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‘‘(A) COMPOSITION
OF
MEASURES.—The 
performance measures established by the Sec-
retary in accordance with paragraph (1) shall 
consist of— 
‘‘(i) core indicators of performance 
specified in subsection (b)(1) and the ex-
pected levels of performance applicable to 
each core indicator of performance, and 
‘‘(ii) additional indicators of perform-
ance specified in subsection (b)(2). 
‘‘(B) CONTINUOUS
IMPROVEMENT.—The 
measures described in subparagraph (A)(i) shall 
be designed to promote continuous improvement 
in performance. 
‘‘(C) EXPECTED
LEVELS
OF
PERFORM-
ANCE.—The Secretary and each grantee shall 
reach agreement on the expected levels of per-
formance for each program year for each of the 
core indicators of performance specified in sub-
section (b)(1). The agreement shall take into 
account the factors described in subparagraphs 
(B) and (D) and other appropriate factors as 
determined by the Secretary, and shall be con-
sistent with the requirements of subparagraph 
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(E). Funds under the grant may not be award-
ed until such agreement is reached. 
‘‘(D) ADJUSTMENT.—The expected levels 
of performance described in subparagraph (C) 
applicable to a grantee shall be adjusted after 
the agreement under subparagraph (C) has 
been reached only with respect to the following 
factors: 
‘‘(i) High rates of unemployment or of 
poverty or welfare participation, in the 
areas served by a grantee, relative to other 
areas of the State or Nation. 
‘‘(ii) Significant downturns in the 
areas served by the grantee or in the na-
tional economy. 
‘‘(iii) Significant numbers or propor-
tions of participants with 1 or more bar-
riers to employment served by a grantee 
relative to grantees serving other areas of 
the State or Nation. 
‘‘(iv) Changes in Federal, State, or 
local minimum wage requirements. 
‘‘(E) PLACEMENT.— 
‘‘(i) LEVEL OF PERFORMANCE.—For 
all grantees, the Secretary shall establish a 
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level of performance of not less than the 
percentage specified in clause (ii) (adjusted 
in accordance with subparagraph (D)) for 
the entry into unsubsidized employment 
core indicator of performance described in 
subsection (b)(1)(A). If a grantee achieved 
a level of performance less than the per-
centage specified in such clause for the 
preceding fiscal year for which results are 
available before the enactment of the Sen-
ior Independence Act of 2006, the Sec-
retary shall provide technical assistance to 
assist such grantee to achieve the applica-
ble percentage specified in such clause. 
‘‘(ii) REQUIRED
PLACEMENT
PER-
CENTAGES.—The minimum percentage for 
the entry into unsubsidized employment 
described in subsection (b)(1)(A) is— 
‘‘(I) 22 percent in fiscal year 
2007; 
‘‘(II) 24 percent in fiscal year 
2008; 
‘‘(III) 26 percent in fiscal year 
2009; 
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‘‘(IV) 28 percent in fiscal year 
2010; and 
‘‘(V) 30 percent in fiscal year 
2011. 
‘‘(3) PERFORMANCE
EVALUATION
OF
GRANT-
EES.—The Secretary shall annually establish na-
tional performance measures for each grantee under 
this title, which shall be applicable to the grantee 
without regard to whether such grantee operates 
such program directly or through contracts, grants, 
or agreements with other entities. The measures 
shall include the core indicators of performance and 
expected level of performance for each such indi-
cator, and the additional indicators of performance. 
In addition, the Secretary shall annually publish the 
actual performance of each grantee with respect 
to— 
‘‘(A) the levels achieved for each of the 
core indicators of performance, compared to ex-
pected levels of performance under paragraph 
(2)(C) (including any adjustments to such levels 
made in accordance with to paragraph (2)(D)); 
and 
‘‘(B) the levels achieved for each of the ad-
ditional indicators of performance. 
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‘‘(4) LIMITATION.—An agreement to be evalu-
ated on the performance measures shall be a re-
quirement for application for, and a condition of, all 
grants authorized by this title. 
‘‘(b) INDICATORS OF PERFORMANCE.— 
‘‘(1) CORE INDICATORS.—The core indicators 
of performance described in subsection (a)(2)(A)(i) 
shall consist of— 
‘‘(A) entry into unsubsidized employment; 
‘‘(B) retention in unsubsidized employment 
for 6 months; 
‘‘(C) earnings; and 
‘‘(D) hours (in the aggregate) of commu-
nity service employment-based training pursu-
ant to subparagraphs (A) and (B)(I) of section 
502(b)(1). 
‘‘(2) ADDITIONAL INDICATORS.—The additional 
indicators of performance described in subsection 
(a)(2)(A)(ii) shall consist of— 
‘‘(A) retention in unsubsidized employment 
for 1 year; 
‘‘(B) the number of eligible individuals 
served, including the number of participating 
individuals described in section 516(2)(A)(ii), 
and 
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