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References: UIPL 41-95 (August 24, 1995), "Draft Narrative Describing the System for Enhancing Unemployment Insurance (UI) Performance: The `UI Performs' System." Background: Beginning in 1993, a team of senior State Employment Security Agency (SESA) managers and Unemployment Insurance Service (UIS) staff known as the Performance Enhancement Workgroup (PEWG) developed the outlines of a comprehensive new closed-loop system for helping ensure continuous improvement in UI operational performance. This new system, called UI Performs, is described in UIPL 41-95, issued August 21, 1995, which solicited comments from SESAs. The UI Performs design is now being refined in the light of responses to UIPL 41-95; the system will be phased in over 3-4 years as the various components are completed. When complete and fully operational, UI Performs will comprise a renewed affirmation of long-standing principles for Federal-State cooperation; a redesigned process for operational planning and the execution of improvement activities; various mechanisms to ensure that performance in key areas at least exceeds certain minimum levels; and the redesign of many performance measurements plus the regular validation of key performance measures. The measures were selected to enable the UI system's success to be judged by how well it serves its ultimate customers--claimants and employers. Most of the data used to construct existing and new UI Performs measures are already in State databases; UI Performs should not appreciably increase measurement effort overall. The measurement redesign aspect embraces the results of three initiatives which predated UI Performs: Revenue Quality Control, which developed new measures for tax performance to replace those previously gathered under the Quality Appraisal (QA) system; the Performance Measurement Review (PMR) project, which updated QA benefit payment timeliness and quality measures; and data validation. The team designing UI Performs also proposed substantial changes in the Benefits Quality Control (BQC) system for measuring benefit payment accuracy, including the assessment of the accuracy of decisions to deny eligibility. This issuance deals with proposed modifications to the BQC program, intended to make it the benefits accuracy measure appropriate for UI Performs. The proposal was developed in part to help fulfill the Department's commitment to the Vice President's National Performance Review (NPR) to "reexamine the present mix of systems for improving the performance of the unemployment insurance program...[with] a substantial focus on the BQC program." (The NPR issue paper is Appendix I of the attached paper). The Proposal: The attached proposal was developed after a thorough review of BQC in the PEWG process. In the context of the NPR mandate, this set of changes represents how BQC's resources can "best be divided between measurement, analysis and direct support for program improvement" in the context of the larger UI Performs system. The following changes are proposed for BQC: Reductions in required sample sizes; Greater flexibility in how States verify claims data; A review of the existing BQC data record with the object of reducing its size; Elimination of the requirement that States release payment accuracy (overpayment and underpayment rates) in a public forum; More elaborate breakdowns of accuracy data when the Department reports them to help users more readily see the effect of different State laws and policies on overpayment and underpayment rates; The eventual measurement of the accuracy of decisions to deny, as well as to pay, claims; and Resources freed up by the reductions in measurement effort made available to pursue the goals of UI Performs overall, with an emphasis on continuous improvement. Next Steps and Timetable: Once the proposed changes are in final form, the Department will implement them incrementally as quickly as possible. Because of clearances, additional developmental work, and pilot testing, full implementation will take a few years. However, a number of key changes will be made in this calendar year. Elimination of State Release June 1996 Sample Size Reductions Summer 1996 Verification Flexibility Summer 1996 Denials Accuracy (Pilot Begins) October 1996 "Building Block" Data Breakdown January 1997 DCI Review/Changes January 1997 Denials Accuracy (Nationwide Start) October 1999 Action Required: SESA administrators are requested to share these materials with affected staff and comment as appropriate. Please send comments to Burman Skrable, Office of Quality Control, 200 Constitution Avenue, NW, Room S-4015, Washington, DC 20210, Att: TEUQ, with cc to appropriate Regional Office staff. Comments should be sent 45 days from the date of this UIPL.

References: Chapter IV, ET Handbook No. 384, Second Edition, 20 CFR 614.12 and 5 U.S.C. 8521(a)(2). Instructions: State Employment Security Agencies (SESAs) shall use the attached schedule to determine Federal military wages for UCX "first claims" filed beginning with the first day of the first week which begins after April 6, 1996, pursuant to 20 CFR 614.12. SESAs will continue to use the existing schedule for UCX "first claims" filed before the effective date of the attached revised schedule. As provided by 20 CFR 614.12(d), the attached schedule shall be published as a notice in the Federal Register. Action Required: Administrators should provide the above instructions and the attached revised schedule to appropriate staff.

References: The W-P Act, as amended; Workforce Investment Act (WIA), 20 CFR 652; Training and Employment Guidance Letter (TEGL) No. 2-97 and TEGL No. 2-97, Change 1. Background: The Secretary of Labor is issuing final planning allotments for each State's share of PY 1999 funds for basic labor exchange activities. The allotments will be published in the Federal Register. Allotment Formula: These allotments (Attachment) are based on the FY 1999 appropriation of $761,735,000 and are distributed by the statutory formula described in Section 6 of the Act. Section 6(b)(4) of the Act authorizes the Secretary of Labor to reserve up to 3 percent of the total fund availability to assure that each State will have sufficient resources to maintain statewide employment service (ES) activities. The setaside for distribution through an administrative formula for this program year is $22,312,050. The 3 percent distribution is included in the total final allotment. The setaside was distributed in two steps to States whose relative share of resources declined from the previous year. In Step 1, those States with a civilian labor force (CLF) below one million and that are also below the median CLF density were held harmless at 100 percent of their prior year relative share of resources. The remainder was distributed in Step 2 in pro rata shares to all other States that lost in relative share from the prior year but did not meet the size criteria for Step 1. Ten percent of the total sums allotted to each State shall be reserved for use by the Governor to provide performance incentives for public ES offices; services for groups with special needs; and for the extra costs of exemplary models for delivering job services. The data used are Calendar Year 1998 averages of CLF and number of unemployed individuals. Differences between preliminary and final planning estimates are caused by the use of Calendar Year data as opposed to the earlier data used for preliminary planning estimates. Postage Costs: Postage costs incurred by States during the conduct of ES activities are billed directly to the Department of Labor by the U.S. Postal Service. The total planning estimate does not include $18,000,000 of the total amount available, which is withheld for the payment of the States' ES penalty mail costs.

Background: The public employment and training system is poised for a period of significant change in funding and organization. The new sorting of responsibilities between and among the federal, State and local partners contained in both the current House and Senate legislation creates challenges and promising opportunities. ETA views technology as an indispensable component in helping our delivery systems address the effects of these challenges, to exploit latent opportunities, and to accelerate the nation's movement to a world class public employment and training system. Both the President and the Vice President have stressed that technology will play a key role in improving both education and training opportunities of all Americans and reduce the cost of government. With the reality of reduced budgets, all levels of government are being called on to deliver high-quality, easily- accessible services at a lower cost to the taxpayer, to position those services closer to the customer, and to retain the flexibility to respond to dynamic conditions in our labor markets. Conference Objective: With the potential of new employment and training legislation, this particular conference provides an excellent learning opportunity for those engaged in critical workforce development activities. Specifically, JETT*CON provides ETA's State and local partners the opportunity -- to learn how technology can be used to improve the operation and delivery of workforce development services, to see, touch, and feel these technologies first-hand, to become more knowledgeable consumers of technology. In addition, the commercial marketplace, and technology vendors in particular, will have the chance to gain a better understanding of and access to the emerging public workforce development marketplace. JETT*CON will provide a forum for ongoing discussion of our collaborative system-building efforts at all levels of government, with lively and provocative demonstrations on how today's and tomorrow's technology can be used in the delivery of public employment and training programs and services. In anticipation of block grants and program consolidation requirements, ETA has structured meetings and colloquia within the conference format to promote exchanges and networking between and among all system-building partners. JETT*CON provides a unique, integrated forum where all of ETA's system-building activities can conduct essential dialogues between organizations and experts, and share effective practices and experiences. Conference Overview: JETT*CON is a combination of integrated, coordinated events: pre- conference workshops, plenary sessions that will address topics of concern to all members of the employment and training community, concurrent meetings of most of ETA's system-building activities (i.e., One-Stop Career Centers, Enterprise/Pioneers, and America's Labor Market Information System), JETT*CON technology workshops and the JETT*CON exposition program. Content for the plenary sessions and concurrent meetings is under development and will be distributed to the field as soon as possible. JETT*CON's technology workshop and exposition program has been organized around integrated thematic tracks: Internet - technology used to access and use the Internet to improve program services. Operations - technology used to support the operation, administration, and management of public employment and training programs, their money, or their customers. Access - technology used to deliver information directly to customers or to establish new pathways for accessing available information resources. Training - technology used to deliver training services directly to the customers of the public employment and training system. Labor Exchange - technology used to match job seekers with job openings and employers with qualified applicants. Quality - technology used to support continuous improvement and total quality management programs. Several activities and events have been structured around each track, including: Educational Workshops -- an interactive, hands-on learning experience which focuses on the application of technology to that "track" and provides tools to assist consumers in choosing technologies and vendors. System Showcases and Presentations -- examples of exemplary uses of technology drawn from the public employment and training system. Exhibits -- more than 70 vendors that provide technologies germane to workforce development. New Product Demonstrations -- selected exhibitors will be asked to present new and exciting products that are of benefit to the public employment and training community. In addition to these activities, ETA's electronic replacement of the outdated Dictionary of Occupational Titles, O*NET, will be showcased. The conference is being co-sponsored by the National Alliance of Business (NAB) in partnership with several of ETA's national partner organizations (i.e., Enterprise Council, the American Association of Community Colleges, American Society for Training and Development, Human Resources Development Institute (AFL-CIO), National Association of Counties, National Association of Private Industry Councils, National Association of Workforce Development Professionals, National Governors Association, National Conference of State Legislatures, Interstate Conference of Employment Security Agencies, U.S. Conference of Mayors, the National League of Cities, and the National Occupational Information Coordinating Committee). Attendance: This conference is designed for leaders, policy makers, and practitioners of States and local governments engaged in planning for or implementing One-Stop Career Centers and local learning laboratories, developing labor market information delivery systems, engaging in system-building activities, and establishing or expanding programs of continuous improvement and quality services to benefit their customers. JETT*CON is planning on 1500 participants. There is no restriction on attendance. Everyone is invited to attend. However, attendance at a few business meetings conducted by selected groups will be by invitation only. Registration: A registration form is attached to this TEIN. It is being distributed to all State JTPA Liaisons, One-Stop Liaisons, State Employment Security Administrators, and State Worker Adjustment Liaisons. These individuals will then distribute the information as needed. Please complete the form and fax or mail it to: JETT*CON Registration Center c/o National Alliance of Business 1201 New York Avenue, NW Suite 700 Washington, DC 20005 Fax: (202) 289-1303 Attention: Makeda White Conference brochures are being sent to the following groups and organizations who will distribute them as needed: Regional Administrators All JETT*CON Partners LMI Liaisons The Enterprise/Pioneers will send brochures as part of a special mailing to their members and others in the JTPA community. Copies of this TEIN will be distributed to Job Corps, the Bureau of Apprenticeship Training, School-to-Work, and National Programs. These groups will then disseminate the TEIN to their constituencies. You may also register online by bringing up the JETT*CON Homepage. The URL address is http://www.doleta.gov/media/jettcon. Complete the online registration form and Email it according to the instructions. Do not send any credit card information over the Internet. All individuals who register online will be invoiced. You will then have your choice of payment methods. Special registration instructions and a letter will be sent to individuals who had registered for JETT*CON in January, paid by personal check or credit card and did not request a refund. Housing Information: Hotel space is being held until June 5, 1996. A limited number of guest rooms are available at the government rate ($124). Please contact the hotel directly for reservations (hotel contact information is contained on the registration form). Be sure to mention JETT*CON to secure the government rate. Action: Please share this information with appropriate staff who may be interested in attending JETT*CON.

Background: Preparing today's young people for tomorrow's high-skill jobs is essential to our Nation's continuing success. For more than a decade, the JTPA Summer Youth Employment and Training Program has introduced young people to the world of work and has helped them better understand how to apply the knowledge and skills they learn in school, while paving the way for brighter, more productive futures. In recent years, the Department's Summer Challenge has urged businesses to get involved -- to provide summer jobs for teens in their communities, to provide funding for programs to help those younger teens, to serve as mentors in the schools, and so on. The Department has also urged the private sector to play a larger and more vital role in preparing young people for the world of work, recognizing that employers know best the sorts of skills they need in their future employees to remain competitive. As demonstrated in previous years, States know the importance of private sector involvement in youth efforts and have, for the last few years, responded to the Department's Challenge by initiating a variety of private sector campaigns. Today, given the reduced funding of JTPA programs, private sector participation is more important than ever. Therefore, the Department encourages you and the local areas in your State not only to continue, but to intensify efforts to engage the private sector in local summer youth job programs this year. Technical Assistance: To this end, the Department is sending to the training and employment system SummerWorks A Compendium of 1995 Private Sector Summer Youth Jobs Initiatives and School-to-Work Summer Programs, a "how-to" booklet developed by staff of the San Francisco Regional Office. The booklet is based on a series of interviews with private sector employers and employment and training practitioners active in youth initiatives in Arizona, California, Hawaii, and Nevada. ETA's Regional Offices will be distributing this booklet, along with a cover letter from Assistant Secretary Tim Barnicle, to your offices and to all SDA's in the State, in order to share successful strategies for developing private sector summer youth jobs. As additional technical assistance materials become available, they will also be provided to you. Separate Cover: SummerWorks A Compendium of 1995 Private Sector Summer Youth Jobs Initiatives and School-to-Work Summer Programs.

References: Section 3304(a)(9)(B) of the Internal Revenue Code, as amended; 20 CFR 616; ET Handbook No. 399; UIPL 28- 97, dated April 24, 1997; UIPL 15-98, dated February 12, 1998; UIPL 27-98, dated May 6, 1998; and the ICON User Guide. Background: Administration of the combined wage claim (CWC) program involves the transfer of wages, exchange of information pertaining to CWC status/disposition of transferred wages, quarterly billing of benefit charges to transferring States and the quarterly reimbursement of benefit charges between States. These administrative activities require the use of the Request for Wage Transfer (TC-IB4), the Report on Determination of CWC (TC-IB5), the Quarterly Statement of Benefits Paid to Combined Wage Claimants (TC-IB6) and the U.S. Department of Treasury's On- line Unemployment Trust Fund Accounting System (UTFAS). To increase the quality and timeliness of benefits paid under the CWC program and to create a more efficient method for handling the administrative activities, the release of ICON applications for handling CWC transactions began in 1989. ICON applications to handle the transmission of electronic TC-IB4 and TC-IB5 data were released to the States in 1989 and 1990, respectively. Currently, all States except the Virgin Islands are operational on these applications. In 1997, the U.S. Treasury expanded its UTFAS's capabilities to allow States to make quarterly IB6 reimbursements through fund transfers between States' accounts. Using the UTFAS eliminates CWC administrative costs associated with the use of checks or electronic fund transfers between banks and the potential loss of interest income to the UTF. Currently, there are forty-four States using this system for reimbursements. The TC-IB6, commonly called the quarterly bill, is the final module in automating the administrative processes between States that are necessary for the combined wage program. This module was completed and tested in 1997. National distribution was delayed because of the year 2000 considerations. However, as of late 1997, 19 States had requested and received the application code from Lockheed Martin. Therefore, after consultation with the Interstate Conference of Employment Security Agencie's Interstate Benefit (IB) Committee, the application code was released to all States with an implementation requirement of the billing cycle for the quarter ending March 31, 1999. Before and after the distribution of the TC-IB6 application, the requirements of the system were explained at sessions held at the annual meeting of interstate program and information technology staff. SESAs continue to be allocated special funding to install, interface, and maintain the ICON applications. Reminder: Some SESAs have not installed the required applica- tions to date. The time frame for issuing the first quarter (ending March 31, 1999) TC-IB6 timely, is extended until May 15, 1999. Therefore, there is still time for States to meet the implementation requirement. SESAs' failure to electronically transmit the required data will have an adverse effect on all other States as they must continue to maintain a manual system in order to handle hardcopy IB6s received from such States. Requirement for Conformity and Compliance: Section 3304(a)(9)(B) of the Federal Unemployment Tax Act requires States to participate in any combined wage claim arrangement approved by the Secretary of Labor (in consultation with the State agencies). Title 20 C.F.R. 616.13, in pertinent part, implements this arrangement by providing that: - Each State agency will cooperate with every other State agency by implementing such rules, regulations, and procedures as may be prescribed for the operation of this [combined wage] arrangement. Effective no later than May 15, 1999, electronic data communication is the prescribed procedure for handling IB6 billings by CWC Paying States. Transition Procedures: States that have not maintained an electronically accessible TC-IB5 file will not be able to create TC- IB6s that carry the key identifying the TC-IB5 used in the calculation of the charges. States receiving these records will have to manually edit the charges. However, States should not delay TC-IB6 implementation until they build TC-IB5 files. Recognizing that some States may not meet the May 15, 1999, deadline, transition procedures were discussed with the IB Committee at its February 1999 meeting. The discussion centered around the issue of whether or not States that have the ICON TC-IB6 application in place have to make a distinction between States that were operational and those that were not creating and sending electronic TC-IB6s. The decision was that States with the electronic TC- IB6 installed should create and send both an electronic and a hardcopy IB6 to each State. This will eliminate the sorting burden for the paying States that are operational on the TC-IB6. The TC- IB6 data addressed to States that are not operational by May 15, 1999, will thereafter be discarded by the HUB. Action Required: State Administrators are requested to take the necessary actions to ensure that, no later than May 15, 1999, all quarterly IB6 bills will be transmitted and received via ICON.

References. 20 CFR 632.4 and DINAP Bulletin 94-2 and 94-29. Background. The Department of Health and Human Services (DHHS) published revised poverty income guidelines in the Federal Register on March 4, 1996. The Job Training Partnership Act (JTPA) regulations at 20 CFR 632.4 provide for the use of DHHS poverty guidelines in determining economically disadvantaged persons and program eligibility. However, DHHS has definitions of "income" and "family" which are not applicable to the JTPA program. JTPA definitions can be found at 20 CFR 632.4. Action. The revised guidelines are effective from the date of this bulletin. Questions. Contact your DINAP Federal Representative at (202) 219-5511.

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