4.17.1 Expenditure Requirement for Out-of-School Youth
Effective date: October 1, 2024
Local WDBs must expend at least 50 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 50 percent OSY minimum expenditure calculation; therefore, the local WDB's OSY expenditure rate is calculated after subtracting funds spent on administrative costs.2
The 50 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
Special Waiver Note: DOL has approved a waiver for Wisconsin that lowers the minimum Youth Program expenditure requirement for OSY to 50 percent. This waiver is effective for Program Years 24 and 25, ending June 30, 2026.
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. DOL approved a waiver request from DWD-DET to allow the statutory 75 percent minimum be lowered to 50 percent.
- 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 50 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
4.17.2 Expenditure Requirement for Youth Work Experience
Effective date: March 1, 2023
Local WDBs must expend at least 20 percent of their annual WIOA Youth formula allocation on paid and unpaid work experiences for in-school youth (ISY) and out-of-school youth (OSY) during the two-year grant period.1 Local WDBs cannot count leveraged resources toward this expenditure requirement.2
Program expenditures that count towards the minimum 20 percent are as follows:
- wages and any fringe benefits paid to youth for participation in a work experience;
- staff costs (including wages and fringe benefits) for identifying and developing work experience opportunities;
- staff costs (including wages and fringe benefits) for managing and evaluating work experiences;
- work experience orientation sessions for participants and/or employers;
- classroom training or other required academic education components for participants that are directly related to the work experience;
- activities to help youth prepare for a work experience;
- incentive payments directly tied to the completion of work experience;3 and
- supportive services that enable youth to participate in training.4
Local WDB administrative expenses are not included in the 20 percent work experience expenditure calculation; therefore, the work experience expenditure rate is calculated after subtracting funds spent on administrative costs.5
4.17.3 Reporting Requirements
Effective date: October 1, 2024
Local WDBs must maintain accounting records to accurately identify and account for the two Youth Program expenditure requirements. Local WDBs must report the costs they count toward the 50 percent OSY and 20 percent youth work experience expenditure requirements monthly in the Contract Management and Expenditure Tracking (COMET) System. Participants do not have to complete work experience activities for the associated costs to count towards the 20 percent work experience expenditure requirement. These costs must be reported in COMET at the time they are incurred.
Special Waiver Note: DOL has approved a waiver for Wisconsin that lowers the minimum Youth Program expenditure requirement for OSY to 50 percent. This waiver is effective for Program Years 24 and 25, ending June 30, 2026.
To evaluate local WDB compliance with the expenditure requirements, DWD-DET will:
- Subtract administrative costs from the local WDB's total WIOA Youth annual formula allocation for a given year to identify the denominator.
- Use the amounts reported in COMET for the OSY and work experience expenditure requirements to identify the numerators.
- Divide the numerator by the denominator for both calculations.
