(a) The Governor may reallocate youth, adult, and dislocated worker
funds among local areas within the State in accordance with the
provisions of sections 128(c) and 133(c) of the Act. If the Governor
chooses to reallocate funds, the provisions in paragraphs (b) and (c)
of this section apply.
(b) For the youth, adult and dislocated worker programs, the amount
to be recaptured from each local area for purposes of reallocation, if
any, must be based on the amount by which the prior year's unobligated
balance of allocated funds exceeds 20 percent of that year's allocation
for the program, less any amount reserved (up to 10 percent) for the
costs of administration. Unobligated balances must be determined based
on allocations adjusted for any allowable transfer between funding
streams. This amount, if any, must be separately determined for each
funding stream.
(c) To be eligible to receive youth, adult or dislocated worker
funds under the reallocation procedures, a local area must have
obligated at least 80 percent of the prior program year's allocation,
less any amount reserved (up to 10 percent) for the costs of
administration, for youth, adult, or dislocated worker activities, as
separately determined. A local area's eligibility to receive a
reallocation must be separately determined for each funding stream.
