In order for employers in the states to receive certain UI tax  benefits, states must follow certain requirements, including that the states  have laws generally prohibiting instructional employees of certain  educational institutions from collecting UI benefits between academic  terms if they have a contract for, or “reasonable assurance” of,  employment in the second term. State Officials Reported That State Laws and Policies Can Affect Teacher Eligibility for Unemployment Insurance Benefits All Head Start Teachers are Generally Not Eligible in Some States

In responding to our survey, state UI directors reported having to follow  various state laws and policies that may affect whether Head Start and  other ECE teachers are allowed to collect benefits during the summer. Specifically, in 2 of the states we surveyed, officials reported that  Head Start teachers are generally not eligible for UI benefits over summer  breaks but other ECE teachers may be. Officials in some  states told us that their laws include certain types of employers in the  definition of an educational institution. For example, Kansas officials  reported that private for-profit institutions are not considered  educational institutions, and California officials reported that non- profits are not considered educational institutions. The Program’s Relationship with a School or Board of Education Can Affect Eligibility

Officials in 17 states reported that UI eligibility  for Head Start teachers  can be affected by the program’s relationship to a school or board of  education, and officials in 11 states reported similar restrictions for ECE  teachers. West Virginia officials reported that if a  teacher works for a Head Start program that is “under the influence or  authority” of a county board of education, and his or her wages are  reportedly paid by the board of education, the teacher is generally  considered a school employee and is therefore not eligible for UI  benefits over the summer break. About Half of All Head Start Teachers May Have Been Eligible for Unemployment Insurance Benefits during Summer Breaks in 2015

We estimated that approximately 44,800 of the nearly 90,400 Head Start  teachers across the country may have been eligible for UI benefits during  their summer breaks in 2015. We also estimated that about 28,940 Head Start teachers did  not have summer breaks long enough to allow them to collect UI benefits. Based on our analysis of available data, about 2,100 of these teachers  work in Indiana, Pennsylvania, and Wyoming, where, as mentioned  earlier, Head Start teachers are generally not eligible for UI benefits over  summer breaks. States Identified Various Communication Efforts with Employees and Employers of Head Start and Early Childhood Education Programs, and Stakeholders Identified a Number of Limitations with These Efforts

States reported using a variety of methods to communicate general UI  eligibility  information to both Head Start and ECE employers and  employees. See figure 2 for more  information on communication methods states reported using to  employers and figure 3 for communication methods states reported using  to employees. Even with the information states reported providing, the Head Start and  ECE employer and employee representatives we interviewed said that  state UI programs can remain difficult to understand because of the  complexity of the various federal and state laws, regulations, and policies  governing the programs. To some extent, the concerns raised by stakeholders can be associated  with the fact that states do not generally assess the effectiveness of their  communication approaches. Thirty-four of 53 states (64 percent) reported  that they do not conduct evaluations to assess the effectiveness of their  communications with employers. Other states reported making significant changes to their claims  processing systems and making the language on the applications more  reader friendly and understandable. Appendix I: Objectives, Scope, and Methodology

We examined (1) the extent to which states have laws or policies that  affect whether Head Start and other ECE teachers can claim UI benefits  during summer breaks; (2) how many Head Start teachers may have  been eligible for UI benefits during their summer breaks in 2015; and (3)  what is known about how states communicate information about eligibility  for UI benefit payments to Head Start and ECE employees and the  effectiveness of these efforts. Survey of State UI Programs

To address all three objectives, we conducted a web-based survey of  state UI directors (including all 50 states, the District of Columbia, Puerto  Rico, and the Virgin Islands) from February to April 2016. We analyzed data from  the 2014-2015 program year, the most recent available. In our interviews with state officials,  we asked about eligibility policies and changes to such policies, improper  payments, communication with employers and employees, and other  internal controls. GAO-14-737T.
Why GAO Did This Study

In 2015, the Head Start child development program provided federal funds to local grantees that employed over 90,000 teachers. Some of these grantees run programs that do not run during the summer, and some teachers may, in turn, seek UI benefits to help meet expenses during that time. All states have laws generally prohibiting certain employees of educational institutions from collecting UI benefits between terms, though they have flexibility in setting specific eligibility restrictions. GAO was asked to review Head Start and other ECE teachers' eligibility for UI benefits during the summer months.
This report examines (1) the extent to which states have laws or policies that affect whether Head Start and other ECE teachers are eligible for UI benefits during summer breaks; (2) how many Head Start teachers may have been eligible for these benefits during their summer breaks in 2015; and (3) what is known about how states communicate information about eligibility for UI benefit payments to Head Start and ECE employees and the effectiveness of these efforts. GAO surveyed UI directors in all 50 states, the District of Columbia, Puerto Rico, and the Virgin Islands (with 100 percent responding); analyzed Head Start data from program year 2015; reviewed relevant federal laws; and interviewed federal officials and stakeholders, including employer associations and teacher associations, in five states selected using criteria such as their benefit restrictions.

What GAO Found

In response to GAO's survey, officials from all 50 states, the District of Columbia, and two territories reported that they have various laws or policies that may affect whether Head Start and other early childhood education (ECE) teachers are allowed to collect unemployment insurance (UI) benefits during summer breaks. Officials in three states—Indiana, Pennsylvania, and Wyoming—reported that Head Start teachers are generally not eligible for UI benefits over summer breaks. In other states, officials outlined various factors that can affect eligibility. Specifically, officials from 30 states said the type of employer—for-profit, non-profit, or municipality—can influence eligibility for Head Start teachers (officials in 28 states reported this for ECE teachers). In addition, officials in 17 states reported that eligibility for Head Start teachers can be affected by the program's relationship to a school or board of education (officials in 11 states reported this for ECE teachers). For example, West Virginia officials reported that Head Start teachers considered under the authority of the board of education are generally not eligible for UI benefits.
In 2015, about half of the 90,000 Head Start teachers (about 44,800) across the country may have been eligible for UI benefits during their summer break, according to GAO's analysis of available data and the information states reported about their laws, regulations, and policies in response to GAO's survey. The remaining teachers and assistant teachers were likely not eligible because they worked for school districts or charter schools (about 14,150); worked in programs with breaks that were too short to allow them to collect benefits (about 28,940); or were generally not eligible under state laws, regulations, or policies (about 2,510).
To communicate UI eligibility rules to both employers and employees, state UI agencies reported using a variety of methods; however, selected stakeholders identified several concerns with these efforts. According to GAO's survey, state directors reported that they use various communication channels to provide general information to both employers and employees on matters, such as how to file a claim in their states. The three most commonly cited methods used by the states included websites, hotlines, and handbooks. Even though most states reported that they are using multiple methods of communication with employers and employees, some Head Start and ECE stakeholders in five selected states told GAO that the complexity of federal and state laws and policies governing state programs continue to make UI eligibility rules difficult to understand, even with information that their states are providing. While some of this confusion can be attributed to the variability and complexities of states' eligibility policies, GAO also found that states are generally not evaluating the effectiveness of their communication approaches. Specifically, over half of the states reported that they have not evaluated the effectiveness of their communication approaches with employees, and about two-thirds reported they have not evaluated the effectiveness of their communication approaches with employers. The states that were conducting evaluations reported that the feedback allowed them to make improvements in their communication materials for both employers and employees. For example, some states reported making their claims processing applications more user friendly and understandable as a result of this feedback.

What GAO Recommends

GAO is not making recommendations.