Notice on Reallotment of Workforce Investment Act (WIA) Title I Formula Allotted Funds for Dislocated Worker Activities for Program Year (PY) 2013

Federal RegisterMay 14, 2014

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DEPARTMENT OF LABOR

Employment and Training Administration

Notice on Reallotment of Workforce Investment Act (WIA) Title I Formula Allotted Funds for Dislocated Worker Activities for Program Year (PY) 2013

AGENCY:

Employment and Training Administration, Labor.

ACTION:

Notice.

SUMMARY:

Public Law 105-220, the Workforce Investment Act (WIA), requires the Secretary of Labor (Secretary) to conduct reallotment of dislocated worker formula allotted funds based on State financial reports submitted as of the end of the prior program year (PY). This notice publishes the dislocated worker PY 2013 funds for recapture by State and the amount to be reallotted to eligible States.

DATES:

This notice is effective May 14, 2014.

FOR FURTHER INFORMATION CONTACT:

Ms. Amanda Ahlstrand, Administrator, U.S. Department of Labor, Office of Workforce Investment, Employment and Training Administration, Room C-4526, 200 Constitution Avenue NW., Washington, DC. Telephone (202) 693-3052 (this is not a toll-free number) or fax (202) 693-3981.

SUPPLEMENTARY INFORMATION:

In the FY 2013 Appropriations Act, Congress appropriated WIA PY 2013 funds in two portions: (1) Funds available for obligation July 1, 2013 (i.e., PY 2013 “base” funds), and (2) funds available for obligation October 1, 2013 (i.e., FY 2014 “advance” funds). Together, these two portions make up the complete PY 2013 WIA allotment. TEGL 25-12 announced WIA allotments based on this appropriation and alerted states to the recapture and reallotment of funds' provisions, as required under WIA Section 132(c). This section of WIA requires the Secretary of Labor (Secretary) to conduct reallotment of excess unobligated WIA Adult, Youth, and Dislocated Worker formula funds based on state financial reports submitted at the end of the prior program year (i.e., PY 2012).

WIA regulations at 20 CFR 667.150 describe the procedures the Secretary uses for recapture and reallotment of funds. We will not recapture any PY 2013 funds for Adult and Youth programs because there are no cases where PY 2012 unobligated funds exceed the statutory requirements of 20 percent of state allotted funds. For the Dislocated Worker program, however, one state had unobligated PY 2012 funds in excess of 20 percent. Therefore, ETA will recapture a total of $56,422 from PY 2013 funding from this one state and reallot those funds to the remaining eligible states, as required by WIA Section 132(c).

ETA will issue Notices of Obligation and Deobligation for the states to reflect the recapture and reallotment of these funds. The adjustment of funds will be made to the FY 2014 advance portion of the PY 2013 allotments, which ETA issued in October 2013. The attached tables display the net changes to PY 2013 formula allotments and a description of the reallotment methodology.

Neither WIA statutory language, nor WIA regulatory language provides specific requirements by which states must distribute recaptured funds among states and local areas, so states have flexibility to determine the methodology used.

For any state subject to recapture of funds, WIA Section 132(c)(5) requires the Governor to prescribe equitable procedures for reacquiring funds from the state and local areas.

As mentioned, the recapture/reallotment will apply to the FY 2014 advance portion of the PY 2013 allotment. Therefore, for reporting purposes, states should reflect the recapture/reallotment amount (decrease or increase) in the “Total Federal Funds Authorized” line of any affected FY 2014 WIA 9130 Financial Status Reports (State Dislocated Worker Activities, Statewide Rapid Response, Local Dislocated Worker Activities) in a manner consistent with the method of distribution of these amounts to state and local areas used by the state. The state should include an explanation of the adjustment in the remarks section of the adjusted reports.

I. Attachment A

Attachment A—U.S. Department of Labor Employment and Training Administration WIA Dislocated Worker Activities PY 2013 Reallotment to States

Excess unobligated PY 2012 funds to be

recaptured in

PY 2013

Eligible states' PY 2012 *

dislocated

worker

allotments

PY 2013

reallotment

amount for

eligible states

Total PY 2013 allotments

Recapture/reallotment adjustment to PY 2013

allotments

Revised total PY 2013 allotments

Alabama

15,470,929

868

12,455,814

868

12,456,682

Alaska

1,617,454

1,702,318

1,702,409

Arizona **

21,501,357

1,206

18,333,183

1,206

18,334,389

Arkansas

7,022,636

394

6,881,074

394

6,881,468

California

167,290,806

9,386

162,982,853

9,386

162,992,239

Colorado

16,139,023

906

15,672,487

906

15,673,393

Connecticut

12,426,602

697

11,913,095

697

11,913,792

Delaware

2,364,307

133

2,136,390

133

2,136,523

District of Columbia

56,422

2,733,764

(56,422)

2,677,342

Florida

77,493,519

4,348

67,109,375

4,348

67,113,723

Georgia

36,621,852

2,055

33,902,103

2,055

33,904,158

Hawaii

2,544,269

143

2,658,487

143

2,658,630

Idaho

4,848,932

272

4,113,487

272

4,113,759

Illinois

45,178,269

2,535

47,415,147

2,535

47,417,682

Indiana

19,765,678

1,109

19,210,950

1,109

19,212,059

Iowa

5,396,616

303

4,479,610

303

4,479,913

Kansas

6,269,506

352

5,244,331

352

5,244,683

Kentucky

14,427,521

809

12,670,474

809

12,671,283

Louisiana

10,053,591

564

10,343,401

564

10,343,965

Maine

3,412,078

191

3,558,306

191

3,558,497

Maryland

13,447,267

754

14,160,334

754

14,161,088

Massachusetts

18,124,524

1,017

14,686,948

1,017

14,687,965

Michigan

37,953,582

2,129

31,831,964

2,129

31,834,093

Minnesota

12,017,269

674

9,577,081

674

9,577,755

Mississippi

10,347,906

581

9,722,013

581

9,722,594

Missouri

19,340,590

1,085

14,872,573

1,085

14,873,658

Montana

2,228,587

125

1,820,084

125

1,820,209

Nebraska

1,769,179

1,779,828

1,779,927

Nevada

14,405,631

808

13,990,600

808

13,991,408

New Hampshire

2,024,043

114

2,192,012

114

2,192,126

New Jersey

30,893,743

1,733

34,280,662

1,733

34,282,395

New Mexico **

4,691,957

263

4,387,085

263

4,387,348

New York

53,044,468

2,976

64,292,997

2,976

64,295,973

North Carolina

33,777,825

1,895

36,354,385

1,895

36,356,280

North Dakota

491,619

466,156

466,184

Ohio

37,413,569

2,099

29,848,097

2,099

29,850,196

Oklahoma

5,818,631

326

5,230,860

326

5,231,186

Oregon

14,180,338

796

12,544,754

796

12,545,550

Pennsylvania

33,631,354

1,887

35,257,512

1,887

35,259,399

Puerto Rico

13,793,419

774

13,657,789

774

13,658,563

Rhode Island

4,729,729

265

5,071,296

265

5,071,561

South Carolina

17,249,177

968

15,453,121

968

15,454,089

South Dakota

914,670

717,751

717,802

Tennessee

21,003,845

1,178

18,116,992

1,178

18,118,170

Texas

65,049,307

3,650

58,272,349

3,650

58,275,999

Utah **

6,236,709

350

4,299,449

350

4,299,799

Vermont

1,060,432

864,140

864,199

Virginia

16,431,137

922

15,640,645

922

15,641,567

Washington

22,717,337

1,275

21,476,440

1,275

21,477,715

West Virginia

4,805,853

270

3,992,664

270

3,992,934

Wisconsin

15,287,864

858

14,349,020

858

14,349,878

Wyoming

909,452

867,129

867,180

STATE TOTAL

$56,422

$1,005,635,958

$56,422

$955,591,379

* PY 2012 allotment amounts include prior year recapture/reallotment amounts and are used to determine the reallotment amount eligible states receive of the recaptured amount.

** Includes Navajo Nation.

1/7/2014.

II. Attachment B

Attachment B—U.S. Department of Labor Employment and Training Administration WIA Dislocated Worker Activities PY 2013 Revised Allotments With Reallotment—PY/FY Split

Total allotment

Original

Recapture/

reallotment

Revised

Available 7/1/13

Original

Recapture/

reallotment

Revised

Available 10/1/13

Original

Recapture/

reallotment

Revised

Alabama

12,455,814

868

12,456,682

1,156,963

11,298,851

868

11,299,719

Alaska

1,702,318

1,702,409

177,118

1,525,200

1,525,291

Arizona*

18,333,183

1,206

18,334,389

1,751,421

16,581,762

1,206

16,582,968

Arkansas

6,881,074

394

6,881,468

697,414

6,183,660

394

6,184,054

California

162,982,853

9,386

162,992,239

16,482,232

146,500,621

9,386

146,510,007

Colorado

15,672,487

906

15,673,393

1,582,932

14,089,555

906

14,090,461

Connecticut

11,913,095

697

11,913,792

1,197,161

10,715,934

697

10,716,631

Delaware

2,136,390

133

2,136,523

209,496

1,926,894

133

1,927,027

District of Columbia

2,733,764

(56,422)

2,677,342

284,922

2,448,842

(56,422)

2,392,420

Florida

67,109,375

4,348

67,113,723

6,457,526

60,651,849

4,348

60,656,197

Georgia

33,902,103

2,055

33,904,158

3,358,754

30,543,349

2,055

30,545,404

Hawaii

2,658,487

143

2,658,630

275,901

2,382,586

143

2,382,729

Idaho

4,113,487

272

4,113,759

392,031

3,721,456

272

3,721,728

Illinois

47,415,147

2,535

47,417,682

4,928,468

42,486,679

2,535

42,489,214

Indiana

19,210,950

1,109

19,212,059

1,940,989

17,269,961

1,109

17,271,070

Iowa

4,479,610

303

4,479,913

422,490

4,057,120

303

4,057,423

Kansas

5,244,331

352

5,244,683

496,459

4,747,872

352

4,748,224

Kentucky

12,670,474

809

12,671,283

1,226,982

11,443,492

809

11,444,301

Louisiana

10,343,401

564

10,343,965

1,067,541

9,275,860

564

9,276,424

Maine

3,558,306

191

3,558,497

369,032

3,189,274

191

3,189,465

Maryland

14,160,334

754

14,161,088

1,473,584

12,686,750

754

12,687,504

Massachusetts

14,686,948

1,017

14,687,965

1,368,705

13,318,243

1,017

13,319,260

Michigan

31,831,964

2,129

31,834,093

3,017,299

28,814,665

2,129

28,816,794

Minnesota

9,577,081

674

9,577,755

884,911

8,692,170

674

8,692,844

Mississippi

9,722,013

581

9,722,594

969,070

8,752,943

581

8,753,524

Missouri

14,872,573

1,085

14,873,658

1,348,265

13,524,308

1,085

13,525,393

Montana

1,820,084

125

1,820,209

170,284

1,649,800

125

1,649,925

Nebraska

1,779,828

1,779,927

182,198

1,597,630

1,597,729

Nevada

13,990,600

808

13,991,408

1,413,120

12,577,480

808

12,578,288

New Hampshire

2,192,012

114

2,192,126

230,313

1,961,699

114

1,961,813

New Jersey

34,280,662

1,733

34,282,395

3,630,874

30,649,788

1,733

30,651,521

New Mexico *

4,387,085

263

4,387,348

436,439

3,950,646

263

3,950,909

New York

64,292,997

2,976

64,295,973

6,996,846

57,296,151

2,976

57,299,127

North Carolina

36,354,385

1,895

36,356,280

3,811,703

32,542,682

1,895

32,544,577

North Dakota

466,156

466,184

46,639

419,517

419,545

Ohio

29,848,097

2,099

29,850,196

2,759,456

27,088,641

2,099

27,090,740

Oklahoma

5,230,860

326

5,231,186

511,808

4,719,052

326

4,719,378

Oregon

12,544,754

796

12,545,550

1,218,785

11,325,969

796

11,326,765

Pennsylvania

35,257,512

1,887

35,259,399

3,663,344

31,594,168

1,887

31,596,055

Puerto Rico

13,657,789

774

13,658,563

1,389,808

12,267,981

774

12,268,755

Rhode Island

5,071,296

265

5,071,561

531,035

4,540,261

265

4,540,526

South Carolina

15,453,121

968

15,454,089

1,509,711

13,943,410

968

13,944,378

South Dakota

717,751

717,802

65,783

651,968

652,019

Tennessee

18,116,992

1,178

18,118,170

1,740,095

16,376,897

1,178

16,378,075

Texas

58,272,349

3,650

58,275,999

5,692,801

52,579,548

3,650

52,583,198

Utah*

4,299,449

350

4,299,799

365,082

3,934,367

350

3,934,717

Vermont

864,140

864,199

80,759

783,381

783,440

Virginia

15,640,645

922

15,641,567

1,567,306

14,073,339

922

14,074,261

Washington

21,476,440

1,275

21,477,715

2,146,144

19,330,296

1,275

19,331,571

West Virginia

3,992,664

270

3,992,934

376,719

3,615,945

270

3,616,215

Wisconsin

14,349,020

858

14,349,878

1,429,710

12,919,310

858

12,920,168

Wyoming

867,129

867,180

86,951

780,178

780,229

STATE TOTAL

955,591,379

95,591,379

860,000,000

III. Attachment C

Dislocated Worker State Formula PY 2013 Reallotment Methodology

Reallotment Summary:

This year the Employment and Training Administration (ETA) analyzed State Workforce Investment Act (WIA) Dislocated Worker 9130 financial reports from the June 30, 2013 reporting period for PY 2012, to determine if any state had unobligated funds in excess of 20 percent of their PY 2012 allotment amount. If so, ETA will recapture that amount from PY 2013 funds and reallot the recaptured funds among eligible states.

• Source Data: State WIA 9130 financial status reports

• Programs:

State Dislocated Worker

State Rapid Response

Local Dislocated Worker (includes local administration)

• Period: June 30, 2013

• Years covered: PY 2012 and FY 2013

Reallotment Calculation Process:

Determine each state's unobligated balance:

ETA computes the state's total amount of PY 2012 state obligations (including FY 2013 funds) for the DW program. State obligations are the sum of DW statewide activities obligations, Rapid Response obligations, and 100 percent of what the state authorizes for DW local activities. To determine the unobligated balance for the DW program, ETA subtracts the total DW obligations amount from the state's total 2012 DW allotment (adjusted for recapture/reallotment and statutory formula-based rescissions, if applicable). For this year's calculation, PY 2012 allotments were adjusted for recapture/reallotment, but there was no applicable rescission. (Note: for this process, ETA adds DW allotted funds transferred to the Navajo Nation back to Arizona, New Mexico, and Utah local DW authorized amounts).

Excluding state administrative costs:

Section 667.150 of the regulations provides that the recapture calculations exclude the reserve for state administration which is part of the DW statewide activities. States do not report data on state administrative amounts authorized and obligated on WIA 9130 financial reports. In the preliminary calculation, to determine states potentially liable for recapture, ETA estimates the DW portion of the state administrative amount authorized by calculating the five percent maximum amount for state DW administrative costs using the DW state allotment amounts (excluding any recapture/reallotment that occurred). For the DW portion of the state administrative amount obligated, ETA treats 100 percent of the estimated authorized amount as obligated, although the estimate of state administration obligations is limited by reported statewide activities obligations overall.

Follow-up with states potentially liable for recapture:

ETA requests that those states potentially liable for recapture provide additional data on state administrative amounts which are not regularly reported on the PY 2012 and FY 2013 statewide activities reports. The additional information requested includes the amount of statewide activities funds the state authorized and obligated for state administration as of June 30, 2013. If a state provides actual state DW administrative costs, authorized and obligated, in the comments section of revised 9130 reports, this data replaces the estimates. Based on the requested additional actual data submitted by potentially liable states on revised reports, ETA reduces the DW total allotment for these states by the amount states indicate they authorized for state administrative costs. Likewise, ETA reduces the DW total obligations for these states by the portion obligated for state administration.

Recapture calculation:

States (including those adjusted by actual state administrative data) with

unobligated balances

exceeding 20 percent of the combined PY 2012/FY 2013 DW

allotment amount

(adjusted for recapture/reallotment in PY 2012) will have their PY 2013 DW funding (from the FY 2014 portion) reduced (recaptured) by the amount of the excess.

Reallotment calculation:

Finally, states with unobligated balances which do

not

exceed 20 percent (eligible states) will receive a share of the total recaptured amount (based on their share of the total PY 2012/FY 2013 DW allotments of eligible states) in their PY 2013 DW funding (the FY 2014 portion).

Portia Wu,

Assistant Secretary for the Employment and Training Administration.

[FR Doc. 2014-11045 Filed 5-13-14; 8:45 am]

BILLING CODE 4510-30-P

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