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U.S. DEPARTMENT Op THE TREASURY <br /> Recipients may use SLFRF funds to cover payroll and covered benefits through the period of <br /> performance;these employees must have begun their employment on or after March 3, <br /> 2021. Recipients may only use SLFRF funds for additional FTEs hired over the March 3, 2021 <br /> level (ie,the actual number qfF7Es . <br /> � Supporting and retaining public sector workers. Recipients can also use funds in other ways <br /> that support the public sector vvorkforce.m These include: <br /> o Providing additional funding for employees who experienced pay reductions mrwere <br /> furloughed since the onset of the pandemic, up to the difference in the employee's pay, <br /> taking into account unemployment benefits received. <br /> o Maintaining current compensation levels to prevent layoffs.SLFRF funds may be used <br /> to maintain current compensation levels,with adjustments for inflation, in order to <br /> prevent layoffs that would otherwise benecessary. <br /> o Providing worker retention incentives, including reasonable increases in <br /> compensation to persuade employees to remain with the employer as compared to <br /> other employment options. Retention incentives must be entirely additive to an <br /> employee's regular compensation, narrowly tailored to need, and should not exceed <br /> incentives traditionally offered by the recipient or compensation that alternative <br /> employers may offer to compete for the employees.Treasury presumes that retention <br /> incentives that are less than 25 percent of the rate of base pay for an individual <br /> employee or1O percent for a group or category of employees are reasonably <br /> proportional to the need to retain employees, as long as other requirements are met. <br /> w Covering administrative costs associated with administering the hiring,support,and retention <br /> programs above. <br /> Effective Service Delivery <br /> SLFRF funding may be used to improve the efficacy of public health and economic programs through <br /> tools like program evaluation, data, and outreach, as well as to address administrative needs caused or <br /> exacerbated by the pandemic. Eligible uses include: <br /> ° Supporting program evaluation,data,and outreach through: <br /> m Recipients should ue able to substantiate that these uses of funds are substantially due to the public health emergency or its <br /> negative economic impacts(e.g.,fiscal pressures on state and local budgets)and respond to its impacts.See the final rule for <br /> details on these uses. <br /> Co/onovirusStote&Local Fiscal Recovery Funds:Overview o/the Final Rule <br /> U.S. Deportment q/the Trrosun/ 28 <br />