Advance notice of revised PY 2001 dislocated worker allotments

Complete letter

Official HTML: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2002/TEGL26-01.html

Employment and Training Administration
Advisory System
U.S. Department of Labor
Washington, D.C. 20210
CLASSIFICATION
Dislocated Workers
CORRESPONDENCE SYMBOL
OAS
DATE
May 14, 2002
ADVISORY: TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 26-01
TO:
ALL STATE WORKFORCE LIAISONS
ALL STATE WORKER ADJUSTMENT LIAISONS
ALL STATE WORKFORCE AGENCIES
ALL ONE-STOP CENTER SYSTEM LEADS
/S/
FROM:
EMILY STOVER DeROCCO
Assistant Secretary
SUBJECT:
Advance Notice of Revised PY 2001 Allotments for Dislocated Worker Activities

1. Purpose. Last summer, Congress proposed and enacted a rescission of $177.5 million from the WIA Title I dislocated worker program for PY 2001. This notice is to provide to states advance notice of a planned determination by the Secretary of Labor on or before June 28, 2002, of revised Program Year (PY) 2001 allotments for the dislocated worker program under WIA Title I as a result of the congressional rescission contained in the Supplemental Appropriations Act, 2001 (Public Law 107-20). In furtherance of the implementation of that rescission, the Employment and Training Administration will revise applicable Notices of Obligation (NOO) on or before June 28, 2002. The President has proposed a supplemental appropriation to restore the amount rescinded from the dislocated worker formula program and that proposal is pending before Congress.
2. References. A. TEGL 12-00, dated March 6, 2001, TEGL 5-99, dated February 17, 2000, TEGL 3-01, dated August 16, 2001, and TEGL 3-01, Change 2, dated September 28, 2001.
B. Supplemental Appropriations Act, 2001 (Public Law 107-20, July 24, 2001; 115 Stat. 155, 178), and Workforce Investment Act of 1998 (Public Law 105-220; 29 U.S.C. 2801 et seq.).
3. Background. The Supplemental Appropriations Act, 2001 (Public Law 107-20, Title II, Chapter 7), rescinds $177.5 million from the dislocated worker program for PY 2001. The Act calls for a reduction of $110 million (8.6 percent of the amount previously appropriated) from the formula program and $67.5 million (21.2 percent of the amount previously appropriated) from the Secretary's national reserve account. The level of funding for the dislocated worker program is reduced to $1.413 billion due to the rescission. The Act requires the Secretary to distribute the rescission based on each
state's share of unexpended balances as of June 30, 2001. The procedures for implementing the rescission were provided in Training and Employment Guidance Letter (TEGL) 3-01, "PY 2001 Changes in Dislocated Worker and Youth Funds" dated August 16, 2001. This guidance letter was amended September 28, 2001 ("Change 2"). TEGL 3-01, Change 2, stated that the rescission would take effect after additional time for review and analysis of expenditure reports on the dislocated worker program.
4. Rescission. The Secretary of Labor will make a determination of each state's share of the rescission, consistent with the requirements of PL 107-20, on or before June 28, 2002. The outlying areas, which are funded from the Secretary's dislocated worker program national reserve account, will have a reduction of $443,750 in available funds for PY 2001.
Attached is a proposed table that identifies each state's share of the rescinded funds. ETA has recommended that the Secretary adopt the amounts displayed in the proposed table in making her determination of the distribution of the rescission. As you have been informed, these amounts were calculated by the Department's review and analysis of reports submitted by the states reflecting dislocated worker program expenditures as of June 30, 2001.
5. The Administration's Supplemental Request. Because of the concern about the impact of the reductions during a period of increased need for dislocated worker program services, the President has requested a supplemental appropriation to restore the rescission of formula grant funds and provide an additional $550 million for national emergency grants. This action has been taken to respond effectively to the needs of dislocated workers.
6. Authority to Revise Local Formula. Until there is action on the President's supplemental request, Governors are urged to take advantage of the authority provided under WIA section 133(b)(2)(B) (and 20 CFR 667.130(e)) to meet continuing demands for dislocated worker program services. The Act provides, "Such formula may be amended by the Governor not more than once for each program year. Such formula shall utilize the most appropriate information available to the Governor to distribute amounts to address the State's worker readjustment needs" WIA sec. 133(b)(2)(B)(i). Information that must be considered is listed at WIA section 133(b)(2)(B)(ii) and 20 CFR 607.130(e)(2). Application of this authority must comply with 20 CFR 661.230 regarding the state plan and consultation requirements.
RESCISSIONS: [none listed]
EXPIRATION DATE: Continuing
7. Reallotment. WIA section 132(c) requires the Secretary to conduct 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 667.150. As stated in Training and Employment Guidance Letters 12-00 and 5-99, it was intended that the first reallotment of funds under WIA would be in PY 2001 based on obligations of PY 2000 funds. Due to the rescission, the Secretary has determined that the reallotment will not apply to dislocated worker formula funds in PY 2001 based on our review of the rescission language in PL 107-20 (Supplemental Appropriations Act, 2001).
8. Notice of Obligation (NOO) Adjustment. The Notice of Obligation for the state dislocated worker program will be revised to reflect the reduction in the level of funding required by the rescission. The adjustment of funds will be made to the NOOs for PY 2001 (July 1 to June 30) allotments as required by Public Law 107-20 (Supplemental Appropriation Act, 2001). We expect all states to control their expenditures so that the funds to be recovered are available upon the issuance of the revised NOOs and upon the Secretary's determination on or before June 28, 2002.
9. Action Required. State Liaisons are requested to provide this guidance letter to the appropriate WIA staff.
10. Inquiries. Direct questions regarding the rescission and revised allotments to the appropriate Regional Office.
11. Attachments.
A. PY 2001 WIA Dislocated Worker Activities State Allotments, Impact of PY 2001 Rescission.
B. Dislocated Worker State Formula PY 2001 Rescission Methodology.
RESCISSIONS: [none listed]
EXPIRATION DATE: Continuing

Attachment A

Official PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2002/TEGL26-01_Attach_A.pdf

                                                                                                                                              Attachment A
                                                       U. S. Department of Labor
                                                  Employment and Training Administration
                                               WIA Dislocated Worker Activities State Allotments
                                                 Impact of PY 2001 Rescission (Rev 01/14/02)

                                                      PY 2001                                                                   PY 2001 Revised Allotments
State/Outlying Area                              Initial Allotments                          Rescission                              $         % Change

Total............................................... $1,590,040,000..................($177,500,000)................... $1,412,540,000...........-11.2%

Alabama................................................15,068,548..........................(519,868)..........................14,548,680.............-3.5%
Alaska ...................................................11,395,001..........................(551,285)..........................10,843,716.............-4.8%
Arizona *...............................................12,879,316..........................(977,998)..........................11,901,318.............-7.6%
Arkansas ................................................ 7,103,656....................... (1,022,179)........................... 6,081,477........... -14.4%
California............................................ 273,391,437..................... (23,003,656)........................ 250,387,781.............-8.4%
Colorado ................................................ 8,255,862..........................(764,987)........................... 7,490,875.............-9.3%
Connecticut............................................ 7,406,982..........................(436,861)........................... 6,970,121.............-5.9%
Delaware ................................................ 2,184,617............................(68,936)........................... 2,115,681.............-3.2%
District of Columbia............................... 8,433,959..........................(556,773)........................... 7,877,186.............-6.6%
Florida ..................................................39,311,417....................... (2,749,836)..........................36,561,581.............-7.0%
Georgia.................................................20,930,127....................... (1,933,764)..........................18,996,363.............-9.2%
Hawaii.................................................... 6,477,632....................... (1,229,909)........................... 5,247,723........... -19.0%
Idaho...................................................... 3,898,217..........................(256,101)........................... 3,642,116.............-6.6%
Illinois ...................................................41,575,303....................... (2,183,309)..........................39,391,994.............-5.3%
Indiana..................................................10,682,428..........................(640,174)..........................10,042,254.............-6.0%
Iowa....................................................... 5,437,368..........................(302,246)........................... 5,135,122.............-5.6%
Kansas.................................................... 5,502,565..........................(473,377)........................... 5,029,188.............-8.6%
Kentucky...............................................11,735,435....................... (1,574,438)..........................10,160,997........... -13.4%
Louisiana...............................................23,158,418....................... (2,506,863)..........................20,651,555........... -10.8%
Maine..................................................... 3,214,945..........................(179,397)........................... 3,035,548.............-5.6%
Maryland..............................................17,559,765....................... (1,377,309)..........................16,182,456.............-7.8%
Massachusetts........................................15,134,353..........................(463,739)..........................14,670,614.............-3.1%
Michigan ...............................................21,932,071..........................(773,029)..........................21,159,042.............-3.5%
Minnesota..............................................10,473,235..........................(346,103)..........................10,127,132.............-3.3%
Mississippi .............................................30,701,477....................... (1,443,863)..........................29,257,614.............-4.7%
Missouri ................................................12,374,521....................... (1,224,459)..........................11,150,062.............-9.9%
Montana................................................. 7,084,638..........................(208,655)........................... 6,875,983.............-2.9%
Nebraska................................................ 2,997,707..........................(142,384)........................... 2,855,323.............-4.7%
Nevada ................................................... 5,334,057..........................(409,307)........................... 4,924,750.............-7.7%
New Hampshire ...................................... 1,877,882..........................(112,782)........................... 1,765,100.............-6.0%
New Jersey............................................30,498,439....................... (2,508,993)..........................27,989,446.............-8.2%
New Mexico * ........................................21,923,521....................... (1,813,649)..........................20,109,872.............-8.3%
New York ............................................ 105,559,534..................... (17,204,630)..........................88,354,904........... -16.3%
North Carolina ......................................16,959,265....................... (1,459,422)..........................15,499,843.............-8.6%
North Dakota.......................................... 1,279,725............................(89,448)........................... 1,190,277.............-7.0%
Ohio......................................................34,309,127....................... (2,900,698)..........................31,408,429.............-8.5%
Oklahoma............................................... 6,561,865..........................(716,469)........................... 5,845,396........... -10.9%
Oregon ..................................................28,811,913....................... (1,449,099)..........................27,362,814.............-5.0%
Pennsylvania..........................................38,706,830....................... (3,666,625)..........................35,040,205.............-9.5%
Puerto Rico.......................................... 166,101,676..................... (16,523,469)........................ 149,578,207.............-9.9%
Rhode Island.......................................... 2,885,714..........................(132,818)........................... 2,752,896.............-4.6%
South Carolina......................................11,936,257..........................(888,239)..........................11,048,018.............-7.4%
South Dakota.......................................... 1,283,809............................(45,705)........................... 1,238,104.............-3.6%
Tennessee..............................................12,771,543..........................(965,444)..........................11,806,099.............-7.6%
Texas.....................................................63,747,179....................... (5,366,658)..........................58,380,521.............-8.4%
Utah....................................................... 4,430,131..........................(167,492)........................... 4,262,639.............-3.8%
Vermont................................................. 1,240,882............................(18,345)........................... 1,222,537.............-1.5%
Virginia.................................................12,424,713..........................(989,291)..........................11,435,422.............-8.0%
Washington ...........................................27,119,437....................... (1,850,523)..........................25,268,914.............-6.8%
West Virginia ........................................25,423,973....................... (2,309,570)..........................23,114,403.............-9.1%
Wisconsin..............................................12,880,353..........................(387,017)..........................12,493,336.............-3.0%
Wyoming................................................ 1,663,175..........................(112,809)........................... 1,550,366.............-6.8%
  State Total ..................................... 1,272,032,000....................(110,000,000)..................... 1,162,032,000............ -8.6%
American Samoa....................................... 188,651...................................... 0.............................. 188,651.............. 0.0%
Guam........................................................ 742,196...................................... 0.............................. 742,196.............. 0.0%
Marshall Islands ........................................ 400,690...................................... 0.............................. 400,690.............. 0.0%
Micronesia................................................. 703,169...................................... 0.............................. 703,169.............. 0.0%
Northern Marianas.................................... 333,969...................................... 0.............................. 333,969.............. 0.0%
Palau......................................................... 125,530...................................... 0.............................. 125,530.............. 0.0%
Virgin Islands ............................................ 994,210...................................... 0.............................. 994,210.............. 0.0%
Outlying Area Competitive ........................ 486,685..........................(443,750)................................ 42,935........... -91.2%
 Outlying Area Total.............................. 3,975,100..........................(443,750)........................... 3,531,350...........-11.2%
National Reserve .................................. 314,032,900..................... (67,056,250)........................ 246,976,650...........-21.4%

    * For Arizona and New Mexico, rescission amounts include amounts attributable to state share of funds transferred to
     Navajo Nation in accordance with WIA Sec 166(g)(6).

Attachment B

Official PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2002/TEGL26-01_Attach_B.pdf

                                                                                                                         Attachment B


                                            U. S. Department of Labor
                                      Employment and Training Administration

                              Dislocated Worker Program State Formula
                              Program Year 2001 Rescission Calculations

- Description: Based on State (including Navajo Nation) share of Dislocated Worker unexpended balances as of 6/30/01
               = 6/30/01 availability (reflecting transfers) less 6/30/01 cumulative expended
               = Years: PY 1999, PY 2000, and FY 2001
               = Sum of        Estimated Dislocated Worker portion of Statewide Activities
                               Rapid Response Activities
                               Estimated Dislocated Worker portion of Local Administration
                               Local Dislocated Worker Program


- Source:     State Workforce Investment Act 6/30/01 reports for Statewide Activities, Rapid Response Activities, Local
Administration, Local Youth Program, Local Adult Program, Local Dislocated Worker Program (plus Navajo Nation reports
for Dislocated Worker program)


- Methodology for Disaggregating Statewide/Local Admin Report Data by Program:

                                              Statewide Activities                           Local Adminstration
                                   Prorated using State Allotment by pgm      Prorated using rptd Local Pgm Auth by pgm or State
                                                                              allotment by pgm, if no Local Pgm reported
    Auth         PY 1999
                                   Fed NOO $ to State by pgm                  Prorated using rptd Local Pgm Auth by pgm or Fed NOO
                                                                              by pgm, if no Local Pgm reported
                 PY 2000/FY 2001
                                    less est Local Admin Auth by pgm
                                    less rptd Local Pgm Auth by pgm
                                    less rptd Rapid Response Auth (DW only)


    Expend       All Years         Prorated using Statewide Auth est by pgm   Prorated using Local Adm Auth est by pgm
    Unexpend     All Years         Auth less Expend by Pgm                    Auth less Expend by Pgm




- Rescission Calculations:

 (1) Unexpended balances as of 6/30/01 for Dislocated Worker program are calculated: 6/30/01 total availability (reflecting
     transfers) less 6/30/01 cumulative expenditures.
 (2) Navajo Nation expended balances are prorated to Arizona and New Mexico based on each state’s share of funds
     transferred to the Navajo Nation for PY 2000 and FY 2001. Each state’s resulting share of the Navajo Nation’s
     unexpended funds are added to the state’s unexpended balance.
 (3) $110 million rescission amount prorated on State share of Dislocated Worker unexpended balances as of 6/30/01.