Policy & Practice June 2015

changed the funding structure so that a grantee received funds to cover two full program years and modest follow- up support for nine months. The prior system of one-year funding under HUD was resulting in considerable insta- bility among local programs and the Government Accountability Office had recommended lengthening the funding period. Over the last eight years, the outcomes in each category of measure- ment have increased steadily, partly as a result of DOL’s focus, and partly as a result of YouthBuild USA’s role as a technical assistance provider, contracted by DOL, assisting every program to replicate the program design and philosophy. Training andTechnical Assistance with a National Nonprofit The federal YouthBuild authoriza- tion allows DOL to use 5 percent of the annual appropriation to contract with a qualified national nonprofit organiza- tion for training, technical assistance (TA), and data management assistance to DOL’s grantees. Open competi- tions are held every three to five years to select this TA provider. The TA provider communicates the essential features of the program design and philosophy to every new grantee, shares best practices, and assists all grantees in fulfilling their commit- ments with high quality. This unusual feature is “baked into” the YouthBuild delivery system by law. One key element of scalability is “brand quality.” Due to the fact that YouthBuild USA and DOL both have the right to use and authorize others to use the YouthBuild name, a range of nonprofit sponsors, such as United Way, YMCA, Urban League, Service and Conservation Corps, Goodwill, community development corporations, independent multi-service nonprofit local agencies, workforce boards, housing authorities, community colleges, and faith-based organiza- tions can launch a local YouthBuild program without a DOL YouthBuild grant as long as they meet the stan- dards established by YouthBuild USA. These standards are consistent with those in the law. The result is that there

are always more YouthBuild programs than the number DOL can fund. Public funding remains critical, and the combination of adequate, recurring public funding (matched with other support), and the support provided by YouthBuild USA, has led to the increas- ingly strong outcomes for the youth being served in DOL-funded programs. Private Supplementary Funding for Innovative Program Enhancements YouthBuild USA plays another catalytic role by raising private phil- anthropic and corporate funds to pilot innovative program enhance- ments. From 2007 through 2014, it raised $82 million private dollars (the equivalent of 15 percent of the federal appropriation) for research and development aimed at improving program outcomes. Companies such as Starbucks, Bank of America, Walmart, JP Morgan Chase, GAP, Saint Gobain, AT&T, State Street, State Farm, and others have invested in piloting inno- vations such as green building skills; helping students access registered apprenticeships in the construction industry; creation of new career tracks including health care, technology, and customer service; and preparing students for post-secondary education coupled with supports for success at community and four-year colleges. Program Outlook The structure and dynamics of a federal delivery system are as impor- tant as the quality of the program design. Accountability for results, on-going assistance in achieving those results through training and technical assistance, and a robust system for ongoing innovation and experimentation are all essential parts of an effective delivery system. Other systems could benefit from under- standing and imitating aspects of the DOL YouthBuild delivery system. Dorothy Stoneman is the chief executive officer and founder of YouthBuild USA, Inc.

to develop authorizing legislation. The bipartisan YouthBuild Act of 1991 was signed into law by President George H.W. Bush in 1992. Originally administered by the U.S. Department of Housing and Urban Development (HUD), in 2007 YouthBuild was trans- ferred from HUD to DOL at the request of the George W. Bush Administration, with unanimous consent of Congress and the National YouthBuild Coalition. The coalition hoped this would be the moment the government would expand it dramatically. This did not occur, but over a 23-year period the program has slowly expanded through federal funding. Scale and Outcomes: More than 260 programs are currently operating in 45 states in the United States. Since the YouthBuild programwas first authorized in 1992, more than 130,000 YouthBuild students have produced more than 28,000 units of affordable housing. Outcomes for all enrollees in presently funded DOL YouthBuild programs include: 77 percent obtain high-school diplomas, equivalency cre- dentials, and/or industry-recognized credentials; 61 percent move to post- secondary education or jobs; 72 percent of those placed retain their placement for at least the nine months that are tracked; and recidivism reconviction rates within one year of enrollment for court-involved students average a very low 9 percent. Given that 93 percent had left high school without a diploma, 100 percent were very low income and 33 percent were court-involved, this is a remarkable level of success. Unusually Effective Delivery System: Under DOL, measuring and improving outcomes for the partici- pants has been a steady focus. Every DOL-funded YouthBuild program reports quarterly on the outcome measures noted above. In 2011, DOL launched a performance incentive system, providing priority for refunding programs whose outcomes were high. Through this method, these same per- formance measures (academic gains, high-school equivalency or regular high-school diplomas and industry-rec- ognized certifications, job and college placements, and placement reten- tion) are taken into account through a transparent point system. DOL also

David Abromowitz is the chief public policy officer of YouthBuild USA, Inc.

June 2015   Policy&Practice 23