may no longer be the appropriate agency to innovate and lead DRA into the workforce
challenges of the future.
Problem Statement: How do Virginia’s senior leaders innovatively and proactively enable sustainable
growth of quality registered apprenticeship programs across the Commonwealth to address the regional
workforce needs of industries with both existing and emerging opportunities?
COA-1: Reassign to Virginia Employment Commission (VEC)
Reassign the Division of Registered Apprenticeship (DRA) to the VEC.

Advantages Disadvantages
One of VEC’s core functions is workforce Distraction of leading other critical workforce
development, serving as an integral partner with the functions.
Virginia Board of Workforce Development and
U.S. DOL
Primary partner in the Virginia Career Works Challenges associated with coordination between
(American Job Centers) locations that are spread other policy-making boards (e.g, Virginia
across the Commonwealth (~33 locations). Apprenticeship Council).

Maintains employer relationships and houses During periods of high unemployment, VEC’s
Virginia’s Labor Market Data functions. Coupled primary focus is on UI claims administration.
with the DRA business service teams, VEC would
be able to target new employers for potential RAPs.
Administers many other sustaining federal grant
programs, including WIOA, TAA, Wagner-Peyser,
and Jobs for Veterans State Grant.

COA-2: Establish a New Workforce Agency: (Access and Equity Recommended COA)
Reassign the DRA with all contributing workforce development–related programs to be consolidated
into one agency (New Workforce Agency=NWA).

Advantages Disadvantages
All workforce agencies under one agency head and Potential to be one of the largest and most expansive
one Secretariat. Agency head is empowered as Chief agencies (aside from VDOT and DMV) in state
Workforce Advisor to Governor. government.
Ability to synchronize and align the Potential perception of the creation of more government
Commonwealth’s strategies for workforce bureaucracy.
development without the typical inter/intra
secretariat infighting.
Physical plant would be significant and able to reach Change management associated with a large
populations consistently. reorganization.
Marketing and outreach could be coordinated with
greater efficacy.
Communications and operations with Federal
agencies would be unified and consistent.

Additional Policy Recommendations: Reorganizing/restructuring state agency divisions and
programmatic hierarchies alone will not improve RAP and apprentice performance. Listed below are
additional policy considerations state leaders should consider to improve the functional effectiveness of
DRA, regardless of COA selection.

Statutory Changes:
1. Authorize DRA to recruit and connect potential apprentices with existing RAPs and approved
entities.

2. Advocate for the expansion of an innovative Worker Training Tax Credit to provide a meaningful
and impactful economic incentive for new businesses.

Operational Changes:
3. Expand the business service teams of the DRA to better integrate and develop a targeting process for
deliberate outreach to employers in each Local Workforce Development Area (LWDA) region.

4. Develop an outreach plan that includes an inventory of the Division’s historic outreach to
underserved communities and unserved populations of business owners.

5. Reduce barriers to obtaining acceptance into RAPs for underserved and unserved communities.

6. Plan and execute meaningful, measureable, and attainable strategic objectives and goals.

Funding:
7. Adequately fund and staff DRA to accomplish its mission.

8. The Division should pursue all applicable additional federal grant opportunities.

9. Use state /federal funds to offset or subsidize RAP costs.

Performance Measures:
10. Strategically reassess existing statutory duties & responsibilities.

11. Develop adequate performance measures. e.g.:

a. Quality assessments
b. Sponsor and apprentice satisfaction
c. Wage targets for all occupations by region
d. Specified targeted growth in new industries

12. Make data-driven decisions by collecting more data about what the Division does. Invest and
collaborate in collecting data about sponsors and apprenticeship functions.

Business Incentives:
13. Consider adopting a meaningful apprentice-oriented tax credit for employers to establish and invest
in RAPs.

Awareness/Promotion:
14. Invest in a robust awareness/recruitment campaign.

15. Convene regional accelerator events with other workforce partners to enlist businesses.

16. Develop playbook for local workforce boards.

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