TITLE I—LOCAL COMMUNITY 
JOBS 
SEC. 101. STABILIZATION FUNDING FOR LOCAL JOBS. 
From the amount appropriated pursuant to section 
111, the Secretary, acting through the Employment and 
Training Administration of the Department of Labor and 
in consultation with the Secretary of Housing and Urban 
Development, shall provide funds to States, units of gen-
eral local government, and community-based organizations 
to save and create local jobs through the retention, res-
toration, or expansion of services needed by local commu-
nities. 
SEC. 102. ALLOTMENT FORMULA. 
(a) RESERVATIONS
BY
THE SECRETARY.—Of the 
amount appropriated under section 111 for each fiscal 
year, the Secretary may reserve— 
(1) not more than 1 percent to administer this 
title; and 
(2) not more than 0.5 percent to award grants, 
on a competitive basis, to Indian tribes for purposes 
of this title. 
(b) MAKING FUNDS AVAILABLE FOR ALLOTMENT BY 
THE SECRETARY.—Of the amounts appropriated under 
section 111 and not reserved under subsection (a), the 
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Secretary shall make available for allotment the amounts 
for each fiscal year as follows: 
(1) Seventy percent to entitlement communities, 
of which the Secretary shall make available for allot-
ment— 
(A) 25 percent to each entitlement commu-
nity in an amount which bears the same ratio 
to the total amount made available under this 
subparagraph as the population of the entitle-
ment community bears to the total population 
of all entitlement communities; 
(B) 25 percent to each entitlement commu-
nity in an amount which bears the same ratio 
to the total amount made available under this 
subparagraph as the extent of poverty in the 
entitlement community bears to the extent of 
poverty in all entitlement communities; and 
(C) 50 percent to each entitlement commu-
nity in an amount which bears the same ratio 
to the total amount made available under this 
subparagraph as the number of unemployed in-
dividuals in the entitlement community bears to 
the total number of unemployed individuals in 
all entitlement communities. 
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(2) Thirty percent to States, of which the Sec-
retary shall make available for allotment— 
(A) 25 percent to each State in an amount 
which bears the same ratio to the total amount 
made available under this subparagraph as the 
population of the State bears to the total popu-
lation of all States; 
(B) 25 percent to each State in an amount 
which bears the same ratio to the total amount 
made available under this subparagraph as the 
extent of poverty in the State bears to the ex-
tent of poverty in all States; and 
(C) 50 percent to each State in an amount 
which bears the same ratio to the total amount 
made available under this subparagraph as the 
number of unemployed individuals in the State 
bears to the total number of unemployed indi-
viduals in all States. 
(c) RESERVATION AND ALLOTMENTS BY STATES.— 
(1) RESERVATION.—Of the amount of funds al-
lotted to a State under section 104(c)(2)(A) for each 
fiscal year, a State may reserve not more than 2 
percent for administrative purposes. 
(2) ALLOTMENTS BY STATES.— 
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(A) IN GENERAL.—A State shall provide 
all of the funds allotted to the State under sec-
tion 104(c)(2)(A) that are not reserved under 
paragraph (1) as follows: 
(i) Not more than 50 percent of the 
funds to units of general local government 
located in nonentitlement areas of the 
State to continue to provide employee com-
pensation to employees employed by the 
unit, as of the date of the enactment of 
this Act, in positions that— 
(I) provide local services to the 
public; and 
(II) would otherwise be termi-
nated or reduced as a result of fiscal 
constraints of such unit. 
(ii) Not more than 50 percent of the 
remainder of the funds (after allotting 
funds under clause (i)) to community- 
based organizations to employ individuals 
newly hired or employed under a contract 
entered into after the date of the enact-
ment of this Act to provide services or 
functions that are not customarily provided 
by a unit of general local government lo-
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cated in a nonentitlement area of the State 
where such services or functions will be 
provided by the organization. 
(iii) All of the remainder of the funds 
(after allotting funds under clauses (i) and 
(ii)) to units of general local government 
located in nonentitlement areas of the 
State to provide employee compensation to 
individuals newly hired to carry out the 
local public services described in subclauses 
(I) and (II) of section 103(c)(1)(B)(i) for 
the unit. 
(B) ALLOTMENTS.—In allotting funds 
under subparagraph (A) for a fiscal year, a 
State shall— 
(i) provide to units of general local 
government and community-based organi-
zations located in a non-entitlement area of 
a Congressional district of the State not 
less than an amount of funds that bears 
the same ratio to the total amount made 
available to be allotted to the State under 
subsection (b)(2) for such fiscal year as 
the population of the nonentitlement area 
of the Congressional district bears to the 
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total population of all nonentitlement areas 
of the State; 
(ii) if the total amount of funds allot-
ted by the Secretary to a State under sec-
tion 104(c)(2)(A) on behalf of units of 
general local government and community- 
based organizations located in the non-
entitlement area of a Congressional district 
of the State is less than the amount to be 
provided to the units and organizations 
under clause (i) for such fiscal year, pro-
vide to the units and organizations an 
amount of funds equal to the amount of 
funds so allotted for such fiscal year; and 
(iii) consult with local elected officials 
from among units of general local govern-
ment located in nonentitlement areas of 
such State in determining the method of 
allotment of such funds. 
(d) RULE FOR PROVIDING FUNDS TO COMMUNITY- 
BASED ORGANIZATIONS.—In providing funds under this 
Act to community-based organizations, a unit of general 
local government or State shall, to the extent practicable, 
give priority to community-based organizations that will 
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provide services or functions in accordance with this Act 
to— 
(1) public use microdata areas that have a pov-
erty rate of 12 percent or more; or 
(2) units of general local government that have 
an unemployment rate that is 2 percent higher than 
the national unemployment rate. 
SEC. 103. USES OF FUNDS BY UNITS OF GENERAL LOCAL 
GOVERNMENT AND COMMUNITY-BASED OR-
GANIZATIONS. 
(a) ENTITLEMENT COMMUNITIES.—Of the amount of 
funds received under section 104(c)(1) for each fiscal year, 
a unit of general local government that is an entitlement 
community— 
(1) may use not more than 5 percent for ad-
ministrative purposes; 
(2) may use up to 50 percent of the remainder 
of such funds (after using the funds pursuant to 
paragraph (1)) to continue to provide employee com-
pensation to employees employed by the unit, as of 
the date of the enactment of this Act, in positions 
that— 
(A) provide local services to the public; and 
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(B) would otherwise be terminated or re-
duced as a result of fiscal constraints of such 
unit; 
(3) may provide up to 50 percent of the remain-
der of such funds (after using the funds pursuant to 
paragraph (1) and (2)) to community-based organi-
zation to employ individuals newly hired or employed 
under a contract entered into after the date of the 
enactment of this Act to provide services or func-
tions that are not customarily provided by the unit, 
of which— 
(A) not less than 93 percent shall be used 
to provide employee compensation to such indi-
viduals; 
(B) not more than 5 percent may be used 
by the organization for supportive services; and 
(C) not more than 2 percent may be used 
by the organization for administrative purposes; 
and 
(4) shall use all of the remainder of such funds 
(after using the funds pursuant to paragraphs (1) 
through (3)), to the extent that the unit determines 
that it has a need for additional employees, to pro-
vide employee compensation to individuals newly 
hired by the unit to carry out the local public serv-
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ices described in subclauses (I) and (II) of section 
103(c)(1)(B)(i) for the unit. 
(b) NONENTITLEMENT AREAS.—Of the amount of 
funds received under section 104(c)(2)(B) for each fiscal 
year— 
(1) a unit of general local government that is 
located in a nonentitlement area of a State— 
(A) may use not more than 2 percent for 
administrative purposes; and 
(B) shall use all of the remainder of such 
funds (after using the funds pursuant to sub-
paragraph (A)) to provide employee compensa-
tion to individuals described in clause (i) or (iii) 
of section 102(c)(2)(A), as determined by the 
State; and 
(2) a community-based organization— 
(A) shall use not less than 93 percent to 
provide employee compensation to individuals 
described in section 102(c)(2)(A)(ii); 
(B) may use up to 5 percent for supportive 
services; and 
(C) may use up to 2 percent for adminis-
trative purposes. 
(c) FUNDED POSITIONS; CONSULTATION BY CHIEF 
EXECUTIVE OFFICERS.— 
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(1) FUNDED POSITIONS.— 
(A) 
FULL-TIME, 
FULL-YEAR
EMPLOY-
MENT.— 
(i) IN GENERAL.—An individual hired 
under this title by a unit of general local 
government or community-based organiza-
tion shall fill a position that offers full- 
time, full-year employment. 
(ii) DEFINITIONS.—For purposes of 
this subparagraph— 
(I) the term ‘‘full-time’’ when 
used in relation to employment has 
the meaning already established or, if 
the meaning has not been established, 
determined to be appropriate for pur-
poses of this title, by the unit of gen-
eral local government or community- 
based organization hiring an indi-
vidual under this title; and 
(II) the term ‘‘full-year’’ when 
used in relation to employment means 
a position that provides employment 
for a 12-month period, except that in 
the case of a position that provides a 
service required by a unit or organiza-
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tion for only the duration of a school 
year, the term means a position that 
provides employment for such dura-
tion. 
(B) SERVICES FOR UNITS.—An individual 
hired under this title— 
(i) by a unit of general local govern-
ment, shall fill a position to assist the unit 
in— 
(I) restoring local public services 
terminated within the preceding 5 
years; 
(II) expanding existing local pub-
lic services; or 
(III) retaining local public serv-
ices that would otherwise be reduced 
as a result of the fiscal constraints of 
such unit; or 
(ii) by a community-based organiza-
tion, shall fill a position to provide services 
or functions that are not customarily pro-
vided by a unit of general local government 
where such services or functions will be 
provided by the organization. 
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(2) CONSULTATION BY CHIEF EXECUTIVE OFFI-
CERS.—A chief executive officer of a unit of general 
local government shall consult with the local commu-
nity and labor organizations representing employees 
of such unit in determining the positions that should 
be funded under this title for such unit for each fis-
cal year. 
SEC. 104. STATEMENTS OF NEED; APPROVAL AND ALLOT-
MENT OF FUNDS. 
(a) SUBMISSION OF STATEMENTS; NOTICE OF AL-
LOTMENT AND INTENT.— 
(1) IN GENERAL.— 
(A) NOTICE
OF
ALLOCATION.—The Sec-
retary shall post on a publicly accessible Inter-
net Web site of the Department of Labor, the 
total amount of funds made available for allot-
ment under this title for a fiscal year to each 
unit of general local government that is an enti-
tlement community and each State that is eligi-
ble to receive funds under this title for such fis-
cal year. 
(B) SUBMISSION.—In order to receive 
funds under this title for a fiscal year for which 
funds are appropriated to carry out this title, a 
unit of general local government, community- 
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