Federal Stimulus Information > How Funds are Distributed

How ARRA Funds are Distributed

A federally mandated process was used to determine the distribution of funds for the American Recovery and Reinvestment Act of 2009.

  1. The first one-third distribution of all allocations is derived from the 2000 Census table of persons living below poverty by age for each parish. The Adult and Dislocated Worker poverty population data used the 22- through 72-year-old age groups. The Youth poverty population used the 16-21 year old age group for the Recovery Act allocations.
  2. The Louisiana Workforce Commission Research & Statistics Unit ran two 12-month labor force files. One was for the time period July 2007 through June 2008 for the current program year, which is used in the Adult and Youth allocations. The second file was for January through December 2008 program year for the Recovery Act dollars for the Dislocated Worker allocations, as outlined in the TEGL. In all prior years, the Dislocated Worker program used data from the October through September program year. The labor force files provide labor force, employed, unemployed, excess unemployed and unemployment rates by parish and for the City of Shreveport.
  3. The data provided by the labor force program are then evaluated using the following criteria:
    • Parishes with an unemployment rate of 6.5 percent or above will receive the unemployed one-third part of the WIA formula and the one-third part of the excess unemployed part of the formula using the straight number of unemployed and the number of excess unemployed.
    • If there are any parishes that do not meet the above criteria because their unemployment rate is 6.4 percent or below, then the ASU (Area of Substantial Unemployment) formula is used to see if an area will qualify for money by using the 2000 Census data. This method uses data at the census tract level and creates ASUs within each parish that had an unemployment rate below 6.5 percent.
    • An ASU is a specified geographical area that has to have a population minimum of 10,000 people. Census tracts used to form an ASU must be contiguous with each other within that parish, have a sufficient level of population and form a new ASU unemployed figure. Census maps are used to determine which tracts are contiguous within each parish boundary.
    • After forming an ASU meeting the above population requirements, the labor force for employed, unemployed, excess unemployed and new ASU unemployment rate are computed to see if the new ASU area’s unemployment rate is 6.5 percent or above. If so, the new data for ASU number unemployed and ASU excess unemployed are used in the allocation formula for that parish.
  4. If the unemployment rate is below 4.5 percent after everything has been done with using ASUs, the parish will not receive the unemployed or excess one-third shares of the allocation. Parishes or ASU areas with unemployment rates between 6.4 percent and 4.5 percent will receive the one-third excess unemployed amount.