Identifying and Leveraging Multiple Sources of Funding
Local workforce development is funded by federal, state, and local government programs, as well as private and nonprofit 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
- 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
- Performance-based funding, which distributes funds based on participant outcomes (e.g., completion or earnings) rather than outputs (e.g., enrollment numbers)
- Public-private funding, where activities or programs are funded by a partnership between employers or philanthropies and public entities
Local workforce system programs and services rely on various funding sources to provide workers with the resources and opportunities they need. This often means leveraging federal program funds with other state and local government and community resources.