American Recovery & Reinvestment Act
New Mexico Department of Workforce Solutions is pleased to receive close to $53 million in funding from the America Reinvestment and Recovery Act of 2009. These funds will offer an unprecedented opportunity to increase workforce development services in New Mexico.
This is particularly encouraging as the department strives to assist the ever-growing numbers of New Mexicans who have lost their jobs due to the downturn in the economy. Although New Mexico continues to out perform most states in maintaining jobs, we have experienced significant job losses across the state.
The additional dollars will allow the local workforce delivery system to increase skills training for those job seekers who will need new skills in order to get jobs in high demand occupations that also pay higher wages. The additional funds will provide an opportunity to replicate best practices that other states have launched which will enhance our integrated service delivery system to better serve businesses as we assess, train and refer job seekers for available job openings.
The American Recovery and Reinvestment Act dollars will also provide funds to further enhance the state’s Unemployment Insurance system. Other funds are earmarked for a summer youth employment experience for New Mexico’s youth.
The Department acknowledges these funds bring great challenge. The New Mexico Department of Workforce Solutions is committed to being accountable, transparent and transformative in the use of the America Recovery and Reinvestment Act funds.
WIA Summer Youth
This program provided $6.2M to NMDWS for flow-through to four Local Workforce Development Boards to conduct summer youth employment program. The program provides subsidized employment to youth who have barriers to employment.
WIA Adult & Dislocated Worker
This program provides $2.6M of Adult and $2.9M of Dislocated Worker funds to NMDWS for flow-through to four Local Workforce Development Boards. Funds may be used for job search, development & referral, assessment, training, and supportive needs payments. Priority of service is given to public assistance recipients and low-wage earners.
Unemployment Insurance Modernization
This provides for $41M of USDOL “Reed Act” funds to be distributed to New Mexico, contingent upon approval from the federal government, to improve or strengthen the state’s unemployment insurance system.
Funds may be used in two ways:
- Deposited into the state’s Unemployment Insurance trust fund for the payment of benefits
- Upon appropriation by the state legislature, funds may be used for administrative costs associated with the unemployment insurance and employment security programs.
Wagner Peyser Unemployment Insurance Administration Re-employment
This program will provide $3.2M in Wagner-Peyser federal funds and $2.7M in Unemployment Insurance administrative funds to NMDWS to provide staff-assisted reemployment services to jobseekers. 60% of the Wagner Peyser funds must be expended on services to unemployment insurance recipients. The remaining 40% may be expended on services to all job seekers. The Unemployment Insurance funds may be expended on staff-assisted reemployment services to Unemployment Insurance recipients, increased outreach to disenfranchised unemployed workers, and to fund administrative costs associated with the increased demand for Unemployment Insurance services.
$25 Federal Additional Compensation (FAC) Benefits
The FAC program instituted under ARRA provides an additional unemployment insurance compensation payment of $25 per week to each eligible individual. The $25 per week payment is in addition to any regular UI benefit payment. The payments are 100% federally funded and do not impact the state’s Unemployment Insurance trust fund. Payments under this program will be paid through June 30, 2010.