1. Purpose. To provide adjusted funding levels for Program Year (PY) 2003 allotments
for the Dislocated Worker program under WIA Title I Section 132(c) through the recapture and reallotment mechanism.
2. References. A. TEGL 23-02.
B. Workforce Investment Act (Public Law 105-220).
3. Background. On April 1, 2003, TEGL 23-02 provided states and outlying areas with WIA Title I Adult, Dislocated Worker and Youth Activities allotments for PY 2003 and alerted states about the conditions for the recapture and reallotment of funds as required under WIA Sections 127(c) and 132(c). Under WIA Section 132(c), the Secretary conducts a reallotment of Dislocated Worker formula funds based on state financial reports submitted at the end of the Program Year. The procedures the Secretary uses for recapture and reallotment of funds are described in WIA regulations at 20 CFR Section 667.150. We will not recapture any PY 2003 funds for the Adult and Youth programs because all states met the statutory thresholds. For the Dislocated Worker program, however, a total of $4,041,974 in unobligated funds will be recaptured from one state and reallotted to the remaining states, as required by WIA Section 132(c).
4. Notice of Obligation (NOO) Adjustment. Notices of Obligation and Deobligation for the states will be issued to reflect the recapture and reallotment of these funds. The adjustment of funds will be made to the FY 2004 advance portion of the PY 2003 allotments, which were issued in October 2003. Attached is a table displaying the net changes to PY 2003 formula allotments and a description of the reallotment methodology.
5. Procedures and Reporting. Neither WIA statutory language nor WIA regulatory language provides specific requirements by which a state must distribute recaptured funds among the state itself and any local areas, so states have the flexibility to determine the methodology to be used. For any state from which funds are being recaptured, WIA Section 132(c) (5) requires the Governor to prescribe equitable procedures for making funds available between the state and local areas.
For reporting purposes, the recapture/reallotment amount must be reflected (decrease or increase) in the “Total Federal Funds Authorized” line of any affected FY 2004 WIA Financial Status Reports (Statewide Activities, Statewide Rapid Response, Local Dislocated Worker Program Activities, Local Administration) in a manner consistent with the method of distribution of these amounts to states and local areas. An explanation of the adjustment should be included in the remarks sections of the adjusted reports.
6. Action Required. State agencies are requested to provide this guidance letter to the appropriate WIA state and local staff.
7. Inquiries. Questions regarding the revised allotments should be directed to the appropriate Regional Office.
8. Attachments.
| RESCISSIONS | EXPIRATION DATE |
| | Continuing |