FY 2006 TAA reserve distribution and MIS grants

Accessible letter PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2006/TEGL08-06_508.pdf

CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION               TAA
               ADVISORY SYSTEM                          CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR                      ONR
               Washington, D.C. 20210                   DATE
                                                        October 5, 2006

TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 8-06

TO:            STATE WORKFORCE AGENCIES
               STATE WORKFORCE LIAISONS
               STATE TRADE COORDINATORS

FROM:          EMILY STOVER DeROCCO /s/
               Assistant Secretary

SUBJECT:       Trade Adjustment Assistance (TAA) Final Fiscal Year 2006 Reserve
               Distribution and Funding for Management Information Systems (MIS)
               Improvement

1. Purpose. To provide final Fiscal Year 2006 TAA training funds to states and provide
   guidance on the appropriate use of TAA reserve funds to be used on MIS
   improvements.

2. References. The Trade Act of 1974, as amended; the Secretary-Governor
   Agreement; Fiscal Year 2006 TAA Annual Cooperative Financial Agreement, 2 CFR
   Part 225 (codifying OMB Circular A-87); 20 CFR Part 617, as amended; 29 CFR Parts
   96, 97, 98, and 99; Training and Employment Guidance Letter (TEGL) 2-04, “Trade
   Adjustment Assistance (TAA) Program Reserve Funds,” dated July 14, 2004; and
   TEGL 4-05 “Fiscal Year 2006 State Base Allocations and the Process for Requesting
   Additional Trade Adjustment Assistance (TAA) Program Reserve Funds,” dated
   September 8, 2005.

3. Background. The Employment and Training Administration (ETA) revised its fund
   allocation process for the TAA program and implemented a formula-based
   methodology for distributing training funds on October 1, 2003. This approach
   enables states to receive a base allocation at the beginning of the fiscal year. The
   formula has proven effective in allowing states to better plan and manage funds for
   TAA training, job search assistance and relocation assistance.

                                        - 2 -

   For Fiscal Year 2006, the Department has over $43 million in reserve funds available
   to distribute to states. In addition to providing reserve funds for training,
   allowances and administration, the Department has authorized a one-time, $250,000
   lump sum to each state for the purpose of upgrading and improving their MIS that
   will lead to greater efficiency, data accuracy, and reliability of TAA data.

4. New Program Requirements and GAO Findings. The TAA Reform Act of 2002 has
   made it necessary for states to reprogram their Management Information Systems to
   include tracking capabilities for new programs such as the Alternative Trade
   Adjustment Assistance Program (ATAA) for Older Workers and the Health
   Coverage Tax Credit, as well as reporting on the common measures using the Trade
   Act Participant Report (TAPR). In a recent study, the Government Accountability
   Office (GAO) highlighted some of the challenges of these new program
   requirements.

   The GAO study, “Trade Adjustment Assistance: Labor Should Take Action to
   Ensure Performance Data Are Complete, Accurate and Accessible, April 2006,” was
   conducted between December 2004 and March 2006, and included 46 states
   administering the TAA program. A major finding was that data collection and
   validation varied from state to state with one state out of every five using a manual
   process to compile TAPR data, and many states using an MIS with limited capacities
   to produce timely, accurate and complete reports. In fact, the GAO found that only
   15 of 46 states surveyed had an MIS with all three of the following capabilities:
   performing edit checks to prevent data errors, identifying dates TAA participants
   completed WIA-funded services, and allowing staff to query the system to assess
   data reliability and completeness.

   In reviewing the GAO findings, the Department has determined that there is a need
   for additional investment in TAA MIS in order to achieve timely, accurate, and
   reliable program information.

5. Availability of Funds for System Upgrades. Although the annual funding
   agreement limits a state to spending no more than 15 percent of training and job
   search and relocation funds on administration, this one-time, $250,000 lump sum is
   to be spent entirely on upgrading the state’s MIS.

6. Expected Use of Funds. The Department is providing a one-time allotment of
   $250,000 for each state to invest in MIS improvements. Use of these funds for day-
   to-day administration activities is not authorized.

                                       - 3 -

Funding may be used to develop new reporting systems or enhance those systems
currently in place. States should consider prioritizing system improvements that
result in the three capabilities identified by the GAO: 1) performing edit checks to
prevent data errors; 2) identifying dates TAA participants completed WIA-funded
services; and 3) allowing staff to query the system to assess data reliability and
completeness.

When planning the use of these new resources to address the three capabilities
identified by the GAO, states should take the following into account:

   •   GAO Capability #2 – In addressing this issue, states should work toward
       producing integrated participant records and reports across workforce
       investment programs, as discussed in the July 2004 Federal Register notice
       announcing the Employment and Training Administration’s (ETA)
       Management Information and Longitudinal Evaluation (EMILE) proposal.
       While another Federal Register notice will be published shortly that makes
       significant changes to the original EMILE proposal, the ability to submit
       integrated information on businesses and individuals across state-
       administered programs, including the TAA program, will remain.

   •   GAO Capability #3 – In planning to address this issue, states are encouraged
       to assess their ability to produce the appropriate extract files to be used with
       ETA’s Data Validation and Reporting Software (DVRS) to meet their data
       element validation requirements, as defined in TEGL 3-03, Change 3, as part
       of their overall efforts to address data reliability issues.

Several states have also expressed the need to upgrade their existing case
management systems to fully include all components of the TAA program -- ATAA
and HCTC. Ideally, these systems would interface with other workforce investment
programs in the state such as the Workforce Investment Act (WIA), Wagner-Peyser
Employment Service and Rapid Response to allow staff to track and report
outcomes on the common measures while avoiding duplication of services.

If, after an assessment of its current MIS, any state believes that it does not need the
full $250,000 for MIS upgrades, the state may submit a written proposal to the
Department for use of the funds for an alternative administration project such as
staff training or concentrated outreach. Such a proposal must indicate how the
investment will improve overall program management and performance.

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7. Program Reporting. Financial reporting for these funds will be recorded under the
   administration category on the SF-269, Financial Status Report.

8. Action Required. States should assess their MIS and determine their priorities for
   system improvements.

9. Inquiries. States should direct all inquiries to the appropriate ETA regional office.

Attachment: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2006/TEGL08-06_Att1.pdf

Trade Adjustment Assistance (TAA) Program
Fiscal Year 2006 End of Year Award Distribution

Job Search
Training and Total Special
Reserve Relocation Program Administrative Total
State Funds Allowances Award Award Administration Allocation
[1] [2] [3] [4] [5] [6]
[1+2] [3*0.15] [3+4+5]
Alabama $279,117 $95,767 $374,884 $250,000 $56,233 $681,117
Alaska $45,415 $15,582 $60,997 $250,000 $9,150 $320,147
Arizona $257,818 $88,460 $346,278 $250,000 $51,942 $648,220
Arkansas $184,911 $63,445 $248,356 $250,000 $37,253 $535,609
California $701,588 $240,721 $942,309 $250,000 $141,346 $1,333,655
Colorado $150,709 $51,709 $202,418 $250,000 $30,363 $482,781
Connecticut $158,510 $54,386 $212,896 $250,000 $31,934 $494,830
Delaware $6,865 $2,356 $9,221 $250,000 $1,383 $260,604
District of Columbia $0 $0 $0 $0 $0 $0
Florida $353,886 $121,421 $475,308 $250,000 $71,296 $796,604
Georgia $164,673 $56,501 $221,174 $250,000 $33,176 $504,350
Hawaii $0 $0 $0 $250,000 $0 $250,000
Idaho $252,473 $86,626 $339,099 $250,000 $50,865 $639,964
Illinois $812,893 $278,910 $1,091,803 $250,000 $163,770 $1,505,573
Indiana $620,438 $212,877 $833,315 $250,000 $124,997 $1,208,312
Iowa $505,651 $173,493 $679,144 $250,000 $101,872 $1,031,016
Kansas $293,175 $100,591 $393,766 $250,000 $59,065 $702,831
Kentucky $533,214 $182,950 $716,164 $250,000 $107,425 $1,073,589
Louisiana $64,700 $22,199 $86,900 $250,000 $13,035 $349,935
Maine $424,766 $145,741 $570,507 $250,000 $85,576 $906,083
Maryland $55,470 $19,032 $74,503 $250,000 $11,175 $335,678
Massachusetts $591,568 $202,972 $794,539 $250,000 $119,181 $1,163,720
Michigan $1,183,131 $405,942 $1,589,074 $250,000 $238,361 $2,077,435
Minnesota $423,088 $145,165 $568,254 $250,000 $85,238 $903,492
Mississippi $219,270 $75,233 $294,503 $250,000 $44,175 $588,678
Missouri $448,339 $153,829 $602,168 $250,000 $90,325 $942,493
Montana $117,180 $40,205 $157,385 $250,000 $23,608 $430,993
Nebraska $50,729 $17,406 $68,135 $250,000 $10,220 $328,355
Nevada $26,777 $9,188 $35,965 $250,000 $5,395 $291,360
New Hampshire $53,893 $18,491 $72,385 $250,000 $10,858 $333,243
New Jersey $179,397 $61,553 $240,949 $250,000 $36,142 $527,091
New Mexico $53,086 $18,214 $71,300 $250,000 $10,695 $331,995
New York $279,134 $95,773 $374,907 $250,000 $56,236 $681,143
North Carolina $1,533,355 $526,107 $2,059,463 $250,000 $308,919 $2,618,382
North Dakota $0 $0 $0 $250,000 $0 $250,000
Ohio $483,708 $165,964 $649,672 $250,000 $97,451 $997,123
Oklahoma $160,961 $55,227 $216,189 $250,000 $32,428 $498,617
Oregon $553,717 $189,985 $743,702 $250,000 $111,555 $1,105,257
Pennsylvania $1,574,565 $540,247 $2,114,812 $250,000 $317,222 $2,682,034
Puerto Rico $10,562 $3,624 $14,186 $250,000 $2,128 $266,314
Rhode Island $171,236} .. $58,752 $229,988 $250,000 $34,498 $514,486
South Carolina $461,201 $158,242 $619,443 $250,000 $92,916 $962,359
South Dakota $79,017 $27,111 $106,128 $250,000 $15,919 $372,047
Tennessee $283,246 $97,184 $380,430 $250,000 $57,065 $687,495
Texas $1,177,618 $404,051 $1,581,669 $250,000 $237,250 $2,068,919
Utah $191,634 $65,751 $257,386 $250,000 $38,608 $545,994
Vermont $84,176 $28,881 $113,057 $250,000 $16,959 $380,016
Virginia $603,352 $207,015 $810,367 $250,000 $121,555 $1,181,922
Washington $1,516,426 $520,299 $2,036,724 $250,000 $305,509 $2,592,233
West Virginia $451,518 $154,920 $606,438 $250,000 $90,966 $947,404
Wisconsin $997,286 $342,177 $1,339,464 $250,000 $200,920 $1,790,384
Wyoming $1,655 $568 $2,223 $250,000 $333 $252,556
National Total $19,827,100 $6,802,848 $26,629,948 $12,750,000 $3,994,491 $43,374,439

RESCISSIONS: None
EXPIRATION DATE: Continuing