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2 Year Modification

Plan: Arizona PYs 2022-2023 (Mod)
Unified Plan U

Section: WIOA State Plan Common Elements

Narrative: III. b. 5. A. i.

Published
Located in:
  • III. Operational Planning Elements

    The Unified or Combined State Plan must include an Operational Planning Elements section that supports the State’s strategy and the system-wide vision described in Section II(c) above.  Unless otherwise noted, all Operational Planning Elements apply to Combined State Plan partner programs included in the plan as well as to core programs.  This section must include—

    • b. State Operating Systems and Policies

      The Unified or Combined State Plan must include a description of the State operating systems and policies that will support the implementation of the State strategy described in section II Strategic Elements.  This includes—

      • 5. Distribution of Funds for Core Programs

        Describe the methods and factors the State will use in distributing funds under the core programs in accordance with the provisions authorizing such distributions.  

        • A. For Title I Programs

          Provide a description of the written policies that establish the State's methods and factors used to distribute funds to local areas for—

III. b. 5. A. i. Youth Activities in Accordance with WIOA Section 128(b)(2) or (b)(3)

View corresponding narrative from PYs 2020-2023

Current Narrative:

Arizona utilizes WIOA Title I funds in accordance with WIOA and the relevant Training & Employment Guidance Letter (TEGL) issued annually by DOL for the State allotment for WIOA programs’ allowable uses and funding limits for the PY.  ADES annually amends its Intergovernmental Agreements to pass through Title I funds to the LWDAs.

WIOA permits the State to hold up to 15 percent of each program’s funding, prior to allocation to the LWDAs. Of the 15 percent, the State can use up to five percent for allowable administrative costs; the remaining ten percent is set aside for required and other allowable statewide activities. 

  • For Youth and Adult Programs, 85 percent of the funding is directly allocated to the LWDAs; and
  • For the Dislocated Worker Program, 60 percent is directly allocated to the LWDAs, and 25 percent is held for the RE Program.

Arizona generally employs a discretionary formula to allocate each program’s funds to the LWDAs. Each year, the Council reviews five funding options for the Youth and Adult Programs and six options for the Dislocated Worker Program. Under each option for Youth and Adult, 70 percent of the allocation is based on a standard formula through U.S. DOL. The remaining 30 percent is based on other data factors allowed under Federal regulation. For Youth and Adult programs, the 30 percent data factors ratios vary by option but are the same ratios year after year.

  • Option 1: 100 percent of the 30 percent is based on Economically Disadvantaged Youth/Adults respectively.
  • Option 2: 100 percent of the 30 percent is based on Areas of Substantial Unemployment.
  • Option 3: 50 percent of the 30 percent is based on the Economically Disadvantaged and the remaining 50 percent is based on Area of Substantial Unemployment.
  • Option 4: 75 percent of the 30 percent is based on the Economically Disadvantaged and the remaining 25 percent is based on Area of Substantial Unemployment.
  • Option 5: 25 percent of the 30 percent is based on the Economically Disadvantaged and the remaining 75 percent is based on Area of Substantial Unemployment.

For both the Youth and the Adult allocations, a hold harmless provision is applied, which states that a LWDA cannot receive less than 90 percent of its relative share based on the average relative share of the total LWDA’s allocation from the previous two funding years. Arizona takes an average of the last two years’ funding to level out sizable fluctuations that can happen in funding from year to year. For PY 2021 Youth allocation to Local Areas, 100 percent of the funds was allocated using the standard formula.

In addition, the Workforce Arizona Council is creating an Allocations Policy which addresses the application of discretionary formula and data factors. The State anticipates the policy will be approved by the Council at its June 7, 2022 meeting.