5101:9-31-02 Workforce Investment Act (WIA) initial formulary allocation methodology.

(A) The Workforce Investment Act (WIA) of 1998 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 local 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 (ARRA).

(B) These allocations are composed of one hundred per cent federal funds. Should the Ohio department of job and family services (ODJFS) receive a rescission of funds from DOL, ODJFS 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 the adult and dislocated worker expenditure on July first and youth funds on April 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 local areas, funds are available for the original year of appropriation plus one succeeding year.

(D) The governor, after consulting with chief local elected officials and acting in accordance with the state plan, will use the formula described in sections 128 and 133 of the WIA to allocate funds for WIA Title I programs. Effective at the end of the second full FFY after the date on which a local area is designated under WIA section 116 , the local area shall not receive an allocation percentage for an FFY that is less than ninety per cent of the average allocation percentage of the local area for the two preceding FFYs. "Hold harmless" only applies to the adult and youth funding streams. 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 local 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 local 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 local 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 local 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, ODJFS 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 local areas; and

(ii) Excess unemployment above the state average in urban, rural, and suburban local areas.

(b) Was developed by ODJFS 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 local 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 local 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 local 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 ODJFS.

(b) The dislocated worker formula will use federal 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 17.278 in accordance with training and employment guidance letter (TEGL) number 10-10.

(4) Adult, dislocated worker, and youth funding streams:

(a) Pursuant to the Workforce Investment Act, 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. The governor may also set aside twenty-five per cent of the dislocated worker funding stream for rapid response 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 ODJFS.

(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 ODJFS.

(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 local 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. With the county finance information system (CFIS), charges are apportioned to the individual funding stream.

(5) The formula allocations are available to local areas for up to two years one year and nine months. The unspent balance from the first year is carried forward into the second FFY. After the end of the second FFY, funds are expired at the local level and returned to ODJFS.

(a) Local areas may code a portion equal to or less than fifty per cent of the allocated WIA adult grant for expenditures that are allowable under the WIA dislocated worker grant. Local areas may code a portion equal to or less than fifty per cent of the allocated WIA dislocated worker grant for expenditures that are allowable under the WIA adult grant.

(b) Local areas electing to charge a percentage of the WIA adult grant for dislocated worker activities or charge a percentage of the dislocated worker grant for adult activities shall use the CFIS transfer coding established for this purpose.

(6) For the first two FFYs after the date on which a local area is designated under WIA section 116 , ODJFS 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 local area is designated under WIA section 116 , the local area shall not receive an allocation percentage for a FFY that is less than ninety per cent of the average allocation percentage of the local area for the two preceding FFYs. Amounts necessary for increasing such allocations to local areas to meet compliance with the language in this paragraph shall be obtained by ratably reducing the allocations to other local areas.

(8) There are no "hold harmless" provisions that apply to local area allocations of dislocated worker funds.

(9) Funding streams must be maintained separately by local areas.

(10) All funding is subject to the office of workforce development (OWD) program 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 local areas' activities described in WIA section 129(c), 134(d), or 134(e), 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 WIA, policy, guidance, or directive.

(F) Allowable expenditures must comply with all requirements of the state and local 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.

(H) The local area shall maintain documentation in accordance with the records retention requirements in rule 5101:9-9-21 of the Administrative Code. This documentation may be subject to inspection, monitoring, and audit by the ODJFS office of fiscal and monitoring services(OFMS) and the Ohio auditor of state (AOS).

Effective: 12/01/2010
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, 7/13/09, 9/15/10