Applications for WIA Section 503 incentive grants, PY 2003

Signed letter

Official PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2005/TEGL20-01_Ch3.pdf

CLASSIFICATION

EMPLOYMENT AND TRAINING ADMINISTRATION WIA/Performance Measures
ADVISORY SYSTEM CORRESPONDENCE SYMBOL
U.S. DEPARTMENT OF LABOR PROTECH
Washington, D.C. 20210 DATE

May 12, 2005

TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 20-01, Change 3

TO: ALL STATE WORKFORCE LIAISONS
    ALL STATE WORKFORCE AGENCIES
FROM: EMILY STOVER DeROCCO
      Assistant Secretary

SUBJECT: Application Process for Workforce Investment Act (WIA)

Section 503 Incentive Grants, Program Year (PY) 2003
Performance

1. Purpose. This guidance letter updates the procedures states
should follow to apply for WIA section 503 Incentive Grants.

2. References. Workforce Investment Act of 1998 (WIA) (Pub. L. 105-

220) sections 174, 211, and 503 (29 U.S.C. 2919, 20 U.S.C. 9211,
9273); Training and Employment Guidance Letter (TEGL) No. 8-99,
Negotiating Performance Goals, and Incentives and Sanctions
Process under title I of the WIA (March 3, 2000); TEGL No. 14-00,
Change 1, Workforce Investment Act Performance Reporting System
(November 19, 2001); TEGL No. 14-03, Performance Reporting
Submission Procedures for the Workforce Investment Act
Standardized Record Data (WIASRD) and the Annual Report under
title 1-B of the Workforce Investment Act (November 13, 2003); 20
CFR part 664, 666.200 - 666.230, and 666.205(c); and Carl D.
Perkins Vocational and Technical Education Act (Perkins Act)
(Pub. L. 105-332) section 111(a) (20 U.S.C. 2302(9), 2321(a)).

3. Background. Section 503 of the Workforce Investment Act provides
for incentive grants to reward states for successful performance
in workforce and education programs. The provisions authorizing
funding for incentive grant awards are found in WIA section
174(b) (2) (D) for workforce investment services (29 U.S.C.
2919(b) (2) (D)), Adult Education and Family Literacy Act (AEFLA)
section 211(a) (3) for adult education activities (20 U.S.C.
9211(a) (3)), and the Carl D. Perkins Vocational and Technical
Education Act (Perkins Act) section 111(a)(1)(C) for vocational
education activities (20 U.S.C. 2321(a)(1)(c)). Fiscal Year 2004
funding available for PY 2003 performance totals $16,605,048.

RESCISSIONS                         EXPIRATION DATE

Continuing

The Department of Labor regulations on incentive awards may be
found at 20 CFR 666.200 through 666.230.

4. Eligibility. The list of states eligible to receive incentive
grant awards for PY 2003 performance, and the amounts of the
awards for which they are eligible, are scheduled for publication
in the Federal Register on April 27, 2005. Eligibility for a
section 503 incentive grant award was determined by state
performance under WIA title I, AEFLA, and Perkins Act programs.
States that are eligible for incentive grant awards have 45 days
from the April 27, 2005, Federal Register notice to submit their
applications for these awards.

5. Amount of Incentive Awards. WIA section 503(c) (1) sets the range
of incentive grant awards from $750,000 to $3 million, depending
upon the amount of appropriated funds available. If the amount
available for grants is insufficient to award the minimum grant
to each eligible state, the minimum and maximum grant amounts
will be adjusted by a uniform percentage as required by WIA
section 503(c) (2). For the PY 2003 performance awards, the
criterion for determining the amount of the incentive grant
within this range will be the size of the state’s programs, as
measured by the state’s relative share of the combined title I,
AEFLA, and Perkins Act formula grants awarded to that state.

6. Authorized Use of Funds. 20 CFR 666.210 authorizes the state to
use its incentive grant award to carry out an innovative program
consistent with the requirements of any one or more of the
programs within title I of WIA, AEFLA, or the Perkins Act. This
provides states greater flexibility in using these funds, and the

Governors and state agencies are not limited to only one type of
innovative program.

Incentive grant funds awarded to states will be identified as WIA
title V, Program Year 2004 funds and must be expended by June 30,
2007.* Because this time frame differs from the typical program
time frames used by AEFLA and the Perkins Act, cooperation among

state agencies to ensure timely expenditure of these funds is
strongly encouraged.

States may expend funds for activities authorized under WIA title
I, AEFLA, and/or the Perkins Act. While DOL administrative
provisions apply to the statutory life of the funds, the
individual program provisions apply to the use of funds. For
example, if the incentive funds will be used for a WIA title I
activity for youth services, the applicable program requirements
for youth programs in 20 CFR 664 and WIA title I would apply to
that portion of the funds. If innovative Adult Education and

1 Typically, States would have three years to spend a Program Year’s funds. However, because
incentive grants, taken from FY 2004 funds, will be awarded at the end of Program Year 2004,
States will be given through June 30, 2007, to spend the funds.

Literacy and/or Perkins Act programs were planned, the provisions
of AEFLA, the Perkins Act and the Education Department’s General
Administrative Regulations (EDGAR) (34 CFR 74-77, 79-82, 85-86,
and 97-99) would apply to that portion of the funds.

The Secretaries of Labor and Education encourage Governors and
their state agency representatives to take advantage of the broad
flexibility Congress intended for these funds by planning for
activities that are:

A. Innovative — Services and activities beyond those the state
conducts with its regular funds from these programs,
particularly activities that are authorized through more
than one program.

B. Comprehensive and coordinated — Combined activities and
services that are authorized by different programs.

C. Targeted to improving system performance — Activities that
serve needs and populations that are likely to result in
improving state systems of employment, training, and
education, especially those linking to high-growth
industries and occupations.

In addition, states are encouraged to plan activities that
promote cooperation and collaboration among the agencies
administering WIA title I, AEFLA, and Perkins Act programs.

7. Application Process. States that qualify must apply by sending
an original and two copies of an application for an incentive
grant to the Department of Labor, which will work with the
Department of Education to review the applications (electronic
transmissions are allowable as long as electronic signatures are
included). The application may take the form of a letter from
the Governor to DOL’s Assistant Secretary for Employment and

Training (addresses are listed below), and must include the
following:

A. Assurances

The application must include a Standard Form 424 (Application for
Federal Assistance) form and assurances that:

1) The state legislature was consulted with respect to the
development of the application.

2) The application was approved by the Governor, the
eligible agency for adult education (as defined in
section 203(4) of WIA (20 U.S.C. 9202(4))) and the state
agency responsible for vocational and technical education
programs (as defined in section 3(9) of Perkins III (20
U.S.C. 2302(9)).

3) The state and the eligible agency, as appropriate, exceeded
the state adjusted levels of performance for WIA title I,
the state adjusted levels of performance for AEFLA, and the
performance levels established for Perkins Act programs.

B. Additional Information

The state must provide a description of the planned use of
incentive grants as part of the application process to ensure
that the state’s planned activities are authorized under the

WIA title I, AEFLA, and/or Perkins Act, as required by WIA
section 503(a). When describing the planned activities in
response to number 2, below, the state should note which program
the authorized activities fall under.

The other descriptive information (see numbers 3 and 4, below)
about the state’s plan is requested for inclusion in the state’s
incentive grant document. The Departments of Labor and Education
will use this information in monitoring the use of incentive
grants and in reports to Congress on state performance. (Note:
The state’s receipt of an incentive grant is not contingent on
this other descriptive information, but this information is
required for the WIA title V Grant Agreement.)

1) Identify the state agency and contact person that will
receive and administer the funds on behalf of all state
agencies. The agency may be the state workforce agency or
other entity associated with these funds. This agency will
be responsible for reporting on the use of all funds. If
agencies other than the grant recipient will be undertaking
program activities with the funds, please identify the sub-
grantee(s) and the amount(s) they will be provided.

2) Describe the planned activities. This information should
include the legislative authority for the activity and a
description of how the activities are innovative,
comprehensive and coordinated, and targeted to improving
system performance. Include information on how services
build on, rather than duplicate, services offered under the
AEFLA and Perkins Act state grants, or WIA title I.
Describe how these funds are being used collaboratively, if

at all, with other partner programs to benefit service to
clients.

3) Describe ways in which the activities are related to
improving performance levels on the state indicators of
performance for each different activity planned. For
example, describe how the activities will strengthen the
state’s ability to improve literacy levels, increase
employment, increase transitions to further education and
training, and/or improve technical and academic skills.

4) Describe any state consultation with stakeholder groups and
the general public on the use of incentive award funds.
States are encouraged to seek public input on the use of
state incentive funding, including that of representatives
of adult education, vocational education programs, and
other workforce system partners.

5) Provide a completed set of the Standard Form 424 (A) Budget
Sections D and E only, as attached.

8. Action Required. As explained in 20 CFR 666.205(c), states will
have 45 days from the date of publication of the Federal Register
notice announcing eligible states and incentive amounts to submit
the required application materials. Applicants are advised that
mail in the Washington, D.C. area may be delayed due to mail
decontamination procedures. Therefore, states are encouraged to
submit applications electronically. Application materials are
due by June 10, 2005 and should be sent to:

Emily Stover DeRocco

Assistant Secretary for Employment and Training
U.S. Department of Labor

200 Constitution Avenue, NW, Room S-5206
Washington, D.C. 20210

Attn: Esther R. Johnson

Or electronically:
[email protected]

Funds must be obligated by June 30, 2005. States are encouraged
to submit their applications prior to the due date. The ETA
regional administrators will be available to provide any

technical assistance to states in preparing and expediting the
applications.

9. Attachments. Standard Forms 424 and 424(A).

Attached application forms

• Standard Form 424, Application for Federal Assistance: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2005/TEGL20-01_Ch3_Attach1.pdf
• Standard Form 424(A), Budget Information for Non-Construction Programs: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2005/TEGL20-01_Ch3_Attach2.pdf

These are blank application forms with completion instructions; the signed guidance letter above is transcribed in full.