[Federal Register Volume 59, Number 78 (Friday, April 22, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-9808]


[[Page Unknown]]

[Federal Register: April 22, 1994]


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DEPARTMENT OF LABOR
 

Job Training Partnership Act and Targeted Jobs Tax Credit; Lower 
Living Standard Income Level

AGENCY: Employment and Training Administration, Labor.

ACTION: Note of determination of lower living standard income level.

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SUMMARY: The Job Training Partnership Act (JTPA) provides that the term 
``economically disadvantaged'' may be defined as 70 percent of the 
``lower living standard income level'' (LLSIL). To provide the most 
accurate data possible, the Department of Labor is issuing revised 
figures for the LLSIL. The Internal Revenue Code also provides that the 
term ``economically disadvantaged'' may be defined as 70 percent of the 
LLSIL for purposes of the Targeted Jobs Tax Credit (TJTC).

EFFECTIVE DATE: This notice is effective on April 22, 1994.

ADDRESSES: Send written comments to: Mr. Hugh Davies, Director, Office 
of Employment and Training Programs, Employment and Training 
Administration, Department of Labor, room N-4666, 200 Constitution 
Avenue NW., Washington, DC 20210.

FOR FURTHER INFORMATION CONTACT: Mr. Hugh Davies, Telephone: 202-219-
5580 (this is not a toll free number).

SUPPLEMENTARY INFORMATION: It is a purpose of the Job Training 
Partnership Act (JTPA) ``to afford job training to those economically 
disadvantaged individuals * * * who are in special need of such 
training to obtain productive employment.'' JTPA Section 2; see 20 CFR 
626.1 and 626.3(b). JTPA section 4(8) defines, for the purposes of JTPA 
eligibility, the term ``economically disadvantaged'' in part by 
reference to the ``lower living standard income level'' (LLSIL). See 20 
CFR 626.5.
    The LLSIL figures published in this notice shall be used to 
determine whether an individual is economically disadvantaged for 
applicable JTPA purposes. JTPA section 4(16) defines the LLSIL as 
follows:

    The term ``lower living standard income level'' means that 
income level (adjusted for regional, metropolitan, urban, and rural 
differences and family size) determined annually by the Secretary 
[of Labor] based on the most recent ``lower living family budget'' 
issued by the Secretary.

    Internal Revenue Code (I.R.C.) sec- tions 44B and 51 established 
the Targeted Jobs Tax Credit (TJTC) for a portion of the wages paid by 
employers from ``targeted'' groups. Certain of the targeted groups 
require that the worker be a member of ``an economically disadvantaged 
family.'' See, e.q., 26 U.S.C. 51(d)(3)(A)(ii), (4)(C), (7)(B), 
(8)(A)(iv), and (12)(A)(iv). The LLSIL figures published in this notice 
shall be used to determine whether an individual is a member of an 
economically disadvantaged family for applicable TJTC purposes.
    The most recent lower living family budget was issued by the 
Secretary in the fall of 1981. Using those data, the 1981 LLSIL was 
determined for programs under the now-repealed Comprehensive Employment 
and Training Act, and for the TJTC. The four-person urban family budget 
estimates previously published by the Bureau of Labor Statistics (BLS) 
provided the basis for the Secretary to determine the LLSIL for 
training and employment program operators. BLS terminated the four-
person family budget series in 1982, after publication of the Fall 1981 
estimates.
    Under JTPA, the Employment and Training Administration (ETA) 
published the 1993 updates to the LLSIL in the Federal Register of 
March 23, 1993. 58 FR 15507. ETA has again updated the LLSIL to reflect 
cost of living increases for 1993 by applying the percentage change in 
the December 1993 Consumer Price Index for All Urban Consumers (CPI-
(U), compared with the December 1992 CPI-U, to each of the March 23, 
1993 LLSIL figures. Those updated figures for a family of four are 
listed in Table 1 below by region for both metropolitan and 
nonmetropolitan areas. Since eligibility is determined by family income 
at 70 percent of the LLSIL, pursuant to section 4(8) of JTPA, those 
figures are listed below as well.
    Jurisdictions included in the various regions, based generally on 
Census Division of the U.S. Department of Commerce, are as follows:

Northeast

Connecticut
Maine
Massachusetts
New Hampshire
New Jersey
New York
Rhode Island
Pennsylvania
Vermont
Virgin Islands

North Central

Illinois
Indiana
Iowa
Kansas
Michigan
Minnesota
Missouri
Nebraska
North Dakota
Ohio
South Dakota
Wisconsin

South

Alabama
American Samoa
Arkansas
Delaware
District of Columbia
Florida
Georgia
Northern Marianas
Oklahoma
Palau
Puerto Rico
South Carolina
Kentucky
Louisiana
Marshall Islands
Maryland
Mississippi
Micronesia
North Carolina
Tennessee
Texas
Virginia
West Virginia

West

Arizona
California
Colorado
Idaho
Montana
Nevada
New Mexico
Oregon
Utah
Washington
Wyoming

    Additionally, separate figures have been provided for Alaska, 
Hawaii, and Guam as indicated in Table 2 below.
    For Alaska, Hawaii, and Guam, the 1994 figures were updated by 
creating a ``State Index'' based on the ratio of the urban change in 
the State (using Anchorage for Alaska and Honolulu for Hawaii and Guam) 
compared to the West regional metropolitan change, and then applying 
that index to the West regional nonmetropolitan change.
    Data on 25 selected Metropolitan Statistical Areas (MSAs) are also 
available. These are based on monthly, bimonthly or semiannual CPI-U 
changes for a 12-month period ending in December 1993. The updated 
LLSIL figures for these MSAs, and 70 percent of the LLSIl, rounded to 
the next highest ten, are set forth in Table 3 below.
    Table 4 below is a listing of each of the various figures at 70 
percent of the updated 1994 LLSIL for family sizes of one to six 
persons. For families larger than six persons, an amount equal to the 
difference between the six-persons, an amount equal to the difference 
between the six-person and the five-person family income levels should 
be added to the six-person family income level for each additional 
person in the family. Where the poverty level for a particular family 
size is greater than the corresponding LLSIL figure, the figure is 
indicated in parentheses.
    Section 4(8) of JTPA defines ``economically disadvantaged'' as, 
among other things, an individual whose family income was not in excess 
of the higher of the poverty level or 70 percent of the LLSIL. The 
Department of Health and Human Services published the annual update of 
the poverty-level guidelines at 59 FR 6277 (February 10, 1994).

Use of These Data

    Based on these data, Governors should provide the appropriate 
figures to service delivery areas (SDAs), State Employment Security 
Agencies, and employers in their States to use in determining 
eligibility for JTPA and TJTC. The Governor should designate the 
appropriate LLSILs for use within the State from Tables 1 through 3. 
Table 4 may be used with any of the levels designated.
    Information may be provided by disseminating information on MSAs 
and metropolitan and nonmetropolitan areas within the State, or it may 
involve further calculations. For example, the State of New Jersey may 
have four or more figures: Metropolitan, nonmetropolitan, for portions 
of the State in the New York City MSA, and for those in the 
Philadelphia MSA. If an SDA includes areas that would be covered by 
more than one figure, the Governor may determine which is to be used. 
Pursuant to the JTPA regulations at 20 CFR 627.200, guidelines, 
interpretations, and definitions adopted by the Governor shall be 
accepted by the Secretary to the extent that they are consistent with 
the JTPA and the JTPA regulations.

Disclaimer on Statistical Uses

    It should be noted that the publication of these figures is only 
for the purpose of determining eligibility for applicable JTPA and TJTC 
programs. BLS has not revised the lower living family budget since 
1981, and has no plans to do so. The four-person urban family budget 
estimates series has been terminated. The CPI-U adjustments used to 
update the LLSIL for this publication are not precisely comparable, 
most notably because certain tax items were included in the 1981 LLSIL 
but are not in the CPI-U.
    Thus, these figures should not be used for any statistical 
purposes, and are valid only for eligibility determination purposes 
under the JTPA and TJTC programs.

    Signed at Washington, DC, this 15th day of April, 1994.
Dolores Battle,
Administrator, Office of Job Training Programs.
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[FR Doc. 94-9808 Filed 4-21-94; 8:45 am]
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