DEPARTMENT OF LABOR

Federal Funds

For necessary expenses of the Workforce Investment Act of 1998 ("WIA''), the Second Chance Act of 2007, and the Women in Apprenticeship and Non-Traditional Occupations Act of 1992, including the purchase and hire of passenger motor vehicles, the construction, alteration, and repair of buildings and other facilities, and the purchase of real property for training centers as authorized by the WIA; [$3,828,530,000] $3,925,475,000 plus reimbursements, shall be available. Of the amounts provided:

(1) for grants to States for adult employment and training activities, youth activities, and dislocated worker employment and training activities, and for workforce innovation activities, [$2,969,449,000] $3,178,031,000 as follows:

(A) [$861,540,000] $906,884,000 for adult employment and training activities, of which not more than 5 percent shall be available for workforce innovation activities to carry out projects authorized under section 171(b) of the WIA that test and validate effective strategies for improving program delivery and outcomes for program beneficiaries, and of which [$149,540,000] $194,884,000 shall be available for the period July 1, [2010] 2011, through June 30, [2011] 2012, and of which $712,000,000 shall be available for the period October 1, [2010] 2011 through June 30, [2011] 2012;

(B) [$924,069,000] $1,025,000,000 for youth activities, which shall be available for the period April 1, [2010] 2011 through June 30, [2011;] 2012, and of which not more than 15 percent shall be for workforce innovation activities to carry out projects authorized under section 171(b) of the WIA that test and validate effective strategies for improving program delivery and outcomes for youth: Provided, That for purposes of section 127(b) of the WIA, funds available for youth activities shall be used and allotted as if the total amount available for youth activities in the fiscal year does not exceed $1,000,000,000: Provided further, That notwithstanding section 128(a)(1) of the WIA, the amount available to the Governor for statewide activities shall not exceed 10 percent of the amount allotted to the State from the appropriation under this subparagraph: Provided further, That of the funds reserved in this subparagraph for workforce innovation activities not less than 30 percent shall be for projects providing summer employment activities for youth; and

(C) [$1,183,840,000] $1,246,147,000 for dislocated worker employment and training activities, of which not more than 5 percent shall be for workforce innovation activities to carry out projects authorized under section 171(b) of the WIA that test and validate effective strategies for improving program delivery and outcomes for program beneficiaries, and of which [$323,840,000] $386,147,000 shall be available for the period July 1, [2010] 2011 through June 30, [2011] 2012, and of which $860,000,000 shall be available for the period October 1, [2010] 2011 through June 30, [2011:] 2012;

Provided, That notwithstanding the transfer limitation under section 133(b)(4) of the WIA, up to 30 percent of [such] funds allocated to a local area from appropriations under subparagraphs (A) and (C) may be transferred by a local board if approved by the Governor: Provided further, That a local board may award a contract to an institution of higher education or other eligible training provider if the local board determines that it would facilitate the training of multiple individuals in high-demand occupations, if such contract does not limit customer choice: Provided further, That projects carried out with funds available for workforce innovation activities shall not be subject to the requirements of section 171(b)(2)(B) of the WIA and shall be administered by the Secretary of Labor in cooperation with the Secretary of Education and, as appropriate, other heads of departments and agencies: Provided further, That of the funds available for workforce innovation activities, not more than 5 percent shall be for technical assistance and evaluations related to the projects carried out with these funds;

(2) for federally administered programs, [$470,038,000] $492,538,000 as follows:

(A) $229,160,000 for the dislocated workers assistance national reserve, of which $29,160,000 shall be available for the period July 1, [2010] 2011 through June 30, [2011] 2012, and of which $200,000,000 shall be available for the period October 1, [2010] 2011 through June 30, [2011] 2012: Provided, That funds provided to carry out section 132(a)(2)(A) of the WIA may be used to provide assistance to a State for State-wide or local use in order to address cases where there have been worker dislocations across multiple sectors or across multiple local areas and such workers remain dislocated; coordinate the State workforce development plan with emerging economic development needs; and train such eligible dislocated workers: Provided further, That funds provided to carry out section 171(d) of the WIA may be used for demonstration projects that provide assistance to new entrants in the workforce and incumbent workers: Provided further, That none of the funds shall be obligated to carry out section 173(e) of the WIA;

(B) [$52,758,000] $55,000,000 for Native American programs, which shall be available for the period July 1, [2010] 2011 through June 30, [2011] 2012;

(C) [$84,620,000] $87,378,000 for migrant and seasonal farmworker programs under section 167 of the WIA, including [$78,410,000] $82,135,320 for formula grants (of which not less than 70 percent shall be for employment and training services), [$5,700,000] $4,368,900 for migrant and seasonal housing (of which not less than 70 percent shall be for permanent housing), and [$510,000] $873,780 for other discretionary purposes, which shall be available for the period July 1, [2010] 2011 through June 30, [2011] 2012: Provided, That notwithstanding any other provision of law or related regulation, the Department of Labor shall take no action limiting the number or proportion of eligible participants receiving related assistance services or discouraging grantees from providing such services;

(D) $1,000,000 for carrying out the Women in Apprenticeship and Nontraditional Occupations Act, which shall be available for the period July 1, [2010] 2011 through June 30, [2011] 2012; and

(E) [$102,500,000] $120,000,000 for YouthBuild activities as described in section 173A of the WIA, which shall be available for the period April 1, [2010] 2011 through June 30, [2011: Provided, That for program year 2010 and each program year thereafter, the YouthBuild program may serve an individual who has dropped out of high school and re-enrolled in an alternative school, if that re-enrollment is part of a sequential service strategy] 2012;

(3) for national activities, [$389,043,000] $254,906,000, as follows:

(A) [$93,450,000] $46,556,000 in addition to any amounts available under paragraph (1) for Pilots, Demonstrations, and Research, which shall be available for the period April 1, [2010] 2011 through June 30, [2011] 2012, of which [$30,000,000] $40,000,000 shall be for Transitional Jobs activities, and shall not be subject to the requirements of section 171(b)(2)(B) or 171(c)(4)(D) of the WIA, and that up to 10 percent of the amount available for Transitional Jobs activities may be used for evaluation of such projects or transferred to the Department of Health and Human Services and/or the Department of Justice for support of Transitional Jobs activities; [and of which $5,500,000 shall be for competitive grants to address the employment and training needs of young parents, and shall not be subject to the requirements of section 171(b)(2)(B) or 171(c)(4)(D) of the WIA; and of which $48,889,000 shall be used for the projects, and in the amounts, specified under the heading "Training and Employment Services'' in the statement of the managers on the conference report accompanying this Act: Provided, That funding provided to carry out such projects shall not be subject to the requirements of sections 171(b)(2)(B) and 171(c)(4)(D) of the WIA, the joint funding requirements of sections 171(b)(2)(A) and 171(c)(4)(A) of the WIA, or any time limit requirements of sections 171(b)(2)(C) and 171(c)(4)(B) of the WIA;]

(B) [$108,493,000] $98,000,000 for ex-offender activities, under the authority of section 171 of the WIA and section 212 of the Second Chance Act of 2007, which shall be available for the period April 1, [2010] 2011 through June 30, [2011] 2012, notwithstanding the requirements of section 171(b)(2)(B) or 171(c)(4)(D) of the WIA[, of which $15,000,000 shall be for competitive grants to provide Transitional Job activities for ex-offenders];

(C) [$9,600,000] $11,600,000 for Evaluation, which shall be available for the period July 1, [2010] 2011 through June 30, [2011] 2012;

(D) [$40,000,000] $85,000,000 for activities that prepare workers for careers in energy efficiency and renewable energy as described in section 171(e)(1)(B) of the WIA, under the authority of section 171 of the WIA, which shall be available for the period July 1, [2010] 2011 through June 30, [2011] 2012, and which shall not be subject to the requirements of section 171(b)(2)(B) or 171(c)(4)(D); and

[(E) $125,000,000 for Career Pathways Innovation Fund, under the authority of section 171 of the WIA, which shall be available for the period July 1, 2010 through June 30, 2011, of which not less than $65,000,000 shall be dedicated to activities that prepare workers for careers in the health care sector, and which shall not be subject to the requirements of section 171(b)(2)(B) or 171(c)(4)(D); and]

[(F)] (E) [$12,500,000] $13,750,000 for the Workforce Data Quality Initiative, under the authority of section 171(c)(2) of the WIA, which shall be available for the period July 1, [2010] 2011 through June 30, [2011] 2012, and which shall not be subject to the requirements of section 171(c)(4)(D). (Department of Labor Appropriations Act, 2010.)

Program and Financing (in millions of dollars)

Enacted in 1998, the Workforce Investment Act (WIA) is the primary authorization for this appropriation account. WIA expired on September 30, 2003. The Act is intended to provide workers with the information, advice, job search assistance, and training they need to get and keep good jobs; and to provide employers with skilled workers. Funds appropriated for this account generally are available on a July- to- June program year basis, and substantial advance appropriation amounts are provided. This account includes:

Adult employment and training activities.—Grants to provide financial assistance to States and territories to design and operate training and employment assistance programs for adults, including low-income individuals and public assistance recipients. The 2011 Budget directs 5 percent of these funds to a Workforce Innovation Fund for competitive grants to support and test "learn and earn" strategies like apprenticeships and on-the-job training; promote regional and sectoral collaborations; and support other evidence-based innovations. DOL will work closely with the Department of Education and other federal agencies to administer the grants, and use them as a mechanism for encouraging States and localities to work across programs to improve service delivery and participant outcomes.

Dislocated worker employment and training activities.—Grants to provide reemployment services and retraining assistance to individuals dislocated from their employment. Five percent of dislocated worker formula funds are contributed to the Workforce Innovation Fund described above.

Youth activities.—Grants to support a wide range of activities and services to prepare low-income youth for academic and employment success, including summer jobs. The program links academic and occupational learning with youth development activities. The 2011 Budget directs 15 percent of total Youth funding to a Youth Innovation Fund to pilot innovative models for delivering summer and year-round work experiences and comprehensive services to disconnected youth.

Green Jobs.—These funds will support research, labor exchange, and job training projects that help prepare workers for careers related to renewable energy and energy efficiency.

Reintegration of Ex-Offenders.—Supports activities authorized under the Second Chance Act to help individuals exiting prison make a successful transition to community life and long-term employment through mentoring, job training, and other services. The Department of Labor will coordinate closely with the Department of Justice in carrying out this program.

Native Americans.—Grants to Indian tribes and other Native American groups to provide training, work experience, and other employment-related services to Native Americans.

Migrant and Seasonal Farmworkers.—Grants to public agencies and nonprofit groups to provide training and other employability development services to economically disadvantaged youth and families whose principal livelihood is gained in migratory and other forms of seasonal farmwork.

National programs.—Provides program support for WIA activities and nationally administered programs for segments of the population that have special disadvantages in the labor market. National activities conducted under the Pilots, Demonstrations, and Research authority will include projects to demonstrate and evaluate transitional job models, which combine short-term subsidized or supported employment with intensive case management services to help populations with barriers to employment succeed in the labor market.

Workforce Data Quality Initiative.—Competitive grants to support the development of longitudinal data systems that integrate education and workforce data to provide timely and accessible information to consumers, policymakers, and others.

Object Classification (in millions of dollars)

To carry out subtitle C of title I of the Workforce Investment Act of 1998, including Federal administrative expenses, the purchase and hire of passenger motor vehicles, the construction, alteration and repairs of buildings and other facilities, and the purchase of real property for training centers as authorized by the Workforce Investment Act; [$1,708,205,000] $1,707,363,000, plus reimbursements, as follows:

(1) [$1,574,015,000] $1,572,253,000 for Job Corps Operations, of which [$983,015,000] $981,253,000 shall be available for obligation for the period July 1, [2010] 2011 through June 30, [2011] 2012 and of which $591,000,000 shall be available for obligation for the period October 1, [2010] 2011 through June 30, [2011] 2012;

(2) $105,000,000 for construction, rehabilitation and acquisition of Job Corps Centers, of which $5,000,000 shall be available for the period July 1, [2010] 2011 through June 30, [2013] 2014 and $100,000,000 shall be available for the period October 1, [2010] 2011 through June 30, [2013; and] 2014: Provided, That the Secretary of Labor may transfer up to 15 percent of such funds to meet the operational needs of such centers: Provided further, That any funds transferred pursuant to the preceding proviso shall not be available for obligation after June 30, 2012; and

(3) [$29,190,000] $30,110,000 for necessary expenses of the Office of Job Corps which shall be available for obligation for the period October 1, [2009] 2010 through September 30, [2010] 2011:

Provided, [That the Office of Job Corps shall have contracting authority: Provided further,] That no funds from any other appropriation shall be used to provide meal services at or for Job Corps centers. (Department of Labor Appropriations Act, 2010.)

Program and Financing (in millions of dollars)

The Office of Job Corps supports the administration and management of the Job Corps program. Established in 1964 as part of the Economic Opportunity Act and authorized by the Workforce Investment Act of 1998 (P.L. 105-220, Title 1, Subtitle C, section 141), Job Corps is an intensive educational and career technical training program for disadvantaged youth who need and can benefit from these training services in order to become more employable, responsive, and productive citizens.

The program serves more than 60,000 participants and operates in a primarily residential setting at 122 centers in 48 states, the District of Columbia and the Commonwealth of Puerto Rico. A new center in Florida is scheduled to open in 2010, and four new centers are currently under design or construction in Wisconsin, Iowa, New Hampshire and Wyoming. Large and small corporations and nonprofit organizations manage and operate 94 of the Job Corps centers through contractual agreements with the Department of Labor, while the other 28 centers are operated through an interagency agreement with the U.S. Department of Agriculture. Job Corps participants must be economically disadvantaged youth, ages 16-24, and who meet one or more of the following criteria: basic skills deficient; a school dropout; homeless, a runaway, or a foster child; a parent; or in need of additional education, vocational training, or intensive counseling and related assistance in order to participate successfully in regular schoolwork or to secure and hold employment.

The Consolidated Appropriations Act, 2010 (P.L. 111-117) accepted the Administration's proposal to transfer the Job Corps program and its administrative funding from the Office of the Secretary back to the Employment and Training Administration (ETA) to better coordinate the program with other employment and training programs ETA oversees. Funding for the Job Corps program is now shown in a separate appropriation account under ETA, having formerly been shown in a separate account under Departmental Management.

The 2011 Budget supports an initiative to reform and improve Job Corps, by setting high standards for centers and taking quick and decisive action to address problems in the program's performance.

Object Classification (in millions of dollars)

Employment Summary

To carry out title V of the Older Americans Act of 1965 [("OAA'')], [$825,425,000] $600,425,000, [of] which [$600,425,000] shall be available for the period July 1, [2010] 2011 through June 30, [2011 and of which $225,000,000 shall be available on the date of the enactment of this Act and remain available through December 31, 2011: Provided, That notwithstanding sections 506 and 514 of the OAA, $225,000,000 shall be allotted within 45 days of the date of the enactment of this Act to current grantees that the Secretary of Labor determines can effectively utilize additional funding: Provided further, That within 15 days of the enactment of this Act, the Secretary shall provide to the Committees on Appropriations of the House of Representatives and the Senate a report on the procedure for allotting such funds: Provided further, That funds made available under this heading may, in accordance with section 517(c) of the OAA, be recaptured and reobligated] 2012. (Department of Labor Appropriations Act, 2010.)

Program and Financing (in millions of dollars)

Community Service Employment for Older Americans (CSEOA), authorized by Title V of the Older Americans Act as amended in 2006 (P.L. 109-365), is a federally-sponsored community service employment and training program that targets unemployed low-income older individuals who want to enter or re-enter the workforce. Participants must be 55 years of age or older with incomes no more than 125 percent of the Federal poverty level. The program, known as the Senior Community Service Employment Program (SCSEP), offers participants work-based community service training at non-profit or governmental agencies so that they can gain on-the-job experience and prepare to enter or re-enter the workforce. The dual goals of the program are to foster individual economic self-sufficiency and to provide useful opportunities in community service activities.

Object Classification (in millions of dollars)

For payments during fiscal year [2010] 2011 of trade adjustment benefit payments and allowances under part I of subchapter B of chapter 2 of title II of the Trade Act of 1974, and section 246 of that Act; and for training, employment and case management services, allowances for job search and relocation, and related State administrative expenses under part II of subchapter B of chapter 2 of title II of the Trade Act of 1974, including benefit payments, allowances, training, and related State administration provided pursuant to paragraphs (1) and (2) of section 1891(b) of the Trade and Globalization Adjustment Assistance Act of 2009, [$1,818,400,000] $1,938,200,000, together with such amounts as may be necessary to be charged to the subsequent appropriation for payments for any period subsequent to September 15, [2010] 2011. (Department of Labor Appropriations Act, 2010.)

Program and Financing (in millions of dollars)

Summary of Budget Authority and Outlays (in millions of dollars)

This account funds the Trade Adjustment Assistance (TAA) for Workers program, which provides weekly cash benefits, training, job search and relocation allowances, and employment and case management services to certain workers displaced by international trade. The account also funds the Alternative Trade Adjustment Assistance (ATAA) and the Reemployment Trade Adjustment Assistance (RTAA) programs that provide wage insurance payments for certain older workers who become reemployed at lower wages than the wages paid in their pre-layoff employment.

The TAA for Workers program was reauthorized through December 31, 2011, and substantively amended through December 31, 2010, under the Trade and Globalization Adjustment Assistance Act of 2009, which was enacted as part of the American Recovery and Reinvestment Act of 2009 (Public Law 111-5). Under the amendments, workers covered by petitions for the TAA program filed before May 18, 2009, continued to receive the benefits and services, including ATAA, in accordance with the TAA provisions that were in effect prior to these amendments (see Section 1891(b) of the Trade and Globalization Adjustment Assistance Act of 2009). Petitions filed on or after May 18, 2009, are considered under expanded group eligibility provisions (e.g., workers in the service sector will be eligible) and the covered workers may be eligible for enhanced services and benefits, including additional weeks of cash benefits while in training and for the RTAA program.

Object Classification (in millions of dollars)

Program and Financing (in millions of dollars)

The Administration will propose legislation for later transmittal to reauthorize and extend the Trade Adjustment Assistance (TAA) for Workers program. The American Recovery and Reinvestment Act of 2009 (Public Law 111-5) amended TAA to expand eligibility to service workers, increase the funds available for training, and make other program changes, but it sunsets this expanded coverage for petitions filed after December 31, 2010. Upon sunset, the TAA program reverts to the application of prior TAA law, which the Recovery Act extended through December 31, 2011.

For authorized administrative expenses, $86,403,000, together with not to exceed [$3,977,278,000] $4,293,924,000 which may be expended from the Employment Security Administration Account in the Unemployment Trust Fund ("the Trust Fund''), of which:

(1) [$3,195,645,000] $3,515,079,000 from the Trust Fund is for grants to States for the administration of State unemployment insurance laws as authorized under title III of the Social Security Act (including $10,000,000 to conduct in-person reemployment and eligibility assessments and unemployment insurance improper payment reviews), the administration of unemployment insurance for Federal employees and for ex-service members as authorized under 5 U.S.C. 8501-8523, and the administration of trade readjustment allowances, reemployment trade adjustment assistance, and alternative trade adjustment assistance under the Trade Act of 1974 and under section 1891(b) of the Trade and Globalization Adjustment Assistance Act of 2009, and shall be available for obligation by the States through December 31, [2010] 2011, except that funds used for automation acquisitions shall be available for obligation by the States through September 30, [2012] 2013, and funds used for unemployment insurance workloads experienced by the States through September 30, [2010] 2011, shall be available for Federal obligation through December 31, [2010] 2011;

(2) $11,310,000 from the Trust Fund is for national activities necessary to support the administration of the Federal-State unemployment insurance system;

(3) $680,893,000 from the Trust Fund, together with $22,683,000 from the General Fund of the Treasury, is for grants to States in accordance with section 6 of the Wagner-Peyser Act, and shall be available for Federal obligation for the period July 1, [2010] 2011 through June 30, [2011] 2012;

(4) $20,994,000 from the Trust Fund is for national activities of the Employment Service, including administration of the work opportunity tax credit under section 51 of the Internal Revenue Code of 1986, and the provision of technical assistance and staff training under the Wagner-Peyser Act, including not to exceed $1,228,000 that may be used for amortization payments to States which had independent retirement plans in their State employment service agencies prior to 1980;

(5) [$68,436,000] $65,648,000 from the Trust Fund is for the administration of foreign labor certifications and related activities under the Immigration and Nationality Act and related laws, of which [$53,307,000] $50,519,000 shall be available for the Federal administration of such activities, and $15,129,000 shall be available for grants to States for the administration of such activities; and

(6) $63,720,000 from the General Fund is to provide workforce information, national electronic tools, and one-stop system building under the Wagner-Peyser Act and section 171 (e)(2)(C) of the Workforce Investment Act of 1998 and shall be available for Federal obligation for the period July 1, [2010] 2011 through June 30, [2011] 2012:

Provided, That to the extent that the Average Weekly Insured Unemployment ("AWIU'') for fiscal year [2010] 2011 is projected by the Department of Labor to exceed [5,059,000] 6,051,000, an additional $28,600,000 from the Trust Fund shall be available for obligation for every 100,000 increase in the AWIU level (including a pro rata amount for any increment less than 100,000) to carry out title III of the Social Security Act: Provided further, That funds appropriated in this Act that are allotted to a State to carry out activities under title III of the Social Security Act may be used by such State to assist other States in carrying out activities under such title III if the other States include areas that have suffered a major disaster declared by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act: Provided further, That the Secretary of Labor may use funds appropriated for grants to States under title III of the Social Security Act to make payments on behalf of States for the use of the National Directory of New Hires under section 453(j)(8) of such Act: Provided further, That funds appropriated in this Act which are used to establish a national one-stop career center system, or which are used to support the national activities of the Federal-State unemployment insurance or immigration programs, may be obligated in contracts, grants, or agreements with non-State entities: Provided further, That funds appropriated under this Act for activities authorized under title III of the Social Security Act and the Wagner-Peyser Act may be used by States to fund integrated Unemployment Insurance and Employment Service automation efforts, notwithstanding cost allocation principles prescribed under the Office of Management and Budget Circular A-87: Provided further, That the Secretary, at the request of a State participating in a consortium with other States, may reallot funds allotted to such State under title III of the Social Security Act to other States participating in the consortium in order to carry out activities that benefit the administration of the unemployment compensation law of the State making the request.

In addition, [$50,000,000] $55,000,000 from the Employment Security Administration Account of the Unemployment Trust Fund shall be available to conduct in-person reemployment and eligibility assessments and unemployment insurance improper payment reviews. (Department of Labor Appropriations Act, 2010.)

Program and Financing (in millions of dollars)

Unemployment compensation.—State administration amounts provide administrative grants to State agencies that pay unemployment compensation to eligible workers and collect State unemployment taxes from employers. These agencies also pay unemployment benefits to former Federal personnel and ex-servicemembers as well as trade readjustment allowances to eligible individuals. State administration amounts also provide administrative grants to State agencies to improve the integrity and financial stability of the unemployment compensation program through a comprehensive performance management system, UI Performs. The purpose is to effect continuous improvement in State performance and related activities designed to assess and reduce errors and prevent fraud, waste, and abuse in the payment of unemployment compensation benefits and the collection of unemployment taxes. National activities relating to the Federal-State unemployment insurance programs are conducted through contracts or agreements with the State agencies or with non-State entities. A workload contingency reserve is included in State administration to meet increases in the costs of administration resulting from increases in the number of claims filed and claims paid. The appropriation automatically provides additional funds whenever unemployment claims workload increases above levels specified in the appropriations language.
The request for additional funding for in-person reemployment and eligibility assessments of claimants of unemployment compensation builds upon the success of a number of States in reducing improper payments and speeding reemployment using these assessments. Because most unemployment claims are now filed by telephone or Internet, in-person assessments conducted in the One-Stop Career Centers can help determine continued eligibility for benefits and adequacy of work search, verify the identity of beneficiaries where there is suspicion of possible identify theft, and provide referral to reemployment assistance to those who need additional help. The $55 million requested for reemployment and eligibility assessments is estimated to provide benefit savings of $210 million. It is important that this integrity initiative and other new enforcement investments be fully funded. To ensure full funding of reemployment and eligibility assessments, the Administration proposes to protect the dollars requested for these activities in the appropriations process through allocation adjustments, a mechanism that has been used by past Administrations and Congresses. Allocation adjustments are increases in the ceiling or allocation for annual appropriations, but these increases would be granted only if the base level for reemployment and eligibility assessments was funded at $10 million and if the use of the funds was clearly restricted to the specified purpose. See additional discussion in the Budget Reform Proposals chapter in the Analytical Perspectives volume.

UNEMPLOYMENT COMPENSATION PROGRAM STATISTICS

Employment service.—The public employment service is a nationwide system providing no-fee employment services to job-seekers and employers. State employment service activities are financed by grants provided by formula to States. Funding allotments are provided annually on a Program Year basis beginning July 1 and ending June 30 of the following year.
Employment service activities serving national needs are conducted through specific reimbursable agreements between the States and the Federal Government under the Wagner-Peyser Act, as amended, and other legislation. States also receive funding under this activity for administration of the Work Opportunity Tax Credit, as well for amortization payments for those States that had independent retirement plans prior to 1980 in their State employment service agencies.

EMPLOYMENT SERVICE PROGRAM STATISTICS

Foreign Labor Certification.—This activity provides for the administration of the foreign labor certification programs within the Employment and Training Administration. Under these programs, U.S. employers that can demonstrate a shortage of qualified, available U.S. workers and that there would be no adverse impact on similarly situated U.S. workers may seek the Secretary of Labor's certification as a first step in the multi-agency process required to hire a foreign worker to fill critical permanent or temporary vacancies. Major programs include the permanent, H-2A temporary agricultural, H-2B temporary non-agricultural and temporary highly skilled worker visas. The account is divided into Federal and State activities.

Federal Administration.— Formerly funded in the Employment and Training Administration's Program Administration account, Federal Administration provides leadership, policy, and operational direction to Federal activities supporting the effective and efficient administration of foreign labor certification programs.

State grants.— Provides grants to State labor agencies in 54 States and U.S. territories funding employment-related activities required for the administration of Federal foreign labor certification programs. Includes State Workforce Agency posting and circulation of job orders and other assistance to employers in the recruitment of U.S. workers, processing of employer requests for prevailing wage determinations for the permanent and temporary programs, state processing of H-2A agricultural and H-2B non-agricultural temporary labor certification applications, State safety inspection of housing provided by employers to workers, and State development of prevailing wage and prevailing practice surveys used to set wages and standards in a defined geographic area.

One-stop career centers.—These funds are used to support the joint Federal-State efforts to improve the comprehensive One-Stop system created under WIA. This system provides workers and employers with quick and easy access to a wide array of enhanced career development and labor market information services. A portion of these funds supports a joint initiative between the Employment and Training Administration and the Office of Disability Employment Policy to improve the accessibility and accountability of the public workforce development system for individuals with disabilities.

Object Classification (in millions of dollars)

Employment Summary

Program and Financing (in millions of dollars)

Summary of Budget Authority and Outlays (in millions of dollars)

This account provides for general fund financing of extended unemployment benefit programs under certain statutes. Under the Emergency Unemployment Compensation law enacted in Public Law (P.L.) 102-164, as amended, there continues to be general fund financing for administrative costs related to any extended benefits paid under the optional, total unemployment rate trigger created in that law. This account is also used to make general fund reimbursements for some or all of the benefits and administrative costs incurred under the new Emergency Unemployment Compensation program (first enacted in P.L. 110-252, expanded in P.L. 110-449, extended in P.L. 111-5, expanded in P.L. 111-92, and extended in P.L. 111-118). These funds are transferred to a receipt account in the Unemployment Trust Fund (UTF) so that resources may be transferred to the Employment Security Administration Account in the UTF for administrative costs or to the Extended Unemployment Compensation Account in the UTF for benefit costs.

Program and Financing (in millions of dollars)

Program and Financing (in millions of dollars)

This account provides mandatory general revenue funding for a temporary program established under the American Recovery and Reinvestment Act of 2009 (Public Law 111-5). This program pays a supplement of $25 on every week of unemployment compensation through February 28, 2010, with phaseout.

For repayable advances to the Unemployment Trust Fund as authorized by sections 905(d) and 1203 of the Social Security Act, and to the Black Lung Disability Trust Fund as authorized by section 9501(c)(1) of the Internal Revenue Code of 1986; and for nonrepayable advances to the Unemployment Trust Fund as authorized by 5 U.S.C. 8509, and to the "Federal Unemployment Benefits and Allowances'' account, such sums as may be necessary, which shall be available for obligation through September 30, [2011] 2012. (Department of Labor Appropriations Act, 2010.)

Program and Financing (in millions of dollars)

This account makes available funding for repayable advances (loans) to two accounts in the Unemployment Trust Fund (UTF): the Extended Unemployment Compensation Account (EUCA) which pays the Federal share of extended unemployment benefits, and the Federal Unemployment Account (FUA) which makes loans to States to fund unemployment benefits. In addition, the account provides repayable advances to the Black Lung Disability Trust Fund (BLDTF) whenever its balances prove insufficient to make payments from that account. These repayable advances are shown as borrowing authority within the UTF or the BLDTF, and they do not appear as budget authority or outlays in the Advances to the Unemployment Trust Fund and Other Funds account.

This account also makes available funding as needed for nonrepayable advances to the Federal Employees Compensation Account (FECA) to pay the costs of unemployment compensation for former Federal employees and ex-servicemembers, and to the Federal Unemployment and Benefits and Allowances (FUBA) account to pay the costs of benefits and services under the Trade Adjustment Assistance for Workers (TAA) program. These advances are shown as budget authority and outlays in the Advances account above.

Advances were needed for the FUA and FECA accounts in fiscal year 2009, and significant increases in advances to FUA and FECA, as well as EUCA and the BLDT, are anticipated in fiscal years 2010 and 2011. Detail on the nonrepayable advances to FECA is provided above; detail on the repayable advances is shown separately in the UTF and BLDTF accounts.

To address the potential need for significant, and somewhat unpredictable, advances to various accounts, Congress amended the previous appropriations language for the Advances account to appropriate such sums as needed for advances to all of the potential recipient accounts. This language is proposed to continue for fiscal year 2011.

For expenses of administering employment and training programs, [$97,516,000] $104,904,000, together with not to exceed [$50,140,000] $57,138,000, which may be expended from the Employment Security Administration Account in the Unemployment Trust Fund. (Department of Labor Appropriations Act, 2010.)

Program and Financing (in millions of dollars)

This account provides for the Federal administration of Employment and Training Administration programs.

Adult services.—Provides leadership, policy direction and administration for a decentralized system of grants to State and local governments as well as federally administered programs for job training and employment assistance for low income adults and dislocated workers; provides for training and employment services to special targeted groups; provides for the settlement of trade adjustment petitions; and includes related program operations support activities.

Youth services.—Provides leadership, policy direction and administration for a decentralized system of grants to State and local governments as well as federally administered programs for job training and employment assistance for youth.

Workforce security.—Provides leadership and policy direction for the administration of the comprehensive nationwide public employment service system; oversees unemployment insurance programs in each State; supports a one-stop career center network, including a comprehensive system of collecting, analyzing and disseminating labor market information; and includes related program operations support activities.

Office of Apprenticeship.—Oversees the administration of a Federal-State apprenticeship structure that registers apprenticeship training programs meeting national standards, and provides outreach to employers and labor organizations to promote and develop high-quality apprenticeship programs.

Executive direction.—Provides leadership and policy direction for all training and employment services programs and activities and provides for related program operations support, including research, evaluations, and demonstrations.

Object Classification (in millions of dollars)

Employment Summary

Program and Financing (in millions of dollars)

Workers Compensation Programs.—Section 5011 of Public Law 109-148 made $50,000,000 available to the New York State Uninsured Employers Fund for reimbursement of claims related to the September 11, 2001, terrorist attacks on the United States and for reimbursement of claims related to the first response emergency services personnel who were injured, were disabled, or died due to such terrorist attacks.

For grants to assist in the start-up of new paid leave programs in the States, $50,000,000, of which the Secretary may reserve not more than 1 percent for administration related to such grants.

Program and Financing (in millions of dollars)

The 2011 Budget establishes a new $50 million State paid leave fund in the Department of Labor to support competitive grants to support States that wish to establish paid-leave programs. The Budget permits Labor to use up to 1 percent of the total appropriation for administration of the program.

Object Classification (in millions of dollars)

Employment Summary

Special and Trust Fund Receipts (in millions of dollars)

Program and Financing (in millions of dollars)

The 2011 Budget proposes legislation to establish fees for new applications under the permanent and H-2B temporary foreign labor certification programs. The Budget also proposes legislation to allow the Department to retain fees for new applications under the H-2A temporary labor certification program and modify the fee to cover program costs. The fees would offset the State and Federal costs of administering these programs and once fully implemented would greatly reduce or eliminate the need for appropriations for this purpose. A portion of the fees collected for H-2B applications would be use to fund an apprenticeship initiative. Upon enactment of the fees, requests for funding in the Foreign Labor Certification administration account would be reviewed and adjusted.

Object Classification (in millions of dollars)

Employment Summary

Trust Funds

Special and Trust Fund Receipts (in millions of dollars)

Program and Financing (in millions of dollars)

Summary of Budget Authority and Outlays (in millions of dollars)

The financial transactions of the Federal-State and railroad unemployment insurance systems are made through the Unemployment Trust Fund. All State and Federal unemployment tax receipts are deposited into the Trust Fund and invested in Government securities until needed for benefit payments or administrative expenses. The portion of the Trust Fund funded with Federal unemployment taxes provides repayable advances (loans) to the States when the balances in their individual State accounts are insufficient to pay benefits. The Trust Fund may receive repayable advances from the general fund when it has insufficient balances to make advances to States or to pay the Federal share of extended unemployment benefits.

State payroll taxes pay for all regular State unemployment benefits. During periods of high State unemployment, there is a stand-by program of extended benefits (EB), financed one-half by State unemployment taxes and one-half by the Federal unemployment payroll tax, which are also paid out of the Trust Fund. The American Recovery and Reinvestment Act (Public Law 111-5) has temporarily made EB 100 percent federally financed. In addition, the Federal unemployment tax pays the costs of Federal and State administration of the unemployment insurance system, veterans' employment services, surveys of wages and employment, and about 97 percent of the costs of the Employment Service.

The Federal Employees Compensation Account (FECA) in the Trust Fund provides funds to States for unemployment compensation benefits paid to eligible former Federal civilian personnel, Postal Service employees, and ex-servicemembers. In turn, the various Federal agencies reimburse FECA for benefits paid to their former employees. FECA is not funded out of Federal unemployment taxes. Any additional resources necessary to assure that the FECA account can make the required payments to States will be provided from the Advances to the Unemployment Trust Fund and Other Funds account.

Both the benefit payments and administrative expenses of the separate unemployment insurance program for railroad employees are paid from the Unemployment Trust Fund, and receipts from a tax on railroad payrolls are deposited into the Trust Fund to meet expenses.

Status of Funds (in millions of dollars)

Object Classification (in millions of dollars)

Program and Financing (in millions of dollars)

Please see the narrative in the "State Unemployment Insurance and Employment Service Operations" account for a description of the program integrity proposal whose savings are reflected here.

Program and Financing (in millions of dollars)

The Administration will propose legislation for later transmittal to extend the Emergency Unemployment Compensation and Extended Benefits programs.

Federal Funds

For necessary expenses for the Employee Benefits Security Administration, [$154,861,000] $161,995,000. (Department of Labor Appropriations Act, 2010.)

Program and Financing (in millions of dollars)

Enforcement and participant assistance.—Conducts criminal and civil investigations and performs reviews to ensure compliance with the fiduciary provisions of the Employee Retirement Income Security Act and the Federal Employees' Retirement System Act. Provides information and assistance to benefit plan participants and to the general public. Assures compliance with applicable reporting requirements, as well as accounting, auditing and actuarial standards. Supplies required reports to the public.

Policy and compliance assistance.—Conducts policy, research, and legislative analyses on pension, health, and other employee benefit issues. Provides compliance assistance especially to employers and plan officials. Writes regulations and interpretations. Issues individual and class exemptions from regulations.

Executive leadership, program oversight, and administration.—Provides leadership, policy direction, strategic planning, and administrative guidance in the management of employee benefit programs. 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. Manages the technical program training for the agency's enforcement, policy, legislative and regulatory functions.

Object Classification (in millions of dollars)

Employment Summary

Federal Funds

The Pension Benefit Guaranty Corporation ("Corporation'') is authorized to make such expenditures, including financial assistance authorized by subtitle E of title IV of the Employee Retirement Income Security Act of 1974, within limits of funds and borrowing authority available to the Corporation, and in accord with law, and to make such contracts and commitments without regard to fiscal year limitations, as provided by 31 U.S.C. 9104, as may be necessary in carrying out the program, including associated administrative expenses, through September 30, [2010] 2011, for the Corporation: Provided, That none of the funds available to the Corporation for fiscal year [2010] 2011 shall be available for obligations for administrative expenses in excess of [$464,067,000] $466,301,000: Provided further, That to the extent that the number of new plan participants in plans terminated by the Corporation exceeds 100,000 in fiscal year [2010] 2011, an amount not to exceed an additional $9,200,000 shall be available through September 30, [2011] 2012 for obligation for administrative expenses for every 20,000 additional terminated participants: Provided further, That an additional $50,000 shall be made available through September 30, [2011] 2012, for obligation for investment management fees for every $25,000,000 in assets received by the Corporation as a result of new plan terminations or asset growth, after approval by the Office of Management and Budget and notification of the Committees on Appropriations of the House of Representatives and the Senate: Provided further, That obligations in excess of the amounts provided in this paragraph may be incurred for unforeseen and extraordinary pretermination expenses after approval by the Office of Management and Budget and notification of the Committees on Appropriations of the House of Representatives and the Senate. (Department of Labor Appropriations Act, 2010.)

Program and Financing (in millions of dollars)

This wholly-owned government corporation administers mandatory insurance programs to prevent loss of pension benefits under covered private, defined-benefit pension plans if single-employer plans terminate or if multiemployer plans are unable to pay benefits.

Single employer benefit payment.—The single-employer program protects about 33.6 million participants. Under this program, a company may voluntarily seek to terminate its plan, or Pension Benefit Guaranty Corporation (PBGC) may seek termination under certain circumstances. The PBGC must seek termination when a plan cannot pay current benefits. A plan that cannot pay all benefits may be ended by a "distress" termination, but only if the employer meets tests proving severe financial distress, for example, the liklihood that continuing the plan would force the company to shut down. If the terminated plan cannot pay at least the PBGC-guaranteed benefits, the PBGC uses its funds to ensure guaranteed benefits are paid.
In a "standard'' termination, plan assets must be sufficient to pay all benefits before the plan is allowed to end. That payment is in the form of an annuity purchased from an insurance company or a lump sum payment. After the payment is made, the PBGC guarantee ends.

Multi-employer financial assistance.—The multiemployer insurance program protects about 10.4 million participants. Multiemployer pension plans are maintained under collectively bargained agreements involving unrelated employers, generally in the same industry. If a PBGC-insured multiemployer plan is unable to pay guaranteed benefits when due, the PBGC will provide the plan with financial assistance to continue paying guaranteed benefits, ordinarily in the form of a loan to the plan.

Pension insurance activities.—Includes premium collections, premium investments, pre-trusteeship work, and pension insurance program protection activities.

Pension plan termination.—Includes all activities related to trusteeship; plan asset management, investment and accounting; and benefit administration services.

Operational support.—Includes the administrative, information technology infrastructure, and other shared program support for both PBGC's insurance and plan termination activities.

Financing.—The primary source of financing is annual premiums paid by sponsors of ongoing covered plans, which vary according to the plans' funding level. Other sources of financing include assets from terminated plans, investment income, and amounts due PBGC from the sponsors of terminating plans.

Operating results.—The following tables show the status of PBGC's trust funds and PBGC's operating results.

Balance Sheet (in millions of dollars)

Object Classification (in millions of dollars)

Employment Summary

Federal Funds

[For necessary expenses for the Employment Standards Administration, including reimbursement to State, Federal, and local agencies and their employees for inspection services rendered, $491,382,000, together with $2,124,000 which may be expended from the Special Fund in accordance with sections 39(c), 44(d), and 44(j) of the Longshore and Harbor Workers' Compensation Act: Provided, That the Secretary of Labor is authorized to establish and, in accordance with 31 U.S.C. 3302, collect and deposit in the Treasury fees for processing applications and issuing certificates under sections 11(d) and 14 of the Fair Labor Standards Act of 1938 and for processing applications and issuing registrations under title I of the Migrant and Seasonal Agricultural Worker Protection Act: Provided further, That funds identified in the table contained in the statement of the managers on the conference report accompanying this Act for Program Direction and Support may be allocated among the agencies included in this account and may be transferred to any other account within the Department of Labor for such purposes.Of the unobligated funds collected pursuant to section 286(v) of the Immigration and Nationality Act, $50,000,000 are rescinded as of September 30, 2010.] (Department of Labor Appropriations Act, 2010.)

Program and Financing (in millions of dollars)