Rescission of FY 2006 WIA adult and dislocated worker funds

TEGL35-05.pdf (https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2006/TEGL35-05.pdf)

EMPLOYMENT AND TRAINING ADMINISTRATION ADVISORY SYSTEM
U.S. Department of Labor
Washington, D.C. 20210
CLASSIFICATION: WIA/Adult and Dislocated Worker Program
CORRESPONDENCE SYMBOL: OWI
DATE: June 13, 2006
TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 35-05
TO: ALL STATE WORKFORCE AGENCIES; ALL STATE WORKFORCE LIAISONS
FROM: EMILY STOVER DeROCCO, Assistant Secretary
SUBJECT: Revision to Program Year 2005 Funds for Workforce Investment Act (WIA) Adult and Dislocated Worker Program.

1. Purpose. To provide guidance on the rescission of Fiscal Year (FY) 2006 formula
funds for the WIA Adult and Dislocated Worker Programs for Program Year (PY)
2005 as required by the Department of Defense, Emergency Supplemental
Appropriations to Address Hurricanes in the Gulf of Mexico, and Pandemic
Influenza Act, 2006, Public Law (P.L.) 109-148, December 30, 2005.

2. References. Please refer to the following citations:
a. Training and Employment Guidance Letter (TEGL) No. 25-05; and

b. Department of Defense, Emergency Supplemental Appropriations to Address
Hurricanes in the Gulf of Mexico, and Pandemic Influenza Act, 2006, (P.L. 109-148), Division B, Title III, Chapter 8 (December 30, 2005).

3. Background. In TEGL No. 25-05, the Employment and Training Administration
(ETA) announced the FY 2006 rescission for the WIA Adult and Dislocated Worker
programs as a result of Public Law 109-148. The law requires the Secretary to make
a reduction of 1.00 percent to all FY 2006 discretionary funds allotted for FY 2006

(available beginning October 1, 2005) in the FY 2005 Department of Labor
appropriation.

RESCISSIONS: [blank in source]
EXPIRATION DATE: June 13, 2007

The rescission calls for a reduction of $7,120,000 from the initial allotment of
$712,000,000 for Adult activities and a reduction of $9,350,000 from the initial
allotment of $935,000,000 for Dislocated Worker formula and National Reserve
activities (excludes Community-Based Job Training Grants in the Dislocated Worker

National Reserve) for which there was a separate rescission of all funds totaling
$125,000,000.

TEGL No. 25-05, which posted information on Program Year 2006 allotments,
advised states of the rescission of FY 2006 funds and provided the amount of FY

2006 funds to be rescinded for each state for the WIA Adult and Dislocated Worker
programs.

4. Within State Allocations of Adult Allotments. The distribution of the state
allotments, as reduced by the rescinded funds, must follow the statutory
requirements at WIA Section 133. States have flexibility provided by WIA to apply
the rescission to funds available for statewide activities and/or to local areas as long
as the amounts remaining after rescission conform to the following provisions:

a. A minimum of 85 percent of each state’s revised WIA Adult program allotment
will be allocated to local areas activities; and

b. A maximum of 15 percent of each state’s revised WIA Adult program allotment
may be used for statewide activities as authorized under WIA.

WIA Adult program rescission amounts taken from statewide activities cannot
exceed the total amount originally reserved for statewide activities from the WIA
Adult program for FY 2006.

5. Within State Allocations of Dislocated Worker Allotments. The distribution of the
state allotments, as reduced by rescinded funds, must follow the statutory
requirements at WIA Section 133. States have flexibility provided by WIA to apply
the rescission to funds available for statewide activities, rapid response activities,
and/or to local area activities as long as the amounts remaining after rescission
conform to the following provisions:

a. A minimum of 60 percent of each state’s revised WIA Dislocated Worker
program allotment will be allocated to local areas;

b. A maximum of 15 percent of each state’s revised WIA Dislocated Worker
program allotment may be used for statewide activities as authorized under
[text missing at page break in source]

c. A maximum of 25 percent of each state’s revised WIA Dislocated Worker

program allotment may be used for statewide rapid response activities as
authorized under WIA.

WIA Dislocated Worker program rescission amounts taken from statewide activities
cannot exceed the total amount originally reserved for this category from the
Dislocated Worker program for FY 2006.

6. Notice of Obligation (NOO). A NOO to deobligate the rescission amounts for the
WIA Adult and Dislocated Worker programs for each state will be issued on or
around June 1, 2006. The rescission of funds will be made to the FY 2006 advance

portion (October 1 to June 30) of the PY 2005 allotments that were issued in October
2005.

7. Reporting. States should reflect reduced total Federal funds authorized on the
appropriate line items of ETA form 9076 beginning with the quarter ending June 30,
2006, consistent with the effective date of the NOOs deobligating the funds. States

should also report obligations and outlays consistent with the revised authorized
funding levels for such quarters.

8. Action. States should:

a. Review financial reports regarding obligation and expenditure amounts to

ensure the accuracy of the reports to be submitted as of the June 30, 2006,
reporting period;

b. Promptly alert their Regional Office to any significant errors found subsequent
to their initial submittal of these financial reports; and

c. Provide this guidance to appropriate staff.

9. Inquiries. Questions on this TEGL should be addressed to the appropriate Regional
Office contact as soon as possible.