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Previous Policy - 4.17

4.17.1 Expenditure Requirement for Out-of-School Youth

Effective date: January 1, 2019 to September 30, 2024

Local WDBs must expend at least 75 percent of their annual WIOA Youth formula allocation on youth workforce investment activities for out-of-school youth (OSY) during the two-year grant period.¹ Local WDB administrative expenses are not included in the 75 percent OSY minimum expenditure calculation; therefore, the local WDB's OSY expenditure rate is calculated after subtracting funds spent on administrative costs.²

The 75 percent OSY expenditure requirement also applies to statewide youth activities.³ Only statewide funds spent on direct services to youth are subject to the OSY expenditure requirement.⁴ Demonstration projects related to meeting the education and employment needs of eligible youth are an allowable statewide activity and youth participating in such demonstration projects would be considered receiving direct services from statewide funds.⁵

Costs associated with the following statewide activities are not subject to the OSY expenditure requirement:

state administrative activities⁶
self-service activities (such as job searches, career exploration, or use of career center resources)⁷
providing assistance to local areas on redesignation of local areas and/or regional planning ⁸
providing additional assistance to local areas that have high concentrations of eligible youth⁹
monitoring and oversight activities¹⁰
providing technical assistance¹¹
conducting evaluations for accountability measures and program effectiveness¹²
disseminating a list of eligible providers¹³
operating a fiscal and management accountability information system¹⁴

The OSY expenditure rate for statewide funds is calculated after subtracting funds that are not spent on direct services to youth.¹⁵

Note: States and local areas may choose to spend up to 100 percent of their WIOA youth funds on OSY.¹⁶

¹ WIOA Sec. 129(a)(4)(A); 20 CFR §681.410
²TEGL 23-14, p. 4
³20 CFR §681.410
⁴20 CFR §681.410(a)
⁵TEGL 21-16, p. 9
⁶20 CFR §681.410(a); TEGL 23-14, p. 3
⁷TEGL 21-16, p. 9
⁸WIOA Sec. 129(b)(1) and 106(b)(6) and 106(c)(2); TEGL 21-16, p. 9
⁹WIOA Sec. 129(b)(1); TEGL 21-16, p. 9; DOL explains in 81 FR 56190 that the specific additional assistance needed is likely to vary from local area to local area. DOL defines it as assistance that "might be provided in the areas of program design, partnering, resource sharing, and other areas." DOL does not specifically address the 75 percent OSY expenditure requirement as it relates to direct services provided through additional assistance. DWD-DET will consider direct services provided through additional assistance to local areas with high concentrations of eligible youth as subject to the expenditure requirement.
¹⁰WIOA Sec. 129(b)(1); 20 CFR §681.410(a)
¹¹20 CFR §681.410(a)
¹²WIOA Sec. 129(b)(1); TEGL 21-16, p. 9
¹³WIOA Sec. 129(b)(1); TEGL 21-16, p. 9
¹⁴WIOA Sec. 129(b)(1); TEGL 21-16, p. 9
¹⁵TEGL 23-14, p. 4
¹⁶TEGL 23-14, p. 3