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.
FY21/22: ETP’s funding priorities for FY21/22 will follow the below Priority Industries; Funding Allocations; Funding Limitations; Projects
FY20/21: 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 | Allocations FY 2021-22 |
|---|---|---|
| Single Employer | $30,000,000 | $16,875,000 |
| Small Business | $5,000,000 | $2,812,500 |
| Critical Proposals | $5,000,000 | $2,812,500 |
| Multiple Employer Contracts (MEC) | $20,000,000 | $11,250,000 |
| Apprenticeship (including non-traditional) | $20,000,000 | $11,250,000 |
| COVID Pilot | $30,000,000* | N/A |
| TOTAL | $80,000,000 Million | $45,000,000 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 2021/2022:
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.
- Revision Requests to Increase Funding
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:
- Repeat Contractor Limitations:
- Multiple Employer Contractors (MEC):
- All MECs are limited to 1 contract per Fiscal Year
- Single Employers:
- Repeat Contractor Rule:
- Contractors must wait until 18 months have passed in their current contract before submitting a Preliminary Application for a second contract.
- If the current/active contract does not meet 75% completion rate, as determined using the potential earned amount, then the second contract will be right-sized accordingly.
- Repeat Contractor Rule:
- Multiple Employer Contractors (MEC):
Project Caps
Contract Type 2020/21 Caps* Proposed FY 21/22 Caps
Single Employers (Includes Small Business) $500 K $500 K
Critical Proposals $600 K $600 K
Multiple Employer (MEC) (Includes Apprenticeships) $600 K $600 K
COVID Pilot $200 K N/A
Delegation Orders $75 K $75 K
Consent Calendar $200 K $200 K
* Caps apply per contractor per FY
Latest Press Release
The State of California’s Employment Training Panel announced the application period for a new grant that will foster business innovation and equity, inclusion, and social responsibility for individuals who face employment barriers is now open. This grant is open to non-profit Community Based Organizations (CBOs) with a deadline to submit a proposal by March 3, 2021 (3 PM PST). More information is posted in the February Press Release and on ETP's Grant page here.
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).