§3162 State Allotments

Summary

When the annual appropriation named in the law is more than $925,000,000, the Secretary must set aside 4 percent of the extra money for youth workforce help for migrant and seasonal farmworkers. The rest is used for state allotments and grants. From that remainder the Secretary must also reserve up to 1½ percent for Native American youth activities and up to ¼ of 1 percent for outlying areas. Grants to outlying areas are awarded competitively and work through the Pacific Region Educational Laboratory in Honolulu, which may get up to 5 percent of those grant funds for its administrative costs. Consolidation rules that apply elsewhere do not apply to these outlying-area funds, including funds for Palau. After those reservations, the money left for States is split into three equal parts (33⅓ percent each) and given to States based on: (1) the number of unemployed people in areas of substantial unemployment, (2) the excess number of unemployed people, and (3) the number of disadvantaged youth. For certain local areas the count for youth uses the higher of two youth measures. The law also sets floors and caps so no State’s share falls below specified minimums (including amounts tied to 90 percent of the State’s prior allotment percentage or 100 percent of the FY2014 allotments under the older law) and no State’s share rises above 130 percent of the prior year’s allotment percentage. If the remainder does not exceed $1,000,000,000, an older calculation method applies. Key terms in one line each: “allotment percentage” = the slice of the remainder a State gets; “area of substantial unemployment” = an area with a 12‑month average unemployment rate of at least 6.5 percent; “disadvantaged youth” = people age 16–21 with very low family income (measured against the poverty line or 70 percent of a lower living standard); “excess number” = unemployed above 4.5 percent of the labor force (statewide or in high‑unemployment areas); “low‑income level” = $7,000 for 1969, updated later by the Consumer Price Index and rounded to the nearest $1,000. College students and members of the Armed Forces can be excluded when counting disadvantaged youth. The Secretary must reallot funds that States left more than 20 percent unspent at the end of the prior program year. Those reallotted amounts go to States that do not have excess unspent funds, distributed in proportion to their allotments. Governors must set uniform rules so local areas obligate funds on time and must set fair procedures if the State must turn money over for reallotment.