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 and limitations each Fiscal Year.
Project Caps
Contract Type 2017/18 Caps 2018/19 Caps
Single Employer $750 K $900 K*
Single Employer Small Business $50 K $900 K*
Critical Proposals $900 K $900 K*
Multiple Employer (MEC) $950 K $950 K/$1.8 M**
MEC Apprentice Training: Per Sponsor $450 K $950 K/$1.8 M**
*Delegation Order: Proposals approved via Delegation Order are capped at $75 K
**MECs over $950 K need to wait 18 months from the start of the contract term before submitting a new Pre-Application
Funding Allocations
| Contract Category | Allocations FY 2018-19 |
|---|---|
| TOTAL | $103,000,000 Million |
| Single Employer | $48,000,000 |
| Critical Proposals | $5,000,000 |
| Small Business | $6,000,000 |
| Multiple Employer Contracts (MEC) | $24,000,000 |
| Apprenticeship | $20,000,000 |
Priorities and Priority Industries
| Priority Industries: | Priorities: |
|---|---|
| • Agriculture • Allied Healthcare • Biotechnology and Life Sciences • Construction • Green/Clean Technology • Goods Movement and Transportation Logistics • Information Technology Services • Manufacturing • Multimedia/Entertainment • Technical Services | • 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 |
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 – This includes financial and collections institutes.
- Car Dealerships
- 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.
Other Limitations
- 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 contacts 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
Employment Training Panel Approves Over $20 million to Train Close to 18,000 Workers
The State of California’s Employment Training Panel last Friday announced it approved 58 contracts worth over $20 million to train close to 18,000 workers. The panel also received an update on its grant partnership with the California Department of Rehabilitation which has provided paid work experience and pre-vocational opportunities to 280 students with disabilities through the Summer Training and Employment Program for Students (STEPS).
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).