1. Purpose. To provide guidance on ETA plans to deobligate Fiscal Year (FY) 2003 Adult and Dislocated Worker Programs formula funds for Program Year (PY) 2002 as required of Public Law 108-7, Consolidated Appropriations Resolution, 2003.
2. References.
(a) TEGL 23-02.
(b) Consolidated Appropriations Resolution, 2003, Public Law 108-7, February 20, 2003.
3. Background. Public Law 108-7 requires the Secretary to make a reduction of 0.65 percent to all FY 2003 discretionary programs. This includes the WIA Adult and Dislocated Worker formula allotted funds for FY 2003 (available beginning October 1, 2002) appropriated in the FY 2002 DOL appropriation. The rescission calls for a reduction of $4,628,000 from the initial allotment of $712,000,000 for Adult activities and a reduction of $6,890,000 from the initial allotment of $1,060,000,000 for Dislocated Worker activities. TEGL 23-02, dated April 1, 2003, advised states of the rescission of FY 2003 funds and provided tables showing the amount of FY 2003 funds to be recaptured for each state for the Adult and Dislocated Worker Programs.
4. Within State Allocations of Adult Allotments. The distribution of the state allotments, as reduced by the rescinded funds must follow the statutory requirements at WIA Section 133. States have flexibility provided by WIA to apply the rescission amounts to statewide activities and/or to local area activities as long as the revised levels conform with:
(a) A minimum of 85 percent of each States' revised Adult allotment will be provided to local area activities; and
(b) A maximum of 15 percent of each States' revised Adult allotment may be used for statewide activities as authorized under WIA.
| RESCISSIONS | EXPIRATION DATE |
| | Continuing |
Adult activities rescission amounts taken from statewide activities cannot exceed the total amount originally reserved for statewide activities from the Adult program for FY 2003.
5. Within State Allocations of Dislocated Worker Allotments.The distribution of the state allotments, as reduced by rescinded funds must follow the statutory requirements at WIA Section 133. States have flexibility provided by WIA to apply the rescission amounts to statewide activities, rapid response activities, and/or to local area activities as long as the revised levels conform with:
- A minimum of 60 percent of each States' revised dislocated worker allotment will be provided to local area activities;
- A maximum of 15 percent of each States' revised dislocated worker allotment may be used for statewide activities as authorized under WIA; and
- A maximum of 25 percent of each States' revised dislocated worker allotment may be used for statewide rapid response activities as authorized under WIA.
Dislocated worker activities rescission amounts taken from statewide activities cannot exceed the total amount originally reserved for this category from the Dislocated Worker program for FY 2003.
6. Notice of Obligation (NOO).A NOO to deobligate the rescission amounts for the Adult and Dislocated Worker Programs for each state will be issued by April 21, 2003. The rescission of funds will be made to the FY 2003 advance portion (October 1 to June 30) of the PY 2002 allotments that were issued in October 2002.
7. Reporting. States should reflect reduced total Federal funds authorized on the appropriate line items of the proper ETA form 9076 beginning with the quarter ending June 30, 2003, consistent with the effective date of the NOOs deobligation of the funds. States should also report obligations and outlays consistent with the revised authorized funding levels for such quarters.
8. Action Required.States should:
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Maximize efforts to review financial reports regarding obligation and expenditure amounts and to ensure the accuracy of the reports submitted as of the June 30, 2003, reporting period;
- Promptly alert their Regional Offices of any significant errors found subsequent to their initial submittal of these financial reports; and
- Provide this guidance to appropriate staff.
9. Inquiries. Questions on this TEGL should be addressed to the appropriate Regional Office contact as soon as possible.