Mr. David B. Poythress
Commissioner
Georgia Department of Labor
148 International Boulevard, NE.
Suite 650
Atlanta, Georgia 30303
Dear Mr. Poythress:
I am pleased to offer Job Training Partnership Act (JTPA) waiver approvals to the
State of Georgia in response to Governor Miller's request. This could not have been done
without the vision, strategy and planning that was produced by the local, State, and Federal
(national and regional staff) partnership, of which it has been our pleasure to be a part. I
thank you for your and your staff's hard work and patience.
The State's request was considered under the special appropriations act provision
granting the Secretary of Labor authority to waive certain requirements of Titles I-III of JTPA,
and Sections 8-10 of the Wagner-Peyser Act. This authority was granted to the Secretary in
the Department of Labor's (DOL) Appropriation Act for 1997 (Pub. L. 104-208, section
101(e)).
This is a one-year authority and applies only to JTPA funds available for expenditure
during the period July 1, 1997 through June 30, 1998, and, therefore, could affect the JTPA
Grant Agreements for Program Year (PY) 1997, 1996 and 1995 funds, depending on fund
availability during the waiver period. Enclosed you will find an overview and our disposition
with regard to each of your requests, as well as copies of our formal response to the Governor.
Enclosed also is a grant modification (3 copies) that will require signature by the Governor or
the State's JTPA signatory official. Please check off the applicable JTPA grant agreements
(PY 97, 96, 95) that the statutory waiver modification will affect. We ask that the documents
be signed by the appropriate official and returned to the Grant Officer at the address indicated
below:
Mr. James C. De Luca
U.S. Department of Labor - ETA
Office of Grants and Contract
Management - DAA
200 Constitution Avenue, N.W.
Room - South 4203
Washington, D.C. 20210
Upon execution by the appropriate USDOL grant officer, we will return an executed
copy for the State's official files. This modification is effective September 30, 1997.
We applaud Georgia's efforts to focus on a workforce vision and the development of a
strategy to meet that vision. Waivers, of course, are only a small part of this strategy. We
will continue to work with the State to reach these goals. We expect that these reforms will
continue to reflect the Department of Labor's guiding principles: individual opportunity and
customer choice; leaner government; greater accountability; State and local flexibility; and
strong private sector roles.
This is a living document. As we continue our partnership be sure to let us know if
additional waivers or other action would be beneficial.
Sincerely,
Toussaint L. Hayes
Regional Administrator
Enclosures
OVERVIEW
The applicable JTPA Grant Agreements between the State and the Department will be
modified upon execution of the enclosed Modification. Unless specified otherwise these
waivers are authorized for the period beginning July 1, 1997 and ending June 30, 1998. In
exchange for these waivers the State is expected to meet the agreed upon performance
improvements.
Requests to waive program design components were honored except in the case where
the request conflicted with the Secretary's statutory waiver authority, the Department's guiding
principles for waivers and the One-Stop Career Centers and School-to-Work Systems
principles. Administrative waivers were granted in such a manner as to maintain fiscal
responsibility and accountability.
These waivers are based upon the Governor's request, meetings and discussions among
staff, and the Department's familiarity with the program in Georgia. They do not necessarily
constitute an endorsement of the examples in Georgia's waiver request. In several instances,
the Department would recommend against the interventions proposed. For example, most
research would caution against general use of stand-alone work experience, job search or on-the job training interventions, particularly for youth without a high school diploma or its
equivalent. The Department continues to strongly encourage educational components for
youth participants.
WAIVERS
A. As requested, the Secretary waives the prohibition on stand-alone work experience, for
both youth and adults, in instances when an individual service strategy substantiates its use as
appropriate, by waiving JTPA § 204(c)(2)(B)(ii) and 20 CFR 628.535(b)(2) and (c)(1)(ii) and
applying JTPA § 264(d)(3)(A) and (B) as if they read "Work experience shall be accompanied
by additional services unless the individual service strategy demonstrates such additional
services are not warranted." Additionally, the title III prohibition on work experience at 20
CFR 627.245(e), where such strategy is supported by an individual assessment, and the
combination requirements at 20 CFR 627.245(d) and 628.804(e) and (f) are waived. We wish
to point out to the State that there is research suggesting that work experience provided in a
stand-alone mode is not as effective as when combined with other needed services and that, as
suggested in the request, this authority will be used sparingly.
B. As requested, the Secretary waives the requirements at JTPA § 141(k) that prohibit
subsidized employment with private for-profit employers, to permit limited internships with
private for-profit employers, in cases where the objective assessment and individual service
strategy indicate it is the appropriate intervention, when:
This may be an effective strategy for TANF recipients and welfare-to-work
participants as well as for some of the disadvantaged population. Also, its appropriateness for
most eligible dislocated workers would appear to be extremely limited. Therefore, we
recommend the State implement a State-wide policy which addresses the target populations,
including dislocated workers, for which this strategy will be used. The policy for dislocated
workers should contain a requirement that the worker's individual assessment must justify such
a placement over OJT. We wish to point out to the State that there is research suggesting that
work experience, such as limited internships, provided in a stand-alone mode is not as
effective as when combined with other needed services and that this authority will be used
sparingly.
C. As requested, the Secretary waives the youth OJT wage requirement at JTPA §
264(d)(3)(C)(i)(I) and the related regulations at 20 CFR 628.804(j)(1)(i) and the participation
requirement at JTPA § 264(d)(3)(C)(iii) and the related regulation at 20 CFR 628.804(j)(2),
when indicated as appropriate in the objective assessment and individual service strategy for
youth on-the-job training. The State shall assure that the OJT positions for youth have
substantial training content and that the training time is correctly determined. In addition, the
State should issue policies to assure that youth OJT opportunities reflect positions with career
potential and avoid the introduction of the abuses in the development of youth OJT slots in low
wage, low skill positions which precipitated the enactment of the provisions for which this
waiver is requested.
D. As requested, the Secretary waives JTPA § 314(c)(15) and the last sentence at 20 CFR 627.310(e) to permit dislocated workers to receive authorized post-termination services, except for training and financial assistance, for up to one year when such services are supported by an individual assessment. This will permit the availability of post-termination services to be consistent with those currently available for disadvantaged adults and youth under title II. However, the provision within 20 CFR 627.310(e) which prohibits the use of
financial assistance as a post-termination service is not waived. Therefore, needs-based and
needs-related payments are not post-termination options under this waiver for both title II
and III.
E. As requested, the Secretary shall apply the requirements in Training and Employment
Information Notice (TEIN) No. 26-96 transmitting the "Guide to JTPA Performance
Standards for Program Years 1996 and 1997," such that title III performance standards
calculations exclude participants terminating after receiving objective assessment only,
consistent with title II. However, participants who receive other basic readjustment services
prior to determining whether they will require retraining, including those who terminate after
receiving only such services, shall not be excluded from performance standards calculations.
F. The State's request to waive the needs-related payment eligibility requirements at JTPA
§ 314(e) for dislocated workers has not been granted. Pursuant to the eligibility requirement
exclusion contained in the 1997 DOL Appropriations Act, JTPA § 314(e)(1) and 20 CFR
631.20(b) are not waived, and shall apply to dislocated workers in order to receive needs-related payments while they participate in training or education. The retention of this eligibility
requirement also preserves the policy principle that training is most effective if individuals are
enrolled in training early in the adjustment process.
Therefore, in order to be eligible for needs-related payments, a dislocated worker must
be enrolled in training by the end of the 13th week of the worker's initial unemployment
compensation benefit period (following title III qualifying layoff), or if later, the end of the
8th week after an employee is informed that a short-term layoff will in fact exceed six months.
This also means that JTPA § 314(e)(2) and 20 CFR 631.20(c) and (d) are not waived.
Further, we cannot waive the requirements that workers who receive needs-related payments
(income support), are also--
The Secretary will, however, consider an alternative definition of "enrolled in training
or education" at 20 CFR 631.20(b)(2) to be utilized in extraordinary circumstances if Georgia
wishes to propose such a policy. Any alternative policy should preserve the principle that
training is most effective if individuals are enrolled in training early in the adjustment process.
G. As requested, the Secretary waives the requirement for annual monitoring of
subrecipient procurement systems at JTPA § 164(a)(4), provided that State conducts biennial
monitoring of these subrecipients. Further, the State must review at least one-half of its
subrecipients in alternating years and include in the current year a review of all subrecipients
with known existing procurement deficiencies.
H. The State's request that 50 percent of regular pension benefits, for people who do not
qualify for Social Security or Old Age Survivors' Insurance benefit payments, be excluded
from the definition of family income has not been granted. Regular pension payments are
wage-based and are considered regular income under the Health and Human Services (HHS)
guidelines for determining the poverty level for needs-based federal assistance programs. The
Department adopted the HHS guidelines, with certain exclusions, for use in defining family
income for the purposes of determining income eligibility for JTPA services. Eligibility is one
of the exceptions from the Secretary's waiver authority granted in the 1997 DOL
Appropriations Act which cannot be waived. The Secretary does not have authority to waive
the consideration of such payments for JTPA in determining economically disadvantaged
status, for eligibility purposes. An option available to serve such individuals in under the 10-percent window for services to non-economically disadvantaged individuals.
I. As requested, the Secretary has waived the requirement at JTPA §141(g)(3)(C) and 20
CFR 627.240(g)(2) that brokering contractors monitor On-the-Job Training (OJT) employers
prior to making payments to such employers. The Department understands the State request to
require that such brokering contractors will monitor OJT employers prior to the conclusion of
contracts or subcontracts with such OJT employers. We recommend that such monitoring of
employers by brokering contractors take place before the mid-point of such contracts to ensure
that any issues that are identified may be addressed while the contract is in effect. Further, we
understand that there will be continued monitoring of SDA's and their contractors by the State
(including brokering contractors) on a periodic basis or as required by information that comes
to the attention of the State.
J. As requested, the Secretary waives JTPA §§ 108(b)(4)(B) and 315(a) and (b) and 20
CFR 627.445(a)(1)(i), and (a)(2)(i) and 631.14(a) and (b), eliminating the non-administration
cost limitations for titles II and III [except for national reserve account (NRA) grants]; the
20% administration limitation for titles II-A and II-C, at JTPA § 108(b)(4)(A), will remain in
effect; the 15% limitation for title III, at JTPA § 315(c), as well as the 15% limitation for title
II-B, at JTPA § 253(a)(3) and 20 CFR 627.445(b)(3), will be waived and replaced by the same
20% administration limitation as for titles II-A and II-C at JTPA § 108(b)(4)(A). The
provisions at JTPA § 108(b)(1) and (c), and all references in the JTPA regulations that address
the cost limitations under titles II-A, II-B, II-C, and III [except for NRA grants] shall refer
only to the 20% administration cost limitation. The Secretary will apply JTPA § 108(b)(2)
and (3) and 20 CFR 627.440(b), (c)(1) and (d) and 631.13(a)(1) to reduce the number of cost
categories to two: Administration and Program Costs. The costs of Administration shall be
those defined at 20 CFR 627.440(d)(5) for title II and 631.13(f) for title III. Program Costs
will consist of all other costs including those defined at 20 CFR 627.440(d)(1), (2), (3), and
(4) for title II and at 631.13(c), (d), and (e) for title III. The costs of Rapid Response
activities, identified at JTPA § 314(b) and 20 CFR 631.13(b), shall continue to be separately
reported. Reporting instructions for the two cost category reporting method have been
developed and are attached for use by the State.
K. The State's request to waive the 100 percent matching requirement for JTPA § 123 8-percent funds for State Education Coordination and Grants has been partially approved. The
provision at JTPA § 123(a)(3) stipulates that the Federal share of the cost of carrying out 8-percent projects described at JTPA § 123(a)(2) shall be 50 percent, which requires a dollar-for-dollar match by the State of the funds allotted for such projects. The projects which provide
for direct services to participants are described at JTPA § 123(a)(2)(A), (B) and (C). Section
123(a)(2)(D) provides for coordination activities for the 8-percent projects described in
paragraphs (A), (B) and (C) of that subsection. Pursuant to JTPA § 123(d)(2), not more 20
percent of the allotted 8-percent funds (Federal share) may be used for coordination services,
and not less than 80 percent of such funds must be spent for school-to-work services, literacy,
and lifelong learning services.
Although the Secretary is amenable to granting waivers which respond to the State's
desire for administrative efficiency, the Secretary is not willing to grant waivers that directly
impact on the level of required services to participants specified in the Act, in this case the
match for the 80 percent of funds for projects at JTPA § 123(d)(2)(B). Accordingly, the
Secretary waives the matching requirement at JTPA § 123(a)(3) and (b)(2) and 20 CFR
628.315(e)(1), only for the 20 percent funds specified at JTPA § 123(d)(2)(A), to carry out
coordination activities under JTPA § 123(a)(2)(D).
L. In consideration of the waivers contained in this grant modification, the State agrees to
a performance improvement of four percent (4%) at the State level measured at the conclusion
of Program Year 1997 using actual performance in PY 1996 as the baseline for improvement.
Performance improvements will apply to all the Secretary's performance measures or to their
approved equivalents, for titles II-A, II-C, and III. In order to meet this performance
improvement, the State is expected to require that each SDA/SSG make some improvement in
performance and that those SDAs/SSGs which demonstrate comparatively lower levels of
performance be required to make greater performance improvements. States will take into
account the SDA's performance improvement targets in determining the receipt of title II
incentive grant awards for PY 1997. In considering whether the State has attained the agreed-
upon performance improvement for PY 1997, the Department will apply the Secretary's
Adjustment Models, exclusive of Governor's Adjustments, to the performance improvement
goals. Program Year 1996 and Program Year 1997 performance will be calculated in the
same way for both years.
The Standardized Program Information Report (SPIR) instructions in Training and
Employment Information Notice 5-93, Change 1 (dated June 23, 1994), as modified by
Training and Employment Information Notice 5-93, Change 2 (dated January 24, 1997),
remain in effect where not specifically waived or modified in this Agreement. Also in effect
unless specifically waived are the Performance Standards Status Summary Report requirements
put forth in Training and Employment Guidance Letter 2-95 (dated August 10, 1995). This
requires Governors to report each SDA's final standard and actual performance for each of the
Secretary's title II core standards, with required technical assistance plans and reorganization
plans attached.
These waivers are open for modification and the Department will also entertain
additional requests for waivers during this program year. These waivers apply to the title II
and the title III formula programs. However, ETA will consider requests to apply specific
waivers to individual title III Secretary's NRA grants which are active during Program Year
1997. In addition, ETA will consider requests to incorporate specific waivers into new
individual NRA grants, as appropriate.