FY 2017 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
                                                        July 31, 2017


ADVISORY:         UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 20-17

TO:               STATE WORKFORCE AGENCIES

FROM:             BYRON ZUIDEMA /s/
                  Deputy Assistant Secretary

SUBJECT:          Guidelines for Fiscal Year (FY) 2017 State Agency Unemployment
                  Insurance (UI) Resource Allocations, Supplemental Budget Requests
                  (SBRs), and Above-Base Funding

1. Purpose. To provide information to states about FY 2017 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, 2017, Public Law (Pub. L.) 115-31;
    2 C.F.R. Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
      Requirements for Federal Awards;
    2 C.F.R Part 2900, Uniform Administrative Requirements, Cost Principles, and Audit
      Requirements for Federal Awards (Department of Labor);
    OMB Report to the Congress on the Joint Committee Reductions for Fiscal Year 2017
      (February 9, 2016);
    Unemployment Insurance Program Letter (UIPL) No. 20-16, Fiscal Year (FY) 2017
      State Workforce Agency Unemployment Insurance (UI) Resource Planning Targets and
      Guidelines, issued August 11, 2016;
    UIPL No. 9-17, Implementation of Sequestration under the Budget Control Act of 2011
      for Mandatory Unemployment Insurance Programs for Fiscal Year 2017, issued
      January 19, 2017;
    UIPL No. 18-16, Additional Planning Guidance for the Fiscal Year (FY) 2017
      Unemployment Insurance (UI) State Quality Service Plan (SQSP), issued August 1,
      2016; 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.


 RESCISSIONS                                            EXPIRATION DATE
 None                                                   September 30, 2022

3. Appropriation. The FY 2017 consolidated spending bill that included the appropriations
   for state UI operations (Pub. L. 115-31) was enacted on May 5, 2017. The table below
   summarizes the average weekly insured unemployment (AWIU) levels and dollar amounts
   corresponding to the FY 2017 President’s Budget request and the FY 2017 appropriation.

   Summary of FY 2017 UI Budget Authority

                                    Budget Request     Appropriation          Difference
     AWIU Contingency Trigger              2,249,000        2,453,000            204,000
     State Administration            $2,592,019,000    $2,572,600,000      ($19,419,000)
     RESEA / Integrity                 $185,900,000     $115,000,000       ($70,900,000)
     National Activities                $15,247,000      $14,897,000          ($350,000)
     Total                           $2,793,166,000    $2,702,497,000      ($90,669,000)

   The appropriation allows these funds to be available for obligation by the states through
   December 31, 2017, except that funds used for automation or competitive grants awarded to
   states for improved operations, conducting in-person assessments and reviews, and
   providing reemployment services and referrals are available for obligation by the states
   through September 30, 2019. If the automation is being carried out through a consortia of
   states, the states must obligate the funds by September 30, 2022, and expend them by
   September 30, 2023. Funding of $5,500,000 for the Integrity Center of Excellence is
   available for obligation by the state through September 30, 2018.

4. Final Base Allocations. The final FY 2017 base allocations are identical to the planning
   targets at a 2.1 million AWIU level. The attached table shows the total full-year base
   allocation to each state in FY 2017.

5. Above-Base Administration.

   a. Above-Base and Contingency Funding. The FY 2017 appropriation is estimated to be
      sufficient to provide adequate resources for workloads associated with an AWIU of
      2.246 million. Current projections expect the FY 2017 AWIU level to be 2.199 million,
      thus allowing for 100 percent reimbursement of above-base administrative expenses. If
      the actual workload levels increase and approach an AWIU level of 2.246 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 6.9
      percent as described in the OMB Report to the Congress on the Joint Committee
      Reductions for Fiscal Year 2017 and UIPL No. 9-17.


   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 2017 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 FY 2017 Reemployment Services and Eligibility
              Assessments (RESEAs) grants have been solicited and awarded. 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. 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, grant budget, through Grants.gov. 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. 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. FY 2017 State UI Base Allocations.

Attachment (official PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2017/UIPL_20-17_Attachment_Acc.pdf)

State UI Base Administrative Grants
                                     FY 2017
                        Administration                  Postage       Total
National Total          2,295,804,000               114,290,000   2,410,094,000
Alabama                    27,048,070                 1,167,555      28,215,625
Alaska                     22,311,983                   466,735      22,778,718
Arizona                    29,571,077                 1,560,534      31,131,611
Arkansas                   18,019,334                 1,053,709      19,073,043
California                325,141,872                19,329,038     344,470,910
Colorado                   34,155,896                 1,730,361      35,886,257
Connecticut                43,550,362                 2,033,182      45,583,544
Delaware                    8,155,276                   364,162       8,519,438
District of Columbia        9,393,246                   436,526       9,829,772
Florida                    81,744,378                 3,985,367      85,729,745
Georgia                    51,164,791                 2,201,862      53,366,653
Hawaii                     12,888,017                   435,420      13,323,437
Idaho                      13,142,857                   487,249      13,630,106
Illinois                  141,515,683                 5,541,918     147,057,601
Indiana                    35,099,677                 1,529,933      36,629,610
Iowa                       22,775,720                 1,158,380      23,934,100
Kansas                     16,500,420                   937,981      17,438,401
Kentucky                   25,441,462                 1,233,643      26,675,105
Louisiana                  24,523,043                 1,136,018      25,659,061
Maine                      11,335,228                   504,417      11,839,645
Maryland                   48,538,307                 2,054,521      50,592,828
Massachusetts              53,502,553                 3,678,368      57,180,921
Michigan                  111,256,593                 3,274,706     114,531,299
Minnesota                  38,516,798                 2,244,609      40,761,407
Mississippi                17,810,214                   669,026      18,479,240
Missouri                   33,800,265                 1,807,917      35,608,182
Montana                     7,823,329                   438,179       8,261,508
Nebraska                   13,042,710                   481,394      13,524,104
Nevada                     22,561,444                 1,180,014      23,741,458
New Hampshire              10,957,421                   335,497      11,292,918
New Jersey                 96,743,791                 5,275,195     102,018,986
New Mexico                 12,789,312                   640,158      13,429,470
New York                  155,841,368                 8,670,749     164,512,117
North Carolina             48,816,879                 2,049,787      50,866,666
North Dakota                6,230,604                   354,412       6,585,016
Ohio                       72,067,945                 3,242,873      75,310,818
Oklahoma                   19,482,114                 1,032,153      20,514,267
Oregon                     44,536,350                 1,722,527      46,258,877
Pennsylvania              111,774,172                 6,585,819     118,359,991
Puerto Rico                13,574,353                 1,172,957      14,747,310
Rhode Island               11,410,160                   524,548      11,934,708
South Carolina             24,416,715                   990,914      25,407,629
South Dakota                4,595,871                   163,283       4,759,154
Tennessee                  31,081,327                 1,420,075      32,501,402
Texas                     117,778,180                 7,700,404     125,478,584
Utah                       22,932,379                   661,275      23,593,654
Vermont                     6,649,280                   278,083       6,927,363
Virgin Islands              1,430,385                    44,092       1,474,477
Virginia                   37,472,330                 1,959,517      39,431,847
Washington                 72,772,076                 2,879,902      75,651,978
West Virginia              11,025,953                   731,218      11,757,171
Wisconsin                  53,500,613                 2,468,026      55,968,639
Wyoming                     7,593,817                   263,812       7,857,629