Department of Labor Budget Overview FY 2003 - Agency Information

EMPLOYMENT AND TRAINING ADMINISTRATION

OVERVIEW

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

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.

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

INCOME MAINTENANCE

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.

ETA PROGRAM ADMINISTRATION

* 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

* 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.

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

* 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

EMPLOYMENT STANDARDS ADMINISTRATION

*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

*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 INCOME MAINTENANCE PROGRAMS (MANDATORY)

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

* 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 c