1. $500 Million Special Distribution Provided Under ARRA: Current Guidance
January 30th 4:00 - 5:00pm ET

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6. Unemployment Insurance
Featured Speaker
Presenter
Dale Ziegler
Deputy Administrator
Unemployment Insurance

7. Agenda/Objectives
The purpose of this webinar is to further discuss Training and Employment Guidance Letter encouraging states to expend their shares of the $500 million distribution provided by the ARRA
To inform states that the Department will formally request state plans for expending the funds, and to give participants an opportunity to ask questions.

8. What’s the History?
The American Recovery and Reinvestment Act (ARRA) was enacted on 2/17/2009 with the objective of providing economic stimulus by injecting funds into the economy.
As part of ARRA, $500 million was distributed among states shortly after enactment and deposited into a separate account in each state’s Unemployment Trust Fund account based on each state’s proportionate share of taxable wages in calendar year 2007.

9. What’s the History? The law specified the funds could be used for:
Implementing and administering the provisions of state law that qualify the state for the Unemployment Insurance (UI) Modernization money;
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.

10. What’s the History?
The law did not specify any deadline before which the funds had to be obligated by states, as, for example, with UI Administrative funds per the appropriation language.
However, given the objective of ARRA to help immediately stimulate the economy and create jobs, there is concern that less than 40 percent of the amount distributed has been expended after nearly three years and some states have spent none of their allocation.

11. Reasons for Attention on the $500 Million
Administration Push for Accelerated Spending. In order to meet the spirit of ARRA to stimulate the economy, the White House is actively tracking expenditures of ARRA funds and has recently required federal agencies to develop accelerated spending plans and increased reporting requirements.
Office of Inspector General. In an OIG report entitled “Recovery Act: More Than $1.3 Billion in Unemployment Insurance Modernization Incentive Payments Are Unlikely to be Claimed by States” it was recommended that “ETA request spending plans from states and for states without adequate plans, to provide assistance to ensure funds are spent as intended.”

12. Taking Action to Promote Spending
ETA issued Training and Employment Guidance Letter on 1/5/2012 strongly encouraging states to expend the funds
ETA has recently requested informal information from states on expenditure plans and status of expenditures – still need to hear from some.
ETA intends to request formal expenditure plans from states and is seeking OMB approval to do so. We expect making a formal request in the summer.
Independently, NASWA has also initiated a survey regarding the $500 million and we have agreed to share information.

13. What Should States Do?
Develop a spending plan if you do not already have one.
Review your plan to determine if there are methods to accelerate expenditures (more frequent invoicing, reordering priorities for the funds for activities than can be implemented more immediately, etc.)
Carefully track and monitor obligations and expenditures.
Target the funds for key program improvements.

14. Strategic Use of Funds
Using the money strategically for staff is one of the fastest ways to expend the money quickly.
Addressing staff shortages in the UI program that are causing states to fail performance standards and creating backlogs in functions like non-monetary determinations and appeals
Improving program integrity by ramping up your Benefit Payment Control Staff temporarily
Increasing state capacity to provide Reemployment and Eligibility Assessments for UI claimants
Using the funds to make additional reemployment services available to UI claimants

15. Conclusion Attention on the $500 million is likely to continue.
States have a responsibility to utilize the funds speedily and prudently.
A goal to have all the funds expended by September 30, 2013 has been established.
Officials will be monitoring progress toward the goal which will require our need for continued feedback.
ETA is happy to work with states to develop and implement their spending plans.

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Question and Answer Period
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17. Speakers’ Contact Information
Gay Gilbert:
Phone: (202)

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