U.S DEPARTMENT OF LABOR
FY 2006 BUDGET OVERVIEW

Introduction

The Department of Labor's (DOL's) FY 2006 Budget request is $11.5 billion in discretionary budget authority and 16,945 full-time equivalent (FTE) employees.

The FY 2006 Budget will allow the Department to continue its record-setting enforcement of worker protections and will provide innovative and effective training programs to help prepare workers for jobs in the 21^st Century economy.

FY 2006 Priorities

For FY 2006, the department's budget is centered on four key priorities:

• Protect workers' safety and health;
• Protect workers' pay, benefits, and union dues;
• Protect veterans' reemployment rights; and,
• Prepare workers for new job opportunities.

2004 Highlights

The FY 2006 Budget will build on the success of previous years. Under the Department's new Overtime Security Rule, which became final on August 23, 2004, overtime rights for 6.7 million workers have been strengthened. More workers are now getting overtime pay; the rules are clearer and easier to understand and apply; and explicit overtime protections for first responders, blue collar workers, and union members have been put in place.

The transparency and accountability of labor union finances have been enhanced under reforms implemented in 2004. These will ensure that union member rights are better protected and that members know much more about how their dues money is spent. Meaningful information about unions' financial transactions will soon be available and easily accessible to union members.

On the worker protection front, worker fatalities are at record lows, and occupational injury and illness rates declined significantly between 2002 and 2003, the most recent information available. Workplace fatalities among Hispanics have declined by 11.6% since 2001, and fatalities in the mining industry have fallen to an all-time low.

In 2004, more than 265,000 employees received nearly $196 million in back wages, including overtime, as a result of the Wage and Hour Division's enforcement.

The Employee Benefits Security Administration recovered more than $3 billion in monetary results in FY 2004, protecting workers' health, benefit, and retirement plans. This figure represents a 121% increase from the previous year.

In 2004, the Department continued implementing the President's High Growth Job Training Initiative, which is preparing workers for the jobs that are in demand in the 21^st Century. During 2005, the department will implement the President's Community College Initiative, which will foster partnerships between employers, community colleges, and workforce investment agencies. These programs demonstrate the Administration's commitment to innovative worker training programs that will better prepare Americans to take advantage of emerging opportunities.

Employment and Training Administration

¹TES includes advance appropriations of $2.443 billion in FY 2005 appropriated in FY 2004 for obligation in FY 2005, and $2.438 billion in FY 2006 appropriated in FY 2005 for obligation in FY 2006. The FY 2006 amount reflects a rescission of $25 million for Job Corps Construction. In addition, the FY 2005 level is made comparable to FY 2006 for the WIA Grant Consolidation.
²FY 2005 Request was under Income Maintenance; FY 2006 Request is separated into $39.7 million requested under Employment and Training and $48. 3 million requested under Income Maintenance.
³Funds Trade Adjustment Assistance benefits and training.
⁴Non-add item, see Black Lung Disability Trust Fund (BLDTF).
⁵Mandatory funding, non-add, included in Unemployment Trust Fund benefits.

The Employment and Training Administration's (ETA) mission is to contribute to the more efficient and effective functioning of the U.S. labor market by financing high quality job training; employment assistance; labor market information; and temporary, partial wage-loss replacement. The 2006 Budget reflects the President's goal of ensuring that workers live more productive and prosperous lives and helping businesses to be more competitive in the global economy. This Budget provides $47.1 billion for the Department of Labor (DOL) Employment and Training Administration, which is $1.3 billion above 2005 largely because of the expectation of increased costs of unemployment benefits due to growth of the labor force and average weekly benefit payments.

To accomplish the President's goal that no worker is left behind, the Administration proposes a three-pronged strategy:

Building a Demand Driven System

A demand-driven workforce investment system helps job seekers achieve self-sufficiency and promotes business prosperity. A system that is able to anticipate and respond to the needs of local and regional economies also helps employers respond to global economic pressures and contributes to the overall economic prosperity of the nation. To that end, ETA has implemented the President's High Growth Job Training Initiative.

To ensure no worker is left behind, strong partnerships between the public workforce investment system, business and industry, education and training providers, and faith-based and community-based organizations will be required. ETA will strive for a public workforce investment system that provides job seekers with more access to training so that they can gain the skills demanded by employers and succeed in the labor market.

The ETA Budget includes a major new proposal for reforming job training programs that builds on ideas first articulated by the President in April 2004. The President's job training reform proposal consolidates the WIA Adult, Dislocated Worker, and Youth funding streams and the Employment Service into a single grant to states. The proposal will provide greater flexibility to governors to “restructure for results” and will increase access to job training for America 's workers.

In addition to this key reform, states will have the option to consolidate their share of resources from certain other Federal job training and employment programs, into the state's consolidated grant. This option will provide Governors and local officials with more flexibility to design workforce investment systems that respond to the unique needs of their states, in exchange for stronger accountability. By choosing to consolidate additional programs, Governors will be empowered to train more workers, design a job training program and service delivery system that trains workers for jobs in the 21^st century, rationalize the way services are delivered, achieve better results, and reduce administrative overhead.

In addition, ETA's FY 2006 Budget request includes funding of $250 million for the President's Community College Initiative to provide Community-Based Job Training Grants, an employer-focused competitive grant program for job training at community and technical colleges.

Preparing a Competitive Workforce

Due to the aging of the baby-boom generation, in combination with other demographic trends, it is critical that the workforce investment system reach out to every available worker and ensure that all workers have the education, training, and skills needed to fill the jobs of the 21^st century. ETA recognizes that the influx of immigrants and the increasing diversity of the workforce call for new and varying approaches to workforce development. ETA will continue targeted efforts that focus on overcoming the barriers to successful labor market participation, for such groups as Hispanic workers, Asian-American/Pacific Islanders, and those who are Limited English Proficient as well as efforts to strengthen existing programs to ensure the competitiveness of the American workforce.

This Budget addresses employers' urgent and specialized needs for employees when domestic workers are not available by improving the Foreign Labor Certification programs. The request will reduce the existing backlog of Permanent Program petitions, and prevent future backlogs, while also promptly processing foreign labor certification requests for the Temporary Workers Programs (H-2A and H-2B).

Additionally, this Budget proposes to continue the Prisoner Re-entry Initiative with a $35 million investment in the second year of this four-year initiative that is administered in collaboration with the Departments of Justice and Housing and Urban Development (HUD). The initiative helps previously incarcerated individuals find jobs, transitional housing and mentoring when they leave prison and return to their communities. Including funding in Justice and HUD, the 2006 Budget provides a total of $75 million for the Prisoner Re-entry Initiative.

Strengthening the Integrity of the Unemployment Insurance System

Building on reforms proposed by the Administration in the past to fortify the Unemployment Insurance system and reduce erroneous UI payments, the budget proposes a $10 million increase in beneficiary eligibility reviews in One-Stop Career Centers, which is projected to save up to $225 million annually; a $30 million increase to prevent and detect fraudulent unemployment benefit claims using stolen personal information (identity theft) that would result in annual trust fund savings of as much as $105 million; and legislation to reduce income tax refunds to individuals receiving fraudulent unemployment benefit overpayments, saving an estimated $281 million in the first year.

Employment and Training Programs

¹The FY 2004 amount reflects a rescission of $100 million in unobligated balances of funding from fees for H-1B Technical Skill Training Grants. The fee authorization expired September 30, 2003.

The FY 2006 Budget request for Employment and Training Programs is $6.364 billion.

WIA Plus Consolidated Formula Grant Programs

A total of $3.913 billion is requested for the proposed WIA Plus Consolidated Grant Program. The FY 2005 request proposed a consolidation of employment and training programs serving adults, including the WIA Adult and Dislocated Worker programs, and the Employment Service state grants. The FY 2006 request adds the Youth Program and additional Employment Service grants to the grant proposal. The consolidated Grant Program will afford states and localities more flexibility in the use of funds. Included in the proposed consolidated grant program is $39.7 million for Workforce Information, (local labor market information formerly funded in the One-Stop request in SUIESO) and $17.9 million for administration of the Work Opportunity and Welfare-to-Work Tax Credits that in prior years was included in the Employment Service National Activities request in SUIESO. The new program includes formula grants and a National Reserve, and will give States and the Secretary of Labor greater ability to target resources where needed, facilitate coordination, and eliminate duplication in the provision of services to adults, dislocated workers, and youth. The budget authority requested, together with unexpended carryover, is expected to support up to 18,960,000 participants.

In addition to the consolidation of these four DOL programs, states will have the option to consolidate their share of resources from certain other Federal job training and employment programs into the state's consolidated grant. This option will provide Governors and local officials with more flexibility to design workforce investment systems that respond to the unique needs of their states, in exchange for stronger accountability.

DOL requests $250 million for the second year of funding for the President's Community College Initiative to provide Community-Based Job Training Grants. Because of their close connection to local labor markets, community colleges are well positioned to prepare workers for high-demand occupations such as health care and high-tech manufacturing. While community colleges are the target for these grants, grant recipients will be required to have strategic partnerships with the public workforce investment system, business and industry. The request is expected to result in training and the subsequent employment or enhanced employment for up to 100,000 individuals.

Job Corps

A total of $1.517 billion is requested to improve the educational achievement of Job Corps students, and increase participation of Job Corps graduates in employment and education.

The effective Job Corps program will provide intensive skill training, academic education, and support to an estimated 68,001 participants at 122 centers in FY 2006. For FY 2006, 87 percent of Job Corps graduates will enter employment or enroll in post-secondary education, the military, or advanced training/occupational skills training in the first quarter after exit from the program; 65 percent of students will attain a GED, high school diploma, or certificate by the end of the third quarter after exit; 47 percent of students will achieve literacy or numeracy gains of one Adult Basic Education level, approximately equivalent to two grade levels; and the average cost per participant will be no higher than $22,309. 

Other Employment and Training

The FY 2006 Budget requests $683.9 million for Other Employment and Training Programs, a decrease of $161.6 million below FY 2005. The net change is largely due to the proposal for the elimination of Responsible Reintegration for Young Offenders, the Migrant and Seasonal Farmworker program, and Congressional earmarks.

The FY 2006 Budget includes $48.3 million for new methods of providing employment and related information through One-Stop Career Centers. This will help support a demand-driven system by electronically disseminating information on current and future local labor markets, job skill requirements, and available job openings.

The Budget includes $35 million for DOL's portion of the Prisoner Re-entry Initiative, administered jointly with the Departments of Justice and Housing and Urban Development. This funding will replace resources previously available under the Responsible Reintegration of Young Offenders program. With a goal of reducing recidivism among ex-offenders, including youth and adults, the Prisoner Reentry Initiative will call upon faith-based and community organizations to help individuals exiting prison in making a successful transition to community life and long-term employment through mentoring, job training, and transitional housing assistance. It is expected that 22,901 individuals will participate in 2006.

In FY 2006, $13.1 million is requested for grants to States for the Foreign Labor Certification activity, which reflects a shift in resources from grants to States to Program Administration to reflect the new allocation of responsibilities under the Permanent Foreign Labor Certification program and the federalization of application processing through the operation of centralized backlog and national processing centers. In FY 2006, it is expected that the program will process 100 percent of H-1B applications within seven days of the filing date for which no prevailing wage issues are identified; process 95 percent of H-2A applications within 30 days of need where there are no pending State actions; increase the number of audits conducted for the H-2B program by 5 percent over the previous year's baseline and implement new procedures necessary to eliminate the remaining backlogged applications.

In FY 2006, the Budget includes $19.7 million for Work Incentive Grants, the same level provided in FY 2005, to enhance the prospects of employment for individuals with disabilities. This effort is undertaken in conjunction with the Department's Office of Disability Employment Policy to increase the participation of individuals with disabilities in DOL programs and services. This program provides competitive grants to support partnerships or consortia in States which in turn provide incentives for the coordinated delivery of services and linkages across programs in the One- Stop Career Center system established under Title I of WIA of 1998. In 2006, for the workforce investment areas served by the program, 6 percent of participants served will be persons with disabilities; and the entered employment rate for participants with disabilities who exit the WIA Plus Consolidated Grant Program will be 70 percent.

WIA National Programs are funded at $94.1 million in FY 2006, a decrease of $140.1 million below FY 2005. This decrease is primarily the result of the elimination of the Migrant and Seasonal Farmworker Program, as well as the elimination of Congressional earmarks. National programs provide employment and training assistance to Native Americans and fund pilots, demonstrations, research, evaluations, and technical assistance in support of the employment and training system

In FY 2006, $436.7 million is requested for the Community Service Employment for Older Americans, the same level provided in FY 2005 to support 91,500 participants. In FY 2006, the program will report on the common measures of entered employment, employment retention, and earnings. A cost per participant target of $4,772 has also been established.

Finally, the Budget proposes to transfer the YouthBuild program ($58.9 million) from the Department of Housing and Urban Development to the Department of Labor, as recommended by the White House Task Force on Disadvantaged Youth. YouthBuild provides unemployed young people age 16-24 with work experience combined with community service while building affordable housing for homeless and low-income families in their own neighborhood. 3,700 youths were trained with YouthBuild grants in FY 2004.

Employment and Training Participant Data

¹Table shows estimated participants associated with the 2006 Budget proposal to consolidate grants to states for adults, dislocated workers, youth services, and the Employment Service into a single grant program. In addition, states may choose to consolidate into this grant their resources from certain other Federal job training and employment programs.

Selected ETA Performance Goals and Indicators

• Percent of WIA Plus Consolidated Grant Program participants who are employed in the first quarter after program exit after having been unemployed at the time of registration.
• Percent of WIA Plus Consolidated Grant Program participants employed in the first quarter after program exit, who are still employed in both the second and third quarters after program exit .
• The increase in earnings of participants in the WIA Plus Consolidated Grant Program employed between the period one quarter prior to registration and the first quarter after program exit.
• The increase in earnings of participants in the WIA Plus Consolidated Grant Program employed between the first quarter after program exit and the third quarter after program exit.

ETA Income Maintenance

¹Non-add, see Black Lung Disability Trust Fund (BLDTF) section.
²Mandatory funding, non-add, included in Unemployment Trust Fund benefits.

The FY 2006 request for Income Maintenance includes $39.5 billion in spending from the Unemployment Trust Fund. Of the FY 2006 Income Maintenance total, $2.6 billion is the discretionary amount requested for State administration of the Unemployment Insurance (UI) Program. In addition, approximately $966.4 million is being requested for the Federal Unemployment Benefits and Allowances (FUBA) account. The FY 2006 request for Advances to the Unemployment Trust Fund (UTF) and Other Funds (Advances) account is $465.0 million, which is for the Black Lung Disability Trust Fund.

The balance of Income Maintenance ($36.9 billion) includes the State unemployment benefits payments to claimants, and benefits paid to ex-service members.

The FY 2006 Budget includes four new initiatives to strengthen the UI program: (1) $30 million for an identity theft prevention initiative, which will prevent and detect fraudulent unemployment benefit claims filed using stolen personal information; (2) $10 million for in-person interviews with UI beneficiaries in One-Stop Career Centers to aid work search efforts and review compliance with eligibility requirements; (3) a legislative proposal that will assist in preventing, identifying, and collecting overpayments of unemployment compensation; and (4) a legislative proposal to allow states to borrow funds from the Federal Unemployment Account in order to address information technology infrastructure problems.

Unemployment Insurance Program

Under the State Unemployment Insurance and Employment Service Operations (SUIESO) account, discretionary funds are provided to the States for the administration of the Unemployment Insurance (UI) and Employment Service (ES) programs. The ES program is discussed in the Employment and Training Programs section of this publication. For UI, the FY 2006 budget includes a request for $2.6 billion, which is $40.6 million less than the FY 2005 enacted level.

This request funds projected workloads and includes a program increase of $10 million to increase the number of eligibility reviews conducted at One-Stop Career Centers and a $30 million program increase to prevent and detect UI identity theft. The Administration is proposing to fund these increases as contingent appropriations, using an adjustment in discretionary spending caps under a new budget enforcement mechanism.

The FY 2006 funding level requested for the UI program will provide for approximately 38,045 State staff years of service. State staff will handle 7.3 million employer tax accounts, 18.9 million initial unemployment claims, a total of 152.3 million weeks claimed and 1.4 million appeals. In addition, to finance any workload increase over an Average Weekly Insured Unemployment (AWIU) rate of 2.984 million, $28.6 million shall be available for every 100,000 increase over the AWIU, with a pro rata amount for any increase less than 100,000. The unemployment insurance request also includes $10.5 million for National activities, which are interstate or multi-state in nature.

Federal Unemployment Benefits and Allowances (FUBA)

This appropriation covers payments of weekly trade readjustment allowances, training, job search and relocation costs of workers adversely affected by increased imports or shifts in production to other countries.

For FY 2006, $966.4 million is requested for FUBA, which funds the Trade Adjustment Assistance program. In August 2002, the Congress passed, and President Bush signed, the Trade Adjustment Assistance Reform Act of 2002. This Act amended the Trade Act of 1974 to consolidate the previous Trade Adjustment Assistance (TAA) and NAFTA Transitional Adjustment Assistance (NAFTA-TAA) programs into a single, enhanced TAA program with expanded eligibility, services, and benefits. The Act provides for a program of Alternative Trade Adjustment Assistance for older workers. Additionally, the law provides for continuing an increased emphasis on the integration of the TAA program into the One-Stop Career Center system.

Advances to the Unemployment Trust Fund and Other Funds

This appropriation provides general fund advances to several trust and general fund accounts. In FY 2006 the requested amount includes $465.0 million which will provide for advances to the Black Lung Disability Trust Fund (BLDTF) account administered by the Employment Standards Administration, and which are repayable with interest to the General Fund in Treasury.

Unemployment Trust Fund Benefits

The Unemployment Trust Fund includes amounts for both the administration of Federal and State unemployment compensation, and for unemployment compensation benefits which provide income support to those temporarily out of work while they search for employment. This budget proposal is based on estimates that the insured unemployment rate for FY 2006 will be 2.2 percent. This translates to an average of approximately 2.6 million beneficiaries each week receiving unemployment assistance under Federal and State programs in FY 2006. The average weekly benefit amount is estimated at $270 in FY 2006, while the average number of weeks of benefits per recipient is expected to be 15.3 weeks. The total amount paid for unemployment compensation benefits from the Trust Fund is estimated at $36.9 billion.

Selected ETA Performance Goal and Indicators for Income Maintenance

• Make timely and accurate benefit payments to unemployed workers, facilitate the reemployment of unemployment insurance claimants, and set up unemployment tax accounts promptly for new employers.
  • 90.3% of all intrastate first payments will be made within 14 to 21 days.
  • 82.5% of determinations about the tax liability of new employers will be made within 90 days after the first quarter of tax liability.
  • Establish for recovery at least 59.5% of the amount of estimated overpayments that States can detect and recover.

ETA Program Administration

¹FY 2005 and FY 2006 both include 12 FTE funded through H-1B fees and 3 reimbursable FTE.

ETA's Program Administration account provides for Federal administration of its employment and training programs. These programs include those authorized by the Workforce Investment Act of 1998 (WIA) for youth (including Job Corps), adults, dislocated workers, and special targeted populations; Trade Adjustment Assistance authorized by the Trade Act of 1974, as amended; Employment Services authorized by the Wagner-Peyser Act; Unemployment Insurance authorized by the Social Security Act; and Apprenticeship Programs authorized by the National Apprenticeship Act.

The FY 2006 Budget provides 1,216 full-time equivalent (FTE) staff and $206.9 million for Program Administration, a $36.8 million increase. This number includes 1,201 FTE financed from direct appropriations, 12 from H-1B fees, and 3 FTE from reimbursements. The Budget proposes legislation to finance $40 million through a new fee for employer applications under the Permanent Foreign Labor Certification program. Upon enactment of the fee, the request for this account would be revisited and revised.

The FY 2006 Budget includes increases of $5.8 million for the administration of the new H-1B High Growth Job Training Grant program; $750,000 for the administration of YouthBuild, which is being proposed for transfer from the Department of Housing and Urban Development; a $30.7 million increase in order to finance Foreign Labor Certification Permanent Program application processing; and net inflationary increases totaling $4.4 million. Partially offsetting these increases is a $373,000, two-FTE reduction in the Welfare-to-Work activity due to the phase out of the program, and a $1.7 million, 11 FTE reduction due to the phase out of the Youth Opportunity Grants Program.

Adult Services

The Adult Services activity provides staff for leadership, policy direction, and administration for a decentralized system of grants to States and localities for job training and employment assistance for low-income and dislocated workers and those with significant barriers to employment including migrant and seasonal farmworkers, older workers, individuals with disabilities, homeless individuals, and individuals with limited English proficiency. This activity also provides staff for the settlement of trade adjustment assistance petitions and activities related to program administration.

Youth Services

Youth Services provides staff for leadership, policy direction, and administration for Federally-funded youth programs, including Job Corps.

Workforce Security

Under this activity, the staff provides leadership and policy direction for the administration of Unemployment Insurance programs in each State, a One- Stop Career Center system, One-Stop system National Electronic Tools, Work Incentive Grants, and foreign labor certification activities.

Apprenticeship Training, Employer and Labor Services

Funding for this activity finances staff who promote and provide leadership and policy direction for the administration of apprenticeship as a method of skill acquisition through a Federal-State apprenticeship structure. Employer and labor services facilitate the understanding and responsiveness of workforce investment systems to the training needs of employers and the interest of labor organizations in training programs.

Executive Direction

The Executive Direction staff provides leadership and policy direction for ETA training and employment service programs and for related program operations support. Support activities include research, evaluations, demonstrations, and performance management.

Employee Benefits Security Administration

The Employee Benefits Security Administration (EBSA) is responsible for the administration and enforcement of Title I of the Employee Retirement Income Security Act of 1974 (ERISA) and the Federal Employees' Retirement System Act of 1986 (FERSA). The primary mission of EBSA is to protect the pension, health and other benefits of participants in private sector employee benefit plans. EBSA directly affects the livelihood of over 150 million people who participate in ERISA-covered plans, and protects the U.S. economy's single largest source of capital for investment -- pension funds. EBSA promotes a secure retirement and greater access to health benefits for the nation's workforce through a combination of legislative changes, aggressive enforcement and compliance assistance. In FY 2006, the total request for this program is $137 million and 887 FTE and provides additional resources for the ERISA Filing and Acceptance System (EFAST).

Enforcement and Participant Assistance

This activity conducts criminal and civil investigations, performs reviews to ensure compliance with the fiduciary provisions of ERISA and FERSA, and assures compliance with applicable reporting requirements, as well as accounting, auditing and actuarial standards. The FY 2006 estimate for this activity includes additional resources to refurbish EFAST systems hardware and software that will improve processing performance levels to better protect employee pension and health benefits. In FY 2006, the budget request for this activity is $114.5 million and 764 FTE. All of EBSA was evaluated with the Program Assessment Rating Tool (PART). As a result of PART findings, EBSA has adopted long-term and ambitious enforcement goals that ensured alignment with the President's Management Agenda.

Policy and Compliance Assistance

This activity conducts policy, research and legislative analyses on pension, health and other employee benefit issues. It provides compliance assistance, especially to employers and plan officials, writes regulations and interpretations, and issues individual and class exemptions from regulations. In FY 2006, the budget request for this activity totals $17.4 million and 97 FTE.

Executive Leadership, Program Oversight and Administration

This activity provides leadership, policy direction, strategic planning, and administrative guidance in the management of employee benefits security programs. It provides analytical and administrative support for financial and human capital management and other administrative functions related to coordination and implementation of government-wide management initiatives. This activity also manages the technical program training for enforcement, policy, legislative and regulatory functions. In FY 2006, the budget request for this activity totals

Selected EBSA Performance Goals and Indicators

• Achieve a ratio of 69% of closed civil cases with corrected violations to all closed civil cases.
• Achieve a 40.2% ratio of criminal cases referred for prosecution to total criminal cases.
• Achieve a Customer Satisfaction Index of 65, or comparable measurement, for Participants and Beneficiaries who have contacted EBSA for assistance.
• Achieve 8,757 additional applications to its Voluntary Compliance programs.

Pension Benefit Guaranty Corporation

The Pension Benefit Guaranty Corporation (PBGC) is a wholly-owned Government Corporation, guided by a board of directors chaired by the Secretary of Labor, which guarantees the payments of pension plan benefits to participants in the event that covered plans terminate. PBGC protects the pension benefits of about 44 million workers and retirees in traditional pension plans.

Single Employer Benefit Payments

Monthly pension payments are made to plan participants and other beneficiaries of plans trusteed by PBGC. The FY 2006 request totals $5.1 billion for this activity.

Multi-Employer Financial Assistance

Financial assistance provides for repayable loans to insolvent multi-employer sponsored plans to enable these plans to continue paying benefits if a series of prescribed steps is taken to place the plan on a sound financial basis. The FY 2006 request totals $90 million for this activity.

Pension Insurance

Pension Insurance includes pension plan premium collections, premium investments, technical assistance, and new pension plan promotion activities. The FY 2006 request totals $42.0 million and 199 FTE for this activity.

Pension Plan Terminations

Pension Plan Terminations include all activities related to plan termination and trusteeship; plan asset management, investment and accounting; and administration services. The FY 2006 request totals $161.0 million and 314 FTE for this activity.

Operational Support

Includes the administrative, information technology infrastructure, and other shared program support for both PBGC's insurance and plan termination activities. The FY 2006 request totals $94.0 million and 293 FTE for this activity.

Selected PBGC Performance Goals and Indicators

• Achieve a customer satisfaction index for practitioner callers: 74 in FY 2006.
• The level of practitioner satisfaction regarding inquiries handled.
• Achieve a customer satisfaction index for participant callers: 80 in FY 2006.
• The level of practitioner satisfaction regarding inquiries handled.

Employment Standards Administration

*This includes an estimate of $31 million in H-1B fee revenue for ESA in FY 2005 and FY 2006,
authorized by the H-1B Visa Reform Act of 2004, P.L. 108-447 (December 8, 2004)

In total, funds for the Employment Standards Administration (ESA) in FY 2006 will decrease by $178.8 million or about 5.4 percent compared with FY 2005 due mostly to an estimated decrease in EEOICPA benefits. Funding will finance initiatives to improve Wage and Hour enforcement and compliance, and enhance enforcement and outreach assistance under the Labor-Management Reporting and Disclosure Act. Increased funding will also improve the central bill processing in the Office of Workers' Compensation Programs, and reduce excessive carryover balances in the Energy Employees' Occupational Illness Compensation program. The budget re-proposes legislative changes to improve the Federal Employees' Compensation Act (FECA), including changes that allow DOL to adopt best State practices; improve program fairness; and speed claims processing. These proposals would result in 10-year cost savings to the Government of more than $720 million. ESA's request also includes a legislative proposal to restructure the Black Lung Disability Trust Fund debt which was close to $9 billion at the end of 2004, to ensure the Trust Fund's long-term solvency.

The Budget also includes a proposal to increase the civil money penalties (CMPs) for violations of laws administered by ESA. For example, the CMPs for violations of wage-hour laws causing death or serious injuries to youths in the workplace would increase from $11,000 to $50,000, and $100,000 for repeat or willful violations. The budget also supports proposals to authorize OLMS to impose CMPs on unions and others that fail to file their required financial reports on a timely basis. CMPs for OLMS is intended to improve compliance, not penalize inadvertent lapses in filing reports.

In support of the Department's performance goal of ensuring a competitive workforce by promoting family-friendly job flexibility and minimizing unnecessary regulatory burdens, the Wage and Hour Division (WHD) will continue to review and update its significant regulations to reflect workplace changes over the last 20 years and in anticipation of future workplace evolutions.

The President has also called on Congress to allow employers to offer compensatory time off and "flex-time" arrangements, to give private-sector workers the same flexible scheduling options that Federal employees now enjoy.

ESA Staffing

*This includes an estimate of $31 million in H-1B fee revenue for ESA in FY 2005 and FY 2006,
authorized by the H-1B Visa Reform Act of 2004, P.L. 108-447 (December 8, 2004)

ESA administers and enforces a variety of laws designed to enhance the welfare and protect the rights of American workers. The budget request to conduct these programs in FY 2006 is $686.7 million and 4,282 FTE. Of this amount, $480.4 million and 3,643 FTE is in the Salaries and Expenses account. In addition $45.0 million and 128 FTE is for the Fair Share portion of the Special Benefits account, 275 FTE and $96.1 million is for the administrative expenses of the Energy Employees' Occupational Illness Compensation Program Act (EEOICPA), Part B; and $59.9 million and 219 FTE is for the administrative expenses of EEOICPA, Part E; and $5.3 million and 17 FTE is for Part B of the Black Lung Benefits program. In total, this is an increase of $87.0 million and 162 FTE over FY 2005. ESA's budget request includes legislative proposals to promote benefit equity and to adopt best state practices. Specifically, the budget proposes to amend FECA to move the waiting period before the continuation-of-pay period, and conform the benefits of future retirement-age beneficiaries to a benefit level typical to what they would receive under Federal retirement programs, and make a number of other changes to improve and update the FECA program.

Wage and Hour Standards

The FY 2006 budget request for the Wage and Hour Division is $198.4 million and 1,346 FTE. The Wage and Hour Division is responsible for the administration and enforcement of a wide range of laws which collectively cover virtually all private and state and local government employment. Wage and Hour Division activities include obtaining compliance with the minimum wage, overtime, child labor, and other employment standards under the Fair Labor Standards Act, Migrant and Seasonal Agricultural Worker Protection Act, certain provisions of the Immigration and Nationality Act, Employee Polygraph Protection Act, the Immigration Nursing Relief Act, the wage garnishment provisions of the Consumer Credit Protection Act, and the Family and Medical Leave Act. Prevailing wages are determined and employment standards enforced under various government contract wage standards. Wage and Hour will continue to use its multi-pronged approach of compliance assistance, partnerships, and enforcement to further its goals to promote high quality workplaces, a secure workforce and increase customer satisfaction. The budget increase over FY 2005 supports the Wage and Hour Division's Overtime Security Task Force and its Off-the-Clock Initiative. It will also support Wage and Hour's Youth Rules initiative to enable the expansion of its low-wage industry enforcement to protect vulnerable workers; and help Wage and Hour increase technical assistance and education to encourage voluntary compliance with the laws it administers. The budget also includes a proposal to increase the civil wage hour civil monetary penalties (CMPs). For example, CMPs for violations causing death or serious injury to youths in the workplace would increase from $11,000 to $50,000, and $100,000 for repeat or willful violations.

Contractor EEO Enforcement

The FY 2006 budget request for the Office of Federal Contract Compliance Programs (OFCCP) is $82.1 million and 691 FTE. OFCCP is responsible for ensuring equal employment opportunity and non-discrimination in employment based on race, sex, religion, color, national origin, disability or veteran status for businesses contracting with the Federal government. These requirements are contained in Executive Order 11246, as amended; Section 503 of the Rehabilitation Act of 1973, as amended; 38 USC 4212; and Section 402 of the Vietnam Era Veterans' Readjustment Assistance Act of 1974, as amended. OFCCP shares authority with the Immigration and Naturalization Service (INS) of the U.S. Department of Justice regarding the Immigration Reform and Control Act of 1986 and the ESA Wage and Hour Division regarding the Family and Medical Leave Act of 1993. OFCCP also shares authority with the Equal Employment Opportunity Commission (EEOC) in the enforcement of Title I of the Americans with Disabilities Act of 1990. Increased funding over FY 2005 will finance initiatives to improve OFCCP enforcement and compliance assistance.

Federal Programs for Workers' Compensation

The FY 2006 budget request for the Office of Workers' Compensation Programs (OWCP) is $134.8 million and 1,119 FTE for the Federal Employees' Compensation Act (FECA), Longshore and Harbor Workers' Compensation, and Black Lung Benefits programs.

Other funding for OWCP includes $45.0 million and 128 FTE in the Special Benefits account using "Fair Share" funds. These funds are used for the operation and enhancement of OWCP's automated data processing, as well as for periodic roll review activities. The 2006 request for Fair Share includes a $5 million increase for the new centralized medical bill processing contract, to cover higher-than-expected costs. OWCP also requests $96.1 million and 275 FTE to administer the Energy Employees' Occupational Illness Compensation Program Act (EEOICPA) Part B program and $59.9 million and 219 FTE for the Part E program, which was established in FY 2005.

OWCP administers disability compensation programs, which mitigate hardship imposed by work-related injuries or disease, through the provision of wage replacement and cash benefits, medical treatment, vocational rehabilitation, and other benefits to certain workers (or their dependents or survivors). The FECA program provides income and medical benefits to civilian employees of the Federal government injured at work and to certain other designated groups. The Longshore and Harbor Workers' Compensation Act program provides similar protection to private sector workers in certain maritime and related employment. The Black Lung Benefits program provides wage replacement and medical benefits to the Nation's coal miners suffering from pneumoconiosis and cash benefits to their eligible survivors.

EEOICPA provides compensation and medical benefits to employees or survivors of employees of the Department of Energy (DOE) and its contractors who suffer from a radiation-related cancer, beryllium-related disease, or chronic silicosis as a result of their work in nuclear weapons production or testing.

In October 2004, Congress amended EEOICPA to create Part E and mandated its implementation by May 2005. Part E expanded the categories of workers eligible to receive federal compensation and medical benefits to Department of Energy contractors and subcontractors who sustained health impairment due to exposure to toxic substances. The amendment also authorizes payment from the EEOIC Compensation Fund for benefits awarded by the Department of Justice under section 5 of the Radiation Exposure Compensation Act.

In FY 2004, the Social Security Administration's (SSA) program to administer Black Lung Part B claims was permanently transferred to the Department of Labor.

The 2006 budget includes two legislative proposals affecting OWCP programs. The first is a proposal to reform FECA to update its benefit structure, adopt best practices of State workers' compensation systems, and strengthen return-to-work incentives. This proposal is expected to generate Government-wide savings of more than $720 million over ten years. The second is a proposal to restructure the debt of the Black Lung Disability Trust Fund (BLDTF), a debt that is estimated to exceed $9.6 billion by FY 2006 absent legislative action. This proposal would (1) restructure the outstanding BLDTF debt, (2) extend at current rates BLDTF excise taxes, which are set to decline in January 2014, and (3) provide a net payment of $3.3 billion appropriation to compensate the General Fund for forgone interest.

Office of Labor-Management Standards

The FY 2006 budget request for the Office of Labor-Management Standards (OLMS) is $48.8 million and 384 FTE. OLMS enforces provisions of Federal law that require reports from unions and others and establishes certain standards for union democracy and financial integrity. OLMS conducts criminal investigations (primarily union funds embezzlement) and investigative audits of unions; conducts civil investigations (primarily concerning union officer elections); supervises remedial union officer elections, as required; administers statutory reporting requirements; and provides for public disclosure of filed reports. The budget request includes an additional $6.0 million and 48 FTE to support the Labor-Management Reporting and Disclosure Act (LMRDA) union financial integrity protections and implement a program of union advisory services as part of OLMS' compliance assistance activities. Through its Division of Statutory Program, OLMS also certifies protective arrangements for transit employees when Federal transit grant funds are used to acquire, improve, or operate a transit system. The budget also supports proposals that would authorize OLMS to impose civil money penalties on unions and others that fail to file their required financial reports on a timely basis. The intent is to improve compliance, not penalize inadvertent lapses in filing reports.

Program Direction and Support

The FY 2006 budget request for Program Direction and Support is $16.3 million and 103 FTE. This activity supports ESA's operating programs and ensures effective management by providing planning, personnel management, financial management, Federal/state liaison programs, management systems implementation, and data processing. The budget request includes $0.5 million to support ESA's information systems.

Selected ESA Performance Goals and Indicators

• Ensure continued customer satisfaction by reducing the average number of days to conclude a violation complaint.
• Reduce employer recidivism by increasing the percentage of prior violators who achieve and maintain FLSA compliance following a full FLSA investigation.
• For Federal Employess' Compensation Act cases of non-Postal Federal agencies, reduce the lost production days rate to 60 days per 100 employees.
• Increase union transparency. The percentage of union reports meeting standards of acceptablility for public disclosure will increase to 95%.
  

ESA Income Maintenance Programs (Mandatory)

The budget includes a total of $2,462.6 billion for income maintenance programs in ESA in FY 2006, a decrease of $265.8 million from FY 2005. The budget reflects the October 2004 amendment to EEOICPA creating a new workers' compensation program (Part E) for Department of Energy contractors and their families for illness and death arising from toxic exposures in DOE's nuclear facilities. The budget also re-proposes a number of FECA legislative reforms, including changes to reflect best practices of State workers' compensation systems, improve program fairness, and speed claims processing. The budget also includes a legislative proposal to improve the Black Lung program by restructuring the program's growing debt.

Special Benefits

The request of $237.0 million for Special Benefits in FY 2006 includes $234.0 million for Federal Employees' Compensation Act benefits, and $3.0 million for Longshore and Harbor Workers' Compensation benefits. This account also includes a request for $45.0 million from Fair Share funding to finance 128 FTE and automated systems for administration of the FECA program, as described in the ESA Staffing Section.

Federal Employees' Compensation Act Benefits

FECA provides long-term compensation benefits and certain medical payments for job-related injuries, diseases, or deaths of civilian employees of the Federal government and certain other designated groups. The Administration is re-proposing a number of legislative changes to improve FECA. These changes are expected to generate a 10-year Government-wide savings of more than $720 million. The budget requests an increase of $5 million to ensure full funding of the program's automated systems and processes.

Longshore and Harbor Workers' Compensation Act Benefits

This program funds one-half of the increased benefits provided by the 1972 amendments for persons receiving compensation for permanent total disability or death which commenced or occurred prior to the amendments. Long-term compensation benefits and medical payments are provided for job-related injuries, diseases, or deaths of private sector workers in certain maritime and related employment.

Energy Employees Occupational Illness Compensation Benefits

The budget request for FY 2006 includes $916.5 million for EEOICPA. Of that amount, $760.5 million will provide compensation and medical benefits to eligible workers or their survivors. The request for program administration is $156.0 million and 494 FTE, including funding for Part B, the new Part E enacted in October 2004, and the Department of Health and Human Services. This amount is reflected in the ESA Staffing section.

Black Lung Disability Trust Fund

The budget request provides a total of $1.068 billion from the Black Lung Disability Trust Fund (BLDTF) in FY 2006 for benefits, interest payments and administrative expenses. This total includes $314.0 million for benefits, $58.0 million for administrative expenses, and $696.0 million for interest payments. These figures do not include the estimated costs of the refinancing proposal (described below).

The Black Lung Disability Trust Fund (BLDTF) is facing a growing debt, which in FY 2006 will exceed $9.0 billion. BLDTF revenues, which consist primarily of excise taxes on coal, are insufficient to repay this debt or the interest on that debt. Under current conditions, this indebtedness will continue to grow, with the BLDTF never becoming solvent, even when benefit outlays have declined to a level approaching zero. To solve this problem, the Administration will propose legislation that will: (1) authorize a restructuring of the BLDTF debt, (2) extend, at current rates, BLDTF excise taxes set to decline in January 2014, and (3) provide a net payment of $3.3 billion appropriation to compensate the General Fund of the Treasury for forgone interest payments.

Disabled Coal Miner Benefits - Part C Claims

Under this program, all black lung compensation/medical and survivor benefit expenses are provided when no responsible mine operator can be assigned liability for such benefits, or when coal mine employment ceased prior to 1970.

Administrative Expenses

This provides for all administrative costs incurred by the Department of Labor in the operation of the Black Lung program, including reimbursements to the Departments of Health and Human Services, and Treasury.

Interest on Advances

This appropriation funds payment of interest on advances to the BLDTF from the General Fund of the Treasury. In FY 2006, the amount of interest on advances is estimated to be $696.0 million.

Special Benefits/Disabled Coal Miners - Part B Claims

The FY 2006 budget reflects the permanent transfer of the Black Lung Part B program from the Social Security Administration (SSA) to the Department of Labor. Legislation to authorize this transfer was enacted on November 2, 2002; the transfer was completed at the beginning of FY 2004. This transfer consolidates all Black Lung Benefit Act claims handled by the Federal government in the Department of Labor's Black Lung program.

Other Income Maintenance Programs

The budget requests $6.4 million for the Panama Canal Commission Fund and $150.7 million for the Special Workers' Compensation Expenses program.

Panama Canal Commission Fund

This provides for the accumulation of funds to meet the Panama Canal Commission's obligations to defray costs of workers' compensation which will accrue pursuant to FECA.

Special Workers' Compensation Expenses Payments from the Special Fund

Under the Longshore and Harbor Workers' Compensation Act, as amended, trust funds in this program consist of amounts received from employers for the death of an employee where no person is entitled to compensation for such death, for fines and penalty payments, and pursuant to an annual assessment of the industry, for the general expenses of the funds. From these funds, certain long-term compensation benefits and medical payments are provided for job-related injuries, diseases, or deaths of private sector workers in certain maritime and related employment.

Occupational Safety & Health Administration

¹Includes 8 reimbursable FTE in both FY 2005 and FY 2006.

The mission of the Occupational Safety and Health Administration (OSHA) is to protect American workers by preventing injuries, illnesses and fatalities. The agency promulgates and enforces occupational safety and health standards and provides compliance assistance to employers and employees. OSHA also assists other Federal agencies in establishing and maintaining occupational safety and health programs for Federal workers and provides funding for state administered safety and health consultation programs. Consistent with its strategic goals, OSHA will focus on the most serious hazards and dangerous workplaces and expand compliance assistance opportunities. The FY 2006 OSHA budget request is $467.0 million and 2,200 FTE, an increase of $2.8 million over FY 2005.

Safety and Health Standards

The Safety and Health Standards activity provides for the development, promulgation, review and evaluation of occupational safety and health standards and guidance. In FY 2006, OSHA will continue to base all standards on clear and sensible priorities and review existing rules to revise or eliminate obsolete and confusing standards or provisions. The agency will assess the impact of selected existing standards on improved employee safety and health, as well as employer costs, especially in small businesses. The FY 2006 request for this activity is $16.6 million and 84 FTE, an increase of $0.6 million over FY 2005.

Federal Enforcement

The Federal Enforcement activity encourages compliance with workplace standards under the Occupational Safety and Health Act of 1970 through the physical inspection of work sites, and by fostering the voluntary cooperation of employers and employees. OSHA will continue to target inspections on the worst hazards and the most dangerous workplaces and assist employers and employees in creating safe and healthy workplaces. The FY 2006 request for this activity is $174.3 million and 1,570 FTE, an increase of $4.6 million over FY 2005.

State Programs

The State Programs activity supports grants to 26 states that have assumed responsibility for occupational safety and health enforcement under OSHA approved plans. State Programs support enforcement, consultation, and education and training efforts in OSHA programs operated by the states. These resources enable OSHA's state partners to meet new challenges and complement Federal OSHA's program strategies. An increase of $1.0 million is included in the FY 2006 Budget for expanded compliance assistance activities in the State Plan States. The total FY 2006 request for this activity is $92.0 million, an increase of $1.0 million over FY 2005.

Technical Support

This activity provides support to Federal OSHA programs in several areas, including construction, standards setting, variance determinations, compliance assistance, and enforcement. Areas of expertise include laboratory accreditation, industrial hygiene, occupational health nursing, occupational medicine, chemical analysis, equipment calibration, safety engineering, environmental impact statements, technical and scientific databases, computer-based outreach products, and emergency preparedness. The FY 2006 request for this activity is $21.7 million and 107 FTE, an increase of $1.0 million over FY 2005.

Federal Compliance Assistance

This activity supports a variety of cooperative programs, training and outreach to provide compliance assistance to employers and employees, particularly small businesses. Employers are encouraged to establish voluntary employee protection programs, and Federal agencies are assisted in implementing job safety and health programs for their employees. Professional training for compliance personnel and others with related workplace safety and health responsibilities is conducted at the OSHA Training Institute, and further training is provided to the public by education centers selected and sanctioned by the Institute. The FY 2006 request for this activity is $73.3 million and 352 FTE, an increase of $2.4 million over FY 2005.

State Consultation Grants

This activity supports 90 percent of Federally funded cooperative agreements with designated State agencies to provide free on-site consultation to employers upon request. State agencies tailor work plans to their States while maximizing their impact on injury and illness rates in smaller establishments. These projects offer a variety of services, including safety and health program assessment and assistance, hazard identification and control, and the training of employers and their employees. The FY 2006 request for this activity is $53.9 million, an increase of $0.5 million over FY 2005.

Training Grants

This activity contains safety and health training grants. In FY 2006, this training grant program will be eliminated, a decrease of $10.2 million from FY 2005. Since OSHA provides direct outreach activities and training on important safety and health issues in a variety of ways other than through training grants, the agency will continue to deliver compliance assistance, outreach, and training for employers and workers.

Safety and Health Statistics

Safety and Health Statistics provides information technology, management information and statistical support for OSHA's programs and field operations through an integrated data network and statistical analysis and review. OSHA maintains overall responsibility for the national injury and illness recordkeeping system. An increase of $1.0 million is included in the FY 2006 Budget for improved data analysis and performance measurement. The total FY 2006 request for this activity is $24.5 million and 38 FTE, an increase of $2.3 million over FY 2005.

Executive Direction and Administration

This activity provides overall direction and administrative support for OSHA. The FY 2006 request for this activity is $10.7 million and 49 FTE, an increase of $0.6 million over FY 2005.

Selected OSHA Performance Goals and Indicators

• By 2008, reduce the rate of workplace fatalities by 15% from the baseline.
• By 2008, reduce the rate of workplace injuries and illnesses by 20% from the baseline.
  

Mine Safety and Health Administration

The Mine Safety and Health Administration (MSHA) protects the safety and health of the Nation's miners through enforcement of the Federal Mine Safety and Health Act of 1977. The FY 2006 budget request includes $280.5 million and 2,187 FTE, representing a funding increase of $1.4 million over FY 2005.

Enforcement: Coal

The Coal Mine Safety and Health activity is responsible for ensuring the safety and health of the Nation's coal miners through special emphasis programs, compliance and training assistance, and periodic regular inspections and special investigations. The FY 2006 budget request is $118.3 million and 1,043 FTE, an increase of
$3.0 million over FY 2005.

Enforcement: Metal/Nonmetal

A total of $68.8 million and 543 FTE is requested for Metal and Nonmetal Mine Safety and Health activities. The request is $2.1 million more than FY 2005. These activities promote a healthful working environment in the Nation's metal and nonmetal mines and mills. MSHA accomplishes this goal through compliance and training assistance, periodic regular inspections, and special investigations.

Enforcement: Standards Development

The request for the Standards Development activity includes $2.5 million and 18 FTE, roughly the same levels as requested for FY 2005. This activity provides for the development and promulgation of mandatory safety and health standards to ensure the best protection for the health and safety of all miners.

Assessments

The primary functions of the Assessments activity are to assess civil monetary penalties for violations of the Mine Safety and Health Act, litigate penalty cases as necessary before the Federal Mine Safety and Health Review Commission and the Federal courts, and collect and account for all penalties received. The request for Assessments includes $5.5 million and 55 FTE, an increase of $0.3 million over FY 2005.

Educational Policy and Development

A total of $32.0 million and 151 FTE is requested for the Educational Policy and Development activity which is an increase of $0.7 million over FY 2005. Activities include development and coordination of MSHA's mine safety and health education and training policies, the delivery of on-site training assistance to mines throughout the country, and the provision of classroom instruction at the National Mine Health and Safety Academy for MSHA personnel and other members of the mining industry. The request includes $0.7 million for capital improvements at the Academy.

Technical Support

A total of $25.7 million and 209 FTE is requested for the Technical Support activity for FY 2006. This is an increase of $0.6 million above FY 2005. This activity applies engineering and scientific expertise through field and laboratory forensic investigations to resolve technical problems associated with implementation of the Mine Act; administers a fee program to approve equipment, materials, and explosives for use in mines; and collects and analyzes data relative to the cause, frequency, and circumstances of accidents.

Program Evaluation and Information Resources

The Program Evaluation and Information Resources (PEIR) activity operates and maintains MSHA's computer infrastructure and establishes standards and controls for the computer and networking hardware and software used by MSHA employees. PEIR maintains all of MSHA's information and technology applications and its general support system and Internet sites. PEIR also has the responsibility for MSHA meeting the requirements of the Government Performance and Results Act by monitoring, measuring, evaluating, and reporting on Agency progress towards meeting annual performance goals and the Program Assessment Rating Tools (PART).

The FY 2006 request for PEIR is $15.7 million and 78 FTE, a decrease of $1.8 million from FY 2005.

Program Administration

A total of $12.0 million and 90 FTE is requested for the Program Administration activity for FY 2006. This represents a decrease of $3.6 million from the FY 2005 level. This activity provides leadership, policy direction, and administrative support services for MSHA's safety and health programs.

Selected MSHA Performance Goals and Indicators

• Reduce the fatal injury incidence rate by 15% from the baseline by the end of FY 2008.
• Reduce the all-injury incidence rate by 50% from the baseline by the end of FY 2008.
• Reduce respirable coal dust samples exceeding applicable standards by 5% for designated occupations.
• Increase silica dust samples with a C/E ratio (*) of at least .50 by 5%.
• Increase noise samples in metal and non-metal mines with a C/E (*) ratio of at least .50 by 5%.
• Reduce noise exposures above the citation level in coal mines by 5%.

* C/E ratio defined as C = dust concentration result and E = the enforceable level (from which future sampling performance will be targeted for improvement).

Bureau of Labor Statistics

¹Includes 30 reimbursable FTE.

The Bureau of Labor Statistics (BLS) is the principal fact finding agency in the Federal government in the broad field of labor economics. The BLS provides general purpose statistics that serve as some of the major economic indicators used in: developing economic and social policy; making decisions in the business and labor communities; developing legislative and other programs affecting the labor market; conducting research on labor market issues; and projecting Federal expenditures and receipts. The request for the BLS in FY 2006 is $542.5 million and 2,475 FTE, which is an increase of $13.5 million over FY 2005. The BLS was evaluated with the Program Assessment Rating Tool (PART) and received a rating of effective.

Labor Force Statistics

The Labor Force Statistics program provides comprehensive and timely information on the labor force, employment, unemployment, and related labor market characteristics at the national level; industrial and occupational employment at the State and local levels; and labor force and unemployment figures at State and local levels. In addition, this budget activity develops projections of the labor force, economic growth, industrial output, and employment by industry and occupation for 10 years into the future for the Nation as a whole.

In FY 2006, the BLS will continue to develop monthly estimates on the numbers of separations, new hires, and current job openings for the economy as a whole and major industry groupings. In conjunction with the Census Bureau, the BLS will conduct the American Time-Use Survey. In addition, the BLS will release its 2004-14 employment projections and publish the 2006-07 edition of the Occupational Outlook Handbook. The BLS request includes $244.9 million and 505 FTE for the Labor Force Statistics program, an increase of $4.3 million over FY 2005.

Prices and Cost of Living

The Prices and Cost of Living program publishes the Consumer Price Index (CPI), the Producer Price Index (PPI), and the U.S. Import and Export Price Indexes (IPP). This budget activity provides CPI data for many geographic areas within the United States, and estimates of consumers' incomes and expenditures that are used in analysis of price behavior and consumer spending patterns. The BLS also provides these data for interpretation of price movements in relation to other major economic changes, and the formulation and evaluation of economic policy.

In FY 2006, the BLS will continue to calculate and publish the new superlative price index and revise the index value for the two previous years based on more current expenditure data. The BLS will continue to expand its coverage of services in the PPI, as well as continue to modernize the computing systems for monthly processing of the PPI and IPP. The IPP also will begin publishing using the North American Industry Classification System (NAICS). The BLS request includes $174.8 million and 1,097 FTE, an increase of $5.4 million over FY 2005.

Compensation and Working Conditions

The Compensation and Working Conditions program publishes data on employee compensation, including information on wages, salaries, and employer-provided benefits, by occupation for major labor market areas and industries. The Employment Cost Index (ECI) is used in setting and evaluating monetary policy, which is reflected in mortgage rates and other interest charges. The program also compiles and publishes information on collective bargaining. Through the Survey of Occupational Injuries and Illnesses, and the Census of Fatal Occupational Injuries, the BLS compiles annual information on the incidence and number of work-related injuries, illnesses, and fatalities. These two programs serve as the Nation's primary public health surveillance system for job related injuries and illnesses.

In FY 2006, the BLS will continue its ongoing plan to update and expand the sample of establishments that is used to produce the ECI, the local area pay data, and the Employee Benefits Survey. The BLS will publish the ECI and Locality Pay Surveys using the NAICS. The BLS also will publish the results of the 2004 Survey of Occupational Injuries and Illnesses and the results of the 2005 Census of Fatal Occupational Injuries. The BLS request includes $81.5 million and 549 FTE for the Compensation and Working Conditions program, an increase of $2.6 million over FY 2005.

Productivity and Technology

The Productivity and Technology program measures productivity trends for major sectors of the economy and individual industries, and analyzes trends in order to examine the factors underlying changes in productivity. The program also develops international comparisons of productivity, hourly compensation, unit labor costs, and employment and unemployment.

In FY 2006, the BLS will publish new measures of labor productivity and unit labor costs for at least one additional service-producing industry. The BLS request includes $10.8 million and 81 FTE for the Productivity and Technology program, an increase of $0.3 million over FY 2005.

Executive Direction and Staff Services

The Executive Direction program provides agency-wide policy and management direction, including all centralized support services in the administrative, publications, information technology, and statistical methods research areas. The BLS request includes $30.5 million and 213 FTE for the Executive Direction program, an increase of $0.9 million over FY 2005.

Selected BLS Performance Goals and Indicators

• Improve information available to decision-makers on labor market conditions, and price and productivity changes.
• Improve coverage by increasing the percentage of domestic services output included in the Producer Price Index to 76.0 percent.
• Issue 100 percent of scheduled releases on time.

Office of Disability Employment Policy

The 2006 Budget request provides the Office of Disability Employment Policy (ODEP) a total of $27.9 million and 59 FTE in FY 2006, a decrease of $19.2 million from FY 2005. The 2006 Budget proposes to return the ODEP closer to its core mission of policy analysis, technical assistance, and dissemination of effective practices to increase the employment opportunities for people with disabilities within the Department of Labor's programs. In 2006, ODEP will focus its efforts on the Research and Development (R&D) program to address barriers that disabled workers face through the integration of proven solutions into the Workforce Development System. ODEP's mission is to provide national leadership on disability employment policy within the Department of Labor (DOL) and support the disability related efforts of other Federal agencies. Additionally, ODEP supports and helps implement the employment-related goals of the President's New Freedom Initiative. Efforts focus on achieving a lasting systemic impact on the employment process through applied research and the development and dissemination of disability employment policies and practice. Stakeholders include Federal, state, and local government agencies, private and public employers and their employees, educational and training institutions, individuals with disabilities and their families, and the disability community.

In FY 2006, ODEP will continue to focus on developing and influencing policy and practices that meet the needs of employers in hiring, retaining, and promoting individuals with disabilities, ultimately helping them become more competitive and successful participants of the workforce.

With the requested FY 2006 budget authority, ODEP will refocus its research emphasis from a reliance on using externally-funded public and private organizations, to a stronger internal emphasis on policy development and analysis. ODEP will continue supporting applied research and disability employment policies and practices that will most effectively reach people with disabilities. ODEP will also continue to work with the Bureau of Labor Statistics (BLS) on measuring the employment rate of people with disabilities.

This budget request supports the Department's strategic goal of A Prepared Workforce to promote enhanced opportunities for America's workforce and Quality Workplaces that foster workplaces that are safe, healthy and fair.

Selected ODEP Performance Goals and Indicators

• Disseminate and influence disability employment policy and practice throughout workforce development systems and partners.
• Increase the number of service delivery systems and partners assisted through ODEP research.
• Increase the number of evidence-based effective practices identified through ODEP research.

Departmental Management

¹Includes 688 FTE in FY 2005 and 688 FTE in FY 2006 for the Working Capital Fund; and 17 FTE in FY 2005 and FY 2006 for DM reimbursable activities.

The FY 2006 Budget request for Departmental Management (DM) includes a total of $268.7 million and 1,402 FTE, a decrease of $75.8 million below FY 2005. In addition, there are 688 FTE in the Working Capital Fund for an overall total of 2,107 FTE.

The DM appropriation provides funding for the following activities: Program Direction and Support, Legal Services, International Labor Affairs, Administration and Management, Adjudication, Women's Bureau, Civil Rights, Chief Financial Officer, as well as two centralized management activities, the Information Technology initiatives administered by the Chief Information Officer, and the Management Initiatives activity. In 2006 the request for the Frances Perkins Building Security Enhancements is $6.9 million, comparable to the FY 2005 enacted level. These resources will continue allow the Department to proceed with required actions to ultimately ensure the security of the Department of Labor headquarters.

These Departmental Management organizations are responsible for formulating and overseeing the achievement of Departmental policy, for the overall management of the Department, and for providing a variety of unique services in ensuring equal employment opportunity in Departmental programs, and in supporting the rights of workers and promoting issues involving women in America's workforce.

Program Direction and Support

The Program Direction and Support (PDS) activity includes a total budget request of $29.5 million and 150 FTE for FY 2006, an increase of $2.9 million above FY 2005. The PDS activity includes the immediate Offices of the Secretary and Deputy Secretary, provides leadership and direction for overall programs, activities, and functions to carry out the multiple missions of the Department. In addition, PDS provides guidance for the development and implementation of government policy to protect and promote the interest of the American worker toward achieving better employment and earnings, to promote productivity and economic growth, safety, equity and affirmative action in employment, to collect and analyze statistics on the economy including the labor force, to monitor and evaluate emerging economic and international and national labor market trends and events, and to promote lifelong learning in the 21st century. PDS activities are central to the achievement of the Department's overall mission. Under the direction of the Secretary, the agenda for major program initiatives in such areas as pension protection, child labor, One Stop Centers, and unemployment insurance reform is forged.

Legal Services

The Office of the Solicitor (SOL) includes a total budget request of $89.7 million and 592 FTE for FY 2006, an increase of $2.3 million and comparable FTE from FY 2005. The SOL independently litigates cases in the U.S. District Courts, Courts of Appeals, and before administrative law judges and administrative appellate bodies; serves as the co-counsel to the Solicitor General in Department-related litigation in the U.S. Supreme Court; assists the Justice Department and local U.S. Attorneys, offices in case preparation and trial; supports regulatory reform through the review of rules and regulations; provides oral and written interpretations and opinions to the client agencies concerning the statutes which the Department enforces; coordinates the Department's legislative program; reviews proposed legislation and assists in drafting legislation; prepares testimony and reports on proposed legislation as requested by the Congress, as well as annual reports to the Congress; provides legal advice to interagency groups responsible for U.S. trade matters; assists in negotiating international agreements; and participates in international organizations including the International Labor Organization (ILO). The Office of the Solicitor also serves as "House Counsel" to the Department on a variety of matters, including labor-management relations and ethics.

International Labor Affairs

The request for the Bureau of International Labor Affairs (ILAB) in FY 2006 is $12.4 million and 95 FTE, a reduction of $80.8 million below FY 2005. The budget returns ILAB to its core mission to assist in formulating the U.S. international policies and programs of concern to American workers. At the request level ILAB will continue to support the President's Trade Agenda. In addition, ILAB will coordinate the Department's global responsibilities, and in 2006, will provide expert support for many of the Administration's international initiatives. The core mission of the Bureau includes representing the U.S. government at the International Labor Organization (ILO) and on the Employment, Labor and Social Affairs Committee of the Organization of Economic Cooperation and Development.

Administration and Management.

The FY 2006 budget includes $33.2 million and 125 FTE, an increase of $0.6 million above FY 2005, for the Office of the Assistant Secretary for Administration and Management (OASAM). OASAM provides leadership and policy guidance in the areas of budget, human resources, information technology, as well as management and administration for the Department's program agencies. OASAM's mission also includes providing centralized administrative and support services to the program agencies through the Working Capital Fund. This arrangement allows Departmental employees to achieve efficiency and cost effectiveness in the provision of such services.

FPB Security Enhancements

The total request for security enhancements to the Frances Perkins Building (FPB) in FY 2006 is $6.9 million comparable to the FY 2005 enacted level. Full funding of this request will allow the Department to proceed with required actions as deemed necessary by assessments and studies to ensure the security of DOL employees.

Adjudication

The Adjudication activity consists of two components: the Office of Administrative Law Judges (OALJ), and the Adjudicatory Boards comprised of the Benefits Review Board, the Employees' Compensation Appeals Board, the Administrative Review Board and the Office of the Managing Partner. In FY 2006, the total budget requested for these agencies is $43.9 million and 313 FTE, an increase of $1.8 million above FY 2005. The OALJ presides over formal hearings and renders timely decisions on claims filed under numerous statutes, including the Black Lung Benefits Act, the Longshore and Harbor Workers' Compensation Act and its extensions, and numerous other acts involving complaints to determine violations of minimum wage requirements, overtime payments, health and safety regulations, and unfair labor practices. The Adjudicatory Boards review and decide appeals of claims under the Black Lung Benefits Act, the Longshore and Harbor Workers' Compensation Act, and the Federal Employees' Compensation Act as well as statutory whistle blower provisions, wage determination statutes, and certain worker protection laws.

Women's Bureau

The FY 2006 budget includes $9.8 million and 60 FTE for the Women's Bureau, an increase of $0.3 million above FY 2005. The Women's Bureau is the only Federal agency with primary responsibility for serving and promoting the interests of working women. The Women's Bureau designs projects addressing issues of importance to working women, provides information about innovative women's programs, and advises and assists in the development of Departmental policies and programs related to or affecting women, in keeping with the Secretary's goals.

Civil Rights

The total proposed funding in the FY 2006 budget for the Civil Rights activity is $6.5 million and 46 FTE, an increase of $0.3 million above FY 2005. The Civil Rights activity is responsible for ensuring full compliance with Title VI of the Civil Rights Act, the Age Discrimination Act, Section 504 of the Rehabilitation Act, Section 188 of the Workforce Investment Act, Title II of the Americans with Disabilities Act, and the regulatory provisions implementing those statutes. The nondiscrimination provisions are applicable to programs receiving or benefiting from financial assistance from DOL. In addition, this activity ensures equal employment opportunity for all DOL employees and applicants for employment. This request is part of the overall DOL strategy to promote voluntary compliance in DOL enforcement activities, and in conjunction with the Office of Disability Employment Policy, to place special emphasis on improving access to DOL programs for persons with disabilities.

Chief Financial Officer

For the Chief Financial Officer activity, the FY 2006 budget includes $5.3 million and 38 FTE, an increase of $0.1 million above FY 2005. The Office of the Chief Financial Officer (OCFO) is responsible for developing comprehensive accounting and financial management policies, assuring that all Departmental financial functions conform to applicable standards, providing leadership and coordination to the Department's trust and benefit fund financial actions, monitoring the financial execution of the budget in relation to actual expenditures, enhancing knowledge and skills of Departmental staff working in financial management operations, and managing a comprehensive training program for accounting and financial support staff.

Information Technology Activities

The FY 2006 request includes $29.8 million for IT activities, comparable to the FY 2005 enacted level. These resources are for the continuation of a coordinated and centralized information technology (IT) investment strategy for the DOL managed by the CIO. As required by the Clinger Cohen Act of 1996, the Department established a CIO, accountable for IT management in the DOL, and implemented an IT Capital Investment Management process for selecting, controlling, and evaluating IT investments. These funds are allocated by the Department's CIO in accordance with the Department's capital investment management process, which is a "best practice" to assure a sound investment strategy for the entire Department. These information technology resources will ensure overall program effectiveness and communication among DOL programs, participants, and employees nationwide. The FY 2006 request provides two categories for IT funding: Enterprise Architecture and e-Government. A sub- category has been created within the Enterprise Architecture crosscut for IT Infrastructure related activities. Enterprise Architecture will concentrate on an enterprise solution for integrating the Department's overall architecture and aligning it with the Federal Enterprise Architecture. The IT Infrastructure specifically will focus on upgrading the Department's outdated core infrastructure, a necessary step to implement the Department's future Enterprise Architecture blueprint. Investments will be made in Local Area Networks, software, cabling, and telecommunications equipment. The request for e-Government includes initiatives that are directly related to the Presidential Priority Initiatives and will ensure that the Department will appropriately participate with other Federal-wide e-Government initiatives.

Management Initiatives

The FY 2006 President's Budget proposes to continue the Management Initiatives activity initially put forward in FY 2003. The total request for FY 2006 for this activity is $1.7 million, a decrease of $3.3 million below the FY 2005 enacted level. This activity is designed to address major management issues that face all DOL agencies. In this budget, the Management Initiatives activity will continue to address Workforce Analysis and Restructuring as well as the need for program performance evaluations to improve the overall effectiveness of DOL programs. In addition, funds will be used to increase physical and personnel security for the Department and to plan for continuing operations in the event of an emergency. Funding is also requested for studies on Departmental efforts in competitive sourcing under the President's Management Agenda, space consolidation, and a succession-planning program.

Working Capital Fund

The Department's agencies provide most of the financing for the Working Capital Fund (WCF) for centralized administrative services. A revolving fund, the WCF operates at rates that return, in full, all expenses in operation, including reserves for accrued annual leave and depreciation of capitalized assets. For FY 2006, the WCF's regular operating level totals $164.5 million and 688 FTE to support administrative and management services for all DOL programs nationwide. In addition, the Department requests a direct appropriation to the WCF of $6.2 million for resources necessary to replace its aging core accounting system.

Veterans’ Employment and Training Service

The Veterans' Employment and Training Service (VETS) provides maximum employment and training opportunities for veterans. The Assistant Secretary for Veterans Employment and Training serves as the principal advisor to the Secretary on all policies and procedures affecting veterans. VETS also administers grants to States, public entities and non-profits, including faith-based organizations, to help veterans find jobs. The budget request includes $224.3 million and 250 FTE for FY 2006.

State Grants

The budget request for this activity is $162.4 million. This is an increase of $1.3 million over the FY 2005 level. The increase requested will enable VETS to meet its performance goals and objectives and continue to implement requirements of the Jobs for Veterans Act of 2002. The request includes funding for State incentive awards. Funding for the Disabled Veterans' Outreach Program (DVOP) and the Local Veterans' Employment Representative (LVER) program will be based on State plans for services to veterans submitted by Governors in accordance with the Jobs for Veterans Act of 2002. The Disabled Veterans' Outreach Program provides intensive employment and employability development services to disabled veterans and to economically or educationally disadvantaged veterans through a system of program specialists. Many DVOP specialists are stationed at homeless veteran's shelters, Department of Veterans Affairs (VA) vocational rehabilitation or community-based Vet Centers and other VA locations. The Local Veterans' Employment Representatives conduct outreach to employers, conduct job search workshops, and facilitate employment, training, and placement services for veterans at One-Stop Career Centers. LVER staff also train service members about to separate from active duty through the Transition Assistance Program (TAP), provide labor exchange information to veterans, promote and monitor participation of veterans in federally funded employment and training programs, and monitor the listing of jobs from, and referrals to, Federal contractors and subcontractors.

Administration

The Administration activity supports a Federal staff which protects veterans' employment and reemployment rights and administers State grants for the DVOP and LVER programs, Veterans' Workforce Investment Program and Homeless Veterans' Reintegration Program grants. Agency staff conducts on-site technical assistance, coordinate with other Federal agencies, and collect and analyze information on employment and training services provided to veterans and service members leaving military service. The request will maintain a training capacity for about 140,000 TAP participants (including those overseas) and the capacity to process approximately 1,500 veteran employment and reemployment rights complaints. The FY 2006 funding for this activity is $30.4 million and 250 FTE, the same as FY 2005. The requested funding provides for inflationary increases, support for a national campaign to hire veterans, and costs of providing TAP services overseas.

The National Veterans' Training Institute

The National Veterans' Employment and Training Services Institute (NVTI) provides training to both Federal and State employees and managers involved in the delivery of services to veterans. A total of $2 million is requested for NVTI. VETS will continue to develop core competencies for veteran service providers through NVTI, and will develop new courses based on the Jobs for Veterans Act.

Homeless Veterans' Program

In FY 2006, the funding request for this program is $22 million. VETS will improve the Homeless Veterans' Reintegration Program (HVRP) through capacity building and increased retention efforts. VETS will support efforts on behalf of incarcerated veterans. This level of funding will help 10,600 homeless veterans find jobs.

Veterans' Workforce Investment Program

In FY 2006, the funding request for this program is $7.5 million. This will enable VETS to conduct a training and employment program for veterans under the Workforce Investment Act (Sec. 168) and pilot IT, trucking, and health care occupations initiatives in several states to help separating service members enter these occupational fields. The program will provide training opportunities for veterans with service- connected disabilities, along with recently separated and other veterans who are faced with significant barriers to employment. This program will help 2,500 hard-to-serve veterans enter employment.

Selected VETS Performance Goal and Indicators

• Improve the employment outcomes for veterans who receive State Workforce Agency services and veterans programs.
• 60% of veteran and 54% of disabled veteran job seekers will be employed in the first or second quarter following registration with the Public Labor Exchange.
• 56% of homeless veterans enrolled in homeless veterans' reintegration programs will enter employment.

Office of Inspector General

The Office of Inspector General (OIG) budget request includes a total of $71.1 million and 468 FTE for FY 2006, an increase of $1.9 million above FY 2005.
Program Activities

The OIG budget program includes audit, program fraud, labor racketeering, evaluations, inspections of program activities, and executive direction and management. The OIG performs audits of the Department's financial statements, programs, activities, and systems to determine whether information is reliable, controls are in place, resources are safeguarded and funds are expended in a manner consistent with the laws and regulations. The OIG administers an investigative program to detect and deter fraud, waste, and abuse in Departmental programs and to identify and reduce labor racketeering and corruption in employee benefit plans, labor management relations, and internal union affairs. The OIG also conducts DOL program evaluations, special reviews and inspections; analyzes complaints involving DOL programs, operations, or functions; and provides strategic planning and Congressional liaison services. The OIG carries out executive direction and management activities that include: management, legal counsel, administrative support, information technology, procurement, personnel, and financial functions. The OIG also provides technical assistance to DOL program agencies.

In FY 2006, the OIG plans to continue to focus investigations on crimes by transnational groups that defraud DOL programs. These groups file false labor certifications that may have national security implications through the admittance of suspect foreign nationals. These groups have also defrauded the Unemployment Insurance program of hundreds of millions of dollars in fraudulent benefits through identity theft.

Selected OIG Performance Goals and Indicators

• Optimize performance and accountability of the Department of Labor employment and Training Programs.
• Safeguard and improve worker and retiree benefit programs.
• Optimize performance and accountability of worker protection and workplace safety programs.
• Assist the Department of Labor in maintaining and effective strategic management process.
• Combat the influence of organized crime and labor racketeering in the workplace.

— GENERAL NOTE —
The numbers in the dollar tables in this document may not add due to rounding.