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###### Department of Labor

###### Employment and Training Administration

# AGENCY:

Employment and Training Administration, Labor.

# ACTION:

Notice.

# SUMMARY:

This Notice announces states' allotments for PY 2009 for WIA Title I Youth, Adults and Dislocated Worker Activities programs; additional PY 2009 funding from WIA Section 173(e) for eligible states; final allotments for Employment Service (ES) activities under the Wagner-Peyser Act for PY 2009; Workforce Information Grants for PY 2009; and Work Opportunity Tax Credit (WOTC) allotments for FY 2009.

                        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 2009 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.                    

States are expected to spend PY 2009 funds concurrently with Recovery Act funding to increase the availability of services quickly and effectively. The significant investment of funds presents an extraordinary and unique opportunity for the workforce system to advance transformational efforts and demonstrate its full capacity to innovate and implement effective One-Stop service delivery strategies. As states and localities plan how their One-Stop systems will make immediate use of the Recovery Act funds, ETA encourages them to take an expansive view of how the funds can be integrated into efforts to improve the effectiveness of the public workforce system. In this system, the needs of workers and employers are equally important in developing thriving communities where all citizens succeed and businesses prosper. Successful implementation of funding includes not only quick and effective provision of services and training for workers in need, but also leveraging changes in the system's basic operations to develop a strong, invigorated, innovative public workforce system capable of helping enable future economic growth and advancing shared prosperity for all Americans.

In a stronger, more comprehensive workforce investment system, adults move easily between the labor market and education and training in order to advance in their careers and upgrade their contributions to the workplace, while disconnected youth are able to reconnect through multiple pathways to education and training opportunities necessary to enter and advance in the workforce. Adult education, job training, post-secondary education, registered apprenticeship, career advancement and supportive service activities are fully aligned with economic and community development strategies, so as to meet the skill needs of existing and emerging employers and high growth occupations as well as the needs of under-skilled adults. Under such a dual-customer approach, seamless career pathways would be developed and offered, and support services and needs-based payments would be available, making it far easier for young people and adults to advance and persist through progressive levels of the education and job training system as quickly as possible, and gain education and workforce skills of demonstrated value at each level. Education and training at every level would be closely aligned with jobs and industries important to local and regional economies. Every level of education and training would afford students and trainees the ability to advance in school or at work, with assessments and certifications linked to the requirements of the next level of education and employment.

With this infusion of PY 2009 funding, along with the recent release of Recovery Act funds, states and local areas should consider how their funding decisions and implementation activities can help achieve this goal of workforce system transformation. New approaches should be reflected in plans and accomplishments should be documented as this transformation process evolves.

# DATES:

Comments on the formula used to allot funds to the outlying areas must be received by June 12, 2009.

# 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: Leung.Kenneth@dol.gov.*

# 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; 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 2009 for Youth Activities, Adults and Dislocated Worker Activities, and Wagner-Peyser Act PY 2009 final allotments. This document provides information on the amount of funds available during PY 2009 to states with an approved WIA Title I and Wagner-Peyser Act Strategic Plan for PY 2009, and information regarding allotments to the outlying areas. The allotments are based on the funds appropriated in the Omnibus Appropriations Act 2009, Public Law 111-8, March 11, 2009. Attached are tables listing the PY 2009 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 2009 Wagner-Peyser Act final allotments (Attachment V). Also attached are the PY 2009 Workforce Information Grant table (Attachment VI) and the FY 2009 Work Opportunity Tax Credit allotment table (Attachment VII).

## I. Youth Activities Allotments

                    PY 2009 Youth Activities funds under WIA total $924,069,000. Attachment I includes a breakdown of the Youth Activities program allotments for PY 2009 and provides a comparison of these allotments to PY 2008 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                           ( print page 22589)                        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, 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 2008, data for the relative share calculation in the PY 2009 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 2009 is $907,897,792. This total amount was below the required $1 billion threshold specified in section 127(b)(1)(C)(iv)(IV); therefore, as in PY 2008, 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 2009 allotments:                

(1) Number of unemployed for Areas of Substantial Unemployment (ASUs), averages for the 12-month period, July 2007 through June 2008;

(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 2009 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.

## II. Adult Employment and Training Activities Allotments

The total Adult Employment and Training Activities appropriation is $861,540,000. Attachment II shows the PY 2009 Adult Employment and Training Activities allotments and comparison to PY 2008 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 $859,386,150. Like the Youth Activities program, the WIA minimum provisions were not applied for the PY 2009 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 2008 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.

## III. Dislocated Worker Employment and Training Activities Allotments

The total Dislocated Worker appropriation is $1,466,891,000. 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 2009 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 2009 WIA Adult Activities program, the same methodology used in PY 2008. For the state distribution of formula funds, the three formula factors required in WIA use the following data for the PY 2009 allotments:

(1) Number of unemployed, averages for calendar year 2008;

(2) Number of excess unemployed, averages for calendar year 2008; and

(3) Number of long-term unemployed, averages for calendar year 2008.

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.

## IV. 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 National Reserve 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                           ( print page 22590)                        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 2009, three states are eligible for these additional funds, for a total of $7,026,932 (Attachment IV).                

## V. Wagner-Peyser Act Final Allotments

The appropriated level for PY 2009 for ES grants totals $703,576,000. 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 2009 formula allotments were based on each state's share of calendar year 2008 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 $701,860,926 for states, as well as $1,715,074 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, 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. This provision continues in PY 2009.

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.

## VI. Workforce Information Grants

Total PY 2009 funding for Workforce Information Grants to states is $32,000,000. The allotment figures for each state are listed in Attachment VI. Funds are distributed by administrative formula, with a reserve of $176,800 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 2008. 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.

## VII. Work Opportunity Tax Credit Program: Grants to States

Total funding for FY 2009 is $18,520,000. 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 2008 certifications issued for the WOTC program;

(2) 30 percent based on each state's relative share of the CLF for twelve months ending September 2008; and

(3) 20 percent based on each state's relative share of the adult recipients of Temporary Assistance for Needy Families (TANF) for FY 2007.

The final distribution of WOTC funding includes $18,500,000 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 7th day of May 2009.

Douglas F. Small,

Deputy Assistant Secretary.

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[FR Doc. E9-11103 Filed 5-12-09; 8:45 am]

BILLING CODE 4510-FN-C