ETA will work with the State to identify the specific contents of the State and local plans required for JTPA titles II and III, as well as the time lines for the publication and submission of the plans contained in JTPA §§ 104(b), 205(a), 121(b), 311(a) and (b) and 313(b) and 20 CFR 628.205(a)(2), 628.420(b), 631.36(b), 631.36 (b) and 20 CFR 631.50(b) and (c); and Training and Employment Guidance Letter No. 4-95, "Instructions for Submission of State Plans Under title II and III of the Job Training Partnership Act." Once this is accomplished, the Secretary will entertain a request for any waivers needed to implement the revised planning process.

F. The State's request to "eliminate subsets of programs (titles IIA, IIB, IIC, Older Worker set-aside, title III Formula, Governor's Reserve, and Secretary's National Reserve) . . ." has not been granted because it is contrary to the prohibition on commingling of funds. This request is tantamount to a request to commingle funds, e.g. eliminating the reporting of services and expenditures based upon the purposes for which the funds were appropriated by Congress. The Training and Employment Guidance Letter (TEGL) No. 6-96, dated April 1, 1997, clearly indicated that waiver requests for commingling of funds would not be granted.

G. The request to eliminate reporting of participants referred by the Worker Profiling and Reemployment Services has not been granted. The definition of "participant" at JTPA § 4(37) will not be altered; therefore, all individuals who receive services funded by JTPA are considered participants, regardless of what outreach/referral mechanism was used to bring them into the Title III system. Reporting of participants on whom JTPA program dollars are spent for services will continue to be required so that the Department can fulfill its oversight and accountability responsibilities. However, we note that, most probably, the data required for JTPA participant reporting can be extracted by the State from a common database or MIS used by multiple agencies.

H. 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 Michigan 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 contain 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. As stated in the guidelines, the Department will provide revised reporting instructions.

I. The State has requested a waiver of JTPA § 161(b) and the regulatory provisions at 20 CFR 627.405(d) and 627.485, to extend the period of fund availability beyond the three-year period allowed by the Act. To allow such a waiver is contrary to our intention to assure that funds are expended for the benefit of JTPA participants in a timely fashion. In addition, such a waiver runs contrary to the concept of fiscal responsibility and accountability. Therefore, the requested waiver has not been granted.

J. The State requested a waiver of the records retention period required at JTPA § 165(e) and 20 CFR 627.460 of the JTPA regulations. These requirements are imposed to ensure accountability but are for more than just financial and audit reasons. For example, applicant and participant records also need to be retained for Civil Rights Act purposes. The record retention period is not excessively long. The waiver has not been granted.

K. The State's request to waive the reporting requirements for Secretary's National Reserve Account (NRA) Grants has not been granted. Requests for the application of approved waivers to NRA grants will be reviewed as part of the NRA application/modification process. The Department is currently revising the NRA reporting requirements to meet the Secretary's responsibilities for discretionary grants and to take into account waivers that may be granted when NRA funds are awarded or current grants are modified. Please refer to the last page of this document for further information regarding the application of approved waivers to NRA grants.

L. As requested, the Secretary waives JTPA § 106(b)(8) to permit the use of "Cost per Placement" as a performance measure in calculation of no more than 13 percent of each incentive award.

M. As requested, the Secretary will apply the definition of "family income" in 20 CFR 626.5 such that ". . . such income shall also exclude Social Security Disability Income for an individual with a disability,. . . ." This administrative regulatory waiver is being granted for a period of four years from the effective date of this Grant Modification.

N. 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.

O. 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 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. (JTPA § 204(c)(2)(A) was not waived as it was unnecessary to do so since (B)(i) already provides an exception.) 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.

P. As requested, the Secretary waives the requirements at JTPA § 264(d)(3)(A) and 20 CFR 628.804(d) and (f) that prohibit pre-employment and work maturity skills training as a stand-alone activity in cases where the objective assessment and individual service strategy indicate it is the appropriate intervention. We note that the State has neither asked for nor received a waiver of the definition of the Youth Employability Enhancement performance standard, which requires as one of five options that two out of three youth employment competencies (pre-employment/ work maturity, basic skills, and occupational skills) be obtained. (A waiver of 20 CFR 628.520(e) is unnecessary since this requirement applies only if the assessment indicates that a service is needed. This provision is also applied as non-binding guidance pursuant to waiver Q.)

Q. The Governor agrees to continue to require an objective assessment and individualized service strategy at entry and on an on-going basis for all participants under titles I, II and III that is tailored to the background and needs of the participant and ensures that services identified in the individual service strategy will be secured for the individual. The Secretary waives 20 CFR 628.515(a) and 628.520(a) and will apply JTPA §§ 204(a)(1) and 264(b)(1), and remaining sections of 20 CFR 628.515 and 628.520 as providing non-binding guidance for the alternative State policy that the Governor shall implement.

Until such time as the alternate policy for title II adults and youth is in place, the requirements specified in the preceding sentence will continue to apply to any decision to provide the stand-alone activities permitted in paragraphs O. and P. above (i.e., work experience, job search assistance, job search skills training, job club for both youth and adults, and pre-employment and work maturity skills training for youth) which relies on the objective assessment and ISS.

R. The State's request to waive the 30-day inactive status is already allowable under current policy and a waiver is not necessary. Training and Employment information Notice (TEIN) 5-93, Change 2, revised the guidance on periods of inactive status. Under the revised guidance, multiple periods of inactive status are allowable as long as substantial and frequent services are provided. Substantial services are those cited in the Act, and frequent is defined as no less often than every 90 days, and all services should be planned for in the ISS or individual readjustment plan.

S. 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.

T. The State has the flexibility to identify alternate documentation sources to establish citizenship for JTPA eligibility purposes, and a waiver is not necessary. The JTPA Title II Eligibility Documentation Technical Assistance Guide (TAG) is intended to be a guide for the State on the types of suitable documentation for establishing eligibility for JTPA services, including citizenship. The examples included in the TAG are not intended to be an all-inclusive list, and the State may identify other sources if it is satisfied that such documentation is sufficient to establish eligibility or, in the case of the State's request, citizenship. The State is reminded, however, of recent legislation which prohibits the use of a voter registration card (or other related document) as proof of citizenship (see Training and Employment Information Notice No. 22-92, Change 5, dated December 10, 1996).

U. The State's request to waive the provisions at JTPA § 264(d)(2) and 20 CFR 628.804(b) requiring that title II-C out-of-school participants under the age of 18 who have not obtained a high school diploma enroll in and attend school prior to receiving other services has not been granted. The State's request fails to show that such a waiver would either improve program performance or the provision of services to out-of-school youth. Since both the Act and regulations currently provide considerable flexibility in what constitutes school attendance (e.g., school, course or program including those provided by CBOs), the problems described by the State may be related to program design problems which the State has the ability to address under the existing requirements.

V. 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, 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.

W. In consideration of the waivers contained in the 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.