[Federal Register Volume 82, Number 64 (Wednesday, April 5, 2017)]
[Notices]
[Pages 16624-16627]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-06779]


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DEPARTMENT OF LABOR

Employment and Training Administration


Notice on Reallotment of Workforce Innovation Opportunity Act 
(WIOA) Title I Formula Allotted Funds for Dislocated Worker Activities 
for Program Year (PY) 2016

AGENCY: Employment and Training Administration (ETA), Labor.

ACTION: Notice.

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SUMMARY: The Workforce Innovation Opportunity Act (WIOA), requires the 
Secretary of Labor (Secretary) to conduct reallotment of certain WIOA 
formula allotted funds based on ETA 9130 financial reports submitted by 
states as of the end of the prior program year (PY). This notice 
publishes the dislocated worker PY 2016 funds for recapture by state 
and the amount to be reallotted to eligible states.

DATES: This notice is effective April 5, 2017.

FOR FURTHER INFORMATION CONTACT: Ms. Amanda Ahlstrand, Administrator, 
U.S. Department of Labor, Office of Workforce Investment, Employment 
and Training Administration, Room C-4526, 200 Constitution Avenue NW., 
Washington, DC. Telephone (202) 693-3052 (this is not a toll-free 
number) or fax (202) 693-3981.

SUPPLEMENTARY INFORMATION: In the Fiscal Year (FY) 2016 Appropriations 
Act, Congress appropriated WIOA PY 2016 funds in two portions: (1) 
Funds available for obligation July 1, 2016 (i.e., PY 2016 ``base'' 
funds), and (2) funds available for obligation October 1, 2016 (i.e., 
Fiscal Year (FY) 2017 ``advance'' funds). Together, these two portions 
make up the complete PY 2016 WIOA funding. Training and Employment 
Guidance Letter No. 17-15 announced WIOA allotments based on this 
appropriation and alerted states to the recapture and reallotment of 
funds' provisions, as required under WIOA Section 132(c). This section 
of WIOA requires the Secretary of Labor (Secretary) to conduct 
reallotment of excess unobligated WIOA Adult, Youth, and Dislocated 
Worker formula funds based on ETA 9130 financial reports submitted by 
states at the end of the prior program year (i.e., PY 2015).
    WIOA regulations at 20 CFR 693.135 describe the procedures the 
Secretary uses for recapture and reallotment of funds. ETA will not 
recapture any PY 2016 funds for the Adult and Youth programs because 
there are no states where PY 2015 unobligated funds exceed the 
statutory requirements of 20 percent of state allotted funds. However, 
for the Dislocated Worker program, Kentucky had unobligated PY 2015 
funds in excess of 20 percent of its allotment. Therefore, ETA will 
recapture a total of $805,082 of PY 2016 funding from Kentucky and 
reallot those funds to the remaining eligible states, as required by 
WIOA Section 132(c).
    ETA will issue a Notice of Award to the states to reflect the 
recapture and reallotment of these funds. The adjustment of funds will 
be made to the FY 2017 advance portion of the PY 2016 allotments, which 
ETA issued in October 2016. The attached tables display the net changes 
to PY 2016 formula allotments and a description of the reallotment 
methodology.
    WIOA and its implementing regulations do not provide specific 
requirements by which states must distribute realloted funds, so states 
have flexibility to determine the methodology used.
    For any state subject to recapture of funds, WIOA Section 132(c)(5) 
requires the Governor to prescribe equitable procedures for reacquiring 
funds from the state and local areas.
    As mentioned, the recapture/reallotment adjustments will be made to 
the FY 2017 advance portion of the PY 2016 allotment. Therefore, for 
reporting purposes, states must reflect the recapture/reallotment 
amount (decrease or increase) in the ``Total Federal Funds Authorized'' 
line of any affected FY 2017 ETA 9130 financial reports (State 
Dislocated Worker Activities, Statewide Rapid Response, Local 
Dislocated Worker Activities) in a manner consistent with the method of 
distribution of these amounts to state and local areas used by the 
state. The state must include an explanation of the

[[Page 16625]]

adjustment in the remarks section of the adjusted reports.

I. Attachment A

             U.S. Department of Labor Employment and Training Administration WIOA Dislocated Worker Activities PY 2016 Reallotment to States
                                                                      [02/08/2017]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              Calculating reallotment amount                     Impact on PY 2016 allotments
                                                     ---------------------------------------------------------------------------------------------------
                                                                                        Reallotment
                                                          Excess         Eligible       amount for
                                                      unobligated PY    states' PY       eligible      Total original     Recapture/
                                                       2015 funds to     2015 \1\      states (based       PY 2016        reallotment   Revised total PY
                                                       be recaptured    dislocated      on eligible      allotments      adjustment to   2016 allotments
                                                       from PY 2016       worker       states' share       before           PY 2016
                                                           funds        allotments      of PY 2015       reallotment      allotments
                                                                                        allotments)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Alabama.............................................              $0     $15,012,219         $12,128       $16,427,975         $12,128       $16,440,103
Alaska..............................................               0       2,184,119           1,765         2,854,009           1,765         2,855,774
Arizona **..........................................               0      22,511,715          18,187        25,029,051          18,187        25,047,238
Arkansas............................................               0       8,052,059           6,505         7,757,044           6,505         7,763,549
California..........................................               0     164,063,131         132,548       169,644,376         132,548       169,776,924
Colorado............................................               0      13,622,336          11,006        12,323,381          11,006        12,334,387
Connecticut.........................................               0      13,612,474          10,998        14,353,697          10,998        14,364,695
Delaware............................................               0       2,596,904           2,098         2,349,277           2,098         2,351,375
District of Columbia................................               0       3,443,627           2,782         4,499,821           2,782         4,502,603
Florida.............................................               0      61,786,732          49,918        65,053,785          49,918        65,103,703
Georgia.............................................               0      39,981,701          32,301        40,521,426          32,301        40,553,727
Hawaii..............................................               0       1,931,277           1,560         1,894,161           1,560         1,895,721
Idaho...............................................               0       2,636,879           2,130         2,385,440           2,130         2,387,570
Illinois............................................               0      58,325,151          47,121        52,763,567          47,121        52,810,688
Indiana.............................................               0      17,611,408          14,228        17,062,801          14,228        17,077,029
Iowa................................................               0       4,426,239           3,576         4,004,176           3,576         4,007,752
Kansas..............................................               0       4,682,959           3,783         4,609,831           3,783         4,613,614
Kentucky............................................         805,082               0               0        14,673,688       (805,082)        13,868,606
Louisiana...........................................               0       9,215,660           7,445        12,042,192           7,445        12,049,637
Maine...............................................               0       3,592,396           2,902         3,249,844           2,902         3,252,746
Maryland............................................               0      17,549,612          14,178        18,580,386          14,178        18,594,564
Massachusetts.......................................               0      21,265,196          17,180        19,237,457          17,180        19,254,637
Michigan............................................               0      40,080,962          32,382        36,259,049          32,382        36,291,431
Minnesota...........................................               0       8,332,420           6,732         7,537,884           6,732         7,544,616
Mississippi.........................................               0      11,047,184           8,925        11,826,808           8,925        11,835,733
Missouri............................................               0      18,476,297          14,927        17,142,075          14,927        17,157,002
Montana.............................................               0       1,699,458           1,373         1,537,406           1,373         1,538,779
Nebraska............................................               0       2,016,308           1,629         1,824,043           1,629         1,825,672
Nevada..............................................               0      13,272,377          10,723        14,417,704          10,723        14,428,427
New Hampshire.......................................               0       2,355,019           1,903         2,130,457           1,903         2,132,360
New Jersey..........................................               0      33,968,534          27,443        38,809,709          27,443        38,837,152
New Mexico **.......................................               0       6,691,816           5,406         7,937,300           5,406         7,942,706
New York............................................               0      69,009,253          55,753        62,428,888          55,753        62,484,641
North Carolina......................................               0      31,698,026          25,609        31,022,721          25,609        31,048,330
North Dakota........................................               0         566,170             457           728,444             457           728,901
Ohio................................................               0      33,758,857          27,274        30,539,787          27,274        30,567,061
Oklahoma............................................               0       5,943,501           4,802         5,376,760           4,802         5,381,562
Oregon..............................................               0      13,672,401          11,046        14,140,167          11,046        14,151,213
Pennsylvania........................................               0      37,184,902          30,042        36,591,154          30,042        36,621,196
Puerto Rico.........................................               0      20,357,210          16,447        25,824,090          16,447        25,840,537
Rhode Island........................................               0       5,533,256           4,470         5,005,633           4,470         5,010,103
South Carolina......................................               0      12,481,973          10,084        16,310,315          10,084        16,320,399
South Dakota........................................               0         856,158             692         1,070,734             692         1,071,426
Tennessee...........................................               0      21,507,643          17,376        23,146,617          17,376        23,163,993
Texas...............................................               0      55,598,809          44,919        50,297,194          44,919        50,342,113
Utah **.............................................               0       2,963,244           2,394         3,143,067           2,394         3,145,461
Vermont.............................................               0         806,732             652           890,075             652           890,727
Virginia............................................               0      17,685,631          14,288        16,945,520          14,288        16,959,808
Washington..........................................               0      19,533,856          15,782        22,462,284          15,782        22,478,066
West Virginia.......................................               0       4,814,588           3,890         6,291,269           3,890         6,295,159
Wisconsin...........................................               0      15,763,228          12,735        14,260,128          12,735        14,272,863
Wyoming.............................................               0         728,014             588           740,333             588           740,921
                                                     ---------------------------------------------------------------------------------------------------
    State total.....................................         805,082     996,507,621         805,082     1,017,955,000               0     1,017,955,000
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** Includes Navajo Nation.
\1\ PY 2015 allotment amounts are used to determine the reallotment amount eligible states receive of the recaptured amount.


[[Page 16626]]

II. Attachment B

                  U.S. Department of Labor, Employment and Training Administration, WIOA Dislocated Worker Activities, PY 2016 Revised Allotments With Reallotment--PY/FY Split
                                                                                          [01/27/2017]
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                                                                         Total allotment                              Available 7/1/16                            Available 10/1/16
                                                          --------------------------------------------------------------------------------------------------------------------------------------
                                                                            Recapture/                                   Recapture/                                   Recapture/
                                                              Original     reallotment      Revised        Original     reallotment      Revised        Original     reallotment      Revised
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Alabama..................................................      16,427,975      12,128       16,440,103       2,595,993  ...........       2,595,993      13,831,982      12,128       13,844,110
Alaska...................................................       2,854,009       1,765        2,855,774         450,998  ...........         450,998       2,403,011       1,765        2,404,776
Arizona *................................................      25,029,051      18,187       25,047,238       3,955,158  ...........       3,955,158      21,073,893      18,187       21,092,080
Arkansas.................................................       7,757,044       6,505        7,763,549       1,225,789  ...........       1,225,789       6,531,255       6,505        6,537,760
California...............................................     169,644,376     132,548      169,776,924      26,807,663  ...........      26,807,663     142,836,713     132,548      142,969,261
Colorado.................................................      12,323,381      11,006       12,334,387       1,947,374  ...........       1,947,374      10,376,007      11,006       10,387,013
Connecticut..............................................      14,353,697      10,998       14,364,695       2,268,210  ...........       2,268,210      12,085,487      10,998       12,096,485
Delaware.................................................       2,349,277       2,098        2,351,375         371,239  ...........         371,239       1,978,038       2,098        1,980,136
District of Columbia.....................................       4,499,821       2,782        4,502,603         711,074  ...........         711,074       3,788,747       2,782        3,791,529
Florida..................................................      65,053,785      49,918       65,103,703      10,279,975  ...........      10,279,975      54,773,810      49,918       54,823,728
Georgia..................................................      40,521,426      32,301       40,553,727       6,403,305  ...........       6,403,305      34,118,121      32,301       34,150,422
Hawaii...................................................       1,894,161       1,560        1,895,721         299,320  ...........         299,320       1,594,841       1,560        1,596,401
Idaho....................................................       2,385,440       2,130        2,387,570         376,954  ...........         376,954       2,008,486       2,130        2,010,616
Illinois.................................................      52,763,567      47,121       52,810,688       8,337,841  ...........       8,337,841      44,425,726      47,121       44,472,847
Indiana..................................................      17,062,801      14,228       17,077,029       2,696,310  ...........       2,696,310      14,366,491      14,228       14,380,719
Iowa.....................................................       4,004,176       3,576        4,007,752         632,751  ...........         632,751       3,371,425       3,576        3,375,001
Kansas...................................................       4,609,831       3,783        4,613,614         728,458  ...........         728,458       3,881,373       3,783        3,885,156
Kentucky.................................................      14,673,688   (805,082)       13,868,606       2,318,776  ...........       2,318,776      12,354,912   (805,082)       11,549,830
Louisiana................................................      12,042,192       7,445       12,049,637       1,902,940  ...........       1,902,940      10,139,252       7,445       10,146,697
Maine....................................................       3,249,844       2,902        3,252,746         513,549  ...........         513,549       2,736,295       2,902        2,739,197
Maryland.................................................      18,580,386      14,178       18,594,564       2,936,123  ...........       2,936,123      15,644,263      14,178       15,658,441
Massachusetts............................................      19,237,457      17,180       19,254,637       3,039,955  ...........       3,039,955      16,197,502      17,180       16,214,682
Michigan.................................................      36,259,049      32,382       36,291,431       5,729,753  ...........       5,729,753      30,529,296      32,382       30,561,678
Minnesota................................................       7,537,884       6,732        7,544,616       1,191,157  ...........       1,191,157       6,346,727       6,732        6,353,459
Mississippi..............................................      11,826,808       8,925       11,835,733       1,868,904  ...........       1,868,904       9,957,904       8,925        9,966,829
Missouri.................................................      17,142,075      14,927       17,157,002       2,708,837  ...........       2,708,837      14,433,238      14,927       14,448,165
Montana..................................................       1,537,406       1,373        1,538,779         242,945  ...........         242,945       1,294,461       1,373        1,295,834
Nebraska.................................................       1,824,043       1,629        1,825,672         288,240  ...........         288,240       1,535,803       1,629        1,537,432
Nevada...................................................      14,417,704      10,723       14,428,427       2,278,325  ...........       2,278,325      12,139,379      10,723       12,150,102
New Hampshire............................................       2,130,457       1,903        2,132,360         336,661  ...........         336,661       1,793,796       1,903        1,795,699
New Jersey...............................................      38,809,709      27,443       38,837,152       6,132,815  ...........       6,132,815      32,676,894      27,443       32,704,337
New Mexico *.............................................       7,937,300       5,406        7,942,706       1,254,274  ...........       1,254,274       6,683,026       5,406        6,688,432
New York.................................................      62,428,888      55,753       62,484,641       9,865,182  ...........       9,865,182      52,563,706      55,753       52,619,459
North Carolina...........................................      31,022,721      25,609       31,048,330       4,902,294  ...........       4,902,294      26,120,427      25,609       26,146,036
North Dakota.............................................         728,444         457          728,901         115,111  ...........         115,111         613,333         457          613,790
Ohio.....................................................      30,539,787      27,274       30,567,061       4,825,980  ...........       4,825,980      25,713,807      27,274       25,741,081
Oklahoma.................................................       5,376,760       4,802        5,381,562         849,650  ...........         849,650       4,527,110       4,802        4,531,912
Oregon...................................................      14,140,167      11,046       14,151,213       2,234,467  ...........       2,234,467      11,905,700      11,046       11,916,746
Pennsylvania.............................................      36,591,154      30,042       36,621,196       5,782,233  ...........       5,782,233      30,808,921      30,042       30,838,963
Puerto Rico..............................................      25,824,090      16,447       25,840,537       4,080,792  ...........       4,080,792      21,743,298      16,447       21,759,745
Rhode Island.............................................       5,005,633       4,470        5,010,103         791,004  ...........         791,004       4,214,629       4,470        4,219,099
South Carolina...........................................      16,310,315      10,084       16,320,399       2,577,400  ...........       2,577,400      13,732,915      10,084       13,742,999
South Dakota.............................................       1,070,734         692        1,071,426         169,200  ...........         169,200         901,534         692          902,226
Tennessee................................................      23,146,617      17,376       23,163,993       3,657,691  ...........       3,657,691      19,488,926      17,376       19,506,302
Texas....................................................      50,297,194      44,919       50,342,113       7,948,098  ...........       7,948,098      42,349,096      44,919       42,394,015
Utah *...................................................       3,143,067       2,394        3,145,461         496,676  ...........         496,676       2,646,391       2,394        2,648,785
Vermont..................................................         890,075         652          890,727         140,652  ...........         140,652         749,423         652          750,075
Virginia.................................................      16,945,520      14,288       16,959,808       2,677,777  ...........       2,677,777      14,267,743      14,288       14,282,031
Washington...............................................      22,462,284      15,782       22,478,066       3,549,551  ...........       3,549,551      18,912,733      15,782       18,928,515
West Virginia............................................       6,291,269       3,890        6,295,159         994,163  ...........         994,163       5,297,106       3,890        5,300,996
Wisconsin................................................      14,260,128      12,735       14,272,863       2,253,424  ...........       2,253,424      12,006,704      12,735       12,019,439
Wyoming..................................................         740,333         588          740,921         116,989  ...........         116,989         623,344         588          623,932
                                                          --------------------------------------------------------------------------------------------------------------------------------------
    State Total..........................................   1,017,955,000  ...........   1,017,955,000     160,860,000  ...........     160,860,000     857,095,000  ...........     857,095,000
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
* Includes funds allocated to the Navajo Nation.

III. Attachment C

Dislocated Worker (DW) State Formula PY 2016 Reallotment Methodology

    Reallotment Summary: This year the Employment and Training 
Administration (ETA) analyzed Dislocated Worker ETA 9130 financial 
reports from the June 30, 2016 reporting period for funds provided to 
states in PY 2015, to determine if any state had unobligated funds in 
excess of 20 percent of their PY 2015 allotment amount. If so, ETA will 
recapture that amount from PY 2016 funds and reallot the recaptured 
funds among eligible states.
     Source Data: ETA 9130 financial reports.
     Programs: State Dislocated Worker, Statewide Rapid 
Response, Local Dislocated Worker.
     Period: June 30, 2016.
     Years covered: PY 2015 and FY 2016.

Reallotment Calculation Process

    1. Determine each state's unobligated balance: ETA computes the 
state's total amount of PY 2015 state obligations (including FY 2016 
funds) for the DW program. State obligations are the sum of DW 
statewide activities obligations, Statewide Rapid Response obligations, 
and 100 percent of what the state authorizes for DW local activities 
(which includes program and administrative funds). To determine the

[[Page 16627]]

unobligated balance for the DW program, ETA subtracts the total DW 
obligations amount from the state's total PY 2015 DW allotment (Note: 
for this process, ETA adds DW allotted funds transferred to the Navajo 
Nation back to Arizona, New Mexico, and Utah local DW authorized 
amounts).
    2. Excluding state administrative costs: Section 683.135 of the 
regulations provides that the recapture calculations exclude the 
reserve for state administration which is part of the DW statewide 
activities. States do not report data on state administrative amounts 
authorized and obligated on the ETA 9130 financial reports. In the 
preliminary calculation, to determine states potentially liable for 
recapture, ETA estimates the DW portion of the state administrative 
amount authorized by calculating the five percent maximum amount for 
state DW administrative costs using the DW state allotment amounts 
(excluding any recapture/reallotment that occurred). ETA treats 100 
percent of the state's estimated amount authorized for administration 
as obligated, although the estimate of state administration obligations 
is limited by reported statewide activities obligations overall.
    3. Follow-up with states potentially liable for recapture: ETA 
requests that those states potentially liable for recapture provide 
additional data on state administrative amounts which are not regularly 
reported on the PY 2015 and FY 2016 statewide activities reports. The 
additional information requested includes the amount of statewide 
activities funds the state authorized and obligated for state 
administration as of June 30, 2016. If a state provides actual state DW 
administrative costs, authorized and obligated, in the comments section 
of revised ETA 9130 reports, this data replaces the estimates. Based on 
the requested actual data submitted by potentially liable states on 
revised reports, ETA reduces the DW total allotment for these states by 
the amount states indicate they authorized for state administrative 
costs. Likewise, ETA reduces the DW total obligations for these states 
by the portion actually obligated for state administration.
    4. Recapture calculation: States (including those adjusted by 
actual state administrative data) with unobligated balances exceeding 
20 percent of the total PY 2015 DW allotment amount (including PY 2015 
``base'' funds and FY 2016 ``advance'' funds) will have their PY 2016 
DW funding (from the FY 2017 ``advance'' portion) reduced (recaptured) 
by the amount of the excess.
    5. Reallotment calculation: Finally, states with unobligated 
balances which do not exceed 20 percent (eligible states) will receive 
a share of the total recaptured amount (based on their share of the 
total PY 2015 (including their PY 2015 ``base'' and FY 2016 ``advance'' 
amount DW allotments) in their PY 2016 DW funding (in the FY 2017 
``advance'' portion).

    Signed at Washington, DC, this March 15, 2017.
Byron Zuidema,
Deputy Assistant Secretary for the Employment and Training 
Administration.
[FR Doc. 2017-06779 Filed 4-4-17; 8:45 am]
 BILLING CODE 4510-30-P