Section 2625.20  Definitions

 

For the purpose of this Part, the terms and definitions specified in Section 4 of the Job Training Partnership Act (Act) (29 U.S.C. 1501) and 56 Ill. Adm. Code 2600.20 are applicable.

 

Section 2625.25  Authorized Activities

 

a)         General Program Purpose – State and substate grantees will use the State's Job Partnership Training Act (JTPA) Title III funds to provide employment and training assistance to eligible dislocated workers enrolled in the program.

 

b)         Allowable Activities – Such activities are specified in Section 314(a) of the Act and include:

 

1)         the provision of rapid response assistance in accordance with Section 314(b) of the Act;

 

2)         the delivery, coordination and integration of basic readjustment services and support services in accordance with Section 314(c) of the Act;

 

3)         the provision of retraining services in accordance with Section 314(d) of the Act;

 

4)         the provision of needs-related payments in accordance with Section 314(e) of the Act; and

 

5)         provisions for coordination with the unemployment compensation system in accordance with Section 314(f) of the Act.

 

(Source:  Added at 15 Ill. Reg. 10368, effective July 1, 1991)

 

Section 2625.30  Allocation of Funds

 

a)         Federal Allotment to States – The State receives Title III funds under the Act as allotted by the Secretary of the U.S. Department of Labor (U.S. DOL) in accordance with Section 302(b) of the Act.

 

b)         Federal Reserve Fund – The Department of Commerce and Community Affairs (Department) shall apply for funds reserved by the Secretary of the U.S. DOL under Section 302(a)(2) of the Act, in accordance with Title III instructions periodically issued by the Secretary of the U.S. DOL.  Reserve funds shall be used to provide services, of the type described in Section 314 of the Act, to individuals who are affected by the circumstances described in Section 323 of the Act, and conduct activities as applicable under Section 324 of the Act.

 

c)         State Allocation to Substate Areas – The Governor shall allocate 60 percent of the State's Title III allotment to substate areas in accordance with Section 302(d) of the Act.  The allocation formula shall utilize the information detailed in Section 302(d) of the Act.  Each of the following shall be the basis for allocating 25 percent of the total allocation to each substate area:  insured unemployment data, unemployment concentrations data, declining industries data and long-term unemployment data.  The following shall be included in the allocation formula, but shall not be bases for the distribution of funds at this time:  plant closing and mass layoff data, and farmer-rancher economic hardship data.

 

1)         The following shall be the measures of the factors to be used in calculating the allocation of Title III funds to substate areas:

 

A)        Insured Unemployment Data – The relative number, for each substate area, of unemployment insurance claimants under the Unemployment Insurance (UI) system.

 

B)        Unemployment Concentrations Data – The relative number, in each substate area, of unemployed individuals residing in counties (or sub-county substate areas) with an unemployment rate higher than the statewide unemployment rate for the same time periods as used in federal allotments.

 

C)        Declining Industries Data – The relative number, in each substate area, of jobs lost within industries which have experienced declining employment.

 

D)        Long-Term Unemployment Data – The relative number, in each substate area, of unemployment insurance claimants who have received benefits for 15 or more weeks under the UI system.

 

2)         No substate area shall be allocated an amount less than a minimum set by the Illinois Job Training Coordinating Council (IJTCC).  The minimum for the first year is $200,000.  If the amounts allocated pursuant to the above formula are not sufficient to meet this level for each substate area, the amounts allocated to all other areas shall be ratably reduced so that each receives no less than the minimum.

 

3)         As applicable, the Department shall utilize data for the same base period as the Secretary of the U.S. DOL pursuant to Section 162 of the Act, if all necessary data is available to the Department in a timely manner.

 

d)         Reservations for State Activities and for Substate Grantees in Need – In accordance with Section 302(c) of the Act, the Governor shall reserve 40 percent of the amount allotted to the State under Section 302(a)(1) of the Act.  These funds shall be used for the activities described in Section 302(c)(1)(A) through (E) of the Act.

 

(Source:  Amended at 15 Ill. Reg. 10368, effective July 1, 1991)

 

Section 2625.40  Title III Substate Area

 

a)         Designation of Substate Area

            The Department on behalf of the Governor may initiate an application process for Private Industry Councils and local chief elected officials to request designation as a substate area under the Act to take effect at the start of Program Year 1989.  The process for designation and redesignation of substate areas shall conform with the requirements of Section 312(a) of the Act and 54 FR 39144 (codified at 20 CFR 631.34 (April 1, 1990)) (September 22, 1989). Redesignation of substate areas shall not take place more frequently than once every two years and shall not be made later than four months before the beginning of a program year.  In considering whether to initiate an application process for designation, the Department shall ensure that each Service Delivery Area (SDA) within the State is included within a substate area and that no SDA is divided among two or more substate areas; ensure the recommendations of the IJTCC are forwarded to the Governor's office; consider the availability of administrative funds to support the existing SDA administrative structure; and, consider the capacity available in the substate areas to achieve or exceed performance standards.  The IJTCC shall recommend to the Governor a map of the State identifying the geographical area to be included in each substate area.  Pursuant to Section 4(c) of the Illinois Job Training Coordinating Council Act (Ill. Rev. Stat. 1989, ch. 48, par. 2104), these recommendations shall be forwarded to the President of the Senate and Speaker of the House of Representatives, or their designees, for review and comment by the Illinois General Assembly.  In addition to criteria which may be identified by the IJTCC, the IJTCC shall consider the following criteria prior to making recommendations to the Governor on designation and redesignation:

 

1)         the availability of services throughout the State;

 

2)         the capability to coordinate the delivery of services with other human service and economic development programs;

 

3)         the geographic boundaries of labor market areas within the State;

 

4)         the adequacy of estimated available funds to support the administrative expenses of proposed substate areas;

 

5)         the potential impact of designation and redesignation decisions on the ability to maintain existing effective local relationships established for the provision of employment and training services (e.g., agreements among local chief elected officials).

 

b)         Petition for Redesignation – Pursuant to Section 312(a)(6) of the Act, the Department shall initiate an application process for redesignation as described in subsection (a), if a petition is filed with the Department by an entity specified in Section 312(a)(4) of the Act.  Petitions shall be accepted only if filed at least eighteen months before the start of the program year for which the redesignation is proposed.  Petitions for redesignation shall include a Consortium Membership Agreement for petitioners pursuant to Section 312(a)(4)(B) of the Act.

 

(Source:  Amended at 15 Ill. Reg. 10368, effective July 1, 1991)

 

Section 2625.50  Designation of Substate Grantees

 

a)         Transition Provisions – Provisions of this subsection shall apply to the initial designation of the substate grantee to implement the provisions of the Economic Dislocation and Worker Adjustment Assistance Act.  In each substate area designated by the Governor pursuant to Section 2625.40, a substate grantee shall be designated in accordance with Section 312(b) of the Act.  Pursuant to the transition provisions specified at 54 FR 39147-39148 (codified at 20 CFR 631.70(c) (April 1, 1990)) (September 22, 1989), the effective period of this designation shall end June 30, 1990.  The chief elected officials (CEO) and the Private Industry Council (PIC) for each substate area shall recommend to the Governor an entity as substate grantee.  In any case in which there are two or more units of general local government, the CEO of such units shall negotiate with the PIC in a manner consistent with the agreements established pursuant to Sections 102(d)(2) and 103(b) of the Act to arrive at a recommendation.  In any case where the Governor concurs with the joint recommendation of the CEO and PIC, the Department shall forward a written agreement to the CEO and PIC for signatures to execute the agreement with the Governor.  In any area where the CEO and the PIC cannot reach agreement, the CEO and PIC shall forward separate recommendations to the Governor.  The Department shall distribute written instructions for the submittal of recommendations.  In any case where the Governor is not in agreement with the CEO and PIC recommendation, or the CEO and PIC are not in agreement, the Department shall first attempt to negotiate a consensus recommendation.  In the event a consensus recommendation cannot be reached, the Governor shall select the substate grantee.  In attempting to negotiate a consensus recommendation or, in the absence of consensus, when designating the substate grantee, the Governor shall consider the following:

 

1)         The degree to which the designation will contribute to the elimination of duplication of services;

 

2)         The degree to which the designation will foster coordination of services with other programs under the Act;

 

3)         The ability of the agency recommended to deliver services as evidenced by past experience in the administration of employment and training programs; and,

 

4)         The degree to which the proposed designation capitalizes on the expertise of the Regional Dislocated Worker Centers established under previous statute.

 

b)         Eligible Agencies – Entities defined pursuant to Section 312(c) of the Act are eligible to be designated as a substate grantee.

 

c)         Biennial Designation – Pursuant to the requirements of Section 312(b) of the Act, a substate grantee shall be designated on a biennial basis in accordance with an agreement among the Governor, the local chief elected official or officials of the substate area and the PIC.  In any case in which there are two or more units of general local government, the CEO of such units shall negotiate with the PIC in a manner consistent with the agreements established pursuant to Sections 102(d)(2) and 103(b) of the Act.  Designation of the substate grantee shall be consistent with coordinated service delivery. Such coordinated service delivery arrangements shall be consistent with the statement of goals and objectives prepared by the Governor pursuant to Section 121(a)(1) of the Act and established criteria for coordinating activities under the JTPA pursuant to Section 121(b)(1) of the Act. In addition, designation decisions shall take into consideration the ability of the designated agency to meet and exceed performance standards established pursuant to Section 106 of the Act. Designation decisions shall also take into account the ability of the designated agency to provide adequate administrative safeguards for the expenditure of federal funds. Such safeguards include but are not limited to procedures that meet generally accepted accounting principles that ensure compliance with the requirements of the Act, implementing federal regulations published September 22, 1989 (54 FR 39139-39148, codified at 20 CFR 631 (April 1, 1990)) and 56 Ill. Adm. Code 2630. Biennial designation of the substate grantee shall conform to the following procedures:

 

1)         Performance Related – In any case where the substate grantee fails to meet performance standards promulgated by the Secretary pursuant to Section 106(c) of the Act or fails to provide adequate administrative safeguards that meet generally accepted accounting principles and ensure compliance with the requirements of the Act, implementing federal regulations published September 22, 1989 (54 FR 39139-39148, codified at 20 CFR 631 (April 1, 1990)), and State rules (56 Ill. Adm. Code 2600, 2625, and 2630), the Department shall initiate negotiations for the designation of the substate grantee.  In such cases, the Department shall forward written instructions to the CEO and PIC describing procedures for negotiations.  The existing substate grantee shall not be redesignated unless the following procedures are followed:

 

A)        The reasons for inadequate performance shall be documented and provided to the Department.

 

B)        A corrective action plan shall be developed and submitted to the Department.  The plan shall include, as appropriate, reorganization of the substate grantee to address the reasons for inadequate performance.  The plan shall described other proposed corrective action to address inadequate performance.

 

C)        The IJTCC shall review the documentation and proposed corrective action and make a recommendation to the Department regarding the designation.

 

D)        The Department shall determine that the corrective action plan has a reasonable expectation of correcting inadequate performance (i.e., corrective action to be implemented is directly related to the problem identified; corrective action is achievable within the timeframes specified; requested technical assistance can be provided within timeframe specified). If the corrective action plan is determined to be insufficient, the Department will provide recommendations to the grantee regarding corrective action or revisions to proposed corrective action to be incorporated into their plan.

 

2)         Local Request for Designation – Either the CEO or the PIC may request the Department to initiate procedures for the designation of a substate grantee.  In order to allow adequate time for negotiations and transition of participants, such a request shall be made in writing twelve (12) months in advance of the biennial cycle in which the proposed redesignation is to take effect.  After a request is made, the Department shall issue written instructions to the CEO and PIC regarding the conduct of negotiations to arrive at an agreement pursuant to Section 312(b) of the Act.

 

3)         Continuing Designation – Except as provided under subsections (c)(1) and (c)(2), existing agreements shall be automatically renewed at the beginning of each biennial cycle.  Unless requested by a party to the agreement, no modification to the existing agreement shall be made, and the existing agreement shall remain in effect.  Modifications to the agreement shall be in writing and signed by all parties.

 

4)         Inability to Perform – If for any reason (e.g., insolvency) the existing substate grantee is unable to fulfill its responsibilities under the Act, the Governor shall immediately initiate redesignation procedures with the CEO and PIC.

 

(Source:  Amended at 15 Ill. Reg. 10368, effective July 1, 1991)

 

Section 2625.55  Eligibility Requirements

 

a)         To be eligible under Section 301(a)(1)(A) of the Act, applicants shall:

 

1)         have been terminated or laid off from employment within the two (2) years preceding application, or have received a notice of termination or layoff and have not yet been terminated or laid off; and

 

2)         be eligible for or have exhausted their entitlement to unemployment compensation as determined by the Illinois Department of Employment Security (for purposes of this Part, "eligible for unemployment compensation" includes any individual whose wages from employment would be considered in determining eligibility for unemployment compensation under Federal or State unemployment compensation laws); and

 

3)         have been employed in an occupation or a series of occupations with the same employer for at least one (1) year, or employed in a single industry for at least one (1) year, and have either been terminated or laid off from that occupation or industry within the two (2) years preceding application or have received notice of impending layoff or termination; and either

 

A)        laid off from a declining industry (A declining industry is any three digit standard industrial classification (SIC) code with less than a zero rate of growth as shown in the "Occupational Projections State of Illinois 1986-2000" prepared by the Illinois Department of Employment Security, 401 South State Street, Chicago, Illinois 60605 and published August 1990.); or

 

B)        laid off from a low growth occupation as shown in the "Growth Rate by SOC Code For:  State of Illinois State Employment Change 1986-2000" prepared by the Illinois Occupational Information Coordination Committee, 217 East Monroe, Suite 203, Springfield, Illinois 62701, issued 1990; or

 

C)        laid off from an occupation with less than fifty (50) annual job openings on a statewide basis; or

 

D)        been unemployed for at least twenty-six (26) weeks and have completed one month of documented job search through the Job Service.

 

b)         To be eligible under Section 301(a)(1)(B) of the Act, applicants shall have been terminated as a result of any permanent closure of, or any substantial layoff (as defined in 56 Ill. Adm. Code 2600.20) at, a plant, facility or enterprise within the two (2) years preceding application, or have received a notice of termination for such reason(s) and have not yet been terminated.

 

c)         To be eligible under Section 301(a)(1)(C) of the Act, applicants shall:

 

1)         have been unemployed for fifteen (15) or more of the twenty (20) weeks prior to application; and

 

2)         have been employed in an occupation or a series of occupations with the same employer for at least one (1) year, or employed in a single industry for at least one (1) year, and have either been terminated or laid off from the occupation or industry within the two (2) years preceding application or have received notice of impending layoff or termination; and either

 

A)        laid off from a declining industry; or

 

B)        laid off from a low growth occupation; or

 

C)        laid off from an occupation with less than fifty (50) annual job openings on a statewide basis; or

 

D)        been unemployed for at least twenty-six (26) weeks and have completed one month of documented job search through the Job Service.

 

d)         Eligibility under Section 301(a)(1)(D) of the Act is limited to applicants who:

 

1)         were self-employed (including farmers, ranchers, professionals, independent tradespeople and other business persons) and presently are unemployed as a result of one of the following:

 

A)        natural disasters such as hurricane, tornado, storm, flood, high water, wind driven water, tidal wave, tsunami, earthquake, volcanic eruption, landslide, mudslide, snow storm, drought, fire, explosion, or other catastrophe; or

 

B)        general economic conditions in the community in which they reside as evidenced by one or more of the following:

 

i)          failure of one or more businesses to which the self-employed individual supplied a substantial proportion of products or business;

 

ii)         failure of one or more businesses from which the self-employed individual obtained a substantial proportion of products or services;

 

iii)        substantial layoff(s) from, or permanent closure(s) of, one or more plants or facilities that support a significant portion of the state or local economy;

 

iv)        depressed price(s) or market(s) for the article(s) produced by the self-employed individual; or

 

v)         levels of unemployment in the local areas that meet or exceed national percentages; or

 

2)         are self-employed (including farmers, ranchers, professionals, independent tradespeople, and other business persons) who are in the process of going out of business as evidenced by one or more of the following:

 

A)        the issuance of a notice of foreclosure or intent to foreclose;

 

B)        the failure of the farm, ranch or business to return a profit during the preceding twelve (12) months;

 

C)        the entry of the self-employed individual into bankruptcy proceedings;

 

D)        the inability to make payments on loans insured by tangible business assets;

 

E)        the inability to obtain capital necessary to continue operations; or

 

F)         a debt to asset ratio sufficiently high to be indicative of the likely insolvency of the farm, ranch or business; or

 

3)         are family members, farmhands, or ranchhands of individuals identified in subsections (d)(1) and (2) above, to the extent that their contribution to the farm, ranch, or business constitutes a minimum of one year full-time work in the farm, ranch or business.

 

e)         Occupational and Industrial Information Data

 

1)         The occupations that an applicant has held shall be assigned a title and code in accordance with the SOC coding system provided in the 1980 "Standard Occupational Classification Manual" (issued by the U.S. Department of Commerce, Office of Federal Statistical Policy and Standards and published by the U.S. Government Printing Office, Washington D.C. 20402). The descriptions of job duties provided by the applicant shall be used to determine the applicable title and code. Likewise, the industry in which the applicant was employed at the time of termination or layoff shall be assigned a title and code in accordance with the Standard Industrial Classification (SIC) coding system.

 

2)         The "Growth Rate by SOC Code For:  State of Illinois State Employment Change 1986-2000", issued 1990, shall be used for purposes of eligibility determination. This SOC code growth rate information, sorted by region (SDA) and statewide, shall be transmitted to grantees to be used as a basis for determining the growth rate of an applicant's occupation(s).  Substate grantees may use information from either sort, however when information is used from the regional sort (SDA), that information (low growth SOC codes) must be added to the substate grantee's title plan on the JTPA-II system.  Requests for adding low growth SOC codes to a title plan shall be submitted in writing to the substate grantee's program manager.  To meet the growth rate test the applicant's occupation shall have an annual employment growth rate of less than 0.5 percent.

 

3)         The growth rate of each occupation in the applicant's series of occupations shall be included in the participant record.

 

f)         Veterans who have voluntarily separated from the military may be considered for eligibility determination under the provisions of Section 301(a)(1)(A) of the Act.  SDAs shall use a SOC code for these veterans which relates as closely as possible to the veteran's responsibilities in the military.

 

g)         Up to five percent (5%) of the Title III participants may be enrolled for program services on an annual basis as displaced homemakers (as defined in 56 Ill. Adm. Code 2600.20) if the substate grantee has provided for such in its job training plan. If a substate grantee is having difficulty meeting appropriate expenditure levels, it may petition the Department for permission to expand the service window to serve up to ten percent (10%) eligible displaced homemakers by contacting their program manager.

 

h)         A substate grantee may issue to any eligible dislocated worker who has applied for the retraining/services under Economic Dislocation and Worker Adjustment Assistance (EDWAA) a certificate of continuing eligibility.

 

1)         Such a certificate of continuing eligibility:

 

A)        shall be effective for periods not to exceed one hundred four (104) weeks;

 

B)        shall not include any reference to any specific amount of funds;

 

C)        shall state that it is subject to the availability of funds at the time any such training services are to be provided; and

 

D)        shall be non-transferable (between individuals or states).

 

2)         The following information shall be included on the face of the certificate:

 

A)        client name;

 

B)        social security number;

 

C)        application date;

 

D)        certificate expiration date; and

 

E)        substate grantee's identification number.

 

3)         Certificates may be used by an eligible dislocated worker to seek out and arrange his or her own training with service providers approved by the substate grantee. Substate grantees shall ensure that records are maintained showing to whom such certificates have been issued, the dates of issuance and the ultimate disposition of such certificates.

 

4)         When grantees issue a certificate to an eligible dislocated worker, the applicant file shall contain documentation for the eligibility determination, including an application and a copy of the certificate. The applicant record shall be entered on the JTPA-II MIS and appropriately recorded as certificate holder.

 

5)         When grantees or service providers redeem certificates, copies of original documentation from the applicant file shall be retrieved from the issuing agency, reviewed, and included in the participant file for persons who are redeeming certificates. If, at the time a person presents a certificate for redemption, more than forty-five (45) days have elapsed since the certificate was issued, or if the certificate is being redeemed by a different substate grantee, applicant characteristics will have to be updated on a new application and certificate redemption will be checked as eligibility reason on the application.

 

(Source:  Amended at 16 Ill. Reg. 20098, effective December 14, 1992)

 

Section 2625.60  Performance Standards System

 

a)         Establishment of Title III Performance Standards System – In accordance with the requirements of Section 106 of the Act and the revisions made to Title III by the Economic Dislocation and Worker Adjustment Assistance Act (EDWAA), the Department shall prescribe performance standards for the Title III dislocated worker program for Program Year (PY) 1990-1991 (July 1, 1990 - June 30, 1992). EDWAA funds are available in three categories from the U.S. DOL:  State Allocated EDWAA Funds (IIIA), Governor's Reserve Funds (IIIG), or Secretary's Reserve Funds (IIIN). The performance standards specified in this Section apply only to State Allocated EDWAA Funds (IIIA). The Department, in developing Title III performance standards, used the U.S. DOL's directive on Title III performance standards requirements issued in the April 13, 1990 edition of the Federal Register (55 FR 14012-14018) and the "Guide for Setting JTPA Title II-A and Title III (EDWAA) Performance Standards for PY 1990", issued November 1990, by the U.S. DOL Office of Strategic Planning and  Policy Development.

 

b)         U.S. DOL has issued a single performance standard, the entered employment rate, for the Title III program as well as an optional wage at placement goal.

 

c)         The Governor is required to set an entered employment rate standard for each substate grantee and has the option of setting an average wage at placement standard.

 

d)         Although the governor is required to use the performance standards established by U.S. DOL, the governor is permitted, within guidelines established by U.S. DOL, to adjust the national standards in setting performance expectations for the substate grantees. In light of this flexibility the State of Illinois has developed performance standards models using State of Illinois data.

 

e)         Performance standards are based on statistical planning models which use multiple regression techniques to predict expected performance of grantees for each measure. The models adjust for local economic conditions and the characteristics of the participants served by the grantee. The weighted values in the model have been based on prior performance under the JTPA. Application of the adjustment models results in a singular performance expectation (model adjusted value) for each of the performance measures. The Governor has developed the following two performance standards, in accordance with subsections (a) through (d), which will be used to compute the performance of each substate area:  

 

1)         Entered Employment Rate (EER) – Number of individuals who entered employment at termination (excluding those who were recalled or retained by the original employer after receipt of a layoff notice) as a percentage of total terminations (excluding those who were recalled or retained by the original employer after receipt of a layoff notice).

 

2)         Average Wage at Placement (AWAP) – Average hourly wage for all persons who entered employment at the time of termination.

 

f)         Title III Performance Standards Policy

 

1)         Performance standards are to be applied to the following programs funded under Section 302 of the Act:  All of section 302(c)(1) State activities; Sections 302(c)(2) and 302(d) substate area activities.

 

2)         Entered employment rate and average wage at placement will be implemented as Title III performance measures in PY'90.

 

3)         Illinois adjustment models will be used for PY'90.

 

4)         To qualify as having met performance standards, a substate grantee must meet or exceed both of the U.S. DOL performance measures.

 

5)         If a substate grantee fails to meet performance standards (as specified in subsections (e)(1) and (2)) for two consecutive years, the Department on behalf of the Governor may institute procedures pursuant to the Governor's by-pass authority in accordance with federal regulations (54 FR 39145, codified at 20 CFR 631.38 (April 1, 1990)) or require redesignation of the substate grantee in accordance with federal regulations (54 FR 39144-39145, codified at 20 CFR 631.35 (April 1, 1990)), as appropriate.

 

g)         Award of Incentive Grants

 

1)         Incentive bonus awards will be based entirely on the two measures of performance (Entered Employment Rate and Average Wage at Placement).

 

2)         To qualify to receive an incentive bonus award a substate grantee must first meet two requirements, these are as follows:

 

A)        A substate grantee must have expended a minimum of 85% of the total Title IIIA funds available for the program year.

 

B)        A substate grantee must meet or exceed the local performance standard for both performance measures.

 

3)         A qualifying substate grantee is then eligible for an incentive award if it exceeds either of the two performance measures based on the degree to which performance exceeded the standard. The incentive bonus funds will be divided equally into two portions with one portion associated with each measure. Each of the two shares is further divided into three levels. These levels are as follows:

 

Degree to Which Performance Exceeded the Standard	Percentage of Incentive Grant Funds Available
>0% - 9.99%	45%
10% - 19.99%	35%
20% and above	20%

 

4)         The allocation of funds at each level will be based on the qualifying substate grantee's relative share of the EDWAA Title IIIA allocation formula applied against each level of available funds for each measure exceeded.

 

5)         Unallocated incentive bonus funds will be carried over into the next year and distributed to qualifying substate grantees based on the above methodology.

 

6)         The sum of the awarded amounts distributed under subsections (g)(3) and (5) above will equal the total incentive bonus award for the substate grantee.

 

(Source:  Added at 15 Ill. Reg. 10368, effective July 1, 1991)

 

Section 2625.70  Reallotment of Funds

 

Section 303 of the Act contains provisions for the reallotment of excess carry-forward from states, as well as a requirement that states establish procedures to ensure the availability of funds for deobligation should a state have excess carry-forward. The reallotment of funds from states will be determined on the basis of an allowable carry-forward which equals 20% of the allotment for the previous program year plus funds not expended from the year prior to the previous year. The procedure for the reallocation of funds within Illinois will be contingent upon Illinois' status vis-a-vis the national reallotment process.

 

a)         Procedures When the State Loses Funds Through U.S. DOL Reallotment

 

1)         When Illinois loses funds due to reallotment by the U.S. DOL, the amount of the loss is proportioned according to the amount underspent by the SDAs as a group and by the Department. The determination of funds to be reallotted from the state is made on the basis of funds received by the state as a whole (i.e., funds received by substate areas and the Department). The statewide allowable carry-forward is 20% of the total statewide allotment, and the statewide excess carry-forward is the amount by which the combined carry-forward from both sources exceeds the allowable.

 

2)         Following the determination of this statewide excess, excess carry-forward is calculated separately for the combined substate areas and for the Department, again on the basis of a 20% allowable carry-forward limit. If both have carry-forward in excess of their 20% allowable limit, then the excess carry-forward for each can simply be combined to provide for the state reallotment amount. If one is not in excess of the 20% allowable carry-forward limit, then the total state reallotment amount must be provided by the other.

 

3)         In the event that the Department has carry-forward in excess of its allowable limit, the necessary amount of funds will be deobligated directly.

 

4)         To determine excess carry-forward at the substate level, the following procedures will be adhered to:

 

A)        An amount equal to 15% of the allocation for each SDA will be considered "allowable" carry-forward. Carry-forward above this amount will be considered "excess" carry-forward. The amount of "excess" carry-forward from each SDA will be aggregated. From this "pool" of funds will be deducted any substate share of state funds sent to the U.S. DOL as part of the national reallotment.

 

B)        An SDA expending 85% or more of its total funds available will be eligible to receive funds redistributed  from this "pool" of excess carry-forward funds, as adjusted by the results of the U.S. DOL reallotment process.

 

C)        Any funds remaining in this "pool" will then be reallocated to "eligible" SDAs, on the basis of a two-part formula modeled on the federal formula used to reallot funds among the states. In the first step, the relative allocation percentages are calculated for eligible substate areas. Based on these relative percentages, the amount to be reallocated is distributed. However, the amount reallocated to substate areas with unemployment rates at or below the statewide average are taken back and "re-pooled." The relative allocation percentages are then again used to distribute this amount to all "eligible" SDAs. In this manner, SDAs with higher than average unemployment rates are eligible to receive reallocated funds from both distributions, while those with a lower rate of unemployment receive funds only from the second distribution.

 

b)         Procedures When the State Gains, or Does Not Lose Funds Through U.S. DOL Reallotment

 

1)         Again, a "pool" of excess substate area funds would be constructed, based upon a 15% of allowable carry-forward. In this case, however, the state as a whole would gain funds reallotted from other states or, of the amount received by the state in this manner, 60% would be added directly to the "pool" of substate area funds to be reallocated. This total amount would then be distributed according to the two-step method described above.

 

2)         The remaining 40% of the funds received from the reallotment from other states would come to the Department and would be available for the same uses as the 40% state portion of the original allotment.

 

3)         These reallotment and reallocation processes would be completed by October 1 of each year or the first working day after that date.

 

4)         All funds received by substate areas in this manner would be subject to the same cost category limitations as the funds originally allocated during any program year.

 

(Source:  Added at 15 Ill. Reg. 10368, effective July 1, 1991)

 

Section 2625.80  Incorporation by Reference

 

Any incorporation by reference in this Part of the rules and regulations of any agency of the United States or of standards of a nationally recognized organization or association includes no new amendments or editions after the date specified.

 

(Source:  Added at 15 Ill. Reg. 10368, effective July 1, 1991)