“Are You Ready for WIOA?” Education: The New Federalism! Spring Forum 2017 May 10-12, 2017 “Are You Ready for WIOA?” Michael L. Brustein, Esq. mbrustein@bruman.com Steven Spillan, Esq. sspillan@bruman.com www.bruman.com

WIOA

Important Dates Signed into Law July 2014 Effective Date: July 1, 2015 – gap year Unified/Combined State Plans Due: April 1, 2016 April 16, 2015: Notice of Proposed Rule Making (NPRM) 1/22/16: Final regs must be published Final Regs Posted August 19, 2016 New Accountability Provisions Effective: July 1, 2016 Brustein & Manasevit, PLLC © 2017. All rights reserved.

Important Dates Many provisions delayed until 7/1/17 Brustein & Manasevit, PLLC © 2017. All rights reserved.

Memorandum of Understanding Section 212(c) Local boards negotiate MOU with every one- stop partner. MOUs are reviewed every three years. MOUs describe: Services provided Referral methods Funding of shared services and infrastructure costs Brustein & Manasevit, PLLC © 2017. All rights reserved.

Infrastructure Costs What are they? Nonpersonnel costs that are necessary for general operation Section 121(h)(4) What went wrong with WIA? Brustein & Manasevit, PLLC © 2017. All rights reserved.

Infrastructure Costs Local option – Section 121(h)(1)(A) Methods agreed upon by Local Board, chief elected officials, and one-stop partners Brustein & Manasevit, PLLC © 2017. All rights reserved.

Infrastructure Costs State option – Section 121(h)(2) Automatic if no agreement under local option Governor will determine amount (no more than 3% for Workforce and Wagner-Peyser programs and 1.5% of total grant amount for most other partner programs) from each partner program Brustein & Manasevit, PLLC © 2017. All rights reserved.

State Option: Funding Sources WIOA Title I Programs: May be paid using program funds, administrative funds, or both. Other One-Stop Partner Programs: Limited to the program’s administrative funds, as appropriate. Adult Education Program: Must be paid from the funds that are available for local administration; and May be paid from funds made available by the State or non-federal resources that are cash, in-kind, or third-party contributions. Perkins: May be paid from funds available for local administration of postsecondary level programs and activities to eligible recipients or consortia of eligible recipients; and Brustein & Manasevit, PLLC © 2017. All rights reserved.

The Federal Agency Trifecta: UGG/EDGAR  New Rules on Admin/Indirect ED/OCFO  Erroneous Guidance on Pass Through Indirect Responsibility DOL/ETA  180° turn on Infrastructure Cost Calculation Brustein & Manasevit, PLLC © 2017. All rights reserved.

How do State “Pass-through” Agencies navigate this morass How do State “Pass-through” Agencies navigate this morass? With difficulty Brustein & Manasevit, PLLC © 2017. All rights reserved.

Step one: Local funding Mechanism Section 361.720 (a) “may” include Perkins local admin Allowable (UGG) Proportionate use (UGG) Brustein & Manasevit, PLLC © 2017. All rights reserved.

Step two: What if no proportionate use? Brustein & Manasevit, PLLC © 2017. All rights reserved.

Step three: No consensus on local option triggers state option Brustein & Manasevit, PLLC © 2017. All rights reserved.

Step four: Section 361.738 (c)(2) limits Governor authority for Infrastructure costs to 1.5% of GAN Infrastructure contribution must come from Section 132 p/s funds available to p/s institutions for admin Brustein & Manasevit, PLLC © 2017. All rights reserved.

Step five: How does Governor cap the amount at 1.5% State must aggregate admin contributions under local option (not easy) Brustein & Manasevit, PLLC © 2017. All rights reserved.

But the Rules on Admin Costs Have Changed BIG TIME!!!! Brustein & Manasevit, PLLC © 2017. All rights reserved.

Admin and clerical salaries must be recovered as indirect unless adequately documented and approved in budget 2 CFR 200.413 (c) Brustein & Manasevit, PLLC © 2017. All rights reserved.

If restricted indirect rate exceeds 5%, no recovery of excess amount. Brustein & Manasevit, PLLC © 2017. All rights reserved.

34 CFR 76.561 (b) Pass-through negotiates rates – North Carolina was provided erroneous advice COFAR  State cannot force subs to charge admin as direct Brustein & Manasevit, PLLC © 2017. All rights reserved.

DOL/ETA & OCTAE  One Stop partners MUST support career services 678.430 (Career services = Intensive Services under WIA) Brustein & Manasevit, PLLC © 2017. All rights reserved.

Brustein & Manasevit, PLLC © 2017. All rights reserved.

Legal Disclaimer This presentation is intended solely to provide general information and does not constitute legal advice or a legal service.  This presentation does not create a client-lawyer relationship with Brustein & Manasevit, PLLC and, therefore, carries none of the protections under the D.C. Rules of Professional Conduct.  Attendance at this presentation, a later review of any printed or electronic materials, or any follow-up questions or communications arising out of this presentation with any attorney at Brustein & Manasevit, PLLC does not create an attorney- client relationship with Brustein & Manasevit, PLLC.  You should not take any action based upon any information in this presentation without first consulting legal counsel familiar with your particular circumstances. Brustein & Manasevit, PLLC © 2017. All rights reserved.