NASWA LEGISLATIVE UPDATE. Marc Katz Congressional Affairs Director Unemployment Insurance Committee, May 14, 2015

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1 NASWA LEGISLATIVE UPDATE Marc Katz Congressional Affairs Director Unemployment Insurance Committee, May 14,

2 UI and A&F Joint Meeting July 9-10, 2015 Hyatt Chicago Magnificent Mile hotel at the rate of $ Additional Information: Click Here. Purpose: UI Administrative Funding 2

3 SIGNIFICANT ISSUES OVER 12 MONTHS UI Consortium Language: Includes retroactive language (to fiscal year 2011) providing consortium states with an additional year to spend their Unemployment Insurance Information Technology Modernization grants. State Set-Aside: The 15 percent State set-aside OR Governor s Reserve was increased from the current 8.75 percent to 10.0 percent. With the recent passage of Workforce Innovation and Opportunity Act (WIOA) reaffirming the 15 percent set-aside, NASWA and the National Governors Association believe there is an opportunity to secure the full 15 percent for Program Year 2015 with the new Congress in January. Workforce Innovation and Opportunity: Comments due June 15 High-Level Review: Please click here Preamble Questions: Please click here for the Preamble Questions. 3

4 Occupational Classification of Employees: Quarterly Wage Reports: Trade Bill The Trade Facilitation and Enforcement Act of 2015 (Trade Promotion Authority or Fast Track S. 1314) will be voted upon by the Senate today. It requires the occupational classification of employees when filing quarterly wage reports. 4

5 Trade Bill - CONTD Imposes costs on States and Employers. NASWA surveyed States. Providing the SOC Codes is Difficult and Expensive NASWA provided detailed Information to the Congressional Budget Office on the costs. CBO estimates that in total, this provision: Would cost $274 million over the period. Because those data are not currently collected, employers, states, and DOL would need to develop systems for reporting and collecting that information. Based on preliminary information from the Bureau of Labor Statistics, developing those federal systems would cost $208 million over the period, CBO estimates. Outlook: The bill does not have sufficient votes to pass the and there is heightened concern about the SOC codes for States and Costs to employers. 5

6 WIOA NASWA Letter NASWA has sent the following letter to all states highlighting areas where guidance is needed and requesting input from states. It is slated to be sent to USDOL is the first week in February. The issues include the following: One-stop Procurement One Stop Infrastructure Funding Performance Accountability Information Systems Unemployment Insurance Ongoing Funding for Statewide Activities Redirection of Youth Grant Eligible Training Provider List 6

7 WIOA NPRM: UI Issues The NPRM Requires UI Assistance In The One-stop Centers With Either Onsite Staff Or By Phone Or Via Other Technology, as Long as Assistance Is Provided By Trained And Available Staff And Within A Reasonable Time. The Preamble Portrays The Regulation As Requiring A Separate Customer Service System For Customers In The One-stop Centers. In The Absence Of Additional Funding, The Regulation Should Be Clarified To Allow For UI Assistance Through Existing Customer Service Resources, Especially Those Currently Available By Internet Or Telephone. Source: Section

8 One Stops and UI Strengthens linkages between the one-stop delivery system and the unemployment insurance programs Source: (WIOA sec. 134(d)(1)(A)(vii)(III)); NPRM: Federal Register /Vol. 80, No. 73 /Thursday, April 16, 2015 / Proposed Rules 8

9 UI Claimants Proposed new language was also added to (b)(3) to ensure that ES staff provide information about UI claimants ability or availability for work, or the suitability of work offered to them, to UI staff. According to the NPRM, sharing such information with UI staff will help accelerate claimants return to employment. 9

10 WIOA Reemployment WIOA added language to sec. 7(a) of the Wagner-Peyser Act reemphasizing the use of funds to support reemployment and related services to UI claimants. Reference: Page Federal Register / Vol. 80, No. 73 / Thursday, April 16, 2015 / Proposed Rules 10

11 HOW DOES A STATE MEET THE REQUIREMENT FOR UNIVERSAL ACCESS TO SERVICES PROVIDED UNDER THE ACT? Labor exchange services must be available to all employers and job seekers, including unemployment insurance (UI) claimants, veterans, migrant and seasonal farmworkers, and individuals with disabilities. Source: Federal Register / Vol. 80, No. 73 / Thursday, April 16, 2015 / Proposed Rules 11

12 Merit Staff WIOA stipulates that only State merit staff may provide Wagner-Peyser services. Definition of wage record. Please see Federal Register / Vol. 80, No. 73 / Thursday, April 16, 2015 / Proposed Rules. 12

13 KEY PROVISIONS The fiscal 2015 appropriations bill provides $13.3 billion for USDOL, including $7.7 billion in direct appropriations and $4.0 billion from trust funds, primarily for black-lung benefits and the operating costs associated with the unemployment insurance program. The total includes $1.8 billion in advance appropriations for FY There is a 1.4 percent increase for each of the WIA formula programs for Adult, Youth and Dislocated Workers. There is no funding for the Administration s Workforce Innovation Fund. The Governor s Reserve was increased from 8.75% to 10%. Overall funding for Unemployment Insurance State Administration was reduced by 3.6 percent compared to fiscal year (This is due to declining workload) 13

14 HOW DOES A STATE MEET THE REQUIREMENT FOR UNIVERSAL ACCESS TO SERVICES PROVIDED UNDER THE ACT? In each local workforce investment area, in at least one comprehensive physical center, staff funded under the Act must provide labor exchange services (including staff-assisted labor exchange services) and career services as described in

15 WHAT ARE THE REQUIREMENTS UNDER HE ACT FOR PROVIDING REEMPLOYMENT SERVICES AND OTHER ACTIVITIES TO REFERRED UNEMPLOYMENT INSURANCE CLAIMANTS? In accordance with sec. 3(c)(3) of the Act, the State agency, as part of the one-stop delivery system, must provide reemployment services to UI claimants for whom such services are required as a condition for receipt of UI benefits. Services must be appropriate to the needs of UI claimants who are referred to reemployment services under any Federal or State UI law. Source: Federal Register / Vol. 80, No. 73 / Thursday, April 16, 2015 / Proposed Rules 15

16 Registration with ES (b)(2) refers to a requirement that UI claimants must be registered for ESs in accordance with the UC law of the State with which they file their claim. The States may use Wagner-Peyser funds to pay for eligibility assessments, which is a required activity that must be made available when appropriate. 16

17 Work Test Section requires administration of the work test, including eligibility assessments, as appropriate, and assistance to unemployment insurance claimants. 17

18 MSFW MIGRANT AND SEASONAL FARMWORKERS That offices designated as significant MSFW multilingual ES offices must provide services to MSFWs in their native language, whenever requested or necessary and to acknowledge that Spanish is not the only native language spoken by MSFWs whose first language is not English. Source: Federal Register / Vol. 80, No. 73 / Thursday, April 16, 2015 / Proposed Rules 18

19 FY 2015 Appropriations On Thursday, December 11 th, the U.S. House of Representatives passed H.R. 83, The Consolidated and Further Continuing Appropriations Act, The U.S. Senate followed suit and passed the measure on Saturday, December 13. The President signed the measure into law on December 16, 2014 as Public Law No: This $1.1 trillion spending package would fund most government operations for the remainder of fiscal year 2015, including the U.S. Department of Labor (USDOL). It also includes several policy changes important to state workforce agencies. 19

20 Specific Details on USDOL Funding Levels Training & Employment Services Provides $2.6 billion, $36 million more than FY 2014 for Workforce Investment Act grants to states, for Adult, Youth, and Dislocated Worker employment and training activities. ($776.7 million for Adult; $831.8 million for Youth; $1 billion for Dislocated Workers). Provides $262.4 million for the State Set-Aside; an additional $36 million compared to fiscal year

21 Specific Details on USDOL Funding Levels Federally Administered Programs Provides $220.8 million for Dislocated Workers Assistance National Reserve. Provides $46 million for Native American Programs. Provides $81.8 million for Migrant and Seasonal Farmworkers programs. Provides $79.6 million for YouthBuild activities. Provides $4 million for the Workforce Data Quality Initiative. National Activities Provides $82 million for Ex-Offender Activities. Provides $4 million for the Workforce Data Quality Initiative. 21

22 Specific Details on USDOL Funding Levels National Activities Provides $82 million for Ex-Offender Activities. Provides $4 million for the Workforce Data Quality Initiative. Other Activities Provides $710.6 million for Trade Adjustment Assistance, including benefit payments, allowances, training employment and case management services, and related State administration. Provides $1.6 billion for the Jobs Corps Program. 22

23 Specific Details on USDOL Funding Levels Unemployment Compensation Provides $2.7 billion for state operations of unemployment insurance programs; almost $44 million less than fiscal year Provides $80 million for in-person reemployment and eligibility assessments. Provides $12.8 million for National Activities. 23

24 Specific Details on USDOL Funding Levels State UI Operations Employment Service Provides $664 million for state employment services programs and activities. Provides $19.8 million for National Activities, including the administration of the work opportunity tax credit. Provides $62.3 million for Foreign Labor Certifications. Provides $60.1 million for Workforce Information, National Electronic Tools, and One-Stop System building under the Wagner-Peyser Act known as One Stop/LMI. 24

25 Specific Details on USDOL Funding Levels Bureau of Labor Statistics Provides $65 million in state grants for the Cooperative Statistics Program from the Employment Security Administration account in the Unemployment Trust Fund. Veterans Employment and Training Service Provides $175 million for Jobs for Veterans State grants. Provides $14 million for Transition Assistance Program. Provides $39.4 million for Federal Administration. Provides $3.4 million for the National Veterans Employment and Training Services Institute. Provides 38.1 million for Homeless Veterans. 25

26 Specific Guidance From Congress on USDOL Reports and Initiatives Report: Status of Consortium Efforts on Unemployment Insurance Information Technology Grants There is significant concern that automation acquisition being carried out through consortia of States has fallen critically behind schedule and that funds provided for this purpose, as far back as fiscal year 2011, are at risk of lapsing before the projects are completed. The Department is directed to collect and approve detailed automation acquisition plans for each project that include lifecycle systems cost estimates and implementation timelines, and to submit to the House and Senate Committees on Appropriations a report by April 1 of each fiscal year, until funds available to consortia are expended or expire, that includes the status of all project funds and analysis of each project's progress toward executing the acquisition plan. 26

27 Specific Guidance From Congress on USDOL Reports and Initiatives Report: UI Overpayments The Office of Inspector General (OIG) plans to initiate a long-term, cyclical oversight program to independently review, on a prioritized basis, individual States' efforts to identify and recover UI overpayments. The OIG should conduct as many multi-state reviews as funding will allow in fiscal year 2015 and submit a report to the House and Senate Committees on Appropriations by March 31, 2016 on the progress and effectiveness of this effort. 27

28 Major Discretionary Budget Table Source: FFIS 6/ Data reflect program years rather than fiscal years 8/ These programs receive an advance appropriation. FY2013 1/ FY 2014 President s Budget FY 2015 FY 15 vs. FY 2014 Omnibus/ 3 Dollar Percent USDOL 6,176 6,181 6,168 6, % Dislocated Worker Assistance 6/ ,002 1,002 1, % Adult Training 6/ % Youth Training 6/ % Workforce Innovation Fund Employment Services/6 UI State Administration % % 2,996 2,882 2,885 2,

29 NASWA Budget Table Further Resources for H.R. 83 Click here for the USDOL Legislative Language in H.R. 83. Click here for the Explanatory Statement that accompanies H.R. 83 for USDOL. Click here for USDOL budget tables in H.R. 83 prepared by the House and Senate Committees on Appropriations. Click here for a NASWA budget table comparing funding levels between fiscal 2014 and fiscal 2015 for USDOL programs. 29

30 Thank You! Questions or Comments 3