Fiscal 2021 state unemployment resource allocations

CLASSIFICATION
  EMPLOYMENT AND TRAINING ADMINISTRATION                    UI
                                                            CORRESPONDENCE SYMBOL
              ADVISORY SYSTEM
         U.S. DEPARTMENT OF LABOR
                                                            OUI/DFAS
            Washington, D.C. 20210                          DATE
                                                            April 27, 2021


ADVISORY:           UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 17-21

TO:                 STATE WORKFORCE AGENCIES

FROM:               SUZAN G. LEVINE
                    Principal Deputy Assistant Secretary

SUBJECT:            Guidelines for Fiscal Year (FY) 2021 State Agency Unemployment
                    Insurance (UI) Resource Allocations, Supplemental Budget Requests
                    (SBRs), and Above-Base Funding

1. Purpose. To provide information to states about FY 2021 UI State Administration base
   resource allocations, general guidelines for resource planning, above-base funding, and
   SBRs.

2. Action Requested. State Administrators are requested to provide copies of this
   Unemployment Insurance Program Letter (UIPL) to the appropriate staff.

3. Summary and Background. The Consolidated Appropriations Act, 2021 (Pub. L. 116-
   260), which was enacted on December 27, 2020, provides the U.S. Department of Labor
   (Department) with FY 2021 appropriations for state UI operations. The final appropriation
   did not include funding for a program initiative the Department had included in the FY2021
   Budget, requesting $90 million for state integrity funding. However, the appropriation does
   increase the funding for the regular state administration activities and maintains the average
   weekly insured unemployment (AWIU) trigger at 1,728,000. The table below summarizes
   the AWIU levels and dollar amounts corresponding to the FY 2021 President’s Budget
   request and the FY 2021 appropriation.

   Summary of FY 2021 UI Budget Authority

                                          Budget Request           Appropriation      Difference
 AWIU Contingency Trigger                       1,728,000               1,728,000              0
 State Administration                      $2,446,686,000          $2,365,816,000   -$80,870,000
   State Administration (workload)         $2,356,686,000          $2,365,816,000     $9,130,000
   State Administration (integrity)           $90,000,000                      $0   -$90,000,000
 RESEA / Integrity                           $200,000,000            $200,000,000             $0
 National Activities                          $18,000,000             $18,000,000             $0
 Total                                     $2,664,686,000          $2,583,816,000   -$80,870,000

 RESCISSIONS                                                EXPIRATION DATE
 None                                                       September 30, 2024

   The appropriation allows these funds to be available for obligation by the states through
   December 31, 2021, 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 to provide
   reemployment services and referrals to training, as appropriate, are available for obligation
   by the states through September 30, 2023. If the automation is being carried out through a
   consortium of states, the states must obligate funds by September 30, 2027, and expend
   them by September 30, 2028. Funding for the Unemployment Insurance Integrity Center of
   Excellence is available for obligation by the state through September 30, 2022.

4. Guidance.

   Final Base Administration Allocations. The final FY 2021 base allocations are identical
   to the planning targets developed at a 1,600,000 AWIU level, as published in UIPL No. 02-
   21, Change 1. The attached table shows the total full-year base allocations for each state in
   FY 2021.

   Above-Base Administration.

   a. Above-Base and Contingency Funding. The Employment and Training Administration
      (ETA) estimates the FY 2021 appropriation to be sufficient to provide adequate
      resources for workloads associated with an AWIU of 1,728,000. Using current
      economic assumptions, the Department projects an AWIU of 4,267,000 for FY 2021.
      Assuming this level of claims materializes, the AWIU contingency language contained
      in the FY 2021 State Unemployment Insurance and Employment Service Operations
      (SUIESO) appropriation would provide for an additional $726,154,000 being made
      available to support above-base administration expenses.

   b. Pandemic Emergency Unemployment Compensation (PEUC). Administrative costs for
      the PEUC program will continue to be based on quarterly PEUC workloads and funded
      through the UI-3 reports submitted by state agencies. Because the PEUC program was
      enacted after submission of the Office of Management and Budget (OMB) Report to the
      Congress on the Joint Committee Reductions for FY 2021, PEUC administrative costs
      are not subject to sequestration.

   c. Support. The overhead for above-base state UI, Trade Readjustment Assistance (TRA),
      Alternative Trade Adjustment Assistance (ATAA), and Reemployment Trade
      Adjustment Assistance (RTAA) administration remains at 19 percent.

   d. Postage. Since FY 2007, ETA has provided above-base funding for postage directly to
      state workforce agencies based on the amount of weeks claimed workload not included
      in the base allocations. During FY 2020, the postage rate had to be reduced in order to
      keep above-base distributions within the limits of the appropriation. Given the
      unprecedented volatility in the workload volumes being experienced and reported by

   state agencies, for FY 2021 ETA will withhold postage distributions from the first and
   second quarter above-base distributions. Shortly thereafter, an assessment will be
   conducted to determine the appropriate postage funding rate for FY 2021.

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 must follow the UI-3 reporting instructions in
   Employment and Training (ET) Handbook No. 336, 18th Edition, Change 4.

Supplemental Budget Requests (SBRs). Instructions for SBRs are provided mostly
through UIPLs. The State Quality Service Plan 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 2021 funding for Reemployment Services and Eligibility
   Assessments (RESEAs) will be provided to states to administer these activities in
   accordance with UIPL No. 13-21 and each state’s approved FY 2021 RESEA state plan.

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 any guidance announcing SBR
   opportunities.

c. Travel. Travel dollars are available for Benefit Accuracy Measurement Peer Reviews,
   National Review of States’ UI Appeals Quarterly Self-Evaluations, 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.

Nationally Funded Activities. As provided in the SUIESO appropriation, the Department
will make payments, on behalf of the states, to the entities operating the National Directory
of New Hires and the State Information Data Exchange System for use by the states.

State Flexibility. All state UI administrative grant funds must be used in accordance with
Section 303(a)(8) of the Social Security Act (SSA) 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 SSA 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 SBRs; funding for these
   purposes must be spent in accordance with the spending plans approved for these respective
   projects.

5. Inquiries. Questions are to be submitted to the appropriate ETA Regional Office.

6. References.

      Section 303(a)(8) of the Social Security Act, codified at 42 U.S.C. Section 503(a)(8);
      Consolidated Appropriations Act, 2021, Public Law (Pub. L.) 116-260;
      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 (U.S. Department of Labor);
      Office of Management and Budget (OMB) Report to the Congress on the Joint
       Committee Reductions for Fiscal Year 2021 (February 10, 2020);
      Unemployment Insurance Program Letter (UIPL) No. 13-21, Fiscal Year (FY) 2021
       Funding Allotments and Operating Guidance for Unemployment Insurance (UI)
       Reemployment Services and Eligibility Assessments (RESEA) Grants, issued January 19,
       2021;
      Unemployment Insurance Program Letter (UIPL) No. 02-21, and Change 1, Fiscal Year
       (FY) 2021 State Workforce Agency Unemployment Insurance (UI) Resource Planning
       Targets and Guidelines, issued October 26, 2020;
      UIPL No. 12-21, Implementation of Sequestration under the Budget Control Act of 2011
       (BCA) for Mandatory Unemployment Insurance Programs for Fiscal Year 2021, issued
       January 19, 2021;
      UIPL No. 29-20, Additional Planning Guidance for the Fiscal Year (FY) 2021
       Unemployment Insurance (UI) State Quality Service Plan (SQSP), issued September 14,
       2020; and
      Employment and Training (ET) Handbook No. 336, 18th Edition (March 2019),
       Unemployment Insurance State Quality Service Plan (SQSP), Planning and Reporting
       Guidelines.

7. Attachment.

       Attachment I: State UI Base Administrative Grants – FY 2021.

                    State UI Base Administrative Grants - FY 2021                  Attachment I




                                                 Administration        Postage         Total Base
National Total                                   2,145,637,000      106,095,000     2,251,732,000
Alabama                                             23,057,591        1,024,679        24,082,270
Alaska                                              20,039,507          462,010        20,501,517
Arizona                                             29,499,223        1,450,055        30,949,278
Arkansas                                            16,154,745         769,856         16,924,601
California                                         279,447,515       19,123,149       298,570,664
Colorado                                            30,181,641        1,578,915        31,760,556
Connecticut                                         38,992,604        1,905,133        40,897,737
Delaware                                             7,096,162         332,792          7,428,954
Dist. of Columbia                                    8,096,036         456,690          8,552,726
Florida                                             71,200,923        3,401,048        74,601,971
Georgia                                             48,481,676        1,943,840        50,425,516
Hawaii                                              11,911,543         424,804         12,336,347
Idaho                                               12,541,511         482,908         13,024,419
Illinois                                           124,827,316        5,388,642       130,215,958
Indiana                                             32,813,370        1,380,621        34,193,991
Iowa                                                21,649,486        1,158,812        22,808,298
Kansas                                              16,021,192         733,750         16,754,942
Kentucky                                            23,974,377        1,100,718        25,075,095
Louisiana                                           23,029,733        1,000,426        24,030,159
Maine                                               11,940,424         418,604         12,359,028
Maryland                                            44,544,947        1,804,199        46,349,146
Massachusetts                                       51,494,563        3,465,336        54,959,899
Michigan                                           108,759,567        3,054,381       111,813,948
Minnesota                                           35,255,440        2,220,007        37,475,447
Mississippi                                         16,157,192         573,804         16,730,996
Missouri                                            32,205,054        1,588,564        33,793,618
Montana                                              7,322,457         445,039          7,767,496
Nebraska                                            12,711,580         421,983         13,133,563
Nevada                                              20,905,801        1,031,915        21,937,716
New Hampshire                                        9,774,405         290,741         10,065,146
New Jersey                                          97,265,944        4,861,697       102,127,641
New Mexico                                          11,677,290         588,569         12,265,859
New York                                           151,965,830        7,906,091       159,871,921
North Carolina                                      43,973,063        1,633,992        45,607,055
North Dakota                                         6,230,753         315,550          6,546,303
Ohio                                                58,622,086        3,085,328        61,707,414
Oklahoma                                            19,215,342         973,703         20,189,045
Oregon                                              42,831,308        1,576,673        44,407,981
Pennsylvania                                       111,031,413        5,900,513       116,931,926
Puerto Rico                                         11,158,950        1,039,809        12,198,759
Rhode Island                                        11,767,705         492,098         12,259,803
South Carolina                                      24,197,589         961,722         25,159,311
South Dakota                                         4,381,216         176,481          4,557,697
Tennessee                                           30,375,444        1,027,069        31,402,513
Texas                                              127,609,152        7,829,936       135,439,088
Utah                                                20,551,196         657,154         21,208,350
Vermont                                              6,376,576         257,282          6,633,858
Virgin Islands                                       1,522,334            32,159        1,554,493
Virginia                                            32,601,171        1,796,711        34,397,882
Washington                                          69,773,567        2,778,286        72,551,853
West Virginia                                        9,883,501         608,281         10,491,782
Wisconsin                                           55,521,613        1,920,388        57,442,001
Wyoming                                              7,016,376         242,087          7,258,463