UIPL24-09acc.pdf

ETA Advisory File Text

CLASSIFICATION Unemployment Insurance CORRESPONDENCE SYMBOL OWS EMPLOYMENT AND TRAINING ADMINISTRATION ADVISORY SYSTEM U. S. DEPARTMENT OF LABOR Washington D.C. 20210 DATE May 19 2009 ADVISORY UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 24-09 TO STATE WORKFORCE AGENCIES FROM DOUGLAS F. SMALL s Deputy Assistant Secretary SUBJECT Guidelines for Fiscal Year FY 2009 State Agency Unemployment Insurance UI Resource Allocations Supplemental Budget Requests SBRs and Above-Base Funding 1. Purpose . To provide the following information for FY 2009 UI State Administration base resource allocations general guidelines for resource planning above-base funding and SBRs. 2. References . ET Handbook No. 336 18 th Edition Unemployment Insurance State Quality Service Plan SQSP Planning and Reporting Guidelines Unemployment Insurance Program Letter UIPL No. 21-08 Fiscal Year FY 2009 State Workforce Agency Unemployment Insurance Resource Planning Targets and Guidelines and UIPL No. 19-08 Call Memo for the Fiscal Year 2009 Unemployment Insurance State Quality Service Plan SQSP . 3. Appropriation . The FY 2009 omnibus spending bill that included the appropriations for State UI operations Public Law 111-8 was enacted on March 11 2009. The table below shows the average weekly insured unemployment AWIU levels and the dollar amounts of the President s Budget request and the appropriation and the difference between the two. The appropriation exceeded the amount requested in the President s Budget in order to offset the increase in the AWIU trigger from the level which the President s Budget request was based. This additional funding ensures that the appropriated funds will cover the administrative costs up to the level at which contingency funds can be provided. Budget Request Appropriation Difference AWIU Contingency Trigger 2 790 000 3 487 000 697 000 State Administration 2 583 145 000 2 782 145 000 199 000 000 REAs 40 000 000 40 000 000 0 National Activities 12 893 000 11 310 000 - 1 583 000 Total 2 636 038000 2 833 455 000 197 417 000 RESCISSIONS None EXPIRATION DATE May 19 2010 2 4. Final Base Allocations . The final FY 2009 base allocations are identical to the planning targets. 5. Above-Base Administration . a. Above-Base and Contingency Reserve . One hundred percent reimbursement for above- base administrative expenses is provided under the FY 2009 appropriation. The appropriation provides sufficient funding to support the administrative costs associated with an AWIU level of 3.487 million. In addition 28.6 million will be made available for each increment of 100 000 including a pro rata amount for any increment less than 100 000 in the AWIU above the 3.487 million level. Under current economic assumptions the FY 2009 AWIU is projected to be 5.209 million which would result in an additional 492 492 000 being apportioned as contingency reserve funds. b. Emergency Unemployment Compensation EUC . EUC administrative costs will continue to be based on quarterly EUC workloads and funded through the UI-3 process. c. Federal Additional Compensation FAC . Ongoing FAC administrative costs will be funded through the UI-3 process. Such costs should be reported on line 26 of the UI-3 report and specifically identified in the comments section of the report. d. Support . The above-base overhead remains at 19 percent. Overhead for Trade Adjustment Assistance TAA administration is also 19 percent. e. Postage . Above-base funding for postage will be issued to states on a quarterly basis using the above base weeks claimed reported on the UI-3 reports. For any quarter above-base weeks claimed will be those in excess of 25 percent of the FY 2009 base weeks claimed issued in the planning targets. The above-base postage will be paid at 24.7 cents per above base week claimed. f. Trade Redeterminations . Currently there are no court decisions regarding the TAA program that would require the states to make monetary redeterminations. If one occurs states should follow the UI-3 reporting instructions in ET Handbook No. 336 18 th Edition. 6. Supplemental Budget Requests SBRs . The SQSP Handbook contains SBR instructions and procedures that remain in place each year unless states are instructed otherwise. States may submit a Standard Form SF 424 and SF 424A for additional funds for certain types of administrative costs listed below that are not funded within the states base and above-base grants. a. Special Projects . Proposals from states for reemployment and eligibility assessments grants have been solicited. In addition states will have the opportunity to apply for funds for other purposes that improve integrity and efficiency. Specific instructions will be provided to states in separate advisories. 3 b. UI Performs Travel . Travel dollars are available for Benefit Accuracy Measurement Peer Reviews Benefits Timeliness and Quality Nonmonetary Determinations Tripartite Reviews Appeals Reviews and Tax Performance System Integrity Reviews. States should provide travel estimates and reimbursement requests to the Regional Office rather than submitting an SF 424 for these travel dollars. 7. State Flexibility . States have full authority to shift UI resources among program categories as deemed appropriate and necessary to manage and operate their UI programs to meet established goals and requirements. The only caveat is that states must use the annual allocated staff year level for claims activities for above-base reporting purposes. This ensures that states do not earn more above-base resources than they otherwise would have been entitled to earn. 8. Action Requested . State Administrators are requested to provide copies of this information to the appropriate staff. 9. Inquiries . Questions should be addressed to the appropriate Regional Office.