[Federal Register Volume 68, Number 62 (Tuesday, April 1, 2003)]
[Notices]
[Pages 15745-15756]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-7737]


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DEPARTMENT OF LABOR

Employment and Training Administration


Program Year (PY) 2003 Workforce Investment Act (WIA) Allotments; 
PY 2003 Wagner-Peyser Act Final Allotments; PY 2003 Reemployment 
Services Allotments; Fiscal Year (FY) 2003 Work Opportunity and Welfare 
to Work Tax Credit Allotments; and FY 2003 Congressional Rescissions 
for WIA Adults and Dislocated Workers

AGENCY: Employment and Training Administration, Labor.

ACTION: Notice.

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SUMMARY: This Notice announces states' allotments for PY 2003 (July 1, 
2003-June 30, 2004) for WIA Title I Youth, Adults and Dislocated Worker 
programs; final allotments for public Employment Service (ES) 
activities under the Wagner-Peyser Act for PY 2003; Reemployment 
Services Allotments for PY 2003; Work Opportunity and (WtW) Tax Credit 
allotments for FY 2003; and FY 2003 Congressional Rescissions for WIA 
Adults and Dislocated Worker programs.
    The WIA allotments for states and the final allotments for Wagner-
Peyser ES activities are based on formulas defined in their respective 
statutes. The WIA allotments for the outlying areas are based on a 
formula determined by the Secretary. As required by WIA section 182(d), 
on February 17, 2000, a Notice of the discretionary formula for 
allocating PY 2000 funds for the outlying areas was published in the 
Federal Register at 65 FR 8236 (February 17, 2000). The rationale for 
the formula and methodology was fully explained in the February 17, 
2000, Notice. The formula for PY 2003, like PY 2002, is the same as 
used for PY 2000 and is described in the section on Youth allotments. 
Comments are invited upon the formula used to allot funds to the 
outlying areas.

DATES: Comments must be received by May 1, 2003.

ADDRESSES: Submit written comments to the Employment and Training 
Administration, Office of Financial and Administrative Management, 200 
Constitution Ave, NW., Room N-4702, Washington, DC 20210, Attention: 
Ms. Sherryl Bailey, 202-693-2813 (phone), 202-693-2859 (fax), e-mail: 
[email protected].

FOR FURTHER INFORMATION CONTACT: WIA Youth Activities allotments: 
Lorenzo Harrison at 202-693-3528; WIA Adult and Dislocated Worker 
Employment and Training Activities allotments: Marilyn Shea at 202-693-
2712; ES final allotments: Anthony Dais at 202-693-2784. (These are not 
toll-free numbers.) Information may also be found at the Web site--
http://www.doleta.gov.

SUPPLEMENTARY INFORMATION: The Department of Labor (DOL or Department) 
is announcing WIA allotments for PY 2003 (July 1, 2003-June 30, 2004) 
for Youth Activities, Adults and Dislocated Worker Activities, and 
Wagner-Peyser Act PY 2003 ES final allotments. This document provides 
information on the amount of funds available during PY 2003 to states 
with an approved WIA Title I and Wagner-Peyser 5-Year Strategic Plan 
and information regarding allotments to the outlying areas. The 
allotments and estimates are based on the funds appropriated in the 
Consolidated Appropriations Resolution, 2003, Public Law 108-7, 
February 20, 2003. This appropriation requires an across-the-board 
reduction of .65 percent to all FY 2003 discretionary programs, 
including FY 2003 advance funds for the WIA Adults and Dislocated 
Worker programs appropriated in the FY 2002 appropriation. Attached are 
tables listing the FY 2003 rescissions for the WIA Adults (Attachment 
II-A) and Dislocated Worker (Attachment III-A) programs and the PY 2003 
allotments for programs under WIA Title I Youth Activities, Adults and 
Dislocated Workers Employment and Training Activities and the PY 2003 
ES final allotments under the Wagner-Peyser Act. Also attached are 
tables displaying PY 2003 Reemployment Services allotments, and FY 2003 
Work Opportunity and WtW Tax Credit allotments.
    Youth Activities Allotments. PY 2003 Youth Activities funds under 
WIA total $1,038,669,477 (including $44,210,750 for Youth Opportunity 
grants and $994,458,727 for WIA Title I Youth Activities). Attachment I 
includes a breakdown of the Youth Activities program allotments for PY 
2003 and provides a comparison of these allotments to PY 2002 Youth 
Activities allotments for all states, outlying areas, Puerto Rico and 
the District of Columbia. Before determining the amount available for 
states, the total available for the outlying areas was reserved at 0.25 
percent of the full amount appropriated for Youth Activities, including 
Youth Opportunity Grants. WIA section 127(b)(1)(B)(i)(IV) provides that 
the Freely Associated States (Marshall Islands, Micronesia, and Palau) 
are not eligible for funding for any program year beginning after 
September 30, 2001. However, section 3 of Public Law 106-504, (November 
13, 2000), supercedes this section of WIA, and provides that the Freely 
Associated States remain eligible for funding until negotiations on the 
Compact of Free Association is complete and consideration of 
legislation pursuant to the Compact is completed. This legislation 
remains uncompleted; therefore, the Freely Associated States are 
provided funds for PY 2003. The methodology for distributing funds to 
all outlying areas is not specified by WIA, but is at the Secretary's 
discretion. The methodology used is the same as used since PY 2000, 
i.e., funds are distributed among the areas by formula based on 
relative share of number of unemployed, a 90 percent hold-harmless of 
the prior year share, a $75,000 minimum, and a 130 percent stop-gain of 
the prior year share. Data used for the relative share calculation in 
the formula were the same as used for PY 2002 for all outlying areas, 
essentially using 1995 Census data from special surveys. The total 
amount available for Native Americans is 1.5 percent of the total 
amount for Youth Activities excluding Youth Opportunity Grants, in 
accordance with WIA section 127. After determining the amount for the 
outlying areas and Native Americans, the amount available for allotment 
to the States for PY 2003 is $976,945,172. This total amount was

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below the required $1 billion threshold specified in section 
127(b)(1)(C)(iv)(IV); therefore, unlike in PY 2002, the WIA additional 
minimum provisions were not applied: (1) The minimum 1998 dollar (not 
percentage) (JTPA II-B and II-C combined) allotment, and (2) the two-
tier small state minimum allotment (.3 percent of the first $1 billion 
and .4 percent of the amount over $1 billion). Instead, as required by 
WIA, the JTPA section 202(a)(3) (as amended by section 701 of the Job 
Training Reform Amendments of 1992) minimums of 90 percent hold-
harmless of the prior year allotment percentage and 0.25 percent state 
minimum floor were used. Also, as required by WIA, the provision 
applying a 130 percent stop-gain of the prior year allotment percentage 
was used. The three formula factors required in WIA use the following 
data for the PY 2003 allotments:
    (1) The number of unemployed for areas of substantial unemployment 
(ASU's) are averages for the 12-month period, July 2001 through 
preliminary June 2002;
    (2) The number of excess unemployed individuals or the ASU excess 
(depending on which is higher) are averages for the same 12-month 
period used for ASU unemployed data; and
    (3) The number of economically disadvantaged youth (age 16 to 21, 
excluding college students and military) are from the 1990 Census. 
(2000 Census data are expected to be available for use for the PY 2004 
allotment calculations.)
    Adult Employment and Training Activities Allotments. The total 
Adult Employment and Training Activities appropriation is $898,778,000. 
Attachment II-B shows the PY 2003 Adult Employment and Training 
Activities allotments and comparison to PY 2002 allotments by state. 
Similarly to the Youth Activities program, the total available for the 
outlying areas was reserved at 0.25 percent of the full amount 
appropriated for Adults. The Adult Activities funds for grants to all 
outlying areas, for which the distribution methodology is at the 
Secretary's discretion, were distributed among the areas by the same 
principles, formula and data as used for outlying areas for Youth 
Activities. After determining the amount for the outlying areas, the 
amount available for allotments to the states is $896,531,055. Like the 
Youth Activities program, the WIA minimum provisions were not applied 
for the PY 2003 allotments because the total amount available for the 
states was below the $960 million threshold required for Adults in 
section 132(b)(1)(B)(iv)(IV). Instead, as required by WIA, the minimum 
allotments were calculated using the JTPA section 202(a)(3) (as amended 
by section 701 of the Job Training Reform Amendments of 1992) minimums 
of 90 percent hold-harmless of the prior year allotment percentage and 
0.25 percent state minimum floor. Also, like the Youth Activities 
program, a provision applying a 130 percent stop-gain of the prior year 
allotment percentage was used. The three formula factors use the same 
data as used for the Youth Activities formula, except that data from 
the 1990 Census for the number of economically disadvantaged adults 
(age 22 to 72, excluding college students and military) were used. 
(2000 Census data are expected to be available for use for the PY 2004 
allotment calculations.)
    Dislocated Worker Employment and Training Activities Allotments. 
The total Dislocated Worker appropriation is $1,431,340,495. The total 
appropriation includes formula funds for the states, while the National 
Reserve is used for National Emergency Grants, technical assistance and 
training, demonstration projects, and the outlying areas Dislocated 
Worker allotments. Attachment III-B shows the PY 2003 Dislocated Worker 
Activities fund allotments by state. Like the Youth and Adults 
programs, the total available for the outlying areas was reserved at 
0.25 percent of the full amount appropriated for Dislocated Worker 
Activities. The Dislocated Worker Activities funds for grants to all 
outlying areas, for which the distribution methodology is at the 
Secretary's discretion, were distributed among the areas by the same 
pro rata share as the areas received for the PY 2003 WIA Adult 
Activities program, the same methodology used in PY 2002. For the state 
distribution of formula funds, the three formula factors required in 
WIA use the following data for the PY 2003 allotments:
    (1) Number of unemployed, averages for the 12-month period, October 
2001 through September 2002;
    (2) Number of excess unemployed, averages for the 12-month period, 
October 2001 through September 2002; and
    (3) Number of long-term unemployed, averages for calendar year 
2001.
    Since the Dislocated Worker Activities formula has no floor amount 
or hold-harmless provisions, funding changes for states directly 
reflect the impact of changes in the number of unemployed.
    Wagner-Peyser Act Employment Service Final Allotments. The public 
Employment Service (ES) program involves a Federal-State partnership 
between the U.S. Department of Labor and the State Workforce Agencies. 
Under the Wagner-Peyser Act, funds are allotted to each state to 
administer a labor exchange program responding to the needs of the 
state's employers and workers through a system of local employment 
services offices that are part of the One-Stop service delivery system 
established by the state. Attachment IV shows the ES final allotments 
for PY 2003. These final allotments have been produced using the 
formula set forth at Section 6 of the Wagner-Peyser Act, 29 U.S.C. 49e. 
They are based on monthly averages of the civilian labor force (CLF) 
and unemployment for the calendar year 2002. State planning estimates 
reflect $18,000,000 being withheld from distribution to states to 
finance postage costs associated with the conduct of Wagner-Peyser Act 
labor exchange services for PY 2003. The Secretary of Labor is required 
to set aside up to three percent of the total available funds to assure 
that each state will have sufficient resources to maintain statewide 
employment service activities, as required under section 6(b)(4) of the 
Wagner-Peyser Act. In accordance with this provision, the three percent 
set-aside funds are included in the total planning estimate. The set-
aside funds are distributed in two steps to states that have lost in 
relative share of resources from the previous year. In Step 1, states 
that have a CLF below one million and are also below the median CLF 
density are maintained at 100 percent of their relative share of prior 
year resources. All remaining set-aside funds are distributed on a pro-
rata basis in Step 2 to all other states losing in relative share from 
the prior year but not meeting the size and density criteria for Step 
1. Under the Wagner-Peyser Act section 7, ten percent of the total sums 
allotted to each state shall be 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.
    Reemployment Services Allotments. The purpose of these funds is to 
ensure that Unemployment Insurance (UI) claimants receive the necessary 
services to become re-employed. The total funds available for PY 2003 
are $34,772,500. The allotment figures for the distribution of funds 
for each state for PY 2003 are listed in Attachment V. The funds were 
distributed using the following administrative formula: each state 
received $215,000, with the remaining funds distributed using each 
state's share of first payments for FY 2002 to UI claimants.
    Work Opportunity (WOTC) and Welfare to Work Tax Credit Program

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Grants to States. Total funding for FY 2003 is $20,863,500. Attachment 
VI shows the PY 2003 Work Opportunity and Welfare to Work Tax Credit 
grants by state. After reserving $584,200 for postage and $20,000 for 
the Virgin Islands, funds are distributed to states by administrative 
formula with a $64,000 minimum allotment and a 95% stop-loss/120% stop-
gain from the prior year allotment share percentage. The allocation 
formula is as follows:
    (1) 50% based on each state's relative share of total FY 2002 
certifications issued for the WOTC/WtW Tax Credit program;
    (2) 30% based on each state's relative share of the CLF for 
calendar year 2001; and
    (3) 20% based on each state's relative share of the adult 
recipients of Temporary Assistance for Needy Families (TANF) for FY 
2001.

    Signed at Washington, DC this 26th day of March, 2003.
Emily Stover DeRocco,
Assistant Secretary for Employment and Training.
BILLING CODE 4510-30-P

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[FR Doc. 03-7737 Filed 3-31-03; 8:45 am]
BILLING CODE 4510-30-C