The following information was provided by Tim Reynaga, Legislative Chair, California Chapter:
The following information was obtained
through NASWA. For additional information on these and
other related matters, please visit www.naswa.org
May 3, 2013 Workforce Bulletin Highlights:
USDOL Releases Final PY2013 Program Allotments for WIA and Employment Service Programs
· On May 1, 2013, the U.S. Department of Labor (USDOL) issued Training and Employment Guidance Letter TEGL No. 25-12 <http://wdr.doleta.gov/directives/corr_doc.cfm?docn=3535> providing final PY 2013 allotments for programs authorized under the WIA, the Wagner-Peyser Act Employment Service and Workforce Information Grants to states.
· The final program allotments for PY13 reflect a 5% funding reduction required by sequestration and a 0.2% rescission contained in the continuing resolution (CR). It was unclear how USDOL would implement sequestration because WIA and Wagner-Peyser programs operate under Program Years which run from July 1st to June 30th, intersecting two fiscal years.
· WIA Youth, Employment Service and Workforce Information Grants sequestration is applied to the total allotment for each program. WIA Adult and Dislocated Worker funding reductions are more complex, due to “base” funds and “advanced” funds. Base funds cover the current FY (July, August and September) while advance funds are disbursed in the following FY.
WIA Dislocated Worker and Adult
· In TEGL No. 27-12 <http://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=3644> and in TEGL No. 25-12 <http://wdr.doleta.gov/directives/corr_doc.cfm?docn=3535> , USDOL indicated it would apply the required reductions entirely to PY13 base funds (July, August and September) to prevent the need to deobligate funds from PY12 advanced funds. While this decision avoids a need for states to recapture funds already obligated, PY13 base funding will be reduced significantly. PY 13 base funding reductions for the WIA Adult and Dislocated Worker programs are reduced by 66.5% (approximately $37 million) and 31.9% (approximately $44million) respectively.
· States are authorized under WIA to transfer up to 20% of the WIA Adult funds to the Dislocated Worker program and vice-versa. However, the CR passed in March provides states the flexibility transfer up to 30% of funds allocated between programs, with ETA noting in its guidance many states have waivers to exceed the percentage transfer between programs.
WIA Youth Program
· Funding for the WIA Youth Program in PY13 was reduced by 5.21% for a total PY13 allotment to states of approximately $767 million, a $42 million decrease from PY12.
Wagner-Peyser Act Grants
· Due to the Wagner-Peyser grants being appropriated as a single activity, ETA said in Training and Employment Notice TEN No. 27-12 <http://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=3644> it had the flexibility in the implementation of funding reductions for Wagner-Peyser. ETA indicated it planned to apply sequestration entirely to the ES grants, maintaining PY12 levels for Workforce Information Grants. The Employment Service funding will be reduced by approximately $36 million in PY13, representing a 5.23% reduction from the previous year. Funding for Workforce Information Grants maintain the same as in PY12.
Senators Portman and Bennet Reintroduce CAREER Act Legislation
· On April 24, 2013 Senators Rob Portman (R-OH) and Michael Bennet (D-CO) re-introduced legislation entitled the Careers Through Responsive, Efficient and Effective Retraining (CAREER) Act (S.804) <http://www.gpo.gov/fdsys/pkg/BILLS-113s804is/pdf/BILLS-113s804is.pdf> . They originally introduced the CAREER Act in September 2012 close to the end of the 112th Congress, but it died in committee. The CAREER Act would streamline federal job training programs and create incentives for training providers to implement programs leading to credentials accepted by employers across industries and sectors.
· The CAREER Act also directs states, in consultation with local workforce areas, to prioritize training programs leading to credentials and would require states to submit a report to the USDOL on training programs that are industry-recognized, nationally portable and regionally relevant.
· S.804 <http://www.gpo.gov/fdsys/pkg/BILLS-113s804is/pdf/BILLS-113s804is.pdf> provides for a pilot program in up to 5 states based on a pay-for-performance model. Under the pilot, states in consultation with local areas and their training providers would specify a set amount, which cannot exceed 115% of the historical cost of providing training services, for each participant who reaches a specified outcome goal as determined in the state plan. Finally, S.804 requires the Office of Management and Budget to develop a plan to streamline federal job training programs to “increase their efficiency, integration and alignment,” without decreasing access to training programs to specific populations with barriers to employment.