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Secretary of Labor Thomas E. Perez
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Department of Labor Budget Overview FY 2003 - Agency Information

EMPLOYMENT AND TRAINING ADMINISTRATION

OVERVIEW


Budget Authority

(Dollars in Millions)

FY 2002 FY 2003 Change
   Employment and Training:
Training and Employment Services 1/ 2/ 3/ $5,629.7 $4,980.7 $-649.0
Economic Security Proposal 4/ 4,000.0 0.0 -4,000.0
Comm. Servc Emplymt for Older Amer. 445.1 440.2 -4.9
Employment Service/One Stop 2/ 987.4 1,096.4 109.0
Gifts and Bequests 0.3 0.3 0.0
Subtotal, Employment & Training 7,062.5 6,517.6 -544.9
   Income Maintenance:
Unemployment Insurance Program 2,792.1 2,727.7 -64.4
Federal Unemployment Benefits (FUBA) 415.7 461.7 46.0
Advances to UTF and Other Funds (BLDTF) 5/ 464.0 463.0 -1.0
Advances to UTF and Other Funds (FUBA) 31.0 0.0 -31.0
Payments to the UTF 6/ 5.7 5.7 0.0
Workers Compensation 175.0 0.0 -175.0
Unemployment Trust Fund Benefit 44,594.0 40,795.0 -3,799.0
Subtotal, Income Maintenance 48,007.8 43,984.4 -4,023.4
   Program Administration 169.3 179.8 10.5


   Total ETA Budget Authority


$55,239.6


$50,681.8


$-4,557.8
Full Time Equivalents (includes reimbursable staff) 1,353 1,441 88

1/ TES includes advance appropriations of $2.463 billion in FY 2002 appropriated in FY 2001 for obligation in FY 2002, and $2.463 billion in FY 2003 appropriated in FY 2002 for obligation in FY 2003.
2/ H1-B fees of $139.7 million are included in FY 2002 Training and Employment Services for use in demonstration projects. In FY 2003, legislation is proposed to redirect the fees to eliminate the backlog in the permanent foreign labor certification programs, as funded in the State Unemployment Insurance and Employment Service Operations account.
3/ FY 2002 reflects the rescission of $177.5 million in Dislocated Worker Employment and Training Activities which was enacted against FY 2001 budget authority, but will occur in FY 2002.
4/ Non-add item.
5/ Non-add item, see Black Lung Disability Trust Fund (BLDTF).
6/ Mandatory funding, non-add, included in Unemployment Trust Fund benefits.

The total FY 2003 budget request for the Employment and Training Administration is designed to provide a prepared workforce to help Americans get the education and training and employment services that will enable them to obtain good jobs at decent wages, and to provide temporary support for those having difficulty in achieving this goal. In addition, it is anticipated that $1.3 billion in unspent resources will be carried into FY 2003 from State formula grant programs, together with $3 billion which is the balance of the Dislocated Worker National Emergency Grants funding from an FY 2002 bipartisan economic security plan.

New budget authority for the Employment and Training Administration (ETA) in FY 2003 will decrease by a net $4.6 billion compared with FY 2002. In Income Maintenance, there is a decrease of $4.0 billion due primarily to projected decreases in unemployment benefit payments. In the Employment and Training Programs area, there is a net decrease of $545 million, largely due to the elimination of duplicative programs that have not been effective; there are also decreases in formula grant programs related to the availability of large amounts of unexpended State carryover and carryover from the economic security National Emergency Grants funding from FY 2002 which can be used in lieu of new budget authority to increase service levels. Finally, a legislative proposal included with the FY 2003 budget shifts H-1B fees from training programs in the Training and Employment Services account to the State Unemployment Insurance and Employment Service Operations account to eliminate the backlog in the permanent foreign labor certification program.


EMPLOYMENT AND TRAINING PROGRAMS

Budget Authority

(Dollars in Millions)

FY 2002 FY 2003 Change
   Youth Programs $2,866.9 $2,577.7 $-289.2
     Youth Activities 1,128.0 1,001.0 -127.0
     Youth Opportunity Grants 225.1 44.5 -180.6
     Job Corps 1,458.8 1,532.2 73.4
     Respon. Reintegration for Young Offenders 55.0 0.0 -55.0
   Adult Programs 2,321.5 2,283.0 -38.5
     Dislocated Worker Employment and
     Training Activities 1/
1,371.5 1,383.0 11.5
     Economic Security Plan National Emer. Grants 2/ 4,000.0 0.0 -4,000.0
     Adult Employment and Training Activities 950.0 900.0 -50.0
   Other Employment and Training 1,836.5 1,652.0 -184.5
     One Stop Career Center Systems 120.0 113.0 -7.0
     Grants to States for Reemployment Services 35.0 35.0 0.0
     Employment Service 812.4 928.4 116.0
     Work Incentives Grants 20.0 20.0 0.0
     WIA National Programs 403.7 115.1 -288.6
     Community Service Employment for Older Americans 445.1 440.2 -4.9
     Gifts and Bequests 0.3 0.3 0.0
           Subtotal E/T Budget Authority 7,024.9 6,512.7 -512.2
     Pension and Health Cost, Job Corps 3/ $5.1 $4.9 $-0.2
     Terrorist Response Fund $32.5 $0.0 $-32.5
   Total E/T Budget Authority, Pres. Bud. $7,062.5 $6,517.6 $-544.9

1/ FY 2002 reflects the rescission of $177.5 million in Dislocated Worker Employment and Training Activities which was enacted in FY 2001, but will occur in FY 2002.
2/ Non-add
3/ Full cost for pension and health benefits (legislation pending).

The Fiscal Year (FY) 2003 budget request for Employment and Training Programs proposes a net decrease of $545 million in new budget authority to $6.5 billion, reflecting the availability of large carryover balances estimated from FY 2002.

Youth
A total of $2.578 billion is requested for employment and training programs for Youth. These investments that help young people make a successful transition to the world of work and family responsibility -- are decreased $289 million below the FY 2002 level. The change includes an increase of $73 million for the Job Corps to supplement a successful program that is changing the lives of disadvantaged young people. Decreases in this area include $127 million for Youth Activities, $181 million for Youth Opportunity Grants, and $55 million for Responsible Reintegration of Young Offenders.

For Youth Activities under Section 126 of WIA, a total of $1.001 billion is requested, a decrease of $127 million below the FY 2002 appropriation. The decrease in FY 2003 can be accommodated without affecting service levels due to the availability of large amounts of State unexpended carryover in the program. This program supports a wide range of activities and services to prepare low-income youth for academic and employment success, including summer jobs. It also provides increased flexibility to local Youth Councils, enabling them to develop pathways for career opportunities. In so doing, Youth Councils will link businesses and schools to ensure that work preparation activities are more relevant. The budget authority requested, together with unexpended carryover estimated at nearly $400 million, can support more than 553,000 participants compared to the 465,000 anticipated for FY 2002. Of the 19-21 year old youth employed in the first quarter after program exit, 78 percent will continue in employment in the third quarter after program exit.

The FY 2003 budget includes $44 million for Youth Opportunity Grants, a decrease of $181 million below the FY 2002 appropriation. This program was intended to provide comprehensive, longer term intervention in the lives of primarily out-of-school youth living in competitively selected inner cities and high poverty areas to help them graduate from high school, get jobs, and progress in the workforce. The decrease continues the phaseout of this effort begun in FY 2002, completes the programs of existing grantees, and reflects the program's end after FY 2003. In total, the requested amount for Youth Opportunity Grants will serve an estimated 43,400 youth. By 2003, it is estimated that 52 percent of 14-18 year old youth who enter the program without a diploma or equivalent will attain a secondary school diploma or equivalent by the first quarter after exit. States can continue this initiative under WIA formula grants.

The effective Job Corps program will provide intensive skill training, academic and social education, and support to an estimated 73,300 participants at 122 centers in FY 2003. The budget request is $1.532 billion. This is a net increase of $73 million above FY 2002. The net change includes increases of $29 million for staff salary increases, $16 million for increased slots at newly opened centers, $15 million to continue building two additional new centers, $4 million to provide high school accreditation at all centers, and $33 million for cost increases. A decrease of $18 million reflects unnecessary funding related to center relocations. For FY 2003, 70 percent of graduates will continue to be employed or enrolled in education six months after their initial placement, and those with jobs will earn average hourly wages of $8.27.

The Responsible Reintegration for Young Offenders program, funded as a separate demonstration in FY 2001 and FY 2002, will not be continued in FY 2003. The lessons learned in this program, such as linking youthful offenders under age 35 with essential services that can help make the difference in their choices in the future, can also be incorporated into the basic WIA formula grants.

Adults
A total of $2.283 billion is requested for employment and training programs for Adults, including Dislocated Worker Employment and Training Activities, and Adult Employment and Training Activities. This is a net decrease of $38 million below FY 2002. The net change includes an increase of $12 million for Dislocated Workers, and a decrease of $50 million for Adults.

Dislocated Worker Employment and Training Activities under authority of WIA, provides State formula grants, as well as a national emergency grant account, for retraining and adjustment services to laid off workers with a labor market attachment to help them quickly return to work. As shown in the FY 2003 President's Budget, the $1.383 billion requested in that year is an increase of $12 million above FY 2002. This increase reflects of a rescission in FY 2002 of $177.5 million in the FY 2001 enacted appropriations for Dislocated Workers, thereby decreasing budget authority for that year. The budget authority requested, together with State unexpended carryover estimated at $560 million plus carryover of an estimated $3 billion for National Emergency Grants from a 2002 bipartisan economic security plan, could support up to 1.7 million participants compared to the 1.1 million anticipated for FY 2002. For FY 2003, 78 percent of participants will be employed in the first quarter after program exit, and 88 percent of those will still be employed in the third quarter. Successful participants will achieve 98 percent of pre-dislocation earnings.

Adult Employment and Training Activities provide formula grants to States under authority of WIA for employment and training assistance to low-income adults. The FY 2003 request of $900 million is a decrease of $50 million below FY 2002. The budget authority requested, together with unexpended carryover estimated at $375 million, could support up to 510,000 participants compared to 415,000 anticipated for FY 2002. This is possible due to the availability of large amounts of unexpended carryover in the program. The WIA adult program no longer has a means test, and job seekers and adults seeking to advance their careers may receive core services, with more intensive services and training being targeted to those most in need, including welfare recipients. For FY 2003, 71 percent of participants will be employed in the first quarter after program exit, and 82 percent of those will be employed in the third quarter, with an average earnings change of $3,475.

Other Employment and Training
The FY 2003 budget includes $1.652 billion for Other Employment and Training Programs, a decrease of $185 million below FY 2002. The net change includes decreases of $7 million for One Stop Career Centers, $289 million for WIA National Programs, and $5 million for Community Service Employment for Older Americans. An increase of $116 million is included for the Employment Service. These changes include the effects of proposed legislation shifting $138 million from WIA National Programs to the Employment Service. The proposal would redirect H-1B fees currently utilized for training programs that have not proven to be effective to activities that eliminate the backlog in the permanent foreign labor certification program.

The FY 2003 budget includes $113 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 $7 million below FY 2002. Services include America's Job Bank that lists about 1.5 million jobs and over 500,000 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.

Also included is $35 million for Reemployment Services Grants, the same level provided in FY 2002. This program, begun in FY 2001, provides grants, made through the Employment Service, to provide targeted, staff-assisted services to unemployment insurance claimants identified as having a high probability of exhausting their benefits. This will speed their reentry into employment and reduce benefit duration.

The Employment Service (ES) 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. In FY 2003, a total of $928.4 million is requested, a net increase of $116 million above FY 2002. Included in this total in FY 2003 is a level of $761.7 million for Allotments to States and $166.7 million for ES National Activities. An ES increase of $138 million results from a legislative proposal redirecting H-1B fees from ineffective training programs in the Training and Employment Services account to ES National Activities to eliminate the backlog in the permanent foreign labor certification program. A decrease of $22 million in new budget authority results largely from funding a portion of foreign labor certification activities with H-1B fees rather than appropriated funds. ES provides no-fee services to individuals seeking employment and to employers seeking workers. Under the request, ES will assist 8.7 million individuals in entering employment. In FY 2003, 58 percent of job seekers registered with the public labor exchange will enter employment with a new employer by the end of the second quarter following registration.

In FY 2003, the budget includes $20 million for Work Incentive Grants, the same level provided in FY 2002, 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 2003, of those with disabilities served, 5 percent more individuals will be placed in unsubsidized employment after program exit than were placed in FY 2002.

WIA National Programs is funded at $115 million in FY 2003, a decrease of $289 million below FY 2002. These programs provide employment and training assistance to Native Americans and migrant and seasonal farm workers; as well as pilots, demonstrations, and research; evaluation; technical assistance and incentive grants in support of the employment and training system; the National Skills Standards Board; and Women in Apprenticeship.

Decreases for FY 2003 include $138 million for the legislatively-proposed redirection of H-1B fees discussed above, $81 million for the end of the Migrants and Seasonal Farmworkers program, $63 million for elimination of Pilot, Demonstration, and Research earmarks, $3.5 million for the elimination of the National Skills Standards Board, and $2 million for Native Americans.

In FY 2003 $440.2 million is requested for the Community Service Employment for Older Americans program, a decrease of $5 million below FY 2002. The request will provide a participant level of 92,000. It is expected that 37 percent of participants will be placed and retained in unsubsidized employment.


Employment and Training Selected Workload Data

(Participants in Thousands)

FY 2002 Estimate FY 2003 Estimate FY 2003 Capacity
Youth Activities 465 465 553
Youth Opportunity Grants 49 43 43
Job Corps 72 73 73
Res. Reinteg. for Young Offenders 10 0 0
Adult Employ. and Training Acts. 415 415 510
Dislocated Workers Employment and Training Activities 902 902 1,081
Native Americans 23 22 22
Migrants and Seasonal Farmworkers 43 0 0
Community Services Employment/ Older Americans 93 92 92
Eco. Sec. Nat'l. Emer. Grants (non-add) 1/ 200 600 600
Total 2,072 2,012 2,374

1/ Represents bipartisan economic security plan providing $4 billion for Dislocated Worker National Emergency Grants, available in 2002.


INCOME MAINTENANCE

Budget Authority

(Dollars in Millions)

FY 2002 FY 2003 Change
Unemployment Insurance Program 1/ $2,788.0 $2,727.7 $-60.3
Terrorist Response Fund 4.1 0.0 -4.1
Fed. Unemployment Benefits & Allow 2/ 415.7 461.7 46.0
Advances to UTF and Other Funds (BLDTF) 3/ 464.0 463.0 -1.0
Advances to UTF and Other Funds (FUBA) 4/ 31.0 0.0 -31.0
Workers Compensation 5/ 175.0 0.0 -175.0
Unemployment Trust Fund Benefits 44,594.0 40,795.0 -3,799.0
Total, Income Maintenance $48,007.8 $43,984.4 $-4,023.4

1/ FY 2002 includes $374.4 million for contingency funds as a result of a projected workload increase (AWIU trigger)
2/ Legislation will be proposed to extend the TAA and NAFTA TAA programs which expired on September 30, 2001.
3/ Non-add, see Black Lung Disability Trust Fund (BLDTF) section.
4/ Additional spending on trade readjustment allowances based on latest economic assumptions.
5/ One-time assistance to New York State Uninsured Employers Fund response to terrorist attacks.

The FY 2003 request for Income Maintenance includes $40.8 billion for the Unemployment Trust Fund. Of the FY 2003 Income Maintenance total, $2.7 billion is the discretionary amount requested for State administration of the Unemployment Insurance (UI) Program. In addition, $461.7 million is being requested for the Federal Unemployment Benefits and Allowances (FUBA) account. Legislation will be proposed to extend the Trade Adjustment Assistance and NAFTA Transitional Adjustment Assistance programs financed in FUBA. The FY 2003 request for Advances to the UTF and Other Funds (Advances) account is $463.0 million, which is for the Black Lung Disability Trust Fund.

The balance of Income Maintenance includes 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, which provides for administrative costs related to extended benefits.

Unemployment Insurance Program
Under the State Unemployment Insurance and Employment Service Operations (SUIESO) account, 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 2003 budget includes a request for $2.7 billion, which is $64.4 million below the FY 2002 revised appropriation. The $64.4 million decrease in FY 2003 reflects a reduction of $146.5 million in UI claims workload and $4.1 million for terrorist response funds, offset by increases of $76.2 million for a proposed temporary program of extended UI benefits and $10.0 million for UI error reduction. The average weekly insured unemployment (AWIU) was projected to be 2.622 million in FY 2002. Based on the recent economic assumptions, the AWIU now totals 3.931. Therefore, the contingency trigger mechanism in the 2002 appropriation is expected to release an additional $374.4 million in 2002 to cover the increased AWIU claims workload.

The FY 2003 funding level requested for the UI program will provide for approximately 51,436 staff years of service. State staff will handle 6.9 million employer tax accounts, 25.0 million initial unemployment claims, and a total of 175.4 million weeks claimed and 1.2 million appeals. In addition, to finance any workload increase over an AWIU rate of 3.372 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. This unemployment insurance request also includes $10.0 million for National Activities, which are interstate or multi-state in nature.

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. In addition, this request provides similar benefits to workers affected by trade with countries covered by the North American Free Trade Agreement (NAFTA).

For FY 2003, $461.7 million is requested for FUBA. Legislation will be proposed at a later date to extend and improve the TAA and NAFTA-Transitional Adjustment Assistance programs which expired September 30, 2001.

Advances to the Unemployment Trust Fund and Other Funds
This appropriation provides general fund advances to several trust and general fund accounts. In FY 2003, the requested amount includes $463.0 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
The Unemployment Trust Fund includes amounts for both the administration of Federal and State unemployment compensation, and for Federal and State 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 2003 will be 2.6 percent. This translates to an average of approximately 3.0 million beneficiaries per week receiving unemployment assistance under Federal and State programs in FY 2003. The average weekly benefit amount is estimated at $256 in FY 2003, while the average number of weeks of benefits per recipient is expected to be 15.3 weeks. The total amount paid for unemployment compensation benefits and allowances is estimated at $40.8 billion. In FY 2003, estimated total unemployment trust fund outlays for benefits and administrative costs will decrease from $48.4 billion to $44.6 billion primarily due to a decrease in the number of the insured unemployed.


Income Maintenance Selected Workload Data

(In thousands)

FY 2002 FY 2003 Change
   Basic Workload (in thousands)
Initial Claims 27,425 24,999 -2,426
Weeks Claimed 204,404 175,364 -29,040
Appeals 1,179 1,223 44
Wage Records 607,995 616,039 8,044
Employer Tax Accounts 6,794 6,884 90
Covered Employment 127,730 129,420 1,690
Eligibility Interviews 15,816 13,569 -2,247


ETA PROGRAM ADMINISTRATION

Budget Authority/Trust Fund Transfers

(Dollars in Millions)

FY 2002 FY 2003 Change
Adult Services $37.0 $45.6 $8.6
Youth Services 37.6 39.0 1.4
Workforce Security 50.1 51.6 1.5
Apprenticeship Training, Employer and Labor Services 21.4 20.8 -0.6
Executive Direction 9.4 10.3 0.9
Welfare-to-Work 5.9 4.7 -1.2
      Subtotal, ETA-PA Budget Authority 161.4 172.0 10.6
Pension and Health Costs* 7.9 7.8 -0.1
     Total, ETA-PA Budget Authority-Pres Bud $169.3 $179.8 $10.5
Full Time Equivalent Staff 1/ 1,353 1,441 88

* Full Cost for Pensions and Health Benefits (Legislation Pending)
1/ FY 2002 includes 50 FTE funded through H-1B fees and 3 reimbursable FTE. In FY 2003 110 FTE will be funded through H-1B fees and 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 2003 budget request for Program Administration provides funds for 1,441 full-time equivalent (FTE) staff and $179.8 million. This number includes 1,328 FTE financed from direct appropriations, 3 FTE from reimbursements, and 110 FTE from H-1B fee allocations. This request represents a net increase of 28 direct FTE from the FY 2002 appropriation, and an increase of 60 FTE from 50 to 110 for the administrative costs of processing H-1B applications and the processing of certifications for the permanent foreign labor certification program.

Increases for 2003 include $5.5 million and 75 FTE for National Emergency Grants, contingent upon the enactment of the bipartisan economic security package, $3.6 million and 38 FTE for performance management and accountability functions that will be redeployed from other, lower priority activities, and $1.9 million for contractor services to provide specialized financial and program performance management information to all level of ETA organizations. This request includes an increase of $577 thousand for the increased space costs of the San Francisco regional office and $4.2 million for built-in cost increases. An additional $7.8 million is included to finance ETA's portion of the Administration's legislative proposal on pension and health care benefits.

Decreases include $1.1 million and 13 FTE for Youth Opportunity Grants, $256 thousand and 3 FTE for School-to-Work, and $101 thousand and 2 FTE for Public Affairs. The request reflects a reduction of 29 FTE which will be a financing change as ETA will outsource a portion of trade adjustment assistance and other closeout activities. The request also reflects a decrease of $3.6 million and 38 FTE resulting from consolidating and streamlining functions. These FTE will be redeployed to performance management and accountability activities.

A legislative proposal included in the 2003 budget shifts H-1B fee-generated resources from a training program or unproven effectiveness in the Training and Employment Services account to the State Unemployment Insurance and Employment Service Operations account. These fees will be used to eliminate the backlog in the permanent foreign labor certification program. Six million dollars of these funds will be allocated to the Program Administration account to finance an additional 60 FTE to reduce permanent program backlogs in ETA Regional Offices.

Adult Services
Funding for this 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. The FY 2003 request for this activity includes increases of $5.5 million and 75 FTE to administer National Emergency Grants (NEG's), contingent upon the enactment of legislation providing for additional NEG's to address major economic dislocations, including the dislocations resulting from the terrorist attacks of September 11, 2001; $1.5 million and 17 FTE for performance management and accountability functions, $500 thousand for improved financial performance accountability. The request also includes a 21 FTE decrease related to a financing change resulting from outsourcing trade adjustment assistance and closeout activities.

Youth Services
Funding for this activity 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. The FY 2003 budget requests increases of $1.7 million and 17 FTE for performance management and accountability functions and $500 thousand for improved financial performance accountability. Decreases consist of $1.1 million and 13 FTE related to reduced funding for Youth Opportunity Grants, $800 thousand and 8 FTE resulting from consolidating Job Corps management functions, $256 thousand and 3 FTE for reduced grant activity in the School-to-Work program, and a 5 FTE decrease related to a financing change resulting from outsourcing closeout activities.

Workforce Security
Funding for this activity provides staff for: 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. The FY 2003 request for this activity includes increases of $300 thousand and 3 FTE for performance management and accountability functions and $700 thousand for improved financial performance accountability. Decreases include $300 thousand and 3 FTE for consolidation and streamlining functions, $600 thousand and 6 FTE for UI research activities to be transferred to the Executive Direction activity, and a decrease of 3 FTE related to a financing change resulting from outsourcing closeout 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 development systems to the training needs of employers and the interest of labor organizations in training programs. The FY 2003 request for this activity includes an increase of $100 thousand for improved financial performance accountability and a decrease of $1.2 million and 12 FTE due to consolidating and streamlining activities.

Executive Direction
Funding for this activity finances staff who 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. The FY 2003 request for this activity includes increases of $600,000 and 6 FTE for UI research transferred from Workforce Security activity, $100 thousand and 1 FTE for performance management and accountability activities, $100 thousand for improved financial performance accountability, and decreases of $48 thousand and 1 FTE for consolidation of Public Affairs activities.


PENSION AND WELFARE BENEFITS ADMINISTRATION

Budget Authority

(Dollars in Millions)

FY 2002 1 FY 2003 Change
Enforcement and Compliance $85.5 $92.1 $6.6
Policy, Regulations, and Public Service 20.2 20.6 0.4
Program Oversight 4.1 4.3 0.2
      Subtotal, Budget Authority 109.8 117.0 7.2
Pension and Health Costs* 4.2 3.9 -0.3
Terrorist Response Fund 1.6 0 -1.6
      Total, Authority Presidents Budget $115.6 $120.9 $5.3
Full Time Equivalents 850 861 11

* Full Cost for Pensions and Health Benefits (Legislation Pending)
1/ Reflects an administrative reduction of $252,000 and a one time terrorist response supplement of $1,600,000 pursuant to P.L. 107-38.

The Pension and Welfare Benefits Administration (PWBA) 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 PWBA is to protect the pension, health and other benefits of participants in private sector employee benefit plans. PWBA 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. In FY 2003, PWBA anticipates increasing the number of closed civil investigations of employee pension, health and welfare plans by 5 percent where assets are restored, prohibited transactions are corrected, participant benefits are recovered, plan assets are protected, or other violations are corrected. PWBA performance goals emphasize prevention through compliance assistance and, where that fails, a balanced, consistent enforcement program. Customer service and compliance assistance continue be emphasized to ensure a citizen-centered accessible government.

Enforcement and Compliance
This activity provides compliance assistance to employers, plan officials and the public. 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 2003 estimate includes expanding compliance assistance through the PWBA Voluntary Fiduciary and Delinquent Filer Correction programs which encourage the timely correction of possible violations. In FY 2003, the budget request for this activity is $92.1 million and 696 FTE.

Policy, Regulation and Public Services
This activity conducts policy, research and legislative analyses on pension, health and other employee benefit issues; promulgates regulations and interpretations regarding reporting and disclosure, fiduciary, and coverage provisions; issues individual and class exemptions from ERISA's and FERSA's prohibited transactions provisions; discloses legally-required reports; provides technical assistance to plan officials, employee benefits practitioners, and the public; conducts education campaigns for employers and the public about retirement and health benefit security; provides direct assistance to plan participants and beneficiaries in enforcing their rights under ERISA and in obtaining benefits under employee benefit plans; provides assistance in response to requests from members of Congress (including constituent requests), as well as technical assistance to legislative committees with jurisdiction affecting ERISA and FERSA. In FY 2003, the budget request for this activity totals $20.6 million and 143 FTE.

Program Oversight
This activity provides leadership, policy direction, strategic planning, and administrative guidance in the management of pension and welfare benefits programs. 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 the agency's enforcement, policy, legislative and regulatory functions. In FY 2003, the budget request for this activity totals $4.3 million and 22 FTE.


PWBA Selected Workload Data

FY 2002 FY 2003 Change
Plan reviews and investigations conducted 7,175 6,398 -777
Investigations closed restoring or protecting assets 2,613 2,744 131
Exemptions, determinations, interpretations and regulations issued 1,184 1,206 22
Inquiries received 2 196,340 208,052 11,712

2/ Represents total number of inquiries received by customer service staff in the National and Field Offices. Excludes calls handled by automated telephone systems that provide responses to frequently asked ERISA questions.


PENSION BENEFIT GUARANTY CORPORATION

Budget Authority

(Dollars in Millions)

FY 2002 FY 2003 Change
Single Employer Program Benefit Pmts. $1,422.0 $1,325.0 $-97.0
Multi-Employer Program Financial Asst. 6.3 10.0 3.7
Administrative Expenses 11.7 13.1 1.4
Services related to terminations 178.9 179.8 0.9
      Subtotal, PBGC Budget Authority 1,618.9 1,527.9 -91.0
Pension and Health Costs* 3.4 3.0 -0.4
      Total, Authority Presidents Budget $1,622.3 $1,530.9 $-91.4
Full Time Equivalents 753 752 -1

* Full Cost for Pensions and Health Benefits (Legislation Pending)

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.

Single Employer Program Benefit Payments
Monthly pension payments are made to plan participants and other beneficiaries of plans which have been trusteed by PBGC.

Multi-Employer Program 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.

Administrative Expenses
These administrative expenses, subject to limitation by appropriation, provide for: collection of more than $800 million in premiums; accounting and auditing services; asset management; executive direction; and other support functions.

Services Related to Terminations
The services related to terminations provides for costs attributable to trusteed pension plans and benefit payment service.


PBGC Selected Workload Data

FY 2002 FY 2003 Change
Plans Terminated: Insufficient Assets 110 110 0
Participants in Government Trusteeships 674,000 724,000 50,000
Government Trusteeships at EOY 3,054 3,164 110


EMPLOYMENT STANDARDS ADMINISTRATION

Budget Authority

(Dollars in Millions)

FY 2002 FY 2003 Change
Staffing
     Salaries and Expenses $411.5 $336.5 $-75.0
     S&E, FECA Surcharge 0.0 86.4 86.4
     Special Benefits, Fair Share 36.6 37.0 0.4
     Energy Employees' Occupational Illness
          Compensation Program Act (EEOICPA)

135.7

104.9

-30.8
      Subtotal, Staffing 583.8 564.8 -19.0
     Pension and Health Costs* 25.9 24.3 -1.6
      Total, ESA Staffing - President's Budget 609.7 589.1 -20.6
Income Maintenance (Mandatory)
     Special Benefits 121.0 163.0 42.0
     Energy Employees' Occupational Illness
          Compensation Program Act (EEOICPA)
769.0 758.0 -11.0
     Black Lung Disability Trust Fund 1,035.9 1,035.0 -0.9
           Transfer From BLDTF -54.3 -55.3 -1.0
           Offsetting Receipts - BLDTF -2.0 -2.0 0.0
     Panama Canal Commission Fund 7.4 6.7 -0.7
           Offsetting Receipts - PCC -7.4 -6.7 0.7
     Special Workers' Compensation 151.0 151.0 0.0
     Transfer From SWC -2.0 -2.0 0.0
            Total, Income Maintenance 2,018.6 2,047.7 29.1
           Total, ESA Program $2,628.3 $2,636.8 $8.5
Full Time Equivalents 4,291 4,315 24

*Full Cost for Pensions and Health Benefits (Legislation Pending)

In total, funds for the Employment Standards Administration (ESA) in FY 2003 will increase by $8.5 million or about 0.3 percent compared with FY 2002. This request includes $24.3 million for legislation pending to show the full cost of pensions and health benefits for Federal staff. ESA's request also includes proposals to: 1) require an extended waiting period before FECA benefits are paid, and 2) convert FECA beneficiaries to an annuity-level benefit at age 65. These legislative proposals would result in cost savings for the FECA program.


ESA STAFFING

Budget Authority/Trust Fund Transfers

(Dollars in Millions)

FY 2002 FY 2003 Change
Enforcement of Wage and Hour Standards $165.2 $165.6 $0.4
Fed. Contractor EEO Standards Enforcement 77.7 77.5 -0.2
Federal Programs for Workers' Compensation 124.4 44.2 -80.2
Program Direction and Support 13.6 14.7 1.1
Labor-Management Standards 30.6 34.5 3.9
      Total, Budget Authority, S&E 411.5 336.5 -75.0
S&E, FECA Surcharge 0.0 86.4 86.4
Special Benefits, Fair Share 36.6 37.0 0.4
Energy Employees' Occupational Illness
Compensation Program Act (EEOICPA)

135.7

104.9

-30.8
Subtotal Staffing 583.8 564.8 -19.0
Pension and Health Costs* 25.9 24.3 -1.6
Total, ESA Staffing, - President's Budget $609.7 $589.1 $-20.6
Full Time Equivalents 4,291 4,315 24

*Full Cost for Pensions and Annuitant Health Benefits (Legislation Pending)

The budget request to conduct these programs in FY 2003 is for $589.1 million and 4,315 FTE, of which $336.5 million and 2,930 FTE is in the Salaries and Expenses account, $86.4 million and 839 FTE is to be financed by the FECA Surcharge, $37.0 million and 133 FTE is in the Fair Share portion of the Special Benefits account, and 413 FTE and $104.9 million is in the Energy Employees' Occupational Illness Compensation Act program. In total, this is a decrease of $20.6 million and an increase of 24 FTE over FY 2002. ESA's budget request includes a legislative proposal to finance the operations of the FECA program via a new surcharge. The proposal would integrate the full cost of FECA benefits and administration in the appropriate agencies and boost Federal agencies' incentives for improving safety in their workplaces. As part of this proposal, the direct budget authority for FECA program administration ($86.4 million) would be replaced with offsetting collections to be paid by Federal agencies based on their employees' workers' compensation benefits. The FECA program also includes legislative proposals to promote benefit equity and discourage frivolous claims. Specifically, the budget proposes to amend FECA to move the waiting period to before continuation of pay period, and conform the FECA benefits of future beneficiaries over the age of 65 to a benefit level comparable to what they would receive under Federal retirement programs.

Wage and Hour Standards
The FY 2003 budget request for the Wage and Hour Division is $165.6 million and 1,439 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 compliance education, partnerships, and enforcement to further its goals to promote high quality workplaces, a secure workforce and increase customer satisfaction.

Contractor EEO Enforcement
The FY 2003 budget request for OFCCP is $77.5 million and 749 FTE. The Office of Federal Contract Compliance Programs (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 have been endorsed more than thirty-five years through Executive Order 11246, as amended; Section 503 of the Rehabilitation Act of 1973, as amended; 38 USC 4212, Section 402 of the Vietnam Era Veterans' Readjustment Assistance Act of 1974, as amended. OFCCP shares authority with the Immigration and Naturalization Service (INS) of the U.S. Department of Justice regarding the Immigration Reform and Control Act of 1986 and the ESA Wage and Hour Division regarding the Family and Medical Leave Act of 1993. 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. The budget request includes funding for the automation of critical documents and database enhancements to facilitate public access.

Federal Programs for Workers' Compensation
The FY 2003 budget request for the Office of Workers' Compensation Programs (OWCP) is $130.6 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 Salaries and Expenses account is $86.4 million and 839 FTE that will be financed beginning in FY 2003 by the FECA Surcharge, an initiative to 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) is replaced with offsetting collections to be paid by Federal agencies based on their employees' workers' compensation benefits.

Other funding for OWCP includes $37.0 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 roll review activities. OWCP also requests $104.9 million and 413 FTE to run 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 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.

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 chronic silicosis as a result of their work in producing or testing nuclear weapons.

This budget request includes two legislative proposals that would improve the operation of the Black Lung Benefits program. The budget proposes to transfer permanently to DOL from Social Security Administration (SSA) responsibility to administer Black Lung Part B claims. Currently, these claims are handled by ESA through a reimbursement agreement with SSA. The SSA supports this transfer. This legislative proposal will consolidate all Black Lung claims handled by the Federal Government in the Department of Labor's Black Lung program, improving administrative efficiency. This budget also includes a legislative proposal to refinance the debt of the Black Lung Disability Trust Fund, a debt that is estimated to reach $8.2 billion by FY 2003. This proposal includes (1) refinancing the outstanding BLDTF debt, (2) extending at current rates BLDTF excise taxes set to expire in January 2014, and (3) providing $2.1 billion appropriation to compensate the General Fund for the forgone prepayment premium (i.e. the difference between the discounted present value of the refinanced payment stream and the par value of the outstanding debt).

Office of Labor-Management Standards
The FY 2003 budget request for the Office of Labor-Management Standards (OLMS) is $34.5 million and 297 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 $3.4 million and an additional 40 FTE for enhanced enforcement and outreach assistance activities to ensure compliance with the Labor-Management Reporting and Disclosure Act. The budget request also includes $2.0 million to provide 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.

Program Direction and Support
The FY 2003 budget request for Program Direction and Support is $14.7 million and 107 FTE. This activity supports ESA's operating programs and assures effective management by providing planning, personnel management, financial management, Federal/state liaison programs, management systems implementation, and data processing. The budget request includes $1.4 million to begin replacement of desktop and portable information technology equipment in ESA.


ESA Selected Workload Data

FY 2002 FY 2003 Change
Wage Hour Compliance Actions
Completed

38,000

38,000

0
Fed. Contractor EEO Standards:
Enforcement Compliance Reviews

6,430

6,430

0
Fed. Employees Compensation Act
Cases received:

166,000

166,000

0
Longshore and Harbor Workers'
Compensation Act:
Lost-Time Injuries Reported


23,000


23,000


0
Black Lung Benefits Act:
Initial Findings/Schedules for
Submission of Additional Evidence


9,600


7,000


-2,600
Labor-Management Standards:
Investigations, Compl. Audits,
Elections


3,541


4,175


634


ESA INCOME MAINTENANCE PROGRAMS (MANDATORY)

Budget Authority/Trust Fund Transfers

(Dollars in Millions)

FY 2002 FY 2003 Change
Special Benefits:
Federal Employees Compensation Act $2,223.0 $2,373.0 $150.0
     Less Fair share funding -36.6 -37.0 -0.4
Longshore and Harbor Workers' Comp. 3.0 3.0 0.0
      Subtotal, Special Benefits Program 2,189.4 2,339.0 149.6
     Less Chargeback Reimbursables -2,106.0 -2,171.0 -65.0
     Net Carryover Balances 37.6 -5.0 -42.6
      Total, Special Benefits 121.0 163.0 42.0
Energy Employees' Occupational Illness
Compensation Fund Program Act (EEOICPA)

769.0

758.0

-11.0
Black Lung Disability Trust Fund (BLDTF) 1,035.9 1,035.0 -0.9
     Less Offsetting Receipts -2.0 -2.0 0.0
     Less BLDTF Admin. (excludes Treasury) -54.3 -55.3 -1.0
      Total, BLDTF 979.6 977.7 -1.9
Other Income Maintenance Programs:
     Panama Canal Commission Fund 7.4 6.7 -0.7
     Less PCC Offsetting Receipts -7.4 -6.7 0.7
Special Workers' Compensation Expenses 151.0 151.0 0.0
     Less Administrative Expenses -2.0 -2.0 0.0
      Total, Special Workers' 149.0 149.0 0.0
Total, Income Maintenance Programs $2,018.6 $2,047.7 $29.1

The budget includes a total of $2,047.7 million for income maintenance programs in ESA in FY 2003, an increase of $29.1 million from FY 2002. The FECA program includes several initiatives that will result in long-term cost savings including: 1) the FECA surcharge, 2) an extended waiting period before FECA benefits are paid, and 3) the conversion of future FECA beneficiaries to an annuity-level benefit at age 65. The budget also proposes two legislative proposals to improve the Black Lung program: 1) the refinancing of the program's growing debt and 2) the transfer of the Social Security Administration "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 2003 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 $37.0 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
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.

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 funding request for FY 2003 for this program (started in FY 2001) is $758 million. Of that amount, $597 million will provide compensation and medical benefits to eligible workers or their survivors. The request for program administration is $104.9 million and 413 FTE, including funding for the Department of Health and Human Services.

Black Lung Disability Trust Fund
The budget request provides a total of $1.035 billion from the Black Lung Disability Trust Fund (BLDTF) in FY 2003 for benefit and interest payments and administrative expenses. This includes $360.4 million for benefits, $55.6 million for administrative expenses, and $619.0 million for interest payments. These figures do not account for the estimated effects of the refinancing proposal.

The Black Lung Disability Trust Fund (BLDTF) is facing a growing indebtedness problem. BLDTF revenues, which consist primarily of excise taxes on coal, are insufficient to repay its $8 billion debt to Treasury or to service 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 refinancing of the outstanding BLDTF debt, (2) extend, at current rates, BLDTF excise taxes set to expire in January 2014, and (3) provide a $2.1 billion appropriation to compensate the General Fund of the Treasury for the forgone prepayment premium (i.e. the difference between the discounted present value of the refinanced payment stream and the par value of the outstanding debt).

This budget request also includes a legislative proposal to transfer permanently the Social Security Administration's "Special Benefits for Disabled Coal Miners" to ESA. This SSA account funds Black Lung Part B claims. Currently, these claims are handled by ESA through a reimbursement agreement with SSA. This legislative proposal will consolidate all Black Lung claims handled by the Federal Government in the Department of Labor's Black Lung program. The SSA supports this transfer.

Disabled Coal Miner Benefits
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 2003, the amount of interest on advances is estimated to be $619.0 million.

Other Income Maintenance Programs
The budget requests $6.7 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 2002 FY 2003 Change
Safety and Health Standards $15.5 $14.2 $-1.3
Federal Enforcement 161.8 161.1 -0.7
State Programs 89.8 89.8 0.0
Technical Support 19.6 20.2 0.6
Federal Compliance Assistance 58.8 60.3 1.5
State Consultation Grants 51.0 52.5 1.5
Training Grants 11.2 4.0 -7.2
Safety and Health Statistics 26.2 25.7 -0.5
Executive Direction and Administration 9.0 9.2 0.2
      Subtotal, OSHA Budget Authority 442.9 437.0 -5.9
Pension and Health Costs * 13.7 11.7 -2.0
Terrorist Response Fund 1.0 0.0 -1.0
      Total, OSHA Budget Authority $457.6 $448.7 $-8.9
Full Time Equivalents ** 2,316 2,233 -83

* Full Cost for Pensions and Health Benefits (Legislation Pending)
** Includes 13 reimbursable and 3 allocation FTE.

The Occupational Safety and Health Administration (OSHA) promulgates occupational safety and health standards and ensures compliance by inspecting places of employment and working with employers and employees. The agency also provides consultation, training, and information services for employers and employees; assists other Federal agencies in establishing and maintaining occupational safety and health programs for Federal workers; and provides matching grants to assist states in administering and enforcing approved state occupational safety and health programs. In FY 2003, OSHA will continue its mission to save lives, prevent injuries and illnesses, and protect the health of America's workers. Consistent with its Strategic Plan, the agency will focus on the most serious hazards and most dangerous workplaces, expand compliance assistance opportunities, and measure results instead of activities. The FY 2003 OSHA budget request is $448.7 million and 2,233 FTE, which includes proposed pension and health costs, and is a decrease of $8.9 million and 83 FTE from FY 2002. In FY 2003, OSHA will improve efficiency by restructuring its workforce, eliminating unnecessary functions and focusing resources on front-line operations.

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 2003, 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. In FY 2003, the budget request for this activity is $14.2 million and 85 FTE, a reduction of $1.3 million and 10 FTE from FY 2002.

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. The agency will continue to focus resources on those activities that will have the greatest impact on worker safety and health. OSHA will also continue to target inspections on the worst hazards and the most dangerous workplaces and assist employers and employees in creating safe and healthy workplaces. In FY 2003, the budget request for this activity is $161.1 million and 1,581 FTE, a reduction of $0.7 million and 64 FTE from FY 2002.

State Programs
The State Programs activity supports grants to states to assist them in the administration of state occupational safety and health regulations. Currently, 26 states operate their own safety and health programs under this Federal aegis. 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. In FY 2003, the budget request for this activity is kept at $89.8 million, the FY 2002 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 electronic compliance assistance tools, laboratory accreditation, industrial hygiene, occupational nursing, occupational medicine, and safety engineering. In FY 2003, the budget request for this activity is $20.2 million and 109 FTE, which includes an increase of $0.3 million to expand the development of computer-based outreach products.

Federal Compliance Assistance
This activity supports a variety of employer and employee assistance programs. Outreach activities are conducted, including training and information exchanges and technical assistance to employers requesting such help. 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 by education centers selected and sanctioned by the Institute. In FY 2003 the budget request for this activity is $60.3 million and 353 FTE, an increase of $1.5 million and a reduction of 4 FTE. Of this increase, $1.0 million is provided to enhance technology-enabled training and improve compliance assistance and technical skills of the agency's front-line staff.

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 specific needs in each State 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 training of employers and their employees. The FY 2003 request includes $52.5 million for this activity, to continue efforts begun in FY 2002, an increase of $1.5 million over the FY 2002 level.

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. In FY 2003, the current training grant program will be updated and replaced with a new $4.0 million program that addresses the training needs of a changing workforce and uses new technologies to deliver training.

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 2003 request includes $25.7 million and 39 FTE for this activity, a decrease of $0.5 million and 5 FTE from FY 2002.

Executive Direction and Administration
This activity provides overall direction and administrative support for the Occupational Safety and Health Administration. In FY 2003, the budget request for this activity is $9.2 million and 50 FTE, an increase of $0.2 million over FY 2002.

OSHA Selected Workload Data

FY 2002 FY 2003 Change
Standards Promulgated 2 4 2
Federal Inspections 36,400 37,700 1,300
State Program Inspections 56,000 55,400 -600
Consultation Visits 32,000 32,500 500
Web Site Hits (in millions) 325.3 410.0 84.7

MINE SAFETY AND HEALTH ADMINISTRATION

Budget Authority

(Dollars in Millions)

FY 2002 FY 2003 Change
Enforcement: Coal $117.2 $112.5 $-4.7
Enforcement: Metal/NonMetal 61.1 63.9 2.8
Enforcement: Standards Development 2.4 2.3 -0.1
Assessments 4.8 4.8 0.0
Educational Policy and Development 27.9 27.9 0.0
Technical Support 28.1 28.7 0.6
Program Administration 12.6 14.2 1.6
Subtotal, MSHA Budget Authority 254.1 254.3 0.2
Pension and Health Costs* 13.8 10.0 10.0
Total, MSHA Budget Authority $267.9 $264.3 $-3.6
Full Time Equivalents 2,310 2,264 -46

* Full Cost for Pensions and Health Benefits (Legislation Pending)

The Mine Safety and Health Administration (MSHA) protects the safety and health of the Nation's miners by applying the provisions of the Federal Mine Safety and Health Act of 1977. The FY 2003 budget request includes $264.3 million and 2,264 FTE, including proposed pension and health care costs, a decrease of $3.6 million and 46 FTE from FY 2002

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 2003 request includes $112.5 million and 1,076 FTE. The request is $4.7 million and 65 FTE less than FY 2002. This reflects, primarily, a proposed realignment of MSHA's workforce to reflect the decline in the coal mine industry which this activity oversees. In addition, this change also reflects MSHA's efforts to perform its work more efficiently. The request also includes a reduction of $500 thousand for the completed MSHA chest x-ray screening pilot program. This activity will continue to maintain MSHA's contingency fund that provides access to $1.0 million to respond to mine emergencies.

Enforcement: Metal/Nonmetal
A total of $63.9 million and 609 FTE is requested for FY 2003 Metal and Nonmetal Mine Safety and Health activities. The request is $2.8 million and 20 FTE more than FY 2002. 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 $1.8 million and 20 FTE increase for health, safety and compliance assistance to respond to the growth of the metal and nonmetal mining industry.

Enforcement: Standards Development
The FY 2003 request for the MSHA Standards Development activity includes $2.3 million and 18 FTE. The request is a decrease of $0.1 million from FY 2002. 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
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 2003 request for Assessments includes $4.8 million and 51 FTE, the same amount as for FY 2002.

Educational Policy and Development
A total of $27.9 million and 140 FTE is requested for the Educational Policy and Development activity which is the same amount as for FY 2002. 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.

Technical Support
A total of $28.7 million and 255 FTE is requested for the Technical Support activity for FY 2003. This is an increase of $0.6 million over FY 2002. 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.

Program Administration
A total of $14.2 million and 115 FTE is requested for the Program Administration activity for FY 2003. This represents a change of plus $1.6 million and reduction of 1 FTE from FY 2002. This activity provides leadership, policy direction, program policy evaluation, and administrative support services for MSHA's safety and health programs. The request includes $2 million for an electronic government initiative that will provide an Internet Portal and data warehouse for public interaction with MSHA as well as an electronic document management system for forms processing.


MSHA Selected Workload Data

Fatalities:* FY 2002 FY 2003 Change
Coal Mines 25 21 -4
Metal/Nonmetal Mines 39 33 -6
Violations Assessed 132,000 132,000 0
Educational Policy:
     Course Days of Training 2,202 2,702 500
Technical Support:
     Equipment Approvals 840 840 0
     Laboratory Samples Analyzed 66,680 71,160 4,480

* Fatalities estimate based on a 15% reduction annually below the projected baseline.


BUREAU OF LABOR STATISTICS

Budget Authority/Trust Fund Transfers

(Dollars in Millions)

FY 2002 FY 2003 Change
Labor Force Statistics $216.0 $223.0 $7.0
Prices and Cost of Living 148.6 160.7 12.1
Compensation and Working Conditions 74.3 76.4 2.1
Productivity and Technology 9.6 10.0 0.4
Executive Direction and Staff Services 27.1 28.1 1.0
      Subtotal, BLS Budget Authority 475.6 498.2 $22.6
Pension and Health Cost* 14.0 12.9 $-1.1
      Total, BLS Budget Authority- Pres Bud $489.6 $511.1 $21.5
Full Time Equivalents 1/ 2,529 2,529 0

* Full Cost for Pensions Health Benefits ( Legislation Pending)
1/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 2003 is $511.1 million, which is an increase of $21.5 million over FY 2002, and 2,529 FTE, the same level as FY 2002. Included in the request is $5.9 million for modernizing the computing systems of the Producer Price Index (PPI) and International Price Program and making important improvements to both programs.

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 2003, 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 begin in FY 2003 to conduct the American Time-Use Survey. The BLS also will implement the conversion of all national, State, and area estimates to the North American Industry Classification System, including reconstruction of historical time series, and complete the four-year phase-in of the Current Employment Survey (CES) sample redesign. The entire CES program will be based on a probability sample design for the first time. In addition, the BLS will continue to improve the quality of estimates produced by the Local Area Unemployment Statistics program and to develop the capability to produce additional demographic data at the local level. The BLS request includes $223.0 million and 497 FTE for the Labor Force Statistics program.

Prices and Cost of Living
The Prices and Living Conditions program publishes the Consumer Price Index (CPI), the 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 2002, the BLS will proceed with planning for continuous updating of the CPI, which historically was undertaken approximately every 10 years. The FY 2003 request includes $5.9 million to modernize the computing systems for monthly processing of the PPI and U.S. Import and Export Price Indexes, and to make important improvements to both programs, such as annual weight updates to the U.S. Import and Export Price Indexes and experimental PPIs for goods and services that will provide the first economy-wide measures of changes in producer prices. The BLS request includes $160.7 million and 1,097 FTE for the Prices and Living Conditions program.

Compensation and Working Conditions
The Compensation and Working Conditions program provides comprehensive data on wages and benefits by occupation and industry for major labor markets and industries. The program also compiles annual information on the incidence and number of work-related injuries, illnesses, and fatalities. In FY 2003, the BLS will continue its ongoing plan to update the sample of establishments that is used to produce the local area pay data, the Employment Cost Index, and the Employee Benefits Survey. The BLS also will publish the results of the 2001 Survey of Occupational Injuries and Illnesses and 2002 Census of Fatal Occupational Injuries. The BLS request includes $76.4 million and 579 FTE for the Compensation and Working Conditions program.

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 for foreign countries. In FY 2003, the BLS will publish new measures of labor productivity and unit labor costs for 2 service-producing industries. The BLS also will develop a new procedure for adjusting hours collected in the Current Employment Statistics survey from an hours-paid basis to an hours-at-work basis, and conduct a study of the family from an international perspective, including demographic trends and the work/family relationship. The BLS request includes $10.0 million and 81 FTE for the Productivity and Technology program.

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, computer systems, and statistical methods research areas. The BLS request includes $28.1 million and 214 FTE for the Executive Direction program.


BLS Selected Workload Data

FY 2002 FY 2003 Change
Employment and Unemployment
Estimates for States and Local Areas

90,000

90,000

0
Consumer Price Indexes 5,400 5,400 0
Employment Cost Index Schedules 14,400 15,600 1,200
Productivity Series Maintained 6,356 6,377 21


OFFICE OF DISABILITY EMPLOYMENT POLICY

Budget Authority

(Dollars in Millions)

FY 2002 FY 2003 Change
Office of Disability Employment Policy $35.5 $47.0 $11.5
Task Force on the Employment of Adults
with Disabilities

2.6

0.0

-2.6
      Subtotal, ODEP Budget Authority 38.1 47.0 8.9
Pension and Health Costs* 0.4 0.4 0.0
      Total, ODEP Budget Authority $38.5 $47.4 $8.9
Full Time Equivalents 67 65 -2

* Full Cost for Pensions and Health Benefits (Legislation Pending)

The budget provides a total of $47.4 million and 65 FTE in FY 2003 to fund the Department's work toward eliminating policy barriers that impede the employment of people with disabilities.

Office of Disability Employment Policy
The FY 2003 budget includes $47.0 million and 65 FTE for the Office of Disability Employment Policy (ODEP), an increase of $8.9 million and a reduction of 2 FTE from FY 2002. Congress created this office in the FY 2001 Labor appropriation with a mission to bring a heightened and permanent disability focus within DOL through policy evaluation, technical assistance and development of best practices. The office works within the Department to increase participation of people with disabilities in DOL training programs, with a targeted emphasis on those serving youth. ODEP works outside DOL through the Disability Employment Partnership Board, an advisory group established through Executive Order and comprised of up to 15 members from America's business leaders, organized labor, rehabilitation and service providers, and disability-related organizations.

The FY 2003 request continues support for the President's New Freedom Initiative to expand employment opportunities for individuals with disabilities. ODEP requests an additional $4.9 million to expand the Olmstead Implementation Grants to provide employment services to support persons with significant disabilities who are moving from institutions into the community. ODEP also requests an increase of $3.0 million for the youth services and training grants programs to assist youth with disabilities in fulfilling their potential in the workforce.

Task Force on the Employment of Adults with Disabilities
This Task Force has targeted July 26, 2002 for delivery of the fourth and final report to the President, which will complete its work. No resources are requested in FY 2003 for this activity as the Office of Disability Employment Policy will assume any remaining functions of the Task Force and become the primary entity within DOL addressing disability employment issues.


DEPARTMENTAL MANAGEMENT

Budget Authority/Trust Fund Transfers
(Dollars in Millions)

FY 2002

FY 2003

Change

Program Direction and Support

$26.5

$26.4

$-0.1

Legal Services

84.4

84.9

0.5

International Labor Affairs

148.0

54.6

-93.4

Administration and Management

29.7

30.2

0.5

Adjudication

40.3

41.5

1.2

Women's Bureau

10.2

8.4

-1.8

Civil Rights

5.8

6.0

0.2

Chief Financial Officer

6.2

7.9

1.7

Information Technology Activities

50.0

74.0

24.0

Management Crosscut 0.0 7.0 7.0
      Subtotal, Budget Authority

401.1

340.9

-60.2

Pension and Health Costs*

10.5

9.2

-1.3

Terrorist Response Fund 5.9 0.0 -5.9
      Total, Budget Authority - Pres. Budget $417.5

$350.1

$-67.4

Full Time Equivalents 1/

2,284

2,215

-69


* Full Cost for Pensions and Health Benefits (Legislation Pending)
1/ Includes 707 FTE in FY 2002 and 692 FTE in FY 2003 for the Working Capital Fund; and 35 FTE in FY 2002 and 17 FTE in FY 2003 for DM reimbursable activities.

The budget for the DM appropriation is $350.1 million and 1,523 FTE plus 692 FTE in the Working Capital Fund for an overall total of 2,215 FTE in FY 2003, a decrease of $67.4 million and 69 FTE over FY 2002. The Working Capital Fund, which is a no-year revolving fund that provides centralized administrative support services financed through assessments of DOL agencies, will increase by $3.7 million.

The Departmental Management (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 and a centralized Information Technology Activity administered by the Chief Information Officer office. In addition, a new activity, Management Crosscut, is being proposed for FY 2003. 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 workplaces.

Program Direction and Support
The Program Direction and Support (PDS) activity includes a total budget request of $26.4 million and 161 FTE for FY 2003, a decrease of $0.1 million and an increase of 8 FTE from FY 2002. The PDS activity includes the immediate Offices of the Secretary and Deputy Secretary, provides leadership and direction for overall initiatives, programs, and functions assigned to 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.

The FY 2003 President's Budget includes a proposal to centralize the functions of the Office of Public Affairs (OPA) within the Department. A total of 8 FTE will be transferred from DOL agencies into OPA with an additional 9 FTE related to individual DOL agency public affairs activities being eliminated. In addition, 5 FTE are requested for an increase to the Working Capital Fund for the OPA regional offices. The revised structure of Departmental OPA activities will ensure this important function is continued, but in a more efficient manner.

Legal Services
The Office of the Solicitor (SOL) includes a total budget request of $84.9 million and 664 FTE for FY 2003, an increase of $0.5 million and 5 FTE from FY 2002. 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 review of 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 international agreements; and participates in international organizations including the International Labor 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 2003, SOL requests an additional $500 thousand and 5 FTE to support additional enforcement activities proposed by other DOL agencies.

International Labor Affairs
The total request for Bureau of International Labor Affairs (ILAB) in FY 2003 is $54.6 million and 85 FTE, a reduction of $93.4 million and 40 FTE from FY 2002. This budget is the first step in returning ILAB to its core mission to assist in formulating the U.S. international policies and programs of concern to American workers. In doing so, funding for the Child Education initiative and other new grants programs are eliminated. In addition, grants for other multilateral and bilateral technical assistance are reduced to allow ILAB to concentrate efforts in targeted areas. ILAB will continue its work on the global HIV/AIDS initiative begun in FY 2001. ILAB coordinates the Department's global responsibilities and provides expert support for many of the Administration's international initiatives. The 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. The FY 2003 request recognizes the importance of promoting international labor standards and reducing child labor throughout the world while at the same time managing the growth of this activity.

In this budget, the Bureau will continue bilateral and multilateral projects to help developing countries establish basic labor protections enabling workers everywhere to enjoy fundamental principles of employee rights. These programs help strengthen developing countries' ability to implement social safety net policies and programs needed to foster economic growth. ILAB will continue working with the ILO on the declaration on core labor standards, as well as follow-up work to the new ILO Convention on the Worst Forms of Child Labor. The request will allow the Bureau to continue support of the ILO's International Program on the Elimination of Child Labor on projects that remove children from exploitative work and provide them education and their families with viable economic alternatives.

Administration and Management
The FY 2003 budget includes $30.2 million and 112 FTE, an increase of $0.5 million from FY 2002, for the Office of the Assistant Secretary for Administration and Management (OASAM) to provide leadership and policy guidance in the areas of budget, human resources, information technology, 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 four components: the Office of Administrative Law Judges, the Benefits Review Board, the Employees' Compensation Appeals Board and the Administrative Review Board. In FY 2003, the total budget requested for these four agencies is $41.5 million and 327 FTE, an increase of $1.2 million from FY 2002. These components preside over either formal hearings and render timely decisions, or review and decide appeals on claims filed under numerous statutes, including the Black Lung Benefits Act, the Longshore and Harbor Workers' Compensation Act, and its extensions, the Federal Employees' Compensation Act and numerous other acts involving complaints to determine violations of minimum wage requirements, overtime payments, health and safety regulations, and unfair labor practices. Final decisions are prepared for the Secretary, Deputy Secretary and other deciding officials in adjudicated administrative decisions.

Women's Bureau
The FY 2003 budget includes $8.4 million and 64 FTE for the Women's Bureau, a decrease of $1.8 million and 7 FTE from FY 2002. The Women's Bureau is the only Federal agency with primary responsibility for promoting the welfare and interests of working women. The mission of the Bureau is to improve women's working conditions, to eliminate the barriers that restrict women in reaching their full potential in the workplace, to advance their opportunities for profitable employment, and to operate a clearinghouse of information to address issues facing working women and their families.

Civil Rights
The total proposed funding in the FY 2003 budget for the Civil Rights activity is $6.0 million and 48 FTE, an increase of $0.2 million and a decrease of 2 FTE from FY 2002. 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 benefitting 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 assistance programs for persons with disabilities.

Chief Financial Officer
For the Chief Financial Officer activity, the FY 2003 budget includes $7.9 million and 45 FTE, an increase of $1.7 million from FY 2002. 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. The increase will enable the OCFO to modernize the Department's accounting system to meet increasing Federal accounting standards while at the same time, plan for replacement of the aging system.

Information Technology Activities
The FY 2003 request includes $74.0 million, an increase of $24.0 million from FY 2002, for the third year of an effort to replace previously duplicative and disparate systems with a coordinated and centralized IT investment strategy for the DOL managed by the CIO. As required by the Clinger Cohen Act, in 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. The request reflects a $24 million increase to support the acquisition of Departmental information technology, architecture, infrastructures, equipment, software and related needs. 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.

Management Crosscut
The FY 2003 President's Budget proposes a new activity within Departmental Management, the Management Crosscut activity. The total request for FY 2003 for this activity is $7 million. This activity is designed to address major management issues that face all DOL agencies. In this Budget, the Management Crosscut activity will address Workforce Analysis and Restructuring as well as the need for program performance evaluations to improve the overall effectiveness of DOL programs. One of the most important issues facing all of the Federal government is the aging of its workforce and how to provide high quality service in the face of a diminishing workforce. The Department requests $5 million to assess core competencies within DOL, implement plans to address skill gaps, perform outreach activities, and develop recruitment and retention strategies. In addition to addressing DOL workforce issues, $2 million is requested under the Management Crosscut activity to conduct program performance evaluations. Funding will be used to finance evaluations of specific programs as outlined in the Department's evaluation plans to determine which DOL programs are meeting their established goals and objectives as well as addressing public policy concerns.

Working Capital Fund
The Department's agencies finance the Working Capital Fund (WCF) for centralized administrative services. 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 2003, the Working Capital Fund's operating level totals $133.1 million and 692 FTE to support administrative and management services for all DOL programs nationwide.


VETERANS EMPLOYMENT AND TRAINING SERVICE

Budget Authority/Trust Fund Transfers
(Dollars in Millions)

FY 2002 FY 2003 Change
State Administration:
Disabled Veterans' Outreach Program $81.6 $81.6 $0.0
Local Veterans' Employment Reps. 77.3 77.3 0.0
Administration 26.0 26.7 0.7
National Veterans' Training Institute 2.0 0.0 -2.0
      Total, Budget Authority (Trust Funds) 186.9 185.6 -1.3
Homeless Veterans' Reintegration Project 18.3 17.5 -0.8
Veterans' Workforce Investment Program 7.5 7.3 -0.2
      Subtotal, Budget Authority (All Sources) 212.7 210.4 -2.3
Pension and Health Costs* 1.1 1.1 0.0
Total, VETS Budget Authority- Pres Bud $213.8 $211.5 $-2.3
Full Time Equivalents 250 250 0

* Full Cost for Pensions and Health Benefits (Legislation Pending)

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 establishes counseling, training, and placement policies and goals for veterans through the public employment service and other employment and training programs. The budget request includes $211.5 million and 250 FTE for FY 2003.

State Administration: Disabled Veterans' Outreach Program
The Disabled Veterans' Outreach Program (DVOP) provides intensive employment and employability development services to disabled veterans and to economically disadvantaged veterans through a system of State-employed, federally-funded program specialists. Many DVOP specialists are stationed at homeless veteran shelters, Department of Veteran's Affairs (VA) community based VET Centers and other VA locations. The FY 2003 budget request for this activity is $81.6 million.

State Administration: Local Veterans' Employment Representatives
The Local Veterans' Employment Representative (LVER) program provides service to veterans and staff. LVERs supervise the provision of services to veterans by other staff in local One Stop Centers and in State Employment Service Offices. LVER staff also maintain contact with local community leaders, train service members about to separate from active duty through the Transition Assistance Program, 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. The FY 2003 budget request for this activity is $77.3 million.

Administration
The Administration activity supports a federal staff which ensures veterans' reemployment rights and administers State staffing grants for the DVOP and LVER programs, Veterans Workforce Investment program and Homeless Veterans' Reintegration Project grants. The agency staff conduct on-site monitoring and management assistance, coordinate with other Federal agencies, and collect and analyze information on employment and training services provided to veterans as required by law. Funds will maintain a training capacity for about 120,000 TAP participants and the capacity to process approximately 1,500 veteran employment and reemployment rights complaints. The FY 2003 funding for this activity is $26.7 million and 250 FTE.

The National Veterans' Training Institute
The National Veterans' Training Institute (NVTI) function, which provided training to both Federal and State employees and managers involved in the delivery of services to veterans, is not funded. Pending enactment of the proposed legislation, VETS will explore other means of maintaining core competencies for veteran service providers consistent with the funding available for services to veterans and the new service delivery systems envisioned.

Homeless Veterans Program
In FY 2003 the funding request for this program is $17.5 million to conduct a Homeless Veterans' Program as authorized by the Stewart B. McKinney Homeless Assistance Act and title 38 of U.S.C. 4111. The program will provide employment and training assistance to homeless veterans, with expected job placements of approximately 9,000 homeless veterans.

Veterans' Workforce Investment Program
In FY 2003, the funding request for this program is $7.3 million which is to conduct a training and employment program for veterans under the Workforce Investment Act (Sec. 168). The program will provide training opportunities for service connected disabled veterans, and recently separated and other veterans with significant barriers to employment. This program will help 2,000 hard-to-serve veterans into jobs.


Veterans Employment and Training Services
Proposed Legislation

(Dollars in Millions)

Proposed Transfer to VA Proposed to Remain at DOL
State Administration:
Disabled Veterans' Outreach Program $81.6 $0.0
Local Veterans' Employment Reps. 77.3 0.0
Administration 20.8 6.7
National Veterans' Training Institute 0.0 0.0
      Total, Budget Authority (Trust Funds) 179.7 6.7
Homeless Veterans' Reintegration Project 17.5 0.0
Veterans' Workforce Investment Program 0.0 7.3
      Subtotal, Budget Authority (All Sources) 197.2 14.0
Pension and Health Costs* 0.9 0.2
Total, Budget Authority w/ Proposed Legislation for Transfer and Pension Health $198.1 $14.2
Full Time Equivalents 199 51

* Full Cost for Pensions and Health Benefits (Legislation Pending)

Legislation will be submitted to consolidate three of the grant activities - the Disabled Veterans' Outreach, the Local Veterans' Employment Representative, and Homeless Veterans Reintegration Project programs - into a new delivery system of competitive grants with strong performance measures and to move the new program to the Department of Veterans Affairs (VA). The associated personnel (199 FTE) will also move to the VA.

The Veterans Workforce Investment Program, authorized under the Workforce Investment Act of 1998 (WIA), 29 U.S.C. 2913, will be retained within the Department of Labor (DOL). If the proposed legislation is enacted, this program will be moved to the Employment and Training Administration's Training and Employment Services account, where other DOL programs authorized under WIA are funded. A total of 51 FTE and $6.7 million will remain in DOL to continue to assist veterans, National Guard and reserve component members secure their employment and reemployment rights or privileges (38 U.S.C. 4212), and protect veteran's preference rights with Federal agencies.


OFFICE OF INSPECTOR GENERAL

FY 2002 FY 2003 Change
Program Activities1 $50.2 $62.6 -
Executive Direction and Management 7.1 - -
      Subtotal, OIG Budget Authority $57.3 $62.6 $5.3
Pension and Health Cost2 3.0 3.0 --
      Total, OIG Budget Authority - Pres Bud $60.3 $65.6 $5.3
Full Time Equivalents 428 453 25

1 The Office of Inspector General (OIG) budget will be comprised of one program activity in FY 2003.
2 Full Cost for Pensions and Health Benefits (Legislation Pending)

The Office of Inspector General (OIG) budget request includes $65.6 million and 453 FTE for FY 2003, an increase of $5.3 million and 25 FTE.

Program Activities

The OIG budget program includes audit, program fraud, labor racketeering, special evaluations and inspection of program activities, and executive direction and management. The Office of Audit 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 Office of Investigations 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 Office of Communications, Inspections and Evaluations 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 which include: management, legal counsel, administrative support, information technology, procurement, personnel, and financial functions. The OIG also provides technical assistance to DOL program activities.

The FY 2003 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. The request also includes $500,000 and 5 FTE to conduct a comprehensive, nationwide initiative to safeguard the integrity of the nation's $32 billion Unemployment Insurance Program.


OIG Selected Workload Data

FY 2002 FY 2003 Change
Audit Reports Issued 83 86 3
Investigations completed 480 565 85
Performance Goal: Evaluations Issued 15 18 3