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

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URL: https://www.frixlaw.com/law-library/documents/fr%3A2017-06779

## Record

- **Collection:** Federal Register
- **Document type:** Notice
- **Published:** April 5, 2017
- **Citation:** 82 FR 16624

## Text

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
1

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
$0
$15,012,219
$12,128
$16,427,975
$12,128
$16,440,103

Alaska
0
2,184,119
1,765
2,854,009
1,765
2,855,774

Arizona **
0
22,511,715
18,187
25,029,051
18,187
25,047,238

Arkansas
0
8,052,059
6,505
7,757,044
6,505
7,763,549

California
0
164,063,131
132,548
169,644,376
132,548
169,776,924

Colorado
0
13,622,336
11,006
12,323,381
11,006
12,334,387

Connecticut
0
13,612,474
10,998
14,353,697
10,998
14,364,695

Delaware
0
2,596,904
2,098
2,349,277
2,098
2,351,375

District of Columbia
0
3,443,627
2,782
4,499,821
2,782
4,502,603

Florida
0
61,786,732
49,918
65,053,785
49,918
65,103,703

Georgia
0
39,981,701
32,301
40,521,426
32,301
40,553,727

Hawaii
0
1,931,277
1,560
1,894,161
1,560
1,895,721

Idaho
0
2,636,879
2,130
2,385,440
2,130
2,387,570

Illinois
0
58,325,151
47,121
52,763,567
47,121
52,810,688

Indiana
0
17,611,408
14,228
17,062,801
14,228
17,077,029

Iowa
0
4,426,239
3,576
4,004,176
3,576
4,007,752

Kansas
0
4,682,959
3,783
4,609,831
3,783
4,613,614

Kentucky
805,082
0
0
14,673,688
(805,082)
13,868,606

Louisiana
0
9,215,660
7,445
12,042,192
7,445
12,049,637

Maine
0
3,592,396
2,902
3,249,844
2,902
3,252,746

Maryland
0
17,549,612
14,178
18,580,386
14,178
18,594,564

Massachusetts
0
21,265,196
17,180
19,237,457
17,180
19,254,637

Michigan
0
40,080,962
32,382
36,259,049
32,382
36,291,431

Minnesota
0
8,332,420
6,732
7,537,884
6,732
7,544,616

Mississippi
0
11,047,184
8,925
11,826,808
8,925
11,835,733

Missouri
0
18,476,297
14,927
17,142,075
14,927
17,157,002

Montana
0
1,699,458
1,373
1,537,406
1,373
1,538,779

Nebraska
0
2,016,308
1,629
1,824,043
1,629
1,825,672

Nevada
0
13,272,377
10,723
14,417,704
10,723
14,428,427

New Hampshire
0
2,355,019
1,903
2,130,457
1,903
2,132,360

New Jersey
0
33,968,534
27,443
38,809,709
27,443
38,837,152

New Mexico **
0
6,691,816
5,406
7,937,300
5,406
7,942,706

New York
0
69,009,253
55,753
62,428,888
55,753
62,484,641

North Carolina
0
31,698,026
25,609
31,022,721
25,609
31,048,330

North Dakota
0
566,170
457
728,444
457
728,901

Ohio
0
33,758,857
27,274
30,539,787
27,274
30,567,061

Oklahoma
0
5,943,501
4,802
5,376,760
4,802
5,381,562

Oregon
0
13,672,401
11,046
14,140,167
11,046
14,151,213

Pennsylvania
0
37,184,902
30,042
36,591,154
30,042
36,621,196

Puerto Rico
0
20,357,210
16,447
25,824,090
16,447
25,840,537

Rhode Island
0
5,533,256
4,470
5,005,633
4,470
5,010,103

South Carolina
0
12,481,973
10,084
16,310,315
10,084
16,320,399

South Dakota
0
856,158
692
1,070,734
692
1,071,426

Tennessee
0
21,507,643
17,376
23,146,617
17,376
23,163,993

Texas
0
55,598,809
44,919
50,297,194
44,919
50,342,113

Utah **
0
2,963,244
2,394
3,143,067
2,394
3,145,461

Vermont
0
806,732
652
890,075
652
890,727

Virginia
0
17,685,631
14,288
16,945,520
14,288
16,959,808

Washington
0
19,533,856
15,782
22,462,284
15,782
22,478,066

West Virginia
0
4,814,588
3,890
6,291,269
3,890
6,295,159

Wisconsin
0
15,763,228
12,735
14,260,128
12,735
14,272,863

Wyoming
0
728,014
588
740,333
588
740,921

State total
805,082
996,507,621
805,082
1,017,955,000
0
1,017,955,000

** Includes Navajo Nation.

1
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

2,595,993
13,831,982
12,128
13,844,110

Alaska
2,854,009
1,765
2,855,774
450,998

450,998
2,403,011
1,765
2,404,776

Arizona *
25,029,051
18,187
25,047,238
3,955,158

3,955,158
21,073,893
18,187
21,092,080

Arkansas
7,757,044
6,505
7,763,549
1,225,789

1,225,789
6,531,255
6,505
6,537,760

California
169,644,376
132,548
169,776,924
26,807,663

26,807,663
142,836,713
132,548
142,969,261

Colorado
12,323,381
11,006
12,334,387
1,947,374

1,947,374
10,376,007
11,006
10,387,013

Connecticut
14,353,697
10,998
14,364,695
2,268,210

2,268,210
12,085,487
10,998
12,096,485

Delaware
2,349,277
2,098
2,351,375
371,239

371,239
1,978,038
2,098
1,980,136

District of Columbia
4,499,821
2,782
4,502,603
711,074

711,074
3,788,747
2,782
3,791,529

Florida
65,053,785
49,918
65,103,703
10,279,975

10,279,975
54,773,810
49,918
54,823,728

Georgia
40,521,426
32,301
40,553,727
6,403,305

6,403,305
34,118,121
32,301
34,150,422

Hawaii
1,894,161
1,560
1,895,721
299,320

299,320
1,594,841
1,560
1,596,401

Idaho
2,385,440
2,130
2,387,570
376,954

376,954
2,008,486
2,130
2,010,616

Illinois
52,763,567
47,121
52,810,688
8,337,841

8,337,841
44,425,726
47,121
44,472,847

Indiana
17,062,801
14,228
17,077,029
2,696,310

2,696,310
14,366,491
14,228
14,380,719

Iowa
4,004,176
3,576
4,007,752
632,751

632,751
3,371,425
3,576
3,375,001

Kansas
4,609,831
3,783
4,613,614
728,458

728,458
3,881,373
3,783
3,885,156

Kentucky
14,673,688
(805,082)
13,868,606
2,318,776

2,318,776
12,354,912
(805,082)
11,549,830

Louisiana
12,042,192
7,445
12,049,637
1,902,940

1,902,940
10,139,252
7,445
10,146,697

Maine
3,249,844
2,902
3,252,746
513,549

513,549
2,736,295
2,902
2,739,197

Maryland
18,580,386
14,178
18,594,564
2,936,123

2,936,123
15,644,263
14,178
15,658,441

Massachusetts
19,237,457
17,180
19,254,637
3,039,955

3,039,955
16,197,502
17,180
16,214,682

Michigan
36,259,049
32,382
36,291,431
5,729,753

5,729,753
30,529,296
32,382
30,561,678

Minnesota
7,537,884
6,732
7,544,616
1,191,157

1,191,157
6,346,727
6,732
6,353,459

Mississippi
11,826,808
8,925
11,835,733
1,868,904

1,868,904
9,957,904
8,925
9,966,829

Missouri
17,142,075
14,927
17,157,002
2,708,837

2,708,837
14,433,238
14,927
14,448,165

Montana
1,537,406
1,373
1,538,779
242,945

242,945
1,294,461
1,373
1,295,834

Nebraska
1,824,043
1,629
1,825,672
288,240

288,240
1,535,803
1,629
1,537,432

Nevada
14,417,704
10,723
14,428,427
2,278,325

2,278,325
12,139,379
10,723
12,150,102

New Hampshire
2,130,457
1,903
2,132,360
336,661

336,661
1,793,796
1,903
1,795,699

New Jersey
38,809,709
27,443
38,837,152
6,132,815

6,132,815
32,676,894
27,443
32,704,337

New Mexico *
7,937,300
5,406
7,942,706
1,254,274

1,254,274
6,683,026
5,406
6,688,432

New York
62,428,888
55,753
62,484,641
9,865,182

9,865,182
52,563,706
55,753
52,619,459

North Carolina
31,022,721
25,609
31,048,330
4,902,294

4,902,294
26,120,427
25,609
26,146,036

North Dakota
728,444
457
728,901
115,111

115,111
613,333
457
613,790

Ohio
30,539,787
27,274
30,567,061
4,825,980

4,825,980
25,713,807
27,274
25,741,081

Oklahoma
5,376,760
4,802
5,381,562
849,650

849,650
4,527,110
4,802
4,531,912

Oregon
14,140,167
11,046
14,151,213
2,234,467

2,234,467
11,905,700
11,046
11,916,746

Pennsylvania
36,591,154
30,042
36,621,196
5,782,233

5,782,233
30,808,921
30,042
30,838,963

Puerto Rico
25,824,090
16,447
25,840,537
4,080,792

4,080,792
21,743,298
16,447
21,759,745

Rhode Island
5,005,633
4,470
5,010,103
791,004

791,004
4,214,629
4,470
4,219,099

South Carolina
16,310,315
10,084
16,320,399
2,577,400

2,577,400
13,732,915
10,084
13,742,999

South Dakota
1,070,734
692
1,071,426
169,200

169,200
901,534
692
902,226

Tennessee
23,146,617
17,376
23,163,993
3,657,691

3,657,691
19,488,926
17,376
19,506,302

Texas
50,297,194
44,919
50,342,113
7,948,098

7,948,098
42,349,096
44,919
42,394,015

Utah *
3,143,067
2,394
3,145,461
496,676

496,676
2,646,391
2,394
2,648,785

Vermont
890,075
652
890,727
140,652

140,652
749,423
652
750,075

Virginia
16,945,520
14,288
16,959,808
2,677,777

2,677,777
14,267,743
14,288
14,282,031

Washington
22,462,284
15,782
22,478,066
3,549,551

3,549,551
18,912,733
15,782
18,928,515

West Virginia
6,291,269
3,890
6,295,159
994,163

994,163
5,297,106
3,890
5,300,996

Wisconsin
14,260,128
12,735
14,272,863
2,253,424

2,253,424
12,006,704
12,735
12,019,439

Wyoming
740,333
588
740,921
116,989

116,989
623,344
588
623,932

State Total
1,017,955,000

1,017,955,000
160,860,000

160,860,000
857,095,000

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

1.
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).

2.
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.

3.
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.

4.
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.

5.
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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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A2017-06779. Public record. Not legal advice.