ebook img

ERIC ED418319: School to Work Fiscal Agents: Profiles of 20 States. Arizona School to Work Briefing Paper #3. PDF

11 Pages·0.3 MB·English
by  ERIC
Save to my drive
Quick download
Download
Most books are stored in the elastic cloud where traffic is expensive. For this reason, we have a limit on daily download.

Preview ERIC ED418319: School to Work Fiscal Agents: Profiles of 20 States. Arizona School to Work Briefing Paper #3.

DOCUMENT RESUME CE 076 281 ED 418 319 Engmark, Jill; Vandegrift, Judith A. AUTHOR School to Work Fiscal Agents: Profiles of 20 States. Arizona TITLE School to Work Briefing Paper #3. Arizona State Univ., Tempe. Morrison Inst. for Public INSTITUTION Policy. Arizona State Dept. of Education, Phoenix. Div. of Adult SPONS AGENCY Education. 1997-01-00 PUB DATE NOTE 10p. Research (143) Reports PUB TYPE MF01/PC01 Plus Postage. EDRS PRICE Career Education; *Education Work Relationship; *Educational DESCRIPTORS Finance; Educational Research; *Federal Aid; *Financial Services; Postsecondary Education; Secondary Education; State Programs; *Statewide Planning; Vocational Education *Arizona; School to Work Opportunities Act 1994 IDENTIFIERS ABSTRACT A study explored the issue of fiscal agency and its relationship to planning and implementing school-to-work (STW) systems to inform stakeholders in Arizona's emerging STW system about other states' experiences. A review of the STW Internet Gateway yielded a subset of states based on factors such as their history in implementing STW and similarities to Arizona. Interviews were conducted via telephone, fax, or e-mail with 61 individuals in 20 states. Participants were asked to relate their experiences with and as fiscal agents, how fiscal agents were chosen, and strengths and weaknesses of a particular type of fiscal agency. STW partnerships used four types of fiscal agents: educational institutions; training institutions; business and labor organizations; and "other" organizations. Effective fiscal agents had the following characteristics: existing mechanisms/structures, neutrality, experience in federal grant management, skill in fostering involvement, philosophy, and accessibility/central location. Educational institutions offered the advantages of being accustomed to handing federal monies and familiar with state-level policies and procedures. A major drawback was that their use contributed to "turf" issues. The other three types had geographic and size advantages, were able to coordinate function in multiple school districts, and were able to handle workload and manage cash flow. A disadvantage was a lack of knowledge regarding how schools operate. (YLB) ******************************************************************************** Reproductions supplied by EDRS are the best that can be made * * * from the original document. * ******************************************************************************** School to Work Fiscal Agents: Profiles of 20 States Arizona School to Work Briefing Paper #3 .8. DEPARTMENT OF EDUCATION PERMISSION TO REPRODUCE AND Mc of Educational Research and Improvement DISSEMINATE THIS MATERIAL ED CADONAL RESOURCES INFORMATION HAS BEEN GRANTED BY CENTER (ERIC) This document has been reproduced as received from the person or organization originating it Minor changes have been made to improve reproduction Quality. Points of view or opinions stated in thus doci TO THE EDUCATIONAL RESOURCES ment do not necessarily represent official OERI position or policy. INFORMATION CENTER (ERIC) BEST COPY AVAILABLE 2 School To Work Fiscal Agents: Profiles of 20 States January 1997 Arizona School To Work Briefing Paper #3 by Jill Engmarh, Consultant and Judith A. Vandegrift, Research Analyst whether or not there are unique advantages or The School-to-Work (STW) Opportunities Act of disadvantages associated with different types of 1994 provides a national impetus for creating fiscal agents. Or, whether one type of fiscal agent statewide systems that combine workforce and stands a better chance of sustainability than economic development with changes in the ways another once federal STW funds are no longer that students are educated. In FY 1996 alone, available. $350 million was channeled through states or directly from the U.S. Departments of Labor and In an effort to answer these questions and others, Education to 818 STW local partnerships to begin the GDSTW commissioned Morrison Institute for or continue the process of building statewide STW Public Policy--the agency coordinating the state's systems. Given a perception that "whomever STW research and evaluation activitiesto controls the purse strings has power," designated investigate fiscal management practices in other fiscal agents have the potential to greatly impact states. This briefing paper summarizes the results STW system implementation. of this inquiry. This paper explores the issue of fiscal agency and Study methodology its relationship to planning and implementing STW systems. It is intended primarily for use by During FY 1996, 27 states were engaged in STW Arizona's state and local STW partners, and activities. Ten additional states began especially those who are rethinking their implementation in FY 1997. An initial review of designation of a fiscal agent. The goal is to inform information obtained from the STW Internet stakeholders in Arizona's emerging STW system Gateway yielded a subset of states that were about other states' experiences with fiscal agents. targeted for investigation based on factors such as their history in implementing STW and In part, the paper is prompted by Arizona's similarities to Arizona (e.g., regional; funding experience with fiscal agency during FY 1996. structure). Arizona's STW implementation grant is administered by the Governor's Division of School A total of 61 individuals in 20 states responded to To Work (GDSTW). During FY 1996the state's requests for information. Of the interviews: first year of implementation-13 partnerships received either a capacity building or 22 represented state STW personnel; implementation grant from the GDSTW. Of the 13 partnerships, 11 designated community colleges 24 were fiscal agents from educational as fiscal agents, while two were administered by institutions; and, school districts. Three of these partnerships changed fiscal agents for FY 1997, and others are 15 were fiscal agents representing 501(c)(3)s, considering a change. workforce development boards, chambers of commerce, manufacturers' associations, Local partnerships' experiences with their fiscal Private Industry Councils (PICs), and "Area agents provoked a number of questions such as Development Districts." n (602) 965-4525 Arizona State University Morrison Institute for Public Policy School of Public Affairs 1 3 Interviews were conducted between October and as fiscal agents in several states and account for December of 1996 via telephone, fax, or e-mail two percent of the fiscal agents identified in this study. Wisconsin has the most (5), followed by with follow-up as necessary to ensure the accuracy Iowa, Nebraska, and North Carolina with an of the information reported. Participants were asked to relate their experiences with and as fiscal estimated two each. agents, how fiscal agents were chosen, and the "Other" organizations: "Other" organizations strengths and weaknesses of a particular type of account for 13 percent of known fiscal agents. fiscal agency. Findings are summarized in the These include workforce development or sections that follow. investment boards, local or regional government agencies, and nonprofit agencies. One An overview of fiscal agents stateMichiganuses workforce development boards exclusively as fiscal agents. Florida, Fiscal agents for STW partnerships are discussed Massachusetts, Nebraska and Ohio also have one in terms of one of four categories: educational or two workforce development boards acting as institutions, training institutions, business and fiscal agents. labor organizations, and "other" organizations. These categories are adopted from the Local Kentucky's "Area Development Districts" are an Partnership Surveyan instrument developed by example of a local or regional government agency Mathematica Policy Research, Inc. as part of the acting as fiscal agent. These districts encompass national evaluation of STW implementation. multiple counties and employ staff to coordinate local government functions (e.g., transportation, Educational institutions: In the 20 states JTPA). Counties as a unit of government also serve surveyed, 84 percent of STW partnerships use an as fiscal agents for some local STW partnerships. educational institution as their fiscal agent. For example, most fiscal agents in California are counties. Similarly, Florida's school districts are Y-12 entitiesespecially local education agencies county-based in the sense that each county in or school districtscomprise 70 percent of the Florida is a school district. fiscal agents in the category of educational institutions. Other K-12 fiscal agents include 501(c)(3)s are the primary nonprofit organization regional vocational districts/ centers and used as fiscal agents. California, Kentucky, intermediate/regional "education services districts" Nebraska, Oregon, and Wisconsin all have at least (including educational collaboratives). one 501(c)(3) organization serving as a fiscal agent for a local partnership. The remaining 14 percent of educational institutions serving as fiscal agents are Table 1 (on pages 4 and 5) summarizes postsecondary institutions. Of the 51 known information about states' fiscal agents. A word of postsecondary fiscal agents, only a few (eight explanation is warranted on the figures included percent) are universities while most (92 percent) in the table. Since this study was conducted at the are two-year institutions (e.g., community, junior, end of FY 1996 and beginning of FY 1997, some or technical colleges). states reported numbers from 1996 and others from 1997. Whenever possible, the most recent Training institutions: Training institutions partnership statistics were used. Maine and include entities such as proprietary schools, Washington, though included in the table, do not apprenticeship agencies, and PICs. Training institutionsPICs exclusivelyaccount for only have data on fiscal agents because both states have unique STW fiscal structures which are one percent of fiscal agents included in this study. highlighted in the text. California, Ohio and Oregon each have at least one fiscal agent that is a PIC. Some notable facts from the table are as follows. Business and labor organizations (e.g., trade associations, chambers of commerce) are utilized ri Morrison institute for Public Policy Arizona State University School of Public Affairs (602) 965-4525 2 4 '!8E57,' COT( AVAIILAIS NeutralityA neutral agent can eliminate Among state fiscal agents: 65 percent (13 of perceptions that fiscal management is tied to any 20) are state education agencies; 25 percent single municipality, school district, community (five states) are labor-related state agencies college, region, and so on. An independent party such as a department of commerce; and 10 can better mediate and resolve "turf" challenges percent (two states, excluding Arizona) among participating partners. channel funds through the Governor's Office. Experience in federal grant managementAn 75 percent (16 of 20) of the states and 84 effective fiscal agent not only has a structure in percent (298 of 353) of known partnerships place to handle funds, but also has experience in employ at least one educational institution as grant management. a fiscal agent. Skill in fostering involvementAn effective In six statesColorado, Idaho, Nevada, New Hampshire, Oklahoma, and Utahall fiscal fiscal agent is able to effectively involve, coordinate, and collaborate with all stakeholders. agents are educational institutions. PhilosophyAn effective fiscal agent has a strong Florida is the only state (except Arizona) with commitment to creating a "true new partnership more postsecondary than K-12 fiscal agents. between business and education." Michigan, Nebraska and Wisconsin have the Accessibility/central locationEasy accessibility highest percentages of non-education fiscal and central location within a particular region are agents, but also have labor departments as viewed as positive characteristics of fiscal agency. state fiscal agents. With the exception of Michigan, whose fiscal agents are all workforce development boards, Kentucky has the highest percentage of The downside of fiscal agency "other organizations" as fiscal agents. Cash flowLack of up-front cash; Characteristics of "effective" fiscal agents reimbursement nature of the grant The main question of interest was whether or not Workload"Extra work without resources;" a particular type of fiscal agent is perceived as "It's not exactly a windfall to be a fiscal agent." better or more effective than another in planning or implementing a local STW system. In short, no Turf problems/Cooperation from other one type of agency is uniformly perceived as better or stakeholdersJealousy from partners over the more effective than another. Rather, fiscal agents of status of the fiscal agent; perceptions all types are perceived as effective in systems- sometimes warrantedthat fiscal agents have building efforts to the degree that they also are more or undue influence than other partners. perceived as having particular institutional characteristics or strengths. As derived from the Personnel policiesEspecially among interviews, such characteristics or strengths educational institutions, union salary include the following: limitations for hiring staff and college personnel policies and restrictions pose barriers in getting Existing mechanisms/structuresExisting the right person for the job resources to distribute grant monies means less time in "gearing up"and establishing new Liability-The entity that serves as fiscal agent relationships. Institutional characteristics such as assumes liability for the entire partnership established human and policy resources and who needs it? accounting systems can facilitate the planning and implementation processes. a Morrison Institute for Public Policy (602) 965-4525 Arizona State University School of Public Affairs 3 Table 1 Local partnership fiscal agents in 20 states (excluding Arizona) Type of Fiscal Agent Educational Institutions Other Training Business Institutions & Labor # of Yr of State State Post- K-12 Total data fiscal secondary (Educational ST W agent Institutions) '97 GO 4 13 AZ 12 8 1 (30%) (92%) (8%) (62%) '97 DOL 55* CA One Few Most V7 65* Most Few GO CO All '96 27 28 FL SEA 13 14 1 (96%) (46%) (50%) (4%) Most iA Pew DOL Seine 150. MOS '96 21 ID 16 21 SEA 5 (76%) (100%) (24%) ....... ............ . 14 KY 6 ,97 22 $EA p6%) (6490 (28%) 33 '96 26 28 SEA MA 2 (79%) (85%) (6%) ME NA 24* SEA NA NA "97H NA 26 '97 DOL 26 MI (100%) , NC '97 66* Few Most SEA Few . . '96 DOL NE 6 12 2 2 2 (30%) (17%) (17%) (17%) '96 NH 58 58 SEA (1M%) '97 Most Few NY 55* SEA . ,.,. ,.. ... . . 4 4 NV V7 SEA 3 1 (75%) (25%) (100%) OH '97 38 53** 49 SEA 11 3 1 (72%) (92%) (20%) (6%) (2%) 40 V7 41 41. $EA, 1 0896) (100%) '96 OR SEA 15 13 13 1 1 (87%) (87%) (7%) (7%) n! Morrison Institute for Public Policy School of Public Affairs (602) 965-4525 Arizona State University 4 BEST COPY AVAILABLE Table 1continued Type of Fiscal Agent Other Educational Institutions Training Business Institutions # of Yr of Post- State Total State K-12 Labor data secondary (Educational STW fiscal Institutions) agent ....... ......... ............ ............. ........... ... . . . . 8 9 UT 9 SEA *96 1 grow. 806) (100%) (11 %) '97 GO NA WA NA NA NA NA NA* NA 8 '96 26 18 DOL 31 WI 5 OM (16%) (26%) (84%) 44 768 247 8 298 51 3 Total* * * (13%) (84%) 353 (70%) (2%) (1%) (14%) Notes: Figures may not total 100% due to rounding DOL = Department of Labor (e.g.,Commerce, Economic Development, Jobs Commission) GO = Governor's Office SEA = State Education Agency # of STW = Number of local/regional partnerships reported *Specific breakdowns of types of fiscal agents for these states are unavailable or do not apply. **Ohio has funded a total of 93 partnerships since implementation began in 1996. Fiscal agents for 40 "prototype grants" were unable to be determined; numbers are based only on the 53 partnerships with known fiscal agency. *"768 is the total number of partnerships in the states studied. 353 is the number of partnerships in which type of fiscal agency is known. Percentages are based upon known fiscal agent types. State profiles Ohio: Regional alliances and local partnerships Some states exhibit particularly unique fiscal agency or funding distribution practices. Some of are structured around the state's 12 economic these are described in the profiles that follow. development regions. Ohio uses a "draw down" method for distribution of the funds for all Michigan: During FY 1996, Michigan funded 44 funding recipients. Awards of federal funds are STW partnerships; roughly 80 percent had made through a "Request for Proposal" process at educational institutions as fiscal agents. Michigan the state level with money provided on a changed its system of designating fiscal agents for reimbursement basis. FY 1997. Monies are now administered through 26 regional workforce development boards who Oklahoma: There are 41 local partnerships. Fiscal distribute funds through a competitive bid agency is driven primarily by state statute, which process. While several interviewees said that the requires a streamlined delivery of dollars and a changeover has been somewhat difficult, they also standard state financial process. For this reason, indicated that the state is in a transitional period the majority of Oklahoma fiscal agents are school and that it is premature to gauge the advantages districts or area vocational schools. and disadvantages of this strategy. Morrison Institute for Public Policy (602) 965-4525 School of Public Affairs Arizona State University I 5 BEST COPY AVAILABLE 7 Maine: Although Maine has 24 local partnerships, learning, skills centers, support). The five agents monies are distributed instead through seven then channel funds directly to local partnerships. funding streams. Local entities receive funding Educational consortiums receive the majority of through these pathways, rather than specific fiscal STW funds. agents. The Maine State Department of Education acts as state fiscal agent, channeling the funds to the appropriate state agencies administering the seven areas of emphasis which are: 1) a pre- How fiscal agents are chosen apprenticeship program managed by the Maine Department of Labor, 2) Jobs for Maine's Asked how partnerships selected their fiscal Graduates, 3) Tech Prep, 4) pro-prep, 5) agent, four primary reasons were cited (which occupational prep, 6) school-based enterprises, are not necessarily mutually exclusive). In order and 7) a state-level youth apprenticeship program of frequency of response, fiscal agents were named "Career Advantage." selected The "Career Advantage" program is the primary Because they were involved from the outset pathway for STW funding in Maine. Funds go to (e.g., they either wrote the planning or the Center for Career Development, a subsidiary implementation grant, served as chair of the of the technical college system. The Center is set planning committee, or took a lead role early in up as a 501(c)(3) corporation, and is the employer the process). of record for all students enrolled in the program. Businesses accepting students at their work sites Because they were elected by all stakeholders pay $5000 a year. Insurance and student stipends (regardless of their initial role). are paid out of this fee. Because they had an existing structure for Massachusetts: In Massachusetts, where state handling a federal/state grant which made fiscal agency resides in the Massachusetts them a logical choice. Department of Education (MDE), the majority of local fiscal agents are schools, school districts and By default (i.e., no other organization educational collaboratives, although there are a expressed interest in serving in this capacity, few employment boards and community colleges while the chosen fiscal agent was willing). serving in this capacity. What distinguishes Massachusetts is that one of the community colleges uses a regional Unique advantages by type of fiscal agent employment board as a lead fiscal agent. The employment board passes STW monies directly Specific advantages were cited relation to different through to the community college. This types of fiscal agency. This section highlights pros mechanism alleviates the necessity of an and cons by type of fiscal agent. intergovernmental agreement between the MDE and the community college. Educational institutions: Educational institutions are perceived as advantageous in that they often Washington: The Governor's Budget Office acts are accustomed to handling federal monies and as state fiscal agent for STW funds, but are familiar with state-level policies and immediately passes the monies through to five procedures. However, a major drawback of using other state-level entities (three state agencies, the an educational entity as a fiscal agent is the State Labor Council, and a business organization). perception that fiscal agency imbues power or Each subcontractor serves a different role in the financial advantages to the agency controlling the system-building process (e.g., work-based purse strings, contributing to "turf" issues. ri Morrison Institute for Public Policy Arizona State University School of Public Affairs (602) 965-4525 6 a Conversely, some respondents view postsecondary Another issue relates to the perception of STW as institutions as entrenched bureaucracies which "just another education reform effort." lack the desire to change business as usual. The following comments illustrate this sentiment: Benefits and detriments to using specific types of educational institutions (e.g. K-12 and "They are a bureaucracy that can't be postsecondary institutions) are listed below. moved." "Community colleges live in their own world. K-12: The chief advantage of using a K-12 entity They don't like to be held accountable. They as fiscal agent is that they are perceived as closest like lots of 'wiggle room'." to the students for whom STW is intended. As one "STW is seen as just another of the individual said, community college initiatives. There is a perception on the part of local educational "We have the pulse on what is happening in administrations of: 'What are they making schools. The steering committee had thought me do now?" about a bank or community college as fiscal agent, but felt that the K-12 public education Training institutions, business and labor system was where STW would be organizations, and other organizations: implemented." Regional entities (e.g., counties, area development districts) are seen as beneficial to the extent that On the down side, K-12 institutionsparticularly they have geographic and size advantages, the small systemsmay not always have the capacity ability to serve a coordinating function in areas to handle large cash flow demands. Additionally, with multiple school districts and buffer potential some lack adequate knowledge of U.S. problems between schools, and the inherent Department of Labor requirements which are capacity to help to "preserve unique characteristics imbedded in STW. of distinct geographical regions." They also may be better able to handle workload and manage cash Postsecondary institutions: Perceived advantages flow than small districts. of postsecondary institutions are that they sometimes have more resources for fiscal However, not all regional governmental units have management than K-12 districts and that they may the capacity or resources to take on the duties of have established relationships (e.g. Tech Prep) fiscal agency. Moreover, conflicting boundaries with schools that serve to streamline the within a region (e.g., technical college districts distribution of funds. For example, college fiscal versus labor market areas) can be problematic. agency is perceived as "allowing schools some freedom from the reimbursement process" and As for organizations such as workforce "allowing school districts to keep funds separate development boards, 501(c)(3) corporations, and avoid money getting diverted." chambers of commerce, and PICs, their only cited disadvantage is a lack of knowledge regarding how Also, the prestige and community linkages of schools operate. In contrast, they generally are colleges and universities is felt to be beneficial in perceived as having a number of advantages recruiting stakeholders. Said one respondent, including being more attuned to business needs "community colleges are community-based and wants and having a greater capacity for connecting bridges to the private sector." Finally, involving businesses, attracting private funding, since community colleges sometimes are seen as and finding mentors and work experience sites. "the last ones to get on board," assigning fiscal They also are viewed as having the potential to agency to a postsecondary institution is viewed as streamline their structures and avoid the problems a strategic way to obtain commitment from them to build a STW system. of an educational bureaucracy. PICS, specifically, Morrison Institute for Public Policy (602) 965-4525 Arizona State University School of Public Affairs 7 O direction taken by a partnership at any level of also are seen as having greater familiarity with systems-building. Department of Labor programs/requirements. Although not a focus of this study, it is worth Particularly in relation to creating a "new" commenting on the already apparent turnover institution [e.g. 501(c)(3)sl to administer STW among fiscal agentsat both state and local levels. funds, advantages are perceived in terms of an One can hypothesize that the "advantages" of organization able to maintain a neutral stance between competing business and education serving in this capacity may be outweighed by agendas. However, these entities are seen as factors such as cash flow or workload constraints, having problems inherent in starting any new particularly in the cases of small or new organizations. Or , that charged with the venture (e.g., hiring personnel, locating office space, start-up funding). responsibility and authority of the grant (e.g., assuming liability for all partners)barring a significant, meaningful leadership rolethe Discussion administrative duties of cash management are simply not worth the effort. Each state studied has a unique system of fiscal agency, undoubtedly influenced by factors such as The challenge facing a partnership is to choose a state and local governance, federal funding source fiscal agent who is reflective of the partnership (i.e., Labor versus Education) and state itself. Bias towards any particular organization is legal requirements or restrictions. Overall, state detrimental. A fiscal agent who is able to balance administrative duties reside in either state regional, educational, and business concerns education or labor departments or governors' without the perception that it is tied to any one offices. Most state fiscal agents directly fund local stakeholder is optimal. Said one respondent, "By STW partnerships and regional technical the second or third year, [there should be] a more assistance or coordinating bodies, although a few equitable fiscal agent partnership, so that the states fund programmatic or functional strands. perception of dominance will fade. Fiscal agents The question that prompted this studywhether should manage expectations through an independent intermediary." This individual there is an overall "best type" of fiscal agent to administer STW systemshas been answered: recommended a 501(c)(3) structure. Given that STW systems are eventually to be self-sustaining, No. However, the question itself may be this is a fiscal agent structure worth examining premature or even fallacious. Perhaps a more important question has to do with how a further. partnership should select a fiscal agent. Findings reveal that while some fiscal agents might have been selected strategically for their Arizona's leadership abilities or fiscal management history, SCHOOLTOWORK SYSTEM most appear to have been selected for other For additional information about Arizona's School To reasons (e.g., no one else would do it). The study Work initiative, contact: also suggests that an effective fiscal agent is more than a cash managerthey also are cast in a The Governor's Division of School To Work leadership role with the corresponding authority and responsibility for implementing a STW (602) 542-2378 system. As such, they have the potential to "set the Gary Abraham, Director stage" for systems-building efforts. Therefore, it is Mimi Bull, Marketing & Technical Assistance important to consider the ability of the entity Coordinator controlling STW finances to influence the Cynthia Yorks, Administrative Assistant rt Morrison Institute for Public Policy (602) 965-4525 Arizona State University School of Public Affairs 8 10

See more

The list of books you might like

Most books are stored in the elastic cloud where traffic is expensive. For this reason, we have a limit on daily download.