Because of the urgency of workforce issues and the desire to begin a statewide discussion about workforce goals and choices, the Governor’s Council on Workforce Policy wanted to understand if, and how, program governance and organization are hampering progress and what changes might be beneficial. The council asked Morrison Institute for Public Policy (School of Public Affairs, College of Public Programs, Arizona State University) to: (1) Explore the strengths and weaknesses of the organization of Arizona’s workforce system, particularly at the state level (2) Review how other states have revamped their systems and connected workforce and economic development (3) Recommend options for improving Arizona’s system During the second half of 2003, Morrison Institute for Public Policy talked with more than 60 workforce professionals, business people, and workforce board members across Arizona either individually or in small groups, researched other states’ approaches through interviews with officials in other states and national organizations, analyzed responses to an online survey of selected local workforce investment board members, and reviewed a wide variety of materials on economic, workforce, and community development. This report is the first of many steps for Arizona to reflect and act on workforce development governance and its system, because as Thurgood Marshall said, "You can’t stand still. You must move, and if you don’t move, they will run over you."

The purpose of this brief report is to provide information about Arizona’s system of workforce development, the Workforce Investment Act of 1998 (WIA), how the Act has been implemented in the greater Phoenix area and the program’s relevance to business. It is an update of a previous brief on the subject from February 2000. Prepared by Morrison Institute for Public Policy at the request of Greater Phoenix Leadership, the information contained in this report is intended for a business audience.

This brief provides information about the Workforce Investment Act (WIA) of 1998, how it will be implemented in the greater Phoenix, Arizona, area, and the program's relevance to business. The brief also discusses the current work force development system, including information on these five areas of interest: (1) what the literature says about work force development; (2) Arizona's current work force development system; (3) an overview of the WIA; (4) what's really new in the new system; and (5) what's in it for Arizona's business community. The report concludes that research and several prominent business organizations suggest that businesses can become involved in WIA in a number of ways that benefit companies as well as society, including participating on Local Workforce Investment Boards; using the one-stop career centers to fill employment needs; opening such centers; becoming approved training providers; suggesting potential board members; providing additional funds to boards; helping design and oversee local work force development programs; and providing information to the local boards and one-stop centers.