How much does it cost every time a job seeker walks in your one-stop door to get universal services? How much does it cost you to hold each rapid response event? What share of your budget do your one-stop partners contribute?
Rick Moore and Phil Gorman at Cal State Northridge - with support from staff at the California WIB and the Employment Development Department - conducted a study of 22 comprehensive one-stops to answer these and other questions. Over eighteen months they translated standard line-item budget materials into activity-based cost (ABC) accounting data. At this morning's workshop they presented the results of what they say is an unprecedented study. There's far more info there than I'll be able to write up here. A few high points from their findings.
- The typical comprehensive one-stop costs $2.4 million to operate.
- Partners contribute about 34% of the one-stop's costs.
- Enrolled services take up 48% of expenses.
Getting a little more into detail:
- Each time a job seeker walks in the door just to get universal services, the median cost to the one-stop is $41. But that number hides a wide range among one-stops, from a low of $8 per universal visit to $146 per visit.
- The median cost per client placed in a job is $6,957, with a range of from $739 each to $50,708.
Keep in mind, those costs include all the resources provided by all the partners at the one-stop. But it doesn't include any supports the client might have received outside the doors of the one-stop.
Moore says that while this study can't be generalized to all one-stops, it provides a good picture showing the range of what's happening at one-stops in California. When the report is published, all the instruments they used will be included. Any one-stop interested in finding out how much their services cost can use this methodology.
This study is important for two reasons. First is the obvious one the CalWIB was interested in. That is, finding out what it really costs to provide services on a per-job seeker, per-business or per-outcome basis. When we know what the norms are, we can set benchmarks to compare across many one-stops and begin to determine measures of efficiency, and find out what is the optimal cost to be effective.
Second is from an evaluation perspective. This study really points out how the goals we set will determine how we set up our programs and our accountability systems, both financial and programmatic. We have to meet DOL's performance standards and comply with their financial reporting rules. But do we have other, local goals and needs? Should we set local goals and collect data to track how well we're doing in working toward them?
The report is about to be released online. Be on the lookout for it at www.calwia.org.
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