Mr. Doug Jameson
Secretary
Florida Department of Labor
and Employment Security
2012 Capital Circle, Southeast
Suite 303, Hartman Building
Tallahassee, Florida 32399-2152
Dear Mr. Jameson:
I am pleased to offer Florida JTPA waiver approvals in response to Governor Chiles'
April 30, 1997 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 July 1, 1997.
We applaud Florida'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 Florida 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 Hayes
Regional Administrator
Enclosures
OVERVIEW
The JTPA Grant Agreement between the Governor and the Department will be
modified upon the Governor (or his designee) signing the attached Modification. The granted
waivers are authorized for the period of Program Year 1997. In exchange for these waivers
Florida is expected to meet the agreed upon performance improvements. Below is a
discussion, including the disposition, of all of the State's waiver requests.
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 Florida. They do not necessarily
constitute an endorsement of the examples in Florida'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 JTPA Standardized Program Information Report (SPIR) instructions
in Training and Employment Information Notice (TEIN) 5-93, Change 1 that require follow-up by participant contact for the 13th week after termination are waived on the condition that
Florida adopt the provisions in the Department's "JTPA Statutory Waiver Guidelines:
Substitution of Wage Record Follow-Up for Survey Follow-Up in JTPA Performance
Standards" and future implementing guidance.
These provisions were developed to provide some uniformity in systemwide
measurement for the limited number of States that receive such waivers. The guidelines make
provisions pertaining to: universal reporting; reporting elements, formats, and electronic
media; reporting deadline; out-of-state placements; required core performance measures;
adjustments to performance standards; alternative incentives and sanctions policy; sampling or
baseline data for national follow-up measures; performance improvement; and other provisions
deemed appropriate. The revised reporting instructions are attached for use by the State.
B. The State's request to waive the Ratio of Out-of-School to In-School Youth service
requirements at JTPA § 263(f)(1) and 20 CFR 628.803(h)(1) has not been granted. It appears
that this may be an eligibility requirement and, as such is, excepted under the Secretary's
waiver authority granted in the 1997 DOL Appropriations Act. In any event, the Department
believes that it is important to provide services to out-of-school youth, and the ratio
requirement is the only statutory provision that guarantees services to this target population.
Since funding for title II-C youth services has decreased in recent years, the Secretary is not
prepared to permit further reduction of services to out-of-school youth by waiving the ratio
requirement.
C. The State's request to waive the relocation requirements of JTPA § 141(c)(2) has not
been granted. Under the DOL Appropriations Act of 1997, the Secretary does not have
authority to waive requirements relating to wage and labor standards, or workers' rights,
participation and protection. Even though the State is requesting an exemption for intrastate
movement, this exception precludes approval of this waiver request.
D. The State's request for waiver of the provisions at JTPA § 164(a)(3)(B), (C), & (I) has
not been granted. Where we have agreed to a waiver of procurement requirements, we have
required states to abide by the provisions found in the Office of Management and Budget
(OMB) Circular A-102 as codified in the DOL regulations at 29 CFR, Part 97, to ensure
financial accountability. The JTPA requirement to minimize the use of sole source
procurement to the extent practicable and the requirement for cost and price analysis have
comparable provisions in OMB Circular A-102. However, the State has not indicated an
intention to follow the OMB Circular 102 requirements.
Further, the State's request for a waiver of the provisions at JTPA § 107(a), which
requires that demonstrated performance be a primary consideration in the selection of service
providers and that community based organizations (CBOs) be given proper consideration in the
selection process, has not been granted. In the case of demonstrated performance, ETA
considers this to be an important component in the selection of service providers. In the case
of CBOs, historically they have provided integral employment and training services. The State
is expected to not only take into consideration the demonstrated performance of entities being
considered for funding, but also to include CBOs in the pool of entities being considered for
funding.
In addition, waiver of the provision at JTPA § 107(e), which requires that selections be
made on a competitive basis to the extent practicable, has not been granted. Competition has a
positive impact on the services provided with JTPA monies, by leading to the selection of
service providers with the capabilities to provide the services and by resulting in competitive
pricing for the purchased services.
E. The State's request to modify the regulatory definition of accrued expenditures found at
20 CFR 626.5 to include payables and purchase orders, etc, has not been granted. To allow
such a change would be contrary to our intent to ensure that JTPA funds are expended in a
timely manner and that the use of JTPA funds is maximized for the States and localities where
there is the greatest need for the funds. This waiver could appear to create the potential for
avoidance of the recapture and reallotment provisions under title III.
F. It is not clear that the Secretary has authority to waive her statutory responsibilities for
formula allotment and reallotment requirements, including the requirements under Sec. 303 for
the recapture and reallotment of unexpended title III formula funds. However, except as noted
below, the State's request to waive Sec. 303(b) and 20 CFR 631.12 is not approved for the
following policy reasons:
It is noted that Florida was earlier granted a four-year waiver to the regulatory provision at 20 CFR 631.12(a)(1)(ii). This waiver permits the State to carryover prior year funds contingent upon meeting the eighty percent expenditure requirement in the year of allotment. DOL believes a State's policy for recapture and reallocation of unexpended title III funds within a State can accommodate obligations to serve dislocated workers across program years.
G. As requested, the Secretary waives the prohibition on stand-alone work experience, job
search assistance, job search skills training, and job club, 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 ". . . shall be accompanied by . . . additional services . .
. unless the individual service strategy demonstrates such additional services are not
warranted." Additionally, the combination requirements at 20 CFR 627.245(d) and
628.804(e) and (f) are waived where such strategy is supported by an individual assessment.
H. As requested, the Secretary waives the prohibition on the payment of nonregular wages
for youth at 20 CFR 627.240(c)(2)(iii) and (iv) for youth in on-the-job training provided the
State develops procedures which effectively ensure wage standards, labor standards, and
worker rights.
I. 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) when indicated as
appropriate in the assessment and individual service strategy for youth in 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 abuses in developing youth OJT slots in low wage, low skill positions which
precipitated the enactment of the provisions for which this waiver is requested.
J. As requested, the Secretary waives JTPA §§ 108(b)(4)(B) and 315(a), and (b); 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), the 15% limitation
for title III, at JTPA § 315(c), and the 15% limitation for title II-B, at JTPA § 253(a)(3) and at
20 CFR 627.445(b)(3) of the JTPA regulations will remain in effect. The provisions at §
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 national reserve account (NRA) grants] shall
refer only to the administration cost limitations. 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. In consideration of the waivers contained in this grant modification, the State agrees to
a performance improvement of at least five percent at the State and local levels 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. States will take into
account the SDAs' performance improvement targets in determining the receipt of Title II
incentive grant awards for PY 1997. In considering whether the State and the SDAs have
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 Participant 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 National Reserve Account (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.