[Federal Register Volume 72, Number 66 (Friday, April 6, 2007)]
[Notices]
[Pages 17185-17194]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-6487]


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DEPARTMENT OF LABOR

Employment and Training Administration


Program Year (PY) 2007 Workforce Investment Act (WIA Allotments 
and Additional Funds From WIA Section 173(e) for Adult/Dislocated 
Worker Activities for Eligible States; PY 2007 Wagner-Peyser Act Final 
Allotments; and FY 2007 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 states' allotments for PY 2007 (July 1, 
2007-June 30, 2008) for WIA Title I Youth, Adults and Dislocated Worker 
Activities programs; additional PY 2007 funding from WIA Section 173(e) 
for eligible states; final allotments for Employment Service (ES) 
activities under the Wagner-Peyser Act for PY 2007; and Work 
Opportunity Tax Credit and Welfare-to-Work Tax Credit program 
allotments for FY 2007.
    The WIA allotments for states and the final allotments for the 
Wagner-Peyser Act 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 (American Samoa, Guam, 
Marshall Islands, Micronesia, 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 for PY 2007 is the same as used for PY 2000 and is described in 
the section on Youth Activities program allotments. Comments are 
invited on the formula used to allot funds to the outlying areas.

DATES: Comments on the formula used to allot funds to the outlying 
areas must be received by May 7, 2007.

ADDRESSES: Submit written comments to the Employment and Training 
Administration, Office of Financial and Administrative Management, 200 
Constitution Avenue, 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: 
Haskel Lowery at 202-693-3608 or LaSharn Youngblood at 202-693-3606; 
WIA Adult and Dislocated Worker Activities and ES final allotments: 
Mike Qualter at 202-693-3014.

SUPPLEMENTARY INFORMATION: The Department of Labor (DOL or Department) 
is announcing WIA allotments for PY 2007 (July 1, 2007-June 30, 2008) 
for Youth Activities, Adults and Dislocated Worker Activities, and 
Wagner-Peyser Act PY 2007 final allotments. This document provides 
information on the amount of funds available during PY 2007 to states 
with an approved WIA Title I and Wagner-Peyser Act Strategic Plan for 
PY 2007, and information regarding allotments to the outlying areas. 
The allotments are based on the funds appropriated in the FY 2007 
Continuing Appropriations Resolution, Public Law 110-5, February 15, 
2007. Attached are tables listing the PY 2007 allotments for programs 
under WIA Title I Youth Activities (Attachment I), Adult and Dislocated 
Workers Employment and Training Activities (Attachments II and III, 
respectively), additional assistance under Section 173(e) (Attachment 
IV),

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and the PY 2007 Wagner-Peyser Act final allotments (Attachment V). Also 
attached are tables FY 2007 Work Opportunity Tax Credit and Welfare-to-
Work Tax Credit allotments (Attachment VI).
    Youth Activities Allotments. PY 2007 Youth Activities funds under 
WIA total $940,500,000. Attachment I includes a breakdown of the Youth 
Activities program allotments for PY 2007 and provides a comparison of 
these allotments to PY 2006 Youth Activities allotments for all states, 
outlying areas, Puerto Rico and the District of Columbia. Before 
determining the amount available for states, the total funding 
available for the outlying areas was reserved at 0.25 percent of the 
full amount appropriated for Youth Activities. On December 17, 2003, 
the President signed Public Law 108-188, the Compact of Free 
Association Amendments Act of 2003, which provides for consolidation of 
all funding, including WIA Title I, for the Marshall Islands and 
Micronesia into supplemental funding grants in the Department of 
Education. The Education appropriation for FY 2007 includes funding for 
these supplemental grants; therefore, WIA Title I funds are no longer 
being provided for these two areas. The Compact continues the 
availability of programs previously available to Palau through 
September 30, 2007, including WIA Title I funding provisions. 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 remaining 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. 
As in PY 2006, data for the relative share calculation in the PY 2007 
formula were from 2000 Census data for all outlying areas, obtained 
from the Bureau of the Census (Bureau) and based on 2000 Census surveys 
for those areas conducted either by the Bureau or the outlying areas 
under the guidance of the Bureau. The total amount available for Native 
Americans is 1.5 percent of the total amount for Youth Activities, 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 2007 is $924,041,250. This total amount was below 
the required $1 billion threshold specified in section 
127(b)(1)(C)(iv)(IV); therefore, as in PY 2006, the WIA additional 
minimum provisions were not applied, and, instead, as required by WIA, 
the Job Training Partnership Act (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 2007 allotments:
    (1) Number of unemployed for Areas of Substantial Unemployment 
(ASU's), averages for the 12-month period, July 2005 through June 2006;
    (2) Number of excess unemployed individuals or the ASU excess 
(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, 
excluding college students and military), from the 2000 Census.
    The ASU data for the PY 2007 allotments was identified by the 
states under Employment and Training Administration guidance for PY 
2007 which required states to use special 2000 Census data based on 
households, obtained under contract with the Census Bureau and provided 
to states by the Bureau of Labor Statistics. These special 2000 Census 
data were used to avoid the 2000 Census data processing problem related 
to group quarters data identified last year, and it replaced the 1990 
Census data used by states for identifying ASUs for PY 2006 allotments.

Adult Employment and Training Activities Allotments

    The total Adult Employment and Training Activities appropriation is 
$864,199,000. Attachment II shows the PY 2007 Adult Employment and 
Training Activities allotments and comparison to PY 2006 allotments by 
state. Like the Youth Activities program, the total available for the 
outlying areas was reserved at 0.25 percent of the full amount 
appropriated for Adult Activities. As discussed in the Youth Activities 
paragraph, beginning in PY 2005, WIA funding for the Marshall Islands 
and Micronesia is no longer provided; instead, funding is provided in 
the Department of Education's appropriation. The Adult Activities 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 Youth Activities. After determining the amount for the 
outlying areas, the amount available for allotments to the states is 
$862,038,502. Like the Youth Activities program, the WIA minimum 
provisions were not applied for the PY 2007 allotments because the 
total amount available for the states was below the $960 million 
threshold required for Adult Activities 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 PY 2007 Youth Activities formula, except that data 
from the 2000 Census for the number of economically disadvantaged 
adults (age 22 to 72, excluding college students and military) were 
used.

Dislocated Worker Employment and Training Activities Allotments

    The total Dislocated Worker appropriation is $1,471,903,000. 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 (including Community-
Based Job Training Grants), the outlying areas' Dislocated Worker 
allotments, and additional assistance to eligible states. Attachment 
III shows the PY 2007 Dislocated Worker Activities fund allotments by 
state. Like the Youth and Adult Activities programs, the total 
available for the outlying areas was reserved at 0.25 percent 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 Activities 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 2007 WIA Adult 
Activities program, the same methodology used in PY 2006. For the state 
distribution of formula funds, the three formula factors required in 
WIA use the following data for the PY 2007 allotments:
    (1) Number of unemployed, averages for the 12-month period, October 
2005 through September 2006;

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    (2) Number of excess unemployed, averages for the 12-month period, 
October 2005 through September 2006; and
    (3) Number of long-term unemployed, averages for calendar year 
2005.
    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.

Additional Funding From WIA Section 173(e) for Adult /Dislocated Worker 
Activities for Eligible States

    WIA Section 173(e) provides that up to $15 million from Dislocated 
Workers reserve funds is to be made available annually to certain 
states that receive less funds under the WIA Adult Activities formula 
than they would have received had the JTPA Title II-A Adult program 
formula been in effect. The amount of the grants is based on the 
difference between the WIA and JTPA formula allotments; funds are 
available for grants for up to eight states with the largest 
difference. The additional funding must be used for Adult or Dislocated 
Worker Activities. In PY 2007, five states are eligible for these 
additional funds, for a total of $5,438,783 (Attachment IV).

Wagner-Peyser Act Final Allotments

    The appropriated level for PY 2007 for ES grants totals 
$715,883,000. After reserving $18 million for the postage reserve and 
determining the funding for outlying areas, allotments to states were 
calculated using the formula set forth at section 6 of the Wagner-
Peyser Act (29 U.S.C. 49e). PY 2007 formula allotments were based on 
each state's share of calendar year 2006 monthly averages of the 
civilian labor force (CLF) and unemployment. 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 allotment. 
The set-aside funds were 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 were maintained at 100 percent of their relative share of 
prior year resources. All remaining set-aside funds were 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. The distribution of Wagner-Peyser funds (Attachment V) includes 
$696,181,664 for states, as well as $1,701,196 for outlying areas, and 
a postage reserve of $3,347,139.
    Traditionally, a portion of Wagner-Peyser formula funds have been 
set aside in a reserve to centrally pay for states' postage costs 
associated with the conduct of labor exchange services. Beginning 
October 1, 2007 (FY 2008), all states and outlying areas will be 
required to pay their own postage costs with their formula grants, and 
there will no longer be any postage amounts reserved from the formula 
funds. States were given the option to implement the postage conversion 
earlier than October 1, 2007, at the beginning of any quarter in FY 
2007. In addition to the formula funds, PY 2007 allotments will include 
postage funds applicable to the period of postage conversion 
implementation during PY 2007 as described below.
    The total amount of PY 2007 postage funds for ES activities is 
$18,000,000. Seventy-five percent of this amount will be distributed to 
all states and outlying areas based on their pro rata share of the PY 
2007 formula funds to cover postage conversion implementation which 
begins October 1, 2007 (last three quarters of PY 2007). In addition, 
the early implementer states will be given their pro rata share of the 
postage reserves left to cover the first quarter of PY 2007, thus 
giving them a full year of postage funds. Next year, for PY 2008, there 
will be no postage reserve taken from funds distributed by formula; all 
funds will be distributed by formula and states and outlying areas will 
use their formula grants to cover all postage costs.
    Under section 7 of the Wagner-Peyser Act, 10 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.

Work Opportunity Tax Credit and Welfare-to-Work Tax Credit Programs: 
Grants to States

    Total funding for FY 2007 is $17,677,000. After reserving funds for 
postage and $20,000 for the Virgin Islands, funds were distributed to 
states by administrative formula with a $64,000 minimum allotment and a 
95 percent stop-loss/130 percent stop-gain from the prior year 
allotment share percentage. The allotment formula data factors and 
related percentages used are 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 2006; and
    (3) 20 percent based on each state's relative share of the adult 
recipients of Temporary Assistance for Needy Families (TANF) for FY 
2005.
The final distribution of WOTC funding includes $17,144,367 for states, 
$20,000 for the Virgin Islands, and a postage reserve of $512,633. The 
total allotment distribution by state is displayed in Attachment VI.
    As in the Wagner-Peyser program, the full year amount of postage 
funds will not be held in reserve. However, since this program's funds 
are fiscal year funds and FY 2007 is the transition period for states 
which opted to implement postage conversion earlier than FY 2008, only 
the early implementer states will receive additional postage funds in 
their FY 2007 grant. The additional postage amount for these states 
will be based on their FY 2007 formula pro rata share of the postage 
reserve amount based on their quarter of implementation. In FY 2008, 
there will be no postage reserve taken from funds distributed by 
formula; all funds will be distributed by formula and states will use 
their formula grants to cover all postage costs.

    Signed at Washington, DC, on this 3rd day of April, 2007.
Emily Stover DeRocco,
Assistant Secretary for Employment and Training.

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[FR Doc. E7-6487 Filed 4-5-07; 8:45 am]
BILLING CODE 4510-FN-P