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Secretary of Labor Thomas E. Perez
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Department of Labor Budget Overview FY 2004 - Agency Information

EMPLOYMENT AND TRAINING ADMINISTRATION

OVERVIEW

Budget Resources

(Dollars in Millions)

 

FY 2003

FY 2004

Change

Employment and Training:

Training and Employment Services 1/

$5,1339

$5,748.8

$614.9

Comm. Servc Emplymnt for Older Amer.

440.2

440.2

-

Employment Service

845.8

98.5

(747.3)

One Stop Career Centers

113.0

101.0

(12.0)

Gifts and Bequests

0.3

0.3

-

Subtotal, Employment & Training Income Maintenance

6,533.2

6,388.8

(144.4)

Income Maintenance:

Unemployment Insurance Program (Admin)

2,738.3

2,650.5

(87.8)

Federal Unemployment Benefits (FUBA)

871.3

1,338.2

466.9

Advances to UTF and Other Funds (BLDTF) 2/

463.0

467.0

4.0

Payments to the UTF 3/

606.0

103.0

(503.0)

Temporary Extended Unemployment Comp (Admin)

222.0

-

(222.0)

Unemployment Trust Fund Benefits

52,950.0

39,830.0

(13,120.0)

Subtotal, Income Maintenance

57,387.6

43,921.7

(13,465.9)

Program Administration

171.0

183.4

12.4

Total ETA Budget Authority

$64,091.8

$50,493.9

($13,597.9)

Economic Growth Package

Re-employment Accounts Spending

$1,600.0

$2,000.0

$400.0

Full Time Equivalents (includes reimbursable staff)

1,370

1,360

(10)


1. TES includes advance appropriations of $2.463 billion in FY 2003 appropriated in FY 2002 for obligation in FY 2003, and $2.463 billion in FY 2004 appropriated in FY 2003 for obligation in FY 2004. The FY 2003 amount also includes $98 million in mandatory funding from fees for H-1B Technical Skill Training Grants. The fee authorization expires in FY 2003.
2. Non-add item, see Black Lung Disability Trust Fund (BLDTF).
3. Mandatory funding, non-add, included in Unemployment Trust Fund benefits.

The Adminstration is improving
opportunties for American
workers

The FY 2004 budget and the President's Economic Growth package reflect the Administration's commitment to assisting American workers find and keep work. Through funding for job training, a new initiative to help unemployed workers and reform of existing programs, the Administration is improving opportunities for American workers.

The 2004 budget provides $4.95 billion for the Department of Labor (DOL) WIA job training grant programs. This level is slightly below (1.7%) the 200 request level of $5.04 billion, however, the amount for DOL's WIA programs is only one part of the President's support for programs that help people prepare for and find jobs. Overall, the budget:

Increases Job Training Resources. The budget includes $9.7 billion for training:

  • $6.4 billion in new budget authority for training and employment programs, including training grants and funding for employment services and One-Stop Career Centers;
  • $1.3 billion in spending for Trade Adjustment Assistance training and benefits; and
  • $2.0 billion in spending for Re-employment Accounts.

In addition, the Administrations' FY 2004 job training policy:

Targets Resources to Need. For the past few years, record-level amounts of WIA State grants have remained unspent. In FY 2004, these balances will exceed $1.5 billion.

  • Although total balances remain high, a few States and local areas have exhausted the resources available to them.
  • The budget uses unspent funds to maintain service levels and provides new authority to the Secretary and States to reallocate funds to States and localities that need them.

Reforms Job Training Programs. The budget also proposes reforms through WIA reauthorization, many of which are designed to correct program weaknesses identified through the new Program Assessment Rating Tool (PART). Reforms will:

  • Consolidate WIA adults, dislocated worker, and Wagner-Peyser State grant programs into a single $3.1 billion grant;
  • Reduce program overlap and increase performance accountability;
  • Minimize duplication of youth programs with the Department of Education; and
  • Authorize innovative programs like Personal Re-employment Accounts.

EMPLOYMENT AND TRAINING PROGRAMS

Budgetary Resources

(Dollars in Millions)

 

FY 2003

FY 2004

Change

       

Youth Programs

$2,577.7

$2,566.9

$(10.8)

Youth Grants

 

1,001.0

1,001.0

Youth Activities

1,001.0

 

(1,001.0)

Youth Opportunity Grants

44.5

 

(44.5)

Job Corps

1,532.2

1,565.9

33.7

Adult Programs

2,343.5

3,079.8

736.3

Consol. Adult/DW State Grants 1

 

3,079.8

3,079.8

Dislocated Worker Activities 1

1,443.5

 

(1,443.5)

Adult Employment and Training Activities 1

900.0

 

(900.0)

Other Employment and Training

1,612.0

742.1

(869.9)

Grants to States for Reemployment Services 1

35.0

  

(35.0)

Employment Service State Grants 1

761.7

(761.7)

One Stop Career Centers

113.0

101.0

(12.0)

Foreign Labor Certification

5.5

55.0

49.5

Employment Service National Activities

23.6

23.6

-

Work Incentives Grants

20.0

20.0

-

WIA National Programs 2

212.7

102.0

(110.7)

Comm Svc Employment for Older Americans

440.2

440.2

-

Pension and Health Cost, Job Corps 3/

$5.1

$4.9

$-0.2

Gifts and Bequests

0.3


0.3


-


Total E/T Budget Authority

$6,533.2

$6,388.8

($144.4)

Economic Growth Package

     

Re-employment Accounts Spending

$1,600.0

$2,000.0

$400.0


1/ The 2004 Budget and Workforce Investment Act (WIA) reauthorization proposal consolidate grants to states for adult services into a single grant program: Consolidated Adult and Dislocated Worker State Grants.
2/ The FY 2003 amount also includes $98 million in mandatory funding from fees for H-1B Technical Skill Training Grants. The fee authorization expires in FY 2003.

T he Fiscal Year (FY) 2004 budget request for Employment and Training Programs proposes a net decrease of $144 million in new budget authority to $6.389 billion. These resources will be combined with estimated 2004 spending of $2.0 billion on Re-employment Accounts included in the President's Economic Growth Package, following 2003 spending of $1.6 billion.

Youth
A total of $2.567 billion is requested for employment and training programs for Youth. This investment, which will help young people make a successful transition to the world of work and family responsibility, is funded at approximately the FY 2003 request level. The proposal reflects a reformed youth program that will be authorized by an amendment to the Workforce Investment Act (WIA). The reformed Youth Grants program will be funded at $1.001 billion, the same level at which Youth Activities is funded in the FY 2003 request. The new program will include Targeted Formula Grants and National Challenge Grants. The proposal will minimize overlap between the Department of Labor (DOL) and the Department of Education by targeting all of DOL's formula resources to out-of-school youth programs and national grant resources to non-school and out-of-school youth programs that have proven effective. DOL's youth investments will focus on providing young people with a strong, core academic foundation in conjunction with appropriate post-secondary skills certifications or degrees.

The budget authority requested, together with unexpended carryover, is expected to support 380,300 participants compared to 445,800 under the predecessor program for FY 2003. For 2004, 60% of youth not in education, employment, training or the military at registration will have entered employment or enrolled in post-secondary education or advanced training/occupational skills training or the military by the end of the first quarter after exit. Fifty percent of youth without a diploma, GED or certificate at registration will earn a diploma, GED or certificate, excluding those youth still enrolled in secondary school at point of measurement. The literacy and numeracy skills of participants will improve by a level to be determined based on an analysis of performance during 2003.

The effective Job Corps program will provide intensive skill training, academic and social education, and support to an estimated 68,500 participants at 122 centers in FY 2004. The budget request is $1.566 billion. This is an increase of $34 million above the FY 2003 request. For FY 2004, 85 percent of Job Corps graduates will enter employment or education after exit from the program. Fifty-six percent of students will attain a GED, high school diploma, or certificate after exit from the program. The literacy and numeracy skills of participants will improve by a level to be determined based on an analysis of performance during 2003.

The FY 2004 budget reflects no funding for Youth Opportunity Grants, which will be phased out in FY 2003 with the final appropriation of $44.5 million. States can provide these services through the reformed WIA formula grants.

The new Consolidated State Grant program will give States and the Secretary
the ability to target resources where needed...

Adults
A total of $3.080 billion is requested for employment and training programs for Adults. The proposal reflects a new program to be authorized by an amended WIA that will consolidate the former Adult and Dislocated Worker Employment and Training Activities, together with the Employment Service.

The new Consolidated Adult and Dislocated Worker State Grant program includes Formula Grants and a National Reserve, and will give States and the Secretary of Labor the ability to target resources where needed, facilitate coordination, and eliminate duplication in the provision of services to adults.

The budget authority requested, together with unexpended carryover, is expected to support 18,400,000 participants compared to 18,277,000 under the predecessor programsfor FY 2003. These resources will be supplemented by an estimated $2.0 billion in 2004 in spending on Re-employment Accounts that are in the President's 2003 Economic Growth Package, which will serve at least an estimated 667,000 in 2004. DOL will establish performance goals for the new Consolidated Grant program. In the meantime, FY 2004 goals for services provided through the current Adult program are as follows: 72% of individuals registered who are not employed at registration will be employed in the first quarter after program exit. Eighty-three percent of those employed in the first quarter after program exit will be employed in the second quarter after program exit, and 83% in the third quarter after program exit.

FY 2004 goals for the former Dislocated Worker program follow: 79% of individuals registered who are not employed at registration will be employed in the first quarter after program exit. Eighty-nine percent of those employed in the first quarter after program exit will be employed in the second quarter after program exit and 89% in the third quarter after program exit.

The Employment Service (ES) now provides a vast array of information and services to American workers and employers. It is the essential labor market infrastructure for the One Stop System. ES provides no-fee services to individuals seeking employment and to employers seeking workers. Under the request, ES state grants will be part of the consolidated grant program, and using the funding formerly associated with ES grants, DOL will assist over 17 million individuals. FY 2004 goals for the former program are as follows: 58 percent of job seekers unemployed when they register with the public labor exchange will enter employment with a new employer by the end of the second quarter following registration.

...the One Stop
Career Centers deliver a full arreay
of effective
employment and training services to
people with
disabilities.

Other Employment and Training

The FY 2004 budget includes $742 million for Other Employment and Training Programs, a net decrease of $870 million below the FY 2003 request. The net change is largely due to the proposal to make the Employment Service part of the new Consolidated Adult and Dislocated Worker State Grant program. The decrease also reflects the end of the H-1B skill training grants effort, funded in FY 2003 at $98 million from fees that expire in FY 2003. In addition, an increase of $49.5 million is provided for Foreign Labor Certification to eliminate the program's backlog in two years.

Under the Administration's WIA reauthorization proposal, the Employment Service, including Allotments to States and Reemployment Services Grants, will be reauthorized under that Act, and funded through the Consolidated Adult and Dislocated Worker State Grants program. In FY 2004, $797 million will be provided for labor exchange services, the same level in the FY 2003 request.

The FY 2004 budget includes $101 million for new methods of providing employment and related information through One Stop Career Centers and its America's Labor Market Information System (ALMIS), a decrease of $12 million below FY 2003. In FY 2004, a $500,000 program increase is included for Wage Record Interchange Systems (WRIS). Services include America's Job Bank that lists about 1 million jobs and over 400,000 resumes, and America's Career InfoNet that provides information on occupational and career-related items. Efforts to improve access to One Stop information and services include enhanced technology for serving individuals including those with disabilities.

In FY 2004, an increase of $49.5 million will be provided as the first of a two-year investment to eliminate the 300,000 case backlog in the permanent Foreign Labor Certification program. In addition, funding will be provided in the Program Administration account to provide the Federal support necessary to address the problem. The backlog elimination will actually begin in FY 2003 as DOL makes changes to the program that will prevent future backlogs by expediting certification and eliminating the state role in the processing of applications.

In FY 2004, the budget includes $20 million for Work Incentive Grants, the same level provided in FY 2003, to enhance the prospects of employment for individuals with disabilities. This effort is undertaken in conjunction with the Department's Office of Disability Employment Policy to increase the participation of individuals with disabilities in DOL programs and services. This program provides competitive grants to partnerships or consortia in States to provide incentives for coordinated service delivery through, and linkages across, the One Stop Career Center system established under Title I of WIA of 1998. In addition, these grants augment the capacity of the One Stop Career Centers system to deliver a full array of effective employment and training services to people with disabilities. Likewise, this effort will promote coordination among members of such partnerships or consortia to ensure that people with disabilities are better prepared to enter, reenter, and remain in the workforce. In FY 2004, the program will increase by 5 percent the number of individuals placed in unsubsidized employment after program exit.

WIA National Programs are funded at $102 million in FY 2004, a decrease of $111 million below FY 2003. These programs provide employment and training assistance to Native Americans; as well as pilots, demonstrations, and research; evaluation; and technical assistance in support of the employment and training system. Legislation authorizing the H-1B skill training program funded by fees imposed on employers applying for foreign workers expires at the end of FY 2003. Fees should total $98 million in FY 2003.

In FY 2004 $440.2 million is requested for the Community Service Employment for Older Americans program, the same level as the FY 2003 request. The request will serve a participant level of 92,300, and it is expected that 37 percent of participants will be placed and retained in unsubsidized employment. In FY 2004, 40% of Senior Community Service Employment Program (SCSEP) participants leaving the program will be employed in the first quarter after program exit. Forty-five percent of those employed in the first quarter after program exit will be employed in the second quarter after program exit, and (amount to be determined based on analysis during 2003) in the third quarter after program exit. The earnings of individuals who are registered will increase by a level to be determined based on an analysis of performance during 2003, between the period of two quarters prior to registration (most participants are unemployed upon enrollment) and the first quarter after program exit and by a level to be determined based on performance between the first and third quarters after program exit.


Employment and Training Participant Data

 

FY 2003 Estimate

FY 2004 Estimate

Change

Youth Grants

 

380,300

380,300

Youth Activities

445,800

 

(445,800)

Youth Opportunity Grants

43,400

 

(43,400)

Job Corps

68,700

68,500

(200)

Adult Employ. and Training Acts.

     

Consolidated Adult and DW State Grants 1

 

18,400,000

18,400,000

Adult Employ. And Training Acts. 1

545,600

 

(545,600)

Dislocated Worker Activities (Formula) 1

731,000

0

(731,000)

Native Americans

22,200

22,200

0

Community Svcs Employment/Older Americans

92,300

92,300

0

Employment Service 1

17,000,000

 

(17,000,000)

Re-employment Accounts (Econ Growth Pkg)

533,333


666,667


133,334


Total

19,482,333

19,629,967

147,634


1. The 2004 Budget and WIA reauthorization proposal consolidate grants to states for adult services into a single grant program: Consolidated Adult and Dislocated Worker State Grants.

Selected ETA Performance Goals and Indicators

  • Increase the employment, retention, and earnings of individuals registered under the current WIA Adult program and 72% will be employed after program exit.
  • Increase the employment, retention, and earnings replacement of individuals registered under the current WIA dislocated worker program and 79% will be employed in the first quarter after program exit.
  • Improve educational achievement of Job Corps students, increase participation of Job Corps, graduates in employment and education, and maintain cost efficiency of program operations. Eight-five percent of Job Corps graduates will enter employment and education after program exit and 56% will attain a GED or high school diploma upon program exit.
  • Increase placement of youth registered under the WIA youth program in education or employment to insure the attainment of a diploma, GED or certificate and to increase the attainment of literacy and numeracy skills. Sixty percent will enter employment, enroll in post-secondary education or advanced skill training at the end of the first quarter after program exit.


INCOME MAINTENANCE

Budget Authority

(Dollars in Millions)

 
 

FY 2002

FY 2003

Change

Unemployment Insurance Program 1/

$2,738.3

$2650.5

(87.8)

Fed. Unemployment Benefits & Allow

871.1

1,338.2

466.9

Advances to UTF and Other Funds (BLDTF) 2/

463.0

467.0

4.0

Temporary Extended Unemployment Comp (Admin Costs)

222.0

-

(222.0)

Payments to the UTF 3/

606.0

103.0

(503.0)

Workers Compensation 5/

175.0

0.0

-175.0

Unemployment Trust Fund Benefits

52,950.0

39,830

(13,120.0)

       

Total, Income Maintenance

$56,781.6

$43,818.7

(12,962.9)

1

FY 2003 includes $70.0 million for contingency funds as a result of a projected workload increase (AWIU trigger)

2

Non-add, see Black Lung Disability Trust Fund (BLDTF) section.

3

Mandatory funding, non-add, included in Unemployment Trust Fund benefits


The FY 2004 request for Income Maintenance includes $42.5 billion for the Unemployment Trust Fund. Of the FY 2004 Income Maintenance total, $2.7 billion is the discretionary amount requested for State administration of the Unemployment Insurance (UI) Program. In addition, $1.3 billion is being requested for the Federal Unemployment Benefits and Allowances (FUBA) account. The FY 2004 request for Advances to the Unemployment Trust Fund (UTF) and Other Funds (Advances) account is $467.0 million, which is for the Black Lung Disability Trust Fund.

The balance of Income Maintenance includes administrative costs for the Temporary Extended Unemployment Compensation Program and State unemployment benefit payments to claimants, and Federal agency reimbursements for benefits paid to former Federal employees and ex-service members, and Payments to the Unemployment Trust Fund.

...provide income support to those
temporarily out of work
while they search for
employment.

Unemployment Insurance Program
Under the State Unemployment Insurance and Employment Service Operations (SUIESO) account, discretionary funds are provided to the States for the administration of the Unemployment Insurance (UI) and Employment Service (ES) programs. The ES program is discussed in the Employment and Training Programs section of this publication. For UI, the FY 2004 budget includes a request for $2.7 billion, which is $87.8 million below the FY 2003 revised request. The $87.8 million decrease in FY 2004 reflects the net effects of changes in tax accounts, wage records and UI claims workload. The average weekly insured unemployment (AWIU) was projected to be 3.372 million in FY 2003. Based on the recent President's economic assumptions, the AWIU now totals 3.616 million. Therefore, the contingency trigger mechanism in the 2003 request is now expected to provide for an additional $70.0 million in 2003 to cover the increased AWIU claims workload.

The FY 2004 funding level requested for the UI program will provide for approximately 50,967 staff years of service. State staff will handle 7.1 million employer tax accounts, 22.6 million initial unemployment claims, and a total of 164.0 million weeks claimed and 1.4 million appeals. In addition, to finance any workload increase over an AWIU rate of 3.227 million, $28.6 million shall be available for every 100,000 increase over the AWIU, with a pro rata amount for any increase less than 100,000. The unemployment insurance request also includes $10.5 million for National activities, which are interstate or multi-state in nature. UI National Activities is increased by $500 thousand for an overpayment study.

Federal Unemployment Benefits
and Allowances (FUBA)

This appropriation covers payments of weekly trade readjustment allowances, training, job search and relocation costs of workers adversely affected by increased imports or shifts in production to other countries.

For FY 2004, $1.3 billion is requested for FUBA. In August 2002, the Congress passed, and President Bush signed, the Trade Adjustment Assistance Reform Act of 2002. This Act amended the Trade Act of 1974 to consolidate the previous Trade Adjustment Assistance (TAA) and NAFTA Transitional Adjustment Assistance (NAFTA-TAA) programs into a single, enhanced TAA program with expanded eligibility, services, and benefits. The Act provides for a program of Alternative Trade Adjustment Assistance for older workers. Additionally, the law provides for continuing an increased emphasis on the integration of the TAA program into the One-Stop Career Center system.

Advances to the Unemployment Trust
Fund and Other Funds

T his appropriation provides general fund advances to several trust and general fund accounts. In FY 2004, the requested amount includes $467.0 million which will provide for advances to the Black Lung Disability Trust Fund (BLDTF) account administered by the Employment Standards Administration, and which is repayable with interest to the General Fund in Treasury.

Unemployment Trust Fund Benefits

The Unemployment Trust Fund includes amounts for both the administration of Federal and State unemployment compensation, and for unemployment compensation benefits which provide income support to those temporarily out of work while they search for employment. This budget proposal is based on estimates that the insured unemployment rate for FY 2004 will be 2.4 percent. This translates to an average of approximately 2.9 million beneficiaries per week receiving unemployment assistance under Federal and State programs in FY 2004. The average weekly benefit amount is estimated at $268 in FY 2004, while the average number of weeks of benefits per recipient is expected to be 15.0 weeks. The total amount paid for unemployment compensation benefits from the Trust Fund is estimated at $39.8 billion.

Selected ETA Performance Goal and Indicators
for Income Maintenance

  • Make timely and accurate benefit payments to unemployed workers, facilitate the reemployment of unemployment insurance claimants, and set up unemployment tax accounts promptly for new employers.
  • 91.3% of all intrastate first payments will be made within 14/21 days.
  • 80.4% of determinations of tax liability of new employers will be made within 90 days after the first quarter of tax liability


ETA PROGRAM ADMINISTRATION

Budget Authority/Trust Fund Transfers

(Dollars in Millions)

 

FY 2002

FY 2003

Change

       

Adult Services

$44.5

$45.6

$1.1

Youth Services

38.9

39.0

1.4

Workforce Security

51.7

51.6

1.5

Apprenticeship Training, Employer and Labor Services

20.8

20.8

-0.6

Executive Direction

10.4

10.3

0.9

Welfare-to-Work

4.7

4.7

-1.2

Total, ETA-PA Budget Authority-Pres Bud.

171.0

183.4

12.4

Full Time Equivalent Staff 1/

1,370

1,360

(10)

1 FY 2003 includes 110 FTE funded through H-1B fees, 3 reimbursable FTE and 4 FTE requested in the FY03 Budget Amendment for Trade Act Implementation. FY2004 includes 3 reimbursable FTE.


ETA's Program Administration account provides for Federal administration of its employment and training programs. These programs include those authorized by the following legislation: Workforce Investment Act (WIA) of 1998; the Older Americans Act of 1965, as amended; the Trade Act of 1974, as amended; the National Apprenticeship Act of 1937; Title III of the Social Security Act of 1935, as amended; the Wagner-Peyser Act of 1933, as amended; and Title 4 of the Social Security Act, as amended (Welfare-to-Work).

The FY 2004 budget request for Program Administration provides for 1,360 full-time equivalent (FTE) staff and $183.4 million. This number includes 1,357 FTE financed from direct appropriations and 3 FTE from reimbursements.

...provides for the federal administration
of all ETA programs

Proposed increases for 2004 include $8.5 million and 120 FTE for streamlining and operating all of the foreign labor certification programs. The President's Fiscal Year 2003 request, provided 110 FTE which were funded with revenues provided from H-1B application fees. Authorization for these fees expires in FY 2003. Therefore, the request for FY 2004 includes a request for an appropriation to continue these activities. The additional funding and FTE will be used to reduce the backlog of certification applications.

Program decreases include $2.3 million and 20 FTE for the phase out of the Welfare-to-Work program. ETA is proposing a transition process assuring that Welfare-to-Work participants easily and seamlessly transfer into the workforce investment One-Stop system environment as Welfare to Work Formula and Competitive Grants are phased out.

Adult Services

The Adult Services activity provides staff for leadership, policy direction, and administration for a decentralized system of grants to States and localities for job training and employment assistance for disadvantaged and for low income adults and dislocated workers; training and employment services to special targeted groups; the settlement of trade adjustment assistance petitions; and activities related to program administration.

Youth Services

Youth Services provides staff for: leadership, policy direction, and administration for a decentralized system of grants to States for job training and employment assistance for youth programs, including the Job Corps and related program administration activities.

Workforce Security

Under this activity the staff provides leadership and policy direction for the administration of the comprehensive nationwide public employment service system; unemployment insurance programs in each State; a One Stop Center system, including a comprehensive system of collecting, analyzing, and disseminating labor market information; and related program administration activities. Increased funding is requested for operating the foreign labor certification programs, to continue existing operations now funded through fees and for additional funding for reduction of the applications backlog.

Apprenticeship Training, Employer and
Labor Services

Funding for this activity finances staff who promote and provide leadership and policy direction for the administration of apprenticeship as a method of skill acquisition through a Federal-State apprenticeship structure. Employer and labor services facilitate the understanding and responsiveness of workforce development systems to the training needs of employers and the interest of labor organizations in training programs.

Executive Direction

The Executive Direction staff promote and provide leadership and policy direction for ETA training and employment service programs and activities and provides for related program operations support. Support activities include research, evaluations, demonstrations, and performance standards.

Welfare to Work

Funding for this activity finances staff who administer WTW grants to states and local communities to help the hardest-to-employ recipients of Temporary Assistance for Needy Families (TANF). Decreased funding is proposed as staff is reduced in conjunction with the phase out of this program.


Employee Benefits Security Administration

Budget Authority

(Dollars in Millions)

 

FY 2003*

FY 2004

Change

Enforcement and Participant Assistance

$97.1

$106.7

$9.6

Policy and Compliance Assistance

15.5

17.4

1.9

Executive Leadership, Program Oversight and Administration

4.4


4.5


0.1


Total, EBSA Budget Authority

$117.0

$128.6

$11.6

Full Time Equivalents

861

930

69

*Comparable


The Employee Benefits Security Administration (EBSA), formerly the Pension and Welfare Benefits Administration is responsible for the administration and enforcement of Title I of the Employee Retirement Income Security Act of 1974 (ERISA) and the Federal Employees' Retirement System Act of 1986 (FERSA). The primary mission of EBSA is to protect the pension, health and other benefits of participants in private sector employee benefit plans. EBSA directly affects the livelihood of over 150 million people who participate in ERISA-covered plans, and protects the U.S. economy's single largest source of capital for investment -- pension funds. EBSA will employ an integrated approach that encompasses programs for enforcement, compliance assistance, interpretive guidance, legislation, and benefits research to protect employee benefits and retirement security for our Nation's workers and retirees. In FY 2004, the total request for this program is $128.6 million and 930 FTE.

EBSA directly affects the livelhood of 150 million people

Enforcement and Participant Assistance
This activity conducts criminal and civil investigations, performs reviews to ensure compliance with the fiduciary provisions of ERISA and FERSA, and assures compliance with applicable reporting requirements, as well as accounting, auditing and actuarial standards. The 2004 estimates include an initiative to enhance retirement security and nationwide enforcement coordination. In FY 2004, the budget request for this activity is $106.7 million and 800 FTE. All of EBSA was evaluated with the Program Assessment Rating Tool (PART). The PART found good rulemaking and economic analysis but recommended developing more outcome-oriented performance measures to quantify program impacts on protecting pension and health plans. Also, new budget activities in this request support budget and performance integration.

Policy and Compliance Assistance

This activity conducts policy, research and legislative analyses on pension, health and other employee benefit issues. It provides compliance assistance, especially to employers and plan officials, writes regulations and interpretations, and issues individual and class exemptions from regulations. In FY 2004, the budget request for this activity totals $17.4 million and 108 FTE.

Executive Leadership, Program
This activity provides leadership, policy direction, strategic planning, and administrative guidance in the management of employee benefits security programs. It provides analytical and administrative support for financial and human capital management and other administrative functions related to coordination and implementation of government-wide management initiatives. This activity also manages the technical program training for enforcement, policy, legislative and regulatory functions. In FY 2004, the budget request for this activity totals $4.5 million and 22 FTE.


Selected EBSA Performance Goal and Indicators

  • Achieve greater than 50% ratio of closed civil cases with corrected violations to civil closed cases.
  • Achieve greater than 25% ratio of criminal cases referred for prosecution to total criminal cases.
  • Achieve a Customer Satisfaction Index of 59, or comparable measurement for Participants and Beneficiaries who have contacted EBSA for Assistance.


PENSION BENEFIT GUARANTY CORPORATION

Budget Authority

(Dollars in Millions)

 

FY 2002

FY 2003

Change

Single Employer Program Benefit Payments.

$2,350.0

$2,961.0

$611.0

Multi-Employer Program Financial Asst.

5.9

13.7

7.8

Pension Insurance Activities

11.6

16.6

5.0

Pension Plan Termination

132.3

132.3

-

Operational Support

81.4


80.1


(1.3)


Total, Authority Presidents Budget

$2,581.2

$3,203.7

$622.5

Full Time Equivalents

752

752

-


The Pension Benefit Guaranty Corporation (PBGC) is a wholly-owned Government Corporation, guided by a board of directors chaired by the Secretary of Labor, which guarantees the payments of pension plan benefits to participants in the event that covered plans fail or go out of existence. PBGC protects the pension benefits of about 43 million workers and retirees who earned traditional pensions.

For FY 2004, revised appropriations language ensures more flexibility, yet is more accountable to the Congress. New budget activities support budget performance integration.

Single Employer Benefit Payments
Monthly pension payments are made to plan participants and other beneficiaries of plans which have been trusteed by PBGC. The FY 2004 request totals $3.0 billion for this activity.

Multi-Employer Financial Assistance
Financial assistance provides for repayable loans to insolvent multi-employer sponsored plans to enable these plans to continue paying benefits if a series of prescribed steps is taken to place the plan on a sound financial basis. The FY 2004 request totals $14 million for this activity.

Pension Insurance

Pension Insurance includes pension plan premium collections, premium investments, technical assistance, and new pension plan promotion activities. The FY 2004 request totals $17 million and 96 FTE for this activity.

Pension Plan Terminations

Pension Plan Terminations include all activities related to plan termination and trusteeship; plan asset management, investment and accounting; and administration services. The FY 2004 request totals $132 million and 656 FTE for this activity.

Operational Support

Includes the administrative, information technology infrastructure, and other shared program support for both PBGC's insurance and plan termination activities. The FY 2004 request totals $80 million for this activity.

Selected PBGC Performance Goals and Indicators

  • Send benefit determination to participants in defined benefit plans taken over by PBGC within 2.9 years, on average.
  • Send the first benefit payment to an eligible person within 3 months of receiving his/her completed application 95% of the time.
  • Premium account records are 91% accurate.
  • Research and respond within 90 days to requests for premium refund, waiver of premium penalty, and reconsideration of a PBGC premium decision 90% of the time.
  • Protect the interests of defined benefit pension plan participants through improved accounting, financial reporting and investment management.

EMPLOYMENT STANDARDS ADMINISTRATION

Budget Authority

(Dollars in Millions)

 

FY 2003

FY 2004

Change

Staffing

Salaries and Expenses

$333.4

$336.5

$-75.0

S&E, FECA Surcharge

86.4

86.4

86.4

Special Benefits, Fair Share

37.3

37.0

0.4

Energy Employees' Occupational Illness

     

Compensation Program Act (EEOICPA)

104.9

55.1

(49.8)

Spec. Bene. Disdabled Caol Miners

6.1

6.2

0.1

Total, ESA Staffing

567.8

530.3

(37.5)

Income Maintenance (Mandatory)

     

Special Benefits

163.0

163.0

-

Energy Employees' Occupational Illness

     

Compensation Program Act (EEOICPA)

651.0

385.0

(266.0)

Black Lung Disability Trust Fund

1,043.3

1,043.0

(0.3)

Transfer From BLDTF

(55.3)

(55.7)

(0.4)

Offsetting Receipts - BLDTF

(2.0)

(2.0)

-

Panama Canal Commission Fund

6.7

6.6

(0.1)

Offsetting Receipts - PCC

(6.7)

(6.6)

0.1

Special Workers' Compensation

151.0

152.0

1.0

Transfer From SWC

(2.0)

(2.0)

-

Total, Income Maintenance

2,374.9

2,074.1

(300.8)

Total, ESA Program

$2,942.7

$2,604.4

(338.3)

Full Time Equivalents

4,282

4,360

78


In total, funds for the Employment Standards Administration (ESA) in FY 2004 will decrease by $338.3 million or about 11.5 percent compared with FY 2003. Reduced funding for the Energy Employees' Occupational Illness Compensation program accounts for most of the decline ($49.8 million for staffing and $266.0 million for benefits).

The start up of dose reconstructions for the program has been slower than anticipated, leaving prior year balances available for obligations in FY 2004. New funding ($8.7 million) will finance initiatives to improve enforcement and compliance assistance, streamline medical bill review processes in the FECA program, support ESA-wide data systems, and promote productivity in ESA. Funding of $2.7 million is continued for electronic filing and Internet disclosure of the annual financial reports of unions and for the ongoing replacement of outdated computer systems. The budget re-proposes legislative changes to improve FECA, including changes that allow DOL to bill Federal agencies for their full FECA costs via a surcharge; promote benefit equity and discourage unnecessary claims; and speed claims processing. These proposals would result in 10-year cost savings to the Government of more than $480 million. ESA's request also includes a proposal to restructure the Black Lung Disability Trust Fund debt to ensure the long term solvency of the Trust Fund.

The budget also includes a proposal to increase the civil money penalties (CMPs) for violations of laws administered by ESA.

For example, the CMPs for violations of Wage Hour laws causing death or serious injuries to youths in the workplace would increase from $11,000 to $50,000, and $100,000 for repeat and willful violations. The budget also includes a proposal to authorize OLMS to impose CMPs on unions and others that fail to file their required financial reports on a timely basis. Authorizing CMPs for OLMS is intended to improve compliance, not penalize inadvertent lapses in filing reports.


ESA STAFFING

Budget Authority/Trust Fund Transfers

(Dollars in Millions)

 

FY 2003

FY 2004

Change

Enforcement of Wage and Hour Standards

$162.2

$161.3

$(1.2)

Fed. Contractor EEO Standards Enforcement

77.5

80.0

2.5

Federal Programs for Workers' Compensation

44.2

44.3

0.1

Program Direction and Support

14.7


15.9


1.2


Total, Budget Authority, S&E

333.4

342.1

8.7

S&E, FECA Surcharge

86.4

87.6

1.2

Special Benefits, Fair Share

37.0

39.3

2.3

Energy Employees' Occupational Illness

     

Compensation Program Act (EEOICPA)

104.9

55.1

(49.8)

Special Benefits Disabled Coal Miners (Black Lung Part B Claims)

6.1

6.2

0.1

Total, ESA Staffing

$567.8

$530.3

($37.5)

Full Time Equivalents

4,282

4,360

78


ESA administers and enforces a variety of laws designed to enhance the welfare and protect the rights of American workers. The budget request to conduct these programs in FY 2004 is $530.3 million and 4,360 FTE, of which $342.1 million and 2,991 FTE is in the Salaries and Expenses account, $87.6 million and 839 FTE will be financed by the proposed FECA Surcharge, $39.3 million and 133 FTE is for the Fair Share portion of the Special Benefits account, 380 FTE and $55.1 million is for the Energy Employees' Occupational Illness Compensation Act program, and $6.2 million and 17 FTE is for Special Benefits for the Disabled Coal Miners program recently transferred from the Social Security Administration. In total, this is a decrease of $37.5 million and an increase of 78 FTE over the President's FY 2003 Request. ESA's budget request includes a legislative proposal to finance the operations of the FECA program via a new surcharge. Under this proposal, the direct budget authority for FECA program administration ($87.6 million) would be replaced with offsetting collections to be paid by Federal agencies based on their employees' pro rata share of workers' compensation benefits. Integration of the full cost of FECA benefits and administration in the appropriate agencies will boost Federal agencies' incentives for improving safety in their workplaces. The FECA program also includes legislative proposals to promote benefit equity and to discourage unnecessary claims. Specifically, the budget proposes to amend FECA to move the waiting period before the continuation-of-pay period, conform the FECA benefits of future beneficiaries over the age of 65 to a benefit level typical to what they would receive under Federal retirement programs, and make a number of other changes to improve and update FECA.

...administers and enforces a variety of laws designed to protect the rights of American workers

Federal Programs for Workers' Compensation

The FY 2004 budget request for the Office of Workers' Compensation Programs (OWCP) is $131.8 million and 1,177 FTE for the Federal Employees’ Compensation Act (FECA), Longshore and Harbor Workers’ Compensation, and Black Lung Benefits programs.  Included in the request is $87.6 million and 839 FTE for the FECA Surcharge proposal (The FECA Surcharge proposal was also part of the FY 2003 President’s Budget.  The Surcharge will finance the operations of the FECA program while boosting Federal agencies’ incentives for improving safety in their workplaces.  The direct budget authority for the FECA program administration ($86.4 million in FY 2003 and $87.6 million in FY 2004) is replaced with the Surcharge, which will be paid by Federal agencies based on their employees’ workers’ compensation benefits. 

Other funding for OWCP includes $39.3 million and 133 FTE in the Special Benefits account using “Fair Share” funds.  These funds are used for the operation and enhancement of OWCP’s automated data processing, as well as for periodic roll review activities.  OWCP also requests $55.1 million and 380 FTE to administer the Energy Employees’ Occupational Illness Compensation Program Act (EEOICPA).  These funds will also support the activities of the Department of Health and Human Services under the Act.

OWCP administers disability compensation programs, which mitigate work-related injuries or disease, through the provision of wage replacement and cash benefits, medical treatment, vocational rehabilitation, and other benefits to certain workers (or their dependents or survivors).  The FECA program provides income and medicalbenefits to civilian employees of the Federal government injured at work and to certain other designated groups.  The Longshore and Harbor Workers' Compensation Act program provides similar protection to private sector workers in certain maritime and related employment.  The Black Lung Benefits program provides wage replacement and medical benefits to the Nation's coal miners suffering from pneumoconiosis and cash benefits to their eligible survivors.

EEOICPA and Executive Order 13179 led to the establishment of a fourth OWCP program in FY 2001 to adjudicate claims and make awards of compensation and medical benefits to employees or survivors of employees of the Department of Energy (DOE) and its contractors who suffer from a radiation-related cancer, beryllium-related disease, or chronicsilicosis as a result oftheir work in producing or testing nuclear weapons.

The President signed into law the Black Lung Consolidation of Administrative Responsibilities Act on November 2, 2002.  This law permanently transferred the responsibility of the Social Security Administration’s (SSA) program to administer Black Lung Part B claims to the Department of Labor.  The law consolidates all Black Lung claims handled by the Federal government in the Department of Labor, improving administrative efficiency. 

This budget includes a legislative proposal to restructure the debt of the Black Lung Disability Trust Fund (BLDTF), a debt that is estimated to reach $8.6 billion by FY 2004.  This proposal includes (1) restructuring the outstanding BLDTF debt, (2) extending at current rates the BLDTF excise taxes set to expire in January 2014, and (3) a  $2.3 billion appropriation to compensate the General Fund for forgone interest.

Office of Labor-Management Standards

The FY 2004 budget request for the Office of Labor-Management Standards (OLMS) is $40.6 million and 372 FTE.  OLMS enforces provisions of Federal law that require reports from unions and others and establishes certain standards for union democracy and financial integrity.  OLMS conducts criminal investigations (primarily union funds embezzlement) and investigative audits of unions; conducts civil investigations (primarily concerning union officer elections); supervises remedial union officer elections, as required; administers statutory reporting requirements; and provides for public disclosure of filed reports.  The budget request includes $5.3 million and an additional 75 FTE for enhanced enforcement and outreach assistance activities to ensure compliance with the Labor-Management Reporting and Disclosure Act.  The budget request also includes $1.25 million for the electronic filing and Internet public disclosure of the statutorily required reports.  OLMS, through its Division of Statutory Programs, also certifies protective arrangements for transit employees when Federal transit grant funds are used to acquire, improve, or operate a transit system.   The budget also includes a proposal to authorize OLMS to impose Civil Money Penalties on unions and others that fail to file their required financial reports on a timely basis.  The intent is to improve compliance, not penalize inadvertent lapses in filing reports.        

Program Direction and Support

The FY 2004 budget request for Program Direction and Support is $15.9 million and 107 FTE.  This activity supports ESA's operating programs and ensures effective management by providing planning, personnel management, financial management, Federal/state liaison programs, management systems implementation, and data processing.  The budget request includes $0.8 million for enhanced ADP Support in ESA and $1.4 million (continued from FY 2003) for ongoing replacement of outdated computer systems.

Selected ESA Performance Goals and Indicators

  • Improving Customer Satisfaction by decreasing the average number of days to conclude a complaint.
    • Decrease by 3% over the FY 2003 measure the average number of days for Wage and Hour to conclude a complaint.

  • Increasing Compliance in Industries with chronic violations.
    • Increase by 5% the number of nursing homes in compliance with the Fair Labor Standards Act (FLSA).
    • Increase by 2% compliance among agricultural employees through targeted assistance programs subject to the Migrant and Seasonal Agricultural Worker Protection Act (MSPA).

  • Reducing the incidence of discrimination among Federal contractors by 9%.

  • Through use of the Periodic Roll Management program, produce $38 million in cumulative first-year savings in the Federal Employees’ Compensation program.

  • Increase timely filing of financial reports by unions with annual receipts over $200,000 to 87%.

ESA Income Maintenance Programs (Mandatory)

Budget Authority/Trust Fund Transfers
(Dollars in Millions)

FY 2003

FY 2004

Change

Special Benefits:

Federal Employees' Compensation Act

$2,376.0

$2,532.0

$156.0

Less Fair Share Funding

(37.0)

(39.3)

(2.3)

Longshore and Harbor Workers' Compensation

3.0

3.0

-

Subtotal, Special Benefits Program

2,342.0

2,495.7

153.7

Less Chargeback Reimbursements

(2,168.0)

(2,276.7)

(108.7)

Net Carryover Balances

(11.0)

(56.0)

(45.0)

Total, Special Benefits

163.0

163.0

0.0

Energy Employees' Occupational Illness
Compensation Program Act (EEOICPA):

651.0

385.0

(266.0)

Black Lung Disability Trust Fund (BLDTF):

1,043.3

1,043.0

(0.3)

Less Offsetting Receipts

(2.0)

(2.0)

-

Less BLDTF Admin. (excludes Treasury)

(55.3)

(55.7)

(0.4)

Total, BLDTF (Part C)

986.0

985.3

(0.7)

Special Bene./Disabled Coal Miners (Part B):

 

 

 

Appropriation (Benefits)

317.9

293.8

(24.1)

Advanced Appropriation (Benefits)

108.0

97.0

(11.0)

Total, SB/ Disabled Coal Miners

425.9

390.8

(35.1)

Other Income Maintenance Programs:

 

 

 

Panama Canal Commission Fund

6.7

6.6

(0.1)

ess PCC Offsetting Receipts

(6.7)

(6.6)

0.1

Special Workers' Compensation Expenses

151.0

152.0

1.0

Less Administrative Expenses

(2.0)

(2.0)

-

Total, Special Workers' Compensation

149.0

150.0

1.0

Total, Income Maintenance Programs

$2,374.9

$2,074.1

$(300.8)

The budget includes a total of $2,074.1 million for income maintenance programs in ESA in FY 2004, a decrease of $300.8 million from FY 2003.  The budget re-proposes a number of FECA legislative reforms, including changes to strengthen Federal agencies’ incentives to improve workplace safety; reflect best practices of State workers’ compensation systems, improve program fairness, and speed claims processing.   The budget also includes a legislative proposal to improve the Black Lung program by restructuring the program’s growing debt.  The budget also reflects the transfer of the Social Security Administration’s “Special Benefits for Disabled Coal Miners” account to the Department of Labor.

Special Benefits

The request of $163.0 million for Special Benefits in FY 2004 includes $160.0 million for Federal Employees' Compensation Act benefits, and $3.0 million for Longshore and Harbor Workers' Compensation benefits.  This account also includes a request for $39.3 million from Fair Share funding to finance 133 FTE for administration of the FECA program, as described in the Staffing Section.

Federal Employees' Compensation Act Benefits

…will provide compensation and medical benefits to eligible workers or their survivors

FECA provides long-term compensation benefits and certain medical payments for job-related injuries, diseases, or deaths of civilian employees of the Federal government and certain other designated groups.  Like the Periodic Roll Management and Quality Case Management initiatives, the FECA Surcharge proposal is expected to contribute to the reduction in overall FECA costs by providing Federal agencies with an incentive to improve safety and health procedures.  The Administration is also re-proposing a number of other legislative changes to improve FECA.   Taken together, these changes are expected to generate a 10-year Government-wide savings of more than $480 million.  DOL will also continue to address the findings of the Administration’s Program Assessment Rating Tool (PART).  

Longshore and Harbor Workers' Compensation Act Benefits

This program funds one-half of the increased benefits provided by the 1972 amendments for persons receiving compensation for permanent total disability or death which commenced or occurred prior to the amendments.  Long-term compensation benefits and medical payments are provided for job-related injuries, diseases, or deaths of private sector workers in certain maritime and related employment.

Energy Employees Occupational Illness Compensation Benefits

The budget request for FY 2004 includes  $440.1 million for EEOICPA.  Of that amount, $385 million will provide compensation and medical benefits to eligible workers or their survivors. The request for program administration is $55.1 million and 380 FTE, including funding for the Department of Health and Human Services.

Black Lung Disability Trust Fund

The budget request provides a total of $1.043 billion from the Black Lung Disability Trust Fund (BLDTF) in FY 2004 for benefits and interest payments and administrative expenses.  This includes $346.9 million for benefits, $56.1 million for administrative expenses, and $640.0 million for interest payments.  These figures do not account for the estimated costs of the refinancing proposal (described below).

The Black Lung Disability Trust Fund (BLDTF) is facing a growing debt, which in FY 2004 will approach $8.6 billion.   BLDTF revenues, which consist primarily of excise taxes on coal, are insufficient to repay this debt or the interest on that debt.  Under current conditions, this indebtedness will continue to grow, with the BLDTF never becoming solvent, even when benefit outlays have declined to a level approaching zero.  To solve this problem, the Administration will propose legislation that will:  (1) authorize a restructuring of the BLDTF debt, (2) extend, at current rates, BLDTF excise taxes set to expire in January 2014, and (3) provide a one-time $2.3 billion appropriation to compensate the General Fund of the Treasury for forgone interest payments.

Disabled Coal Miner Benefits
Part C Claims

Under this program, all black lung compensation/medical and survivor benefit expenses are provided when no responsible mine operator can be assigned liability for such benefits, or when coal mine employment ceased prior to 1970. 

Administrative Expenses

This provides for all administrative costs incurred by the Department of Labor in the operation of the Black Lung program, including reimbursements to the Departments of Health and Human Services, and Treasury.

Interest on Advances

This appropriation funds payment of interest on advances to the BLDTF from the General Fund of the Treasury.  In FY 2004, the amount of interest on advances is estimated to be $640.0 million.

Special Benefits/Disabled Coal Miners
Part B Claims

The FY 2004 budget reflects the permanent transfer of the Black Lung Part B program from the Social Security Administration (SSA) to the Department of Labor.  Legislation proposed last year by the Administration to authorize this transfer was enacted on November 2, 2002.  ESA was already handling SSA’s Black Lung Part B claims through a reimbursement agreement with SSA.  This transfer consolidates all Black Lung claims handled by the Federal government in the Department of Labor’s Black Lung program.  DOL now handles all claims for compensation under the Black Lung Benefits Act.  

Other Income Maintenance Programs

The budget requests $6.6 million for the Panama Canal Commission Fund and $151.0  million for the Special Workers' Compensation Expenses program.

Panama Canal Commission Fund

This provides for the accumulation of funds to meet the Panama Canal Commission's obligations to defray costs of workers' compensation which will accrue pursuant to FECA. 

Special Workers' Compensation Expenses Payments from the Special Fund

Under the Longshore and Harbor Workers' Compensation Act, as amended, trust funds in this program consist of amounts received from employers for the death of an employee where no person is entitled to compensation for such death, for fines and penalty payments, and pursuant to an annual assessment of the industry, for the general expenses of the funds.  From these funds, certain long-term compensation benefits and medical payments are provided for job-related injuries, diseases, or deaths of private sector workers in certain maritime and related employment.


Occupational Safety & Health Administration

Budget Authority
(Dollars in Millions)

 

FY 2003

FY 2004

Change

Saftey and Health Standards

$14.3

$14.5

$0.2

Federal Enforcement

161.1

165.3

4.2

State Programs

89.7

91.7

2.0

Technical Support

20.2

21.7

1.5

Federal Compliance Assistance

60.3

67.5

7.2

State Consultation Grants

52.5

52.5

-

Training Grants

4.0

4.0

-

Safety and Health Statistics

25.7

22.4

(3.3)

Executive Direction and Administration

9.2

10.4

1.2

    

Total, OSHA Budget Authority

$437.0

$450.0

$13.0

 

 

 

 

Full Time Equivalents

2,233

2,236

3

The mission of the Occupational Safety and Health Administration (OSHA) is to save lives, prevent injuries and illnesses and protect American workers.  The agency promulgates and enforces occupational safety and health standards and provides complianceassistance to employers and employees.  OSHA also assists other Federal agencies in establishing and maintaining occupational safety and health programs for Federal workers and provides funding for state administered safety and health consultation programs.  Consistent with its strategic goals, OSHA will focus on the most serious hazards and dangerous workplaces and expand compliance assistance opportunities.  The FY 2004 OSHA budget request is $450.0 million and 2,236 FTE, anincrease of $13.0 million and 3 FTE over FY 2003.

Safety and Health Standards

The Safety and Health Standards activity provides for the development, promulgation, review and evaluation of occupational safety and health standards and non-regulatory products.  In FY 2004, OSHA will continue to base all standards on clear and sensible priorities and review existing rules to revise or eliminate obsolete and confusing standards or provisions.  The FY 2004, Budget provides $14.5 million and 85 FTE for this activity, an increase of   $.2 million over FY2003.

Federal Enforcement

The Federal Enforcement activity encourages compliance with workplace standards under the Occupational Safety and Health Act of 1970 through the physical inspection of work sites, and by fostering the voluntary cooperation of employers and employees.  OSHA will continue to target inspections on the worst hazards and the most dangerous workplaces and assist employers and employees in creating safe and healthy workplaces.  The FY 2004 Budget includes a $750,000 increase to improve OSHA’s ability to target industries and areas based on occupational disease hazards.  In FY 2004, the budget request for this activity is $165.3 million and 1,581 FTE, an increase of $4.2 million over FY 2003.

OSHA is dedicated to reducing injuries, illnesses and fatalities, and promoting the value of safety and health in business, the workplace and in people's lives.

State Programs

The State Programs activity supports grants to 26 states that have assumed responsibility for occupational safety and health enforcement under OSHA approved plans. State Programs support enforcement, consultation, and education and training efforts in OSHA programs operated by the states.  These resources enable OSHA’s state partners to meet new challenges and complement Federal OSHA’s program strategies.  The FY 2004 Budget for this activity is $91.7 million, an increase of $2.0 million over the FY 2003 level.

Technical Support

This activity provides support to Federal OSHA programs in several areas, including construction, standards setting, variance determinations, compliance assistance, and enforcement.  Areas of expertise include laboratory accreditation, industrial hygiene, occupational health nursing, occupational medicine, chemical analysis, equipment calibration, and safety engineering.  The FY 2004 request for this activity is $21.7 million and 109 FTE, an increase of $1.5 million over the FY 2003 level.

Federal Compliance Assistance

This activity supports a variety of cooperative assistance programs, training and outreach to provide compliance assistance to employers and employees, particularly  small businesses.  Employers are encouraged to establish voluntary employee protection programs, and Federal agencies are assisted in implementing job safety and health programs for their employees.  Professional training for compliance personnel and others with related workplace safety and health responsibilities is conducted at the OSHA Training Institute, and further training is provided to the public by education centers selected and sanctioned by the Institute.  The FY 2004 Budget for this activity is $67.5 million and 356 FTE, an increase of $7.2 million and 3 FTE over FY 2003.  Included in this request is an additional 5.2 million to expand compliance assistance and partnership efforts, with a particular focus on non-English-speaking and hard-to-reach workers and small businesses.

State Consultation Grants

This activity supports 90 percent of Federally funded cooperative agreements with designated State agencies to provide free on-site consultation to employers upon request.  State agencies tailor work plans to their States while maximizing their impact on injury and illness rates in smaller establishments.  These projects offer a variety of services, including safety and health program assessment and assistance, hazard identification and control, and the training of employers and their employees.  The FY 2004 Budget includes $52.5 million for this activity, the same level as requested for FY 2003.

Training Grants

This activity supports safety and health training grants to nonprofit organizations to provide employee and employer training programs targeted to address specific industry needs for safety and health education.  The FY 2004 Budget requests $4.0 million for this activity, the same amount as FY 2003.

Safety and Health Statistics

Safety and Health Statistics provides information technology, management information and statistical support for OSHA’s programs and field operations through an integrated data network and statistical analysis and review.  The FY 2004 request includes $22.4 million and 39 FTE for this activity, a decrease of $3.3 million from FY 2003.

Executive Direction and Administration

This activity provides overall direction and administrative support for OSHA.  The FY 2004, Budget level for this activity is $10.4 million and 50 FTE, an increase of $1.2 million over FY 2003.

Selected OSHA Performance Goals and Indicators

  • Reduce the rate of workplace fatalities by 5% from the baseline rate.

  • Reduce the rate of workplace injuries and illnesses by 8% from baseline.

Mine Safety and Health Administration

Budget Authority
(Dollars in Millions)

 

FY 2003

FY 2004

Change

Enforcement: Coal

$112.3

$113.4

$1.1

Enforcement: Metal/Nonmetal

63.9

66.4

2.5

Enforcement: Standards Development

2.3

2.3

0.0

Assessments

4.8

4.1

(0.7)

Educational Policy and Development

28.0

30.5

2.5

Technical Support

28.7

24.7

(4.0)

Program Evaluation & Information Resources

-

14.2

14.2

Program Administration

14.3

11.2

(3.1)

Total, MSHA Budget Authority

$254.3

$266.8

$12.5

 

 

 

 

Full Time Equivalents

2,264

2,334

70

The Mine Safety and Health Administration (MSHA) protects the safety and health of the Nation's miners through enforcement of the Federal Mine Safety and Health Act of 1977.  The FY 2004 budget request includes $266.8 million and 2,334 FTE, an increase of $12.5 million and 70 FTE over FY 2003.  MSHA has added an additional budget activity for FY 2004, Program Evaluation and Information Resources.  This activity, utilizing resources formerly in other MSHA activities, centralizes information technology and supports the MSHA Internet site, as well as centralizing responsibility for the Government Performance and Results Act. 

Enforcement:  Coal

The Coal Mine Safety and Health activity is responsible for ensuring the safety and health of the Nation's coal miners through special emphasis programs, compliance and training assistance, and periodic regular inspections and special investigations.  The FY 2004 request includes $113.4 million and 1,086 FTE.  The request is $1.1 million and 10 FTE more than FY 2003.   The request includes an increase of $2.6 million and 35 FTE to increase compliance assistance and enforcement activities. The request also includes an increase of $450 thousand for the cyclical replacement of sampling and personal protective equipment.

Enforcement:  Metal/Nonmetal

A total of $66.4 million and 622 FTE is requested for FY 2004 Metal and Nonmetal Mine Safety and Health activities.  The request is $2.5 million and 13 FTE more than FY 2003.  These activities promote a healthful working environment in the Nation's metal and nonmetal mines and mills.  MSHA accomplishes this goal through compliance and training assistance, periodic regular inspections and special investigations.  The request includes a $2.0 million and 20 FTE increase for health, safety and compliance assistance to respond to the growth of the metal and nonmetal mining industry.  The request also includes an increase of $200 thousand for the cyclical replacement of health and safety sampling equipment.

Enforcement:  Standards Development

The FY 2004 request for the MSHA Standards Development activity includes $2.3 million and 18 FTE, roughly the same amounts as for FY 2003.  This activity provides for the development and promulgation of mandatory safety and health standards to ensure the best protection for the health and safety of all miners.

Assessments

MSHA utilizes enforcement, education, and training, and technical assistance to improve the health and safety of miners.

The primary functions of the Assessments activity are to assess civil monetary penalties for  violations of the Mine Safety and Health Act, litigate penalty cases as necessary before the Federal Mine Safety and Health Review Commission and the Federal courts, and collect and account for all penalties received.  The FY 2004 request for Assessments includes $4.1 million and 45 FTE, a decrease of $700 thousand and 6 FTE from FY 2003. 

Educational Policy and Development

A total of $30.5 million and 159 FTE is requested for the Educational Policy and Development activity which is an increase of $2.5 million and 19 FTE over FY 2003.  Activities include development and coordination of MSHA's mine safety and health education and training policies, the delivery of on-site training assistance to mines throughout the country, and the provision of classroom instruction at the National Mine Health and Safety Academy for MSHA personnel and other members of the mining industry.  The request includes $2.4 million and 21 FTE for the establishment of an Office of Small Mines, to develop and distribute educational materials, offer training assistance, and to review regulations that pose an undue burden on small mines.

Technical Support

A total of $24.7 million and 222 FTE is requested for the Technical Support activity for FY 2004.  This is a decrease of $4.0 million and 33 FTE from FY 2003.  This activity applies engineering and scientific expertise through field and laboratory forensic investigations to resolve technical problems associated with implementation of the Mine Act; administers a fee program to approve equipment, materials, and explosives for use in mines; and collects and analyzes data relative to the cause, frequency, and circumstances of accidents.  The request includes $350 thousand for the purchase of analysis equipment.

Program Evaluation and Information Resources

The new Program Evaluation and Information Resources (PEIR) activity will operate and maintain MSHA’s computer infrastructure and establish standards and controls for the computer and networking hardware and software used by MSHA employees.  PEIR will maintain all of MSHA’s information and technology applications and its general support system and Internet sites.  PEIR will also have the responsibility for MSHA meeting the requirements of the Government Performance and Results Act, and monitor, measure, evaluate, and report on Agency progress towards meeting annual performance goals.

The creation of PEIR will be accomplished by the shift of funds and staff from other MSHA activities.  The 2004 request for PEIR includes $14.2 million and 75 FTE, the same amount that was requested, in other MSHA activities for PEIR purposes, in FY 2003.

Program Administration

A total of $11.2 million and 107 FTE is requested for the Program Administration activity for FY 2004.  This represents a decrease of $3.1 million and 8 FTE from FY 2003.  This activity provides leadership, policy direction, and administrative support services for MSHA’s safety and health programs.

Selected MSHA Performance Goals and Indicators

  • Reduce the fatal injury incidence rate 15% per year.

  • Reduce the percentage of respirable dust samples in coal mines, exceeding applicable standards by 5% per year for designated occupations.

  • Reduce the percentage of respirable silica samples in metal and nonmetal mines, exceeding applicable standards by 5% per year for high-risk occupations.

  • Reduce the percentage of noise exposures above the citation level in coal and metal and nonmetal by 5%.

Bureau of Labor Statistics

Budget Authority/Trust Fund Transfers
(Dollars in Millions)

 

FY 2003

FY 2004

Change

Labor Force Statistics 1

$223.0

$224.7

$1.7

Prices and Cost of Living

160.7

167.6

6.9

Compensation and Working Conditions

76.4

80.2

3.8

Productivity and Technology

10.0

10.4

0.4

Executive Direction and Staff Services

28.1

29.4

1.3

    

Total, BLS Budget Authority

$498.2

$512.3

$14.1

 

 

 

 

Full Time Equivalents 2

2,529

2,529

-

1 FY 2004 amount reflects the first step in converting the financing for the Occupational Employment Survey.
2 Includes 61 reimbursable FTE.

The Bureau of Labor Statistics (BLS) is the principal fact finding agency in the Federal government in the broad field of labor economics.  The BLS provides general purpose statistics that serve as some of the major indicators used in:  developing economic and social policy; making decisions in the business and labor communities; developing legislative and other programs affecting the labor market; conducting research on labor market issues; and projecting Federal expenditures and receipts.  The request for the BLS in FY 2004 is $512.3 million and 2,529 FTE, which is an increase of $14.1 million over FY 2003.  Included in the request is $800 thousand to begin a new initiative to generate two yearly CurrentPopulation Survey supplements on key labor force issues, including volunteerism and job turnover.  All of BLS was evaluated with the Program Assessment Rating Tool (PART).  The PART recommended that the BLS develop more outcome-based,quantitative, and transparentperformance measures.  It also recommended that the BLS maintain its current successes in program monitoring and operations, which this budget request is designed to do.

Labor Force Statistics

The Labor Force Statistics program provides comprehensive and timely information on the labor force, employment, unemployment, and related labor market characteristics at the national level; industrial and occupational employment at the State and local levels; and labor force and unemployment figures at State and local levels.  In addition, this budget activity develops projections of the labor force, economic growth, industrial output, and employment by industry and occupation for 10 years into the future for the Nation as a whole.

In FY 2004, the BLS will continue to develop monthly estimates on the numbers of separations, new hires, and current job openings for the economy as a whole and major industry groupings.  In conjunction with the Census Bureau, the BLS will conduct the American Time-Use Survey.  In addition, the BLS will continue to improve the quality of the estimates produced by the Local Area Unemployment Statistics program and develop the capability to produce additional demographic data at the local level.  In FY 2004, the BLS will introduce two new supplements to the Current Population Survey.  The first will cover volunteerism, while the second will focus on other important labor force issues, such as job turnover and work schedules, on a rotating basis.  The BLS request includes $224.7 million and 497 FTE for the Labor Force Statistics program, an increase of $1.7 million.

BLS compiles annual information on the incidence and number of work-related injuries, illnesses, and fatalities

Prices and Cost of Living

The Prices and Cost of Living program publishes the Consumer Price Index (CPI), the Producer Price Index (PPI), and the U.S. Import and Export Price Indexes.   This budget activity provides CPI data for many geographic areas within the United States, and estimates of consumers' incomes and expenditures that are used in analysis of price behavior and consumer spending patterns.  The BLS also provides these data for interpretation of price movements in relation to other major economic changes, and the formulation and evaluation of economic policy.  In FY 2004, the BLS will continue to refine the plan for revising the CPI sample by geographic areas as well as the sample of housing units used for measuring rent change.  Services coverage expansion will continue for the PPI, as well as the modernization of computing systems for monthly processing of the PPI and U.S. Import and Export Price Indexes.  The BLS also will begin updating the U.S. Import and Export Price Indexes on an annual basis.  The BLS request includes $167.6 million and 1,097 FTE, an increase of $6.9 million over the FY 2003 request.

Compensation and Working Conditions

The Compensation and Working Conditions program publishes data on employee compensation, including information on wages, salaries, and employer-provided benefits, by occupation for major labor market areas and industries.  The Employment Cost Index (ECI) is used in setting and evaluating monetary policy, which is reflected in mortgage rates and other interest charges.   The program also compiles and publishes information on collective bargaining.  Through the  Survey of Occupational Injuries and Illnesses, and the Census of Fatal Occupational Injuries, the BLS compiles annual information on the incidence and number of work-related injuries, illnesses, and fatalities.  These two programs serve as the Nation’s primary public health surveillance system for job related injuries and illnesses.  In FY 2004, the BLS will continue its ongoing plan to update and expand the sample of establishments that is used to produce the ECI, the local area pay data, and the Employee Benefits Survey.  The BLS also will publish the results of the 2002 Survey of Occupational Injuries and Illnesses and 2003 Census of Fatal Occupational Injuries. The BLS request includes $80.2 million and 579 FTE for the Compensation and Working Conditions program, an increase of $3.8 million over FY 2003.

Productivity and Technology

The Productivity and Technology program measures productivity trends for major sectors of the economy and individual industries, and analyzes trends in order to examine the factors underlying changes in productivity.  The program also develops international comparisons of productivity, hourly compensation, unit labor costs, and employment and unemployment.  In FY 2004, the BLS will publish new measures of labor productivity and unit labor costs for three additional service-producing industries.   The BLS request includes $10.4 million and 81 FTE for the Productivity and Technology program, an increase of $400 thousand over FY 2003.

Executive Direction and Staff Services

The Executive Direction program provides agency-wide policy and management direction, including all centralized support services in the administrative, publications, information technology, and statistical methods research areas.  The BLS request includes $29.4 million and 214 FTE for the Executive Direction program, an increase of $1.3 million over the FY 2003 request.

Selected BLS Performance Goals and Indicators

  • Produce and disseminate high quality statistics for the BLS Principal Federal Economic Indicators according to the announced schedule, and improve the accuracy, efficiency, and relevancy of the statistics.

  • Produce and disseminate high quality statistics, other than Principal Federal Economic Indicators, according to the announced schedule, and improve the accuracy, efficiency and relevancy of the statistics.

Office of Disability Employment Policy

Budget Authority
(Dollars in Millions)

 

FY 2003

FY 2004

Change

Office of Disablility Employment Policy

$47.0

$47.3

$0.3

    Total, ODEP Budget Authority

47.0

47.3

0.3

 

 

 

 

Full Time Equivalents

65

65

0

ODEP's mission is to provide leadership to increase employment opportunities for adults and youth with disabilities

The budget request provides the Office of Disability Employment Policy (ODEP) a total of $47.3 million and 65 FTE in FY 2004, an increase of $0.3 million from FY 2003.  ODEP’s mission is to provide leadership to increase employment opportunities for adults and youth with disabilities and to implement the employment-related goals of President Bush's New Freedom Initiative.  Efforts focus on achieving a lasting systemic impact on the employment process through policy analysis and development and replication of effective practices.  Stakeholders include individuals with disabilities and their families, private and public employers and their employees, Federal, state, and local government agencies, educational and training institutions, and disability advocates.

ODEP focuses on the supply side and the demand side of the labor market as they relate to employment of people with disabilities.  On the supply side, ODEP develops and promotes policies to increase employment by expanding access to training, education, employment supports, assistive technology, integrated employment, entrepreneurial development, and small business opportunities.  On the demand side, ODEP develops and promotes policies to build partnerships with employers, organizations, and Federal, state, and local agencies to increase awareness of the benefits of hiring people with disabilities, and to facilitate the uses of effective practices.

To institute the workplace changes necessary to increase employment opportunities, accurate and reliable information is needed on employment and disability statistics.  The Federal and private sectors use a variety of measurements to determine the employment rate of people with disabilities based on numerous.   In FY 2004, ODEP and the Bureau of Labor Statistics will work to refine employment statistics in regards to disability information.

This budget request supports the Department’s strategic goals of A Prepared Workforce to promote opportunities for America's workforce and Quality Workplaces that foster workplaces that are safe, healthy and fair. 


Departmental Management

Budget Authority/Trust Fund Transfers
(Dollars in Millions)

 

FY 2003

FY 2004

Change

Program Direction and Support

$26.5

$28.3

$1.8

Legal Services

84.9

89.4

4.5

International Labor Affairs

54.6

12.3

(42.3)

Administration and Management

31.9

32.4

0.5

Adjudication

41.5

42.6

1.1

Women's Bureau

8.4

8.6

0.2

Civil Rights

6.0

6.1

0.1

Chief Financial Officer

6.1

5.1

(1.0)

Information Technology Activities

74.0

48.6

(25.4)

Management Initiatives

7.0

23.5

16.5

    

Total, DM Budget Authority

$340.9

$296.9

-$44.0

 

 

 

 

    Working Capital Fund, Budget Authority

-

$20.0

$20.0

 

 

 

 

Full Time Equivalents 1

2,215

2,214

(1)

1  Includes 692 FTE in FY 2003 and 697 FTE in FY 2004 for the Working Capital Fund; and 17 FTE in FY2003 and FY 2004 for DM reimbursable activities.

Departmental policyDepartmental Management organizations are responsible for formulating and overseeing the achievement of

The FY 2004 budget for the Departmental Management (DM) appropriation is $296.9 million and 1,517 FTE.  In addition, there are 697 FTE in the Working Capital Fund for an overall total of 2,214 FTE.  The DM request represents a decrease of $44.0 million and 1 FTE from FY 2003.  The Working Capital Fund, which is a no-year revolving fund that provides centralized administrative support services financed mainly through assessments of DOL agencies, will increase by $28.9 million.  Of this amount, $20 million is for a direct appropriation to the Working Capital Fund as a first installment to replace the Department’s aging core accounting system.

The DM appropriation provides funding for the following activities:  Program Direction and Support, Legal Services, International Labor Affairs, Administration and Management, Adjudication, Women's Bureau, Civil Rights, Chief Financial Officer,  as well as two centralized management activities, the Information Technology initiatives administered by the Chief Information Officer, and the Management Initiatives activity.  These Departmental Management organizations are responsible for formulating and overseeing the achievement of Departmental policy, for the overall management of the Department, and for providing a variety of unique services in ensuring equal employment opportunity in Departmental programs, and in supporting the rights of workers and promoting issues involving women in America's workforce.

Program Direction and Support

Under the direction of the Secretary, the agenda for major program initiatives in such areas as pension protection, child labor, One Stop Centers, and unemployment insurance reform is forged.

The Program Direction and Support (PDS) activity includes a total budget request of $28.3 million and 161 FTE for FY 2004, an increase of $1.8 million from FY 2003.  The PDS activity includes the immediate Offices of the Secretary and Deputy Secretary, provides leadership and direction for overall programs, activities, and functions to carry out the multiple missions of the Department.  In addition, PDS provides guidance for the development and implementation of government policy to protect and promote the interest of the American worker toward achieving better employment and earnings, to promote productivity and economic growth, safety, equity and affirmative action in employment, to collect and analyze statistics on the economy including the labor force, to monitor and evaluate emerging economic and international and national labor market trends and events, and to promote lifelong learning in the 21st century.  PDS activities are central to the achievement of the Department’s overall mission.  Under the direction of the Secretary, the agenda for major program initiatives in such areas as pension protection, child labor, One Stop Centers, and unemployment insurance reform is forged.   Included in the request is $1.0 million for outreach and training to support the President’s Faith-Based initiative.

Legal Services

The Office of the Solicitor (SOL) includes a total budget request of $89.4 million and 676 FTE for FY 2004, an increase of $4.5 million and 12 FTE from FY 2003.  The SOL independently litigates cases in the U.S. District Courts, Courts of Appeals, and before administrative law judges and administrative appellate bodies; serves as the co-counsel to the Solicitor General in Department-related litigation in the U.S. Supreme Court; assists the Justice Department and local U.S. Attorneys, offices in case preparation and trial; supports regulatory reform through the reviewof rules and regulations; provides oral and written interpretations and opinions to the client agencies concerning the statutes which the Department enforces; coordinates the Department’s legislative program; reviews proposed legislation and assists in drafting legislation; prepares testimony and reports on proposed legislation as requested by the Congress and the Office of Management and Budget, as well as annual reports to the Congress; provides legal advice to interagency groups responsible for U.S. trade matters; assists in negotiating internationalagreements; and participates in international organizations including the InternationalLabor Organization (ILO).  The Office of the Solicitor also serves as “House Counsel” to the Department on a variety of matters, including labor-management relations and ethics.  In FY 2004, SOL requests an additional $1.5 million and 12 FTE for additional legal support of enforcement activities proposed by DOL agencies.

International Labor Affairs

The total request for Bureau of International Labor Affairs (ILAB) in FY 2004 is $12.3 million and 60 FTE, a reduction of $42.3 million and 25 FTE from FY 2003.  The budget finalizes the plan of returning ILAB to its core mission to assist in formulating the U.S. international policies and programs of concern to American workers.  ILAB’s grant making functions are eliminated; however, ILAB will complete its oversight of grants awarded in previous years until they are closed out.  ILAB coordinates the Department’s global responsibilities, and in 2004, will continue to provide expert support for many of the Administration’s international initiatives.  The core mission of the Bureau includes representing the U.S. government at the International Labor Organization (ILO) and on the Employment, Labor and Social Affairs Committee of the Organization of Economic Cooperation and Development. 

Administration and Management

The FY 2004 budget includes $32.4 million and 126 FTE, an increase of $0.5 million from FY 2003, for the Office of the Assistant Secretary for Administration and Management (OASAM).  OASAM provides leadership and policy guidance in the areas of budget, human resources, information technology, as well as management and administration for the Department’s program agencies.  OASAM’s mission also includes providing centralized administrative and support services to the program agencies through the Working Capital Fund.  This arrangement allows Departmental employees to achieve efficiency and cost effectiveness in the provision of such services.

Adjudication

The Adjudication activity consists of two components: the Office of Administrative Law Judges (OALJ), andthe Adjudicatory Boards comprised of the Benefits Review Board, the Employees' Compensation Appeals Board, the Administrative Review Board and the Office of the Managing Partner.  In FY 2004, the total budget requested for these agencies is $42.6 million and 327 FTE, an increase of $1.1 million from FY 2003. The OALJ presides over formal hearings and renders timely decisions on claims filed under numerous statutes, including the Black Lung Benefits Act, the Longshore and Harbor Workers' Compensation Act and its extensions, and numerous other acts involving complaints to determine violations of minimum wage requirements, overtime payments, health and safety regulations, and unfair labor practices.  The Adjudicatory Boards review and decide appeals of claims under the Black Lung Benefits Act, the Longshore and Harbor Workers' CompensationAct, and the Federal Employees’ Compensation Act as well as statutory whistle blower provisions, wage determination statutes, and certain worker protection laws.

Women's Bureau

The Women's Bureau is the only Federal agency with primary responsibility for serving and promoting the interests of working women.

The FY 2004 budget includes $8.6 million and 64 FTE for the Women’s Bureau, an increase of $0.2 million from FY 2003.  The Women’s Bureau is the only Federal agency with primary responsibility for serving and promoting the interests of working women.  The Women’s Bureau designs projects addressing issues of importance to working women, provides information about innovative women’s programs, and advises and assists in the development of Departmental policies and programs related to or affecting women, in keeping with the Secretary’s goals.

Civil Rights

The total proposed funding in the FY 2004 budget for the Civil Rights activity is $6.1 million and 48 FTE, an increase of $0.1 million from FY 2003.  The Civil Rights activity is responsible for ensuring full compliance with Title VI of the Civil Rights Act, the Age Discrimination Act, Section 504 of the Rehabilitation Act, Section 188 of the Workforce Investment Act, Title II of the Americans with Disabilities Act, and the regulatory provisions implementing those statutes.  The nondiscrimination provisions are applicable to programs receiving or benefiting from financial assistance from DOL.  In addition, this activity ensures equal employment opportunity for all DOL employees and applicants for employment.  This request is part of the overall DOL strategy to promote voluntary compliance in DOL enforcement activities, and in conjunction with the Office of Disability Employment Policy, to place special emphasis on improving access to DOL financial assistanceprograms for persons with disabilities.

Chief Financial Officer

The OCFO is responsible for … assuring that all Departmental financial functions conform to applicable standards

For the Chief Financial Officer activity, the FY 2004 budget includes $5.1 million and 38 FTE, a decrease of $1.0 million from FY 2003.  The decrease stems from a one time effort to modernize the current accounting system while planning for the development of a new system (see Working Capital Fund).   The Office of the Chief Financial Officer (OCFO) is responsible for enhancing knowledge and skills of Departmental staff working in financial management operations, developing comprehensive accounting and financial management policies, assuring that all Departmental financial functions conform to applicable standards, providing leadership and coordination to the Department’s trust and benefit fund financial actions, monitoring the financial execution of the budget in relation to actual expenditures, and managing a comprehensive training program for accounting and financial support staff.

Information Technology Activities

The FY 2004 request includes $48.6 million, a decrease of $25.4 million from FY 2003,  for continuation of a coordinated and centralized information technology (IT) investment strategy for the DOL managed by the CIO.  The FY 2004 request provides full support for needed e-government, enterprise architecture, security, and infrastructure improvements.  As required by the Clinger Cohen Act of 1996, the Department established a CIO, accountable for IT management in the DOL, and implemented an IT Capital Investment Management process for selecting, controlling, and evaluating IT investments.  These funds are allocated by the Department’s CIO in accordance with the Department’s capital investment management process to assure a sound investment strategy for the entire Department, which OMB considers a “best practice.”  These information technology resources will ensure overall program effectiveness and communication among DOL programs, participants, and employees nationwide.  Funds will be used in FY 2004 to develop e-Government solutions in support of the President’s Management Agenda as well as addressing security and other Departmental IT infrastructure issues.

Management Initiatives

The FY 2004 President’s Budget proposes to continue the Management Initiatives activity initially put forward in FY 2003.  The total request for FY 2004 for this activity is $23.5 million, an increase of $16.5 million over FY 2003.  This activity is designed to address major management issues that face all DOL agencies.  In this budget, the Management Initiatives activity will continue to address Workforce Analysis and Restructuring as well as the need for program performance evaluations to improve the overall effectiveness of DOL programs as proposed in FY 2003.  In addition, funds will be used to increase physical and personnel security for the Department and to plan for continuing operations  in the event of an emergency.  Funding is also requested for studies on Departmental efforts in competitive sourcing under the President’s Management Agenda, space consolidation, and improving financial management.

Working Capital Fund

The Department’s agencies finance the Working Capital Fund (WCF) for centralized administrative services.  Mainly a revolving fund, the WCF operates at rates that return, in full, all expenses in operation, including reserves for accrued annual leave and depreciation of capitalized assets.  For FY 2004, the WCF’s regular operating level totals $153.0 million and 697 FTE to support administrative and management services for all DOL programs nationwide.  In addition, the Department requests a direct appropriation to the WCF of $20 million for resources necessary to begin replacement of its aging core accounting system.

VETERANS' EMPLOYMENT AND TRAINING SERVICE

Budget Authority/Trust Fund Transfers
(Dollars in Millions)

 

FY 2003

FY 2004

Change

State Grants (DVOP and LVER Programs)

$158.9

$162.4

$3.5

Administration

26.7

29.0

2.3

National Veterans Training Institute

-

2.0

2.0

Total, Budget Authority (Trust Funds)

185.6

193.4

7.8

Homeless Veterans' Reintegration Project

17.5

19.0

1.5

Veterans' Workforce Investment Program

7.3

7.6

0.3

Total, Budget Authority (All Sources)

210.4

220.0

9.6

       

Full Time Equivalents

250

250

0


The Veterans' Employment and Training Service (VETS) provides maximum employment and training opportunities for veterans and serves as the principal advisor to the Secretary on all policies and procedures affecting veterans. VETS also administers grants to States, public entities and non-profits, including faith-based organizations, to help veterans find jobs. The budget request includes $220 million and 250 FTE for FY 2004.

State Grants
The budget request for this activity is $162.4 million. This is an increase of $3.5 million over the FY 2003 request level. The increase requested will enable VETS to meet its performance goals and objectives and implement requirements of the Jobs for Veterans Act of 2002. The request includes funding for incentive awards and for ameliorating the impact on States of the changes in the funding formula that distributes funding among States. Funding for the Disabled Veterans' Outreach Program (DVOP) and the Local Veterans' Employment Representative (LVER) program will be based on State plans for services to veterans submitted by Governors in accordance with the Jobs for Veterans Act of 2002. The Disabled Veterans' Outreach Program provides intensive employment and employability development services to disabled veterans and to economically or educationally disadvantaged veterans through a system of program specialists. Many DVOP specialists are stationed at homeless veteran shelters, Department of Veteran's Affairs (VA) vocational rehabilitation or community based Vet Centers and other VA locations. The Local Veterans' Employment Representative (LVER) program staff conduct outreach to employers, conduct job search workshops, and facilitate employment, training, and placement services to veterans at One-Stop Career Centers. LVER staff also train service members about to separate from active duty through the Transition Assistance Program (TAP), provide labor exchange information to veterans, promote and monitor participation of veterans in federally-funded employment and training programs, and monitor the listing of jobs from, and referrals to, Federal contractors and subcontractors.

Administration
The Administration activity supports a Federal staff which protects veterans' employment and reemployment rights and administers State grants for the DVOP and LVER programs, Veterans Workforce Investment program and Homeless Veterans Reintegration Program grants. The agency staff conduct on-site technical assistance, coordinate with other Federal agencies, and collect and analyze information on employment and training services provided to veterans and service members leaving military service. Funds will maintain a training capacity for about 129,000 TAP participants and the capacity to process approximately 1,500 veteran employment and reemployment rights complaints. The FY 2004 funding for this activity is $29.0 million and 250 FTE. This is an increase of $2.3 million over its FY 2003 funding. The requested increased funding provides for inflationary increases, a new National Hire the Veteran campaign and the Committee to launch that effort, and costs of providing an electronic One-Stop-Career Center for veterans as required in the Jobs for Veterans Act of 2002.

The National Veterans' Training Institute
The National Veterans' Training Institute (NVTI) provides training to both Federal and State employees and managers involved in the delivery of services to veterans. An increase of $2 million is requested for NVTI. VETS will continue to develop core-competencies for veteran service providers through NVTI, and will develop new courses based on the Jobs for Veterans Act.

Homeless Veterans Program
In FY 2004, the funding request for this program is $19 million, an increase of $1.5 million from FY 2003. This increase will enable VETS to improve the Homeless Veterans' Reintegration Program (HVRP) through capacity building and increased retention efforts. This increase also enables VETS to support efforts on behalf of incarcerated veterans. This level of funding will help 9,000 homeless veterans find jobs.

Veterans' Workforce Investment Program
In FY 2004, the funding request for this program is $7.55 million, an increase of $250,000 from FY 2003. This will enable VETS to conduct a training and employment program for veterans under the Workforce Investment Act (Sec. 168) and pilot a health occupations initiative in several states to help separating service members enter health care occupations. The program will provide training opportunities for service connected disabled veterans, along with recently separated and other veterans who are faced with significant barriers to employment. This program will help 2,500 hard-to-serve veterans enter employment.

Distributing of Funding (0 00s)

Selected VETS Performance Goal and Indicators

  • Improve the employment outcomes for veterans who receive State Workforce Agency services and veterans programs.
  • 58% of veteran and 61% of disabled veteran job seekers will be employed in the first or second quarter following registration with the Public Labor Exchange.
  • 78% of disabled veterans receiving intensive training and rehabilitative services will enter employment. 54% of homeless veterans enrolled in homeless veterans reintegration programs will enter employment.

OFFICE OF INSPECTOR GENERAL
Budget Authority/Trust Fund Transfers (Dollars in Millions)

 

FY 2003

FY 2004

Change

Program Activity

$62.6

$67.1

$4.5

Total OIG Budget Authority

62.6

67.1

4.5

Full time Equivalents

453

473

20

The Office of Inspector General (OIG) budget request includes $67.1 million and 473 FTE for FY 2004, an increase of $4.5 million and 20 FTE.

Program Activities
The OIG budget program includes audit, program fraud, labor racketeering, special evaluations and inspections of program activities, and executive direction and management. The OIG performs audits of the Department's financial statements, programs, activities, and systems to determine whether information is reliable, controls are in place, resources are safeguarded, funds are expended in a manner consistent with laws and regulations and managed economically and efficiently, and desired program results are achieved. The OIG administers an investigative program to detect and deter fraud, waste, and abuse in Departmental programs and to identify and reduce labor racketeering and corruption in employee benefit plans, labor management relations, and internal union affairs. The OIG also conducts DOL program evaluations, special reviews and inspections; analyzes complaints involving DOL programs, operations, or functions; and provides strategic planning and Congressional liaison services. The OIG carries out executive direction and management activities that include: management, legal counsel, administrative support, information technology, procurement, personnel, and financial functions. The OIG also provides technical assistance to DOL program activities.

The OIG conducts audits of Departmental programs and combats labor racketerring in unions and the workplace

The FY 2004 request includes $2.5 million and 20 FTE to conduct a nationwide comprehensive initiative to combat labor racketeering relative to: pension plan corruption and organized crime or corruption affecting industries and union leadership.

Selected OIG Performance Goals and Indicators





  • Optimize performance and accountability of the Department of Labor employment and Training Programs.
  • Safeguard and improve worker and retiree benefit programs.
  • Optimize performance and accountability of worker protection and workplace safety programs.
  • Combat the influence of organized crime and labor racketeering in the workplace.