Opportunity Knox representatives informed the Knox County Board of Commissioners about anticipated significant cuts in funding for its adult, dislocated worker, and youth programs. This development is contingent on whether Congress decides to fully fund or eliminate federal public workforce programs.
"We're taking a 69% cut in adult funding. We're taking a 13% cut in dislocated worker funding, and we're going to take a 52% cut in youth funding," said Brandy Booth, Workforce Development administrator, according to a video recording of the meeting. "So for that in perspective, we were expecting $100,000 in adult funding, and we're getting $34,000 so, we were expecting $160,000 in youth funding, and we're getting $77,000 so we are going to really have to get creative with how we're providing services."
Booth explained that an executive order from the White House instructed the U.S. Departments of Labor, Education, and Commerce to provide recommendations to President Trump regarding the future of the public workforce system. She indicated that if the program is scrapped and restructured, it could significantly alter the level of service Opportunity Knox can offer.
The state has clarified that their funding methodology is based on an excess unemployment rate of 4.5%. Counties with higher unemployment rates receive more funding while those with lower rates receive less. Additionally, they consider poverty levels and labor participation rates. Booth noted that Knox County's unemployment rate was just above 4%, having fluctuated slightly below this threshold.
Booth described this situation as a Catch-22 scenario where effective efforts to reduce unemployment result in reduced funding because other areas require more assistance.
