Reference: Training and Employment Information Notice (TEIN) No. 5-96, APY 1996 Funding Strategy for the One-Stop System. Background: TEIN 5-96, announced as part of the One-Stop 1996 Funding Strategy that implementation grantees entering their third year of funding would be allowed to carry-in 15% (15% Rule) of any unobligated funds from the first and second year. The remaining 85% of unobligated funds would not be de-obligated from the grant; rather, the State's third year allocation would be reduced by that amount. The TEIN noted that funds set aside in the grant for the Talent Bank were exempt from this calculation. This exception was subsequently amended to exempt all ALMIS related funding since these technology-related investments are intended for the life of the grant, and are not funded incrementally for each year's operations. In 1996, the 15% Rule was addressed to Around I and Round II States, since they would soon enter the third year of operations under their One-Stop grants and the balance of the States had not yet received their Implementation grants. The TEIN was not explicit that the 15% Rule would apply to all States as they reached their third year of funding. Our overall interest is to assure that grantees are funded at a level sufficient to support each year's operations under the grant, without running a surplus. States should attempt to obligate 100% of annual operating funds to support the roll-out of those activities identified in the annual operating plan, as specified in the grant documents. The 15% Rule was established as a prudent fiscal measure to encourage timely obligation of funds, and to discourage the carry-over of surplus funding from year to year. Policy: One-Stop State Implementation grantees may carry-in a maximum of 15% of any unobligated, non-ALMIS related, Year One and Year Two funds to their third year of operations under the One-Stop Implementation grant. A State's Third Year One-Stop Implementation grant allocation for operations will be reduced by the remaining 85% of unobligated, non-ALMIS funds. Example: If a State's Third Year grant allocation was $1.5 M and the State had $1.0 million in unobligated, non-ALMIS funds at the beginning of Year Three, the third year allocation would be reduced by $850,000 (85% of $1M). In this example, the State would receive only $650,000 for it's third year of operations. If the State had $0 in unobligated, non- ALMIS funding, it would receive the full $1.5 million for Year Three. The objective is to reduce or eliminate non-ALMIS carry-in, so that all of the grant funds are used timely, in accordance with the State's yearly operating plan as reflected in the grant documents. Action Required: States are requested to discuss this policy with their One-Stop GOTRs in the Region to ensure a thorough understanding of its implications; and to assure that the very limited One-Stop appropriations are managed in a fiscally sound manner.

Average Weekly Benefit Amount (AWBA) Utilization: On May 11, 1995, the Department published an interim final rule in the Federal Register (60 FR 25560), which amended Section 625.6 effective for all major disasters declared on and af-ter that date. Among the changes, the amendments provide that the minimum weekly DUA amount will be 50 percent of the AWBA paid in the State for regular compensation, unless wor- kers are customarily or routinely employed less than full-time prior to their unemployment due to the disaster. The attached listing sets forth the 50 percent of AWBA computa-tion applicable for major disasters declared during the sec- ond quarter of FY 1996, from January 1 through March 31, 1996. Action Required: SESA Administrators are requested to provide this information to appropriate staff and insure that the correct AWBA is utilized in determining the weekly DUA amount.

References: Sections 162 and 303 of the JTPA; Training and Employment Guidance Letter (TEGL) No. 6-97, dated April 14, 1998. Background: TEGL No. 6-97 describes the reallotment process that was used to identify and reallot unexpended formula funds that were in excess of statutory limits at the end of Program Year 1997. Reallotment of funds has been based on expenditure reports submitted by the States. Action: Copies of the attachment should be distributed to appropriate staff. Equitable procedures for making funds available for reallotment, and distribution of funds requirements, are addressed in the notice.

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References: Chapter V, Section 5, and Chapter XI, Section 1, ET Handbook No. 391. Background: Recently, the Office of Personnel Management authorized new salaries for GS employees incorporating a 2.00% General increase (National Pay Table Attached) and locality-based comparability payments (known as locality pay) for GS employees in 27 locality pay areas. The locality rates of pay are computed based on the annual rates shown on the 1995 General Schedule and reflect the locality pay percentages authorized by the President on December 1, 1995. The locality rates of pay are considered basic pay for retirement, life insurance, premium pay, and severance pay purposes and for advances in pay. They are also used to compute worker's compensation payments and lump-sum payments for accrued and accumulated annual leave. They are NOT considered basic pay for other pay administration purposes. The General increase and the locality pay increases became effective January 1996. Employees currently under a Special Salary Rate, will not receive a locality pay increase if their current annual salary exceeds the annual locality pay salary. However, employees at grade GS-7 who are on the Special Clerical Rate will receive the locality pay salary since the annual locality pay salary exceeds the Special Clerical Salary Rate at that grade level. Instruction: SESAs should provide copies of the attached National Pay Table and 27 Federal Locality Salary Tables to appropriate staff members engaged in UCFE claims activities. Action Required: SESAs should follow the above instructions and provide the attached National Pay Table and revised 27 Federal Locality Pay Tables to appropriate staff.

References: Training and Employment Information Notice (TEIN) No. 49-93, Capacity Building Strategy Paper; TEIN 11-94, Consultation with our Customers: A Process to Build a Comprehensive Capacity Building Structure; TEIN 15-94, Status of JTPA PY 94 Capacity Building Pilot Projects; TEIN 11-94, Change 2, System-Wide Survey on Staff Capacity Building and Technical Assistance Needs. Background: The nation's public employment and training system has come to realize the importance of adopting principles from the "quality revolution" that swept through the private sector during the last decade. Some pioneering workforce development agencies have become "high performance" in every sense of the term. Today, most organizations at least recognize the need to move toward a more customer-focused and quality-oriented approach to the delivery of services. Evidence of this growing interest in quality can be seen in a recent capacity-building survey conducted for the Employment and Training Administration (ETA). The survey was administered to a random sample of front-line staff and program managers from the Job Training Partnership Act (JTPA) system, the Employment Service (ES), and the Job Opportunities and Basic Skills (JOBS) system. One of the survey items asked respondents to evaluate their need for training (or their staff's need for training) over the next two years. Out of 38 technical and organizational skill areas, front-line staff identified the need for training in Quality Improvement/Total Quality Management as the fifth highest priority. Program managers rated this area as the fourth highest priority. ETA's Quality Initiatives: ETA is currently sponsoring a number of specific initiatives to promote continuous program improvement and the provision of better services to its ultimate customers--employers and job seekers. Among these are the following: The ES Revitalization Initiative is developing a number of products including a system for measuring customer satisfaction as the foundation for implementing continuous improvement techniques throughout the Employment Security System. Products include samples of "tested and validated" survey instruments, a "How to" manual, advice from leading consultants and training sessions on running a comprehensive customer satisfaction system at the state and local level. The Enterprise is a voluntary membership network of best-in-class employment and training organizations committed to providing quality services to their customers. To be eligible for membership in the Enterprise, agencies that deliver direct employment and training services must be independently evaluated against three measures that are characteristic of quality organizations in both public and private sector: Superior Performance, Customer Satisfaction and Continuous Improvement. The Enterprise provides extensive technical assistance to aspiring members through its network of "Pioneers." The One-Stop Career Center System, ETA's vehicle for transforming the current employment and training system into a high-performance, coordinated information and service delivery organization, includes a commitment to develop a performance evaluation strategy based on customer satisfaction measurements. School-To-Work, another of ETA's system-building initiatives, is also based on quality management and customer service. Although these separate initiatives often have differing cultures and histories, ETA believes that quality operations and a commitment to customers can be key organizing principles around which the country's emerging workforce development system can coalesce. The Simply Better! Continuous Improvement Project: Simply Better! is a national technical assistance project designed to help employment and training professionals and organizations incorporate principles of continuous quality improvement into their daily operations. It began as a joint initiative between LETA's Seattle and Philadelphia Regional Offices but quickly expanded to include representatives of State governments, private industry councils, service delivery areas, sub-state grantees, local direct service providers and additional ETA Regional Offices. The goals of Simply Better! are twofold. The immediate goal is to design products and provide services that assist employment and training organizations in implementing continuous improvement efforts. The long-term goal is to develop a learning network of individuals and organizations committed to continuous service improvement, to customer satisfaction and to exceptional quality. Simply Better! does not believe its customers should be drawn from any one part of the Employment and Training system. The project will be equally relevant to ES offices, JTPA service providers, one-stop career centers, school-to-work programs, vocational education institutions and other employment and training programs, many of which, as mentioned above, have begun their own continuous improvement initiatives. New Products: Simply Better! has just published three products: the Self Assessment System, The Voice of the Customer, and Customers in Focus. You will soon receive copies of each of these publications under separate cover. ETA's Regional Offices will be responsible for distributing copies of these materials to service delivery areas, Private Industry Council chairs, State Human Resource Investment Council chairs, and other State/local level entities. Regional Offices also will serve as the primary points of contact for individuals and organizations seeking further information about Simply Better! or additional copies of its products. The Self Assessment System is designed to help organizations better understand their strengths and opportunities for improvement in seven key areas or "dimensions" of organizational management. Modeled after the Malcolm Baldrige Award, the self-assessment process helps establish priority areas for quality improvement and helps organizations develop action plans for redesigning service delivery or management operations. The Self-Assessment System consists of nine user-friendly booklets. The first is an Overview of the entire self-assessment process. Then, separate modules examine seven critical areas of an agency's operations: Strategic Planning, Leadership, Information Analysis, Customer Focus and Satisfaction, Management of Process Quality, Human Resource Development and Quality and Results. The series ends with a Guidebook containing practical tips for conducting a self-assessment in one's own agency. One of the central principles of quality management is that the value of services and products must be defined in the customer's terms. That is why quality-focused organizations develop effective customer feedback strategies and integrate the resulting information into program design and decision-making. The Voice of the Customer can facilitate this process by providing an overview of the tools and techniques available for measuring satisfaction with employment and training programs. Topics addressed include informal research techniques, focus groups, survey design, and data analysis. Samples of survey instruments used by a variety of employment and training agencies are also provided. Focus groups can be a valuable tool for learning how customers feel about a particular issue, and why they hold those beliefs. Customers in Focus offers a wealth of in-depth information for those interested in conducting focus group sessions. This publication discusses the relative advantages and disadvantages of focus groups, how to construct a discussion guide, how to select and recruit participants, the competencies required of focus group moderators, and tips for the analysis and presentation of focus group data. Coordination With Other Quality Initiatives: Simply Better! feels an important responsibility to work cooperatively with ETA's other quality initiatives. Many of Simply Better!'s products have been "field tested" at local agencies whose quality operations qualify them for membership in the Enterprise. The Simply Better! publications mentioned above include materials developed by both the Enterprise Council and the Employment Service Revitalization Project. Working together, Simply Better!, the Enterprise/Pioneers, and ES Revitalization, along with the One-Stop and School-To-Work system building initiatives, offer the potential to break down existing barriers between programs and levels of government. The ultimate goal is to transform the workforce development system into a high- performance, high-quality system that delivers world class services. Future Publications: Simply Better! has several additional products scheduled for completion and dissemination later in 1996. Service by Design will introduce a problem-solving model for continuous improvement of employment and training operations that focuses on front-line transactions the points of contact between the service and the customer. Measures of Success will help service providers determine which tools and measures best meet their management and information needs. Case Studies in Quality will document "real world" examples of employment and training organizations that improved the quality of their services by adopting a continuous improvement philosophy of "putting the customer first."

References: The Job Training Partnership Act (JTPA), as amended; 1. JTPA Final Rules, as published in the Federal Register on September 2, 1994; 2. The Workforce Investment Act of 1998; 3. Training and Employment Guidance Letter (TEGL) No. 2-97 (February 19, 1998), Instructions for Submission of Consolidated State Plans under Title II and Title III of the Job Training Partnership Act for Program Years (PYs) 1998 and 1999; and PY 1998 Wagner-Peyser Planning Guidance; 4. TEGl 4-97 (March 9, 1998), Program Guidance and Allocations for the Calendar Year 1998 Summer Youth Employment and Training Program; 5. Training and Information Notice (TEIN) No. 6-98 (August 6, 1998), Safety in the Summer Youth Employment and Training Program; 6. TEGL No. 7-95, Change 1, (December 4, 1998), Job Training Partnership Act (JTPA) Intertitle Transfers of Funds"; 7. TEGL No. 11-98, JTPA Allotments for Program Year (PY) and Calendar Year (CY)1999; Wagner-Peyser Preliminary Planning Estimates for PY 1999; 8. Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)), as amended by the Minimum Wage Increase Act of 1996; 9. Employment Service Program Letter No. 2-99 (Nov. 5, 1998) Reauthorization of Work Opportunity Tax Credit Program and Authorization of the Tax Credit Program for the Welfare-to-Work Tax Credit; and 10. TEIN No. 35-97 (April 28, 1998), Technical Assistance Guide (TAG) for Providing Educational Services in the Summer Youth Program. Background: The employment and training system is transitioning from the Job Training Partnership Act (JTPA) to the Workforce Investment Act (WIA). WIA substantially reforms and places new emphasis on serving youth within a comprehensive statewide workforce development system. Under WIA, youth programs will be linked more closely to local labor market needs and the community as a whole, and will provide a stronger connection between academic and occupational learning. Services for youth under WIA shift to comprehensive services with summer youth training as one component of the local area's youth services strategy. WIA encourages local decision making concerning policy, youth program design, the proportion of funding for each program element, and determining appropriate program offerings for each individual youth. A youth council, newly established under WIA, is given the responsibility to guide youth policy in the local area and to coordinate youth services. Summer programs operated this year will be funded under the JTPA appropriations, using JTPA rules. WIA funds will not be appropriated for the summer employment opportunities program until Fiscal Year 2000. For the summer of 1999, determinations will need to be made regarding the amount of Title II-B and II-C funds to be used for the 1999 summer activities, including the transfers to or from the II-C program and carryover funds from previous years. Program operators are encouraged to begin developing strategies for comprehensive programs infused with principles such as preparation for postsecondary opportunities, linkages between academic and occupational learning, and connections to the local job market in their youth systems. Early WIA implementers are especially encouraged to review the new WIA design requirements and begin building these program design features into their youth programs. Allotments and Transfers: Allotments were provided to the system via TEGL No. 11-98, dated February 17, 1999. For 1999, JTPA appropriations language allows for both Title II-B Summer Youth Employment and Training Program and Title II-C Year-Round Youth Training Program funds to be available for obligation on April 1, 1999. The Title II-B and Title II-C programs are still authorized as separate programs in 1999. However, this early obligation of funds will allow States to begin making expenditures in advance of the upcoming Summer Youth Program, as well as facilitate the move toward a consolidated youth funding stream. As in previous years, SDAs, with approval of the Governor, retain the authority to transfer up to 100% of the funds between the two programs. This transfer authority, as well as judicious marshaling of carry- over funds, may be used to begin to prepare for full implementation of WIA. Program Goals/Objectives: The Employment and Training Administration (ETA) has established an interim Government Performance Results Act (GPRA) goal for JTPA Title II-B for CY 1999. The actual goal will be established based upon results from this year¿s program. As a temporary baseline measure, at least 50% of disadvantaged youth participating in academic enrichment will retain or enhance their basic skills in addition to working at summer jobs. Other goals and objectives for States and SDAs which are appropriate for this summer under JTPA, and are consistent with the transition to WIA, are to: 1. Encourage school retention or completion. States and SDAs are urged to develop activities which encourage youth to return to school or enroll in alternative school programs. 2. Improve participants academic performance, including mathematics and reading comprehension. Local service deliverers are encouraged to ensure that participants, at the very least, maintain the same level of basic educational skills over the summer. 3. Improve employability skills. Participants should have experiences which introduce them to the world of work and help them develop basic workplace skills with the goal of increasing their employability. Ideally, by the end of the summer, participants will show improvement in both academic and workplace skills. 4. Strengthen integration of summer youth program with year-round youth programs, Job Corps, School-to- Work and other related employment and training activities. 5. Strengthen linkages. Service deliverers are urged to strengthen linkages with the local labor market, and design programs to meet local community needs. 6. Work with the private sector to provide more unsubsidized employment opportunities for economically disadvantaged youth. Program Elements: WIA identifies ten required youth program elements which must be available through local programs. However, local programs will have the discretion to determine what specific services a youth will receive based upon the youth¿s objective assessment and individual service strategy. These required program elements can be grouped around four major themes: - improving educational achievement (including such elements as tutoring, study skills training, and instruction leading to secondary school completion, including drop out prevention strategies, and alternative school offerings); - preparation for and success in employment (including summer jobs, paid and unpaid work experience, and occupational skills training); - supports for youth (including meeting supportive services needs, providing mentoring, follow-up services, and comprehensive guidance and counseling); and - services intended to develop the potential of youth as citizens and leaders (including leadership development opportunities). States and SDAs are encouraged to the extent possible, to begin building these program design features into their programs. The traditional elements of the JTPA summer youth program are a good base to build upon. These elements are explained in some detail below. 1. Objective Assessment and Individual Services Strategy. The requirements of objective assessment have been clearly specified in the JTPA statute (as amended by the Goals 2000: Educate America Act) and the final JTPA regulations. ETA will not recommend any particular assessment device; it is the responsibility of the SDAs to utilize effective assessment instruments. SDAs are urged to consult with their local school systems to determine which measurements of educational achievements are most appropriate and useful to both the individual SDAs and local school systems. 2.Work Experience. Work experience continues to be one of the most effective components in the summer program. All States and SDAs should ensure that worksites introduce and/or reinforce the rigors, demands, rewards, and sanctions associated with holding a job. Documented learning experiences should be an integral part of the youth's work experience. ETA strongly recommends that all participants, including 14 and 15-year olds, spend time on an actual job. If an SDA has an education-only program design, the SDA must provide an explanation in the job training plan as to why such a design is the most effective strategy for the youth involved. In addition, States should encourage SDAs to incorporate the following activities into their summer program planning agendas: (1) provide work maturity training to youth before sending them to youth worksites. This will help address employers concerns regarding placement of youth ages 14-15, who are generally not equipped with behavioral skills and appropriate conduct necessary to function on actual jobs; and (2) to the extent possible, we recommend that SDAs provide employers with all relevant information available pertaining to youth assigned to their worksites. 3. Academic--Basic Educational Skills Enrichment. States should inform SDAs that improving, enhancing and documenting performance outcomes of participants enrolled in academic enrichment activities is a high priority. Findings from a recent ETA pilot study conducted by Social Policy Research Associates (SPR) reveal that the key to assessing the learning gains of youth receiving academic enrichment is determined by the definition of academic enrichment. ETA has addressed this concern by redefining academic enrichment. States and SDAs should use the following definition when planning training curricula under the academic component. Definition-- the operational definition of basic educational skill enrichment is the enhancement of the traditional educational skills of reading, mathematics, and writing attained through classroom or project-based learning methods. SDAs should consider using project-based learning as an instructional strategy that contributes to academic learning. Using this approach, participants plan, implement, complete and evaluate a valuable, real-life project. In this approach, learning, content, and process are totally integrated. Well conceived, learning-rich projects include competencies, basic skills, academic content, specific vocational and occupational skills, work maturity skills, life skills and citizenship skills. SPR also found that SDAs have diverse programmatic objectives for academic enrichment and conduct a wide variety of training activities under this component. Subsequently, it was determined that a single measurement instrument is not the best methodology for assessing skills learned in the academic enrichment training. The skills learned in academic enrichment training may be assessed through a variety of instruments rather than one prescribed assessment instrument. Therefore, States and SDAs are encouraged to assess skill gains for youth using measurement instruments of their choice. ETA will not recommend any particular testing protocol, however, we encourage SDAs to select assessment instruments that have been identified as appropriate tools for measuring skills attained in the academic enrichment training component of the summer program. States and SDAs must have some methodology for assessing gains for youth in the academic enrichment component and will report the percentage of youth who gained, maintained or lost skills during the summer. Further instructions will follow in the Reporting Guidance. 4. Follow-up Services. Follow-up services receive greater emphasis under WIA as they are now one of the ten required program elements. All youth participants must receive some form of follow-up services for a minimum duration of twelve (12) months. The types of services provided and the duration of services must be determined based on the needs of the individual youth. The scope of these follow-up services may be less intensive for youth who have only participated in summer youth employment opportunities. Under JTPA such services may be provided for up to one year if the Individual Service Strategy indicates that such services are appropriate. 5. Integrating Academics and Occupational Learning. There are two inter-related principles associated with the integration of work and learning; learning SCANS foundation skills and competencies within the context of performing work on an actual job. ETA continues to promote linking work and learning. In the fall of 1998, ETA provided training to the employment and training system on strategies for designing and delivering enriched, project-based learning activities. The purpose of the training sessions was to inform SDAs on strategies for connecting work and learning in the SYETP. Linking academics and occupational learning remains a high priority area. Local service providers are encouraged to include project-based learning activities, linking classroom training and work experiences in their training curricula. In addition, lessons learned by School-to-Work (STW) local partnerships may be a source of appropriate project-based learning strategies. Linkages: Under JTPA, SDAs are required to establish linkages with the appropriate educational agencies responsible for services to participants. In previous policy guidance, ETA has encouraged the establishment of linkages with School-to-Work and the Year-round Youth programs in particular. While the establishment of these linkages under JTPA continues to be encouraged, the requirement for linkages is broadened even more under WIA. WIA charges local boards with the responsibility for establishing appropriate linkages to entities that foster the participation of eligible youth. These linkages may include connections to local area justice and law enforcement officials, local public housing authorities, local education agencies, Job Corps representatives, and representatives of other area youth initiatives. In addition, youth councils are required to establish linkages with other organizations serving youth in the local area. Local program operators are encouraged to continue linkages already established and use this summer to strengthen linkages with organizations and entities in the local area offering services to youth where such linkages have not yet been established. Private Sector Summer Jobs Effort: States and SDAs are encouraged to seek every opportunity to involve the private sector in cooperative and creative approaches to fund community-wide summer jobs programs. Across the country private sector summer jobs initiatives are voluntarily undertaken by community coalitions to increase the number of jobs available for young people during the summer. Through these initiatives, private sector employers are encouraged to support summer jobs by hiring young people, making financial donations for job creation in the public sector or donating time and resources to further such efforts. The Private Industry Council plays a major role in most private sector campaigns, serving as the coordinator of the planning group and providing office space and staff support. Business representatives, the Employment Service, community- based organizations, schools and local government agencies are also typically partners in this effort. Title II-B funds may be used to support private sector programs which are not limited to just JTPA eligible youth within the following parameters. JTPA funds can be used for activities including the following where States and SDAs are working with local businesses to plan private sector programs: planning employer outreach, recruitment, intake, eligibility determination for community-wide summer jobs programs that serve JTPA eligible and non- eligible youth. In order to prevent audit questions, however, the ratio of JTPA funded staff to non-JTPA funded staff should be proportionate to the ratio of JTPA eligible youth to non-eligible youth served. Work Opportunity Tax Credit (WOTC) Program: All States and SDAs are strongly encouraged to work with local business leaders in strengthening the coordination with the private sector in creating unsubsidized summer job opportunities for economically disadvantaged youth. States and SDAs should utilize the WOTC program to aid them in their private-sector Summer Youth outreach efforts. The WOTC is federal income tax incentive to encourage private-sector employers to hire eight targeted groups of job seekers with barriers to employment. For the employer to qualify for a tax credit under WOTC, a summer youth employee must have attained age 16 but not 18 on the hiring date (or, if later, on May 1), reside in one of the 105 federally designated Empowerment Zones or Enterprise Communities, have never worked for the employer before, and perform services for the employer between May 1 and September 15. Further, for the employer to qualify for the tax credit, the eligible employee must be employed for at least 20 days or 120 hours. Employers must apply for and receive certification from their State employment agency that their new hire is a member of a WOTC target group before they can claim the tax credit on their federal income tax return. State Employment Service Agencies (SESAs) are responsible for certifying new hires as qualifying employers for the WOTC. For more information about this tax credit, SESA WOTC Coordinators or the U.S. Employment Services should be contacted. Job Safety and Health: States are encouraged to provide SDAs training and/or written materials on workplace safety rules and regulations. SDAs should share safety information with worksite supervisors before youth are placed at designated worksites. States and SDAs are also reminded to review Federal, State and local safety standards and child labor restrictions. This will help to ensure that participants are not assigned to job activities which violate the standards and/or restrictions. Minimum Wage: The provisions under the amendments to the Fair Labor Standards Act (FLSA), which resulted from the Minimum Wage Increase Act of 1996, apply to all participants enrolled in programs operated under JTPA. The FLSA minimum rate referred to in sections 142(a)(2) and (3) of JTPA is the currently applicable rate set forth in section 6(a)(1) of the FLSA which is $5.15. Individuals employed in activities authorized under the Act shall be paid wages not less than $5.15 an hour. Oversight: Specific information regarding the monitoring and reporting requirements will be forwarded separately. Monitoring and reporting instructions will be revised to collect data on skill gains for youth enrolled in academic enrichment. Action: States should: (a) transmit this guidance to SDAs as expeditiously as possible; and (b) instruct SDAs to quickly provide relevant guidance to worksites and service providers.

Authorities and References: Training and Employment Guidance Letter (TEGL) No. 3-98, WtW Planning Guidance and Instructions for Annual State Plans and Planning Allocations for FY 99, dated July 30, 1998. Background: TEGL 3-98 provided States with Planning Guidance and Instructions for Annual State Plans. Section 9 (Reallocation of FY 98 Funds) specified that additional FY 98 funds may be available for a second FY 99 formula allocation and provided States with guidance on how to apply for additional FY 98 funds. This TEGL change eliminates that section. Elimination of Additional FY 99 Funds Available Through Reallocation: Since no additional FY 98 funds are available, States are not to include a request for these funds with their FY 99 WtW Annual State Plans. Action: States should provide this guidance to appropriate staff for the preparation and submission of the FY 99 WtW Annual State Plans.

References. DINAP Bulletins Nos. 95-06 and 95-14. Background. a. The Department of Labor's Technical Assistance and Training (TAT) funds were rescinded for Program Year (PY) 1995 and eliminated from the Department's Fiscal Year 1996 budget request by both the House and the Senate appropriation committees. For these reasons, this is the last year that travel assistance will be provided to small grantees to attend the national conference for the foreseeable future. b. Only 52% of the section 401 grantees responded to DINAP Bulletin No. 95-15 in favor of using program funds to support TAT activities for PY 1996. Because a grantee consensus was not achieved, DINAP will not reserve any section 401 program funds for TAT purposes in PY 1996. c. This bulletin provides the final list of grantees eligible for travel and per diem reimbursement for one staff person to attend the national TAT conference to be held in Providence, Rhode Island (reference DINAP Bulletin No. 95-14 for additional conference details). d. Grantees eligible for reimbursement should register for the conference immediately, if they have not already done so. The TAT contractor, ACKCO, Inc., will provide the appropriate travel reimbursement forms at the conference. There will be a 90-day limit on receipt of reimbursement claims in order to facilitate contractual obligations. e. Reimbursement will cover local transportation expenses (POV mileage, parking, taxis, etc.), lodging expenses, and meals and incidental expenses. Airfare and conference registration fees will be paid directly by ACKCO. Expenses for rental cars and telephone calls WILL NOT be reimbursed. Federal travel rates in effect at the time of the conference will be applied to all reimbursement claims. Action Required. Grantees appearing on the attached list should immediately register for the conference (if they have not already done so), according to the conference planning committee instructions sent to all section 401 grantees. No money should be submitted with this registration. ACKCO will be paying the NINAETC directly for the registration fees of those conference attendees to be reimbursed. Grantees to be reimbursed should contact ACKCO as soon as possible to make their airfare arrangements. To save money, all reservations will be handled through a single travel agent retained by ACKCO. Tickets will be mailed to the grantee staff designated to attend. Questions. Questions should be addressed directly to ACKCO, Inc., on 1-800-525-2859.

References: None Background: Legislation currently under consideration to restructure the nation's employment and training system assigns an important role to "workforce development boards," private-sector-led bodies similar to existing Private Industry Councils but with expanded powers and purview. During the upcoming transition to a new workforce development system, one of ETA's challenges will be to oversee the successful evolution of PICs into these new boards. A new study by the National Association of Private Industry Councils (NAPIC) demonstrates that some PICs are already pursuing new approaches to meeting the workforce needs of their local communities. The experiences of these "cutting edge" PICs can serve as models to states and localities as they begin to put in place the more consolidated, customer-oriented employment and training institutions envisioned in the proposed legislation. Lessons Learned: Facing the Future: Private Industry Councils in the '90s examines five representative PICs that have altered their missions and goals, their client and program mix, and their operational strategies in response to changing workforce demands brought on by such factors as technological advances and corporate downsizing. Included are profiles of the PICs in Quincy, MA; New Haven, CT; Kankakee Valley, IN; Sunnyvale, CA; and Eugene, OR. As the study notes, these PICs exhibit common characteristics which distinguish them from traditional PICs and make them more viable in today's job training environment. Among these common traits are a strong identification with the local business community and a belief that employers are their customers, trainees their product. These PICs seek to serve a client base beyond the adult disadvantaged jobseeker and as a result are involved in mainstream education and training institutions, school-to-work programs, business-education partnerships, and business-led school reform. Support of local economic development efforts is high on their list of priorities as is the active pursuit of multiple funding sources. The manner in which these PICs have implemented their agenda varies. Some have taken what the study's author Joseph Fischer calls the "supermarket" approach*offering a wide range of services to as broad a client base as possible through diverse funding sources and fee-for-service arrangements. They cater to their business customers and are very much a part of the local business culture. Others have taken a "mall manager" approach, assuming the role of planners, facilitators, program coordinators, and overseers. These PICs see their strength in their ability to expedite negotiations and resolve conflicts among program managers. They prefer to relinquish direct control over programs. The study concludes that if PICs are to continue to effectively provide employment and training services to America's workforce in the twenty-first century, they must follow the lead of these cutting-edge examples. Congress is preparing to make major changes in the nation's workforce development system--changes that will compel all PICs to reexamine their reason for existence, identify their basic strengths within the context of their business community, lobby for increased status among state and local policymakers, and create new programs to prepare disadvantaged and dislocated workers to succeed in the labor market. Only then, the study contends, will PICs be in a position to deal with the workforce challenges of the future. Distribution: NAPIC has distributed one copy of Facing the Future to each PIC and State Job Training Coordinating Council free of charge. Additional copies are available for a small fee from NAPIC, 1201 New York Avenue, NW, Washington, DC 20005, (202) 289-2950. Action Required: None