Texas Workforce Commission accepts staff recommendations on docket 8, approves $5M workforce readiness grant and $27.2M childcare redistribution

The Texas Workforce Commission voted on a series of staff recommendations and program funding items, including actions on unemployment insurance appeals in docket 8, adjustments to capital project appropriations, a Skills Development Fund grant to Texas State Technical College, a $27,220,126 redistribution to 19 childcare workforce boards, adult education performance targets, PPD certifications and recertifications, and local workforce board nominations.

Docket 8 and unemployment appeals: Commissioners considered multiple unemployment insurance appeals and recommendations prepared by staff for docket 8. The commission accepted staff recommendations on the remaining wage and UI cases on docket 8 "except for those cases which I am dissenting as reflected on the UI short form dissent list for docket 8," and the motion passed with the noted exceptions. The commission specifically directed that case number 3079811 be resubmitted for further consideration. Commissioners discussed reversals, affirmations, and rehear requests on several individual case numbers during deliberations; short form dissent lists were submitted to record exceptions to the chair’s acceptance of staff recommendations.

Capital project and exceptional items: Chris Nelson, chief financial officer, requested approval to revise TWC’s 2026–2027 exceptional item priorities to extend the labor law system replacement project to April 2026 and to add $868,000 to the data center appropriation and $2,296,000 to complete the capital project. A motion to approve the described revisions was moved and seconded and the motion carried.

UI trust fund update: Nelson provided a trust fund update through December 2024 projecting an October 1 balance that could fall below the statutory floor and noted that a deficit tax would mechanically kick in for calendar year 2026 if the floor is breached. The presentation was informational and did not include a separate funding motion.

Workforce readiness pilot (Skills Development Fund): Staff recommended awarding a $5,000,000 grant to Texas State Technical College (TSTC) to develop and deliver a statewide customized workforce readiness (soft‑skills) training pilot under the Skills Development Fund statute. Commissioners moved, seconded, and approved dedicating $5,000,000 in Skills Development Fund grant funding to TSTC for the pilot.

Adult Education and Literacy (AEL): Staff presented contracted measures and performance‑based funding criteria required by Texas Labor Code §315.007 (high school equivalency enrollment and attainment measures). Commissioners approved the contracted measures and the recommended performance‑based funding criteria; staff will return with funding determinations when data matures.

Childcare midyear allocations and payment automation discussion: Staff recommended distributing $27,220,126 to 19 workforce boards to cover higher average costs tied primarily to additional programs achieving Texas Rising Star enhanced reimbursement rates. The commission approved the distribution and authorized staff to perform end‑of‑year reconciliations. During discussion, staff and a public commenter, Dorika McDonald (ADF Family Child Care Network), discussed recent delays in scholarship payments tied to a new payment automation package; staff said boards were generally four days late on one payment during rollout, that they were catching up, and that the new system will shift payments to an every‑other‑week prospective schedule with attendance tracking.

PPD certifications: Staff recommended certification of one new UCRP (Infinity Gardens in Houston) and recertification of eight community rehabilitation programs. The commission approved the certification and recertifications as presented.

Workforce board nominees: Staff presented nominees for five local workforce development boards (Workforce Solutions Gulf Coast, Lower Rio Grande Valley, North Texas, Permian Basin, and South Plains); the commission approved the nominees.

Votes and procedures: Motions were generally moved by commissioners and seconded; most actions were approved by voice vote with the chair noting the motion carried. For docketed UI cases, commissioners used short form dissent lists to record individual votes that differed from the chair’s acceptance of staff recommendations. The meeting adjourned after motions to approve the items above were carried.