Policy Directive                                                             Issuance Number: TEA PD 01-06

Transitional Employment Assistance Manual      Issuance Date: 12-03-01

From: Joni Jones, Director                                       Expiration Date: Until Superseded

Subj: Federal Work Participation Rate Calculation

As you are aware, TEA policy regarding work activities does not specifically address the federal participation rate and how it is calculated. When the TEA program was implemented, this was a deliberate approach taken to encourage Case Managers to develop Employment Plans which targeted the specific needs of the individual client rather than "fitting" the client into an activity, or series of activities, based solely on whether it would count for the rate calculation. This approach has worked well in achieving positive outcomes for families as evidenced by our High Performance Bonus award and the amount that our caseload has declined due to employment related closures. At the same time, though, we must be cognizant of the work participation rate since fiscal penalties are associated with failing to meet it which, if imposed, could adversely affect our ability to continue to help families achieve positive outcomes. So that we have some idea as to where we are in terms of the federal participation rate, counties have been required to report more specific information each month regarding the activities in which clients are engaged and to report whether the activity meets the federal participation rate requirements. Since TEA policy does not specifically outline those requirements, the purpose of this directive is to provide that information so counties can report accurately.

Activities which are Countable for the Federal Rate Calculation

The following TEA work activities are countable, either in whole or in part, for purposes of meeting the federal participation rate:

• Unsubsidized employment
• Subsidized private or public-sector employment
• Micro-enterprise (self-employment)
• On-the-job training (OJT)
• Job search and job readiness activities *
• Work experience
• Community service
• Basic education (includes secondary school, GED courses, ESL, etc.) *
• Vocational educational training *
• Job skills training directly related to employment *

* Indicates there are limitations on counting participation in this activity.

The chart below shows how hours in each of the above activities are counted for purposes of the federal rate calculation.

Note: No more than 30% of all persons engaged in work activities in a month can be counted as participating in the vocational education and basic education activities.

If the number of hours engaged in an activity fluctuates from week to week, a weekly average for the month will be used to determine if the person (or persons if a 2-parent family) met the FPR for that month. Example: Ms. Jones (a single parent) worked the following number of hours in the report month:

1^st week – 32 2^nd week – 32 3^rd week – 28 4^th week – 30

Since she didn’t meet the minimum 30 hours in each week, the weeks can be averaged to determine if she met FPR for the month. The weekly average is 30.5 hours so she does meet FPR for the month.

Hours from more than one activity can be used to meet FPR. Therefore, hours from each activity in which the client is engaged should be considered against the table to determine if the client meets FPR for the month. For example, a client may have 20 hours of part-time work per week and 10 hours of work experience. When those hours are combined, the client meets FPR for the month with a total of 30 hours in allowable activities.

Other Post Secondary Education (TEA 3253) is the only TEA work activity that cannot be counted at all for the federal rate calculation. However, the activity is allowable as an individual’s work activity. As outlined in TEA 3250 and 3253, individuals for whom this activity is determined to be appropriate will be encouraged and allowed to engage in it. However, it is recognized that such individuals will not meet the federal participation rate requirements even with fifteen hours of other work activities.

The intent of this directive is to serve as a reference guide when completing the TEA monthly report so that counties can accurately report the number of clients who met the Federal Participation Rate calculation for the month. As stated earlier, it is not intended to change the individualized manner in which we work with TEA clients. However, more accurate data relative to where we are in terms of the FPR will provide us with information needed to make decisions regarding redesigns or enhancements to the program. Therefore, counties are encouraged to use and refer to this directive each month as the monthly reports are completed so that we are ensured of accurate data.

Inquiries to:  Lorie Williams, 682-8256

                      Linda Greer, 682-8257