WIA Incentives and Sanctions Overview

The Workforce Investment Act provides that the Secretary shall award an incentive grant to each State that exceeds the State Negotiated Levels of Performance. In addition, after providing technical assistance if requested, the Secretary may impose sanctions for poor performance by reducing the title I grant by not more than 5%.

�The nature of State negotiated levels of performance - A range of acceptable performance will be established for each State. The top of the range will reflect the negotiation; while the bottom of the range will be set by multiplying the State negotiated level of performance for each measure by 80%.

�Standards for Exceeding performance measures - The determination that the negotiated levels of performance for Title I were exceeded will be based on the State's cumulative achievement for each program area (adults/youth/dislocated worker) AND the customer satisfaction measures. No individual program may have a cumulative average of less than 100%.

�Qualifying for Incentive Grants - In order to promote equity and uniformity, only the Federally required core and customer satisfaction measures will be considered.

�Amount of the Incentive Award - Awards will range from $750,000 to $3,000,000 but may be proportionately reduced when total available funds are insufficient.

�Standard for Failing to Meet the Negotiated Levels - Levels will be established for each separate program, as well as customer satisfaction. The lowest acceptable level (lower limit) will be calculated as 80% of the State negotiated level established. States must attain a cumulative average across all programs AND the customer satisfaction levels of 100% of the lower limit for performance to be determined acceptable.

�Criteria for Monetary Sanctions - For sanctions to be imposed, performance must be unacceptable for two consecutive years in the same program area. The sanction will apply to funding for the next full program year following the year in which data for the second consecutive year became available.

�Amount of Monetary Sanctions - Sanctions will be determined on a case by case basis, and will range from 1% up to a maximum 5% reduction.

�Sanctions for Failure to Submit Annual Performance Progress Reports - States that are more than 45 days late may be sanctioned up to 1% plus up to an additional 1% for each additional 45 day period of lateness.

Draft