[Federal Register Volume 71, Number 69 (Tuesday, April 11, 2006)]
[Notices]
[Pages 18572-18582]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-3483]



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Part VI





Department of Labor





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Employment and Training Administration



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Grants and Cooperative Agreements; Notice of Availability; Notice

  Federal Register / Vol. 71, No. 69 / Tuesday, April 11, 2006 / 
Notices  

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DEPARTMENT OF LABOR

Employment and Training Administration


Fiscal Year (FY) 2006 Congressional Rescissions for Workforce 
Investment Act (WIA) Adults and Dislocated Workers; Program Year (PY) 
2006 WIA Planning Estimates for Adult Activities and Youth Activities; 
PY 2006 Allotments for Dislocated Worker Activities; PY 2006 Wagner-
Peyser Act Final Allotments; PY 2006 Workforce Information Grants; and 
FY 2006 Work Opportunity Tax Credit and Welfare-to-Work Tax Credit 
Allotments

AGENCY: Employment and Training Administration, Labor.

ACTION: Notice.

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SUMMARY: This Notice announces FY 2006 Congressional rescissions for 
the WIA Adult and Dislocated Worker programs; planning estimates for PY 
2006 (July 1, 2006-June 30, 2007) for the WIA Youth and Adult programs; 
allotments for the PY 2006 for the WIA Dislocated Worker program; final 
allotments for Employment Service (ES) activities under the Wagner-
Peyser Act for PY 2006; Workforce Information Grants for PY 2006; and 
Work Opportunity Tax Credit and Welfare-to-Work Tax Credit allotments 
for FY 2006.
    The WIA allotments for states and the final allotments for the 
Wagner-Peyser Act are based on provisions 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 American Samoa, Guam, 
Northern Marianas, Palau, and the Virgin Islands) 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, Federal Register Notice. The formula methodology for PY 2006 is 
the same as that used for PY 2000 and is described in the section on 
youth allotments. The data for the outlying areas was obtained from the 
Bureau of the Census and was based on 2000 census surveys for those 
areas conducted either by the Bureau or the outlying areas. Comments 
are invited upon the formula used to allot funds to the outlying areas.

DATES: Comments must be received by May 12, 2006.

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 Program allotments: Haskel 
Lowery at 202-693-3030 or LaSharn Youngblood at 202-693-3606; WIA Adult 
and Dislocated Worker Employment and Training Activities allotments: 
Raymond Palmer at 202-693-3535; and Employment Service final 
allotments: Anthony Dais at 202-693-3046 (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 planning estimates for PY 2006 (July 1, 2006--June 
30, 2007) for Youth Activities and Adult Activities, allotments for PY 
2006 WIA Dislocated Worker Activities, and Wagner-Peyser Act PY 2006 
final allotments, as well as the PY 2006 Workforce Information Grants 
and FY 2006 Work Opportunity Tax Credit and Welfare-to-Work Tax Credit 
allotments. This document provides information on the amount of funds 
to be available during PY 2006 to states with an approved WIA Title I 
and Wagner-Peyser 2-Year Strategic Plan (formally the 5-Year Strategic 
Plan) and information regarding allotments to the outlying areas. The 
allotments are based on the funds appropriated in the Departments of 
Labor, Health and Human Services, and Education, and Related Agencies 
Appropriations Act, 2006, Public Law 109-149, December 30, 2005. The 
Department of Defense, Emergency Supplemental Appropriations to Address 
Hurricanes in the Gulf of Mexico, and Pandemic Influenza Act, 2006, 
Public Law 109-148, Division B, Title III, Chapter 8 (December 30, 
2005), required a government-wide reduction of 1.0 percent to all FY 
2006 discretionary programs, including FY 2006 advance funds for the 
WIA Adult and Dislocated Worker programs appropriated in the FY 2005 
appropriation. Attached are tables listing the rescissions to the FY 
2006 advance funds for the WIA Adult (Attachment II-A) and Dislocated 
Worker (Attachment III-A) programs. Also attached are tables displaying 
the PY 2006 planning estimates for WIA Title I Youth Activities 
(Attachment I) and Adult Activities (Attachment II-B), PY 2006 
allotments for Dislocated Worker Activities (Attachment III-B) and PY 
2006 Wagner-Peyser Act final allotments (Attachment IV), PY 2006 
Workforce Information Grants (Attachment V) and FY 2006 Work 
Opportunity Tax Credit and Welfare-to-Work Tax Credit allotments 
(Attachment VI).
    Youth Activities Planning Estimates. Total funding for PY 2006 WIA 
Youth Activities is $940,500,000. Attachment I includes a breakdown of 
the Youth Activities state planning estimates for PY 2006 for all 
states and outlying areas. In accordance with WIA section 127, before 
determining the amount available for states, the amount available for 
the outlying areas was reserved at 0.25 percent, or $2,351,250 of the 
total amount appropriated for Youth Activities, and 1.5 percent, or 
$14,107,500, was reserved for Native Americans.
    The methodology for distributing funds among outlying areas is not 
specified by WIA, but is at the Secretary's discretion. The methodology 
used is the same as that used since PY 2000, i.e., funds are 
distributed among the remaining areas by formula based on the relative 
share of the 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 for the relative share calculation in the PY 
2006 formula were from 2000 census data from all outlying areas. The 
Marshall Islands and Micronesia no longer receive WIA Title I funding 
pursuant to Public Law 108-188, Compact of Free Association Amendments 
of 2003, (December 17, 2003); instead, these areas now receive funding 
from the Department of Education appropriation. The Compact also 
provides that Palau will continue to receive funding through September 
2007 under WIA Title I funding provisions.
    After determining the amount for the outlying areas and Native 
Americans, the amount available for allotment to the states for PY 2006 
is $924,041,250. The three factors required in WIA for the Youth 
Program state allotment formula use the following data for the PY 2006 
allotments:
    (1) Number of unemployed for areas of substantial unemployment 
(ASUs), averages for the 12-month period, July 2004 through preliminary 
June 2005;
    (2) Number of excess unemployed individuals or the ASU excess 
unemployed individuals (depending on which is higher), averages for the 
same 12-month period used for ASU unemployed data; and
    (3) Number of economically disadvantaged youth (age 16 to 21,

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excluding college students and military), 2000 Census.
    The computation of full state allotments for the youth program is 
delayed while states identify their ASU data for the PY 2006 allotments 
under revised guidance issued by the Employment and Training 
Administration (ETA). The states' initial identification of the PY 2006 
ASUs was based on guidance from ETA and the Bureau of Labor Statistics 
(BLS) that did not allow the use of 2000 decennial census data because 
of problems identified by the Bureau of Census. An analysis of the 
initial state PY 2006 ASU data by ETA revealed a significant impact on 
state funding that was very likely due to the methodology rather than 
changes in unemployment. As a result of this analysis and consideration 
of concerns raised by several states, ETA has issued revised 
instructions to states to identify ASUs using the only data 
satisfactory to ETA for this purpose, the 1990 census data, albeit 
dated. Since revised ASU data are not available in time to compute 
youth allotments before the April 1, 2006, availability of funds, 
states are initially receiving amounts based on the minimum amounts 
states are guaranteed under the WIA formula minimum provisions, 
described below.
    Since the total amount available for states in PY 2006 is below the 
required $1 billion threshold specified in WIA Section 
127(b)(1)(C)(iv)(IV), similar to PY 2005, the WIA additional minimum 
provisions are not applicable. Instead, as required by WIA, the JTPA 
section 262(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 are 
applicable. Consistent with these minimum provisions, states will 
receive amounts equivalent to the higher of: 90 percent of their prior 
year allotment percentage applied to the PY 2006 total funds available 
for states, or, if higher, 0.25 percent of the PY 2006 total funds 
available for states. When revised ASU data are submitted by states and 
certified by BLS, full formula allotments for the states for the WIA 
Youth program will be calculated and announced in the Federal Register, 
and eligible states will receive their remaining formula funds.
    Adult Employment and Training Activities Planning Estimates. The 
total Adult Employment and Training Activities appropriation is 
$864,198,640. Attachment II-B shows the PY 2006 Adult Activities 
planning estimates by state. Like the Youth program, the total 
available for the outlying areas was reserved at 0.25 percent, or 
$2,160,497 of the full amount appropriated for adults. As discussed in 
the Youth Activities paragraph, beginning in PY 2006, WIA funding for 
the Marshall Islands and Micronesia is no longer provided; instead, 
their funding is provided in the Department of Education's 
appropriation. The Adult program funds for grants to the remaining 
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 the Youth 
program. After determining the amount for the outlying areas, the 
amount available for allotments to the states is $862,038,143. The 
three factors for the Adult program state allotment formula use the 
same data as used for the Youth program formula, except that data for 
the number of economically disadvantaged adults (age 22 to 72, 
excluding college students and military) are used. As described above 
for the Youth program, the computation of the full state Adult program 
allotments is delayed while states identify their ASU data for the PY 
2006 allotments under revised guidance issued by ETA. Should final 
allotments not be announced before July 1, ETA will initially provide 
amounts based on the minimum amounts states are guaranteed under the 
WIA formula minimum provisions, described below.
    Since the total amount available for the Adult program for states 
in PY 2006 is below the required $960 million threshold specified in 
WIA Section 132(b)(1)(B)(iv)(IV), similar to PY 2005, the WIA 
additional minimum provisions are not applicable. 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 are applicable. Consistent with these minimum provisions, 
states will receive amounts based on the higher of: 90 percent of their 
prior year allotment percentage applied to the PY 2006 total funds 
available for states, or, if higher, 0.25 percent of the total PY 2006 
funds available for states. When revised ASU data are submitted by 
states and certified by BLS, full formula allotments for the states for 
the WIA Adult program will be calculated and announced in the Federal 
Register, and eligible states will receive their remaining formula 
funds.
    Dislocated Worker Employment and Training Activities Allotments. 
The total Dislocated Worker appropriation is $1,471,903,360. The total 
appropriation includes $1,189,811,360 in formula funds for the states 
and $282,092,000 for the National Reserve for the National Emergency 
Grants, technical assistance and training, demonstration projects 
(including Community-Based Job Training Grants), the outlying areas' 
Dislocated Worker allotments, and additional assistance to eligible 
states. Attachment III-B shows the PY 2006 Dislocated Worker Activities 
fund allotments by state. Like the Youth and Adult programs, the total 
available for the outlying areas was reserved at 0.25 percent, or 
$3,679,758 of the full amount appropriated for Dislocated Worker 
Activities. WIA funding for the Marshall Islands and Micronesia is no 
longer provided, as discussed above. The Dislocated Worker program 
funds for grants to outlying areas, for which the distribution 
methodology is at the Secretary's discretion, were distributed among 
the remaining areas by the same pro rata share as the areas received 
for the PY 2006 WIA Adult Activities program, the same methodology used 
in PY 2005. For the state distribution of formula funds, the three 
formula factors required in WIA use the following data for the PY 2006 
allotments:
    (1) Number of unemployed, averages for the 12-month period, October 
2004 through September 2005;
    (2) Number of excess unemployed, averages for the 12-month period, 
October 2004 through September 2005; and
    (3) Number of long-term unemployed, averages for calendar year 
2004.
    Since the Dislocated Worker program 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 Final Allotments. The Employment Service 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 core employment and 
workforce information services that respond to the needs of the state's 
employers and workers through the One-Stop service delivery system 
established by the state. Total funds appropriated for the Employment 
Service program allotments is $815,882,860. Attachment IV shows the 
Wagner-Peyser Act final allotments for PY 2006 for states and outlying 
areas. 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 averages of the civilian labor force (CLF) and unemployment 
for Calendar Year 2005.

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State planning estimates reflect $18 million being withheld from 
distribution to states to finance postage costs associated with the 
conduct of employment services for PY 2006. 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 section 7 of the Wagner-Peyser Act, ten 
percent of the total sums allotted to each state shall be reserved for 
use by the Governor to provide performance incentives for ES offices; 
services for groups with special needs; and for the extra costs of 
exemplary models for delivering job services.
    Workforce Information Grants. Total PY 2006 funding for Workforce 
Information Grants to states is $33,180,000. The allotment figures for 
each state are listed in Attachment V. Funds are distributed by 
administrative formula, with a reserve of $962,200 for postage and 
$177,323 for Guam and the Virgin Islands. The remaining funds are 
distributed to the states with 40 percent distributed equally to all 
states and 60 percent distributed on each state's share of CLF for the 
12 months ending September 2005.
    Work Opportunity Tax Credit and Welfare-to-Work Tax Credit 
Programs: Grants to States. Total funding for FY 2006 is $17,677,440. 
Attachment VI shows the PY 2006 Work Opportunity Tax Credit and 
Welfare-to-Work Tax Credit (WOTC/WtW) grants by state. After reserving 
$512,646 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 percent stop-loss/120 percent stop-gain from the 
prior year allotment share percentage. The allocation formula is as 
follows:
    (1) 50 percent based on each state's relative share of total FY 
2005 certifications issued for the WOTC/WtW Tax Credit programs;
    (2) 30 percent based on each state's relative share of the CLF for 
twelve months ending September 2005; and
    (3) 20 percent based on each state's relative share of the adult 
recipients of Temporary Assistance for Needy Families (TANF) for FY 
2004.

    Signed at Washington, DC, this 6th day of April, 2006.
Mason M. Bishop,
Deputy Assistant Secretary for Employment and Training.
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[FR Doc. 06-3483 Filed 4-10-05; 8:45am]
BILLING CODE 4510-30-C