Narrative: a. 1. D.

Local funding agreements must satisfy the requirements of section 121(h)(2)(E) of WIOA. The State has provided guidance to the LWDAs which contains an appeals process for the allocation of One-Stop Center infrastructure funding. The guidance includes the State infrastructure funding mechanism to be implemented in the event that a LWDA fails to reach consensus on funding methods.

State Infrastructure Funding Mechanism

One of the hallmarks of WIOA is an increased emphasis on Local WDBs as conveners who are responsible for the MOU negotiation process. Initiating negotiations via a Local Funding Mechanism (LFM) allows for decision making to be kept at the local level.  LWC’s goal is to provide the support and guidance necessary to help all Local Areas reach agreement under the LFM rather than under the State Funding Mechanism (SFM.) Local WDBs are urged to seek guidance and support from the state throughout the negotiation process to help prevent the triggering of the SFM. However, if a Local WDB is unable to complete an IFA with all its AJC partners, then the SFM will be triggered and LWC, with the Governor’s approval, must then determine the required contributions of each AJC partner.

If a Local WDB does not believe they will be able to come to an agreement regarding joint infrastructure costs with any of their AJC partners by (May 1st each year thereafter), they must notify LWC in writing immediately.

All AJCs partner programs and/or the Local Board may appeal the SFM decision. Appeals must include justification by the program and/or Local Board and be based on believed noncompliance with WIOA Section 121(h)(3) that outlines the Governor’s funding allocations.

Appeals Process

Upon receipt of the specific terms of a State Funding Mechanism, any Local WDB or one-stop required partner may appeal for cause, within 30 calendar days, in writing, LWC’s determination regarding the portion of funds (or non-cash contributions) it is to provide. To be officially received, an appeal must fully contain and evidence the following:

• Addressed to the attention of the Secretary of the Louisiana Workforce
  Commission or his/her designee.
• An introduction identifying the appellant and designating the letter as a formal appeal.
• Full citations from WIOA or the WIOA Final Rules in Title 29 or Title 34 of the Code of Federal Regulations (CFR) that support the appeal.
   
• Identify the basis for the appeal. WIOA stipulates that a State Funding Mechanism (SFM) allocation determination may be appealed only if the determination is inconsistent with the requirements of WIOA sec. 121(h)(2)(E). The Final Rule at 20 CFR 678.750 further limits admissible grounds for an appeal to three possibilities. The petitioner must make a case that the State’s determination is inconsistent with:
  o the proportionate-share requirements in 20 CFR 678.737, or
  o the cost-contribution limitations in 20 CFR 678.730(c), or
  o the cost-contribution caps in 20 CFR 678.738
• The letter must be signed by signatory authority (electronic signature is acceptable) and dated.
   

LWC will acknowledge the appeal and return a determination under the designated authority of the Governor no later than 60 days upon the date receipt of appeal. Until the appeals process is completed, the appellant will remain liable for its contribution as originally determined in the SFM. If a one-stop partner’s appeal to LWC using the process described in 20 CFR 678.750 is successful and results in a change to the one-stop partner’s infrastructure-cost contributions, then the Local Area’s MOU must be updated to reflect the final one-stop partner infrastructure cost contributions.