HD3 - The CETA Program Administered by Virginia's Balance-of-State Prime Sponsors

  • Published: 1983
  • Author: Joint Legislative Audit and Review Commission
  • Enabling Authority: House Joint Resolution 268 (Regular Session, 1981)

Executive Summary:
House Joint Resolution 268 of the 1981 session of the General Assembly directed the Joint Legislative Audit and Review Commission to study the CETA program operated by State agencies. This report responds to that mandate and offers a number of recommendations for improving program outcomes and operations.

The Comprehensive Employment and Training Act (CETA) provides federal funding for training programs aimed at improving the employment rate and earnings of economically disadvantaged persons. CETA funds in Virginia are administered by 11 local and State government prime sponsors. The Commonwealth of Virginia is the largest prime sponsor with administrative responsibility assigned to the Virginia Employment Commission (VEC).

The CETA program is now undergoing major changes at the federal level. Officials are proposing sharply decreased funding levels and an increased role for state governments. The Commonwealth will need to evaluate client outcomes and management processes to ensure that limited funds are used more effectively.

In general, the CETA program operated by the VEC has been able to get jobs for about half of all adult clients. The quality of jobs and job retention rates, however, have been low. In some cases, program operators appear to have benefited more than program participants. And in some instances, positive results were negligible and program costs were exceptionally high. The VEC could get better results with shrinking program dollars by improving program management. Key administrative issues that need to be addressed include the awarding of training contracts based on performance standards, increased documentation of costs and program operations, and more effective use of oversight and accountability mechanisms.

Following the staff report on the VEC program, the commission appointed a subcommittee to review the operations of Virginia's ten local prime sponsors. This review is included in the appendix to the report. The final report was accepted by the commission on May 10, 1982.