TEGL_25_12_Acc.pdf

ETA Advisory File Text

EMPLOYMENT AND TRAINING ADMINISTRATION ADVISORY SYSTEM U.S. DEPARTMENT OF LABOR Washington D.C. 20210 CLASSIFICATION WIA Wagner -Peyser CORRESPONDENCE SYMBOL OWI DATE May 1 2013 ADVISORY TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 25-12 TO ALL STATE WORKFORCE AGENCIES ALL STATE WORKFORCE LIAISONS FROM JANE OATES s Assistant Secretary SUBJECT Workforce Investment Act WIA Adult Dislocated Worker and Youth Activities Program Allotments for Program Year PY 2013 Final PY 2013 Allotments for the Wagner-Peyser Act Employment Service ES Program Allotments and Workforce Information Grants to States Allotments for PY 2013. 1. Purpose . To provide States and outlying areas with WIA Title I Adult Dislocated Worker and Youth Activities program allotments for PY 2013 final allotments for PY 2013 for the Wagner-Peyser ES Program as required by section 6 b 5 of the Wagner-Peyser Act as amended and the Workforce Information Grants to States allotments for PY 2013. 2. References . Continuing Appropriations Act 2013 Pub. L. 112-175 Balanced Budget and Emergency Deficit Control Act as amended Pub. L. 99-177 Budget Control Act of 2011 Pub. L. 112-25 Full-Year Continuing Appropriations Act 2013 Title I of Division F and Division G of the Consolidated and Further Continuing Appropriations Act 2013 Public Law Pub. L. 113-6 signed March 26 2013 Department of Labor Appropriations Act 2012 Title I III and V of Division F of the Consolidated Appropriation Act 2012 Pub. L. 112-74 signed December 23 2011 Training and Employment Guidance Letter TEGL 21-12 Updated Economically Disadvantaged Youth and Adult Data for use in Program Year PY 2013 and future Workforce Investment Act WIA Youth and Adult Within-State Allocation Formulas Workforce Investment Act of 1998 29 United States Code U.S.C 2801 et seq. Public Law 105-220 as amended Wagner-Peyser Act as amended 29 U.S.C. 49 et seq. WIA Final Rule 20 Code of Federal Regulations parts 660-671 State Integrated Workforce Plan Requirements for Workforce Investment Act Title I Wagner-Peyser Act and Department of Labor Workforce Programs OMB No. 1205- 0398 Planning Guidance for State Unified Plans and Unified Plan Modifications Submitted under Section 501 of the Workforce Investment Act WIA OMB No. 1205-0398 RESCISSIONS None EXPIRATION DATE Continuing 2 3. Background . On March 26 2013 the Consolidated and Further Continuing Appropriations Act 2013 Pub. L. 113-6 was signed into law from this point forward referred to as the Act . Section 3004 of Division G of the Act incorporated a mandatory across the board rescission of 0.2 percent impacting all Federal Fiscal Year FY 2013 discretionary funding. This 0.2 percent rescission applies to the PY 2013 funding for the programs covered by this TEGL and FY 2013 advance funds made available for PY2012 on October 1 2012. Additionally all FY 2013 discretionary program funding is subject to a 5.0 percent reduction under the sequestration order required by section 251A of the Balanced Budget and Emergency Deficit Control Act as amended. The Youth ES and the Workforce Information Grants are each funded through a single appropriation and as further described below both the sequestration and rescission reductions were applied to the PY 2013 appropriated level. However the current and prior appropriations acts fund the WIA Adult and Dislocated Worker programs in two separate appropriations. The first becomes available for obligation on July 1 this portion is commonly referred to as the base funds. The second becomes available for obligation on October 1 this portion is commonly referred to as advance funds because they are provided in the appropriations act passed during the fiscal year preceding when the funds are available. For example advance funds for PY 2012 that were made available on October 1 2012 are funds appropriated during FY 2012 but not made available until FY 2013 and are called the FY 2013 advance. Due to the funding structure of the Adult and Dislocated Worker programs the sequestration amount and 0.2 percent rescission applicable to the base funds that States receive on July 1 2013 were subtracted from the total appropriation before ETA executed the statutory funding formulas. Each State s share of the sequestration amount and 0.2 percent rescission applicable to the FY 2013 advance funds that States received on October 1 2012 was determined based on each State s share of the total funding for October 1 2012. To prevent the need to deobligate funding made available on October 1 2012 and reduce disruption to PY 2012 activities ETA subtracted the rescission amounts applicable to the October 1 2012 funding for each State from the State s July 1 2013 allotment level PY 2013 base . ETA will issue forthcoming guidance on funds administration flexibility that may be helpful to states and local areas in managing the funding cuts. The Act also specifies the following provisions which are applicable to utilization of the funds appropriated A local board still may transfer up to 30 percent of funds between the Adult and Dislocated Worker funding streams if approved by their Governor. Many states have waivers that allow their local boards to transfer up to 50 percent between those programs. A local board still may award contracts for class-size training that is a local board still may award a contract to an institution of higher education or other eligible training provider if the local board determines that the contract would facilitate the training of multiple individuals in high-demand occupations and if the contract would not limit customer choice. Notwithstanding section 128 a 1 of WIA the amount available for the Governor for Statewide workforce investment activities must not exceed 5 percent of the amount 3 allotted to the State from each of the WIA Youth Adult and Dislocated Worker PY 2013 appropriations. Salary caps from FY 2010 are maintained i.e. 179 700 . No funds under the header Employment and Training Administration may be used by a recipient or sub- recipient to pay the salary and or bonus of an individual either as direct costs or indirect costs at a rate in excess of Executive Level II. States also may establish lower salary caps. While the WIA allotments for States are based on formula provisions defined in WIA see Attachment A for WIA and Wagner-Peyser formula descriptions the WIA allotments for the outlying areas e.g. American Samoa Guam Northern Marianas Palau and the Virgin Islands are based on a discretionary formula as authorized under WIA Title I. The Marshall Islands and Micronesia no longer receive WIA Title I funding instead these areas now receive funding from the Department of Education s appropriation see Compact of Free Association Amendments of 2003 Pub. L. 108-188 December 17 2003 codified at 48 U.S.C. 1921d f 1 B iii the Compact . The Compact also specified that the Republic of Palau remained eligible for WIA Title I funding. See 48 U.S.C. 1921d f 1 B ix . The Consolidated Appropriations Act 2012 in the Department of Education s General Provisions at Section 306 Title III Division F Pub. L. 112-74 amended the Compact to extend the availability of WIA Title I funding to Palau through FY 2012. Section 1105 of Division F of the Consolidated and Further Continuing Appropriations Act 2013 further extended the same funding to Palau through FY 2013. In addition to this TEGL allotments and descriptions of the allotment formulas will be published in the Federal Register . Comments may be submitted to the Employment and Training Administration ETA on the formula used to distribute funds to outlying areas. 4. State WIA Youth Activities Funds Title I--Chapter 4--Youth Activities . A. State Allotments . The appropriated level for PY 2013 for WIA Youth Activities totals 781 375 289 which includes 11 720 629 for Native Americans 767 701 222 for States and 1 953 438 for outlying areas. These amounts include the sequestration amount and 0.2 percent rescission. Attachment B contains a breakdown of the WIA Youth Activities program allotments by State for PY 2013 and provides a comparison of these allotments to PY 2012. Please note that the Department of Labor the Department will provide the Native American Youth allotments in a separate TEGL. The three data factors required by WIA for the PY 2013 Youth Activities State formula allotments are 1. The number of unemployed for Areas of Substantial Unemployment ASUs averages for the 12-month period July 2011 through June 2012 as prepared by the States since PY 2006 using special 2000 Census data based on households obtained under contract with the Census Bureau and provided to States by the Bureau of Labor Statistics BLS 4 2. The number of excess unemployed individuals or the ASU excess depending on which is higher averages for the same 12-month period as used for ASU unemployed data and 3. The number of economically disadvantaged Youth age 16 to 21 excluding college students in the workforce and military from special tabulations of data from the American Community Survey ACS . The data used in the special tabulations for economically disadvantaged Youth were collected between January 1 2006 and December 31 2010. Since the total amount available for States in PY 2013 is below the required 1 billion threshold specified in WIA section 127 b 1 C iv IV which was also the case in PY 2012 the WIA additional minimum provisions see Attachment A are not applicable. Instead as required by WIA the Job Training Partnership Act JTPA section 262 a 3 as amended by section 701 of the Job Training Reform Amendments of 1992 minimums of 90 percent hold-harmless of the prior year allotment percentage and 0.25 percent State minimum floor apply. WIA also requires the application of a 130 percent stop-gain of the prior year allotment percentage. B. PY 2013 Funding WIA Agreement Notice of Obligations NOOs . Upon execution of the PY 2013 WIA Annual Funding Agreement Youth program funds will be available for States to use. C. Within-State Allocations . States must distribute WIA Youth Activities funds among local workforce investment areas subject to reservation of the 5 percent limitation for statewide workforce investment activities as discussed in the Background Section of this TEGL in accordance with the provisions of WIA section 128 and the approved WIA Wagner-Peyser Act State Plan. For purposes of identifying ASUs for the within- State Youth Activities allocation formula as done since PY 2006 States should continue to use the special 2000 Census data based on households which were obtained under contract with the Census Bureau and which BLS provided to States in October 2006. States must continue to use the data provided in 2006 for the ASU identification process until further notice. For purposes of determining the number of economically disadvantaged Youth for the statutory formula States should use the special tabulations of ACS data available at http www.doleta.gov budget disadvantagedYouthAdults.cfm for the within-State Youth program allocations. See TEGL 21-12 for further information. D. Transfers of Funds . Local workforce investment areas lack the authority to transfer funds to or from the Youth Activities program. E. Reallotment of Funds . The Secretary of Labor reallots Youth Activities program formula funds as provided for by WIA Section 127 c based on completed PY financial reports that the States submitted. The Department with reallot funds among States under WIA during PY 2013 based on State obligations made during PY 2012 20 CFR 667.150 . 5 5. State Adult Employment and Training Activities Funds Title I--Chapter 5--Adult and Dislocated Worker Employment and Training Activities . A. State Allotments . After accounting for the 0.2 rescission and sequestration reductions 730 624 342 is available for obligation to the States and outlying areas for PY 2013. The 0.2 rescission and sequestration reductions applied to both the FY 2013 advance funding funds made available for PY 2012 on October 1 2013 and the regular PY 2013 funding available July 1 2013 . To avoid rescinding funding already allocated to States and localities the Department fully applied the rescission and sequestration reductions from both the advance and regular appropriations to the July 1 2013 portion of the PY 2013 allotments. Attachment C shows the initial PY 2013 Adult Employment and Training Activities allotments the reductions related to the FY 2013 advance the final PY 2013 allotment amounts and a comparison of the final PY 2013 allotments to PY 2012 allotments by State. The three formula data factors for the Adult Activities program are the same as those used for the Youth Activities formula except the Department used data for the number of economically disadvantaged Adults age 22 to 72 excluding college students in the workforce and military . Since the total amount available for the Adult Activities program for States in PY 2013 is below the required 960 million threshold specified in WIA section 132 b 1 B iv IV as was also the case in PY 2012 the WIA additional minimum provisions See Attachment A are not applicable. Instead as required by WIA the JTPA section 262 a 3 as amended by section 701 of the Job Training Reform Amendments of 1992 minimums of 90 percent hold-harmless of the prior year allotment percentage and 0.25 percent State minimum floor apply. Also like the Youth program the Department used the provision applying the 130 percent stop-gain of the prior year allotment percentage. B. PY 2013 Funding WIA Agreement Notices of Obligation NOOs . For PY 2013 Congress appropriated funds for this program in two portions 18 624 342 is available for obligation on July 1 2013 PY 2013 including the 0.2 percent rescission and sequestration amounts applicable to both the July 1 2013 and October 1 2012 funds and 712 000 000 available for obligation on October 1 2013 FY 2014 . The Department prorated allotments to States and outlying areas based on these total amounts and will issue two NOOs one for July 1 2013 under the PY 2013 WIA grant agreement and the other for October 1 2013 also under the PY 2013 WIA grant agreement see Attachment D . C. Within-State Allocations . States must distribute WIA Adult Activities funds for PY 2013 allotments among local workforce investment areas subject to reservation of the 5 percent limitation for Statewide workforce investment activities in accordance with the provisions in WIA section 133 and the approved WIA Wagner Peyser Act State Plan. The 5 percent which may be retained for statewide activities must be calculated on the total final allotment for PY 2013. Similar to the Youth Activities program for purposes of identifying ASUs for the within- state Adult Activities allocation formula States must use the special 2000 Census data 6 provided to them by BLS in October 2006 until further notice. For purposes of developing the number of economically disadvantaged Adults for the statutory formula States should use the special tabulations of ACS data available at http www.doleta.gov budget disadvantagedYouthAdults.cfm for the within-state Adult allocations. See TEGL 21-12 for further information. D. Transfers of Funds . WIA section 133 b 4 provides the authority for local workforce investment areas with approval of the Governor to transfer up to 20 percent of the Adult Activities funds to Dislocated Worker Activities and up to 20 percent of Dislocated Worker Activities funds to Adult Activities. The Department of Labor Appropriations Act 2012 provided that notwithstanding section 133 b 4 up to 30 percent of these funds could be transferred between programs which is applicable for the life of the funds. This provision was extended by the appropriations act for 2013. Many States have waivers that allow them to transfer a higher percentage of funding between programs. E. Reallotment of Funds . Reallotment of Adult Activities program formula funds as provided for by WIA section 132 c is based on completed PY financial reports submitted by the States. The Department will reallot funds among States under WIA during PY 2013 based on State obligations of PY 2012 funds made during PY 2012 20 CFR 667.150 . 6. State Dislocated Worker Employment and Training Funds Title I--Chapter 5- Adult and Dislocated Worker Employment and Training Activities . A total of 1 179 657 807 is available for Dislocated Worker activities in PY 2013. The total appropriation includes formula funds for the States while the National Reserve is used for National Emergency Grants technical assistance and training demonstration projects and the outlying areas Dislocated Worker allotments. The 0.2 rescission and sequestration reductions applied to both the FY 2013 advance funding funds made available for PY 2012 on October 1 2013 and the regular PY 2013 funding available July 1 2013 . For the National Reserve funding the Department has fully applied the rescission and sequestration reductions for the FY 2013 advance funding. For the Dislocated Worker State formula funds to avoid rescinding funding already allocated to States and localities the Department has fully applied the rescission and sequestration reductions for the advance and regular appropriations to the July 1 2013 portion of the PY 2013 allotments. The amount available for outlying areas is 3 061 235 leaving 221 005 193 for the National Reserve. This leaves a total of 955 591 379 available for States. A. State Allotments . Attachment E shows the initial PY 2013 Dislocated Worker Activities fund allotments for PY 2013 the reductions related to the FY 2013 advance the final PY 2013 allotment amounts and a comparison of the final PY 2013 allotments to PY 2012 allotments by State. The three data factors required in WIA for the PY 2013 Dislocated Worker State formula allotments are 7 1. The number of unemployed averaged for the 12-month period October 2011 through September 2012 2. The number of excess unemployed averaged for the 12-month period October 2011 through September 2012 and 3. The number of long-term unemployed averaged for the 12-month period October 2011 through September 2012. B. PY 2013 Funding WIA Agreement NOOs . For PY 2013 Congress appropriated funds for this program in two portions for both formula funds and National Reserve funds. For State formula funds 95 591 379 is available for obligation on July 1 2013 PY 2013 including the 0.2 percent rescission and sequestration amounts for all funding available for federal obligation during FY 2013 and 860 000 000 is available for obligation on October 1 2013 FY 2014 . For the National Reserve which includes funds for the outlying areas 24 066 428 is available for obligation on July 1 2013 PY 2013 and 200 000 000 is available for obligation on October 1 2013 FY 2014 . Allotments to States and outlying areas are prorated based on the two amounts for formula funds and National Reserve respectively. Allotments will be issued in two NOOs one for July 1 2013 under the PY 2013 WIA grant agreement and the other for October 1 2013 also under the PY 2013 WIA grant agreement see Attachment F . C. Within-State Allocations . Dislocated Worker Activities funds for PY 2013 allotments are to be distributed among local workforce investment areas subject to the Governor s reservation of up to 25 percent for statewide rapid response activities and the 5 percent limitation for statewide workforce investment activities as discussed in the Background Section of this TEGL in accordance with the provisions in WIA section 133 and the approved WIA Wagner-Peyser Act State Plan. States must calculate the 5 percent which may be retained for statewide activities on the total final allotment for PY 2013. D. Transfers of Funds . WIA section 133 b 4 provides the authority for local workforce investment areas with approval of the Governor to transfer up to 20 percent of the Adult Activities funds to Dislocated Worker Activities and up to 20 percent of Dislocated Worker Activities funds to Adult Activities. The Department of Labor Appropriations Act 2012 provided that notwithstanding section 133 b 4 up to 30 percent of these funds could be transferred between programs which is applicable for the life of the funds. This provision was extended by the appropriations act for 2013. Many States have waivers that allow them to transfer a higher percentage of funding between programs. E. Reallotment of Funds . The Department bases reallotment of Dislocated Worker program formula funds as provided for by WIA section 132 c on completed PY financial reports submitted by the States. The Department will reallot funds among States under WIA during PY 2013 based on State obligations made during PY 2012 20 CFR 667.150 . 8 7. Wagner-Peyser ES Final Allotments . The appropriated level for PY 2013 for grants for the ES programs totals 664 183 664 including the 0.2 percent rescission and sequestration amounts . After determining the funding for outlying areas ETA calculates allotments to States using the formula set forth at section 6 of the Wagner-Peyser Act 29 U.S.C. 49e . ETA based PY 2013 formula allotments on each State s share of calendar year 2012 monthly averages of the Civilian Labor Force CLF and unemployment. The distribution of Wagner- Peyser Act funds for PY 2013 includes 662 564 615 for States as well as 1 619 049 for outlying areas. Attachment G shows the distribution of PY 2013 ES formula amounts by State compared to PY 2012. Under section 7 b of the Wagner-Peyser Act ten percent of the total sums allotted to each State shall be reserved for use by the governor to provide performance incentives services for groups with special needs and for the extra costs of exemplary models for delivering job services. 8. Workforce Information Grants . Total funds for PY 2013 are 31 939 520 the same as appropriated in PY 2012. Funds are distributed to States by administrative formula with 176 655 for Guam and the Virgin Islands. Guam and the Virgin Islands allotment amounts are partially based on CLF data which was updated this year with data from the 2010 Census. The remaining funds are distributed to the States with 40 percent distributed equally to all States and 60 percent distributed based on each State s share of the CLF for the 12 months ending September 2012. The allotment figures are listed in Attachment H. Policy guidance on the use of workforce information grants will be forthcoming. 9. Submission . In order to achieve greater efficiency and as part of ETA s ongoing effort to streamline the mandatory grant award process all States are required to submit an electronically signed copy of an SF- 424 Application for Federal Assistance through Grants.gov for each WIA funding stream under Funding Opportunity Numbers ETA-TEGL-PY-YOUTH CFDA 17.259 ETA-TEGL-PY-FY ADULT CFDA 17.258 ETA-TEGL-PY-FY DW CFDA 17.278 An electronically submitted SF-424 through Grants.gov constitutes an official signed document and must reflect the amount for each WIA funding stream Youth Adult and Dislocated Worker . The closing date for receipt of each SF-424 will be awarded three days after this advisory is published. A copy of the WIA Agreement Attachment I will be forwarded upon execution. All States must submit an electronically signed SF- 424 Application for Federal Assistance through Grants.gov for each ES funding program under Funding Opportunity Numbers ETA-TEGL-ES CFDA 17.207 ETA-TEGL-WIG CFDA 17.207 An electronically submitted SF-424 through Grants.gov constitutes an official signed document and must reflect the amount for each ES program Wagner-Peyser ES Program and Workforce Information Grants . The closing date for receipt of each SF-424 is June 13 9 2013. The Wagner-Peyser Employment Service Program and Workforce Information funds will be awarded in July 2013. A copy of the ES Agreement Attachment J will be forwarded upon execution. Each SF-424 must reflect the exact amount of the designated State allotment in item 18 Estimated Funding. Item 11 must include the Catalog of Federal Domestic Assistance Number for the applicable Funding Opportunity. This process can be complicated and time-consuming. As such the Department strongly encourages States to initiate the process as soon as possible and to allow for time to resolve technical problems if necessary. The Department strongly recommends that States immediately initiate and complete the Get Registered registration steps at http www.grants.gov applicants get registered.jsp . States should read through the registration process carefully before registering. These steps may take as much as four weeks to complete and this time should be factored into plans for electronic submission in order to avoid unexpected delays that could result in the rejection of an application. The site also contains registration checklists to help you walk through the process. The Department strongly recommends that States download the Organization Registration Checklist at http www.grants.gov assets Organization Steps Complete Registration.pdf and prepare the information requested before beginning the registration process. Reviewing and assembling required information before beginning the registration process will alleviate last minute searches for required information and save time. All applicants for Federal grant and funding opportunities are required to have a Data Universal Numbering System D-U-N-S number and must supply their D-U-N-S Number on the SF-424. Before submitting States must register with the System for Award Management SAM which has replaced the Central Contractor Registry CCR . Instructions for registering with SAM can be found at https www.sam.gov. An awardee must maintain an active SAM registration with current information at all times during which it has an active Federal award or an application under consideration. To remain registered in the SAM database after the initial registration there is a requirement to review and update the registration at least every 12 months from the date of initial registration or subsequently update the information in the SAM database to ensure it is current accurate and complete. Failure to register with SAM and maintain an active account will result in Grants.gov rejecting your submission. The next step in the registration process is creating a username and password with Grants.gov to become an Authorized Organizational Representative AOR . AORs will need to know the D-U-N-S Number of the organization for which they will be submitting applications to complete this process. To read more detailed instructions for creating a profile on Grants.gov visit http www.grants.gov applicants org step3.jsp . After creating a profile on Grants.gov the E-Biz point of Contact E-Biz POC - a representative from your organization who is the contact listed for SAM will receive an email to grant the AOR permission to submit applications on behalf of their organization. The E-Biz POC will then log in to Grants.gov and approve an applicant as the AOR thereby giving him or her permission to submit applications. To learn more about AOR Authorization visit http www.grants.gov applicants org step5.jsp or to track AOR status visit 10 http www.grants.gov applicants org step6.jsp . Submitting through Grants.gov constitutes an electronically signed SF-424 Application for Federal Assistance. The registration and account creation with Grants.gov with E-Biz POC approval establishes an AOR. When you submit the SF-424 through Grants.gov the name of your AOR on file will be inserted into the signature line. States must register the individual who is able to make legally binding commitments as the AOR. If States encounter a problem with Grants.gov and do not find an answer in any of the other resources call 1-800-518-4726 or 606-545-5035 to speak to a Customer Support Representative or email support grants.gov. The Contact Center is open 24 hours a day seven days a week. It is closed on federal holidays. States should e-mail all submission questions to Ms. Sharon Carter Grants Management Specialist at Carter.Sharon dol.gov and must reference the specific Funding Opportunity Number and along with question s include a contact name email address and phone number. 10. Reporting . For the WIA formula programs States are required to submit the seven designated WIA quarterly financial status reports covering funds received for each of the programs including separate reports for each of the fund year periods for the Adult and Dislocated Worker Activities programs -- July 1 funds and October 1 funds . These seven WIA reports provide financial data for Statewide Youth Statewide Adult Statewide Dislocated Worker Statewide Rapid Response Dislocated Worker Activities local Youth local Adult and local Dislocated Worker activities. The Department also requires States to submit the designated financial reports each quarter for the Wagner-Peyser Act funds and the Workforce Information Grant funds. 11. Inquiries . Questions regarding these allotments may be directed to the appropriate Regional Office. Information on allotments and planning requirements may also be found on the ETA Web site at http www.doleta.gov . 12. Attachments . A. WIA and Wagner-Peyser Statutory Formula Descriptions B. WIA Youth Activities Allotments PY 2013 vs PY 2012 C. WIA Adult Activities Allotments PY 2013 vs PY 2012 D. WIA Adult Activities Allotments July 1 and October 1 Funding E. WIA Dislocated Worker Activities Allotments PY 2013 vs PY 2012 F. WIA Dislocated Worker Activities Allotments July 1 and October 1 Funding 11 G. Employment Service Wagner-Peyser Allotments PY 2013 vs PY 2012 H. Workforce Information Grants Allotments PY 2013 vs PY 2012 I. WIA Agreement J. ES Agreement