WIOA Title I-A & I-B Policy & Procedure Manual Ch. 4) Fiscal Management
4.17 Expenditure Requirements for the Youth Program
4.17.1 Expenditure Requirement for Out-of-School Youth
Effective date: January 1, 2019
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:
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.