Special Federal Budget Issue: Department of Labor

The Department of Labor's (DOL) discretionary budget request of $11.5 billion for FY 2006 is 4.4 percent less than the FY 2005 appropriation. The agency's payroll, however, would increase by 169 full-time equivalent positions, according to the budget overview.

The Employment and Training Administration (ETA) FY06 budget request of $6.36 billion reflects a 5.4 percent decrease from the FY05 appropriation. Highlights of ETA include:

• High Growth Job Training Grant Program - $5.8 million (new initiative) to prepare workers to take advantage of new and increasing job opportunities in high growth or high demand and economically vital industries and sectors of the economy. The foundation of this initiative is built on partnerships that include the public workforce system, business and industry, education and training providers, and economic development.
• Community College Initiative - $250 million (no change) to provide community-based job training grants, an employer-focused competitive grant program for job training at community and technical colleges. The request is expected to result in training and the subsequent or enhanced employment for up to 100,000 individuals.

Four DOL programs would be consolidated into a proposed $3.91 billion WIA Plus Consolidated Grant Program. The budget overview states that the new program includes formula grants and a National Reserve and will give states and the Secretary of Labor greater ability to target resources where needed, facilitate coordination, and eliminate duplication in the provision of services to adults, dislocated workers, and youth. The Administration tried unsuccessfully in FY05 to create a unified grant program by consolidating employment and training programs serving adults, including the WIA Adult and Dislocated Worker programs and Employment Service state grants. The FY06 request adds the Youth Program and additional Employment Service Grants. The FY06 consolidated program is at least $61.5 million less than the individual programs received in FY05.