FY 2018 state UI administration allocations

CLASSIFICATION
  EMPLOYMENT AND TRAINING ADMINISTRATION                UI
                                                        CORRESPONDENCE SYMBOL
              ADVISORY SYSTEM
         U.S. DEPARTMENT OF LABOR
                                                        OUI/DFAS
                                                        DATE
            Washington, D.C. 20210
                                                        August 17, 2018


ADVISORY:         UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 13-18

TO:               STATE WORKFORCE AGENCIES

FROM:             ROSEMARY LAHASKY /s/
                  Deputy Assistant Secretary

SUBJECT:          Guidelines for Fiscal Year (FY) 2018 State Agency Unemployment
                  Insurance (UI) Resource Allocations, Supplemental Budget Requests
                  (SBRs), and Above-Base Funding

1. Purpose. To provide information to states about FY 2018 UI State Administration base
   resource allocations, general guidelines for resource planning, above-base funding, and
   SBRs.

2. References.
    Section 303(a)(8) of the Social Security Act;
    42 U.S.C. Section 503(a)(8);
    Consolidated Appropriations Act, 2018, Public Law (Pub. L.) 115-141;
    2 C.F.R. Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
      Requirements for Federal Awards, Final Rule;
    2 C.F.R Part 2900, Uniform Administrative Requirements, Cost Principles, and Audit
      Requirements for Federal Awards (Department of Labor);
    Office of Management and Budget (OMB) Report to the Congress on the Joint
      Committee Reductions for Fiscal Year 2018 (May 23, 2017);
    Unemployment Insurance Program Letter (UIPL) No. 17-17, Fiscal Year (FY) 2018
      State Workforce Agency Unemployment Insurance (UI) Resource Planning Targets and
      Guidelines, issued July 26, 2017;
    UIPL No. 06-18 Implementation of Sequestration under the Budget Control Act of 2011
      for Mandatory Unemployment Insurance Programs for Fiscal Year 2018, issued March
      30, 2018;
    UIPL No. 21-17, Additional Planning Guidance for the Fiscal Year (FY) 2018
      Unemployment Insurance (UI) State Quality Service Plan (SQSP), issued August 4,
      2017; and
    Employment and Training (ET) Handbook No. 336, 18th Edition (April 2014),
      Unemployment Insurance State Quality Service Plan (SQSP), Planning and Reporting
      Guidelines.


 RESCISSIONS                                            EXPIRATION DATE
 None                                                   September 30, 2023

3. Appropriation. The FY 2018 consolidated spending bill that included the appropriations
   for state UI operations (Pub. L. 115-141) was enacted on March 23, 2018. The table below
   summarizes the average weekly insured unemployment (AWIU) levels and dollar amounts
   corresponding to the FY 2018 President’s Budget request and the FY 2018 appropriation.

   Summary of FY 2018 UI Budget Authority

                                    Budget Request     Appropriation            Difference
     AWIU Contingency Trigger              2,154,000         2,246,000              92,000
     State Administration             $2,505,775,000   $2,519,600,000          $13,825,000
     RESEA / Integrity                  $130,000,000     $120,000,000        ($10,000,000)
     National Activities                 $12,000,000      $13,897,000           $1,897,000
     Total                            $2,647,775,000   $2,653,497,000           $5,722,000

   The appropriation allows these funds to be available for obligation by the states through
   December 31, 2018, except that funds used for automation or competitive grants awarded to
   states for improved operations and to conduct in-person reemployment and eligibility
   assessments and unemployment insurance improper payment reviews and provide
   reemployment services and referrals to training, as appropriate, are available for obligation
   by the states through September 30, 2020. If the automation is being carried out through a
   consortia of states, the states must obligate funds by September 30, 2023, and expend them
   by September 30, 2024. Funding of $9,000,000 for the Unemployment Insurance Integrity
   Center of Excellence is available for obligation by the state through September 30, 2019.

4. Final Base Allocations. The final FY 2018 base allocations are identical to the planning
   targets at a 2.0 million AWIU level. The attached table shows the total full-year base
   allocation to each state in FY 2018.

5. Above-Base Administration.

   a. Above-Base and Contingency Funding. The FY 2018 appropriation is estimated to be
      sufficient to provide adequate resources for workloads associated with an AWIU of
      2.154 million. Under current projections, this appropriation will allow for 100 percent
      reimbursement of above-base administrative expenses. If the actual workload levels
      increase and approach an AWIU level exceeding 2.154 million, the Employment and
      Training Administration (ETA) may need to reconsider full reimbursements of above-
      base payouts.

   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 of 6.6


       percent as described in the OMB Report to the Congress on the Joint Committee
       Reductions for Fiscal Year 2018 and UIPL No. 06-18.

   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 as reported on the UI-3 reports. For any quarter,
      above-base weeks claimed will be those in excess of 25 percent of the FY 2018 base
      weeks claimed issued in the planning targets. The above-base postage will be paid at
      29.0 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. FY 2018 funding for Reemployment Services and Eligibility
      Assessments (RESEAs) will be provided to states to continue activities in accordance
      with each state’s approved FY 2017 RESEA program.

   b. Submission Requirements. To achieve greater efficiency and as part of ETA’s ongoing
      effort to streamline the grant award process, SBR submissions must be made using an
      electronically signed copy of the SF-424 - Application for Federal Assistance, and the
      SF-424A - Budget Information for Non-Construction Programs, through Grants.gov
      (https://www.grants.gov/web/grants/forms.html). Additional information on use of
      Grants.gov for SBR submission will be included in guidance announcing SBR
      opportunities.

   c. Travel. Travel dollars are available for Benefit Accuracy Measurement Peer Reviews,
      Benefits Timeliness and Quality Tripartite 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. Nationally Funded Activities. As provided in the State Unemployment Insurance and
   Employment Service Operations appropriation, the US Department of Labor will, on behalf


   of the states, make payments to the entities operating the National Directory of New Hires
   and the State Information Data Exchange System for use by the states.

8. 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 C.F.R.
   Part 200, and 2 C.F.R. 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 within the parameters of the Social Security Act
   and the appropriation. 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.

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

10. Inquiries. Questions should be addressed to the appropriate regional office.

11. Attachment. State UI Base Administrative Grants – FY 2018.

Attachment (official PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2018/UIPL_13-18_Attachment_Acc.pdf)

State UI Base Administrative Grants
                                    FY 2018

                               Administration                     Postage            Total
National Total                $2,293,380,000                 $114,330,000   $2,407,710,000
Alabama                           25,755,067                    1,128,693       26,883,760
Alaska                            21,196,384                      511,345       21,707,729
Arizona                           31,202,208                    1,544,959       32,747,167
Arkansas                          17,352,961                      937,117       18,290,078
California                       308,884,778                   19,620,119      328,504,897
Colorado                          32,448,101                    1,739,397       34,187,498
Connecticut                       41,372,844                    1,989,707       43,362,551
Delaware                           7,907,162                      359,729        8,266,891
District of Columbia               8,923,584                      429,077        9,352,661
Florida                           79,844,648                    3,547,267       83,391,915
Georgia                           54,631,519                    2,090,667       56,722,186
Hawaii                            13,395,941                      397,056       13,792,997
Idaho                             13,242,366                      476,562       13,718,928
Illinois                         138,401,274                    5,828,657      144,229,931
Indiana                           34,192,735                    1,536,735       35,729,470
Iowa                              23,728,771                    1,230,149       24,958,920
Kansas                            17,618,425                      847,625       18,466,050
Kentucky                          26,102,476                    1,234,079       27,336,555
Louisiana                         26,184,629                      958,655       27,143,284
Maine                             12,103,259                      459,336       12,562,595
Maryland                          51,118,337                    1,926,373       53,044,710
Massachusetts                     55,841,584                    3,622,214       59,463,798
Michigan                         110,573,180                    3,268,977      113,842,157
Minnesota                         36,854,779                    2,383,898       39,238,677
Mississippi                       18,102,161                      643,409       18,745,570
Missouri                          33,135,444                    1,714,271       34,849,715
Montana                            8,353,408                      463,224        8,816,632
Nebraska                          13,527,808                      435,196       13,963,004
Nevada                            22,455,410                    1,124,957       23,580,367
New Hampshire                     10,677,458                      311,285       10,988,743
New Jersey                        92,980,256                    5,118,365       98,098,621
New Mexico                        12,351,418                      666,543       13,017,961
New York                         158,125,082                    8,423,829      166,548,911
North Carolina                    49,897,692                    1,793,372       51,691,064
North Dakota                       6,487,693                      431,691        6,919,384
Ohio                              71,849,891                    3,319,647       75,169,538
Oklahoma                          20,802,147                    1,221,524       22,023,671
Oregon                            43,640,765                    1,662,138       45,302,903
Pennsylvania                     117,002,660                    6,712,031      123,714,691
Puerto Rico                       12,895,635                    1,081,352       13,976,987
Rhode Island                      11,618,796                      513,235       12,132,031
South Carolina                    25,877,031                    1,009,918       26,886,949
South Dakota                       4,587,632                      169,741        4,757,373
Tennessee                         31,101,190                    1,316,527       32,417,717
Texas                            125,758,374                    8,945,942      134,704,316
Utah                              21,785,760                      696,232       22,481,992
Vermont                            6,807,211                      274,526        7,081,737
Virgin Islands                     1,527,302                       38,383        1,565,685
Virginia                          35,598,713                    1,931,222       37,529,935
Washington                        71,847,443                    2,901,954       74,749,397
West Virginia                     10,474,655                      834,772       11,309,427
Wisconsin                         57,125,608                    2,179,145       59,304,753
Wyoming                            8,108,345                      327,176        8,435,521