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CLASSIFICATION EMPLOYMENT AND TRAINING ADMINISTRATION WIOA/Wagner-Peyser ADVISORY SYSTEM CORRESPONDENCE SYMBOL U.S. DEPARTMENT OF LABOR OWI/DWASWS Washington, D.C. 20210 DATE May 21, 2018 ADVISORY: TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 27-16, CHANGE 2 TO: STATE WORKFORCE AGENCIES ALL STATE WORKFORCE LIAISONS FROM: ROSEMARY LAHASKY /s/ Deputy Assistant Secretary SUBJECT: Revised Program Year (PY) 2017 Funding Levels for Workforce Innovation and Opportunity Act (WIOA) Title I Adult, Dislocated Worker, and Youth Activities Program Allotments; and PY 2017 Allotments for the Wagner-Peyser Act Employment Service (ES) Program 1. Purpose. This guidance provides states and outlying areas with revised allotment levels for WIOA Title I Adult, Dislocated Worker, and Youth Activities programs; and the Wagner- Peyser Act ES program for PY 2017. Change 1 to Training and Employment Guidance Letter (TEGL) No. 27-16 indicated a 0.6791 percent reduction to the WIOA Adult and Dislocated Worker levels for PY 2017. Change 2 restores funding to the originally allotted levels. Change 2 also restores the 0.5 percent of PY 2017 appropriated funding set aside for program integrity purposes from the WIOA Title I Adult, Dislocated Worker, and Youth programs, as well as the Wagner-Peyser Act ES program. 2. References. Consolidated Appropriations Act, 2018 (Pub. L. 115-141); Continuing Appropriations Act, 2018 (Pub. L. 115-56); Consolidated Appropriations Act, 2017 (Pub. L. 115-31); Balanced Budget and Emergency Deficit Control Act, as amended (Title II of Pub. L. 99- 177); Budget Control Act of 2011 (Pub. L. 112-25); Workforce Innovation and Opportunity Act of 2014, (Pub. L. 113-128), as amended; Wagner-Peyser Act, as amended (29 U.S.C. 49 et seq.); Workforce Investment Act of 1998 (Pub. L. 105-220); Compact of Free Association Amendments of 2003 (Pub. L. 108-188); Training and Employment Guidance Letter (TEGL) 27-16, Workforce Innovation and Opportunity Act (WIOA) Adult, Dislocated Worker and Youth Activities Program Allotments for Program Year (PY) 2017; Final PY 2017 Allotments for the Wagner-Peyser RESCISSIONS EXPIRATION DATE None Continuing Act Employment Service (ES) Program Allotments; and the Allotments of Workforce Information Grants to States for PY 2017 dated June 9, 2017; TEGL No. 27-16, Change 1, Fiscal Year (FY) 2018 Advance Funding Levels Available October 2017 for Workforce Innovation and Opportunity Act (WIOA) Programs and Correction to the Amounts for Youth and Adult Small State Minimum Allotments dated October 20, 2017; TEGL No. 21-12, Updated Economically Disadvantaged Youth and Adult Data for use in Program Year (PY) 2013 and future Workforce Investment Act (WIA) Youth and Adult Within-State Allocation Formulas dated March 26,2013; TEGL No. 5-06, Implementing the Salary and Bonus Limitations in Public Law 109-234, dated August 15, 2006; TEGL No. 2-16, Revised ETA-9130 Financial Report, Instructions, and Additional Guidance, dated July 14, 2016; and Local Area Unemployment Statistics (LAUS) Technical Memorandum No. S-16-15. 3. Background. TEGL No. 27-16, issued on June 9, 2017, announced PY 2017 WIOA allotments to states and outlying areas. TEGL No. 27-16 Change 1, issued on October 20, 2017, informed the states and outlying areas of allotment adjustments necessary due to the Continuing Appropriations Act, 2018, P.L. 115-56, enacted on September 8, 2017, (henceforth referred to as the “Continuing Resolution”). The Continuing Resolution reduced the Fiscal Year (FY) 2018 (October) advance funds for the WIOA Adult and Dislocated Worker programs by 0.6791 percent. On March 23, 2018, the Consolidated Appropriations Act, 2018 was enacted which removed the 0.6791 percent reduction on the WIOA Adult and Dislocated Worker FY 2018 advance funds. This Change 2 to TEGL No. 27-16 reflects the restoration of the 0.6791 percent reduction on Adult and Dislocated Worker FY 2018 advance funds. Additionally, this Change 2 TEGL reflects the restoration of the 0.5 percent set-aside for program integrity purposes which was withheld from PY 2017 WIOA Title I Adult, Dislocated Worker, and Youth program; and, the PY 2017 Wagner-Peyser Act ES program funding. The attached tables provides states and outlying areas of the amount of additional funding they will receive. Note: States have until June 30, 2018 to obligate 80 percent of their total restored PY 2017 Dislocated Worker (DW) allotment. As provided in 20 CFR 683.135, if a state does not obligate 80 percent of their total restored PY 2017 DW allotment in 20 CFR 683.135, the Department will recapture the excess unobligated funds up to the 80 percent threshold from PY 2018 funds. Specifically, any recaptured funds would be deobligated from FY 2019 “advance” funds during PY 2018. 4. Notice of Award (NOA). The Department will issue NOAs reflecting the restoration of funds to all four programs. In order to receive the funding, states and outlying areas must submit an SF-424, Application for Federal Assistance (Office of Management and Budget Control No. 4040-0004) for each program (Adult, Dislocated Worker, Youth, and Wagner Peyser Act ES) which reflects the restoration amounts prescribed in the shaded columns of Attachments A through D. The SF-424s must be emailed as an attachment to dol-eta- dwg@dol.gov, within two weeks following the publication date of this ETA advisory, or June 2 15, 2018, whichever is earlier. 5. Inquiries. Please direct questions regarding these allotments to the appropriate ETA Regional Office. Information on allotments and planning requirements may also be found on the ETA Web site at http://www.doleta.gov. 6. Attachments. Attachment A WIOA Youth Program PY 2017 Revised Allotments Attachment B WIOA Adult Program PY 2017/FY 2018 Revised Allotments Attachment C WIOA Dislocated Worker Program PY 2017/FY 2018 Revised Allotments Attachment D Employment Service (Wagner-Peyser) PY 2017 Revised Allotments 3