Allocating Grants to States for Reemployment Services and Eligibility Assessments (RESEA) in Accordance With Title III, Section 306 of the Social Security Act (SSA), 39018-39020 [2019-16988]
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Federal Register / Vol. 84, No. 153 / Thursday, August 8, 2019 / Notices
any pending application of Anthony
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application of Anthony Schapera, M.D.
for registration in California. This Order
is effective September 9, 2019.
Dated: July 28, 2019.
Uttam Dhillon,
Acting Administrator.
This completes the process to renew the
Charter for an additional 2-year period.
Gregory Joy,
Policy Advisor/Designated Federal Officer,
Bureau of Justice Assistance.
[FR Doc. 2019–16987 Filed 8–7–19; 8:45 am]
BILLING CODE 4410–18–P
[FR Doc. 2019–17003 Filed 8–7–19; 8:45 am]
DEPARTMENT OF LABOR
BILLING CODE 4410–09–P
Employment and Training
Administration
DEPARTMENT OF JUSTICE
Office of Justice Programs
[OJP (BJA) Docket No. 1763]
Notice of Renewal of the Charter for
the Public Safety Officer Medal of Valor
Review Board
Office of Justice Programs
(OJP), Bureau of Justice Assistance
(BJA), Justice.
ACTION: Renewal of the Charter.
AGENCY:
jbell on DSK3GLQ082PROD with NOTICES
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Jkt 247001
Office of Unemployment
Insurance (OUI), Employment and
Training Administration (ETA),
Department of Labor (DOL).
ACTION: Notice.
AGENCY:
The Bipartisan Budget Act of
2018 (BBA), Public Law 115–123 (2018),
established permanent authorization for
the RESEA program by enacting section
306 of title III, (SSA). This notice
announces the formula to allocate base
funds for the RESEA program, as
provided under Section 306(f)(1), SSA,
42 U.S.C. 506(f)(1).
On April 4, 2019, ETA published a
notice in the Federal Register (84 FR
13319) requesting public comment
concerning the development of a
proposed formula that ETA will use to
distribute funding to States for RESEA.
The notice presented a description of a
proposed allocation formula and public
comments were requested. The
comment period closed on May 6, 2019.
This notice summarizes and responds to
the comments received and publishes
the final allocation formula that will
take effect in Fiscal Year (FY) 2021.
DATES: The RESEA allocation formula
described in this notice will take effect
in FY 2021.
ADDRESSES: Questions about this notice
may be submitted to the U.S.
Department of Labor, Employment and
Training Administration, Office of
Unemployment Insurance, 200
Constitution Avenue NW, Room S–
4524, Washington, DC 20210, Attention:
Lawrence Burns, or by email at DOLETA-UI-FRN@dol.gov.
FOR FURTHER INFORMATION CONTACT:
Lawrence Burns, Division of
Unemployment Insurance Operations, at
202–693–3141 (this is not a toll-free
number), TTY 1–877–889–5627, or by
email at Burns.Lawrence@dol.gov.
SUPPLEMENTARY INFORMATION:
SUMMARY:
The Bureau of Justice
Assistance provides notice that the
charter of the Public Safety Officer
Medal of Valor Review Board has been
renewed.
FOR FURTHER INFORMATION CONTACT: Visit
the website for the Public Safety Officer
Medal of Valor Review Board at https://
www.bja.gov/programs/medalofvalor/
index.html or contact Gregory Joy,
Policy Advisor, Bureau of Justice
Assistance, Office of Justice Programs,
810 7th Street NW, Washington, DC
20531, by telephone at (202) 514–1369,
toll free (866) 859–2687, or by email at
Gregory.joy@usdoj.gov.
SUPPLEMENTARY INFORMATION: The
Bureau of Justice Assistance provides
notice that the charter of the Public
Safety Officer Medal of Valor Review
Board has been renewed.
The Charter for the Public Safety
Officer Medal of Valor Review Board
was submitted to the U.S. Attorney
General, who subsequent approved its
renewal on April 24, 2019. Following
this approval, separate correspondence
were mailed June 5, 2019, to: The
Honorable Lindsey Graham, Chairman,
Committee on the Judiciary, United
States Senate; The Honorable Dianne
Feinstein, Ranking Member, Committee
on the Judiciary, United States Senate;
The Honorable Jerrold Nadler,
Chairman, Committee on the Judiciary,
U.S. House of Representatives; The
Honorable Doug Collins, Ranking
Member, Committee on the Judiciary,
U.S. House of Representatives; and Ms.
Sara Striner, Chair, Federal Advisory
Committee Desk, Library of Congress.
SUMMARY:
Allocating Grants to States for
Reemployment Services and Eligibility
Assessments (RESEA) in Accordance
With Title III, Section 306 of the Social
Security Act (SSA)
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Fmt 4703
Sfmt 4703
I. Introduction
Since 2005, DOL and participating
State workforce agencies have been
addressing individual reemployment
needs of Unemployment Insurance (UI)
claimants and working to prevent and
detect UI improper payments through
the voluntary UI Reemployment and
Eligibility Assessment (REA) program
and, beginning in FY 2015, through the
voluntary RESEA program.
On February 9, 2018, the President
signed the BBA, which included
amendments to the SSA creating a
permanent authorization for the RESEA
program. The RESEA provisions are
contained in section 30206 of the BBA,
enacting new section 306 of the SSA. 42
U.S.C. 506. Section 306, SSA also
contains provisions for funding the
RESEA program.
The primary goals of the RESEA
program are to: Improve employment
outcomes for individuals that receive
unemployment compensation (UC) by
reducing average duration of receipt of
UC through employment; strengthen
program integrity and reduce improper
payments; promote alignment with the
broader vision of the Workforce
Innovation and Opportunity Act
through increased program integration
and service delivery for job seekers; and
establish RESEA as an entry point to
other workforce system partner
programs for individuals receiving UC.
Core services that must be provided to
RESEA participants are:
• UI eligibility assessment, including
review of work search activities, and
referral to adjudication, as appropriate,
if an issue or potential issue is
identified;
• Labor market and career
information that address the claimant’s
specific needs;
• Enrollment in Wagner-Peyser Act
funded Employment Services;
• Support to the claimant to develop
and implement an individual
reemployment plan; and
• Information regarding, and access
to, American Job Center services and
providing referrals to reemployment
services and training, as appropriate, to
support the claimant’s return to work.
II. Background
Section 306, SSA, specifies three uses
for amounts appropriated for the RESEA
program and designates the proportion
of annual appropriations to be assigned
to these uses: (1) Base funding (84
percent to 89 percent of the
appropriation depending on the year)
for States to operate the RESEA
program, (2) outcome payments (10
percent to 15 percent of the
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08AUN1
Federal Register / Vol. 84, No. 153 / Thursday, August 8, 2019 / Notices
appropriation depending on the year)
designed to reward States meeting or
exceeding certain criteria, and (3) up to
one percent for the Secretary of Labor to
use for research and technical assistance
to States. 42 U.S.C. 506(f). With respect
to the base funding, section 306(f)(1)(A),
SSA, states:
IN GENERAL.— For each fiscal year after
fiscal year 2020, the Secretary shall allocate
a percentage equal to the base funding
percentage 1 for such fiscal year of the funds
made available for grants under this section
among the States awarded such a grant for
such fiscal year using a formula prescribed
by the Secretary based on the rate of insured
unemployment (as defined in section
203(e)(1) of the federal-State Extended
Unemployment Compensation Act of 1970
(26 U.S.C. 3304 note)) in the State for a
period to be determined by the Secretary. In
developing such formula with respect to a
State, the Secretary shall consider the
importance of avoiding sharp reductions in
grant funding to a State over time. 42 U.S.C
§ 506(f)(1)(A).
III. Response to Public Comment
ETA received a total of 19 comments
from 14 commenters concerning the
RESEA base allocation formula. These
comments include: 6 comments
regarding the general formula, 3
comments concerning carry-over
provisions, 4 comments concerning the
proposed hold-harmless provision, 3
comments concerning the establishment
of minimum funding levels, and 3
comments concerning administrative
and other program cost limits. The
following is a summary of these
comments and ETA’s responses.
jbell on DSK3GLQ082PROD with NOTICES
A. General Formula Comments
Several commenters addressed
formula design directly, including
general concern expressed by multiple
states that provisions must be made to
ensure adequate funding levels for small
and rural states. Members of the
Committee on Ways and Means, U.S.
House of Representatives, expressed
concern that the proposed formula used
elements that eliminated the Insured
Unemployment Rate (IUR) rather than
relied on the IUR as required in section
306(f), SSA. 42 U.S.C § 506(f)(1)(A).
Two States suggested considering
additional factors, such as costs per
RESEA and program and performance
data. One State recommended the use of
statistically-adjusted unemployment
data over a 10-year period, with an
emphasis on more recent data, in place
1 The term ‘‘base funding percentage’’ as used
here is a percentage of the funds appropriated for
RESEA grants to operate the program in a fiscal
year. Section 306(f)(1)(B), SSA, defines the base
funding percentage for fiscal years 2021 through
2026 as 89 percent and for fiscal years after 2026
as 84 percent.
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Jkt 247001
of the IUR as a means of providing more
stable funding levels. One State
expressed support for the proposed
formula allocation methodology, but
recommended revisiting the formula if
future legislation expanded program
eligibility to additional populations.
One State recommended ETA reserve a
portion of RESEA funds to respond to
sudden economic changes or other
unforeseen circumstances that would
require a one-time influx of additional
funding.
In response to these comments, as
discussed more fully below, ETA has
developed a revised allocation formula
that uses two primary input variables:
the IUR and the civilian labor force
(CLF). These two factors are included in
the formula because section 306, SSA,
requires the formula to be based on the
IUR and the CLF addresses the
differences in state size. 42 U.S.C.
506(f)(1). It also includes additional
provisions, discussed below, that are
intended to prevent significant State
funding fluctuations over time and to
provide minimum funding for smaller
or rural States. The use of additional
data factors, such as cost per RESEA,
were considered, but not included
because of the increased burden of
collecting and maintaining this data and
the risk of creating additional funding
fluctuations as States change their
program design from year to year. The
RESEA legislation does not authorize
ETA to maintain a RESEA funding
reserve. The final allocation formula is
described below.
B. Carry-Over Provisions Comments
Three States commented on the
proposed 25 percent carry-over limit,
expressing preference to have it
increased to 30 or 35 percent, or
eliminated altogether. States also
suggested that the formula should allow
for a higher carry-over limit upon
special request by a State. In response
to these comments, ETA has increased
the carry-over limit to 30 percent. This
change ensures the majority of funds
continue to be used to provide RESEA
services in a timely manner while also
providing States with additional
flexibility to support program costs that
may span across years, such as
contractual costs.
C. Hold-Harmless Provision Comments
ETA received four comments from
four commenters on the proposed five
percent hold-harmless provision. Two
comments expressed concern that the
hold-harmless provision would not be
applied in the initial distribution under
the allocation formula. One commenter
expressed concern that a fixed hold-
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Fmt 4703
Sfmt 4703
39019
harmless provision would negatively
impact States with a stable IUR. The
final comment recommended a gradual,
tiered-approach to implementing the
hold-harmless provision that would
increase the hold-harmless rate over
several years until it is fully
implemented at the maximum five
percent level.
In response to these comments, ETA
incorporated the recommended gradual,
phased implementation strategy in
which the maximum potential reduction
increases from 3 to 5 percent over a 3year period. This phased
implementation results in a longer
transition period for states that may face
reductions resulting from the new
allocation formula to adjust their
program design and will help prevent
significant disruptions in service
delivery. ETA is also clarifying that the
hold-harmless provision will be applied
during the initial formula allocation of
funds in FY 2021 and each State, after
applying the hold-harmless provision,
will receive a FY 2021 allotment that is
no less than an amount equal to at least
97 percent of its FY 2020 maximum
RESEA grant award. Each State’s FY
2020 maximum RESEA grant award will
be provided in forthcoming FY 2020
RESEA operating guidance.
D. Minimum Funding Level Comments
Three States provided comments
pertaining to the absence of a minimum
funding level for rural and less
populated States. Two States provided
comments recommending inclusion of a
minimum funding level and a third
State expressed concern that an
additional ‘‘leveling factor’’ beyond the
hold-harmless provision must be
included to further protect small States
from potential funding fluctuations
associated with changes in the IUR. In
response to these comments, ETA has
incorporated a minimum funding level
into the allocation formula as described
below. The inclusion of a minimum
funding level will allow all states,
regardless of size, population density, or
economic conditions, to implement or
maintain an RESEA program.
E. Administrative Costs and Other
Funding Limitations.
Three States provided comments on
RESEA requirements that are not related
to the formula allocation. One State
submitted a comment recommending
greater flexibility in administrative cost
limits to support alternative approaches
to grant management, such as the use of
cost allocation plans. One State
commented that all limits on RESEA
funds should be removed to provide
States with maximum flexibility in
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08AUN1
39020
Federal Register / Vol. 84, No. 153 / Thursday, August 8, 2019 / Notices
determining how to administer the
RESEA program. A third State
recommended providing States that are
pursing program automation with
additional program administration
resources. Because none of these
comments are related to the proposed
formula allocation methodology, ETA
made no changes to the proposed
formula allocation.
IV. Description of Base Allocation
Formula
The final base allocation formula has
been modified in response to the public
comments. The new formula uses two
primary input variables: The IUR and
the CLF Under this formula, each State’s
average IUR for the 12 months ending
June 30 will be divided by the national
average IUR. The two resulting ratios
will be multiplied together, producing a
combined IUR–CLF weighting factor. A
State’s allotment of the available RESEA
funding will reflect the proportion of its
State-specific combined weighting
factor compared to the sum of all States
combined weighting factors. Use of the
IUR ensures that States with high IURs,
and hence greater unemployment,
receive a higher proportion of RESEA
funds. Use of the CLF as a factor
controls for State size.
V. Description of the Hold-Harmless
Provision
The statutory language requires the
Secretary to consider the importance of
avoiding sharp reductions in grant
funding to a state over time. 42 U.S.C.
§ 506(f)(1)(A). To satisfy this
requirement, DOL will incorporate a
phased hold-harmless provision as
follows:
jbell on DSK3GLQ082PROD with NOTICES
(1) In FY 2021, each State will receive no
less than an amount equal to at least 97
percent of its FY 2020 maximum grant
award;
(2) In FY 2022, each State will receive no
less than an amount equal to at least 96
percent of its FY 2021 allotment;
(3) In FY 2023 and subsequent years, each
State will receive no less than an amount
equal to at least 95 percent of its previous
year’s allotment.
VI. Minimum Funding Provisions
No State will receive an amount equal
to less than 0.28 percent of the total
available funding for FY2021 RESEA’s
base funding level. This approach
mirrors the minimum funding
provisions in the Wagner-Peyser Act (29
U.S.C. 49e) and acknowledges that all
States have certain fixed costs to
administer the program.
VII. Carry-Over Threshold
If a State has a balance of up to 30
percent of its previous year’s award, the
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State may carry that amount over from
one year to the next. However, a State
agency carrying over an amount in
excess of 30 percent will have any
amount in excess of the 30 percent
reduced from its subsequent year’s
allocation, and the resulting additional
resources will be included in the
distribution to States that are under the
30 percent threshold. This provision is
intended to ensure States are using the
majority of funds to provide
reemployment services to claimants in
the year for which it is allocated and
provide States with flexibility to
support costs and activities that may
span across years.
VIII. Conclusion
The RESEA funding formula
articulated in this notice will be utilized
beginning in FY 2021. It is ETA’s intent
to provide States with funding planning
targets annually in advance of the actual
guidance and allocation.
John Pallasch,
Assistant Secretary for Employment and
Training, Labor.
[FR Doc. 2019–16988 Filed 8–7–19; 8:45 am]
BILLING CODE 4510–FW–P
DEPARTMENT OF LABOR
Employment and Training
Administration
Workforce Information Advisory
Council
Employment and Training
Administration, Labor.
ACTION: Notice of Renewal of the
Workforce Information Advisory
Council
AGENCY:
Authority: Pursuant to the WagnerPeyser Act of 1933, as amended, 29
U.S.C. 49 et seq.; Workforce Innovation
and Opportunity Act, Public Law 113–
128; Federal Advisory Committee Act,
as amended, 5 U.S.C. App.
SUMMARY: The Department of Labor
(Department) announces the renewal of
the Workforce Information Advisory
Council (WIAC) charter.
SUPPLEMENTARY INFORMATION:
I. Background and Authority
Section 15 of the Wagner-Peyser Act,
29 U.S.C. 49l–2, as amended by section
308 of the Workforce Innovation and
Opportunity Act of 2014 (WIOA), Public
Law 113–128 requires the Secretary of
Labor (Secretary) to establish and
maintain the WIAC.
The statute, as amended, requires the
Secretary, acting through the
Commissioner of Labor Statistics and
PO 00000
Frm 00094
Fmt 4703
Sfmt 4703
the Assistant Secretary for Employment
and Training, to formally consult at
least twice annually with the WIAC to
address: (1) Evaluation and
improvement of the nationwide
workforce and labor market information
system established by the WagnerPeyser Act, and of the statewide systems
that comprise the nationwide system,
and (2) how the Department and the
States will cooperate in the management
of those systems. The Secretary, acting
through the Bureau of Labor Statistics
(BLS) and the Employment and Training
Administration (ETA), and in
consultation with the WIAC and
appropriate Federal agencies, must also
develop a 2-year plan for management
of the system, with subsequent updates
every two years thereafter. The statute
generally prescribes how the plan is to
be developed and implemented,
outlines the contents of the plan, and
requires the Secretary to submit the plan
to designated authorizing committees in
the House and Senate.
By law, the Secretary must ‘‘seek,
review, and evaluate’’ recommendations
from the WIAC, and respond to the
recommendations in writing to the
WIAC. The WIAC must make written
recommendations to the Secretary on
the evaluation and improvement of the
workforce and labor market information
system, including recommendations for
the 2-year plan. The 2-year plan, in turn,
must describe WIAC recommendations
and the extent to which the plan
incorporates them.
The WIAC accomplishes its objectives
by, for example: (1) Studying workforce
and labor market information issues; (2)
seeking and sharing information on
innovative approaches, new
technologies, and data to inform
employment, skills training, and
workforce and economic development
decision making and policy; and (3)
advising the Secretary on how the
workforce and labor market information
system can best support workforce
development, planning, and program
development.
II. Structure
The Wagner-Peyser Act at section
15(d)(2)(B), requires the WIAC to have
14 representative members, appointed
by the Secretary, consisting of:
(i) Four members who are
representatives of lead State agencies
with responsibility for workforce
investment activities, or State agencies
described in Wagner-Peyser Act Section
4 (agency designated or authorized by
Governor to cooperate with the
Secretary), who have been nominated by
such agencies or by a national
E:\FR\FM\08AUN1.SGM
08AUN1
Agencies
[Federal Register Volume 84, Number 153 (Thursday, August 8, 2019)]
[Notices]
[Pages 39018-39020]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-16988]
=======================================================================
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DEPARTMENT OF LABOR
Employment and Training Administration
Allocating Grants to States for Reemployment Services and
Eligibility Assessments (RESEA) in Accordance With Title III, Section
306 of the Social Security Act (SSA)
AGENCY: Office of Unemployment Insurance (OUI), Employment and Training
Administration (ETA), Department of Labor (DOL).
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Bipartisan Budget Act of 2018 (BBA), Public Law 115-123
(2018), established permanent authorization for the RESEA program by
enacting section 306 of title III, (SSA). This notice announces the
formula to allocate base funds for the RESEA program, as provided under
Section 306(f)(1), SSA, 42 U.S.C. 506(f)(1).
On April 4, 2019, ETA published a notice in the Federal Register
(84 FR 13319) requesting public comment concerning the development of a
proposed formula that ETA will use to distribute funding to States for
RESEA. The notice presented a description of a proposed allocation
formula and public comments were requested. The comment period closed
on May 6, 2019. This notice summarizes and responds to the comments
received and publishes the final allocation formula that will take
effect in Fiscal Year (FY) 2021.
DATES: The RESEA allocation formula described in this notice will take
effect in FY 2021.
ADDRESSES: Questions about this notice may be submitted to the U.S.
Department of Labor, Employment and Training Administration, Office of
Unemployment Insurance, 200 Constitution Avenue NW, Room S-4524,
Washington, DC 20210, Attention: Lawrence Burns, or by email at [email protected].
FOR FURTHER INFORMATION CONTACT: Lawrence Burns, Division of
Unemployment Insurance Operations, at 202-693-3141 (this is not a toll-
free number), TTY 1-877-889-5627, or by email at
Burns.[email protected].
SUPPLEMENTARY INFORMATION:
I. Introduction
Since 2005, DOL and participating State workforce agencies have
been addressing individual reemployment needs of Unemployment Insurance
(UI) claimants and working to prevent and detect UI improper payments
through the voluntary UI Reemployment and Eligibility Assessment (REA)
program and, beginning in FY 2015, through the voluntary RESEA program.
On February 9, 2018, the President signed the BBA, which included
amendments to the SSA creating a permanent authorization for the RESEA
program. The RESEA provisions are contained in section 30206 of the
BBA, enacting new section 306 of the SSA. 42 U.S.C. 506. Section 306,
SSA also contains provisions for funding the RESEA program.
The primary goals of the RESEA program are to: Improve employment
outcomes for individuals that receive unemployment compensation (UC) by
reducing average duration of receipt of UC through employment;
strengthen program integrity and reduce improper payments; promote
alignment with the broader vision of the Workforce Innovation and
Opportunity Act through increased program integration and service
delivery for job seekers; and establish RESEA as an entry point to
other workforce system partner programs for individuals receiving UC.
Core services that must be provided to RESEA participants are:
UI eligibility assessment, including review of work search
activities, and referral to adjudication, as appropriate, if an issue
or potential issue is identified;
Labor market and career information that address the
claimant's specific needs;
Enrollment in Wagner-Peyser Act funded Employment
Services;
Support to the claimant to develop and implement an
individual reemployment plan; and
Information regarding, and access to, American Job Center
services and providing referrals to reemployment services and training,
as appropriate, to support the claimant's return to work.
II. Background
Section 306, SSA, specifies three uses for amounts appropriated for
the RESEA program and designates the proportion of annual
appropriations to be assigned to these uses: (1) Base funding (84
percent to 89 percent of the appropriation depending on the year) for
States to operate the RESEA program, (2) outcome payments (10 percent
to 15 percent of the
[[Page 39019]]
appropriation depending on the year) designed to reward States meeting
or exceeding certain criteria, and (3) up to one percent for the
Secretary of Labor to use for research and technical assistance to
States. 42 U.S.C. 506(f). With respect to the base funding, section
306(f)(1)(A), SSA, states:
IN GENERAL.-- For each fiscal year after fiscal year 2020, the
Secretary shall allocate a percentage equal to the base funding
percentage \1\ for such fiscal year of the funds made available for
grants under this section among the States awarded such a grant for
such fiscal year using a formula prescribed by the Secretary based
on the rate of insured unemployment (as defined in section 203(e)(1)
of the federal-State Extended Unemployment Compensation Act of 1970
(26 U.S.C. 3304 note)) in the State for a period to be determined by
the Secretary. In developing such formula with respect to a State,
the Secretary shall consider the importance of avoiding sharp
reductions in grant funding to a State over time. 42 U.S.C Sec.
506(f)(1)(A).
---------------------------------------------------------------------------
\1\ The term ``base funding percentage'' as used here is a
percentage of the funds appropriated for RESEA grants to operate the
program in a fiscal year. Section 306(f)(1)(B), SSA, defines the
base funding percentage for fiscal years 2021 through 2026 as 89
percent and for fiscal years after 2026 as 84 percent.
---------------------------------------------------------------------------
III. Response to Public Comment
ETA received a total of 19 comments from 14 commenters concerning
the RESEA base allocation formula. These comments include: 6 comments
regarding the general formula, 3 comments concerning carry-over
provisions, 4 comments concerning the proposed hold-harmless provision,
3 comments concerning the establishment of minimum funding levels, and
3 comments concerning administrative and other program cost limits. The
following is a summary of these comments and ETA's responses.
A. General Formula Comments
Several commenters addressed formula design directly, including
general concern expressed by multiple states that provisions must be
made to ensure adequate funding levels for small and rural states.
Members of the Committee on Ways and Means, U.S. House of
Representatives, expressed concern that the proposed formula used
elements that eliminated the Insured Unemployment Rate (IUR) rather
than relied on the IUR as required in section 306(f), SSA. 42 U.S.C
Sec. 506(f)(1)(A). Two States suggested considering additional
factors, such as costs per RESEA and program and performance data. One
State recommended the use of statistically-adjusted unemployment data
over a 10-year period, with an emphasis on more recent data, in place
of the IUR as a means of providing more stable funding levels. One
State expressed support for the proposed formula allocation
methodology, but recommended revisiting the formula if future
legislation expanded program eligibility to additional populations. One
State recommended ETA reserve a portion of RESEA funds to respond to
sudden economic changes or other unforeseen circumstances that would
require a one-time influx of additional funding.
In response to these comments, as discussed more fully below, ETA
has developed a revised allocation formula that uses two primary input
variables: the IUR and the civilian labor force (CLF). These two
factors are included in the formula because section 306, SSA, requires
the formula to be based on the IUR and the CLF addresses the
differences in state size. 42 U.S.C. 506(f)(1). It also includes
additional provisions, discussed below, that are intended to prevent
significant State funding fluctuations over time and to provide minimum
funding for smaller or rural States. The use of additional data
factors, such as cost per RESEA, were considered, but not included
because of the increased burden of collecting and maintaining this data
and the risk of creating additional funding fluctuations as States
change their program design from year to year. The RESEA legislation
does not authorize ETA to maintain a RESEA funding reserve. The final
allocation formula is described below.
B. Carry-Over Provisions Comments
Three States commented on the proposed 25 percent carry-over limit,
expressing preference to have it increased to 30 or 35 percent, or
eliminated altogether. States also suggested that the formula should
allow for a higher carry-over limit upon special request by a State. In
response to these comments, ETA has increased the carry-over limit to
30 percent. This change ensures the majority of funds continue to be
used to provide RESEA services in a timely manner while also providing
States with additional flexibility to support program costs that may
span across years, such as contractual costs.
C. Hold-Harmless Provision Comments
ETA received four comments from four commenters on the proposed
five percent hold-harmless provision. Two comments expressed concern
that the hold-harmless provision would not be applied in the initial
distribution under the allocation formula. One commenter expressed
concern that a fixed hold-harmless provision would negatively impact
States with a stable IUR. The final comment recommended a gradual,
tiered-approach to implementing the hold-harmless provision that would
increase the hold-harmless rate over several years until it is fully
implemented at the maximum five percent level.
In response to these comments, ETA incorporated the recommended
gradual, phased implementation strategy in which the maximum potential
reduction increases from 3 to 5 percent over a 3-year period. This
phased implementation results in a longer transition period for states
that may face reductions resulting from the new allocation formula to
adjust their program design and will help prevent significant
disruptions in service delivery. ETA is also clarifying that the hold-
harmless provision will be applied during the initial formula
allocation of funds in FY 2021 and each State, after applying the hold-
harmless provision, will receive a FY 2021 allotment that is no less
than an amount equal to at least 97 percent of its FY 2020 maximum
RESEA grant award. Each State's FY 2020 maximum RESEA grant award will
be provided in forthcoming FY 2020 RESEA operating guidance.
D. Minimum Funding Level Comments
Three States provided comments pertaining to the absence of a
minimum funding level for rural and less populated States. Two States
provided comments recommending inclusion of a minimum funding level and
a third State expressed concern that an additional ``leveling factor''
beyond the hold-harmless provision must be included to further protect
small States from potential funding fluctuations associated with
changes in the IUR. In response to these comments, ETA has incorporated
a minimum funding level into the allocation formula as described below.
The inclusion of a minimum funding level will allow all states,
regardless of size, population density, or economic conditions, to
implement or maintain an RESEA program.
E. Administrative Costs and Other Funding Limitations.
Three States provided comments on RESEA requirements that are not
related to the formula allocation. One State submitted a comment
recommending greater flexibility in administrative cost limits to
support alternative approaches to grant management, such as the use of
cost allocation plans. One State commented that all limits on RESEA
funds should be removed to provide States with maximum flexibility in
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determining how to administer the RESEA program. A third State
recommended providing States that are pursing program automation with
additional program administration resources. Because none of these
comments are related to the proposed formula allocation methodology,
ETA made no changes to the proposed formula allocation.
IV. Description of Base Allocation Formula
The final base allocation formula has been modified in response to
the public comments. The new formula uses two primary input variables:
The IUR and the CLF Under this formula, each State's average IUR for
the 12 months ending June 30 will be divided by the national average
IUR. The two resulting ratios will be multiplied together, producing a
combined IUR-CLF weighting factor. A State's allotment of the available
RESEA funding will reflect the proportion of its State-specific
combined weighting factor compared to the sum of all States combined
weighting factors. Use of the IUR ensures that States with high IURs,
and hence greater unemployment, receive a higher proportion of RESEA
funds. Use of the CLF as a factor controls for State size.
V. Description of the Hold-Harmless Provision
The statutory language requires the Secretary to consider the
importance of avoiding sharp reductions in grant funding to a state
over time. 42 U.S.C. Sec. 506(f)(1)(A). To satisfy this requirement,
DOL will incorporate a phased hold-harmless provision as follows:
(1) In FY 2021, each State will receive no less than an amount
equal to at least 97 percent of its FY 2020 maximum grant award;
(2) In FY 2022, each State will receive no less than an amount
equal to at least 96 percent of its FY 2021 allotment;
(3) In FY 2023 and subsequent years, each State will receive no
less than an amount equal to at least 95 percent of its previous
year's allotment.
VI. Minimum Funding Provisions
No State will receive an amount equal to less than 0.28 percent of
the total available funding for FY2021 RESEA's base funding level. This
approach mirrors the minimum funding provisions in the Wagner-Peyser
Act (29 U.S.C. 49e) and acknowledges that all States have certain fixed
costs to administer the program.
VII. Carry-Over Threshold
If a State has a balance of up to 30 percent of its previous year's
award, the State may carry that amount over from one year to the next.
However, a State agency carrying over an amount in excess of 30 percent
will have any amount in excess of the 30 percent reduced from its
subsequent year's allocation, and the resulting additional resources
will be included in the distribution to States that are under the 30
percent threshold. This provision is intended to ensure States are
using the majority of funds to provide reemployment services to
claimants in the year for which it is allocated and provide States with
flexibility to support costs and activities that may span across years.
VIII. Conclusion
The RESEA funding formula articulated in this notice will be
utilized beginning in FY 2021. It is ETA's intent to provide States
with funding planning targets annually in advance of the actual
guidance and allocation.
John Pallasch,
Assistant Secretary for Employment and Training, Labor.
[FR Doc. 2019-16988 Filed 8-7-19; 8:45 am]
BILLING CODE 4510-FW-P