(a) The Department issues instructions on the specific information
that must accompany the State Plan and that is used to review the
State's expected levels of performance. The instructions may require
that levels of performance for years two and three be expressed as a
percentage improvement over the immediately preceding year's actual
performance, consistent with the objective of continuous improvement.
(b) States must submit expected levels of performance for the
required indicators for each of the first three program years covered
by the Plan.
(c) The Secretary and the Governor must reach agreement on levels
of performance for each core indicator and the customer satisfaction
indicators. In negotiating these levels, the following must be taken
into account:
(1) The expected levels of performance identified in the State
Plan;
(2) The extent to which the levels of performance for each core
indicator assist in achieving high customer satisfaction;
(3) The extent to which the levels of performance promote
continuous improvement and ensure optimal return on the investment of
Federal funds; and
(4) How the levels compare with those of other States, taking into
account factors including differences in economic conditions,
participant characteristics, and the proposed service mix and
strategies.
(d) The levels of performance agreed to under paragraph (c) of this
section will be the State's adjusted levels of performance for the
first three years of the State Plan. These levels will used to
determine whether sanctions will be applied or incentive grant funds
will be awarded.
(e) Before the fourth year of the State Plan, the Secretary and the
Governor must reach agreement on levels of performance for each core
indicator and the customer satisfaction indicators for the fourth and
fifth years covered by the plan. In negotiating these levels, the
factors listed in paragraph (c) of this section must be taken into
account.
(f) The levels of performance agreed to under paragraph (e) of this
section will be the State adjusted levels of performance for the fourth
and fifth years of the plan and must be incorporated into the State
Plan.
(g) Levels of performance for the additional indicators developed
by the Governor are considered to be State adjusted levels of
performance, but are not part of the negotiations described in
paragraphs (c) and (e) of this section. (WIA sec. 136(b)(3).)
(h) State adjusted levels of performance may be revised in
accordance with Sec. 666.130 of this subpart.
