Workers' Compensation Board
The Enacted Budget passed by the Legislature on May 1, 2003 makes the following changes to the Executive Budget:
· Adds $3.8 million to the Workers’ Compensation program reflecting the denial of the Executive proposal to move off-budget certain costs for workers’ compensation benefits and payments for employees of insolvent self-insured companies. This added appropriation does not reflect an increase in authorized spending.
The Executive Budget recommends (analysis as of February 7, 2003):
· An FTE level of 1,577 which represents a decrease of 40 positions from the adjusted SFY 2002-03 FTE workforce. The adjusted FTE workforce for 3/31/03 is 58 FTEs lower than the 3/31/03 FTE workforce that was estimated in the SFY 2002-03 Executive Budget. 6 FTEs were eliminated in the Disability Benefits program, 5 FTEs were eliminated in the Systems Modernization program, and 47 FTEs were eliminated in the Workers Compensation program beyond what was anticipated in the enacted SFY 2002-03 budget which provided for no FTE reductions in the agency. This issue should be clarified at a Statewide Labor/Management meeting.
· In SFY 2003-04, 40 FTEs will be eliminated through attrition. This includes 38 FTEs in the Workers Compensation program, 1 FTE in the Disability Benefits program and 1 FTE in the Systems Modernization program. Taking into account the unexpected FTE reductions in SFY 2002-03, the Workers Compensation Board will lose a total of 98 FTEs from the SFY 2002-3 workforce that was estimated in the enacted SFY 2002-03 budget. According to the Assembly budget analysis, all FTE reductions in SFY 2003-04 will be accomplished through early retirements and other attrition.
· A $3,933,000 or 2.3% decrease in the overall State Operations budget for the Workers Compensation Board.
· A $209,000 decrease in the personal services appropriation for the Disability Benefits program, reflecting the overall 7 FTE loss in the program.
· A $269,000 decrease in the personal services appropriation for the Systems Modernization program, reflecting the overall 6 FTE loss in the program. There is also an unexplained $450,000 increase in the nonpersonal service appropriation for this program.
· A $2,581,000 decrease in the personal services appropriation for the Workers Compensation program, reflecting the overall 85 FTE loss in the program.
· Article VII legislation is proposed to move the payments made by the Workers' Compensation Board on behalf of insolvent self-insured private employers to sole custody, non-appropriated funds. Deposits into the Fund come from a special assessment on self-insured employers.
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Workers' Compensation Board |
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Program Details-State Operations |
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Enacted |
Proposed |
Enacted |
Change in |
Percent |
|
Program |
2002-03 Budget |
2003-04 Budget |
2003-04 Budget |
Appropriation |
Change |
|
All Funds |
$167,640,000 |
$163,707,000 |
$167,507,000 |
($133,000) |
-0.1% |
|
Special Revenue-Other (SRO) |
$167,640,000 |
$163,707,000 |
$167,507,000 |
($133,000) |
-0.1% |
|
|
|
|
|
|
|
|
Disability Benefits (SRO) |
$6,933,000 |
$6,727,000 |
$6,727,000 |
($206,000) |
-3.0% |
|
Personal Service |
$3,756,000 |
$3,547,000 |
$3,547,000 |
($209,000) |
-5.6% |
|
Nonpersonal Service |
$1,750,000 |
$1,767,000 |
$1,767,000 |
$17,000 |
1.0% |
|
Finge Benefits |
$1,273,000 |
$1,286,000 |
$1,286,000 |
$13,000 |
1.0% |
|
Indirect Costs |
$154,000 |
$127,000 |
$127,000 |
($27,000) |
-17.5% |
|
|
|
|
|
|
|
|
System Modernization (SRO) |
$35,458,000 |
$35,616,000 |
$35,616,000 |
$158,000 |
0.4% |
|
Personal Service |
$4,544,000 |
$4,275,000 |
$4,275,000 |
($269,000) |
-5.9% |
|
Nonpersonal Service |
$29,188,000 |
$29,638,000 |
$29,638,000 |
$450,000 |
1.5% |
|
Fringe Benefits |
$1,540,000 |
$1,549,000 |
$1,549,000 |
$9,000 |
0.6% |
|
Indirect Costs |
$186,000 |
$154,000 |
$154,000 |
($32,000) |
-17.2% |
|
|
|
|
|
|
|
|
Workers' Comp Prog. (SRO) |
$125,249,000 |
$121,364,000 |
$125,164,000 |
($85,000) |
-0.1% |
|
Personal Service |
$69,551,000 |
$66,970,000 |
$66,970,000 |
($2,581,000) |
-3.7% |
|
Nonpersonal Service |
$28,652,000 |
$27,099,000 |
$27,099,000 |
($1,553,000) |
-5.4% |
|
Fringe Benefits. |
$23,578,000 |
$24,269,000 |
$24,269,000 |
$691,000 |
2.9% |
|
Indirect Costs |
$2,852,000 |
$2,410,000 |
$2,410,000 |
($442,000) |
-15.5% |
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WC Law §50(5)(f) |
$0 |
$0 |
$3,800,000 |
$3,800,000 |
100.0% |
|
Maint.Undistrib. |
$616,000 |
$616,000 |
$616,000 |
$0 |
0.0% |