Department of Labor
The enacted budget makes the following changes to the Executive Budget (analysis as of March 31, 2005):
· The Legislature denied the Governor’s proposal to transfer most of the adult VESID program from the State Education Department (SED) to the Department of Labor (DOL) and completely restored the adult VESID budget to the SED budget. The funding that appears in DOL’s budget for the VESID is a “null” appropriation because the Legislature did not enact the legislation necessary for it to be spent.
· The Legislature rejected the Governor’s proposal to merge the Workers Compensation Board into DOL and restore funding for a stand-alone WCB. The funding that appears in DOL’s budget for the Workers Compensation Board is a “null” appropriation because the Legislature did not enact the legislation necessary for it to be spent.
- The Legislature denied the Governor’s proposal to abolish the Hazard Abatement Board and fully restored funding ($430,000) for the Capital Abatement program in DOL’s Local Assistance budget.
- The Legislature’s budget increases the State Operations budget for the Department of Labor from $4,646.9 million to $4,648.3 million (exclusive of the null appropriations for the transfer of VESID and the Workers Compensation Board). The increase is entirely in General Fund support, which increases from $1.4 million to $3.1 million due to the restoration (at the 04-05 level) of the Employment Relations Board Program. The Executive had proposed merging this program with the Public Employment Relations Board into a new State Labor Relations Board.
The Executive Budget recommends (analysis as of January 20, 2005):
- An overall FTE level of 6,236, which represents a net increase of 2,098 from the adjusted 2004-2005 level, primarily reflecting the following agency mergers and transfers:
· an increase of 750 FTEs transferred from the Vocational Educational Services for Individuals with Disabilities (VESID) currently in the State Education Department (SED), under section 70.1 of the Civil Service Law;
· an increase of 1,539 FTEs transferred from the Workers’ Compensation Board (WCB) under section 70.1 of the Civil Service Law, into three programs in DOL: Workers’ Compensation (1,407 FTEs), Systems Modernization (81 FTEs) and Disability Benefits (51 FTEs);
· a reduction of 185 FTEs from the Administration Program reflecting the transfer of the Welfare to Work program from DOL into the Office of Temporary Disability Assistance (OTDA), under section 70.1 of the Civil Service Law;
· a reduction of 16 FTEs from the Employment Relations Board reflecting the merger into the State Relations Board, formerly the Public Employees Relations Board (PERB)
- Other FTE changes include an increase of 10 FTEs in the Occupational Safety and Health program (supported by Special Revenue-Other funds)
- In addition to the transfer of 1,539 FTEs in WCB, another 5 FTE positions will be lost due to attrition all in the Workers’ Compensation program which accounts for 1,407 FTE positions within that program. There will be no FTE position loss in the WCB’s Disability Benefits and Systems Modernization program.
- The WCB merger proposal also authorizes the merger of WCB’s administrative functions and claimant services with DOL’s. The proposal specifically continues WCB’s autonomy in making case determinations without the Labor Commissioner’s review, supervision, input or control. No cost savings other than the lost 5 FTEs is attributed to the transfer. This merger would be effective April 1, 2005 upon enactment.
- The VESID merger provides that the Department of Labor would provide all job-related services to VESID clients, including coordination of employment services. All programs relating to the education of children with disabilities will continue to be administered by SED (245 FTEs will remain in SED). The Office of Mental Retardation and Developmental Disabilities will assume responsibility for the intensive phase of supported employment services to individuals with developmental disabilities. No cost savings is attributed to this transfer although the DOB notes in its memorandum of support that the transfer would “result in improved program coordination and will lead to enhanced cost-effectiveness for vocational rehabilitation programs.” The administrative and fiscal implications of this separation of functions should be questioned at Labor-Management. The VESID merger would be effective April 1, 2005 upon enactment, except that provisions relating to the transfer of employees from VESID to DOL will take effect October 1, 2005 to facilitate an orderly transfer.
- The Executive Budget attributes no cost savings to the transfer of the Welfare to Work program in DOL to OTDA but notes that federal reauthorization of the TANF program will likely include increased work participation rates and the elimination of caseload reduction credits that currently help the State to meet current work participation requirements. It also notes that the State faces a potential $360 million penalty if it does not meet new federal work participation rates. It should also be noted that the Welfare to Work program was originally administered in the old Department of Social Services until its breakup under the Pataki administration in 1997 into several new agencies including OTDA.
- An All Funds appropriation of $4.6 billion, a decrease of $804 million (-14.8%).
- A reduction of $1.9 million or (58.3 percent) in General Fund support for DOL, primarily reflecting the transfer of the Employment Relations Board.
- An increase of $186.1 million, (146.6%) in Special Revenue-Other funds, reflecting the transfer of the Workers’ Compensation Board into DOL (1,539 FTEs) and 10 new FTEs in the Occupational Safety and Health program.
- A decrease of $1 billion (20.8%) in Enterprise funds (all in the Unemployment Insurance Benefit Fund). There are no positions supported by this fund, however, an explanation for this decrease should be sought at Labor-Management.
- The Employment and Training Program is reduced by $2 million (20.4%) reflecting the elimination of $500,000 in funding for the Combined Gifts and Bequests Fund (Special Revenue-Other), a $322,000 Maintenance Undistributed Account for training of social services district staff and for court ordered fees, and a $1.2 million decrease in the UI Interest and Penalty Fund.
- Funding for the Vocational and Educational Services for Individuals with Disabilities program shows a $95.6 million reduction of funding in the spreadsheet below leaving $44.6 million for DOL to administer the VESID program for adults. This reflects the transfer of 750 FTEs from SED for job related services for adult clients, while children’s services remain in SED (245 FTEs).
- Article VII legislation would eliminate the Hazard Abatement Board, add a Compliance Assistance component to the existing Office of Safety and Health Training and Education Program, and create a Worker Protection License.
Program Detail-State Operation
Enacted
Proposed
Enacted
Change in
Percent
Program
2004-05 Budget
2005-06 Budget
2005-06 Budget
Appropriation
Change
All Funds
$5,450,666,000
$4,646,559,500
$4,648,279,500
($802,386,500)
-14.7%
General Fund
$3,401,000
$1,417,000
$3,137,000
($264,000)
-7.8%
Special Revenue-Fed
$520,303,000
$532,074,500
$532,074,500
$11,771,500
2.3%
Special Revenue-Other
$126,962,000
$313,068,000
$313,068,000
$186,106,000
146.6%
Enterprise Fund
$4,800,000,000
$3,800,000,000
$3,800,000,000
($1,000,000,000)
-20.8%
All Funds
$5,450,666,000
$4,646,559,500
$4,648,279,500
($802,386,500)
-14.7%
General Fund
$3,401,000
$1,417,000
$3,137,000
($264,000)
-7.8%
Special Revenue-Fed
$520,303,000
$532,074,500
$487,388,000
($32,915,000)
-6.3%
Special Revenue-Other
$126,962,000
$313,068,000
$128,416,000
$1,454,000
1.1%
Enterprise Fund
$4,800,000,000
$3,800,000,000
$3,800,000,000
($1,000,000,000)
-20.8%
Administration
$454,162,000
$421,761,000
$421,761,000
($32,401,000)
-7.1%
Personal Service
$904,000
$1,111,000
$1,111,000
$207,000
22.9%
Nonpersonal Service
$255,000
$306,000
$306,000
$51,000
20.0%
Maintenance Undist.
$200,000
$0
$0
($200,000)
-100.0%
Special Revenue-Federal
$452,803,000
$420,344,000
$420,344,000
($32,459,000)
-7.2%
Employment & Training
$9,822,000
$7,817,000
$7,817,000
($2,005,000)
-20.4%
Maintenance Undist.
$322,000
$0
$0
($322,000)
-100.0%
Special Revenue-Other
$9,500,000
$7,817,000
$7,817,000
($1,683,000)
-17.7%
Combined Gifts, Grants and Bequests Fund - (SRO)
$500,000
$0
$0
($500,000)
-100.0%
UI Interest & Penalty Fund - (SRO)
$9,000,000
$7,817,000
$7,817,000
($1,183,000)
-13.1%
Employment Relations Bd.
$1,720,000
$0
$1,720,000
$0
0.0%
Personal Service
$1,251,000
$0
$1,251,000
$0
0.0%
Nonpersonal Service
$469,000
$0
$469,000
$0
0.0%
Labor Standards
$19,756,000
$20,991,000
$20,991,000
$1,235,000
6.3%
Special Revenue-Other (SRO)
$19,756,000
$20,991,000
$20,991,000
$1,235,000
6.3%
OSHA-T and E Acct. - (SRO)
$7,324,000
$8,002,000
$8,002,000
$678,000
9.3%
Personal Service
$4,487,000
$4,737,000
$4,737,000
$250,000
5.6%
Nonpersonal Service
$782,000
$916,000
$916,000
$134,000
17.1%
Fringe Benefits
$1,898,000
$2,188,000
$2,188,000
$290,000
15.3%
Indirect Costs
$157,000
$161,000