Department of Labor
The enacted budget makes the following changes to the Executive Budget (analysis as of 4/2/2007):
· Decreases the department’s proposed All Funds Appropriation by $3.1 million.
· Cuts $3.5 million from the Employment and Training program’s maintenance undistributed contractual services appropriation. We believe this reduction is related to the unemployment insurance modernization program but this should be clarified at Statewide Labor Management.
· Adds $400,000 to the Occupational Safety and Health program in the OSHA T&E account; $150,000 of this increase is for personal service and $250,000 is for non-personal services including $200,000 for contractual services. It is possible that the additional personal service funding will support new positions; this issue should be clarified at Statewide Labor Management.
The Senate and Assembly recommend (analysis as of March 16, 2007):
Senate:
· Proposes an $8.5 million reduction in the Employment and Training Program in a maintenance undistributed appropriation for contractual services for services and expenses of the unemployment insurance system modernization project. There was a reduction of 15 FTEs associated with this Program in the Executive Budget.
· Eliminates $12.2 million in funding in the Occupational Safety and Health Program in Special Revenue Funds – Other for the OSHA Training and Education Account. This appropriation includes $3.2 million in personal services. There was an increase of 22 FTEs associated with this Program in the Executive Budget which are probably eliminated by this cut although the Senate report on their budget did not claim they were eliminated. The Senate had identified $3 million of this fund as targeted for UI Modernization purposes.
Assembly: Adds $350,000 (maintenance undistributed) for services and expenses related to the workers’ compensation reform law of 2007.
The 21-day amendments to the Executive Budget recommend the following changes (analysis as of February 22, 2007):
- Adds language to the Administration program’s Unemployment Insurance Fund that gives DOL appropriation authority to permit Federal Veterans’ grant funding for federal Fiscal Year 2007-08 to be used to pay performance incentives to DOL veterans’ program staff. This includes the 43 disabled veterans’ outreach program specialists and 34 local veterans’ employment representatives that are currently represented by PEF. Such payments, which are authorized in Federal law, are not currently permitted under State Civil Service Law. Over the past few years PEF has been engaged in bargaining with DOL management on such payments but we have been unable to reach agreement over how such payments will be distributed. We believe that such payments still need to be collectively bargained with PEF and we will clarify this issue with DOL management and the Division of Budget.
The Executive Budget recommends (analysis as of 2/2/07):
A FY 2007-08 workforce of 3,805. This is an increase of 10 FTEs from the adjusted FTE level for FY 2006-07. The following chart identifies adjustments in the current fiscal year’s FTEs along with the recommended differences in FY 2007-08 FTEs by program:
Program
FY 2006-07 Adjustment
FY 2007-08 Difference
Administration
(-151)
(-36)
Employment and Training
0
(-15)
Labor Standards
0
39
Occupational Safety and Health
0
22
- The total appropriation for Personal Service is $33,912,000 a 5% increase over the appropriation for SGY 2006-07.
- An All Funds decrease of (-$511,690,000), or (-11.7%) from SFY 2006-07. Most of this decrease is in the Unemployment Insurance Benefit Fund program’s Enterprise Fund appropriation (which we believe pays UI recipients) and the elimination of a $30 million Special Revenue other appropriation (we do not know how this funding was used by DOL). These issues should be clarified at statewide labor management. The Senate and Assembly indicate that the $30 million appropriation for the UI Interest Assessment has been eliminated because the state has repaid federal borrowing and the UI Trust Fund no longer has a structural deficit.
- An increase of $59.4 million in the Administration program which is due to a $71.8 million increase in the maintenance undistributed appropriation for this program offset by a $8.54 million decrease in the personal services appropriation (which accounts for the 36 FTE reduction in the program) and a $3.88 million decrease in the non-personal service appropriation. The Senate and Assembly attribute this increase to possible distribution of funds from a special Federal grant from the Reed Act, however the possible purpose of these funds is unclear. This should be clarified at statewide labor management.
- The Senate identifies $27 million in funding for UI Modernization: UI Reemployment Services ($9 million), UI Control Fund ($2 million), UI Interest and Penalty ($8.5 million), Labor Standards Fee and Penalty ($2 million), OSH Fee and Penalty ($3 million), OSH Training and Education ($3 million). The impact of using OSH funds for UI Modernization instead of their intended purpose should be clarified at statewide labor management.
- The reduction of 151 FTE positions in the Administration Program during SFY2006-07 appears to be related to the closure of the New York City TCC and the continued reduction of the hourly workforce at the TCCs; last year’s budget showed no FTE reduction in that program despite a significantly reduced appropriation. We need to clarify at statewide labor management where the 151 FTE reductions occurred during SFY2006-07 and where the 36 FTE position reductions will occur during SFY 2007-08.
- A $5 million increase in the Employment and Training program which is due to a $5 million increase in the program’s maintenance undistributed appropriation; all of which will be used for contractual services. In addition 15 FTE position will be eliminated from this program as the personal service appropriation for this program will only increase by $8,000. We need to clarify at statewide labor management where the 15 FTE reductions will occur during SFY 2007-08 and the purpose of the increase in the maintenance undistributed/contractual services appropriation.
- A $2.65 million increase in the Labor Standards program, $1.4 million of which is in personal services. 10 new positions will be created to enhance enforcement of the minimum wage law. How the other new 29 FTE positions will be used should be clarified at statewide labor management. The Senate indicates that the 10 FTEs for enforcement will be bilingual staff.
- It is estimated that the number of employees employed under consultant contracts will increase at DOL to 108 employees in SFY 2007-08, a rise of 11 contract employees (a 9% increase). Consultant contract employees will be paid $29.8 million in SFY 2007-08 or an average cost of $275,688 per consultant contract employee, a 9% increase over the average cost in SFY 2006-07. The purpose and use of these contract employees and whether they can be replaced by state employees should be clarified at statewide labor management.
Department of Labor Program Detail-State Operation Enacted Proposed Enacted Change in Percent Program 2006-07 Budget 2007-08 Budget 2007-08 Budget Appropriation Change All Funds $4,367,180,000 $3,855,490,000 $3,852,390,000 ($514,790,000) -11.8% General Fund $1,720,000 $1,720,000 $1,720,000 $0 0.0% Special Revenue-Fed $466,509,000 $525,961,000 $525,961,000 $59,452,000 12.7% Special Revenue-Other $98,951,000 $77,809,000 $74,709,000 ($24,242,000) -24.5% Enterprise Fund $3,800,000,000 $3,250,000,000 $3,250,000,000 ($550,000,000) -14.5% Personal Services $32,046,000 $33,912,000 $34,062,000 $2,016,000 6.3% Administration $395,009,000 $454,461,000 $454,461,000 $59,452,000 15.1% Special Revenue-Federal $395,009,000 $454,461,000 $454,461,000 $59,452,000 15.1% Employment & Training $8,144,000 $13,173,000 $9,673,000 $1,529,000 18.8% Special Revenue-Other $8,144,000 $13,173,000 $9,673,000 $1,529,000 18.8% UI Interest & Penalty Fund - (SRO) $8,144,000 $13,173,000 $9,673,000 $1,529,000 18.8% Personal Service $2,808,000 $2,808,000 Regular $2,808,000 $2,808,000 Nonpersonal Service $1,865,000 $1,865,000 Supplies and materials $15,000 $15,000 Travel $40,000 $40,000 Contractual Services $335,000 $335,000 Equipment $116,000 $116,000 Fringe benefits $1,300,000 $1,300,000 Indirect costs $59,000 $59,000 Maintenance Undistributed $8,500,000 $5,000,000 Nonpersonal Service $8,500,000 $5,000,000 Contractual Services $8,500,000 $5,000,000 Employment Relations Bd. $1,720,000 $1,720,000 $1,720,000 $0 0.0% Personal Service $1,251,000 $1,251,000 $1,251,000 $0 0.0% Regular $1,218,000 $1,218,000 Temporary service $33,000 $33,000 Nonpersonal Service $469,000 $469,000 $469,000 $0 0.0% Supplies and materials $36,000 $36,000 Travel $33,000 $33,000 Contractual Services $375,000 $375,000 Equipment $25,000 $25,000 Labor Standards $22,888,000 $25,546,000 $25,546,000 $2,658,000 11.6% Special Revenue-Other (SRO) $22,888,000 $25,546,000 $25,546,000