Workers’ Compensation Board
The Enacted Budget makes no changes to the Executive Budget’s State Operations appropriations. (analysis as of March 31, 2009)
The Executive Budget proposes savings of $3.5 million related to attrition and administrative staff efficiencies for 6 FTEs in SFY 2008-09.
The State Operations proposed $5.8 million increase reflects salary and other fixed cost increases.
Article VII language is proposed to clarify the basis of assessments for insurance carriers. Surplus funds collected under current law would be paid to the Workers’ Compensation Board to support reform efforts and provide financial plan savings of $50 million in SFY 2008-09 and $20 million in SFY 2009-10.The Executive Budget recommends (analysis as of December 16, 2008):
A SFY 2009-10 workforce of 1,533. This maintains the level of FTEs from the adjusted FTE level for FY 2008-09. The following chart identifies adjustments in the current fiscal year’s FTEs along with the recommended differences in FY 2009-10 FTEs by program (if the FTE’s are the same the program is not listed):
|
Program |
FY 2008-09 Adjustment |
FY 2009-10 Difference |
|
Workers Compensation |
-6 |
0 |
The difference between the estimated FTEs for SFY 2008-09 and the adjusted level of 2008-09 FTEs is -6. This should be addressed at statewide labor management.
The total appropriation for Personal Service is $92.8 million, an $8.1 million increase (+9.6%) from SFY 2008-09. However, the Agency Presentation indicates that the total personal service appropriation for SFY 2009-10 is $91.6 million. It appears that the Agency Presentation does not include the personal service appropriations allocated to the two Maintenance Undistributed (MU) accounts, which together total a personal service appropriation of $1.2 million. The Agency Presentation also indicates that the increase in personal service is only $844,000. The difference in the amount of the increase reflects adjustments due to the agency-wide reductions made during the fiscal year and due to the Special Pay Bill, which contained negotiated union raises.
An All Funds total of $237.2 million, which is a decrease of $24.1 million (-9.2%) from SFY 2008-09. However, the Agency Presentation shows an All Funds total of $217.4 million for SFY 2009-10, a net decrease of $54.1 million. It is unclear why there is a discrepancy between what the appropriation bill reports and what the Agency Presentation indicates as the total All Funds appropriation for SFY 2009-10. The difference in the amount of the increase from SFY 2008-09 to SFY 2009-10, reflects adjustments that were made during the fiscal year due to agency-wide reductions and negotiated union raises.
The All Funds net change primarily reflects a $39.7 million or -66.7% decrease in the Workers’ Compensation contingency appropriation. This decrease is offset by a 4,696% or $19.6 million increase within the Workers’ Compensation Program’s Occupational Injuries and Illness MU account. This MU is for improving services performed by the Workers’ Compensation Board, provided however, that up to $10 million may be suballocated to the Department of Labor (DOL). In prior years this account was only for suballocation to the DOL. This appropriation is primarily for nonpersonal services, specifically contractual services. It is unclear why these changes occurred, it should be clarified and addressed at statewide labor management.
The following programs have an increase in personal service funding that is not associated with an increase in FTEs in SFY 2009-10. These funding and position changes should be clarified with management.o
Disability Benefits, SRO (+138,000 or 3.6%).o
System Modernization Program, SRO (+$283,000 or 5.6%).o
Workers’ Compensation Program, SRO (+$6.96 million or +9.2%).o
Workers’ Compensation Program (SRO), Occupational Injuries and Illness, MU (+$749,000 or +298.4%).
The Workers’ Compensation Board employed an estimated 70 employees under consultant contracts in SFY 2008-09 at an estimated cost of $10.8 million or an average cost of $154,529 per consultant contract employee. It is estimated that $9.8 million will be allocated for consultant contracts in SFY 2009-10 for 63 employees, at an average cost of $155,032 per consultant contract employee.
The following programs had substantial increases in the proposed contractual services appropriation when compared to SFY 2007-08:1. Workers’ Compensation Program (SRO), Occupational Injuries and Illness, MU (+$14.5 million or +46,761%).
The following programs had substantial decreases in the proposed contractual services appropriation when compared to SFY 2007-08:o
Disability Benefits, SRO (-$407,000 or -21.7%).o
System Modernization, SRO (-$6.4 million or -21.5%).o
Workers’ Compensation Program, SRO (-$2.3 million or -6.8%).
| Workers Compensation Board | |||||
| Program Details-State Operations | |||||
| Enacted | Proposed | Enacted | Change in | Percent | |
| Program | 2008-09 Budget | 2009-10 Budget | 2009-10 Budget | Appropriation | Change |
| All Funds | $261,261,000 | $237,205,000 | $237,205,000 | ($24,056,000) | -9.2% |
| Special Revenue-Other (SRO) | $261,261,000 | $237,205,000 | $237,205,000 | ($24,056,000) | -9.2% |
| Personal Services | $84,634,000 | $92,765,000 | $92,765,000 | $8,131,000 | 9.6% |
| Contractual Services | $65,767,000 | $71,159,000 | $71,159,000 | $5,392,000 | 8.2% |
| Disability Benefits (SRO) | $7,761,000 | $7,339,000 | $7,339,000 | ($422,000) | -5.4% |
| Personal Service | $3,786,000 | $3,924,000 | $3,924,000 | $138,000 | 3.6% |
| Regular | $3,761,000 | $3,899,000 | $3,899,000 | $138,000 | 3.7% |
| Holiday/overtime compensation | $25,000 | $25,000 | $25,000 | $0 | 0.0% |
| Nonpersonal Service | $3,975,000 | $3,415,000 | $3,415,000 | ($560,000) | -14.1% |
| Supplies and materials | $68,000 | $68,000 | $68,000 | $0 | 0.0% |
| Travel | $7,000 | $7,000 | $7,000 | $0 | 0.0% |
| Contractual Services | $1,875,000 | $1,468,000 | $1,468,000 | ($407,000) | -21.7% |
| Equipment | $15,000 | $15,000 | $15,000 | $0 | 0.0% |
| Finge Benefits | $1,877,000 | $1,722,000 | $1,722,000 | ($155,000) | -8.3% |
| Indirect Costs | $133,000 | $135,000 | $135,000 | $2,000 | 1.5% |
| System Modernization (SRO) | $40,374,000 | $34,116,000 | $34,116,000 | ($6,258,000) | -15.5% |
| Personal Service | $5,015,000 | $5,298,000 | $5,298,000 | $283,000 | 5.6% |
| Regular | $4,942,000 | $5,225,000 | $5,225,000 | $283,000 | 5.7% |
| Holiday/overtime compensation | $73,000 | $73,000 | $73,000 | $0 | 0.0% |
| Nonpersonal Service | $35,359,000 | $28,818,000 | $28,818,000 | ($6,541,000) | -18.5% |
| Supplies and materials | $99,000 | $99,000 | $99,000 | $0 | 0.0% |
| Travel | $67,000 | $67,000 | $67,000 | $0 | 0.0% |
| Contractual Services | $29,665,000 | $23,278,000 | $23,278,000 | ($6,387,000) | -21.5% |
| Equipment | $2,867,000 | $2,867,000 | $2,867,000 | $0 | 0.0% |
| Fringe Benefits | $2,485,000 | $2,325,000 | $2,325,000 | ($160,000) | -6.4% |
| Indirect Costs | $176,000 | $182,000 | $182,000 | $6,000 | 3.4% |
| Workers' Comp Prog. (SRO) | $213,126,000 | $195,750,000 | $195,750,000 | ($17,376,000) | -8.2% |
| Personal Service | $75,397,000 | $82,358,000 | $82,358,000 | $6,961,000 | 9.2% |
| Regular | $74,924,000 | $81,885,000 | $81,885,000 | $6,961,000 | 9.3% |
| Temporary service | $171,000 | $171,000 | $171,000 | $0 | 0.0% |
| Holiday/overtime compensation | $302,000 | $302,000 | $302,000 | $0 | 0.0% |
| Nonpersonal Service | $77,487,000 | $73,235,000 | $73,235,000 | ($4,252,000) | -5.5% |
| Supplies and materials | $1,434,000 | $1,034,000 | $1,034,000 | ($400,000) | -27.9% |
| Travel | $1,536,000 | $1,036,000 | $1,036,000 | ($500,000) | -32.6% |
| Contractual Services | $34,196,000 | $31,886,000 | $31,886,000 | ($2,310,000) | -6.8% |
| Equipment | $307,000 | $307,000 | $307,000 | $0 | 0.0% |
| Fringe Benefits. | $37,375,000 | $36,139,000 | $36,139,000 | ($1,236,000) | -3.3% |
| Indirect Costs | $2,639,000 | $2,833,000 | $2,833,000 | $194,000 | 7.4% |
| Maint.Undistrib. | $774,000 | $20,357,000 | $20,357,000 | $19,583,000 | 2530.1% |
| MU - Occupational Injuries and Illness | $417,000 | $20,000,000 | $20,000,000 | $19,583,000 | 4696.2% |
| Personal Service | $251,000 | $1,000,000 | $1,000,000 | $749,000 | 298.4% |
| Regular | $251,000 | $1,000,000 | $1,000,000 | $749,000 | 298.4% |
| Nonpersonal Service | $166,000 | $19,000,000 | $19,000,000 | $18,834,000 | 11345.8% |
| Supplies and materials | $3,000 | $1,000,000 | $1,000,000 | $997,000 | 33233.3% |
| Travel | $2,000 | $0 | $0 | ($2,000) | -100.0% |
| Contractual Services | $31,000 | $14,527,000 | $14,527,000 | $14,496,000 | 46761.3% |
| Equipment | $2,000 | $3,000,000 | $3,000,000 | $2,998,000 | 149900.0% |
| Fringe benefits | $118,000 | $439,000 | $439,000 | $321,000 | 272.0% |
| Indirect costs | $10,000 | $34,000 | $34,000 | $24,000 | 240.0% |
| MU - Workers Compensation Benefit Pmt | $357,000 | $357,000 | $357,000 | $0 | 0.0% |
| Personal Service | $185,000 | $185,000 | $185,000 | $0 | 0.0% |
| Regular | $185,000 | $185,000 | $185,000 | $0 | 0.0% |
| Nonpersonal Service | $172,000 | $172,000 | $172,000 | $0 | 0.0% |
| Supplies and materials | $5,000 | $5,000 | $5,000 | $0 | 0.0% |
| Travel | $1,000 | $1,000 | $1,000 | $0 | 0.0% |
| Equipment | $5,000 | $5,000 | $5,000 | $0 | 0.0% |
| Fringe benefits | $84,000 | $84,000 | $84,000 | $0 | 0.0% |
| Indirect costs | $77,000 | $77,000 | $77,000 | $0 | 0.0% |
| Workers Compensation Acct (p.237) | $59,468,000 | $19,800,000 | $19,800,000 | ($39,668,000) | -66.7% |