Program Year (PY) 2016 Workforce Innovation and Opportunity Act (WIOA) Allotments; PY 2016 Wagner-Peyser Act Final Allotments and PY 2016 Workforce Information Grants

AGENCY:

Employment and Training Administration, Labor.

ACTION:

Notice.

SUMMARY:

This notice announces allotments for PY 2016 for WIOA Title I Youth, Adults and Dislocated Worker Activities programs; final allotments for Employment Service (ES) activities under the Wagner-Peyser Act for PY 2016 and Workforce Information Grants allotments for PY 2016.

WIOA allotments for States and the State final allotments for the Wagner-Peyser Act are based on formulas defined in their respective statutes. WIOA requires allotments for the outlying areas to be competitively based rather than based on a formula determined by the Secretary of Labor (Secretary) as occurred under the Workforce Investment Act (WIA). For PY 2016, the Consolidated Appropriations Act, 2016 waives the competition requirement, and the Secretary is using the discretionary formula rationale and methodology for allocating PY 2016 funds for the outlying areas (American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the Republic of Palau, and the United States Virgin Islands) that was published in the Federal Register at 65 FR 8236 (Feb. 17, 2000). WIOA specifically included the Republic of Palau as an outlying area, except during any period for which the Secretary of Labor and the Secretary of Education determine that a Compact of Free Association is in effect and contains provisions for training and education assistance prohibiting the assistance provided under WIOA; no such determinations prohibiting assistance have been made. The formula that the Department of Labor (Department) used for PY 2016 is the same formula used in PY 2015 and is described in the section on Youth Activities program allotments. Comments are invited on the formula used to allot funds to the outlying areas.

DATES:

Comments on the formula used to allot funds to the outlying areas must be received by May 18, 2016.

ADDRESSES:

Submit written comments to the Employment and Training Administration (ETA), Office of Financial Administration, 200 Constitution Avenue NW., Room N-4702, Washington, DC 20210, Attention: Ms. Anita Harvey, email: harvey.anita@dol.gov.

Commenters are advised that mail delivery in the Washington area may be delayed due to security concerns. Hand-delivered comments will be received at the above address. All overnight mail will be considered to be hand-delivered and must be received at the designated place by the date specified above.

Please submit your comments by only one method. The Department will not review comments received by means other than those listed above or that are received after the comment period has closed.

Comments: The Department will retain all comments on this notice and will release them upon request via email to any member of the public. The Department also will make all the comments it receives available for public inspection by appointment during normal business hours at the above address. If you need assistance to review the comments, the Department will provide you with appropriate aids such as readers or print magnifiers. The Department will make copies of this notice available, upon request, in large print, Braille and electronic file. The Department also will consider providing the notice in other formats upon request. To schedule an appointment to review the comments and/or obtain the notice in an alternative format, contact Ms. Harvey using the information provided above. The Department will retain all comments received without making any changes to the comments, including any personal information provided. The Department therefore cautions commenters not to include their personal information such as Social Security Numbers, personal addresses, telephone numbers, and email addresses in their comments; this information would be released with the comment if the comments are requested. It is the commenter's responsibility to safeguard his or her information.

FOR FURTHER INFORMATION CONTACT:

WIOA Youth Activities allotments—Evan Rosenberg at (202) 693-3593 or LaSharn Youngblood at (202) 693-3606; WIOA Adult and Dislocated Worker Activities and ES final allotments—Robert Kight at (202) 693-3937; Workforce Information Grant allotments—Donald Haughton at (202) 693-2784. Individuals with hearing or speech impairments may access the telephone numbers above via TTY by calling the toll-free Federal Information Relay Service at 1-877-889-5627 (TTY/TDD).

SUPPLEMENTARY INFORMATION:

The Department is announcing WIOA allotments for PY 2016 for Youth Activities, Adults and Dislocated Worker Activities, Wagner-Peyser Act PY 2016 final allotments, and PY 2016 Workforce Information Grant allotments. This notice provides information on the amount of funds available during PY 2016 to States with an approved WIOA Title I and Wagner-Peyser Act Strategic Plan for PY 2016, and information regarding allotments to the outlying areas.

On December 18, 2015, the Consolidated Appropriations Act, 2016, Public Law 114-113 was signed into law (“the Act”). The Act, Division H, Title I, Section 107 of the Act allows the Secretary of Labor (Secretary) to set aside up to 0.75 percent of most operating funds for evaluations. The evaluation provision is consistent with the Federal government's priority on evidence-based policy and programming and provides important opportunities to expand evaluations and demonstrations in the Department to build solid evidence about what works best. In the past, funds for ETA evaluations and demonstrations were separately appropriated and managed by ETA. That separate authority has been replaced by the set aside provision. Funds are transferred to the Department's Chief Evaluation Office to implement formal evaluations and demonstrations in collaboration with ETA. For 2016, the Secretary set aside .25 percent of the Training and Employment Services (TES) and State Unemployment Insurance and Employment Services Operations (SUIESO) appropriations. ETA spread the amount to be set aside for each appropriation among the programs funded by that appropriation with more than $100 million in funding. This includes WIOA Adult, Youth and Dislocated Worker and Wagner-Peyser Employment Service program budgets.

We also have attached tables listing the PY 2016 allotments for programs under WIOA Title I Youth Activities (Table A), Adult and Dislocated Workers Employment and Training Activities (Tables B and C, respectively), and the PY 2016 Wagner-Peyser Act final allotments (Table D). We also have attached the PY 2016 Workforce Information Grant table (Table E).

Youth Activities Allotments. The appropriated level for PY 2016 for WIOA Youth Activities totals $873,416,000. After reducing the appropriation by $2,485,000 for evaluations, $870,931,000 is available for Youth Activities. Table A includes a breakdown of the Youth Activities program allotments for PY 2016 and provides a comparison of these allotments to PY 2015 Youth Activities allotments for all States, and outlying areas. For the Native American Youth program, the total amount available is 1.5 percent of the total amount for Youth Activities (after the evaluations set aside), in accordance with WIOA section 127. The total funding available for the outlying areas was reserved at 0.25 percent of the amount appropriated for Youth Activities (after the evaluations set aside) after the amount reserved for Native American Youth (in accordance with WIOA section 127(b)(1)(B)(i)). On December 17, 2003, Pub. L. 108-188, the Compact of Free Association Amendments Act of 2003 (“the Compact”), was signed into law. The Compact specified that the Republic of Palau remained eligible for WIA Title I funding. See 48 U.S.C. 1921d(f)(1)(B)(ix). WIOA section 512(g)(1) updated the Compact to refer to WIOA funding. The Consolidated Appropriations Act, 2016 (Division H, Title II, Section 306 of Public Law 114-113) authorized WIOA Title I funding to Palau through FY 2016.

Under WIA, the Secretary had discretion for determining the methodology for distributing funds to all outlying areas. Under WIOA the Secretary must disseminate the funds through a competitive process. For PY 2016, the Consolidated Appropriations Act, 2016 waives the competition requirement contained in WIOA section 127(b)(1)(B)(ii), 132(b)(1)(A)(ii), and 132(b)(2)(A)(ii) regarding funding to outlying areas (e.g., American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the Republic of Palau, and the United States Virgin Islands). For PY 2016, the Department used the same methodology used since PY 2000 (i.e., we distribute funds among the outlying areas by formula based on relative share of the number of unemployed, a minimum of 90 percent of the prior year allotment percentage, a $75,000 minimum, and a 130 percent stop-gain of the prior year share). For the relative share calculation in PY 2016, the Department continued to use the data obtained from the 2010 Census for American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the United States Virgin Islands. For the Republic of Palau, the Department continued to use data from Palau's 2005 Census.

After the Department calculated the amount for the outlying areas and the Native American program, it was determined that the amount available for PY 2016 allotments to the States is $855,722,367. This total amount was below the required $1 billion threshold specified in WIOA section 127(b)(1)(C)(iv)(IV); therefore, the Department did not apply the WIOA additional minimum provisions. Instead, as required by WIOA, the Department used the Job Training Partnership Act (JTPA) (Pub. L. 97-300), section 262(b)(2) (as amended by section 207 of the Job Training Reform Amendments of 1992, Pub. L. 102-367) minimums of 90 percent of the prior year allotment percentage and 0.25 percent State minimum floor. WIOA also provides that no State may receive an allotment that is more than 130 percent of the allotment percentage for the State for the previous year. The three data factors required by WIOA for the PY 2016 Youth Activities State formula allotments are:

(1) The average number of unemployed individuals for Areas of Substantial Unemployment (ASUs) for the 12-month period, July 2014-June 2015;

(2) Number of excess unemployed individuals or the ASU excess (depending on which is higher) averages for the same 12-month period used for ASU unemployed data; and

(3) Number of economically disadvantaged Youth (age 16 to 21, excluding college students in the workforce and military) from special tabulations of data from the American Community Survey (ACS), which the Department obtained from the Bureau in 2012. The Bureau collected the data used in the special tabulations for economically disadvantaged Youth between January 1, 2006-December 31, 2010.

For purposes of identifying ASUs for the within-state Youth Activities allocation formula, States should continue to use the data made available by BLS (as described in the Local Area Unemployment Statistics (LAUS) Technical Memorandum No. S-15-13). For purposes of determining the number of economically disadvantaged Youth for the statutory within-state allocation formula, States should continue to use the special tabulations of ACS data made available to them in 2013 and available at http://www.doleta.gov/budget/disadvantagedYouthAdults.cfm .

See TEGL No. 21-12 for further information.

Adult Employment and Training Activities Allotments. The total appropriated funds for Adult Activities in PY 2016 is $815,556,000. After reducing the appropriated amount by $2,321,000 for evaluations, $813,235,000 remains for Adult Activities, of which $811,201,912 is for States and $2,033,088 is for outlying areas. Table B shows the PY 2016 Adult Employment and Training Activities allotments and a State by State comparison of the PY 2016 allotments to PY 2015 allotments.

In accordance with WIOA, the Department reserved the total available for the outlying areas at 0.25 percent of the full amount appropriated for Adult Activities (after the evaluations set aside). As discussed in the Youth Activities section above, in PY 2016 the Department will distribute the Adult Activities funding for the outlying areas, using the same principles, formula and data as used for outlying areas for Youth Activities. After determining the amount for the outlying areas, the Department used the statutory formula to distribute the remaining amount available for allotments to the States. The Department did not apply the WIOA minimum provisions for the PY 2016 allotments because the total amount available for the States was below the $960 million threshold required for Adult Activities in WIOA section 132(b)(1)(B)(iv)(IV). Instead, as required by WIOA, the Department calculated minimum allotments using the JTPA section 202(b)(2) (as amended by section 202 of the Job Training Reform Amendments of 1992) minimums of 90 percent of the prior year allotment percentage and 0.25 percent State minimum floor. WIOA also provides that no State may receive an allotment that is more than 130 percent of the allotment percentage for the State for the previous year. The three formula data factors for the Adult Activities program are the same as those used for the Youth Activities formula, except the Department used data for the number of economically disadvantaged Adults (age 18 to 72, excluding college students in the workforce and military).

As noted above, updated data for within-state ASU calculations is available from the Bureau of Labor Statistics (BLS), and States should continue to use the economically disadvantaged Adults data made available to States by the Department in 2013.

Dislocated Worker Employment and Training Activities Allotments. The amount appropriated for Dislocated Worker activities in PY 2016 totals $1,241,719,000. The total appropriation includes formula funds for the States, while the National Reserve is used for National Dislocated Worker Grants, technical assistance and training, demonstration projects, and the outlying areas' Dislocated Worker allotments. After reducing the appropriated amount by $3,533,000 for evaluations, a total of $1,238,186,000 remains available for Dislocated Worker activities. The amount available for outlying areas is $3,095,465, leaving $217,135,535 for the National Reserve and a total of $1,017,955,000 available for States. Like the Adult program, Table C shows the PY 2016 Dislocated Worker activities allotments and a State by State comparison of the PY 2016 allotments to PY 2015 allotments.

Like the Adult Activities program, the Department reserved the total available for the outlying areas at 0.25 percent of the full amount appropriated for Dislocated Worker Activities (after the evaluations set aside). Similar to Youth and Adult funds, instead of competition, in PY 2016 the Department will use the same pro rata share as the areas received for the PY 2016 WIOA Adult Activities program to distribute the outlying areas' Dislocated Worker funds, the same methodology used in PY 2015. The three data factors required in WIOA for the PY 2016 Dislocated Worker State formula allotments are:

(1) Number of unemployed, averages for the 12-month period, October 2014-September 2015;

(2) Number of excess unemployed, averages for the 12-month period, October 2014-September 2015; and

(3) Number of long-term unemployed, averages for the 12-month period, October 2014-September 2015.

In PY 2016, under WIOA the Dislocated Worker formula adopted minimum and maximum provisions. No State may receive an allotment that is less than 90 percent of the State's prior year allotment percentage or more than 130 percent of the State's prior year allotment percentage.

Wagner-Peyser Act ES Final Allotments. The appropriated level for PY 2016 for ES grants totals $680,000,000. After reducing the appropriated amount by $1,845,000 for evaluations, a total of $678,155,000 remains available for ES programs. After determining the funding for outlying areas, the Department calculated allotments to States using the formula set forth at section 6 of the Wagner-Peyser Act (29 U.S.C. 49e). The Department based PY 2016 formula allotments on each State's share of calendar year 2015 monthly averages of the civilian labor force (CLF) and unemployment. Section 6(b)(4) of the Wagner-Peyser Act requires the Secretary to set aside up to three percent of the total funds available for ES to ensure that each State will have sufficient resources to maintain statewide ES activities. In accordance with this provision, the Department included the three percent set-aside funds in this total allotment. The Department distributed the set-aside funds in two steps to States that have experienced a reduction in their relative share of the total resources available this year from their relative share of the total resources available the previous year. In Step 1, States that have a CLF below one million and are also below the median CLF density were maintained at 100 percent of their relative share of prior year resources. ETA calculated the median CLF density based on CLF data provided by the BLS for calendar year 2015. All remaining set-aside funds were distributed on a pro-rata basis in Step 2 to all other States experiencing reductions in relative share from the prior year but not meeting the size and density criteria for Step 1. The distribution of ES funds (Table D) includes $676,501,894 for States, as well as $1,653,106 for outlying areas.

Under section 7(a), 90 percent of funds must be used for labor exchange services and other career services such as job search and placement services to job seekers; appropriate recruitment services for employers; program evaluations; developing and providing labor market and occupational information; developing management information systems; and administering the work test for unemployment insurance claimants. Under section 7(b) of the Wagner-Peyser Act, ten percent of the total sums allotted to each State shall be reserved for use by the Governor to provide performance incentives for ES offices, services for groups with special needs, and for the extra costs of exemplary models for delivering job services.

Workforce Information Grants Allotments. Total PY 2016 funding for Workforce Information Grants allotments to States is $32,000,000. The allotment figures for each State are listed in Table E. Funds are distributed by administrative formula, with a reserve of $176,800 for Guam and the United States Virgin Islands. Guam and the United States Virgin Islands allotment amounts are partially based on CLF data. The Department distributes the remaining funds to the States with 40 percent distributed equally to all States and 60 percent distributed based on each State's share of CLF for the 12 months ending September 2015.