FY 2007 state unemployment insurance resource allocations and supplemental budgets

UIPL14-07_Acc.pdf (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2007/UIPL14-07_Acc.pdf)

      EMPLOYMENT AND TRAINING ADMINISTRATION               CLASSIFICATION
                  ADVISORY SYSTEM                          UI
            U. S. DEPARTMENT OF LABOR                      CORRESPONDENCE SYMBOL
                Washington, D.C. 20210                     OWS - DFAS
                                                           DATE
                                                           March 29, 2007

ADVISORY:          UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 14-07

TO:                STATE WORKFORCE AGENCIES

FROM:              EMILY STOVER DeROCCO /s/
                   Assistant Secretary

SUBJECT:           Guidelines for Fiscal Year (FY) 2007 State Agency Unemployment Insurance
                   (UI) Resource Allocations, Supplemental Budget Requests (SBRs), and
                   Above-Base Funding

1. Purpose. To provide the following information for FY 2007: UI State Administration base
   resource allocations, general guidelines for resource planning, above-base funding, and SBRs.

2. References. ET Handbook No. 336, 18th Edition, Unemployment Insurance State Quality
   Service Plan (SQSP), Planning and Reporting Guidelines; Unemployment Insurance Program
   Letter (UIPL) No. 24-06, Fiscal Year (FY) 2007 State Agency Unemployment Insurance
   Resource Planning Targets and Guidelines; and UIPL No. 25-06, “Call Memo” for the Fiscal
   Year 2007 Unemployment Insurance State Quality Service Plan.

3. Appropriation. The FY 2007 spending bill that included appropriations for state UI
   operations (Public Law 110-5) was enacted on February 15, 2007. The table below shows the
   amounts of the President’s Budget request, the appropriation, and the difference.

                                 Budget Request            Appropriation          Difference
State Administration             $2,639,675,000           $2,497,770,000       -$141,905,000
National Activities                  10,500,000                9,900,000            -600,000
Total                             2,650,175,000            2,507,670,000        -142,505,000

4. Final Base Allocations. The final FY 2007 base allocations are identical to the planning
   targets.

5. Above-Base Workloads. The appropriation provides sufficient funding to support the
   administrative costs associated with an average weekly insured unemployment (AWIU) level
   of 2,565,000. Using the Administration’s November 2006 economic assumptions, workloads
   are projected to be slightly less than that level, meaning above-base entitlements can be
   funded at 100%. Should actual workloads increase substantially above current estimates, the
   above-base reimbursement rate will be adjusted down later in the year.
 RESCISSIONS                                             EXPIRATION DATE
 None                                                    March 29, 2008



6. Other Above-Base Funding Information

  a. Contingency Reserve. The appropriation provides for an apportionment of contingency
      reserve funds should the AWIU level exceed 2.703 million. $28.6 million will be made
      available for each increment of 100,000 (including a pro rata amount for any increment
      less than 100,000) in the AWIU above the 2.703 million level. However, any AWIU
      falling between the 2.565 million that the appropriation supports and the 2.703 million
      AWIU contingency reserve trigger will not be funded, requiring the Department to reduce
      the above-base reimbursement rate.

   b. Support. The above-base overhead percentage remains at 19 percent. Although Trade
      Adjustment Assistance (TAA) administration is not an above-base function, its overhead
      percentage is also 19 percent.

   c. Trade Redeterminations. Currently, there are no court decisions regarding the TAA
      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.

7. 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 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. States that received Reemployment and Eligibility Assessments (REA)
      grants in FY 2005 and FY 2006 may receive funds to continue those initiatives at the same
      funding levels in FY 2007. In addition, states will have the opportunity to apply for funds
      to improve information technology security. Specific instructions will be provided to
      states in a separate advisory. Proposals to combat identity theft and to expand REA
      initiatives to additional states were solicited; however, funding for these initiatives was
      not included in the appropriation and, therefore, cannot be awarded.

   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 integrity reviews. States should provide
      travel estimates and reimbursement requests to the regional office rather than submitting
      an SF 424 for these travel dollars.

   c. Postage SBRs. States must submit UI postage SBRs for the first three quarters to the
      National Office no later than 30 days after each quarter has ended. Because the National
      Office must obligate base postage funds by September 30, states should include estimated
      fourth quarter UI postage costs, based on historical data, with the third quarter SBR.
      States are reminded that after September 30, 2007, funding for postage will be allocated to
      states by formula rather than provided on a reimbursable basis.



8. State Flexibility. States have full authority to shift UI resources among program categories as
   deemed 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.

9. Action Required. 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.