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References: The Department of Labor Appropriations Act, 1997 and Conference Report (Public Law 104-208, September 30, 1996, sections 101(e) and 105). Background: The Department of Labor Appropriations Act, 1997, contains three waiver provisions that have the potential to make a significant contribution to promoting innovative changes to the nation's workforce development systems. Each provision authorizes waivers as well as limits eligibility for such waivers. An overview of the authority is given below. Generally, these provisions provide: A) waiver authority to the Secretary of Labor to grant to States limited statutory and regulatory waivers of the Job Training Partnership Act and the Wagner-Peyser Act only for funds available for expenditure in program year 1997 which may include program year 1995 and 1996 funds; B) a workforce flexibility partnership (Work-Flex) demonstration under which authority to grant certain JTPA and Wagner-Peyser statutory and regulatory waivers is delegated to not more than six States for up to five years; and C) a narrow authority to grant limited waivers to those States which have a prior Memorandum of Understanding with the United States. In effect, this provision extends for a year a current agreement with the State of Oregon. Common to all of these provisions is a focus on outcomes and accountability for federal funds. Additionally, each provision has a limitation on what statutory and regulatory sections may be waived. See attachment for the details. ETA is currently developing procedures for these waiver authorities and will be issuing guidance to the JTPA and Wagner Peyser systems as soon as possible.

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References: UIPL 30-95, UIPL 30-95, Change 1 and UIPL 30-95, Change 2. Background: There has been considerable interest among State Employment Security Agencies (SESAs) in seeing FUTA receipts by State compared to amounts returned to the States in past years. This UIPL provides these data for FY 1995 and includes updated totals for FY 1981-95. The entire series for FY 1981-93 can be found in UIPL 30-95, and the individual State totals for FY 1994 can be found in UIPL 30-95, Change 1. When comparisons are made between FUTA receipts and amounts returned, it is important to recognize that $7.6 billion of the FUTA receipts for FY 1981-87 were used to repay general revenue loans for Federal benefits paid prior to FY 1981. Also, certain items, particularly postage costs and National Activities expenditures, are not reflected in the State data. These items total approximately $2.3 billion for the FY 1981-95 period. Both of these factors serve to reduce the apparent proportion of FUTA receipts returned to States. Action Required: Please distribute to appropriate staff and replace UIPL 30-95, Change 2.

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