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

Total BudgetAuthority
(Dollars in Billions)

 

FY 2003*

FY 2004

Change

Discretionary Programs:

$11.6

$11.5

-$0.1

Mandatory Programs:

$59.7

$44.6

-$15.1

Total, Department of Labor

$71.3

$56.2

-$15.1

Full Time Equivalents (FTE)

17,274

17,503

+229

* A regular appropriation for the Department had not been enacted at the time the budget was prepared. The amounts included in this budget reflect the Administration's 2003 policy proposals.

Introduction

The Department of Labor (DOL) continues to heed the call of President George W. Bush that "Government should be results-oriented -- guided not by process but guided by performance." The Department's Fiscal Year (FY) 2004 budget was developed with just such a focus - and the outcome is the Department's first-ever integrated performance budget.

FY 2004 Budget

As noted in the above chart, the total request for the Department in FY 2004 is $56.2 billion in budget authority and 17,503 full-time equivalents (FTE). The request for the Department's discretionary programs is $11.5 billion.

As highlighted in this Overview and in the agency sections to follow, the Department's FY 2004 budget was developed around four critical themes designed to make a difference in the lives of America's working families:

Get Americans Back to Work; Protect Employees' Benefits; Ensure Workers' Rights and Safety; and Modernize DOL for the 21st Century.

Get Americans Back to Work

In 2004, DOL and the Administration will use the opportunity presented by the expiration of the Workforce Investment Act to make significant improvements in Federal job training and employment programs. These reforms will eliminate duplication through program consolidation, strengthen resource allocation, improve accountability, enhance the role of employers in the national workforce system, and increase state flexibility. Overall, the FY 2004 discretionary request for the Department's Employment and Training Administration is $9.2 billion in discretionary funds and 1,360 FTE.

This reform will be further accomplished by the establishment of Re-employment Accounts to encourage and help at-risk job seekers to find work. The President's Economic Growth Package, released January 7, 2003, provides $3.6 billion for this new tool, which states will have considerable flexibility to design. The accounts will provide up to $3,000 to job seekers to allow them to purchase the training, re-employment, or supportive services needed to get back to work.

Protect Employees' Benefits

The Department's Pension and Welfare Benefits Administration (PWBA) continues to lead the way in benefit security protection. DOL's FY 2004 request for PWBA is $128.6 million and 930 FTE, which includes $8.6 million and 69 FTE for Enhanced Retirement Security. Further resources will be devoted to ensuring access to affordable health care benefits.

The Department will change PWBA's name to the Employee Benefits Security Administration, or EBSA, to better reflect mission and direction.

In FY 2004, the Department's Office of Inspector General will continue its role in bolstering DOL's efforts related to this theme through initiatives aimed at achieving the OIG strategic goal of safeguarding and improving worker and retiree benefit programs.

Ensure Workers' Rights and Safety

While occupational injury and illness rates have reached historic lows, more can and must be done. In FY 2004, DOL will continue to balance enforcement and compliance assistance activities through the ongoing efforts of its Occupational Safety and Health Administration (OSHA); Mine Safety and Health Administration (MSHA); the Employment Standards Administration's Wage-Hour Division and Office of Labor Management Standards (OLMS); and the Office of Inspector General (OIG). Initiatives include:

  • Seeking increased Civil Monetary Penalties for MSHA, OLMS, and Wage and Hour to strengthen existing enforcement gaps;
  • $5.2 million and 3 FTE for OSHA's Expanded Outreach and Assistance, program oversight, multi-lingual (non-English speaking) outreach, training and assistance, and Voluntary Partnership Programs. Overall, the FY 2004 request for OSHA is $450.0 million and 2,236 FTE.
  • MSHA's planned strengthening of enforcement; mine rescue and recovery operations; and, expanding education and compliance assistance focused on small mining operations. The overall FY 2004 request for MSHA is $266.8 million and 2,334 FTE; and
  • The OIG's Labor Racketeering Initiative, to which $2.5 million and 20 FTE will be applied in FY 2004 to address union corruption.

Modernize DOL for the 21st Century

This theme will be accomplished by several initiatives related to the Department's ongoing implementation of the President's Management Agenda. These include $20 million for the first major investment in a new and improved central Departmental financial data system.

$48.6 million is also requested in FY 2004 for the Department's successful Information Technology Initiative, which will, in part, consolidate all DOL agency requests in support of the President's Management Agenda component Expanded E-Government.

$23.5 million is requested for the Department's Management Initiative to centrally manage DOL's efforts on implementing the other four government-wide initiatives on the President's Management Agenda.

Further, in FY 2004, DOL intends to resubmit two ESA legislative proposals: Black Lung refinancing and a series of revisions to the Federal Employees Compensation Act (FECA). The Administration will also re-propose the FECA surcharge authorizing DOL to bill Federal agencies for their full FECA costs and strengthening the incentive to improve workplace safety. The Department will continue to advocate for enactment of legislation that will reform the administration of the Unemployment Insurance program, including a 75% cut in employer payroll taxes, giving states control over program administration, and over $5 billion in special "Reed Act" distributions to states during the transition period. DOL will also support legislation to allow employers to offer employees the option of taking paid time off in lieu of overtime pay.

Program Assessment Rating Tool

Improving programs by focusing on results is an integral component of the President's budget and performance integration initiative. As such, the Administration rated effectiveness with its Program Assessment Rating Tool (PART) for approximately 20 percent of Federal programs. As part of this process, the following nine DOL programs were reviewed in calendar year 2002: Bureau of Labor Statistics; OSHA; EBSA (PWBA); Office of Federal Contract Compliance Programs; Federal Employees Compensation Act; Community Service Employment for Older Americans; Dislocated Worker Assistance; Trade Adjustment Assistance; and Youth Activities. Each program was rated on Purpose, Planning, Management, and Results/ Accountability.

Highlights and results of the reviews, along with discussion of reforms to address certain weaknesses identified using the PART, can be found in the agency-specific sections of the Budget Justification.

The President's Management Agenda

The President's Management Agenda is an aggressive strategy for improving the management of the Federal government with a focus on five government-wide areas: Strategic Management of Human Capital; Competitive Sourcing; Improved Financial Performance; Expanded E-Government; and Budget and Performance Integration. DOL is also one of just five Cabinet agencies with Agenda responsibilities related to Faith-based and Community-based initiatives.

The Administration issued its FY 2001 baseline scores measuring the implementation of the President's Management Agenda with the release of the President's FY 2003 budget. For the five government-wide Agenda items, DOL received Yellow baseline ratings on Strategic Management of Human Capital and E-Government - and Red baseline scores for Competitive Sourcing, Financial Management, and Budget and Performance Integration. Even with just two Yellow scores, DOL led all Cabinet agencies.

On a quarterly basis, the Administration has continued to rate the government's progress in implementing the President's Management Agenda - and DOL continues to lead the way. As of the first quarter FY 2003 scorecard of December 31, 2002, DOL received a Yellow baseline rating for Human Capital with a Green progress score. For Competitive Sourcing, DOL received a Red baseline score with a Yellow progress rating. For Financial Management, DOL received a Yellow status score with a Green rating for progress - the same scores for E-Government, Budget and Performance Integration, and Faith Based Initiatives.

As OMB Director Mitchell E. Daniels, Jr., indicated at OMB's mid-session review, "Labor has demonstrated a sustained commitment to implementation of the management agenda and is making good progress. A key component of the department's success is its Management Review Board, which monitors progress by regularly reviewing department-wide reform implementation."

Summary

Performance goals and indicators for each program in support of the Department's FY 2004 integrated budget are contained at the end of each section of this Overview. A more detailed presentation of the Department's efforts to meet the needs of the 21st Century Workforce can be found in the Department's FY 2004 Annual Performance Plan at www.dol.gov.

In FY 2004, DOL is poised to continue making critical differences that directly affect the lives of America's working families. There can be no more important mission.