1. Unemployment Insurance UI Tax Project Certification Department of Workforce Solutions Presentation to Project Certification Committee December 16, 2009

2. DWS Project Staff: Introductions Business – Neil Meoni – Deputy Cabinet Secretary I.T. Division – John Salazar – CIO – John Hudson – IT Operations Manager 2

3. Introduction Introduction Social Security Act of 1935 Established UI Program 51-1-3 NM7A 1978 Established a process for systematic accumulation of taxes to pay qualified participants benefits during periods of unemployment NMDWS collects unemployment taxes from New Mexico employers on a quarterly basis, deposits those funds to a federal trust fund from which UI benefits are paid weekly to qualified applicants Collects over $130M annually in unemployment insurance taxes from over 54,000 employers NM Employers Pay Unemployment Insurance Tax Federal Trust Fund Weekly UI Benefits to Qualified Applicants

4. Introduction Current System – 20+ year old mainframe system – Costly to maintain – Manual process for employees and taxpayers – Labor and paper intensive

5. Unemployment Insurance UI Tax Project Certification Implementation Phase Request for release of additional funds Requesting: $ 9,010,000 – FF (Reed Act) $ 51,724 -- FY09 Remaining Bal TOTAL: $ 9,061,724 ITC Certifications June 7, 2006 - $200k April 7, 2007 - $1.75M 5

6. Benefits of New UI Tax System Benefits of New UI Tax System Electronic scanning of paper tax forms eliminates manual data entry and improves timeliness and accuracy Integrated Workflow & Rules Management Improved on-line services for NM employers Electronic payment processing provides improved convenience for customers Real-time registration & account maintenance for employers

7. UI Tax: Project Progress Project RFP in Award Phase – Met legislative contingency – RFP by Sept. 1 RFP for multi-year IV&V & PM – IV&V managed through DoIT, MOU with DoIT signed – Interim IV&V contract in process, simutaneous reports to DoIT and DWS – State PM in place pending selection of RFP award 7

8. UI Tax: Planning Phase Accomplishments UI Tax Requirements Definitions – Tier Technologies, Inc. Business & Technical – Validated requirements – Albuquerque Chamber of Commerce, Taxpayer Professional Association, and the CPA Society Market Analysis of possible vendors Multi-state collaboration for best practices Industry RFI RFP (specifications) presented to TARC Redundancy, System performance specification, Network bandwidth specifications Webinars with Minnesota Dept of Labor to assess in- production vendor solution. December 8 & 9 8

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10. Timeline Timeline July 2009 August 14, 2009 December 15, 2009 June 30, 2010 2011 2012 - 2013 Finalize UI Tax System RFP & Requirements Validation Issue RFP for UI Tax System Contract Award Hardware & Framework purchased and delivered to ensure that $9.01 of Reed Act Appropriations is applied to the project Employer Self-service Module Implemented Complete UI Tax System

11. Project Readiness Project Readiness Solid Requirements Definition RFI / Market Analysis Requirements Validation for RFP Release External Stakeholder Input Current and Future State Use Cases Documented using Rational Unified Process Methodology Business Project Engineering Executive Management Support / Steering Committee DoIT Coordination Retained Services of Professional Procurement Manager Integration with State Financial System

12. UI Tax: Budget & Timeline $12.5M REED Act Funds – $1.3M UI Claims – $240k IVR Upgrade Balance: $10.96M – $1.95M UI Tax start-up UI Tax Net Available: $9,061,724 (per audit reconciliation) PhaseAmountFunding SourceTimeframe Initiation Cert Date: June 2006 $200kReed Act Planning Cert Date: April 2007 $1.75MReed Act Implementation Phase 1 December 16, 2009 $9.01MReed Act1-year $ 51.7kFY09 Bal Total Request – Phase 1 $9,061,724 Implementation Phase 2 December 16, 2009 $ TBDARRA1-year Close June 16, 2011 (plan) $ 0 12

13. UI Tax: Benefits Improved Online services – E-payment processing – E-Registration Integrated document scanning Integrated Workflow & Business Rules Management 13

14. Thank You UI Tax Project Team 12/16/2009 14