DIRECTIVE	:	UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 40-99
TO	:	ALL STATE EMPLOYMENT SECURITY AGENCIES
FROM	:	GRACE A. KILBANE Director Unemployment Insurance Service
SUBJECT	:	Interstate Connection (ICON) Programmer

1. Purpose. To advise States of the opportunity to submit a Supplemental Budget Request (SBR) for funding of an ICON programmer staff position.

2. References. Section 3304(a)(9)(A) and (B)of the Internal Revenue Code of 1986; Code of Federal Regulations, Chapter 20 Section 616; Interstate Benefit Payment Plan; and ET Handbooks Nos. 336, 392 and 399.

3. Background. Since the early 1980s, adjustments have been made to States' MPUs to reflect interstate program changes. States have also automatically received a special interstate allocation to encourage: participation in the quarterly Interstate Crossmatch; the Interstate Reciprocal Overpayment Recovery Arrangement; the use of telephone contacts to resolve issues with interstate claimants; and immediate attention to programming necessary to install and interface ICON interstate and combined wage applications to State wage and benefit files.

   The MPU adjustments and special interstate allocations will continue to fund interstate activities resulting from changes to the interstate and combined wage programs that were not in place when the last cost model studies were conducted. However, the allocation of one staff year previously included in the special allocation for an ICON programmer were not included in the Fiscal Year (FY) 2000 planning targets that were recently released. For FY 2000, this position will be funded through the SBR process and included in the FY 2000 final allocations.

4. Reason for Change. Over the past three years, changes to State operating procedures have required changes to interstate procedures which necessitated changing or creating new ICON applications. Prompt attention to the installation and maintenance of ICON applications is necessary for the proper operation of the interstate and combined wage programs and the exchange of interstate statistical data. Each State's level of use of the ICON applications affects the claims operations and the unemployment (total and insured) calculations of all other States. However, ICON applications released during the past several years have not been installed by all States in a timely manner. The decision to change the method of funding for the ICON programmer position was made in consultation with the Interstate Conference of Employment Security Agencies' Interstate Benefits Committee. This change reflects a need for an assurance from each State that programming associated with ICON applications and necessary system maintenance will receive prompt attention, particularly as more UI system wide applications are moved to the ICON.

5. Guidelines for Preparation of the SBR. The Program and Budget Plan (PBP) Handbook contains instructions and procedures for SBRs. These PBP instructions remain in place each year.

6. Action Required. State Administrators are requested to ensure that: (1) appropriate staff receives a copy of this directive; and (2) a SBR for the State's ICON programming needs for fiscal year 2000 is received by the appropriate Regional Office by C.O.B. July 30, 1999. Regional Offices will submit the SBRs to the National Office by August 6, 1999.

7. Inquiries. Direct any questions to the appropriate Regional Office.