Allocation of WIOA Adult and Youth Funds to Local Areas:

The three-part formula for allocating WIOA Adult and Youth funds to Local Areas is as follows:

Step 1

The process begins by determining the average number of individuals in the civilian labor force and unemployed for the most recent twelve-month reference period of July 1st through June 30^th, by Local Area.

Once these numbers are calculated, the areas of substantial unemployment (ASU) are identified. By definition, an ASU is a contiguous area with a population of at least 10,000 individuals and an unemployment rate of at least 6.5 percent.

For Local Areas that have unemployment of 6.5 percent or greater, the civilian labor force and unemployment data is inserted directly into the allocation formula. For Local Areas that have unemployment less than 6.5 percent, an ASU search is performed. For reference, the ASU search process, as described below, is completed through a joint working venture between L&I’s Center for Workforce Information and Analysis (CWIA) and the Bureau of Workforce Development Administration (BWDA).

An ASU search is a procedure developed by the federal Bureau of Labor Statistics to identify ASUs. County-level unemployment data, along with either Census tract or municipal level unemployment data from the most recent Census, is used to determine the current unemployment rates for cities, townships, or Census tracts. Through this procedure, which can utilize a subtraction or addition method, cities, townships, or Census tracts that border each other are joined together until the definition of an ASU is achieved. A Local Area can have more than one ASU within their geographic border, if the building method is used.

Once the ASU(s) is designated, the civilian labor force and unemployed totals for each Local Area’s ASU are then inserted into the computer based allocation formula.

Step 2

The first third of funds is allocated on the basis of the number of unemployed in ASUS compared to the statewide total of such individuals (as determined in Step 1). The percentage share of funds is determined by dividing the number of unemployed in each Local Area with unemployment of 6.5 percent or greater, by the statewide total of unemployed in areas with unemployment of 6.5 percent or greater. The resulting percentage is then multiplied by one-third of the State's available allotment.

Step 3

The next third of funds is allocated on the basis of the number of unemployed individuals in excess of 4.5 percent of the civilian labor force in each Local Area compared to the total number of such individuals in the State. As required by WIOA the “higher of” either the number of unemployed individuals in excess of 4.5 percent of the civilian labor force in the Local Area; or the number of unemployed individuals in excess of 4.5 percent of the civilian labor force in areas of substantial unemployment in the Local Area is calculated.

The excess number of unemployed over 4.5 percent of the civilian labor force is then totaled for the State. This statewide total is then divided into the number of excess unemployed in each Local Area to determine each Local Area's percentage share of funds. This percentage is then multiplied by one-third of the State’s available allotment.

Step 4

The final third of funds is allocated based on the number of economically disadvantaged individuals in each Local Area compared to the statewide total of such individuals. The number of economically disadvantaged individuals is derived from the most recent federal Census. Economically disadvantaged youth (age 16-21) and economically disadvantaged adults (age 22-72) are used for each respective funding stream.

Using federal Census data, the percentage share is determined by dividing the number of economically disadvantaged for each Local Area by the statewide economically disadvantaged total. The resulting percentage for each Local Area is then multiplied by the final one-third of funds. The amount of funds for each third of the formula is then totaled for each Local Area.

Step 5

Note that prior to the minimum allocation percentage, commonly known as "hold-harmless" provision, being applied, the total amount determined in the prior steps would be each Local Area’s allocation. Briefly, the hold-harmless provision ensures that a Local Area will not be allocated funds that are less than 90 percent of their average allocation percentage for the prior two years. Utilization of this authority, combined with WIOA’s requirement that a hold-harmless percentage be applied, means that Local Area’s allocations will continue to include the critical hold-harmless provision. The utilization of the hold-harmless provision will stabilize Local Area funding and minimize service disruptions.

The next step is then to apply the hold-harmless provision to the allocations. This is done by first combining each Local Area’s allocation, excluding transfers or unexpended funds, for the previous two years. The Local Area’s two-year combined allocation is then divided by the statewide two-year combined allocation to determine the relative share percentage of funds that each Local Area received for the two reference years.

Ninety percent of the relative share percentage is then calculated to establish the minimum percentage share that each Local Area must receive in the formula allocation process.

Step 6

Using the base allocations determined in steps 2, 3 and 4, each Local Area’s percentage share of funds is calculated by dividing each Local Area’s allocation amount by the statewide total.

Step 7

This step calculates the minimum dollar amount of funds each Local Area is to receive based on the hold-harmless provision. This is determined by multiplying the 90 percent relative share percentage determined in Step 5, by the statewide allotment. The resulting figure establishes the minimum amount of funds that each Local Area will receive under the formula allocation process.

Step 8

Local Areas with a relative share percentage that is less than the 90 percent minimum hold-harmless percentage are identified by comparing the percentage share determined in Step 6, to the 90 percent minimum hold-harmless percentage determined in Step 5.

The funds needed to bring the Local Areas with percentages below the mandated minimum into compliance comes from the Local Areas who have a percentage share of funds which is above the mandated minimum percentage. Funds are subtracted, on a prorated basis, from the Local Areas that exceed the minimum percentage to bring the other Local Areas that are below the minimum percentage into compliance with the hold-harmless provision.

The Local Area allocations and relative share percentages are then recalculated to determine whether each Local Area received the 90 percent minimum allocation percentage.

This step is repeated as many times as is necessary to comply with the minimum allocation percentage provision. Compliance with this provision completes the formula allocation process.

Additionally, Temporary Assistance for Needy Families (TANF) Youth Development Funding (YDF) is allocated to LWDAs by the PA Department of Labor & Industry (L&I). L&I currently utilizes TANF caseload numbers (broken down by county), provided each year by the PA Department of Human Services (DHS), to determine the percentage of TANF YDF that will distributed to each local area.