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.

Workforce Investment Act: States' Spending Is on Track, but Better Guidance Would Improve Financial Reporting

This report responds to two ongoing mandates under the American Recovery and Reinvestment Act of 2009 (Recovery Act). It is the latest in a series of reports on the uses of and accountability for Recovery Act funds in 16 selected states, certain localities in those jurisdictions, and D.C. These jurisdictions are estimated to receive about two-thirds of the intergovernmental assistance available through the Recovery Act. This report also responds to a mandate to comment on the jobs estimated in recipient reports. The auditor collected and analyzed documents and interviewed state and local officials and other Recovery Act award recipients. He also analyzed federal agency guidance and spoke with individual federal officials. Illustrations.

Since the Workforce Invest. Act's (WIA) enactment in 1998, there have been numerous reports that included recommend, regarding many aspects of WIA. These aspects include performance measures and accountability, funding formulas and spending, one-stop centers, and training, as well as services provided to dislocated workers, youth, and employers. This testimony discusses issues raised and recommend. made. Specifically, this testimony addresses: (1) progress made by the Dept. of Labor in addressing areas of concern, particularly related to recommend. for action, and (2) what steps Labor has taken to ensure an understanding of what works and for whom in addressing the needs of workers and employers. Illustrations.