Department of Labor - Unemployment Insurance Administration State Grants Recovery Plan
The Federal-State Unemployment Insurance (UI) Program provides unemployment benefits to eligible workers who are unemployed through no fault of their own (per State law), and meet other eligibility requirements. States operate UI programs under their own laws, which must substantially comply with Federal law. DOL provides program leadership and technical assistance, allocates administrative funds, and exercises performance oversight of States’ compliance with Federal UI laws and regulations.
By temporarily replacing part of unemployed workers’ lost wages, the Federal-State Unemployment Insurance system minimizes individual financial hardship resulting from unemployment and stabilizes the economy during economic downturns.
The measures have been revised to enrich the performance metrics for Recovery targets. In some instances, targets will not be available until additional baseline data has been collected.
Payment timeliness: Percentage of intrastate UI first payments made within 14 days in states with a waiting week and 21 days if no waiting week
|Frequency : Quarterly|
|Direction : Increasing|
|Type : Outcome|
|Explanation : Prompt payment of benefits to eligible unemployed workers is central to the mission of the unemployment insurance program. This measure reflects the percent of beneficiaries whose first check is issued within 21 days after the first week for which they are eligible for benefits. This period of time is adequate, in most cases, for States to calculate benefit amounts and determine whether individuals meet all eligibility requirements. |
Making timely payments to unemployed workers is critical to fulfilling the UI system's key statutory objective of making full payment of unemployment compensation "when due." This measure, which includes nearly 90% of all State UI intrastate payments, is a good indicator of overall payment timeliness.
The target was set using a regression model based on past program results and the unemployment rate. Because of the unprecedented workload on States due to high unemployment and a contracted economy, ETA does not expect this Recovery Act funding to improve the target set for this measure in the short term.
|Unit : percent-1st payments|
Establish overpayments: Dollar amount established for recovery as a percentage of estimated overpayments that states can detect and recover under state law.
|Frequency : Quarterly|
|Direction : Increasing|
|Type : Outcome|
|Explanation : Ensuring that benefits are paid only to those who meet eligibility requirements and that erroneous payments are detected and recovered are critical to the integrity of any benefit payment program.|
This measure was developed in 2003 to gauge States' effectiveness in detecting and establishing recoverable overpayments. Certain overpayments, attributable to individual behavior such as those resulting from individuals continuing to claim benefits after returning to work, are difficult to prevent. However, detection of these types of overpayments is not only more feasible but also cost effective. This measure sets a standard of comparing the overpayments each State actually establishes for recovery against an estimate of total recoverable overpayments, which are determined to be detectible through the States' normal integrity practices. (States' actual overpayment rates cannot be compared meaningfully, because these rates combine the effects of different eligibility conditions with the States' effectiveness in administering them).
The target was set using a regression model based on past program results and the unemployment rate. States are expected to implement overpayment detection and prevention activities within their benefit payment operations. Because of the unprecedented workload on States due to high unemployment and a contracted economy, ETA does not expect incremental improvement in the short term.
|Unit : percent-dollars|
Schedule and Milestones
Unemployment Insurance Program Letter (UIPL) No. 14-09 advised States of the special administrative transfer of funds. This document is available at http://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=2715.
|Availability of Funds
A memorandum from Labor Secretary Hilda L. Solis to Treasury Secretary Timothy F. Geithner was issued on February 26, 2009, informing Treasury of the amounts to be transferred from its Employment Security Administration Account (ESAA) to each State’s account in the Unemployment Trust Fund as its share of the $500 million. The Bureau of Public Debt was also provided with a copy of the letter and made funds available in the State accounts on March 2, 2009.
|Special Administrative Transfers
Special administrative transfers funds are available for States to draw-down from their UTF account as necessary. This is on-going, as needed by the State. There is no date by which States must draw down these funds.
Projects and Activities
The Assistance for Unemployed Workers and Struggling Families Act, Title II of Division B of the American Recovery and Reinvestment Act (Public Law No. 111-5), was enacted February 17, 2009, which provides for a special administrative transfer to all States totaling $500,000,000 within 30 days of the date of enactment. States need to take no action to receive their share of the distribution.
On March 2, 2009, the Department made a special administrative transfer to all States and territories totaling $500,000,000. Unemployment Insurance Program Letter No. 14-09 (dated February 26, 2009) lists the activities for which the administrative transfer may be used. These are listed in the section, “Special Administrative Transfers”.
States may use the administrative transfer only for:
•Implementing and administering the provisions of State law that qualify the State for incentive payments;
•Improved outreach to individuals who might be eligible by virtue of these provisions;
•The improvement of unemployment compensation (UC) benefit and tax operations, including responding to increased demand for UC; and
•Staff-assisted reemployment services for UC claimants.
Under the Recovery Act, each State’s share is calculated based on its proportionate share of FUTA taxable wages multiplied by the $500,000,000.
The Department provides other technical assistance on UI program policy and operations upon the request of the State agency. Outreach is provided through the routine monitoring activities conducted by the Regional and National Offices.
The funding provided through this special administrative transfer is currently available for draw-down by States. The Treasury Department will provide to Department, on a weekly basis, the amounts drawn-down by each State from their UTF accounts.
The Department is responsible for ensuring that States implement the various activities included in the Recovery Act, including the use of this special administrative transfer according to various operating instructions/guidance provided to the States. ETA is responsible for conducting program reviews in each of the States. These comprehensive State reviews will include:
•Activities related to the Emergency UC program, commonly known as EUC08;
•Activities related to the new federally-funded program which temporarily increases UC benefits by $25 a week;
•Adherence to federal reporting guidelines, as well as ensure accuracy in the reporting process as required by the Recovery Act;
•Overpayment detection and prevention activities, including the State's implementation of the National Directory of New Hires in Benefit Accuracy Measurement (BAM) program and their Benefit Payment Control operations the new federally-funded programs created by the Recovery Act;
•Follow-up on corrective action plans (if applicable) in their FY 2009 State Quality Service Plan that affect the new federally-funded program created by the Recovery Act.
Cost and Performance Plan
Consistent with the transparency and accountability objectives of the Recovery Act, the Department is reporting weekly financial activity related to the Unemployment Insurance Administration State grants. This information is captured by the Department of Treasury’s Bureau of Public Debt (BPD) and transmitted to the Department. The weekly financial activity reports are posted on ETA’s recovery website, the DOL recovery webpage and on Recovery.gov.
Additionally, the Department continuously collects and publishes extensive operational and financial data on the Unemployment Insurance program. These data are available on the ETA Web site: http://workforcesecurity.doleta.gov/unemploy/finance.asp.
Energy Efficiency Spending Plans
Program Plan Award Types
No Data Available