[Federal Register Volume 73, Number 61 (Friday, March 28, 2008)]
[Notices]
[Pages 16721-16723]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-6331]


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DEPARTMENT OF LABOR

Employment and Training Administration


Employment and Training Administration Program Year (PY) 2008 
Workforce Investment Act (WIA) Allotments and Additional Funds from WIA 
Section 173(e) for Adult/Dislocated Worker Activities for Eligible 
States; PY 2008 Wagner-Peyser Act Final Allotments; PY 2008 Workforce 
Information Grants and FY 2008 Work Opportunity Tax Credit Allotments

AGENCY: Employment and Training Administration, Labor.

ACTION: Notice.

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SUMMARY: This Notice announces states' allotments for PY 2008 (July 1, 
2008-June 30, 2009) for WIA Title I Youth, Adults and Dislocated Worker 
Activities programs; additional PY 2008 funding from WIA section 173(e) 
for eligible states; final allotments for Employment Service (ES) 
activities under the Wagner-Peyser Act for PY 2008; Workforce 
Information Grants for PY 2008; and Work Opportunity Tax Credit (WOTC) 
allotments for FY 2008.
    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 2008 is the same as used for PY 2000 and is described in 
the section on Youth

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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 April 28, 2008.

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:
    Mr. Kenneth Leung, (202) 693-3471 (phone), (202) 693-2859 (fax), e-
mail: [email protected].

FOR FURTHER INFORMATION CONTACT: WIA Youth Activities allotments: Evan 
Rosenberg at (202) 693-3593 or LaSharn Youngblood at (202) 693-3606; 
WIA Adult and Dislocated Worker Activities, ES final allotments, and 
WOTC allotments: Mike Qualter at (202)-693-3014 or Bill Goodwin at 
(202) 693-2787; Workforce Information Grant allotments: Anthony Dais at 
(202) 693-2784.

SUPPLEMENTARY INFORMATION: The Department of Labor (DOL or Department) 
is announcing WIA allotments for PY 2008 (July 1, 2007-June 30, 2008) 
for Youth Activities, Adults and Dislocated Worker Activities, and 
Wagner-Peyser Act PY 2008 final allotments. This document provides 
information on the amount of funds available during PY 2008 to states 
with an approved WIA Title I and Wagner-Peyser Act Strategic Plan for 
PY 2008, and information regarding allotments to the outlying areas.
    The allotments are based on the funds appropriated in the 
Consolidated Appropriations Act 2008, Public Law 110-161, December 26, 
2007. Attached are tables listing the PY 2008 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), and the PY 2008 Wagner-Peyser Act final allotments (Attachment V). 
Also attached are the PY 2008 Workforce Information Grant table 
(Attachment VI) and the FY 2008 Work Opportunity Tax Credit allotment 
table (Attachment VII).
    Youth Activities Allotments. PY 2008 Youth Activities funds under 
WIA total $924,069,465. Attachment I includes a breakdown of the Youth 
Activities program allotments for PY 2008 and provides a comparison of 
these allotments to PY 2007 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 Department of Education's appropriations now include 
funding for these supplemental grants; therefore, WIA Title I funds are 
no longer being provided for these two areas. The Compact, as amended 
by the Consolidated Appropriations Act 2008, Division F, section 124, 
continues the availability of programs previously available to Palau 
through September 2009, 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 2007, data for the relative share calculation in the PY 2008 
formula were from 2000 census data for all outlying areas, obtained 
from the Bureau of the Census (Bureau) and are 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 2008 is $907,898,249. This 
total amount was below the required $1 billion threshold specified in 
section 127(b)(1)(C)(iv)(IV); therefore, as in PY 2007, 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 2008 
allotments:
    (1) Number of unemployed for Areas of Substantial Unemployment 
(ASU's), averages for the 12-month period, July 2006 through June 2007;
    (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 special 2000 Census 
calculations.
The ASU data for the PY 2008 allotments was identified by the states 
using special 2000 Census data based on households, obtained under 
Employment and Training Administration contract with the Census Bureau 
and provided to states by the Bureau of Labor Statistics.
    Adult Employment and Training Activities Allotments. The total 
Adult Employment and Training Activities appropriation is $861,540,083. 
Attachment II shows the PY 2008 Adult Employment and Training 
Activities allotments and comparison to PY 2007 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 section, 
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 
$859,386,233. Like the Youth Activities program, the WIA minimum 
provisions were not applied for the PY 2008 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

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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 $1,464,707,055. 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 
2008 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 2008 WIA Adult Activities 
program, the same methodology used in PY 2007. For the state 
distribution of formula funds, the three formula factors required in 
WIA use the following data for the PY 2008 allotments:
    (1) Number of unemployed, averages for the 12-month period, October 
2006 through September 2007;
    (2) Number of excess unemployed, averages for the 12-month period, 
October 2006 through September 2007; and
    (3) Number of long-term unemployed, averages for calendar year 
2006. 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 2008, two states are eligible 
for these additional funds, for a total of $1,777,266 (Attachment IV).
    Wagner-Peyser Act Final Allotments. The appropriated level for PY 
2008 for ES grants totals $703,376,524. After 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 2008 formula allotments were based on each state's share of 
calendar year 2007 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 Act funds (Attachment V) includes 
$701,661,936 for states, as well as $1,714,588 for outlying areas.
    Traditionally, a portion of Wagner-Peyser Act formula funds have 
been set aside in a reserve to pay centrally for states' postage costs 
associated with the conduct of labor exchange services. Beginning 
October 1, 2007 (FY 2008), states and outlying areas were required to 
pay for their own postage costs with their formula grants. 
Consequently, beginning with PY 2008, there is no longer a postage 
reserve taken off-the-top from funds distributed by formula, and all 
funds are now distributed by formula.
    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.
    Workforce Information Grants. Total PY 2008 funding for Workforce 
Information Grants to states is $31,863,448. The allotment figures for 
each state are listed in Attachment VI. Funds are distributed by 
administrative formula, with a reserve of $176,472 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 
based on each state's share of CLF for the 12 months ending September 
2007. As in the Wagner-Peyser program, there is no longer a postage 
reserve taken from funds distributed by formula. Instead, all funds are 
distributed by formula and all states will use their formula grants to 
cover postage costs.
    Work Opportunity Tax Credit Program: Grants to States. Total 
funding for FY 2008 is $17,368,183. After reserving $20,000 for the 
Virgin Islands, funds were distributed to states by administrative 
formula with a $66,000 minimum allotment and a 95 percent stop-loss/120 
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 
2007 certifications issued for the WOTC program;
    (2) 30 percent based on each state's relative share of the CLF for 
twelve months ending September 2007; and
    (3) 20 percent based on each state's relative share of the adult 
recipients of Temporary Assistance for Needy Families (TANF) for FY 
2006.
    The final distribution of WOTC funding includes $17,348,183 for 
states and $20,000 for the Virgin Islands. As in the Wagner-Peyser Act 
program, there is no longer a postage reserve taken from funds 
distributed by formula. Instead, all funds are distributed by formula 
and all states will use their formula grants to cover postage costs. 
The total allotment distribution by state is displayed in Attachment 
VII.

    Signed: at Washington, DC on this 20th day of March, 2008.
Brent R. Orrell,
Acting Assistant Secretary.
[FR Doc. E8-6331 Filed 3-27-08; 8:45 am]
BILLING CODE 4510-FN-P