OFFICE OF THE GOVERNOR WILLIAM P. CLEMENTS, JR. GOVERNOR MEMORANDUM TO: Karl Rove FROM: Paul T. Wrotenbery SUBJECT: CETA Special Grants to Governors in 1982 DATE: August 20, 1981 The Omnibus Budget Reconciliation Act of 1981 amended the funding provi- sions of the Governors' Special Grants in two ways. First, it reduced the total amount of funds appropriated to the Special Grants from 12% to 10.5% of the amount available under Title II, Parts A, B & C, of CETA (Title II is the Comprehensive title). Second, it gives the Governor discretion in shifting funds among the Special Grants, so long as no Special Grant amount exceeds the amount it would have received under the 1978 CETA amendment. Special Grants and the upper limits are as follows: Upper Limit Supplemental Vocational Education (Sec. 204) 6% State Employment and Training Council (Sec. 110) 1% CETA - Vocational Education Linkage 1% Coordination and Special Services (State Services) 4%__ CETA Law TOTAL 12% Reconciliation Act TOTAL 10.5% The Reconciliation Act is an authorization to appropriate. Congress still has to appropriate funds for 1982, based upon the Reconciliation Act. Therefore, the Department of Labor does not yet have an allocation for Texas, or for the Special Grants. Currently, 1982 plans are being written on the basis of 90% of 1981 funding. According to DOL, the Governor will not be able to exercise his discretion on transferring funds among the Special Grants until the appropriation is known. TDCA and the Governor's Office should develop a decision paper for the Governor when the appropriation is known to give him the option of shifting funds among the Special Grants. The memo from the July 31, 1981, meeting is a good starting point on that. cc Rich Thomas SAM HOUSTON BUILDING • P. O. BOX 13561 • AUSTIN, TEXAS 78711