Funding Priorities & Limitations
The eight member Employment Training Panel annually establishes funding priorities for the fiscal year, based on the demand of employers for trained workers and changes in the state economy and labor markets.
UPDATE: In direct response to the COVID-19 outbreak, the Employment Training Panel (ETP) has implemented, through the end of the current fiscal year, June 30, 2021, critical modifications to the funding priorities. ETP’s current funding priorities are now focused towards companies identified as critical and in essential industries, within Governor Newsom’s Executive Order: Executive Order N-33-20 , that are vital to the health and safety of the public, and maintenance of the economy, during the Covid-19 pandemic. A link has been provided to ETP’s targeted applicants, (COVID Response Plan) for your convenience.
Funding Industries
Priority Industries
The Panel has designated the following industry sectors as “Priority Industry” for purposes of a higher fixed fee reimbursement rate than the standard rate.
Industry sectors:
Note: “Priority Industry” sector designations may not apply to the entire sector.
- Agriculture
- Allied Healthcare
- Biotechnology and Life Sciences
- Construction
- Green/Clean Technology
- Goods Movement and Transportation Logistics
- Information Technology Services
- Manufacturing/Food Production
- Multimedia/Entertainment
- Technical Services
Funding Allocations
| Contract Category | Allocations FY 2020-21 |
|---|---|
| Single Employer | $30,000,000 |
| Small Business | $5,000,000 |
| Critical Proposals | $5,000,000 |
| Multiple Employer Contracts (MEC) | $20,000,000 |
| Apprenticeship (including non-traditional) | $20,000,000 |
| COVID Pilot | $30,000,000* |
| TOTAL | $80,000,000 Million |
*COVID Pilot will be limited to utilizing half of the allocations set for SEs,SBs, CPs, and MECs.
Funding Limitations:
The Panel has placed a funding moratorium on the following industries and occupations for the fiscal year:
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
- Gambling
- 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.
- Car Dealerships – Limited to training mechanics Only for Core Funding
- Non-Priority Industry – Non-Priority Industry Single Employers (including Small Business), as designated by EDD assigned NAICS code, with the exception of non-Priority Industry companies that fall under the COVID-19 Response Plan expedited listing or under the COVID Pilot eligible NAICS code listing.
- Revision Requests to Increase Funding ( Effective December 2020)
Other Limitations
- 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:
- MECs:
- All MECs are limited to 1 contract per Fiscal Year
- MECs:
Project Caps
Contract Type 2019/20 Caps 2020/21 Caps
Single Employers (Includes Small Business) $650 K $500 K
Critical Proposals $750 K* $600 K
Multiple Employer (MEC) (Includes Apprenticeships) $750 K** $600 K
COVID Pilot N/A $200 K
MEC Apprentice Training: Per Sponsor N/A N/A
Non-Priority Industries $150 K N/A
Delegation Orders $75 K $75 K
Consent Calendar $200 K $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.
Latest Press Release
Employment Training Panel Awards $15 million to Train 10,800 Workers
The State of California’s Employment Training Panel announced that it approved 59 contracts worth nearly $15 million to train 10,800 workers. The panel approved $524,400 in training funds for Reborn Cabinets to help hire and train 285 workers in the manufacturing industry. Reborn Cabinets is a family-owned business that designs, manufactures, and installs custom cabinetry in kitchens and baths for homeowners. With the expansion of its establishment, the Governor’s Office of Business and Economic Development has designated this project a Critical Proposal as Reborn Cabinets will be providing new jobs for 285 new employees.
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).