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Ohio Laws and Rules
[This rule designated an internal management rule]
(A) The Workforce Investment Act (WIA) allocation distribution provides funding for workforce development activities related to youth, adults, dislocated workers, rapid response and other grants related to Native Americans, migrant and seasonal farm workers, veterans, technical assistance, and national emergency grants. These allocations provide funds to WIA areas to assist in the delivery of allowable services.
The requirements and allowable expenditures found in this rule apply only to the formulary allocations and waivers approved by the United States department of labor (DOL). They are not applicable to other funding streams, including, but not limited to, those found in the American Recovery and Reinvestment Act of 2009.
(B) These allocations are composed of one hundred per cent federal funds. Should the state receive a rescission of funds from the DOL, the state will determine the level of adjustments needed to comply with the rescission.
(C) Funds are authorized for expenditure through a grant agreement entered into on a WIA program year (PY) and/or a federal fiscal year (FFY) basis. PY funds are available for expenditure on July first. FFY funds are available for expenditure on October first. At the state level, funds are available for expenditure during the current PY and the two succeeding PYs. For WIA areas, funds are available for the original year of appropriation plus one succeeding year.
(D) Pursuant to section 111 of the Workforce Investment Act of 1998, Ohio will use the formula defined in the Workforce Investment Act of 1998, and in accordance with the state workforce policy board, Ohio’s state plan, and the governor, for WIA allocation methodology for WIA Title I programs. Effective at the end of the second full FFY after the date on which a WIA area is designated under section 116 of the Workforce Investment Act of 1998, the WIA area shall not receive an allocation percentage for an FFY that is less than ninety per cent of the average allocation percentage of the WIA area for the two preceding FFYs. Amounts necessary for increasing such allocations to local areas to comply with the preceding sentence shall be obtained by proportionately reducing the allocations to be made to other WIA areas under this paragraph. Funds are allocated on the basis of a formula prescribed by the governor that distributes funds in a manner that addresses the state’s worker readjustment assistance needs. Funding streams will be allocated according to the following:
(1) Youth funding stream:
(a) One-third of the funds shall be allotted on the basis of the relative number of unemployed individuals in areas of substantial unemployment in each WIA area compared to the total number of unemployed individuals in areas of substantial unemployment in the state.
(b) One-third of the funds shall be allotted on the basis of the relative excess number of unemployed individuals in each WIA area compared to the total excess number of unemployed individuals in the state.
(c) One-third of the funds shall be allotted on the basis of the relative number of disadvantaged youth in each WIA area compared to the total number of disadvantaged youth in the state.
(d) With regard to the youth discretionary allocation, in lieu of making the allocation, the state may distribute:
(i) A portion equal to not less than seventy per cent of the funds.
(ii) The remaining portion of the funds on the basis of a formula that:
(a) Incorporates additional factors including:
(i) Excess youth poverty in urban, rural, and suburban WIA areas; and
(ii) Excess unemployment above the state average in urban, rural, and suburban WIA areas.
(b) Was developed by the state board and approved by the DOL secretary as part of the state plan.
(e) Entered into on a PY basis only each year.
(f) The catalog of federal domestic assistance (CFDA) number for this funding stream is 17.259.
(2) Adult funding stream:
(a) One-third of the funds shall be allotted on the basis of the relative number of unemployed individuals in areas of substantial unemployment in each WIA area, compared to the total number of unemployed individuals in areas of substantial unemployment in the state.
(b) One-third of the funds shall be allotted on the basis of the relative excess number of unemployed individuals in each WIA area compared to the total excess number of unemployed individuals in the state.
(c) One-third of the funds shall be allotted on the basis of the relative number of disadvantaged adults in each workforce investment WIA area compared to the total number of disadvantaged adults in the state.
(d) Entered into on a PY and an FFY basis each year.
(e) The CFDA number for this funding stream is 17.258.
(3) Dislocated worker funding stream:
(a) Funds are allocated on the basis of a formula prescribed by the governor as designated in the state plan with the assistance of the state board.
(b) The dislocated worker formula will use federal and/or state data, including, but not limited to:
(i) Insured unemployment data;
(ii) Unemployment concentrations;
(iii) Plant closings and mass layoff data;
(iv) Declining industries data;
(v) Farmer-rancher economic hardship data;
(vi) Long term unemployment data; and
(vii) Other factors as may be determined by the governor.
(c) Twenty-five per cent of the funds available in the state’s dislocated worker funding stream may be reserved for statewide rapid response activities.
(d) Entered into on a PY and an FFY basis each year.
(e) The CFDA number for this funding stream is 17.260.
(4) Adult, dislocated worker, and youth funding streams:
(a) The governor may set aside up to fifteen per cent of the funds from each funding stream for statewide activities, including five per cent for administrative activities. Neither the funds set aside for statewide activities nor the funds set aside for administrative activities need to be allocated back to the individual funding streams.
(b) The remaining funds must be allocated to local areas in accordance with 20 C.F.R. 667.130.
(c) The allocation factors for adult activity funds are in accordance with 20 C.F.R. 667.130(d) and further defined by the governor and the state board.
(d) The allocation factors for dislocated worker program funds are at 20 C.F.R. 667.130(e) and further defined by the governor and state board.
(e) The allocation formulas for distribution of youth activity funds are at 20 C.F.R. 667.130(c).
(f) Limitation – of the amounts allocated to a WIA area, not more than ten per cent of the amount may be used by the local board for the administrative cost of carrying out WIA activities. Local administrative costs need not be allocated back to the individual funding streams.
(5) The formula allocations are available to local areas for up to two years. The unspent balance from the first year is carried forward into the second. After the end of the second fiscal year, funds are expired at the local level and returned to ODJFS.
(a) A local WIA area may transfer funds back to the youth, adult, and dislocated worker funds in accordance with the office of workforce development (OWD) program policy.
(b) A local WIA area may transfer a percentage of local WIA area funding between the adult and dislocated worker programs, using the CFIS transfer coding established by ODJFS for this purpose.
(i) Effective with the PY 2009 funding, local WIA areas may code a portion equal to or less than thirty per cent of their allocated WIA adult grant for expenditures that are allowable under the WIA dislocated worker grant.
(ii) Effective with the PY 2009 funding, local WIA areas may code a portion equal to or less than thirty per cent of their allocated WIA dislocated worker grant for expenditures that are allowable under the WIA adult grant.
(6) For the first two fiscal years after the date on which a WIA area is designated under section 116 of the Workforce Investment Act of 1998, Ohio may elect to apply the “hold harmless” provisions specified in 20 C.F.R. 667.135.
(7) Effective at the end of the second full fiscal year after the date on which a WIA area is designated under section 116 of the Workforce Investment Act of 1998, the WIA area shall not receive an allocation percentage for a fiscal year that is less than ninety per cent of the average allocation percentage of the WIA area for the two preceding fiscal years. Amounts necessary for increasing such allocations to WIA areas to meet compliance with the language in this paragraph shall be obtained by ratably reducing the allocations to other WIA areas.
(8) There are no “hold harmless” provisions that apply to local WIA areas allocations of dislocated worker funds.
(9) Funding streams must be maintained separately by WIA areas.
(10) OWD may advise, each new PY, which funds to carry forward. The carry-forward funds are the original allocation minus the cumulative expenses. Distribution of these carry-forward funds is fifty per cent of the prior fiscal year’s remaining pre-closeout allocation with the remaining fifty per cent of funds applied after an area’s closeout is finalized. All funding is subject to OWD policy regarding expenditure rates and recapture of unused funds.
(E) Allowable expenditures for these allocations include:
(1) Core services – eligibility determination, outreach, intake, worker profiling, orientation to information and services available, initial assessments, job search and placement assistance, career counseling, provision of employment statistics, labor market information, performance measure information, other information for employment and training purposes, assistance to establishing eligibility for welfare to work, social security, and follow-up services.
(2) Intensive services – comprehensive and specialized assessments, out-of-area job search, job search assistance, literacy activities related to basic workforce readiness, relocation assistance, internships, and work experience.
(3) Training services – occupational skills training, on-the-job training, programs that include cooperative education, training programs operated by private sector/industry, skill upgrading and retraining, entrepreneurial training, job readiness training, adult education and literacy activities provided in combination with these services, and customized training conducted with the commitment by an employer to hire upon successful completion in accordance with the language contained within the OWD program policy.
(4) Youth services – tutoring, study skills training, instruction leading to secondary school completion, drop-out prevention and attrition, alternative secondary school services, summer employment opportunities, supportive services, adult mentoring, follow-up services (twelve months) and counseling.
(5) Administrative funds may be used for the administrative cost of any of the local WIA activities described in section 129(c), 134(d), or 134(e) of the Workforce Investment Act of 1998, regardless of whether the funds were allocated under section 133(b) of the Workforce Investment Act of 1998.
(6) Incumbent worker training services as defined by the Workforce Investment Act of 1998, policy, guidance, or directive.
(F) Allowable expenditures must comply with all requirements of the state and WIA area subgrant agreement, incorporated assurances, certifications, and 29 C.F.R. part 97.
(G) Allocated funds may not be used on construction or purchase of facilities or buildings.
Effective: 07/13/2009
Promulgated Under: 111.15
Statutory Authority: 5101.02, 6301.03
Rule Amplifies: 5101.02, 6301.03
Prior Effective Dates: 7/2/02 (Emer), 9/28/02, 4/15/07