[Federal Register Volume 75, Number 243 (Monday, December 20, 2010)] [Notices] [Pages 79419-79423] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 2010-31844] ----------------------------------------------------------------------- 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. A. 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. B. 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. C. 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. D. 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. E. 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