1. Purpose.This advisory provides guidance for funding of ATAA administrative costs.
2. References. Training and Employment Guidance Letter (TEGL) No. 10-02; TEGL No. 2-03.
3. Background.As described in TEGL No. 2-03, the source of administrative funds for ATAA is the State (UI) Administration account in the State Unemployment Insurance and Employment Service Operations (SUIESO) appropriation. However, no additional funds have been appropriated to cover the administrative costs of ATAA, and funds used for ATAA reduce the funds that otherwise would be available for state UI administration.
Administrative costs related to the Health Coverage Tax Credit (HCTC) for ATAA eligible individuals are funded by National Emergency Grants (NEGs) provided for HCTC administration. States should submit funding requests according to the NEG application guidelines.
Participation in ATAA is projected to total about 7,000 individuals nationwide in FY 2004.
4. Administrative Funding.
a. Implementation. Due to the small number of ATAA participants, implementation costs are expected to be minimal, and no special implementation funding is anticipated. States that have implemented ATAA have been able to use existing systems for making payments and for record keeping. If there are extraordinary circumstances requiring implementation funds, Supplemental Budget Requests will be considered.
b. Ongoing Costs. Funding for ATAA activities will be provided at the following rates: 30 minutes for the initial enrollment and assessment activity, 15 minutes per month per enrollee to determine continued eligibility and payment, and 232 minutes for appeals.
States should show the calculation of staff years earned for these activities in the Comments section of the quarterly Trade UI-3 report and enter the staff years earned on line 6. States should enter non-personal services (NPS) costs, such as system maintenance and check-writing, on line 11.
c. List of ATAA Recipients. The costs of creating the list of ATAA recipients for HCTC eligibility and transmitting it to the Internal Revenue Service must be funded from the NEGs. UI funds may not be used to fund the costs associated with the HCTC program.
5. Benefit Funds. As with the Trade Adjustment Assistance program, funding for benefits will be provided in advance on a quarterly basis. States should provide Regional Offices with estimates of need by the fifteenth of the month prior to the beginning of each quarter to ensure a timely advance. Should these funds near depletion, requests for additional funding will be accepted at any time during a quarter. Funds will be made available to states through their unemployment insurance agencies.
6. Reporting. States should report ATAA benefit outlays on a separate SF 269. States should track ATAA administrative costs in fund ledger code 219 and include these costs on the SF 269 for the regular UI grant.
7. Inquiries. Direct questions to Tim Felegie at (202) 693-2934.
| RESCISSIONS | EXPIRATION DATE |
| None | December 31, 2004
|