Funding Limitations & Priorities
The eight-member Employment Training Panel is responsible for assessing California’s workforce trends and economic development needs. Thus, the Panel establishes funding priorities and limitations each Fiscal Year.
Contract Type 2018/19 Caps 2019/20 Caps
Single Employers (Includes Small Business) $900 K $650 K
Critical Proposals $900 K $750 K*
Multiple Employer (MEC) (Includes Apprenticeships) $950 K / $1.8 M $750 K**
MEC Apprentice Training: Per Sponsor $950 K / $1.8 M N/A
Non-Priority Industries N/A $150 K
Delegation Orders N/A $75 K
Consent Calendar N/A $200 K
*Critical Proposals may exceed this cap for good cause, determined case-by-case.
** All MECs are limited to one contract per Fiscal Year.
|Contract Category||Allocations FY 2019-20|
|Multiple Employer Contracts (MEC)||$24,000,000|
|Apprenticeship (including non-traditional)||$23,000,000|
Priorities and Priority Industries
|Priorities →||Priority Industries|
|• Job Creation Priorities|
• Priority Industries (shown adjacent)
• Projects with a Demonstrated Investment in California’s Economy
• Projects Serving Drought-Impacted Regions of the State
• Critical Proposals – GO-BIZ References
• Projects Serving Veteran Trainees
• Small Business Projects
• Allied Healthcare
• Biotechnology and Life Sciences
• Green/Clean Technology
• Goods Movement and Transportation Logistics
• Information Technology Services
• Manufacturing/Food Production
• Technical Services
Moratorium for Core Funds:
- 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
- Mortgage Banking – This includes financial and collections institutes.
- Multi-Level Marketing
- Training for employees of Training Agencies
- Truck driving schools
- Partners & Principals in Professional Firms – This includes legal, architectural, engineering, accounting, and tax advising firms.
- Amendment Limitations:
- Single Employers:
- There may be a maximum of two amendments adding funding to any contract.
- This additional funding may not bring the project above its relevant project cap.
- Amendments may only be requested once a contractor has earned 70% on their contract. Earned = final payment has been approved by fiscal.
- Amendments may be for Phase II funding only; and,
- Panel may reduce the requested Amendment amount.
- Single Employers:
- Contract Limitations:
- All MECs are limited to 1 contract per Fiscal Year
- Car Dealerships
- Limited to training mechanics Only for Core Funding
- Vendor/Subcontractor Limitation – (eliminated Broker Model Policy) – The Vendor Limitation prohibits any vendor/subcontractor from providing both training – and project development or administration. This limitation applies to all ETP contractors and training vendors, with the following exceptions for a training vendor: Western Association of Schools and Colleges (WASC) approved; Accrediting Commission for Community and Junior Colleges (ACCJC ) approved; Bureau of Private Post-Secondary Education (BPPE) approved; or, A vendor that has received an exemption from Executive Staff.
- Repeat Contractor Rule (Pilot) –
- Contractors may have 2 contracts without any waiting period.
- After the end of 2nd contract term, contractor must wait 9 months before applying (Pre-Application) for 3rd contract.
- If performance on any contract is below 75%, the amount of the new contract will be no more than the amount earned under prior the contract.
- Repeat Contractor Rule described above starts over with 3rd contract.
- Contractor may earn a maximum of $2.5 M over 4 contracts.
- Critical Proposals, Alternatively Funded Projects, Small Business Projects, and MECs are exempt from the Repeat Contractor Rule. Any Contractor desiring exemption from the rule may request an exemption with Executive Staff.
- Substantial Contribution (SC) – Substantial Contribution is a reduction in reimbursement amount and can be applied by the Panel. The Panel has flexibility to set the % on case by case basis.
- Support Costs – Multiple Employer Contract (MEC) 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 in a MEC – Multiple Employer Contractors requesting funds for retraining must demonstrate participating employer demand for training, based on the MEC’s prior performance. If prior performance is 80% or more, the MEC must demonstrate 60% demand. If prior performance is less than 80%, the MEC must demonstrate 80% demand.
Latest Press Release
The Panel announced that it will now accept and consider cannabis industry applications from licensed businesses. ETP will process applications for training contracts using the same eligibility requirements currently used for all companies seeking funding. The Panel will also ensure regulatory compliance of valid, current and active cannabis-related licenses from the Bureau of Cannabis Control; the California Department of Food and Agriculture; and the California Department of Public Health’s Manufactured Cannabis Safety Branch.
Training Agency Certification
The Employment Training Panel has adopted guidelines to be used in making eligibility determinations for funding training by private post-secondary schools (Training Agencies). See summary of Training Agency Certification guidelines.
The determination of funding eligibility will be made by ETP during pre-application, with reference to these guidelines. (See also Unemployment Insurance Code Section 10210 and Title 22, California Code of Regulations Section 4400(z).