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| May 14, 2008 DOL Home > About DOL > FY 2007 Budget > Budget Overview |
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FY 2007 Budget Overview
Introduction The President's 2007 request for the Department of Labor is $10.9 billion in discretionary budget authority and 16,822 full-time equivalent (FTE) employees. The FY 2007 Budget will allow the Department to continue strong labor law enforcement and will give workers more control over their own efforts to obtain skills training and reemployment through innovative and flexible Career Advancement Accounts. FY 2007 Priorities The 2007 Budget for the Department of Labor is centered on four key priorities:
2005 Highlights Through achieving results and doing more with less the Department continues to make a positive difference in the day-to-day lives of America's working families. Although DOL's discretionary spending has decreased since 2001, the Department continues to attain positive results and meet its performance targets. For example, the Employee Benefits Security Administration (EBSA) successfully closed an increasing percentage of its criminal cases and 76% of its civil cases, and obtained monetary results of over $1.7 billion. In FY 2005, the Federal Employees' Compensation Act (FECA) program reduced its program costs by reviewing FECA cases to ensure continued eligibility and assess beneficiaries' return-to-work potential. This effort saved $21 million in FY 2005 alone. The Department has played a key role in the Gulf Coast recovery by awarding up to $206 million to provide 63,000 temporary recovery jobs and over $70 million in grants to assist states to reach hard-to-serve individuals. DOL was the first agency to achieve an all-green scorecard on the five government-wide President's Management Agenda components. DOL also received the 2005 President's Quality Award for Performance in Integrating Strategic Management Systems — which is the highest award given to executive branch agencies for management excellence and for specific management initiatives as outlined in the President's Management Agenda. The Department awarded 30 grants to faith-based and community-based organizations in support of the Prisoner Reentry Initiative (PRI). PRI teams the Department with the Department of Justice, the Department of Housing and Urban Development, and community organizations to help recently released prisoners successfully transition back to society and long-term employment. In 2005, the Department continued implementing the President's High Growth Job Training Initiative, which is preparing workers for the jobs that are in demand in the 21st Century. Also in 2005, the Department implemented the Community-Based Job Training Grant program to bring community and technical colleges, employers, and job-seekers together to prepare for the changing economy. Employment and Training Administration
1TES includes advance appropriations of $2.438 billion in FY 2006 appropriated in FY 2005 for obligation in FY 2006, and $2.463 billion in FY 2007 appropriated in FY 2006 for obligation in FY 2007. In addition, the FY 2006 level is made comparable to FY 2007 for the Career Advancement Accounts. The Employment and Training Administration's (ETA) mission is to contribute to the more efficient and effective functioning of the U.S. labor market by providing high quality job training; employment assistance; labor market information; and income maintenance services. The 2007 Budget reflects the President's goal of ensuring that workers live more productive and prosperous lives and helping businesses to be more competitive in the global economy. This Budget provides $47.2 billion for the Department of Labor's (DOL) Employment and Training Administration, which is $1.2 billion above 2006 largely because of the expectation of increased costs of unemployment benefits due to growth of the labor force and average weekly benefit payments. Meeting the Workforce Challenges of the 21st Century As our nation's economy, industries, and businesses transform to meet the challenges of the 21st century, it is also necessary that our government systems and structures evolve to support our economic growth and job creation. This includes the workforce investment system, which must change its design and service delivery methods to reflect the new economy and meet the changing needs of workers and businesses. Over the past few years ETA has taken steps to begin this transformation through the creation of a demand-driven system that helps job seekers achieve self-sufficiency and promotes business prosperity. ETA has implemented the President's High Growth Job Training Initiative (HGJTI) to prepare workers to take advantage of new and increasing job opportunities in high growth industries and sectors in the American economy. Building on the HGJTI, Community-Based Job Training Grants aim to strengthen the role of community colleges in workforce investment (ETA's FY 2007 Budget request includes funding of $150 million for these grants). For FY 2007, the President proposes Career Advancement Accounts (CAA) that continue this transformation, and take it a step further. CAAs are self-directed accounts that would enable current and future workers to gain the skills needed to successfully enter, navigate and advance in the 21st century job market. Individuals would use their accounts to pay for expenses directly related to education and training. Funds previously appropriated for the WIA Adult, WIA Dislocated Worker, and WIA Youth Programs and the Employment Service would be allocated to states as a single funding stream for CAAs. These funds would also be used by states to provide basic employment services to job seekers and employers. This Budget also addresses employers' urgent and specialized needs for employees when domestic workers are not available by improving the Foreign Labor Certification programs. The request will reduce the existing backlog of Permanent Program petitions, and prevent future backlogs, while also improving overall program integrity by emphasizing fraud detection/prevention and by providing employer compliance assistance. Among the reforms proposed for FY 2007 is a financing initiative that would authorize cost-based user fees for the Permanent Labor Certification Program. A fee-based program would be a major step toward assuring that the funds available match the workload on hand. Additionally, this Budget proposes to continue the Prisoner Re-entry Initiative with a $20 million investment in the third year of this four-year initiative that is administered in collaboration with the Departments of Justice and Housing and Urban Development (HUD). The initiative helps previously incarcerated individuals find jobs, transitional housing and mentoring when they leave prison and return to their communities. Including the funding in Justice and HUD, the 2007 Budget provides a total of $60 million for the Prisoner Re-entry Initiative. Strengthening the Integrity of the Unemployment Insurance System Building on reforms proposed by the Administration in the past to fortify the Unemployment Insurance (UI) system and reduce erroneous UI payments, the budget proposes a $30 million increase in beneficiary eligibility reviews in One-Stop Career Centers, which is projected to save up to $151 million; a $10 million increase to prevent and detect fraudulent unemployment benefit claims using stolen personal information (identity theft) that would result in trust fund savings of as much as $77 million; and legislation that will assist states in preventing, detecting, establishing, and recovering UI overpayments, in strengthening employer compliance/tax collection activities, and in demonstrating new ways to speed reemployment of UI beneficiaries that would result in savings of as much as $5.4 billion over ten years. Employment and Training Programs
1FY 2006 Enacted for Dislocated Workers includes an additional $125 million via the Katrina/Rita Supplemental Appropriation. The FY 2007 Budget request for Employment and Training Programs is $5.562 billion. Career Advancement Accounts A total of $3.413 billion is requested for the proposed Career Advancement Accounts (CAA). CAAs are self-directed accounts that workers entering the workforce or transitioning between jobs and careers, or incumbent workers in need of new skills to remain employed, can use to purchase education and training. Funds previously appropriated for the WIA Adult, WIA Dislocated Worker, and WIA Youth Programs and the Employment Service would be allocated to states as a single funding stream for CAAs. This proposal would rein in overhead costs, so that more resources could go directly to worker training. The CAA funds will provide training opportunities to some 800,000 workers, more than tripling the number of workers trained under the current workforce investment system. A portion of these funds would also be used by states to provide basic employment services to job seekers and employers. Included in the proposed consolidated grant program is $39.1 million for Workforce Information, (local labor market information formerly funded in the One-Stop request in SUIESO) and $17.7 million for administration of the Work Opportunity and Welfare-to-Work Tax Credits that in prior years was included in the Employment Service National Activities request in SUIESO. The new program includes formula grants and a National Reserve, and will give States and the Secretary of Labor greater ability to target resources where needed, facilitate coordination, and eliminate duplication in the provision of services to adults, dislocated workers, and youth. The budget authority requested, is expected to support approximately 13,700,000 participants. Community-Based Job Training Grants DOL requests $150 million for the third year of funding for the President's Community College Initiative to provide Community-Based Job Training Grants. Because of their close connection to local labor markets, community colleges are well positioned to prepare workers for high-demand occupations such as health care and high-tech manufacturing. While community colleges are the target for these grants, grant recipients will be required to have strategic partnerships with the public workforce investment system and business and industry. Job Corps A total of $1.502 billion is requested to improve the educational achievement of Job Corps students, and increase participation of Job Corps graduates in employment and education. Job Corps will provide intensive skill training, academic education, and support to an estimated 59,540 participants at 122 centers in FY 2007. For FY 2007, 87 percent of Job Corps graduates will enter employment or enroll in post-secondary education, the military, or advanced training/occupational skills training in the first quarter after exit from the program; 65 percent of students will attain a GED, high school diploma, or certificate by the end of the third quarter after exit; 49 percent of students will achieve literacy or numeracy gains of one Adult Basic Education level, approximately equivalent to two grade levels; and the average cost per participant will be no higher than $25,220. Other Employment and Training The FY 2007 Budget requests $497.3 million for Other Employment and Training Programs, $111.4 million below FY 2006. The net change is largely due to the proposals to eliminate Responsible Reintegration for Young Offenders, the Migrant and Seasonal Farmworker program, and Work Incentive Grants; reductions in WIA National Programs; and legislative proposals to reform Community Service Employment for Older Americans and transfer the Youthbuild Program from the Department of Housing and Urban Development to the Department of Labor. The FY 2007 Budget includes $24.8 million for workforce information and electronic tools that will be important resources in helping individuals use their Career Advancement Accounts. The Budget includes $19.6 million for DOL's portion of the Prisoner Reentry Initiative, administered jointly with the Departments of Justice and Housing and Urban Development. With a goal of reducing recidivism among ex-offenders, including youth and adults, the Prisoner Re-entry Initiative will call upon faith-based and community organizations to help individuals exiting prison in making a successful transition to community life and long-term employment through mentoring, job training, and transitional housing assistance. In FY 2007, $12.9 million is requested for Employment Service National Activities Foreign Labor Certification activity. In FY 2007, it is expected that the Foreign Labor program will process 100 percent of H-1B applications within seven days of the filing date in cases where no prevailing wage issues are identified; process 95 percent of accepted H-2A applications within 15 business days (such that the determination date is no later than 30 days from the date of need) where there are no pending State actions; process 90 percent of H-2B applications within 60 days of receipt; and implement new procedures necessary to eliminate the remaining backlogged applications. In FY 2007, $388.3 million is requested for the Community Service Employment for Older Americans, $44 million less than provided in FY 2006. Proposed changes to the program in reauthorization will achieve more efficient administration and better labor market outcomes, allowing the program to continue supporting 92,300 participants. A cost per participant target of $4,115 has also been established. Finally, the Budget proposes to transfer the Youthbuild program ($50.0 million) from the Department of Housing and Urban Development (HUD) to the Department of Labor, as recommended by the White House Task Force on Disadvantaged Youth. Youthbuild provides unemployed young people age 16-24 with work experience combined with community service while building affordable housing for homeless and low-income families in their own neighborhood. ETA anticipates serving 3,105 youth with Youthbuild grants in FY 2007, based on prior years' participant data from HUD. Employment and Training Participant Data
1For new initiatives, FY 2006 and FY 2007 will be baseline data gathering years. Selected ETA Performance Goals and Indicators
1Non-add, see Black Lung Disability Trust Fund (BLDTF) section. Includes a $2.734 billion Black Lung Refinancing proposal in FY 2007. The FY 2007 request for Income Maintenance includes $41.4 billion in spending, largely from the Unemployment Trust Fund. Of the FY 2007 Income Maintenance total, $2.7 billion is the discretionary amount requested for State administration of the Unemployment Insurance (UI) Program. In addition, $938.6 million in general funds is being requested for the Federal Unemployment Benefits and Allowances (FUBA) account. The FY 2007 request for Advances to the Unemployment Trust Fund (UTF) and Other Funds (Advances) account is $3.2 billion, which is for the Black Lung Disability Trust Fund.
The balance of Income Maintenance ($37.8 billion) includes State unemployment benefits payments to claimants, and benefits paid to ex-service members and former Federal workers. The FY 2007 Budget includes three new initiatives to strengthen the UI program: (1) $10 million for an identity theft prevention initiative, which will prevent and detect fraudulent unemployment benefit claims filed using stolen personal information; (2) $30 million for in-person interviews with UI beneficiaries in One-Stop Career Centers to aid work search efforts and review compliance with eligibility requirements; and (3) legislative proposals that will assist in reducing overpayments, increasing overpayment recoveries, strengthening employer compliance/tax collection activities, and promoting early reemployment of UI beneficiaries. 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 2007 budget includes a request for $2.7 billion, which is $100.9 million more than the FY 2006 enacted level. This request funds projected workloads and includes a program increase of $30 million to increase the number of re-employment and eligibility reviews conducted at One-Stop Career Centers and a $10 million program increase to prevent and detect fraudulent claims due to identity theft. The FY 2007 funding level requested for the UI program will provide for approximately 33,448 State staff years. State staff will handle 7.4 million employer tax accounts, 19.8 million initial unemployment claims, a total of 151.6 million weeks claimed. In addition, to finance any workload increase over an Average Weekly Insured Unemployment (AWIU) rate of 2.963 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 UI request also includes $10.5 million for National activities, which are interstate or multi-state in nature. Federal Unemployment Benefits and Allowances (FUBA) This general funds appropriation is for the Trade Adjustment Assistance program. The $938.6 million request for FY 2007 covers payments of weekly trade readjustment allowances, training, wage insurance, job search and relocation costs of workers adversely affected by increased imports or shifts in production to other countries. 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 integration of the TAA program into the workforce investment system. Advances to the Unemployment Trust Fund and Other Funds This appropriation provides general fund advances to several trust and general fund accounts. In FY 2007 the requested amount includes a one-time $2.7 billion prepayment premium associated with the legislative proposal to refinance the Black Lung Disability Trust Fund debt. 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 2007 will be 2.2 percent. This translates to an average of approximately 2.6 million Selected ETA Performance Goal and Indicators for
1FY 2006 includes 4 reimbursable FTE. ETA's Program Administration account provides for Federal administration of its employment and training programs. These programs include those authorized by the Workforce Investment Act of 1998 (WIA) for youth (including Job Corps), adults, dislocated workers, and special targeted populations; Trade Adjustment Assistance authorized by the Trade Act of 1974, as amended; Employment Services authorized by the Wagner-Peyser Act; Unemployment Insurance authorized by the Social Security Act; and Apprenticeship Programs authorized by the National Apprenticeship Act.
The FY 2007 Budget provides 1,158 full-time equivalent (FTE) staff, 4 reimbursable staff, and $189.3 million for Program Administration. The Budget proposes legislation to establish a new, cost-based fee for employer applications under the Permanent Foreign Labor Certification program. If the fee is enacted, the discretionary funds requested will be reduced by $23 million. The FY 2007 Budget reflects the legislative proposal to transfer responsibility for Youthbuild from the Department of Housing and Urban Development. If the Youthbuild transfer is enacted, administrative resources (estimated at $750 thousand) would be transferred along with program funds. 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 low-income and dislocated workers and those with significant barriers to employment including migrant and seasonal farmworkers, older workers, individuals with disabilities, homeless individuals, and individuals with limited English proficiency. This activity also provides staff for 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 federally funded youth programs, including Job Corps. Workforce Security Under this activity, the staff provides leadership and policy direction for the administration of Unemployment Insurance programs in each State, National Electronic Tools, Work Incentive Grants, and foreign labor certification activities. 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 investment systems to the training needs of employers and the interest of labor organizations in training programs. ETA proposes to examine new approaches to apprenticeship training that focus on assisting individuals in re-gaining ownership of their career skills development, and identifying barriers in the current state/Federal apprenticeship system that impede career advancement. Executive Direction The Executive Direction staff provides leadership and policy direction for ETA training and employment service programs and for related program operations support. Support activities include research, evaluations, demonstrations, and performance management. Employee Benefits Security Administration
The Employee Benefits Security Administration (EBSA) 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 promotes a secure retirement and greater access to health benefits for the nation's workforce through a combination of legislative changes, aggressive enforcement and compliance assistance. In FY 2007, the total request for this program is $143.5 million and 875 FTE and provides additional resources for the ERISA Filing and Acceptance System (EFAST). 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 FY 2007 estimate for this activity includes a program increase of $5 million to develop a new EFAST system that will improve processing performance levels to better protect employee pension and health benefits. In FY 2007, the requested budget for this activity is $120.3 million and 753 FTE. All of EBSA was evaluated with the Program Assessment Rating Tool (PART). As a result of PART findings, EBSA has adopted long-term and ambitious enforcement goals that ensured alignment with the President's Management Agenda. 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 2007, the budget request for this activity totals $18.0 million and 96 FTE. Executive Leadership, Program Oversight and Administration 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 2007, the budget request for this activity totals $5.2 million and 26 FTE. Selected EBSA Performance Goals and Indicators
Pension Benefit Guaranty Corporation
The Pension Benefit Guaranty Corporation (PBGC) is a wholly-owned Government Corporation created to insure benefits promised under private defined pension plans in the event the sponsor can no longer maintain the plan. The Corporation is guided by a board of directors chaired by the Secretary of Labor. At present the PBGC protects the pension benefits of about approximately 44 million workers and retirees in traditional pension plans. Single Employer Benefit Payments Monthly pension payments are made to plan participants and other beneficiaries of plans trusteed by PBGC. The FY 2007 request totals $5.3 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 2007 request totals $93 million for this activity. Pension Insurance Pension Insurance includes pension plan premium collections, premium investments, monitoring, negotiating, and litigating protections for participants in endangered plans and pension plan promotion activities. The FY 2007 request totals $79.0 million and 220 FTE for this activity. This includes $7.0 million for the development of the EFAST2 system, a system that will produce more accurate and timely data to help the Corporation fulfill its mission to safeguard the pension insurance system. 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 2007 request totals $193.0 million and 340 FTE for this activity. This includes a $2.9 million increase for enhancements to the Participant Services System to boost its operational capabilities in support of plan termination and benefit administration activities. Operational Support Includes facilities, information technology infrastructure, and other shared program support (budget, procurement, accounting, etc.) for both PBGC's insurance and plan termination activities. The FY 2007 request totals $126.0 million and 310 FTE for this activity. This includes a $8.7 million increase for enhancements to critical information operating systems. Selected PBGC Performance Goals and Indicators
Employment Standards Administration
*This includes an estimate of $31 million in H-1B L Fraud fee revenue for ESA in FY 2006 and FY 2007,
authorized by the H-1B Visa Reform Act of 2004, P.L. 108-447 (December 8, 2004) In total, funds for the Employment Standards Administration (ESA) in FY 2007 will decrease by $629.9 million or about 16.1 percent compared with FY 2006 due mostly to an estimated decrease in EEOICPA benefits. Funding will finance initiatives to improve Wage and Hour enforcement and compliance, and enhance enforcement and outreach assistance under the Labor-Management Reporting and Disclosure Act. The budget re-proposes legislative changes to improve the Federal Employees' Compensation Act (FECA), including changes that allow DOL to enhance incentives for return to work; improve program fairness; and speed claims processing. These proposals would result in 10-year cost savings to the Government of more than $592 million. ESA's request also includes a legislative proposal to restructure the Black Lung Disability Trust Fund debt (currently over $9 billion) to ensure the Trust Fund's long-term solvency and a re-proposal of an increase in civil monetary penalties for employers who willfully violate child labor laws. In support of the Department's performance goal of ensuring a competitive workforce by promoting family-friendly job flexibility and minimizing unnecessary regulatory burdens while effectively protecting workers, the Wage and Hour Division (WHD) will continue to review and update its significant regulations to reflect workplace changes over the last 20 years and in anticipation of future workplace evolutions.
*This includes an estimate of $31 million in H-1B L Fraud fee revenue for ESA in FY 2006 and FY 2007, authorized by the H-1B Visa Reform Act of 2004, P.L. 108-447 (December 8, 2004) 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 2007 is $720.1 million and 4,219 FTE. Of this amount, $502.0 million and 3,611 FTE is in the Salaries and Expenses account. In addition $51.0 million and 127 FTE is for the Fair Share portion of the Special Benefits account, 275 FTE and $102.3 million is for the administrative expenses of the Energy Employees' Occupational Illness Compensation Program Act (EEOICPA), Part B; and $59.5 million and 189 FTE is for the administrative expenses of EEOICPA, Part E; and $5.3 million and 17 FTE is for Part B of the Black Lung Benefits program. In total, this is an increase of $30.1 million and an increase of 24 FTE over FY 2006. ESA's budget request includes legislative proposals to promote benefit equity and enhance incentives for return to work. Specifically, the Budget proposes to amend FECA to move the waiting period before the continuation-of-pay period, and conform the benefits of future retirement-age beneficiaries 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 the FECA program.
Wage and Hour Standards The FY 2007 budget request for the Wage and Hour Division is $208.6 million and 1,339 FTE. The Wage and Hour Division is responsible for the administration and enforcement of a wide range of laws which collectively cover virtually all private and state and local government employment. Wage and Hour Division activities include obtaining compliance with the minimum wage, overtime, child labor, and other employment standards under the Fair Labor Standards Act, Migrant and Seasonal Agricultural Worker Protection Act, certain provisions of the Immigration and Nationality Act, Employee Polygraph Protection Act, the Immigration Nursing Relief Act, the wage garnishment provisions of the Consumer Credit Protection Act, and the Family and Medical Leave Act. Prevailing wages are determined and employment standards enforced under various government contract wage standards. Wage and Hour will continue to use its multi-pronged approach of strong enforcement, compliance assistance partnerships, to further its goals to promote high quality workplaces, a secure workforce and increase customer satisfaction. The budget increase of $6.0 million over FY 2006 is directed to finance new investigators. It will also support Wage and Hour's Youth Rules initiative to enable the expansion of its low-wage industry enforcement to protect vulnerable workers; and help Wage and Hour increase technical assistance and education to encourage voluntary compliance with the laws it administers. Contractor EEO Enforcement The FY 2007 budget request for the Office of Federal Contract Compliance Programs (OFCCP) is $83.7 million and 670 FTE. OFCCP is responsible for ensuring equal employment opportunity and non-discrimination in employment based on race, sex, religion, color, national origin, disability or veteran status for businesses contracting with the Federal government. These requirements are contained in Executive Order 11246, as amended; Section 503 of the Rehabilitation Act of 1973, as amended; 38 USC 4212; and Section 402 of the Vietnam Era Veterans' Readjustment Assistance Act of 1974, as amended. OFCCP also shares authority with the Equal Employment Opportunity Commission (EEOC) in the enforcement of Title I of the Americans with Disabilities Act of 1990 Federal Programs for Workers' Compensation The FY 2007 budget request for the Office of Workers' Compensation Programs (OWCP) is $139.4 million and 1,103 FTE for the Federal Employees' Compensation Act (FECA), Longshore and Harbor Workers' Compensation, and Black Lung Benefits programs. Other funding for OWCP includes $51.0 million and 127 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. The 2007 request for Fair Share includes funding for the centralized medical bill processing and central mail processing services. OWCP also requests $102.3 million and 275 FTE to administer the Energy Employees' Occupational Illness Compensation Program Act (EEOICPA) Part B program and $59.5 million and 189 FTE for the Part E program, which was established in FY 2005. OWCP administers disability compensation programs, which mitigate hardship imposed by 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 medical benefits 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 provides 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 chronic silicosis as a result of their work in nuclear weapons production or testing. In October 2004, Congress amended EEOICPA to create Part E and mandated its implementation by May 2005. Part E expanded the categories of workers eligible to receive federal compensation and medical benefits to Department of Energy contractors and subcontractors who sustained health impairment due to exposure to toxic substances. The amendment also authorizes payment from the EEOICP Fund for benefits awarded by the Department of Justice under section 5 of the Radiation Exposure Compensation Act. The 2007 budget includes two legislative proposals affecting OWCP programs. The first is a proposal to reform FECA to update its benefit structure, address retirement equity issues, and strengthen return-to-work incentives. This proposal is expected to generate Government-wide savings of more than $592 million over ten years. The second is a proposal to restructure the debt of the Black Lung Disability Trust Fund (BLDTF), a debt that is now more than $9 billion. This proposal would (1) restructure the outstanding BLDTF debt, (2) extend at current rates BLDTF excise taxes, which are set to decline in January 2014, and (3) provide a net payment of $2.7 billion appropriation to compensate the General Fund for forgone interest. Office of Labor-Management Standards The FY 2007 budget request for the Office of Labor-Management Standards (OLMS) is $52.4 million and 406 FTE. OLMS enforces provisions of Labor-Management Reporting and Disclosure Act 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 increase of $4.5 million over FY 2006 supports an effective program of Union audits and union financial integrity protections and implementation of a program of union advisory services as part of OLMS' compliance assistance activities. Through its Division of Statutory Program, OLMS also certifies protective arrangements for transit employees when Federal transit grant funds are used to acquire, improve, or operate a transit system. Program Direction and Support The FY 2007 budget request for Program Direction and Support is $17.9 million and 93 FTE which includes an increase of $400 thousand to update it's servers. 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. Selected ESA Performance Goals and Indicators
ESA Income
Maintenance Programs
The budget includes a total of $2,561.3 billion for income maintenance programs in ESA in FY 2007, a decrease of $659.3 million from FY 2006. The Budget re-proposes FECA legislative reforms, to improve program fairness, update benefits, and ensure return to work incentives; and a legislative proposal to restore the solvency of the Black Lung Disability Trust Fund program by restructuring the Fund's large and growing debt. Special Benefits The request of $230.0 million for Special Benefits in FY 2007 includes $227.0 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 $51.0 million from Fair Share funding to finance 125 FTE and automated systems for administration of the FECA program, as described in the ESA Staffing Section. Federal Employees' Compensation Act Benefits 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. The Administration is re-proposing a number of legislative changes to improve FECA. These changes are expected to generate a 10-year Government-wide savings of $529 million. 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 2007 includes $1.035 billion for EEOICPA. Of that amount, $873.9 million will provide compensation and medical benefits to eligible workers or their survivors. The request for program administration is $161.8 million and 494 FTE, including funding for Part B, the new Part E enacted in October 2004, and the Department of Health and Human Services. This amount is reflected in the ESA Staffing section. Black Lung Disability Trust Fund The budget request provides a total of $1.071 billion from the Black Lung Disability Trust Fund (BLDTF) in FY 2007 for benefits, interest payments and administrative expenses. This total includes $294.0 million for benefits, $59.3 million for administrative expenses, and $717.0 million for interest payments. These figures do not include the estimated costs of the refinancing proposal (described below). The Black Lung Disability Trust Fund (BLDTF) is facing a growing debt, which is now more than $9 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 has proposed legislation that will: (1) authorize a restructuring of the BLDTF debt, (2) extend, at current rates, BLDTF excise taxes set to decline in January 2014, and (3) provide a net payment of $2.7 billion appropriation to compensate the General Fund of the Treasury for forgone interest payments. Black Lung Benefits Act – Parts B and C The Department of Labor is responsible for all claims filed under the Black Lung Benefits Act. Benefits are paid to miners and former miners who are totally disabled by pneumoconiosis (black lung disease) and to their eligible survivors, with supplementary allowances for dependents. Former miners are also entitled to receive medical treatment for their employment related respiratory condition. Two accounts fund this program: (1) the Black Lung Disability Trust Fund, and (2) Special Benefits for Disabled Coal Miners. Administrative Expenses This provides for all administrative costs incurred by the Department of Labor in the operation of the Black Lung program, including, transfers for the Solicitors, Office of Admin. Law Judges, Benefits Review Board, Inspector General 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 2007, the amount of interest on advances is estimated to be $717.0 million. Other Income Maintenance Programs The budget requests $6.3 million for the Panama Canal Commission Fund and $152.0 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
1Includes 8 reimbursable FTE in both FY 2006 and FY 2007. The mission of the Occupational Safety and Health Administration (OSHA) is to protect American workers by preventing injuries, illnesses and fatalities. The agency promulgates and enforces occupational safety and health standards and provides compliance assistance 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 2007 OSHA budget request is $483.7 million and 2,165 FTE, an increase of $11.2 million over FY 2006. 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 guidance. In FY 2007, 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 agency will assess the impact of selected existing standards on improved employee safety and health, as well as employer costs, especially in small businesses. The FY 2007 request for this activity is $16.9 million and 83 FTE, an increase of $0.4 million over FY 2006. 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 2007 request for this activity is $179.9 million and 1,542 FTE, an increase of $7.4 million over FY 2006. 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 total FY 2007 request for this activity is $91.1 million, the same amount as in FY 2006. 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, safety engineering, environmental impact statements, technical and scientific databases, computer-based outreach products, and emergency preparedness. The FY 2007 request for this activity is $22.4 million and 105 FTE, an increase of $1.0 million over FY 2006. Federal Compliance Assistance This activity supports a variety of cooperative 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 2007 request for this activity is $76.6 million and 348 FTE, an increase of $4.0 million over FY 2006. An increase of $2.6 million is included in the FY 2007 Budget to expand Hispanic worker outreach. 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 2007 request for this activity is $53.4 million, the same amount as in FY 2006. Training Grants This activity contains safety and health training grants. In FY 2007, this training grant program will be eliminated, a decrease of $10.1 million from FY 2006. Since OSHA provides direct outreach activities and training on important safety and health issues in a variety of ways other than through training grants, this reduction will not compromise the agency's ability to deliver compliance assistance, outreach, and training for employers and workers. 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. OSHA maintains overall responsibility for the national injury and illness record keeping system. An increase of $7.5 million is included in the FY 2007 Budget for development of a new Occupational Safety and Health Information System (OIS). 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