|
|
|
 |
www.dol.gov
|
 |
 |
 |
| January 6, 2009 DOL Home > About DOL > FY 2008 Budget > Budget Overview |
|
FY 2008 Budget Overview
Introduction The President's FY 2008 request for the Department of Labor is $10.6 billion in discretionary budget authority and 16,869 full-time equivalent (FTE) employees. The FY 2008 Budget will allow the Department to continue its record-setting enforcement of worker protection laws and will give workers more control over their own training and career decisions through innovative and flexible Career Advancement Accounts. FY 2008 Priorities The FY 2008 Budget for the Department of Labor is focused on securing our workers' future and supports three key priorities:
Through achieving strong results in its enforcement programs, the Department continues to make a positive difference in the day-to-day lives of America's working families. The FY 2008 Budget includes $1.5 billion for the Department's labor law enforcement programs, an increase of 9 percent above the FY 2007 level. In FY 2008, the Department will spend $803.8 million to make American workers safer and healthier. The Budget builds on the MINER Act of 2006 and includes an increase of $16.6 million to retain the 170 coal mine safety and health enforcement personnel that were added in FY 2006 and 2007, as well as the funding necessary to implement the goals set by Congress in this important legislation. The FY 2008 Budget protects workers' pay, benefits and pensions and supports the implementation of the Pension Protection Act of 2006, the most sweeping reform of the pension system in over 30 years. The Budget builds upon these improvements with further premium reforms to address the $19 billion gap between PBGC's liabilities and its assets. The request also includes an increase of $17 million to protect the wages, working conditions, and workplace standards of some of America's most vulnerable workers. As the nation transitions to a knowledge-based economy, one of the Department's top priorities is to increase the competitiveness of the American workforce. The 2008 Budget proposes significant reforms to DOL's training and employment grant programs to train more workers while reducing overhead and administrative complexity. The reforms will consolidate four similar programs into a single $3,4 billion funding stream that will be allocated to the States. States would be limited in the use of funds for overhead and administrative costs and be required to use a significant share of the funding to finance Career Advancement Accounts--self-directed accounts that would enable current and future workers to gain the skills needed to successfully enter, navigate and advance in the 21st century job market. The Budget continues funding, at $150 million, for the President's Community-Based Job Training initiative to take advantage of the strong, natural links between community and technical colleges, local labor markets, and employers. FY 2006 Results The Department is committed to maximizing its mission through management excellence. DOL continues to achieve an all-green scorecard on the five government-wide initiatives of the President's Management Agenda. In 2006, DOL received the President's Quality Award for Management Excellence in Expanded Electronic Government — which is the highest award given to executive branch agencies for performance on the government-wide management initiative for Expanded Electronic Government as outlined in the President's Management Agenda. The Department has a strong record of accomplishment on behalf of America's workforce. For example, in FY 2006 the Employee Benefits Security Administration (EBSA) achieved monetary results that were 94 percent higher than they were in 2001. In 2006, the Department recovered more than $171.9 million in back wages for over 246,000 employees. This represents a 30 percent increase since 2001. The commitment of the Department of Labor to workplace safety and health is demonstrated by the fact that workplace fatalities and injuries are declining at the same time that the number of Americans working continues to increase. Since 2001, the Occupational Safety and Health Administration (OSHA) has implemented a balanced approach consisting of aggressive enforcement, cooperative programs, outreach, education and compliance assistance which has contributed to a 13 percent reduction in overall occupational illness and injury rates. During this same period, the overall fatality rate has declined by 7 percent, and has fallen by 18 percent among Hispanic employees. Employment and Training Administration Budgetary Resources
1 TES includes advance appropriations of $2.463 billion in FY 2007 appropriated in FY 2006 for obligation in FY 2007, and $2.463 billion in FY 2008 appropriated in FY 2007 for obligation in FY 2008. In addition, the FY 2007 level is made comparable to FY 2008 for the Career Advancement Accounts. The Employment and Training Administration's (ETA) mission is to contribute to the more efficient functioning of the U.S. labor market by providing high quality job training; employment services; labor market information; and temporary wage replacement. The 2008 Budget reflects the President's goal of ensuring that workers live more productive and prosperous lives and helping businesses to be more competitive in the global economy. This Budget provides $43.4 billion for the Department of Labor's (DOL) Employment and Training Administration, which is $1.5 billion above 2007, largely because of the expectation of increased costs of unemployment benefits due to growth of the labor force, average weekly benefit payments, and the unemployment rate.
Meeting the Workforce Challenges of the 21st Century As our nation's economy, industries, and businesses transform to meet the challenges of the 21st century, it is also necessary that our government systems and structures evolve to support our economic growth and job creation. This includes the workforce investment system, which must change its design and service delivery methods to reflect regional economic growth patterns and meet the changing needs of workers and businesses. Over the past few years ETA has taken steps to begin this transformation through the creation of a demand-driven system that helps job seekers achieve self-sufficiency and promotes business prosperity. ETA has implemented the President's High Growth Job Training Initiative (HGJTI) to prepare workers to take advantage of new and increasing job opportunities in high growth industries and sectors in the American economy. Building on the HGJTI, Community-Based Job Training Grants aim to strengthen the role of community and technical colleges in workforce investment. ETA's FY 2008 Budget request includes funding of $150 million for these grants. A related initiative, Workforce Innovation in Regional Economic Development or WIRED, provides financial and expert assistance to transform regional economies by engaging community partners to implement long-term strategic plans that prepare workers for high-skill, high-wage opportunities in the coming years. ETA has provided financial and expert assistance to 26 regions across the country through the WIRED Initiative. For FY 2008, the President again proposes significant reforms to DOL's job training and employment services grant programs to reduce overhead and administrative complexity and train more workers. Funds previously appropriated for the WIA Adult, WIA Dislocated Worker, and WIA Youth Programs and the Employment Service would be allocated to states as a single funding stream. States would be limited in the use of funds for overhead and administrative costs and be required to use a significant share of the funding to finance Career Advancement Accounts (CAA). CAAs. CAAs are self-directed accounts that would enable current and future workers to gain the skills needed to successfully enter, navigate and advance in the 21st century job market. Individuals would use their accounts to pay for expenses directly related to education and training. This Budget also addresses employers' urgent and specialized needs for employees when domestic workers are not available by strengthening the Foreign Labor Certification programs. The FY 2008 budget includes a proposal for a financing initiative that would authorize cost-based user fees for the Permanent Labor Certification Program. A fee-based program would be a major step toward assuring that the funds available match the workload on hand. Additionally, this Budget proposes to consolidate the Prisoner Reentry Initiative and Responsible Reintegration of Youthful Offenders into a single, consolidated program, Reintegration of Ex-Offenders. The initiative helps previously incarcerated adults and youth find jobs, education and training, transitional housing and mentoring when they leave prison and return to their communities. The 2008 Budget provides a total of $39.6 million in DOL for the new Reintegration of Ex- Offenders program. $20 million of this amount will be targeted towards programs with demonstrated outcomes in addressing employment and education issues of youth. Strengthening the Integrity of the Unemployment Insurance System Building on reforms proposed by the Administration in the past to fortify the Unemployment Insurance (UI) system and reduce erroneous UI payments, the Budget requests an additional $40 million for in-person reemployment and eligibility interviews with UI beneficiaries. The Budget also includes several legislative proposals to reduce overpayments, increase overpayment recoveries, strengthen employer compliance and tax collection activities, and promote early reemployment of UI beneficiaries. Employment and Training Programs Budgetary Resources
1 The management of Job Corps funding, appropriated to the Employment and Training Administration (ETA) in FY 2006, was transferred to the Office of the Secretary (OSEC) via an allotment process. This funding mechanism continues in FY 2007 since a regular 2007 appropriation has not been enacted for this account at the time the budget was prepared. The FY 2008 budget proposes to transfer Job Corps program and administrative funding back to ETA. The FY 2008 Budget request for Employment and Training Programs is $5.283 billion. WIA/ES Job Training Reform
A total of $3.413 billion is requested for the proposed consolidated job training grant, which will be used to finance core services and Career Advancement Accounts (CAA). CAAs are self-directed accounts that workers entering the workforce or transitioning between jobs and careers, or incumbent workers in need of new skills to remain employed, can use to purchase education and training. Funds previously appropriated for the WIA Adult, WIA Dislocated Worker, and WIA Youth Programs and the Employment Service would be allocated to states as a single funding stream, of which a significant share will be dedicated to CAAs. With more clearly defined administrative costs and more resources going directly to training, this proposal will significantly increase the number of workers trained under the current workforce investment system. A portion of these funds would also be used by states to provide basic employment services to job seekers and employers. Included in the proposed consolidated grant program is the provision of local labor market information formerly funded in the One-Stop request in SUIESO and the administration of the Work Opportunity and Welfare-to-Work Tax Credits that in prior years were included in the Employment Service National Activities request in SUIESO. The new program includes formula grants and a National Reserve, and will give States and the Secretary of Labor greater ability to target resources where needed, facilitate coordination, and eliminate duplication in the provision of services to adults, dislocated workers, and youth. With the budget authority requested, it is expected that over 600,000 workers will receive Career Advancement Accounts and an additional 12,660,000 individuals will receive other employment services. Community-Based Job Training Grants DOL requests $150 million for the President's Community-Based Job Training Grant Initiative to provide competitive grants to community and technical colleges so that they can increase training capacity and train more workers. Because of their close connection to local labor markets, community and technical colleges are well positioned to prepare workers for high-demand occupations such as health care and advanced manufacturing. While community colleges are the main target for these grants, grant recipients will be required to have strategic partnerships with the public workforce investment system and business and industry. Job Corps A total of $1.522 billion is requested to improve the educational achievement of Job Corps students, and increase participation of Job Corps graduates in employment and education. Job Corps will provide intensive skill training, academic education, and support to an estimated 56,648 new participants at 123 centers in FY 2008. For FY 2008, 87 percent of Job Corps graduates will enter employment or enroll in post-secondary education, the military, or advanced training or occupational skills training in the first quarter after exit from the program; 66 percent of students will attain a GED, high school diploma, or certificate by the end of the third quarter after exit; 59 percent of students will achieve literacy or numeracy gains of one Adult Basic Education level, approximately equivalent to two grade levels; and the average cost per participant will be no higher than $26,874. Other Employment and Training The FY 2008 Budget requests $197.4 million for Other Employment and Training Programs, $610.7 million below FY 2007. The net change is largely due to the proposals to eliminate the Migrant and Seasonal Farmworker program and Work Incentive Grants; a decrease in WIA National Activities; and a reduction for Community Service Employment for Older Americans due new cost efficiencies and ineffective program performance. In the FY 2008, the Department of Labor proposes merging the funding for the Responsible Reintegration of Youthful Offenders and Prisoner Reentry Initiative into a single, consolidated program. The new Reintegration of Ex-Offenders program will eliminate the overlap that existed between these two prior programs. At the request level of $39.6 million, Reintegration of Ex-Offenders would focus intensively on the adoption of practices developed through the two programs that have shown great promise in boosting employment and reducing recidivism among adult and youth offenders most at-risk of recidivism. The FY 2008 Budget includes $16.9 million for performance and electronic tools that will be important resources in helping individuals use their Career Advancement Accounts and maintaining an outcome-based system. In FY 2008, $12.7 million is requested for Employment Service National Activities Foreign Labor Certification activity. In FY 2008, it is expected that the Foreign Labor program will process 100 percent of H-1B applications within seven days of the filing date in cases where no prevailing wage issues are identified; process 96 percent of accepted H-2A applications within 15 business days of receipt and 30 days from the date of need, where there are no pending State actions; and process 91 percent of H-2B applications within 60 days of receipt. WIA National Programs are funded at $65 million in FY 2008, $171.9 million below FY 2007. This decrease is primarily the result of the elimination of the Migrant and Seasonal Farmworker Program and decreases in funding for pilots, demonstrations, research, and technical assistance in WIA National Activities. The Migrant and Seasonal Farmworker program is ineffective and duplicative of other Federal programs. Participants could be better served through the nationwide system of One-Stop Career Centers and other Federal activities. ETA has taken several steps to better integrate farmworkers into the broader workforce investment system. In FY 2008, $350.0 million is requested for the Community Service Employment for Older Americans, $82.3 million less than provided in FY 2007. This program was rated "Ineffective" when assessed by the Department of Labor and the Office of Management and Budget, largely due to inadequate competition in the grants process, lack of data on program performance and impact, and duplication with other federal programs. In addition, the Older Americans Act of 2006 will make the program more cost efficient. Finally, the FY 2008 Budget includes $50.0 million for the Youthbuild program. Youthbuild provides unemployed young people age 16-24 with work experience combined with community service while building affordable housing for homeless and low-income families in their own neighborhood. ETA anticipates serving 3,268 youth with Youthbuild grants in FY 2008. Employment and Training Participant Data
Selected ETA Performance Goals and Indicators
ETA Income Maintenance Budget Authority
1 Non-add, see Black Lung Disability Trust Fund (BLDTF) section. Includes a $2.315 billion Black Lung Refinancing proposal in FY 2008. The FY 2008 request for Income Maintenance includes $37.6 billion in spending, largely from the Unemployment Trust Fund. Of the FY 2008 Income Maintenance total, $2.6 billion is the discretionary amount requested for grants for State administration of the Unemployment Insurance (UI) Program. In addition, $888.7 million in general funds is being requested for the Federal Unemployment Benefits and Allowances (FUBA) account. The FY 2008 request for Advances to the Unemployment Trust Fund (UTF) and Other Funds (Advances) account is $2.8 billion, which is for the Black Lung Disability Trust Fund.
The balance of Income Maintenance ($34.2 billion) includes State unemployment benefits payments to claimants, and benefits paid to ex-service members and former Federal workers. The FY 2008 Budget includes two new initiatives to strengthen the UI program: (1) $40 million for in-person interviews with UI beneficiaries in One-Stop Career Centers to aid work search efforts and review compliance with eligibility requirements; and (2) legislative proposals that will assist in reducing overpayments, increasing overpayment recoveries, strengthening employer compliance/tax collection activities, and promoting early reemployment of UI beneficiaries. Unemployment Insurance Program Under the State Unemployment Insurance and Employment Service Operations (SUIESO) account, discretionary funds are provided to the States for the administration of the Unemployment Insurance (UI) and Employment Service (ES) programs. The ES program is discussed in the Employment and Training Programs section of this publication. For UI, the FY 2008 budget includes a request for $2.6 billion, which is $53.5 million more than the FY 2007 level. The FY 2008 funding level requested for the UI program will provide for approximately 34,166 State staff years. State staff will handle 7.4 million employer tax accounts, 17.7 million initial unemployment claims, a total of 134.7 million weeks claimed. In addition, to finance any workload increase over an Average Weekly Insured Unemployment (AWIU) rate of 2.629 million, $28.6 million shall be available for every 100,000 increase over the AWIU, with a pro rata amount for any increase less than 100,000. The UI request also includes $10.5 million for National activities, which are interstate or multi-state in nature. Federal Unemployment Benefits and Allowances (FUBA) This general funds appropriation is for the Trade Adjustment Assistance program. The $888.7 million request for FY 2008 covers payments of weekly trade readjustment allowances, training, wage insurance, job search and relocation costs of workers adversely affected by increased imports or shifts in production to other countries. Advances to the Unemployment Trust Fund and Other Funds This appropriation provides general fund advances to several trust and general fund accounts. In FY 2008 the requested amount includes a one-time $2.32 billion prepayment premium associated with the legislative proposal to refinance the Black Lung Disability Trust Fund debt. Unemployment Trust Fund Benefits The Unemployment Trust Fund includes amounts for both the administration of Federal and State unemployment compensation, and for unemployment compensation benefits which provide income support to those temporarily out of work while they search for employment. This budget proposal is based on estimates that the insured unemployment rate for FY 2008 will be 1.9 percent. This translates to an average of approximately 2.3 million beneficiaries each week receiving unemployment assistance under Federal and State programs in FY 2008. The average weekly benefit amount is estimated at $287 in FY 2008, while the average number of weeks of benefits per recipient is expected to be 15.1 weeks. The total amount paid for unemployment compensation benefits from the Trust Fund is estimated at $34.2 billion. Selected ETA Performance Goal and Indicators for Income Maintenance
ETA Program Administration Budget Authority/Trust Fund Transfers
ETA's Program Administration account provides for Federal administration of its employment and training programs. These programs include those authorized by the Workforce Investment Act of 1998 (WIA) for youth (including Job Corps), adults, dislocated workers, and special targeted populations; Trade Adjustment Assistance authorized by the Trade Act of 1974, as amended; Employment Services authorized by the Wagner-Peyser Act; Unemployment Insurance authorized by the Social Security Act; and Apprenticeship Programs authorized by the National Apprenticeship Act.
The FY 2008 Budget provides 1,180 full-time equivalent (FTE) staff, 4 reimbursable staff, and $216.2 million for Program Administration. In addition, ETA intends to seek legislation which would amend the Immigration and Nationality Act to establish a fee structure for the Permanent Labor Certification Program beginning in FY 2007. The legislation would support a full cost recovery of expenses associated with the administration of the program, including both direct and indirect costs. A separate account would be established within the Treasury Department and proceeds would be utilized exclusively for the identified program and would be available until exhausted. Adult Services The Adult Services activity provides staff for leadership, policy direction, and administration for a decentralized system of grants to States and localities for job training and employment assistance for low-income and dislocated workers and those with significant barriers to employment including migrant and seasonal farmworkers, older workers, individuals with disabilities, homeless individuals, and individuals with limited English proficiency. This activity also provides staff for the settlement of trade adjustment assistance petitions and activities related to program administration. Youth Services Youth Services provides staff for leadership, policy direction, and administration for federally funded youth programs, including Job Corps and Youthbuild. Workforce Security Under this activity, the staff provides leadership and policy direction for the administration of Unemployment Insurance programs in each State, National Electronic Tools, Work Opportunity Tax Credits, and foreign labor certification activities. Apprenticeship Training, Employer and Labor Services Funding for this activity finances staff who promote and provide leadership and policy direction for the administration of apprenticeship as a method of skill acquisition through a Federal-State apprenticeship structure. Employer and labor services facilitate the understanding and responsiveness of workforce investment systems to the training needs of employers and the interest of labor organizations in training programs. ETA proposes to continue to examine new approaches to apprenticeship training that focus on linking apprenticeship with other workforce development and educational systems, expanding the credentialing process, strengthening industry involvement and increasing options for career development within the apprenticeship system. Executive Direction The Executive Direction staff provides leadership and policy direction for ETA training and employment programs and for related program operations activities, including research, evaluations, demonstrations, program management and legislative relations. Employee Benefits Security Administration Budget Authority
The Employee Benefits Security Administration (EBSA) is responsible for the administration and enforcement of Title I of the Employee Retirement Income Security Act of 1974 (ERISA) and the Federal Employees' Retirement System Act of 1986 (FERSA). The primary mission of EBSA is to protect the pension, health and other benefits of participants in private sector employee benefit plans. EBSA directly affects the livelihood of over 150 million people who participate in ERISA-covered plans, and protects the U.S. economy's single largest source of capital for investment -- pension funds. EBSA promotes a secure retirement and greater access to health benefits for the nation's workforce through a combination of legislative changes, aggressive enforcement and compliance assistance. In FY 2008, the total request for this program is $147.4 million and 855 FTE and provides additional resources for the ERISA Filing and Acceptance System (EFAST). Enforcement and Participant Assistance This activity conducts criminal and civil investigations, performs reviews to ensure compliance with the fiduciary provisions of ERISA and FERSA, and assures compliance with applicable reporting requirements, as well as accounting, auditing and actuarial standards. The FY 2008 estimate for this activity includes a program increase of $5.5 million to develop a new EFAST system that will improve processing performance levels to better protect employee pension and health benefits1. In FY 2008, the requested budget for this activity is $123.2 million and 738 FTE. EBSA programs have been evaluated with the Program Assessment Rating Tool (PART). As a result of PART recommendations, EBSA has adopted long-term and ambitious enforcement goals that ensured alignment with the President's Management Agenda. Policy and Compliance Assistance This activity conducts policy, research and legislative analyses on pension, health and other employee benefit issues. It provides compliance assistance, especially to employers and plan officials, writes regulations and interpretations, and issues individual and class exemptions from regulations. In FY 2008, the budget request for this activity totals $18.3 million and 92 FTE. Executive Leadership, Program Oversight and Administration This activity provides leadership, policy direction, strategic planning, and administrative guidance in the management of employee benefits security programs. It provides analytical and administrative support for financial and human capital management and other administrative functions related to coordination and implementation of government-wide management initiatives. This activity also manages the technical program training for enforcement, policy, legislative and regulatory functions. In FY 2008, the budget request for this activity totals $5.9 million and 25 FTE. 1 This program increase is based on the assumption that the EFAST2 project will receive no funding in 2007; if the program does receive funding, the amount will be reduced commensurately. Selected EBSA Performance Goals and Indicators
Pension Benefit Guaranty Corporation Budget Authority
The Pension Benefit Guaranty Corporation (PBGC) is a wholly-owned Government Corporation created to insure benefits promised under private defined pension plans in the event the sponsor can no longer maintain the plan. The Corporation is guided by a board of directors chaired by the Secretary of Labor. Currently, PBGC protects the pension benefits of approximately 44 million workers and retirees in traditional (defined-benefit) pension plans. Single Employer Benefit Payments
Monthly pension payments are made to plan participants and other beneficiaries of plans trusteed by PBGC. The FY 2008 request totals $4.8 billion for this activity. Multi-Employer Financial Assistance Financial assistance provides for repayable loans to insolvent multi-employer sponsored plans to enable these plans to continue paying benefits if a series of prescribed steps is taken to place the plan on a sound financial basis. The FY 2008 request totals $106 million for this activity. Pension Insurance Pension Insurance includes pension plan premium collections, premium investments, monitoring, negotiating, and litigating protections for participants in endangered plans and pension plan promotion activities. The FY 2008 request totals $74.7 million and 211 FTE for this activity. The FY 2008 Budget reflects the President's continued commitment to restoring the solvency of the pension system by proposing to adjust insurance premiums paid by underfunded pension plans. PBGC premiums are currently far lower than what a private financial institution would charge for insuring the same risk. These reforms will improve PBGC's financial condition and safeguard the future benefits of American workers. Pension Plan Terminations Pension Plan Terminations include all activities related to plan termination and trusteeship; plan asset management, investment and accounting; and administration services. The FY 2008 request totals $205.1 million and 335 FTE for this activity. Operational Support Operational support includes facilities, information technology infrastructure, and other shared program support (budget, procurement, accounting, etc.) for both PBGC's insurance and plan termination activities. The FY 2008 request totals $131.2 million and 324 FTE for this activity. Selected PBGC Performance Goals and Indicators Implement premium reforms in the Pension Protection Act (PPA) and Deficit Reduction Action (DRA) of 2005, including:
Customer Satisfaction score for premium filers — Target 68 Customer Satisfaction score for responding to trusteed plan participant callers — Target 80 Customer Satisfaction score for retirees receiving benefits from PBGC — Target 85 Employment Standards Administration Budget Authority
* This includes an estimate of $4.7 million in H-1B L Fraud fee revenue for ESA in FY 2007 and FY 2008,
authorized by the H-1B Visa Reform Act of 2004, P.L. 108-447 (December 8, 2004). In total, funds for the Employment Standards Administration (ESA) in FY 2008 will increase by $208.0 million or about 6.3 percent compared with FY 2007 due mostly to an estimated increase in EEOICPA benefits. Funding will finance initiatives to improve Wage and Hour enforcement and compliance, and enhance enforcement and outreach assistance under the Labor-Management Reporting and Disclosure Act. The budget re-proposes legislative changes to improve the Federal Employees' Compensation Act (FECA), including changes that allow DOL to enhance incentives for return to work; improve program fairness; and speed claims processing. These proposals would result in 10-year cost savings to the Government of more than $608 million. ESA's request also includes a legislative proposal to restructure the Black Lung Disability Trust Fund debt (currently over $9 billion) to ensure the Trust Fund's long-term solvency and a re-proposal of an increase in civil monetary penalties for employers who willfully violate child labor laws. In support of the Department's performance goal of ensuring a competitive workforce by promoting family-friendly job flexibility and minimizing unnecessary regulatory burdens while effectively protecting workers, the Wage and Hour Division (WHD) will continue to review and update its significant regulations to reflect workplace changes over the last 20 years and in anticipation of future workplace evolutions. ESA Staffing Budget Authority/Trust Fund Transfers
* This includes an estimate of $4.7 million in H-1B L Fraud fee revenue for ESA in FY 2007 and FY 2008, authorized by the H-1B Visa Reform Act of 2004, P.L. 108-447 (December 8, 2004). ESA administers and enforces a variety of laws designed to enhance the welfare and protect the rights of American workers. The budget request to conduct these programs in FY 2008 is $704.2 million and 4,082 FTE. Of this amount, $485.1 million and 3,474 FTE is in the Salaries and Expenses account. In addition $52.3 million and 127 FTE is for the Fair Share portion of the Special Benefits account, 275 FTE and $104.7 million is for the administrative expenses of the Energy Employees Occupational Illness Compensation Program Act (EEOICPA), Part B; and $56.9 million and 189 FTE is for the administrative expenses of EEOICPA, Part E; and $5.2 million and 17 FTE is for Part B of the Black Lung Benefits program. In total, this is an increase of $36.7 million and an increase of 193 FTE over FY 2007. ESA's budget request includes legislative proposals to promote benefit equity and enhance incentives for return to work. Specifically, the Budget proposes to amend FECA to move the waiting period before the continuation-of-pay period, and conform the benefits of future retirement-age beneficiaries to a benefit level typical to what they would receive under Federal retirement programs, and make a number of other changes to improve and update the FECA program.
Wage and Hour Standards The FY 2008 budget request for the Wage and Hour Division is $187.1 million and 1,336 FTE. The Wage and Hour Division is responsible for the administration and enforcement of a wide range of laws which collectively cover virtually all private and state and local government employment. Wage and Hour Division activities include obtaining compliance with the minimum wage, overtime, child labor, and other employment standards under the Fair Labor Standards Act, Migrant and Seasonal Agricultural Worker Protection Act, certain provisions of the Immigration and Nationality Act, Employee Polygraph Protection Act, the Immigration Nursing Relief Act, the wage garnishment provisions of the Consumer Credit Protection Act, and the Family and Medical Leave Act. Prevailing wages are determined and employment standards enforced under various government contract wage standards. Wage and Hour will continue to use its multi-pronged approach of strong enforcement, compliance assistance partnerships, to further its goals to promote high quality workplaces, a secure workforce and increase customer satisfaction. The budget increase of $16.7 million over FY 2007 is directed to finance new investigators. It will also support Wage and Hour's Youth Rules initiative to enable the expansion of its low-wage industry enforcement to protect vulnerable workers; and help Wage and Hour increase technical assistance and education to encourage voluntary compliance with the laws it administers. Contractor EEO Enforcement The FY 2008 budget request for the Office of Federal Contract Compliance Programs (OFCCP) is $84.2 million and 625 FTE. OFCCP is responsible for ensuring equal employment opportunity and non-discrimination in employment based on race, sex, religion, color, national origin, disability or veteran status for businesses contracting with the Federal government. These requirements are contained in Executive Order 11246, as amended; Section 503 of the Rehabilitation Act of 1973, as amended; 38 USC 4212; and Section 402 of the Vietnam Era Veterans' Readjustment Assistance Act of 1974, as amended. OFCCP also shares authority with the Equal Employment Opportunity Commission (EEOC) in the enforcement of Title I of the Americans with Disabilities Act of 1990. The program enforces its mandate by detecting and preventing systemic discrimination and by providing relevant and effective compliance assistance programs. Emphasis is placed on a balanced approach of compliance evaluations, complaint investigations, compliance assistance and, when necessary, strong enforcement. Federal Programs for Workers' Compensation The FY 2008 budget request for the Office of Workers' Compensation Programs (OWCP) is $138.9 million and 1,051 FTE for the Federal Employees' Compensation Act (FECA), Longshore and Harbor Workers' Compensation, and Black Lung Benefits programs. Other funding for OWCP includes $52.3 million and 127 FTE in the Special Benefits account using "Fair Share" funds. These funds are used for the operation and enhancement of OWCP's automated data processing, as well as for periodic roll review activities. The 2008 request for Fair Share includes funding for the centralized medical bill processing and central mail processing services. OWCP also requests $104.7 million and 275 FTE to administer the Energy Employees Occupational Illness Compensation Program Act (EEOICPA) Part B program and $56.9 million and 189 FTE for the Part E program, which was established in FY 2005. OWCP administers disability compensation programs which mitigate hardship imposed by work-related injuries or disease through the provision of wage replacement and cash benefits, medical treatment, vocational rehabilitation, and other benefits to certain workers (or their dependents or survivors). The FECA program provides income and medical benefits to civilian employees of the Federal government injured at work and to certain other designated groups. The Longshore and Harbor Workers' Compensation Act program provides similar protection to private sector workers in certain maritime and related employment. The Black Lung Benefits program provides wage replacement and medical benefits to the Nation's coal miners suffering from pneumoconiosis and cash benefits to their eligible survivors. Part B of EEOICPA provides compensation and medical benefits to employees or survivors of employees of the Department of Energy (DOE) and its contractors who suffer from a radiation-related cancer, beryllium-related disease, or chronic silicosis as a result of their work in nuclear weapons production or testing. In October 2004, Congress amended EEOICPA to create Part E. The amendment expanded eligibility to receive Federal compensation and medical benefits to Department of Energy contractors and certain uranium workers who sustained health impairment due to exposure to any toxic substance. The amendment also authorizes payment from the EEOICP Fund for benefits awarded by the Department of Justice under section 5 of the Radiation Exposure Compensation Act. The 2008 budget includes two legislative proposals affecting OWCP programs. The first is a proposal to reform FECA to update its benefit structure, address retirement equity issues, and strengthen return-to-work incentives. This proposal is expected to generate Government-wide savings of more than $608 million over ten years. The second is a proposal to restructure the debt of the Black Lung Disability Trust Fund (BLDTF), a debt that is now more than $9 billion. This proposal would restructure the outstanding BLDTF debt, extend at current rates BLDTF excise taxes, which are set to decline in January 2014, and provide an intergovernmental transfer of $2.3 to compensate the General Fund for forgone interest. Office of Labor-Management Standards The FY 2008 budget request for the Office of Labor-Management Standards (OLMS) is $56.9 million and 369 FTE. OLMS enforces provisions of Labor-Management Reporting and Disclosure Act that require reports from unions and others and establishes certain standards for union democracy and financial integrity. OLMS conducts criminal investigations (primarily union funds embezzlement) and investigative audits of unions; conducts civil investigations (primarily concerning union officer elections); supervises remedial union officer elections, as required; administers statutory reporting requirements; and provides for public disclosure of filed reports. The budget increase of $11.2 million over FY 2007 supports an effective program of union audits and union financial integrity protections and implementation of a program of union advisory services as part of OLMS' compliance assistance activities. Through its Division of Statutory Programs, OLMS also certifies protective arrangements for transit employees when Federal transit grant funds are used to acquire, improve, or operate a transit system. Program Direction and Support The FY 2008 budget request for Program Direction and Support is $18.0 million and 93 FTE. This activity supports ESA's operating programs and ensures effective management by providing planning, personnel management, financial management, Federal/state liaison programs, management systems implementation, and data processing. Selected ESA Performance Goals and Indicators
ESA Income Maintenance Programs Budget Authority/Trust Fund Transfers
The budget includes a total of $2,828.9 billion for income maintenance programs in ESA in FY 2008, an increase of $171.3 million over FY 2007. The Budget re-proposes FECA legislative reforms, to improve program fairness, update benefits, and ensure return to work incentives; and a legislative proposal to restore the solvency of the Black Lung Disability Trust Fund program by restructuring the Fund's large and growing debt. Special Benefits The request of $203.0 million for Special Benefits in FY 2008 includes $200.0 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 $52.3 million from Fair Share funding to finance 127 FTE and automated systems for administration of the FECA program, as described in the ESA Staffing Section. Federal Employees' Compensation Act Benefits FECA provides long-term compensation benefits and certain medical payments for job-related injuries, diseases, or deaths of civilian employees of the Federal government and certain other designated groups. The Administration is re-proposing a number of legislative changes to improve FECA. These changes are expected to generate a 10-year Government-wide savings of $608 million. Longshore and Harbor Workers' Compensation Act Benefits This program funds one-half of the increased benefits provided by the 1972 amendments for persons receiving compensation for permanent total disability or death which commenced or occurred prior to the amendments. Long-term compensation benefits and medical payments are provided for job-related injuries, diseases, or deaths of private sector workers in certain maritime and related employment. Energy Employees Occupational Illness Compensation Benefits The budget request for FY 2008 includes $1.358 billion for EEOICPA. Of that amount, $1,196.7 billion will provide compensation and medical benefits to eligible workers or their survivors, including $64 million in benefits awarded by the Department of Justice under Section 5 of the Radiation Exposure Compensation Act (RECA). The request for program administration is $161.6 million and 464 FTE, including funding for Part B for the Departments of Labor and Health and Human Services and indefinite authority for Part E. This amount is reflected in the ESA Staffing section. Black Lung Disability Trust Fund The budget request provides a total of $1.068 billion from the Black Lung Disability Trust Fund (BLDTF) in FY 2008 for benefits, interest payments and administrative expenses. This total includes $270.8 million for benefits, $59.2 million for administrative expenses, and $739 million for interest payments. These figures do not include the intergovernmental transfer in the restructuring proposal described below. The BLDTF is facing a growing debt, which is now more than $9 billion. BLDTF revenues, which consist primarily of excise taxes on coal, are insufficient to repay this debt or the interest on that debt. Under current conditions, this indebtedness will continue to grow, with the BLDTF never becoming solvent, even when benefit outlays have declined to a level approaching zero. To solve this problem, the Administration has proposed legislation that will: authorize a restructuring of the BLDTF debt, extend, at current rates, BLDTF excise taxes set to decline in January 2014, and provide an intergovernmental transfer of $2.3 billion to compensate the General Fund of the Treasury for forgone interest payments. Black Lung Benefits Act – Parts B and C The Department of Labor is responsible for all claims filed under the Black Lung Benefits Act. Benefits are paid to miners and former miners who are totally disabled by pneumoconiosis (black lung disease) and to their eligible survivors, with supplementary allowances for dependents. Former miners are also entitled to receive medical treatment for their employment related respiratory condition. Two accounts fund this program: (1) the Black Lung Disability Trust Fund, and (2) Special Benefits for Disabled Coal Miners. Administrative Expenses This provides for all administrative costs incurred by the Department of Labor in the operation of the Black Lung program, including, transfers for the Solicitors, Office of Admin. Law Judges, Benefits Review Board, Inspector General and Treasury. Interest on Advances This appropriation funds payment of interest on advances to the BLDTF from the General Fund of the Treasury. In FY 2007, the amount of interest on advances is estimated to be $739.0 million. Other Income Maintenance Programs Panama Canal Commission Fund The budget requests $6.2 million for the Panama Canal Commission Fund to meet the Panama Canal Commission's obligations to defray costs of workers' compensation that accrue pursuant to FECA. Special Workers' Compensation Expenses Payments from the Special Fund The budget also requests $152.2 million for the Special Workers' Compensation Expenses Program. 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 and Health Administration Budget Authority
The mission of the Occupational Safety and Health Administration (OSHA) is to protect American workers by preventing injuries, illnesses and fatalities. The agency promulgates and enforces occupational safety and health standards and provides compliance assistance to employers and employees. OSHA also assists other Federal agencies in establishing and maintaining occupational safety and health programs for Federal workers and provides funding for state administered safety and health consultation programs. Consistent with its strategic goals, OSHA will focus on the most serious hazards and dangerous workplaces and expand compliance assistance opportunities. The FY 2008 OSHA budget request is $490.3 million and 2,186 FTE, an increase of $17.9 million and 53 FTE over the FY 2007 full-year CR level.
Safety and Health Standards The Safety and Health Standards activity provides for the development, promulgation, review and evaluation of occupational safety and health standards and guidance. In FY 2008, 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 provi | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
