FY 2005 UI performance and FY 2006 targets

Signed letter (https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2006/TEGL24-05.pdf):

EMPLOYMENT AND TRAINING ADMINISTRATION ADVISORY SYSTEM
U.S. Department of Labor, Washington, D.C. 20210
CLASSIFICATION: UI
CORRESPONDENCE SYMBOL: OWS/DPM
DATE: April 10, 2006
ADVISORY: TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 24-05
TO: STATE WORKFORCE AGENCIES; STATE WORKFORCE LIAISONS
FROM: EMILY STOVER DeROCCO, Assistant Secretary
SUBJECT: Government Performance and Results Act (GPRA) Unemployment Insurance (UI) Program Goals: Fiscal Year (FY) 2005 Performance and FY 2006 Performance Targets
RESCISSIONS: None
EXPIRATION DATE: April 10, 2007

1. Purpose. To summarize the UI program’s GPRA performance for FY 2005 and announce the FY 2006 GPRA goals and targets.

2. References. Unemployment Insurance Program Letter (UIPL) No. 25-05, “Call Memo for the Fiscal Year (FY) 2006 Unemployment Insurance (UI) State Quality Service Plan (SQSP);” UIPL No. 33-02, “Development of an Unemployment Insurance Payment Accuracy/Integrity Measure;” UIPL No. 15-03, “Government Performance and Results Act (GPRA) Fiscal Year (FY) 2004 Unemployment Insurance (UI) Program Goals;” Training and Employment Guidance Letter (TEGL) No. 04-04, “Government Performance and Results Act (GPRA) Unemployment Insurance (UI) Program Goals: Fiscal Year (FY) 2003 Performance and FY 2004 Performance Targets;” UIPL No. 1-06, “Collection of Data on the Facilitation of Reemployment of Unemployment Insurance (UI) Benefit Recipients.”

3. Background and FY 2005 Performance. The Employment and Training Administration (ETA) included four performance goals for the UI program as part of its GPRA plan for FY 2005. These performance goals have been in place since 2003. Data are available to compute measured performance for three of the goals. One performance target was met and performance improved from FY 2004 for the two targets that were not attained. During FY 2005, the Office of Management and Budget authorized the data collection for the fourth goal, “Facilitate Reemployment,” and the Department expects to begin the data collection during 2006. ETA also introduced an efficiency measure for FY 2005.

The goals and performance during FY 2005 were as follows:

• Payment Timeliness. Target: 89.9% of all intrastate first payments will be made within 14/21 days.
  • Actual performance for FY 2005: 89.3% were made within 14/21 days. Although below the target, this was up from 88.7% in FY 2004. It is estimated that this goal would have been attained except for the effects of hurricanes in Florida early in the fiscal year and the Gulf hurricanes at the end of the year.

First Payment Timeliness [chart]
Series: Percent of First Payments made within 14/21 days; GPRA Target; Number of New Initial Claims Filed (right scale). Horizontal axis: March 2001 through September 2005. Left scale: 87%–92%; right scale: 9–14 million. Each data point represents the one year period up to and including the given month.

• Establish Tax Accounts Promptly. Target: 82.4% of new-employer status determinations will be made within 90 days of the end of the first quarter in which liability occurred.
  ○ Actual performance for FY 2005: 82.4% were made within 90 days. Although the target was met, the percentage of timely status determinations actually decreased slightly between FY 2004 and FY 2005, an expected consequence of improving economic conditions which increased new status determination workload.

Timeliness of New Employer Status Determinations [chart]
Series: Percent of New Employer SDs made within 90-days of quarter ending date; GPRA Target; Number of New Employer Status Determinations (right scale). Horizontal axis: March 2001 through September 2005. Left scale: 77%–85%; right scale: 8–10 million. Each data point represents the one year period up to and including the given month.

• Detect Benefit Overpayments. Target: Establish for recovery 59.5% of the Benefit Accuracy Measurement estimate of recoverable dollar overpayments most detectable through state operations.
  • Actual performance for FY 2005: 58.8% were actually established. Although performance fell slightly short of the target, it represented improvement from FY 2004’s 57.4% detection ratio and the 56.1% attained in FY 2003.

Detection of Overpayments [chart]
Series: GPRA Ratio (amt. established by BPC to BAM estimated operational overpayment amt.); GPRA Target; Number of Continued Weeks Claimed (right scale). Horizontal axis: March 2001 through September 2005. Left scale: 50%–70%; right scale: 50–250 million. Each data point represents the one year period up to and including the given month.

• Facilitate Claimant Reemployment. Target: Obtain data collection authority and issue reporting instructions for the reemployment rate measure.
  ○ During 2005, the Department received approval under the Paperwork Reduction Act to have states collect data for the reemployment measure, defined as the percentage of persons receiving a UI first payment in one quarter who then appeared in the state’s UI wage records in the subsequent quarter. States will submit data for the most recent four quarters in March 2006 (and earlier data, if available). These data will be used to establish a baseline and set performance targets for FY 2007.

• Efficiency. Target: Make at least 8.55 quality-weighted initial claims per $1,000 of inflation-adjusted base grant funds.
  ○ Actual performance for FY 2005: During FY 2005, 8.6 quality-weighted claims were made per $1,000 of inflation-adjusted base grants. The quality dimension of this measure, first developed in FY 2004, is a weighted average of the percentages of timely and accurate payments.

The Department’s Performance and Accountability Report includes the FY 2005 results. It can be found at http://www.dol.gov/_sec/media/reports/annual2005/annualreport.pdf.

4. FY 2006 GPRA Goals and Targets. The table below gives the goals and targets for FY 2006.

FY 2005 GPRA Targets and Performance and FY 2006 Targets
Goal and Indicator                                    FY 2005 Target   FY 2005 Actual   FY 2006 Target
Payment Timeliness: Percent of Intrastate First
  Payments Made Within 14/21 Days                         89.9             89.3             89.9
Establish Tax Accounts Promptly: Percent of New
  Employer Liability Determinations made within 90
  days of the end of the first quarter in which they
  become liable                                           82.4             82.4             82.5
Detect Overpayments: Establish for recovery a percent
  of the amount of estimated overpayments that states
  can detect and recover                                  59.5             58.8             59.5
Facilitate Reemployment: Percent of UI claimants who
  were reemployed by the end of the first quarter after
  the quarter in which they received their first payment   N/A              N/A              TBD
Efficiency: quality-weighted initial claims per
  $1,000 of inflation-adjusted base grant funds           8.55             8.60              8.7

The FY 2006 targets are in the Department’s FY2007 Performance Budget Overview, found at http://www.dol.gov/_sec/Budget2007/overview-pb.htm#app1.

5. Actions. State Workforce Agency administrators and liaisons are requested to:
  a. Distribute this advisory to appropriate staff;
  b. Review state performance on each performance goal;
     1. If performance is below the 2006 target, focus management attention on improvement; seek technical assistance from the ETA Regional Office as appropriate; or
     2. If state performance meets or exceeds the goal, ensure that performance is sustained or improved.

6. Inquiries. Direct questions to the appropriate Regional Office.

7. Attachment: Performance on GPRA Indicators by State, FY 2005.

Attachment
Performance on GPRA Indicators by State, FY 2005
State   Intrastate First Payment Timeliness 14/21 days   Status Determination Timeliness New Employer 90 Days   Detection of Overpayments
        (Target: 89.9%)                                (Target: 82.4%)                                  (Target: 59.5%)
AK      91.3%                                           81.6%                                            46.5%
AL      93.0%                                           89.3%                                            41.7%
AR      92.3%                                           87.2%                                            18.0%
AZ      87.7%                                           34.1%                                            40.8%
CA      82.9%                                           89.9%                                            52.1%
CO      89.3%                                           95.2%                                            47.0%
CT      92.0%                                           86.8%                                            48.1%
DC      86.9%                                           83.2%                                            32.5%
DE      94.2%                                           77.5%                                            23.0%
FL      86.8%                                           76.0%                                            79.7%
GA      91.7%                                           92.2%                                            97.6%
HI      90.8%                                           89.9%                                            45.1%
IA      90.6%                                           72.3%                                            50.0%
ID      96.7%                                           90.5%                                            62.9%
IL      91.4%                                           71.2%                                            60.3%
IN      84.9%                                           85.3%                                            82.3%
KS      90.3%                                           72.5%                                            37.5%
KY      92.7%                                           87.7%                                            59.5%
LA      83.9%                                           83.8%                                            49.0%
MA      82.6%                                           81.9%                                            44.0%
MD      94.8%                                           77.9%                                           164.1%*
ME      91.8%                                           82.5%                                           163.8%*
MI      88.8%                                           81.5%                                            58.8%
MN      90.1%                                           86.2%                                            54.3%
MO      85.9%                                           77.6%                                            58.6%
MS      85.7%                                           82.8%                                            78.2%
MT      95.3%                                           91.7%                                            25.8%
NC      83.2%                                           76.5%                                            86.1%
ND      98.4%                                           78.4%                                            65.1%
NE      97.0%                                           83.3%                                            53.3%
NH      87.0%                                           84.6%                                            57.6%
NJ      91.0%                                           78.1%                                            43.0%
NM      83.6%                                           56.6%                                            48.9%
NV      90.1%                                           90.9%                                            24.0%
NY      91.6%                                           90.1%                                            76.5%
OH      95.0%                                           90.2%                                            53.3%
OK      92.3%                                           81.4%                                            83.9%
OR      91.2%                                           83.7%                                            34.4%
PA      92.3%                                           74.6%                                            58.1%
PR      95.3%                                           55.9%                                            38.9%
RI      87.0%                                           96.3%                                            51.1%
SC      92.6%                                           88.0%                                            29.5%
SD      97.6%                                           86.4%                                            78.5%
TN      93.1%                                           81.7%                                            65.1%
TX      90.9%                                           82.6%                                           100.9%*
UT      98.1%                                           91.6%                                            85.7%
VA      89.2%                                           81.0%                                            45.9%
VI      76.8%                                           92.8%                                               NA
VT      96.2%                                           77.6%                                           201.9%*
WA      91.3%                                           91.6%                                           135.5%*
WI      94.6%                                           72.4%                                            62.1%
WV      93.5%                                           87.9%                                            68.3%
WY      91.3%                                           86.1%                                            42.6%
US      89.3%                                           82.4%                                            58.8%

* Data used to compute these ratios are under review.