DOL releases PY 2011 WIA, ES allotments.

On May 10, the U.S. Department of Labor’s Employment and Training Administration (ETA) released a Training and Employment Guidance Letter (TEGL) announcing Program Year (PY) 2011 state allotments for the WIA Title I Adult, Youth, and Dislocated Worker programs; the Employment Service program under Wagner-Peyser; and Workforce Information Grants.

The funds referenced in the TEGL were appropriated under the recent Fiscal Year (FY) 2011 continuing resolution (CR). That legislation included cuts of more than $1 billion to workforce programs under the Departments of Education and Labor - including more than $300 million in cuts to WIA Title I state grants - as well as an across-the-board rescission of 0.2 percent from all PY 2011 appropriations. The TEGL demonstrates the impacts of these cuts on the state level, as well as providing guidance on other provisions relating to the use and availability of WIA funding.

WIA Adult and Dislocated Worker Allotments, Statewide Set Aside

Overall, the FY 2011 CR cut $90.6 million in PY 2011 funding from the WIA Adult program, and about $125.5 in funding from the Dislocated Worker program. The Adult and Dislocated Worker programs each receive two funding allotments in each program year: a “base” allotment, which is available to states from July 1-June 30, and an “advance” allotment that is available to states from October 1-June 30. The TEGL states that the cuts made under the CR (as well as the 0.2 percent rescission) will be taken out of the “base” allocation for these programs. As a result, state base allotments under WIA Adult will be $58.9 million (compared to $149.5 million in PY 2010), while the advance allotment will remain the same as PY 2010 levels at $712 million. For the WIA Dislocated Worker program, the base allotment is reduced to $227.5 million (compared to $353 million in PY 2010), while the advance allotment remains at PY 2010 levels at $1.06 billion.

The CR also included language that reduced the set-aside for statewide activities under these two programs from 15 percent to five percent. Due to a drafting error in the legislation, it was unclear whether this language applied to both the base and advanced funds. The TEGL confirms that the set-aside reduction does apply to the base allotment, but indicates that the Department is still seeking clarification from Congress regarding the impact on the advance allotment and will issue additional guidance on this issue at a later date.

WIA Youth Allotments

The TEGL indicates that total PY 2011 allotments for the WIA Youth program (including the 0.2 percent rescission) will be $825.9 million, a cut of about $98 million compared to PY 2010 levels. The language reducing the governor’s set-aside for statewide activities from 15 percent to five percent also applies to Youth funds; however, because there is only one allotment of WIA Youth funding during a given program year, this reduction in the state set-aside applies to the full WIA Youth allotment in PY 2011. WIA Youth funds will be made available for use by states upon execution of the PY 2011 WIA Annual Funding Agreement. 

Other WIA Provisions

The TEGL indicates that certain provisions that were included in the FY 2010 appropriations bill relating to the use of WIA funds will carry over into FY 2011. The CR extends a provision allowing local boards to transfer up to 30 percent of funds between the Adult and Dislocated Worker programs. In addition, the bill retained a provision that allows local boards to contract with institutions of higher education or other eligible training providers to provide training to multiple participants for high-demand occupations, so long as the contract does not limit customer choice.

Wagner-Peyser Employment Service (ES) Allotments

The CR did not include any funding cuts for the ES, other than the across-the-board rescission. Total PY 2011 allotments are set at $702.2 million, compared to $703.6 million in PY 2010.

Workforce Information Grants

The CR did not include any funding cuts for Workforce Information Grants, other than the across-the-board rescission. Total PY 2011 allotments are set at $31.9 million.