On October 26, the Department of Labor (DOL) issued guidance that outlines revisions to state allotment levels for the Workforce Investment Act (WIA) adult and dislocated worker fiscal year 2012 “advance” funds which become available to states this month. The revised levels reflect a 1.503 percent “across-the-board” funding cut included in the short-term Continuing Appropriations Acts of 2012. The guidance clarifies that the FY2011 continuing resolution (CR) funding cuts to the Governors’ Reserve, also known as the WIA set-aside for statewide activities, applies to the entire 2011 program year. The CR cut federal funds to states for statewide employment and training activities by two-thirds, from 15 percent to 5 percent, by passing the savings through to local workforce areas. DOL acknowledges that the state-level funding cut will result in some states being unable to fund all statewide activities required under WIA statute. Despite this, the administration indicates it will not likely exempt states from certain requirements including operating fiscal and management accountability information systems, disseminating eligible training providers lists, and providing technical assistance to low performing local areas. States wishing to request a waiver must submit a full plan to DOL that addresses all of the required elements listed in the WIA regulations.

Link: Department of Labor Guidance