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I. Summary and Highlights 1

II. Introduction -- Mission, Vision, and Strategic Goals 3

III. Budget Request and Annual Performance Plan by Organizational Function 5

IV. Budget by Object Classification Category 26

V. Other Tables 33

The Occupational Safety and Health Review Commission is requesting $10,637,000 in funding for FY 2003. This amount is 7.3 percent above the comparable amount available for FY 2002 ($9,914,000). The request would support 69 FTEs. The increase in our budget request reflects increased rent costs, increased costs for personnel/payroll and financial and administrative services, and increased costs for information technology security. In order to absorb some of the increased costs, we have reduced or eliminated support for travel, training, equipment, and other services.

The request includes funds for the proposed 2.6 percent pay raise. The request assumes that the Review Commission's contribution rate to the Civil Service Retirement System will revert to 7.5 percent for the first quarter of FY 2003, and to 7 percent thereafter. Included in the request is $1,060,000 to fund the legislative proposal to charge the full amount of employee pension and annuitant health benefits accruals to the appropriate salaries and expenses accounts. The FY 2002 comparable amount for this activity is $950,000.

This amount requested would allow the Review Commission to fulfill its legislative mandate to serve as an administrative court providing just and prompt resolution of disputes involving the Occupational Safety and Health Administration (OSHA), employers charged with violations of Federal safety and health standards, and employees and/or their representatives. The request supports the goals in our strategic plan to improve service to and communications with the public and to maintain an organization that supports the two main goals.

Highlights of the FY 2003 budget request, more fully detailed in subsequent sections, are as follows:

• The pay request would allow us to fund 69 FTEs to address, at both the trial and Commission levels, the increasing complexity of the judicial workload and the retirement of old and complex cases.
• The request reflects the payroll and benefit increases due to cost of living and locality pay increases and within grade increases. The request assumes that there will be no Commission or judicial vacancies in FY 2003.
• The Administration is proposing legislation to require all retirement costs to be charged to the appropriate salaries and expenses accounts as they are earned. Therefore, the request includes the full Government share of the accruing cost of benefits under the Civil Service Retirement System and of post-retirement health benefits for Federal civilian employees in the Federal Employees' Health Benefits Program.
• The request includes $1,216,000 for office space rent, 6.8 percent of our total request. Of the total budget increase of $723,000, 67.6 percent ($489,000) is due to an increase in office rent. Beginning in April 2003, we expect to pay $54.00 per square foot for space to house our national office, based on estimates provided by the General Services Administration (GSA). This is a 160 percent increase from the $20.78 per square foot that we pay currently in FY 2001. It should be noted that our current rent costs are deflated because they reflect savings from our negotiations with GSA in FY 2000. Had we not realized these savings, our rent per square foot in FY 2001 would have been $40.00 (based on the rent for properties in the surrounding areas at the time).
• The request includes a $70,000 increase in the costs of personnel and payroll services and of financial and administrative services. The National Finance Center (NFC) informed us in April 2001 that the cost of financial and administrative services it provides to the Review Commission would increase from less than $50,000 per year to $250,000 per year. In addition, NFC estimated that a one-time cost to the Review Commission of the conversion to its newly developed Foundation Financial Information System alone would be from $750,000 to $3,000,000. As a result of these projected cost increases, the Review Commission has chosen an alternative service provider for financial and administrative services. Beginning in late Fiscal Year 2002, the Bureau of the Public Debt Administrative Resource Center (ARC) will provide these services to the Review Commission. We estimate the total costs of these services to be $120,000, which is more than double what we currently pay.
• The request includes an increase of $30,000 to comply with the Government Information Security Reform Act. Funding will support independent evaluations of the security of our system. With base resources, we will also continue to support automation and technology efforts initiated earlier, including hardware, software and contractual support.
• The request will enable us to complete our annual performance plan goals and targets.

Conclusion

Despite the increased costs, spending has been pared to the maximum extent possible in every area in keeping with budget constraints necessitated by the Administration's focus on winning the war against terrorism. While requesting certain targeted increases, the Review Commission has taken steps to pare spending to the maximum extent possible in every area. Our goals are to resolve cases fairly and expeditiously and to provide information to the public. Without the requested level of funding, the ability to resolve cases at the Administrative Law Judge and Commission levels would be impacted. Our communications with the public would be diminished and organizational effectiveness would be reduced.

The Review Commission is an independent, adjudicatory agency created by the Occupational Safety and Health Act of 1970. Its sole statutory mandate is to serve as an administrative court providing just and expeditious resolution of disputes involving OSHA, employers charged with violations of Federal safety and health standards, and employees and/or their representatives. The Review Commission was created by Congress as an agency completely independent of the Department of Labor to ensure that OSHA's enforcement actions are carried out in accordance with the law and that all parties are treated consistent with due process should a dispute arise.

The Occupational Safety and Health Act and the Review Commission's Rules of Procedure provide two levels of adjudication when an employer timely contests an OSHA citation for alleged violations of the Act or failure to abate such alleged violations. The first is a trial level, which affords an opportunity for a hearing before a Review Commission Administrative Law Judge. The judge's decision becomes final unless the decision is directed for review to the Commission. The second level is a discretionary appellate review of the judge's decision by the Commission members. Both before its judges and the Commissioners, the Review Commission provides fair and impartial adjudication of cases concerning the safety and health of employees' working conditions in the United States.

The principal (national) office of the Review Commission is located in Washington, D.C. There are also regional offices in Atlanta and Denver.

Mission Statement

The mission of the Occupational Safety and Health Review Commission is to provide an impartial forum for the just and prompt adjudication of workplace safety and health disputes involving the Department of Labor, employers and employees, and/or their representatives under the Occupational Safety and Health Act of 1970.

Vision Statement

The Review Commission strives to be:

• a quasi judicial body that is -- and is recognized for being -- objective, fair, prompt, and professional;
• an agency that creates a body of law through its decisions that defines and explains the rights and responsibilities of employers and employees under the Occupational Safety and Health Act of 1970;
• a model Federal agency with highly effective processes, a highly motivated, qualified and diverse workforce, and modern information management, communications, and administrative systems; and

• an agency that values team work, develops its employees, and strives to improve its performance, service, and value to the American people.

Strategic Goals

The Review Commission has three strategic goals:

Goal #1: Public Service Goal: To assure fair, just, and expeditious adjudication of disputes brought before the Commission and its judges, and achieve a high level of quality in all legal decisions

Goal #2: External Communications Goal: To enhance the efficiency and effectiveness of communications between the Commission and the public it serves

Goal #3: Organizational Goal: To further develop and invest in a highly effective, motivated, and diverse workforce equipped with modern information technology and communications systems to facilitate the accomplishment of its goals, meet program needs and increase organizational effectiveness and efficiency

This section describes the three functions of the Review Commission:

• the Administrative Law Judge function,

• the Commission function, and

• the Management and Administration function.

Each function has a staff assigned exclusively to it, and there is virtually no sharing of staff resources between the functions. This circumstance principally stems from the nature of the Administrative Law Judge and Commission functions, which must be separate so that each of these review levels is, both in fact and appearance, independent of the other. The Management and Administration function supports both the Administrative Law Judge and Commission functions.

Budget by Major Categories

Personnel Compensation and Benefits are the Agency's largest cost. In FY 2003, Personnel Compensation and Benefits is 70.5 percent of the amount requested. An additional 9.5 percent of the request represents the Administration's proposal to fully charge employee pension and annuitant health benefits accruals to the appropriate accounts.

The proportion that non-payroll costs represents of our total costs has increased because of increases in rent, and financial and administrative services, and information technology security. The Personnel Compensation and Benefits costs reflect the impact of the January 2002 and 2003 pay raises. The request also assumes that the Review Commission's contribution rate to the Civil Service Retirement System will revert to 7.5 percent for the first quarter of FY 2003, and to 7 percent thereafter.

Funding and staffing by function is as follows:

Function

The function of the Review Commission's Administrative Law Judge Division is to conduct formal hearings and related proceedings in a fair, just, and expeditious manner. The function is directly related to our public service goal.

The Administrative Law Judges report organizationally, through the Chief Judge, to the Chairman. However, they act independently in arriving at case decisions. The Federal Rules of Civil Procedure, which we follow, provide guidelines for managing cases. The rules require a "just, speedy and inexpensive determination of every action."

Proceedings Before the Review Commission's Administrative Law Judges

The events leading to the presentation of an OSHA case before a Review Commission Administrative Law Judge follow an established procedure. To contest all or part of a citation, penalty, or abatement period, an employer must file a notice of contest within 15 working days from the receipt of the citation proposed by OSHA. The Secretary of Labor transmits the notice of contest and all relevant documents to the Review Commission's Executive Secretary for filing. After the case is docketed, it is forwarded to the Office of the Chief Judge who monitors the process and assigns the case to an Administrative Law Judge. The case is generally assigned to an Administrative Law Judge in the Review Commission office closest to where the alleged violation occurred. Thereafter, the Administrative Law Judge has full responsibility for all pre-hearing and pre-trial procedures, including settlement, and is charged with providing a fair and impartial hearing in an expeditious manner, and rendering a decision promptly.

Administrative Law Judge Operations

The Review Commission strives to expedite the judicial process in a fair and impartial manner, strengthen its settlement procedures and case management responsibilities, and maintain the success of its E-Z Trial and Settlement Part processes. The Administrative Law Judge function also has to address a caseload which is becoming more complex. Achieving these ends is the primary responsibility of the Chief Administrative Law Judge.

OSHA's emphasis during recent years on more serious workplace hazards, and the consequent increase in proposed penalties, has translated into more complicated cases, and more costly trials. These cases command a greater portion of the judges' time. The Review Commission anticipates that this trend will continue.

The complexity of these cases is the result of the existence of any one or a combination of the following:

• the intricacies of the law,

• the number of parties,

• the volume of documents, including transcripts,

• the large number of witnesses (including expert witnesses in such fields as engineering, architecture, construction, soil, physics, epidemiology, pathology, neurology and infectious diseases),

• the number of alleged violations, items, and affirmative defenses (including distinct and separate items),

• the technical, novel, difficult or new standards raised, or

• the types of cases, such as those involving air pollution, asbestos, lead poisoning, tuberculosis, or ergonomics.

This trend presents a challenge to the goal of achieving a just and prompt decision in each case.

In FY 1999, the Review Commission piloted a mandatory settlement process known as the "Settlement Part" to handle large cases. The "Settlement Part" requires formal settlement efforts where the proposed penalty is $200,000 or over, or if the Chief Judge finds that a case is appropriate for this part because of its complexity. Such cases have a higher probability of going to trial, and when they do, they are likely to take more than two years to resolve under our conventional process. In FY 2000, 42 cases were assigned to "Settlement Part" and 28 cases were assigned to this process in FY 2001. In FY 1999, the settlement procedure resulted in the settlement of a majority of the cases assigned to the program. A formal evaluation of the program was completed in September 2000. The evaluation showed generally positive results, including substantial satisfaction among the program's users. Accordingly, the Commission voted to make the program permanent. The Chairman will continue to monitor the program to ensure its effectiveness.

The E-Z Trial process allows parties with relatively simple cases to have their "day in court" unencumbered by the myriad rules of procedure and evidence while assuring that due process requirements are maintained. Under this process, small businesses with or without counsel can present a case before an impartial judge and receive a swift decision. Most paperwork, including legal filings, has been eliminated so that justice can be rendered swiftly and inexpensively. The process is intended to reduce the time and legal expenses to employers contesting relatively small penalty cases. The process also allows more time for Administrative Law Judges to address the more complex cases. The Review Commission arranged for an outside evaluation of the program which was performed in FY 2001. The evaluation showed that program implementation was effective and that the program is generally being implemented in accordance with the goals. The survey responses suggest that E-Z Trial has varied impacts on settlement. While participants do not believe that the program should be mandatory, participants are generally satisfied with the fairness of the outcomes in the pre-hearing telephone conference call and in the overall E-Z Trial hearing. The Review Commission expects to continue the use of the E-Z Trial process.

The proportion of new cases assigned to the E-Z Trial process has averaged 34% over the last three years. We estimate that the proportion of cases assigned to the program in FY 2002 and FY 2003 will be relatively stable.

Anticipated Administrative Law Judge Workload for FY 2003

Three major factors impact on this function's workload: (1) the quantity, magnitude, and nature of the cases, (2) the success of the E-Z Trial and Settlement Part processes, and (3) the number of trials held, and their length and complexity.

OSHA recently projected that it expects to conduct 37,700 inspections in FY 2003. The Review Commission's caseload is affected not only by the number of inspections but by OSHA's focus on the highest hazard workplaces and most serious workplace hazards. These inspections tend to result in more complex cases. These complex cases consume extensive judicial time since the discovery process is lengthy and time consuming, motion practice is expanded, legal research and decision writing time is protracted and, of necessity, the trial process is elongated and complicated.

The table above shows projected, as well as recent, case activity. As shown in this table, the level of inspections by OSHA, combined with the focus on alleged large-scale and willful violators of health and safety regulations, resulted in an increase in new cases appealed to the Review Commission -- from 2,324 cases in FY 1999 to 2,407 cases in FY 2000. Data for FY 2001 shows a small decrease in the proportion of cases appealed to the Review Commission from the FY 2000 level.

In FY 2001 there were 2,322 dispositions at the Administrative Law Judge level. This represents an increase of 9 percent over the FY 1999 case disposition level of 2,181. Factors that have contributed to the increase include improved case management through technological improvements, the availability of temporary staff who provided assistance to the Administrative Law Judges, the increased proportion of cases that are assigned to E-Z Trial, and improved settlement efforts. The Review Commission's performance goals include several goals aimed at increasing the percent of cases issued within a specific time.

Staffing

Of the total 69 FTEs requested, 28 are required for the Administrative Law Judge function. This staff level includes the employment of 13 Administrative Law Judges and 15 staff attorneys and other support staff. Given the number of inspections occurring in FY 2003, projected by OSHA for future years, and the complexity of the cases received, the Review Commission believes that this is the minimum number of FTEs needed to address the expected workload and meet its performance targets.

The Chief Judge manages the effort to increase the percent of cases tried within the established goal and to increase the percent of cases processed without a hearing within the established goal. The Chief Judge:

• Conducts early review and screening of the potentially difficult cases before assignment,

• Exercises strong management and monitoring of progress of cases to meet performance goals,

• Ensures training of judicial and administrative staff, and

• Examines judicial case management practices of other entities.

Strategic Plan Goals and Objectives and Performance Goals and Measures

The Review Commission's Strategic Plan (Revised) includes the following goals and objectives related to this function:

The Review Commission intends to advance this strategic goal at the ALJ level through the following strategies. Objectives to be pursued during FY 2003 with the performance goals and indicators appear in the table that follows this list. Performance indicators or measures appear next to each performance goal.

• Expedite the assignment of cases to judges
• Use objective criteria to determine complex cases, and track the processing of these cases
• Monitor closely case performance, and improve case management information systems and reports
• Conduct early review and screening of the potentially difficult cases
• Provide training to all judges on a variety of subjects, including technical and legal issues, legal writing, case management and alternative means of dispute resolution, to help them develop the most skillful services and processes equal to the very best in judicial arenas
• Continue to use a team of judges to handle, on a rotational basis, extremely complex cases and assign appropriate staff to timely process and monitor such cases, including settlement discussions

* Conventional cases disposed of with hearing were measured and reported without regard to complexity in fiscal years 1998, 1999, and 2000. Conventional cases settled without a hearing within six months and all cases (conventional and E-Z Trial) settled within a one-year cycle time were measured and reported in FYs 1998, 1999, and 2000. These measurements for cases tried with or without a hearing include conventional and E-Z Trial cases.

Other Performance Plan Activities:

Establish quality standards for trial decisions and case processing

• Establish team and examine quality standards for case processing
• Develop quality standards for case processing

Explore ways to adapt alternative means of dispute resolution procedures for Review Commission cases

• Research other ADR initiatives

• Develop or revise one ADR initiative

Commission Function

Function

The function of the Commissioners is to adjudicate cases contested under the Act, subsequent to an initial decision by an Administrative Law Judge. This higher level of review must be both prompt and protective of the parties' rights. The function is directly related to our public service goal.

Proceedings Before the Commission

As mentioned previously, the Review Commission performs an adjudicatory function independent from the enforcement and rule-making functions vested in OSHA. Disputed enforcement proceedings are tried initially before the Review Commission's Administrative Law Judges. Decisions by the Review Commission's Administrative Law Judges may then be reviewed by the Commission members.

The Occupational Safety and Health Act of 1970 provides for Presidential appointment and Senate confirmation of three Commissioners, each with a six-year term. The Commissioners sit as an appellate review body with discretionary authority to review any case decided by the Review Commission's Administrative Law Judges. Each Commission member has the authority to direct any case decided by any judge for review by the full Commission. Absent such a direction, the decisions of the Administrative Law Judges become final by operation of law. Once directed for review, the Commission members have authority to review all aspects of a case, including judges' conclusions of law, findings of fact, penalty assessments and abatement schedules.

Each Commissioner is aided by a counsel who is responsible for providing assistance and advice on all pending matters, including the proper disposition of cases and motions and whether cases are appropriate for Commission review. Each counsel also aids the Commissioner in researching and editing draft opinions. Their work complements the work of the General Counsel.

The General Counsel has primary responsibility for preparing and presenting factual and legal analyses to assist Commission members in adjudicating appeals. Office of General Counsel staff has primary responsibility for presenting cases to the Commission for disposition and for preparing drafts of the Commission's opinions.

Commission Operations

The Commission strives to reduce the time for adjudicating cases and the number of pending cases. Aided by improved case management technology, the Commission seeks to strengthen the internal processes by which a case is prepared. Two external factors have a major impact on the operations of the Commission: the maintenance of a quorum and the complexity of cases.

As mentioned previously, the Commission consists of three members. The Occupational Safety and Health Act requires a quorum of two Commissioners and the affirmative vote of two Commissioners to decide cases. During periods when the Commission has no quorum, no cases can be decided. In addition, with only two Commissioners, it may be more difficult to reach agreement sufficient to dispose of some cases. In cases where such agreement cannot be reached, deadlocks result. As a result, action on important issues may be postponed and issuance of some pending cases will be delayed.

The number of safety and health inspections carried out by OSHA each year, the nature of those inspections, and the rate at which employers choose to contest the citations issued and penalties proposed by OSHA as a result of its enforcement activity have an impact on the cases filed with the Review Commission. In turn, OSHA's emphasis during recent years on more serious workplace hazards, and the consequent increase in proposed penalties, has translated into more complicated cases, and more costly trials. Consequently, the complexity of the cases both at the Administrative Law Judge level and at the Commission level has increased steadily in recent years.

The Commission's inventory of cases includes a number of extremely large and difficult cases. Preparation of each of these cases consumes a huge amount of attorney and Commissioner time. This, in turn, slows work on all other cases. The size and complexity of these cases have impacted the ability of the Office of the General Counsel to prepare and present a steady flow of cases to the Commission for disposition and to prepare the initial drafts of the Commission's opinions. To address this problem, we established two team leader positions in the Office of the General Counsel to speed preparation, facilitate coordination of issues, and to help assure consistency among cases. Team case preparation has shortened the time to analyze, present, and draft a number of these cases.

During FY 2000 the Commission implemented several strategies to resolve as many cases as possible, while adhering to high standards of quality:

• Identifying as a priority the resolution of older, larger, more significant, or more complex cases

• Utilizing a cross-section of expertise in resolving complex cases -- including individual discussions with the General Counsel, the Deputy General Counsel, team leaders, and the counsel to each Commissioner -- in addition to discussions with and reviews by the Commissioners themselves

As a result of these strategies, in FY 2000, the Commission resolved several cases dating back to the early part of the 1990s. Over the period July 2000 through October 2000, the Review Commission issued twelve cases that had a cumulative age at the Commission level of 57 years. Most of these cases were very large, both in terms of record size and the number and complexity of issues.

During FY 2001, the Commission continued its efforts to reduce the inventory of its pending cases. We resolved several older and complex cases in October 2000. The Commission has resolved numerous other cases during the fiscal year, including a number of older cases. Indeed, despite the absence of a quorum for one month and a change in Commission composition, the Commission resolved 52 cases during the fiscal year. The Commission reduced its inventory from 88 cases at the beginning of the fiscal year to 67 cases by the end of FY 2001, improving on its earlier estimate of 80 cases.

Anticipated Commission Workload for FY 2003

The Commission had a quorum for the larger part of FY 2001 and maintained a quorum for the major part of the first quarter of FY 2002. The appointment of one recess appointee expired upon the adjournment of Congress in December 2001. Therefore, the Commission does not have a quorum currently. As a result, at this time, there are two vacancies in the Commission. These vacancies during FY 2002 will have an impact on the number and types of cases that can be decided during FY 2002 and therefore, on the inventory of cases at the beginning of FY 2003. Although we anticipate that the Commission will be fully staffed during FY 2003, unexpected vacancies would impact our ability to decide and issue cases.

The table above shows projected, as well as recent, case activity. As shown in this table, the number of cases in the inventory at the end of FY 2000 increased from the level of the inventory at the end of FY 1999. This is a reflection of a higher number of cases directed for review, the fact that the Commission only had two members for three months in FY 2000, and the complexity of the older cases that the Commission addressed during the year. The facts that the Commission focused on more difficult cases in FY 2000, which take more time to resolve, and that there were more cases directed for review, also contributed to the increase in the inventory at the end of the year. In addition, the Commission worked on some very old and complex cases during the latter part of FY 2000 that were issued early in FY 2001.

During FY 1999, when the Commission had a quorum for approximately a nine-month period, there were 43 dispositions. Eighteen of the 43 dispositions (42 percent) occurred during the last three months of the fiscal year. During that same year, fewer cases were directed for review. The net effect was that the inventory of cases at the end of the year was reduced. However, the cases that remained were older and more complex. These are the cases that the Commission addressed during most of FY 2000.

A series of temporary hires were largely used to help expedite the processing of newer and less complex cases while freeing up the more senior permanent staff attorneys to concentrate on the old and complex cases. The success of this strategy is without precedent in the Review Commission. Between July 2000 and October 2000, the Commission issued twelve cases that had a cumulative age at the Commission level of 57 years. During the first three months of FY 2001, 19 cases were resolved. By the end of the fiscal year, the Commission had resolved 52 cases. This exceeds our earlier estimate of 46 cases.

Staffing

The FY 2003 budget requests funding for 9 FTEs to include the three Commissioners and their immediate staff (each Commissioner has a counsel and a confidential assistant) and 14.5 FTEs in the General Counsel's office, for a total of 23.5 FTEs. The budget request assumes that the Commission will have a full complement of Commissioners in place throughout FY 2003.

Strategic Plan Goals and Objectives and Performance Goals and Measures

The Review Commission's Strategic Plan (Revised) includes the following goals and objectives related to this function:

The Review Commission intends to advance this strategic goal at the Commission level through the following strategies. Objectives to be pursued during FY 2003 with the performance goals and indicators appear in the table that follows this list. Performance indicators or measures appear next to each performance goal.

• Continue the Commission's effort to focus on the disposition of a balance of older and newer cases, giving priority to the more significant and more complex cases
• Concentrate efforts on issuing the maximum number of decisions possible, while at the same time, reducing the number of older cases pending and ultimately the age of the pending inventory
• Implement internal markers to assist in the preparation of cases and issuance of Commission decisions
• Accelerate processing of cases through a variety of efforts, including early intervention of the Commissioners' counsels, briefing new attorneys and new Commissioners on Review Commission procedures and legal precedent, developing a Review Commission procedures manual, and creating ways to resolve cases when there are only two Commission members
• Continue to use teams and staff meetings in the Office of the General Counsel
• Develop creative methods to shorten case preparation of documents and develop alternatives to current formats of decisions

Other Performance Plan Activities:

Establish quality standards for Commission decisions and case processing

• Establish team and examine quality standards for case processing
• Develop quality standards for case processing

Enhance alternative means of dispute resolution procedures for Review Commission cases

• Research other ADR initiatives

• Develop or revise one ADR initiative

Function

The function of Management and Administration is to provide executive management and administrative support services for the Review Commission, to assure its success in fulfilling its mission.

Management and Administration Operations

The Management and Administration function includes the public information function which facilitates communication with the public. Management and Administration also provides strategic planning and operational management of the organization, including case docketing, technology management, computer and information security, handling of procurement of goods and services, payroll and personnel services, financial management, training, and handling of materiel and space needs for each of the offices. The aim is to provide support to headquarters staff and regional office staffs to that the can carry out their case responsibilities.

The day-to-day tasks performed under the direction of the Executive Director and Chief Operating Officer, include:

• docketing incoming cases resulting from OSHA appeals and communicating with the public in general and case parties in particular

• maintaining a public information office, including providing case decisions to the public

• responding to Congressional and Freedom of Information Act inquiries

• disseminating case file documents to the public

• maintaining and enhancing a website to provide the public with greater access to Review Commission information, particularly decisions at the Administrative Law Judge and Commission levels

• responding to requests from or fulfilling responsibilities to other executive agencies

• formulating and presenting the Review Commission's annual budget and performance plans and reports

• controlling the obligation and disbursement of funds

• maintaining a personnel function, including establishing and implementing personnel policies, hiring, training, and promoting employees

• procuring goods and services

• maintaining and repairing equipment

• maintaining a library for legal and technical research

• providing travel assistance to mission critical activities

• implementing improved computerized case management and administrative systems through hardware and software

• developing computer systems and information security enhancements
• enhancing telecommunications and improving technology efficiency and effectiveness

Anticipated Management and Administration Workload for FY 2003

The Review Commission will meet the FY 2003 performance goals through a variety of means and strategies. During FY 2003 this function will pursue activities in support of the Agency's three goals. During FY 2003, the Review Commission will:

• Use modern technology and techniques, including the website, to continue to be citizen-centered and to provide faster and better public access to and dissemination of Review Commission information and decisions
• Improve the Review Commission's capability to interface on line access with government and non-government systems and improve procurement through the expanded application of on-line procurement and by making greater use of performance-based contracts
• Evaluate the Review Commission's computer security program to comply with the Government Information Security Reform Act
• Support the transition to a new service provider for our financial, accounting and other administrative services while continuing to obtain support for personnel and payroll services from the National Finance Center
• Complete the implementation of plans for organizational streamlining (as appropriate) and knowledge management and continue the implementation of the employee succession and workforce transition plans
• Use a variety of electronic training in place of classroom training to enhance employee skills and knowledge
• Implement family-friendly initiatives, including a telecommuting pilot
• Monitor compliance with performance measures in the agency's performance plan

The request includes $1,216,000 for office space rent. Beginning in April 2003, we expect to pay $54.00 per square foot for space to house our national office. GSA will begin the procurement process in April 2002, one year before the expiration of the current lease. We intend to closely review, monitor, and participate in our office rent negotiations with GSA to minimize the potential rent increase and consider alternatives as necessary.

The request also includes a $70,000 increase in the costs of personnel and payroll services and of financial and administrative services resulting from a change in providers. We estimate that the costs of these financial and administrative services plus the cost of the personnel and payroll services that NFC will continue to provide will be $120,000, which is more than double what we currently pay.

Staffing

The Review Commission requests 17.5 FTEs for the Management and Administration function in FY 2003. These positions consist of the Executive Director and her administrative assistant, an information technology officer and an analyst, a public information officer and assistant, the Executive Secretary and three legal technicians, the Director of the Office of Financial and Administrative Services and six administrative, personnel, procurement, and, financial accounting positions, and a part-time librarian.

The Executive Director has been appointed by the Chairman as the Chief Operating Officer. In this capacity, the Management and Administration staff has assumed responsibility for implementing the President's management and reform efforts, including implementing and monitoring strategic and performance plans and reports, budget and performance integration, human capital and competitive sourcing, and e-government. The Executive Director has continuing responsibility for achieving the external communication and organizational goals as well as objectives supporting the public service goal.

Strategic Plan Goals and Strategic Plan Objectives and Performance Goals and Measures

The Review Commission's Strategic Plan (Revised) includes the following goals and objectives related to this function:

The Review Commission will pursue a variety of means and strategies to meet the FY 2003 performance goals detailed below in support of the Agency's strategic goals. During FY003, the Review Commission will:

• Use modern automated technology and techniques, including the website, to continue to be citizen- oriented and to provide faster and better public access to and dissemination of Review Commission information and decisions
• Explore and develop technology which will enable electronic transmission of information required by the Review Commission, and improve the quality and efficiency of filing documents with the Review Commission consistent with the Paperwork Elimination Act
• Evaluate the Review Commission's computer security program to comply with the Government Information Security Act
• Guard the integrity and efficiency of the financial management and human resource programs to support program and organizational needs and develop useful management and financial information systems that facilitate aggregate reporting and oversight procedures and secure the information we possess
• Improve the Review Commission's capability to interface online with government and non government systems and improve procurement through the expanded application of on line-procurement and by making greater use of performance based contracts
• •Complete the implementation of plans for organizational streamlining (as appropriate) and knowledge management strategies, continue the implementation of the employee succession and workforce transition plans, and recruit for positions from a cross section of sources, including colleges, universities, law schools
• Use a variety of electronic training (e.g., on-line training, video training, and CD ROMs) in place of classroom training to enhance employee skills and knowledge and to achieve Agency goals, and high performance
• Improve telecommunications, availability, and speed of information accessed by employees, Federal agencies, and the public

For FY 2003, the Review Commission requests $10,637,000. This amount is 7.3 percent above the comparable amount available for FY 2002 ($9,914,000). The request would support 69 FTEs. The increase in our budget request reflects increased rent costs, increased costs for personnel/payroll and financial and administrative services, and increased cost for information technology security. In order to absorb some of the increased requirements, we have reduced or eliminated support for travel, training, equipment, and other services.

The request includes funds for the proposed 2.6 percent pay raise. The request assumes that the Review Commission's contribution rate to the Civil Service Retirement System will revert to 7.5 percent for the first quarter of FY 2003, and to 7 percent thereafter. Included in the request is $1,060,000 to fund the proposal to fully charge employee pension and annuitant health benefits accruals. The FY 2002 comparable amount is $950,000.

The proposed budget by object classification category is shown in the table below, along with the current year budget. A narrative explanation of the amounts requested for each object classification follows the table.

Object Classification Table

for the

Occupational Safety and Health Review Commission

Fiscal Years 2002 and 2003

($ in 000s)

11.1 Full Time Permanent Positions

The request for FY 2003 includes $6,340,000 to fund the direct payroll costs of 69 FTEs. This is an increase of $188,000 from the level available in FY 2002. This amount includes the effect of the general pay raise in January 2002 and of the proposed general pay raise in January 2003. All authorized positions are expected to be filled at the start of the fiscal year, and any positions becoming vacant during the year are expected to be filled quickly. The net effect of these two expectations is that the entire amount requested will be needed.

11.5 Other Compensation

Consistent with the Review Commission's encouragement of individual employee initiative and performance, $25,000 is requested to provide funds to reward employees for superior performance or special acts or services. Cash awards are a necessary incentive in the Review Commission's continuing effort to improve the quality and timeliness of its work product, which in turn, contributes to overall agency efforts to accomplish its Annual Performance Plan objectives.

12.1 Personnel Benefits

An amount of $1,137,000 is needed to fund the payroll-related costs of employee benefits in FY 2003. These benefits principally consist of the government's contribution to the CSRS and FERS retirement programs, life and health insurance programs, and the Thrift Savings Plan. The request reflects the decrease in the government contribution rates for the CSRS. Personnel Benefits are increasing as a proportion of personnel costs in general as more employees are covered by the FERS program and as the costs and types of other benefits increase. We expect these costs to increase from a projected 14 percent of total Salaries and Benefits in FY 2002 to 14.5 percent in FY 2003.

13 Employee Pension and Annuitant Health Benefits Accruals

An amount of $1,060,000 is needed to fund the employee pension and annuitant health benefits accruals (additional legislation required). The Administration is proposing legislation to fully charge pension and annuitant health benefits to the appropriate salaries and expenses accounts, in order to present the full costs of government activities.

21.0 Travel

The Review Commission requests $97,000 for travel of administrative law judges to conduct hearings. In order to absorb increases in other areas, we have reduced or eliminated support for travel, training, equipment, and other services.

22.0 Transportation of Things

An amount of $7,000 is requested to fund the cost of shipping materials between Review Commission offices and other locations, and the shipping costs associated with the purchase of supplies and equipment.

23.1 Rental Payments to GSA

The request includes $1,216,000 for office space rent. Beginning in April 2003, we expect to pay $54.00 per square foot for space to house our national office. This is a 160 percent increase from the $20.78 per square foot that we pay currently. It should be noted that our current rent costs are deflated because they reflect savings from negotiations with the General Services Administration (GSA) in FY 2000. Had we not realized these savings, our rent per square foot in FY 2001 would have been $40.00 instead of the $20.78 we are paying now (based on the rent for properties in the surrounding area). The estimated cost of $54.00 per square foot was provided by the General Services Administration (GSA) based the estimate of current rents for space comparable to that occupied by the National Office now. GSA will begin the procurement process in April of 2002, one year before the expiration of the current lease.

23.2 Communications, Utilities and Miscellaneous Charges

Telephone and postage costs are projected to require $61,000 in FY 2003. Local phone service is expected to require $38,000. Long distance service is estimated at $6,000, and postage for the required mailing of letters, cases, and other materials is expected to be $17,000.

24.0 Printing

Our printing costs consist mainly of the charges for publishing proposed regulations and announcements in the Code of Federal Regulations (CFR) and the Federal Register, purchasing copies of the CFR and the Federal Register and other GPO publications. Together, these printing/publishing costs are expected to approximate $9,000 in fiscal year 2003. The balance of the budget -- $35,000 -- is needed for continuing development and maintenance of the Review Commission's Internet website, which is housed and maintained by the Government Printing Office and for the production of compact discs which contain the latest decisions reached by the Review Commission's Administrative Law Judges and by the full Commission.

25.0 Other Services

An amount of $302,000 is requested for Other Services. A number of the obligations funded in this area have uncontrollable costs. We have attempted to reduce other contract services where we can. This area includes such unavoidable items as court reporting ($90,000), maintenance and development of the Review Commission's ADP system ($60,000), support for new information technology security ($30,000), the Transportation Subsidy Program, and on-line legal research ($34,000). The category also includes other contractual services that are required as circumstances warrant. In order to absorb costs in other areas, we have reduced or eliminated support for travel, training, equipment, and other services.

25.1 Services by Other Federal Agencies

An amount of $140,000 is requested for Services Provided by Other Federal Agencies. This area includes $15,000 for the costs of support by the National Finance Center, $105,000 for the costs of financial and administrative services, and $20,000 for other interagency services.

The National Finance Center (NFC) informed us in April 2001 that the cost of financial and administrative services it provides to the Review Commission would increase from under $50,000 to about $250,000 each year. In addition, NFC estimated that a one-time cost of the conversion to

the newly developed Foundation Financial Information System alone would be from $750,000 to $3,000,000.

In May 2001, the Review Commission contacted other small agencies to whom NFC provides services. The five agencies formed a group to obtain information on how other small agencies obtain these services and to discuss providing these services with other agencies that provide financial and administrative services. We identified three organizations as possible service providers. Early in our research, the Review Commission recognized that the costs of financial and administrative services would be considerably higher than what we pay the NFC currently. Further, NFC has not provided information on the costs of continuing to provide personnel and payroll services.

We expect that, beginning in October of 2002, the Bureau of Public Debt Administrative and Resources Center will provide these services to the Review Commission. However, the costs of these financial and administrative services, plus the cost of the personnel and payroll services that NFC will continue to provide, will more than double what we currently pay.

25.3 Repair and Maintenance of Equipment

An amount of $36,000 is requested for Repair and Maintenance of Equipment including equipment used for printing and ADP equipment.

26.0 Supplies

The amount of $112,000 is requested for materials and publications. General office supplies will require an estimated $22,000. ADP supplies, including software, will require approximately $20,000, and, subscriptions to necessary legal and OSHA related publications will require $70,000.

31.0 Equipment

The amount of $60,000 is required for equipment in FY 2003, of which $53,000 is to be applied to computer acquisitions. This amount will enable the Review Commission to continue the replacement cycle established in earlier years. The expected life cycle of our ADP equipment is four years. Our ADP equipment includes personal computers, printers, a local area network, and associated peripherals. The remaining $7,000 of the amount requested for equipment will be used to replace worn or obsolete equipment or any furniture that may be needed.

¹ Reduced to $8,081,000 by P.L. 104-134 ² Reduced to $7,738,000 by P.L. 104-208

³ Reduced to $8,092,000 by H.R. 1664 ⁴ Reduced to $8,470,000 by P.L. 106-113

⁵ Includes legislative proposal to fully charge pension

and annuitant health benefits