[Federal Register Volume 75, Number 243 (Monday, December 20, 2010)]
[Notices]
[Pages 79419-79423]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-31844]


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DEPARTMENT OF LABOR

Employment and Training Administration


Training and Employment Guidance (TEGL) Letter No. 13-10: Fiscal 
Year (FY) 2011 State Initial Allocations and the Process for Requesting 
Additional Trade Adjustment Assistance (TAA) Program Reserve Funds

AGENCY: Employment and Training Administration, Labor.

ACTION: Notice.

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SUMMARY: The Employment and Training Administration (ETA) of the U.S. 
Department of Labor is publishing, for public information, notice of 
the issuance and availability of TEGL 13-10 entitled, FY 2011 State 
Initial Allocations and the Process for Requesting Additional TAA 
Program Reserve Funds, signed on November 17, 2010, by Jane Oates, 
Assistant Secretary for the Employment & Training Administration.

FOR FURTHER INFORMATION CONTACT: Chris Meservy, 202-693-2806.

SUPPLEMENTARY INFORMATION:

Fiscal Year (FY) 2011 State Initial Allocations and the Process for 
Requesting Additional Trade Adjustment Assistance (TAA) Program Reserve 
Funds

    1. Purpose. To provide States with the formula methodology used in 
developing the FY 2011 initial allocations and to describe the process 
for requesting additional TAA program reserve funds for training, job 
search, and relocation allowances.
    2. References. The Trade and Globalization Adjustment Assistance 
Act of 2009 (TGAAA) (Division B, Title I, Subtitle I of the ``American 
Recovery and Reinvestment Act of 2009'' (Recovery Act), Public Law 
(Pub. L. 111-5) (enacted February 17, 2009); Consolidated Omnibus 
Appropriations Act, 2009, Public Law 111-8 (enacted March 11, 2009); 
the Trade Act of 1974, as amended (Trade Act) (Pub. L. 93-618, as 
amended); Training and Employment Guidance Letter (TEGL) No. 22-08, 
``Operating Instructions for Implementing the Amendments to the Trade 
Act of 1974 Enacted by the Trade and Globalization Adjustment 
Assistance Act of 2009''; Training and Employment Guidance Letter 
(TEGL) No. 22-08, Change 1 ``Change 1 to the Operating Instructions for 
Implementing the Amendments to the Trade Act of 1974 Enacted by the 
Trade and Globalization Adjustment Assistance Act of 2009''; TEGL 6-09, 
``Instructions for Implementing the Revised 2010 Trade Adjustment 
Assistance Trade Activity Participant Report (TAPR)''; TEGL No. 9-09, 
``Fiscal Year 2010 State Initial Allocations and the Process for 
Requesting Additional Trade Adjustment Assistance (TAA) Program Reserve 
Funds''; TEGL No. 9-09, Change 1, ``Fiscal Year 2010 Second 
Distribution of Trade Adjustment Assistance (TAA) Training Funds to 
States''; 20 CFR Part 618 ``Trade Adjustment Assistance; Merit Staffing 
of State Administration and Allocation of Training Funds to States; 
Final Rule,'' (75 FR 16988- 17002, April 2, 2010); TEGL No. 6-09, 
``Instructions for implementing the revised 2010 Trade Adjustment 
Assistance Trade Activity Participant Report (TAPR)''.
    3. Background. On February 17, 2009, President Obama signed the 
Recovery Act into Law. Part of the Recovery Act, the TGAAA reauthorized 
and made substantial changes to the TAA program. The TGAAA amended 
Section 236(a)(2)(A) of the Trade Act to increase the cap on TAA 
training funds from $220 million to $575 million annually in both FY 
2009 and FY 2010 and capped training funds for the first quarter of FY 
2011 (October 1, 2010 through December 31, 2010) at $143,750,000, 
consistent with a projected annual allocation of $575 million under the 
expected reauthorization of the Act. The TGAAA further amended Section 
236(a)(2)(B) and (C) of the Trade Act to:
    <bullet> Require 35, rather than 25 percent of the training funds 
to be held in reserve;
    <bullet> Provide for a ``hold harmless'' of 25, rather than 85 
percent;
    <bullet> Set timelines for the distribution of training funds; and
    <bullet> Establish specific formula factors that the Employment and 
Training Administration (ETA) must consider in making those 
distributions.
    The final regulations that govern these provisions, 20 CFR 
618.900--618.940, went into effect April 2, 2010, with the publication 
of 20 CFR 618 ``Trade Adjustment Assistance; Merit Staffing of State 
Administration and Allocation of Training Funds to States; Final 
Rule.'' Although the Recovery Act reauthorized the TAA program and 
raised the cap on training funds, it did not appropriate any funds for 
the TAA program. Rather, the Consolidated Omnibus Appropriations Act, 
2009, Public Law 111-8, appropriated TAA administrative and program 
funds to the Federal Unemployment Benefits and Allowances (FUBA) 
account. The FY 2010 distributions of funds under TEGL 9-09 were FUBA 
appropriations. The

[[Page 79420]]

FY 2011 distributions will also be FUBA appropriations. Therefore, 
separate tracking and reporting requirements, which apply specifically 
to Recovery Act funds, do not apply to the TAA funds provided to the 
States from this and future FUBA appropriations. However, as discussed 
in TEGL No. 22-08, the TGAAA established new reporting requirements 
specific to the TAA program to increase the transparency and 
accountability of the program. ETA issued additional guidance on those 
requirements in TEGL No. 6-09, ``Instructions for implementing the 
revised 2010 Trade Adjustment Assistance Trade Activity Participant 
Report (TAPR).'' Funding amounts for each State are based upon TAPR 
data that each State submits quarterly.
    4. FY 2011 TAA Training Fund Distribution Process. As noted above, 
the TGAAA increased the cap on TAA training funds from $220 million 
annually to $575 million for both FY 2009 and FY 2010. Under current 
authorization, this cap is set to expire December 31, 2010 and revert 
back to the $220 million level. However, there is a possibility that 
the higher cap will be reauthorized through FY 2011. With this in mind, 
two attachments have been prepared for this TEGL showing the State 
Initial Allocations for FY 2011. The first shows the initial 
allocations with reauthorization at the $220 million level and the 
second attachment shows the initial allocations with reauthorization at 
the $575 million level. For FY 2011, an amount equal to 65 percent of 
the annual training funds is initially distributed to States by formula 
and 35 percent will be held in reserve as required by the amendments 
and 20 CFR 618.910--618.930.
    A. TAA Formula Funds: The initial allocation of 65 percent of 
training funds among the States will follow the four factors set forth 
in the new Section 236(a)(2)(C)(ii) of the Trade Act and explained in 
20 CFR 618.910(f):
    1. Trend in number of workers covered by certifications during the 
most recent four consecutive calendar quarters for which data are 
available;
    2. Trend in number of workers participating in training during the 
most recent four consecutive calendar quarters for which data are 
available;
    3. Number of workers estimated to be participating in training 
during the fiscal year; and
    4. Estimated amount of funding needed to provide approved training 
to such workers during the fiscal year.
    Factor 1 will be established using the most recent four quarters 
(FY 2009 Quarter 4 through FY 2010 Quarter 3) of data for certified 
workers by State, and the quarters will be weighted 40 percent; 30 
percent; 20 percent; and 10 percent, respectively, from the most recent 
to the earliest quarter. This approach will establish a trend, giving 
the most recent quarters a greater impact on each factor than an 
earlier quarter will have.
    Factor 2 will be established using the most recent four quarters 
(FY 2009 Quarter 4 through FY 2010 Quarter 3) of data for workers 
participating in training by State, and the quarters will be weighted 
40 percent; 30 percent; 20 percent; and 10 percent, respectively, from 
the most recent quarter to least recent quarter. As with Factor 1, this 
approach will establish a trend, giving the most recent quarters a 
greater impact on each factor than an earlier quarter will have.
    Factor 3 will be determined by dividing the weighted average number 
of training participants for the State determined in Factor 2 by the 
sum of the weighted averages for all States and multiplying the 
resulting ratio by the projected national average of training 
participants for the fiscal year, using the estimates underlying ETA's 
most recent budget submission or update.
    Factor 4 will be calculated by multiplying the estimated number of 
participants in Factor 3 by the average training cost for the State. 
The average training cost will be calculated by dividing total training 
expenditures for the most recent four quarters by the average number of 
training participants for the same time period.
    Once each of the four factors has been determined for each State, 
under 20 CFR 618.910(f)(3) all four factors will be assigned an equal 
weight. For FY 2011, the weight will be 25 percent of the total for 
each factor.
    Section 236(a)(2)(C)(iii) of the Trade Act includes a hold harmless 
feature. The statute now provides that a State's initial allocation be 
at least 25 percent of the amount the State received in its initial 
allocation for the prior fiscal year. This requirement is codified at 
20 CFR 618.910(c).
    ETA will determine the national total and each State's percentage 
of the national total for each factor. Using each State's percentage of 
each of these weighted factors, ETA will determine the unadjusted 
percentage that the State will receive of the amount available for 
initial allocations. As provided in 20 CFR 618.910(c), (d) and (e), 
allocations under $100,000 will be removed, and the statutory 25 
percent hold harmless factor will be applied, resulting in an adjusted 
FY 2011 allocation for the remaining States. If the program is 
reauthorized at the $575,000,000 level, the percentages for all the 
States will total 100 percent of $373,750,000, which is 65 percent of 
the training cap. If the program reverts back to the $220,000,000 
level, the percentages for all the States will total 100 percent of 
$143,000,000, which is 65 percent of the training cap.
    In those instances where the formula approach would give a State 
less than $100,000, 20 CFR 918.910(e)(2)(i) provides that that State 
will not receive any initial allocation, but may, where needed, request 
TAA reserve funds in accordance with the procedures described in 
Section B. The initial allocations for each State are attached.
    B. TAA Reserve Funds: Funds will not be distributed under the 
funding formula until the funding situation becomes clearer. Until that 
time, States may request reserve funds. Reserve funds will be 
distributed to States in accordance with 20 CFR 618.920 on an as-needed 
basis to provide monies to those States that experience large, 
unexpected layoffs or otherwise have training needs that are not met by 
their initial allocation. These funds must be requested using the ETA-
9117 (OMB No. 1205-0275).
    In order to be eligible for TAA reserve funds, a State must 
demonstrate that at least 50 percent of its training funds have been 
expended or that it needs more funds to meet unusual or unexpected 
events. A State requesting reserve funds also must provide a documented 
estimate of expected funding needs through the end of the fiscal year. 
That estimate must be based on an analysis that includes at least the 
following:
    <bullet> The average cost of training in the State;
    <bullet> The expected number of participants in training through 
the end of the fiscal year; and
    <bullet> The remaining funds the State has available for training.
    C. Job Search and Relocation Allowances: States may also request 
job search and relocation allowances for adversely affected workers who 
have no reasonable expectation of obtaining suitable employment within 
their local commuting areas. These funds must also be requested using 
the ETA-9117 (OMB No. 1205-0275) and may be submitted at any time or in 
combination with a request for reserve training funds.
    D. TAA Program Administration Funds: States will receive an 
additional 15 percent of all supplemental allocation and reserve funds 
for program administration, as provided by Section 235A(a)(1) of the 
Trade Act. Not more than two-thirds of these additional

[[Page 79421]]

funds may be used to cover administrative expenses, and not less than 
one-third of such funds may be used for the purpose of providing 
employment and case management services, as provided by Section 
235A(a)(2) of the Trade Act. Guidance is provided in TEGL No. 22-08. If 
the 2009 Amendments expire, this limitation will change, and additional 
guidance will be provided. The administrative funds will be included 
each time funds are obligated to States by ETA. The program 
administration allocations for each State are also included in the 
attachment.
    E. Employment and Case Management Services Funds: Each State that 
receives FY 2011 TAA funds will receive $350,000 for the purpose of 
providing employment and case management services to TAA participants, 
as provided by Section 235A(b)(1) of the Trade Act. A State that does 
not receive the $350,000 for case management services because it 
received no initial allocation will receive those funds if it 
subsequently receives a reserve funding allocation.
    5. Recapture of TAA Funds. Consistent with the FY 2011 TAA Annual 
Cooperative Financial Agreement, ETA may recapture any funds 
distributed to any State in the same fiscal year as they were given if 
it determines that the State will not expend the funds, but only after 
consultation with, and appropriate notification to, State officials.
    6. Action Requested. States will inform all appropriate staff of 
the contents of these instructions.
    7. Inquiries. States should direct all inquiries to the appropriate 
ETA regional office.
    8. Attachments.
    Attachment A: State Initial Allocations for FY 2011 at the 
$220,000,000 level.
    Attachment B: State Initial Allocations for FY 2011 at the 
$575,000,000 level.

Attachment A

State Initial Allocations for FY 2011 $220,000,000 Level

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                                                      FY 2011
                                                     Training         FY 2011      FY 2011 Case    Total FY 2011
                      State                           Initial     Administrative    Management      TAA Initial
                                                    Allocation      Allotment*         Funds       Allocation**
----------------------------------------------------------------------------------------------------------------
Alabama.........................................      $2,773,203        $415,980        $350,000      $3,539,184
Alaska..........................................               0               0               0               0
Arizona.........................................         807,193         121,079         350,000       1,278,272
Arkansas........................................       2,956,424         443,464         350,000       3,749,887
California......................................       4,673,413         701,012         350,000       5,724,425
Colorado........................................       1,057,290         158,594         350,000       1,565,884
Connecticut.....................................       1,084,126         162,619         350,000       1,596,745
Delaware........................................         114,734          17,210         350,000         481,944
District of Columbia............................               0               0               0               0
Florida.........................................         799,174         119,876         350,000       1,269,050
Georgia.........................................       3,579,640         536,946         350,000       4,466,586
Hawaii..........................................               0               0               0               0
Idaho...........................................       1,996,373         299,456         350,000       2,645,829
Illinois........................................       5,588,352         838,253         350,000       6,776,605
Indiana.........................................       7,595,873       1,139,381         350,000       9,085,254
Iowa............................................       1,816,963         272,544         350,000       2,439,507
Kansas..........................................         341,824          51,274         350,000         743,098
Kentucky........................................       3,763,714         564,557         350,000       4,678,271
Louisiana.......................................         529,744          79,462         350,000         959,206
Maine...........................................       1,245,269         186,790         350,000       1,782,059
Maryland........................................         220,446          33,067         350,000         603,513
Massachusetts...................................       3,287,666         493,150         350,000       4,130,816
Michigan........................................      18,264,050       2,739,608         350,000      21,353,658
Minnesota.......................................       2,420,453         363,068         350,000       3,133,521
Mississippi.....................................         946,417         141,962         350,000       1,438,379
Missouri........................................       4,609,803         691,470         350,000       5,651,273
Montana.........................................         960,493         144,074         350,000       1,454,567
Nebraska........................................         318,660          47,799         350,000         716,459
Nevada..........................................               0               0               0               0
New Hampshire...................................         366,032          54,905         350,000         770,937
New Jersey......................................       1,391,302         208,695         350,000       1,949,997
New Mexico......................................         930,741         139,611         350,000       1,420,353
New York........................................       3,338,590         500,788         350,000       4,189,378
North Carolina..................................      13,865,221       2,079,783         350,000      16,295,004
North Dakota....................................               0               0               0               0
Ohio............................................       7,688,620       1,153,293         350,000       9,191,913
Oklahoma........................................       1,125,346         168,802         350,000       1,644,148
Oregon..........................................       4,734,588         710,188         350,000       5,794,776
Pennsylvania....................................       7,878,820       1,181,823         350,000       9,410,643
Puerto Rico.....................................               0               0               0               0
Rhode Island....................................         968,358         145,254         350,000       1,463,611
South Carolina..................................       4,567,349         685,102         350,000       5,602,451
South Dakota....................................         393,323          58,998         350,000         802,322
Tennessee.......................................       3,176,593         476,489         350,000       4,003,082
Texas...........................................       5,094,477         764,172         350,000       6,208,649
Utah............................................       1,025,948         153,892         350,000       1,529,840
Vermont.........................................         155,564          23,335         350,000         528,898
Virginia........................................       2,926,882         439,032         350,000       3,715,915
Washington......................................       3,767,764         565,165         350,000       4,682,929
West Virginia...................................       1,413,424         212,014         350,000       1,975,437

[[Page 79422]]

 
Wisconsin.......................................       6,439,761         965,964         350,000       7,755,725
Wyoming.........................................               0               0               0               0
                                                 ---------------------------------------------------------------
    U.S. Total..................................    $143,000,000     $21,450,000     $15,750,000    $180,200,000
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* Each State's administrative allotment represents 15% of its FY 2011 base allocation.
** Each State's Case Management funds of $350,000 are included in the line code of Administration, along with
  the 15% of Administrative funds in the Notice of Obligation.
*** Each State's allocation represents the sum of its FY 2011 base allocation and administrative allotment.

Attachment B

State Initial Allocations for FY 2011 $575,000,000 Level

----------------------------------------------------------------------------------------------------------------
                                                      FY 2011
                                                     Training         FY 2010      FY 2011 Case    Total FY 2011
                      State                           Initial     Administrative    Management      TAA Initial
                                                    Allocation      Allotment*         Funds       Allocation**
----------------------------------------------------------------------------------------------------------------
Alabama.........................................      $7,308,595      $1,096,289        $350,000      $8,754,884
Alaska..........................................         166,759          25,014         350,000         541,773
Arizona.........................................       2,332,435         349,865         350,000       3,032,300
Arkansas........................................       8,166,908       1,225,036         350,000       9,741,945
California......................................      11,117,796       1,667,669         350,000      13,135,465
Colorado........................................       2,904,828         435,724         350,000       3,690,552
Connecticut.....................................       3,186,156         477,923         350,000       4,014,079
Delaware........................................         231,659          34,749         350,000         616,408
District of Columbia............................               0               0               0               0
Florida.........................................       2,631,281         394,692         350,000       3,375,973
Georgia.........................................       8,502,423       1,275,363         350,000      10,127,786
Hawaii..........................................               0               0               0               0
Idaho...........................................       5,034,362         755,154         350,000       6,139,516
Illinois........................................      14,329,249       2,149,387         350,000      16,828,636
Indiana.........................................      20,334,273       3,050,141         350,000      23,734,414
Iowa............................................       6,007,033         901,055         350,000       7,258,088
Kansas..........................................         910,531         136,580         350,000       1,397,111
Kentucky........................................       9,807,523       1,471,128         350,000      11,628,652
Louisiana.......................................       1,414,862         212,229         350,000       1,977,091
Maine...........................................       3,860,776         579,116         350,000       4,789,892
Maryland........................................         545,111          81,767         350,000         976,878
Massachusetts...................................       7,502,560       1,125,384         350,000       8,977,944
Michigan........................................      49,373,714       7,406,057         350,000      57,129,772
Minnesota.......................................       6,864,454       1,029,668         350,000       8,244,122
Mississippi.....................................       2,700,710         405,107         350,000       3,455,817
Missouri........................................      11,354,901       1,703,235         350,000      13,408,136
Montana.........................................       2,705,709         405,856         350,000       3,461,566
Nebraska........................................         704,128         105,619         350,000       1,159,748
Nevada..........................................         132,539          19,881         350,000         502,420
New Hampshire...................................         967,638         145,146         350,000       1,462,784
New Jersey......................................       3,082,822         462,423         350,000       3,895,246
New Mexico......................................       2,416,802         362,520         350,000       3,129,322
New York........................................       9,547,195       1,432,079         350,000      11,329,275
North Carolina..................................      33,781,867       5,067,280         350,000      39,199,147
North Dakota....................................         263,801          39,570         350,000         653,372
Ohio............................................      23,054,232       3,458,135         350,000      26,862,367
Oklahoma........................................       2,494,013         374,102         350,000       3,218,115
Oregon..........................................      13,438,965       2,015,845         350,000      15,804,810
Pennsylvania....................................      18,926,976       2,839,046         350,000      22,116,022
Puerto Rico.....................................         120,790          18,119         350,000         488,909
Rhode Island....................................       2,485,796         372,869         350,000       3,208,666
South Carolina..................................      10,625,910       1,593,887         350,000      12,569,797
South Dakota....................................       1,395,998         209,400         350,000       1,955,398
Tennessee.......................................       6,928,333       1,039,250         350,000       8,317,583
Texas...........................................      12,806,484       1,920,973         350,000      15,077,456
Utah............................................       2,970,371         445,556         350,000       3,765,926
Vermont.........................................         455,515          68,327         350,000         873,842
Virginia........................................       8,174,563       1,226,184         350,000       9,750,747
Washington......................................      10,120,896       1,518,134         350,000      11,989,030
West Virginia...................................       3,641,215         546,182         350,000       4,537,397
Wisconsin.......................................      15,918,544       2,387,782         350,000      18,656,325

[[Page 79423]]

 
Wyoming.........................................               0               0               0               0
                                                 ---------------------------------------------------------------
    U.S. Total..................................    $373,750,000     $56,062,500     $17,150,000    $446,962,500
----------------------------------------------------------------------------------------------------------------
* Each State's administrative allotment represents 15% of its FY 2011 base allocation.
** Each State's Case Management funds of $350,000 are included in the line code of Administration, along with
  the 15% of Administrative funds in the Notice of Obligation.
*** Each State's allocation represents the sum of its FY 2011 base allocation and administrative allotment.


    Signed: at Washington, DC, this 14th day of December, 2010.
Jane Oates,
Assistant Secretary for Employment and Training.
[FR Doc. 2010-31844 Filed 12-17-10; 8:45 am]
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