Workforce funds likely cut for rest of 2013.

March 26, 2013

UPDATE: This week, the Department of Labor released finalized (PY) 2013 allotments for WIA Adult, Dislocated Worker and Youth Programs, the Wagner-Peyser Employment Services, and Workforce Information Grants to States. 

Workforce funding will be cut for the remainder of the fiscal year according to the Training and Employment Notice (TEN) put out last week by the Department of Labor Employment and Training Administration (ETA). The notice estimates the program year (PY) 2013 allotments for the Workforce Investment Act (WIA) Adult, Dislocated Worker, and Youth programs, the Wagner-Peyser Employment Services (ES), and Workforce Information Grants to States. It is the most accurate account of what states can expect for the remainder of the fiscal year should sequestration remain in place.

ETA’s estimates are based on the funding allocated to those programs for the first half of fiscal year (FY) 2013 under continuing resolution (CR), which expires March 27. Last week, Congress passed a new CR to continue to fund the government through the end of the fiscal year. As was the case with the previous CR, funding for workforce will remain relatively the same from FY 2012. 

The estimates also reflect the reductions made as a result of sequestration, which will reduce overall funding in FY 2013 from $1.047 trillion to $984 billion. As a result, funding for federal employment and training programs continue to face significant cuts during the remainder of 2013. It is expected that agencies will not rescind funds that will be disbursed, but will rather focus on upcoming grants and allocations. This may mean that for certain advance appropriated programs—such as WIA Adult and Dislocated Worker—the FY 2013 sequester will come entirely from the July 1 (PY 2013) allocation. The cuts to WIA Youth, which is not advance appropriated, will come out of the April allocation.