1. “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.
Steven Spillan, Esq.

2. WIOA

3. 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
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4. Important Dates Many provisions delayed until 7/1/17
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5. 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
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6. Infrastructure Costs What are they?
Nonpersonnel costs that are necessary for general operation
Section 121(h)(4)
What went wrong with WIA?
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7. Infrastructure Costs Local option – Section 121(h)(1)(A)
Methods agreed upon by Local Board, chief elected officials, and one-stop partners
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8. 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
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9. 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
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10. 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
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11. How do State “Pass-through” Agencies navigate this morass
How do State “Pass-through” Agencies navigate this morass? With difficulty
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12. Step one: Local funding Mechanism
Section (a) “may” include Perkins local admin
Allowable (UGG)
Proportionate use (UGG)
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13. Step two: What if no proportionate use?
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14. Step three: No consensus on local option triggers state option
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15. Step four:
Section (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
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16. Step five: How does Governor cap the amount at 1.5%
State must aggregate admin contributions under local option (not easy)
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17. But the Rules on Admin Costs Have Changed BIG TIME!!!!
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18. Admin and clerical salaries must be recovered as indirect unless adequately documented and approved in budget
2 CFR (c)
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19. If restricted indirect rate exceeds 5%, no recovery of excess amount.
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20. 34 CFR (b)
Pass-through negotiates rates – North Carolina was provided erroneous advice
COFAR  State cannot force subs to charge admin as direct
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21. DOL/ETA & OCTAE  One Stop partners MUST support career services
(Career services = Intensive Services under WIA)
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22. Brustein & Manasevit, PLLC © 2017. All rights reserved.

23. 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.
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