FY 2013 funds for EUC sequestration changes

CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                UI/EUC
               ADVISORY SYSTEM                           CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR                       DFAS/OUI
             Washington, D.C. 20210                      DATE
                                                          March 29, 2013




ADVISORY:         UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 15-13

TO:               STATE WORKFORCE AGENCIES

FROM:             JANE OATES /s/
                  Assistant Secretary

SUBJECT:          Unemployment Insurance (UI) Supplemental Funding Opportunity to Fund
                  Costs Attributable to the Implementation of the Sequestration Impacts on the
                  Emergency Unemployment Compensation (EUC) Program

1. Purpose. To notify state workforce agencies of the availability of funds through the
   Supplemental Budget Request (SBR) process for costs related to the implementation of
   sequestration requirements impacting the EUC program.

2. References.
   • Balanced Budget and Emergency Deficit Control Act of 1985 (BBEDCA) (Pub. L. 99-
      177);
   • Budget Control Act of 2011 (BCA) (Pub. L. 112-25);
   • Middle Class Tax Relief and Job Creation Act of 2012 (Pub. L. 112-96);
   • American Taxpayer Relief Act of 2012 (ATRA) (Pub. L. 112-240); and
   • Unemployment Insurance Program Letter (UIPL) No. 13-13, dated March 8, 2013.

3. Background. As noted in UIPL No. 13-13 (p. 5), funds for the EUC program, including
   EUC administration, are subject to a 5.1 percent reduction under the BBEDCA as a
   mandatory spending program. In accordance with section 8 of UIPL 13-13, an amount of
   $40,000 (which has been calculated to take into account the required reductions) has been
   provided to each state workforce agency for EUC administration to support the
   implementation of changes required by sequestration. Because of the complexity of
   sequestration and the variance among states in resource requirements for implementation, the
   U.S. Department of Labor (Department) is announcing an opportunity for states to request,
   through the SBR process, additional funding above the $40,000 that has already been made
   available.

4. Additional Sequestration Implementation Funding. Additional EUC administrative
   funding, above the $40,000 already provided, is available to cover costs for: programming of
   reductions to EUC entitlement, benefit redeterminations, Web site and Interactive Voice


 RESCISSIONS                                            EXPIRATION DATE
 None                                                    September 30, 2013

   Response systems updating and claimant notification of benefit amount changes including
   postage. Funds are also available for staff training, and other activities related to the
   implementation of sequestration. States are encouraged to seek funds for all administrative
   activities associated with the implementation.

   Costs attributable to any non-sequestration implementation activities may not be funded
   with the funds awarded under this solicitation.

5. Application, Award, and Expenditure of Supplemental Funds. States should submit
   proposals, including appropriate cost estimates to obtain adequate funding, for any
   sequestration-related activities in one SBR package. Unfortunately, these funds are subject
   to the 5.1 percent sequestration cut required for fiscal year (FY) 2013. The National Office
   will apply a 5.1 percent sequestration reduction to cost estimates submitted by states for the
   funded activities to arrive at the award to the state. Each activity will be considered a section
   of the state’s SBR, and each activity will be evaluated individually. The SBR Outline
   (attached) will be used to evaluate the proposals. Each activity should be addressed
   succinctly providing the specific information requested. Due to the tight timeframe for
   developing and submitting SBRs, states are asked to provide only the information requested.
   Information such as an introductory narrative is not necessary. In addition, submission of the
   SF-424 (OMB No. 4040-0004) and SF-424A (OMB No. 4040-006) is being waived for the
   initial submission.

   Upon SBR proposal approval, an award letter will be issued to each state listing all activities
   to be funded, and the total funding level for “sequestration implementation.” The award
   letter will also identify the amount of the 5.1 percent reduction for sequestration. States must
   then submit an SF-424 and an SF-424A for the amount awarded for sequestration
   implementation.

   It is expected that states will obligate and expend the funds quickly, given the immediate
   need to implement the changes required by sequestration. Any SBR funds not obligated by
   September 30, 2013, must be returned as they could not be used for their intended purpose,
   i.e., implementation of sequestration in FY 2013. Expenditures of these SBR funds must be
   reported on the Department’s Employment and Training Administration Fiscal Report (ETA
   9130) in the remarks section. States must establish time-charging codes that will allow for
   the accounting of appropriate costs.

6. Project Management. If, during the performance period, states wish to move funds among
   categories on the SF-424A and the amount to be moved exceeds 20 percent of either the
   “donating” or “receiving” category as initially funded, a new SF-424A, with a letter
   requesting the change to the Office of Unemployment Insurance Administrator, Gay M.
   Gilbert, must be submitted electronically with a copy to the appropriate Department of Labor
   Regional Office (RO). These documents will be forwarded to the Employment and Training
   Administration Grants Officer.

   States may not elect to abandon a single activity that has been funded and move the funds to
   a different activity that has also been funded. If an approved activity is not undertaken by the

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   state, the funds for that activity must be returned to the Department.

7. Action Requested. State Administrators are asked to:

   a) Inform appropriate staff of this funding opportunity.
   b) Determine activities for which the submission of SBRs would be appropriate.
   c) Work with the appropriate RO to use their knowledge and technical expertise.
   d) Submit SBRs to the National Office at [email protected], by April 12, 2013, with a
      copy to the RO. The title line of the email should include the name of the state and the
      title Sequestration Implementation SBR 2013. An email response will be sent within 24
      hours from the OWS SBR mailbox acknowledging receipt of the electronic document.

8. Inquiries. Inquiries should be directed to the appropriate RO.

9. Attachment. Supplemental Budget Request Outline




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Attachment 1 (official PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2013/UIPL_15_13_Att.pdf)

ATTACHMENT

                            Supplemental Budget Request Outline

1. Name of the Project: The naming convention for this project is State Abbreviation- Activity
Name-Activity Priority-UIPL Number. The state abbreviation is the two-digit alphabetic code,
and for purposes of this UIPL, the Project Name is “EUC Sequestration Implementation.”

2. Funding Request: Provide the total dollars requested for this submission and
delineate the total dollars requested for each activity.

3. State Contact: Provide name, telephone number and email address of the individual who can
answer questions related to this proposal.

4. Project Timeline: Provide a timeline identifying the dates of significant steps and critical
activities in this project through the projected implementation date.

5. Description of Costs: Provide an explanation of costs for each activity included in the
package.

     Staff Costs for Agency and Contract Staff: States must use the table format below to
     request funds for the costs of state or contract staff. The submission must clearly explain
     which costs are for state staff and which costs are for contractor staff.

      Type of     Total Hours         Cost Per        Total
      Position                        Hour
      3 Computer  600                 $60             $36,000
      Programmers

     Other: Identify each activity and provide the expected cost per items associated with the
     activity. Provide narrative that identifies the need for each activity/item in detail. For
     example, for postage expenditures the per-item cost and the number of items that will be
     mailed.

                                  Summary of All Costs Requested

      Staff
      Other
      Total