HomeMy WebLinkAbout710553.tiff r• Ty41TAT IVE
Subj t to Revision
EMERGENCY EMPLOYMENT ACT
of
1971
PROGRAM GUIDE
"itr X7 /77/
U. S. Department of Labor
Manpower Administration
August 11, 1971
710553
TABLE OF CONTENTS
I. Purpose of the Program Guide.
II. Emergency Employment Act of 1971 (FEA) .
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III. Eligible Applicants and Program Agents.
IV. Allocation of Funds.
V. Program Administration.
VI. Application and Funding Process--Section 5 Programs.
VII. Application and Funding Process--Section 6 Programs.
VIII. Eligible Participants.
IX. Establishing Employment Opportunities.
X. Manpower•Services.
XI. Compensation and. Working Conditions.
XII. Comments by Interested Organizations.
XIII. Reports and Records.
XIV. Financial Arrangements--Reimbursement.
XV. Terminations of Grants--Adjustments in Payments.
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I. PURPOSE OF TUE PROGRAM GUIDE.
The purpose of this Program Guide is to furnish potential
applicants with information which will help them develop and submit
effective employment programs for funding under the Emergency
Employment Act of 1971.
The Guide describes the major provisions of the Act. It also
provides administrative guidelines for applicants in such basic areas
as conditions for eligibility, allocation of funds, establishment of
jobs, the application and funding process, training and supportive
services, employee compensation and working conditions, records and
reporting, financial procedures, and program terminations.
The emphasis in this first edition of the Guide is on programs
authorized by Section 5 of the Act. Guidelines for Section 6 were still
in preparation at the time that the Guide was issued.
Regulations have been formulated by the Secretary of Labor for
the purpose of making financial grants under the Act. (Subtitle A,
Title 29, Code of Federal Regulations, Part 55) . Applicants should
read and use these regulations as an aid in developing their applica-
tions. The regulations should also he referred to by officials and
staff of established programs, as necessary, to insure the continued,
proper administration of their programs. In case of discrepancy between
this Program Guide or other materials and the Regulations, the Regula-
tions are controlling.
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II. EMERGENCY Fb4'I.OYMENT ACT OF 1971.
A. Objectives of the Act.
The overall objectives of the Emergency Employment Act of
1971 are as follows:
1. To give financial assistance to nublic emnloyers which
will he used in providing unemployed and underemployed
persons with transitional jobs providing needed public
services in times of high unemployment.
2. Where appropriate, to provide job-related training and
manpower services which will enable such persons to move into
employment or training not supported under the Act.
The emphasis is placed on the transitional nature of the jobs,
with participants assisted to move to regular employment as soon
as practicable. To this end, the Act makes provision for appro-
priate training, development of career opportunities, and
placement efforts.
B. Summary of Provisions.
The Act authorizes financial assistance to eligible applicants
who agree to provide employment opportunities for unemployed or
underemployed workers in needed public services. Eligible appli-
cants are units of Federal, State and local government, their
subdivisions or institutions, and Indian tribes on Federal or
State reservations. Combinations or consortia of governmental
units and combinations of Indian tribes may also he eligible
applicants.
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There are two basic funding provisions specified in the Act.
Under Section 5, funds are made available for public service
employment nrograms whenever the Secretary determines that the
nationwide unemployment rate equals or exceeds 4.5 percent for
three consecutive months. As of August 1971 this criterion has
been met, permitting obligation of the 5750,000,000 authorized
for Section 5 programs. No further funds will he obligated when
the rate has fallen below 4.5 percent for three consecutive months.
Section 6 of the Act provides a program of special financial
assistance for areas with particularly severe unemployment
nroblems. For such areas, where the Secretary finds that unemploy-
ment has reached 6 percent or more for three consecutive months,
the Act authorizes expenditures of $250,000,000 in each of Fiscal
Years 1972 and 1973.
The Federal Government may not pay more than 90 percent of the
cost of carrying out an approved program, except in unusual
circumstances. The remaining 10 percent must he contributed by
the participating governmental unit or Indian tribe.
At least 80 percent of the funds authorized for the Section 5
program must be apportioned on a State and area basis. In
apportioning Section 5 funds among eligible applicants, the
Secretary of Labor is required to take into account the number of
unemnloyed workers and severity of unemployment in each State and
area.
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At least RS percent of the total funds appropriated for the
Act rust he used for paying wages and employment benefits to
persons employed in public service jobs. Obviously, the greatest
emphasis is placed on the provision of employment, with only a
fraction of available funds to be reserved for training or other •
surportive services.
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III. ELIGIBLE APPLICANTS AND PROGRAM AGENTS.
An "Eligible Applicant" may he:
1. Any unit of Federal, State or general local government.
2. Any public agency or institution which is a State or
general local governmental subdivision.
3. An Indian tribe on a Federal or State reservation, or
combination of tribes.
4. Combinations or consortia of units of government.
In order to facilitate administration of the program, the
Secretary of Labor has decided that only governmental units of
specified size will he eligible for direct Federal grants. These
units have been invited to apply directly for needed assistance
under the Act:
1. Cities with a population of at least 75,000.
2. Counties with a population of at least 75,000, not
counting the population of designated cities within such
counties.
3. All States.
4. The District of Columbia, Puerto Rico, the Virgin Islands,
Guam, American Samoa, and the Trust Territory of the Pacific
Islands.
5. Indian tribes or tribal councils as designated by the
Secretary.
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The governmental units listed above are termed "Program
Agents". The Secretary of Labor will designate Program Agents
in advance and list them in the Federal Register. Application
forms for the funding of nublic service employment programs under
Section 5 of the Act will be sent to all Program Agents, accompa-
nied by instructions for completion of such forms.
State governments serve as Program Agents for portions of the
State that are not themselves represented by Program Agents--the
'balance-of-State".
Only Program Agents, so designated, may submit a grant
application directly to the Secretary for assistance under Section
5. However, in conformity with the Regulations, Program Agents may
enter into agreements to grant funds to other eligible appli-
cants to provide public service employment under the Act. Units
of goverment receiving such funds may serve as sub-grantees of
the Program Agent.
Detailed guidelines implementing Section.6 of the Act, and-
pertinent regulations, will be developed as soon as possible.
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IV. ALLOCATION OF FUNDS.
A. Apportionment among Program Agents.
For the purpose of administering the Emergency Employment
Program, $1 billion is authorized for Fiscal Year 1972 and $1.25
billion for Fiscal Year 1973. The combined two-year PEA alloca-
tion is $2.25 billion.
To insure that wages and benefits for EEA program participants
are the first priority in the spending of these monies, the Act
provides that a minimum of 85 percent of the total amount of
money appropriated must he spent for wages and benefits of EPA
participants. All other participant non-wage costs, including
supportive services, education, administrative costs, and skill
training, must come out of the remaining 15 percent of the total
appropriation.
To meet the overall 85 percent requirement for the EEA program
as a whole, no less than 90 percent of the funds granted to Program
Agents must be used for participant wages and employment benefits.
Moreover, to conform to a limitation imposed in the appropriation
for this Act, Program Agents may not use more than 3.2 percent of
their total grant for program administration.
At least 80 percent of the $750,000,000 made available for
Section 5 programs in FY 1972 will be apportioned among Program
Agents by the Secretary of Labor on the basis of a formula reflect-
ing the amount and severity of unemployment in each area. The
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amount allocated to each Program Agent on this basis will be
published annually in the Federal Register so that the Agents
can plan their programs without delay or uncertainty. The portion
of the $750,000,000 which is not apportioned among the Program
Agents may be utilized by the Secretary for special unemployment
problems, program administration, collection of labor market infor-
mation, technical assistance, and other purposes. No State will
receive less than $1„5 million, and $1.5 million will be appor-
tioned among Guam, the Virgin Islands, American Samoa, and the
Trust Territories of the Pacific Islands.
The law authorizes $250 million in both FY 1972 and FY 1973
for the Special Employment Assistance authorized by Section 6.
Procedures for allocating this money are still in preparation.
B. Funds for State Employment.
A share of the funds allocated to each city or county serving
as a Program Agent will be specified by the Secretary of Labor for
use by the appropriate State government in establishing State job
opportunities in the area. The State share is based on the
proportion of all public service employees in the Program Agent's
area who are State employees.
The State employment opportunities created fran these funds must
be used to employ -esidents of the Program Agent's area. Partici-
pants may be employed directly by the State or, if the Governor
so chooses, he may allot any portion of the funds to any other
eligible unit of government located within the Program Agent's
area.
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It should be noted that the total allocation of a State will
cane from two sources:
1. Funds set aside from the allocation of each county or city
serving as a Program Agent in the State; and
2. Funds allocated directly to the State as Program Agent for
the "balance-of-State."
C. Distribution of Funds to Areas Within a Program Agent's
Jurisdiction.
Each Program Agent is required to distribute EEA funds and
jobs equitably among the areas within its jurisdiction most in
need of EEA assistance. This distribution should he based on:
1. The extent and severity of unemployment in each area;
2. The number of public service jobs in each area;
3. The population of the area;
D. Distribution of Funds to Subgrantees by a Program Agent.
Program Agents may establish job opportunities within their own
organization, or they may allocate funds within an area to public
employers interested in providing jobs. The method of allocation
in the discretion of the Program Agent, which may decide to use a
sub-grant or other document. For purposes of this Program Guide
and other EEA program materials, such public employer will be
referred to as a "subgrantee."
r.
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In considering applications from potential subgrantees, Program
Agents should make an equitable distribution of funds, giving
consideration to:
1. The numbers of public service employees within each unit
of government applying to the Program Agent for funds;
2. The administrative capability of the applicant to mount a
program;
3. The adequacy of the applicant's plans for effectively
serving the significant segments of the unemployed population
in the area on an equitable basis;
4. Effective performance in other manpower programs.
Program Agents are required to give careful consideration to
requests for LEA funds received from eligible applicants which are
potential subgrantees. In their application to the Secretary of
Labor, Program Agents are required to identify eligible applicants
who requested suhgrants, the amount requested, action taken, and
reasons for action on the requests. Assistance in reviewing
requests for funding will be available through the Regional
Manpower Administrator of the Department of Labor.
E. Non-Federal Share.
A 10 percent non-Federal share, in cash or in kind, including
but not limited to plant, equipment or services, is required of
all Program Agents. Other Federal funds may not he used for a
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Program Agent's 10 percent contribution, whether in cash or in
kind, unless the law under which the Federal funds were made
available specifically permits their use for this purpose, or
when the employing agency is a Federal agency. Voluntary services
or space donated to the grantee from private sources may rot he
included in the non-Federal share unless specifically accepted
by the Secretary.
If the 10 percent matching requirement would cause a serious
hardship for the IWogram Agent or prevent particiratien in t',e
program by a Frorrmi: Agent or an employing agency, the Fro-ram
Arent may request a waiver in its application for initial funairr
This renuest should fully exrlain and document the reasnns why a
waiver is essential for operation of the nropram,
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V. PROGRAM ADMINISTRATION.
A. Organization.
The Secretary of Labor has overall responsibility for carrying
out all of the provisions of the Emergency Employment Act of 1971,
and the regulations formulated under the Act.
Within the Department of Labor, the Manpower Administration is
responsible for administering the program, including the develop—
ment of policies and procedures, review of applications, and
monitoring of programs. It is planned to establish a new Office
in the Manpower Administration to provide leadership and overall
direction for the administration of the program.
Major responsibilities for the program have been assigned to
the 10 regional offices of the Manpower Administration. The
Regional Manpower Administrators will:
a. Provide necessary assistance to applicants in developing
their applications for financial assistance, as provided
under the Act.
b. Receive, review and approve applications.
c. Provide, through regional office staff, necessary
technical assistance to Program Agents in the operation of
their programs.
d. Through regional office staff, monitor individual programs
to insure compliance with agreements, assess program effec-
tiveness, recommend program improvements, and, where necessary
and for good cause, effect termination of programs.
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(A listing of Regional Manpower Administrators is attached
as Appendix A to this Guide) .
B. Role of Program Agents.
The Program Agent is responsible for developing and administering
an effective program to implement the provisions of the Act at the
local level. To meet this responsibility will require careful
planning and groundwork.
As a first step, the Program Agent must develop accurate back-
ground information on which an effective and systematic program
plan can be based. This information must necessarily include data
on the number, location, and characteristics of unemployed and
underemployed persons, including groups with particularly severe
problems requiring special attention. The Program Agent must
also make a careful assessment of the unmet needs for public
services, as described in Section 14(a) (3) of the Act, for the
area which it serves. Another important consideration is the
availability of adequate administrative mechanisms for establishing
jobs and recruiting individuals who qualify under the Act.
This initial assessment must include consideration of the
order of priorities among segments of the unemployed, public
service needs, sections of the geographic area served by the
Program Agent, and potential, sub-grantees.
Based on its assessment, the Program Agent will develop a
suitable plan for a public service employment program under the
Act. The plan need not be voluminous but should clearly
identify area needs, priorities, the program efforts that are
to be undertaken to meet the needs, and the administrative
mechanisms to be used.
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2. Applications.
The Program Agent must incorporate his plan into an
application on forms provided by the Secretary, and in
accordance with instructions developed for the completion
of such forms. The application should be developed in
accordance with the provisions of Section 7 of the Act,
and sections 55.3 and 55.6 of the Regulations promulgated
by the Secretary. The application should be submitted to
the appropriate Regional Manpower Administrator for review
and action within the due dates announced for this purpose.
During the first year of operation, a special effort
is being made to expedite the provision of jobs for the
unemployed. Therefore, the application process has been
divided in two parts. Program Agents will submit an
abbreviated Applicatir.n for Initial Funding for a partial
grant of funds. This will enable the Program Agent to
begin its planning process, hire staff, make administrative
arrangements, and employ an initial complement of parti-
cipants promptly.
Within 30 days of the effective date of the initial
grant, the Program Agent will submit a more detailed
Application for Full Funding. This application will out-
line the Program Agent's needs and plans for thorough
review by the.Regional Manpower Administrator.
Applications may be signed by the Program Agent's chief
elected or appointed officer or, in the case of a combina-
tion of general government units, by the officer designated
by such units.
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3.. Sub-grants
The Program Agent will be responsible for administering
or supervising all activities under its approved public
service employment program. It may provide jobs directly,
using its own organizational units as "employing agencies."
It may also allot funds to any other eligible applicant which
is interested in developing a program as a sub-grantee to a
State designated as a Program Agent for the "balance-of-
State." In such cases the Program Agent will remain responsi-
ble for assuring the compliance of the sub-grantee with the
Act, the regulations, the grant conditions, and other
requirements established by the Secretary.
C. Employing Agency.
1. An "employing agency" is an eligible applicant which has
been designated by a Program Agent, a sub-grantee, or the
Secretary to employ participants with funds granted under
the Act.
2. Examples of employing agencies include, but are not
limited to States, counties, cities, combinations of local
governments, and departments of States or cities (e.g. ,
health, sanitation, port authorities, fire, police, education) .
3. Federal agencies may also act as employing agencies
subject to applicable regulations set forth by the U. S.
Civil Service Commission. Employees of non-Federal employing
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agencies may perform work for a Federal Agency if the agency
gives its consent. Assistance in working suitable arrange-
ments with Federal Agencies will be provided by the DOL.
D. Use of Contractors Other than Employing Agencies.
Program Agents and employing agencies agencies may contract
with other public or private organizations for the provision
of necessary administrative training and supportive services.
This does not include contracts for the employment of program
participants, which can only be done by public employing
agencies.
Any-contract exceeding an amount of $10,000 must be approved
in advance by the appropriate Regional Manpower Administrator.
Proposals for such contracts should be included in the
application, showing the contractor's name, services to be
rendered, costs, and number of workers to be served.
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VI. APPLICATION AND FUNDING FPOCPSS--SECTION 5 PPOrRI"IS.
Information in this section applies only to programs under
Section S of the Act.
A. General.
Eligible Program Agents will be furnished with two sets of
applications and instructions: the first for the initial grant of
funds, which represents 20 percent of the total allocation for the
area; the second for the balance of funds allocated to the area.
Under the initial grant, Program Agents will he in a position to
hire participants as soon as possible while they simultaneously
plan for a fully-operative program. Upon approval of the
Application for Full Funding, the initial grant will he modified
to cover the period fran the date the grant is approved to July 15,
1972.
B. The Initial Application.
The Application for Initial Funding should be completed by the
Program Agent within ten (10) days of its .receipt, and forwarded
to the appropriate Regional Manpower Administrator (see Appendix
A) .
The initial application consists of appropriate identifying
information, a summary of costs and employment opportunities, a
breakdown of government units other than the Program Agent which
will serve as subgrantees of the agent, and a description of the
jobs to be provided under the initial grant. The Secretary waived
all requirements for thi4 application except as specified) in the
initial rending application and attached forms.
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The initial grant will enable the Program Agent to:
(1) hire participants immediately, including participants
who will serve as staff members in planning and administering
the program;
(2) hire non-participant staff to implement the program;
(3) plan for the full program, and complete the application
for the balance of funds.
NOTE: The Provisions Governing Grants, the Regulations (29
CFR 55) , and all other guidelines and standards issued for
EPA apply to the initial grant. In addition, there are other
constraints which apply to the use of funds received fran the
initial grant:
1. Not less than 85 percent of the initial grant of funds
shall be spent for wages and fringe benefits for partici-
pants. Program Agents should note that the availability
of as much as 15 percent of the initial funds for
administrative purposes is intended to allow for concen-
trated planning and administrative arrangements at the
start of the program. This initial administrative money
constitutes most of the funds that will be available for
administration during the total grant period. The
proportion of a Program Agent's total Federal grant that
may be used to pay for administrative costs may not exceed
3.2 percent. This should be taken into account in schedul-
ing administrative activities.
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2. Only 30 percent of the total number of jobs planned
for the entire grant period may be filled under the
initial grant,
3. The allowable costs under the initial grant are
limited to the costs of wages and fringe benefits for
participants and project administration. No costs for
training and other supportive services may be incurred
during the initial grant period.
Although the Application for Full Funding must be submitted
within 30 days after the initial grant is signed, and every
effort will be made to expedite its approval, there may be
cases when additional time is needed to allow for review of
the full application by the Regional Manpower Administrator
and for negotiation with Program Agents. During this interim,
Program Agents will be permitted to continue the expenditure
of funds provided under the initial grant for a period of as
much as six months.
C, Application for Full-Funding.
Within thirty (30)days after the approval of the initial grant,
an application requesting the balance of funds and setting out a
plan for the use of these funds must be forwarded to the appro-
priate Regional Manpower Administrator, The application should
be completed on the forms provided by the Department of Labor in
accordance with the accompanying instructions.
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The Application for Full Funding includes a sinnnary of the
program, a description of the area covered by the Program Agent,
including the population to be served, the public service needs of
the area, and the methods by which funds and job opportunities will
be distributed among other governmental units within the agent
area. In addition, there is a description of the proposed jobs
to he provided with ETA funds, plans for providing training and
other supportive services to participants, plans for insuring the
career development of participants, and cost breakdowns for the
use of PEA funds.
The Program Agent must attach copies of all comments received
from the Governor and major units of general local government, as
well as comments from labor unions, in accordance with Section XII
of this Guide.
The Application for Full Funding includes the costs of wages
and fringe benefits for participants, program administration, and
training and supportive services. The application should reflect
the administrative requirement that Program Agents are to expend
no less than 90 percent of their total EPA grant for wages and
fringe benefits of participants.
When the Application for Full Funding is approved by the
Regional Manpower Administrator, the initial grant will be modi-
fied to reflect the increase of funds and the expanded score of
work.
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VII. APPLICATION AND FUNDING PROCESS--SECTION 6 PROGRNIS.
Information for this section is still in preparation and will be
furnished at a later date.
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VIII. ELIGIBLE PARTICIPANTS.
A. Unemployed and Underemployed Persons.
Eligible participants for the Emergency Employment Act are
unemployed and underemployed persons. Priority for participa-
tion in this program shall be given to the unemployed.
1. Unemployed Persons.
An unemployed person is;
(1) a person who is without a job and who wants and is
available for work. An individual shall be deemed to meet
this qualification if he has been without work for one week
or longer and has made specific efforts to find a job
within the past A weeks, but is neither waiting to
be called back to a job from which he has been laid off
nor expecting to report to a new job within the next
30 days; or
(2) a person who is 18 years of. age or older and a
recipient of money payments pursuant to a State plan
approved under the public assistance titles of the Social
Security Act (relating to aid to the aged, the blind, or
the disabled, or aid to needy families with children) or
a person whose incase, resources, or need are counted with
that of such a recipient for determining public assistance
entitlement, and (ii) has been without work for one week
or longer and (A) is an unemployed father receiving
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assistance under title IV, Part A of the Social Security
Act (as defined in 45 CFR 233.100(a) (1), (B) is referred
for work by the State or local welfare agency, or
(C) volunteers for work; or (ii) is working in a job
• providing insufficient income to enable him and his
family to be self-supporting without welfare assistance.
2. Underemployed Persons.
Underemployed persons are:
a. persons who are working part-time for an employer other
than the Program Agent or a designated employing agency and
seeking full-time work; or
b. persons who are working full-time for an employer other
than the Pzugxan Agent or a designated employing agency and
whose wages, when added to the other income of adults 16 or
over in their immediate families living in the same house-
hold, are below the poverty line. (See Appendix B for
poverty income criteria) .
(NOTE: Persons working full-time for the Program Agent
or any designated employing agency cannot be considered
underemployed).
3. Place of Residence.
Participants, except individuals recalled to their former
jobs (see Section 4, below) must live within the geographic
area over which the Program Agent has jurisdiction. When a
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State government is given funds for expenditure on State
employees within the geogranhic area of another Program
Agent, the participants it selects must reside in that
geographic area.
4. Recalls.
Former employees of the Program Agent or any designated
employing agency receiving financial assistance under this
grant are eligible for participation in the program only if
they have been unemployed for a period of 30 days or longer
prior to being employed in a job funded by this grant.
B. Special Groups.
In developing an EEA program, the Program Agent must give special
consideration to the fact that program participants must be recruited
and selected on a fair and equitable basis from among all significant
segments of the unemployed and underemployed population. At least
one-third of all participants should be Veterans of the Asian
theater who served in the Armed Forces in Indochina or Korea on
or after August 5, 1964 and who received other than a dishonorable
discharge.
In developing an equitable plan for enployment, the Program
Agent should give special consideration to the needs and relative
numbers of unemployed and underemployed persons from each of the
following additional segments of the population in the area (the
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segments are not listed in any order of priority) : To the
extent feasible, the number of participants from each segment should
reflect the proportion of all underemployed workers in the area who
belong to that segment:
a. Persons whose native tongue is not English and whose
ability to speak English is limited;
b. Persons fran families with incomes below the poverty line;
c. Welfare Recipients;
d. Persons who come from socio-economic backgrounds
generally associated with substantial unemployment and
underemployment:
e. Migrant farmworkers;
f. Young persons eighteen years old or older who are entering
the labor force;
g. Persons who have become unemployed or underemployed as a
result of technological change or whose most recent employment
was with Federal contractors who have cut back in employment
because of shifts in Federal expenditures, such as in the
defense, aerospace and construction industries; and
h. Persons 45 or over.
Due consideration for employment should he given to persons who
have participated in manpower training programs for whop employment
opportunities are not otherwise immediately available.
26
The needs of other groups of unemployed persons with special labor
market problems should also be carefully taken into account.
C. Planning Services to Unemployed Groups.
To ensure systematic and effective administration, Program
Agents are required to include in their plan of EEA activities
careful attention to the reeds of the significant segments of the
unemployed and underemployed population in the area. The plan
should include background information on the numbers, race,
characteristics, location, income levels, and employment status
of potential participants in the area. The Department will be
particularly interested in reviewing the plans to see that
minority groups are included on a basis which represents their
distribution among the unemployed. It should also set priori-
ties for serving the segments on an equitable basis and set forth
the job opportunities and supportive services that will be pro-
vided to effectively meet the particular needs of each segment.
D. Non-Discrimination.
Any grant made pursuant to the Emergency Employment Act is
subject to Title VI of the Civil Rights Act of 1964 which provides
that no person with responsibilities in the qperation of the program
will discriminate against, deny with respect to the benefits of, or
exclude fran participation in any program or activity receiving
Federal financial assistance, any person in the United States on
grounds of race, color, or national origin.
In addition, no candidate for a position on, or member of, the
project staff funded under this grant, shall he discriminated
against because of race, creed, color, national origin, sex,
age, political affiliation or beliefs.
27
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E. Political Activities.
No program will involve political activities and neither the
program, the funds provided for it, nor the personnel employed in
the administration of it, shall be in any way or to any extent,
engaged in the conduct of .political activities in contravention
of Chapter 15 of Title 5, of the United States Code. Information
on this section of the Code is available from the U. S. Civil
Service Commission.
F. Recruitment, Certification and Selection of Program Participants.
Because of the wide variety of available resources and the need
to -serve varying segments of the unemployed population, Program Agents
will be allowed considerable flexibility in developing their plans
for recruitment and selection of participants.
In recruiting participants, the Program Agent should take into
consideration the special capabilities of existing agencies or
programs to reach various portions of the unemployed.
Additionally, all job vacancies, except those to which former
employees are being recalled, must be listed with the State
Employment Service, which shall be accorded at least 48-hours to
recruit and refer applicants before such vacancies are filled
from other sources.
There will be no formal procedure for certification of
eligibility of individual participants as unemployed or under-
employed. Employing agencies will be expected to make this
28
determination of eligibility, and to include and retain in the
participant's folder the information on which the determination
was based.
Final selection of program participants is the function of
each employing agency. The employing agency should keep a record
of the persons considered for each job under the Act and the data
upon which individuals were chosen or rejected as applicants.
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IX. ESTABLISHING BIPLOYMENT OPPORTUNITIES.
A. General.
In developing job opportunities,the Program Agent should be
guided by several principles stressed in the Act:
First, the jobs provided in this program must meet public
service needs as defined in the Act and Regulations.
Second, the emphasis is on transitional employment--on jobs
which are likely to lead to regular, non-subsidized employment
or opportunities for continued training.
Third, the Act envisages jobs that will not be "deadend", but
will contribute to career advancement and development of the employ-
ment potentials of participants. Opportunities for continued training
are provided to support the upward mobility of participants.
Forth,programs are to contribute to the elimination of restrictive
practices and institutional barriers which prevent the effective
utilization of available manpower and systematically exclude large
segments of the population from realizing their employment potentials.
Relevant Guidelines in this area will be issued by the U. S. Civil
Service Commission.
B. Public Service Needs.
As a result of a lack of revenue, many governmental units have
had to curtail public services or have been unable to implement new
services. The Act makes available major new resources for employing
persons to meet such needs. Program Agents are expected to determine
which public service are most pressing in each area.
30
Examples of public services demanding attention in many
co]lvulniti.es are health care, education, public safer, crime
prevention and control, manpower services, rrision rehabilitation,
transportation, haste disposal, housing and neighborhood develop-
ment, rural development, and others.
C. Occupations.
The jobs to be created under the Act are intended to cover a
wide range of skills, geared to the characteristics of the unemployed
and the public service needs of each area. However, no more than
one-third (1/3) of the positions funded under this grant can be pro-
fessional positions, as defined by Section 13(a) (1) of the Fair Labor
Standards Act of 1938. The exception to this limitation is the
hiring of classroom teachers.
Generally, a professional is a individual (1) with a professional
education (usually requiring more education than a Bachelor's degree),
or whose work is original and creative in an artistic field, (2) at
least 800 of whose work requires discretion and judgment and is
intellectural in nature, and (3) who earns at least $140 a week
($125 in Puerto Rico, Virgin Islands, or American Samoa) . A less
stringent test applies to individuals earning $200 or more. Lawyers,
doctors, and teachers working as such are professional without regard
to their earnings. (For further explanation see 29 CFR 541.3) .
31
The Act requires that, the maximum extent possible, public
service jobs should be provided in occupational fields which arc
most likely to expand within the public or private sector when
the unemployment rate recedes below 4.5% level nationally. 1^ie
Program Agent's plan should seek to identify such expanding
areas and develop appropriate employment opportunities. Appendix
• C provides an illustrative list of occupations which are generally
expected to expand in Future years.
The Emergency Employment Act requires Program Agents to hire
unemployed and underemployed persons to fill positions in their
EEA program staffs, other than necessary technical, supervisory
and administrative personnel, who may but need not he
participants.
D. Transition to Pegular Employment.
The goal of the Act is to place unemployed and underemployed
persons in transitional jobs which will enable individuals to move
into permanent employment in the public or private sector. To
achieve this goal, special consideration must be given to jobs
which provide prospects for non-subsidized employment with the
employing agency or other employer. The Program Agent's plans
should provide for needed training and related manpower services
to promote the movement of participants to regular employment or
training and to provide participants with skills for which there
is an anticipated high demand.
32
Program A0 .sts and employing agencies respi ible to them must
plan to place at least half of the LEA participants in continuing
positions with the Program Agent or employing agency, financed by
non-LEA funds. The Program Agent and the employing agencies
responsible to it shall utilize at least one-half the vacancies
occurring in suitable occupations in such continuing positions for
this purpose. Exceptions may be granted by the Secretary where this
is not feasible because of hiring practices required by law,
regulation, or collective bargaining agreements and the Program
Agent or employing agency has submitted a statement explaining
the prohibition.
In the event the Secretary determines that the national unemployment
rate is receding toward 4.5%, or financial assistance is no longer
available, Program Agents must make maximum efforts to locate employment
or training opportunities not supported under this Act for each program
participant.
E. Occupational Advancement.
To the maximum extent feasible, the Act requires that the program
contribute to the occupational development and upward mobility of each
participant.
In the event that a participant is employed in a public service
job which does not provide sufficient prospects for advancement or suit-
able continued employment, reasonable efforts must be made by the employing
agency employment providing such prospects. Where appropriate, linkages
must be maintained with upgrading and other manpower programs to provide
participants who want to pursue work with the employer in the same or
similar occupation, with opportunities to do so and to find permanent,
upwardly mobile careers in that field.
33
The Act requires that the Secretary provide for periodic reviews
of the status of each participant to ensure that EEA jobs provide
prospects for advancement or continued employment 'and that the Program
Agent is providing necessary placement assistance. Detailed procedures
to implement this section are under development.
F: Improved Utilization of Manpower.
The Program Agent is encouraged to design its program to enhance
the effective management and utilization of human resources. To this
end, special consideration should be given to the evaluation of position
requirements and qualifications, the redesign of tests and other proce-
dures for selecting participants, the restructuring of jobs so as to
better use the skills of the unemployed population, and the elimination
of requirements which have artificially tended to restrict the mployment
opportunities of some segments of the population.
These activities should be carried out in accordance with guide-
lines to be developed by the U. S. Civil Service Commission in the near
future. Pending the guidelines, preliminary work in this area should
begin as soon as possible.
G. Maintenance of Effort.
Funds issued pursuant to this grant may not be used to pay for
work which would otherwise have been performed at Federal, State or
local expenses; i.e., Program Agents may not use EEA funds to subsidize
jobs for which public monies are already budgeted.
EEA money can only be used to increase employment opportunities over
those which would otherwise be available.
34
r
Funds can not be expended for work that will result in the
displacement of currently employed workers (including reductions in
the hours on nonovertime work or wages or employment benefits) or which
will impair contracts or services.
35
X. ?4ANPOIVER SERVICES.
In keeping with the objective of providing opportunities for
regular employment and upward mobility, the Act authorizes the use
of funds for training and other supportive services. Training
may take the form of basic or remedial education, classroom voca-
tional instruction, or on-the-job training. Other supportive
services may include, but are not limited to, the following:
A. Medical services necessary to make a potential partici-
pant available for employment. This may include initial physical
examinations, preventive and clinical medical treatment, minor
dental treatment, nutrition services, voluntary family planning
services, inexpensive prosthesis such as glasses, dentures, and
hearing aids, and diagnostic psychological services where they
are necessary to secure appropriate employment.
B. Transportation for participants between their residences
and any program-related facility or activity in cases where there is
no appropriate public transportation or transportation costs are an
obstacle to employment.
C. Child care services where needed or employability or to
permit entrance into training.
D. Vocational or educational counseling.
It is anticipated that about 5 percent of the funds allotted
under the Program Agent's BEA grant may he used to provide training
and other supportive services. The small size of this amount makes
36
it essential that supportive services be provided only where
absolutely necessary to enable unemployed persons to obtain
appropriate jobs.
Because of the limitation of funds available for training and
supportive services, Program Agents must make every effort to
secure these services fran existing agencies and Federally funded
manpower training systems and facilities. Among existing
Federally-assisted manpower resources that should be explored
for linkages are the Concentrated Employment Programs, MIJTA
Program (particularly area skills centers), and the Public
Service Careers Program, Job Corps, and the Work Incentive Program.
Programs to fund health services and/or to provide employment
in health occupations would benefit from contact with existing
local agencies established to coordinate health manpower resources.
These agencies include State and Area-wide Comprehensive Health
Planning Agencies and the local Regional Medical Programs.
37
XI. COMPENSATION AND WORKING CONDITIONS.
A. Wages.
Wages or salaries shall be paid to program participants at a
rate equal to the highest of the following:
1. the minimum wage applicable under the Fair Labor
Standards Act of 1938, if Section 6(a) (1) of the Act applied
to the participant and he is not exempt from Section 13 thereof
(currently $1.60 per hour);
2. the State or local minumnm wage frr the most nearly
comparable covered employment; or
3. the prevailing rate of pay for persons employed in
similar public occupations by the same employer.
B. Fringe Benefits.
Program participants shall receive the sane fringe benefits
(e.g., workmen's compensation, health insurance, unemployment
insurance, vacations) as other employees of the employing agency.
C. Limits on Compensation.
1. Compensation to any participant fran funds authorized
under the EEA is limited to a maximum full-time rate of
$12,000 per year plus the cost of fringe benefits normally
paid to workers in compparable occupations by the same
employer.
2'. It should be the goal of Program Agents to pay an
average compensation to program participants (including
wages and fringe benefits) of no more than $7,000 per year
in the Program A'-nt's overall program,
38
XII. Cat1ENTS BY INTERESTED ORGANIZATIONS.
A. Garments by Governmental Units.
Prior to the submission of the Application for Full Funding, or
amendment or modification thereof, to the Department of Labor, all
Program Agents must provide appropriate officials of the major units
of general local government within their geographic jurisdiction
an opportunity to submit camnents.
These comments may be made to the Program Agent or directly to
the Regional Manpower Administrator and should relate to compliance
with the Act and the Regulations. (The requirement for comments
will be waived with respect to applications for initial funding) .
For the purpose of this section, the "appropriate officials
of the major units of general local government" within the Program
Agent's jurisdiction are limited to the following: the Governor
of the State; the Chief Executives of cities with populations
of 20,000 or over; and county executives; or their designees.
Other units of general local government within the area
desiring to camera may do so, but they will not receive this
opportunity by individual invitation.
A summary of the Program Agent's Application for Full Funding,
including the proposed distribution of funds, must be published
in two newspapers of general circulation in the area. The summary
must include notice of where the application may be examined in
full and when it will be submitted to the Regional Manpower
Administrator.
39
Comments will not be required for the Application for
Initial Funding. However, all Program Agents are requested to
furnish an information copy of this Application to the Governor
and the State is furnished an information copy of its own
Application for Initial Funding to all Program Agents in the
• State. Such copies should be furnished no later than the time
the Applications are transmitted to the Regional 'tanpower
Administrator.
B. Comments by Unions.
Officials of labor organizations representing employees who
are engaged in similar work in the same area as that proposed
to be performed in a Program Agent's grant application proposed
modification thereof must also be allowed to submit comments on
such proposals. Normally, only unions representing public
employees need be contacted for comments. This opportunity to
comment does not apply to a Program Agent's Application for
Initial Funding.
C. Submission of Comments.
Completed applications for funding (except initial applica-
cations) must include copies of any comments on the application
submitted to the Program Agent by the major units of general
local government and appropriate labor organizations in the
area. These groups will be allowed 15 days from their receipt
of the application in which to submit their written comments
40
to the Program Agents and/or the Regional Manpower Administrator,
but must indicate within three days that they plan to comment.
Comments from other units of government in the area will also
be considered, provided they too are received within 15 days of
the publication of the program summary in the local press, and
also indicate they will comment. Comments from any unit of
government in the area submitted to a Program Agent after this
time should also be sent by the reviewer to the Regional
Office directly, for possible consideration.
In making the determination as to whether or not to approve
a Program Agent's application, however, consideration can only
be granted to those units of goverment or organized labor that
file their written comments with the Program Agent or the
Regional Manpower Administrator within the 15 day limit described
above.
41
XIII. REPORTS AND RECORDS.
A. Reports.
Program Agents must submit periodic program reports to the
Secretary as required by the Act and the Regulations. Program
Agents will require each employing agency in their area to
submit periodic reports. Reports which rust be submitted include:
1. Financial reports (see Section XIV, below) to insure
proper accounting for all program funds, including both the
Federal and non-Federal shares.
2. Reports designed to measure the effectiveness of each
program.
3. Such other reports, as required.
Reports will include data on characteristics of EEA participants,
including:
1. Characteristics of participants such as age, sex, health,
education level and previous wage and employment experience.
2. Participants' length of time in jobs, including infor-
mation on their duration of employment for at least one
year following the end of their employment in each program.
3. Total dollar cost for each participant, including a
breakdown between costs of wages, training, supportive
services, fringe benefits, and administrative costs.
The transitional aspect of jobs created under the Act is
also important in measuring the effectiveness of programs.
Therefore, Program Agents and employing agencies will submit
reports on participants' employment status after they leave a
public service employment program.
42
The Secretary will transmit an annual, detailed report to
the Congress, setting forth activities conducted under the Act.
This report will be prepared from reports submitted by Program
Agents and employing agencies, and also from periodic program
reviews conducted by the Manpower Administration.
The importance of reporting accurately and on time cannot
be overstressed. Detailed reporting instructions will be issued
to each Program Agent.
B. Records.
Program Agents and employing agencies will be required to
maintain records (and accounts) concerning property, personnel
and financial management in their programs. Such records (and
accounts) are to be:
1. "Made available for audit purposes to the Department of
Labor, or the Comptroller General of the United States, or
their authorized representatives.
2. Retained for a period of three years following the
expiration of any grant.
Detailed instructions are being prepared on this subject,
and will be sent to all Program Agents as soon as possible.
43 -.
XIV. FINANCIAL ARRANGEMENTS--REIMBURSEMENT.
The following paragraphs attempt to describe, in the broadest
possible terms, the procedures whereby Program Agents and their
designated subgrantees may obtain funds to carry out their
programs. Basic financial record-keeping requirements are also
• discussed. Financial management requirements will be dealt with
in detail through formalized procedures which will be issued by
the Manpower Administration at the earliest possible time. The
forms mentioned in the following paragraphs are not available for
issuance with this Guide, but will be distributed in time for their
needed use.
A. Initial Funding of Programs.
1. The Secretary will make a total allocation of funds
to each Program Agent in accordance with Section 9 (a)(1)
of the Act. Such allocation shall be made for the pur-
pose of enabling the Program Agent to initiate and carry
out its public service employment program.
2. The Program Agent will complete an Application for
Initial Funding on the forms and in accordance with
instructions provided by the Secretary through the
Manpower Administration. (See Section VI, above) .
Such application shall be for not more than 20 percent
of the total funds allocated for the program, and is to
be submitted to the appropriate Regional Manpower
Administrator for review and action. In making
44
application the Program Agent must submit a program
budget, and agree to make application for the balance
of funding within 30 days of approval of the initial
application In addition, the Program Agent must
commit itself to:
a. Complying with all requirements of the Act,
the regulations, grant conditions and requests
for information by the Secretary.
b. Allotting the funds allocated to it in an equit-
able manner, so as to insure that the employ-
ment and public service needs of the geographic
areas within its jurisdiction are met.
3. Upon approval by the Regional Manpower Administra-
tor of the Application for Initial Funding, he
and the Program Agent, shall prepare form MA 2-105
"Invoice for Reimbursement and/or Cash Advance
(When Treasury Check is Used)". The form-MA 2-105
will be submitted to the appropriate disbursing
officer so that a check may be issued by the U.S.
Treasury Department.
4. The check issued by the Treasury Department repre-
sents an advance of funds covering approximately
the first 30 days of operations under the program.
5. Thereafter, the Program Agent will submit an invoice
form MA 2-105, for additional additional advance°
on the initial allocation of funds, until its
Application for the Balance of Funds is approved.
The invoice will be submitted to the appropriate
45
Regional Manpower Administrator for necessary action.
B. Obtaining Balance of Funds.
1. Upon approval of the Program Agent's Application for Balance
of Funds the Regional Manpower Administrator will prepare
Standard Form 1193. "Letter of Credit" for submittal to
the appropriate Federal Reserve bank or branch. The
Letter of Credit represents a commitment by the Manpower
Administration} specifying a dollar limit available to
the Program Agent (or "grantee") for a specified period
of time. (Specific Letter of Credit procedures will he
issued as soon as possible to grantees) .
2. The Regional Manpower Administrator will obtain from the
Program Agcnt its coaplete portion of form SF 1194,
"Authorized Signature Card for Payment Vouchers on Letter
of Credit", at the same time the Letter of Credit is
Prepared. The authorized signature card is transmitted to
the Treasury Department after the Regional Manpower Admin-
istrator completes his portion of the form. One copy of
of the signature card is given to the Program Agent.
3. Funds are thereafter obtained, by the Program Agent, as
needed through a commercial bank selected by the Program
Agent. The bank selected must agree to process vouchers
submitted by the Program Agent to the appropriate Federal
Reserve Bank or branch. In arranging for payment of
subsequent funds, the Program Agent must present its copy
if the signature card (SF 1194) to the commercial bank
selected.
46
4. A supply of forms TUS 5401, "Payment Voucher on Letter
of Credit" will be issued to each Program Agent. The
Program Agent may draw funds against the Letter of
Credit, as needed by presenting a copy of the payment
voucher to its commercial bank.
C. Allocations to Subgrantees.
Program Agents may allocate funds to subgrantees. However,
the Program Agent remains responsible for the proper use of
funds by subgrantees as well as assuring their compliance with
the Act, the Regulations, and the grant conditions.
The Program Agent probably will wish to require subgrantees
to agree in writing to the grant conditions. It may wish to
require the subgrantee to give to the Program Agent the right
to monitor and modify the subgrantee's program through proce-
dures similar to those the Department of Labor will use as per
paragraph 4 of the grant conditions. It may also wish to
require certain of the assurances which the grant conditions
provide for the Secretary; for example, those assurances
found in paragraph 8, Records and Accounts; paragraph 11,
Disclaimer of Liability; paragraph 15, Reports; and possibly
others. The Program Agent may wish to retain for itself the
right to make adjustments in payments as specified in Section
55.25 of the Regulations, and to terminate a subgrant for
cause as specified in Section 55.26 of the Regulations.
47
D. Use of Federal Funds and Government-Owened Equipment.
Federal funds may not be used for the acquisition, rental
or leasing of supplies, equipment, materials or real property,
whether these expenses are budgeted as direct cost, indirect
cost or overhead. This restriction also precludes the assign-
ment of Federally-owned equipment to Program Agents and
subagents under the grants issued to them, except as noted in
IV.E above.
48
XV. TERMINATION OF GRANTS; ADJUSTMENT OF PAYMENTS.
If the Program Agent violates or permits an employing agency
to violate, or if a unit of Federal or State government acting
independently as employing agency, violates any provisions of the
Act, the Regulations, or grant terms or conditions which the
Secretary has issued or shall subsequently issue during the period
of the grant, the Secretary may terminate the grant in whole or in
part unless the grantee causes such violation to be corrected with-
in a period of 30 days after receipt of notice specifying the
violation; or in his discretion the Secretary may terminate the
grant in whole or in part.
Termination shall be effected by a notice of termination which
shall specify the extent of termination and the date upon which such
termination becomes effective. Upon receipt of a notice of termina-
tion, the grantee shall: (1) Discontinue further commitments of
grant funds to the extent that they relate to the terminated
portion of the grant; (2) promptly cancel all subgrants, agreements,
and contracts utilizing funds under this grant to the extent that
they relate to the terminated portion of the grant; (3) Settle, with
the approval of the Secretary, all outstanding claims arising from
such termination; (4) Submit, within 6 months after the receipt of
the notice of termination, a termination settlement proposal which
shall include a final statement of all unreimbursed costs related
to the terminated portion of the grant, but in case of terminations
under paragraph (a) of this section will not include the cost of
preparing a settlement proposal. Allowable costs shall be deter-
mined in accordance with Section 55.15 of the Regulations.
49 U. S. DEPARTMENT OF LAB
Manpower Administratic
LISTING OF REGIONAL OFFICES AND STATES SERVED
Region Number Location (and telephone number) States Served
Room 1703, J.F. Kennedy Bldg. Connecticut, New Hampshire
Government Center Maine, Rhode Island,
Boston, Massachusetts 02203 Massachusetts, Vermont
(617) 223-6439
II 341 Ninth Avenue, Room 716 New Jersey, Puerto Rico,
New York, New York 10001 New York, Virgin Islands
(212) 971-5445
III U.S. Department of Labor Delaware, Virginia,
P.O. Box 8796 Maryland, West Virginia
Philadelphia, Pennsylvania Pennsylvania
(215) 438-5200 19101
IV 1371 Peachtree Street, NE. Alabama, Mississippi,
Room 405 Florida, North Carolina
Atlanta, Georgia 30309 Georgia, South Carolina
(404) 526-5411 Kentucky, Tennessee
V Federal Building, Room 2402 Illinois, Minnesota,
219 South Dearborn Street Indiana, Ohio,
Chicago, Illinois 60604 Michigan, Wisconsin
(312) 353-4258
VI Federal Building Arkansas, Oklahoma,
1100 Commerce Street Louisiana, Texas,
Dallas, Texas 75202 New Mexico
(214) 749-2841
VII Federal Building, Room 3000 Iowa, Missouri, Kansas,
911 Walnut Street Nebraska
Kansas City, Missouri 64106
(816) 374-3796
VIII 16015 Federal Office Building Colorado, South Dakota
1961 Stout Street Montana, Utah, North Dakota,
Denver, Colorado 80202 Wyoming
(303) 837-4477
IX Room 10064, Federal Building Arizona, Trust Territory,
450 Golden Gate Avenue California, Nevada,
San Francisco, California Hawaii, American Samoa,
(415) 556-7414 94102 Guam
X Arcade Plaza Alaska, Oregon, Idaho,
1321 2nd Avenue Washington
Seattle, Washington 98101
(206) 442-7700
D.C. Manpower Administration District of Columbia
District Bldg. , Room 220
14th and E Streets, NW.
Washington D. C. 20004
(202) 629-3663
50
APPENDIX B
53/ t/ i1
POVERTY LEVEL INCOME CRITERIA
To determine the eligibility of potential EEA participants
as underemployed, the following income criteria will be used:
Family Sire Nonfarm Farm
1 $1900 $1600
2 2500 2000
3 3100 2500
4 3800 3200
5 4400 3700
6 5000 4200
7 5600 4700
For families with more than 7 members, add $600 for each
additional member in a nonfarm family and $500 for each additional
member in a farm family.
The following income criteria shall apply for the state of
Alaska only:
Family Size• Income Nonfarm Income Farm
1 $2400 $2000
2 3150 2625
3 3900 3275
4 4750 3975
5 5500 4600
6 6250 5225
7 7000 5850
51
For families with more than 7 members, add $750 for each
additional family member in a nonfarm family and $625 for each
additional member in a farm family.
The following income criteria shallapply for the state of
Hawaii only:
Family Size Income Nonfarm Income Farm
1 $2250 $1875
2 2900 2400
3 3550 2950
4 4250 3550
5 4900 4075
6 5550 4600
7 6200 5125
For families with more than 7 members, add $650 for each
additional family member in a nonfarm family and $525 for each
additional family member in a farm family.
52
APPENDIX C
ILLUSTRATIVE LIST OF EXPANDING PUBLIC SERVICE OCCUPATIONS
Librarians
Social, Welfare and Recreation Work
Technician (Medical and Dental)
Nursing (Registered, Licensed Practical and Nurse aides)
Secretaries-Typists
Office-Machine Operators
Policemen and Guards
Firemen
Building Service Workers
Dietitians
Public Personnel and Training
Data Processing
Juvenile Counseling
'Vocational Counseling
Probation Workers
Physical Therapy
Public Administration
Community Health Aide
Housing Inspection
Police Community Relations
Child Care Instructors
Neighborhood Worker
Recreation Aides
Education Aides
I authorize the following individual(s) to sign grant documents,
invoices and other instruments under the provisions of the Emergency
Employment Act of 1971:
NAME TITLE SIGNATURE
Authorized Official
•
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