Start Preamble

AGENCY:

Employment and Training Administration, Labor.

ACTION:

Notice.

SUMMARY:

The Workforce Investment Act, Public Law 105-220, requires the Secretary of Labor (Secretary) to conduct reallotment of dislocated worker formula allotted funds based on State financial reports submitted as of the end of the prior PY. This notice publishes PY 2010 dislocated worker funds for recapture by State and the amount to be reallotted to eligible States.

DATES:

This notice is effective March 16, 2011.

Start Further Info

FOR FURTHER INFORMATION CONTACT:

Ms. Grace Kilbane, Administrator, U.S. Department of Labor, Office of Workforce Investment, Employment and Training Administration, 200 Constitution Avenue, NW., Room S-4231, Washington, DC. Telephone (202) 693-3980 (this is not a toll-free number) or fax (202) 693-3981.

End Further Info End Preamble Start Supplemental Information

SUPPLEMENTARY INFORMATION:

WIA Section 132(c) requires the Secretary to conduct reallotment of WIA funds for the prior program year in any case where unobligated balances exceeded twenty percent. The procedures the Secretary uses for recapture and reallotment of funds are described in WIA regulation at 20 Code of Federal Regulations Section 667.150. For PY 2009 funds, financial reports were analyzed and found zero instances for the WIA Youth and Adult programs in which unobligated balances exceeded twenty percent. For the Dislocated Worker program, however, there were two States that had unobligated PY 2009 funds in excess of 20 percent. Therefore, a total of $408,982 will be recaptured from PY 2010 funding from these two States and reallotted to the remaining States, as required by WIA Section 132(c). The description of the methodology used for the calculation of the recapture/reallotment amounts and the distribution of the changes to PY 2010 formula allotments for dislocated worker activities are attached.

For any State from which funds are being recaptured, WIA Section 132(c)(5) requires the governor to prescribe equitable procedures for reacquiring funds from the State and local areas.

I. Attachment A

II. Attachment B

III. Attachment C

Dislocated Worker State Formula PY 2010 Reallotment Methodology

Reallotment Summary

This year, the Employment and Training Administration (ETA) analyzed State Workforce Investment Act (WIA) Dislocated Worker 9130 financial reports from the 6/30/10 reporting period for program year (PY) 2009 to determine if any State had unobligated funds in excess of twenty percent of their PY 2009 allotment amount. If so, that amount will be recaptured from PY 2010 funds and realloted among eligible States.

• Source Data: State WIA 9130 Financial Status Reports.
• Program:

State Dislocated Worker.

Rapid Response.

Local Dislocated Worker (includes local administration).

• Period: June 30, 2010.
• Years Covered: PY 2009.

Reallotment Calculation Process

(1) Determine the unobligated balance: In order to accomplish this, ETA computes the State's total amount of PY 2009 State obligations (including FY 2010 funds) for the Dislocated Worker (DW) program. State obligations are the sum of DW statewide activities obligations, Rapid Response obligations, and 100 percent of local DW program funds (which includes funds for local administration). The State's total unobligated balance for the DW program is the 2009 DW allotment amount minus the total DW obligations. (Note: for re-allotment purposes, DW allotted funds transferred to the Navajo Nation are added back to Arizona, New Mexico, and Utah local DW authorized amounts).

(2) Excluding State administrative costs: Section 667.150 of the regulations provides that the recapture calculations exclude the reserve for State administration, which is part of the DW statewide activities. Data on State administrative amounts authorized and obligated are not reported on WIA 9130 financial reports. In the preliminary calculation to determine States potentially liable for recapture, the DW portion of the State administrative amount authorized is estimated by calculating the five percent maximum amount for State DW administrative costs using the DW State allotment amounts. For the DW portion of the State administrative amount obligated, 100 percent of the estimated authorized amount is treated as obligated.

(3) Follow-up with States potentially liable for recapture: ETA requests that those States potentially liable for recapture provide additional data on State administrative amounts included in the PY 2009 and FY 2010 Statewide Activities amounts (authorized and obligated as of 6/30/10). If a State provides actual State DW administrative costs, authorized and obligated, in the comments section of revised 9130 reports, this data replaces the estimates. Based on the requested additional actual data submitted by potentially liable States on revised reports, the DW total allotment for these States is reduced by the DW portion of the State administrative amount authorized. Likewise, the DW total obligations for these States are reduced by the DW portion of the obligated State administrative funding.

(4) Those States (including those adjusted by actual State administrative data) with unobligated balances exceeding 20 percent of the combined PY2009 DW allotment amount will have their PY 2010 DW funding (from the FY 2011 advance portion of PY 2010 DW funding made available in the FY 2010 Appropriations Act) reduced (recaptured) by the amount of the excess.

(5) Finally, States with unobligated balances which do not exceed 20 percent (eligible States) will receive a share of the total recaptured amount (based on their share of the total PY 2009 DW allotments of eligible States) in their PY 2010 DW funding (the FY 2011 advance portion of PY 2010 DW funding made available in the FY 2010 Appropriations Act).

Start SignatureEnd Signature End Supplemental Information