3. The ETA FY
2003 Budget
ETA Strategic Goals and FY
2003 Budget
The Employment and Training Administration
proposes a FY 2003 budget request that addresses major workforce
issues, maximizes resources, continues to restructure its own workforce,
and is based on the Agency's 5-year Strategic and Annual Performance
Plans. The request totals $10.3 billion, $906 million less than
what is available in FY 2002. Of this total, $9.3 billion is available
for discretionary programs and $1.1 billion is available for mandatory
spending.
ETA's FY 2003 request does not introduce
new programs. Rather, it focuses on the programs and initiatives
already in place and on reforms and strategies that improve program
performance and financial accountability to ensure the most effective
and efficient use of the American taxpayers' money. The request
invests in programs that have proven effective and reduces spending
on, or eliminates, those less effective or duplicative efforts.
For example, resources are requested to continue expansion of the
highly successful Job Corps program, a residential job training
program for disadvantaged youth. In contrast, the request would
end H-IB Skills Training Grants, Migrant and Seasonal Farmworker
national programs, and new Youth Opportunity Grants. The budget
supports fully ETA's mission and principles for preparing workers
for the 21st Century workforce and the changing nature of work and
the workplace.
A primary focus will be to bring
about much needed reforms in the Unemployment Insurance and Employment
Service programs. These reforms will make UI and ES more responsive
to the needs of workers and employers, give states flexibility,
and promote economic growth.
The following is a summary, by appropriation
account, of ETA's FY 2003 budget request. This budget summary encompasses
all ETA programs and activities included in the following appropriation
accounts: Training and Employment Services; Community Service Employment
for Older Americans; State Unemployment Insurance and Employment
Service Operations; Federal Unemployment Benefits and Allowances,
Program Administration; and the Advances Account.
Training and Employment Services:
The Training and Employment Services (TES) appropriation funds a
decentralized system of education, skill training and related services
directed toward increasing the post-program employment and earnings
of current and future workers, particularly low-income persons,
dislocated workers, and other unemployed or underemployed individuals.
$5.0 billion is requested, $687.0 million below the FY 2002 level.
The only increase requested is $73.4 million for Job Corps to support
operations and construction for new centers and for an initiative
to provide high school accreditation at all Job Corps Centers. The
Administration will propose legislation on pension and health care
benefits.
Community Service Employment
for Older Americans: This appropriation funds the Senior
Community Service Employment Program (SCSEP), which is authorized
under Title V of the Older Americans Act Amendments of 2000. SCSEP
is a part-time employment program for low- income persons age 55
or older. The ETA request is $440.2 million, $4.9 million below
FY 2002 funding level.
State Unemployment Insurance
and Employment Service Operations: This appropriation provides
temporary income support to unemployed workers while they seek new
employment or wait to return to their previous jobs. It also supports
matching of employers seeking workers with workers seeking jobs,
and provides funding for national activities relating to employment
service activities and the Federal-State Unemployment Insurance
program, and funding for State One-Stop Center networks.
The request is for $3.7 billion,
$93 million below the FY 2002 level, based on the latest economic
assumptions. There are two significant changes in this account:
(1) The budget request includes $10,000,000 in State Administration
to reduce erroneous payments, a major Administration goal. Also
included are added resources to finance projected workload increases
due to higher claims workload and the normal growth of the workforce
and covered employers. (2) ETA proposes to shift H-1B fee generated
resources from training programs in the Training and Employment
Services account to the State Unemployment Insurance and Employment
Service Operations account to eliminate the backlog in the permanent
foreign labor certification programs. ETA continues to make progress
in developing a more streamlined system, but the higher workloads
will require additional resources to prevent backlogs from further
growing and extending the time it will take to clear them.
Federal Unemployment Benefits
and Allowances: The Federal Unemployment Benefits and Allowances
(FUBA) appropriation provides for the payment of Trade Adjustment
Assistance (TAA) benefits, training, job search and relocation allowances
to workers adversely affected by increase imports. Additionally,
the FUBA appropriation provides for the payment of benefits, training,
job search and relocation allowances to workers impacted by trade
with countries covered by the North American Free Trade Agreement
(NAFTA).
The request for FY 2003 is for $461.7
million, $15 million above the FY 2002 level, based on the latest
economic assumptions, for the TAA and NAFTA-TAA programs.
Program Administration: The
ETA request is for $172.1 million and 1,441 FTE, an increase of
$10.6 million. The total FTE is comprised of 1,328 funded from the
appropriation and 113 FTE funded from reimbursements and H-1B fees.
The budget includes a 29 FTE decrease pursuant to OMB Circular A-76
and outsourcing a number of activities presently performed by Federal
employees. Of the increase, $5.5 million and 75 FTE is for National
Emergency Grants, contingent upon the enactment of the Administration's
Worker Relief package, $1.9 million for contractor services to provide
specialized financial and program performance management information
to all level of ETA organizations. This request includes an increase
of $577 thousand for the increased space costs of the San Francisco
regional office and $4.2 million for built-in cost increases. The
Administration will propose legislation on pension and health care
benefits.
Decreases include $1.1 million and
13 FTE for Youth Opportunity Grants, $300 thousand and 3 FTE for
School-to-Work, and $100 thousand and 2 FTE for Public Affairs.
In addition, 38 FTE will be redeployed to performance management
and accountability activities from other, lower priority, activities.
A legislative proposal included in
the 2003 budget shifts H-1B fee-generated resources from training
programs in the Training and Employment Services account to the
State Unemployment Insurance and Employment Service Operations account.
These fees will be used to eliminate the backlog in the permanent
foreign labor certification program. Six million dollars of these
funds will be allocated to the Program Administration account to
finance an additional 60 FTE to reduce permanent program backlogs
in ETA Regional Offices.
Advances Account:
The ETA request includes $463 million, an decrease of $1 million
below FY 2002, for the Advances to the Unemployment Trust Fund and
Other Funds account for use by the Employment Standards Administration
for the Black Lung Disability Trust Fund.
The ETA requests $12,000,000 for
incentive grants to States. Section 503 of the Workforce Investment
Act provides that the Secretary of Labor shall award an incentive
grant to each State that exceeds the State adjusted levels of performance
for Titles I and II and the Carl Perkins Vocational and Applied
Technology Education Act. Incentive funds allow ETA to reward those
States that achieve or exceed negotiated performance levels and
to provide technical assistance and possible sanctions for those
States that do not.