DIRECTIVE	:	UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 33-00
TO	:	ALL STATE EMPLOYMENT SECURITY AGENCIES
FROM	:	GRACE A. KILBANE Administrator Office of Workforce Security
SUBJECT	:	Interstate Connection (ICON) Programmer

1. Purpose. To advise States of the opportunity to submit a Supplemental Budget Request (SBR) for funding of the subject 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. Prior to Fiscal Year (FY) 2000, States were allocated one staff year for ICON programming. In FY 2000, States submitted SBRs to justify ICON programming funds in the base allocations. For FY 2001, the SBR process for ICON programming funds remains in effect. The salary and benefit costs for up to one staff year will be funded through the SBR process and included in the FY 2001 final allocations. The non-personal services (NPS) and administrative staff and technical (AS&T) costs associated with the ICON programming staff year are included in the base allocation and should be excluded from the SBRs. The decision to use the SBR method of funding for the ICON programmer position was made in consultation with the Interstate Conference of Employment Security Agencies' Interstate Benefits Committee.

   The SBR funding process for an ICON programmer position does not change other interstate program funding. Each State will continue to receive adjustments to its minutes per unit (MPUs) to reflect interstate program changes and special interstate allocations to encourage: participation in the quarterly Interstate Crossmatch; participation in the Interstate Reciprocal Overpayment Recovery Arrangement; the use of telephone contacts to resolve issues with interstate claimants; and, participation in regional and national meetings pertaining to the interstate and combined wage claim programs.

4. Rationale. This process is intended to focus attention and resources on the programming necessary to install and interface ICON interstate and combined wage claim applications to State wage and benefit files and to provide on-going maintenance because these applications affect other States' performance and customer service. As States move to remote claimstaking and call center environments, modifications 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 efficient operation of the interstate and combined wage claim 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. Each State should ensure 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. ET Handbook No. 336 contains instructions and procedures for the preparation of SBRs. The budget justification should include a broad description of work to be accomplished during the year.

6. Action Required. State Administrators are requested to ensure that: (a) appropriate staff receive a copy of this directive; and (b) the SBR for the State's ICON programming needs for FY 2001 is received by the appropriate Regional Office by C.O.B. August 18, 2000. Regional Offices will submit the SBRs to the National Office by August 25, 2000, along with its funding recommendation.

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