TRAINING AND EMPLOYMENT GUIDANCE LETTER No. 5-92
JTPA Titles II- A, II-C, and III Allotments for Program Year (PY) 1993; Title II-B Allotments for Calendar Year (CY) 1993; and Wagner-Peyser Preliminary Planning Estimates for PY 1993
To provide States with Job Training Partnership Act (JTPA) Titles II-A, II-C, and III allotments for Program Year (PY) 1993; Title II-B allotments for Calendar Year (CY) 1993; and preliminary planning estimates for PY 1993 public employment service (ES) a
a. For JTPA Title II, technical questions may be addressed to Jess Aragon on 202-219-7979. Policy questions may be addressed to Rio Larisch on 202-219-5305. b. For JTPA Title III, technical questions may be addressed to Robert N. Colombo on 202-219-5577.
References: Wagner-Peyser Act, as amended (29 U.S.C. 49); 20 CFR 652 and 20 CFR 653; Job Training Partnership Act, Sections 202, 252, 262, 302, and 601, as amended by the Job Training Reform Amendments Act of 1992; Training and Employment Guidance Letter (TEGL) No. 4-88. Background: Title II-A was divided into two separate programs (II-A and II-C) under the JTPA Amendments of 1992. The revised Title II-A is the Adult Training Program, and the new Title II-C is the Youth Training Program. The JTPA Titles II-A, II-C and III allotments, and the Wagner-Peyser preliminary planning estimates, are for the program period July 1, 1993 through June 30, 1994. The Title II-B allotments are for the 1993 summer period ending September 30, 1993. These JTPA allotments and the Wagner-Peyser preliminary planning estimates will be published in the Federal Register. The allotments for Title II-B total $682,912,000, approximately the same as the previous year's level without the Emergency Supplemental appropriations. The Congress provided 1993 Summer Youth funds in two amounts totaling $682,912,000: $495,212,000 is from the PY 1992 appropriation and became available for obligation on July 1, 1992; and $187,700,000 was made available for obligation on October 1, 1993, thus it is a Fiscal Year 1993 appropriation. This requires that the funds be issued separately on the Notice of Obligation (NOO), and that States draw funds from the Payment Management System for each separate fund source. Separate financial reporting will not be required, however. The allotments for Titles II-A, II-C, and III, and the ES preliminary planning estimates, are part of the Fiscal Year 1993 funds appropriated by the Department of Labor Appropriations Act, 1993, P.L. 102-394, for PY 1993. These appropriations include $1,045,021,000 for Title II-A and $696,682,000 for Title II-C, a 1.79 percent reduction from the PY 1992 Title II-A level; $517,046,000 for Title III, a 1.9 percent reduction from PY 1992; and $810,960,000 for allotments to States under Wagner-Peyser, a 1.3 percent reduction from PY 1992. An additional $3,831,000 has been appropriated for Title II programs in rural concentrated employment programs (RCEPs). Distribution of funds for the RCEPs is discussed below under item 5. Attached for your information is a copy of the letter sent to each Governor (Attachment I) transmitting the allotments and planning estimates. JTPA/ES Joint planning and Coordination Provisions: Each State should develop plans in accordance with relevant statutory provisions and schedules issued by the Department. Particular attention should be given to the Governor's statement of goals and objectives for JTPA, and joint ES/JTPA planning initiatives (see Section 8(b) of the Wagner-Peyser Act, as amended). Employment Service plans should foster the delivery of quality services to job seekers and employers by providing: relevant labor market information to job seekers, employers, and other users in the local labor market; enhanced employability services, e.g., counseling, assessment, referral to training, and other needed services; and other appropriate services responsive to State economic needs and conditions. RCEP States: Additional funds are available to assure, to the maximum extent possible, that funding for RCEPs under Title II programs is maintained at prior year levels. The Department previously reserved $250,000 from PY 1992 RCEP funds to be used for this purpose in the CY 1993 summer program. The RCEP appropriation for PY 1993 is $3,831,000. Of this amount, $250,000 is being reserved for the CY 1994 summer program. Therefore, $3,581,000 will be available for PY 1993 Titles II-A and II-C programs. It will be necessary for the States of Kentucky, Minnesota, Montana, and Wisconsin to provide the Department with the amount of the Titles II-A, II-B, and II-C RCEP allocations based on the allotments contained in this Training and Employment Guidance Letter. This information should be sent no later than March 5, 1993, to the following address: Mr. Hugh Davies Acting Director Office of Employment and Training Programs 200 Constitution Avenue, N.W. Room N-4703 Washington, D.C. 20210 Notices of Obligation (NOO): NOOs for the 1993 Title II-B summer youth program, including the additional funds for RCEPs, will be issued in April. NOOs for the PY 1993 Titles II-A, II-C, and III programs will be issued for all funds on July 1, 1993. These NOOs will include the additional Titles II-A and II-C funds for the RCEPs. A second NOO will be issued to each State after November 1 for Title III, to increase or reduce the funds available to the State to reflect the amount of reallotted funds the State gains or loses, as discussed in TEGL No. 4-88. Title II-A Allotments: Attachment II shows the PY 1993 JTPA Title II-A allotments by State. For all States, Puerto Rico and the District of Columbia, the following data were used in computing the allotments: -- Data for Areas of Substantial Unemployment (AS Us) are averages for the 12-month period, July 1991 through June 1992. -- The number of excess unemployed individuals or the ASU excess (depending on which is higher) are averages for this same 12-month period. -- The economically disadvantaged adult data (age 2272, excluding college students and military) are from the 1990 Census. This data will be made available on diskette to the State JTPA Liaisons. The demographics will also be rolled up to the Service Delivery Area (SDA) level. The allotments for the Insular Areas, including the Freely Associated States, are based on unemployment data from the 1990 census, or if not available, the most recent data available. A 90-percent relative share "hold-harmless" of the Title II-A PY 1992 allotments for these areas and a minimum allotment of $75,000 were also applied in determining the allotments. This minimum amount equals 60 percent of the old Title II-A minimum allotment since the JTPA Amendments of 1992 divided Title II-A into Titles II-A and II-C, and the Title II-A appropriation is 60 percent of the sum of Titles II-A and II-C. Title II-A funds are to be distributed among designated SDAs according to the statutory formula contained in Section 202(b) of JTPA, as amended by Section 701(c) of the JTPA Amendments of 1992. The formula specified by Section 701(c) of the Amendments is used since the FY 1993 appropriation level meets the conditions of that Section. This is the same formula which has been used in previous program years. In determining any necessary hold-harmless levels for SDAs, the States of Kentucky, Minnesota, Montana, and Wisconsin shall not include any additional funds provided for RCEPs. Title II-B Allotments: Attachment III shows the 1993 JTPA Title II-B allotments by State and by fund source, with totals. The data used for these allotments are the same data as were used for Title II-A and II-C allotments, except for the number of economically disadvantaged. The total number of economically disadvantaged individuals (including college and military) from the 1990 census was used. This follows the "old" definition of "economically disadvantaged" rather than the definition found in the 1992 Amendments which will not be in effect until July 1, 1993, and therefore is not applicable to these Title II-B allotments. For the Insular Areas and Native Americans, the amount is based on the percentage of Title II-B funds each received during the previous summer. Title II-B funds for the 1993 Summer program are to be distributed among designated SDAs in accordance with the statutory formula contained in Section 252(b) of JTPA, prior to the Amendments of 1992. This is the same formula that has been used in previous program years. In determining any necessary hold-harmless levels for SDAs, the States of Kentucky, Minnesota, Montana, and Wisconsin shall not include any additional funds provided for RCEPs. Title II-C Allotments: Attachment IV shows the 1993 JTPA Title II-C allotments by State. The data used for these allotments are the same data as were used for Title II-A allotments, except that the number of economically disadvantaged youth (age 16-21, excluding college and military) is used rather than the number of adults. The allotments for the Insular Areas, including the Freely Associated States, are based on unemployment data from the 1990 census or, if not available, the most recent data available. A 90-percent relative share "hold-harmless" of the PY 1992 Title II-A allotments for these areas and a minimum allotment of $50,000 were also applied in determining the allotments. This minimum amount equals 40 percent of the old Title II-A minimum allotment,since the JTPA Amendments of 1992 divided Title II-A into Titles II-A and II-C, and the Title II-C appropriation is 40 percent of the sum of Titles II-A and II-C. Title II-C funds are to be distributed among designated SDAs according to the statutory formula contained in Section 262(b) of JTPA, as amended by Section 701(f) of the JTPA Amendments of 1992. The formula specified by Section 701(f) of the Amendments is used since the FY 1993 appropriation level meets the conditions of that Section. In determining any necessary hold-harmless levels for SDAs, the States of Kentucky, Minnesota, Montana, and Wisconsin shall not include any additional funds provided for RCEPs. Title III Allotments: Attachment V shows the PY 1993 JTPA Title III allotments by State. The total appropriation includes 80 percent allotted by formula to the States, and 20 percent for the National Reserve, including funds allotted to the Insular Areas. Title III formula funds are to be distributed to State and sub state grantees in accordance with the provisions in Section 302(c) and (d) of JTPA, as amended. The unemployment data used for computing these State allotments, relative numbers of unemployed and relative numbers of excess unemployed, are averages for the October 1991 through September 1992 period. Long-term unemployed data used were for CY 1991. Allotments for the Insular Areas are based on the PY 1993 Title II-A allotments for these areas. Reallotments: Re allotments of these published Title III formula funds, as provided for by Section 303 of JTPA, as amended, will be based on completed program year expenditure reports submitted by the States and received by October 1, 1993. Title III allotments will be adjusted upward or downward, based on whether the State is eligible to share in reallotted funds or is subject to recapture. ES Planning Estimates: Attachment VI shows ES planning estimates for PY 1993 which have been produced using the formula set forth at Section 6 of the Wagner-Peyser Act, 29 U.S.C. 49e. These preliminary estimates are based on averages for the most current 12 months ending September 1992 for each State's share of the civilian labor force (CLF) and unemployment. Final planning estimates will be published in the Federal Register within 90 days, based on Calendar Year 1992 data, as required by the Wagner-Peyser Act. The total planning estimate does not include $19,138,700 or 2.36 percent of the total amount available. This amount is withheld from distribution to States to finance postage costs associated with the conduct of Employment Service business. The Department is proposing in a Federal Register Notice, soon to be published, that it will allocate postage resources to the States effective October 1, 1993. For information purposes, Attachment VII reflects the preliminary planning estimates including postage distribution to States for three quarters of PY 1993 (October 1, 1993 - June 30, 1994). A final decision on whether to allocate postage resources to the States will be made prior to the final allocations. The Secretary of Labor has set aside 3 percent of the total available funds to assure that each State will have sufficient resources to maintain statewide employment services, as required under Section 6(b)(4) of the Wagner-Peyser Act. In accordance with this provision, $23,754,639 is set aside for the administrative formula allocation. These set aside funds are included in the total planning estimate. Set aside funds are distributed in two steps to States which have lost in relative share of resources from the prior year. In step one, States which have a CLF below one million and are below the median CLF density are maintained at 100 percent of their relative share of prior year resources. All remaining funds are distributed on a pro rat a basis in step two to all other States losing in relative share from the prior year but which do not meet the size and density criteria for step one. Ten percent of the total sums allotted to each State shall be reserved for use by the Governor to provide performance incentives for public ES offices; services for groups with special needs; and for the extra costs of exemplary models for delivering job services. Action: a. Title II-A allotments are subject to the distribution requirements contained in Sections 162(e) and 202(b) of JTPA, as amended. b. Title II-B allotments are subject to the distribution requirements contained in Sections 162(e), and 252(b) of JTPA, prior to JTPA Amendments of 1992. c. Title II-C allotments are subject to the distribution requirements contained in Sections 162(e) and 262(b) of JTPA, as amended. d. Title III funds are subject to the distribution requirements contained in Sections 302(c) and (d) of JTPA, as amended. e. RCEP States should forward the following information to the address listed in item ; above not later than March 5, 1993: (1) PY 1993 Titles II-A and II-C formula allocations for the RCEPs in Kentucky, Minnesota, Montana, and Wisconsin. (2) CY 1993 Title II-B formula allocations for RCEPs in these States. f. States should initiate PY 1993 planning consistent with provisions of the Wagner-Peyser Act and Federal Regulations at 20 CFR Part 652.
ETA Regional Staff
Carolyn M. Golding Acting Assistant Secretary
Washington, DC: U.S. Department of Labor, Employment and Training Administration