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

(A) The Ohio department of job and family services (ODJFS) issues the department of labor (DOL) Workforce Investment Act (WIA) of 1998 formulary allocations to local areas to assist in the delivery of allowable workforce development activities related to youth, adults, and dislocated workers.

(B) These allocations are composed of one hundred per cent federal funds.

(C) ODJFS authorizes funds for expenditure to local areas on a WIA program year (PY) and/or a federal fiscal year (FFY) basis. PY funds are available July first through June thirtieth. FFY funds are available October first through September thirtieth.

(1) Youth funds are available on a PY basis.

(2) Adult and dislocated worker funds are available on a PY and FFY basis.

(3) PY funds are available for the original year of appropriation, plus one succeeding year. FFY funds are available for nine months following their October issuance, plus one additional program year.

(D) Methodology.

ODJFS uses the following formulas, as described in WIA sections 128 and 133, to allocate formulary funding for local areas. Statistics used to calculate funding are provided by the office of workforce development (OWD) as described in the state plan approved by the United States department of labor (DOL).

(1) Youth funding stream:

(a) ODJFS allocates one-third of the funds based on 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) ODJFS allocates one-third of the funds based on the relative excess number of unemployed individuals in each local area compared to the total excess number of unemployed individuals in the state.

(c) ODJFS allocates one-third of the funds based on the relative number of disadvantaged youth in each local area compared to the total number of disadvantaged youth in the state.

(d) The catalog of federal domestic assistance (CFDA) number for this funding stream is 17.259.

(2) Adult funding stream:

(a) ODJFS allocates one-third of the funds based on 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) ODJFS allocates one-third of the funds based on the relative excess number of unemployed individuals in each local area compared to the total excess number of unemployed individuals in the state.

(c) ODJFS allocates one-third of the funds based on the relative number of disadvantaged adults in each local area compared to the total number of disadvantaged adults in the state.

(d) The CFDA number for this funding stream is 17.258.

(3) Dislocated worker funding stream:

(a) ODJFS may reserve up to twenty-five per cent of the funds available in the state's dislocated worker funding stream for statewide rapid response activities as described in 20 C.F.R. 665.310 through 665.330 .

(b) ODJFS allocates the remaining funds based on a formula prescribed by the governor as designated in the state plan.

(c) The CFDA number for this funding stream is 17.278.

(4) Hold harmless provision for adult and youth funding streams.

(a) 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" provision which states that the local area will not receive an allocation amount for a FFY that is less than ninety per cent of the average allocation of the local area for the two preceding FFYs.

(b) Effective at the end of the second full fiscal year after the date on which a local area is designated under WIA section 116, ODJFS must apply the hold harmless provision which states that the local area must not receive an allocation amount for a FFY that is less than ninety per cent of the average allocation percentage of the local area for the two preceding FFYs.

(c) ODJFS will calculate the amounts necessary for increasing allocations to local areas in accordance with the hold harmless provision by proportionately reducing the allocations made to other local areas.

(d) If the amount of WIA funds appropriated in a fiscal year are not sufficient to provide the amount specified in paragraph (D)(1)(b) of this rule to all local areas, ODJFS will ratably reduce the amounts allocated to each local area.

(5) Should DOL issue a rescission of funds, ODJFS will determine the level of adjustments needed to comply with the rescission.

(6) Local areas must maintain each funding stream separately.

(7) All funding is subject to OWD program policy regarding expenditure rates and recapture of unused funds.

(E) Allowable expenditures.

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. 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 with 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, and 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, up to twelve months follow-up services, and counseling. A local area is required to use at least thirty percent of their youth funding to provide activities for out-of-school youth.

(5) Incumbent worker training services, as defined by the WIA, policy, guidance, or directive.

(6) Supportive services including needs related payments as defined in WIA sections 134(e)(2) and (3).

(F) Allocated funds may not be used on construction or purchase of facilities, buildings, or foreign travel.

(G) Transfer authority.

(1) Under WIA section 133, a local area may transfer, if approved by the governor, a per cent of allocated funding between adult employment and training activities and dislocated worker employment and training activities. ODJFS may request a waiver to increase the allowable transfer percentage between the adult and dislocated worker funding streams. The percentage allowable may vary each fiscal year depending on DOL waiver approval.

(2) Local areas electing to use a percentage of the WIA adult grant for dislocated worker activities or a percentage of the dislocated worker grant for adult activities shall use the coding established in CFIS by ODJFS for this purpose.

(H) Administration.

A local area may use up to ten per cent of the allocation amounts for the administrative cost of carrying out the above WIA activities. These funds may be used for administrative costs as described in rule 5101:9-31-06 of the Administrative Code.

(I) Statewide activities.

(1) The governor may also set aside a portion of the funds from each funding stream as defined in federal legislation for statewide activities, including five per cent for administrative activities. These funds may be combined and spent on statewide employment and training activities for adults and dislocated workers, and statewide youth activities as described in 20 C.F.R. 665.200 and 665.210 .

(2) ODJFS may periodically allocate statewide funding for special projects.

(3) Statewide funds are available for expenditure during the current PY and the two succeeding PYs.

(J) 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).

Replaces: 5101:9-31-02

Effective: 07/24/2014
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, 12/1/2010