Adjustments to 1994 JTPA Title III allotments

Training and Employment Guidance Letter No. 5-94

Issue date: December 21, 1994
Classification: JTPA
Correspondence symbol: TWRA
Expiration date: Continuing

TO: All State JTPA Liaisons; All State Worker Adjustment Liaisons; All State Employment Security Agencies

FROM: Barbara Ann Farmer, Administrator for Regional Management

SUBJECT: Reallotment of Job Training Partnership Act (JTPA) Title III Formula-Allotted Funds

Purpose. To transmit a copy of the November 23, 1994, Federal Register notice announcing the reallotment of JTPA Title III formula-allotted funds.

References. Sections 162 and 303 of the JTPA; Training and Employment Guidance Letter (TEGL) No. 4-93, dated January 27, 1994.

Background. TEGL No. 4-93 describes the reallotment process that was used to identify and reallot unexpended formula funds that were in excess of statutory limits at the end of Program Year 1993. Reallotment of funds has been based on expenditure reports submitted by the States.

Action. Copies of the attachment should be distributed to appropriate staff. Equitable procedures for making funds available for reallotment, and distribution of funds requirements, are addressed in the notice.

Contact. Direct inquiries to Mr. Eric Johnson, Office of Worker Retraining and Adjustment Programs, on (202) 219-5577.

Attachment: Federal Register notice, 59 FR 60374–60376

The letter names the November 23, 1994 notice as its attachment and tells readers to request a copy from Deloris Norris of ETA's Office of Regional Management at (202) 219-5585. Its advisory page links an unrelated Reed Act PDF. The text and table below reproduce the named official Federal Register notice, FR Doc. 94-28931, pages 60374–60376.

Job Training Partnership Act: Employment and Training Assistance for Dislocated Workers; Reallotment of Title III Funds

AGENCY: Employment and Training Administration, Labor.

ACTION: Notice.

Summary. The Department of Labor is publishing for public information the Job Training Partnership Act Title III (Employment and Training Assistance for Dislocated Workers) funds identified by States for reallotment, and the amount to be reallotted to eligible States.

For further information contact: Mr. Eric Johnson, Office of Worker Retraining and Adjustment Programs, Employment and Training Administration, Department of Labor, Room N-5426, 200 Constitution Avenue NW., Washington, D.C. 20210. Telephone: 202-219-5577 (this is not a toll-free number).

Supplementary information. Pursuant to Title III of the Job Training Partnership Act (JTPA or the Act), as amended by the Economic Dislocation and Worker Adjustment Assistance Act (EDWAA), the Secretary of Labor (Secretary) is required to recapture funds from States identified pursuant to section 303(b) of the Act, and reallot such funds by a Notice of Obligation (NOO) adjustment to current year funds to “eligible States” and “eligible high unemployment States”, as set forth in section 303(a), (b), and (c) of JTPA. 29 U.S.C. 1653. The basic reallotment process was described in Training and Employment Guidance Letter No. 4-88, dated November 25, 1988, Subject: Reallotment and Reallocation of Funds under Title III of the Job Training Partnership Act (JTPA), as amended, 53 FR 43737 (December 2, 1988). The reallotment process for Program Year (PY) 1994 funds was described in Training and Employment Guidance Letter No. 4-93, dated January 27, 1994, Subject: Reallotment of Job Training Partnership Act (JTPA) Title III Formula-Allotted Funds.

NOO adjustments to the PY 1994 (July 1, 1994–June 30, 1995) formula allotments are being issued based on expenditures reported to the Secretary by the States, as required by the recapture and reallotment provisions at Section 303 of JTPA. 29 U.S.C. 1653.

The funds recaptured are an amount equal to the sum of every State’s unexpended PY 1993 formula funds in excess of 20 percent of its PY 1993 formula allotments, and all unexpended funds made available by formula for PY 1992. A State’s PY 1993 formula allotments include the initial allotment for PY 1993, and any additional funds received by the State during the PY 1993 reallotment process. Funds are recaptured from PY 1994 formula allotments, and are distributed by formula to eligible States and eligible high unemployment States, resulting in either an upward or downward adjustment to every State’s PY 1994 allotment.

Unemployment Data. The unemployment data used in the formula for reallotments, relative numbers of unemployed and relative numbers of excess unemployed, were for the September 1993 through August 1994 period. Long-term unemployment data used were for calendar year 1993. The determination of “eligible high unemployment States” for the reallotment of excess unexpended funds was also based on unemployment data for the period September 1993 through August 1994, with all average unemployment rates rounded to the nearest tenth of one percent. The unemployment data were provided by the Bureau of Labor Statistics, based upon the Current Population Survey.

The table below displays the distribution of the net changes to PY 1994 formula allotments.

U.S. Department of Labor—Employment and Training Administration, PY 1994 JTPA Title III Reallotment to States

Dollar amounts are shown in columns 2–6; a parenthesized amount is a decrease.

Explanation of Table

Column 1: This column shows each State’s unemployment rate for the twelve months ending August 1994.

Column 2: This column shows the amount of excess funds (unexpended PY 1993 funds in excess of 20 percent of the State’s PY 1993 formula allotments as described above and/or unexpended PY 1992 formula-allotted funds), which are subject to reallotment. PY 1994 funds in an amount equal to the excess funds identified will be recaptured from such States and distributed as discussed below.

Column 3: This column shows total excess funds distributed among all “eligible States” by applying the regular Title III formula. “Eligible States” are those with unexpended PY 1993 funds at or below the level of 20 percent of their PY 1993 formula allotments as described above.

Column 4: Eligible States with unemployment rates higher than the national average, which was 6.5 percent for the 12-month period, are “eligible high unemployment States.” These eligible high unemployment States received amounts equal to their share of the excess funds (the amounts shown in column 3) according to the regular Title III formula. This is Step 1 of the reallotment process. These amounts are shown in column 4 and total $3,878,040.

Column 5: The sum of the remaining shares of available funds ($2,425,714) for eligible States with unemployment rates less than or equal to the national average is distributed among all eligible States, again using the regular Title III allotment formula. This is Step 2 of the reallotment process. These amounts are shown in column 5.

Column 6: Net changes in PY 1994 formula allotment are presented. This column represents the decreases in Title III funds shown in column 2, and the increases in Title III funds shown in columns 4 and 5. NOOs in the amounts shown in column 6 are being issued to the States listed.

Equitable Procedures

Pursuant to section 303(d) of the Act, Governors of States required to make funds available for reallotment shall prescribe equitable procedures for making funds available from the State and substate grantees. 29 U.S.C. 1653(d).

Distribution of Funds

Funds are being reallotted by the Secretary in accordance with section 303(a), (b), and (c) of the Act, using the factors described in section 302(b) of the Act. 29 U.S.C. 1652(b) and 1653(a), (b), and (c). Distribution within States of funds allotted to States shall be in accordance with section 302(c) and (d) of the Act (29 U.S.C. 1652(c) and (d)), and the JTPA regulation at 20 CFR 631.12(d).

Signed at Washington, D.C., this 17th day of November, 1994.

Doug Ross, Assistant Secretary of Labor.

[FR Doc. 94-28931 Filed 11-22-94; 8:45 a.m.]