Fiscal year 2012 state unemployment insurance administration funding

uipl_12_12_acc.pdf (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2012/uipl_12_12_acc.pdf)

                                                           CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                  UI
               ADVISORY SYSTEM                             CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR                         OUI/DFAS
             Washington, D.C. 20210                        DATE
                                                           March 9, 2012

ADVISORY:         UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 12-12

TO:               STATE WORKFORCE AGENCIES

FROM:             JANE OATES /s/
                  Assistant Secretary

SUBJECT:          Guidelines for Fiscal Year (FY) 2012 State Agency Unemployment Insurance
                  (UI) Resource Allocations and Above-Base Funding

1. Purpose. To provide information to states regarding FY 2012 UI State Administration base
   resource allocations, above-base funding, and general guidelines for resource planning.

2. References.
     ET Handbook No. 336, 18th Edition, Change 2 (December 2009), Unemployment
       Insurance State Quality Service Plan (SQSP), Planning and Reporting Guidelines;
     Unemployment Insurance Program Letter (UIPL) No. 25-11, Fiscal Year (FY) 2012 State
       Workforce Agency Unemployment Insurance (UI) Resource Planning Targets and
       Guidelines;
     UIPL No. 21-11, Additional Planning Guidance for the Fiscal Year (FY) 2012
       Unemployment Insurance (UI) State Quality Service Plan (SQSP); and
     Office of Management and Budget (OMB) Circular a-87 (Revised), 2 CFR part 225.

3. Appropriation. The FY 2012 consolidated spending bill that included the appropriations for
   state UI operations (Public Law 112-74) was enacted on December 23, 2011. Congressional
   action included a rescission of 0.189 percent. The table below shows the average weekly
   insured unemployment (AWIU) levels and the dollar amounts of the President’s Budget
   request, the FY 2012 appropriation, and the difference.

                                        Budget Request            Appropriation       Difference
   AWIU Contingency Trigger                   4,832,000                4,832,000              0
   State Administration                  $3,205,610,000           $3,165,141,619   -$40,468,381
   Reemployment and Eligibility
   Assessments (REAs)                        $70,000,000             $59,905,500   -$10,094,500
   National Activities                       $11,310,000             $11,265,668       -$44,332
   Total                                  $3,286,920,000          $3,236,312,787   -$50,607,213




  RESCISSIONS                                         EXPIRATION DATE
  None                                                March 9, 2013


  The appropriation allows for these funds to be available for obligation by the states through
  December 31, 2012, except that funds used for automation acquisitions or competitive grants
  awarded to states for improved operations, or reemployment and eligibility assessments and
  improper payments, shall be available for obligation by the states through September 30, 2014.

4. Final Base Allocations. The final FY 2012 State UI base administration allocations are
   identical to the planning targets.

5. Above-Base Administration.

   a. Above-Base and Contingency Reserve. One hundred percent reimbursement for above-
      base administrative expenses is provided under the FY 2012 appropriation. Based on the
      most recent economic projections, it is not expected that actual workloads will approach
      the 4,832,000 AWIU contingency reserve trigger. Hence, to the extent possible,
      reductions to allocation factors impacting above-base funding will be restored at the end
      of the fiscal year.

   b. Emergency Unemployment Compensation (EUC). EUC administrative costs will
      continue to be based on quarterly EUC workloads and funded through the UI-3 process.

   c. Support. The overhead for above-base State UI, Trade Adjustment Assistance,
      Alternative Trade Adjustment Assistance, and Reemployment Trade Adjustment
      Assistance administration remains at 19 percent.

   d. Postage. Above-base funding for postage will be issued to states on a quarterly basis
      using the above-base weeks claimed reported on the UI-3 reports. For any quarter, above-
      base weeks claimed will be those in excess of 25 percent of the FY 2012 base weeks
      claimed issued in the planning targets. The above-base postage will be paid at 26.9 cents
      per above base week claimed.

   e. Trade Readjustment Allowance (TRA) Redeterminations. Currently, there are no court
      decisions regarding TRA that would require the states to make monetary redeterminations.
      If one occurs, states should follow the UI-3 reporting instructions in ET Handbook No.
      336, 18th Edition.

6. Supplemental Budget Requests (SBRs). The SQSP Handbook contains SBR instructions and
   procedures that remain in place each year unless states are instructed otherwise. States may
   submit a Standard Form (SF) 424 (OMB approval #4040-0004) and SF 424A (OMB approval
   #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. Proposals from states for Reemployment and Eligibility Assessments
      grants will be solicited. States will also have the opportunity to apply for funds for other
      purposes that improve integrity, efficiency and/or IT security. Specific instructions will
      be provided to states in separate advisories.



   b. UI Performs Travel. Travel dollars are available for Benefit Accuracy Measurement Peer
      Reviews, Benefits Timeliness and Quality Nonmonetary Determinations Tripartite
      Reviews, Appeals Reviews, and Tax Performance System Reviews. States should provide
      travel estimates and reimbursement requests to the Regional Office rather than submitting
      an SF 424 for these travel dollars.

7. State Flexibility. All State UI administrative grant funds must be used in accordance with
   Section 303(a)(8) of the Social Security Act and the cost principles contained in OMB Circular
   No. A-87 (Revised), 2 CFR part 225. Beyond this, states do have discretion to expend these
   grant funds within the UI program functions as they deem appropriate and necessary to
   manage and operate their UI programs to meet established goals and requirements The only
   caveat is that states must use the annual allocated staff year 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 for special projects or supplemental budget requests: funding for these purposes must
   be spent in accordance with the spending plans approved for these respective projects.

8. Action Requested. State Administrators are requested to provide copies of this information to
   the appropriate staff.

9. Inquiries. Questions should be addressed to the appropriate Regional Office.