Each Local Workforce Innovation Board (LWIB) and Chief Elected Official(s)(CEO) within each Illinois Local Workforce Innovation Area (LWIA) are required to utilize a local negotiation process to come to an agreement on negotiated levels of performance under the Workforce Innovation and Opportunity Act (WIOA).

1. Negotiated levels of performance are established through a joint negotiation process between the LWIB, the CEO(s), and the State for the first two (2) years and the third (3^rd) and fourth (4^th) years of the Unified State Plan.
   1. Negotiated levels shall be established for each applicable primary indicator of performance under WIOA Title IB.
2. The local negotiation process with the state will be in accordance with the process and timeline outlined in the applicable WIOA Notice issued by the Office of Employment and Training (OET) and will include the Expected and Negotiated Levels of Performance.
3. The negotiation process includes the following:
   1. Expected Levels of Performance:
      1. The LWIB and CEO(s) must jointly submit proposed expected levels of performance to the state for each of the primary indicators of performance for the first two (2) years and for years three (3) and four (4) of the local planning cycle.
      2. Expected levels of performance must be stated to the nearest tenth of a percent (0.1%), or to the nearest whole dollar for median earnings.
   2. Negotiated Levels of Performance:
      1. Agreement on levels of performance occurs through negotiations between the LWIB and CEO(s), and the state to reach an agreement on negotiated levels of performance.
         1. After submission of the local plan, for years one (1) and two (2) of the plan, and
         2. After submission of the modification to the local plans, for years three (3) and four (4) of the plan.
         3. Negotiated levels of performance shall be incorporated into the Local Plan or Local Plan Modification, as applicable, and made publicly available on the LWIB's website.
      2. Negotiation Factors to be utilized by the LWIB and CEO(s), and the state during negotiations include: 
         1. Comparison of the proposed negotiated levels with negotiated levels established by other LWIAs, as appropriate;
         2. Utilization of a Local Negotiation Tool which incorporates an objective Statistical Adjustment Model (SAM), as described in WIOA Section 116(b)(3)(A)(viii), that predicts simulated levels of performance, provided by the State;
         3. The extent to which the proposed negotiated levels promote continuous improvement and support effective stewardship of federal and state workforce funds; and
         4. The extent to which the proposed negotiated levels will assist the state in meeting performance goals established during negotiations between the State and USDOL.
         5. LWIBs may use other verifiable and replicable data, historical performance information, tools, and resources.
      3. No individual negotiation factor shall be assigned a prescribed weight during the negotiation process.
   3. Negotiated levels of performance are for two (2) program years at a time.
      1. Unless otherwise noted in a revision to this policy or as identified in the applicable WIOA Notice issued by OET, no renegotiation of levels of performance will occur.
   4. LWIBs and CEOs from each LWIA must appoint no more than five (5) representatives to a local negotiation team which will be provided with authority to negotiate and agree with the state on behalf of the LWIB and CEO(s) on the levels at which each required performance goal under Title IB will be set.
      1. LWIB members and CEOs are strongly encouraged to be directly involved in these negotiations.
   5. The State will provide the final negotiated local performance levels to the U.S. Department of Labor, Region 5 upon completion of negotiations.
   6. Adjusted levels of performance will be determined at the end of each program year utilizing a SAM to reflect the actual economic conditions experienced in the local area and characteristics of the actual individuals served as outlined in the Assessing Performance section of this policy manual.