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, and the Workforce Innovation Fund, as established by this Act; [$3,925,475,000]$3,626,947,000 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]the Workforce Innovation Fund, as established by this Act, [$3,178,031,000]$2,959,043,000 as follows:

(A) [$906,884,000]$860,527,000 for adult employment and training activities, of which [not more than 5]8 percent, to remain available until September 30, 2013, 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]to the Secretary for the Workforce Innovation Fund, and of which [$194,884,000]$148,527,000 shall be available for the period July 1, [2011]2012, through June 30, [2012]2013, and of which $712,000,000 shall be available for the period October 1, [2011]2012 through June 30, [2012]2013;

(B) [$1,025,000,000]$923,913,000 for youth activities, which shall be available for the period April 1, [2011]2012 through June 30, [2012]2013, and of which [not more than 15]8 percent, to remain available until September 30, 2013, 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]available to the Secretary for the Workforce Innovation Fund[: 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) [$1,246,147,000]$1,174,603,000 for dislocated worker employment and training activities, of which [not more than 5]8 percent, to remain available until September 30, 2013, 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]available to the Secretary for the Workforce Innovation Fund, and of which [$386,147,000]$314,603,000 shall be available for the period July 1, [2011]2012 through June 30, [2012]2013, and of which $860,000,000 shall be available for the period October 1, [2011]2012 through June 30, [2012]2013;

Provided, That notwithstanding the transfer limitation under section 133(b)(4) of the WIA, up to 30 percent of 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]notwithstanding section 128(a)(1) of the WIA, the amount available to the Governor for statewide workforce investment activities shall not exceed 7.5 percent of the amount allotted to the State from each of the appropriations under the preceding subparagraphs;

(2) for federally administered programs, [$492,538,000]$485,938,000 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, [2011]2012 through June 30, [2012]2013, and of which $200,000,000 shall be available for the period October 1, [2011]2012 through June 30, [2012]2013: 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) [$55,000,000]$54,158,000 for Native American programs, which shall be available for the period July 1, [2011]2012 through June 30, [2012]2013;

(C) [$87,378,000]$86,620,000 for migrant and seasonal farmworker programs under section 167 of the WIA, including [$82,135,320]$80,710,000 for formula grants (of which not less than 70 percent shall be for employment and training services), [$4,368,900]$5,400,000 for migrant and seasonal housing (of which not less than 70 percent shall be for permanent housing), and [$873,780]$510,000 for other discretionary purposes, which shall be available for the period July 1, [2011]2012 through June 30, [2012]2013: 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, [2011]2012 through June 30, [2012]2013; and

(E) [$120,000,000]$115,000,000 for YouthBuild activities as described in section 173A of the WIA, which shall be available for the period April 1, [2011]2012 through June 30, [2012]2013;

(3) for national activities, [$254,906,000]$181,966,000, as follows:

(A) [$46,556,000]$6,616,000 in addition to any amounts available under paragraph (1) for Pilots, Demonstrations, and Research, which shall be available for the period April 1, [2011]2012 through June 30, [2012]2013[, of which $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];

(B) [$98,000,000]$90,000,000 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, [2011]2012 through June 30, [2012]2013, notwithstanding the requirements of section 171(b)(2)(B) or 171(c)(4)(D) of the WIA: Provided, That of this amount, $20,000,000 shall be for competitive grants to national and regional intermediaries for activities that prepare young ex-offenders and school dropouts for employment, with a priority for projects serving high-crime, high-poverty areas;

(C) $11,600,000 for Evaluation, which shall be available for the period July 1, [2011]2012 through June 30, [2012]2013;

(D) [$85,000,000]$60,000,000 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, [2011]2012 through June 30, [2012]2013, and which shall not be subject to the requirements of section 171(b)(2)(B) or 171(c)(4)(D); and

(E) $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, [2011]2012 through June 30, [2012]2013, and which shall not be subject to the requirements of section 171(c)(4)(D). Note.—A full-year 2011 appropriation for this account was not enacted at the time the budget was prepared; therefore, this account is operating under a continuing resolution (P.L. 111–242, as amended). The amounts included for 2011 reflect the annualized level provided by the continuing resolution.

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.

Dislocated worker employment and training activities._Grants to provide reemployment services and retraining assistance to individuals dislocated from their employment.

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.

Workforce Innovation Fund._Contributions of $69 million from Adult activities, $94 million from Dislocated Worker activities, and $74 million from Youth activities will help support a $379 million Workforce Innovation Fund for competitive grants to test innovative strategies and replicate evidence-based practices in the workforce system. The Fund will support cross-program collaboration and bold systemic reforms to improve education and employment outcomes for participants. A portion of these funds may be used for Pay for Success bonds to engage social investors, the Federal government, and a State or local community to collaboratively finance effective interventions. The Departments of Labor and Education will jointly administer the Fund, which is described in the Title V General Provisions.

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 evaluation resources and program support for WIA activities and nationally administered programs for segments of the population that have special disadvantages 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; [$1,707,363,000] $1,699,747,000, plus reimbursements, as follows:

(1) [$1,572,253,000] $1,589,817,000 for Job Corps Operations, of which [$981,253,000] $998,817,000 shall be available for obligation for the period July 1, [2011]2012 through June 30, [2012]2013 and of which $591,000,000 shall be available for obligation for the period October 1, [2011]2012 through June 30, [2012]2013;

(2) [$105,000,000] $78,500,000 for construction, rehabilitation and acquisition of Job Corps Centers, of which [$5,000,000] $3,500,000 shall be available for the period July 1, [2011]2012 through June 30, [2014]2015 and [$100,000,000] $75,000,000 shall be available for the period October 1, [2011]2012 through June 30, [2014]2015: 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]2013; and

(3) [$30,110,000] $31,430,000 for necessary expenses of the Office of Job Corps which shall be available for obligation for the period October 1, [2010]2011 through September 30, [2011]2012:

Provided, That no funds from any other appropriation shall be used to provide meal services at or for Job Corps centers.

Of the discretionary funds made available under this heading for the construction, rehabilitation, and acquisition of Job Corps Centers for the period October 1, 2011 through June 30, 2014, $25,000,000 are hereby permanently cancelled. Note.—A full-year 2011 appropriation for this account was not enacted at the time the budget was prepared; therefore, this account is operating under a continuing resolution (P.L. 111–242, as amended). The amounts included for 2011 reflect the annualized level provided by the continuing resolution.

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 125 centers in 48 states, the District of Columbia and the Commonwealth of Puerto Rico. A new center in Florida is scheduled to open in July 2011 , 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 97 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 2012 Budget continues 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 , $600,425,000, which shall be available for the period July 1, 2011 through June 30, 2012.] Note.—A full-year 2011 appropriation for this account was not enacted at the time the budget was prepared; therefore, this account is operating under a continuing resolution (P.L. 111–242, as amended). The amounts included for 2011 reflect the annualized level provided by the continuing resolution.

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 for unemployed low-income individuals, ages 55 and older. 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 2012 Budget proposes transferring SCSEP to the Department of Health and Human Services to improve coordination between SCSEP and other senior-serving programs administered by the Administration on Aging and to help the program better fulfill its dual goals of fostering individual economic self-sufficiency and promoting useful opportunities in community service.

Program and Financing (in millions of dollars)

The Trade Adjustment Assistance (TAA) Community College and Career Training program is authorized by the Health Care and Education Reconciliation Act of 2010 (P.L. 111–152), which provides $500 million annually in fiscal years 2011–2014 for competitive grants to eligible institutions of higher education. The program aims to improve education and employment outcomes for community college and other students, helping more Americans prepare to succeed in growing occupations. Funding will allow expansion and improvement of education and training programs that can be completed in 2 years or less, result in skills and credentials necessary for high-wage, in-demand jobs, and are suited for workers who are eligible for training under the TAA for Workers program. Grants will support institutions that use evidence to design program strategies, are committed to using data for continuous improvement, and facilitate evaluation that can build evidence about effective practices. The Department is implementing this program in cooperation with the Department of Education.

For payments during fiscal year [2011] 2012 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, [$1,938,200,000] $1,100,100,000, together with such amounts as may be necessary to be charged to the subsequent appropriation for payments for any period subsequent to September 15, [2011] 2012. Note.—A full-year 2011 appropriation for this account was not enacted at the time the budget was prepared; therefore, this account is operating under a continuing resolution (P.L. 111–242, as amended). The amounts included for 2011 reflect the annualized level provided by the continuing resolution.

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, 2010, under the Trade and Globalization Adjustment Assistance Act of 2009 (TGAAA) and extended through February 12, 2011 under the Omnibus Trade Act of 2010. Under the TGAAA, 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 TGAAA). 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. Applications filed on or after February 13, 2011, will be reviewed and administered under prior law, as if the amendments made under the TGAAA had never been enacted.

Object Classification (in millions of dollars)

Program and Financing (in millions of dollars)

The Administration proposes legislation 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 sunset this expanded coverage for petitions filed after December 31, 2010. Upon sunset, the TAA program reverts to the application of the prior TAA law, which the Recovery Act extended through December 31, 2011. The Omnibus Trade Act of 2010 (Public Law 111–344) extended the Recovery Act provisions for petitions filed prior to February 13, 2011, and extended the application of prior TAA law through February 12, 2012.

For authorized administrative expenses, [$86,403,000] $147,584,000, together with not to exceed [$4,293,924,000] $3,994,473,000 which may be expended from the Employment Security Administration Account in the Unemployment Trust Fund ("the Trust Fund''), of which:

(1) [$3,515,079,000] $3,215,610,000 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] $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, [2011]2012, except that funds used for automation acquisitions or for competitive grants to be awarded to States to address worker misclassification shall be available for obligation by the States through September 30, [2013]2014, and funds used for unemployment insurance workloads experienced by the States through September 30, [2011]2012, shall be available for Federal obligation through December 31, [2011]2012;

(2) [$11,310,000] $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] $680,893,000 from the Trust Fund, together with [$22,683,000] $83,864,000 from the General Fund of the Treasury, of which 8 percent, to remain available until September 30, 2013, shall be available to the Secretary for the Workforce Innovation Fund, as established by this Act, and of which $703,576,000 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, [2011]2012 through June 30, [2012]2013;

(4) [$20,994,000] $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] $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) [$65,648,000] $65,666,000 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 [$50,519,000] $50,537,000 shall be available for the Federal administration of such activities, and [$15,129,000] $15,129,000 shall be available for grants to States for the administration of such activities; and

(6) [$63,720,000] $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, [2011]2012 through June 30, [2012]2013:

Provided, That to the extent that the Average Weekly Insured Unemployment ("AWIU'') for fiscal year [2011]2012 is projected by the Department of Labor to exceed [6,051,000] 4,832,000, 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, [$55,000,000] $60,000,000 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. Note.—A full-year 2011 appropriation for this account was not enacted at the time the budget was prepared; therefore, this account is operating under a continuing resolution (P.L. 111–242, as amended). The amounts included for 2011 reflect the annualized level provided by the continuing resolution.

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 $60 million requested for reemployment and eligibility assessments is estimated to provide benefit savings of $237 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.

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

Workforce Innovation Fund._The SUIESO account will contribute $61 million to a $379 million Workforce Innovation Fund for competitive grants to test innovative strategies and replicate evidence-based practices in the workforce system. The fund will support cross-program collaboration to improve education and employment outcomes for participants. The Departments of Labor and Education will jointly administer the fund, which is described in more detail in the Title V General Provisions.

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._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)

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 and expanded and extended several times, most recently in P.L. 111–312). 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)

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) and subsequently extended. This program paid a supplement of $25 on every week of unemployment compensation. It was last extended in Public Law 111–157 and paid benefits through its December 7, 2010, phaseout period.

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, [2012] 2013. Note.—A full-year 2011 appropriation for this account was not enacted at the time the budget was prepared; therefore, this account is operating under a continuing resolution (P.L. 111–242, as amended). The amounts included for 2011 reflect the annualized level provided by the continuing resolution.

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 has provided repayable advances to the Black Lung Disability Trust Fund (BLDTF) whenever its balances proved insufficient to make payments from that account. The BLDTF now has authority to borrow directly from the Treasury under the trust fund debt restructuring provisions of Public Law 110–343. 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 .

Advances were needed for the FUA, EUCA, and FECA accounts in fiscal year 2010 and are projected to continue. Detail on the nonrepayable advances to FECA is provided above; detail on the repayable advances is shown separately in the UTF account.

To address the potential need for significant, and somewhat unpredictable, advances to various accounts, Congress appropriates such sums as necessary for advances to all of the potential recipient accounts. The fiscal year 2012 request continues this authority.

For expenses of administering employment and training programs, [$104,904,000]$106,533,000, together with not to exceed [$57,138,000]$53,349,000, which may be expended from the Employment Security Administration Account in the Unemployment Trust Fund. Note.—A full-year 2011 appropriation for this account was not enacted at the time the budget was prepared; therefore, this account is operating under a continuing resolution (P.L. 111–242, as amended). The amounts included for 2011 reflect the annualized level provided by the continuing resolution.

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] $23,000,000, of which the Secretary may reserve not more than 1 percent for administration related to such grants. Note.—A full-year 2011 appropriation for this account was not enacted at the time the budget was prepared; therefore, this account is operating under a continuing resolution (P.L. 111–242, as amended). The amounts included for 2011 reflect the annualized level provided by the continuing resolution.

Program and Financing (in millions of dollars)

The 2012 Budget requests $23 million for the State paid leave fund in the Department of Labor to support competitive grants to 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. The remaining funds will be used for grants and for technical assistance.

Employment Summary

Special and Trust Fund Receipts (in millions of dollars)

Program and Financing (in millions of dollars)

The 2012 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. Upon enactment of the fees, requests for funding in the Foreign Labor Certification administration account would be reviewed and adjusted.

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 (UTF). All State and Federal unemployment tax receipts are deposited into the UTF, and invested in Government securities until needed for benefit payments or administrative expenses. State payroll taxes pay for all regular State unemployment benefits. The Federal unemployment tax (FUTA) 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. In addition, the Federal tax pays for certain extended benefit payments. 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 FUTA payroll tax, which are also paid out of the UTF. The American Recovery and Reinvestment Act (Public Law 111–5), and subsequent legislation, has temporarily made EB 100 percent federally financed. Temporary Federal extended benefit programs, including the current Emergency Unemployment Compensation program, are also funded from the Unemployment Trust Fund, either by the Federal tax or by reimbursement from Federal general revenues. The UTF also provides repayable advances (loans) to the States when the balances in their individual State accounts are insufficient to pay benefits. Federal accounts in the UTF may receive repayable advances from the general fund when they have insufficient balances to make advances to States or to pay the Federal share of extended unemployment benefits.

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.

Legislative proposal to strengthen the unemployment insurance safety net._The economic downturn has severely tested the adequacy of States' unemployment insurance (UI) systems, forcing the majority of States to borrow to continue paying benefits. These debts are now being repaid through additional taxes on employers, which undermine much-needed job creation. To provide short-term relief to employers in these States, the 2012 Budget will propose a suspension of interest on State UI borrowing in 2011 and 2012 along with a suspension of the FUTA credit reduction, which is an automatic debt repayment mechanism. To address the need for States to return their unemployment trust funds to solvency, the Budget will also propose to increase the FUTA taxable wage base to $15,000 starting in 2014, to index it, and to reduce the FUTA tax rate. States with lower wage bases will need to adjust their UI tax structures. This package will encourage States to put their UI systems on a firmer financial footing for the future, while preventing unnecessary burden on employers in the short term as the economy recovers.

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 Budget includes two legislative proposals for later transmittal that affect spending from the Unemployment Trust Fund.

One proposal will create incentives for States to expand use of the Short-Time Compensation (STC) program. The STC program, also known as work sharing, promotes job retention and prevents workers from being laid off. Work sharing is a voluntary employer program designed to help employers maintain their staff by reducing the weekly hours of their employees, instead of temporarily laying off workers, when the employer is faced with a temporary slowdown in business. Workers with reduced hours under an approved STC plan receive a partial unemployment check to supplement the reduced paycheck. The Administration's proposal will provide temporary Federal financing of STC benefits for those States that have an STC law that meets certain guidelines. It will also create a temporary Federal program that will be available in other States and provide implementation funds for States to operate the program and conduct outreach to employers to expand use of STC.

The other legislative proposal is a multi-part legislative initiative to strengthen the financial integrity of the Unemployment Insurance (UI) system and to encourage the early reemployment of UI beneficiaries. The proposal builds upon the enactment of two key components of last year's UI integrity proposal that expanded collection of delinquent UI overpayments and employer taxes through garnishment of Federal tax refunds and improved the accuracy of hiring data in the National Directory of New Hires. The Budget proposal will boost States' ability to recover benefit overpayments and deter tax evasion schemes by permitting them to use a portion of recovered funds to expand enforcement efforts in these areas, including identification of misclassified employees. In addition, the proposal would require States to impose a monetary penalty on UI benefits fraud, which would be used to reduce overpayments, and to prohibit the non-charging of benefits to employers' UI accounts if they are found to be at fault when their actions lead to overpayments. The proposal would also improve the utility and accuracy of hiring data in the National Directory of New Hires by requiring employers to report rehires of employees who have been laid off. These efforts to strengthen the financial integrity of the UI system and encourage early reemployment of UI beneficiaries will keep State UI taxes down and improve the solvency of the State trust funds.

Object Classification (in millions of dollars)

Federal Funds

For necessary expenses for the Employee Benefits Security Administration, [$161,995,000] $197,528,000. Note.—A full-year 2011 appropriation for this account was not enacted at the time the budget was prepared; therefore, this account is operating under a continuing resolution (P.L. 111–242, as amended). The amounts included for 2011 reflect the annualized level provided by the continuing resolution.

Program and Financing (in millions of dollars)

Enforcement and participant assistance._Conducts criminal and civil investigations to ensure compliance with the fiduciary provisions of the Employee Retirement Income Security Act (ERISA) and the Federal Employees' Retirement System Act. Assures compliance with applicable reporting, disclosure, and other requirements of ERISA as well as accounting, auditing, and actuarial standards. Discloses required plan filings to the public. Provides information, technical, and compliance assistance to benefit plan professionals and participants as well as to the general public.

Policy and compliance assistance._Conducts policy, research, and legislative analyses on pension, health, and other employee benefit issues. Provides compliance assistance to employers and plan officials. Develops 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 support of the Department's ERISA responsibilities. Provides analytical and administrative support for the financial, human capital management, and other administrative functions. Manages the Agency's technical program training and employee development activities.

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, [2011]2012, for the Corporation: Provided, That none of the funds available to the Corporation for fiscal year [2011]2012 shall be available for obligations for administrative expenses in excess of [$466,301,000] $476,901,000: 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 [2011]2012, an amount not to exceed an additional $9,200,000 shall be available through September 30, [2012]2013 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, [2012]2013, 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 or extraordinary multiemployer program-related 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. Note.—A full-year 2011 appropriation for this account was not enacted at the time the budget was prepared; therefore, this account is operating under a continuing resolution (P.L. 111–242, as amended). The amounts included for 2011 reflect the annualized level provided by the continuing resolution.

Program and Financing (in millions of dollars)

This wholly-owned government corporation established under the Employee Retirement Income Security Act of 1974, as amended, works to preserve defined benefit pension plans and administers mandatory insurance programs to prevent loss of pension benefits under private, defined benefit pension plans. PBGC currently protects the retirement of 44 million Americans in more than 27,500 ongoing pension plans.

The 2012 Budget proposes to give the PBGC Board the authority to adjust premiums and directs them to take into account the risks that different sponsors pose to their retirees and PBGC. This proposal will both encourage companies to fully fund their pension benefits and ensure the agency's continued financial soundness. The Budget calls for giving the PBGC Board premium-setting authority beginning in 2014, and requires a gradual phase-in of any increases.

Plan Preservation Efforts._PBGC tries, first, to preserve plans and keep pension promises in the hands of the employers who make them. When companies undertake major transactions that might threaten their ability to pay pensions, PBGC negotiates protections for their pension plans. Last year PBGC negotiated with dozens of companies, both in bankruptcy and otherwise, to preserve their plans. These efforts played an important part in helping as many as 250,000 people who would have lost their pensions to keep them.
Similarly, when major layoffs or plant closures threaten a plan's viability, PBGC steps in to negotiate protection for the plan. In FY 2010, PBGC secured an additional $250 million for participants in 20 companies' pension plans. Since 2006, PBGC has negotiated with sponsors for added protection totaling more than $644 million, strengthening the pensions of more than 76,000 workers and retirees.

Stepping in to Insure Pensions When Plans Fail._When plans do fail, PBGC steps in to ensure that a portion of benefits continue to be paid. Over the years, PBGC has become responsible for almost 1.5 million people in 4,200 failed plans. Every month, on average, PBGC pays $467 million for the pensions of 801,000 retirees. PBGC is also responsible for future payments to almost 700,000 who have not yet retired. During FY 2010, PBGC assumed responsibility for 109,000 additional workers and retirees in 172 failed plans, and made 8.5 million payments totaling $5.6 billion.

Budget activities:

Single-employer benefit payments._The single-employer program protects about 33.8 million participants. Under this program, a company may voluntarily seek to terminate its plan, or PBGC may seek termination. 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, such as proving that continuing the plan would force the company to go out of business. If a terminated plan cannot pay at least the PBGC-guaranteed level of benefits, PBGC uses its funds to ensure that guaranteed benefits are paid. A sponsor may terminate a plan in a "standard'' termination only if plan assets are sufficient to pay all benefits. In a standard termination, the sponsor closes out the plan by purchasing annuities from an insurance company or by paying benefits in a lump sum. After a standard termination, the PBGC guarantee ends.

Multiemployer 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 of 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, in the form of a loan to the plan.

Pension insurance activities._This part of the administrative budget includes premium collections, purchase of U.S. Treasury securities using premium receipts, pre-trusteeship work, efforts to preserve pension plans, recovery of assets from former plan sponsors, and pension insurance program protection activities.

Pension plan termination._ This part of the administrative budget includes all activities related to trusteeship; plan asset management, investment and accounting; as well as benefit payments and administration services.

Operational support._This part of the administrative budget includes the administrative, information technology infrastructure, and other shared program support for both PBGC's insurance and plan termination activities.

Financing._The primary sources of financing are investment income, insurance premiums paid by sponsors of ongoing covered plans, plan assets from failed plans, and recoveries from sponsors of failed plans. When an underfunded single-employer pension plan is terminated, PBGC takes over the assets of those plans. In FY 2010, PBGC assumed $1.8 billion in assets from failed plans, and recovered additional assets of $246 million from plan sponsors to help pay for benefits.

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

Program and Financing (in millions of dollars)