The City's workforce development initiatives are intended to provide training and services to people who have barriers to employment, bringing these people into the labor force for an extended period of time. The City's workforce development programs are provided by several different City departments or agencies and funded by a variety of federal, state and local funding sources.

The City lacks a common definition of what constitutes workforce development programs, including what support services, such as mental health counseling, childcare, and housing support should be included in workforce development programs. Nor do City departments have clear criteria for defining what direct, administrative and overhead costs should be included when defining program costs.

The City does not have central information on what programs are provided and their funding sources. The Department of Economic and Workforce Development surveyed City departments in FY 2006-2007 on workforce development programs and budgets. Based on information collected by the Department and follow-up interviews to determine the direct costs for providing workforce development services in-house and through contractors, this report identifies $29.1 million in costs directly attributable to workforce development program activities, as currently defined within the City's budget.

Included in this amount is nearly $10.2 million that has been appropriated to the Human Services Agency for direct program activities. In total, $14.7 million has been appropriated to the Human Services Agency's Workforce Development Division for direct and administrative costs. However, the Department incurs other costs for services that support workforce development clients, including case management, emergency housing assistance and childcare provided through the CalWORKS, Food Stamps and County Adult Assistance Program divisions. Therefore, the total Human Services Agency costs attributable to workforce development are likely much greater than the $10.2 million included in Table 1 or the $14.7 million identified in the budget. As discussed in Section 1 of this report, the first step in integrating City departments' workforce development programs into a Citywide plan, with resources allocated accordingly, requires the identification of City departments' annual funding. As a first priority, the Department of Economic and Workforce Development should conduct a detailed inventory of programs and costs that support workforce development clients and report on the results to the Board of Supervisors, as discussed in Recommendations 1.2 and 2.1.

Table 1

Estimated FY 2006-2007 Budgets for Direct Workforce Development Services Provided by City Departments

Source: Department of Economic and Workforce Development and City Departments

Federally-Funded Workforce Development Programs

Federally-funded programs make up much of the City's workforce development programs.

• The 1996 Personal Responsibility and Work Opportunity Reconciliation Act, which established the Temporary Assistance for Needy Families (TANF) program and the U.S. Department of Agriculture, which funds the Food Stamp Program, require cash aid and food stamp recipients to participate in work programs, funded by a combination of federal and local funds. In San Francisco, the Human Services Agency manages the California's workforce development programs for TANF recipients (called CalWORKS in California), the Food Stamp Employment and Training program, as well as federally-funded programs for the homeless and refugee population.

• The 1998 Workforce Investment Act provides funds to local communities to operate a one-stop delivery system, providing workforce development programs and integrating services provided by public, private and non-profit agencies. These funds are overseen by the local workforce investment board, Workforce Investment San Francisco.

The Human Services Agency's Workforce Development Programs

Local Service Delivery Under the Workforce Investment Act

The Workforce Investment Act establishes local workforce investment boards that set policy for the local workforce investment, or one-stop, system. Workforce Investment San Francisco is a 49-member board appointed by the Mayor, consisting of representatives from business, labor, education, economic development, and community-based organizations. Until FY 2006-2007, the Private Industry Council served as the fiscal agent for the Workforce Investment Act funds, implementing Workforce Investment San Francisco policies and contracting with community-based organizations to provide services.

The Board of Supervisors approved the creation of the Office of Workforce Development within the Department of Economic and Workforce Development in the FY 2006-2007 budget to support Workforce Investment San Francisco and provide policy and oversight to the City's workforce development programs. With the dissolution of the Private Industry Council on June 30, 2007, the Department of Economic and Workforce Development assumed responsibility for Workforce Investment Act funds. The Office of Workforce Development has expanded in FY 2007-2008, with a budget of $3.9 million. The FY 2007-2008 budget includes Workforce Investment Act funds to provide services and support policy and planning, as well as General Fund monies to develop two new One-Stop Centers in Chinatown and the Western Addition.

Dissolution of the Private Industry Council and Transfer of Responsibility

Prior to its dissolution, the Private Industry Council had experienced several difficulties, including staffing levels that exceeded the needs of the program and inadequate oversight of financial resources and contracts. The California Employment Development Department has audited the Private Industry Council to ensure adequate reconciliation and close-out of funds, reporting its findings to the Department of Economic and Workforce Development. In response, the Department of Economic and Workforce Development is drafting policies and procedures to address or correct prior deficiencies.

Developing Workforce Investment San Francisco and the Five Year Strategic Plan

In FY 2007-2008, the Department of Economic and Workforce Development intends to rebuild Workforce Investment San Francisco and develop a new five-year strategic plan. The previous five-year strategic plan, required by the Workforce Investment Act, was developed in 2000. The plan outlined an integrated system of services provided through one-stop centers, other access points, and community-based organizations. According to the plan, the one-stop system would include neighborhood based career centers, community-based organizations, public agencies providing job training and related services, San Francisco Community College programs, and local business organizations. The plan's goal was to strengthen the ability of community-based organizations to provide direct services. The plan called for core services, such as skills assessment, counseling, and development of individual employment plans, to be provided at each one-stop career center, as well as more intensive case management services for job seekers with multiple barriers to employment.

Although the Workforce Investment Act provided funding for local adult and youth workforce development programs, the strategic plan considered this funding inadequate to provide the full scope of services considered under the plan. The plan called for additional funding from federal, state, local and private sources. The plan anticipated that additional funding, as well as re-direction of other community resources into a more strategic focus, would create the effect of an actual workforce development system that is "visible and acknowledged in the community as something of value to a broad customer base".

However, Workforce Investment San Francisco has had little oversight of the City's locally-funded workforce development programs, which made up more than 50 percent of the City's total workforce development funding in FY 2006-2007, as shown in Table 1. In addition, Workforce Investment San Francisco has not had oversight or authority for coordination of programs funded by state or federal sources, with the exception of the Workforce Investment Act.

The City's Workforce Development Efforts

First Source Hiring Program

The Board of Supervisors adopted the First Source Hiring ordinance in 1998 in response to welfare reform to provide employment opportunities to residents lacking access to employment. The First Source Hiring Program, which is managed by the Human Services Agency, is intended to align job training programs with entry level job opportunities and ensure that graduates of job training programs have access to jobs. City contractors and lessees are required to participate in the program, and to post job openings with the First Source Hiring Program and CityBuild to recruit San Francisco residents.

CityBuild

The Board of Supervisors approved CityBuild in 2005 to facilitate the hiring of economically disadvantaged City residents on construction jobs with City contractors. CityBuild offers 12-week training sessions through San Francisco Community College to prepare jobseekers for construction employment and seeks placement for program participants with City construction contractors. The Department of Economic and Workforce Development manages the CityBuild program, with funding provided by the San Francisco County Transportation Authority and other City agencies.

Other Workforce Development Programs in City Departments

Several City departments provide workforce development programs independently of any coordinated City effort.

• The Department of Public Works has a two-year apprenticeship program, in collaboration with the Laborer's Union, to train adults in construction and gardening skills, mostly from the Bayview Hunter Point neighborhood. The program is provided by a combination of in-house staff and contractors with technical skills. FY 2006-2007 funding was $3.0 million. The Department also has contracts to provide transitional work experience for economically disadvantaged adults and a program to provide summer work experience for high school students.

• The Public Utilities Commission has programs for both youth and adults. The FY 2006-2007 budget for adult workforce development programs was approximately $3.0 million, which included a series of employment and apprenticeship programs designed to prepare individuals for employment within the Public Utilities Commission or other City agencies. The Public Utilities Commission allocated $2.8 million to utility plumber and stationary engineer apprenticeships in FY 2006-2007. $174,783 was allocated to the Public Service Trainee program, preparing Bay View Hunters Point residents for Stationary Engineers Apprenticeship. The Public Utilities Commission participates jointly with the Department of Public Works to provide summer work experience for high school students.

• The Mayor's Office of Community Development awards grants funded by the Community Development Block Grant to community-based organizations to provide employment services and job training. In FY 2006-2007, the Community Development Block Grant budget for adult employment services and job training was $1.9 million, of which $1.78 million were grant awards to community-based organizations, and $120,000 were General Fund monies to pay for a job training program provided by the Haight Ashbury Food Program.

• The San Francisco Redevelopment Agency FY 2006-2007 budget included $1.0 million in tax increment and other funds to provide services to residents of redevelopment project and survey areas. The Redevelopment Agency funds three community-based organizations to provide job training and services to residents of redevelopment areas. The community-based organization contracts were managed by the Private Industry Council in FY 2006-2007 but will be transferred to the Mayor's Office of Community Development in FY 2007-2008.

• The Airport's FY 2006-2007 budget of $315,840 for workforce development programs funds Career Connect, targeting young adults under the age of 25 and providing a structured work environment so they can learn work skills and receive exposure to a variety of career options; and internship programs. The Airport also participates in YouthWorks, discussed below. Additionally, in FY 2006-2007 the Board of Supervisors allocated $50,000 to the Airport for the Transgender Employment Initiative.

• The District Attorney has two programs for ex-offenders. Back-on-Track, through a contract with Family Services Agency, provides employment and support services for ex-offenders, ages 18 through 30, with multiple barriers to employment. Changing the Odds targets young adults under the age of 25, providing a three-month job internship with private businesses.

• The Port budgeted $150,000 in FY 2006-2007 for a work experience program targeting economically disadvantaged youth, ages 16 to 24, as part of a three-year, $600,000 contract with the San Francisco Conservation Corps for job training, concluding in FY 2007-2008.

• The Department of the Environment funded a $35,000 contract with Goodwill Industries, Inc. in FY 2006-2007, through the Department's environmental justice program, for a job program in Bayview Hunters Point.

• The Department of Public Health provides workforce development services to mental health consumers and individuals with HIV/AIDS. The Department of Public Health has contracts with several community-based organizations to provide vocational evaluation, rehabilitation, job-readiness and job training, transitional or sheltered work experience, and support and other services to mental health consumers. The Department also has a contract with the Positive Resource Center, a community-based organization, to provide counseling, training, and employment preparation services to individuals with HIV/AIDS.

Programs for Youth

In addition to the workforce development programs for adults shown in Table 1, an estimated $12.6 million was allocated to programs for youth under the age of 18 in FY 2006-2007, as discussed in Section 6 of this report. The Department of Children, Youth and Their Families has been the main department funding youth programs through grants to community and other providers. Among other programs, the Department sponsors YouthWorks, through a contract with a community-based organization and participation from City departments, providing career-oriented internships to students in City departments.

Additionally, the Mayor's Office of Community Development, through the Community Development Block Grant, and the Private Industry Council, through the Workforce Investment Act grant, both provide significant funding to youth programs.

The Department of Economic and Workforce Development has assumed responsibility for administering the Workforce Investment Act grant in FY 2007-2008, including managing contracts with community-based organizations providing services for youth. The Department's FY 2007-2008 budget has a youth policy manager position funded by the Workforce Investment Act grant, who is intended to manage the Citywide youth workforce program and policy, as well as support the Youth Council and manage the contracts with community-based organizations.

Types of Workforce Development Programs

The City's workforce development efforts include "soft skills" training, such as life skills, and job-readiness training, or "hard skills" training, such as vocational education and experiential learning opportunities. In addition, assessment, case management, job development and other activities necessary to help job seekers gain employment or successfully training are included in the City's workforce development efforts. In addition, some but not all resources and programs that provide these services have been captured in this report.

This report looks at job training programs that are tailored to at-risk populations. The report does not look at internships for college students, and or services ancillary to workforce development programs.