Workers' Compensation Board
The enacted budget makes the following changes to the Executive Budget (analysis as of March 31, 2005):
· The Legislature rejected the Governor’s proposal to merge the Workers Compensation Board into DOL and restores funding for a stand-alone WCB at the same level as proposed in the SFY2005-06 Executive Budget with the Department of Labor (DOL) budget. 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 Executive Budget recommends (analysis as of January 20,2005):
- Loss of 1,544 FTE positions;
- 1,539 will be lost due to the proposed merger of WCB with the Department of Labor (DOL)
- Another 5 FTE positions will be lost due to attrition in the Workers Compensation program, which accounts for 1,407 positions within the WCB.
- The merger would require Article VII legislation that would repeal the existing Article 8 of the Workers’ Compensation Law that specifies the Board’s composition and statutory framework and transfers administration of WCB and all existing functions, powers and duties to DOL. These sections also provide for the transfer of all WCB employees to DOL, authorize the merger of administrative functions and claimant services, and continue WCB’s autonomy in making case determinations without Labor Commissioner input or control.
- A $13.9 million (8.2 percent) increase in All Funds budget for the WCB.
- The majority of this increase, or $12 million (9.5 percent) goes to the Workers’ Compensation Program.
- An increase of $655,000 (9.5 percent) for Disability Benefits.
- An increase of $1.1 million (3.1 percent) for System Modernization.
Program Details-State Operations
Enacted
Proposed
Enacted
Change in
Percent
Program
2004-05 Budget
2005-06 Budget
2005-06 Budget
Appropriation
Change
All Funds
$170,257,000
$184,196,000
$184,196,000
$13,939,000
8.2%
Special Revenue-Other (SRO)
$170,257,000
$184,196,000
$184,196,000
$13,939,000
8.2%
Disability Benefits (SRO)
$6,861,000
$7,516,000
$7,516,000
$655,000
9.5%
Personal Service
$3,492,000
$3,856,000
$3,856,000
$364,000
10.4%
Nonpersonal Service
$1,771,000
$1,791,000
$1,791,000
$20,000
1.1%
Finge Benefits
$1,478,000
$1,740,000
$1,740,000
$262,000
17.7%
Indirect Costs
$120,000
$129,000
$129,000
$9,000
7.5%
System Modernization (SRO)
$35,694,000
$36,798,000
$36,798,000
$1,104,000
3.1%
Personal Service
$4,209,000
$4,646,000
$4,646,000
$437,000
10.4%
Nonpersonal Service
$29,558,000
$29,898,000
$29,898,000
$340,000
1.2%
Fringe Benefits
$1,780,000
$2,096,000
$2,096,000
$316,000
17.8%
Indirect Costs
$147,000
$158,000
$158,000
$11,000
7.5%
Workers' Comp Prog. (SRO)
$127,702,000
$139,882,000
$139,882,000
$12,180,000
9.5%
Personal Service
$65,941,000
$72,558,000
$72,558,000
$6,617,000
10.0%
Nonpersonal Service
$30,960,000
$31,317,000
$31,317,000
$357,000
1.2%
Fringe Benefits.
$27,891,000
$32,843,000
$32,843,000
$4,952,000
17.8%
Indirect Costs
$2,294,000
$2,461,000
$2,461,000
$167,000
7.3%
Maint.Undistrib.
$616,000
$703,000
$703,000
$87,000
100.0%