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Remarks Prepared for Delivery by
U.S. Secretary of Labor Elaine L. Chao
U.S. House of Representatives Committee on Appropriations
Subcommittee on Labor-HHS-Education
Washington, D.C.
Thursday, April 26, 2007
Chairman Obey, Congressman Walsh, Congressman Regula, Members of the Subcommittee, thank you for the opportunity to present the Administration's Fiscal Year 2008 budget for the Department of Labor. The total request for the Department is $50.4 billion, $10.6 billion of which is for discretionary spending.
The Department's FY 2008 budget focuses on four overall priorities: protecting workers' safety and health; protecting workers' pay, benefits, pensions, and union dues; securing the employment rights of America's veterans; and increasing the competitiveness of America's workforce.
In FY 2008, $1.5 billion is requested for the Department's worker protection activities.
The FY 2008 budget request for Mine Safety and Health Administration is $313.5 million and 2,306 FTE.
The request will allow MSHA to continue implementing the historic Mine Improvement and New Emergency Response (MINER) Act, the most sweeping mine safety legislation in 30 years.
The request includes $16.6 million specifically targeted to retain the 170 mine safety enforcement personnel that were added in 2006 and 2007 in response to the increase in coal mine fatalities.
The budget will support MSHA's efforts to provide for the following:
- Approval of Emergency Response Plans;
- Strengthening compliance through increased civil penalties;
- Improving the safety of abandoned areas of mines; and
- Increasing the effectiveness of mine rescue teams.
The request will also enable MSHA to continue testing and evaluating promising new technologies that could be deployed in support of mine rescue operations. The FY 2008 request includes $490.3 million and 2,186 FTE for the Occupational Safety and Health Administration.
The request will enable OSHA to focus its enforcement efforts on high-hazard industries that typically employ disproportionate numbers of vulnerable workers.
The FY 2008 budget request before this committee for the Employment Standards Administration is $699.6 million and 4,082 FTE.
The request for ESA includes $182.4 million and 1,336 FTE for the Wage and Hour Division.
The request for Wage and Hour includes funding for additional inspectors, enhanced enforcement in low wage industries, and a legislative proposal to increase civil monetary penalties associated with violation of child labor laws.
The ESA request also includes $84.2 million and 625 FTE for the Office of Federal Contract Compliance Programs to protect workers from discrimination by federal contractors.
Another $106.6 million and 867 FTE are requested for the Office of Workers' Compensation Programs. This agency administers several workers compensation programs, including EEOICPA. And the ESA request includes $56.9 million and 369 FTE for the Office of Labor-Management Standards.
For the Employee Benefits Security Administration, which protects the health and retirement benefits of 150 million workers, the FY 2008 request is $147.4 million and 855 FTE.
This request will enable EBSA to implement important regulations required under the Pension Protection Act.
This Nation's commitment to our veterans must be honored. The Department is committed to providing returning veterans with the support needed to make the transition back to the non-military workforce a smooth and successful one.
For the Department's Veterans' Employment and Training Service (VETS), the FY 2008 Budget request is $228.1 million and 244 FTE.
This will enable VETS to maximize employment opportunities for veterans and protect their employment.
As you know, the United States is transitioning to a knowledge-based economy. New jobs are being created, but nearly two-thirds require more education and higher skills. Our country's worker training programs need to keep pace with these developments and ensure that workers have the skills they need to remain competitive and succeed in the new economy.
It is noteworthy that since 2000, states carry-forward approximately $1.1-$1.7 billion each year in unspent Workforce Investment Act funds. Despite the legal authority to spend funds over three years, we believe there is a more urgent need for worker training. In this context, it makes no sense to us that over a billion dollars is being "banked" from year to year. And too much of the funding is tied up in bureaucratic red tape and duplicative infrastructure. Reform is urgently needed to create a more effective training system for our nation's workers.
Mr. Chairman, the Department's FY 2008 budget request will enable us to meet our key priorities: protecting workers; ensuring veterans employment rights; preparing workers for the 21st century economy; and maintaining fiscal discipline.
I will now be happy to answer any questions you may have.
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