Employment and Training Administration (ETA) Program Year (PY) 2018; Workforce Innovation and Opportunity Act (WIOA) Section 167, National Farmworker Jobs Program (NFJP) Formula Modifications and Allotments, 32151-32155 [2018-14747]
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[FR Doc. 2018–14794 Filed 7–10–18; 8:45 am]
BILLING CODE 4410–15–P
DEPARTMENT OF LABOR
Employment and Training
Administration
Employment and Training
Administration (ETA) Program Year
(PY) 2018; Workforce Innovation and
Opportunity Act (WIOA) Section 167,
National Farmworker Jobs Program
(NFJP) Formula Modifications and
Allotments
Employment and Training
Administration, Labor.
ACTION: Notice.
AGENCY:
This Notice announces
updates and modifications to the
allotment formula for the National
Farmworker Jobs Program (NFJP),
authorized under the Workforce
Innovation and Opportunity Act
(WIOA), Section 167, and allotments for
Program Year (PY) 2018. These
allotments are based on the enacted
NFJP funding appropriation in the
Consolidated Appropriation Act, 2018.
On May 23, 2018, the Employment
and Training Administration (ETA)
published a notice in the Federal
Register (83 FR 23937) concerning the
use of updated data in and proposed
modifications to the formula ETA uses
to distribute funding for NFJP. The
notice also presented preliminary State
planning estimates for PY 2018. Public
comments were requested at that time.
The comment period closed May 30,
2018. This notice summarizes and
responds to the comments, and
publishes the final PY 2018 allotments.
DATES: The PY 2018 NFJP allotments
cover July 1, 2018 through June 30,
2019.
ADDRESSES: Questions on this notice can
be submitted to NFJP@dol.gov or the
Employment and Training
Administration, Office of Workforce
Investment, 200 Constitution Ave. NW,
Room C4510, Washington, DC 20210,
˜
Attention: Laura Ibanez, Unit Chief,
(202) 693–3645 or Steven Rietzke,
Division Chief at (202) 693–3912.
FOR FURTHER INFORMATION CONTACT:
˜
Laura Ibanez, Unit Chief, (202) 693–
3645 or Steven Rietzke, Division Chief
at (202) 693–3912.
SUMMARY:
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32151
This
notice is published pursuant to Section
182(d) of the WIOA, Prompt Allotment
of Funds.
SUPPLEMENTARY INFORMATION:
I. Background
This notice represents the second of a
two-stage process. In the first stage, ETA
solicited and considered public
comments regarding the use of updated
data in and three proposed
modifications to the NFJP allotment
formula. Based on the comments and
ETA’s consideration of them, ETA has
applied the updated data to the formula
and implemented two of the three
proposed modifications. In this second
stage, the final formula modifications
are described and the resulting
allotments are published. The updated
data and modifications have been
processed in accordance with the
allotment formula methodology, which
was described in detail in a notice that
was published in the Federal Register
on May 19, 1999 (64 FR 27390), which
is accessible at https://
www.federalregister.gov/.
The formula was developed for the
purpose of distributing funds
geographically by State service area, on
the basis of each State service area’s
relative share of persons eligible for the
program. New data from each of the four
data files that have been the basis of the
formula since 1999 are used to
determine the distribution of PY 2018
funds. In addition, beginning in PY
2018, ETA will implement two
modifications to the allotment formula,
which will result in more accurate
estimates of each State service area’s
relative share of persons eligible for the
program. The modifications are the
result of ETA’s review of the formula in
the context of the NFJP-eligible
population and farm labor market
changes, ETA’s consideration of public
comments received in response to the
May 23, 2018 Federal Register Notice
(FRN) (83 FR 23937), and feedback that
it received from NFJP grantees prior to
and following informational webinars
that ETA hosted on February 23, 2017,
and April 27, 2017.
Section II of this notice reviews the
formula updates and modifications that
were proposed in the May 23, 2018
notice.
Section III summarizes the comments
that ETA received in response to the
May 23, 2018 notice and ETA’s
decisions concerning the allotment
formula based on those comments.
Section IV describes a hold-harmless
provision, which will be put into place
for the implementation year and the
following years. The hold-harmless
provision is designed to provide a
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staged transition from old to new
funding levels for State service areas.
This was also proposed and discussed
in the May 23, 2018 FRN (83 FR 23937).
Section V describes minimum
funding provisions to address State
service areas which would receive less
than $60,000.
Section VI describes the application
of the formula and the hold-harmless
provision using allotments for PY 2018.
II. Formula Updates and Modifications
As with all State allotments since
1999, the PY 2018 allotments are based
on four data sources: (1) State-level,
hired farm labor expenditure data from
the United States Department of
Agriculture’s (USDA) Census of
Agriculture (COA); (2) regional-level,
average hourly earnings data from the
USDA’s Farm Labor Survey (FLS); (3)
regional-level, demographic data from
ETA’s National Agricultural Workers
Survey (NAWS); and, (4) Lower Living
Standard Income Level data from the
United States Census Bureau’s
American Community Survey (ACS).
The PY 2018 allotments are based on
2012 COA and FLS data, 2006 to 2014
NAWS data, and 2010 to 2014 ACS data.
A detailed description of how each data
source is used in the formula is in the
May 19, 1999 FRN (64 FR 27390) on
pages 27396 to 27399.
In addition to populating the formula
with new data, two modifications have
been implemented. Both are ‘‘back-out’’
adjustments to the COA hired labor
expenditures (Wage Bill) to account for:
(1) Unemployment Insurance (UI)
payroll tax payments made on behalf of
farmworkers; and (2) expenditures on
H–2A workers. A third modification
was proposed to align the allotment
formula with the definition of
dependent under WIOA Section
167(i)(2)(B) and (3)(B) by accounting for
eligible dependents ages 14 and over of
eligible Migrant and Seasonal
Farmworkers (MSFW) in each State’s
share of the total eligible population.
However, based on public comments
and ETA’s consideration of them, the
third modification will not be
implemented. The rationale for not
implementing this modification is
described in Section III, below.
Modifications 1 and 2 more accurately
estimate each State’s share of the NFJPeligible population. Modification 1
removes non-wages from COA farm
labor expenditures. UI payroll tax
payments, which vary by State, are not
wages. Modification 2 removes labor
expenditures on H–2A workers from
COA farm labor expenditures to align
the allotment formula with the NFJPeligible population. Therefore,
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including the UI payroll tax payments
and labor expenditures on H–2A
workers in the formula did not
accurately count the number of eligible
NFJP participants.
III. Response to Public Comments
ETA received a total of 24 comments
from four commenters. Nine comments
were general in nature, one concerned
Modification 1, two concerned
Modification 2, nine concerned
Modification 3, and three concerned
state-specific issues. The following is a
summary of these comments and ETA’s
response.
A. General Comments
General comments concerned basic
elements of the formula, applying newer
data to and modifying the formula,
support for including a hold-harmless
mechanism, and questions about how a
hold-harmless works. Several of the
general comments were supportive of
using updated data in and modifying
the allotment formula. Support for the
modifications, however, was limited to
modifications 1 and 2: Backing out UI
and H–2A expenditures from the COA
Wage Bill, respectively. Two general
comments concerned the accounting of
work-authorized farmworkers in the
formula. One commenter opined that no
modification was made to account for
farmworkers who do not have
authorization to work in the United
States, and one commenter inquired if
ETA used 2013–2014 NAWS data on
work authorization status to determine
the total number of NFJP-eligible
individuals. One commenter opined
that the data used in the formula will
not fully capture the totality of MSFWs
to whom grantees provide services,
while another opined that the Legal
Services Corporation’s allotment
formula is a better representation of the
NFJP-eligible population. Lastly, there
was a general question about how the
hold-harmless mechanism affects
grantees’ percentage of the allotment.
ETA used nine years (2006–2014) of
regional-level NAWS data to determine
the share of crop hours in each state that
were performed by NFJP-eligible crop
workers. The eligibility criteria included
whether a crop worker was authorized
to work in the United States. The
application of NAWS data to the
allotment formula is discussed in
greater detail in the May 19, 1999 FRN
(64 FR 27390) on pages 27397 to 27399.
While ETA is aware that the formula
does not account for the totality of the
NFJP-eligible population, it is not aware
of data sources that could be used to
estimate subpopulations of NFJPeligible farmworkers that would meet
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the requirements for allotment formula
of accuracy, transparency, and reliance
on published data.
Although there are similarities
between the LSC and ETA formula, they
are different, because they are
constructed for different purposes.
While LSC’s formula is designed to
estimate the total number of agricultural
workers and their dependents who are
eligible for LSC-funded services, ETA’s
formula is concerned with determining
each State service area’s relative share of
the NFJP-eligible population. Therefore,
ETA will not adopt the LSC formula.
The hold-harmless functions in the
following manner. There is a limited
total amount of funding to be
distributed to all of the states. For states
that would have lost funds based on the
formula without the hold-harmless,
when the hold-harmless is applied,
funding must be reduced from other
states that did not fall below the holdharmless to make up the shortfall. This
reduction is implemented by formula
proportionally across the affected states.
In some cases, this can result in a state
experiencing a reduction in funding
with the hold-harmless provision even
though it would have experienced an
increase without the hold-harmless
provision. However, in no instance will
a state’s funding fall below the holdharmless level.
B. Modification 1 Comment
One commenter agreed that it was
appropriate to remove UI payroll tax
payments from Census of Agriculture
farm labor expenditures (Modification
1), noting that UI payments are not
wages, and UI rules, regulations, and
rates vary by State.
ETA is pleased that it is now possible
to back out this number from the
calculation of the NFJP allotment
formula.
C. Modification 2 Comments
One commenter questioned the
backing out of H–2A expenditures from
COA expenditures (Modification 2) due
to: (1) A recent increase in the number
of foreign-born farmworkers employed
through the H–2A program, which
could create an increase in emergencies
for which NFJP grantees will be asked
to provide assistance; and (2) a greater
coordination, stemming from the
enactment of the WIOA, between State
Monitor Advocates (SMA) and NFJP
grantees regarding the provision of
emergency services for H–2A
farmworkers.
ETA has determined that
Modification 2 is needed to strike a
balance between ETA policy concerning
the utilization of grant funds for
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emergency services and the primary
purpose of NFJP, which is to strengthen
the ability of eligible MSFWs and their
dependents to obtain or retain
unsubsidized employment, stabilize
their unsubsidized employment, and
achieve economic self-sufficiency,
including upgraded employment in
agriculture (WIOA 20 CFR 685.100).
D. Modification 3 Comments
Of the nine comments concerning
Modification 3, only one was
supportive. Generally, commenters
expressed concern that Modification 3
caused big changes in funding levels for
some states, particularly those in the
Midwest that have large numbers of
animal agricultural workers relative to
crop workers. One commenter pointed
out that the Department was able to
estimate the share of animal agricultural
workers in each state with income
below the Lower Living Standard
Income Level (LLSIL) and inquired if
the Department was also able to
estimate the number of dependents of
animal agricultural workers and, if not,
whether it would be possible to assume
animal agricultural and crop workers
are similar with respect to the number
of their offspring. Another commenter
opined that the Department should
either use data on crop workers to
estimate the number of dependents of
animal agricultural workers or drop
Modification 3. One commenter
inquired if the Department had used
NAWS data to account for eligible
dependents of eligible MSFWs in each
State’s share of the total NFJP-eligible
population and, if so, had it accounted
for the fact that some children of
farmworkers are themselves
farmworkers, while another commenter
opined that the Department triplecounted dependents because some are
themselves farmworkers and some have
two farmworker parents. Lastly, one
commenter expressed concern that
grantees were not given sufficient time
to comment on Modification 3.
ETA informed the public through the
May 23, 2018 FRN (83 FR 23937) of its
proposal to use NAWS data to estimate,
by region, the average number of NFJPeligible dependents ages 14 and above
per MSFW-eligible crop worker and, in
doing so, accounted for the fact that
some dependents are themselves
farmworkers.
Based on the public comments
received, ETA agrees with the
comments that states with large
numbers of animal agricultural workers
relative to crop workers would be
unfairly impacted by this modification.
As such, it has not applied Modification
3 to the PY 2018 allotment formula.
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Should survey data on animal
agricultural workers, like NAWS data on
crop workers, become available, ETA
would reconsider applying this
modification to the formula and would
give the public an opportunity to
comment.
Although in some circumstances it
may be appropriate to use demographic
data collected from crop agricultural
workers to estimate the characteristics
of animal agricultural workers, ETA
does not believe it would be appropriate
to use crop worker data to estimate, by
region of the country, the average
number of NFJP-eligible dependents per
eligible MSFW employed in animal
agriculture. Doing so would require ETA
to make a large number of assumptions,
which would fail to adhere to the
requirements for allotment formula of
accuracy, transparency, and reliance on
published data.
Regarding the question and opinion
about over-counting dependents of crop
workers, ETA confirms that it did not
over-count these dependents. ETA
reviewed the analysis program that was
used to estimate, by region, the average
number of eligible dependents ages 14
and over per eligible MSFW and
confirms that dependents who
themselves worked in agriculture were
not included in the analysis.
Furthermore, crop workers in families
where the spouse was also a farmworker
were weighted appropriately, so that the
number of dependents in such families
was not overestimated.
ETA will include background
analyses steps, such as these, in a future
FRN concerning changes to the
allotment formula involving the
calculation of dependents, should it
ever determine that it is able to account
for eligible dependents of eligible
MSFWs employed in animal agriculture
in the NFJP allotment formula.
E. State-Specific Comments
Two commenters inquired how a
particular state would be impacted by
the hold-harmless, and one inquired
about the breakdown of funds, within a
particular state, by grantee.
ETA would like to clarify that a
State’s hold-harmless is not based on its
PY 2018 allotment percentage share
without the hold-harmless. The
calculation is based on 95 percent of its
PY 2017 allotment percentage share
(column 2) as applied to the PY 2018
formula funds available.
Regarding the breakdown of a State’s
award by grantee within that State, ETA
will provide this information when it
issues its final allotment TEGL.
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32153
IV. Description of the Hold-Harmless
Provision
For PY 2018, 2019, and 2020, the
Department intends to apply a holdharmless provision to the allotment
formula in order to allow a staged
transition from the application of the
previous formula to the modified
formula. The hold-harmless provision
provides for a stop loss/stop gain limit
to transition to the use of the updated
data. Due to the length of time since the
data has been updated, it is anticipated
there may be significant changes for a
few states, necessitating the stop loss/
stop gain approach. The stop loss/stop
gain approach is based on a State
service area’s previous year’s allotment
percentage share, which is its relative
share of the total formula allotments.
The staged transition of the holdharmless provision will be implemented
specifically as follows:
(1) In PY 2018, State service areas will
receive an amount equal to at least 95
percent of their PY 2017 allotment
percentage share, as applied to the PY
2018 formula funds available;
(2) In PY 2019, State service areas will
receive an amount equal to at least 90
percent of their PY 2018 allotment
percentage share, as applied to the PY
2019 formula funds available;
(3) In PY 2020, State service areas will
receive an amount equal to at least 85
percent of their PY 2019 allotment
percentage share, as applied to the PY
2020 formula funds available.
In PY 2018, 2019, and 2020, the holdharmless provision also provides that no
State service area will receive an
amount that is more than 150 percent of
their previous year’s allotment
percentage share.
In PY 2021, since the Department has
a responsibility to use the most current
and reliable data available, amounts for
the new awards will be based on
updated data from the sources described
in Section II, pending their availability.
At that time, the Department will
determine whether the changes to State
allotments are significant enough to
warrant another hold-harmless
provision. Otherwise, allotments to each
State service area will be for an amount
resulting from a direct allotment of the
proposed funding formula without
adjustment.
V. Minimum Funding Provisions
A State area that would receive less
than $60,000 by application of the
formula will, at the option of the DOL,
receive no allotment or, if practical, be
combined with another adjacent State
area. Funding below $60,000 is deemed
insufficient for sustaining an
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independently administered program.
However, if practical, a State
jurisdiction that would receive less than
$60,000 may be combined with another
adjacent State area.
VI. Program Year 2018 Allotments
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The state allotments set forth in the
Table appended to this notice reflect the
distribution resulting from the allotment
formula described above. For PY 2017,
$81,896,000 was appropriated for
migrant and seasonal farmworker
programs, of which $75,505,575 was
allotted on the basis of the old formula
after $407,010 was set aside for program
integrity. The remaining $5,489,415 of
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the PY 2017 appropriation was retained
to fund housing grants after $27,585 was
set aside for program integrity, and
$494,000 was retained for Training and
Technical Assistance. The figures in the
first numerical column show the actual
PY 2017 formula allotments to State
service areas. The next column shows
the percentage of each allotment.
For PY 2018, the funding level
provided for in the Consolidated
Appropriations Act, 2018 for the
migrant and seasonal farmworker
program is $81,203,000 and will be
allotted on the basis of the formula. For
purposes of illustrating the effects of the
allotment formula, the State service area
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allotments with the application of the
first-year (95 percent) hold-harmless
and minimum funding provisions,
followed by the percentages, are shown
in columns 3 and 4. The difference
between PY 2017 and PY 2018
allotments are shown in column 5. The
sixth column of the Table shows the
allotments based on the formula without
the application of the hold-harmless or
minimum funding provisions. The
percentages are reported in column 7.
Rosemary Lahasky,
Deputy Assistant Secretary for Employment
and Training, Labor.
BILLING CODE 4510–FN–P
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U. S. Department of Labor
Employment and Training Administration
National Farmworker Jobs Program
Impact of Final PY 2018 Allotments to States
py 2017
py 2018 Ul H-2AAdil
With hold harmless
Allotment
State
Allotment
(2)
(3)
Without hold harmless
Percentage
Share
(7)
(PY 2018 vs. PY 2017)
(4)
Allotment
(6)
Percentage
Share
(5)
Difference
$75,505,575
100.00000
$81,203,000
100.00000
$5,697,425
$81 ,203,000
100.00000
764,119
780,688
768,204
2,208,505
1,128,611
0.96140
0.00000
2.71973
1.38986
16,569
2,057,698
1,104,657
1 01200
0.00000
2.72523
1.46301
150,807
23,954
2,432,392
1,096,396
0.94603
0.00000
2.99545
1.35019
19,283,115
964,874
340,039
122,461
25.53866
1.27788
0.45035
0.16219
20,302,807
1,172,108
350,127
135,621
2500253
1.44343
0.43117
0.16701
1,019,692
207,234
10,088
13,160
22,360,997
1,290,930
385,621
149,369
27.53716
1.58976
0.47489
0.18395
Dis! of Columbia
Florida
Georgia
Hawaii
4,000,446
1,478,430
318,882
0.00000
5.29821
1.95804
0.42233
4,087,192
1,510,489
325,797
0.00000
503330
1.86014
0.40121
86,746
32,059
6,915
3,606,857
1,602,040
308,641
0.00000
4.44178
1.97288
0.38009
Idaho
Illinois
Indiana
Iowa
1,037,089
1,386,739
891,099
1,135,326
1.37353
1.83660
1.18018
1.50363
1,546,823
1,520,015
996,927
1,381,814
1.90488
1.87187
1.22770
1.70168
509,734
133,276
105,828
246,488
1,703,632
1,674,107
1,097,990
1,521,896
209799
206163
1.35215
1.87419
Kansas
Kentucky
Louisiana
Maine
1,037,193
1,168,337
878,803
282,793
1.37366
1.54735
1.16389
0.37453
1,061,734
1,193,671
897,859
288,925
1.30751
1.46998
1.10570
0.35581
24,541
25,334
19,056
6,132
1,169,367
1,000,708
764,787
315,182
1.44005
1.23235
0.94182
0.38814
Maryland
Massachusetts
Michigan
Minnesota
349,786
310,726
1,350,141
1,190,716
0.46326
0.41153
1.78813
1.57699
357,371
317,464
1,852,921
1,418,215
0.44010
0.39095
2.28184
1.74651
7,585
6,738
502,780
227,499
370,569
349,258
2,040,761
1,561,987
0.45635
0.43010
2.51316
1.92356
Mississippi
Missouri
Montana
Nebraska
1,251,630
951,239
576,293
1,049,996
1.65767
1.25983
0.76325
1.39062
1,278,771
971,866
588,789
1,127,274
1.57478
1.19684
0.72508
1.38822
27,141
20,627
12,496
77,278
929,482
944,305
602,338
1,241,551
1.14464
1.16289
0.74177
1.52895
173,439
98,352
671,802
913,490
0.22970
0.13026
0.88974
1.20983
177,200
100,577
686,369
933,298
0.21822
0.12386
0.84525
1.14934
3,761
2,225
14,567
19,808
182,939
110,773
577,864
1,005,311
0.22529
0.13641
0.71163
1.23802
New York
North Carolina
North Dakota
Ohio
1,598,538
2,596,474
586,161
1,215,667
2.11711
3.43878
0.77631
1.61004
1,633,201
2,652,776
720,475
1,242,028
201126
3.26684
0.88725
1.52953
34,663
56,302
134,314
26,361
1,509,341
2,528,390
793,513
1,358,636
1.85873
3.11367
0.97720
1.67314
Oklahoma
Oregon
Pennsylvania
Puerto Rico
1,228,006
1,902,686
1,490,645
2,950,975
1.62638
2.51993
1.97422
3.90829
1,254,634
2,129,586
1,522,968
3,014,964
1.54506
2.62255
1.87551
3.71287
26,628
226,900
32,323
63,989
844,974
2,345,472
1,424,004
2,279,197
1 04057
2.88841
1.75363
2.80679
37,337
932,956
598,476
827,313
0.04945
1.23561
0.79262
1.09570
52,828
953,186
611,453
845,253
0.06506
1.17383
0.75299
1 04091
15,491
20,230
12,977
17,940
58,183
777,471
585,156
857,454
0.07165
0.95744
0.72061
1 05594
Texas
Utah
Vermont
Virginia
6,438,740
279,058
184,099
895,239
8.52750
0.36959
0.24382
1.18566
6,578,359
406,255
188,091
914,652
8.10113
0.50030
0.23163
1.12638
139,619
127,197
3,992
19,413
4,828,716
447,439
178,027
960,818
5.94647
0.55101
0.21924
1.18323
Washington
West Virqinia
Wisconsin
Wyoming
2,981,590
189,444
1,206,739
225,722
3.94883
0.25090
1.59821
0.29895
3,931,488
193,552
1,426,806
230,617
4.84156
0.23836
1.75709
0.28400
949,898
4,108
220,067
4,895
4,330,041
123,103
1,571,448
235,363
5.33237
0.15160
1.93521
0.28985
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Nevada
New Hampshire
New Jersey
New Mexico
Rhode Island
South Carolina
South Dakota
Tennessee
[FR Doc. 2018–14747 Filed 7–10–18; 8:45 am]
daltland on DSKBBV9HB2PROD with NOTICES
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NATIONAL SCIENCE FOUNDATION
Request for Feedback on the
Interagency Arctic Research Policy
Committee’s Draft Principles for
Conducting Research in the Arctic
Request for public comment on
Principles for Conducting Research in
the Arctic; Corrected.
ACTION:
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The National Science
Foundation (NSF) published a
document in the Federal Register of
July 5, 2018, concerning request for
public comment on the Principles for
Conducting Research in the Arctic. The
notice was published without a link to
the document under review.
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[Federal Register Volume 83, Number 133 (Wednesday, July 11, 2018)]
[Notices]
[Pages 32151-32155]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-14747]
=======================================================================
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DEPARTMENT OF LABOR
Employment and Training Administration
Employment and Training Administration (ETA) Program Year (PY)
2018; Workforce Innovation and Opportunity Act (WIOA) Section 167,
National Farmworker Jobs Program (NFJP) Formula Modifications and
Allotments
AGENCY: Employment and Training Administration, Labor.
ACTION: Notice.
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SUMMARY: This Notice announces updates and modifications to the
allotment formula for the National Farmworker Jobs Program (NFJP),
authorized under the Workforce Innovation and Opportunity Act (WIOA),
Section 167, and allotments for Program Year (PY) 2018. These
allotments are based on the enacted NFJP funding appropriation in the
Consolidated Appropriation Act, 2018.
On May 23, 2018, the Employment and Training Administration (ETA)
published a notice in the Federal Register (83 FR 23937) concerning the
use of updated data in and proposed modifications to the formula ETA
uses to distribute funding for NFJP. The notice also presented
preliminary State planning estimates for PY 2018. Public comments were
requested at that time. The comment period closed May 30, 2018. This
notice summarizes and responds to the comments, and publishes the final
PY 2018 allotments.
DATES: The PY 2018 NFJP allotments cover July 1, 2018 through June 30,
2019.
ADDRESSES: Questions on this notice can be submitted to [email protected] or
the Employment and Training Administration, Office of Workforce
Investment, 200 Constitution Ave. NW, Room C4510, Washington, DC 20210,
Attention: Laura Iba[ntilde]ez, Unit Chief, (202) 693-3645 or Steven
Rietzke, Division Chief at (202) 693-3912.
FOR FURTHER INFORMATION CONTACT: Laura Iba[ntilde]ez, Unit Chief, (202)
693-3645 or Steven Rietzke, Division Chief at (202) 693-3912.
SUPPLEMENTARY INFORMATION: This notice is published pursuant to Section
182(d) of the WIOA, Prompt Allotment of Funds.
I. Background
This notice represents the second of a two-stage process. In the
first stage, ETA solicited and considered public comments regarding the
use of updated data in and three proposed modifications to the NFJP
allotment formula. Based on the comments and ETA's consideration of
them, ETA has applied the updated data to the formula and implemented
two of the three proposed modifications. In this second stage, the
final formula modifications are described and the resulting allotments
are published. The updated data and modifications have been processed
in accordance with the allotment formula methodology, which was
described in detail in a notice that was published in the Federal
Register on May 19, 1999 (64 FR 27390), which is accessible at https://www.federalregister.gov/.
The formula was developed for the purpose of distributing funds
geographically by State service area, on the basis of each State
service area's relative share of persons eligible for the program. New
data from each of the four data files that have been the basis of the
formula since 1999 are used to determine the distribution of PY 2018
funds. In addition, beginning in PY 2018, ETA will implement two
modifications to the allotment formula, which will result in more
accurate estimates of each State service area's relative share of
persons eligible for the program. The modifications are the result of
ETA's review of the formula in the context of the NFJP-eligible
population and farm labor market changes, ETA's consideration of public
comments received in response to the May 23, 2018 Federal Register
Notice (FRN) (83 FR 23937), and feedback that it received from NFJP
grantees prior to and following informational webinars that ETA hosted
on February 23, 2017, and April 27, 2017.
Section II of this notice reviews the formula updates and
modifications that were proposed in the May 23, 2018 notice.
Section III summarizes the comments that ETA received in response
to the May 23, 2018 notice and ETA's decisions concerning the allotment
formula based on those comments.
Section IV describes a hold-harmless provision, which will be put
into place for the implementation year and the following years. The
hold-harmless provision is designed to provide a
[[Page 32152]]
staged transition from old to new funding levels for State service
areas. This was also proposed and discussed in the May 23, 2018 FRN (83
FR 23937).
Section V describes minimum funding provisions to address State
service areas which would receive less than $60,000.
Section VI describes the application of the formula and the hold-
harmless provision using allotments for PY 2018.
II. Formula Updates and Modifications
As with all State allotments since 1999, the PY 2018 allotments are
based on four data sources: (1) State-level, hired farm labor
expenditure data from the United States Department of Agriculture's
(USDA) Census of Agriculture (COA); (2) regional-level, average hourly
earnings data from the USDA's Farm Labor Survey (FLS); (3) regional-
level, demographic data from ETA's National Agricultural Workers Survey
(NAWS); and, (4) Lower Living Standard Income Level data from the
United States Census Bureau's American Community Survey (ACS). The PY
2018 allotments are based on 2012 COA and FLS data, 2006 to 2014 NAWS
data, and 2010 to 2014 ACS data. A detailed description of how each
data source is used in the formula is in the May 19, 1999 FRN (64 FR
27390) on pages 27396 to 27399.
In addition to populating the formula with new data, two
modifications have been implemented. Both are ``back-out'' adjustments
to the COA hired labor expenditures (Wage Bill) to account for: (1)
Unemployment Insurance (UI) payroll tax payments made on behalf of
farmworkers; and (2) expenditures on H-2A workers. A third modification
was proposed to align the allotment formula with the definition of
dependent under WIOA Section 167(i)(2)(B) and (3)(B) by accounting for
eligible dependents ages 14 and over of eligible Migrant and Seasonal
Farmworkers (MSFW) in each State's share of the total eligible
population. However, based on public comments and ETA's consideration
of them, the third modification will not be implemented. The rationale
for not implementing this modification is described in Section III,
below.
Modifications 1 and 2 more accurately estimate each State's share
of the NFJP-eligible population. Modification 1 removes non-wages from
COA farm labor expenditures. UI payroll tax payments, which vary by
State, are not wages. Modification 2 removes labor expenditures on H-2A
workers from COA farm labor expenditures to align the allotment formula
with the NFJP-eligible population. Therefore, including the UI payroll
tax payments and labor expenditures on H-2A workers in the formula did
not accurately count the number of eligible NFJP participants.
III. Response to Public Comments
ETA received a total of 24 comments from four commenters. Nine
comments were general in nature, one concerned Modification 1, two
concerned Modification 2, nine concerned Modification 3, and three
concerned state-specific issues. The following is a summary of these
comments and ETA's response.
A. General Comments
General comments concerned basic elements of the formula, applying
newer data to and modifying the formula, support for including a hold-
harmless mechanism, and questions about how a hold-harmless works.
Several of the general comments were supportive of using updated data
in and modifying the allotment formula. Support for the modifications,
however, was limited to modifications 1 and 2: Backing out UI and H-2A
expenditures from the COA Wage Bill, respectively. Two general comments
concerned the accounting of work-authorized farmworkers in the formula.
One commenter opined that no modification was made to account for
farmworkers who do not have authorization to work in the United States,
and one commenter inquired if ETA used 2013-2014 NAWS data on work
authorization status to determine the total number of NFJP-eligible
individuals. One commenter opined that the data used in the formula
will not fully capture the totality of MSFWs to whom grantees provide
services, while another opined that the Legal Services Corporation's
allotment formula is a better representation of the NFJP-eligible
population. Lastly, there was a general question about how the hold-
harmless mechanism affects grantees' percentage of the allotment.
ETA used nine years (2006-2014) of regional-level NAWS data to
determine the share of crop hours in each state that were performed by
NFJP-eligible crop workers. The eligibility criteria included whether a
crop worker was authorized to work in the United States. The
application of NAWS data to the allotment formula is discussed in
greater detail in the May 19, 1999 FRN (64 FR 27390) on pages 27397 to
27399. While ETA is aware that the formula does not account for the
totality of the NFJP-eligible population, it is not aware of data
sources that could be used to estimate subpopulations of NFJP-eligible
farmworkers that would meet the requirements for allotment formula of
accuracy, transparency, and reliance on published data.
Although there are similarities between the LSC and ETA formula,
they are different, because they are constructed for different
purposes. While LSC's formula is designed to estimate the total number
of agricultural workers and their dependents who are eligible for LSC-
funded services, ETA's formula is concerned with determining each State
service area's relative share of the NFJP-eligible population.
Therefore, ETA will not adopt the LSC formula.
The hold-harmless functions in the following manner. There is a
limited total amount of funding to be distributed to all of the states.
For states that would have lost funds based on the formula without the
hold-harmless, when the hold-harmless is applied, funding must be
reduced from other states that did not fall below the hold-harmless to
make up the shortfall. This reduction is implemented by formula
proportionally across the affected states. In some cases, this can
result in a state experiencing a reduction in funding with the hold-
harmless provision even though it would have experienced an increase
without the hold-harmless provision. However, in no instance will a
state's funding fall below the hold-harmless level.
B. Modification 1 Comment
One commenter agreed that it was appropriate to remove UI payroll
tax payments from Census of Agriculture farm labor expenditures
(Modification 1), noting that UI payments are not wages, and UI rules,
regulations, and rates vary by State.
ETA is pleased that it is now possible to back out this number from
the calculation of the NFJP allotment formula.
C. Modification 2 Comments
One commenter questioned the backing out of H-2A expenditures from
COA expenditures (Modification 2) due to: (1) A recent increase in the
number of foreign-born farmworkers employed through the H-2A program,
which could create an increase in emergencies for which NFJP grantees
will be asked to provide assistance; and (2) a greater coordination,
stemming from the enactment of the WIOA, between State Monitor
Advocates (SMA) and NFJP grantees regarding the provision of emergency
services for H-2A farmworkers.
ETA has determined that Modification 2 is needed to strike a
balance between ETA policy concerning the utilization of grant funds
for
[[Page 32153]]
emergency services and the primary purpose of NFJP, which is to
strengthen the ability of eligible MSFWs and their dependents to obtain
or retain unsubsidized employment, stabilize their unsubsidized
employment, and achieve economic self-sufficiency, including upgraded
employment in agriculture (WIOA 20 CFR 685.100).
D. Modification 3 Comments
Of the nine comments concerning Modification 3, only one was
supportive. Generally, commenters expressed concern that Modification 3
caused big changes in funding levels for some states, particularly
those in the Midwest that have large numbers of animal agricultural
workers relative to crop workers. One commenter pointed out that the
Department was able to estimate the share of animal agricultural
workers in each state with income below the Lower Living Standard
Income Level (LLSIL) and inquired if the Department was also able to
estimate the number of dependents of animal agricultural workers and,
if not, whether it would be possible to assume animal agricultural and
crop workers are similar with respect to the number of their offspring.
Another commenter opined that the Department should either use data on
crop workers to estimate the number of dependents of animal
agricultural workers or drop Modification 3. One commenter inquired if
the Department had used NAWS data to account for eligible dependents of
eligible MSFWs in each State's share of the total NFJP-eligible
population and, if so, had it accounted for the fact that some children
of farmworkers are themselves farmworkers, while another commenter
opined that the Department triple-counted dependents because some are
themselves farmworkers and some have two farmworker parents. Lastly,
one commenter expressed concern that grantees were not given sufficient
time to comment on Modification 3.
ETA informed the public through the May 23, 2018 FRN (83 FR 23937)
of its proposal to use NAWS data to estimate, by region, the average
number of NFJP-eligible dependents ages 14 and above per MSFW-eligible
crop worker and, in doing so, accounted for the fact that some
dependents are themselves farmworkers.
Based on the public comments received, ETA agrees with the comments
that states with large numbers of animal agricultural workers relative
to crop workers would be unfairly impacted by this modification. As
such, it has not applied Modification 3 to the PY 2018 allotment
formula. Should survey data on animal agricultural workers, like NAWS
data on crop workers, become available, ETA would reconsider applying
this modification to the formula and would give the public an
opportunity to comment.
Although in some circumstances it may be appropriate to use
demographic data collected from crop agricultural workers to estimate
the characteristics of animal agricultural workers, ETA does not
believe it would be appropriate to use crop worker data to estimate, by
region of the country, the average number of NFJP-eligible dependents
per eligible MSFW employed in animal agriculture. Doing so would
require ETA to make a large number of assumptions, which would fail to
adhere to the requirements for allotment formula of accuracy,
transparency, and reliance on published data.
Regarding the question and opinion about over-counting dependents
of crop workers, ETA confirms that it did not over-count these
dependents. ETA reviewed the analysis program that was used to
estimate, by region, the average number of eligible dependents ages 14
and over per eligible MSFW and confirms that dependents who themselves
worked in agriculture were not included in the analysis. Furthermore,
crop workers in families where the spouse was also a farmworker were
weighted appropriately, so that the number of dependents in such
families was not overestimated.
ETA will include background analyses steps, such as these, in a
future FRN concerning changes to the allotment formula involving the
calculation of dependents, should it ever determine that it is able to
account for eligible dependents of eligible MSFWs employed in animal
agriculture in the NFJP allotment formula.
E. State-Specific Comments
Two commenters inquired how a particular state would be impacted by
the hold-harmless, and one inquired about the breakdown of funds,
within a particular state, by grantee.
ETA would like to clarify that a State's hold-harmless is not based
on its PY 2018 allotment percentage share without the hold-harmless.
The calculation is based on 95 percent of its PY 2017 allotment
percentage share (column 2) as applied to the PY 2018 formula funds
available.
Regarding the breakdown of a State's award by grantee within that
State, ETA will provide this information when it issues its final
allotment TEGL.
IV. Description of the Hold-Harmless Provision
For PY 2018, 2019, and 2020, the Department intends to apply a
hold-harmless provision to the allotment formula in order to allow a
staged transition from the application of the previous formula to the
modified formula. The hold-harmless provision provides for a stop loss/
stop gain limit to transition to the use of the updated data. Due to
the length of time since the data has been updated, it is anticipated
there may be significant changes for a few states, necessitating the
stop loss/stop gain approach. The stop loss/stop gain approach is based
on a State service area's previous year's allotment percentage share,
which is its relative share of the total formula allotments. The staged
transition of the hold-harmless provision will be implemented
specifically as follows:
(1) In PY 2018, State service areas will receive an amount equal to
at least 95 percent of their PY 2017 allotment percentage share, as
applied to the PY 2018 formula funds available;
(2) In PY 2019, State service areas will receive an amount equal to
at least 90 percent of their PY 2018 allotment percentage share, as
applied to the PY 2019 formula funds available;
(3) In PY 2020, State service areas will receive an amount equal to
at least 85 percent of their PY 2019 allotment percentage share, as
applied to the PY 2020 formula funds available.
In PY 2018, 2019, and 2020, the hold-harmless provision also
provides that no State service area will receive an amount that is more
than 150 percent of their previous year's allotment percentage share.
In PY 2021, since the Department has a responsibility to use the
most current and reliable data available, amounts for the new awards
will be based on updated data from the sources described in Section II,
pending their availability. At that time, the Department will determine
whether the changes to State allotments are significant enough to
warrant another hold-harmless provision. Otherwise, allotments to each
State service area will be for an amount resulting from a direct
allotment of the proposed funding formula without adjustment.
V. Minimum Funding Provisions
A State area that would receive less than $60,000 by application of
the formula will, at the option of the DOL, receive no allotment or, if
practical, be combined with another adjacent State area. Funding below
$60,000 is deemed insufficient for sustaining an
[[Page 32154]]
independently administered program. However, if practical, a State
jurisdiction that would receive less than $60,000 may be combined with
another adjacent State area.
VI. Program Year 2018 Allotments
The state allotments set forth in the Table appended to this notice
reflect the distribution resulting from the allotment formula described
above. For PY 2017, $81,896,000 was appropriated for migrant and
seasonal farmworker programs, of which $75,505,575 was allotted on the
basis of the old formula after $407,010 was set aside for program
integrity. The remaining $5,489,415 of the PY 2017 appropriation was
retained to fund housing grants after $27,585 was set aside for program
integrity, and $494,000 was retained for Training and Technical
Assistance. The figures in the first numerical column show the actual
PY 2017 formula allotments to State service areas. The next column
shows the percentage of each allotment.
For PY 2018, the funding level provided for in the Consolidated
Appropriations Act, 2018 for the migrant and seasonal farmworker
program is $81,203,000 and will be allotted on the basis of the
formula. For purposes of illustrating the effects of the allotment
formula, the State service area allotments with the application of the
first-year (95 percent) hold-harmless and minimum funding provisions,
followed by the percentages, are shown in columns 3 and 4. The
difference between PY 2017 and PY 2018 allotments are shown in column
5. The sixth column of the Table shows the allotments based on the
formula without the application of the hold-harmless or minimum funding
provisions. The percentages are reported in column 7.
Rosemary Lahasky,
Deputy Assistant Secretary for Employment and Training, Labor.
BILLING CODE 4510-FN-P
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[FR Doc. 2018-14747 Filed 7-10-18; 8:45 am]
BILLING CODE 4510-FN-C