2010 WIA and Wagner-Peyser state plans

Accessible letter PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2010/TEGL21-09acc.pdf

CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                WIA State Plans
               ADVISORY SYSTEM                           CORRESPONDENCE SYMBOL
                                                         OWI
          U.S. DEPARTMENT OF LABOR
                                                         DATE
             Washington, D.C. 20210                      April 15, 2010



ADVISORY:         TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 21-09

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

FROM:             JANE OATES /s/
                  Assistant Secretary

SUBJECT:          Instructions for Submitting Workforce Investment Act and Wagner-Peyser Act
                  State Plans and Waiver Requests for Program Year 2010.

1. Purpose. The purpose of this Training and Employment Guidance Letter (TEGL) is to
    provide information on:

   •   Options for states to have in place approved Workforce Investment Act and Wagner-
       Peyser Act (WIA/W-P) State Plans and waivers for Program Year (PY) 2010.
   •   When State Plan modifications are required.

   In addition, this TEGL provides information on the Employment and Training
   Administration’s (ETA) plan to seek volunteers to work on an implementation strategy for
   using regression analysis in the negotiation of performance levels.

    2. References.

   •   Wagner-Peyser Act, as amended (29 U.S.C. 49 et seq.)
   •   Workforce Investment Act of 1998, as amended (29 U.S.C. 2801 et seq.)
   •   WIA Regulations, 20 CFR parts 652 and 660-671
   •   Priority of Service for Covered Persons Regulations (Veterans’ Priority of Service
       Regulations), 20 CFR part 1010.100-330
   •   The American Recovery and Reinvestment Act of 2009 (P.L. 111-5)
   •   Planning Guidance for the Strategic State Plan for Title I of the Workforce Investment
       Act of 1998 (WIA) and the Wagner-Peyser Act (W-P) [73 FR 72853 (Dec. 1, 2008)]
       (OMB No. 1205-0398)
   •   State Unified Plan Planning Guidance [73 FR 73730 (Dec. 3, 2008)] (OMB No. 1205-
       0398)

 RESCISSIONS                                             EXPIRATION DATE
 None                                                    Continuing

  •   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”
  •   TEGL No. 14-08, Change 1, “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”
  •   TEGL No. 17-05, “Common Measures Policy for the Employment and Training
      Administration’s (ETA) Performance Accountability System and Related Performance
      Issues.”
  •   TEGL No. 09-08, Change 1, “Revised National Performance Goal Targets for the
      Government Performance Results Act (GPRA) to support Negotiating State Performance
      Goals for the Workforce Investment Act Title IB Programs, Wagner-Peyser Act Funded
      Activities for Program Year 2009.”

3. Background. All WIA/W-P State Plans currently in place will expire on June 30, 2010,
and all approved waivers currently in place will expire before or on June 30, 2010. This is the
end of the five-year planning cycle which began on July 1, 2005. States must have approved
State Plans in place to receive formula allotments under WIA and the Wagner-Peyser Act.
Given that the Department of Labor (DOL) is anticipating the reauthorization of WIA within the
next year, ETA is providing two options to extend or modify current plans in order to enable
states to have an approved State Plan in place for PY 2010 without engaging in full five-year
planning. If WIA is reauthorized and requires changes to WIA/W-P State Plans, ETA will issue
subsequent guidance on implementing any new requirements.

4. State Plan Options for PY 2010. There are two options for states to secure approval of
their WIA/W-P State Plan for PY 2010, the first year of the new PY 2010-2014 five-year
planning cycle, July 1, 2010 – June 30, 2015.

  A. Option I: ETA approves an extension of the current WIA/W-P State Plan for an
  additional year, through PY 2010 (July 1, 2010 – June 30, 2011).

      As noted above, WIA requires states to have an approved WIA/W-P State Plan in place in
      order to receive WIA/W-P allotments. ETA will consider this legislative requirement
      met by approving for all interested states an extension of their current State Plan for an
      additional year. ETA will also approve waivers for an additional year as described in
      Section 5.A below. Information on the process for State Plan extensions and waiver
      extensions is provided below in Section 6.A.

  B. Option II: ETA reviews and approves the WIA/W-P State Plan modification
  submitted by a state for PY 2010.

      Section 112(d) of WIA provides that states may submit modifications to State Plans at
      any time during the five-year period covered by the Plan. Any state that wishes to revise
      its State Plan instead of receiving approval for an extension of its current Plan should
      submit a State Plan modification for the period of PY 2010, July 1, 2010 through June 30,
      2011.

      Under WIA regulations, states that have undergone substantial changes may be required

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      to submit a modification instead of an extension. For instance, some states are required
      to submit modifications to describe organizational changes that have occurred since their
      last modification. States that meet the criteria provided below must submit a
      modification. Information on the process for submitting a State Plan modification, due
      May 14, 2010, is provided below in Section 6.B.

      The WIA regulations at 20 CFR 661.230, and the regulations at 20 CFR 652.212 which
      relate to the Wagner-Peyser Act portions of the Plan, require modifications in certain
      circumstances. These regulations provide that modifications are required when there are:

           •    Changes in Federal or state law or policy that substantially change the
                assumptions upon which the Plan is based, to include any enhancements needed
                to State Plans pursuant to the issuance of the final rule on Veterans’ Priority of
                Service (20 CFR 1010.100-330);
           •    Changes in the statewide vision, strategies, or policies;
           •    Changes in the methodology used to determine local allocation of funds;
           •    Reorganizations which change the working relationship with system employees,
                or changes in organizational responsibilities;
           •    Reorganization of the state agency designated to deliver services under the
                Wagner-Peyser Act;
           •    Changes in services delivered by state merit-staff employees;
           •    Changes to the membership structure of the State Board or alternative entity;
           •    Changes in Wagner-Peyser service delivery strategy;
           •    Changes in performance indicators. A state that has failed to meet performance
                goals and must adjust service strategies should submit a substantive
                modification; and
           •    Any similar substantial changes to the state’s workforce investment system.

      The requirements listed above apply to stand-alone plans as well as the WIA Title I and
      Wagner-Peyser Act portion of unified plans. In determining whether it is appropriate for
      your state to submit a modified State Plan, it may be helpful to review the State Plan in
      light of these requirements.

5. Waiver Options for PY 2010. Most states have waivers that expire on or before June 30,
2010. Many of these waivers apply to the American Recovery and Reinvestment Act (Recovery
Act) funds and these funds expire June 30, 2011. ETA encourages each state to consider
whether its approved waivers support the strategies outlined in its existing State Plan and match
the needs of its workforce system. This is an ideal time for states to consider whether new
waivers are needed, and whether currently approved waivers support their strategic goals.

For PY 2010, states can extend their existing waivers and/ or submit requests for new waivers.

  A. Extension of Existing Waivers through PY 2010 (July 1, 2010 – June 30, 2011).

      ETA will grant an extension of an additional year for existing waivers that have been
      approved, except in the following circumstances: (1) ETA has advised the state in prior
      correspondence that it did not anticipate approving an extension beyond June 30, 2010; or
      (2) ETA advises the state that there are significant performance issues related to the use

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     of the waiver or that the waiver as implemented is not in compliance with the terms
     prescribed in the approval letter.

     To ensure meaningful public comment as required by 20 CFR 661.420(5)(iv), ETA
     encourages states to notify the public of their intent to extend the existing waivers.
     Information on the streamlined process for the extension of waivers is provided in
     Section 6.A.

  B. New Waiver Requests for PY 2010.

     States wishing to request new waivers must submit full waiver plans to ETA, and states
     wishing to make adjustments to current waivers must also submit full waiver plans. The
     waiver plan must include all the required elements listed in the WIA regulations at 20
     CFR 661.420(c), and is subject to public comment requirements. If a state no longer
     intends to use a certain waiver, it should advise ETA of this and request that it not be
     extended.

     States should be aware that ETA is not able to waive provisions in the Recovery Act or
     Veterans Priority of Service regulations, nor OMB requirements such as the OMB Cost
     Principles or OMB Circulars. Waivers of most WIA provisions will also apply to
     Recovery Act funds, with the exception of the following waivers, as indicated in TEGL
     No. 14-08:

        •       Waiver of the funds transfer limit between the Adult and Dislocated Worker
                programs, which remains at 30 percent as described in TEGL No. 14-08 change 1
                Section 5.
        •       Waiver to permit the state to use a portion of rapid response funds to conduct
                statewide activities including incumbent worker training.

     ETA will publish forthcoming guidance on waiver flexibility, including for summer
     youth activities.

6. Actions Required for State Plans and Waivers.

   A. State Plan and Waiver Extensions.

      In order to avoid placing unnecessary burden on states, states do not need to submit
      anything in order to have their State Plan and waivers approved for an extension of one
      additional year. Unless a state elects or is required to submit a State Plan modification
      (instructions for which are provided in Section 6.B.), ETA will approve an extension of
      the existing State Plan for an additional year. ETA will grant an extension of each
      waiver unless one of the following conditions applies:

            •    ETA receives a written notification (letter or e-mail) from the state that it is not
                 interested in extending a specific waiver;
            •    ETA has advised the state in prior correspondence that it does not anticipate
                 approving an extension beyond June 30, 2010; or
            •    ETA advises the state that there are significant performance issues related to the

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           use of the waiver or that the waiver as implemented is not in compliance with the
           terms prescribed in the approval letter.

   ETA will send each state a letter by June 30, 2010 approving an extension of the
   existing State Plan for the period, July 1, 2010 - June 30, 2011, and identify the waivers
   that it is extending into PY 2010.

B. State Plan Modification and New Waiver Plan Submission.

  States that elect to or are required to submit a modification to the State Plan, or new
  waiver plan that the state wishes to have in place for all of PY 2010, must do so by May
  14, 2010. States have the option to submit their State Plan modifications or waiver
  requests in an electronic, hard copy, or CD-ROM format. ETA encourages electronic
  submissions to reduce the processing burden and to ensure timely receipt by ETA.

  The Federal Coordinator will confirm receipt of the State Plan modification within two
  business days of receipt and indicate the date for the start of the review period. When a
  state submits an incomplete State Plan modification or waiver plan, the period for review
  will not start until all required components have been received.

  Electronic Submission. States can submit a State Plan modification or waiver request
  electronically either by posting it on an Internet Web site that is accessible to ETA or by
  transmitting it through e-mail to ETA. States choosing to post on an Internet Web site
  should post the State Plan modification or waiver request on a Web site and send an e-
  mail to [email protected] and the appropriate ETA Regional Administrator. The e-
  mail must identify the URL for the State Plan modification or waiver request, provide
  contact information in the event of problems with accessing the Web site, and certify that
  no changes will be made to the version posted on the Web site after it has been submitted
  to ETA, unless ETA gives prior approval for such changes.

  States submitting their modification by e-mail should send it to [email protected]
  with a copy sent to the appropriate ETA Regional Administrator. If a state chooses to
  submit its modification or waiver request by transmitting it through e-mail, the state must
  submit it in Microsoft Word or PDF format.

  State Plan certifications with electronic signatures are acceptable. If a state chooses not
  to use an electronic signature, then the signature page must be submitted in hard copy
  with an original signature to the Federal Coordinator, and a copy to the ETA Regional
  Administrator.

  Hard Copy or CD-ROM Submission. States choosing to submit a hard copy should
  submit one copy of the modification or waiver request with an original signature to Janet
  Sten, the Federal Coordinator for Plan Review and Approval, and one copy to the
  appropriate ETA Regional Administrator. The address for the Federal Coordinator is as
  follows:

     Division of Workforce System Support
     Employment and Training Administration

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          U.S. Department of Labor
          200 Constitution Ave., NW, Room S-4231
          Washington, DC 20210
          ATTN: Janet Sten

      States submitting a State Plan modification or waiver request on CD-ROM should submit
      one copy to the Federal Coordinator at the address above, and one copy to the appropriate
      ETA Regional Administrator. If the modification on the CD-ROM does not include the
      signature of the Governor on the signature page, the state must submit electronically a
      signed signature page, or a hand-signed signature page in hard copy. Documents
      submitted on a CD-ROM must be in Microsoft Word or PDF format.

   C. State Plan Modification Content.

      States submitting a State Plan modification must follow the state planning instructions
      and questions included in Part II of the Stand-Alone Planning Guidance (73 Fed. Reg.
      72853, December 1, 2008) or Part III of the Unified Planning Guidance (73 Fed. Reg.
      73730, December 3, 2008). States may update their responses to these questions and
      modify a single part, many parts, or all of their State Plan. States are particularly
      encouraged to update their responses to the questions listed in TEGL No. 14-08,
      Appendix A, which were required as part of the State Plan modification to describe
      implementation of the Recovery Act, and to describe how the state is continuing to use
      Recovery Act and WIA funds to serve the substantial numbers of unemployed individuals
      who continue to seek the services of the One-Stop Career Center system.

      In TEGL No. 14-08, ETA required states to submit the responses to those questions in a
      stand-alone document to provide a publicly accessible document describing Recovery Act
      implementation. For any future modifications, including the May 14, 2010 modification,
      ETA encourages states to integrate responses to those questions into the Plan itself.

      Note that the respective ETA Regional Administrator will provide a copy of each plan
      modification that contains revisions related to veterans’ priority of service to the
      Veterans’ Employment and Training Service (VETS) Regional Administrator who will
      review it to ensure that the plan modification adequately addresses and adheres to
      Veterans’ Priority of Service provisions of the Jobs for Veterans Act.

7. Public Comment and Review. The WIA regulations at 20 CFR 661.230(d) provide that
modifications to the State Plan are subject to the same public review and comment requirements
that apply to the development of the original Plan. To facilitate public review and comment, as
well as DOL review of the modified Plans, ETA recommends that those states submitting a
modified Plan integrate the proposed modifications into the existing Plan following the format
provided in either the Stand-Alone Planning Guidance (73 FR 72853, Dec. 1, 2008) or Unified
Planning Guidance (73 FR 73730, Dec. 3, 2008), and attach a list to identify those portions of
the Plan that have been modified.

In keeping with ETA’s efforts to promote transparency, even states that are extending the life of
their existing Plan by one year are encouraged to notify the public of their intent, and make the
current Plan available to the public. Providing an opportunity for meaningful public input and

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comment during the development and life of the State Plan is a critical part of the strategic
planning process. The WIA regulations at 20 CFR 661.420(c)(5)(iv) require that states provide
meaningful public comment for new waiver plans as well. ETA also encourages states to notify
the public of their intent to extend current waivers.

8. Local Plan Development. Under 20 CFR 661.355, each Governor sets the policy for when
a Local Plan must be modified, such as significant changes in local economic conditions and
changes in financing available for WIA Title I and partner-provided WIA services. States
maintain the option to review their Local Plan modification policy, and to require that Local
Plans be modified according to state policy. Although ETA encouraged states to require that
Local Plans be modified for PY 2009, ETA leaves it entirely to the state to determine whether
or not to require that Local Plans be modified for PY 2010.

9. Guidance for States with Unified State Plans. States are authorized to submit a Unified
Plan under Title V, Section 501 of the Workforce Investment Act, and the Unified Planning
Guidance facilitates the development and submission of such a plan. As indicated in Section
4.A, ETA will consider the WIA legislative requirement that states have a State Plan in place to
be met by approving for all states an extension of their current WIA/W-P State Plan for an
additional year. This approval does not apply to the other programs included in a state’s
Unified Plan. ETA does not have the authority to approve those portions of a Unified Plan that
relate to programs or activities for which other Federal agencies exercise administrative
authority.

As indicated in Section 4.B, states can submit a modification request that covers PY 2010 in
lieu of extending their current WIA/W-P State Plan. States submitting a modification of a
Unified Plan should follow the Unified Planning Guidance (73 Fed. Reg. 73730, December 3,
2008). As indicated in the Guidance, the Federal Coordinator will ensure that each Federal
agency whose programs are included in the state’s Unified Plan, and the appropriate DOL
Regional Office, receive copies of the Unified Plan as modified.

Currently only three states have unified State Plans in place. ETA will provide additional
information to these states, and any other state using the modification process to move to a
Unified Plan. In the interim, if states have questions related to submitting a modification using
the unified planning guidance, they should contact the Federal Coordinator for Plan Review and
Approval (contact information is provided in Section 6.B). Any state that does not currently
have a Unified Plan and intends to move from a stand-alone Plan to a Unified Plan for PY 2010
should advise the Federal Coordinator of its intention upon receipt of this TEGL.

10. Negotiation of Levels of Performance. In 2009, states had the option of continuing to use
the goals negotiated for PY 2008 or negotiating new performance goals for PY 2009. A similar
policy will prevail for PY 2010. States may continue to use the PY 2009 goals, or negotiate
new goals for PY 2010. States that choose to extend their negotiated PY 2009 goals for an
additional year should notify the appropriate Regional Administrator of their intention. If a
state wishes to negotiate new goals, the state must submit proposed levels of performance to the
appropriate Regional Administrator. Those states submitting a modification that covers PY
2010 can include the proposed levels with the modification request.




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The Regional Administrator’s letter advising the state of the agreed-upon goals will constitute a
modification to the State Plan. For subsequent revisions to performance goals during the life of
the State Plan, the Regional Administrator’s letter advising the state of the agreed upon goals
will also constitute a modification to the State Plan. The state must ensure that the agreed-upon
goals are included in the state’s official copy of the State Plan, and that any published State
Plan, on the state’s Web site or through other forums, includes the agreed-upon goals. ETA will
incorporate the agreed-upon goals into the Regional and National Office copies of the State
Plan.

States should also note that the proposed levels of performance are subject to the same public
review and comment requirements that apply to State Plans and Plan modifications. When the
state submits the proposed levels to ETA, the state should confirm that it has made the proposed
levels available to the public for review and comment. States that choose to extend their
negotiated PY 2009 goals for an additional year are encouraged to notify the public of their
intent.

Further guidance about the negotiation of performance goals for PY 2010 is being issued
separately. Guidance regarding the negotiation of measures of One-Stop Career Center services
to Veterans, and specific outcome measures for the staff supported by Jobs for Veterans State
Grants will be issued separately by the Veterans’ Employment and Training Service.

11. Regression-Based Performance Approach. Those states that choose to negotiate new
performance goals for PY 2010 also have the option to participate in a pilot to use regression
analysis in the negotiation process for setting performance levels. ETA seeks volunteer states to
formulate an implementation plan for using regression analysis in the negotiation of
performance levels. Optional implementation in PY 2010 will allow volunteer states to work
with ETA to more fully refine the regression model, design a web-accessible site, and support
technical assistance and training efforts on the use of regression analysis as we move towards
full implementation of the use of regression analysis as part of the negotiations process for PY
2011.

States voluntarily adopting the new approach in PY 2010 will use model-derived performance
goals that will serve as the centerpiece for Federal-state performance levels negotiations. ETA
encourages these “first round” states to apply the adjustment factor results of the regression
model in negotiating levels for local areas as well. A regression-based approach to negotiating
performance levels will be implemented in all states and local workforce investment areas in
PY 2011. ETA’s implementation of this new approach represents a phase-in strategy of the new
goal-setting approach in volunteer states and enables ETA to work with these states to identify
implementation challenges before the initiative goes to national scale the following year. This
approach establishes a more unified, data-driven process for setting performance expectations
that factor in personal characteristics and adjusts performance expectations to align with
economic conditions and other factors that influence labor market outcomes.

Additional information about the negotiation of performance goals for PY 2010 will be
forthcoming in a separate TEGL. TEGL No. 09-08, Change 1, explains how regression analysis
was used to establish revised national performance targets required for the Government
Performance and Results Act.



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12. Tools and Resources. ETA maintains web-based resources that may facilitate the
development of State Plans and/or modifications. ETA posts WIA/W-P strategic planning
resources online at www.doleta.gov/usworkforce/wia-planning. We also encourage states to
take advantage of the information available at Workforce3one, an interactive knowledge sharing
and learning platform, available at www.workforce3one.org.

13. Inquiries. Please direct questions regarding this notice and instructions to the appropriate
Regional Office. States may also submit questions on the planning or waiver approval process
by e-mail to [email protected]. Responses to questions raised about the content of this
TEGL will be posted at www.doleta.gov/usworkforce/wia-planning.




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