TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 24-02

Employment and Training Administration
Advisory System

U.S. Department of Labor
Washington, D.C. 20210

CLASSIFICATION
WIA/DW Activities/Reallotment

CORRESPONDENCE SYMBOL
OWI

DATE
April 4, 2003

TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 24-02

TO: ALL STATE WORKFORCE AGENCIES
ALL STATE WORKFORCE LIAISONS

/S/

FROM:	EMILY STOVER DeROCCO Assistant Secretary

SUBJECT:

Reallotment of Workforce Investment Act (WIA) Title I Formula- Allotted Funds for Dislocated Worker Activities

1. Purpose. To provide adjusted funding levels for Program Year (PY) 2002 allotments for the dislocated worker program under WIA Title I Section 132(c) on recapture and reallotment.

2. References.

3. Background. TEGL 13-01, Workforce Investment Act Allotments for Program Year (PY) 2002; Wagner Peyser Act Preliminary Planning Estimates for PY 2002; Reemployment Services Allotments for PY 2002; Workforce Information Grants to States for PY 2002; and TEGL 26-01, Advance Notice of Revised PY 2001 Allotments for Dislocated Worker Activities advised states that reallotment of funds among states will occur during PY 2002 based on obligations of PY 2001 funds as of the end of PY 2001. There were no recapture and reallotment of WIA funds in PY 2001.

WIA section 132(c) requires the Secretary to conduct reallotment of dislocated worker formula funds based on state financial reports as of the end of the prior program year. The procedures the Secretary uses for recapture and reallotment of funds are described in WIA regulations at 20 CFR Section 667.150. We will not recapture any PY 2002 funds for Adult and Youth programs because in no case do PY 2001 state unobligated funds exceed the statutory requirement of 20 percent of the state total PY 2001 allotted funds. For the dislocated worker program, a total of $2,867,639 of PY 2002 funds will be recaptured from four states and reallotted to the remaining states, as required by WIA Section 132(c).

RESCISSIONS	EXPIRATION DATE
	Continuing

4. Notice of Obligation (NOO) Adjustment.Notices of Obligation and Deobligation for the state will be issued to reflect the recapture and reallotment of these funds. The adjustment of funds will be made to the FY 2003 advance portion (October 1 to June 30) of the PY 2002 allotments that were issued in October 2002. Attached are tables displaying the net changes to the PY 2002 and the FY 2003 advance portion formula allotments and a description of the reallotment methodology.

5. Procedures and Reporting.Neither WIA statutory language nor WIA regulatory language provides specific requirements by which states must distribute recaptured funds among state and local areas, so states have flexibility to determine the methodology to be used. Instead, WIA Section 132(c)(5) does require that the Governor prescribe equitable procedures for making funds available from the state and local areas in the event that the state is required to make funds available for reallotment.

For reporting purposes, the recapture/reallotment amounts must be reflected (decrease or increase) in the "Total Federal Funds Authorized" line of any affected FY 2003 WIA Financial Status Reports (Statewide Activities, Statewide Rapid Response, Local Dislocated Worker Program Activities, Local Administration) in a manner consistent with the method of distribution of these amounts to state and local areas used by the state. An explanation of the adjustment should be included in the remarks sections of the adjusted reports.

6. Action Required.State Liaisons are requested to provide this guidance letter to the appropriate WIA staff.

7. Inquiries. Direct questions regarding the revised allotments to the appropriate Regional Office.

8. Attachments.

WIA Dislocated Worker Activities, PY 2002 Reallotment to States

WIA Dislocated Worker Activities, PY 2002 Revised Allotments with Reallotment

Dislocated Worker State Formula PY 2002 Reallotment Methodology



TO:	ALL STATE WORKFORCE AGENCIES ALL STATE WORKFORCE LIAISONS