1. Purpose. To provide the final planning allotments for PY 2002 basic labor exchange activities to the states, as required by Section 6(b)(5) of the W-P Act, as amended, and to announce changes to the Reemployment Services Allotments for PY 2002.
2. References. The W-P Act, as amended (29 U.S.C. 49 et seq); Workforce Investment Act (WIA) of 1998 (P.L. 106-113); 20 CFR 652; Planning Guidance and Instructions for Submission of the Strategic Five-Year State Plan for Title I of the Workforce Investment Act of 1998 and the Wagner-Peyser Act (64 F.R. 9402 [February 25, 1999]); State Unified Planning Guidance (65 F.R.2464 [January 14,2000]); Training and Employment Guidance Letters (TEGL) No. 11-98, 3-99, 12-00, and 13-01.
3. Final Planning Allotments. The Secretary of Labor is issuing final planning allotments for each state's share of PY 2002 funds for basic labor exchange activities. The allotments will be published in the Federal Register.
4. Allotment Formula. These allotments (Attachments I.1 and I.2) are based on the Fiscal Year (FY) 2002 appropriation of $761,735,000 and are distributed by the statutory formula described in Section 6 of the W-P Act. Section 6(b)(4) of the Act authorizes the Secretary of Labor to reserve up to 3 percent of the total fund availability to assure that each state will have sufficient resources to maintain statewide employment service (ES) activities. The set-aside for distribution through an administrative formula for this PY is $22,372,050. The 3 percent distribution is included in the final allotment totals. The set-aside was distributed in two steps to states whose relative share of resources declined from the previous year. In Step 1, states with a civilian labor force (CLF) below one million and are also below the median CLF density were held harmless at 100 percent of their prior year relative share of resources. The remainder was distributed in Step 2 in pro rata shares to all other states that lost in relative share from the prior year but did not meet the size criteria for Step 1.
Ten percent of the total sums allotted to each state is 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.
The data used are Calendar Year (CY) 2001 averages of CLF and number of unemployed individuals. Differences between preliminary and final planning estimates are caused by the use of CY 2001 data as opposed to the earlier data (12 months ending September 2001) used for preliminary planning estimates which were published in TEGL No. 13-01.
| RESCISSIONS | EXPIRATION DATE |
| None | Continuing |
5. Postage Costs. Postage costs incurred by states during the conduct of ES activities are billed directly to the Department of Labor by the U.S. Postal Service. The total planning estimate does not include $16,000,000 of the total amount available, which is withheld for the payment of the states' ES penalty mail costs.
6. Changes to Reemployment Services Allotments. These funds are provided to ensure that Unemployment Insurance (UI) claimants receive necessary services to become re-employed. The goal is to serve more claimants and to improve their employment outcomes. The $35 million in Reemployment Services funds available for PY 2002 are being distributed to the states as listed in Attachment II (Revised Reemployment Services Allotments). Changes in allotments are due to a combination of factors: 1) total funds available for PY 2002 are slightly higher than PY 2001 because no deduction was made for an evaluation of these grants; and 2) a change in a state's proportional share of UI first payments.
7. Inquiries. Questions regarding these final allotments may be directed to the appropriate Employment and Training Administration (ETA) Regional Administrator.
8. Attachments.
I.1 PY 2002 W-P Act Final Planning Allotments.
I.2 W-P Act Allotments PY 2001 Final vs PY 2002 Final
II Revised PY 2002 Reemployment Services Allotments