Californias OneStop Cost Study

1
Californias One-Stop Cost Study

• Presented By
• Richard W. Moore
• California State University, Northridge
• Virginia Hamilton
• California Workforce Association

2
Our Charge From CWIB

• The reality is that there is inconsistent
  integration of services and no centralized
  accounting process within the System that
  effectively controls or accounts for all
  resources utilized to produce the Systems
  Outputs.As a result, the One-Stop System appears
  to some of its customers and outside observers as
  a fragmented and inefficient business enterprise.

3
Objectives Today

• Explain how we analyzed One-Stop costs and
  services.
• Show a small sample of the results.
• Discuss implications for policy.
• .

4
Key Research Questions

• What resources do One-Stops have and where do
  they spend them?
• What do partners contribute?
• How much and what types of services do One-Stops
  produce?
• What do different One-Stop services cost to
  produce?
• Can standard measures or service units and costs
  be developed and applied across One-Stops?

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Good News We have Benchmarks For One-Stops!!
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Benchmarks In A Nut Shell

• Typical California full-service One-Stop Costs
  2.4 million
• Partners contribute 34 of Costs
• Enrolled services cost 48 of total,
• Universal services 30,
• Business 13,
• Youth 9

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More Benchmarks What Does it Cost To..

• Serve a Universal client?
• 166
• Provide a universal visit?
• 41
• Serve an enrolled client?
• 2,671
• Assist an employer with Rapid Response?
• 964
• Serve a youth participant
• 3,837

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Caution

• Getting benchmarks was complicated.
• Simple benchmarks hide complex and varying
  results.
• Benchmarks are from sampled One-Stops may not
  represent the whole system
• Lets start with our research approach.

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Methods

• Used Activity Based Cost Accounting
• Completed 4 detailed cases of Comprehensive
  One-Stops
• Urban SoCal (Medium)
• Suburban NoCal (Large)
• Central Valley (Large)
• Rural NoCal (Small)
• Surveyed 18 additional One-Stops

Roughly right.Not precisely wrong
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Definition of a One-Stops Boundaries for An ABC
Analysis

• Activities and agencies are included in the
  analysis if they provide workforce services to
  One-Stop clients and if the services are
  delivered under the One-Stops roof.

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Comparison of Traditional Views and ABC View
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One-Stop ABC Analysis Process

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Model Process Map
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Results By Research Question
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What resources do One-Stops have and where do
they spend them?
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Percent of Cost By Process Across All Sites
Average Cost 3.0 million Median Cost 2.4
million Range .9 to 10 million
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Total Cost By Site
18
Universal Activities Median Percent of One-Stop
Costs and Range
19
Enrolled Activities Median Percent of One-Stop
Costs and Range
20
Business Activities Median Percent of One-Stop
Costs and Range
21
Youth Activities Median Percent of One-Stop
Costs and Range
22
What do partners contribute?
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Partner Contribution To Total Cost
34 of Total Cost
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Partner Contribution By Site
Three Clusters
50
20-30
20 or less
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Number of One-Stops with Partner Present
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Total Partner Contribution for All One-Stops in
the Sample
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What do different One-Stop services cost to
produce?
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Universal Services Median Cost and Range Of
Cost Per-Unit of Service and Range
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Cost Per Universal Visit
30
Total Number of Universal Visits
31
Average Number of Visits Per Universal Client
32
Enrolled Activities Median Cost and Range of
Cost Per-Unit
33
Business Services Median and Range of Costs
Per-Unit of Service
34
Youth Services Median Costs and Range Per-Unit
of Service
35
Can standard measures or service units and costs
be developed and applied across One-Stops?
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Yes!!

• But much more work needs to be done to get to
  industry measures that can drive process
  improvement

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What We Learned

• Traditional funding streams drive how One-Stops
  conceptualize costs and services, and undermine
  managers ability to see their operation
  holistically.
• There are few standard measures for units of
  service produced, so benchmarking is difficult.
• Partner relations vary based on local conditions,
  funding and eligibility requirements for each
  program, and the personal networks of One-Stop
  managers.

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More

• One-Stops tend to structure their processes
  around the WIA program, so the four processes we
  uncovered were consistent across sites.
• One-Stop services were customized to local needs
  and this accounts in large part for the
  differences in costs between sites.

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Read the Report

• Full report available at
• www.calwia.org
• Follow-up Richard W. Moore, richard.moore_at_csun.ed
  u, 818-677-2416
• Or Phil Gorman philip.c.gorman_at_csun.edu
  818-677-4515
• richard.moore_at_csun.edu

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Questions Observations
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Youth Process Map
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One-Stop Total Cost by Process "Universal
Services" as a Percentage of One-Stop Total Cost
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One-Stop Total Cost by Process "Enrolled
Services" as a Percentage of One-Stop Total Cost
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One-Stop Total Cost by Process "Business
Services" as a Percentage of One-Stop Total Cost