Mr. Roger B. Madsen
Director
Idaho Department of Employment
317 Main Street
Boise, Idaho 83735-0001
Dear Mr. Madsen:
I am pleased to offer Idaho JTPA waiver approvals in response to Governor Batt's May
2, 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 Idaho'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 Idaho 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,
Michael Brauser
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 Idaho 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 Idaho. They do not necessarily
constitute an endorsement of the examples in Idaho'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 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
under the provisions of 20 CFR 627.201 for a period of four years from the effective date of
this Grant Modification.
B. The Secretary will apply the definition of "family income" in 20 CFR 626.5 such that
". . . . The Governor may, for the purposes of determining income eligibility for services
under title II of the Act, exclude up to 50 percent of Social Security and Old Age Survivors'
Insurance benefit payments. . . from the definition of family income." This administrative
regulatory waiver is being granted under the provisions of 20 CFR 627.201 for a period of
four years from the effective date of the Grant Modification.
C. The Secretary will interpret the requirements of 20 CFR 628.803(b) that define in-school youth to include 14 and 15 year-old youth who are not attending school full-time
because of expulsion, suspension, or truancy, so long as there is a written agreement with the
school system to serve such youth and that services do not include specific vocational training.
D. 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 20 CFR 627.445(b)(3)
will remain in effect. 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 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.
E. 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
developing the State policy.
Until such time as the alternate policy is in place for title II adults and youth, the requirements specified in the preceding sentence will continue to apply to any decision to provide the stand-alone activities permitted in paragraphs F. and G. below (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.
F. 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. (The provisions of 20 CFR 627.245(c), which specify the
duration of work experience, have not been 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 will be used sparingly.
G. As requested, the Secretary waives the requirements at JTPA § 264(d)(3)(A), 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.
H. 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 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 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.
I. For title II and title III, current authority permits participants to continue to receive
training 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 Idaho 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 authorize training as a post-termination service contingent upon the
Governor:
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.
J. The Secretary waives JTPA § 254(a) and 20 CFR 628.710 in order to permit
commencement of the assessment process for youth that will determine skill levels and service
needs and to provide the opportunity for youth to explore worksite options after the school
hours during a period of up to one month prior to the scheduled school vacation.
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.