Attachment I

U. S. Department of Labor
Employment and Training Administration

Formula Descriptions

Formula:

1/3: State relative share of total unemployed in areas of substantial unemployment (ASU) (12 months ending 6/30)

1/3: State relative share of excess unemployed (12 months ending 6/30)

1/3: State relative share of economically disadvantaged youth (Census 1990)

Minimums:

(a) If total amount available for States is $1 billion or less:

State allotment cannot be less than

(1) 90% of States's relative share of prior year funding

(2) 0.25% of total available funds for States

(b) If total amount available for States exceeds $1 billion:

State allotment cannot be less than

(1) 90% of States's relative share of prior year funding

(2) 1998 allotment amount

(3) 0.3% of first $1 billion plus 0.4% of amount over $1 billion

Maximum:

130% of States's relative share of prior year funding

Adult Activities

Same as Youth Activities, except

(a) Formula uses economically disadvantaged ADULTS instead of YOUTH

(b) Threshold for selecting minimum provisions is $960 million instead of $1 billion

Dislocated Workers

Formula:

1/3: State relative share of total unemployed (12 months ending 9/30)

1/3: State relative share of excess unemployed (12 months ending 9/30)

1/3: State relative share of long-term unemployed (previous published Calendar Year)

Minimum: none

Maximum: none

Employment Service (Wagner-Peyser)

Formula for 97% of funds:

2/3: State relative share of civilian labor force (12 months ending 9/30)

1/3: State relative share of total unemployment (12 months ending 9/30)

Minimums:

(a) 90% of States's relative share of prior year funding

(b) 0.28% of total available funds for States

Maximum:

Distribution of 3% of funds:

(1) States with civilian labor force of 1 million and under the national median civilian labor force density receive an amount which when added to their share of the 97% portion will result in an amount equal to 100% of their relative share of the prior year funding.

(2) Remaining States losing in relative share receive a share of the remaining funds prorated based on the amount needed to achieve 100% of their relative share of prior year funding.

Formula Data Factor Definitions

Youth and Adults Programs

ASU: contiguous areas with unemployment rate of 6.5% or more

Excess unemployed: higher of:

(1) excess unemployed (unemployment in excess of 4.5%) in ASU's; or

(2) excess unemployed (unemployment in excess of 4.5%) in all areas

Economically disadvantaged adults: individuals age 22-72 meeting (or member of family meeting):

OMB poverty level or

or 70% of lower living standard income level (LLSIL).

Economically disadvantaged youth: individuals age 16-21 meeting (or member of family meeting):

OMB poverty level or

or 70% of lower living standard income level (LLSIL).

Dislocated Workers Program

Excess unemployed: unemployment in excess of 4.5%

Long-term unemployed: number unemployed 15 or more weeks

Wagner-Peyser:

Self-explanatory