FY 2002 Annual Performance Plan
Table of Contents
1. Introduction
The 1913 Act that created the Department of Labor (DOL) stated that its purpose "... shall be to foster, promote and develop the welfare of the wage earners of the United States, to improve their working conditions, and to advance their opportunities for profitable employment." While this statement is as true today as it was 88 years ago, our vision has matured as the Department has addressed changing economies and a diversified workforce. Today, the Department must ensure that the 21st century workforce is prepared to face the 21st century economy with hope--by equipping all workers with the skills to reach their aspirations.
As we respond to the challenges of the changing economy, the Department's first responsibility will continue to be the protection of workers by enforcing the Nation's labor laws: * to ensure the safety of every workplace, * to guarantee an honest day's pay for an honest day's work, * to stop discrimination, * to protect workers from coercion and intimidation, and * to safeguard the pension of every American worker and retiree.
The Department will emphasize prevention and compliance assistance--to protect workers before they are harmed physically or economically. Consistent with the Department's commitment to enforcement, we will work together with employers on better prevention strategies, avoiding whenever possible the loss of life, health or economic well-being that fines and penalties can never fully redress.
This FY 2002 Annual Performance Plan is built upon the three strategic goals the Department established in 1997, goals which have supported the Department's efforts to unify around core mission responsibilities. DOL Strategic Goals | | | Goal 1. | A Prepared Workforce: | | Enhance opportunities for America's workforce | | | Goal 2. | A Secure Workforce: | | Promote the economic security of workers and families | | | Goal 3. | Quality Workplaces: | | Foster quality workplaces that are safe, healthy, and fair | |
Text Version
The Department will soon create a new Office of the 21st Century Workforce to bring focus to our initiatives to find solutions for our workers and for the economy as a whole to the challenges that lie ahead. The first responsibility of this new Office will be to hold a Summit on the 21st Century Workforce, where the Department will call on leaders from business, labor unions, government and elsewhere to address the structural changes that are affecting our workforce and our economy. The results of the Summit will shape the Department's vision for the future and the role of DOL in ensuring that the new century will bring opportunity and hope for all of America's workers. The Department will revise the FY 2002 Annual Performance Plan during the fall to include the results of the Summit on the 21st Century Workforce and the objectives of the new executive team in the planning process for FY 2002.
2. Overview of the DOL Strategic Plan
The Department of Labor's Strategic Plan for FY 1999-2004 outlines the mission, vision, departmental structure, three strategic goals, and attendant outcome and performance goals. The Plan facilitates increased coordination, and fosters greater cohesion within the Department. Through these strategic goals, DOL staff and the American public can see a direct link between the Department's purpose, its activities, and its vision for the future.
The Department began its formal strategic and performance planning process in 1997. A Strategic and Performance Plan Workgroup was established to develop the FY 1999 Performance Plan and revise the original FY 1997-2002 Strategic Plan to reflect the consolidation of strategic goals and to make a number of other enhancements. To shepherd and synchronize implementation activities and documents to comply with the Government Performance and Results Act of 1993 (GPRA), DOL then created a departmental GPRA staff, housed in the Office of Budget. Semi-annual Program Reviews with Agency executives were held to evaluate mid- and end-of-year progress towards current annual performance goals. In the summer of 1999, the DOL Strategic Plan was again revised, primarily to reflect the programs and objectives of the Workforce Investment Act (WIA), and this plan was finalized in September 2000, following the negotiation of WIA performance goals with the States. The current DOL Strategic Plan covering FY 1999-2004 provides a framework for the Department's FY 2002 Annual Performance Plan and a blueprint for the Department's major program initiatives through FY 2004.
A summary of the major elements addressed in the Strategic Plan are provided below. These elements provide the foundation for Departmental activities in the years ahead and a context for the FY 2002 Annual Performance Plan.
2.1 Mission
The Department of Labor fosters and promotes the welfare of the job seekers, wage earners, and retirees of the United States by improving their working conditions, advancing their opportunities for profitable employment, protecting their retirement and health care benefits, helping employers find workers, strengthening free collective bargaining, and tracking changes in employment, prices, and other national economic measurements. In carrying out this mission, the Department administers a variety of Federal labor laws including those that guarantee workers' rights to safe and healthful working conditions; a minimum hourly wage and overtime pay; freedom from employment discrimination; unemployment insurance; and other income support.
2.2 Vision
We will promote the economic well-being of workers and their families, help them share in the American dream through rising wages, pensions, health benefits and expanded economic opportunities, and foster safe and healthful workplaces that are free from discrimination.
2.3 DOL Strategic Goals
Through these strategic goals, DOL staff and the American public can see a direct link between the Department's mission and its activities:
A Prepared Workforce--Enhance opportunities for America's workforce
A Secure Workforce--Promote the economic security of workers and families
Quality Workplaces--Foster quality workplaces that are safe, healthy, and fair.
Associated with each of these goals are specific programs designed to implement the Department of Labor's core responsibilities. These programs are highlighted under the appropriate Strategic Goal in Section 4, FY 2002 Performance Goals, Strategies and Cross-Cutting Programs.
2.4 DOL Organization
The Department of Labor is organized into major program areas, each headed by an Assistant Secretary or Commissioner who administers the various statutes and programs for which the Department is responsible. These programs are carried out through a network of regional offices and a series of field, district, and area offices, as well as, in some cases, through local-level grantees and contractors. The agencies included in the Department's FY 2002 Performance Plan are as follows:
Employment and Training Administration (ETA)
Pension and Welfare Benefits Administration (PWBA)
Pension Benefit Guaranty Corporation (PBGC)
Employment Standards Administration (ESA)
Occupational Safety and Health Administration (OSHA)
Mine Safety and Health Administration (MSHA)
Bureau of Labor Statistics (BLS)
Office of the Solicitor (SOL)
Bureau of International Labor Affairs (ILAB)
Office of the Assistant Secretary for Administration and Management (OASAM)
Women's Bureau (WB)
Office of the Chief Financial Officer (OCFO)
Veterans' Employment and Training Service (VETS)
Office of the Inspector General (OIG)
Office of Disability Employment Policy (ODEP)
3. Strategic Goals and The FY 2002 Budget--A 21st Century Department of Labor
3.1 Introduction
The President and the new administration are determined to see that no worker is left behind in today's rapidly changing high-technology environment. In carrying this theme forward, the Department of Labor is committed to offering hope by giving all Americans the training and skills needed to succeed now and into the future. The Department of Labor's Fiscal Year (FY) 2002 budget request was developed with those outcomes in mind.
The FY 2002 budget reflects the amounts necessary for continued efforts to meet the difficult challenges posed by a changing economy and American workforce. This budget maintains the Department's commitment that all workers have the opportunity to find and hold jobs under reasonable working conditions, with good wages, reliable pensions, health benefits, and opportunity to improve their skills in the 21st Century Workplace.
In response to this commitment, the total request for the Department in FY 2002 is $44.4 billion in budget authority and 17,483 full-time equivalent (FTE). The request for discretionary programs is $11.3 billion in budget authority, which is $564 million below the FY 2001 level.
In this Annual Performance Plan, the Department has for the first time linked budget authority and outlays to both the strategic and outcome goals. The budget resources are displayed in tables in the introduction to each strategic and outcome goal discussion in Chapter 4 of the plan. Appendix B displays an overview of the linkage between the budget activities that support the Department's outcome goals, and Appendix C presents a cross-walk of Congressional Committees to strategic goals. The method for assigning full costs in terms of budget authority and outlays to outcome goals mirrors that used by the Office of the Chief Financial Officer in the allocation of costs to outcome goals in the Department's financial statement. While the financial statement ascribes costs at the Agency level, this plan uses the budget activity level as the unit of analysis for analyzing the deployment of their resources. Agencies estimated the proportion of their spending that contributed directly to the accomplishment of outcome goals for each of the four years covered by this plan. These factors were applied to the net budget authority and outlay figures contained in the President's Budget. Indirect costs for program support activities were added to agency budget authority and outlay figures based on usage estimates. As such, spending for the Departmental Management Program Direction and Support activity, the Office of the Assistant Secretary for Administration and Management and the Office of the Chief Financial Officer are scored against the accomplishment of the major outcome goals. Charges for centrally administered administrative services billed through the Working Capital Fund are included in the agency budget activity figures and are likewise scored against the outcome goals.
3.2 Budget Highlights
21st Century Workforce
With an eye toward the 21st Century Workforce, the Department's FY 2002 budget provides over $5 billion to support youth and adult training activities. To succeed in the 21st century, we must be prepared to adapt to changes in our economy--in how we work, where we work, and how we balance our professional and family lives. The Department of Labor cannot and must not simply react to changes. We must anticipate--thus equipping every worker to have as fulfilling and financially-rewarding a career as they aspire to have.
The Department will continue to use the Workforce Investment Act as the primary vehicle to guide our investment in America's Workforce--but new ideas are needed, along with fresh approaches and new partnerships. Many jobs go unfilled because employers can't find workers with the necessary skills and training. Another challenge will be to make sure that an adequate workforce is available to meet the demands of a continually growing economy. To face these challenges, the Department will create a new Office of the 21st Century Workforce to bring focus and solutions to the challenges that face America's workers. Later this Spring, the Department will convene a group of leaders from business, labor unions, and government to address the structural changes that are affecting the workforce and economy. The Office of the 21st Century Workforce will assist those Americans who have been left behind--particularly those who have been laid-off from jobs due to technological changes or foreign competition.
Office of Disability Employment Policy
The Administration is also committed to assisting those individuals who have been denied the opportunity and right to have a productive, meaningful work life because of a disability. The new Office of Disability Employment Policy will carry out the President's New Freedom Initiative, providing technology and other tools to Americans with disabilities, so that they can enter the economic mainstream. An additional $20.3 million and 10 FTE have been added in FY 2002 for this purpose. The 2002 budget also continues to fund work incentive grants--$20 million annually--to help make One-Stop Centers fully accessible to people with disabilities. It is not only important to give people with disabilities training and assistive technology-- but also the hope and the ability to become more active citizens in their communities.
Worker Protection
Labor laws will be enforced--and workers will be protected--to ensure the safety of every workplace, to guarantee an honest day's pay for an honest day's work, to stop discrimination, to protect workers from coercion and intimidation, and to protect every worker's pension. The laws will be enforced using common sense--not just a reflexive, one-size-fits-all approach. The Department's 2002 budget maintains labor law enforcement agencies at FY 2001 levels and the Department will put more emphasis than ever before on prevention and compliance assistance--not just after-the-fact enforcement. The Department will continue to explore new ways to use technology and related interventions to improve and expand the reach of its compliance assistance.
Redirected Resources
The Department's FY 2002 budget reallocates resources from lower-priority activities to areas where there are demonstrated needs. The Department's budget supports a sustained effort in core job training programs. Where training resources are redirected, State and local governments and communities will be able to continue to serve participants based upon the availability of funding already in the system.
In the area of international labor activities, funding was provided at FY 2000 levels and the Department remains committed to the fundamentals of removing children from abusive and dangerous working environments. The FY 2002 budget also continues both multi-lateral assistance through the International Labor Organization (ILO) and bilateral assistance with the Department's agencies to assist developing countries as they implement and administer labor standards and social safety net programs. The budget also continues the new Global HIV/AIDS Workplace initiative to provide multi-cultural assistance through the ILO to support health education and HIV prevention in the workplace.
Labor Statistics
An increase of $8.1 million and 40 FTE is requested for the Bureau of Labor Statistics to fundamentally change the manner in which the Consumer Price Index (CPI) is revised and updated. Historically, major revisions of the CPI have been made every ten years. Beginning in FY 2002, expenditure weights in the CPI will be updated every two years--the first step toward revising and updating the CPI on a continuous basis to improve the accuracy and timeliness of the index.
Information Technology
A total of $80 million--an increase of $43 million over FY 2001--is requested for the centralized Information Technology (IT) account to fund the Department's IT investments within the following four crosscutting areas: $40.5 million for Enterprise Architecture; $10.6 million for a Common Office Automation Suite; $19.7 million for Security and Privacy; and $9.1 million for Common Administrative Systems.
With the establishment of the centralized IT investment fund, the Chief Information Officer (CIO) will ensure, through the IT Capital Investment Management process, accountability for the management of the Department's IT resources. The existence of the centralized IT fund has increased the level of awareness throughout the Department of the important role information technology plays to provide vital services to its customers. The IT Capital Investment Management process and centralized IT investment fund provides the management tools necessary to implement the requirements outlined in the Clinger-Cohen Act, the Paperwork Reduction Act, the Government Paperwork Elimination Act, the Computer Security Act, the Government Performance and Results Act, and the President's policy on the management of information resources and technology within the Department. These investments will continue to enable the Department to implement sound IT investment strategies to eliminate interoperability and incompatibility issues and to improve overall mission-critical program effectiveness.
Federal Employees' Compensation Act--Administrative Surcharge
The FY 2002 Budget proposes the establishment of an administrative surcharge on the amount billed to other Federal agencies for workers' compensation benefits. The Secretary of Labor will use this surcharge to finance the Department's administrative expenses for the Federal Workers' Compensation program including the cost related to management, operations, and legal support. The program surcharge provides $80 million in offsetting collections for budget authority for this program. Most importantly, the surcharge will ensure that each Federal agency contributes an equitable share of the administrative cost of managing the program and boost the incentive of Federal agencies to improve the safety of their workplaces.
Program Accountability of Grants
The Department is requesting a total of $1.8 million in FY 2002 to accelerate efforts to modernize grants management and accountability systems to improve overall administration of funds. The Employment and Training Administration will require $1.5 million to improve grants monitoring and technical assistance by providing a specialized unit of staff to oversee and assist "at risk" grantees. Also, emphasis will be placed on developing analytical tools and specified reports and linkages with the Department's centralized accounting system. The Office of the Chief Financial Officer will use the balance of these funds to oversee developmental efforts and to ensure overall compliance with the Federal Financial Management Improvement Act.
3.3 Summary
The Department of Labor is prepared for the 21st Century. Not only will it meet its first responsibility to protect workers by enforcing the Nation's labor laws, but it will increase its focus on common-sense approaches to prevention and compliance assistance. The Department will seek out new solutions to the challenges that face American workers, assist those who have been left behind, and provide hope to all who yearn for a better life.
4. FY 2002 Performance Goals, Strategies and Cross-Cutting Programs
This FY 2002 Annual Performance Plan establishes performance goals that will lead to the accomplishment of DOL's strategic goals. It also describes the means and strategies DOL will use to reach its goals. Consistent with guidance from the Office of Management and Budget (OMB) and the General Accounting Office (GAO), DOL has consolidated or aggregated many of its activities into logical clusters focused around the accomplishment of its strategic goals. For example, the third strategic goal, Quality Workplaces, integrates the outcomes of OSHA's and MSHA's performance goals to reduce workplace injuries and illnesses. In other cases, only one agency within the Department may contribute to a specific outcome goal.
Under the Workforce Investment Act, the performance indicators stipulated in the Act have been and continue to be developed through a process of negotiation between the States and the Department of Labor. The new Workforce Investment System has led to a retooling of the Employment and Training Administration's (ETA) performance goals. ETA has consulted with stakeholders concerning performance and accountability issues and worked in partnership to develop revised performance goals for Program Year 2002. The national performance goals for the WIA performance indicators represent an amalgamation of the goals negotiated with the States.
This section presents DOL's FY 2002 performance goals under each strategic and outcome goal. Following the listing of performance goals is a summary of the means and strategies that will be used by DOL to achieve the outcome and performance goals. Related cross-cutting programs and issues follow the strategies. Appendix A displays individual matrices for each performance goal that include the following information:
Indicator--The measures that will be used to assess progress towards performance goal accomplishment.