Current through Register Vol. 48, No. 12, March 22, 2024
Section 303 of the Act contains provisions for the reallotment
of excess carry-forward from states, as well as a requirement that states
establish procedures to ensure the availability of funds for deobligation
should a state have excess carry-forward. The reallotment of funds from states
will be determined on the basis of an allowable carry-forward which equals 20%
of the allotment for the previous program year plus funds not expended from the
year prior to the previous year. The procedure for the reallocation of funds
within Illinois will be contingent upon Illinois' status vis-a-vis the national
reallotment process.
a) Procedures
When the State Loses Funds Through U.S. DOL Reallotment
1) When Illinois loses funds due to
reallotment by the U.S. DOL, the amount of the loss is proportioned according
to the amount underspent by the SDAs as a group and by the Department. The
determination of funds to be reallotted from the state is made on the basis of
funds received by the state as a whole (i.e., funds received by substate areas
and the Department). The statewide allowable carry-forward is 20% of the total
statewide allotment, and the statewide excess carry-forward is the amount by
which the combined carry-forward from both sources exceeds the
allowable.
2) Following the
determination of this statewide excess, excess carry-forward is calculated
separately for the combined substate areas and for the Department, again on the
basis of a 20% allowable carry-forward limit. If both have carry-forward in
excess of their 20% allowable limit, then the excess carry-forward for each can
simply be combined to provide for the state reallotment amount. If one is not
in excess of the 20% allowable carry-forward limit, then the total state
reallotment amount must be provided by the other.
3) In the event that the Department has
carry-forward in excess of its allowable limit, the necessary amount of funds
will be deobligated directly.
4) To
determine excess carry-forward at the substate level, the following procedures
will be adhered to:
A) An amount equal to 15%
of the allocation for each SDA will be considered "allowable" carry-forward.
Carry-forward above this amount will be considered "excess" carry-forward. The
amount of "excess" carry-forward from each SDA will be aggregated. From this
"pool" of funds will be deducted any substate share of state funds sent to the
U.S. DOL as part of the national reallotment.
B) An SDA expending 85% or more of its total
funds available will be eligible to receive funds redistributed from this
"pool" of excess carry-forward funds, as adjusted by the results of the U.S.
DOL reallotment process.
C) Any
funds remaining in this "pool" will then be reallocated to "eligible" SDAs, on
the basis of a two-part formula modeled on the federal formula used to reallot
funds among the states. In the first step, the relative allocation percentages
are calculated for eligible substate areas. Based on these relative
percentages, the amount to be reallocated is distributed. However, the amount
reallocated to substate areas with unemployment rates at or below the statewide
average are taken back and "re-pooled." The relative allocation percentages are
then again used to distribute this amount to all "eligible" SDAs. In this
manner, SDAs with higher than average unemployment rates are eligible to
receive reallocated funds from both distributions, while those with a lower
rate of unemployment receive funds only from the second distribution.
b) Procedures When the
State Gains, or Does Not Lose Funds Through U.S. DOL Reallotment
1) Again, a "pool" of excess substate area
funds would be constructed, based upon a 15% of allowable carry-forward. In
this case, however, the state as a whole would gain funds reallotted from other
states or, of the amount received by the state in this manner, 60% would be
added directly to the "pool" of substate area funds to be reallocated. This
total amount would then be distributed according to the two-step method
described above.
2) The remaining
40% of the funds received from the reallotment from other states would come to
the Department and would be available for the same uses as the 40% state
portion of the original allotment.
3) These reallotment and reallocation
processes would be completed by October 1 of each year or the first working day
after that date.
4) All funds
received by substate areas in this manner would be subject to the same cost
category limitations as the funds originally allocated during any program
year.