Will the Employment and Training Administration (ETA) implement the JTPA recapture and reallotment provisions during PYs 1999 and 2000?

No. This issue is addressed in 20 CFR 667.150(a). ETA has determined that it would not make sense to implement the recapture and reallotment provisions of JTPA during PYs 1999 and 2000. ETA has provided which indicate that States may reserve up to two percent (2%) of PY 98 and PY 99 JTPA funds for transition planning activities and are to reserve an adequate amount of PY 98 and PY 99 funds to pay for the costs of JTPA closeout.

Because reserving these amounts for transition planning and for closeout could result in a failure to obligate 85% of PY 99 JTPA Title IIA and IIC funds and a failure to expend 80% of PY 99 Title III funds or to fully expend PY 98 Title III funds in the current year, ETA did not conduct any recapture or reallotment in the fall of 1999 and will not implement the applicable recapture provisions which would otherwise be expected to take place during the fall of 2000. Any PY 98 and PY 99 funds that are not used for program operation or for transition planning during the current year as well as any funds that are not needed for JTPA closeout may be carried forward . There is no limit on the amount that may be carried forward. Once the JTPA funds have been transferred, the WIA rules and regulations apply. However, the funds will still be separately tracked and reported by year of appropriation.

Due to the special circumstances resulting from closeout and transition described above, ETA expects that States will follow its lead and not implement any recapture or reallocation of local area funds for these periods.