11.8 Incentives, Sanctions and Administrative Actions

11.8.1 Incentives, Sanctions and Administrative Actions

Effective date: June 28, 2024

Sanctions for State Performance

If a state fails to meet the state adjusted levels of performance relating to the primary 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; and/or
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.

Sanctions for Local Performance

In any program year in 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; and/or
On-site training of local board staff and service provider staff.²

If a workforce development area (WDA) fails to achieve an Individual Indicator Score that meets the threshold determined for the indicators being assessed for the program year, the local workforce development board (WDB) must receive technical assistance and develop a performance improvement plan. If the WDA fails the same indicator for a third consecutive program year, the Governor shall take corrective actions as described in WIOA sec. 116(g), which shall include development of a reorganization plan through which the Governor shall:

require the appointment and certification of a new local board, consistent with the criteria established under section 107(b);
prohibit the use of eligible providers (not eligible training providers (ETPs)) and one-stop partners identified as achieving a poor level of performance; and/or
take such other significant actions as the Governor determines are appropriate.

Appeals³

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 (CEO).

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

The local WDB and CEO may jointly appeal the Governor's decision to the Secretary of Labor not later than 30 days after receiving a decision from the Governor. 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.

The Secretary of Labor must make a final decision within 30 days upon receipt of the joint appeal from the local WDB and CEO. 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)©.

Incentives

Under WIOA, state incentive grants are not authorized.⁴ Incentives for local areas are an allowable use of statewide funds.⁵ 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 State Performance Assessment and Local Area Performance Assessment.

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 local WDB Directors, WDB Chairs, and CEOs 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 DWD-DET on behalf of 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 DWD-DET on behalf of 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.