FY 2006 state unemployment insurance funding opportunities

Accessible letter PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2006/UIPL28-06_508.pdf

CLASSIFICATION
   Employment and Training Administration            UI
              Advisory System                        CORRESPONDENCE SYMBOL
         U.S. Department of Labor                    OWS/ DUIO
          Washington, D.C. 20210                     DATE
                                                     August 8, 2006

ADVISORY:            UNEMPLOYMENT INSURANCE PROGRAM LETTER 28-06

TO:                  STATE WORKFORCE AGENCIES

FROM:                EMILY STOVER DeROCCO /s/
                     Assistant Secretary

SUBJECT:             Unemployment Insurance (UI) Fiscal Year (FY) 2006 Supplemental
                     Funding Opportunities

1. Purpose. To notify state workforce agencies (SWAs) of the availability of FY 2006
   UI funds for the priority initiatives listed below and for implementation of additional
   optional projects if states have already received funds for or implemented the priority
   initiatives.

   Priority initiatives include:

   1) Access to the National Directory of New Hires (NDNH);
   2) UI Data Validation;
   3) Interstate Benefits (IB), Combined Wage Claim (CWC), Liable/Agent Data
      Transfer (LADT) Applications and Interfaces;
   4) Unemployment Compensation for Federal Employees (UCFE) Electronic
      Application; and
   5) UI Required Reports (UIRR) Corrective Action.

   Optional projects include:

   1) Training for Adjudication Staff;
   2) Improved Occupational Coding Quality;
   3) Debit Cards and/or Direct Deposit for UI Benefit Payments;
   4) Social Security Administration “Real Time” or Batch Data Exchange;
   5) Upgraded Wage Record Databases to Record and Maintain Full Names;
   6) Agent State Database for Interstate Claimants; and
   7) Improved Performance.

RESCISSIONS                                             EXPIRATION DATE

None                                                    August 8, 2007

2. References. ET Handbook No. 336, 18th Edition, State Quality Service Plans
   Planning and Reporting Guidelines, and the Regional Office issuances regarding the
   Unemployment Insurance FY 2005 Supplemental Funding Opportunity.

3. Background. The FY 2006 appropriation was based on economic assumptions that
   anticipated higher workloads than are now projected. As a result, the Employment
   and Training Administration (ETA) now estimates that a portion of the funds
   appropriated for FY 2006 will not be needed to process above-base workloads, and
   these excess workload funds are available to states for UI priority initiatives and other
   UI purposes described below. These funds will be made available through the
   supplemental budget request (SBR) process and must be obligated to states by
   September 30, 2006.

4. Size-Based SBR Allowances. Each state is eligible for a maximum amount of funds
   based upon the population of the state as determined by the U. S. Census Bureau.
   Large states may receive a maximum of $200,000, medium size states a maximum of
   $150,000 and small states a maximum of $100,000. See Attachment A for a list of
   states’ sizes.

   States may submit proposals in excess of the established state maximum; however,
   these should be clearly marked as “extra proposals.” If funds are available to fund
   extra projects they will be funded in the order that they appear on the list of optional
   projects on page 1.

5. Use of Funds. These one-time funds may be used for the purposes described below.
   Priority initiatives must be implemented or must be under development with a
   projected completion date before a state can receive funds for the optional projects
   listed below. States requesting funds for any optional project(s) must submit a
   completed copy of the UI Priority Initiatives State Status Summary (Attachment B).
   Each initiative is described more fully and an SBR outline for each initiative is on the
   Office of Workforce Security’s web site at: www.ows.doleta.gov under “Quick
   Links” 2006 SBR Projects.

   Priority Projects

    -   Access to the NDNH: Up to $100,000 per state is available to implement the
       periodic computer matching of UI claims data against data contained in the
       NDNH for the purpose of identifying potential UI erroneous payments.
       Additionally, funds may be used to implement or modify automated systems to
       more effectively use the information obtained as a result of matching against the
       NDNH, and to inform employers of the importance of reporting new hires.
       Funding is available only to those states that have not already received funds for
       this initiative.

    -   UI Data Validation (obtain an independent verification that UI data validation
       extract files meet Federal requirements): Up to $100,000 per state is available to
       obtain an independent verification that state extract files meet UI data validation
       requirements. For states choosing to obtain an independent verification, any

    remaining funds may be used to correct errors in data validation extract files, to
    complete data validation implementation, training, and to correct reporting errors
    discovered through data validation. Funds are available only to those states that
    have not already received funds for this initiative.

-   Interstate Benefits, Combined Wage Claim and Liable/Agent Data Transfer
    (LADT) Applications and Interfaces: Up to $50,000 per state is available to fully
    interface benefits systems with the model code or specifications for the IB, CWC
    and LADT applications via the Interstate Connection (ICON) Network thus
    ensuring that required data are accurate and can be transmitted electronically to
    take advantage of the efficiencies these applications provide to states. One of the
    lessons learned as a result of Hurricane Katrina is that these applications must be
    fully implemented.

-   Unemployment Compensation for Federal Employees (UCFE) Electronic
    Application: Up to $50,000 per state is available to implement the UCFE ICON
    application, which provides for the electronic exchange of wage and/or separation
    information from Federal agencies.

-   UI Required Reports Corrective Action: Up to $25,000 per state is available to
    program UI Required Reports and ensure timeliness. Regional Office staff have a
    list of states that must address missing reports and all states should determine
    whether they must address this project.

Optional Projects

-   Training for Adjudication Staff: Up to $11,000 per state is available to
    participate in Internet training developed by the National Judicial College for
    adjudication staff. States may receive funding for training up to 20 adjudicators
    when they agree to fund up to ten staff from other funds.

-   Improve Occupational Coding Quality: Up to $100,000 per state is available to
    implement AutoCoder software which was developed for the U. S. Department of
    Labor (USDOL) to assist states in properly assigning occupational codes when
    coding individuals’ records or job openings. AutoCoder can assist in getting UI
    claimants the re-employment services they need and help them to more quickly
    return to suitable employment. Funds are available only to those states that have
    not already received funds for this initiative.

-   Debit Cards and/or Direct Deposit for UI Benefit Payments: Up to $100,000 per
    state is available to implement debit card systems for the payment of
    unemployment insurance benefits.

-   Social Security Administration Data Exchange: Up to $100,000 per state is
    available to states to implement the Social Security Data Exchange system.
    Funds are available for a real-time or batch system. A batch system is expected to
    cost less than a real-time system. In addition, $51,622 is available to provide for
    an independent verification of the security of the state’s ADP system as required

       for the “real time” system access. This same independent validation and
       verification (IV&V) may also be used for NDNH. Only those states that have not
       already received the maximum allowable funds for this initiative should apply for
       funding.

    -   Upgrade Wage Record Data Base to Record and Maintain Full Names: Up to
       $100,000 per state is available to states to modify their wage records systems to
       capture and retain employee full names.

    -   Agent State Database for Interstate Claimants: Up to $50,000 per state is
       available to states to program systems to store Interstate agent claim files.

    -   Improve Performance: Up to $100,000 per state is available for optional projects
       to implement performance improvements. FY 2005 proposed projects that were
       not funded may be resubmitted for consideration.

6. Application for Supplemental Funds. The projects should be submitted in one SBR
   package. To be eligible to request funds for optional initiatives, states must first
   apply for funds for priority projects which they have not already implemented or
   received funds to implement previously. After requesting funds for any required
   initiatives in the “priority” category, states may apply the balance of their size-based
   supplemental funds to initiatives they choose from the “optional” category. An
   outline of the information needed for each project follows the project description.
   States should use the SBR outlines for each project for which the state wishes to
   apply. By applying for each project the state is agreeing to complete the project even
   if no additional federal funds, in excess of this SBR, are available.

   Each initiative or project proposal will be considered a section of the state’s SBR, and
   each will be evaluated separately/individually. In some instances, identical
   expenditures may be proposed by states for two (or more) separate projects for which
   the state can only receive funding one time. When this kind of duplication occurs the
   state should clearly indicate that the expenditures are duplicated in some other
   sections of the SBR to ensure that the same costs are not funded twice. An SF 424A
   must be submitted for each project identifying anticipated expenditures by category.
   The SF 424 will not be required until the awards are decided and the states are
   notified of the awards.

7. Awards and Expenditure of Supplemental Funds. Once projects have been approved,
   Letters of Award will be issued to states listing all approved projects and the grant
   awards for each project as well as the total funding award for the state. States will
   submit one SF 424 covering all approved projects.

   States must obligate the funds by December 31, 2006, and liquidate the obligations
   within 90 days of that date unless they are used for automation acquisition. Funds
   used for automation acquisition are available for obligation through September 30,
   2008, and obligations must be expended/liquidated within 90 days of that date. Upon
   written request prior to the obligation deadline, the Grant Officer may extend the
   expenditure/liquidation period. In addition, while states must obligate non-

   automation project funds by December 31, 2006, and automation project funds by
   September 30, 2008, obligation in a contract to an outside contractor (but not to
   another state agency) allows for funds to be expended/liquidated beyond the cited
   dates but no later than the end of the extended period approved by the Grant Officer.
   States must ensure that funded projects will be completed for the stated purpose.

8. Project Management. If during the performance period states wish to move funds
   among categories within a project a new SF 424A must be submitted to the ETA
   National Office for approval if the amount moved exceeds 20 percent of any category
   in Section 6 of the SF 424A in the initially awarded amount for the project. The same
   requirement for approval applies to movement of funds between projects if the
   amount moved exceeds 20 percent of either the donating or receiving project as
   initially funded.

9. Action Required. State Administrators are requested to:

   (a) Provide this information to appropriate staff, review possibilities for funding, and
       determine what funds may be available to the state for the initiatives or projects
       listed above.

   (b) Develop the SBR following the guidelines in this UIPL.

   (c) Submit the SBR by close of business, August 18, 2006, via electronic submission
       to the National Office at [email protected] or mail to the attention of Thomas
       Stengle at the following address:

              USDOL
              Employment and Training Administration
              Office of Workforce Security
              200 Constitution Ave NW, S-4231
              Washington, D.C. 20210

10. Inquiries. Inquiries should be directed to Diane Wood at (202) 693-3212, or via
    email at: [email protected] or to Thomas Stengle at (202) 693-2991, or via email
    at: [email protected]. Additional staff members are provided on each SBR
    project descriptions to assist with questions about the specific project.

11. Attachments.

   Attachment No. A, State Size Configuration Classifications for FY 2006 Funds
   Attachment No. B, UI Priority Initiatives State Status Summary

Attachment: https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2006/UIPL28-06_Att1.pdf

Attachment A

  State Size Configuration Classifications Based upon State Population
                           for FY 2006 Funds

Alabama                             Medium
Alaska                              Small
Arizona                             Medium
Arkansas                            Medium
California                          Large
Colorado                            Medium
Connecticut                         Medium
Delaware                            Small
District of Columbia                Small
Florida                             Large
Georgia                             Medium
Hawaii                              Medium
Idaho                               Medium
Illinois                            Large
Indiana                             Medium
Iowa                                Medium
Kansas                              Medium
Kentucky                            Medium
Louisiana                           Medium
Maine                               Medium
Maryland                            Medium
Massachusetts                       Medium
Michigan                            Large
Minnesota                           Medium
Mississippi                         Medium
Missouri                            Medium
Montana                             Small
Nebraska                            Medium
Nevada                              Medium
New Hampshire                       Medium
New Jersey                          Medium
New Mexico                          Medium
New York                            Large
North Carolina                      Medium
North Dakota                        Small
Ohio                                Large
Oklahoma                            Medium
Oregon                              Medium
Pennsylvania                        Large
Puerto Rico                         Medium
Rhode Island                        Small
South Carolina                      Medium

South Dakota     Small
Tennessee        Medium
Texas            Large
Utah             Medium
Vermont          Small
Virgin Islands   Small
Virginia         Medium
Washington       Medium
West Virginia    Medium
Wisconsin        Medium
Wyoming          Small

Attachment: https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2006/UIPL28-06_Att2.pdf

Attachment B

                                UI Priority Initiatives
                                State Status Summary
This form must accompany any SBR requesting funds for optional projects.

STATE:                         ____________________________
State Contact Name             ____________________________
State Contact Phone No.        ____________________________
State Contact E Mail           ____________________________

Status of Priority Initiatives: States must provide the status for each of the priority
initiatives listed below if funds are being requested for any optional project. The SWA
must provide a projected completion date for any initiative(s) that are under development.
UI Required Reports means all reports that are required by the Secretary.

Please indicate the status of these priority initiatives below:

1. Access to the National Directory of New Hires (NDNH):

Implemented                                            _________
Under Development, Projected Completion Date           _________
Funds requested with this submission                   _________

2. UI Data Validation:

Implemented                                            _________
Under Development, Projected Completion Date           _________
Funds requested with this submission                   _________

3. Interstate Benefits (IB), Combined Wage Claims (CWC), and Liable/Agent Data
Transfer (LADT) Applications and Interfaces:

Implemented                                            _________
Under Development, Projected Completion Date           _________
Funds requested with this submission                   _________

4. Unemployment Compensation for Federal Employees (UCFE) Program
Electronic Application:

Implemented                                            _________
Under Development, Projected Completion Date           _________
Funds requested with this submission                   _________

5. UI Required Reports (UIRR) Corrective Action:

Submitting all UIRRs timely                            _________
Under Development, Projected Completion Date           _________
Funds requested with this submission                   _________