2011 TAA training funds second distribution

Accessible letter PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2011/TEGL02-11acc.pdf

                                                           CLASSIFICATION
  EMPLOYMENT AND TRAINING ADMINISTRATION                   TAA
              ADVISORY SYSTEM                              CORRESPONDENCE SYMBOL
                                                           OTAA
         U.S. DEPARTMENT OF LABOR
                                                           DATE
            Washington, D.C. 20210                         July 15, 2011


ADVISORY:           TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 2-11

TO:                 STATE WORKFORCE AGENCIES
                    STATE WORKFORCE LIAISONS
                    ONE-STOP CENTER SYSTEM LEADS
                    STATE WORKFORCE ADMINISTRATORS
                    STATE AND LOCAL WORKFORCE BOARD CHAIRS AND
                    DIRECTORS
                    STATE LABOR COMMISSIONERS

FROM:               JANE OATES /s/
                    Assistant Secretary

SUBJECT:            Fiscal Year (FY) 2011 Second Distribution of Trade Adjustment
                    Assistance (TAA) Training Funds and Distribution of Remainder of FY
                    2011 Training, Job Search and Relocation Allowance Funding

1. Purpose. To inform State Workforce Agencies or agencies designated by Governors as
“Cooperating State Agencies” (also jointly referred to as “States”) of the assumptions used in
determining the FY 2011 Training Cap; to inform States of the Department of Labor’s
(Department) decision to distribute 100 percent of these funds through this distribution; and to
provide the funding formula used in calculating the Second Distribution of FY 2011 Training
Funding Amounts, defined as the remainder of the 35 percent of fiscal year training funds that
were held in reserve, as well as to the remainder of job search and relocation allowance funds
that were not distributed to States in response to reserve requests received before July 1, 2011.

2. References. Full-Year Continuing Appropriations Act, 2011 (Appropriations Act, 2011),
Public Law (Pub. L.) No. 112-10, Division B, Title I, signed April 15, 2011; Omnibus Trade
Act of 2010 (Omnibus Trade Act), enacted on December 29, 2010; Consolidated Omnibus
Appropriations Act, 2009, Pub. L. No. 111-8 (enacted March 11, 2009); the Trade Act of 1974
(Act), as amended (Trade Act) (Pub. L. No. 93-618, as amended); the Trade and Globalization
Adjustment Assistance Act of 2009 (TGAAA or the 2009 Amendments) (Division B, Title I,
Subtitle I of the “American Recovery and Reinvestment Act of 2009” (Recovery Act), Pub. L.
No. 111-5 (enacted February 17, 2009); 20 Code of Federal Regulations (CFR) 618.910 –
618.930; Training and Employment Guidance Letter (TEGL) No. 16-10, Change 1 (January
14, 2011); TEGL No. 22-08 (November 20, 2009) and its Changes; TEGL No. 13-10
(November 17, 2010); TEGL No. 6-09 (September 15, 2009); and TEGL No. 9-09 (October
21, 2009) and Change 1.


 RESCISSIONS                                               EXPIRATION DATE
 None                                                      Continuing
3. Background. TEGL No. 13-10 provided States with the FY 2011 initial allocations and the
Department’s methodology for determining the funding levels for each State. Two separate
attachments to that TEGL showed the State Initial Allocations for FY 2011. The first
attachment provided the initial allocations based on anticipated reversion of the Act to the law
in effect before the TGAAA (“the 2002 Amendments”) with a training cap at the $220,000,000
level and the second attachment showed the initial allocations based on expected
reauthorization of the Act with a training cap at the $575,000,000 level authorized by the
TGAAA. In the final analysis, neither funding level was authorized for FY 2011. This TEGL
announces the FY 2011 training cap, $348,879,970 authorized by the TGAAA, the Omnibus
Trade Act, and the 2002 Amendments. Only States that received a FY 2011 Initial Allocation
will receive a Second Distribution.

4. FY 2011 Training Cap. The final FY 2011 training cap, which is the starting point for
calculating the amounts States will receive in the Second Distribution, is a hybrid of the
allowable training cap under both the 2002 Amendments, which have been in effect since
February 13, 2011, and the law in effect before February 13, 2011 - the Trade Act, as amended
by the TGAAA (“the 2009 Amendments”), adjusted for the period of time each law was in
effect. The basis for the calculation of the FY 2011 training cap ($348,879,970) is described in
Attachment 1 of this TEGL.

5. Second Distribution Formula. Calculating the second distribution of the remainder of FY
2011 training funds and distributing 100 percent of these funds to States will follow the four
factors set forth in 20 CFR 618.910(f), as follows:

      Factor 1: Trend in number of workers covered by certifications during the most recent
       four consecutive calendar quarters for which data are available. Factor 1 will be
       established using the most recent four quarters (FY 2010 Quarter 3 through FY 2011
       Quarter 2) of data for certified workers by State, and the quarters will be weighted 40
       percent; 30 percent; 20 percent; and 10 percent, respectively, from the most recent to
       the earliest quarter. This approach will establish a trend, giving the most recent
       quarters a greater impact on each factor than an earlier quarter.

      Factor 2: Trend in number of workers participating in training during the most recent
       four consecutive calendar quarters for which data are available. Factor 2 will be
       established using the most recent four quarters (FY 2010 Quarter 3 through FY 2011
       Quarter 2) of data for workers participating in training by State, and the quarters will be
       weighted 40 percent; 30 percent; 20 percent; and 10 percent, respectively, from the
       most recent quarter to earliest quarter. As with Factor 1, this approach will establish a
       trend, giving the most recent quarters a greater impact on each factor than an earlier
       quarter.

      Factor 3: Number of workers estimated to be participating in training during the fiscal
       year. Factor 3 will be determined by dividing the weighted average number of training
       participants for the State determined in Factor 2 by the sum of the weighted averages
       for all States and multiplying the resulting ratio by the projected national average of
       training participants for the fiscal year, using the estimates underlying the Department’s
       most recent budget submission or update.



                                                2
      Factor 4: Estimated amount of funding needed to provide approved training to such
       workers during the fiscal year. Factor 4 will be calculated by multiplying the estimated
       number of participants in Factor 3 by the average training cost for the State. The
       average training cost will be calculated by dividing total training expenditures for the
       most recent four quarters by the average number of training participants for the same
       time period.

Once each of the four factors has been determined for each State, under 20 CFR 618.910(f)(3),
all four factors will be assigned an equal weight. For FY 2011, the weight will be 25 percent
of the total for each factor. Attachment 2 provides the funding amounts each State will receive
in the Second Distribution based on the funding formula explained above.

6. Distribution of 100 Percent of the Remainder of FY2011 TAA Training Funds. In
compliance with the regulatory requirement that at least 90 percent of the total training funds
available for a fiscal year be provided to States no later than July 15 of that fiscal year, the
Department will distribute 100 percent of the remainder of FY 2011 in the Second
Distribution. The rationale for distributing 100 percent of the remainder of these funds through
this distribution is based on the following factors:

      The program has a higher training cap: States received less money in the initial
       allocation due to a delay in the FY 2011 budgeting process. States were funded at 65
       percent of a $220,000,000 training cap based on the funds available under the
       continuing resolutions; not 65 percent of the final $348,879,970 training cap.
       Providing allocations at 100 percent of the remainder of FY 2011 training funds
       calculated under the higher training cap will mitigate the need for reserve fund requests
       through the end of FY 2011 as States will be sufficiently funded under the higher
       training cap. Also funding States at 100 percent of the remaining training funds will
       ensure each State receives the highest possible pro rata share of the training funds
       currently available.
      States need funding in advance of the August enrollment period: Disbursing 100
       percent of the remaining training and job search and relocation allowance funds now
       will ensure States are sufficiently funded to cover the training costs of current and
       anticipated TAA participants through the FY 2011 heavy August-September training
       enrollment period.

7. Job Search and Relocation Allowance. In addition to distributing 100 percent of the
funding available under the training cap, 100 percent of the remainder of job search allowance
and relocation allowance funds will also be disbursed to States in the Second Distribution.

8. TAA Program Administration Funds. States will receive an additional 15 percent of the
Second Distribution funds for program administration. The administrative funds will be
included each time funds are obligated to states by the Employment and Training
Administration (ETA). The program administration allocations for each state are also included
in the Attachment 2.

9. Action Requested. States will inform all appropriate staff of the contents of these
instructions.

10. Inquiries. States should direct all inquiries to the appropriate ETA Regional Office.
                                                 3
11. Attachments.

      Attachment 1: Summary of 2011 Funds
      Attachment 2: Second Distribution Funding Amounts by State




                                           4

Official attachment PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2011/TEGL02-11a1.pdf

Attachment 1

                               Summary of 2011 Funds



                        FY 2011 Training Cap Derivation and
                    Job Search and Relocation Allowance Funding
              Time Period                   Funding              Authority
                                            Amount
October 1, 2010 - December 31, 2010      $143,750,000 TGAAA
January 1, 2011 - February 12, 2011      $ 66,500,000 Omnibus Trade Act
February 13, 2011 - September 30, 2011   $138,629,970 Prorated $220 million
                                                        Training Cap under the 2002
                                                        Amendments
FY 2011 Training Cap                     $348,879,970
Job Search and Relocation Allowance      $ 6,000,000 TGAAA, Omnibus Trade
                                                        Act, 2002 Amendments
Total FY 2011 Training and Job
Search and Relocation Allowance          $354,879,970
Funds to be Distributed


                 Total FY 2011 Training and JS&R Funds Distributed
                   Funds                                Amount
Distribution of Initial Allocation                                    $143,000,000
Reserve Funding to States that Submitted               Training:      $104,146,818
Requests Prior to July 1, 2011 (funding
for Training and Job Search and                        JS&R:          $    433,000
Relocation Allowance)
Second Distribution - Training Funds                                  $101,733,152
Second Distribution - Job Search and                                  $ 5,567,000
Relocation Allowance Funds
Total Funds Distributed in FY 2011                                    $354,879,970

Official attachment PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2011/TEGL02-11a2.pdf

Attachment 2

                             Second Distribution Funding Amounts by State

                                                            Total Training
                                        Total Job Search   Plus Job Search                   Total Second
        State          Total Training    & Relocation      and Relocation     Total Admin    Distribution
Alabama                $ 2,306,394      $   126,210        $ 2,432,604       $ 364,891      $ 2,797,495
Alaska                 $         0      $        0         $         0       $        0     $         0
Arizona                $   807,587      $    44,192        $   851,779       $ 127,767      $   979,546
Arkansas               $ 1,655,107      $    90,570        $ 1,745,677       $ 261,852      $ 2,007,529
California             $ 3,120,294      $   170,747        $ 3,291,041       $ 493,656      $ 3,784,697
Colorado               $   712,558      $    38,992        $   751,550       $ 112,733      $   864,283
Connecticut            $ 1,330,314      $    72,797        $ 1,403,111       $ 210,467      $ 1,613,578
Delaware               $     43,926     $     2,404        $     46,330      $     6,950    $     53,280
District of Columbia   $         0      $        0         $         0       $        0     $         0
Florida                $   613,204      $    33,556        $   646,760       $    97,014    $   743,774
Georgia                $ 2,168,085      $   118,641        $ 2,286,726       $ 343,009      $ 2,629,735
Hawaii                 $         0      $        0         $         0       $        0     $         0
Idaho                  $   909,075      $    49,746        $   958,821       $ 143,823      $ 1,102,644
Illinois               $ 3,521,835      $   192,720        $ 3,714,555       $ 557,183      $ 4,271,738
Indiana                $ 4,457,422      $   243,917        $ 4,701,339       $ 705,201      $ 5,406,540
Iowa                   $ 1,853,479      $   101,425        $ 1,954,904       $ 293,236      $ 2,248,140
Kansas                 $ 1,422,250      $    77,828        $ 1,500,078       $ 225,012      $ 1,725,090
Kentucky               $ 3,152,957      $   172,535        $ 3,325,492       $ 498,824      $ 3,824,316
Louisiana              $   481,497      $    26,348        $   507,845       $    76,177    $   584,022
Maine                  $ 1,240,250      $    67,868        $ 1,308,118       $ 196,218      $ 1,504,336
Maryland               $   614,637      $    33,634        $   648,271       $    97,241    $   745,512
Massachusetts          $ 1,698,489      $    92,944        $ 1,791,433       $ 268,715      $ 2,060,148
Michigan               $ 12,298,739     $   673,007        $ 12,971,746      $ 1,945,762    $ 14,917,508
Minnesota              $ 2,301,058      $   125,918        $ 2,426,976       $ 364,046      $ 2,791,022
Mississippi            $   364,513      $    19,947        $   384,460       $    57,669    $   442,129
Missouri               $ 2,565,611      $   140,394        $ 2,706,005       $ 405,901      $ 3,111,906
Montana                $   760,482      $    41,615        $   802,097       $ 120,315      $   922,412
Nebraska               $   365,397      $    19,995        $   385,392       $    57,809    $   443,201
Nevada                 $         0      $        0         $         0       $        0     $         0
New Hampshire          $   300,736      $    16,457        $   317,193       $    47,579    $   364,772
New Jersey             $   956,945      $    52,366        $ 1,009,311       $ 151,397      $ 1,160,708
New Mexico             $   619,381      $    33,894        $   653,275       $    97,991    $   751,266
New York               $ 4,324,282      $   236,632        $ 4,560,914       $ 684,137      $ 5,245,051
North Carolina         $ 6,970,454      $   381,434        $ 7,351,888       $ 1,102,783    $ 8,454,671
North Dakota           $         0      $        0         $         0       $        0     $         0
Ohio                   $ 5,879,283      $   321,724        $ 6,201,007       $ 930,151      $ 7,131,158
Oklahoma               $   505,195      $    27,645        $   532,840       $    79,926    $   612,766
Oregon                 $ 3,144,981      $   172,098        $ 3,317,079       $ 497,562      $ 3,814,641
Pennsylvania           $ 5,625,132      $   307,816        $ 5,932,948       $ 889,942      $ 6,822,890
Puerto Rico            $         0      $        0         $         0       $        0     $         0
Rhode Island           $   620,243      $    33,941        $   654,184       $    98,128    $   752,312
South Carolina         $ 2,722,066      $   148,956        $ 2,871,022       $ 430,653      $ 3,301,675
South Dakota           $   331,903      $    18,162        $   350,065       $    52,510    $   402,575
Tennessee              $ 2,242,591      $   122,718        $ 2,365,309       $ 354,796      $ 2,720,105
Texas                  $ 4,563,198      $   249,706        $ 4,812,904       $ 721,936      $ 5,534,840
Utah                   $   683,007      $    37,375        $   720,382       $ 108,057      $   828,439
Vermont                $   119,666      $     6,548        $   126,214       $    18,932    $   145,146
Virginia               $ 2,289,029      $   125,259        $ 2,414,288       $ 362,143      $ 2,776,431
Washington             $ 2,675,903      $   146,430        $ 2,822,333       $ 423,350      $ 3,245,683
West Virginia          $ 1,253,096      $    68,571        $ 1,321,667       $ 198,250      $ 1,519,917
Wisconsin              $ 5,140,901      $   281,318        $ 5,422,219       $ 813,333      $ 6,235,552
Wyoming                $         0      $        0         $         0       $        0     $         0
TOTAL                  $ 101,733,152    $ 5,567,000        $ 107,300,152     $ 16,095,027   $ 123,395,179