TEN 22-23 (Accessible PDF).pdf

ETA Advisory File Text

TRAINING AND EMPLOYMENT NOTICE NO. 22-23 DATE February 29 2024 EMPLOYMENT AND TRAINING ADMINISTRATION U.S. DEPARTMENT OF LABOR WASHINGTON D.C. 20210 TO STATE WORKFORCE AGENCIES FR OM B RENT PARTON s Principal Deputy Assistant Secretary SU BJECT Announcing Unemployment Insurance UI Reemployment Services and Eligibility Assessments RESEA Program Outcome Payments for Fiscal Year FY 2023 1.Purpose. To announce RESEA outcome payments for FY 2023 as required by Section 306 f 2 of the Social Security Act SSA . 2.Action Requested. The U.S. Department of Labor s Department s Employment and Training Administration ETA requests that state agency administrators provide information contained in this Training and Employment Notice TEN to appropriate staff. ETA will award outcome payments by March 31 2024. States eligible for outcome payments will be contacted via email with further instructions for receiving their outcome payments. 3. Summary and Background. a.Summary Based on the applicable FY 2023 RESEA program performance data ETA identified 43 states eligible for FY 2023 RESEA outcome payments. This TEN announces the allocation of the 37 250 923 set-aside for outcome payments as required by Section 306 f 2 SSA. b. Background The Bipartisan Budget Act of 2018 Public Law 115-123 BBA enacted on February 9 2018 amended the SSA to create a permanent authorization for the RESEA program. The RESEA provisions are contained in Section 30206 of the BBA enacting new Section 306 of the SSA. In addition to numerous new program requirements Section 306 SSA contains provisions for the funding of the RESEA program. Section 306 f SSA specifies three uses for the funding and designates the proportion of annual appropriations to be assigned to these uses 1 Base funding for states to operate the RESEA program 89 percent for fiscal years 2021 through 2026 and 84 percent for fiscal years after 2026 2 Outcome payments designed to reward states meeting or exceeding certain criteria 10 percent for fiscal years 2021 through 2026 and 15 percent for fiscal years after 2026 and 2 3 National technical assistance and research the Secretary may reserve up to one percent each year after FY 2020 . On May 7 2020 ETA published a notice in the Federal Register requesting public comment concerning the proposed methodology to distribute RESEA outcome payments to states each fiscal year after FY 2020 85 Fed. Reg. 27 249 2020 . On October 19 2021 ETA published a second notice in the Federal Register 86 Fed. Reg. 57 856 2021 announcing the final methodology to distribute RESEA outcome payments including ETA s responses to public comments received in response to the published proposed methodology identification of the data sources that would be used and a detailed description of the methodology. The October 19 2021 Federal Register notice also announced that ETA would apply an interim methodology for the evaluation of states RESEA reemployment performance. This interim methodology applied each state s Wagner-Peyser Act-funded Employment Service ES program negotiated target for the Reemployment Rate in the 2nd Quarter After Program Exit Quarter as the RESEA reemployment target. The notice explained that ETA would later transition to a statistical model for establishing RESEA-specific reemployment targets after sufficient RESEA data became available to identify develop and test an appropriate statistical approach. The Department transitioned to the permanent RESEA reemployment target methodology beginning with the FY 2022 RESEA outcome payments awarded in March 2023. 1 A webcast providing additional information about how the Department assesses states RESEA performance and determines outcome payment eligibility is available at https rc.workforcegps.org resources 2019 07 30 17 31 RESEA Performance Reporting 1 Section 306 g SSA provides the Department with authority to change the RESEA allocation formula including outcome payment methodology 90 days after Congress is notified of the proposed change. In December 2022 the Department notified Congress of the transition to a permanent regression-based statistical model for establishing RESEA reemployment targets that was based on a variety of state-level data factors including total unemployment rate unemployment compensation UC recipiency rate job openings percent change from prior year UC duration and net jobs gross job gains and gross job losses by year. The required 90-day notification period concluded on March 23 2023. ET A published TEN No. 07-23 on October 6 2023 announcing FY 2023 state-level RESEA outcome payment performance targets for the reemployment and reduced UI duration of RESEA participants. This TEN also provided states with a midyear analysis of their performance levels compared against these targets. 4. FY 2023 RESEA Outcome Payments. a. Amount and Allocation of Outcome Payments Pursuant to the FY 2023 RESEA enacted appropriation the Department set aside 37 250 923 to be used for outcome payments to states. Based on the applicable FY 2023 RESEA program performance data ETA identified 43 states eligible for FY 2023 RESEA outcome payments. The tables in Attachment 1 of this TEN identifies the allocation amounts to each qualifying state. 3 b. Allowable Use of Funds RESEA outcome payments are administered as an increase to an eligible state s current FY 2023 RESEA base-funding grant. States must utilize RESEA outcome payments under FY 2023 RESEA operating guidance. FY 2023 RESEA operating guidance was published concurrently as UIPL No. 02-23 and Training and Employment Guidance Letter TEGL No. 08-22. These guidance documents are identical other than non-substantive changes to formatting. c. Period of Performance To provide necessary time for states to obligate and expend their FY 2023 RESEA outcome payments each state receiving a FY 2023 RESEA outcome payment will also receive a grant modification extending the FY 2023 RESEA grant s period of performance. The extended period of performance allows for obligation of FY 2023 grants funds through September 30 2025 and liquidation of the funds by December 31 2025. The Department will process the period of performance extensions following the award of the FY 2023 RESEA outcome payments and does not require a separate state request to initiate this modification. This extension of the period of performance was necessitated by the time needed to collect and analyze outcome data used to determine RESEA outcome payment eligibility. A provision in the Department of Labor appropriation act for FY 2023 authorizes the Department to award FY 2023 RESEA outcome payments during FY 2024. Please note that these extensions are based on the maximum availability of FY 2023 funding and no further period of performance extensions will be granted. d. RESEA Formula and Carry-over Limitation To ensure states timely expenditure of RESEA funding the RESEA funding allocation formula limits the level of funds states may carry-over from previous fiscal years. On December 11 2023 the Department notified Congress of additional permanent modifications to the Department s implementation of the carry-over limitation. Among other things the permanent modification clarifies that states carry-over levels are assessed using base funding levels which excludes outcome payments. 3 2 2 The RESEA funding allocation formula as required by Section 306 f SSA was published on August 8 2019 in 84 Fed. Reg. 39 018. 3 In FYs 2021 and 2022 the Department applying the 306 g SSA notification process changed the formula to delay implementation of the carry-over provision to FY 2023 and then changed the formula again to temporarily- increase the carry-over limit. For additional information on the carry-over assessments and formula changes please see UIPL No. 08-24 and TEGL No. 11-23. 5. Inquiries. Ple ase direct inquiries regarding the information in this TEN to OUI.RES EA dol.gov and copy to the appropriate ETA Regional Office. 4 6. References. Section 306 of the Social Security Act SSA 42 U.S.C. 506 Consolidated Appropriations Act 2023 enacted December 29 2022 Pub. L. 117-328 84 Fed. Reg. 39018 Allocating Grants to States for Reemployment Services and Eligibility Assessments RESEA in Accordance with Title III Section 306 of the Social Security Act SSA published August 8 2019 https www.federalregister.gov documents 2019 08 08 2019-16988 allocati ng-grants-to- states-fo r-reemployment-services-and-eligib ility-assessments-resea-in 85 Fed. Reg. 27249 Notice Requesting Public Comment on the Proposed Methodology To Distribute Outcome Payments to States for the Unemployment Insurance UI Reemployment Services and Eligibility Assessments RESEA Program in Accordance With Title III Section 306 f 2 of the Social Security Act SSA published May 7 2020 https www.federalregister.gov documents 2020 05 07 2020-09803 notice-r equesting- public-co mment-on-the-proposed-methodology-to -distribute-outcome-payments-to 86 Fed. Reg. 57856 Notice Announcing the Methodology to Distribute Outcome Payments to States for the Unemployment Insurance UI Reemployment Services and Eligibility Assessments RESEA Program in Accordance with Title III Section 306 f 2 of the Social Security Act SSA published October 19 2021 https www.federalregister.gov documents 2021 10 19 2021-22704 notice-a nnouncing- the-methodology-to -distribute-outcome-payments-to-states-for -the-unemployment UIPL No. 02-23 TEGL No. 08-22 Fiscal Year FY 2023 Funding Allotments and Operating Guidance for Unemployment Insurance UI Reemployment Services and Eligibility Assessments RESEA Grants issued February 23 2023 https www.dol.gov agencies eta advisories uipl-no-02-23 TEN No. 07-23 State Performance Targets and Midyear Performance Assessment for Fiscal Year FY 2023 Unemployment Insurance UI Reemployment Services and Eligibility Assessments RESEA Outcome P ayments issued October 6 2023 h ttps www.dol.gov agencies eta advisories ten-07 -23 and UIPL No.08-24 TEGL No. 11-23 Fiscal Year FY 2024 Funding Allotments and Operating Guidance for Unemployment Insurance UI Reemployment Services and Eligibility Assessment RESEA Grants issued February 21 2024 https www.dol.gov agencies eta advisories uipl-08-24. 7.Attachment s . State Allocation of Fiscal Year 2023 Reemployment Services and Eligibility Assessments RESEA Outcome Payments