NATIONAL UNEMPLOYMENT INSURANCE PROGRAM UPDATE GAY GILBERT, ADMINISTRATOR UNEMPLOYMENT INSURANCE USDOL/ETA JUNE 27, 2017

Transcription

1 NATIONAL UNEMPLOYMENT INSURANCE PROGRAM UPDATE GAY GILBERT, ADMINISTRATOR UNEMPLOYMENT INSURANCE USDOL/ETA JUNE 27, 2017

2 UI NATIONAL UPDATE Where is Our Program Today? Quick Look at the Data Strategic Investments/Initiatives FY 2018 Budget What s Next? 2

3 WHERE IS THE PROGRAM TODAY? Lowest workload since the 70s States experiencing constrained funding which is limiting staffing capacity As a result, states continue to struggle with meeting performance standards and integrity measures Many, if not most, states are not ready for the next recession Over half of state trust funds are not adequate Ability to ramp up challenging due to low staffing levels Many states have severely restricted benefit availability Many state taxing structures do not fairly distribute the burden of funding the program across industry sectors IT modernization still needed in a majority of states 3

4 A Quick Look at the Data 4

5 Unemployment Rates by State Seasonally Adjusted, April 2017 (U.S. = 4.4%) Rates in % 0 to 4 4 to 5 5 to 6 6 to 13 Source: USDOL/BLS 5

6 First Payments in the Regular Program 12 1,400,000 Total Unemployment Rate (%) TUR (L) First Payments (Moving Average, R) 1,200,000 1,000, , , ,000 First Payments 2 200, Source: US DOL/BLS and US DOL/Office of Unemployment Insurance

7 12 Average Duration on UI in the Regular Program Total Unemployment Rate (%) TUR (L) Average Duration (R) Average Duration (Weeks) Source: US DOL/BLS and US DOL/Office of Unemployment Insurance

8 8 0% 10% 20% 30% 40% 50% 60% 70% U.S. Recipiency Rates (All Programs)

9 80 First Quarter 2017 Recipiency Rate (Insured Unemployed / Total Unemployed) 70 States with under 26 weeks of Unemployment Compensation Available Insured Unemployed / Total Unemployed (%) States are under the Average Recipiency Rate Average: 30.8% 10 0 ND MA NJ IA VT MT AK MN CT PA RI HI WI CA NY OR IL WY DC ME ID WV CO MI DE NV WA AR MD UT KS OH SD NE MO TX IN OK NH NM VA KY SC AL MS AZ LA GA NC TN FL States 9

10 ACTIONS TAKEN BY STATES TO REDUCE BENEFITS: States Reducing Benefit Duration: Arkansas (9-20) Florida (12-23) Georgia (14-20) Kansas (16-26) Michigan (20) Missouri (13-20) North Carolina (5-20) Pennsylvania (18-26) South Carolina (20) Other Actions Used to Reduce Benefits: Elimination of dependents benefits Raised qualifying earnings Changed definitions of misconduct Increased number of weeks of employment needed to requalify for UI after being declared ineligible due to misconduct 10

11 STATE BENEFIT ADEQUACY REPORT Coming Soon.A yearly report produced by the Office of Unemployment Insurance and published on the Department of Labor website that will present approximately 20 metrics describing each state s benefit payment levels, including: 2017 * Benefit Replacement Rates Benefit Adequacy * Benefit Recipiency Rates, and Report * Average Total Benefits Per Recipient The purpose of the report is to provide a comparison of benefit adequacy across states. 11

12 Exhaustion Rate in the Regular Program Total Unemployment Rate (%) TUR (L) Exhaustion Rate (R) Exhausiont Rate (%) Source: US DOL/BLS and US DOL/Office of Unemployment Insurance

13 TOTAL BORROWING OVER TIME AND PROJECTED BORROWING THROUGH END OF FY End of FY Borrowing Billions $ Actual Private Borrowing Forecast Private Borrowing Forecast 13

14 Weeks Claimed, Civilian Labor Force, and TUR , Civilian Labor Force (R) 160, , ,000 % TUR (L) 100,000 80,000 60,000 Thousands 4 2 Weeks Claimed (R) 40,000 20,

15 SIGNIFICANT CHANGES IN STATE TAXES SINCE THE RECESSION ENDED Increased Issued Bonds to Taxable Wage Base 1 Repay Title XII Arkansas Arizona Colorado Colorado Florida Idaho Illinois Illinois Indiana Michigan Kansas Nevada Kentucky Pennsylvania Mississippi Texas New York Rhode Island South Carolina Changed Experience South Dakota Rating System Vermont New Mexico Wisconsin South Carolina 1. May include a further indexing of the wage base, a phased-in increase, or a delayed increase. 15

16 2.5 Average High Cost Multiple, 2007 & 2016* 2 AHCM 2007 AHCM WY OR MS UT NE OK SD VT AK MT ID IA LA WA HI NM ME PR DC NH FL NC MN KS AR TN MI AL VA MD GA NV WI MO SC CO DE NJ RI ND IL AZ PA MA CT WV KY NY OH TX IN CA VI Source: DOL/OUI *2016 AHCM is Prliminary

17 Trust Fund Solvency Report This annual publication provides an opportunity to evaluate and compare each state s Unemployment Insurance trust fund reserve. Highlights form the 2017 report include: 21 states have reached what is considered the minimal level of adequate solvency As of Dec 2016, one state and one jurisdiction still had outstanding Federal loans and face a potential FUTA credit reduction in 2017 Six states have outstanding private borrowing of over $7.0 Bil. The total of Title XII advances since 12/31/2007 is over $162Bil. The report can be found here: 17

18 APPROPRIATIONS FOR STATE UI ADMINISTRATION PER 2.0 MILLION AWIU Adjusted into constant 2005 dollars Dashed Line displays inclusion of Y2K funds in FY98 and FY $ Billions Fiscal Year 18

19 State Supplemental Funding for UI Millions Source: National Association of State Workforce Agencies Fiscal Year 19

20 20

21 21

22 22

23 IPIA UI IMPROPER PAYMENT RATE Improper Payments Information Act (7/1/2015 6/30/2016) Estimated Overpayment Rate (OP) % Estimated Underpayment Rate (UP) 0.462% Total Improper Payment Rate*(OP + UP) % Total Estimated Amount Improper Paid $3.563 *Excludes improper payments determined technically proper under State law Dollar amounts are in billions. Based on completion rate of 100% of BAM cases 23

24 Base Period Wage Iss. Able & 0.465% Available 0.596% Separation Issues 1.407% Base Period Wage Iss % ES Registration 0.261% Work Search 4.154% Benefit Year Earnings 3.356% Overpayment Root Causes by Percentage of Dollars Overpaid July 1, 2015 June 30,

25 UI IMPROPER PAYMENT RATE Fraud and Nonfraud Overpayments, and Underpayments 12% 11% 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% * 2014** 2015** 2016** Fraud Nonfraud Underpayment IPIA 2013 adjusted rate for recoveries = 9.32% IPIA 2014, IPIA 2015, IPIA 2016 rates exclude all technically proper payments 25

26 UI INTEGRITY CENTER OF EXCELLENCE Training Academy State Engagement/Capturing Best Practices Model BPC Operations Suspicious Actor Repository Integrated Data Hub Digital Library Data Analytics State Grants for Innovative Solutions 26

27 STATE INFORMATION DATA EXCHANGE SYSTEM (SIDES) SIDES is an important Integrity Tool Timely and accurate separation information prevents improper payments Employers should respond to all requests even in Lack of Work cases 50 States currently using SIDES 31 States using SIDES with all TPAs in their state Method of Data Exchange Employer Chooses SIDES Web Services for Larger Employers and Third Party Employers (TPAs), and SIDES E-Response for smaller employers SIDES provides a consistent and standard format SIDES Transactions (March 2017) 99 percent of 217,549 cases received timely responses using SIDES Web Services within an average of 8.64 days, Over 31,355 timely responses within an average of 5.53 days using SIDES E-Response Commitment to Continuous Improvement Annual Training Seminar for States and Employers Operating Committee Employer Response Study comparing SIDES to other systems (in progress) Increased take-up by states and employers 27

28 REEMPLOYMENT SERVICES & ELIGIBILITY ASSESSMENT PROGRAM (RESEA) Summary: An in-person meeting between a UI claimant and appropriately trained AJC Staff Member intended to: 1. Reduce UI claim duration by providing labor market information, a reemployment plan, career services, and, as needed, referrals to training and education 2. Ensure UI program integrity by assessing and confirming the continued UI eligibility of RESEA participants. Availability: This voluntary program currently operates in 52 states and jurisdictions. 28

29 TARGETED POPULATIONS UI Claimants Identified as Likely to Exhaust Benefits Identified using state statistical model within first 5 weeks of claim filing date. Required Optional Additional State-Identified UI Claimant Populations. New flexibility introduced by Congress in mid FY 17 UNEMPLOYMENT COMPENSATION FOR EX- SERVICEMEMBERS (UCX) Served to the greatest extent feasible. Employment and Training Administration 29

30 FUNDING HISTORY AND OUTLOOK 150 Funding Level in Millions $6 9 $8 $112 $112 $130 FY 14 FY 15 FY 16 FY 17 FY 18 Request FY 2018 Budget Proposals FY 2018 budget outlines plan to: Increase RESEA funding to $130 million in FY 18. Make RESEA mandatory in FY 19 with capacity to serve 50% of claimants and all UCX. 30

31 MOVING FORWARD Improving Performance Metrics: RESEA currently captures performance information using a series of UI specific reports. In FY 17, ETA initiated the phase-in of several enhancements: UCX Reports: New reports will be launched later this summer that will provide data specific services and outcomes of UCX population. WIOA Alignment: Co-enrollment in Wagner-Peyser, will allow the capture of Common Measures for RESEA participants. Employment Rate for UI Claimants: This performance measure that will quantify to what extent UI participants are reemployed by the second quarter after program exit. FY 2018 RESEA Grants: A Unemployment Insurance Program Letter (UIPL) is currently in development with anticipated release late this summer. Employment and Training Administration 31

32 UI AND WIOA 2 Years into implementation and it s still a work in progress States are using varying strategies to meet the requirement to provide meaningful assistance to support UI claims filing for those who need it Final WIOA guidance on UI is coming soon Recent Guidance on Cost Sharing UI is Mandatory Partner Performance Reporting Getting Finalized and Automated Wage Record Access Issues States with stand-alone ES Offices taking steps to integrate State Plan modifications will occur in 2018, including those that included UI in a Combined Plan 32

33 OTHER REEMPLOYMENT STRATEGIES My Reemployment Plan employment_plan Workforce Connect Tools Next Steps My Reemployment Plan Online Case Management Module Pathway to Reemployment Framework Improving State Work Search Requirements ay_to_reemployment_framework 33

34 OTHER THINGS OF NOTE $50 million for UI IT modernization in FY 2018 Budget Roll-out of State Self Assessment Tool coming soon 34

35 FY 2018 PRESIDENT S BUDGET Administrative Funding RESEA Integrity Center Integrity Proposal Paid Parental Leave 35

36 WHAT S NEXT? A concerted and intentional effort to continue to educate and engage with UI stakeholders to support UI reforms and program improvement to enable the UI program to achieve its dual missions: Providing a Safety Net for Unemployed American Workers UI as an Economic Stabilizer in Economic Downturns Addressing Program Financing Continued Emphasis on Reemployment Continued Focus on Quality Administration of the Program 36

37 ???QUESTIONS??? COMMENTS 37