Funding Recapture and Reallocation Policy 

Public Comment

The Workforce Arizona Council’s Continuous Improvement Workgroup, made up of leaders and staff from the Department of Economic Security, Office of Economic Opportunity, and Council staff, has been researching and collaborating to develop the new state Funding Recapture and Reallocation Policy.  The goal of this new policy is to ensure effective management, evaluation, and improvement of workforce development efforts, ensuring that resources are aligned with the Council’s strategic goals and that programs effectively meet the needs of job seekers and employers.

Policy at a Glance:

DRAFT Funding Recapture and Reallocation Policy

Issuing Agency: Workforce Arizona Council

Scope: Applies to Local Workforce Development Boards (LWDBs), local subrecipients and fiscal agents, Arizona Department of Economic Security (DES) staff, Arizona Office of Economic Opportunity (OEO) staff, WIOA Title I Operators, Program Managers, Fiscal Agents, and the State Workforce Board (“the Council”).

References: WIOA Sections 127(c)(5), 128, 133; 20 CFR 683.110, 683.135, 683.140

Objective: In accordance with WIOA Sections 128(c) and 133(c), this policy outlines the process by which the Governor, in consultation with the Council, may recapture and reallocate WIOA Title I formula funds among local areas under certain conditions.

Policy Overview:

Background: The U.S. Department of Labor requires states to obligate at least 80% of WIOA Title I formula funds by the end of the first program year. Funds that remain unobligated above 20% are subject to recapture and reallotment.

Purpose: This policy defines Arizona’s procedures for local obligation of funds and outlines how unobligated formula funds for WIOA Adult, Dislocated Worker, and Youth programs will be recaptured and redistributed among eligible local areas and to approved statewide initiatives.

Compliance: All relevant WIOA regulations and applicable federal laws apply, even if not explicitly stated in the policy.

Arizona’s State Workforce Board, known as the Workforce Arizona Council, and the Department of Economic Security (DES)—the State Administrative Entity and Grant Recipient—will oversee the implementation of this policy and associated funding process.

Public Comment Instructions:

All comments will be reviewed and presented to the Council’s Executive Committee on May 22, 2025. Final action on the policy will be taken by the Full Council at its next regularly scheduled meeting, May 29, 2025.

Submission of Comments and deadline: Public Comments are now closed.

Access Issues: If you experience difficulty accessing the Google Sheet, you may email your comments directly to: [email protected].

We encourage you to share this announcement with WIOA Title I-B staff, service providers, and other relevant stakeholders.

Thank you for your continued engagement and support of Arizona’s workforce development system.