I.Purpose

To provide policy on the waiver extension granted for Program Year 2014 by the US Department of Labor (DOL) to increase the allowable transfer amount between Adult and Dislocated Worker funding streams allocated to a local area. The transfer authority between the funding streams is limited to 75%. WIA administrative entities should transmit this guidance to subrecipients and other entities that provide WIA activities.

II.Effective Date

July 1, 2014 - June 30, 2015

III.Background

Under the Workforce Investment Act, Public Law 105-220, dated August 7, 1998, Section 133 (b) (4) allows the local Workforce Investment Board (WIB), through the administrative entity and/or fiscal agent, to request a transfer of funds between the adult and dislocated worker programs of up to 20% of the original formula allocation for each year of appropriation. TEGL 20-08, May 7, 2009 raises the transfer limits to 30%, which is applicable for the life of the funds. TEGL 27-12, May 10, 2013, raised the transfer limits to 75% on a case by case basis.

In 2014, the State requested a waiver extension to permit an increase in the allowable transfer amount between the Adult and Dislocated Worker funding streams to 75%. The U.S. Department of Labor (DOL) granted the extension of this waiver through June 30, 2015.

IV.Requirements

Effective with the issuance of PY 2014 WIA funds, the state of Ohio is aligning with the Consolidated Appropriations Act, limiting the transfer amount of up to 75% of Dislocated Worker funds to Adult and up to 75% of Adult funds to Dislocated Worker.

A WIB cannot transfer youth funds under the Workforce Investment Act.

A WIB should instruct the fiscal agent and/or the administrative entity whether to transfer up to 75% of local area formula allocations between the adult and dislocated worker programs.

Funds will retain the year of appropriation identity and must be reported and accounted for accordingly using County Finance Information System (CFIS) codes established by the Bureau of County Finance and Technical Assistance (BCFTA).

Changes in the state's transfer limit approved under waiver authority shall apply to new allocations of Adult and Dislocated Worker funding issued for the first fiscal year beginning on or after the effective date of the waiver authority approval, but not to funds received in a prior fiscal year that may be carried into the new fiscal year. The level of transfer authority that existed at the time the WIA funding was awarded shall continue to apply to those funds for their period of availability at the local level. For example, if an area received $100,000 in Adult funds when Ohio's transfer authority was limited to 50 %, the Area may expend up to $50,000 of these funds for Dislocated Worker services. If the state's waiver authority later increases to 75 % effective for the subsequent fiscal year, the transfer limit pertaining to the original $100,000 Adult award remains at $50,000. If the area had already transferred $40,000 during the first year, the maximum transfer authority pertaining to funds carried into the new fiscal year is limited to $10,000. The higher transfer limit of 75 % shall apply to new allocations issued in the fiscal year beginning on or after the waiver authority effective date.

Funds should not be transferred from the dislocated worker program to the adult program without regard to demands for dislocated worker services. The state may not provide rapid response funds to address a need if a transfer has occurred from the dislocated worker program to the adult program.

Considerations

There are short-term and long-term effects on program operations that could result from transfers of funds. The local WIB, the fiscal agent, and/or the administrative entity should examine the following considerations when deciding to transfer:

1.Are there adequate funds to maintain services to currently enrolled participants?

2.What is prompting the request?

• Customer demand
• Business demand
• Expenditures
• Enrollments

3.How will you respond to unforeseen events, such as:

• Company closings
• Mass layoffs
• Increased training costs

4.What are short-term and long-term impacts of the transfer?

• Significant change in local plan goals to warrant a local plan modification
• Service level and service groups

V.Technical Assistance

For additional information, you may send your questions to ODJFS, Office of Workforce Development: WIAQNA@JFS.OHIO.GOV.

VI.References

Workforce Investment Act of 1998, Public Law 105-220, August 7, 1998.

20 C.F.R. Part 652 et al. Workforce Investment Act; Final Rules, August 11, 2000.

USDOL Training and Employment Guidance Letter No. 20-08, Workforce Investment Act (WIA) Adult, Dislocated Worker and Youth Activities Program Allotments for Program Year (PY) 2009; Additional PY 2009 Funding from WIA Section 173(e) for Adult/Dislocated Worker Activities for Eligible States; Final Wagner-Peyser Act Allotments for PY 2009; Workforce Information Grants to States for PY 2009; and Work Opportunity Tax Credit (WOTC) Allotments for Fiscal Year (FY) 2009, May 7, 2009.

USDOL Training and Employment Guidance Letter No. 27-12, Funds Administration Flexibility for Workforce Investment Act of 1998 (WIA) Title I and Wagner-Peyser Act of 1933 (W-P Act) Funds, May 10, 2013.

The Consolidated Appropriations Act of 2008.

USDOL waiver approval letters dated December 10, 2012, August 8, 2013, and August 5, 2014.

O.A.C. 5101:9-31-02, Workforce Investment Act (WIA) Initial Formulary Allocation Methodology, December 1, 2010.

Rescissions

WIAPL No. 09-01.4, Waiver to Increase the Transfer of Funds between the Adult and Dislocated Worker Local Formula Funds.