TITLE
Recommendation to authorize funding in the amount of $149,452 from the General Fund (GP) to offset the impacts of Federal Sequestration on Workforce Investment Act (WIA) funding allocations and enable the Pacific Gateway to continue the current level of employment and training service for the remainder of FY13; and increase appropriations in the General Fund (GP) in the Human Resources Department (HR) by $149,452. (Citywide)
DISCUSSION
On May 1, 2013, the Department of Labor notified each State of their respective Workforce Investment Act (WIA) funding allocations for Program Year 13-14 (PY 13-14). This notice specified that, due to the impacts of Federal Sequestration, all mandated funding reductions would be applied to Base Funds available for the first quarter in PY 13-14 (July 1, 2013 - September 30, 2013). On May 8, 2013, the Pacific Gateway and other Workforce Investment Boards (WIBs) were notified by the State of their respective PY 13-14 WIA funding allocations for Base Funds, as well as Advance Funds available October 1, 2013- June 30, 2014. Historically, Adult and Dislocated Worker Base Funds account for approximately 30 percent of the total allocation. Due to Sequestration, this amount has been reduced to 6.1 percent of the total allocation. As a result of the reduction in available base funds, Pacific Gateway estimated a funding shortfall of $732,337 for its Adult and Dislocated Worker programs.
Pacific Gateway immediately took necessary steps to avoid further program and fiscal challenges due to Sequestration by reducing $582,885 in expenditures through the end of September 2013. Pacific Gateway could not make any additional expenditure reductions without jeopardizing the ability to meet basic performance requirements and is unable to make up $149,452 of the Sequestration reduction.
The Human Resources Department (HR) has been working with the Financial Management Department (FM) to address this funding shortfall for the First Quarter ...
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