To comply with WIA requirements and eliminate the State's risk of losing funds, EDD should ensure that it awards rapid-response funding for additional assistance only to local boards or community-based organizations that demonstrate that their local areas experience natural disasters, mass layoffs, plant closings, or other dislocation events when such events substantially increase the number of unemployed individuals.
The EDD and the State Board have completed work on modifying the policy for the awarding of WIA Rapid Response funds for Additional Assistance Projects. Specifically, the State revised the policy to define other events that qualify as those events that have precipitated substantial increases in the number of unemployed individuals. The policy revision was presented in Workforce Services Directive WSD 13-2 (Enclosure D), Dislocated Worker Additional Assistance Projects, which was released on August 14, 2013. Workforce Services Directive WIAD05-18, Dislocated Worker 25 Percent Funding Policy, is also being revised pursuant to the new definition regarding other events which precipitate substantial increases in the number of unemployed individuals.
EDD has now defined "other events" broadly and in a way that appears to be consistent with the intent of federal law. Although federal regulations do not define "other events," EDD has given that phrase a meaning that seems to further the intent of the law.
EDD stated that it worked with the state board to revise its policy for awarding additional assistance grants to local workforce investment boards. EDD also stated that the new policy clarifies the operative federal definition of what constitutes "other events" that precipitate substantial increases in the number of unemployed individuals. Further, EDD stated that the state board approved the revised policy at its February 13, 2013 board meeting and it also consulted with Labor to ensure the policy complies with WIA statutes and regulations. Finally, EDD stated that the revised policy will be included in a new WIA directive that will reference all of the WIA 25 percent additional assistance guidelines that it currently uses.
EDD stated that it convened preliminary meetings with the state board to ensure that state policy is consistent with federal rules and to refine its application procedures to ensure that it awards additional assistance funding only to local boards or community-based organizations for local areas that experience natural disasters, mass layoffs, plant closings, or other dislocation events when such events substantially increase the number of unemployed individuals. EDD also stated that work on the policy has been delayed pending approval by Labor of the integrated strategic workforce development plan. (See 2013-406, p. 149)
Agency responses received after June 2013 are posted verbatim.