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| January 6, 2009 DOL Home > OSEC > Department of Labor Budget Overview FY 2002 |  |
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Department of Labor Budget Overview FY 2002
Introduction Hope is really what Secretary Chao would like the Department of Labor to be about — helping people reach their fullest potential in the greatest country on earth — by giving them the training and skills needed to succeed in a rapidly-changing world. The Department of Labor's Fiscal Year (FY) 2002 budget request was developed with just those outcomes in mind.
The FY 2002 budget reflects the amounts necessary for continued efforts to meet the difficult challenges posed by a changing economy and American workforce. This budget maintains the Department's commitment that all workers have the opportunity to find and hold jobs under reasonable working conditions with good wages, reliable pensions, health benefits, and the opportunity to improve their skills in the 21st Century Workplace. In response to this commitment, the total request for the Department in FY 2002 is $44.4 billion in budget authority and 17,483 full-time equivalents (FTE). The request for discretionary programs is $11.3 billion in budget authority, which is $564 million below the FY 2001 level. 21st Century Workforce
With an eye toward the 21st Century Workforce, the Department's FY 2002 budget provides over $5 billion to support youth and adult training and employment activities. This is $5 billion worth of hope for a better future; a brighter tomorrow. To succeed in the 21st century, we must be prepared to adapt to changes in our economy — in how we work, where we work, and how we balance our professional and family lives. The Department of Labor cannot and must not simply react to changes. We must anticipate — thus enabling all workers to have as fulfilling and financially rewarding careers as they aspire to have.
The Department will continue to use the Workforce Investment Act as the primary vehicle to guide our investment in America's workforce — but new ideas are needed, along with fresh approaches and new partnerships. Many jobs go unfilled because employers can't find workers with the necessary skills and training. Another challenge will be to make sure that an adequate workforce is available to meet the demands of a continually-growing economy. To face these challenges, the Department will create a new Office of the 21st Century Workforce to bring focus and solutions to the challenges that face America's workers. Later this Spring, the Department will convene a group of leaders from business, labor unions, and government to address the structural changes that are affecting the workforce and economy. The Office of the 21st Century Workforce will assist those Americans who have been left behind — such as those who have been laid-off from jobs due to technological changes or foreign competition. Office of Disability Employment Policy
The Administration is also committed to assisting those individuals who have been denied the right to a productive, meaningful work life because of a disability. The new Office of Disability Employment Policy will support key elements of the President's New Freedom Initiative, providing technology and other tools to disabled Americans so that they can better enter the economic mainstream. An additional $20.3 million and 10 FTE have been added in FY 2002 for this purpose. The 2002 budget also continues to fund work incentive grants — $20 million annually — to support effective, fully-accessible One-Stop Centers. It is not only important to give people with disabilities training and assistive technology — but also the hope and the ability to become more active citizens in their communities. Worker Protection/Compliance Assistance
Labor laws will be enforced — and workers will be protected. Businesses will be assisted in complying with the laws. And laws will be enforced using common sense — not just a reflexive, one-size-fits-all approach. The Department's 2002 budget maintains labor law enforcement agencies at FY 2001 levels. In addition, the Department will put more emphasis than ever before on prevention and compliance assistance — not just after-the-fact enforcement. The Department will continue to explore new ways to use technology as well as more traditional interventions to improve and expand the reach of its compliance assistance. Redirected Resources
The Department's FY 2002 budget reallocates resources from lower-priority activities to areas where there are greater demonstrated needs. The Department's budget supports a sustained effort in core job training programs. Where training resources are redirected, State and local government communities will be able to continue to serve participants based upon the availability of funding already in the system. In the area of International labor activities, the budget provides funding at FY 2000 levels, reflecting a continued commitment to the fundamentals of removing children from abusive and dangerous working environments. The FY 2002 budget also continues both multi-lateral assistance through the International Labor Organization (ILO) and bilateral assistance with the Department's agencies to assist developing countries as they implement and administer labor standards and social safety net programs. The budget also continues the Global HIV/AIDS Workplace initiative to provide multi-cultural assistance through ILO to support health education and HIV prevention in the workplace. Labor Statistics $25 million is requested for the Bureau of Labor Statistics, including an increase of $8.1 million and 40 FTE for a key step in fundamentally changing the manner in which the Consumer Price Index (CPI) is revised and updated. Historically, major revisions of the CPI were made every ten years. Beginning in FY 2002, expenditure weights in the CPI will be updated every two years -- the first step toward revising and updating the CPI on a continuous basis to improve the accuracy and timeliness of the index. Information Technology
A total of $80 million — an increase of $43 million over FY 2001 — is requested for the centralized Information Technology (IT) account to fund the Department's IT investments within four crosscutting areas: $40.5 million for Enterprise Architecture; $10.6 million for a Common Office Automation Suite; $19.7 million for Security and Privacy; and $9.1 million for Common Administrative Systems. With the establishment of the centralized IT investment fund, the Chief Information Officer (CIO) will ensure, through the IT Capital Investment Management process, accountability for the management of the Department's IT resources. The IT Capital Investment Management process and centralized IT investment fund provides the management tools necessary to implement the requirements outlined in the Clinger-Cohen Act, the Paperwork Reduction Act, the Government Paperwork Elimination Act, the Computer Security Act, and the Government Performance and Results Act. These investments will continue to enable the Department to implement sound IT investment strategies to eliminate interoperability and incompatibility issues and to improve overall mission-critical program effectiveness. Federal Employees' Compensation Act Administrative Surcharge In FY 2002, the budget proposes to add an administrative surcharge to the amount billed to other Federal agencies for workers' compensation benefits. The Secretary of Labor will use this surcharge to finance the Department's administrative expenses in the Employment Standards Administration for the Federal Workers' Compensation program, including the cost related to management, operations, and legal support. The program surcharge provides $80 million in offsetting collections for budget authority for this program. Most importantly, the surcharge will boost the incentive of Federal agencies to improve the safety of their workplaces, resulting in fewer injuries and compensation costs. Presidential Management Reforms Improving Programs, Systems, and Procedures The Department is committed to working with the Office of Inspector General, the General Accounting Office, and the Office of Management and Budget to improve management of its programs, systems, and procedures. In particular, the Department will focus efforts on protecting worker benefits funds, reforming the Alien Labor Certification Program, expanding the reach of compliance assistance programs, and strengthening financial management of grant programs.
Agency-Specific Reforms Protection of Worker Benefits The Department recognizes that all major programs are vulnerable to some degree of fraud — particularly in Unemployment Insurance, Black Lung Benefits, and the Federal Employees' Compensation Act programs. The Department will continue its diligence in training State staff in fraud detection techniques and encourage the sharing of enforcement strategies. With respect to the workers' compensation programs, current cost containment efforts — including periodic review of long-term cases and more sophisticated reviews of medical claims — are beginning to show significant progress. Foreign Labor Certification Reform The Department will begin implementation of the streamlined application and adjudication process for the permanent labor certification applications. Changes to the program include establishing an employer attestation process, eliminating State processing, centralizing Federal processing, and establishing an audit function. Program Accountability of Grants The budget provides a total of $1.8 million in FY 2002 to accelerate efforts to modernize grants management and accountability systems to improve overall administration of funds. The Employment and Training Administration request includes $1.5 million to improve grants monitoring and technical assistance by providing oversight, assistance, and programming support for grantees. Also, emphasis will be placed on developing analytical tools and specified reports and linkages with the Department's centralized accounting system. The Office of the Chief Financial Officer will use the balance of these funds to oversee developmental efforts and to ensure overall compliance with the Federal Financial Management and Improvement Act. Summary The Department of Labor will be prepared for the 21st Century Workforce. The Department's first responsibility will be to protect workers by enforcing and promoting compliance with our nation's labor laws:
No worker can be left behind. And no worker can be without hope. The 21st Century Department of Labor. EMPLOYMENT AND TRAINING ADMINISTRATION OVERVIEW
1/ Includes mandatory H1-B fee funding ($179.9 million in FY 2001 and
$213.4 million in FY 2002) for use in demonstration projects. The total FY 2002 budget request for the Employment and Training Administration (ETA) 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 who have lost their job through no fault of their own. In total, funds for ETA in FY 2002 will increase by a net of $2.502 billion over FY 2001. In Income Maintenance, there is an increase of approximately $2.973 billion due primarily to increases in unemployment benefit payments resulting from higher benefit levels and an increased number of claimants related to projected higher unemployment. In the Employment and Training Programs area, there is a net decrease of $474 million, largely due to the decreases in formula grant programs related to the availability of large amounts of unexpended State carryover which can be used in lieu of new budget authority to maintain service levels. EMPLOYMENT AND TRAINING PROGRAMS
1/ Reflects reprogramming of $25 million from Youth
Opportunity Grants and $20 million from Safe Schools/Healthy Students to Youth
Activities in FY 2001. The Fiscal Year (FY) 2002 budget request for Employment and Training Programs proposes a net decrease of $474 million to $6.783 billion. This change is largely due to decreases of $359 million in formula grant programs related to the availability of large amounts of State unexpended carryover which can be used in lieu of new budget authority to maintain service levels. It is currently estimated that about $1.6 billion in unexpended youth, adult, and dislocated worker funds will be carried into 2002. Normally, the amount of unexpended funds would be about 20 percent of availability, or about $1 billion. In addition, bill language is requested reclassifying the budget authority for the $2.463 billion advance appropriation provided in the FY 2001 appropriation for obligation in FY 2002 as mandatory funding. This will avoid overstating discretionary budget authority in FY 2002, and reverse the practice of using advance appropriations to avoid discretionary spending limitations. The Employment and Training Administration is part of a nationwide partnership among Federal, State and local governments, the private sector, labor organizations, educational institutions, and community and faith-based organizations providing a full range of workforce development services. This partnership, known as America's Workforce Network (AWN), provides information and services to help employers find qualified workers and to help people manage their careers. The AWN partners have come together to streamline WIA and other services through One Stop Centers. Youth A total of $2.650 billion is requested for employment and training programs for Youth for investments that help young people make a successful transition to the world of work and family responsibility. This is a net decrease of $222 million below the FY 2001 budget authority level provided. The Youth Activities decrease in FY 2002 can be accommodated without affecting service levels due to the availability of large amounts of State unexpended carryover which can be used in lieu of new budget authority. In FY 2002, the Department will administer three programs to address youth problems: Workforce Investment Act (WIA) Youth Activities, Youth Opportunity Grants, and Job Corps. In addition, the Responsible Reintegration for Young Offenders program that was begun in FY 2001 will be continued as a two year effort with $55 million in budget authority provided in that year supplemented by an additional $20 million reprogrammed from the new Incumbent Worker program, which will not be undertaken in FY 2001. For Youth Activities under Section 126 of WIA, a total of $1.001 billion is requested, a decrease of $147 million below the FY 2001 appropriation. In FY 2001, $25 million from Youth Opportunity Grants and $20 million from the new Safe Schools/Healthy Students program, which will not be undertaken, will be reprogrammed to Youth Activities, thereby providing a total budget authority level of $1.148 billion in that year. Safe Schools/Healthy Students is a targeted job training program whose participants can be served under the core Youth Activities program, where local decision making can make best use of these resources. Youth Opportunity Grants will continue in 36 communities that received awards last year, while providing additional Youth Activities resources to help States and local areas as they continue to make the transition to the requirements of the WIA. 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, will support 721,100 participants, the same level anticipated for FY 2001. Of the 19-21 year old youth registered under this program, 77 percent will be employed in the third quarter after program exit. The FY 2002 budget includes $250 million for Youth Opportunity Grants, the same level as in FY 2001. In FY 2001, $25 million will be reprogrammed to Youth Activities, thereby providing a budget authority level of $250 million in that year for this program. This program is intended to provide comprehensive, longer term intervention in the lives of primarily out-of-school youth living in inner cities and high poverty areas to help them graduate from high school, get jobs, and progress in the workforce. Included in the request is $20 million for the Rewarding Youth Achievement Program which will provide economically disadvantaged youth in high poverty areas with extended summer employment opportunities and the opportunity to earn an end of summer bonus as a reward for academic achievement. Also included is $10 million for Migrant Youth activities to provide employment and training assistance to youth in families engaged in migrant and seasonal farm work. In total, the requested amount for Youth Opportunity Grants will serve an estimated 58,100 youth, the same level anticipated for FY 2001. By 2002, 53 percent of participants in this program placed in employment, the military, advanced training, post-secondary education, or apprenticeships will be retained at six months. The Job Corps will provide intensive skill training, academic and social education, and support to an estimated 73,000 participants at 121 centers in FY 2002. The budget request is $1.399 billion, the same level as FY 2001. For FY 2002, 88.5 percent of the program's graduates will get jobs or be enrolled in education with entry average hourly wages of $7.90, and 70 percent will continue to be employed or enrolled in education six months after their initial placement date. Although no new 2002 budget authority is requested for the new Responsible Reintegration for Young Offenders program, funding of $55 million, together with $20 million reprogrammed from the new Incumbent Worker program, will be used to provide $75 million in two year grants to address youth offender issues. The Incumbent Worker program represents a targeted job training effort whose participants can be served under core employment and training programs, where local decision making can make best use of these resources. The Responsible Reintegration for Young Offenders program will build on work begun earlier using FY 2000 and FY 1998 demonstration funds. Building on lessons learned through these smaller pilot projects, this large scale initiative will link youthful offenders under age 35 with essential services that can help make the difference in their choices in the future, such as education, training, job placement, drug counseling, and mentoring, in order to reintegrate them into the mainstream economy. Through local competitive grants, this program would establish partnerships between the criminal justice system and local workforce investment systems, complementing a similar program in the Department of Justice (DOJ). To maximize the impact of these initiatives, the DOL and DOJ funds will be targeted to the same communities and populations. An estimated 9,400 youth will be served in FY 2001 and in FY 2002. For FY 2002, an estimated 65 percent of program graduates will get jobs, reenroll in high school, or be enrolled in post-secondary education or training. 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 decrease of $257 million below FY 2001, which can be accommodated without affecting service levels due to the availability of large amounts of unexpended carryover. 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. The FY 2002 request of $1.383 billion for this program reflects a decrease of $207 million. The budget authority requested, together with State unexpended carryover, will support 927,000 participants, the same level anticipated for FY 2001. This is possible despite the program decrease due to the availability of large amounts of unexpended carryover which can be used in lieu of new budget authority. Among the workers assisted by the program are those displaced by trade, technology, defense downsizing, and other causes. For FY 2002, 75 percent of those registered under this program will be employed in the first quarter after program exit, and 85 percent will be employed in the third quarter after program exit with total post-program earnings in the second and third quarter after exit of 92 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 2002 request of $900 million for this program reflects a decrease of $50 million. The budget authority requested, together with unexpended carryover, will support 396,000 participants, the same level anticipated for FY 2001. This is possible despite the program decrease due to the availability of large amounts of unexpended carryover which can be used in lieu of new budget authority. The WIA adult program offers universal access to core services for job seekers and adults trying to advance their careers, with more intensive services and training being targeted to those most in need, including welfare recipients. For FY 2002, of those registered under this program, 80 percent will be employed in the third quarter after program exit, with an average earnings change of $3,423. Other Employment and Training The FY 2002 budget includes $1.850 billion for Other Employment and Training Programs, a net increase of $5.1 million above FY 2001. These programs include One Stop Centers, Grants to States for Reemployment Services, the Employment Service, Work Incentive Grants to assist the disabled in finding employment, WIA National Programs, Welfare-to-Work, and Community Service Employment for Older Americans. The FY 2002 budget includes $134 million to provide employment and related information through One Stop Centers and its America's Labor Market Information System (ALMIS), a decrease of $16 million below FY 2001. Services include America's Job Bank that lists about 1.5 million jobs, and America's Talent Bank that lists over 500,000 resumes. Information on occupational and career-related items can be obtained from America's Career InfoNet, and America's Learning Exchange provides access to lifelong learning opportunities. Efforts to improve access to One Stop information and services include a toll-free number for easier access to information on services and locations, and enhanced technology for serving individuals with disabilities. Also included is $35 million for Reemployment Services Grants. This program, which began in FY 2001, provides grants through the Employment Service for 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 and cost. The Employment Service (ES) provides a vast array of information and services to American workers and employers. ES is the essential labor market infrastructure for the One Stop System. In FY 2002, a total of $811.4 million is requested, the same level provided for FY 2001. Included in this total in FY 2001 is a level of $761.7 million for Allotments to States and $49.7 million for ES National Programs. ES provides no-fee services to individuals seeking employment and to employers seeking workers. The request is expected to result in 5.8 million "entering employment" placements. In FY 2002, the budget includes $20 million for Work Incentive Grants, the same level provided in FY 2001, to enhance the prospects of employment for individuals with disabilities. This effort is undertaken in conjunction with the budget's proposed increase for the Office of Disability Employment Policy. This program will provide competitive grants to partnerships or consortia in States to provide incentives for broader systems building efforts involving coordinated service delivery through, and linkages across, the One Stop Center system. In addition, these grants would augment the capacity of the One Stop Centers system for the delivery of 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, in order to ensure that people with disabilities are better prepared to enter, reenter, and remain in the workforce. For FY 2002, the program will increase by 5 percent the number of people with disabilities served and increase by 2 percentage points the rate of unsubsidized employment in the local Workforce Investment Area. The FY 2002 budget for WIA National Programs is $408.8 million in FY 2002, a net decrease of $28.9 million below FY 2001. These programs include the provision of 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. Also included is mandatory funding for a demonstration program of grants to regional and local entities to provide technical skills training for unemployed and incumbent workers supported by fees paid by employers applying for foreign workers under the H-1B temporary foreign labor certification program. This program is authorized by the American Competitiveness and Workforce Improvement Act of 1998. Changes for FY 2002 include an increase of $33.6 million in the H-1B program and a decrease of $62.4 million for unnecessary Pilot, Demonstration, and Research earmarks in the FY 2001 appropriation. In FY 2002, $440.2 million is requested for the Community Service Employment for Older Americans program, the same level provided in FY 2001. The request will continue support of the participant level of 92,000. The Welfare-to-Work program, authorized by the Balanced Budget Act of 1997, is designed to help States and cities move the hardest to employ welfare recipients into lasting, unsubsidized jobs. States and cities can use these funds to provide subsidies and other incentives to private business. Although no funding is requested in FY 2002, the FY 2001 appropriation act gave States two additional years to spend the funds. Thus, spending from the $3 billion in mandatory funding appropriated in FY 1998 and FY 1999 will continue to provide job placement and job creation. For FY 2002, of those Welfare to Work participants placed in unsubsidized employment, 67 percent will remain in the workforce for six month (2 consec- utive quarters following placement) with 7 percent average earnings increase by the second consecutive quarter following placement.
1/ Reflects FY 2001 reprogramming
1/ FY 2001 does not include $14.8 million for
contingency funds as a result of a projected workload increase (AWIU
trigger) The FY 2002 request for Income Maintenance includes $30.9 billion for the Unemployment Trust Fund. Of the FY 2002 Income Maintenance total, $2.4 billion is the discretionary amount requested for State administration of the Unemployment Insurance (UI) Program. In addition, $415.7 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 2002 request for Advances to the UTF and Other Funds (Advances) account is $464.0 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 and Employment Service (ES) programs. The ES program is discussed in the Employment and Training Programs section of this publication. For UI, the FY 2002 budget includes a request for $2.4 billion, which is $65 million above the FY 2001 appropriation. The $65 million increase in FY 2002 reflects changes in claims workload under the economic assumptions. The average weekly insured unemployment (AWIU) is projected to increase to 2.622 million from the 2.396 million level set in the FY 2001 appropriation. The contingency trigger mechanism in the 2001 appropriation is expected to release an additional $14.8 million in 2001 to cover increasing claims workload. The Administration plans to examine the unemployment compensation program carefully over the coming months. The FY 2002 funding level requested for the UI program will provide for approximately 46,000 staff years of service. State staff will handle 6.8 million employer tax accounts, 19.9 million initial unemployment claims, and a total of 136.4 million weeks claimed and 1.0 million appeals. In addition, to pay for any workload increase over an AWIU rate of 2.622 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 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 for similar benefits to workers affected by trade with countries covered by the North American Free Trade Agreement (NAFTA). For FY 2002, $415.7 million is requested for FUBA. Legislation will be proposed at a later date to extend the TAA and NAFTA-Transitional Adjustment Assistance programs which expire 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 2002, the requested amount includes $464.0 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 2002 will be 2.0 percent. This translates to an average of approximately 2.6 million beneficiaries per week receiving unemployment assistance under Federal and State programs in FY 2002. Average weekly benefits are estimated at $232.0 million in FY 2002, while the average number of weeks of benefits per recipient is expected to be 14.4 weeks. The total amount paid for unemployment compensation benefits and allowances is estimated at $28.5 billion. In FY 2002, estimated total unemployment trust fund outlays for benefits and administrative costs will increase from $25.6 billion to $28.4 billion primarily due to an increase in the number of the insured unemployed and an increase in the average weekly benefit amount. Trust fund revenues earmarked for State benefits, together with State fund reserves are estimated to be sufficient to cover needed benefit payments by States. In addition, there will be special distribution of $100 million in Federal tax funds to the States (Reed Act distribution), for administering the Unemployment Insurance Program.
1/ FY 2001 includes 25 FTE funded through H1B fees and 3 reimbursable FTE. In FY 2002, 50 FTE are funded through H1B fees and 3 reimbursable FTE. The Program Administration account provides for Federal administration of all 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 School to Work Opportunities Act, expiring October 1, 2001; 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 2002 request for Program Administration provides funds for 1,353, full-time equivalent (FTE) staff and $161.1 million. This number includes 1,300 FTE financed from direct appropriations, 3 FTE from reimbursements, and 50 FTE funded from H-1B fee allocations. This request represents a decrease of 60 direct FTE from the FY 2001 appropriation, and an increase of 25 FTE from 25 to 50 for the administrative costs of processing H-1B applications and the processing of certifications for the permanent foreign labor certification program. The reduction of directly appropriated staff will be accomplished through a variety of measures, including the elimination of management positions as necessary, the consolidation of functions, reduced workloads and other streamlining actions. Additionally, an increase of $1.5 million is requested for procuring contractor services to provide specialized financial and program performance management information to all level of ETA organizations. This request includes an increase of $715 thousand for the increased space costs of the San Francisco regional office and $5.1 million for built-in cost increases, which will be absorbed. Adult Services Funding 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 low income adults and dislocated workers; provides for training and employment services to special targeted groups; provides for the settlement of trade adjustment assistance petitions; and includes related program administration activities. The FY 2002 request for this activity includes an increase of $375 thousand for improved financial and performance accountability and a decrease of $495 thousand and 5 FTE for the consolidation and streamlining of functions. Youth Services Funding 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 Youth Opportunity Grants program, and the Job Corps and includes related program administration activities. The FY 2002 request for this activity includes an increase of $375 thousand for improved financial and performance accountability and a decrease of $1.2 million and 13 FTE for consolidation and streamlining of activities in the Youth office and Job Corps. Workforce Security Funding provides staff for leadership and policy direction for the administration of the comprehensive nationwide public employment service system; unemployment insurance programs in each State; and for a One Stop Center system, including a comprehensive system of collecting, analyzing, and dissemination of labor market information; and includes related programs operations support activities. The FY 2002 request for this activity includes an increase of $375 thousand for improved financial and performance accountability and a decrease of $1.6 million and 15 FTE for consolidation and streamlining of functions. Apprenticeship Training, Employer and Labor Services Funding promotes and provides 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 will 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 2002 request for this activity includes an increase of $375 thousand for improved financial and performance accountability and a decrease of $856 thousand and 10 FTE for consolidation and streamlining of activities. Executive Direction Funding promotes and provides leadership and policy direction for all training and employment service programs and activities and provides for related program operations support, including research, evaluations, demonstrations, and performance standards. The FY 2002 request for this activity includes a decrease of $266 thousand and 2 FTE for consolidation and streamlining of activities. Welfare-to-Work Funding provides leadership, policy direction, technical assistance, and administration for formula grants to States and competitive grants to local entities to assist long term, hard to employ welfare recipients secure lasting unsubsidized employment. The FY 2002 request for this activity includes a decrease of $725 thousand and 15 FTE due to declining workloads. PENSION AND WELFARE BENEFITS ADMINISTRATION
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. Currently, there are over 95 million participants, including workers and retirees, in private pension plans alone which hold nearly $5 trillion in assets. In FY 2002, PWBA anticipates increasing the number of cases closed with violations corrected by 2.5 percent, generating approximately $400 million in prohibited transactions corrected and plan assets corrected or protected. In addition, PWBA will recover more benefits through customer assistance - an estimated $67 million in 2002, a 2 percent increase over FY 2001's goal. In addition, PWBA will continue to aggressively educate the public about the need to save for retirement as well as how to protect their retirement benefits. As a result of this education and the growing workforce, PWBA anticipates a continued growth of approximately 1 percent in the number of employees covered by pension plans. Finally, PWBA continues to reap dividends from simplifying the annual report (the Form 5500) filed by companies that sponsor pensions which allows PWBA to more readily protect pensions and to keep participants better informed about their pension assets. Enforcement and Compliance 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. Provides compliance assistance to businesses and to the public. The 2002 estimates include expanded protection of benefit plan assets in instances where participants are unable to obtain their earned benefits because fiduciaries have deserted the plan and effectively abdicated their responsibilities. In FY 2002, the budget request for this activity is $84.6 million and 676 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; 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 about a dozen legislative committees with jurisdiction affecting ERISA and FERSA. In FY 2002, the budget request for this activity totals $19.2 million and 139 FTE. Program Oversight This activity provides leadership, policy direction, strategic planning, and management of the pension and welfare benefits program. Oversight and operational guidance is provided in the areas of financial management, budget formulation and execution, debt management, human resource management, labor and employee relations, employee development and other administrative activities. In addition, this activity conducts a comprehensive technical training program in support of enforcement, policy, legislative, and regulatory functions. In FY 2002, the budget request for this activity totals $4.1 million and 22 FTE.
* 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
The Pension Benefit Guaranty Corporation (PBGC) is a Government Corporation, administered 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 earn 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 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 PBGC's costs attributable to trusteed pension plans and benefit payment service where plans fail (such as in bankruptcy).
EMPLOYMENT STANDARDS ADMINISTRATION
1/ Includes $13.1 million in FY 2001 and $15.5 million
in FY 2002 in H-1B fee revenue. In total, funds for the Employment Standards Administration (ESA) in FY 2002 will increase by $401.1 million or about 20 percent compared with FY 2001. Most of this increase is for the new Energy Employees' Occupational Illness Compensation Program Act entitlement program to provide compensation to certain workers (or their families) for illnesses related to their exposure to beryllium, radiation, or silica in the Department of Energy's nuclear weapons complex. The rest of these increases in FY 2002 are for other entitlement programs such as workers' compensation and Black Lung disability programs.
1/ Includes H-1B Fees of $13.1 million in FY 2001 and $15.5 million in
FY 2002. The budget request to conduct these programs in FY 2002 is for $584.4 million and 4,404 FTE, of which $331.4 million and 3,013 FTE is in the Salaries and Expenses account, $80.3 million and 845 FTE is to be financed by the FECA Surcharge, $36.7 million and 133 FTE is in the Fair Share portion of the Special Benefits account, and 413 FTE and $136 million is in the Energy Employees' Occupational Illness Compensation Act program. In total, this is an increase for staffing of $93.1 million and 70 FTE over FY 2001. Wage and Hour Standards The FY 2002 budget request for the Wage and Hour Division is $168.1 million and 1,500 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 Hour's request does not include any new initiatives. Wage and Hour will continue to use its multi-prong 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 2002 budget request for OFCCP is $76.2 million and 797 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 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. These requirements affect the employment practices of Federal contractors and subcontractors at 200,000 worksites with a total workforce of over 26 million persons. OFCCP will continue to: use multiple approaches for conducting compliance evaluations and complaint investigations; provide comprehensive public education, and technical and compliance assistance programs; and work with industry groups. Federal Programs for Workers' Compensation The FY 2002 budget request for the Office of Workers' Compensation Programs (OWCP) is $123.2 million and 1,166 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 $80.3 million and 845 FTE that will be financed beginning in FY 2002 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 ($80 million) is replaced with offsetting collections to be paid by Federal agencies based on their employees' workers' compensation benefits. Other funding for OWCP includes $36.7 million and 133 FTE in the Special Benefits account to conduct FECA's workers' compensation program using "Fair Share" funds. OWCP also requests $136 million and 413 FTE to run the Energy Employees Occupational Illness Compensation Program Act, which also will 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 cost protection to civilian employees of the Federal government injured at work and to certain other designated groups. The Longshore and Harbor Workers' Compensation Act (LSHWCA) program provides similar protection to private sector workers in certain maritime and related employment. The Black Lung Benefits program provides protection to the Nation's coal miners suffering from pneumoconiosis. The Energy Employees Occupational Illness Compensation Program Act of 2000 (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 of private companies under contract with DOE 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. At the time the President's Budget went to press, the final structure and Executive Branch placement of the Energy Employees' Occupational Illness Compensation program had not yet been determined. Office of Labor-Management Standards The FY 2002 budget request for the Office of Labor-Management Standards (OLMS) is $30.6 million and 260 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 funding 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 2002 budget request for Program Direction and Support (PDS) is $13.5 million and 118 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.
ESA INCOME MAINTENANCE PROGRAMS (MANDATORY)
The budget includes a total of $1,846.3 million for income maintenance programs in ESA in FY 2002, an increase of $308 million from FY 2001. Special Benefits The request of $121 million for Special Benefits in FY 2002, includes $118 million for Federal Employees' Compensation Act benefits, and $3 million for Longshore and Harbor Workers' Compensation benefits. This account also includes a request for $36.7 million from Fair Share funding to finance 133 FTE to run the FECA program, as described in the Staffing Section. Energy Employees Occupational Illness Compensation Benefits The funding request for FY 2002, the first full year of this new program is $733 million. Of that amount, $597 million will provide compensation and medical benefits to eligible workers or their survivors. The request for program administration is $136 million and 413 FTE, including funding for the Department of Health and Human Services. At the time the President's Budget went to press, the final structure and Executive Branch placement of the Energy Employees' Occupational Illness Compensation program had not yet been determined. 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. Black Lung Disability Trust Fund The budget request provides a total of $1.036 billion from the Black Lung Disability Trust Fund (BLDTF) in FY 2002 for benefit and interest payments and administrative expenses. This includes $388.3 million for benefits, $54.7 million for administrative expenses, and $593.0 million for interest payments. 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 also funds payment of interest on advances to the BLDTF from the general fund. In FY 2002, the amount of interest on advances is estimated to be $593.0 million. Other Income Maintenance Programs The budget requests $7.4 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
* Includes 16 reimbursable and allocated 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 2002, 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 2002 budget includes $425.8 million, a slight increase over FY 2001; and 2,292 FTE. Safety and Health Standards The Safety and Health Standards activity provides for the development, promulgation, review and evaluation of occupational safety and health standards under procedures providing opportunities for public comment. In FY 2002, 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 2002, the budget request for this activity is $13.9 million and 95 FTE. Federal Enforcement The Federal Enforcement activity encourages compliance with workplace standards under the Occupational Safety and Health Act of 1970 through the physical inspection of work sites, and by fostering the voluntary cooperation of employers and employees. The agency will continue to focus resources on those activities that will have the greatest impact on worker safety and health. OSHA will also continue to target inspections on the worst hazards and the most dangerous workplaces and assist employers and employees in creating safe and healthy workplaces. In FY 2002, the budget request for this activity is $154.8 million and 1,619 FTE. State Programs The State Programs activity supports grants to states to assist them in the administration of state occupational safety and health regulations. Currently, 26 states operate their own safety and health programs under this Federal aegis. State Programs support enforcement, consultation, and education and training efforts in OSHA programs operated by the states. These resources enable OSHA's state partners to meet new challenges and complement Federal OSHA's program strategies. In FY 2002, the budget request for this activity is $88.1 million. Technical Support This activity provides support to Federal OSHA programs in several areas, including construction, standards setting, variance determinations, compliance assistance, and enforcement. Areas of expertise include electronic compliance assistance tools, laboratory accreditation, industrial hygiene, occupational nursing, occupational medicine, and safety engineering. In FY 2002, the budget request for this activity is $19.6 million and 109 FTE. Federal Compliance Assistance This activity supports a variety of employer and employee assistance programs. Outreach activities are conducted, including training and information exchanges and technical assistance to employers requesting such help. Employers are encouraged to establish voluntary employee protection programs, and Federal agencies are assisted in implementing job safety and health programs for their employees. Professional training for compliance personnel and others with related workplace safety and health responsibilities is conducted at the OSHA Training Institute, and further training is provided by education centers selected and sanctioned by the Institute. In FY 2002, the budget request for this activity is $57.2 million and 359 FTE. State Consultation Grants This activity supports 90 percent of Federally-funded cooperative agreements with designated State agencies to provide free on-site consultation to employers upon request. State agencies tailor work plans to specific needs in each State while maximizing their impact on injury and illness rates in smaller establishments. These projects offer a variety of services, including safety and health program assessment and assistance, hazard identification and control, and training of employers and their employees. The FY 2002 request includes $48.8 million for this activity. Training Grants This activity supports safety and health training grants to non-profit organizations to provide employee and employer training programs targeted to address specific industry needs for safety and health education. In FY 2002, the budget request for this activity is $8.2 million. Safety and Health Statistics Safety and Health Statistics provides information technology, management information and statistical support for OSHA's programs and field operations through an integrated data network and statistical analysis and review. The FY 2002 request is for $26.3 million and 44 FTE for this activity. Executive Direction and Administration This activity provides overall direction and administrative support for the Occupational Safety and Health Administration. In FY 2002, the budget request for this activity is $9 million and 50 FTE.
MINE SAFETY AND HEALTH ADMINISTRATION
The Mine Safety and Health Administration (MSHA) protects the safety and health of the Nation's miners by | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
