Notice on Reallotment of Workforce Innovation Opportunity Act (WIOA) Title I Formula Allotted Funds for Dislocated Worker Activities for Program Year (PY) 2016

Federal RegisterApr 5, 2017

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DEPARTMENT OF LABOR

Employment and Training Administration

Notice on Reallotment of Workforce Innovation Opportunity Act (WIOA) Title I Formula Allotted Funds for Dislocated Worker Activities for Program Year (PY) 2016

AGENCY:

Employment and Training Administration (ETA), Labor.

ACTION:

Notice.

SUMMARY:

The Workforce Innovation Opportunity Act (WIOA), requires the Secretary of Labor (Secretary) to conduct reallotment of certain WIOA formula allotted funds based on ETA 9130 financial reports submitted by states as of the end of the prior program year (PY). This notice publishes the dislocated worker PY 2016 funds for recapture by state and the amount to be reallotted to eligible states.

DATES:

This notice is effective April 5, 2017.

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 Fiscal Year (FY) 2016 Appropriations Act, Congress appropriated WIOA PY 2016 funds in two portions: (1) Funds available for obligation July 1, 2016 (

i.e.,

PY 2016 “base” funds), and (2) funds available for obligation October 1, 2016 (

i.e.,

Fiscal Year (FY) 2017 “advance” funds). Together, these two portions make up the complete PY 2016 WIOA funding. Training and Employment Guidance Letter No. 17-15 announced WIOA allotments based on this appropriation and alerted states to the recapture and reallotment of funds' provisions, as required under WIOA Section 132(c). This section of WIOA requires the Secretary of Labor (Secretary) to conduct reallotment of excess unobligated WIOA Adult, Youth, and Dislocated Worker formula funds based on ETA 9130 financial reports submitted by states at the end of the prior program year (

i.e.,

PY 2015).

WIOA regulations at 20 CFR 693.135 describe the procedures the Secretary uses for recapture and reallotment of funds. ETA will not recapture any PY 2016 funds for the Adult and Youth programs because there are no states where PY 2015 unobligated funds exceed the statutory requirements of 20 percent of state allotted funds. However, for the Dislocated Worker program, Kentucky had unobligated PY 2015 funds in excess of 20 percent of its allotment. Therefore, ETA will recapture a total of $805,082 of PY 2016 funding from Kentucky and reallot those funds to the remaining eligible states, as required by WIOA Section 132(c).

ETA will issue a Notice of Award to the states to reflect the recapture and reallotment of these funds. The adjustment of funds will be made to the FY 2017 advance portion of the PY 2016 allotments, which ETA issued in October 2016. The attached tables display the net changes to PY 2016 formula allotments and a description of the reallotment methodology.

WIOA and its implementing regulations do not provide specific requirements by which states must distribute realloted funds, so states have flexibility to determine the methodology used.

For any state subject to recapture of funds, WIOA 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 adjustments will be made to the FY 2017 advance portion of the PY 2016 allotment. Therefore, for reporting purposes, states must reflect the recapture/reallotment amount (decrease or increase) in the “Total Federal Funds Authorized” line of any affected FY 2017 ETA 9130 financial 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 must include an explanation of the

adjustment in the remarks section of the adjusted reports.

I. Attachment A

U.S. Department of Labor Employment and Training Administration WIOA Dislocated Worker Activities PY 2016 Reallotment to States

[02/08/2017]

Calculating reallotment amount

Excess

unobligated

PY 2015

funds to be

recaptured from PY 2016 funds

Eligible states'

PY 2015

dislocated worker

allotments

Reallotment

amount for

eligible states

(based on

eligible states' share of PY 2015 allotments)

Impact on PY 2016 allotments

Total original

PY 2016

allotments before

reallotment

Recapture/

reallotment

adjustment

to PY 2016

allotments

Revised

total

PY 2016

allotments

Alabama

$15,012,219

$12,128

$16,427,975

$12,128

$16,440,103

Alaska

2,184,119

1,765

2,854,009

1,765

2,855,774

Arizona **

22,511,715

18,187

25,029,051

18,187

25,047,238

Arkansas

8,052,059

6,505

7,757,044

6,505

7,763,549

California

164,063,131

132,548

169,644,376

132,548

169,776,924

Colorado

13,622,336

11,006

12,323,381

11,006

12,334,387

Connecticut

13,612,474

10,998

14,353,697

10,998

14,364,695

Delaware

2,596,904

2,098

2,349,277

2,098

2,351,375

District of Columbia

3,443,627

2,782

4,499,821

2,782

4,502,603

Florida

61,786,732

49,918

65,053,785

49,918

65,103,703

Georgia

39,981,701

32,301

40,521,426

32,301

40,553,727

Hawaii

1,931,277

1,560

1,894,161

1,560

1,895,721

Idaho

2,636,879

2,130

2,385,440

2,130

2,387,570

Illinois

58,325,151

47,121

52,763,567

47,121

52,810,688

Indiana

17,611,408

14,228

17,062,801

14,228

17,077,029

Iowa

4,426,239

3,576

4,004,176

3,576

4,007,752

Kansas

4,682,959

3,783

4,609,831

3,783

4,613,614

Kentucky

805,082

14,673,688

(805,082)

13,868,606

Louisiana

9,215,660

7,445

12,042,192

7,445

12,049,637

Maine

3,592,396

2,902

3,249,844

2,902

3,252,746

Maryland

17,549,612

14,178

18,580,386

14,178

18,594,564

Massachusetts

21,265,196

17,180

19,237,457

17,180

19,254,637

Michigan

40,080,962

32,382

36,259,049

32,382

36,291,431

Minnesota

8,332,420

6,732

7,537,884

6,732

7,544,616

Mississippi

11,047,184

8,925

11,826,808

8,925

11,835,733

Missouri

18,476,297

14,927

17,142,075

14,927

17,157,002

Montana

1,699,458

1,373

1,537,406

1,373

1,538,779

Nebraska

2,016,308

1,629

1,824,043

1,629

1,825,672

Nevada

13,272,377

10,723

14,417,704

10,723

14,428,427

New Hampshire

2,355,019

1,903

2,130,457

1,903

2,132,360

New Jersey

33,968,534

27,443

38,809,709

27,443

38,837,152

New Mexico **

6,691,816

5,406

7,937,300

5,406

7,942,706

New York

69,009,253

55,753

62,428,888

55,753

62,484,641

North Carolina

31,698,026

25,609

31,022,721

25,609

31,048,330

North Dakota

566,170

457

728,444

457

728,901

Ohio

33,758,857

27,274

30,539,787

27,274

30,567,061

Oklahoma

5,943,501

4,802

5,376,760

4,802

5,381,562

Oregon

13,672,401

11,046

14,140,167

11,046

14,151,213

Pennsylvania

37,184,902

30,042

36,591,154

30,042

36,621,196

Puerto Rico

20,357,210

16,447

25,824,090

16,447

25,840,537

Rhode Island

5,533,256

4,470

5,005,633

4,470

5,010,103

South Carolina

12,481,973

10,084

16,310,315

10,084

16,320,399

South Dakota

856,158

692

1,070,734

692

1,071,426

Tennessee

21,507,643

17,376

23,146,617

17,376

23,163,993

Texas

55,598,809

44,919

50,297,194

44,919

50,342,113

Utah **

2,963,244

2,394

3,143,067

2,394

3,145,461

Vermont

806,732

652

890,075

652

890,727

Virginia

17,685,631

14,288

16,945,520

14,288

16,959,808

Washington

19,533,856

15,782

22,462,284

15,782

22,478,066

West Virginia

4,814,588

3,890

6,291,269

3,890

6,295,159

Wisconsin

15,763,228

12,735

14,260,128

12,735

14,272,863

Wyoming

728,014

588

740,333

588

740,921

State total

805,082

996,507,621

805,082

1,017,955,000

** Includes Navajo Nation.

PY 2015 allotment amounts are used to determine the reallotment amount eligible states receive of the recaptured amount.

II. Attachment B

U.S. Department of Labor, Employment and Training Administration, WIOA Dislocated Worker Activities, PY 2016 Revised Allotments With Reallotment—PY/FY Split

[01/27/2017]

Total allotment

Original

Recapture/

reallotment

Revised

Available 7/1/16

Original

Recapture/

reallotment

Revised

Available 10/1/16

Original

Recapture/

reallotment

Revised

Alabama

16,427,975

12,128

16,440,103

2,595,993

13,831,982

12,128

13,844,110

Alaska

2,854,009

1,765

2,855,774

450,998

2,403,011

1,765

2,404,776

Arizona *

25,029,051

18,187

25,047,238

3,955,158

21,073,893

18,187

21,092,080

Arkansas

7,757,044

6,505

7,763,549

1,225,789

6,531,255

6,505

6,537,760

California

169,644,376

132,548

169,776,924

26,807,663

142,836,713

132,548

142,969,261

Colorado

12,323,381

11,006

12,334,387

1,947,374

10,376,007

11,006

10,387,013

Connecticut

14,353,697

10,998

14,364,695

2,268,210

12,085,487

10,998

12,096,485

Delaware

2,349,277

2,098

2,351,375

371,239

1,978,038

2,098

1,980,136

District of Columbia

4,499,821

2,782

4,502,603

711,074

3,788,747

2,782

3,791,529

Florida

65,053,785

49,918

65,103,703

10,279,975

54,773,810

49,918

54,823,728

Georgia

40,521,426

32,301

40,553,727

6,403,305

34,118,121

32,301

34,150,422

Hawaii

1,894,161

1,560

1,895,721

299,320

1,594,841

1,560

1,596,401

Idaho

2,385,440

2,130

2,387,570

376,954

2,008,486

2,130

2,010,616

Illinois

52,763,567

47,121

52,810,688

8,337,841

44,425,726

47,121

44,472,847

Indiana

17,062,801

14,228

17,077,029

2,696,310

14,366,491

14,228

14,380,719

Iowa

4,004,176

3,576

4,007,752

632,751

3,371,425

3,576

3,375,001

Kansas

4,609,831

3,783

4,613,614

728,458

3,881,373

3,783

3,885,156

Kentucky

14,673,688

(805,082)

13,868,606

2,318,776

12,354,912

(805,082)

11,549,830

Louisiana

12,042,192

7,445

12,049,637

1,902,940

10,139,252

7,445

10,146,697

Maine

3,249,844

2,902

3,252,746

513,549

2,736,295

2,902

2,739,197

Maryland

18,580,386

14,178

18,594,564

2,936,123

15,644,263

14,178

15,658,441

Massachusetts

19,237,457

17,180

19,254,637

3,039,955

16,197,502

17,180

16,214,682

Michigan

36,259,049

32,382

36,291,431

5,729,753

30,529,296

32,382

30,561,678

Minnesota

7,537,884

6,732

7,544,616

1,191,157

6,346,727

6,732

6,353,459

Mississippi

11,826,808

8,925

11,835,733

1,868,904

9,957,904

8,925

9,966,829

Missouri

17,142,075

14,927

17,157,002

2,708,837

14,433,238

14,927

14,448,165

Montana

1,537,406

1,373

1,538,779

242,945

1,294,461

1,373

1,295,834

Nebraska

1,824,043

1,629

1,825,672

288,240

1,535,803

1,629

1,537,432

Nevada

14,417,704

10,723

14,428,427

2,278,325

12,139,379

10,723

12,150,102

New Hampshire

2,130,457

1,903

2,132,360

336,661

1,793,796

1,903

1,795,699

New Jersey

38,809,709

27,443

38,837,152

6,132,815

32,676,894

27,443

32,704,337

New Mexico *

7,937,300

5,406

7,942,706

1,254,274

6,683,026

5,406

6,688,432

New York

62,428,888

55,753

62,484,641

9,865,182

52,563,706

55,753

52,619,459

North Carolina

31,022,721

25,609

31,048,330

4,902,294

26,120,427

25,609

26,146,036

North Dakota

728,444

457

728,901

115,111

613,333

457

613,790

Ohio

30,539,787

27,274

30,567,061

4,825,980

25,713,807

27,274

25,741,081

Oklahoma

5,376,760

4,802

5,381,562

849,650

4,527,110

4,802

4,531,912

Oregon

14,140,167

11,046

14,151,213

2,234,467

11,905,700

11,046

11,916,746

Pennsylvania

36,591,154

30,042

36,621,196

5,782,233

30,808,921

30,042

30,838,963

Puerto Rico

25,824,090

16,447

25,840,537

4,080,792

21,743,298

16,447

21,759,745

Rhode Island

5,005,633

4,470

5,010,103

791,004

4,214,629

4,470

4,219,099

South Carolina

16,310,315

10,084

16,320,399

2,577,400

13,732,915

10,084

13,742,999

South Dakota

1,070,734

692

1,071,426

169,200

901,534

692

902,226

Tennessee

23,146,617

17,376

23,163,993

3,657,691

19,488,926

17,376

19,506,302

Texas

50,297,194

44,919

50,342,113

7,948,098

42,349,096

44,919

42,394,015

Utah *

3,143,067

2,394

3,145,461

496,676

2,646,391

2,394

2,648,785

Vermont

890,075

652

890,727

140,652

749,423

652

750,075

Virginia

16,945,520

14,288

16,959,808

2,677,777

14,267,743

14,288

14,282,031

Washington

22,462,284

15,782

22,478,066

3,549,551

18,912,733

15,782

18,928,515

West Virginia

6,291,269

3,890

6,295,159

994,163

5,297,106

3,890

5,300,996

Wisconsin

14,260,128

12,735

14,272,863

2,253,424

12,006,704

12,735

12,019,439

Wyoming

740,333

588

740,921

116,989

623,344

588

623,932

State Total

1,017,955,000

160,860,000

857,095,000

* Includes funds allocated to the Navajo Nation.

III. Attachment C

Dislocated Worker (DW) State Formula PY 2016 Reallotment Methodology

Reallotment Summary:

This year the Employment and Training Administration (ETA) analyzed Dislocated Worker ETA 9130 financial reports from the June 30, 2016 reporting period for funds provided to states in PY 2015, to determine if any state had unobligated funds in excess of 20 percent of their PY 2015 allotment amount. If so, ETA will recapture that amount from PY 2016 funds and reallot the recaptured funds among eligible states.

•

Source Data:

ETA 9130 financial reports.

•

Programs:

State Dislocated Worker, Statewide Rapid Response, Local Dislocated Worker.

•

Period:

June 30, 2016.

•

Years covered:

PY 2015 and FY 2016.

Reallotment Calculation Process

Determine each state's unobligated balance:

ETA computes the state's total amount of PY 2015 state obligations (including FY 2016 funds) for the DW program. State obligations are the sum of DW statewide activities obligations, Statewide Rapid Response obligations, and 100 percent of what the state authorizes for DW local activities (which includes program and administrative funds). To determine the

unobligated balance for the DW program, ETA subtracts the total DW obligations amount from the state's total PY 2015 DW allotment (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 683.135 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 the ETA 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). ETA treats 100 percent of the state's estimated amount authorized for administration 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 2015 and FY 2016 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, 2016. If a state provides actual state DW administrative costs, authorized and obligated, in the comments section of revised ETA 9130 reports, this data replaces the estimates. Based on the requested 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 actually obligated for state administration.

Recapture calculation:

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

unobligated balances

exceeding 20 percent of the total PY 2015 DW allotment amount (including PY 2015 “base” funds and FY 2016 “advance” funds) will have their PY 2016 DW funding (from the FY 2017 “advance” 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 2015 (including their PY 2015 “base” and FY 2016 “advance” amount DW allotments) in their PY 2016 DW funding (in the FY 2017 “advance” portion).

Signed at Washington, DC, this March 15, 2017.

Byron Zuidema,

Deputy Assistant Secretary for the Employment and Training Administration.

[FR Doc. 2017-06779 Filed 4-4-17; 8:45 am]

BILLING CODE 4510-30-P

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