UIPL_17-21.pdf

ETA Advisory File Text

EMPLOYMENT AND TRAINING ADMINISTRATION ADVISORY SYSTEM U.S. DEPARTMENT OF LABOR Washington D.C. 20210 CLASSIFICATION UI CORRESPONDENCE SYMBOL OUI DFAS DATE April 27 2021 ADVISORY TO UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 17-21 STATE WORKFORCE AGENCIES FROM SUZAN G. LEVINE Principal Deputy Assistant Secretary SUBJECT Guidelines for Fiscal Year FY 2021 State Agency Unemployment Insurance UI Resource Allocations Supplemental Budget Requests SBRs and Above-Base Funding 1. Purpose. To provide information to states about FY 2021 UI State Administration base resource allocations general guidelines for resource planning above-base funding and SBRs. 2.Action Requested. State Administrators are requested to provide copies of this Unemployment Insurance Program Letter UIPL to the appropriate staff. 3.Summary and Background. The Consolidated Appropriations Act 2021 Pub. L. 116- 260 which was enacted on December 27 2020 provides the U.S. Department of Labor Department with FY 2021 appropriations for state UI operations. The final appropriation did not include funding for a program initiative the Department had included in the FY2021 Budget requesting 90 million for state integrity funding. However the appropriation does increase the funding for the regular state administration activities and maintains the average weekly insured unemployment AWIU trigger at 1 728 000. The table below summarizes the AWIU levels and dollar amounts corresponding to the FY 2021 President s Budget request and the FY 2021 appropriation.Summary of FY 2021 UI Budget Authority Budget Request Appropriation Difference AWIU Contingency Trigger 1 728 000 1 728 000 0 State Administration 2 446 686 000 2 365 816 000 - 80 870 000 State Administration workload 2 356 686 000 2 365 816 000 9 130 000 State Administration integrity 90 000 000 0 - 90 000 000 RESEA Integrity 200 000 000 200 000 000 0 National Activities 18 000 000 18 000 000 0 Total 2 664 686 000 2 583 816 000 - 80 870 000 RESCISSIONS EXPIRATION DATE None September 30 2024 2 The appropriation allows these funds to be available for obligation by the states through December 31 2021 except that funds used for automation or competitive grants awarded to states for improved operations and to conduct in-person reemployment and eligibility assessments and unemployment insurance improper payment reviews and to provide reemployment services and referrals to training as appropriate are available for obligation by the states through September 30 2023. If the automation is being carried out through a consortium of states the states must obligate funds by September 30 2027 and expend them by September 30 2028. Funding for the Unemployment Insurance Integrity Center of Excellence is available for obligation by the state through September 30 2022. 4. Guidance. Final Base Administration Allocations. The final FY 2021 base allocations are identical to the planning targets developed at a 1 600 000 AWIU level as published in UIPL No. 02- 21 Change 1. The attached table shows the total full-year base allocations for each state in FY 2021. Above-Base Administration. a. Above-Base and Contingency Funding. The Employment and Training Administration ETA estimates the FY 2021 appropriation to be sufficient to provide adequate resources for workloads associated with an AWIU of 1 728 000. Using current economic assumptions the Department projects an AWIU of 4 267 000 for FY 2021. Assuming this level of claims materializes the AWIU contingency language contained in the FY 2021 State Unemployment Insurance and Employment Service Operations SUIESO appropriation would provide for an additional 726 154 000 being made available to support above-base administration expenses. b. Pandemic Emergency Unemployment Compensation PEUC . Administrative costs for the PEUC program will continue to be based on quarterly PEUC workloads and funded through the UI-3 reports submitted by state agencies. Because the PEUC program was enacted after submission of the Office of Management and Budget OMB Report to the Congress on the Joint Committee Reductions for FY 2021 PEUC administrative costs are not subject to sequestration. c. Support. The overhead for above-base state UI Trade Readjustment Assistance TRA Alternative Trade Adjustment Assistance ATAA and Reemployment Trade Adjustment Assistance RTAA administration remains at 19 percent. d. Postage. Since FY 2007 ETA has provided above-base funding for postage directly to state workforce agencies based on the amount of weeks claimed workload not included in the base allocations. During FY 2020 the postage rate had to be reduced in order to keep above-base distributions within the limits of the appropriation. Given the unprecedented volatility in the workload volumes being experienced and reported by 3 state agencies for FY 2021 ETA will withhold postage distributions from the first and second quarter above-base distributions. Shortly thereafter an assessment will be conducted to determine the appropriate postage funding rate for FY 2021. e. Trade Readjustment Allowance TRA Redeterminations. Currently there are no court decisions on the TRA program that would require the states to make monetary redeterminations. If one occurs states must follow the UI-3 reporting instructions in Employment and Training ET Handbook No. 336 18th Edition Change 4. Supplemental Budget Requests SBRs . Instructions for SBRs are provided mostly through UIPLs. The State Quality Service Plan Handbook also contains SBR instructions and procedures for SBRs. Pending funding availability states may submit a Standard Form SF 424 OMB Approval No. 4040-0004 and SF 424A OMB Approval No. 0348-0444 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. FY 2021 funding for Reemployment Services and Eligibility Assessments RESEAs will be provided to states to administer these activities in accordance with UIPL No. 13-21 and each state s approved FY 2021 RESEA state plan. b. Submission Requirements. To achieve greater efficiency and as part of ETA s ongoing effort to streamline the grant award process SBR submissions must be made using an electronically signed copy of the SF-424 Application for Federal Assistance and the SF-424A Budget Information for Non-Construction Programs through Grants.gov https www.grants.gov web grants forms.html . Additional information on use of Grants.gov for SBR submission will be included in any guidance announcing SBR opportunities. c. Travel. Travel dollars are available for Benefit Accuracy Measurement Peer Reviews National Review of States UI Appeals Quarterly Self-Evaluations and Tax Performance System reviews. States should provide travel estimates and reimbursement requests to the appropriate Regional Office rather than submitting an SF 424 for these travel dollars. Nationally Funded Activities. As provided in the SUIESO appropriation the Department will make payments on behalf of the states to the entities operating the National Directory of New Hires and the State Information Data Exchange System for use by the states. State Flexibility. All state UI administrative grant funds must be used in accordance with Section 303 a 8 of the Social Security Act SSA and the cost principles contained in 2 C.F.R. Part 200 and 2 C.F.R. Part 2900. Beyond this states have discretion to expend these grant funds as they deem appropriate and necessary to manage and operate their UI programs to meet established goals and requirements within the parameters of the SSA and the appropriation. The only caveat is that states must use the annual allocated staff-year 4 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. This flexibility does not pertain to funding issued for special projects or SBRs funding for these purposes must be spent in accordance with the spending plans approved for these respective projects. 5. Inquiries. Questions are to be submitted to the appropriate ETA Regional Office. 6. References. Section 303 a 8 of the Social Security Act codified at 42 U.S.C. Section 503 a 8 Consolidated Appropriations Act 2021 Public Law Pub. L. 116-260 2 C.F.R. Part 200 Uniform Administrative Requirements Cost Principles and Audit Requirements for Federal Awards Final Rule 2 C.F.R Part 2900 Uniform Administrative Requirements Cost Principles and Audit Requirements for Federal Awards U.S. Department of Labor Office of Management and Budget OMB Report to the Congress on the Joint Committee Reductions for Fiscal Year 2021 February 10 2020 Unemployment Insurance Program Letter UIPL No. 13-21 Fiscal Year FY 2021 Funding Allotments and Operating Guidance for Unemployment Insurance UI Reemployment Services and Eligibility Assessments RESEA Grants issued January 19 2021 Unemployment Insurance Program Letter UIPL No. 02-21 and Change 1 Fiscal Year FY 2021 State Workforce Agency Unemployment Insurance UI Resource Planning Targets and Guidelines issued October 26 2020 UIPL No. 12-21 Implementation of Sequestration under the Budget Control Act of 2011 BCA for Mandatory Unemployment Insurance Programs for Fiscal Year 2021 issued January 19 2021 UIPL No. 29-20 Additional Planning Guidance for the Fiscal Year FY 2021 Unemployment Insurance UI State Quality Service Plan SQSP issued September 14 2020 and Employment and Training ET Handbook No. 336 18th Edition March 2019 Unemployment Insurance State Quality Service Plan SQSP Planning and Reporting Guidelines. 7. Attachment. Attachment I State UI Base Administrative Grants FY 2021. State UI Base Administrative Grants - FY 2021 Attachment I Administration Postage Total Base National Total 2 145 637 000 106 095 000 2 251 732 000 Alabama 23 057 591 1 024 679 24 082 270 Alaska 20 039 507 462 010 20 501 517 Arizona 29 499 223 1 450 055 30 949 278 Arkansas 16 154 745 769 856 16 924 601 California 279 447 515 19 123 149 298 570 664 Colorado 30 181 641 1 578 915 31 760 556 Connecticut 38 992 604 1 905 133 40 897 737 Delaware 7 096 162 332 792 7 428 954 Dist. of Columbia 8 096 036 456 690 8 552 726 Florida 71 200 923 3 401 048 74 601 971 Georgia 48 481 676 1 943 840 50 425 516 Hawaii 11 911 543 424 804 12 336 347 Idaho 12 541 511 482 908 13 024 419 Illinois 124 827 316 5 388 642 130 215 958 Indiana 32 813 370 1 380 621 34 193 991 Iowa 21 649 486 1 158 812 22 808 298 Kansas 16 021 192 733 750 16 754 942 Kentucky 23 974 377 1 100 718 25 075 095 Louisiana 23 029 733 1 000 426 24 030 159 Maine 11 940 424 418 604 12 359 028 Maryland 44 544 947 1 804 199 46 349 146 Massachusetts 51 494 563 3 465 336 54 959 899 Michigan 108 759 567 3 054 381 111 813 948 Minnesota 35 255 440 2 220 007 37 475 447 Mississippi 16 157 192 573 804 16 730 996 Missouri 32 205 054 1 588 564 33 793 618 Montana 7 322 457 445 039 7 767 496 Nebraska 12 711 580 421 983 13 133 563 Nevada 20 905 801 1 031 915 21 937 716 New Hampshire 9 774 405 290 741 10 065 146 New Jersey 97 265 944 4 861 697 102 127 641 New Mexico 11 677 290 588 569 12 265 859 New York 151 965 830 7 906 091 159 871 921 North Carolina 43 973 063 1 633 992 45 607 055 North Dakota 6 230 753 315 550 6 546 303 Ohio 58 622 086 3 085 328 61 707 414 Oklahoma 19 215 342 973 703 20 189 045 Oregon 42 831 308 1 576 673 44 407 981 Pennsylvania 111 031 413 5 900 513 116 931 926 Puerto Rico 11 158 950 1 039 809 12 198 759 Rhode Island 11 767 705 492 098 12 259 803 South Carolina 24 197 589 961 722 25 159 311 South Dakota 4 381 216 176 481 4 557 697 Tennessee 30 375 444 1 027 069 31 402 513 Texas 127 609 152 7 829 936 135 439 088 Utah 20 551 196 657 154 21 208 350 Vermont 6 376 576 257 282 6 633 858 Virgin Islands 1 522 334 32 159 1 554 493 Virginia 32 601 171 1 796 711 34 397 882 W ashington 69 773 567 2 778 286 72 551 853 W est Virginia 9 883 501 608 281 10 491 782 W isconsin 55 521 613 1 920 388 57 442 001 W yoming 7 016 376 242 087 7 258 463 I-1