Department of Labor

Department of Labor

The 21-day amendments to the Executive Budget recommend the following changes (analysis as of February 13, 2008):

There are no cuts in the department’s overall appropriations, however the departments’ authorized fill level for SFY 2007-08 and SFY 2008-09 has been reduced by 100 FTEs from 3,647 to 3,547 (07-08) and from 3,643 to 3,543 (08-09). According to DOL management the eliminated FTE positions are all currently vacant positions.

According to Executive Board members at DO, the Disaster Relief program that is been shifted to ther Federal Emergency Management Agency has been handled primarily by the department’s Office of Special Investigations. However, recently they have been using DOL employees from other programs to supplement their effort, specifically Employer Services, a subset of the Division of Employment Services.

The Executive Budget recommends (analysis as of January 31, 2008):

A SFY 2008-09 workforce of 3,643. This is a decrease of (-4) FTEs from the adjusted FTE level for FY 2007-08. 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	(-156)	0
Employment Relations Board	0	(-4)
Employment and Training	0	(-5)
Labor Standards	(-2)	(+3)
Occupational Safety and Health	0	(+2)

There is no explanation for the large decrease in the number of FTE positions in the Administration program during SFY 2007-08. The department has lost and will continue to lose a large amount of federal funds and has closed some local offices. An explanation for this decrease should be sought at statewide labor management.

An All Funds decrease of (-$291 million), or (-7.6%), from $3.9 billion to $3.6 billion from the enacted SFY 2006-07 budget. $250 million of this decrease is in the Unemployment Insurance Benefit Fund Enterprise Fund used to pay unemployment insurance benefits and has no impact on the state workforce.
A total Personal Service appropriation of $38,624,000, a 4.8% increase over the appropriation for SFY 2007-08.
A $43.6 million decrease in the overall federal funds appropriated to the department, with all of the decrease in the Unemployment Insurance Benefit Fund program. It is unclear whether this decrease affects the department’s workforce but this issue should be clarified at statewide labor management.
Shifting the administration of federal disaster relief grants and loans out of the department to the Federal Emergency Management Agency. It is unclear which department program administered this program but we believe it was in the Administration program. This issue should be clarified at statewide labor management.
A decrease (-60) in the number of FTE contract employees from 115 in SFY 2007-08 to 55 in SFY 2008-09 while spending for this consultant only decreased slightly, from $37.2 million to $35.9 million. Therefore, the average annual amount spent on individual contract employees will nearly double from $323,672 in SFY 2007-08 to $653,923 in SFY 2008-09. The purpose of these contracts, the reason for the large increase in the per consultant costs, and whether stet employees can do this work should be discussed at statewide labor management
A Joint Enforcement Task Force will be established to focus on employers who intentionally misclassify workers as independent contractors instead of employees to pay them “off the books,” to avoid the cost of unemployment insurance, workers’ compensation, social security, State and Federal withholding, temporary disability insurance, minimum wage and overtime. It is unclear under what department program this task force will be funded. This issue should be clarified at statewide labor management.
The department’s budget narrative states that $17.8 million is recommended for the Unemployment Insurance Systems Modernization project, a decrease of $5 million from the SFY 2007-08 enacted Budget. However, while the department’s appropriation bill shows a $5 million decrease in the maintenance undistributed appropriation within the Employment and Training program for this project it also shows a $5 million increase in the Employment and Training program’s contractual service appropriation for this project. According to the Senate budget analysis the $17.8 million in funding is from three sources: UI Reemployment Services ($10.2 million), UI Control Fund ($2 million) and UI Interest and Penalty ($5 million). This issue should be clarified at statewide labor management.
Using available resources, the Department will initiate a Public Work Enforcement project to strengthen the enforcement of the state’s public work law, including payment of prevailing wages, use of apprentices and work in excess of eight hour per day/five days per week.
Proposed Article VII Legislation extends the statutory authority to assess a surcharge on employers to pay interest due to the Federal government in the event that the State would have to borrow Federal funds to cover UI claims.

Department of Labor
Program Detail-State Operation
	Enacted	Proposed	Change in	Percent
Program	2007-08 Budget	2008-09 Budget	Appropriation	Change
All Funds	$3,852,390,000	$3,561,441,000	($290,949,000)	-7.6%
General Fund	$1,720,000	$1,495,000	($225,000)	-13.1%
Special Revenue-Fed	$525,961,000	$482,328,000	($43,633,000)	-8.3%
Special Revenue-Other	$74,709,000	$77,618,000	$2,909,000	3.9%
Enterprise Fund	$3,250,000,000	$3,000,000,000	($250,000,000)	-7.7%

Personal Services	$36,870,000	$38,624,000	$1,754,000	4.8%
Contractual Services	$18,313,000	$18,865,000	$552,000	3.0%

Administration	$454,461,000	$460,828,000	$6,367,000	1.4%
Special Revenue-Federal	$454,461,000	$460,828,000	$6,367,000	1.4%

Employment & Training	$9,673,000	$9,673,000	$0	0.0%
Special Revenue-Other	$9,673,000	$9,673,000	$0	0.0%

UI Interest & Penalty Fund - (SRO)	$9,673,000	$9,673,000	$0	0.0%
Personal Service	$2,808,000	$2,847,000	$39,000	1.4%
Regular	$2,808,000	$2,847,000	$39,000	1.4%
Nonpersonal Service	$1,865,000	$6,826,000	$4,961,000	266.0%
Supplies and materials	$15,000	$19,000	$4,000	26.7%
Travel	$40,000	$77,000	$37,000	92.5%
Contractual Services	$335,000	$406,000	$71,000	21.2%
Equipment	$116,000	$21,000	($95,000)	-81.9%
Fringe benefits	$1,300,000	$1,263,000	($37,000)	-2.8%
Indirect costs	$59,000	$40,000	($19,000)	-32.2%
Contractual Services - UI System Modernization	$0	$5,000,000	$5,000,000	100.0%
Maintenance Undistributed	$5,000,000	$0	($5,000,000)	-100.0%
Nonpersonal Service	$5,000,000	$0	($5,000,000)	-100.0%
Contractual Services - UI System Modernization	$5,000,000	$0	($5,000,000)	-100.0%

Employment Relations Bd.	$1,720,000	$1,720,000	$0	0.0%
Personal Service	$1,251,000	$1,251,000	$0	0.0%
Regular	$1,218,000	$1,218,000	$0	0.0%
Temporary service	$33,000	$33,000	$0	0.0%
Nonpersonal Service	$469,000	$244,000	($225,000)	-48.0%
Supplies and materials	$36,000	$36,000	$0	0.0%
Travel	$33,000	$33,000	$0	0.0%
Contractual Services	$375,000	$150,000	($225,000)	-60.0%
Equipment	$25,000	$25,000	$0	0.0%
Special Revenue-Other	$0	$225,000	$225,000	100.0%

SERB Staff Arbitration Fee Acct - (SRO)	$0	$225,000	$225,000	100.0%
Nonpersonal Service	$0	$225,000	$225,000	100.0%
Contractual Services	$0	$225,000	$225,000	100.0%

Labor Standards	$25,546,000	$26,655,000	$1,109,000	4.3%
Special Revenue-Other (SRO)	$25,546,000	$26,655,000	$1,109,000	4.3%

OSHA-T and E Acct. - (SRO)	$9,707,000	$10,157,000	$450,000	4.6%
Personal Service	$5,664,000	$5,949,000	$285,000	5.0%
Regular	$5,625,000	$5,907,000	$282,000	5.0%
Temporary service	$38,000	$40,000	$2,000	5.3%
Holiday/overtime compensation	$1,000	$2,000	$1,000	100.0%
Nonpersonal Service	$4,043,000	$4,208,000	$165,000	4.1%
Supplies and materials	$92,000	$72,000	($20,000)	-21.7%
Travel	$185,000	$178,000	($7,000)	-3.8%
Contractual Services	$753,000	$872,000	$119,000	15.8%
Equipment	$103,000	$71,000	($32,000)	-31.1%
Fringe benefits	$2,716,000	$2,785,000	$69,000	2.5%
Indirect costs	$194,000	$230,000	$36,000	18.6%

DOL-Child Performer Protection Acct. - (SRO)	$664,000	$700,000	$36,000	5.4%
Personal Service	$397,000	$417,000	$20,000	5.0%
Regular	$397,000	$417,000	$20,000	5.0%
Nonpersonal Service	$267,000	$283,000	$16,000	6.0%
Supplies and materials	$5,000	$8,000	$3,000	60.0%
Travel	$11,000	$18,000	$7,000	63.6%
Contractual Services	$44,000	$40,000	($4,000)	-9.1%
Equipment	$2,000	$4,000	$2,000	100.0%
Fringe benefits	$191,000	$196,000	$5,000	2.6%
Indirect costs	$14,000	$17,000	$3,000	21.4%

DOL-Fee and Penalty Acct. - (SRO)	$11,387,000	$11,891,000	$504,000	4.4%
Personal Service	$6,791,000	$7,131,000	$340,000	5.0%
Regular	$6,791,000	$7,131,000	$340,000	5.0%
Nonpersonal Service	$4,596,000	$4,760,000	$164,000	3.6%
Supplies and materials	$93,000	$71,000	($22,000)	-23.7%
Travel	$188,000	$174,000	($14,000)	-7.4%
Contractual Services	$778,000	$853,000	$75,000	9.6%
Equipment	$50,000	$49,000	($1,000)	-2.0%
Fringe benefits	$3,256,000	$3,338,000	$82,000	2.5%
Indirect costs	$231,000	$275,000	$44,000	19.0%

BA - Public Work Enforce. Acct - (SRO)	$3,788,000	$3,907,000	$119,000	3.1%
Personal Service	$2,141,000	$2,216,000	$75,000	3.5%
Regular	$2,141,000	$2,216,000	$75,000	3.5%
Nonpersonal Service	$1,647,000	$1,691,000	$44,000	2.7%
Supplies and materials	$46,000	$32,000	($14,000)	-30.4%
Travel	$93,000	$123,000	$30,000	32.3%
Contractual Services	$384,000	$383,000	($1,000)	-0.3%
Equipment	$24,000	$29,000	$5,000	20.8%
Fringe benefits	$1,027,000	$1,038,000	$11,000	1.1%
Indirect costs	$73,000	$86,000	$13,000	17.8%

Occupational Safety&Health	$39,490,000	$41,065,000	$1,575,000	4.0%
Special Revenue-Other (SRO)	$39,490,000	$41,065,000	$1,575,000	4.0%

OSH Inspection Account - (SRO)	$21,794,000	$22,788,000	$994,000	4.6%
Personal Service	$11,572,000	$12,151,000	$579,000	5.0%
Regular	$11,567,000	$12,145,000	$578,000	5.0%
Holiday/overtime compensation	$5,000	$6,000	$1,000	20.0%
Nonpersonal Service	$10,222,000	$10,637,000	$415,000	4.1%
Supplies and materials	$155,000	$165,000	$10,000	6.5%
Travel	$724,000	$701,000	($23,000)	-3.2%
Contractual Services	$3,195,000	$3,159,000	($36,000)	-1.1%
Equipment	$206,000	$457,000	$251,000	121.8%
Fringe benefits	$5,548,000	$5,687,000	$139,000	2.5%
Indirect costs	$394,000	$468,000	$74,000	18.8%

OSHA-T and E Acct. - (SRO)	$12,604,000	$12,956,000	$352,000	2.8%
Personal Service	$3,357,000	$3,624,000	$267,000	8.0%
Regular	$3,356,000	$3,589,000	$233,000	6.9%
Temporary service	$0	$34,000	$34,000	100.0%
Holiday/overtime compensation	$1,000	$1,000	$0	0.0%
Nonpersonal Service	$9,247,000	$9,332,000	$85,000	0.9%
Supplies and materials	$251,000	$40,000	($211,000)	-84.1%
Travel	$125,000	$144,000	$19,000	15.2%
Contractual Services	$7,097,000	$7,246,000	$149,000	2.1%
Equipment	$42,000	$63,000	$21,000	50.0%
Fringe benefits	$1,620,000	$1,698,000	$78,000	4.8%
Indirect costs	$112,000	$141,000	$29,000	25.9%

DOL-Fee and Penalty Acct. - (SRO)	$5,092,000	$5,321,000	$229,000	4.5%
Personal Service	$2,889,000	$3,038,000	$149,000	5.2%
Regular	$2,884,000	$2,990,000	$106,000	3.7%
Temporary service	$0	$24,000	$24,000	100.0%
Holiday/overtime compensation	$5,000	$24,000	$19,000	380.0%
Nonpersonal Service	$2,203,000	$2,283,000	$80,000	3.6%
Supplies and materials	$72,000	$28,000	($44,000)	-61.1%
Travel	$255,000	$119,000	($136,000)	-53.3%
Contractual Services	$352,000	$531,000	$179,000	50.9%
Equipment	$40,000	$66,000	$26,000	65.0%
Fringe benefits	$1,385,000	$1,422,000	$37,000	2.7%
Indirect costs	$99,000	$117,000	$18,000	18.2%

Unemployment Ins. Benefit Fund	$3,321,500,000	$3,021,500,000	($300,000,000)	-9.0%
Special Revenue-Federal	$71,500,000	$21,500,000	($50,000,000)	-69.9%
Special Revenue-Other (SRO)	$0	$0
Enterprise Fund	$3,250,000,000	$3,000,000,000	($250,000,000)	-7.7%