Adult, Dislocated Worker, and Youth Activities

Pursuant to 20 CFR 678.737, for One-Stop partner(s) in each local area that has not reached agreement under the Local Funding Mechanism (LFM), the local board must report to the Governor and relative state agencies an impasse or failure to reach consensus by March 31 of each program year.  Once notified, the Governor must administer infrastructure funding through the State Funding Mechanism (SFM) as described in 20 CFR 678.730 thru 678.738.  The Governor must use the cost allocation methodology, as determined under 20 CFR 678.736, to determine each partner’s relative benefit and proportionate share of the infrastructure costs under the SFM, subject to the application of caps. 

Once a local board has informed the Governor that no consensus has been reached, the local board must provide the Governor with local negotiation materials, in accordance with 20 CFR 678.735(a).  The Governor must determine the One-Stop center budget by either accepting a budget previously agreed upon by partner programs in local negotiations or creating a budget for the One-Stop center using the Governor’s Workforce Development State Board formula described in 20 CFR 678.745.  The Governor will then establish a cost allocation methodology and determine each One-Stop partner’s proportionate shares of infrastructure costs.  

The state emphasizes the importance of local One-Stop partners, local boards, and Chief Elected Officials reaching consensus on infrastructure funding during local negotiations, thus avoiding the necessity of utilizing the SFM. 

If a local area has not reached agreement regarding the infrastructure budget for the One-Stop centers in the local area (or if the Governor determines that the agreed upon budget does not adequately meet the needs of the local area or does not reasonably work within the confines of the local area’s resources in accordance with the Governor’s One-Stop budget guidance) the Governor must use the formula developed by the State Workforce Development Board (WDB) based on at least the factors required under 20 CFR 678.745.

 Under the SFM, the Governor is required to calculate the statewide funding caps and the amount available for local areas that have not reached consensus and to determine the partners’ contributions for infrastructure costs using the process outlined in 20 CFR 678.730 thru 678.738.  The Governor calculates the statewide caps by considering total funding for a partner’s program against the statutory caps specified in the Workforce Innovation and Opportunity Act (WIOA) for infrastructure costs.  The SFM is only applicable to required One-Stop partners and cannot be triggered by additional One-Stop partners not reaching consensus.

 The Governor’s Workforce Development State Board has developed an allocation formula to allocate funds to local areas to support infrastructure costs for local One-Stop centers for all local areas that may not reach an agreement via the LFM.  Pursuant to 20 CFR 678.745, the allocation formula has taken into account the number of One-Stop centers in a local area, the population served by such centers, the services provided by such centers, and other factors relating to the performance of such centers that the Governor’s Workforce Development State Board determines are appropriate and that are consistent with federal cost principles.

 Local areas must provide to the Governor appropriate and relevant materials and documents used in the negotiations under the LFM, as outlined in 20 CFR 678.735, including but not limited to: 

• The local WIOA Plan.
   
• Cost allocation method or methods proposed by the partners to be used in determining proportionate share.
   
• The proposed amounts or budget to fund infrastructure costs and the amount of total partner funds included.
   
• The type of funds or non-cash contributions.
   
• Proposed or agreed upon One-Stop center budgets.
   
• Any partially agreed upon, proposed, or draft Infrastructure Funding Agreements (IFAs) and Memorandums of Understanding (MOUs). 

The Governor will establish each One-Stop center’s infrastructure cost pool based on the information submitted by the local WDBs.  Costs will include items such as lease costs, facility maintenance, insurances, security and cleaning services, utilities, technological costs, etc.   

The Governor will then establish the allocation methodology, likely Full-Time Equivalents, proportionate use and relative benefit, or other methodology which is deemed appropriate based on the information submitted by the local WDBs and allocate the infrastructure costs to individual partners based on this methodology.  The Governor will take into account statutory requirements for each partner program, the partner program’s ability to fulfill such requirements, and all other applicable legal requirements.  Once the partner program’s proportionate share of infrastructure costs is determined for all One-Stop centers in the areas which were subject to the SFM, the Governor will then calculate the statewide caps on the amounts that partner programs may be required to contribute toward infrastructure funding.  The Governor will ensure that the aggregate total of the infrastructure contributions of all partner programs in all local areas under the SFM do not exceed the cap for that particular program.  Once the contributions for each local One-Stop partner are determined, the Governor will direct the One-Stop partners in each local area under the SFM to pay the amount which the Governor determines is the partner’s proportionate share. 

In the SFM, infrastructure costs under the WIOA programs will be as described and consistent with 20 CFR 678.740. 

A One-Stop partner who wishes to appeal the Governor’s determination regarding their portion of funds to be provided for One-Stop infrastructure costs must submit an appeal to the State consistent with the current Department of Labor and Economic Opportunity’s (LEO’s) Grievance and Complaint Policy and WIOA Section 121(h)(2)(E) to ensure prompt resolution of the appeal in order to allow prompt allocation of funds, consistent with the requirements of WIOA Section 182(e).  The Department of Labor and Economic Opportunity Grievance and Complaint Policy is located (PI 11-37, Change 2) with the other policies on the LEO Website.