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MEMO: AP 02-07

Last Updated: June 25, 2018

DATE: May 24, 2002

TO: WIB Directors; WIB Chairpersons; Grant Recipients

FROM: Lorna Joseph, Director of Program Support

SUBJECT: Rescission of PY 2001 WIA Dislocated Worker Funds

America's Workforce Network

Background: Congress passed and enacted a rescission of almost $178 million from the WIA Title I dislocated worker program for PY 2001 last summer. Each state’s rescission was to be based on each state’s share of unexpended balances as of June 30, 2001. Based upon that action, the state developed a methodology for implementing the rescissions.

Later correspondence from the U.S. Department of Labor (TEGL 3-01 Change 2) indicated that the rescission would take effect after additional time for review and analysis of expenditure reports on the dislocated worker program. With the end of PY 2001 approaching, the U.S. Department of Labor was concerned about meeting the requirements of the legislation (PL 107-20) providing for the rescission on or before June 28, 2002.

Based upon this concern, they have provided states with their rescission amounts. While the Department of Labor is implementing this rescission, they have also informed us that the President has requested a supplemental appropriation to restore the rescission of formula grant funds.

Policy: All workforce investment areas affected by the rescission should have been notified of the reduction to their PY 2001 funds through a revised NFA. The reductions are included as Attachment 1 to this issuance.

We will not at this time be modifying your grants, as we are hopeful that the President’s supplemental request will restore these funds. It is possible that modifications may be necessary dependent upon future actions by the U.S. Department of Labor or Congress.

Any questions can be directed to Stephen Litke at (860) 263-6599 or Carl Buzzelli at (860) 263-6012.


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