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This information memorandum describes the Department’s expectations for reallocating returned funds.

In accordance with the Governor’s Executive Order 99-02, the Employment Security Department is directed to assume the administrative lead for the Workforce Investment Act Title I-B. On behalf of the Governor, the Department is responsible for oversight administration of adult, youth, and dislocated worker program funds. As such, the Department may choose to reallocate youth, adult, and dislocated worker funds among local areas within the state in accordance with the provisions of Section 128(c) and 133(c) of the Act and Section 667.160 of the WIA final regulations. However, program year funds which are not expended by local areas at the end of a two-year period must be returned to the state (Reference Section 667.107).

• The Department will not recapture and reallocate youth, adult, or dislocated worker formula allocated funds at the end of the first year of WIA implementation (June 30, 2001).

• Beginning with Program Year 2001 and Fiscal Year  2002, the Department will track local area’s obligations to ensure that each local area has obligated at least 80 % of their program year’s allocation. If a local area’s unobligated balances exceed 20%, the Department, in consultation with the respective WDC, will conduct a thorough analysis to determine the need for possible fund recapture.

• Funds required to be returned to the Department at the end of the second year, June 30, 2002, may be reallocated to eligible WDCs based upon:

• the relative amount allocated as determined by existing formula; or

• a statewide grant application process for local enhancement projects; or

• for dislocated worker funds only, the number of dislocated workers, layoffs, and WARN notifications for each local area; or

• used for statewide projects.

• Please note: WDC eligibility for returned funds is defined in the WIA regulations under Section 667.160(c).

• Decisions on the use of returned funds would be dependent upon the total amount of funds returned from each funding stream and needs identified. Funds returned to the Department at the end of the second year can only be expended for one additional year.

• WIA Section 133

• 20 CFR Part 6552 et al., Workforce Investment Act, Final Rules, 667.107 and 667.160

WEBSITE

http://www.wa.gov/esd/policies

DIRECT INQUIRIES TO
Susan Harris
Employment Security Department
Employment and Training Division, WIA Title I-B
PO Box 9046, MS 6000
Olympia, WA 98507-9046
Email: sharris@esd.wa.gov
Telephone: (360) 438-4151
Fax: (360) 438-4666