The Bush administration has twice proposed reducing the Workforce Investment Act's (WIA) budget, citing large amounts of states' unspent funds carried over from the prior year. However, in light of current economic conditions, state & local workforce officials have expressed a need for more funds, not less. This report assesses whether the Dept. of Labor's spending info. is a true reflection of states' available funds. Examined the spending rate for states, what Labor does to determine how states are managing their spending, & what factors affect states' WIA expenditure. Recommends that Labor collaborate with states to clarify its definition of obligations & include this info. in determining states' available funds. Charts & tables.