Illinois Administrative Code › Title 56 - LABOR AND EMPLOYMENT › Part 2625 - ECONOMIC DISLOCATION AND WORKER ADJUSTMENT ASSISTANCE › Section 2625.70 - Reallotment of Funds

Current through Register Vol. 48, No. 28, July 12, 2024
Section 303 of the Act contains provisions for the reallotment
				of excess carry-forward from states, as well as a requirement that states
				establish procedures to ensure the availability of funds for deobligation
				should a state have excess carry-forward. The reallotment of funds from states
				will be determined on the basis of an allowable carry-forward which equals 20%
				of the allotment for the previous program year plus funds not expended from the
				year prior to the previous year. The procedure for the reallocation of funds
				within Illinois will be contingent upon Illinois' status vis-a-vis the national
				reallotment process.
a) Procedures
			 When the State Loses Funds Through U.S. DOL Reallotment
1) When Illinois loses funds due to
			 reallotment by the U.S. DOL, the amount of the loss is proportioned according
			 to the amount underspent by the SDAs as a group and by the Department. The
			 determination of funds to be reallotted from the state is made on the basis of
			 funds received by the state as a whole (i.e., funds received by substate areas
			 and the Department). The statewide allowable carry-forward is 20% of the total
			 statewide allotment, and the statewide excess carry-forward is the amount by
			 which the combined carry-forward from both sources exceeds the
			 allowable.
2) Following the
			 determination of this statewide excess, excess carry-forward is calculated
			 separately for the combined substate areas and for the Department, again on the
			 basis of a 20% allowable carry-forward limit. If both have carry-forward in
			 excess of their 20% allowable limit, then the excess carry-forward for each can
			 simply be combined to provide for the state reallotment amount. If one is not
			 in excess of the 20% allowable carry-forward limit, then the total state
			 reallotment amount must be provided by the other.
3) In the event that the Department has
			 carry-forward in excess of its allowable limit, the necessary amount of funds
			 will be deobligated directly.
4) To
			 determine excess carry-forward at the substate level, the following procedures
			 will be adhered to:
A) An amount equal to 15%
			 of the allocation for each SDA will be considered "allowable" carry-forward.
			 Carry-forward above this amount will be considered "excess" carry-forward. The
			 amount of "excess" carry-forward from each SDA will be aggregated. From this
			 "pool" of funds will be deducted any substate share of state funds sent to the
			 U.S. DOL as part of the national reallotment.
B) An SDA expending 85% or more of its total
			 funds available will be eligible to receive funds redistributed from this
			 "pool" of excess carry-forward funds, as adjusted by the results of the U.S.
			 DOL reallotment process.
C) Any
			 funds remaining in this "pool" will then be reallocated to "eligible" SDAs, on
			 the basis of a two-part formula modeled on the federal formula used to reallot
			 funds among the states. In the first step, the relative allocation percentages
			 are calculated for eligible substate areas. Based on these relative
			 percentages, the amount to be reallocated is distributed. However, the amount
			 reallocated to substate areas with unemployment rates at or below the statewide
			 average are taken back and "re-pooled." The relative allocation percentages are
			 then again used to distribute this amount to all "eligible" SDAs. In this
			 manner, SDAs with higher than average unemployment rates are eligible to
			 receive reallocated funds from both distributions, while those with a lower
			 rate of unemployment receive funds only from the second distribution.