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Secretary of Labor Thomas E. Perez
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DOL Annual Report, Fiscal Year 2007
Performance and Accountability Report

Management's Discussion & Analysis

Program Performance Overview

Fiscal Year (FY) 2007 marks the ninth year that the Department of Labor has reported program results under the Government Performance and Results Act (GPRA). Program goals that are key to the accomplishment of DOL strategic goals1 were selected for inclusion in the FY 2008 Performance Budget Overview.2 These performance goals and their indicators provide the basis for assessments of DOL's effectiveness. The Department's goal structure has three levels that are described below. The table that follows indicates FY 2007 program performance goal achievement by strategic goal.

Strategic Goals
DOL has four goals that express outcomes associated with the Department's mission and serve to focus Departmental efforts on links between activities and higher purposes: A Prepared Workforce, A Competitive Workforce, Safe and Secure Workplaces, and Strengthened Economic Protections.

Performance Goals
Each of DOL's strategic goals is supported by several program-level goals that provide clarity of purpose. This report includes 25 performance goals.3

Performance Indicators
Quantitative measures determine achievement of performance goals. For this reporting period, 87 indicators serve this purpose. DOL requires that all indicator targets are reached to qualify as Achieved. Substantially Achieved, which recognizes results that were very close to the goal, requires that for 80 percent of indicators, targets are reached or results improved over the prior year.

Strategic Goal

Performance Goals

Goals
Achieved

Substantially
Achieved

Not
Achieved

Total

Percent Achieved or Substantially Achieved

Goal 1 — A Prepared Workforce: Develop a prepared workforce by providing effective training and support services to new and incumbent workers and supplying high quality information on the economy and labor market.

2

1

2

5

60%

Goal 2 — A Competitive Workforce: Meet the competitive labor demands of the worldwide economy by enhancing the effectiveness and efficiency of the workforce development and regulatory systems that assist workers and employers in meeting the challenges of global competition.

5

0

5

10

50%

Goal 3 — Safe and Secure Workplaces: Promote workplaces that are safe, healthful and fair; guarantee workers receive the wages due them; foster equal opportunity in employment; and protect veterans' employment and re-employment rights.

3

1

1

5

80%

Goal 4 — Strengthened Economic Protections: Protect and strengthen worker economic security through effective and efficient provision of unemployment insurance and workers' compensation; ensuring union transparency; and securing pension and health benefits.

1

3

1

5

80%

Total

11

5

9

25

64%

The total of 64 percent achieved or substantially achieved compares with 50 percent last year and 60 percent in FY 2005. Starting in FY 2007, DOL simplified its performance reporting by replacing the indicator result category "substantially reached" with "improved." Of the five substantially achieved goals, just two would have qualified under the old rule, and the overall percent achieved and substantially achieved would have been 52 percent. In other words, two percentage points of the improvement are due to performance and the other twelve points are accounted for by methodology.

Charts below present, by strategic goal, FY 2007 achievement as measured by performance indicators and performance goals. The performance goal number,4 goal statement, and responsible agency appear on the left axis, the total percentage of indicator targets reached or improved is indicated in the horizontal bars, and the goal result is on the right axis. Corresponding strategic goal and DOL-wide averages for indicators and performance goals (percentage of goals achieved or substantially achieved) are presented at the bottom of each chart in the bars and on the right axis, respectively, to facilitate comparisons. If the goal is achieved, the bar will run all the way across because by definition, 100 percent of indicator targets were reached. If the goal is substantially achieved, the indicator total can range from 80 percent to 100 percent as determined by the category definition (see "Performance Indicators" description on the preceding page).

Strategic Goal 1 graph

As indicated in the chart above, DOL had five performance goals under Strategic Goal 1 in FY 2007, of which three were achieved or substantially achieved (60 percent) — below the Department wide average of 64 percent. BLS achieved its goal, reaching all six targets. Job Corps reached its literacy/numeracy target but not its targets for placement in employment or education and attainment of a degree, General Educational Development (GED) credential or certificate. The WIA Youth program, which uses the same measures, substantially achieved its goal; student academic attainment reached the target, while placement improved over PY 2005 results but fell slightly below the target. The Office of Apprenticeship achieved its goal by reaching its employment retention and average hourly wage gains targets. VETS' goal was not achieved; three of six targets were reached.

Strategic Goal 2 graph

DOL achieved or substantially achieved five of ten performance goals (50 percent) in Strategic Goal 2, which is below the Department's average of 64 percent. The WIA Adult program goal was not achieved, but two of the three Federal job training program common measure5 targets were reached. The WIA Dislocated Worker goal was not achieved, either, missing the entered employment and retention targets but reaching the average earnings target. The performance goal for One-Stop employment and workforce information services was not achieved; in this case, the average earnings target was reached but targets for entered employment and employment retention were not. Results for Performance Goal 06-2D (Community Based Job Training Grants) are not reported because data are considered inadequate for the purpose of determining goal achievement. The performance goal for increasing accessibility of workforce information through National Electronic Tools was achieved, reaching all three targets. The Senior Community Service Employment Program did not achieve its goal, reaching just one of two targets. The Trade Adjustment Assistance program reached all three of its targets, achieving the goal.

The Foreign Labor Certification program goal was not achieved; one of four targets was reached. ODEP achieved its goal, reaching all three targets. The Office of the Assistant Secretary for Policy achieved its goal by reaching all three of its targets. ILAB's goal to reduce exploitive child labor worldwide was achieved by reaching both targets.

Strategic Goal 3 graph

For Strategic Goal 3, DOL achieved or substantially achieved four of five performance goals (80 percent), exceeding the FY 2007 average of 64 percent. OSHA achieved its goal by reaching targets for reducing the workplace injury and illness rate and the fatality rate. MSHA substantially achieved its goal to improve mine safety and health by reaching targets for four performance indicators and improving results for another (of six total). ESA's Wage and Hour Division did not achieve its goal because it reached just one of four targets — for improving efficiency of the wage determination process. ESA's Office of Federal Contractor Compliance Programs achieved its goal, reaching its targets for reducing discrimination and increasing compliance among Federal contractors. VETS' goal for protecting employment and reemployment rights of service members was achieved via improvement in the program's comprehensive Progress Index.

Strategic Goal 4 graph

DOL achieved or substantially achieved four of the five performance goals in Strategic Goal 4 (80 percent) — above the 64 percent Department wide average. The Unemployment Insurance program did not achieve its goal; however, it reached two of its four indicator targets and improved results for a third. ESA's OWCP substantially achieved its goal by reaching eight of nine targets for Federal Employees' Compensation Act, Longshore and Harbor Workers' Compensation, Black Lung Benefits and Energy Employees Occupational Illness Compensation programs. ESA's OLMS substantially achieved its performance goal by reaching one target and improving results for the other two indicators. EBSA achieved its goal, reaching all three targets. PBGC substantially achieved its goal by reaching five of six targets and improving results for the sixth indicator.

A tally of goals achieved and targets reached, while providing an indication of whether DOL is on schedule with its plan, does not convey any actual performance information. To understand what was achieved in terms of benefits to the public, it is necessary to look at whether observed results indicate positive program impacts. Separate performance goal narratives in the Performance Section discuss significant trends and their implications.

The next table lists Program Year 2007 goals (July 1, 2007 — June 30, 2008) for which results will be reported in the FY 2008 Performance and Accountability Report. All track spending and performance on a cycle that lags the Federal fiscal year by nine months due to WIA forward-funding provisions.

07-1B (OJC)

Improve educational achievements of Job Corps students, and increase participation of Job Corps graduates in employment and education.

07-1C (ETA)

Increase placements and educational attainments of youth served through the WIA youth program.

07-1E (VETS)

Increase the employment outcomes for veterans who receive One Stop Career Center services and Homeless Veterans' Reintegration Program services.

07-2A (ETA)

Increase the employment, retention, and earnings of individuals registered under the Workforce Investment Act Adult program.

07-2B (ETA)

Increase the employment, retention, and earnings replacement of individuals registered under the Workforce Investment Act Dislocated Worker program.

07-2C (ETA)

Improve the outcomes for job seekers and employers who receive One Stop employment and workforce information services.

07-2D (ETA)

Increase accessibility of workforce information through the National Electronic Tools.

07-2E (ETA)

Assist older workers to participate in a demand-driven economy through the Senior Community Service Employment Program.

Program Assessment Rating Tool (PART) Reviews

The Program Assessment Rating Tool (PART) was developed to assess and improve programs' positive impact on outcomes that matter to the public. A review using the PART helps identify a program's strengths and weaknesses to inform funding and management decisions aimed at making the program more effective. Federal programs are scored on their purpose and design, strategic and performance planning, management, and results and accountability. Total scores determine ratings: Effective, Moderately Effective, Adequate, Ineffective, or Results Not Demonstrated. The final category can apply to a program with any score if performance goals and measures are not sufficiently outcome (results) oriented and/or the program does not have adequate data. Summaries of each program's assessment and improvement plan are published on ExpectMore.gov, a site dedicated to making meaningful information about Federal program performance more accessible to the public.

To date, 35 DOL programs have been assessed using the PART. One is rated Effective, ten Moderately Effective, fifteen Adequate, four Ineffective, and five Results Not Demonstrated. The table below lists the programs as they are identified in ExpectMore.gov. For cross-referencing with the performance section of this report, where Departmental performance goals apply, goal numbers are provided. The list is sorted first by the calendar year in which the review was conducted, then by total score.

PART assessments are useful because they lead to improvement plans intended to enhance accountability and performance. Improvements DOL has recently implemented include development of new outcome-oriented performance measures for two DOL programs currently rated Results Not Demonstrated (Job Training Apprenticeship and the Women's Bureau) and development and implementation of efficiency measures for each of the DOL programs assessed through the PART.

DOL PART Ratings chart

Text only

 

PART Scores and Ratings

Program/Goal

Year

Score

Rating

Pension Benefit Guaranty Corporation/07-4E

2007

70

Moderately Effective

Energy Employees Occupational Injury Compensation Program/07-4B

2007

61

Adequate

Dislocated Worker National Emergency Grants/07-2B

2007

56

Adequate

Occupational Safety and Health Administration/07-3A

2007

56

Adequate

Job Corps/06-1B

2007

55

Adequate

Trade Adjustment Assistance/07-2G

2007

49

Ineffective

Homeless Veterans' Reintegration Program/06-1E

2006

82

Moderately Effective

Wage and Hour Enforcement and Compliance Program/07-3C

2006

73

Moderately Effective

Office of the Solicitor

2006

71

Moderately Effective

Office of Disability Employment Policy/07-2I

2006

41

Results Not Demonstrated

Youthbuild

2006

37

Results Not Demonstrated

Veterans' Employment and Training State Grants/06-1E

2005

76

Moderately Effective

Work Incentive Grants

2005

57

Adequate

Office of Labor Management Standards/07-4C

2005

55

Adequate

Longshore and Harbor's Workers Compensation Program/07-4B

2005

54

Adequate

Workforce Investment Act - Adult Employment and Training/06-2A

2005

53

Adequate

Job Training Apprenticeship/07-1D

2005

45

Results Not Demonstrated

Women's Bureau

2005

41

Results Not Demonstrated

H-1B Work Visa for Specialty Occupations — Labor Condition Application/07-2H

2004

78

Moderately Effective

Employee Benefits Security Administration/07-4D

2004

71

Moderately Effective

Office of Federal Contract Compliance Programs/07-3D

2004

65

Adequate

Permanent Labor Certification/07-2H

2004

64

Adequate

Employment Service/06-2C

2004

56

Adequate

International Child Labor and Office of Foreign Relations

2004

51

Adequate

Workforce Investment Act — Native American Programs

2004

51

Adequate

Bureau of Labor Statistics/07-1A

2003

88

Effective

Unemployment Insurance Administration State Grants/07-4A

2003

74

Moderately Effective

Black Lung Benefits Program/07-4B

2003

71

Moderately Effective

Mine Safety and Health Administration/07-3B

2003

55

Adequate

Workforce Investment Act — Dislocated Worker Assistance/06-2B

2003

50

Adequate

Workforce Investment Act — Youth Activities/06-1C

2003

45

Ineffective

Workforce Investment Act — Migrant and Seasonal Farmworkers

2003

38

Ineffective

Prevailing Wage Determination Program/07-3C

2003

29

Results Not Demonstrated

Community Service Employment for Older Americans/06-2F

2003

28

Ineffective

Federal Employees' Compensation Act/07-4B

2002

75

Moderately Effective

Cost of Results

Total Net Cost6 of DOL activities for FY 2007 was $47.872 billion. An allocation based on the Department's goal structure indicates that the fourth strategic goal, Strengthened Economic Protections, is dominant — accounting for $38.495 billion, or 80 percent of the total. This figure consists in large part ($35.101 billion, or 91 percent) of mandatory benefit payments to unemployed workers or workers disabled as a result of work-related injuries or illnesses. The first goal, A Prepared Workforce, required $3.103 billion (6 percent) for employment-related services. The second goal, A Competitive Workforce, accounted for $5.027 billion, 11 percent of the total, which went toward job training programs and other services focused on maintaining America's position in a global market for labor. Approximately $1.237 billion (3 percent) went toward the third goal, Safe and Secure Workplaces, to fund direct services (such as salaries of Federal employees) aimed at improving safety and health in the workplace.

The table that spans the next several pages, DOL Program Net Costs, provides a comprehensive view of the cost information presented in the Performance Section, including footnotes that explain terms and methodology. It is important to note that while all net cost information in this report is derived from the same financial accounting system, DOLAR$, there are significant differences between statements in the Performance Section and in the Financial Section due to the Department's numerous forward-funded programs (those operating on a Program Year).

Where applicable, the program net cost statement includes a row labeled "Dollars not associated with indicators" to indicate costs that cannot be associated with the current set of performance indicators. Remaining difficulties may be resolved over time and lead to more complete allocations in future statements. However, it could also require a change in performance indicators that reduces the overall value of performance information. Frequently, costs for several indicators are intentionally combined by merging cells because program activities are not separable into categories associated with one or another of them (e.g., job training program common measures — entered employment, employment retention and average earnings).

As indicated in the preceding paragraph, several programs make mandatory benefit payments that account for the majority of their costs. Because performance indicators and the Department's managerial cost accounting system that generates this information are designed to inform analysis and decision-making related to discretionary budgets and program management, such payments are shown separately and not included in allocation cost models.

DOL's FY 2005 Performance and Accountability Report was the first to feature a statement of full costs at the performance goal level. Last year, allocation of costs reached the performance indicator level for some goals. This year, most DOL programs were able to associate costs with their performance indicators. This information is provided along with results in the tables at the beginning of each performance goal narrative in the Performance Section. Many of these narrative sections also include charts that display three years of net cost data at the performance goal level.

DOL Program Net Costs (Millions of Dollars)

Goal

FY 2005
PY 2004

FY 2006
PY 2005

FY 2007
PY 2006

Strategic Goal 1: A Prepared Workforce7

$3,211

$3,360

$3,103

Performance Goal 07-1A (BLS)

536

573

574

Percent of output, timeliness, accuracy, and long-term improvement targets achieved for labor force statistics

268

Percent of output, timeliness, accuracy, and long-term improvement targets achieved for prices and living conditions

198

Percent of output, timeliness, accuracy, and long-term improvement targets achieved for compensation and working conditions

95

Percent of output, timeliness, accuracy, and long-term improvement targets achieved for productivity and technology

12

Customer satisfaction with BLS products and services (e.g., the American Customer Satisfaction Index)

0

Cost per transaction of the Internet Data Collection Facility

1

Dollars not associated with indicators

573

0

Performance Goal 06-1B (Job Corps)

1,309

1,402

1,238

Percent of participants entering employment or enrolling in post-secondary education or advanced training/occupational skills training in the first quarter after exit

1,402

1,238

Percent of students who attain a GED, high school diploma or certificate by the end of the third quarter after exit

Percent of students who achieve literacy or numeracy gains of one Adult Basic Education (ABE) level

Performance Goal 06-1C (WIA Youth)

947

1,017

908

Percent of youth who enter employment or the military or enroll in post secondary education and/or advanced training/occupational skills training in the first quarter after exit

1,017

908

Percent of students who attain a GED, high school diploma, or certificate by the end of the third quarter after exit

Percent of students who achieve literacy or numeracy gains of one Adult Basic Education (ABE) level

Performance Goal 07-1D (Apprenticeship)

23

25

24

Percent of those employed nine months after registration as an apprentice

25

24

Average hourly wage gain for tracked entrants employed in the first quarter after registration and still employed nine months later

Performance Goal 06-1E (VETS Employment Services)

209

212

211

Percent of Veteran participants employed in the first quarter after exit

89

90

Percent of Veteran participants employed in the first quarter after program exit still employed in the second and third quarters after exit

Percent of Disabled Veteran participants employed in the first quarter after exit

89

90

Percent of Disabled Veteran participants employed in the first quarter after exit still employed in the second and third quarters after exit

Entered employment rate for homeless veterans participating in the HVRP

30

29

Employment retention rate after 6 months for homeless veteran HVRP participants

Dollars not associated with indicators

4

2

Other (Youth Offender Reintegration, Indian and Native American Youth Programs, etc.)

187

131

147

Strategic Goal 2: A Competitive Workforce8

$5,110

$5,064

$5,027

Performance Goal 06-2A (WIA Adult)

906

912

864

Percent of participants employed in the first quarter after exit

912

864

Percent of those employed in the first quarter after exit still employed in the second and third quarters after exit

Average earnings in the second and third quarters after exit

Performance Goal 06-2B (WIA Dislocated Worker)

1,472

1,543

1,443

Percent of participants employed in the first quarter after exit

1,543

1,443

Percent of those employed in the first quarter after program exit still employed in the second and third quarters after exit

Average earnings in the second and third quarters after exit

Performance Goal 06-2C (One-Stop Employment and Workforce Information Services)

831

884

815

Percent of participants employed in the first quarter after exit

884

815

Percent of those employed in the first quarter after program exit still employed in the second and third quarters after exit

Average earnings in the second and third quarters after exit

Performance Goal 06-2E (National Electronic Tools)

26

27

25

Number of page views on America's Career InfoNet

27

25

Number of O*NET site visits

Number of page views on Career Voyages

Performance Goal 06-2F (Senior Community Service Employment Program)9

426

432

443

Percent of participants employed in the first quarter after exit

432

443

Percent of participants employed in the first quarter after exit still employed in the second and third quarters after exit

Average earnings in the second and third quarters after exit

Performance Goal 07-2G (Trade Adjustment Assistance)

846

700

816

Percent of participants employed in the first quarter after exit

700

816

Percent of participants employed in first quarter after exit still employed in the second and third quarters after exit

Average earnings in the second and third quarters after exit

Performance Goal 07-2H (Foreign Labor Certification)

60

46

63

Percent of H-1B applications processed within seven days of the filing date for which no prevailing wage issues are identified

Percent of employer applications for permanent labor certification under the streamlined system that are resolved within six months of filing

Percent of accepted H-2A applications with no pending State actions processed within 15 days of receipt and 30 days from the date of need

Percent of H-2B applications processed within 60 days of receipt

Dollars not associated with indicators

46

63

Performance Goal 07-2I (ODEP)

52

50

34

Number of policy related documents

50

34

Number of formal agreements

Number of effective practices

Performance Goal 07-2K (ILAB)

74

95

101

Number of children prevented or withdrawn from child labor and provided education and/or training opportunities as a result of DOL-funded child labor elimination projects

95

101

Number of countries with increased capacities to address child labor as a result of DOL-funded child labor elimination projects

Other (Indian and Native American Adult Programs, National Farmworker Jobs Program, Work Incentive Grants, Transition Assistance Program, Pilots, Demonstrations, Research & Evaluations, Community Based Job Training Grants, H-1B Technical Skills Training, and other ILAB programs)

417

375

424

Strategic Goal 3: Safe and Secure Workplaces10

$1,147

$1,189

$1,237

Performance Goals 07-3A (OSHA)

515

519

547

Days away, restricted and transferred (DART) per 100 workers

519

547

Workplace fatalities per 100,000 workers for sectors covered by the OSH act

Performance Goal 07-3B (MSHA)

307

348

356

Mine industry fatalities per 200,000 hours worked

121

Mine industry injuries per 200,000 hours worked

107

Percent of respirable coal dust samples exceeding the applicable standards for designated occupations

50

Percent of silica dust samples taken with a result that is less than half of the exposure limit in metal and nonmetal mines

35

Percent of noise samples taken with a result that is less than half of the exposure limit in metal and nonmetal mines

18

Percent of noise exposures above the citation level in coal mines

25

Dollars not associated with indicators

348

Performance Goal 07-3C (Wage and Hour)

214

214

221

Number of workers for whom there is an agreement to pay or an agreement to remedy per 1,000 enforcement hours in complaint cases

112

123

Percent of prior violators who achieved and maintained FLSA compliance following a full FLSA investigation

27

30

Low wage workers assisted per 1,000 case hours

39

45

Number of wage determination data submission forms processed per 1000 hours

23

23

Dollars not associated with indicators

12

Performance Goal 07-3D (Federal Contractor Compliance)

99

97

103

Discrimination rate for audited Federal contractors

68

72

Compliance rate for all other EEO requirements

29

31

Performance Goal 07-3E (USERRA)

12

11

10

USERRA Progress Index (measures compliance and assistance performance)

11

10

Strategic Goal 4: Strengthened Economic Protections11

$40,597

$35,705

$38,495

Performance Goal 07-4A (Unemployment Insurance)

34,243

33,340

34,697

Mandated benefit payments

30,506

32,051

Percent of intrastate first payments made within 21 days

Percent of the amount of estimated detectable/recoverable overpayments that the States can establish for recovery

Percent of UI claimants who were reemployed by the end of the first quarter after the quarter in which they received their first payment

Percent of new employer liability determinations made within 90 days of the end of the first quarter in which liability occurred

Dollars not associated with indicators

2,834

2,645

Performance Goal 07-4B (Workers' compensation)

6,131

2,130

3,554

Mandated benefit payments

1,708

3,050

Lost production days rate (LPD per 100 employees) for FECA cases of the United States Postal Service

7

7

Lost production days rate (LPD per 100 employees) for FECA cases of All Other Government Agencies

7

7

Savings resulting from Periodic Roll Management case evaluations

20

34

The rate of change in the indexed cost per case of FECA cases receiving medical treatment remains below the nationwide health care cost trend

22

40

Targets for six communications performance areas

7

12

Average days required to resolve disputed issues in Longshore and Harbor Worker's Compensation Program contested cases

6

6

Average number of days to render a decision on a claim for Black Lung benefits

24

26

Average number of days to process initial claims for Energy Employees Occupational Illness benefits

155

185

Percent of Final Decisions in the Energy Program processed within 180 days (hearing cases) or 75 days (all other cases)

16

18

Percent of Part E claims backlog receiving initial decisions

Dollars not associated with indicators

159

172

Performance Goal 07-4C (Labor-Management Standards)

63

56

68

Percent of unions with fraud

18

35

Percent of unions in compliance with LMRDA standards for democratic union officer elections

11

13

Percent of union reports meeting standards of acceptability

8

16

Dollars not associated with indicators

20

4

Performance Goal 07-4D (EBSA)

160

179

176

Ratio of closed civil cases with corrected fiduciary violations to civil closed cases

103

Ratio of criminal cases accepted for prosecution to cases referred

Customer Satisfaction Index for employers, plan sponsors, employee representatives, trustees of multiemployer plans, and other plan professionals who have contacted EBSA for assistance

29

Applications to Voluntary Compliance programs

Dollars not associated with indicators

179

44

Costs Not Assigned to Goals

$11

$10

$10

Total12

$50,076

$45,328

$47,872

Reconciliation to the Consolidated Statements of Net Costs:

Costs for programs included above on a program year basis (July 1 to June 30)

$6,268

$6,659

$6,224

Costs for these same programs on a fiscal year basis (October 1 to September 30)

$6,556

$6,205

$6,643

Net Cost of Operations per Consolidated Statements of Net Costs

$50,364

$44,874

$48,291

Cost of Regulations Enforced by DOL

The Department enforces a broad range of regulations that provide for Safe and Secure Workplaces and for Strengthened Economic Protections.13 However, the cost data reported in the preceding table — and in the Financial Section of this report — do not include the costs (and benefits) to non-DOL entities of compliance with these regulations. To further improve transparency and accountability of our PAR, we are introducing data on the cost of our regulations this year, and plan to make additional information available in subsequent reports. Reporting costs at the performance indicator level took several years, and we expect this ambitious effort to take some time, as well.

In the Performance Section of the PAR, we quantify our results (or benefits) via outcome or output indicators that are seldom monetized, or valued in dollars. However, the DOL regulatory agencies do provide reports to OMB's Office of Information and Regulatory Affairs (OIRA), which produces the annual Report to Congress on the Costs and Benefits of Federal Regulations. Accounting in these reports relies on rigorous, defensible estimates of the monetary value of both the cost and benefit sides of the ledger. OIRA's report to Congress covers reviews of major final rules concluded in the preceding fiscal year.14 OSHA's final rule — issued in February 2006 — on Occupational Exposure to Hexavalent Chromium was the only DOL rule among the seven added to OIRA's 2007 Report to Congress.

Hexavalent chromium compounds include chromate pigments found in some dyes, paints, inks, and plastics, and can also be used in the production of stainless steel and as anticorrosive agents in paint, primers, and other surface coatings. Workers who breathe hexavalent chromium compounds at their jobs for many years may be at increased risk of developing lung cancer — and breathing high levels of hexavalent chromium can irritate or damage the nose, throat, and lungs. Annual costs of this regulation were estimated to range from $244 million to $253 million, and annual benefits were estimated at $36 million to $896 million (both cost and benefit data are expressed in 2001 dollars). OSHA's estimated compliance costs are based on the need to install engineering controls and to purchase and use supplemental respirators. Benefits are based on OSHA's estimate that the rule would prevent 40-145 fatal cancers annually and 5-20 non-fatal lung cancers per year. OSHA also quantified, but did not monetize, an estimated benefit of avoiding from 332-1,140 nasal perforations per year.

The only major final rule issued by a DOL agency in FY 2007 is MSHA's Mine Evacuation Rule. A summary of the costs and benefits of this rule appears in the narrative for Performance Goal 07-3B.

Image of workers waiting at the U.S. Employment Service Building

1See the DOL FY 2006-2011 Strategic Plan at http://www.dol.gov/_sec/stratplan/main.htm
2http://www.dol.gov/_sec/Budget2007/overview-pb.htm#app1
3This report includes performance goals from two different reporting periods. Workforce Investment Act (WIA) programs are forward-funded, meaning that their spending and performance goals are tracked on a cycle that lags the Federal fiscal year by nine months. This period is referred to as a Program Year (PY); such goals being reported on in this document cover July 1, 2006 to June 30, 2007 (PY 2006). PY 2007 goals will appear in the FY 2008 report.
4The first two digits of each goal number indicate the funding year. In this report, all "06" goals are reporting on the Program Year period defined above.
5Several Federal agencies, including the Departments of Labor, Education, Health and Human Services, Interior and Veterans Affairs, administer programs that share the goal of helping people find jobs. To inform comparative evaluations of effectiveness, the Administration worked with these agencies to develop outcome measures that apply to their diverse methods and target populations. While these measures have evolved over the last several years, they have consistently focused on participants' entered employment and employment retention rates, and earnings.
6Net Cost reflects the full cost of each program as assigned by DOL entities to the Department's outcome goals less any exchange revenue earned. Full cost consists of (a) both direct and indirect costs, and (b) the costs of identifiable supporting services provided by other segments within the reporting entity and by other reporting entities.
7Strategic goal subtotals reported in DOL's FY 2006 Performance and Accountability Report are not valid for comparison to FY 2007 due to restructuring pursuant to the FY 2006-2011 Strategic Plan. Most performance goals moved, and costs for FY 2005 and FY 2006 have been restated to facilitate comparison. In addition, VETS' costs for FY 2005 and FY 2006 were restated to reflect a more accurate allocation; totals for Strategic Goals 1, 2, and 3 were affected.
8Costs associated with Performance Goal 06-2D (Community Based Job Training Grants) are not listed separately because the goal was omitted from this report due to inadequate performance data; they are included in Goal 2 Other. Costs associated with Performance Goal 07-2J (OASP) are included in costs allocated to other performance goals.
9This is a new goal that was listed with Other in the FY 2005 table.
10In FY 2005, OSHA and MSHA shared performance goals. Amounts shown for Performance Goals 07-3A and 07-3B for that year represent agencies' shares of the total costs.
11Costs for Performance Goal 07-4E (PBGC) are not referenced because the Corporation's financial statements are not part of the Department's consolidated statements. PBGC's financial statements can be found in their Annual Management Report at http://www.pbgc.gov/docs/PBGCAMR.pdf.
12This total does not match total net costs in the Consolidated Statements of Net Cost as certain costs in this table are presented on a program year basis. All costs in the Consolidated Statements of Net Cost are on a fiscal year basis.
13Occupational Safety and Health Administration (OSHA), Mine Safety and Health Administration (MSHA), Employment Standards Administration (ESA), Employment Training Administration (ETA), and Employee Benefits Security Administration (EBSA).
14Major rules include those likely to result in (A) an annual effect on the economy of $100 million or more; (B) a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions; or (C) significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of United States-based enterprises to compete with foreign-based enterprises in domestic and export markets — per the Small Business Regulatory Enforcement Fairness Act of 1996 — or that may result in the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more (adjusted annually for inflation) in any one year — under the Unfunded Mandates Reform Act of 1995 — or that may have an annual effect on the economy of $100 million or more or adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, or tribal governments or communities — per Executive Order 12866.

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