ESD's administration of the Training Benefits Program complies with
statute. However, the Program caused most participants to earn less than their peers
over time.
December 2021
Executive Summary
The Legislature created the Training Benefits Program (Program) in 2000. The
Legislature's stated intent was to make retraining available to unemployed individuals
whose skills were no longer in demand, target training to high-demand occupations, and
enhance the individual's marketable skills and earning power.
The 2011 Legislature directed the Joint Legislative Audit and Review Committee
(JLARC) to review the Program every five years. The review must include compliance
with legislative intent, effectiveness in improving employment outcomes, efficiency,
and recommendations for improvement. JLARC's first review was completed in 2016.
Training Benefits Program administration complies with legal requirements
Training Benefits Program Averages
for Fiscal Years 2016-19
1,480 applications approved per year.
$10.4M paid per year.
$0.95M administration costs per year.
The Employment Security Department (ESD) administers the Program, which provides up
to 26 additional weeks of unemployment benefits to participants while they train for
high-demand occupations. Participants must enroll in an approved training program and
maintain satisfactory progress to receive benefits. The Program does not pay for the
cost of tuition, fees, or books. Participants are not required to search for work
while enrolled in the Program.
Statute (RCW 50.22.155) specifies criteria that ESD staff must use for determining
whether an applicant is eligible for the Program. ESD requires staff to verify the
information and has technology in place to ensure that staff comply with the agency's
application review procedures.
ESD implemented the majority of the 2016 JLARC recommendations
JLARC's 2016 report recommended that ESD develop a plan and associated cost estimate to
improve its Program administration in four areas. ESD has taken steps to implement the
recommendations.
2016 Recommendation
Current Status
Improve guidance to partners (i.e., WorkSource and Community and Technical
Colleges)
Implemented. ESD reinstated funding for its positions at colleges,
provided training, and holds regular information sharing meetings.
Establish quality assurance review
Implemented. ESD created a tool and process to ensure consistent
decisions about applications. ESD suspended the process during the
pandemic.
Improve timeliness of decisions
Partially implemented. ESD took steps to improve timeliness, but time
to adjudicate continues to vary.
Clarify application
Partially implemented. ESD revised the application but did not change
certain questions that participants found confusing.
The Training Benefits Program caused most participants to earn less than their peers
over time
ESD conducted a net impact analysis to determine whether participants had better
earnings outcomes than nonparticipants. The evaluation estimates the effects of the
Program for 30,164 people who began participating between 2002 and 2016. The analysis
found that the Program caused participants to earn less than their nonparticipating
peers.
For participants who enrolled after 2003, earnings dropped sharply during
training, then lagged nonparticipating peers' earnings in the years after
training.
Overall, in the years after training, participants earned an average of
$3,621 less per year than their nonparticipating peers.
JLARC staff worked with a consulting labor economist who independently concluded that
ESD's methods were credible.
ESD and its partners provide resources, but applicants must determine risk of
reduced earnings
ESD, WorkSource, and the Community and Technical Colleges (CTC) staff offer resources
to inform applicants about the application process and to help them identify eligible
careers and training. However, applicants are responsible for researching the options,
choosing the career or training program, and assessing risks associated with
retraining. Risks include foregoing earnings while training without a guarantee of
higher wages in the future. ESD and partner agency staff do not advise applicants on
these matters.
Legislative Auditor recommendations
Because the Training Benefits Program is not meeting the Legislature's stated
objective to enhance participants’ earning power, the Legislature should consider
eliminating or modifying the Program.
Preliminary Report: Unemployment Insurance Training Benefits Program
December 2021
Report Details
1. Program provides extended unemployment benefits
Training Benefits Program provides extended unemployment payments
In 2000, the Legislature created the Training Benefits Program (Program) within the
Employment Security Department (ESD). The 2011 Legislature directed the Joint
Legislative Audit and Review Committee (JLARC) to evaluate the Program every five years.
The evaluation must include compliance with legislative intent, effectiveness, and
efficiency. This is JLARC's second review.
Training Benefits Program provides extended unemployment payments
The Program provides up to 26 additional weeks of unemployment benefits to participants
while they train for high-demand occupations.Occupations are determined by local workforce development
councils, with assistance from ESD economists. Examples of current
high-demand occupations are medical assistants, HVAC installers, and computer user
support specialists.
Participants must enroll in an approved vocational training program and maintain
satisfactory progress to receive benefits. Participants are not required to search for
work while enrolled in training.
The Program does not pay for the cost of tuition, fees, or books.
From fiscal year 2016 through 2019, ESD approved an average of 1,480 applicants each
year. These participants received an average of 16 weeks of additional unemployment
benefits.
Employer taxes fund the training benefits
ESD pays benefits to participants from the Unemployment Insurance Trust Fund. The fund
paid an annual average of $10.4 million in training benefits from fiscal year 2016
through fiscal year 2019.
The Program is funded by the shared (social) componentTax based on costs that are not attributed to a specific
employer. of the unemployment tax paid by Washington employers.
Employers do not pay an increased tax rate if former employees participate in the
Program. Due to the COVID-19 pandemic, the 2021 Legislature capped the social tax rate
at 0.5% in 2021, with the rate increasing gradually to 0.9% in 2025.
ESD spends about $1 million per year to administer the Program. This is paid from ESD's
Employment Services Administrative Account.
Preliminary Report: Unemployment Insurance Training Benefits Program
December 2021
Report Details
2. Participants earned less than peers over time
The Training Benefits Program caused most participants to earn
less than their peers over time
The Legislature's stated intent for the Training Benefits Program (Program) includes
enhancing the earning power of participants (RCW
50.22.130).
ESD conducted net impact analyses in 2015 and in 2021 to evaluate effects on
participants' earnings
In 2015, the Employment Security Department (ESD) released a net impact analysis of the
Program. It found that participants who enrolled in 2002 and 2003 experienced higher
earnings after training and that those who enrolled in later years did not. Overall,
ESD's 2015 analysis found that participants earned an average of $482 less per year than
their peers who did not participate.
JLARC's 2016 report noted that additional research was required to know whether the
results were caused by poor macroeconomic conditions during the Great Recession, as
suggested by ESD, or by other factors. The Legislative Auditor recommended that ESD
explore possible causes why the Program did not have more positive impacts on
participants' employment and earnings.
In response to this recommendation, ESD conducted a follow-up net impact analysis of
the Program in 2021 (see Appendix
A). The 2021 analysis estimates the causal effects of participation for 30,164
people who enrolled in the Program between 2002 and 2016. ESD included additional data
for the 2021 analysis, such as participants' educational histories.
Independent review by JLARC contractor concluded that ESD's 2021 evaluation methods
are credible
ESD used a statistical matching method to compare participants to nonparticipantsPeople who claimed unemployment insurance
and did not participate in the Training Benefits Program. who had
similar personal characteristics and work histories (peers). The analysis grouped
participants and nonparticipants into cohorts according to the year they enrolled. After
matching, ESD's economists used regression models to estimate the effect of
participation on earnings and employment.
JLARC staff contracted with an economist with the W.E. Upjohn Institute for Employment
Research to independently review ESD's net impact analysis (see Appendix
B). The economist had a high level of confidence in ESD's methods and results.
ESD's 2021 net impact analysis found that, in general, the Program did not enhance
participants' earning power
ESD's 2021 net impact analysis compared participants' earnings to the nonparticipants'
earnings. Most participants who enrolled after 2003 experienced a sharp drop in earnings
during training. Their earnings lagged nonparticipating peers' earnings in the years
after training. The cumulative earnings for participants was less than nonparticipants
for each cohortGroup based on enrollment
year.. The repetition of this pattern across cohorts and the use of
statistical regression analysis confirms that the negative effect on earnings reflects
the Program and is not a result of methodology choice, random chance, or the effects of
the Great Recession.
Exhibit 2.1: Over time, those who enrolled after 2003 earned less (cumulatively) than
their peers
Source: 2021 ESD net impact analysis report. All figures are stated as 2016 dollars.
The net impact results do not include additional unemployment benefits paid to Program
participants.
Participants have lower average annual earnings
Participants who enrolled in 2002 and 2003 experienced higher earnings than
nonparticipating peers. Even when including the positive results for the 2002 and 2003
cohorts, the Program caused participants to earn an average of $3,621 less per year.
This average loss in yearly earnings is the overall effect of the Program for all
cohorts and all years of earnings data.
ESD also estimated the effect of the Program on participants' likelihood of being
employed. Over time, participants surpassed their peers in likelihood of being
employed.
Younger and lower income participants had better earnings outcomes. Outcomes did not
vary by type of training.
ESD's 2021 net impact analysis analyzed the differential effects of the Program by age,
income, and type of training on participants' earnings. ESD found that:
Younger participants were more likely to experience positive earnings outcomes. For
example,
54% of participants under 36 earned more than their peers over time. In
contrast, 10% of participants over 46 earned more than their peers over time.
On average, participants under 36 earned $239 more per year compared to
nonparticipating peers. Participants over 46 earned $16,508 less per year.
Participants who earned lower wages before training (relative to other participants)
were more likely to experience better earnings outcomes.
The top 20 most popular types of training all yielded negative average earnings
results for the whole population. Participants who trained for certain occupations in
the health care, education, and protective servicesHomeland security, law enforcement, firefighting, and related
protective services. industries had less negative outcomes compared
to participants who trained for other occupations.
Evaluations of similar programs also found negative effects on participants'
earnings
ESD and JLARC staff separately reviewed the literature that evaluated retraining
programs similar to the Training Benefits Program. Other evaluations indicate that
participants in career retraining programs generally lose earnings while they complete
training and do not make up lost earnings after their training is complete.
JLARC staff also found that:
Retraining programs generally improved the chance that participants found work after
retraining.
Participants in a New Orleans program with more targeted career paths experienced
positive earnings outcomes. Specifically, the program required training in advanced
manufacturing, health care, or information technology.
ESD and its partners provide resources, but applicants must determine risk of reduced
earnings
ESD, WorkSourceStatewide partnership
that provides one-stop employment and training services to job seekers and
employers., and the Community and Technical Colleges have
knowledgeable staff and resources to advise Program applicants, including academic
advising. Staff direct potential unemployment insurance claimants who are considering
applying for the Program to key resources, including:
The Eligible Training Provider list: A list of all training programs eligible for
training benefits participants. The list is maintained by the Workforce Training and
Education Coordinating Board.
The Occupations in Demand list: A list of occupations that
are in demand or in decline. The list, which is maintained by ESD, is used to
determine which occupations participants can train for.
Staff also help claimants navigate the Program's application requirements. ESD and
partner agency staff do not advise claimants about choosing an in-demand career or
training program. Applicants are responsible for researching and choosing careers. They
also must assess the risks associated with retraining, such as a foregoing earnings
while studying without the guarantee of increased wages in the future. When reviewing
applications, ESD's Program adjudicators determine if the applicant has selected an
in-demand career, has an approved training program, and has a financial plan in place.
Legislative Auditor recommendation
Because the Training Benefits Program is not meeting the Legislature's stated objective
to enhance participants’ earning power, the Legislature should consider eliminating or
modifying the Program.
Preliminary Report: Unemployment Insurance Training Benefits Program
December 2021
Report Details
3. Most 2016 JLARC recommendations implemented
Training Benefits Program complies with legal requirements. ESD
implemented the majority of 2016 JLARC recommendations.
The Legislature directed JLARC to evaluate the Training Benefit Program’s (Program)
compliance with legislative intent, effectiveness, and efficiency, every five years.
Training Benefits Program meets statutory requirements
The Legislature's stated intent for the Program includes retraining unemployed
individuals whose skills are no longer in demand and targeting the training to
high-demand occupations (RCW
50.22.130). The structure and implementation of the Program meet the intent.
ESD staff review applications for consistency with statutory criteria
Training benefits are available to any unemployment insurance claimant who meets the
statutory criteria stated in RCW
50.22.155. These criteria include:
The applicant’s prior occupation is in decline.
The applicant needs training to find suitable employment.
The training will lead to a high-demand occupation.
The training meets Workforce Training and Education
Coordinating BoardGovernor-appointed board addressing
workforce development in the state. performance criteria.
To apply for the Program, claimants fill out an application form and submit it to the
Employment Security Department (ESD). Applicants must indicate how they meet the
criteria and explain how they will complete their chosen training program. ESD
partners with WorkSourceStatewide
partnership that provides one-stop employment and training services to job seekers
and employers. and the Community and Technical Colleges to assist
applicants with the forms and process.
Program staff at ESD are responsible for approving or rejecting Program applications.
ESD requires staff adjudicators to independently verify the information submitted by
applicants. ESD's information technology systems provide links to the necessary
resources and enforce staff compliance through mandatory fields and checklists.
Between 2016 and 2020, ESD staff adjudicators denied 65% of applications.
ESD staff monitor participants' progress
Participants must maintain satisfactory progress in their training program to receive
benefits. ESD has a process to ensure that participants are making satisfactory
progress. ESD requires participants to submit progress
formsThis requirement was temporarily suspended during
the COVID-19 pandemic. signed by the registrar at their training
institutions. ESD adjudicators review the progress forms to ensure compliance.
2016 JLARC recommended improvements to Program administration
JLARC published its first report in 2016 and recommended that the Employment Security Department
(ESD) develop a plan to improve its program administration. Specifically, the JLARC
report recommended that ESD:
Improve guidance to partners.
Establish quality assurance review.
Improve the timeliness of decisions.
Improve the application form.
ESD has implemented a number of changes to address the recommendations.
ESD has improved guidance to partners
The ESD staff partner with staff at WorkSource and the Community and Technical
Colleges to serve potential applicants. WorkSource and college staff may inform
potential applicants about the Program, assist them in selecting retraining options,
and help them complete the application.
As shown in the table, ESD improved its guidance, as recommended in the 2016 audit.
In addition, the Program's manager began attending quarterly meetings with staff from
WorkSource and the colleges in July 2019. The meeting is a forum to update partners
about changes to procedures and application adjudication times. It is also an
opportunity for partners to ask questions.
Exhibit 3.1: JLARC's 2016 audit suggested that ESD improve its guidance to partners.
ESD has done so.
ESD Partner
Partner’s Role
2016 Status
Current Status
WorkSource centers
Tell recently unemployed workers about the Program and
help them with the application process.
ESD no longer provided training or program updates to
WorkSource staff.
ESD staff delivered trainings in 2018 and 2020.
Community and Technical Colleges
Tell students about the Program and provide training
to participants.
In 2005, ESD eliminated funding for staff positions at
the colleges. The staff had assisted program applicants.
ESD reinstated funding for some positions.
Source: JLARC staff analysis.
ESD implemented quality review procedures
Prompted by JLARC's 2016 recommendation, ESD instituted a process to ensure that
application adjudication decisions are consistent. Program staff created a quality
assurance tool based on the tool used in the regular unemployment insurance claims
unit.
The Training Benefits Program supervisor conducted two formal quality reviews per
week per adjudicator until December 2019. However, ESD reports that the quality
assurance process was suspended due to the large number of applications received, and
has not been restarted during the COVID-19 pandemic.
Despite changes to improve timeliness, average adjudication times continue to vary
Federal guidelines set a target of 21 days for determining whether an applicant is
eligible for extended benefit programs such as training benefits. Prior to the 2016
JLARC report, the average time for ESD staff to adjudicate an application for training
benefits fluctuated between five and 66 days.
Since 2016, ESD has taken a number of steps to improve timeliness, including:
Training staff who work in the main unemployment insurance claims unit to
adjudicate Program applications. These adjudicators can provide additional staff
capacity when program application volumes are high, such as before the start of each
academic quarter.
Appointing an acting supervisor to monitor productivity and set timeliness
expectations.
Addressing high turnover among Program staff by raising the starting salaries of
new adjudicators. Prior to the raise, Training Benefits Program adjudicators were
paid less than adjudicators in the main claims adjudication unit.
Implementing a new unemployment insurance claims processing system in January
2017.
Despite these changes, average adjudication times have fluctuated, as shown in
Exhibit 2.2.
Exhibit 3.2: The average length of time to adjudicate Program applications has
fluctuated since 2016
Source: JLARC staff analysis of ESD data.
ESD revised the application but did not address application issues noted in JLARC
report
In 2016, participants and WorkSource staff told JLARC staff that the application
contained confusing questions. JLARC staff also found that the application was longer
than those for similar programs in other states. Following JLARC's 2016 report, ESD
updated the application. However, the changes were minor and did not address the
questions that applicants found confusing.
Preliminary Report: Unemployment Insurance Training Benefits Program
December 2021
Report Details
Appendix A: ESD net impact analysis
ESD conducted a net impact analysis in 2021 to evaluate effects
on participants' earnings
The Employment Security Department (ESD) conducted a net impact analysis of the
Program in 2021. The 2021 analysis estimates the causal effects of participation for
30,164 people who enrolled in the Program between 2002 and 2016.
Preliminary Report: Unemployment Insurance Training Benefits Program
December 2021
Report Details
Appendix B: Independent review of ESD analysis
Independent review by JLARC contractor concluded that ESD's 2021
evaluation methods are robust
JLARC staff contracted with an economist with the W.E. Upjohn Institute for
Employment Research to independently review the Employment Security Department's (ESD)
net impact analysis. The economist had a high level of confidence in ESD's methods and
results.
Preliminary Report: Unemployment Insurance Training Benefits Program
December 2021
Report Details
Appendix C: Applicable statutes
RCW 50.22.130, 50.22.155
Training benefits program—Intent
RCW 50.22.130
It is the intent of the legislature that a training benefits program be established to
provide unemployment insurance benefits to unemployed individuals who participate in
training programs necessary for their reemployment. The legislature further intends that
this program serve the following goals:
(1) Retraining should be available for those unemployed individuals whose skills are no
longer in demand;
(2) Training must enhance the individual's marketable skills and earning power; and
(3) Retraining must be targeted to high-demand occupations.
The legislature further intends that funding for this program be limited by a specified
maximum amount each fiscal year.
Training benefits—Claims effective on or after April 5,
2009—Eligibility—Definitions—Role of local workforce development councils—Rules
RCW 50.22.155
(1) With respect to claims with an effective date on or after April 5, 2009, and before
July 1, 2012:
(a) Subject to availability of funds, training benefits are available for an individual
who is eligible for or has exhausted entitlement to unemployment compensation benefits
when:
(i) The individual is a dislocated worker as defined in RCW 50.04.075 and, after
assessment of the individual's labor market, occupation, or skills, is determined to
need job-related training to find suitable employment in the individual's labor market.
The assessment of demand for the individual's occupation or skill sets must be
substantially based on declining occupation or skill sets and high-demand occupations
identified in local labor market areas by the local workforce development councils in
cooperation with the employment security department and its labor market information
division; or
(ii) For claims with an effective date on or after September 7, 2009, the individual:
(A) Earned an average hourly wage in the individual's base year that is less than one
hundred thirty percent of the state minimum wage and, after assessment, it is determined
that the individual's earning potential will be enhanced through vocational training.
The individual's average hourly wage is calculated by dividing the total wages paid by
the total hours worked in the individual's base year;
(B) Served in the United States military or the Washington national guard during the
twelve-month period prior to the application date, was honorably discharged from
military service or the Washington national guard and, after assessment, is determined
to need job-related training to find suitable employment in the individual's labor
market;
(C) Is currently serving in the Washington national guard and, after assessment, is
determined to need job-related training to find suitable employment in the individual's
labor market; or
(D) Is disabled due to an injury or illness and, after assessment, is determined to be
unable to return to his or her previous occupation and to need job-related training to
find suitable employment in the individual's labor market.
(b)(i) The individual must develop an individual training program that is submitted to
the commissioner for approval within ninety days after the individual is notified by the
employment security department of the requirements of this section;
(ii) The individual must enter the approved training program by one hundred twenty days
after the date of the notification, unless the employment security department determines
that the training is not available during the one hundred twenty days, in which case the
individual enters training as soon as it is available;
(iii) The department may waive the deadlines established under this subsection for
reasons deemed by the commissioner to be good cause.
(c) The individual must be enrolled in training approved under this section on a
full-time basis as determined by the educational institution, except that less than
full-time training may be approved when the individual has a physical, mental, or
emotional disability that precludes enrollment on a full-time basis.
(d) The individual must make satisfactory progress in the training as defined by the
commissioner and certified by the educational institution.
(e) An individual is not eligible for training benefits under this section if he or
she:
(i) Is a standby claimant who expects recall to his or her regular employer; or
(ii) Has a definite recall date that is within six months of the date he or she is laid
off.
(f) The following definitions apply throughout this subsection (1) unless the context
clearly requires otherwise.
(i) "Educational institution" means an institution of higher education as defined in
RCW 28B.10.016 or an educational institution as defined in RCW 28C.04.410, including
equivalent educational institutions in other states.
(ii) "High-demand occupation" means an occupation with a substantial number of current
or projected employment opportunities.
(iii) "Training benefits" means additional benefits paid under this section.
(iv) "Training program" means:
(A) An education program determined to be necessary as a prerequisite to vocational
training after counseling at the educational institution in which the individual enrolls
under his or her approved training program; or
(B) A vocational training program at an educational institution that:
(I) Is targeted to training for a high-demand occupation;
(II) Is likely to enhance the individual's marketable skills and earning power; and
(III) Meets the criteria for performance developed by the workforce training and
education coordinating board for the purpose of determining those training programs
eligible for funding under Title I of P.L. 113-128.
"Training program" does not include any course of education primarily intended to meet
the requirements of a baccalaureate or higher degree, unless the training meets specific
requirements for certification, licensing, or for specific skills necessary for the
occupation.
(g) Benefits shall be paid as follows:
(i) The total training benefit amount shall be fifty-two times the individual's weekly
benefit amount, reduced by the total amount of regular benefits and extended benefits
paid, or deemed paid, with respect to the benefit year.
(ii) The weekly benefit amount shall be the same as the regular weekly amount payable
during the applicable benefit year and shall be paid under the same terms and conditions
as regular benefits.
(iii) Training benefits shall be paid before any extended benefits but not before any
similar federally funded program. Effective July 3, 2011, training benefits shall be
paid after any federally funded program.
(iv) Training benefits are not payable for weeks more than two years beyond the end of
the benefit year of the regular claim. However, training benefits are not payable for
weeks more than three years beyond the end of the benefit year of the regular claim when
individuals are eligible for benefits in accordance with RCW 50.22.010 (2)(b) or (3)(b).
(h) The requirement under RCW 50.22.010(10) relating to exhausting regular benefits
does not apply to an individual otherwise eligible for training benefits under this
section when the individual's benefit year ends before his or her training benefits are
exhausted and the individual is eligible for a new benefit year. These individuals will
have the option of remaining on the original claim or filing a new claim.
(i) Individuals who receive training benefits under RCW 50.22.150 or this section are
not eligible for training benefits under this section for five years from the last
receipt of training benefits.
(j) An individual eligible to receive a trade readjustment allowance under chapter 2,
Title II of the trade act of 1974, as amended, shall not be eligible to receive benefits
under this section for each week the individual receives such trade readjustment
allowance.
(k) An individual eligible to receive emergency unemployment compensation under any
federal law shall not be eligible to receive benefits under this section for each week
the individual receives such compensation.
(l) All base year employers are interested parties to the approval of training and the
granting of training benefits.
(m) Each local workforce development council, in cooperation with the employment
security department and its labor market information division, must identify occupations
and skill sets that are declining and high-demand occupations and skill sets. Each local
workforce development council shall update this information annually or more frequently
if needed.
(2) With respect to claims with an effective date on or after July 1, 2012:
(a) Training benefits are available for an individual who is eligible for or has
exhausted entitlement to unemployment compensation benefits when:
(i) The individual is a dislocated worker as defined in RCW 50.04.075 and, after
assessment of the individual's labor market, occupation, or skills, is determined to
need job-related training to find suitable employment in the individual's labor market.
The assessment of demand for the individual's occupation or skill sets must be
substantially based on declining occupation or skill sets and high-demand occupations
identified in local labor market areas by the local workforce development councils in
cooperation with the employment security department and its labor market information
division; or
(ii) Subject to the availability of funds as specified in RCW 50.22.140, the
individual:
(A) Earned an average hourly wage in the individual's base year that is less than one
hundred thirty percent of the state minimum wage and, after assessment, it is determined
that the individual's earning potential will be enhanced through vocational training.
The individual's average hourly wage is calculated by dividing the total wages paid by
the total hours worked in the individual's base year;
(B) Served in the United States military or the Washington national guard during the
twelve-month period prior to the application date, was honorably discharged from
military service or the Washington national guard and, after assessment, is determined
to need job-related training to find suitable employment in the individual's labor
market;
(C) Is currently serving in the Washington national guard and, after assessment, is
determined to need job-related training to find suitable employment in the individual's
labor market; or
(D) Is disabled due to an injury or illness and, after assessment, is determined to be
unable to return to his or her previous occupation and to need job-related training to
find suitable employment in the individual's labor market.
(b)(i) Except for an individual eligible under (a)(i) of this subsection, the
individual must develop an individual training plan that is submitted to the
commissioner for approval within ninety days after the individual is notified by the
employment security department of the requirements of this section;
(ii) Except for an individual eligible under (a)(i) of this subsection, the individual
must enroll in the approved training program by one hundred twenty days after the date
of the notification, unless the employment security department determines that the
training is not available during the one hundred twenty days, in which case the
individual enters training as soon as it is available;
(iii) An individual eligible under (a)(i) of this subsection must submit an individual
training plan and enroll in the approved training program prior to the end of the
individual's benefit year;
(iv) The department may waive the deadlines established under (b)(i) and (ii) of this
subsection for reasons deemed by the commissioner to be good cause.
(c) Except for an individual eligible under (a)(i) of this subsection, the individual
must be enrolled in training approved under this section on a full-time basis as
determined by the educational institution, except that less than full-time training may
be approved when the individual has a physical, mental, or emotional disability that
precludes enrollment on a full-time basis.
(d) The individual must make satisfactory progress in the training as defined by the
commissioner and certified by the educational institution.
(e) An individual is not eligible for training benefits under this section if he or
she:
(i) Is a standby claimant who expects recall to his or her regular employer; or
(ii) Has a definite recall date that is within six months of the date he or she is laid
off.
(f) The following definitions apply throughout this subsection (2) unless the context
clearly requires otherwise:
(i) "Educational institution" means an institution of higher education as defined in
RCW 28B.10.016 or an educational institution as defined in RCW 28C.04.410, including
equivalent educational institutions in other states.
(ii) "High-demand occupation" means an occupation with a substantial number of current
or projected employment opportunities.
(iii) "Training benefits" means additional benefits paid under this section.
(iv) "Training program" means:
(A) An education program determined to be necessary as a prerequisite to vocational
training after counseling at the educational institution in which the individual enrolls
under his or her approved training program; or
(B) A vocational training program at an educational institution that:
(I) Is targeted to training for a high-demand occupation;
(II) Is likely to enhance the individual's marketable skills and earning power; and
(III) Meets the criteria for performance developed by the workforce training and
education coordinating board for the purpose of determining those training programs
eligible for funding under Title I of P.L. 113-128.
"Training program" does not include any course of education primarily intended to meet
the requirements of a baccalaureate or higher degree, unless the training meets specific
requirements for certification, licensing, or for specific skills necessary for the
occupation.
(g) Available benefits shall be paid as follows:
(i) The total training benefit amount shall be fifty-two times the individual's weekly
benefit amount, reduced by the total amount of regular benefits paid, or deemed paid,
with respect to the benefit year.
(ii) The weekly benefit amount shall be the same as the regular weekly amount payable
during the applicable benefit year and shall be paid under the same terms and conditions
as regular benefits.
(iii) Training benefits shall be paid after any federally funded program.
(iv) Training benefits are not payable for weeks more than two years beyond the end of
the benefit year of the regular claim. However, training benefits are not payable for
weeks more than three years beyond the end of the benefit year of the regular claim when
individuals are eligible for benefits in accordance with RCW 50.22.010 (2)(b) or (3)(b).
(h) The requirement under RCW 50.22.010(10) relating to exhausting regular benefits does
not apply to an individual otherwise eligible for training benefits under this section
when the individual's benefit year ends before his or her training benefits are
exhausted and the individual is eligible for a new benefit year. These individuals will
have the option of remaining on the original claim or filing a new claim.
(i) Except for individuals eligible under (a)(i) of this subsection, individuals who
receive training benefits under RCW 50.22.150 or this section are not eligible for
training benefits under this section for five years from the last receipt of training
benefits.
(j) An individual eligible to receive a trade readjustment allowance under chapter 2,
Title II of the trade act of 1974, as amended, shall not be eligible to receive benefits
under this section for each week the individual receives such trade readjustment
allowance.
(k) An individual eligible to receive emergency unemployment compensation under any
federal law shall not be eligible to receive benefits under this section for each week
the individual receives such compensation.
(l) All base year employers are interested parties to the approval of training and the
granting of training benefits.
(m) Each local workforce development council, in cooperation with the employment
security department and its labor market information division, must identify occupations
and skill sets that are declining and high-demand occupations and skill sets. Each local
workforce development council shall update this information annually or more frequently
if needed.
(3) The commissioner shall adopt rules as necessary to implement this section.
Preliminary Report: Unemployment Insurance Training Benefits Program
December 2021
Recommendations & Responses
Legislative Auditor Recommendation
The Legislative Auditor makes one recommendation regarding the
Training Benefits Program
Recommendation #1: Because the Training Benefits Program is not meeting the
Legislature’s stated objective to enhance participants’ earning power, the Legislature
should consider eliminating or modifying the Program.
If the Legislature eliminates the Program, the Employment Security Department
(ESD) should reduce the flat social tax rate to a level reflecting a commensurate
reduction in expenditures.
If the Legislature modifies the Program, modifications could include:
Limiting career retraining options to higher-wage occupations, such as information
technology, advanced manufacturing, and certain healthcare occupations.
Limiting program eligibility to workers who earned lower wages before becoming
unemployed.
Requiring ESD and its partners to provide applicants with advisory information
about the potential for foregone earnings while in training without the guarantee of
increased wages in the future.
Legislation Required:
Yes
Fiscal Impact:
Depends on legislative decision.
Implementation Date:
As determined by the Legislature.
Agency Response:
To be included with Proposed Final Report.
Preliminary Report: Unemployment Insurance Training Benefits Program
December 2021
Recommendations & Responses
Agency Response
Agency response(s) will be included in the proposed final report, planned for January
5, 2022.
Preliminary Report: Unemployment Insurance Training Benefits Program
December 2021
Recommendations & Responses
Current Recommendation Status
JLARC staff follow up with agencies on Legislative Auditor recommendations for four
years. Responses from agencies on the latest status of implementing recommendations
for this report will be available in 2023.
Preliminary Report: Unemployment Insurance Training Benefits Program
December 2021
More About This Review
Audit Authority
The Joint Legislative Audit and Review Committee (JLARC) works to make state
government operations more efficient and effective. The Committee is comprised of an
equal number of House members and Senators, Democrats and Republicans.
JLARC's nonpartisan staff auditors, under the direction of the Legislative Auditor,
conduct performance audits, program evaluations, sunset reviews, and other analyses
assigned by the Legislature and the Committee.
The statutory authority for JLARC, established in Chapter 44.28 RCW,
requires the Legislative Auditor to ensure that JLARC studies are conducted in
accordance with Generally Accepted Government Auditing Standards, as applicable to the
scope of the audit. This study was conducted in accordance with those applicable
standards. Those standards require auditors to plan and perform audits to obtain
sufficient, appropriate evidence to provide a reasonable basis for findings and
conclusions based on the audit objectives. The evidence obtained for this JLARC report
provides a reasonable basis for the enclosed findings and conclusions, and any
exceptions to the application of audit standards have been explicitly disclosed in the
body of this report.
Preliminary Report: Unemployment Insurance Training Benefits Program
December 2021
More About This Review
Study Questions
Click image to view PDF of proposed study questions.
Preliminary Report: Unemployment Insurance Training Benefits Program
December 2021
More About This Review
Methodology
The methodology JLARC staff use when conducting analyses is tailored to the scope of
each study, but generally includes the following:
Interviews with stakeholders, agency representatives, and other
relevant organizations or individuals.
Site visits to entities that are under review.
Document reviews, including applicable laws and regulations,
agency policies and procedures pertaining to study objectives, and published
reports, audits or studies on relevant topics.
Data analysis, which may include data collected by agencies
and/or data compiled by JLARC staff. Data collection sometimes involves surveys or
focus groups.
Consultation with experts when warranted. JLARC staff consult
with technical experts when necessary to plan our work, to obtain specialized
analysis from experts in the field, and to verify results.
The methods used in this study were conducted in accordance with Generally Accepted
Government Auditing Standards.
More details about specific methods related to individual study objectives are
described in the body of the report under the report details tab or in technical
appendices.
Preliminary Report: Unemployment Insurance Training Benefits Program