(ii)
Formula
Subject to clauses (iii) and (iv), of the remainder—
(I)
33⅓ percent shall be allotted on the basis of the relative number of unemployed individuals in areas of substantial unemployment in each State, compared to the total number of unemployed individuals in areas of substantial unemployment in all States;
(II)
33⅓ percent shall be allotted on the basis of the relative excess number of unemployed individuals in each State, compared to the total excess number of unemployed individuals in all States; and
(III)
33⅓ percent shall be allotted on the basis of the relative number of disadvantaged adults in each State, compared to the total number of disadvantaged adults in all States, except as described in clause (iii).
(iii)
Calculation
In determining an allotment under clause (ii)(III) for any State in which there is an area that was designated as a local area as described in
section 3122(c)(1)(C) of this title, the allotment shall be based on the higher of—
(I)
the number of adults in families with an income below the low-income level in such area; or
(II)
the number of disadvantaged adults in such area.
(iv)
Minimum and maximum percentages and minimum allotments
In making allotments under this subparagraph, the Secretary shall ensure the following:
(I)
Minimum percentage and allotment
Subject to subclause (IV), the Secretary shall ensure that no State shall receive an allotment for a fiscal year that is less than an amount based on 90 percent of the allotment percentage of the State for the preceding fiscal year.
(II)
Small State minimum allotment
Subject to subclauses (I), (III), and (IV), the Secretary shall ensure that no State shall receive an allotment under this subparagraph that is less than the total of—
(aa)
3⁄10 of 1 percent of $960,000,000 of the remainder described in clause (i) for the fiscal year; and
(bb)
if the remainder described in clause (i) for the fiscal year exceeds $960,000,000, ⅖ of 1 percent of the excess.
(III)
Maximum percentage
Subject to subclause (I), the Secretary shall ensure that no State shall receive an allotment percentage for a fiscal year that is more than 130 percent of the allotment percentage of the State for the preceding fiscal year.
(IV)
Minimum funding
In any fiscal year in which the remainder described in clause (i) does not exceed $960,000,000, the minimum allotments under subclauses (I) and (II) shall be calculated by the methodology specified in section 132(b)(1)(B)(iv)(IV) of the Workforce Investment Act of 1998 [29 U.S.C. 2862(b)(1)(B)(iv)(IV)] (as in effect on the day before July 22, 2014).
(v)
Definitions
For the purpose of the formula specified in this subparagraph:
(I)
Adult
The term “adult” means an individual who is not less than age 22 and not more than age 72.
(II)
Allotment percentage
The term “allotment percentage”, used with respect to fiscal year 2015 or a subsequent fiscal year, means a percentage of the remainder described in clause (i) that is received through an allotment made under this subparagraph for the fiscal year. The term, used with respect to fiscal year 2014, means the percentage of the amount allotted to States under section 132(b)(1)(B) of the Workforce Investment Act of 1998 [29 U.S.C. 2862(b)(1)(B)] (as in effect on the day before July 22, 2014) that is received under such section by the State involved for fiscal year 2014.
(III)
Area of substantial unemployment
The term “area of substantial unemployment” means any area that is of sufficient size and scope to sustain a program of workforce investment activities carried out under this part and that has an average rate of unemployment of at least 6.5 percent for the most recent 12 months, as determined by the Secretary. For purposes of this subclause, determinations of areas of substantial unemployment shall be made once each fiscal year.
(IV)
Disadvantaged adult
Subject to subclause (V), the term “disadvantaged adult” means an adult who received an income, or is a member of a family that received a total family income, that, in relation to family size, does not exceed the higher of—
(aa)
the poverty line; or
(bb)
70 percent of the lower living standard income level.
(V)
Disadvantaged adult special rule
The Secretary shall, as appropriate and to the extent practicable, exclude college students and members of the Armed Forces from the determination of the number of disadvantaged adults.
(VI)
Excess number
The term “excess number” means, used with respect to the excess number of unemployed individuals within a State, the higher of—
(aa)
the number that represents the number of unemployed individuals in excess of 4.5 percent of the civilian labor force in the State; or
(bb)
the number that represents the number of unemployed individuals in excess of 4.5 percent of the civilian labor force in areas of substantial unemployment in such State.
(VII)
Low-income level
The term “low-income level” means $7,000 with respect to income in 1969, and for any later year means that amount that bears the same relationship to $7,000 as the Consumer Price Index for that year bears to the Consumer Price Index for 1969, rounded to the nearest $1,000.