Secretary Hilda L. Solis Unveils U.S. Department of Labor’s Budget for Fiscal Year 2010

Secretary of Labor Hilda L. Solis today, through a national online discussion with stakeholder groups, the general public and the news media, will outline the president’s fiscal year (FY) 2010 budget for the U.S. Department of Labor, which begins to restore worker protection programs and revitalize employment opportunities for the American workforce.

“The president’s budget launches new and innovative ways to promote economic recovery and the competitiveness of our nation’s workers,” said Secretary Solis. “At the same time, the budget reflects our effort to invest in what works and cut or reduce programs that do not. The budget is transparent, and we are accountable to the American public.”

The budget, for instance, ends the Work Incentive Grants program, saving $17 million. This demonstration program has accomplished its mission, and the lessons learned are being incorporated into other programs. Building on the best practices developed under the Work Incentive Grants, the budget boosts funding for the department’s Office of Disability Employment Policy to facilitate the employment and advancement of individuals with disabilities.

It is with this fiscally responsible approach that the Labor Department’s FY 2010 budget builds on the American Recovery and Reinvestment Act (Recovery Act), restoring worker protection programs; promoting an inclusive, green recovery; and ensuring accountability and transparency.

The budget requests $104.5 billion, with the majority to be used for unemployment insurance benefits for displaced workers and federal workers’ compensation. The discretionary request of $13.3 billion allocates $1.7 billion for worker protection programs, a 10 percent increase over the prior year’s budget.

Under this budget, the Labor Department expects to hire nearly 1,000 new employees, including about 670 investigators, restoring worker protection staffing to FY 2001 levels. For example, the FY 2010 budget asks for $564 million for the department’s Occupational Safety and Health Administration (OSHA), which is $51 million (10 percent) more than that agency received in FY 2009. With this funding, the Labor Department plans to hire 160 new enforcement staff, many of whom will be bilingual to communicate with staff in the changing workplace. Also, the department’s Wage and Hour Division will receive $228 million, an increase of $35 million from the prior year, including funding to hire 200 new investigators. With these increases, Labor’s worker protection agencies will be able to vigorously protect wages and working conditions of the 135 million workers in more than 7.3 million workplaces.

The Labor Department is receiving $38.3 billion under the Recovery Act to assist unemployed workers and provide more training and employment opportunities to seniors, the unemployed and underserved populations.

For employment and training programs, the budget provides $9 billion, including $50 million for green jobs training initiatives. The Department of Labor will use $500 million from the Recovery Act for competitive grants to train workers for green jobs.

Because community colleges and educational institutions are often the basis for successful careers, the Labor Department will use $135 million for the Career Pathways Innovation Fund, which will help people to advance in the workplace. Another $50 million will be used to test transitional job programs, which help individuals with severe employment barriers gain the skills and experience they need to find unsubsidized jobs. Finally, $114 million is requested for Youth Build, which gives low-income and at-risk youth the opportunity to obtain a high school diploma or GED and learn construction job skills, while serving their communities by building affordable housing.

For veterans, the budget provides $255 million (a six percent increase) to reach an additional 7,200 homeless veterans, particularly women veterans; provide green jobs training; and expand access to employment workshops for service members and their families who are transitioning to the civilian workforce.

The budget provides $12 million for evaluation of job training programs, a 68 percent increase, and provides $5 million for a new department-wide evaluation initiative. The additional funding will support rigorous evaluations to determine which programs and interventions work and inform the department’s policy, management and resource allocation decisions.

For more information on the president’s 2010 budget for the Department of Labor, visit http://www.dol.gov.
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