Sec. 233. Within State allocations
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The Governor shall make the reservation required under section 228(a). The Governor shall reserve not more than 25 percent of the total amount allotted to the State under section 232(b)(2)(B) for a fiscal year for statewide rapid response activities described in section 234(a)(2)(A). The Governor, acting in accordance with the State plan, and after consulting with chief elected officials and local boards in the local areas, shall allocate— the funds that are allotted to the State for adult employment and training activities and statewide workforce investment activities under section 232(b)(1)(B) and are not reserved under subsection (a)(1), in accordance with paragraph
(2)or (3); and the funds that are allotted to the State for dislocated worker employment and training activities and statewide workforce investment activities under section 232(b)(2)(B) and are not reserved under paragraph
(1)or
(2)of subsection (a), in accordance with paragraph (2). In allocating the funds described in paragraph (1)(A) to local areas, a State may allocate— 40 percent of the funds on the basis described in section 232(b)(1)(B)(ii)(I); 25 percent of the funds on the basis described in section 232(b)(1)(B)(ii)(II); and 35 percent of the funds on the basis described in clauses (ii)(III) and
(iii)of section 232(b)(1)(B). Effective at the end of the second full fiscal year after the date on which a local area is designated under section 116, the local area shall not receive an allocation percentage for a fiscal year that is less than 90 percent of the average allocation percentage of the local area for the 2 preceding fiscal years. Amounts necessary for increasing such allocations to local areas to comply with the preceding sentence shall be obtained by ratably reducing the allocations to be made to other local areas under this subparagraph. In this subparagraph, the term allocation percentage — used with respect to fiscal year 2012 or 2013, means a percentage of the amount allocated to local areas under paragraphs (2)(A) and
(3)of section 133(b) 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 2012 or 2013, respectively; and used with respect to fiscal year 2014 or a subsequent fiscal year, means a percentage of the funds referred to in clause
(i)that is received by the local area involved through an allocation made under this subparagraph for the fiscal year. In allocating the funds described in paragraph (1)(B) to local areas, a State shall allocate the funds based on an allocation formula prescribed by the Governor of the State. Such formula may be amended by the Governor not more than once for each program year. Such formula shall utilize the most appropriate information available to the Governor to distribute amounts to address the State’s worker readjustment assistance needs. The information described in clause
(i)shall include insured unemployment data, unemployment concentrations, plant closing and mass layoff data, declining industries data, farmer-rancher economic hardship data, and long-term unemployment data. Effective at the end of the second full fiscal year after the date on which a local area is designated under section 116, the local area shall not receive an allocation percentage for a fiscal year that is less than 90 percent of the average allocation percentage of the local area for the 2 preceding fiscal years. Amounts necessary for increasing such allocations to local areas to comply with the preceding sentence shall be obtained by ratably reducing the allocations to be made to other local areas under this subparagraph. In this subparagraph, the term allocation percentage — used with respect to fiscal year 2012 or 2013, means a percentage of the amount allocated to local areas under section 133(b)(2)(B) 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 2012 or 2013, respectively; and used with respect to fiscal year 2014 or a subsequent fiscal year, means a percentage of the funds referred to in clause (i), received through an allocation made under this subparagraph, for the fiscal year. For purposes of carrying out subparagraph (A)— references in clauses
(ii)and
(iii)of section 232(b)(1)(B) to a State shall be deemed to be references to a local area; and references in clauses
(ii)and
(iii)of section 232(b)(1)(B) to all States shall be deemed to be references to all local areas in the State involved. In lieu of making the allocation described in paragraph (2)(A), in allocating the funds described in paragraph (1)(A) to local areas, a State may distribute— a portion equal to not less than 70 percent of the funds in accordance with paragraph (2)(A); and the remaining portion of the funds on the basis of a formula that— incorporates additional factors (other than the factors described in paragraph (2)(A)) relating to— excess poverty in urban, rural, and suburban local areas; and excess unemployment above the State average in urban, rural, and suburban local areas; and was developed by the State board and approved by the Secretary as part of the State plan. A local board may transfer, if such a transfer is approved by the Governor, up to and including 100 percent of the funds allocated to the local area under paragraph (2)(A) or (3), and up to and including 100 percent of the funds allocated to the local area under paragraph (2)(B), for a fiscal year between— adult employment and training activities; and dislocated worker employment and training activities. The Governor shall allocate the funds described in paragraph
(1)to local areas under paragraphs
(2)and
(3)for the purpose of providing a single system of employment and training activities for adults and dislocated workers in accordance with subsections
(c)and
(d)of section 234. Funds allocated under paragraph (2)(A) or
(3)shall be used by a local area to contribute to the costs of the one-stop delivery system described in section 221(e) as determined under subsections
(h)and
(i)of section 221 and to pay for employment and training activities provided to adults in the local area, consistent with section 234. Funds allocated under paragraph (2)(B) shall be used by a local area to contribute to the costs of the one-stop delivery system described in section 221(e) as determined under subsections
(h)and
(i)of section 221 and to pay for employment and training activities provided to dislocated workers in the local area, consistent with section 234. The Governor may, in accordance with this subsection, reallocate to eligible local areas within the State amounts that are made available to local areas from allocations made under paragraph (2)(A) or
(3)of subsection
(b)or a corresponding provision of the Workforce Investment Act of 1998 for adult employment and training activities, or under subsection (b)(2)(B) or a corresponding provision of the Workforce Investment Act of 1998 for dislocated worker employment and training 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 for programs funded under paragraphs (2)(A) and
(3)of subsection
(b)(relating to adult employment and training) or for programs funded under subsection (b)(2)(B) (relating to dislocated worker employment and training) 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, for adult employment and training activities or dislocated worker employment and training services, respectively, 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 paragraphs (2)(A) and
(3)of subsection (b), or subsection (b)(2)(B), respectively, 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, for adult employment and training activities or dislocated worker employment and training activities, respectively, 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 for adults or dislocated workers, respectively, 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 subparagraph
(A)for adult employment and training activities or dislocated worker employment and training activities, respectively. 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— with respect to such available amounts that were allocated under paragraph (2)(A) or
(3)of subsection (b), an amount based on the relative amount of the local allocation under paragraph (2)(A) or
(3)of subsection (b), as appropriate, for the program year for which the determination is made, as compared to the total amount of the local allocations under paragraph (2)(A) or
(3)of subsection (b), as appropriate, for such program year; and with respect to such available amounts that were allocated under subsection (b)(2)(B), an amount based on the relative amount of the local allocation under subsection (b)(2)(B) for the program year for which the determination is made, as compared to the total amount of the local allocations under subsection (b)(2)(B) for such program year. For purposes of this subsection, an eligible local area means— with respect to funds allocated through a local allocation for adult employment and training activities, a local area that does not have an amount of such funds available for reallocation under paragraph
(2)for the program year for which the determination under paragraph
(2)is made; and with respect to funds allocated through a local allocation for dislocated worker employment and training activities, a local area that does not have an amount of such funds available for reallocation under paragraph
(2)for the program year for which the determination under paragraph
(2)is made.