Title
Receive the Monterey County Workforce Development Board FY 2025-26 Final Financial Status Report for the Workforce Innovation and Opportunity Act (WIOA) funded programs through June 30, 2026.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors Budget Committee:
Receive the Monterey County Workforce Development Board FY 2025-26 Final Financial Status Report for the Workforce Innovation and Opportunity Act (WIOA) funded programs through June 30, 2026.
SUMMARY/DISCUSSION:
Workforce Innovation and Opportunity Act (WIOA) revenues are drawn down from the State Employment Development Department (EDD) and the U.S. Department of Labor (DOL) as eligible expenditures are incurred. Program expenses are reimbursed from available federal and state allocations and are monitored to ensure expenditures comply with applicable funding requirements and remain within available grant balances. The Workforce Development Board (WDB) received funding in two rounds for the Adult and Dislocated Worker programs. The first round of funding was received July 1, 2025, through September 30, 2025, and represented 16% of the annual allocation. The second round was received October 1, 2025, through June 30, 2026, and represented the remaining 84% of the allocation. Youth funding is received annually.
The WDB has up to two years to expend its Adult, Dislocated Worker, and Youth formula allocations. Prior-year funding must be fully expended before the current-year allocation is available for expenditure, and funds remaining unspent after the applicable two-year period may be recaptured by the State. The WDB may transfer up to 100% of funding between the Adult and Dislocated Worker programs, subject to applicable requirements. Funding cannot currently be transferred to or from the Youth program.
As the fiscal agent for regional grants, the WDB leads key initiatives for the North Central Coast Regional Planning Unit (RPU), which includes the workforce development boards of Monterey, Santa Cruz, and San Benito counties. In addition to WIOA Formula funding, the WDB administers and serves as fiscal agent for non-WIOA discretionary grants, including CaliforniansForAll (CFA) and High Road Construction Careers (HRCC). These grants provide additional funding to support targeted workforce development activities, training, employment services, and work-based learning opportunities throughout the region.
Through its participation in CaliforniansForAll grant initiatives, the WDB has expanded workforce development services beyond the WIOA Formula programs. CFA funding has supported participant services and training activities designed to connect individuals with employment and career advancement opportunities, including occupational training, work-based learning, and other grant-eligible workforce development activities. The CFA initiatives also provide opportunities for the WDB to strengthen partnerships with employers, training providers, and community organizations and respond to identified workforce needs.
The WDB was also the lead for the June 1, 2023, through March 31, 2026, High Road Construction Careers State grant. The $1.9 million tri-county grant funded a pre-apprenticeship training program in partnership with the Monterey/Santa Cruz Building and Construction Trades Council and the Laborers Training Center. The program was designed to provide training to 126 individuals and prepare participants for employment opportunities in the construction industry.
The WDB has an agreement with Equus Workforce Solutions (formerly ResCare) to provide WIOA career and training services to Adult and Dislocated Worker participants. For FY 2025-26, Equus had goals to enroll and serve 425 Adults and 75 Dislocated Workers through training and employment opportunities. Equus achieved most of its enrollment goal by June 30, 2026.
The WDB also has agreements with Equus and Turning Point to provide WIOA Youth services in northern and southern Monterey County, respectively. During FY 2025-26, the service providers' combined goals were to enroll and serve 220 Youth participants and provide work experience to 178 of those participants. Equus and Turning Point each achieved approximately 75% of their enrollment goals by June 30, 2026.
The WDB also received non-WIOA funding from the Monterey County Probation Department to provide training opportunities through Assembly Bill (AB) 109 special project grants. In addition, the Silver Star youth program, which provides training and employment assistance to at-risk and justice-involved youth, is funded through the County.
The WDB's financial position as of June 30, 2026, is summarized below:
The WDB's financial position as of June 30, 2026, reflects the funding available to support workforce development programs and services throughout Monterey County. Funding sources include WIOA Formula funding, Other Grant funding, and State Discretionary Grant funding. Each funding source is subject to individual grant award terms, expenditure requirements, performance periods, and applicable federal, state, and local requirements.
WIOA Formula Funding
FY 2025-26 WIOA Formula Allocations $7,709,678
FY 2024-25 WIOA Funds Carried In $2,131,517
Total WIOA Funds Available $9,841,195
Less: Expenses through June 30, 2026 ($6,542,905)
WIOA Formula Funds Remaining $3,298,290
WIOA Formula funds support workforce development services for Adult, Dislocated Worker, and Youth participants, including career services, occupational training, work-based learning, and supportive services.
Other Grant Funding
Other Grant Funds Available as of July 1, 2025 $793,664
Less: Expenses through June 30, 2026 ($696,209)
Other Grant Funds Remaining $97,455
Other Grant funding supports additional workforce development activities and services provided through grants outside of the WIOA Formula funding structure. These funds are administered in accordance with the applicable grant agreements and funding requirements.
State Discretionary Grant Funding
State Discretionary funding consists of multiple state-funded grants with varying award periods, funding levels, eligible expenditures, and program requirements. These grants may span multiple fiscal and program years. Available funding balances may change throughout the year due to new awards, grant amendments, carry-in funding, reimbursements, expenditures, and grant closeouts. The WDB's State Discretionary funding includes CaliforniansForAll and High Road Construction Careers (HRCC).
During FY 2025-26, CaliforniansForAll funding supported workforce development activities and participant services designed to increase access to training and employment opportunities. The WDB's participation in CFA initiatives provided additional resources to support participants through career and employment services, occupational training, work-based learning, and other grant-eligible activities. These initiatives also allowed the WDB to leverage partnerships with employers, training providers, and community organizations to address workforce needs and connect participants with employment opportunities.
The HRCC grant supported a regional pre-apprenticeship training program focused on preparing participants for careers in the construction industry. The program serves participants from Monterey, Santa Cruz, and San Benito counties and is implemented in partnership with the Monterey/Santa Cruz Building and Construction Trades Council and the Laborers Training Center.
State Discretionary Grant Expenditures through June 30, 2026: $1,101,505
State Discretionary funding provides the WDB with additional resources to implement targeted workforce development initiatives outside of the WIOA Formula funding structure. These grants allow the WDB to respond to identified workforce needs, provide additional training and employment opportunities, and leverage regional partnerships while maintaining fiscal oversight and compliance with individual grant requirements.
The decline in participation in workforce training and employment services has continued to affect workforce development boards in California and throughout the United States. The WDB has experienced lower participation levels compared with pre-pandemic periods, with the decline particularly evident in the Dislocated Worker program.
Monterey County's low unemployment rate and current labor market conditions have contributed to lower participation in Dislocated Worker services. In response, the WDB and its service providers have implemented initiatives to increase outreach and connect current and prospective participants with available training and employment opportunities. These efforts include development of training programs for Community Health Workers and the Central California Alliance for Health, as well as partnerships with Joby Aviation for on-the-job training and youth internship opportunities.
The WDB has also experienced a reduction in the number of State-approved eligible training providers available to participants in Monterey County due to changes in EDD requirements related to training provider performance and administrative requirements. The reduction in available training providers has contributed to a lower training expenditure rate. California WDBs are required to spend 30% of their Adult and Dislocated Worker funds on training.
The FY 2024-25 WIOA carry-in funding originated from both Adult and Dislocated Worker programs, with the majority attributable to the Dislocated Worker program. Lower participation in the Dislocated Worker program, combined with the reduction in State-approved training providers, contributed to lower training expenditures and resulted in carry-in funding that remained available for expenditure during FY 2025-26. Prior-year funding must be fully expended before the WDB can begin using the corresponding FY 2025-26 allocation, consistent with applicable WIOA funding requirements.
The WDB received its FY 2025-26 WIOA Formula allocation of $7,709,678 on June 6, 2024, representing an increase of $30,000 over its FY 2024-25 allocation.
For FY 2026-27, the WDB's WIOA Formula allocation increased to $7,770,099, compared with $7,709,678 in FY 2025-26. This represents an increase of $60,421, or approximately 0.78%. The increase provides additional resources to support Adult, Dislocated Worker, and Youth workforce development activities and services.
OTHER AGENCY INVOLVEMENT:
The WDB is partnering with the Probation Department for the AB 109 grant and with the County Administrative Office (CAO) for the Silver Star Program.
FINANCING:
There is no financial impact on Monterey County General Funds in receiving this report.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
This work supports the Board of Supervisors’ Strategic Initiative that supports economic development, system alignment and accountability, service integration and continuous improvement.
√ Economic Development: Through collaboration, strengthen economic development to ensure a diversified and healthy economy
Prepared by: Elizabeth Kaylor, Management Analyst III, 5385
Approved by: Christopher Donnelly, WDB Executive Director, 6644
ATTACHMENTS:
FY 2025-26 Final Financial Status Report