Broader RESEA eligibility under FY 2017 grants

CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                UI
               ADVISORY SYSTEM                           CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR                       OUI/DUIO
             Washington, D.C. 20210                      DATE
                                                         September 22, 2017


ADVISORY:        UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 03-17,
                 Change 1

TO:              STATE WORKFORCE AGENCIES

FROM:            BYRON ZUIDEMA /s/
                 Deputy Assistant Secretary

SUBJECT:         Fiscal Year (FY) 2017 Unemployment Insurance (UI) Reemployment Services
                 and Eligibility Assessment (RESEA) Grants

1. Purpose. To provide State Workforce Agencies with increased flexibility to provide RESEA
   grant activities to UI claimants in addition to the targeted populations.

2. References.

           5 U.S.C. sections 8521 to 8525;
           Consolidated Appropriations Act, 2017 (Pub. L.115-31);
           Explanatory Statement accompanying the Consolidated Appropriations Act, 2017
            (Pub. L.115-31);
           163 Cong. Rec. No. 76, Book III (May 3, 2017);
           Unemployment Insurance Program Letter (UIPL) No. 3-17, Fiscal Year (FY) 2017
            Unemployment Insurance (UI) Reemployment Services and Eligibility Assessment
            (RESEA) Grants;
           UIPL No. 7-16, Fiscal Year (FY) 2016 Unemployment Insurance (UI) Reemployment
            Services and Eligibility Assessment (RESEA) Grants;
           UIPL No. 13-15, Fiscal Year (FY) 2015 Unemployment Insurance (UI)
            Reemployment Services and Eligibility Assessment (RESEA) Grants; and
           UIPL No. 13-15, Change 1, Fiscal Year (FY) 2015 Unemployment Insurance (UI)
            Reemployment Services and Eligibility Assessment (RESEA) Grants: Questions and
            Answers.

3. Background. Since the implementation of the RESEA model in FY 2015, RESEA funded
   activities have targeted two populations: (1) UI claimants determined to be most likely to
   exhaust benefits under the methods established for the state’s Worker Profiling and
   Reemployment Services (WPRS) program; and (2) to the greatest extent feasible,
   transitioning veterans receiving Unemployment Compensation for Ex-Servicemembers
   (UCX). On December 8, 2016, the U.S. Department of Labor’s Employment and Training

 RESCISSIONS                                            EXPIRATION DATE
 None                                                   Continuing

   Administration (ETA) published UIPL No. 3-17 providing guidelines for FY 2017 RESEA
   grants and inviting State Workforce Agencies to submit proposals for funding. FY 2017
   RESEA grant proposals were developed, reviewed, and approved in the context of serving
   the two populations identified above.

   The Consolidated Appropriations Act, 2017, enacted on May 5, 2017, provides in part:

       “$115,000,000 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, for claimants of
       unemployment insurance for ex-service members under 5 U.S.C. 8521 et. seq. and
       for claimants of regular unemployment compensation, including those who are
       profiled as most likely to exhaust their benefits in each State…”

   The accompanying Congressional explanatory statement identifies this provision’s intent as
   “clarifying flexibility for local workforce agencies to target ex-service member claimants,
   those most likely to exhaust benefits, as well as claimants from a variety of backgrounds and
   lengths of time receiving benefits as local officials deem necessary based on local needs.”

   ETA interprets the described additional flexibility as supplementing and not supplanting
   services to UI claimants determined most likely to exhaust benefits and transitioning veterans
   receiving UCX. We recognize that in the current labor market and the very low UI claims
   activity, some states are having challenges meeting their projected RESEA activities. State
   Workforce Agencies must continue to serve these two targeted populations as required by
   UIPL No. 3-17 and described in their approved FY 2017 RESEA grant proposals. However,
   states that have capacity at the current funding levels to serve additional UI claimants after
   offering services to the aforementioned targeted populations may request a modification to
   their current FY 2017 RESEA grant to serve additional UI claimants beyond the target
   populations. Instructions for submitting a modification request are provided in Section 4 of
   this UIPL.

   States have significant discretion in identifying additional claimant populations. However,
   proposed expansions to additional UI claimants must be supported by local labor market
   information, economic trends, and other available data. Examples of possible additional
   claimant populations include, but are not limited to:
        claimants in rural areas;
        claimants who are approaching the end of their UI benefits;
        claimants from specific industries or sectors; and
        claimants from areas with higher than average unemployment rates.

4. Requirements for Grant Modification. States that wish to serve additional claimants
   beyond UI claimants determined most likely to exhaust benefits and transitioning veterans
   receiving UCX must submit a grant modification request to the appropriate ETA Regional
   Office. Modification requests must be reviewed and approved by ETA prior to any service


   expansion, and states are strongly encouraged to submit requests as soon as possible to allow
   sufficient time for both ETA’s review and the state’s planned activities. This request must
   include:

    1. A letter from the state UI or State Workforce Agency director that:
          a. Formally requests the modification;
          b. Identifies the additional claimant population(s) that will be served;
          c. Provides a brief description of any analysis or data used to select the targeted
              population(s), including local labor market information, economic trends, and
              other available data; and
          d. Provides any necessary modification to the FY 2017 RESEA period of
              performance, if applicable.

    2. An updated FY 2017 RESEA Proposal reflecting any necessary changes related to service
      delivery, projected outcomes, and/or planned budget expenditures (See UIPL No. 3-17,
      Section 13, for the list of proposal requirements).

   Obligations must be liquidated within 90 days following the end of performance period. No
   additional funding is available to support proposed expansions and only “no-cost
   modifications” will be considered.

5. Inquiries. Please direct questions to the appropriate ETA Regional Office.