Employment and Training Administration
Washington, D. C. 20210






September 10, 1996





for Regional Management
SUBJECT : PY 1996 Funding Strategy for The One-Stop System


  1. Purpose. To announce the Employment and Training Administration's (ETA) Program Year (PY) 1996 funding strategy for the One-Stop Career Center System.

  2. Background. In fiscal year (FY) 1994, ETA began to fulfill its commitment to improve the quality and delivery of services to its ultimate customers -- American workers and their employers. With an appropriation of $50 million, the agency funded grants in six States for implementation of One-Stop Career Center systems and grants to fund planning and development in 19 other States. ETA also awarded grants to local communities for local One-Stop Career Center systems to serve as "Learning Laboratories" for other States and local communities in developing One-Stop Career Center systems.

    ETA also invested funds to begin building America's Labor Market Information System (ALMIS) in every State. (These funds are available to every State through a separate allocation process regardless of whether the State pursues One-Stop grant funding.) Finally, ETA distributed a substantial amount of Labor Market Information (LMI) funds to those States that received One-Stop implementation grants in the first and second rounds of funding to support their specific LMI needs and upgrading of technology.

    In FY 1995, Congress appropriated $100 million to continue the national roll-out of the One-Stop Career Center System. With these funds, the Department supported the second year of funding for the first 6 implementation States; funded an additional 10 States to implement a Statewide One-Stop Career Center System; supported enhancements to the quality and methods of delivery of labor market information in all States; and funded the remaining States for planning and development of a One-Stop Career Center System.

  3. PY 1996 Strategy. For FY 1996, Congress appropriated $110 million to continue the One-Stop Career Center System. This resource level is 12 percent below the Administration's revised request of $125 million. Of the appropriated amount, $45 million will be used to continue second or third year funding of the 16 Implementation States. Another $27 million will be used to award 7 to 12 new implementation grants to States. A total of $4 million has been reserved to continue planning activities in those States which do not receive Implementation Grants in 1996. ETA has tentatively identified $1 million for Local Learning Laboratory support and other model local system building initiatives. America's Labor Market Information System will receive funding of $33 million.

    The detailed modification and refunding procedures for all Implementation, Planning and Development, and Local Learning Laboratory grants have been transmitted to ETA's Regional Offices. The Regional Office Grant Officer's Technical Representative (GOTR) will conduct a programmatic and financial review of grantee's performance against the grant's statement of work and timelines to assure the appropriate refunding decision is reached.

    1. All Current Implementation States

      The PY 1996 starting "funding mark" for the sixteen Round I and II States is based on their fair share of the PY 1996 appropriation -- which represents a 12 percent reduction from the Administration's PY 1996 request. ETA provided a "one-time" supplement of Labor Market Information funding for the Round I and Round II grantees. Subsequent "funding marks" deducted this supplement. The starting "funding marks" are shown in Attachment 1.

      After reviewing the grantee's performance and expenditures, the GOTR will recommend a Year 2 or Year 3 funding level. Each current Implementation State is expected to estimate its carry-in at the time it submits its refunding request.

    2. Round I Implementation States

      In addition, the Round I Implementation States entering their third year of funding will be allowed to carry-in 15 percent of any unobligated grant resources from Year 1 and/or Year 2. The Talent Bank will be exempted from this calculation.

      (This policy will also be in effect for the Round II States as they enter their third year in PY 1997.) In carrying out this funding approach, ETA will not deobligate Year 1 or Year 2 funds; rather it will reduce the new obligational authority (NOA) by 85 percent of any carry-in. Note: PY 1994 funds expire on June 30, 1997; the Round I State grantee must ensure that all Year 1 grant funds are expended by that time.

    3. Planning and Development Grant States.

      ETA will continue funding the current Planning and Development (P&D) grants through September 1997 to maintain each State's system-building activities. The mark for each State is shown in Attachment 2.

    4. Local Learning Laboratories.

      ETA will review each grantee's program and financial performance against the grant's statement of work and timelines to assure an appropriate refunding decision. The criteria will also recognize the grantee's relative success in serving as a "test site" and its continuing ability to attract visits from employment and training professionals from across the country.

    5. America's Labor Market Information System (ALMIS)

      During PY 1996, ETA will continue to invest in the research, development and implementation of products, services, and applications which will benefit One-Stop service delivery.

      From the $33 million reserved for ALMIS, a total of $16 million is earmarked for core products.

      • A subtotal of $10.375 million will be distributed by formula to the 50 States, the District of Columbia, Puerto Rico, Guam, and the Virgin Islands. States will be expected to channel these resources into four priority areas -- capacity-building for LMI professionals and customers; implementation of the Occupational and Labor Market Information Database (OLMID); expanded dissemination of LMI including the provision of on-line access; and, development of State and local-area industry and occupational employment projections.

      • A subtotal of $5.625 million will be dedicated to the expansion of the Occupational Employment Statistics survey (OES). With this expansion, the OES will deliver wage information for Metropolitan Statistical Areas and up to four substate areas. These funds will also be distributed by formula to the States.

      The remaining $17 million has been earmarked to support the national wage record database and related consumer products, underwrite the continuing expansion of America's Job Bank and America's Talent Bank, support the "common language" and "common systems" efforts including the Occupational Information Network (O*NET), and maintain a high level of Federal investment in the LMI research and development activities of our State consortia partners. These resources will also help support the further development of consumer reports and the purchase of an employer database. The cooperative efforts between and among ETA, Bureau of Labor Statistics and the States will result in a wide range of quality services and products for our job seeker and employer customers in PY 1996.

  4. Inquiries. If you have further questions about the PY 1996 One-Stop funding strategy and the level of grant resources for all State and local grantees, please contact your Regional Office One-Stop and LMI representatives.

  5. Attachments.