Identifying and Leveraging Multiple Sources of Funding
Local workforce system programs and services rely on various funding sources from federal, state, and local government, as well as funding from private sources.
Local workforce development organizations and policymakers overseeing workforce funding streams use a variety of funding models and initiatives, including the following:
- Blended and braided funding, where individual organizations leverage multiple public and private funding streams to provide a set of programs and services
- Collaborative funding models, which pool funding from various foundations and philanthropies to support programs and initiatives with similar models or goals
- Performance-based funding, which distributes funds based on participant outcomes (such as completion or earnings) rather than outputs (such as enrollment numbers)
- Public-private funding, where activities or programs are funded by a partnership between employers or philanthropies and public entities
- Social impact bonds, which use private-sector investor funds for workforce programs to create improved outcomes and pass on part of the savings achieved to investors