Workforce Investment Act- National Emergency Grants (Wausau Paper)

Award Description: Wausau Paper in Jay, Maine has laid off 242 employees. Maine Department of Labor (MDOL)Rapid Response Representatives contacted the company and established a series of sessions to meet with the employees. Due to the high unemployment rate, many of these workers understand that retraining is a necessity to succeed; subsequently the number who need support services will be high. National Emergency Grant - ARRA funding is targeted to assist these workers in returning to meaningful and productive employment. MDOL is focusing the use of Recovery funds on retraining eligible workers in the areas of energy, green jobs and weatherization. In addition, MDOL is also investing in post-secondary training opportunities within the growing sectors of information technology and health care. This grant closed Sept 20, 2011 with $22,303 unspent.

Project Name: Workforce Investment Act- National Emergency Grants (Wausau Paper)

Quarterly Activities Description: There were no award activities during quarter ending September 30, 2011. Expenditures paid this quarter related to activities that occurred during previous quarters. The unspent grant award totaled $22,303. No further expenditures will be made from this grant. The underexpenditures related to ARRA NEGs is due to several issues. First, the NEG approval process is generally quite protracted. It usually takes several months for the initial request to be approved. Workers often become discouraged and opt to return to work rather than wait until training funds become available. The second issue that tends to affect NEG spending is that workers who enroll in training frequently do not complete their program, particularly if they are recalled back to work. Despite these factors which impact expenditures, USDOL does not have a mechanism for returning unspent funds before the projects are completed.