Previous Policy 11.8 Incentives, Sactions and Administrative Actions

11.8 Incentives, Sanctions and Administrative Actions

Effective date: August 7, 2017

Sanctions for State Performance

If a state fails to meet the state adjusted levels of performance relating to the indicators of performance for a program in any program year, the Secretary of Labor shall provide technical assistance, including assistance in the development of a performance improvement plan.

A 5% reduction of the maximum available amount of the Governor's Reserve Allotment will be assessed for the immediately succeeding program year for the following situations.¹

In any Program Year, the state fails to submit the state's annual performance report by the date set in guidance or if the report is incomplete.
Grant reduction based on performance failure will be applied to states if for two or more consecutive years, the state fails to meet the state adjusted levels of performance relating to the primary indicators of performance.

Phase-in of State Sanctions

Until all indicators for the core program have at least two years of complete data, the overall state program score will be based on a comparison of the actual results achieved to the adjusted level of performance for each of the primary indicators that have at least two years of complete data for that program.² The two years are after PY 2016.

Until all indicators for the state have at least two years of complete data, the overall state indicator scores will be based on a comparison of the actual results achieved to the adjusted level of performance for each of the primary indicators that have at least two years of complete data in a state.³ The complete years are the first two complete years after July 1, 2016.

Sanctions for Local Performance

In any program year, which a local area fails to meet the adjusted level of performance in the Adult, Dislocated Worker or Youth program(s) the state must provide technical assistance. The technical assistance may include:

Assistance in the development of a performance improvement plan
The development of a modified local or regional plan
Other actions designed to assist the local area in improving performance; or
On-site training of local board staff and service provider staff.⁴

If a local area fails to meet the adjusted levels of performance agreed to under §677.210 for the same primary indicator of performance for the same core program authorized under WIOA Title I for a third consecutive program year, the Governor must take corrective actions. The corrective actions must include the development of a reorganization plan under which the Governor:

Requires the appointment and certification of a new Local WDB, consistent with the criteria established under 20 CFR §679.350.
Prohibits the use of eligible providers and one-stop partners that have been identified as achieving poor levels of performance; and
Takes such other significant actions as the Governor determines are appropriate.

Phase in of Local Sanctions

At least two years of complete data on any indicator for any local core program are required to establish adjusted levels of performance for a local area. The complete years are the first two complete years after July 1, 2016.

Appeals⁵

Local areas may appeal a reorganization plan to the Governor within 30 days after receiving notice of the reorganization plan. The appeal must be jointly made by the Local WDB and chief elected official.

The Governor must make a final decision within 30 days after receipt of the appeal.

The Local WDB and chief elected official may jointly appeal the Governor's decision to the Secretary of Labor. The appeal must be submitted by certified mail, return receipt requested, to the Secretary of Labor, U.S. Department of Labor, 200 Constitution Ave. NW., Washington, D.C. 20210, Attention: ASET. A copy of the appeal must be simultaneously provided to the Governor.

Upon receipt of the joint appeal from the Local WDB and chief elected official, the Secretary of Labor must make a final decision within 30 days. The decision by the Governor on the appeal becomes effective at the time it is issued and remains effective unless the Secretary of Labor rescinds or revises the reorganization plan under WIOA sec. 116 (g)(2)(c).

Incentives

Under WIOA, state incentive grants are not authorized.⁶ Incentives for local areas are an allowable use of statewide funds.⁷ The use of local incentives may be addressed in separate policy memoranda and reviewed for effectiveness in meeting Wisconsin's State Plan objectives on an annual basis.

Administrative Actions

See the "Determining and Addressing At-Risk Performance" Section.

Mandatory Actions for Failure to Meet Levels of Performance

WIOA outlines a process of sanctions and corrective actions that are taken for failure to meet adjusted levels of performance at the state and local level. See the table below for administrative actions and sanctions for state and local areas following failure to meet performance.

The WDB Directors, Workforce Development Board (WDB) Chairs, and Chief Elected Officials will be notified when a performance indicator is failed. The consequences for failure to meet the levels of performance at the state and local level are outlined below.

*Table 11.8.1:* Sanction Chart
Failure Year	State	Local Area
Year 1	Technical Assistance from the Secretary of Labor including assistance in the development of a performance improvement plan.	Technical Assistance from the Governor or upon request of the Governor, the Secretary of Labor may conduct this assistance. May include the development of a performance improvement plan or the development of a modified local plan.
Year 2 (Consecutive)	The amount that would be reserved by the Governor under Section 128(a) for the immediately succeeding program year shall be reduced by 5 percent until the state meets adjusted levels of performance.	Technical Assistance from the Governor or upon request of the Governor, the Secretary of Labor may conduct this assistance. May include the development of a performance improvement plan or the development of a modified local plan.
Year 3 (Consecutive)	The amount that would be reserved by the Governor under Section 128(a) for the immediately succeeding program year shall be reduced by five percent until the state meets adjusted levels of performance.	Corrective Actions: Governor shall take corrective actions that shall include development of a reorganization plan which the Governor shall: Require the appointment and certification of a new local board. Prohibit the use of eligible providers (not ETPs) and one-stop partners identified as achieving a poor level of performance Other significant actions as the Governor determines are appropriate.