Group takes aim at funds

Published 11:23 am Tuesday, July 22, 2014

Judge-executives in Warren, Allen, Simpson and Logan counties have notified the state they want to break away from six other counties in southcentral Kentucky over workforce development services.

That proposed split from the Barren River Area Development District could take up to two years and would have to be approved on the local, state and national levels. A federal stipulation mandates that the break-away must be voluntary. It’s not clear if the voluntary mandate applies to the four counties or all 10 counties in the region. 

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Local officials discount rumors that the break-away is a power and financial grab by the Bowling Green Area Chamber of Commerce. 

If they do break away, the four counties would receive $974,512 of the current $1,546,858 annually received by the 10-county southcentral Kentucky region. Barren, Butler, Edmonson, Hart, Metcalfe and Monroe counties would receive $572,446, said Beth Brinly, Department of Workforce investment commissioner. The money is calculated through a matrix that takes into account population, unemployment rates and poverty rates. 

Currently, the federal Workforce Investment Act Funds are received locally and administered by the Barren River Area Development District, a regional government format set up locally in the 1960s that also provides services to the aged. WIA money first became available in 1999.

“The four judge-executives want a different level of service expectations,” Brinly said.

Brinly discussed what she called the “redesignation” process Monday afternoon with the Barren River Local Officials Organization, a local group consisting of the 10 county judge-executives and area mayors. Brinly said she would have to check with the U.S. Department of Labor to pin down just what the “voluntary” stipulation means as the debate goes forward.

BRLOO makes appointments to the local Workforce Investment Board. The WIB met this morning and also expected to hear from Brinly. The WIB and the BRLOO recently approved a six-month contract with the state on the delivery of workforce development services, with BRADD continuing to serve as the fiscal agent and the deliverer of those services. Just over half of the WIB members have to come from the private sector, according to federal law. Brinly said five private-sector members have resigned over the past year from the local WIB. Each county appoints two private-sector members.

State officials hope local officials can work out their differences. The WIB resignations, coupled with the proposed split in workforce development efforts by the four counties, indicate that a problem needs to be fixed.

“The clock is ticking,” Brinly said. The current workforce agreement ends Dec. 31. Without the agreement, the state wouldn’t be able to distribute federal workforce development money to the 10-county southcentral Kentucky region.

Warren County Judge-Executive Mike Buchanon said he’s not happy with how BRADD has delivered workforce development efforts in at least the past five years. Buchanon said he objected to BRADD Executive Director Rodney Kirtley appointing two local directors of workforce development and ignoring his input.

Buchanon said a new approach is needed.

“The workforce requirements have changed. Every community in the nation is wrestling with this,” Buchanon said. He said just “getting by” doesn’t meet the standard he would like to see. “BRADD is contracting with itself. It’s not good enough.” 

Buchanon said the BRADD approach is not dealing with the high-technology workforce needs of Warren County and he’s had complaints from one of the county’s biggest employers who can’t find people to fill local jobs. A study showed the region is going to need to fill at least 4,000 jobs immediately and 9,000 jobs within four years.

Kirtley after the meeting said BRADD has worked with more than 100 companies to meet their workforce needs and “every effort is being made” to provide adequate training, the ability for workers to obtain a sustainable wage and “if given a legitimate job,” those workers will get a chance to work at a job that will provide for their families.

Kirtley said one of the issues in the workplace is worker turnover. “That is a problem with drug testing, and we don’t have anything to do with that.”

Simpson County Judge-Executive Jim Henderson said BRADD leadership hasn’t been open to new ideas and he’s frustrated with the service delivery.

Both men said they are responsible, first, to their various counties and then to the region as a whole.

“We are obviously stronger all together,” Henderson said.

Most recently, Sharon Woods was appointed workforce director, and Kirtley said after the meeting that he has no role in future workforce decisions as Woods will report to the WIB and not to him. 

BRADD will continue to serve as the fiscal agent. The WIB could seek a different fiscal agent and a different service provider. Kirtley’s organizational structure at BRADD has four directors under him supervising the four main programs BRADD delivers to the 10-county region. Buchanon has objected to Kirtley’s position in that organizational structure, recently sending him a page-long memo demanding changes. Sources said the text of the memo originated from the local chamber of commerce.

BRADD’s unique role in WIA activities was approved by the state in 1999.

BRADD was approved to serve as fiscal agent and service provider under an exemption approved by Kentucky Gov. Paul Patton, Brinly said. The model for delivering workforce services – training workers, recovering jobs, seeking prospective businesses – varies throughout Kentucky, Brinly said.

The WIA format in the Louisville area is run by the Louisville mayor’s office. Workforce efforts in eastern Kentucky are coordinated through a nonprofit organization, Brinly said. Those options are possible locally, she said, though discounting a proposal by Hart County Judge-Executive Terry Martin where Hart County would take only the money due it to run a one-county program, saying it would be too small.

“If the fiscal agent can’t be responsible, then it is the chief local official,” Brinly said.

Allen County Judge-Executive Johnny Hobdy is the recently elected chairman of the BRLOO and considered the chief local official for the region in that role, officials said, as the federal government recognizes the pecking order.

The federal Workforce Innovation and Opportunity Act awaits President Obama’s signature. The federal act provides future funding for workforce development. Kentucky has positioned itself to benefit from the new federal legislation, shifting its focus from delivering workforce development as a social-services approach to an approach that is driven by the employers in the commonwealth who need people to fill vacancies at their operations, Brinly said.

Brinly said the new federal legislation is expected to affect Kentucky on July 1, 2016. The federal workforce development focus is stronger – and more money is allotted – for displaced youth than the existing federal law, the commissioner said.

Gov. Steve Beshear announced the realignment earlier this year, and Brinly said the state has standardized its brand, calling everything Kentucky Career Center and using one logo.

“We can work this out,” Barren County Judge-Executive Davie Greer said. “I don’t want to see four counties pull out. Let’s talk this over until the last minute.”

— Follow reporter Chuck Mason on Twitter at twitter.com/bgdnschools or visit bgdailynews.com.