Program Year 2003 dislocated worker fund recapture and reallotment

Official letter (https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2004/TEGL17-03.html):

Employment and Training Administration Advisory System
U.S. Department of Labor
Washington, D.C. 20210
CLASSIFICATION: Dislocated Workers
CORRESPONDENCE SYMBOL: OWI
DATE: February 23, 2004

TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 17-03

TO: ALL STATE WORKFORCE AGENCIES
ALL ONE-STOP CENTER SYSTEM LEADS

FROM: EMILY STOVER DeROCCO
Assistant Secretary

SUBJECT: Reallotment of Workforce Investment Act (WIA) Title I Formula-Allotted Funds for Dislocated Worker Activities

1. Purpose. To provide adjusted funding levels for Program Year (PY) 2003 allotments for the Dislocated Worker program under WIA Title I Section 132(c) through the recapture and reallotment mechanism.

2. References. A. TEGL 23-02.
B. Workforce Investment Act (Public Law 105-220).

3. Background. On April 1, 2003, TEGL 23-02 provided states and outlying areas with WIA Title I Adult, Dislocated Worker and Youth Activities allotments for PY 2003 and alerted states about the conditions for the recapture and reallotment of funds as required under WIA Sections 127(c) and 132(c). Under WIA Section 132(c), the Secretary conducts a reallotment of Dislocated Worker formula funds based on state financial reports submitted at the end of the Program Year. The procedures the Secretary uses for recapture and reallotment of funds are described in WIA regulations at 20 CFR Section 667.150. We will not recapture any PY 2003 funds for the Adult and Youth programs because all states met the statutory thresholds. For the Dislocated Worker program, however, a total of $4,041,974 in unobligated funds will be recaptured from one state and reallotted to the remaining states, as required by WIA Section 132(c).

4. Notice of Obligation (NOO) Adjustment. Notices of Obligation and Deobligation for the states will be issued to reflect the recapture and reallotment of these funds. The adjustment of funds will be made to the FY 2004 advance portion of the PY 2003 allotments, which were issued in October 2003. Attached is a table displaying the net changes to PY 2003 formula allotments and a description of the reallotment methodology.

5. Procedures and Reporting. Neither WIA statutory language nor WIA regulatory language provides specific requirements by which a state must distribute recaptured funds among the state itself and any local areas, so states have the flexibility to determine the methodology to be used. For any state from which funds are being recaptured, WIA Section 132(c) (5) requires the Governor to prescribe equitable procedures for making funds available between the state and local areas.

For reporting purposes, the recapture/reallotment amount must be reflected (decrease or increase) in the “Total Federal Funds Authorized” line of any affected FY 2004 WIA Financial Status Reports (Statewide Activities, Statewide Rapid Response, Local Dislocated Worker Program Activities, Local Administration) in a manner consistent with the method of distribution of these amounts to states and local areas. An explanation of the adjustment should be included in the remarks sections of the adjusted reports.

6. Action Required. State agencies are requested to provide this guidance letter to the appropriate WIA state and local staff.

7. Inquiries. Questions regarding the revised allotments should be directed to the appropriate Regional Office.

8. Attachments.
A. WIA Dislocated Worker Activities, PY 2003 Reallotment to States.
B. WIA Dislocated Worker Activities, PY 2003 Revised Allotments with Reallotment.
C. Dislocated Worker State Formula PY 2003 Reallotment Methodology.

RESCISSIONS: [none listed]
EXPIRATION DATE: Continuing

Official Attachment A (https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2004/TEGL17-03_AttachA.xls):

WIA Dislocated Worker Activities, PY 2003 Reallotment to States

• Including rescissions and prior year recapture/reallotment amounts.

** Includes Navajo Nation.

Official Attachment B (https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2004/TEGL17-03_AttachB.xls):

WIA Dislocated Worker Activities, PY 2003 Revised Allotments with Reallotment

• Includes funds allocated to the Navajo Nation.

Official Attachment C (https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2004/TEGL17-03_AttachC.html):

ATTACHMENT C
Dislocated Worker State Formula
PY 2003 Reallotment Methodology

Source data: State WIA 6/30/03 financial status reports
Statewide Activities (plus State Administrative breakout)
Rapid Response Activities
Local Administration
Local Dislocated Worker Program

Dislocated Worker program = sum of:
Estimated Dislocated Worker portion of Statewide Activities (less State Administrative portion)
Rapid Response Activities
Estimated Dislocated Worker portion of Local Administration
Local Dislocated Worker program

Years covered: PY 2002 and FY 2003

Methodology for disaggregating Statewide Activities/Local Admin report data by program:

                            Statewide Activities – 15%                  Local Administration – 10%
Auth                        Fed NOO $ to State by pgm                 Prorated using reported Local Program Auth by program
                            less est Local Admin Auth by pgm
                            less rptd Local Pgm Auth by pgm
                            less rptd Rapid Response Auth (DW only)
Oblig                       Prorated using Statewide Auth est by pgm   Considered 100% Obligated

Reallotment calculations:

(1) Each state’s obligated balance of PY 2002 (including FY 2003) funds for the Dislocated Worker (DW) program is calculated. State obligations are considered to be the total of the estimated DW share of statewide activities obligations, Rapid Response obligations, 100% of local DW program authorized, and 100% of estimated DW portion of local admin authorized. The DW total unobligated balance is the DW 2002 allotment amount (adjusted for rescissions and PY 2002 recapture/reallotment amounts) less the calculated total DW obligations. (Navajo Nation funds are added back to the New Mexico and Arizona for reallotment purposes and treated like a local area.)

(2) Section 667.150 of the regulations provides that the recapture calculations exclude the reserve for state administration. Therefore, additional data on state administrative amounts included in the PY 2002 and FY 2003 Statewide Activities amounts authorized and obligated as of 6/30/03 are obtained (not normally available on WIA financial reports) from the states potentially liable for recapture.

(3) For those states potentially liable for recapture, the DW portion of the state administrative amounts authorized and obligated is estimated using the DW relative share of the state allotment amounts for all programs (adjusted for rescissions, but not the PY 2002 reallotment). Actual DW portions reported by states, rather than estimates, are used when provided. The DW total allotment for these states is reduced by the DW portion of the state administrative amount authorized and the DW total obligations for these states are reduced by the DW portion of the state administrative amounts obligated. These calculations are done separately for PY 2002 and FY 2003.

(4) States (including those adjusted by State administrative data) with unobligated balances for combined PY 2002/FY 2003 exceeding 20% of the combined PY2002/FY2003 DW allotment (adjusted for rescissions and PY 2002 recapture/reallotment amounts) will have their DW 2003 funding reduced (recaptured) by the amount of the excess.

(5) As calculated above, states with unobligated balances not exceeding 20% will receive a share of the total recaptured amount based on their share of the total PY 2002/FY2003 DW allotments amount (adjusted for rescissions and PY 2002 recapture/reallotment amounts) for all such states.