1.0 Purpose. 3.0 Background
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1 Policy Number OWD 4-1 Originating Department Office of Workforce Development Owner Kelly Ebey Approver Bryan Moore 1.0 Purpose Louisiana Workforce Commission Title Workforce Investment Act (WIA) Allocations Adult, Dislocated Worker, Youth, Including Funds Transfer Revision(s) n/a Signature Signature Original Effective Date July 1, This policy contains general guidance on Workforce Investment Act (WIA) Title 1 allocations for Youth, Adult and Dislocated Worker (DW). 2.0 References 2.1 Workforce Investment Act of 1998, (29 United States Code (U.S.C.) 2801 et, seq), Public Law , as amended WIA section 133 (b)(2) describes the methods in which the Governor, acting in accordance with the State Plan, and after consulting with Chief elected officials in local areas, shall allocate funds. 2.2 WIA Final Rule, 20 Code of Federal Regulations parts Background 3.1 Each program year, the US Department of Labor Employment and Training Administration Training issues an Employment Guidance Letter (TEGL) that provides States with the allotments for WIA title 1 Youth, Adult and DW funds. Subsequent to the issuance of such TEGLs, the State will distribute local workforce area funds according to the formulas contained in attachments A, B and C of this policy. Per WIA section 182(e), funds shall be made available under WIA section 133 for a local area not later than 30 days after the date the funds are made available to the Governor. Allocations Adult, Dislocated Worker, Youth, Including Funds Transfer
2 3.2 Adult and Youth allocations shall reflect the hold harmless adjustments in accordance with WIA sections 128 (2)(b)(A)(ii) and 133 (b)(2)(a) (ii). The hold harmless adjustments are applied to ensure that no LWIA receives an allocation percentage for a fiscal year that is less than 90 percent of the average allocation percentage of the local area for the two preceding fiscal years. 3.3 This policy supersedes policies: LWIA 2-10 Transfer of Adults and Dislocated Worker Funds for PY 09 Waiver and LWIA 5-05 What hold harmless provisions apply to WIA adult and youth allocations? 4.0 Substance 4.1 Allotments Notwithstanding section WIA section 128 (a)(1), the amount available for the Governor for statewide workforce investment activities shall not exceed 5 percent of the amount allotted to the State from each of the WIA Youth, Adult and Dislocated worker appropriations. The five percent Governor's reserve was reduced from 15 percent effective with PY 11 advance and base funds as clarified in TEGL 9-11 Allotments for each PY/FY will be issued as a separate policy and will be made available for planning and obligational purposes Statewide employment and training activities: Rapid Response Activities the State shall use funds reserved from the Dislocated Worker allocation to carry out statewide rapid response activities, which shall include the provision of rapid response activities and the provision of additional assistance to local area that experience disasters, mass layoffs of plant closings, or other events that precipitate substantial increases in the number of unemployed individuals in a local workforce area/region. The governor of the State shall reserve not more than 25 percent of the total amount allotted to the state under section 132(b)(2)(B) Dislocated Worker funds- for a fiscal year for statewide rapid response activities. The remainder of the DW funds will be distributed according to formula in Attachment C. There are no hold harmless provisions that apply to local area allocations of WIA dislocated worker funds Administrative cost limits Local area expenditures for administrative purposes under WIA formula grants are limited to no more than 10 percent of the amount allocated to the local area. Allocations Adult, Dislocated Worker, Youth, Including Funds Transfer 2 of 9
3 4.2 Transfer of Funds In accordance with WIA section 133 (b)(4) a local board may transfer, if such transfer is approved by the Governor, not more than 20 percent of the funds allocated to the local area for a fiscal year between adult employment and training activities and dislocated worker employment and training activities. The Department of Labor Appropriations Act, 2012, provided that notwithstanding section 133 (b) (4), up to 30 percent of these funds (Adult and DW) could be transferred between programs, which are applicable for the life of the funds. The state has been granted a waiver effective PY 2009 and subsequent years and will remain into effect until denial of the waiver request allowing a maximum of 50 percent transfer in a fiscal year. Transfer of funds are only applicable to Adult and Dislocated Worker funds. Funds that are reallocated by the State are not eligible for transfer Local Workforce Investment Boards (LWIBs) must submit a singed letter of request to: Louisiana Workforce Commission 1001 North 23 rd Street Baton Rouge, Louisiana Attention Director, Office of Workforce Development And ed to the following LWC administrative staff: Director of Workforce Development, Bryan Moore at bmoore1@lwc.la.gov And a carbon copy (cc:) to Inett Tillman at itillman@lwc.la.gov The request will be reviewed by the Director for approval. Notification of approval or denial of the transfer request will be issued within 5 business days of the date of the request. Additional information from the LWIB may be requested, as necessary. 4.4 Definitions: Advance funds are funds that become available in October 1, of each fiscal year. Allocations Adult, Dislocated Worker, Youth, Including Funds Transfer 3 of 9
4 Base funds are funds that become available on July 1, of each program year. Governor in the context of this policy is the Louisiana Workforce Commission. 5.0 Action 5.1. Funds for Youth Activities will be available beginning April 1 of each program year, and the base funds for Adult and Dislocated Worker will be available on July 1 of each program year Expenditures may not be incurred until receipt of an approved letter of credit. The State is responsible for ensuring that appropriate guidance/policy is provided to the Business and Career Solutions Centers in their Local Workforce Investment Areas. 6.0 Inquiries Kelly Ebey, Deputy Director, or kebey@lwc.la.gov 7.0 Attachments Local Workforce Investment WIA Allocation Formulas Attachment A: WIA Youth Allocation Formula Attachment B: WIA Adult Allocation Formula Attachment C: WIA Dislocated Worker Allocation Formula Attachment D: WIA Adult and Dislocated Worker Funds Transfer Request Form Allocations Adult, Dislocated Worker, Youth, Including Funds Transfer 4 of 9
5 Attachment A: WIA Youth Allocation Formula Youth funds will be allocated to the local areas in accordance with the following formula, as specified in section l28 (b)(2)(a), to ensure that youth funds are distributed equitably throughout the state: 33 1/3 % on the basis of the relative number of unemployed individuals in areas of substantial unemployment in the local workforce investment area, compared to the total number of unemployed individuals in areas of substantial unemployment in the state; 33 1/3 % on the basis of the relative excess number of unemployed individuals in the local workforce investment area, compared to the total excess number of unemployed individuals in the state; and 33 1/3 % on the basis of the relative number of disadvantaged youth in the local workforce investment area, compared to the total number of disadvantaged youth in the state. Allocations Adult, Dislocated Worker, Youth, Including Funds Transfer 5 of 9
6 Attachment B: WIA Adult Allocation Formula Adult funds will be allocated to the local areas in accordance with the following formula, as specified in section 133(b)(2)(A), to ensure that adult funds are distributed equitably throughout the state: 33 1/3 percent on the basis of the relative number of unemployed individuals in areas of substantial unemployment in the local workforce investment area, compared to the total number of unemployed individuals in areas of substantial unemployment in all local workforce investment areas in the state; 33 1/3% on the basis of the relative excess number of unemployed individuals in the local workforce investment area, compared to the total excess number of unemployed individuals in all local workforce areas in the state; and 33 1/3% on the basis of the relative number of disadvantaged adults in the local workforce investment area, compared to the total number of disadvantaged adults in all local workforce investment areas in the state. Allocations Adult, Dislocated Worker, Youth, Including Funds Transfer 6 of 9
7 Attachment C: WIA Dislocated Worker Allocation Formula Dislocated Worker funds will be allocated to the local areas in accordance with the following formula, pursuant to section 133(b)(2)(B) of the WIA: Unemployment Concentration 25% The 12-month average for the most recently completed October-September fiscal year will be used showing the unrounded number of persons unemployed by parish within each LWIA. Insured Unemployed without earnings 20% The 12 month average for the most recently completed October-September fiscal year showing the number of continued claims filed without earnings for the reference week that includes the last day of each month. Data is also by parish within the LWIA. Exhaustees (Long-Term Unemployed) 25% This is long-term unemployment data that refers to claimants who received a final payment in unemployment benefits. Data is by parish and is an annual average for the most recently completed fiscal year. Permanent Mass Layoffs and Plant Closings (PMLPC) 10% Data used was taken from the total number of separated workers for all recordable layoffs by parish for the most recently completed October September fiscal year. A mass layoff is defined as one in which 50 or more unemployment insurance claimants filed for benefits against a certain company within a 3-week period and remained unemployed for 30 days or more. If there were no separations or PMLPC firms in a parish, zero was shown for that parish. Declining Industries 15% Since data on all parishes from the suggested CES Program do not exist, covered employment from the ES-202 Program was used to identify industries that showed a decline in employment for the four-year period ending in March of the prior fiscal year. Decreases in employment for all industries within a parish were totaled and that figure was used toward the allocation of funds for that parish and LWIA. Farmer/Rancher Economic Hardship 5% Numerical difference between the last two Census of Agriculture to determine decline in hiring farm workers. Allocations Adult, Dislocated Worker, Youth, Including Funds Transfer 7 of 9
8 Attachment D: Transfer of Adult and Dislocated Funds for PY/FY Date of Transfer Request: Local Workforce Investment Board #: Requested Transfer Effective Date: PY Funding Source Amount of Transfer % Transfer Requested Adult $ Dislocated Worker $ FY Funding Source Amount of Transfer % Transfer Requested Adult $ Dislocated Worker $ NOTE: Fiscal Year funds will not be available for transfer until October 1 of the funding year. Please place reductions in parentheses. Example: Express a $2,000 reduction as ($2,000). 1. Why is there a need to transfer funds? (Example: Economic conditions such as high/low unemployment, business closures, etc.) 2. How will the transfer of funds affect the participant levels in both the Adult and Dislocated Worker Programs? Provide an estimated number of Adult and Dislocated Workers expected to be served if the transfer is granted. 3. Explain the impact on jointly funded employment and training programs in the Local Service Delivery System. Allocations Adult, Dislocated Worker, Youth, Including Funds Transfer 8 of 9
9 ASSURANCES 1. The transfer of funds requested herein will not adversely impact the Local Area s capacity to adequately provide appropriate services to individuals in need of such services provided by the program subject to reduced funding; 2. The transfer of funds requested herein will not adversely impact the Local Area s ability to achieve those performance measures established for either Adult or Dislocated Workers in this, or subsequent years; and 3. The Local Area will expend/obligate, at a minimum, 80% of all funds budgeted to the funding source to which funds are transferred by the end of the program year. LWIB Director Signature Name (printed or typed) Date APPROVAL This request for transfer of funds is approved by the undersigned Louisiana Workforce Commission OWD Director: LWC OWD Director Signature Name (printed or typed) Date Allocations Adult, Dislocated Worker, Youth, Including Funds Transfer 9 of 9
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