References. P.L. 97-300, Section 4(8) (JTPA); and Internal Revenue Code, Section 51 (TJTC). Background. JTPA regulations at 20 CFR 632.4 provide for the use of either of two sets of data in determining economically disadvantaged persons and program eligibility: the Health and Human Services Poverty Guidelines or the LLSIL. The attached Federal Register Notice (Vol. 60, No. 79) contains updated LLSIL and detailed instructions for their use, effective April 25, 1995. Action. Grantees will use one of the three tables on pages 20285 and 20286 of the Notice to find their 70 percent LLSIL for a family of four. Those grantees in one of the 25 Metropolitan Statistical Areas will use Table 3; grantees in Alaska or Hawaii will use Table 2; all other grantees will use Table 1. Grantees using Table 1 can find which region they are in by referring to the list on page 19242. Grantees using Tables 1 or 2 must also determine if they are in a metro or non-metro area; this information can be obtained from the grantee's State JTPA. Having found the applicable 70 percent LLSIL for a family of four on Tables 1, 2 or 3, the grantee can then find the 70 percent LLSIL for a family larger or smaller than four on Table 4. For example: a grantee in a non-metro area of Arizona is in the "West" region. On Table 1 its 70 percent LLSIL is 17,600. To find the applicable 70 percent for a family of six, the grantee finds 17,600 in column "four" of Table 4 and reads across that line to Column "six" to find 24,290. Grantees should note the disclaimer on page 20284 that the figures in this notice are valid only for eligibility determination under the JTPA and TJTC programs and should not be used for any statistical purposes. DINAP grantees are to disregard the instructions to Governors on page 20284 in the paragraph entitled "Use of These Data." Questions. Contact your DINAP Federal Representative.

Background: The SPIR requirements were published in the Federal Register on November 12, 1992. An advance unofficial copy of the attached document was forwarded to State JTPA Liaisons in mid-April 1993. A SPIR User Group meeting was convened in late April 1993, at which the unofficial data specifications and coding instructions were discussed in depth. While no data items have been added to the SPIR, based on these discussions, additional responses have been established for several existing items. These refinements have been made to insure that programmatic and performance standards concerns are fully addressed. SPIR Data Items for which Additional Responses have been Established: Item 12. Program of Participation 7 = Title II-A 5% exempt from performance standards 8 = Title II-C 5% exempt from performance standards Item 12a. Concurrent Participation 1 = Yes, JTPA II-a, 204(d), II-C, III 2 = Yes, JTPA 8% 3 = Yes, II-B 4 = Yes non-JTPA 5 = Yes, both JTPA and non-JTPA Item 39. Other Terminations 8 = Objective assessment only (exempt from performance standards) 9 = Objective assessment and entered unsubsidized employment only (exempt from performance standards) Item 40. Follow-up Group/Sample 1 = In adult sample and contacted 2 = In adult sample, but not contacted 3 = Not in sample 4 = In supplemental welfare sample and contacted 5 = In supplemental welfare sample, but not contacted Highlights of Additional Technical Adjustments and Refinements: Additional technical adjustments and refinements are summarized in the attached SPIR data specifications and coding instructions. Action: State Liaisons are requested to distribute this reporting guidance to all officials within the State who need such information.

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Background: An analysis of results from a survey of companies that provide payroll and/or tax filing services or that sell payroll software has lead to the conclusion that these companies do not have all the information necessary from State QCR forms, or within "Employer's Handbooks" provided by States, to be able to provide data which conforms to the State definition of monthly employment. This results in inaccurate data being submitted. Recommendation: This data is of vital importance in a number of national statistics and is used widely by the Bureau of Labor Statistics, the Department of Commerce and the Unemployment Insurance Service. Therefore, it is recommended that States add a statement such as the following to their QCR: "The monthly employment data reported on line item should be a count of all full-time and part-time workers in covered employment (subject to this State's Unemployment Compensation Law) who performed services during the payroll period which includes the 12th of the month. If no employment in the payroll period, enter zero." Further, it is recommended that this statement and more detailed information on monthly employment be included in the State's "Employer's Handbook". Action Required: State Administrators should share this information with appropriate staff. State administrators might consider forwarding inquiries on the issue to the State Labor Market Information units which should be able to respond.

References: Public Law (P.L.) 101-453 (CMIA); P.L. 102-589 (CMIA effective date extended); 31 CFR Part 205 (CMIA Final Rule), 57 Fed. Reg. 44272 (September 24, 1992); Employment Security Manual, Part V, Sections 9300-9315; ETA Handbook No. 336, 10th Edition. Background: The DOL, in consultation with the States and other interested parties, has been developing a comprehensive, integrated approach to unemployment fund cash management for an extended period. The goal of this approach is to combine modern cash management practices with the immediate deposit and limited withdrawal requirements of the Social Security Act (SSA) at Section 303(a)(4) and (5) and the Federal Unemployment Tax Act (FUTA) at Section 3304(a)(3) and (4). DOL published for comment a proposed State unemployment fund cash management program in the Federal Register on May 16, 1990. However, enactment of the CMIA compelled modifications to this program. Among other things, the CMIA amended 31 U.S.C. 6503. Section 6503(c)(3)(B) requires that "actual interest earnings" less "related banking costs" be returned to the State's account in the Unemployment Trust Fund (UTF). The Treasury Department published a proposed rule to implement the CMIA at 57 Fed. Reg. 10102 on March 23, 1992. Subpart B of that proposed rule addressed UTF issues. However, the final rule, 57 Fed. Reg. 44272, 44278-44279 deleted Subpart B. Treasury's rationale for the deletion was that Subpart B went beyond strict CMIA issues because it contained unemployment fund cash management program issues best left to DOL regulations. After publication of the final rule, the effective date of the CMIA regulations was extended to July 1, 1993, by P.L. 102-589. DOL plans to develop regulations which will spell out, subject to the constraints of the CMIA, specific requirements for State compliance with the immediate deposit and limited withdrawal requirements of the SSA and the FUTA. However, a final rule cannot be published by July 1, 1993, the effective date of the CMIA regulations. Therefore, States are provided this controlling interim guidance, which will remain in effect until the effective date of DOL regulations. States may not vary from this guidance without the prior approval of DOL. Interim Guidance and Instructions: The following sections provide interim guidance and instructions on the unemployment fund cash management program issues affected by the CMIA. All current UTF cash management requirements not addressed in the following sections remain unchanged (specifically the Desired Level of Achievement (DLA) for the deposit of funds for the UTF into State clearing accounts and the transfer of those funds to the UTF, and fund management requirements in the Employment Security Manual Sections 9300-9315). See ETA Handbook 336, 10th edition, for DLAs. Current ETA cash management reports (specifically, the ETA 8401, 8405, 8413, and 8414) will continue unchanged during the interim period. The DOL has requested the Office of Management and Budget to extend the expiration date of these reports to September 30, 1995. A. Performance Measures. State benefit payment account cash management performance is currently monitored through the Quality Appraisal (QA) process. State cash management performance is measured by a DLA. This DLA limits withdrawals from the State account in the UTF to an amount sufficient to maintain in the benefit payment account a balance equivalent to not more than one day's benefit payments. The CMIA makes this DLA obsolete; therefore this DLA is now rescinded. During the interim period, a State will be required to comply with the following: The withdrawal of funds from the State account in the UTF must adhere to the funding technique specified in the Treasury - State agreement executed under 31 CFR 205.9. In the absence of such an Agreement, the default provisions of the CMIA regulations will apply (Section 205.9(f)). Section 205.9 of the CMIA final rule describes the Federal-State Agreements and the essential components thereof. One required component is the selection and specification of a "Funding Technique" (Section 205.9(b)(2)). In effect, benefit payment account balance levels are now controlled by the permissible funding techniques described in Section 205.6 of the CMIA rule and, to support the CMIA, the focus for DOL performance measurement is changed from a benefit payment account balance amount to compliance with the stipulated withdrawal technique. B. Program Requirements. (1). Interest Earnings. States may have balances in their benefit payment account; in some cases these balances will be significant. Good cash management dictates that States take steps which ensure that benefit payment account balances provide value to the State unemployment fund through generation of interest or earnings credits which may be used to pay "related banking costs". Related banking costs are charges by commercial banks or State Treasurers for the maintenance of a State's benefit payment account relating to the drawdown of unemployment funds from the UTF and the disbursement of unemployment compensation checks or warrants. These steps must conserve the security and liquidity of unemployment funds. To this end, for the benefit payment account only, States may: (A) Use earnings credits generated by balances in benefit payment accounts, including benefit payment accounts residing with State Treasurers, to offset related banking costs for the maintenance of said benefit payment accounts. (B) Invest from the close of bank business one night to the opening of bank business the next business day in repurchase agreements in U.S. Government securities or securities backed by or insured by the full faith of the U.S. Government. Broker/Dealers used in such repurchase agreements must be subject to and in compliance with Treasury regulations issued under the Government Securities Act of 1986, at 31 U.S.C. 3121(h) and, 9110, and must conform in substance to the Public Securities Association master repurchase agreement. Interest earnings must be deposited into the State's account in the UTF unless used for the payment of related banking costs defined as stand-alone, non-credit services which are considered necessary and/or customary for sustaining an account in a financial institution, whether in a commercial institution or State Treasurer account. Investment service fees are not considered related banking costs under CMIA. See 31 CFR 205.13(i) for the description of the interest calculation process and 31 CFR 205.15(a)(6) for the annual requirements for reporting actual interest earned and related banking costs. (2). Federal Funds. Funds originating in the Federal Employees Compensation Account (FECA) and the Extended Unemployment Compensation Account (EUCA) are not subject to the same treatment provided funds withdrawn from the State's account in the UTF. Instead, FECA and EUCA funds are excluded under 31 CFR Part 205.13(i)(3) and are subject to the same conditions and requirements as other funds under the CMIA. Therefore, interest on FECA or EUCA funds must be returned to the respective account, and interest earned may not be used to pay related banking costs. (3). Tracking and Accounting for UTF funds. All State unemployment funds must be identifiable at all times, separately and completely accounted for, so that all types and volumes of transactions can be tracked as they flow through the State bank accounts. Moneys withdrawn from the State's account, the FECA, the EUCA, and the Federal Unemployment Account in the UTF may be deposited into the same benefit payment account. Separate tracking, accounting, and record keeping must be maintained for these commingled funds from the source in the UTF through redemption of the payment instrument. Related banking costs and actual interest earning on funds withdrawn from the State's account in the UTF must be allocated reasonably according to the appropriate source of funds. See 31 CFR Part 205.13. Action Required: SESA Administrators are requested to: A. Review the guidance and instructions in the UIPL; B. Implement changes that may be required due to the CMIA; C. Relay to the appropriate Regional Office any comments and concerns by July 15, 1993. States will be regularly apprised of the progress of the development of DOL regulations.

References. 20 CFR 632.4 and DINAP Bulletin 93-12. Background. The Department of Health and Human Services (DHHS) published revised poverty income guidelines in the Federal Register on February 9, 1995. The Job Training Partnership Act (JTPA) regulations at 20 CFR 632.4 provide for the use of DHHS poverty guidelines in determining economically disadvantaged persons and program eligibility. However, DHHS has definitions of "income" and "family" which are not applicable to the JTPA program. JTPA definitions can be found at 20 CFR 632.4. Action. The revised guidelines are effective from the date of this bulletin. Questions. Contact your DINAP Federal Representative.

Background: Under a Memorandum of Agreement between the Department of Labor (DOL) and the Department of Defense (DOD), DOD is funding SCA demonstration projects as agreed to by DOD and DOL. On May 12, 1992, DOL published an announcement soliciting proposals for SCA demonstration projects. Twelve demonstration grants were awarded and announced on November 12, 1992. The Department is now announcing a second solicitation of DCA demonstration grant applications to establish demonstration projects for workers dislocated or threatened with dislocation due to reduced defense expenditures. -- Demonstration Topics DOL/DOD will consider applications in the following areas: -- Dislocation Aversion -- Increased Worker Mobility -- Community Planning -- Locally Initiated Response -- Eligible Grantees Eligible grantees for demonstration projects under this announcement include States, Title III substate grantees, employers, employer associations and representatives of employees. -- Closing Date The closing date for the receipt of applications for grant awards shall be August 2, 1993, at 2 P.M. (Eastern Time). Action Required: State JTPA or Workers Adjustment Liaisons are requested to distribute the attached Federal Register notice to appropriate officials within the State.

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Background: Sections (4) (37) and 203 (b) of the amended JTPA, and item 11 of the Standardized Program Information Reporting (SPIR), have defined program participation as beginning with objective assessment. This will result in a greater number of individuals being defined as participants. At the same time, with program targeting beginning in PY 1993, larger number of hard-to-serve participants are expected to be served by the program. Such participants may begin the assessment process, but terminate from the program before receiving training or other services. To accommodate this situation and ensure that the increased program focus on serving targeted groups will proceed as intended, a change in the way in which performance against required standards is to be measured was referenced in section 628.530 of the JTPA regulations published December 29, 1992. This Information Notice clarifies that reference. Exclusions From Performance Calculations: The following categories of terminees will be excluded from calculating service delivery area (SDA) performance against PY 1993 performance standards: -- Title II-A adults/adult welfare recipients who received only objective assessment (no training or job search assistance) will be excluded from the universe for follow-up and from the follow-up sample itself. Individuals who received skills training and/or job search assistance will be included as usual. -- Title IIC youth terminees who received only objective assessment (no training or job search assistance) will be excluded from the calculation of youth performance measures. Individuals who received any skills training and/or job search assistance will be included as usual. -- The statutory references to "objective assessment" apply only to Title II; there is not provision dealing with "objective assessment" in the Title III legislation. Participants in Title III, that is, those who receive retraining or basic readjustment services under the program, will be included at termination in the universe for follow-up, in the follow-up sample itself, and in the calculation of the Title III entered employment rate. Graphic illustrations of the calculation process, with references to specific SPIR line items, are included as attachments to this TEIN. Implementing Provisions: Other performance standards implementing provisions remain unchanged. Please refer to section 6, TEGL No. 9-89, dated June 29, 1990 for these provisions. State Action: These calculation procedures are effective beginning in PY 1993 (July 1, 1993). States are to distribute this Information Notice to all relevant officials within the State responsible for implementing performance management policies and requirements for Program Year 1993.

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