Ohio could lose millions in WIA funds

As part of the Omnibus Bill passed recently by Congress, Ohio could lose millions in Workforce Investment Act funds.

The legislation calls for rescinding unspent FY2005 and 2006 funds as of June 30, 2007. WIA monies fund multiple programs across the state and are used in Lucas County for The Source, the one-stop employment/training office, and for Youth, Adult and Dislocated Worker services.

Under the Act, about $250 million would be rescinded. Ohio's portion of the rescission would be close to $22 million. While there may be a loophole that allows states to apply for part of the rescission to be used during the 2007 program year, nothing is certain.

The Ohio Department of Job and Family Services (ODJFS), which receives the money on behalf of the state, is in the process of obtaining more details from the Department of Labor on how the rescission will be apportioned in Ohio. How the DOL recaptures these funds will determine the actual impact on services and programs in Ohio and the counties.

In the past, ODJFS has been able to absorb such rescissions with its own money without adversely affecting local service. But given the state's tight budget this year, they may not be able to absorb any losses this time.

(hat tip to the CCAO)