Recovery Act workforce funding clarifications

Accessible letter PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2009/TEGL14-08_Ch1acc.pdf

CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION
               ADVISORY SYSTEM                        CORRESPONDENCE SYMBOL
                                                      OWI
          U.S. DEPARTMENT OF LABOR
                                                      DATE
             Washington, D.C. 20210                     April 15, 2009



ADVISORY:        TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 14-08,
                 CHANGE 1

TO:              STATE WORKFORCE AGENCIES
                 STATE WORKFORCE ADMINISTRATORS
                 STATE WORKFORCE LIAISONS
                 STATE AND LOCAL WORKFORCE BOARD CHAIRS AND
                 DIRECTORS
                 STATE LABOR COMMISSIONERS

FROM:            DOUGLAS F. SMALL /s/
                 Deputy Assistant Secretary

SUBJECT:         Guidance for Implementation of the Workforce Investment Act and Wagner-
                 Peyser Act Funding in the American Recovery and Reinvestment Act of 2009
                 and State Planning Requirements for Program Year 2009, Change 1

1. Purpose. TEGL 14-08, Change 1 has five purposes:
   • To clarify the period of the American Recovery and Reinvestment Act (the Recovery Act)
      funding availability at the local level for the Workforce Investment Act (WIA) Adult,
      Dislocated Worker, and Youth programs;
   • To address recapture and reallocation of unobligated local WIA Recovery Act funds;
   • To change the funds transfer limit between Recovery Act Adult and Dislocated Worker
      programs from 20 to 30 percent;
   • To encourage local areas to serve migrant and farmworker youth with Recovery Act youth
      formula funds; and
   • To announce the location of frequently asked questions and answers on the Employment and
      Training Administration Web site.

2. References.
   • Workforce Investment Act of 1998, as amended (29 U.S.C. 2801 et seq.)
   • WIA Regulations, 20 CFR parts 652 and 660-671
   • The American Recovery and Reinvestment Act of 2009 (P.L. 111-5)
   • TEGL No. 14-08, “Guidance for Implementation of the Workforce Investment Act and
      Wagner-Peyser Act Funding in the American Recovery and Reinvestment Act of 2009 and
      State Planning Requirements for Program Year 2009”
   • FY 2009 Omnibus Appropriations Act (P.L. 111-8)



 RESCISSIONS    None                                 EXPIRATION DATE     Continuing

3. Period of availability of funds at the local level. TEGL 14-08 stated that local areas have
   until the end of PY 2010 (June 30, 2011) to expend WIA Youth Recovery Act funds (p. 25).
   The Employment and Training Administration (ETA) has received several inquiries as to
   whether the same period of availability for expenditure applies to other WIA Recovery Act
   programs. This same expenditure period for local areas also applies to the WIA Adult and
   Dislocated Worker Recovery Act funds.

4. Recapture and reallocation of unobligated funds. For normal WIA formula allotments, ETA
   recaptures and reallots excess unobligated funds among states, and Governors may recapture
   and reallocate excess unobligated funds among local areas in the state at the end of each
   program year, per WIA Section 127 (a), 128(c) and 133(b). Because Recovery Act WIA funds
   are only available for three months in PY 2008, ETA has determined that moving funds so soon
   afterward defeats the purpose of the Act. Thus, ETA has determined not to apply a reallotment
   to Recovery Act funds for PY 2008. For similar reasons, ETA has determined that it is
   imprudent to permit Governors to recapture and reallocate Recovery Act funds at the end of PY
   2008 as well. Governors may recapture and reallocate Recovery Act funds that are eligible for
   recapture and reallocation in accordance with 20 CFR 667.160 at the end of PY 2009. The
   WIA recapture and reallocation requirements, including the calculations relating to the
   percentage of funds that have been obligated, are to be applied to Recovery Act WIA formula
   funds separately from the application of these requirements to the PY 2009 regular WIA
   formula funds.

5. Change in fund transfer limit between Adult and Dislocated Worker formulas. WIA
   Section 133(b)(4) provides the authority for local workforce areas, with approval of the
   Governor, to transfer up to 20 percent of the Adult Activities funds to Dislocated Worker
   Activities, and up to 20 percent of Dislocated Worker Activities funds to Adult Activities.
   TEGL 14-08 provided that the 20 percent limit of WIA sec 133(b)(4) applied to Recovery Act
   funds. Subsequently, the FY 2009 Omnibus Appropriations Act raised the transfer limits
   between Adult and Dislocated Worker funds to 30 percent, which is applicable for the life of the
   funds. Because Recovery Act funds are supplemental FY 2009 funds, the 30 percent transfer
   limit also applies to these funds. Per TEGL 14-08, waivers of the funds transfer limit between
   Adult and Dislocated Worker programs above 30 percent do not apply to Recovery Act funds.

6. Serving migrant and farmworker youth with summer employment opportunities. As part
   of ETA’s strategic vision for service delivery under WIA (TEGL 28-05), ETA encouraged
   states and local areas to focus youth services on those youth most in need, including migrant
   youth. Migrant and farmworker youth are often disconnected from both education and the
   workforce, and could significantly benefit by participating in summer youth employment
   opportunities. ETA strongly encourages state and local areas to work with workforce system
   grantees serving farmworkers and their dependents to outreach to and enroll farmworker youth
   in summer employment opportunities.

7. Recovery Act implementation: questions and answers. Questions and answers related to the
   implementation of WIA and Wagner-Peyser formula programs under the Recovery Act will be
   posted at http://www.doleta.gov/recovery/. Additional questions and answers will be posted to
   this Web site as they become available.

8. Inquiries. Questions regarding this guidance should be directed to the appropriate ETA
   Regional Office.
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