Sec. 228. Within State allocations

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The Governor shall reserve not more than 15 percent of each of the amounts allotted to the State under section 227(b)(1)(C) and paragraphs (1)(B) and (2)(B) of section 232(b) for a fiscal year for statewide workforce investment activities. Regardless of whether the reserved amounts were allotted under section 227(b)(1)(C), or under paragraph (1)(B) or (2)(B) of section 232(b), the Governor may use the reserved amounts to carry out statewide activities under section 229(b) or statewide employment and training activities, for adults or dislocated workers, under section 234(a).

Of the amount allotted to the State under section 227(b)(1)(C) and not reserved under subsection (a)(1)— a portion equal to not less than 80 percent of such amount shall be allocated by the Governor to local areas in accordance with paragraph (2); and a portion equal to not more than 20 percent of such amount may be allocated by the Governor to local areas in accordance with paragraph (3). Subject to subparagraph (B), of the portion described in paragraph (1)(A), the Governor shall allocate— 33 1/3 percent on the basis of the relative number of individuals in the civilian labor force who are ages 16 through 21 in each local area, compared to the total number of individuals in the civilian labor force who are ages 16 through 21 in all local areas in the State; 33 1/3 percent on the basis of the relative number of unemployed individuals in each local area, compared to the total number of unemployed individuals in all local areas in the State; and 33 1/3 percent on the basis of the relative number of disadvantaged youth who are ages 16 through 21 in each local area, compared to the total number of disadvantaged youth who are ages 16 through 21 in all local areas in the State.

The Governor shall ensure that no local area shall receive an allocation percentage under this paragraph for a fiscal year that is less than 90 percent of the allocation percentage of the local area for the preceding fiscal year. Subject to clause (i), the Governor shall ensure that no local area shall receive an allocation percentage under this paragraph for a fiscal year that is more than 130 percent of the allocation percentage of the local area for the preceding fiscal year.

In this paragraph: The term allocation percentage , used with respect to fiscal year 2014 or a subsequent fiscal year, means a percentage of the portion described in paragraph (1)(A) that is received by the local area involved through an allocation made under this paragraph for the fiscal year. The term, used with respect to fiscal year 2013, means the percentage of the amount allocated to local areas under chapter 4 of subtitle B of title I of the Workforce Investment Act of 1998 (as in effect on the day before the date of enactment of this Act) that is received by the local area involved for fiscal year 2013.

Subject to subparagraph (D), the term disadvantaged youth means an individual who— is age 16 through 21; and received an income, or is a member of a family that received a total family income, that, in relation to family size, does not exceed 150 percent of the poverty line. For purposes of the formula specified in subparagraph (A), the Governor shall, as appropriate and to the extent practicable, exclude college students and members of the Armed Forces from the determination of the number of disadvantaged youth.

The Governor may allocate the portion described in paragraph (1)(B) to local areas where there are a significant number of eligible youth, after consultation with the State board and local boards. Of the amount allocated to a local area under this subsection and section 233(b) for a fiscal year, not more than 10 percent of the amount may be used by the local board involved for the administrative costs of carrying out local workforce investment activities under this chapter or chapter 3.

Funds made available for administrative costs under subparagraph

(A)may be used for the administrative costs of any of the local workforce investment activities described in this chapter or chapter 3, regardless of whether the funds were allocated under this subsection or section 233(b). The Governor may, in accordance with this subsection and after consultation with the State Board, reallocate to eligible local areas within the State amounts that are made available to local areas from allocations made under this section or a corresponding provision of the Workforce Investment Act of 1998 for youth workforce investment activities (referred to individually in this subsection as a local allocation ) and that are available for reallocation. The amount available for reallocation for a program year is equal to the amount by which the balance that is unobligated and unencumbered for training services at the end of the program year prior to the program year for which the determination is made, exceeds 10 percent of the total amount of funds available to the local area for that prior program year, consisting of the local allocation to the local area for such prior program year (and amounts from local allocations to the local area, for all program years before that prior program year, that remained available). For purposes of this paragraph, the balance that is unobligated and unencumbered for training services is the amount that is the difference between— the total amount of funds available to the local area under this section for that prior program year, consisting of the local allocation to the local area for such prior program year (and amounts from local allocations to the local area, for all program years before that prior program year, that remained available); and the amount, from that total amount of available funds, that is obligated or encumbered (in accordance with generally accepted accounting principles) for training services during such prior program year, except that for purposes of this paragraph the amount included as encumbered for training services shall not exceed 10 percent of the total amount of available funds described in clause (i). In making reallocations to eligible local areas of amounts available pursuant to paragraph

(2)for a program year, the Governor shall allocate to each eligible local area within the State an amount based on the relative amount of the local allocation for the program year for which the determination is made, as compared to the total amount of the local allocations for all eligible local areas for such program year. For purposes of this subsection, an eligible local area means a local area that does not have an amount available for reallocation under paragraph

(2)for the program year for which the determination under paragraph

(2)is made. Not later than 90 days after the date of enactment of this Act, the Secretary shall issue guidance for implementing this subsection, and guidance for implementing section 233(c), including for calculating the amount of funds that are unobligated and the amount of funds that are unencumbered for training services. The Secretary shall also provide technical assistance to local areas regarding the implementation of this subsection.