Funding Limitations

The eight-member Employment Training Panel is responsible for assessing California's workforce trends and economic development needs. Thus, the Panel establishes funding priorities each Fiscal Year.

Project Caps

Contract Type 2016/17 Caps
Single Employer
$750 K
Single Employer Small Business
$50 K
Critical Proposals
$900 K
Multiple Employer (MEC)
$950 K
MEC Apprentice Training-per sponsor
$450 K

Note: All MECs: Funding is limited to one contract per fiscal year.

Funding Allocations

Contract Category Allocations FY 2016-17
Single Employer Contracts:
Single Employer Standard
Critical Proposals
Small Business
Multiple Employer Contracts (MEC):
MEC Standard
$90,400,000 Million

Lowest Funding Priorities:

  • Adult Entertainment- This includes the design, manufacture, distribution, servicing, management or sale of products or services in the adult entertainment.
  • Commission Sales occupations in Retail Trade
  • Gambling
  • Mortgage Banking
  • Multi-Level Marketing
  • Retraining for employees of Training Agencies
  • Truck driving schools

Other Limitations

  • Support Costs - Multiple Employer Contract support costs will default to the highest percentage (8% of training costs for retraining and 12% for new hire training). Applicants must justify the need for and amount of support costs, case-by-case.
  • Employer Demand - Multiple Employer Contractors requesting funds for retraining must demonstrate firm commitment to training by Participating Employers equivalent to 60% or 80% of the requested amount of funding depending on prior performance of past agreements.
  • Substantial Contribution (SC) Levels - SC will default to the lowest percentage (floor). The Panel has flexibility to set levels on a case-by-case basis at a higher percentage (ceiling).
    • Floor: 15% first-time SC and 30% subsequent SC
    • Ceiling: 30% first-time SC and 50% subsequent SC
  • High Earner Reduction (HER) - The HER will be assessed in lieu of substantial contribution for single employers and participating employers in a MEC (excluding critical proposals, job creation, and alternatively funded projects) who have earned at least $2M over the past 5 years, regardless of facility.
    • The threshold for prior project earnings will be $2M
    • The level of reduction will be tiered:
      • 1st time assessed: 15%
      • 2nd time assessed: 30%
      • 3rd time assessed: 50%

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Funding Press Releases

The State of California’s Employment Training Panel announced the approval of 23 contracts worth nearly $10 million for more than 10,171 workers. The panel awarded Building Skills Partnership $381,500 to train 350 workers in green skills training components to address energy efficiency and to provide clear, high-wage career pathways for many Californians.