Mr. Michael J. Acker
Deputy Secretary for Workforce
Development and Safety
Pennsylvania Department of Labor
and Industry
7th and Forster Streets, Room 1700
Harrisburg, Pennsylvania 17120

Dear Mr. Acker:

I am pleased to offer Job Training Partnership Act (JTPA) waiver approvals to the Commonwealth of Pennsylvania in response to Governor Ridge'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 Commonwealth'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 waiver requests.

The Grant Modification was executed by the USDOL grant officer on December 4, 1997. The effective date of this modification is November 30, 1997. We will return an executed copy for the Commonwealth's official files.

We applaud the Commonwealth'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 Commonwealth 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 to the State's workforce efforts.

Sincerely,

EDWIN G. STRONG, JR.
Regional Administrator

Enclosures

OVERVIEW

The applicable JTPA Grant Agreements between the Commonwealth and the Department will be modified upon execution of the enclosed Modification. Unless specified otherwise these waivers are authorized for the period beginning November 30, 1997 and ending June 30, 1998. In exchange for these waivers the Commonwealth 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 Pennsylvania.

WAIVERS

A. As requested, the Secretary waives JTPA § 141(g)(2) and 20 CFR 627.240(b) to the extent that they limit the maximum duration of on-the-job training to not more than 6 months or less than 500 hours, provided the training time during the OJT is correctly determined, taking into consideration the necessary occupational skills and the time required to acquire such skills, for the participant to function in the job for which the OJT is contracted. The State agrees to develop a policy that addresses the circumstances under which the limit of 6 months or 500 hours may be exceeded and the maximum duration, if any, that will apply to on-the-job training. This waiver only applies to the OJT time limitations and not to the provisions for determining the length of OJT using the "Dictionary of Occupational Titles" or other comparable reference source.

B. For titles II and III, current authority permits participants to continue to receive services following placement so long as participants have not been terminated. Instead of terminating at placement, termination occurs at the completion of planned services. ETA encourages such a policy and is willing to work with Pennsylvania to develop reporting procedures to take credit for job placements occurring prior to termination.

Nevertheless, as requested, the Secretary will apply JTPA § 204(b)(2)(J) and (c)(4) and 20 CFR 627.310(e) to title III to enable title III participants to receive post-termination services, excluding financial assistance, for up to one year, consistent with title II. Additionally, the Secretary will apply JTPA §§ 204(b)(2)(J) and (c)(4), 264(c)(2) and (d)(5), 314(c)(15), and 20 CFR 627.310(e) to authorize training as a post-termination service contingent upon the Governor:

i. Developing a record keeping system that will track post-termination training provided and

outcomes achieved for any post-termination training provided; and

ii. Maintaining current safeguards to ensure that employers do not receive federal funding for

training/retraining laid off and subsequently recalled/rehired employees.

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 titles II and III.

C. 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 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 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.