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Archived News Release — Caution: Information may be out of date.

OPA News Release: [02/02/2004]
Contact Name: Bob Zachariasiewicz
Phone Number: (202) 693-4686

Labor Secretary Elaine L. Chao Announces 2005 Spending Plan

WASHINGTON—Secretary of Labor Elaine L. Chao today announced details of the Department of Labor’s Fiscal Year (FY) 2005 request of $57.3 billion, of which $45.4 billion is mandatory and $11.9 billion is in discretionary budget authority, and 17,419 full-time staff.

New programs encompassed in this budget include $250 million for new worker training programs that tap the expertise of the nation’s community and technical colleges and a $50 million pilot program on Personal Reemployment Accounts. The accounts will allow unemployed workers more flexibility in choosing services that meet their individual needs.

“The 2005 budget reflects the Administration’s commitment to support and protect America’s workers, with special emphasis on training,” said Secretary of Labor Elaine L. Chao. “The department’s 2005 spending plan was designed to ensure that workers are prepared to compete in an increasingly global economy,” continued Chao. “This Administration won’t rest until every worker who wants a job can find one.”

The department’s FY 2005 budget was developed around four major themes designed to make a difference in the lives of America’s working families: Innovative Programs to Help Workers Find Jobs; Protecting Workers with Stronger Enforcement and Accountability; Protecting America’s Immigrant Workforce; and Building a 21st Century Department of Labor.

To ensure that workers are prepared for the challenges they will meet in 2005, the department has set specific strategic goals. The first two goals, A Prepared Workforce and A Secure Workforce, are focused on ensuring that workers are secure in the skills and abilities to do their jobs effectively. A third goal, Quality Workplaces, is aimed at ensuring that workplaces are safe and meet safety standards as required by law and administered by the U.S. Labor Department. The FY 2005 budget addresses a newly-developed fourth goal: A Competitive Workforce, which focuses on equipping workers to adapt to rapidly-evolving challenges while promoting job flexibility and minimizing regulatory burden.

Community Colleges Initiative: Training Workers for High-Growth Jobs

To support the department’s goal of developing A Competitive Workforce, the Community College initiative provides $250 million for a new, employment-focused competitive grant that will leverage the expertise of the nation’s community and technical colleges and help workers wishing to retool, refine, and broaden their skills.

Personal Reemployment Accounts

The $50 million for the Personal Reemployment Accounts program would allow worker flexibility in selecting services, which will help them return to work, and be incentive-based. Under the plan, States would offer up to $3,000 to eligible unemployed workers. These resources could be applied to training and services that best benefit each individual candidate. This program would allow the recipients to keep the balance of the account as a cash bonus if they find a job within 13 weeks.

Worker Protection and Retirement Security

The department is proposing a $40 million increase in worker protection and retirement security. These increases will better protect workers’ retirement savings; ensure worker safety and health; protect union member rights; and increased civil monetary penalties.

The budget includes $132 million for the Employee Benefits Security Administration (EBSA), an increase of $8.3 million, or a 6.7 % increase. To complement this increase, the Administration will continue to press for enactment of the President’s retirement security plan, which will give workers better information on their retirement savings; increase access to investment advice; and provide more freedom to diversify investments.

Occupational and Mine Safety and Health efforts will receive an additional $10.8 million in 2005 to help build upon a solid record of achievement in labor law enforcement. This includes $4.1 million for OSHA and $6.7 million for MSHA

The department’s Office of Labor-Management Standards (OLMS) will receive a $4.9 million increase to restore staffing to better protect union members’ rights and financial interests, and incorporate electronic filing to reduce unions’ administrative burdens. An additional $4.3 million is requested for the Office of Inspector General, which will help prevent organized crime influence in union matters, safeguard union members’ funds, and fight labor racketeering.

President’s Management Agenda and Department-wide Management Initiatives

The Department of Labor continues to make significant progress in its ongoing implementation of the President’s Management Agenda (PMA). This agenda, launched in the summer of 2001, seeks to improve the management of the federal government in five government-wide areas. They are: Strategic Management of Human Capital; Competitive Sourcing; Improved Financial Performance; Expanded Electronic Government; and Budget and Performance Integration. In addition, the Department is also responsible for implementing a sixth Agenda component: Faith-Based and Community Initiatives.

Two PMA-related components of the FY 2005 budget are the Department’s $33.6 million Information Technology and $10.1 million Management Cross-cut initiatives. These DOL-wide accounts remain effective budgeting tools by reducing duplicative agency requests while implementing DOL-wide management strategies.

The balance of the Department’s 2005 budget is made up of unemployment insurance, workers’ compensation, and other mandatory programs. The department’s overall FY 2005 request is $57.3 billion.

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Archived News Release — Caution: Information may be out of date.

 

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