Training and Employment Guidance Letters:

Federal Register: December 20, 2010 (Volume 75, Number 243)

Notices

Page 79419-79423

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

DOCID:fr20de10-968

DEPARTMENT OF LABOR

Employment and Training Administration

Training and Employment Guidance (TEGL) Letter No. 13-10: Fiscal

Year (FY) 2011 State Initial Allocations and the Process for Requesting

Additional Trade Adjustment Assistance (TAA) Program Reserve Funds

AGENCY: Employment and Training Administration, Labor.

ACTION: Notice.

SUMMARY: The Employment and Training Administration (ETA) of the U.S.

Department of Labor is publishing, for public information, notice of the issuance and availability of TEGL 13-10 entitled, FY 2011 State

Initial Allocations and the Process for Requesting Additional TAA

Program Reserve Funds, signed on November 17, 2010, by Jane Oates,

Assistant Secretary for the Employment & Training Administration.

FOR FURTHER INFORMATION CONTACT: Chris Meservy, 202-693-2806.

SUPPLEMENTARY INFORMATION:

Fiscal Year (FY) 2011 State Initial Allocations and the Process for

Requesting Additional Trade Adjustment Assistance (TAA) Program Reserve

Funds 1. Purpose. To provide States with the formula methodology used in developing the FY 2011 initial allocations and to describe the process for requesting additional TAA program reserve funds for training, job search, and relocation allowances. 2. References. The Trade and Globalization Adjustment Assistance

Act of 2009 (TGAAA) (Division B, Title I, Subtitle I of the ``American

Recovery and Reinvestment Act of 2009'' (Recovery Act), Public Law

(Pub. L. 111-5) (enacted February 17, 2009); Consolidated Omnibus

Appropriations Act, 2009, Public Law 111-8 (enacted March 11, 2009); the Trade Act of 1974, as amended (Trade Act) (Pub. L. 93-618, as amended); Training and Employment Guidance Letter (TEGL) No. 22-08,

``Operating Instructions for Implementing the Amendments to the Trade

Act of 1974 Enacted by the Trade and Globalization Adjustment

Assistance Act of 2009''; Training and Employment Guidance Letter

(TEGL) No. 22-08, Change 1 ``Change 1 to the Operating Instructions for

Implementing the Amendments to the Trade Act of 1974 Enacted by the

Trade and Globalization Adjustment Assistance Act of 2009''; TEGL 6-09,

``Instructions for Implementing the Revised 2010 Trade Adjustment

Assistance Trade Activity Participant Report (TAPR)''; TEGL No. 9-09,

``Fiscal Year 2010 State Initial Allocations and the Process for

Requesting Additional Trade Adjustment Assistance (TAA) Program Reserve

Funds''; TEGL No. 9-09, Change 1, ``Fiscal Year 2010 Second

Distribution of Trade Adjustment Assistance (TAA) Training Funds to

States''; 20 CFR Part 618 ``Trade Adjustment Assistance; Merit Staffing of State Administration and Allocation of Training Funds to States;

Final Rule,'' (75 FR 16988- 17002, April 2, 2010); TEGL No. 6-09,

``Instructions for implementing the revised 2010 Trade Adjustment

Assistance Trade Activity Participant Report (TAPR)''. 3. Background. On February 17, 2009, President Obama signed the

Recovery Act into Law. Part of the Recovery Act, the TGAAA reauthorized and made substantial changes to the TAA program. The TGAAA amended

Section 236(a)(2)(A) of the Trade Act to increase the cap on TAA training funds from $220 million to $575 million annually in both FY 2009 and FY 2010 and capped training funds for the first quarter of FY 2011 (October 1, 2010 through December 31, 2010) at $143,750,000, consistent with a projected annual allocation of $575 million under the expected reauthorization of the Act. The TGAAA further amended Section 236(a)(2)(B) and (C) of the Trade Act to:

Require 35, rather than 25 percent of the training funds to be held in reserve;

Provide for a ``hold harmless'' of 25, rather than 85 percent;

Set timelines for the distribution of training funds; and

Establish specific formula factors that the Employment and

Training Administration (ETA) must consider in making those distributions.

The final regulations that govern these provisions, 20 CFR 618.900--618.940, went into effect April 2, 2010, with the publication of 20 CFR 618 ``Trade Adjustment Assistance; Merit Staffing of State

Administration and Allocation of Training Funds to States; Final

Rule.'' Although the Recovery Act reauthorized the TAA program and raised the cap on training funds, it did not appropriate any funds for the TAA program. Rather, the Consolidated Omnibus Appropriations Act, 2009, Public Law 111-8, appropriated TAA administrative and program funds to the Federal Unemployment Benefits and Allowances (FUBA) account. The FY 2010 distributions of funds under TEGL 9-09 were FUBA appropriations. The

Page 79420

FY 2011 distributions will also be FUBA appropriations. Therefore, separate tracking and reporting requirements, which apply specifically to Recovery Act funds, do not apply to the TAA funds provided to the

States from this and future FUBA appropriations. However, as discussed in TEGL No. 22-08, the TGAAA established new reporting requirements specific to the TAA program to increase the transparency and accountability of the program. ETA issued additional guidance on those requirements in TEGL No. 6-09, ``Instructions for implementing the revised 2010 Trade Adjustment Assistance Trade Activity Participant

Report (TAPR).'' Funding amounts for each State are based upon TAPR data that each State submits quarterly. 4. FY 2011 TAA Training Fund Distribution Process. As noted above, the TGAAA increased the cap on TAA training funds from $220 million annually to $575 million for both FY 2009 and FY 2010. Under current authorization, this cap is set to expire December 31, 2010 and revert back to the $220 million level. However, there is a possibility that the higher cap will be reauthorized through FY 2011. With this in mind, two attachments have been prepared for this TEGL showing the State

Initial Allocations for FY 2011. The first shows the initial allocations with reauthorization at the $220 million level and the second attachment shows the initial allocations with reauthorization at the $575 million level. For FY 2011, an amount equal to 65 percent of the annual training funds is initially distributed to States by formula and 35 percent will be held in reserve as required by the amendments and 20 CFR 618.910--618.930.

  1. TAA Formula Funds: The initial allocation of 65 percent of training funds among the States will follow the four factors set forth in the new Section 236(a)(2)(C)(ii) of the Trade Act and explained in 20 CFR 618.910(f): 1. Trend in number of workers covered by certifications during the most recent four consecutive calendar quarters for which data are available; 2. Trend in number of workers participating in training during the most recent four consecutive calendar quarters for which data are available; 3. Number of workers estimated to be participating in training during the fiscal year; and 4. Estimated amount of funding needed to provide approved training to such workers during the fiscal year.

    Factor 1 will be established using the most recent four quarters

    (FY 2009 Quarter 4 through FY 2010 Quarter 3) of data for certified workers by State, and the quarters will be weighted 40 percent; 30 percent; 20 percent; and 10 percent, respectively, from the most recent to the earliest quarter. This approach will establish a trend, giving the most recent quarters a greater impact on each factor than an earlier quarter will have.

    Factor 2 will be established using the most recent four quarters

    (FY 2009 Quarter 4 through FY 2010 Quarter 3) of data for workers participating in training by State, and the quarters will be weighted 40 percent; 30 percent; 20 percent; and 10 percent, respectively, from the most recent quarter to least recent quarter. As with Factor 1, this approach will establish a trend, giving the most recent quarters a greater impact on each factor than an earlier quarter will have.

    Factor 3 will be determined by dividing the weighted average number of training participants for the State determined in Factor 2 by the sum of the weighted averages for all States and multiplying the resulting ratio by the projected national average of training participants for the fiscal year, using the estimates underlying ETA's most recent budget submission or update.

    Factor 4 will be calculated by multiplying the estimated number of participants in Factor 3 by the average training cost for the State.

    The average training cost will be calculated by dividing total training expenditures for the most recent four quarters by the average number of training participants for the same time period.

    Once each of the four factors has been determined for each State, under 20 CFR 618.910(f)(3) all four factors will be assigned an equal weight. For FY 2011, the weight will be 25 percent of the total for each factor.

    Section 236(a)(2)(C)(iii) of the Trade Act includes a hold harmless feature. The statute now provides that a State's initial allocation be at least 25 percent of the amount the State received in its initial allocation for the prior fiscal year. This requirement is codified at 20 CFR 618.910(c).

    ETA will determine the national total and each State's percentage of the national total for each factor. Using each State's percentage of each of these weighted factors, ETA will determine the unadjusted percentage that the State will receive of the amount available for initial allocations. As provided in 20 CFR 618.910(c), (d) and (e), allocations under $100,000 will be removed, and the statutory 25 percent hold harmless factor will be applied, resulting in an adjusted

    FY 2011 allocation for the remaining States. If the program is reauthorized at the $575,000,000 level, the percentages for all the

    States will total 100 percent of $373,750,000, which is 65 percent of the training cap. If the program reverts back to the $220,000,000 level, the percentages for all the States will total 100 percent of

    $143,000,000, which is 65 percent of the training cap.

    In those instances where the formula approach would give a State less than $100,000, 20 CFR 918.910(e)(2)(i) provides that that State will not receive any initial allocation, but may, where needed, request

    TAA reserve funds in accordance with the procedures described in

    Section B. The initial allocations for each State are attached.

  2. TAA Reserve Funds: Funds will not be distributed under the funding formula until the funding situation becomes clearer. Until that time, States may request reserve funds. Reserve funds will be distributed to States in accordance with 20 CFR 618.920 on an as-needed basis to provide monies to those States that experience large, unexpected layoffs or otherwise have training needs that are not met by their initial allocation. These funds must be requested using the ETA- 9117 (OMB No. 1205-0275).

    In order to be eligible for TAA reserve funds, a State must demonstrate that at least 50 percent of its training funds have been expended or that it needs more funds to meet unusual or unexpected events. A State requesting reserve funds also must provide a documented estimate of expected funding needs through the end of the fiscal year.

    That estimate must be based on an analysis that includes at least the following:

    The average cost of training in the State;

    The expected number of participants in training through the end of the fiscal year; and

    The remaining funds the State has available for training.

  3. Job Search and Relocation Allowances: States may also request job search and relocation allowances for adversely affected workers who have no reasonable expectation of obtaining suitable employment within their local commuting areas. These funds must also be requested using the ETA-9117 (OMB No. 1205-0275) and may be submitted at any time or in combination with a request for reserve training funds.

  4. TAA Program Administration Funds: States will receive an additional 15 percent of all supplemental allocation and reserve funds for program administration, as provided by Section 235A(a)(1) of the

    Trade Act. Not more than two-thirds of these additional

    Page 79421

    funds may be used to cover administrative expenses, and not less than one-third of such funds may be used for the purpose of providing employment and case management services, as provided by Section 235A(a)(2) of the Trade Act. Guidance is provided in TEGL No. 22-08. If the 2009 Amendments expire, this limitation will change, and additional guidance will be provided. The administrative funds will be included each time funds are obligated to States by ETA. The program administration allocations for each State are also included in the attachment.

  5. Employment and Case Management Services Funds: Each State that receives FY 2011 TAA funds will receive $350,000 for the purpose of providing employment and case management services to TAA participants, as provided by Section 235A(b)(1) of the Trade Act. A State that does not receive the $350,000 for case management services because it received no initial allocation will receive those funds if it subsequently receives a reserve funding allocation. 5. Recapture of TAA Funds. Consistent with the FY 2011 TAA Annual

    Cooperative Financial Agreement, ETA may recapture any funds distributed to any State in the same fiscal year as they were given if it determines that the State will not expend the funds, but only after consultation with, and appropriate notification to, State officials. 6. Action Requested. States will inform all appropriate staff of the contents of these instructions. 7. Inquiries. States should direct all inquiries to the appropriate

    ETA regional office. 8. Attachments.

    Attachment A: State Initial Allocations for FY 2011 at the

    $220,000,000 level.

    Attachment B: State Initial Allocations for FY 2011 at the

    $575,000,000 level.

    Attachment A

    State Initial Allocations for FY 2011 $220,000,000 Level

    FY 2011

    Training

    FY 2011

    FY 2011 Case

    Total FY 2011

    State

    Initial

    Administrative

    Management

    TAA Initial

    Allocation

    Allotment*

    Funds

    Allocation**

    Alabama.........................................

    $2,773,203

    $415,980

    $350,000

    $3,539,184

    Alaska..........................................

    0

    0

    0

    0

    Arizona.........................................

    807,193

    121,079

    350,000

    1,278,272

    Arkansas........................................

    2,956,424

    443,464

    350,000

    3,749,887

    California......................................

    4,673,413

    701,012

    350,000

    5,724,425

    Colorado........................................

    1,057,290

    158,594

    350,000

    1,565,884

    Connecticut.....................................

    1,084,126

    162,619

    350,000

    1,596,745

    Delaware........................................

    114,734

    17,210

    350,000

    481,944

    District of Columbia............................

    0

    0

    0

    0

    Florida.........................................

    799,174

    119,876

    350,000

    1,269,050

    Georgia.........................................

    3,579,640

    536,946

    350,000

    4,466,586

    Hawaii..........................................

    0

    0

    0

    0

    Idaho...........................................

    1,996,373

    299,456

    350,000

    2,645,829

    Illinois........................................

    5,588,352

    838,253

    350,000

    6,776,605

    Indiana.........................................

    7,595,873

    1,139,381

    350,000

    9,085,254

    Iowa............................................

    1,816,963

    272,544

    350,000

    2,439,507

    Kansas..........................................

    341,824

    51,274

    350,000

    743,098

    Kentucky........................................

    3,763,714

    564,557

    350,000

    4,678,271

    Louisiana.......................................

    529,744

    79,462

    350,000

    959,206

    Maine...........................................

    1,245,269

    186,790

    350,000

    1,782,059

    Maryland........................................

    220,446

    33,067

    350,000

    603,513

    Massachusetts...................................

    3,287,666

    493,150

    350,000

    4,130,816

    Michigan........................................

    18,264,050

    2,739,608

    350,000

    21,353,658

    Minnesota.......................................

    2,420,453

    363,068

    350,000

    3,133,521

    Mississippi.....................................

    946,417

    141,962

    350,000

    1,438,379

    Missouri........................................

    4,609,803

    691,470

    350,000

    5,651,273

    Montana.........................................

    960,493

    144,074

    350,000

    1,454,567

    Nebraska........................................

    318,660

    47,799

    350,000

    716,459

    Nevada..........................................

    0

    0

    0

    0

    New Hampshire...................................

    366,032

    54,905

    350,000

    770,937

    New Jersey......................................

    1,391,302

    208,695

    350,000

    1,949,997

    New Mexico......................................

    930,741

    139,611

    350,000

    1,420,353

    New York........................................

    3,338,590

    500,788

    350,000

    4,189,378

    North Carolina..................................

    13,865,221

    2,079,783

    350,000

    16,295,004

    North Dakota....................................

    0

    0

    0

    0

    Ohio............................................

    7,688,620

    1,153,293

    350,000

    9,191,913

    Oklahoma........................................

    1,125,346

    168,802

    350,000

    1,644,148

    Oregon..........................................

    4,734,588

    710,188

    350,000

    5,794,776

    Pennsylvania....................................

    7,878,820

    1,181,823

    350,000

    9,410,643

    Puerto Rico.....................................

    0

    0

    0

    0

    Rhode Island....................................

    968,358

    145,254

    350,000

    1,463,611

    South Carolina..................................

    4,567,349

    685,102

    350,000

    5,602,451

    South Dakota....................................

    393,323

    58,998

    350,000

    802,322

    Tennessee.......................................

    3,176,593

    476,489

    350,000

    4,003,082

    Texas...........................................

    5,094,477

    764,172

    350,000

    6,208,649

    Utah............................................

    1,025,948

    153,892

    350,000

    1,529,840

    Vermont.........................................

    155,564

    23,335

    350,000

    528,898

    Virginia........................................

    2,926,882

    439,032

    350,000

    3,715,915

    Washington......................................

    3,767,764

    565,165

    350,000

    4,682,929

    West Virginia...................................

    1,413,424

    212,014

    350,000

    1,975,437

    Page 79422

    Wisconsin.......................................

    6,439,761

    965,964

    350,000

    7,755,725

    Wyoming.........................................

    0

    0

    0

    0

    U.S. Total..................................

    $143,000,000

    $21,450,000

    $15,750,000

    $180,200,000

    * Each State's administrative allotment represents 15% of its FY 2011 base allocation.

    ** Each State's Case Management funds of $350,000 are included in the line code of Administration, along with the 15% of Administrative funds in the Notice of Obligation.

    *** Each State's allocation represents the sum of its FY 2011 base allocation and administrative allotment.

    Attachment B

    State Initial Allocations for FY 2011 $575,000,000 Level

    FY 2011

    Training

    FY 2010

    FY 2011 Case

    Total FY 2011

    State

    Initial

    Administrative

    Management

    TAA Initial

    Allocation

    Allotment*

    Funds

    Allocation**

    Alabama.........................................

    $7,308,595

    $1,096,289

    $350,000

    $8,754,884

    Alaska..........................................

    166,759

    25,014

    350,000

    541,773

    Arizona.........................................

    2,332,435

    349,865

    350,000

    3,032,300

    Arkansas........................................

    8,166,908

    1,225,036

    350,000

    9,741,945

    California......................................

    11,117,796

    1,667,669

    350,000

    13,135,465

    Colorado........................................

    2,904,828

    435,724

    350,000

    3,690,552

    Connecticut.....................................

    3,186,156

    477,923

    350,000

    4,014,079

    Delaware........................................

    231,659

    34,749

    350,000

    616,408

    District of Columbia............................

    0

    0

    0

    0

    Florida.........................................

    2,631,281

    394,692

    350,000

    3,375,973

    Georgia.........................................

    8,502,423

    1,275,363

    350,000

    10,127,786

    Hawaii..........................................

    0

    0

    0

    0

    Idaho...........................................

    5,034,362

    755,154

    350,000

    6,139,516

    Illinois........................................

    14,329,249

    2,149,387

    350,000

    16,828,636

    Indiana.........................................

    20,334,273

    3,050,141

    350,000

    23,734,414

    Iowa............................................

    6,007,033

    901,055

    350,000

    7,258,088

    Kansas..........................................

    910,531

    136,580

    350,000

    1,397,111

    Kentucky........................................

    9,807,523

    1,471,128

    350,000

    11,628,652

    Louisiana.......................................

    1,414,862

    212,229

    350,000

    1,977,091

    Maine...........................................

    3,860,776

    579,116

    350,000

    4,789,892

    Maryland........................................

    545,111

    81,767

    350,000

    976,878

    Massachusetts...................................

    7,502,560

    1,125,384

    350,000

    8,977,944

    Michigan........................................

    49,373,714

    7,406,057

    350,000

    57,129,772

    Minnesota.......................................

    6,864,454

    1,029,668

    350,000

    8,244,122

    Mississippi.....................................

    2,700,710

    405,107

    350,000

    3,455,817

    Missouri........................................

    11,354,901

    1,703,235

    350,000

    13,408,136

    Montana.........................................

    2,705,709

    405,856

    350,000

    3,461,566

    Nebraska........................................

    704,128

    105,619

    350,000

    1,159,748

    Nevada..........................................

    132,539

    19,881

    350,000

    502,420

    New Hampshire...................................

    967,638

    145,146

    350,000

    1,462,784

    New Jersey......................................

    3,082,822

    462,423

    350,000

    3,895,246

    New Mexico......................................

    2,416,802

    362,520

    350,000

    3,129,322

    New York........................................

    9,547,195

    1,432,079

    350,000

    11,329,275

    North Carolina..................................

    33,781,867

    5,067,280

    350,000

    39,199,147

    North Dakota....................................

    263,801

    39,570

    350,000

    653,372

    Ohio............................................

    23,054,232

    3,458,135

    350,000

    26,862,367

    Oklahoma........................................

    2,494,013

    374,102

    350,000

    3,218,115

    Oregon..........................................

    13,438,965

    2,015,845

    350,000

    15,804,810

    Pennsylvania....................................

    18,926,976

    2,839,046

    350,000

    22,116,022

    Puerto Rico.....................................

    120,790

    18,119

    350,000

    488,909

    Rhode Island....................................

    2,485,796

    372,869

    350,000

    3,208,666

    South Carolina..................................

    10,625,910

    1,593,887

    350,000

    12,569,797

    South Dakota....................................

    1,395,998

    209,400

    350,000

    1,955,398

    Tennessee.......................................

    6,928,333

    1,039,250

    350,000

    8,317,583

    Texas...........................................

    12,806,484

    1,920,973

    350,000

    15,077,456

    Utah............................................

    2,970,371

    445,556

    350,000

    3,765,926

    Vermont.........................................

    455,515

    68,327

    350,000

    873,842

    Virginia........................................

    8,174,563

    1,226,184

    350,000

    9,750,747

    Washington......................................

    10,120,896

    1,518,134

    350,000

    11,989,030

    West Virginia...................................

    3,641,215

    546,182

    350,000

    4,537,397

    Wisconsin.......................................

    15,918,544

    2,387,782

    350,000

    18,656,325

    Page 79423

    Wyoming.........................................

    0

    0

    0

    0

    U.S. Total..................................

    $373,750,000

    $56,062,500

    $17,150,000

    $446,962,500

    * Each State's administrative allotment represents 15% of its FY 2011 base allocation.

    ** Each State's Case Management funds of $350,000 are included in the line code of Administration, along with the 15% of Administrative funds in the Notice of Obligation.

    *** Each State's allocation represents the sum of its FY 2011 base allocation and administrative allotment.

    Signed: at Washington, DC, this 14th day of December, 2010.

    Jane Oates,

    Assistant Secretary for Employment and Training.

    FR Doc. 2010-31844 Filed 12-17-10; 8:45 am

    BILLING CODE 4510-FN-P

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