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| August 30, 2008 DOL Home > About DOL > Fiscal Year 2009 Budget in Brief |  |
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Fiscal Year 2009 Budget in Brief Entire Document (PDF — 894K) Table of Contents Employment and Training Administration
Employee Benefits Security Administration Pension Benefit Guaranty Corporation Employment Standards Administration
Occupational Safety and Health Administration Mine Safety and Health Administration
Office of Disability Employment Policy Veterans Employment and Training Office of the Inspector General The FY 2009 request is $ 10.5 billion in discretionary budget authority and 16,848 full-time equivalent employees (FTE). The FY 2009 performance budget builds upon the Department's FY 2006 — FY 2011 Strategic Plan goals of A Prepared Workforce, A Competitive Workforce, Safe and Secure Workplaces, and Strengthened Economic Protections. This performance budget meets the Annual Performance Plan requirement under the Government Performance and Results Act of 1993 (GPRA), and sets out specific annual performance targets and the strategies to attain them. Because the Department's agencies have a variety of missions — and their performance goals are extensive and wide ranging — this Overview section covers only the key agency goals that will be reflected in the Department's FY 2008 and FY 2009 Annual Performance and Accountability Reports. Secretary's Priorities The mission of DOL is to promote the welfare of the Nation's job seekers, wage earners, and retirees by improving working conditions, enforcing the Fair Labor Standards Act, expanding opportunities for training and employment, protecting retirement and health care benefits, helping employers find qualified workers, strengthening free collective bargaining, and tracking changes in employment, prices, and other national economic measurements. The FY 2009 budget submission reflects the following priorities:
In addition to these program-specific priorities, in FY 2009 the Department will scrutinize base funding to shift resources from lower priority, less effective programs, to higher priority, more effective programs. The Department has made significant progress in implementing the President's Management Agenda (PMA) and the Program Assessment Rating Tool (PART). As of December 31, 2007 the Department remains Green in status for the five government-wide initiatives. The Department has also been conducting PART reviews of key programs, and implementing their recommendations to promote program improvement. Thirty-five programs have been reviewed to date, and agencies are using PART recommendations to improve performance measures and targets, develop efficiency measures, and focus program evaluations to gauge effectiveness. Strategic Goal Cost Model The Department will measure its accomplishments in FY 2009 against the following strategic goals:
These strategic goals are supported by key program-level performance goals with specific performance indicators and ambitious targets that correspond to the presentations in Agency Congressional Budget Justifications. The tables below include changes to performance indicators and targets presented in the FY 2008 Performance Budget and to Program Year (PY) 2007 goals, which may have been adjusted due to intervening funding levels, PART assessments, or more recent performance results and trends. As shown in the following table, the President's 2009 Budget requests $10.5 billion in discretionary budget authority for DOL. In addition, the Budget includes $42.6 billion in budget authority for the Department's mandatory programs.
The following charts illustrate how the FY 2009 DOL Request supports each Strategic Goal:
Employment and Training Administration Overview The mission of the Employment and Training Administration (ETA) is to contribute to the more efficient functioning of the U.S. labor market by providing high quality job training, employment, workforce and labor market information, and temporary wage replacement. ETA promotes economic independence for individuals and families by administering programs that enhance employment opportunities and business prosperity. Major ETA programs include those authorized by the Workforce Investment Act of 1998 for adults, dislocated workers, youth, and targeted populations; Trade Adjustment Assistance authorized by the Trade Act of 1974; employment services authorized by the Wagner-Peyser Act; Unemployment Insurance authorized by the Social Security Act; Foreign Labor Certification activities, authorized by the Immigration and Nationality Act; the Senior Community Service Employment Program, authorized by the Older Americans Act; and Apprenticeship programs, which are authorized by the National Apprenticeship Act. Training and Employment Services
a/ Funded from the Dislocated Workers National Reserve in 2007 and 2008. The Training and Employment Services (TES) appropriation funds skills training and employment services directed toward increasing the post-program employment and earnings of current and future workers, particularly low-income persons, dislocated workers, at-risk and out-of-school youth, and other unemployed and underemployed individuals. Career Advancement Accounts
In April, 2007, the Administration transmitted to Congress the “Workforce Investment Act Amendments of 2007,” a proposal that would reauthorize and reform the Workforce Investment Act of 1998 (WIA). These reforms, which are re-proposed in the FY 2009 Budget, include:
CAAs are self-directed accounts of up to $6,000 over two years that would be available to adults and out-of-school youth entering or re-entering the workforce or transitioning between jobs, or incumbent workers in need of new skills to remain employed or to move up the career ladder. The rationale for this request and the Administration's proposed “Workforce Investment Act Amendments of 2007” is that Federal job training dollars should be put in the hands of the individuals in need of assistance, by replacing the current siloed system of separate training programs serving different populations with a single state grant for the provision of employment and training services. Under the current system, too many resources are being used to pay for administrative functions, overhead costs, and multiple levels of staff. The public workforce investment system should be redesigned to give individuals control over the resources they need to support their careers in the 21st century economy. With more clearly defined administrative costs and the majority of funding used to finance the accounts, this proposal means that more individuals will participate in job training and attain new and higher level job skills. Adult Employment and Training Activities
The Adult Employment and Training Program is authorized under the Workforce Investment Act of 1998, Title I, Subtitle B, Chapter 5, Public Law 105-220, 20 U.S.C. 9201, and is designed to increase employment, as measured by entry into employment, retention in employment, and average earnings. WIA Adult program funds are distributed by statutory formula to the 50 States, Puerto Rico, the District of Columbia, and other outlying areas. Once received, most of these funds are allocated by formula to local workforce investment areas within the States. The Act authorizes three types of services: 1) “Core” services, for which all adults 18 years and older are eligible, which include initial assessment, job search and placement assistance, and workforce and economic information; 2) “Intensive” services, which include more comprehensive assessments, development of individual employment plans, and career guidance and planning; and 3) “Training” services, which are linked to employment in demand, including occupational training, skills upgrading, and adult literacy training. Priority for intensive and training services must be given to recipients of public assistance and other low-income individuals where funds are limited. States and local areas are responsible for establishing procedures for applying the priority requirements. For FY 2009, the Administration proposes that funds previously appropriated for the WIA Adult Program, together with funds previously appropriated for the WIA Dislocated Worker and Youth Programs and the Employment Service, be allocated to states as a single funding stream. States would use these funds primarily to provide Career Advancement Accounts to individuals in need of employment assistance. A portion of this funding would also be used by states to provide employment services such as career assessments, workforce information, and job placement assistance. Dislocated Worker Employment and Training Activities
The Dislocated Worker Assistance Program provides workforce investment services to individuals who have lost their jobs, including those dislocated as a result of plant closings or mass layoffs, and who are unlikely to return to their previous industries or occupations; formerly self-employed individuals; and displaced homemakers who have been dependent on the income of another family member, but are no longer supported by that income. The program is authorized by the Workforce Investment Act of 1998, Title I, Subtitle B, Chapter 5, Public Law 105-220, 20 U.S.C. 9201, and provides the three types of services described above in the Adult Employment and Training program. Participants use Individual Training Accounts to select an appropriate training program from qualified providers. Funding for dislocated worker activities is provided through formula allotments to states, and states may use up to 25 percent of their allotment to provide rapid response services to workers affected by layoffs and their employers. In addition, the Secretary has discretionary funds to provide National Emergency Grants for significant layoff events or natural disasters. States must apply for these discretionary funds. For FY 2009, the Administration proposes that funds previously appropriated for the WIA Dislocated Worker Program, together with funds previously appropriated for the WIA Adult and Youth Programs and the Employment Service, be allocated to states as a single funding stream. States would use these funds primarily to provide Career Advancement Accounts to individuals in need of employment assistance. A portion of this funding would also be used by states to provide employment services such as career assessments, workforce information, and job placement assistance. Under the Administration's proposal, a portion of the funds appropriated for CAAs would be reserved at the Federal level for a National Reserve Fund. The Secretary would have the discretion to use this funding to address unanticipated events, such as natural disasters and mass layoffs, and for innovative projects for adults and youth. In addition, states would still be able to carry out rapid response activities in response to large-scale layoffs and plant closings. However, unlike current law, there would be no specific amount reserved for rapid response activities at the state level. States would apply to ETA for rapid response funding in a manner similar to National Emergency Grant applications. Youth Activities
The Youth Activities program is authorized by Title I of the Workforce Investment Act of 1998 (29 U.S.C. 2851). The program allots funds to States and local areas by statutory formulas to deliver a comprehensive array of workforce development services to youth with barriers to employment. Eligible youth are ages 14-21, low-income, and have one or more of the following barriers to employment: 1) deficient in basic literacy skills; 2) a school dropout; 3) homeless, runaway, or a foster child; 3) pregnant or a parent; 4) an offender; or 5) requires additional assistance to complete an education program, or to secure and hold employment. Service providers prepare youth for employment and post-secondary education by stressing linkages between academic and occupational learning. Consistent with the FY 2008 Budget request, ETA proposes that in FY 2009 funds previously appropriated for the WIA Youth program, together with funds previously appropriated for the WIA Dislocated Worker and Adult programs and the Employment Service, be allocated to states as a single funding stream. States would use these funds primarily to provide Career Advancement Accounts (CAAs) to individuals, including out-of-school youth. A portion of this funding would also be used by states to provide basic employment services such as career assessments, workforce information, and job placement assistance. WIA Competitive Grants WIA Competitive Grants are authorized and funded under sections 170-172 of the Workforce Investment Act and various appropriations acts. Funds are used for Community-Based Job Training Grants and the following prisoner re-entry programs: Reintegration of Ex-Offenders, Responsible Reintegration of Youth Offenders (RRYO), and the Prisoner Re-entry Initiative. Community Based Job Training Grants
a/ Program funded from the Dislocated Workers National Reserve in 2007 and 2008. Community-Based Job Training Grants seek to address a critical shortage of workforce development capacity in many regions by supporting community colleges to create new curriculum and train workers for jobs in high-growth, high-demand industries. Due to their close connection to local labor markets, community colleges are well positioned to understand the intricacies of local economies and better prepare workers for occupations in these localized industries. These grants are authorized under the general authority of Title I-D of the Workforce Investment Act of 1998 and by specific appropriations language. The grants take advantage of community colleges' accessibility, affordability, and adaptability and position them to support talent development strategies that optimize innovation and successful regional economic transformation. To date, three rounds of Community-Based Job Training Grants have been awarded to support or engage in a combination of capacity building and training. The requested funding level for FY 2009 of $125,000,000 will allow DOL to make approximately 70 to 75 new grant awards of between $500,000 and $2,000,000. Based on evaluation of current grant outcomes and continuous analysis of workforce challenges facing high-growth, high-demand industries, the Department will continue to focus its future investments through Community-Based Job Training Grants on:
Prisoner Re-Entry Initiative
The Prisoner Reentry Initiative (PRI) provides funds to eligible applicants in order to reduce recidivism by helping inmates find work when they return to their communities. Eligible service providers are faith-based and community organizations that are located in, or have a staff presence in, the urban community being served, and that have the capacity to serve as the lead agency under this initiative. In some cases, lead agencies provide technical assistance and oversight to other faith-based community organizations. This program is authorized through appropriations bills. In FY 2008, the Administration proposed to merge the RRYO Program and the Prisoner Reentry Initiative into a new, consolidated Reintegration of Ex-Offenders program that serves both youth and adults a proposal that was adopted in the 2008 Omnibus appropriation. The 2009 Budget continues this approach. The PRI grants funded in FY 2006 and FY 2007 will be completed by FY 2009. Reintegration of Ex-Offenders
In FY 2008, the Department proposed to merge funding for the Prisoner Reentry Initiative (PRI) and the Responsible Reintegration for Young Offenders (RRYO) into a single, consolidated program that serves adult and juvenile ex-offenders and strengthens communities by reducing recidivism. The FY 2009 Budget Request is based on continuation of this approach. The Department's request will continue the single, consolidated approach to serving the ex-offender population in FY 2009. The Reintegration of Ex-Offenders Program will continue to capitalize on the lessons learned from both RRYO and PRI projects. It will continue to promote the use of the robust performance accountability system developed by the PRI and extend the mechanisms developed in that project to new Federal efforts to support re-integration of ex-offenders. The consolidated program will also continue its focus on the adoption of specific practices developed through RRYO and PRI that have shown the greatest promise in boosting employment and reducing recidivism among classes of offenders most at-risk of re-offending. Reintegration of Ex-Offenders will continue to serve both adult and youthful offenders. The priorities for serving adults will continue to be placing returning offenders into employment and providing mentors for returning offenders. The priorities of the youth grants will be to address the low educational achievement of youth offenders and to offer multiple education pathways to high school graduation and post-secondary education. Responsible Reintegration of Youthful Offenders
The Responsible Reintegration of Youthful Offenders (RRYO) Program, authorized by the pilot and demonstration authority under the Workforce Investment Act (section 171 (P.L. 105-220), funded a variety of projects aimed at serving youthful offenders and youth who are at-risk of becoming involved in the justice system. Projects funded under this appropriation include: 1) projects using demand-driven strategies to move youth into high-growth occupations, 2) demonstration projects to provide employment to youthful offenders and youth who are at-risk of criminal involvement in selected cities, 3) projects that provide training in construction and other trades with apprenticeship programs and use community services for youthful offenders returning to their communities from correctional facilities, 4) state-operated projects aimed at improving the academic and workforce preparation components for youth in correctional facilities, and 5) local demonstration projects that involve faith-based and community organizations in assisting released prisoners returning home. In FY 2008, the Administration proposed to merge the RRYO Program and the Prisoner Reentry Initiative into a new, consolidated Reintegration of Ex-Offenders program that serves both youth and adults. Per the Administration's FY 2008 proposal, there will be no new RRYO activity in FY 2009. However, the RRYO grants started with FY 2006 and FY 2007 funds will continue in FY 2009. RRYO activities include district based grants to reduce the involvement of youth in violence and gangs, multiple education pathway grants for your offenders, and grants allowing successful projects serving youth offenders to expand additional sites. WIA National Activities
ETA is authorized, under Title I of the Workforce Investment Act to conduct pilots, demonstrations, research and evaluations. These pilots, demonstrations, research and evaluations support key areas of program and policy emphasis, inform workforce investment policies and investment decisions, and support continuous improvement of the workforce investment system. The Women in Apprenticeship and Non-Traditional Occupations Act are also a part of WIA National Activities. Evaluations
Under Section 172 of the Workforce Investment Act of 1998 (29 U.S.C. 2916), ETA carries out the rigorous evaluation of programs and activities authorized by title I of WIA. ETA program evaluations contribute to the improvement of service delivery interventions of state and local WIA programs, and ultimately contribute to improved outcomes. Results from evaluation studies support continuous improvement of and inform policy and investment decisions. The FY 2009 Request restores funding for evaluations to the levels appropriated between FY 2001 and FY 2005. Evaluation efforts in FY 2009 focus on evaluating key ETA programs and initiatives, as well as responding to PART findings and the President's Management Agenda Program Improvement initiative. This includes oversight of multi-year evaluations of the Senior Community Service Employment Program and the Trade Adjustment Assistance program; an impact analysis evaluation of the WIA Adult, Dislocated Worker, and Youth programs (the WIA Gold Standard Evaluation); evaluations of the Individual Training Account experiments, Community-Based Job Training Grants, and the WIRED initiative; and completion of evaluations of the Veteran's Priority of Service Provision, the H-2A Program, and the High Growth Job Training Initiative. Pilots, Demonstrations and Research
Section 171 of the Workforce Investment Act of 1998 (29 U.S.C. 2916) authorizes ETA to conduct pilot, demonstration, and research (PD&R) activities which support key areas of program and policy emphasis, inform workforce investment policies and investment decisions, and support continuous improvement of the workforce investment system. The overall goal of these activities is twofold: (1) “seed” promising practices for national policy application; and (2) incubate pilot projects that can be launched on a larger scale. ETA evaluates new and promising programs and policies to better understand the efficacy of the intervention. Projects must include the provision of direct services to individuals to enhance employment opportunities and an evaluation component and may include (1) building a demand driven workforce investment system; (2) building the capacity of workers to obtain good jobs with good wages; (3) focusing on key segments of the workforce; (4) building a comprehensive workforce system through new strategic approaches; and (5) evaluating program effectiveness. Grants are awarded on a competitive basis, announced in Solicitation for Grant Applications in the Federal Register and also on ETA's Internet Website. In certain instances, for particular solicitations or groups of awards, matching requirements may be imposed because of statutory requirements and/or administrative decisions. Priority for FY 2009 PD&R funds will be directed towards the WIA Gold Standard Random Assignment Study — a new priority project that began in FY 2007 and is included in the Department's Five-Year Research, Demonstration and Evaluation Strategic Plan for 2007-2012, as well as in the President's Management Agenda Performance Improvement initiative. Technical Assistance
Following the enactment of the Workforce Investment Act of 1998 funds were appropriated for activities authorized under Section 170, including providing training, technical assistance, staff development and other activities to states and localities, and in particular, activities to assist in making transitions to the new law. Since the enactment of this legislation in 1998, the need for such technical assistance has diminished. No funds are requested for WIA National Activities — Technical Assistance in FY 2009. Women in Apprenticeship
Women in Apprenticeship grants are awarded competitively to community-based, union, or employer organizations that provide technical assistance to employers and labor unions to prepare them to recruit, select, train, and retain women in apprenticeship and nontraditional occupations, as authorized under the Women in Apprenticeship and Non-Traditional Occupations Act of 1992 (P.L. 102-530). Denali Commission
The purpose of the Denali Commission is to provide critical utilities, infrastructure and economic support to distressed rural communities in Alaska. The authorizing legislation for this effort is the Denali Commission Act of 1998 (42 U.S.C. 3121, as amended). The 2009 Budget proposes to terminate direct funding for this earmark, which is unnecessary and duplicative. The President's 2009 Budget requests $6 million ($2 million in the Energy and Water appropriations bill, and $4 million in a trust fund) for the Denali Commission, which will allow it to continue the constructive role the Commission plays as a regional planner and coordinator of other Federal investments in Alaska. Alaska will receive Federal support for job training and employment services through Workforce Investment Act (WIA) formula grants, Native Americans training grants, and a Job Corps center. Indian and Native American Program
The Indian and Native American Program supports employment and training activities for Indians, Alaska Natives, and Native Hawaiians to develop more fully their academic, occupational, and literacy skills; and to promote the economic and social development of Indian, Alaska Native, and Native Hawaiian communities in accordance with the goals and values of such communities. The program is authorized by section 166 of the Workforce Investment Act of 1998, 29 U.S.C. 2801 et seq. Supplemental youth funding is also authorized to help low-income Native American and Native Hawaiian youth between the ages of 14 and 21 to acquire the educational skills, training and support needed to achieve academic and employment success and transition to careers and productive adulthood. Competitions are conducted to select Native American tribes and organizations that are awarded funds for a two-year period to carry out these programs. ETA's priorities for the Native American Section 166 program in FY 2009 will be to:
Job Training for Employment in High Growth Industries H-1B fees are authorized under Sec. 414(c) of the American Competitiveness and Workforce Improvement Act of 1998 (P.L. 105-277, title IV), as amended by P.L. 108-447 (codified at 29 U.S.C. 2916a). These fees are available to the Department without appropriations action by Congress and, in part, are used to provide job training and related activities to workers to assist them in gaining the skills and competencies needed to obtain or upgrade employment in high-growth industries and economic sectors. Participants are trained in occupations and industries for which employers are using H-1B visas to hire foreign workers. Funds may also be used for activities that enhance the provision of job training services and information, such as supporting talent development related to entrepreneurship and small business development; developing and implementing model activities to build core competencies and train workers; identifying and disseminating career and skill information; and integrated regional planning, such as increasing the integration of community and technical college activities with activities of businesses and the public workforce investment system to meet the training needs of business. Fee revenues are also used to support activities under two major initiatives — the High Growth Job Training Initiative (HGJTI) and the Workforce Innovation in Regional Economic Development (WIRED) Initiative. Based on continuous evaluation and analysis of the kinds of workforce challenges facing high growth, high demand industries, DOL has identified the following areas of focus for future investments for this funding:
In addition to identifying new funding opportunities, during FY 2009, ETA will provide third-year funds to the Second and Third Generations of WIRED regions. Migrant and Seasonal Farmworkers
The National Farmworker Jobs Program (NFJP) serves economically disadvantaged persons who are primarily dependent on agricultural employment for their livelihood. The authorizing legislation for this program is section 167 of the Workforce Investment Act of 1998 (29 U.S.C. 2912). Eligible participants are those persons employed on a seasonal or part-time basis in the unskilled and semi-skilled manual labor occupations in crop and animal production. Through training and other services, the program assists migrant and seasonal farmworkers and their families to prepare for jobs that provide stable, year-round employment in agricultural and non-agricultural occupations. Service providers are selected by DOL through a competitive process. Funds appropriated for the NFJP are subject to a biennial grants competition that is open to state agencies, local workforce investment boards, faith-based and community organizations, institutions of higher learning, and other entities capable of delivering services on a statewide basis. Formula funds are allocated to states that approximate through estimation the relative proportion of eligible farmworkers in each state. In addition, appropriations language requires that approximately six percent of the NFJP appropriated funding be used to support a Housing Assistance program for farmworkers. The Housing Assistance program is a supportive service offered to assist migrants and seasonal farmworkers to retain employment or enter into or complete training. For the past six fiscal years, the Administration has not requested budget authority for the NFJP. It became apparent that those being served by NFJP had the same type of barriers to full-time employment that other workers do, and that the relatively small NFJP program did not provide its participants with the full array of benefits they would derive from a more fully integrated workforce investment system. No budget authority is requested for the NFJP in FY 2009 as ETA continues to pursue this integration strategy. YouthBuild
The YouthBuild program was transferred to DOL from the Department of Housing and Urban Development in FY 2007, under the authority of the YouthBuild Transfer Act, and is now authorized by section 173A of the Workforce Investment Act of 1998. YouthBuild helps at-risk youth ages 16 to 24 years acquire high school credentials and receive skills training through the construction and rehabilitation of affordable housing for low-income or homeless families in their own neighborhoods. Youth divide their time between the construction site and the classroom, where they earn their GED or high school diploma, learn to be community leaders, and prepare for college and other postsecondary training opportunities. Grant funds can be used to fund eligible educational and supportive services and activities composed of basic skills development, and counseling, referral and support services. Grantees are selected on a competitive basis in accordance with criteria published in the Solicitation for Grant Applications, which are also published in the Federal Register. Eligible entities for this grant funding include: (a) a community-based organization, (b) a faith-based organization, (c) a local workforce investment board, (d) a community action agency; (e) a State or local housing development agency, (f) an Indian tribe or other agency primarily serving Indians, (g) a community development corporation, (h) a State or local youth service or conservation corps, and (i) any other entity eligible to provide education and employment training under other Federal programs. With the transfer of the YouthBuild Program from HUD to DOL in FY 2008, ETA's attention focused on providing training for the new YouthBuild grantees on DOL's administrative procedures, regulations, and performance expectations during this transition year. While the agency will continue to work with grantees on these areas, in FY 2009, the Department of Labor will focus on performance outcomes for the YouthBuild Program. In FY 2009, ETA will hold its second YouthBuild grant competition. Under the competition, 90-100 new grants will be awarded to serve approximately 3,200 participants. In addition, since the core components of the YouthBuild program remained the same under the YouthBuild Transfer Act, ETA will continue to emphasize improved academic programming, provision of industry recognized skill training, project based learning that connects education and skill training, collaboration with a broad range of business and community partners, and seamless transitions to post-secondary education and training. Senior Community Service Employment Program
The Senior Community Service Employment Program (SCSEP) program is authorized by Title V of the Older Americans Act. The program offers wage-based community service training opportunities to low-income individuals age 55 and older who want to remain in or re-enter the workforce. Participants must have incomes of no more than 125 percent of the Federal poverty level. Training opportunities are offered at non-profit agencies that serve hospitals, libraries, day care centers, and parks; and prepare individuals to enter or re-enter the workforce. The ultimate goal of the program is unsubsidized employment and economic self-sufficiency. While the Older Americans Act Amendments of 2006 (P.L. 109-365) reauthorized and made some improvements in this program, the program still suffers from inadequate competition, duplication of other federal programs, and low levels of performance in getting participants into unsubsidized employment. The Department also notes that the Older Americans Act Amendments prohibited competition beyond the current pool of national grantees until 2010. The FY 2009 President's Budget level of $350,000,000 will serve approximately 71,795 low-income older workers in part-time work-based community service training opportunities. The increase in the minimum wage will raise the cost per slot in PY 2009 to $9,642. The additional cost per slot will be offset in part by changes to program sought by the Department in the 2006 Reauthorization that will move participants more quickly into unsubsidized employment, allowing the program to serve more participants with the same number of slots. In FY 2009, the workforce investment system will play a stronger role in placing job-ready older workers in unsubsidized employment as an alternative to placing them in SCSEP subsidized employment. Federal Unemployment Benefits and Allowances
The Federal Unemployment Benefits and Allowances (FUBA) account finances the Trade Adjustment Assistance (TAA) and the Alternative Trade Adjustment Assistance (ATAA) programs, which are authorized by Part I, Subchapter B and D, Chapter 2, Title II of the Trade Act of 1974, as amended (19 U.S.C. 2101); and Part II, Subchapter B and D, Chapter 2, Title II, of the Trade Act of 1974, as amended (19 U.S.C. 2101). Programs in the FUBA account are financed through mandatory appropriations. Funding for training is capped in the authorizing legislation at $220 million annually. The FY 2009 Budget includes legislation to reauthorize and reform the TAA program. The Department identified four overarching principles to guide the reauthorization of the TAA program to ensure its relevance for the 21st century economy. Trade-affected workers must have: (1) greater flexibility and enhanced access to training, including post-reemployment education and training, and transitional income support; (2) improved access to education and training; (3) access to education and training prior to a trade-impacted layoff; and (4) access to services through a streamlined and efficient workforce investment system — one that is customer focused and does not arbitrarily limit services. The request represents an increase of $76,100,000 from the FY 2008 level. The request under current law is $958,800,000, which provides sufficient funds to continue the TAA for Workers programs through FY 2009 (including issuing certifications for new workers) and cover the phase-out costs of the ATAA demonstration program. Trade Adjustment Assistance
The Trade Adjustment Assistance (TAA) program provides assistance to workers who have been adversely affected by international trade. To be eligible for TAA, a group of workers, a company official, a union or other duly authorized representative, or a One-Stop Career Center operator must file a petition with the Department of Labor. In response to the petition, the Department institutes an investigation to determine whether the workers were laid off as a direct result of foreign trade. If the Department determines that the workers meet the statutory criteria, it issues a certification of eligibility for the workers in the group to apply for benefits and services through the One-Stop Career Center system. Once covered by a certification, individual workers apply for benefits and services through the One-Stop Career Center system. Each benefit and service has specific, individual eligibility criteria that must be met, such as previous work history, unemployment insurance eligibility, and individual skill levels. The TAA program offers the following services to certified individuals: training, weekly income support, out-of-area job search and relocation allowances, and the Health Coverage Tax Credit (HCTC). Reemployment services, including assessment and placement services, are not provided with TAA funds. These services are often provided as “wrap-around” services to TAA participants who are co-enrolled in the Workforce Investment Act and other partner programs. Alternative Trade Adjustment Assistance The Trade Adjustment Assistance Reform Act of 2002 also established a demonstration program of Alternative Trade Adjustment Assistance (ATAA) for older workers. The ATAA program offers a wage supplement and a Health Coverage Tax Credit to workers age 50 years and over within the TAA population. ATAA eases the transition to reemployment by making up part of any earnings losses. ATAA provides a wage supplement that represents up to 50 percent of the difference between a worker's wages on the pre-layoff job and the post-layoff job, with a maximum of $10,000 payable over up to two years. The authorization of the Alternative TAA program expires in September 2008. State Unemployment Insurance and Employment Service Operations
The State Unemployment Insurance and Employment Service Operations (SUIESO) account provides funding to support the Unemployment Insurance system, including State Administration, Reemployment and Eligibility Assessments, and National Activities. The SUIESO account also funds Employment Service Grants to States; Employment Service National Activities, which includes administration of the Work Opportunity Tax Credit, Technical Assistance and Training (TAT)/State Workforce Agency (SWA) Retirement; Workforce Information-Electronic Tools-System Building; and Work Incentive Grants. Unemployment Insurance
The federal-state Unemployment Insurance (UI) program, authorized by Title III of the Social Security Act (SSA), provides temporary, partial wage replacement between jobs to unemployed workers and helps to stabilize the national and local economies in response to layoffs. To be eligible for benefits, unemployed workers must have worked recently, be involuntarily unemployed, and be able to and available for work. UI benefits and administration are funded by Federal and state payroll taxes. An integral part of the public workforce system, the UI program is the entry point for unemployed workers to One-Stop Career Center services that helps expedite their return to work. Reemployment is essential to maintaining workers' long-term economic security. States administer the UI program directly and are responsible for establishing specific policies and operating methods that conform to Federal law. The states also administer Federal programs for payments to former Federal military and civilian personnel; to claimants who qualify for extended or special Federal unemployment benefits; to workers certified under the Trade Adjustment Assistance program; and to individuals unemployed due to disasters. For FY 2009, the request includes $40,000,000 for Reemployment and Eligibility Assessments (REAs), which were included in the FY 2008 request as a cap adjustment item. REAs are in-person interviews with selected UI claimants to review their adherence to state UI eligibility criteria, develop an individual service plan that the claimant will follow to secure future employment, refer the individual to reemployment services, as appropriate, and provide labor market information which addresses the claimant's specific needs. The request also includes a legislative proposal (identical to that included in the President's 2008 Budget) addressing UI Integrity and UI Innovation which would give states new tools to reduce improper payments and to collect delinquent benefit overpayments and employer taxes. There will be no discretionary cost associated with this proposal. It would provide new tools and additional resources to reduce overpayments by $5.0 billion and reduce employer tax evasion by over $400 million over 10 years. More specifically, it would:
In addition, ETA proposes the Secretary of Labor be authorized to grant waivers requested by states of certain Federal UC requirements in order for states to run cost-neutral demonstration projects that would accelerate the reemployment of UC claimants or improve the effectiveness of the state in administering its UC program. State Administration
Unemployment Insurance (UI) State Administration funds are awarded to finance the administrative costs of the UI program for eligible workers through Federal and State cooperation; and to administer payment of Trade Adjustment Assistance, Disaster Unemployment Assistance, and Unemployment Compensation for Federal employees and ex-service members. The request is based on the projected number of Average Weekly Insured Unemployment (AWIU) claims, including processing benefit payments for the Trade Act of 1974, as amended. If the projection for UI claims proves to be too low, the budget provides a mechanism to “trigger on” additional funds to finance the unanticipated workload. UI State Administration includes funding for Reemployment and Eligibility Assessments, which seek to reduce erroneous UI benefit payments, decrease the avoidance of unemployment tax liability, and improve overpayments collections and tax assessments. The funds support in-person interviews of unemployed workers at the One-Stop Career Centers. These interviews are designed to offer services to help workers become employed and determine their continued eligibility to receive weekly UI benefits. Authorization for this program is the Social Security Act, as amended, 42 U.S.C. 501- 504, 1101-1109; Trade Act of 1974, as amended, Public Law 93-618, 88 Stat . 2024, 19 U.S.C.2311; Federal Unemployment T ax Act , as amended, 26 U.S.C. 3404 note; Federal Employees and Ex-Service Members, 5 U.S.C. 8501 and 8521; Robert T . Stafford Disaster Relief and Emergency Assistance Act, as amended, Public Law 100-707, 88 Stat . 153, 42 U.S.C. 5171. For FY 2009, the funds requested for UI are sufficient to process 2.790 million Average Weekly Insured Unemployment (AWIU) including processing benefit payments for the Trade Act of 1974, as amended. The request continues the contingency reserve language which provides for additional funds to meet unanticipated workload. National Activities
Unemployment Insurance National Activities provides funds to support the states collectively in administering their state UI programs. These activities include: (1) assisting states in applying common technology-based solutions to improve the efficiency and performance of their UI operations, (2) supporting the private telecommunications network which links state agencies for interstate and combined wage claims purposes and through which they obtain information necessary for Federal civilian and military claims processing, (3) financing the purchase of standard hardware and software used by states to report critical economic and other data/reports to the Department electronically, (4) supporting training, and (5) contracting for actuarial support for state trust fund management. These funds are authorized under Title III of the Social Security Act, as amended (42 U.S.C. 502-504). In FY 2009, funding is requested to convert the existing IT infrastructure that supports the collection and storage of critical data on claims, payments, taxes and other UI activities to a database system which conforms to DOL's database standards. The initial claims data collected through the IT infrastructure and reported weekly are a leading economic indicator closely monitored by economists and a key component of the Composite Index of Leading Economic Indicators. In addition, analysis of these data is an integral component in ETA's responsibility to ensure proper and efficient administration of Federal grants, to measure state performance, and to provide information for monitoring and fiscal management. Employment Service
Authorized by the Wagner-Peyser Act, the Employment Service helps jobseekers to secure employment by providing a variety of job search assistance and information services without charge. Such services can be provided through self-help or are staff-assisted. Employers are also a primary customer of the Employment Service and are provided with access to regional workforce and economic information, job listing services, referral of qualified applicants, support in applicant screening, support for job fairs, tax credits for hiring targeted populations, and customized services. Under the Workforce Investment Act, the public Employment Service has evolved from a nationwide system of state-administered local employment offices to participating as a One-Stop delivery system for educating and employing a prepared workforce. The FY 2009 budget includes a legislative proposal, in which funds previously appropriated for the Employment Service, together with funds previously appropriated for the Workforce Investment Act (WIA) Adult, Dislocated Worker and Youth Programs, be allocated to states as a single funding stream. States would use these funds primarily to provide Career Advancement Accounts to individuals in need of employment assistance. A portion of this funding would also be used by states to provide employment services such as career assessments, workforce information, and job placement assistance. The FY 2009 budget also proposes to end funding for Employment Service state grants. Employment Service National Activities
The Employment Service National Activities appropriation provides funding to support Technical Assistance and Training (TAT) activities that build the capacity of the workforce investment system to provide critical core services such as career guidance and connecting businesses to the workers they need. These funds also finance unfunded liabilities in those states where independent retirement plans for State Workforce Agency employees were established prior to the introduction of state employee retirement systems. This account also provides funding for the administration of the Work Opportunity Tax Credit. Employment Service National Activities are funded through the State Unemployment Insurance and Employment Service Operations appropriation. The FY 2009 Budget includes no funding for this account except for state employee retirement systems. The Administration proposes that funds previously appropriated for the Employment Service, together with funds previously appropriated for the Workforce Investment Act (WIA) Adult, Dislocated Worker and Youth Programs, be allocated to states as a single funding stream for Career Advancement Accounts and employment services. Also, as part of the President's job training reform proposal, funding for administration of the WOTC program would be moved from the Employment Service National Activity request to the Career Advancement Account line item. Foreign Labor Certification State Grants
ETA administers several foreign labor certification programs. In prior years appropriations authorized from the SUIESO/National Activities account funded state responsibilities for processing temporary labor certification applications under the H-2A agricultural and H-2B non-agricultural worker programs and for providing employers with prevailing wage determinations for the H-1B and Permanent (PERM) programs. Starting in FY 2009 funds for state responsibilities will be appropriated in a new Foreign Labor Certifications account along with funds for Federal Administration (see page 28). TAT-SWA Retirement
The Employment Service National Activities appropriation provides funding to support Technical Assistance and Training (TAT) activities that build the capacity of the workforce investment system to provide core services such as workforce and economic information and career guidance, and connect businesses to skilled workers. These funds also finance unfunded liabilities in those states where independent retirement plans for State Workforce Agency employees were established prior to the introduction of state employee retirement systems. WOTC
State administration of the Work Opportunity Tax Credit (WOTC) has traditionally been funded from this line item. Congress reauthorized the tax credit through August 31, 2011. Under the President's legislative proposal for job training reform, the funding previously requested for the WOTC Program would be consolidated with WIA Adult, WIA Dislocated Worker, WIA Youth, and Employment Service funding and allocated to states as a single funding stream for Career Advancement Accounts and employment services. Governors would draw from this single funding stream as necessary for the administration of the WOTC program. Employment Service: Grants to States
Employment Service Grants-to-States funds are allotted to each State Workforce Agency in accordance with the formula set forth in Section 6 of the Wagner-Peyser Act (29 U.S.C. 493). The formula is based on each state's share of the civilian labor force and unemployment. The Secretary of Labor is required to set aside up to three percent of the total available funds to assure that each State Workforce Agency will have sufficient resources to provide staff and other resources necessary to carry out employment service activities and related administrative and support functions on a statewide basis. Under the current law request, the FY 2009 Budget includes no funds for Employment Service Grants to States. The Administration believes these labor exchange/employment services should be provided exclusively through the One-Stop Career Center system. This should be the case whether or not the Congress accepts the Administration's consolidation proposal. Given the severe constraints on funding for employment and training programs, we cannot afford to continue funding these duplicative services and programs. Workforce Information-Electronic Tools-System Building
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