Final PY 1997 Wagner-Peyser allotments to states

U.S. DEPARTMENT OF LABOR
Employment and Training Administration
Washington, D.C. 20210
CLASSIFICATION: ES
CORRESPONDENCE SYMBOL: TEESS
ISSUE DATE: May 1, 1997
RESCISSIONS: None
EXPIRATION DATE: Continuing

TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 08-96

TO: ALL STATE JTPA LIAISONS
ALL STATE WORKER ADJUSTMENT LIAISONS
ALL STATE EMPLOYMENT SECURITY AGENCIES
ALL ONE-STOP CAREER CENTER SYSTEM LEADS

FROM: ROBERT S. KENYON
Acting Administrator for Regional Management

SUBJECT: Final Planning Allotments for Program Year (PY) 1997 Basic Labor Exchange Activities

1. Purpose. To announce final planning allotments for PY 1997 basic labor exchange activities, required by Section 6(b)(5) of the Wagner-Peyser Act, as amended.

2. References. The Wagner-Peyser Act, as amended (P.L. 97-300); 20 CFR 652; TEGL No. 4-95 and TEGL No. 4-95 Changes 1 - 4.

3. Background. The Secretary of Labor is issuing final planning allotments for each State's share of PY 1997 funds for basic labor exchange activities. These allotments (Attachment I) are based on the FY 1997 appropriation of $761,735,000 and are distributed by the statutory formula described in Section 6 of the Act. The allotments will be published in the Federal Register. The data used are Calendar Year 1996 averages of civilian labor force (CLF) and number of unemployed individuals.

Section 6(b)(4) of the Act authorizes the Secretary of Labor to reserve up to 3 percent of the total fund availability to assure that each State will have sufficient resources to maintain statewide employment service (ES) activities. The setaside for distribution through an administrative formula for this program year is $22,312,050. The 3 percent distribution is included in the total final allotment. The setaside was distributed in two steps to States whose relative share of resources declined from the previous year. In Step 1, those States with a CLF below one million and that are also below the median CLF density were held harmless at 100 percent of their prior year relative share of resources. The remainder was distributed in Step 2 in pro rata shares to all other States that lost in relative share from the prior year but did not meet the size criteria for Step 1.

Ten percent of the total sums allotted to each State shall be reserved for use by the Governor to provide performance incentives for public ES offices; services for groups with special needs; and for the extra costs of exemplary models for delivering job services.

Differences between preliminary and final planning estimates are caused by the use of Calendar Year data as opposed to the earlier data used for preliminary planning estimates.

4. Postage Costs. Postage costs incurred by States during the conduct of ES activities are billed directly to the Department of Labor by the U.S. Postal Service. The total planning estimate does not include $18,000,000 of the total amount available, which is withheld for the payment of the States' ES penalty mail costs.

5. Inquiries. Questions regarding these final allotments and planning requirements may be directed to the ETA Regional Administrator.

Attachment: Final Planning Allotments

04/16/97
U.S. Department of Labor, Employment and Training Administration
Employment Service (Wagner-Peyser)
Final PY 1997 Allotments to States

First table: final allotments. Total: $761,735,000.

Second table: basic formula and 3% distribution.

• Funds are allocated to the 12 States whose relative share decreased from PY 1996 to the PY 1997 basic formula amount and which have a Civilian Labor Force (CLF) below one million and are below the median CLF density. These States are held harmless at 100% of their PY 1996 relative share.

** The balance of the 3% funds are distributed to the remaining 23 States losing in relative share from PY 1996 to their PY 1997 total allotment amount.