[Federal Register Volume 70, Number 223 (Monday, November 21, 2005)]
[Notices]
[Pages 70100-70102]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-6396]


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DEPARTMENT OF LABOR

Employment and Training Administration


Trade Adjustment Assistance Program: Training and Employment 
Guidance Letter

    The Employment and Training Administration interprets federal law 
requirements pertaining to Trade Adjustment Assistance (TAA). These 
interpretations are issued in Training and Employment Guidance Letters 
(TEGLs) to the State Workforce Agencies. The TEGL described below is 
published in the Federal Register in order to inform the public.

TEGL 32-04

    TEGL 32-04 provides guidance to states on meeting Fiscal Year (FY) 
2005 goals for the TAA and NAFTA-TAA programs.
    The information contained in TEGL 32-04 is issued to States and the 
cooperating state workforce agencies (SWAs) as guidance provided by the 
Department of Labor (DOL) in its role as the principal in the TAA 
program. As agents of the Secretary of Labor, the states and 
cooperating SWAs may not vary from the instructions in TEGL 32-04 
without prior approval from the Department.

    Dated: November 14, 2005.
Emily Stover DeRocco,
Assistant Secretary of Labor.

Employment and Training Administration Advisory System
    U.S. Department of Labor, Washington, DC 20210

    Classification: TAA/NAFTA-TAA

    Correspondence Symbol: ONR

    Date: May 17, 2005

Training and Employment Guidance Letter No. 32-04

 To: All State Workforce Agencies; All State Workforce Liaisons; All 
State Trade Coordinators /s/
From: Emily Stover DeRocco, Assistant Secretary
Subject: State Accomplishment of Performance Goals for Trade Adjustment 
Assistance (TAA) and North American Free Trade Agreement Transitional 
Adjustment Assistance (NAFTA-TAA) Participants

    1. Purpose. To provide guidance on meeting the Fiscal Year (FY) 
2005 goals for the TAA and NAFTA-TAA programs.
    2. References. Trade Act of 1974 (Pub. L. 93-619), as amended; 
Trade Act of 2002 (Pub. L. 107-210); Workforce Investment Act; 
Government Performance and Results Act of 1993 (GPRA), as amended; 
Training and Employment Guidance Letter (TEGL) 7-99, ``Core and 
Customer Satisfaction Performance Measures for the Workforce Investment 
System;'' TEGL 11-00, ``Operating Instructions for Implementing the 
Amendments to the Trade Act of 1974 Enacted by the Trade Act of 2002;'' 
TEGL 6-03, ``Fiscal Year (FY) 2004 State Planning Estimates and Process 
for Requesting Additional Trade Adjustment Assistance (TAA) Funds for 
Training and Administration.''
    3. Background. The Trade Act programs, TAA and NAFTA-TAA, were 
established to provide workers adversely affected by trade with 
assistance to return them to sustainable employment as quickly as 
possible. While many trade-affected workers will be able to find 
reemployment without assistance, the Trade Act programs provide an 
array of benefits for those who need additional help.
    Performance measures were established for the Trade Act programs to 
measure the programs' success in returning individuals to sustainable 
employment. National goals are set each year for the reemployment rate, 
retention rate, and wage replacement rate to be achieved by 
participants exiting the TAA and NAFTA-TAA programs. Although there are 
no individual state goals, states are responsible for meeting the 
national goals for the Trade Act programs as required by the Agreement 
between the Governor of each state and the Secretary of Labor.
    Performance in FY 2004 indicates considerable improvement in 
outcomes must be realized if the national goals are to be achieved in 
FY 2005. To the extent that these shortfalls are related to reporting 
deficiencies, the suggestions provided in section 6 of this TEGL 
emphasize the need for fully accounting for all TAA and NAFTA-TAA 
participants who enter employment in FY 2005. Moreover, since 
performance is an ongoing emphasis, the performance principles included 
in section 6 will be extremely helpful to states in ensuring that 
program performance is at acceptable levels in future years.
    This TEGL provides guidance to states on FY 2005 goals as well as 
actions needed to achieve those goals.
    4. Performance Goals.
    The Trade Act programs' national performance goals for FY 2005 are:
     70 percent of program exiters will be employed in the 
first quarter after program exit;
     89 percent of those who were employed in the first quarter 
after program exit will be employed in the third quarter after program 
exit; and
     Those who are employed in the second and third quarters 
after program exit will earn, on average, not less than 80 percent of 
their pre-separation earnings.
    5. Reported Past Performance. As outlined in TEGL 11-00, states are 
required to submit a quarterly Trade Act Participant Report (TAPR), 
Office of Management and Budget (OMB) approval number 1205-0392. Based 
on the outcomes reported in the TAPR, the TAA program has not met 
national performance goals in the past several years. In the most 
recent complete fiscal year, FY 2004, the reported outcomes fell short 
of the national goals on two of the three measures.

[[Page 70101]]



              TAA National Performance Outcomes for FY 2004
------------------------------------------------------------------------
                                                             National
                 Measure                   National goal      outcome
                                             (percent)       (percent)
------------------------------------------------------------------------
Wage Replacement........................              90              74
Reemployment Rate.......................              70              63
Retention Rate..........................              88              89
------------------------------------------------------------------------

    Based on the performance data reported in the TAPR, OMB rated the 
TAA program as ineffective in its most recent review of job training 
programs. The reported outcomes are either the result of positive 
outcomes not being captured in the TAPR, the program being unable to 
effectively move TAA and NAFTA-TAA participants into sustainable 
employment, or both. It is essential that any inaccuracies in the 
reporting be identified and all positive outcomes reported to ensure 
that reported data fully represents the outcomes achieved.
    6. Performance Principles. The Department has developed ten 
principles that represent a strategy for achieving the Department's 
vision for the TAA program and meeting performance goals. In addition, 
the Department has identified five areas that can be addressed 
immediately to improve the quality of reported outcomes.
    a. The ten performance principles outlined below are basic 
principles for achieving quality results.
    1. Assess each worker's skills and abilities. In order to determine 
the best path to reemployment, each participating worker needs an 
assessment of current skills and abilities.
    2. Develop an individualized service strategy. There is no ``one 
size fits all'' service plan. An individualized service strategy, which 
leads to reemployment, should be developed for each worker based on the 
skills and abilities identified in his/her assessment, suitable 
occupations for which there is a demand in the local economy, and any 
training that is necessary to connect the worker's skills and abilities 
with those needed to meet the demand.
    3. Co-enroll with other One-Stop programs. The TAA program provides 
the training necessary to give individuals the skills that are in 
demand. TAA participants depend on the assessment and placement 
services offered by One-Stop partners to connect them to appropriate 
job opportunities.
    4. Work with staff at all levels to achieve common goals. In order 
to achieve success, staff at local, state, and federal levels must work 
together to identify and meet the individual needs of each worker with 
an awareness that the overarching goal is to quickly return that worker 
to sustainable employment through the provision of appropriate services 
from the TAA program and other One-Stop partners.
    5. Provide effective placement services. Effective placement 
services are essential to connecting trained workers with employers 
that have a demand for their skills. Without placement services, 
trained TAA participants may miss out on high growth occupational 
opportunities.
    6. Get workers jobs quickly. Our business is getting people back to 
work. If their assessment indicates they have the skills necessary to 
obtain suitable employment, they should immediately receive placement 
services to connect them with employers who need their skills. If they 
do not have the skills to return to suitable employment, a training 
plan should be developed quickly that will prepare them for an 
occupation that is in high demand, minimize the time they are separated 
from the workforce, and offer the highest opportunity for sustainable 
employment.
    7. Get workers jobs that last. Although there is no guarantee that 
any job with a specific company will last, training programs should 
focus on providing skills that are expected to be in demand in the 
local economy so that the worker will have the skills necessary for 
sustainable employment.
    8. Get workers jobs that pay. In order to meet the needs of the 
individual worker, reemployment must be at a wage that allows the 
individual to meet their financial commitments, such as mortgage 
payments, car payments, food, medical expenses, education, and 
dependent care. These commitments are established in relation to the 
worker's previous earnings and cannot be met unless he/she obtains a 
job paying substantially similar wages.
    9. Report outcomes accurately and timely. The success of the TAA 
program is judged by the data the states report. Our successes cannot 
be recognized if they are not reported on time and accurately.
    10. Know and achieve national performance goals. In order to meet 
national program goals and demonstrate the value of the TAA program, 
federal, state, and local staff must all know the national program 
goals they are working to achieve.
    b. There are several areas, consistent with the performance 
principles, that can be addressed immediately to improve the quality of 
reported outcomes and ensure an appropriate system-wide focus on 
performance. These areas are discussed below:
    1. Wage Record Interchange System. In order to ensure that all 
positive outcomes are recorded, states are encouraged to take full 
advantage of the Wage Record Interchange System (WRIS). Use of the WRIS 
will allow outcomes for TAA and NAFTA-TAA participants who find work 
outside the state in which services are provided to be appropriately 
reported. This could add significantly to reported outcomes, 
particularly since TAA and NAFTA-TAA participants have job search and 
relocation allowances available to them to help them find work outside 
their commuting area.
    Attached is a list of WRIS contacts. For information about 
accessing the WRIS system, state TAA coordinators may contact the 
individual listed for their state. States that do not have a contact 
listed may contact their appropriate Employment and Training 
Administration (ETA) regional office for more information.
    2. Supplemental Data. In addition to the use of state wage records 
and the WRIS, supplemental data sources, as described in TEGL 7-99, can 
be a valuable tool in collecting outcome information on individuals who 
may not be fully accounted for in the wage record systems. Telephone 
and electronic communications can be useful methods of following up 
with participants or employers to determine employment status. In 
addition, where states have access to other administrative mechanisms, 
they should take full advantage of them. Indications are that 
supplemental sources can improve reported outcomes; however, the 
validity of the data must be assured. In instances where supplemental 
data

[[Page 70102]]

indicates the individual was employed but there is no corresponding 
wage record, the mechanism for reporting the employment on the TAPR is 
to report ``yes'' in field 40, ``employed first quarter after exit,'' 
and/or field 43, ``employed third quarter after exit,'' and to report 
``0'' in the corresponding wage field.
    3. Exit Date. TEGL 11-00 instructs states that there are two ways 
to determine program exit. States are required to submit TAPR (OMB 
number 1205-0392) information for all participants who:
     Have a date of completion or known exit from Trade Act-
funded services or, if later, from WIA Title I-funded services (hard 
exit); or
     Do not receive any Trade Act-funded or non-TAA partner 
services for 90 days and are not scheduled for future services (soft 
exit).
    In all cases where services are provided to the participant by both 
TAA and a partner program, the exit date is based on the last service 
provided by either program. This means that if a TAA participant 
completes TAA-funded training and then receives services provided by 
WIA, the exit date used for reporting the participant on the TAPR is 
the date the individual received the last service provided by WIA. It 
has been brought to our attention that some states may be exiting 
participants and reporting them on the TAPR while they are still 
receiving services under WIA. This inaccurately results in the 
participants being reported as not reemployed, even though the 
individuals are still receiving services and not necessarily seeking 
work. Consequently, it is essential that the date of exit be accurately 
recorded.
    4. Wrap-around services. Accomplishing TAA performance goals 
requires a coordinated approach at the state and local level. 
Coordination will ensure that TAA and NAFTA-TAA participants not only 
receive appropriate training related to demand occupations, but also 
are provided assessment, counseling, and reemployment services. These 
services are essential to ensuring the training received is appropriate 
to the individual and the local job market and results in timely and 
quality reemployment. Ensuring that the Trade Act investment in workers 
is successful requires an integrated approach that utilizes all 
available resources for serving dislocated workers.
    5. Monitoring. States are expected to have program evaluation and 
monitoring systems in place that include Trade Act programs and 
reinforce the pursuit of program performance goals. As part of program 
evaluation, states should identify and ensure appropriate strategies 
are being applied to reemploy TAA participants. Ongoing coordination 
should occur between Trade Act and Dislocated Worker Unit coordinators 
to ensure TAA and NAFTA-TAA participants receive the full range of 
necessary services in a timely manner. When technical assistance needs 
are identified, the state should provide prompt guidance to local 
program coordinators to quickly resolve any issues, whether related to 
service strategies or to data collection and reporting.
    7. Funding Formula. As described in TEGL 6-03, accomplishment of 
performance goals may be included as an element in the funding 
allocation formula in future years. A workgroup of federal, state, and 
local representatives is discussing methodologies for distributing TAA 
training funds, including how performance might be factored into the 
formula. Therefore, each state's performance status in FY 2005 may 
affect their funding in future years.
    8. Performance Measures for FY 2006. For FY 2006, ETA is proposing 
changes to the reporting requirements for the Trade Act programs to 
incorporate a set of common performance measures as well as capture 
information related to the Trade Act of 2002. The common measures will 
be applied to certain federally-funded employment and training programs 
with similar strategic goals. The value of implementing common measures 
is the ability to describe in a similar manner the core purposes of the 
workforce system--how many people found jobs; whether people stay 
employed; and whether their earnings increased.
    Multiple sets of performance measures have burdened states and 
grantees as they are required to report performance outcomes based on 
varying definitions and methodologies for different programs. By 
minimizing the different reporting and performance requirements, common 
performance measures can facilitate the integration of service 
delivery, reduce barriers to cooperation among programs, and enhance 
the ability to assess the effectiveness and impact of the workforce 
investment system.
    The changes are proposed for FY 2006, and of note are changes to 
the retention measure and the earnings change measure. The retention 
measure will compare those who were employed in the first, second, and 
third quarters after program exits. The earnings change measure will be 
calculated and reported as a dollar amount, comparing earnings in the 
second and third quarters prior to the date of participation with 
earnings in the second and third quarters following program exit.
    9. Action. States should make all appropriate staff aware of the 
contents of this TEGL and take appropriate measures to improve program 
performance and ensure full and accurate reporting of reemployment 
outcomes.
    10. Inquiries. Inquiries regarding these instructions should be 
directed to the appropriate Regional Office.
    11. Attachment. WRIS State Contacts.

 [FR Doc. E5-6396 Filed 11-18-05; 8:45 am]
BILLING CODE 4510-30-P