Employment Ontario Employment Service – Funding Model

1. Employment Ontario Employment Service – Funding Model Update for Service Delivery Advisory Group August 18, 2009

2. PURPOSE • To provide an update on the Employment Service Funding Model 2

3. CONTEXT AND BACKGROUND The Funding Model for the Employment Services was guided by the following principles and criteria, developed by the internal and external stakeholder reference groups: Transparency Enables effective responsiveness to and anticipation of local labour market needs Flexible AND accountable to respect a variety of service approaches that are necessary to meet identified needs, and to accommodate regional, community and labour market differences to recognize the relationship between organizational/system stability and results and innovation Recognizes that responsibility for management of the delivery of employment services rests with the service provider Commits to organizational capacity building and support for continuous improvement Supports the need for multiple access points and service coordination as an integral service component

4. FUNDING MODEL A number of funding models were researched and reviewed, including the funding models previously supporting Job Connect, Employment Assistance Services, Targeted Wage Subsidy and Ontario Works: Operating Grants Fee for Service Funding Results Based Funding Project Based Funding Feepayer Services Base Operating Combined with Additional Funding for number of Contact Hours Voucher System Based on analysis of all 2008-09 Job Connect/SJS and EAS contracts, the minimum per person cost for provision of services that could be compared to the full suite ES model was $750 and the maximum was $2800.

5. OPERATING BUDGET Stakeholders provided feedback that the impact of the additional requirements of supporting Second Career and Ontario Skills Development applications along with the current economic realities would require increase in the funding ranges to meet standards of service delivery expected. Funding ranges have been increased by 5% to support the strengthened connection between Employment Service and Employment Ontario training programs The breakdown of new operating funding ranges by activity levels is outlined below.

6. TRAINING SUBSIDY AND SUPPORT ALLOWANCE BUDGET The Targeted Wage Subsidy Program and Job Connect included hiring/training incentives for employers. A much larger proportion of JC clients accessed employer subsidies than comparative proportion of EAS to TWS clients.

7. OPERATING AND SUBSIDIES/SUPPORTS OPERATING FUNDS Provides funding to: Deliver “assisted” Employment Service to negotiated service level Provide RI component Meet Provincial Service Quality Standard (Targets 2009 -11) EMPLOYMENT & TRAINING INCENTIVES • Up to $8000 for on-the-job training placement • Flow through funds EMPLOYMENT & TRAINING SUPPORTS • Financial supports (up to $500) to remove barriers to job search (i.e. certification, transportation, work boots, temporary childcare) • Based on need and LICO level • Flow through funds * It is unlikely that the maximum unit funding would be applied to the upper activity limits