Fiscal year 2015 state unemployment insurance allocations

CLASSIFICATION
  EMPLOYMENT AND TRAINING ADMINISTRATION                UI
              ADVISORY SYSTEM                           CORRESPONDENCE SYMBOL
         U.S. DEPARTMENT OF LABOR                       OUI/DFAS
            Washington, D.C. 20210                      DATE
                                                        March 4, 2015

ADVISORY:         UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 12-15

TO:               STATE WORKFORCE AGENCIES

FROM:             PORTIA WU /s/
                  Assistant Secretary

SUBJECT:          Guidelines for Fiscal Year (FY) 2015 State Agency Unemployment
                  Insurance (UI) Resource Allocations, Supplemental Budget Requests
                  (SBRs), and Above-Base Funding

1. Purpose. To provide information to states about FY 2015 UI State Administration base
   resource allocations, general guidelines for resource planning, above-base funding, and
   SBRs.

2. References.
   • Office of Management and Budget (OMB) Code of Federal Regulations (CFR) Chapter
      2, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
      Requirements for Federal Awards, Final Rule;
   • Section 303(a)(8) of the Social Security Act;
   • Consolidated and Further Continuing Appropriations Act, 2015, Public Law (Pub. L)
      113-235;
   • Department of Labor (DOL) CFR Chapter 2, Part 2900, Uniform Administrative
      Requirements, Cost Principles, and Audit Requirements for Federal Awards;
   • Unemployment Insurance Program Letter (UIPL) No. 2-15, Change 1, Implementation
      of Sequestration under the Budget Control Act of 2011 for Mandatory Unemployment
      Insurance Programs for Fiscal Year 2015;
   • UIPL No. 19-14, FY 2015 State Workforce Agency Unemployment Insurance Resource
      Planning Targets and Guidelines;
   • UIPL No. 21-14, Additional Planning Guidance for the FY 2015 Unemployment
      Insurance State Quality Service Plan (SQSP); and
   • Employment and Training (ET) Handbook No. 336, 18th Edition, Change 3 (April
      2014), Unemployment Insurance State Quality Service Plan (SQSP), Planning and
      Reporting Guidelines.

3. Appropriation. The FY 2015 consolidated spending bill that included the appropriations
   for State UI operations (Pub. L. 113-235) was enacted on December 16, 2014. The table


 RESCISSIONS                                            EXPIRATION DATE
 None                                                   September 30, 2021

   below summarizes the average weekly insured unemployment (AWIU) levels and dollar
   amounts corresponding to the FY 2015 President’s Budget request and the FY 2015
   appropriation.

   Summary of FY 2015 UI Budget Authority

                                    Budget Request     Appropriation            Difference
     AWIU Contingency Trigger              2,957,000         2,957,000                   0
     State Administration             $2,697,793,000   $2,697,793,000                    0
     REA/RES / Integrity                $157,650,000      $80,000,000        ($77,650,000)
     National Activities                 $14,547,000      $12,892,000         ($1,655,000)
     Total                            $2,869,990,000   $2,790,685,000        ($79,305,000)

   The appropriation allows these funds to be available for obligation by the states through
   December 31, 2015, except that funds used for automation acquisition or competitive grants
   awarded to states for improved operations, in-person assessments and reviews,
   reemployment services and referrals, and misclassification of workers, shall be available for
   obligation by the states through September 30, 2017. If the automation acquisition is being
   carried out through a consortium of states, it must be obligated by September 30, 2020, and
   expended by September 30, 2021. The appropriation also provides that funds from
   appropriations for FYs 2011 through 2014 allocated to consortia established for automation
   acquisition, “shall be available for expenditure by the states for six fiscal years after the
   fiscal year in which the funds were obligated to the states.”

4. Final Base Allocations. The final FY 2015 base allocations are identical to the planning
   targets. The attached table shows the total full-year base allocation to each state in FY
   2015.

5. Above-Base Administration.

   a. Above-Base and Contingency Funding. The FY 2015 appropriation is estimated to be
      sufficient to provide adequate resources for workloads associated with an AWIU of
      2.957 million. Current projections expect the FY 2015 AWIU to be 2.615 million, thus
      allowing for 100 percent reimbursement of above-base administrative expenses. If the
      actual workload levels increase above those currently projected, above- base payouts
      may be reconsidered.

   b. Emergency Unemployment Compensation (EUC). Administrative costs for the expired
      EUC program will continue to be based on quarterly EUC workloads and funded
      through the UI-3 process. EUC administrative funding is subject to sequestration as
      described in UIPL No. 2-15, Change 1.



   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 2015 base
      weeks claimed issued in the planning targets. The above-base postage will be paid at
      33.3 cents per above-base week claimed.

   e. Trade Readjustment Allowance (TRA) Redeterminations. Currently, there are no court
       decisions on the TRA program 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). Generally, instructions for SBRs are provided
   through UIPLs. The SQSP Handbook also contains SBR instructions and procedures for
   SBRs. Pending funding availability, states may submit a Standard Form (SF) 424 (OMB
   Approval No. 4040-0004) and SF 424A (OMB Approval No. 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 and
              Reemployment Services (REA/RES) grants will be solicited. If funds are
              available, states may also have the opportunity to apply for funds for other
              purposes that improve integrity, efficiency and/or information technology (IT)
              security. Specific instructions will be provided to states in separate advisories;
           Proposals for projects that improve program performance and integrity;
           Proposals for Unemployment Insurance IT modernization projects; and
           Other priority projects designed to improve state administration of the UI
              program nationally.

   b. Travel. Travel dollars are available for Benefit Accuracy Measurement Peer Reviews
      and Tax Performance System reviews. States should provide travel estimates and
      reimbursement requests to the appropriate 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 2 CFR Part
   200, and 2 CFR Part 2900. Beyond this, states have discretion to expend these grant funds
   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 issued 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.

10. Attachment. FY 2015 State UI Administration – Base Allocation Summary

ATTACHMENT

FY 2015 State UI Base Allocations

                                    Total Base Funding   State Administration         Postage
National Total                          2,539,076,001          2,418,645,000      120,431,001
Alabama                                     28,905,374            27,668,484        1,236,890
Alaska                                      23,679,434            23,160,336          519,098
Arizona                                     34,417,506            32,765,736        1,651,770
Arkansas                                    20,451,585            19,367,600        1,083,985
California                                 362,306,566           342,290,959       20,015,607
Colorado                                    35,941,378            34,005,390        1,935,988
Connecticut                                 50,025,114            47,968,000        2,057,114
Delaware                                     9,132,386             8,790,238          342,148
District of Columbia                         9,792,986             9,351,856          441,130
Florida                                     86,688,088            81,384,176        5,303,912
Georgia                                     59,532,300            56,692,289        2,840,011
Hawaii                                      14,225,480            13,742,644          482,836
Idaho                                       15,008,913            14,406,080          602,833
Illinois                                   152,916,115           147,234,424        5,681,691
Indiana                                     40,564,580            38,543,155        2,021,425
Iowa                                        24,175,402            23,068,722        1,106,680
Kansas                                      17,501,872            16,428,092        1,073,780
Kentucky                                    26,790,002            25,517,433        1,272,569
Louisiana                                   25,995,964            24,894,055        1,101,909
Maine                                       12,569,964            12,018,779          551,185
Maryland                                    55,979,097            53,782,058        2,197,039
Massachusetts                               56,712,822            53,266,797        3,446,025
Michigan                                   114,847,346           111,592,394        3,254,952
Minnesota                                   42,396,451            40,246,466        2,149,985
Mississippi                                 19,157,211            18,323,994          833,217
Missouri                                    37,098,658            35,058,795        2,039,863
Montana                                      8,586,171             8,087,526          498,645
Nebraska                                    14,409,517            13,829,227          580,290
Nevada                                      26,270,084            24,998,829        1,271,255
New Hampshire                               12,566,982            12,141,186          425,796
New Jersey                                 105,199,752           100,343,141        4,856,611
New Mexico                                  13,337,056            12,737,679          599,377
New York                                   175,101,122           165,521,824        9,579,298
North Carolina                              57,271,970            54,090,724        3,181,246
North Dakota                                 6,409,271             6,203,149          206,122
Ohio                                        82,672,948            79,372,245        3,300,703
Oklahoma                                    20,787,402            19,922,952          864,450
Oregon                                      51,125,435            49,347,756        1,777,679
Pennsylvania                               130,437,770           123,534,139        6,903,631
Puerto Rico                                 16,409,629            15,040,835        1,368,794
Rhode Island                                12,265,273            11,722,676          542,597
South Carolina                              27,640,033            26,476,645        1,163,388
South Dakota                                 5,111,161             4,954,489          156,672
Tennessee                                   33,330,134            31,806,460        1,523,674
Texas                                      126,140,414           119,564,062        6,576,352
Utah                                        25,446,899            24,689,398          757,501
Vermont                                      7,662,703             7,367,623          295,080
Virgin Islands                               1,468,715             1,424,082           44,633
Virginia                                    42,526,566            40,357,430        2,169,136
Washington                                  83,461,339            80,633,879        2,827,460
West Virginia                               12,721,311            12,082,871          638,440
Wisconsin                                   56,102,113            53,264,865        2,837,248
Wyoming                                      7,801,637             7,560,356          241,281