2023-05567. Notice on Reallotment of Workforce Innovation Opportunity Act Title I Formula Allotted Funds for Dislocated Worker Activities for Program Year 2022

AGENCY:

Employment and Training Administration (ETA), Labor.

ACTION:

Notice.

SUMMARY:

The Workforce Innovation Opportunity Act (WIOA), requires the Secretary of Labor (Secretary) to conduct reallotment of certain WIOA formula allotted funds based on ETA-9130 financial reports submitted by states at of the end of the prior Program Year (PY). This notice publishes the Dislocated Worker PY 2022 funds for recapture by state and the amount to be reallotted to eligible states.

DATES:

This notice is effective March 20, 2023.

FOR FURTHER INFORMATION CONTACT:

Ms. Kimberly Vitelli, Administrator, U.S. Department of Labor, Office of Workforce Investment, Employment and Training Administration, Room C-4510, 200 Constitution Avenue NW, Washington, DC. Telephone [phone] (this is not a toll-free number) or fax [phone].

SUPPLEMENTARY INFORMATION:

In the Fiscal Year (FY) 2022 Consolidated Appropriations Act, Congress appropriated WIOA PY 2022 funds in two portions: (1) funds available for obligation July 1, 2022 ( i.e., PY 2022 “base” funds), and (2) funds available for obligation October 1, 2022 ( i.e., FY 2023 “advance” funds). Together, these two portions make up the complete PY 2022 WIOA funding. Training and Employment Guidance Letter (TEGL) No. 09-21 announced WIOA allotments based on this appropriation and TEGL No. 19-20 alerted states to the recapture and reallotment of funds' provisions based on obligations of PY 2021 funding, as required under WIOA Section 132(c). This section and 127(c) of WIOA requires the Secretary to conduct reallotment of excess unobligated WIOA Adult, Youth, and Dislocated Worker formula funds based on ETA 9130 financial reports submitted by states at the end of the prior program year ( i.e., PY 2021).

WIOA regulations at 20 CFR 683.135 describe the procedures the Secretary uses for recapture and reallotment of funds. ETA will not recapture any PY 2022 funds for the Adult and Youth programs because there are no states where PY 2021 unobligated funds exceed the statutory requirements of 20 percent of state allotted funds. However, for the Dislocated Worker program, Ohio and Puerto Rico had unobligated PY 2021 funds in excess of 20 percent of their allotments. Therefore, ETA will recapture a total of $4,957,289 from PY 2022 funding from Ohio and Puerto Rico and reallot those funds to the remaining eligible states, as required by WIOA Section 132(c).

ETA will issue a Notice of Award to the states to reflect the recapture and reallotment of these funds. The adjustment of funds will be made to the FY 2023 advance portion of the PY 2022 allotments, which ETA issued in October 2022. The attached tables display the net changes to PY 2022 formula allotments.

WIOA and its implementing regulations do not provide specific requirements by which states must distribute realloted funds, so states have flexibility to determine the methodology used. For any state subject to recapture of funds, WIOA Section 132(c)(5) requires the Governor to prescribe equitable procedures for reacquiring funds from the state and local areas.

As mentioned, the recapture/reallotment adjustments will be made to the FY 2023 advance portion of the PY 2022 allotment. Therefore, for reporting purposes, states must reflect the recapture/reallotment amount (decrease or increase) in the “Total Federal Funds Authorized” line of any affected FY 2023 ETA 9130 financial reports (State Dislocated Worker Activities, Statewide Rapid Response, Local Dislocated Worker Activities) in a manner consistent with the method of distribution of these amounts to state and local areas used by the state. The state must include an explanation of the adjustment in the remarks section of the adjusted reports.

As part of ETA's transition away from legacy systems, the new Payment Management System (PMS) Financial Reporting System will go live for ETA grant recipients' submission of the quarterly ETA 9130 financial reports on April 3, 2023. PMS is operated by the U.S. Department of Health and Human Services, which will conduct training for ETA grant recipients on the use of the new reporting system. Additional guidance and information on the access and use of the PMS Financial Reporting System for the submission of future ETA 9130 quarterly financial reports is provided in Training and Employment Notice (TEN) No. 16-22. The PMS Financial Reporting System training sessions will be recorded and available for future reference.

I. Attachment A

U.S. Department of Labor—Employment and Training Administration WIOA Dislocated Worker Activities, PY 2022 Reallotment to States

	Calculating reallotment amount *			Impact on PY 2022 allotments
	Excess unobligated PY 2021 funds to be recaptured from PY 2022 funds	Eligible states' PY 2021 1 dislocated worker allotments	Reallotment amount for eligible states (based on eligible states' share of PY 2021 allotments)	Total original PY 2022 2 allotments before reallotment	Recapture/ reallotment adjustment to PY 2022 allotments	Revised total PY 2022 allotments
Alabama	$0	$15,761,092	$81,695	$14,354,136	$81,695	$14,435,831
Alaska	0	7,633,946	39,569	6,952,482	39,569	6,992,051
Arizona **	0	36,105,314	187,146	32,882,281	187,146	33,069,427
Arkansas	0	5,494,558	28,480	5,004,071	28,480	5,032,551
California	0	149,732,614	776,113	172,716,686	776,113	173,492,799
Colorado	0	12,160,847	63,034	15,998,009	63,034	16,061,043
Connecticut	0	12,338,774	63,956	13,434,048	63,956	13,498,004
Delaware	0	3,066,469	15,895	2,792,814	15,895	2,808,709
District of Columbia	0	10,071,146	52,202	9,172,120	52,202	9,224,322
Florida	0	51,295,094	265,879	46,716,550	265,879	46,982,429
Georgia	0	33,422,525	173,240	30,438,974	173,240	30,612,214
Hawaii	0	2,119,251	10,985	2,787,961	10,985	2,798,946
Idaho	0	2,028,258	10,513	1,847,221	10,513	1,857,734
Illinois	0	51,363,593	266,234	46,778,485	266,234	47,044,719
Indiana	0	14,964,374	77,565	13,628,787	77,565	13,706,352
Iowa	0	4,937,925	25,595	4,497,235	25,595	4,522,830
Kansas	0	4,545,136	23,559	4,139,435	23,559	4,162,994
Kentucky	0	14,549,507	75,415	13,250,923	75,415	13,326,338
Louisiana	0	18,465,924	95,715	16,817,514	95,715	16,913,229
Maine	0	2,323,143	12,042	2,242,181	12,042	2,254,223
Maryland	0	13,614,694	70,569	17,212,091	70,569	17,282,660
Massachusetts	0	20,200,899	104,708	22,669,765	104,708	22,774,473
Michigan	0	34,359,104	178,095	31,292,714	178,095	31,470,809
Minnesota	0	10,349,918	53,647	9,426,224	53,647	9,479,871
Mississippi	0	15,299,204	79,301	13,933,482	79,301	14,012,783
Missouri	0	12,029,945	62,355	10,956,060	62,355	11,018,415
Montana	0	1,753,385	9,088	1,596,891	9,088	1,605,979
Nebraska	0	2,203,229	11,420	2,006,552	11,420	2,017,972
Nevada	0	15,075,456	78,141	14,994,671	78,141	15,072,812
New Hampshire	0	2,326,467	12,059	2,118,850	12,059	2,130,909
New Jersey	0	33,934,712	175,895	36,473,636	175,895	36,649,531
New Mexico **	0	16,391,301	84,962	14,928,088	84,962	15,013,050
New York	0	65,472,584	339,366	82,585,211	339,366	82,924,577
North Carolina	0	25,756,798	133,506	23,457,549	133,506	23,591,055
North Dakota	0	864,897	4,483	813,070	4,483	817,553
Ohio	262,751	0	0	30,695,154	(262,751)	30,432,403
Oklahoma	0	6,651,637	34,478	6,139,713	34,478	6,174,191
Oregon	0	11,193,029	58,017	10,443,575	58,017	10,501,592
Pennsylvania	0	47,142,465	244,355	42,934,413	244,355	43,178,768
Puerto Rico	4,694,538	0	0	62,908,530	(4,694,538)	58,213,992
Rhode Island	0	3,900,614	20,218	3,552,454	20,218	3,572,672
South Carolina	0	12,934,317	67,043	11,779,701	67,043	11,846,744
South Dakota	0	1,451,589	7,524	1,322,041	7,524	1,329,565
Tennessee	0	15,843,405	82,122	14,429,101	82,122	14,511,223
Texas	0	65,624,473	340,153	83,358,322	340,153	83,698,475
Utah **	0	3,863,062	20,024	3,518,216	20,024	3,538,240
Vermont	0	1,103,986	5,722	1,005,465	5,722	1,011,187
Virginia	0	15,539,343	80,546	14,152,452	80,546	14,232,998
Washington	0	24,435,839	126,659	22,254,509	126,659	22,381,168
West Virginia	0	11,650,017	60,386	10,610,160	60,386	10,670,546
Wisconsin	0	11,940,594	61,892	10,874,839	61,892	10,936,731
Wyoming	0	1,104,141	5,723	1,005,588	5,723	1,011,311
State Total	4,957,289	956,390,594	4,957,289	1,071,901,000	0	1,071,901,000
* Including prior year recapture/reallotment amounts.
** Includes funds allocated to the Navajo Nation.
1  PY 2021 allotment amounts are used to determine the reallotment amount eligible states receive of the recaptured amount.
2  PY 2022 allotment amounts are original allotment amounts per TEGL 09-21.

II. Attachment B

U.S. Department of Labor—Employment and Training Administration WIOA Dislocated Worker Activities, PY 2022 Revised Allotments With Reallotment—PY/FY Split

	Total allotment			Available 7/1/22			Available 10/1/22
	Original	Recapture/ reallotment	Revised	Original	Recapture/ reallotment	Revised	Original	Recapture/ reallotment	Revised
Alabama	14,354,136	81,695	14,435,831	2,886,533		2,886,533	11,467,603	81,695	11,549,298
Alaska	6,952,482	39,569	6,992,051	1,398,103		1,398,103	5,554,379	39,569	5,593,948
Arizona *	32,882,281	187,146	33,069,427	6,612,434		6,612,434	26,269,847	187,146	26,456,993
Arkansas	5,004,071	28,480	5,032,551	1,006,289		1,006,289	3,997,782	28,480	4,026,262
California	172,716,686	776,113	173,492,799	34,732,312		34,732,312	137,984,374	776,113	138,760,487
Colorado	15,998,009	63,034	16,061,043	3,217,106		3,217,106	12,780,903	63,034	12,843,937
Connecticut	13,434,048	63,956	13,498,004	2,701,508		2,701,508	10,732,540	63,956	10,796,496
Delaware	2,792,814	15,895	2,808,709	561,619		561,619	2,231,195	15,895	2,247,090
District of Columbia	9,172,120	52,202	9,224,322	1,844,460		1,844,460	7,327,660	52,202	7,379,862
Florida	46,716,550	265,879	46,982,429	9,394,424		9,394,424	37,322,126	265,879	37,588,005
Georgia	30,438,974	173,240	30,612,214	6,121,099		6,121,099	24,317,875	173,240	24,491,115
Hawaii	2,787,961	10,985	2,798,946	560,643		560,643	2,227,318	10,985	2,238,303
Idaho	1,847,221	10,513	1,857,734	371,465		371,465	1,475,756	10,513	1,486,269
Illinois	46,778,485	266,234	47,044,719	9,406,879		9,406,879	37,371,606	266,234	37,637,840
Indiana	13,628,787	77,565	13,706,352	2,740,669		2,740,669	10,888,118	77,565	10,965,683
Iowa	4,497,235	25,595	4,522,830	904,368		904,368	3,592,867	25,595	3,618,462
Kansas	4,139,435	23,559	4,162,994	832,416		832,416	3,307,019	23,559	3,330,578
Kentucky	13,250,923	75,415	13,326,338	2,664,683		2,664,683	10,586,240	75,415	10,661,655
Louisiana	16,817,514	95,715	16,913,229	3,381,903		3,381,903	13,435,611	95,715	13,531,326
Maine	2,242,181	12,042	2,254,223	450,889		450,889	1,791,292	12,042	1,803,334
Maryland	17,212,091	70,569	17,282,660	3,461,250		3,461,250	13,750,841	70,569	13,821,410
Massachusetts	22,669,765	104,708	22,774,473	4,558,757		4,558,757	18,111,008	104,708	18,215,716
Michigan	31,292,714	178,095	31,470,809	6,292,781		6,292,781	24,999,933	178,095	25,178,028
Minnesota	9,426,224	53,647	9,479,871	1,895,558		1,895,558	7,530,666	53,647	7,584,313
Mississippi	13,933,482	79,301	14,012,783	2,801,941		2,801,941	11,131,541	79,301	11,210,842
Missouri	10,956,060	62,355	11,018,415	2,203,199		2,203,199	8,752,861	62,355	8,815,216
Montana	1,596,891	9,088	1,605,979	321,125		321,125	1,275,766	9,088	1,284,854
Nebraska	2,006,552	11,420	2,017,972	403,506		403,506	1,603,046	11,420	1,614,466
Nevada	14,994,671	78,141	15,072,812	3,015,340		3,015,340	11,979,331	78,141	12,057,472
New Hampshire	2,118,850	12,059	2,130,909	426,088		426,088	1,692,762	12,059	1,704,821
New Jersey	36,473,636	175,895	36,649,531	7,334,634		7,334,634	29,139,002	175,895	29,314,897
New Mexico *	14,928,088	84,962	15,013,050	3,001,951		3,001,951	11,926,137	84,962	12,011,099
New York	82,585,211	339,366	82,924,577	16,607,401		16,607,401	65,977,810	339,366	66,317,176
North Carolina	23,457,549	133,506	23,591,055	4,717,175		4,717,175	18,740,374	133,506	18,873,880
North Dakota	813,070	4,483	817,553	163,504		163,504	649,566	4,483	654,049
Ohio	30,695,154	(262,751)	30,432,403	6,172,615		6,172,615	24,522,539	(262,751)	24,259,788
Oklahoma	6,139,713	34,478	6,174,191	1,234,660		1,234,660	4,905,053	34,478	4,939,531
Oregon	10,443,575	58,017	10,501,592	2,100,142		2,100,142	8,343,433	58,017	8,401,450
Pennsylvania	42,934,413	244,355	43,178,768	8,633,859		8,633,859	34,300,554	244,355	34,544,909
Puerto Rico	62,908,530	(4,694,538)	58,213,992	12,650,536		12,650,536	50,257,994	(4,694,538)	45,563,456
Rhode Island	3,552,454	20,218	3,572,672	714,378		714,378	2,838,076	20,218	2,858,294
South Carolina	11,779,701	67,043	11,846,744	2,368,829		2,368,829	9,410,872	67,043	9,477,915
South Dakota	1,322,041	7,524	1,329,565	265,855		265,855	1,056,186	7,524	1,063,710
Tennessee	14,429,101	82,122	14,511,223	2,901,608		2,901,608	11,527,493	82,122	11,609,615
Texas	83,358,322	340,153	83,698,475	16,762,869		16,762,869	66,595,453	340,153	66,935,606
Utah *	3,518,216	20,024	3,538,240	707,493		707,493	2,810,723	20,024	2,830,747
Vermont	1,005,465	5,722	1,011,187	202,193		202,193	803,272	5,722	808,994
Virginia	14,152,452	80,546	14,232,998	2,845,975		2,845,975	11,306,477	80,546	11,387,023
Washington	22,254,509	126,659	22,381,168	4,475,251		4,475,251	17,779,258	126,659	17,905,917
West Virginia	10,610,160	60,386	10,670,546	2,133,641		2,133,641	8,476,519	60,386	8,536,905
Wisconsin	10,874,839	61,892	10,936,731	2,186,866		2,186,866	8,687,973	61,892	8,749,865
Wyoming	1,005,588	5,723	1,011,311	202,218		202,218	803,370	5,723	809,093
State Total	1,071,901,000		1,071,901,000	215,553,000		215,553,000	856,348,000		856,348,000
* Includes funds allocated to the Navajo Nation.

Brent Parton,

Acting Assistant Secretary for Employment and Training, Labor.