MISSOURI DEPARTMENT OF LABOR AND INDUSTRIAL RELATIONS 421 EAST DUNKLIN STREET P.O. Box 504 LAWRENCE G. REBMAN JEFFERSON CITY, MO 65102-0504 ACTING DEPARTMENT DIRECTOR JEREMIAH W. (JAY) NIXON PHONE: 573·751·9691 FAX: 573-751-4135 PErER LYSKOWSKI GOVERNOR www.dolir.mo.gov E-mail: [email protected] DEPUTY DIRECTOR January 30, 2009 The Honorable Jeremiah W. (Jay) Nixon Governor of Missouri State Capitol, Room 218 Jefferson City, MO 65101 Dear Governor Nixon: I am pleased to submit the proposed fiscal year 2010 budget for the Missouri Department of Labor and Industrial Relations. As identified in the Department's Vision and Mission, it will remain dedicated to promoting and protecting industry and labor with the vision of businesses and employees succeeding together in safe and healthy workplaces free from unlawful discrimination. We look forward to working with you in administering programs that encompass your principles of governing. Especially: That the State should be a fiscally responsible, effective government that does its business in public and for the public. This budget represents the Department's preliminary steps toward administering our programs while implementing these principles. Listed below are our highlights from the FY 2010 budget request: I. Voluntary Core Reductions and Core Adjustments The Department has reviewed its appropriation needs and has submitted a core budget request with reductions totaling $697,727. These voluntary reductions are summarized in the following table: Divof Employment Security War on Terror Benefit ram Relay Missouri: 1-800·735·2966 (TDD) 1-800·735·2466 (Voice) In addition, after a review of core resources and departmental operations, core reallocations were made in and between the various budgeting organizations. The core reallocations allow the Department to comply with its federal cost allocation plans and reallocate appropriation authority to needed areas. II. Core Transfers Out to the Office of Administration In cooperation with OA Information Technology Service Division (ITSD), the Department is embarking on a multi-year Department-wide information technology modernization effort. The Department has agreed to provide the FTES and appropriation authority for the ITSD project managers that will be coordinating this effort. The core transfers out are listed below: Department Wide - IT Personal Services Workers' Compensation $56,650 Consolidation Admin Fund Special Employment Security $56,650 Fund Div of Workers' Comp - Personal Services Workers' Compensation $226,600 Administration Admin Fund Divof Employment Security - Personal Services Unemployment $226,600 Admin Compensation Admin Federal Fund The FTES and appropriation authority will be restored to the Department upon completion of the computer modernization project. III. DOllR Administrative Fund Transfers for OA Services The Department has asked the OA ITSD to core reallocate all employees providing services to the Department and paid from the Unemployment Insurance and Workers' Compensation programs to be paid from the DOLI R Administrative Fund. Additional transfers, totaling $1,104,731, will need to be transferred into the DOLIR Administrative Fund from the Workers' Compensation Administrative Fund and the Unemployment Compensation Administration Fund to pay these salaries and related fringe benefits. This process will allow the OA ITSD to reassign staff to various Department IT projects with the Department drawing upon the appropriate funding sources using the transfer appropriations. Decision Item Ranked: 5 IV. Open-ended Appropriations and Related Increases The Department's FY 2010 appropriations include open-ended appropriations for the Divisions of Labor Standards, Workers' Compensation and Employment Security; the Director and Staff and the Missouri Commission on Human Rights. The Department is requesting open-ended appropriations for its federal funds, allowing it to expend all federal funds which might become available, including any potential federal stimulus funds. The Department is also requesting open-ended appropriations for its benefit payment appropriations to assure uninterrupted payments to claimants. Based on the actuarial study received by the Department in July 2007, the Department is requesting an $18,453,281 increase to the Second Injury Benefit appropriation, which reflects the amount that the actuarially-projected benefit payments exceed the current appropriation. Decision Items Ranked: 6 and 7 v. General Structure Adjustment. Citizens' Commission Pay Plans and Related Transfers The Governor has recommended a three percent General Structure Adjustment for all state employees excluding elected officials, the General Assembly and judges. The Department's Total request is $1,138,388. There are also related transfer increases into the DOLIR Administrative Fund to cover the salary increases and related employee fringe benefits. In addition, the Citizens' Commission on Compensation of Elected Officials has recommended salary increases for elected officials, the General Assembly and judges. Certain statutory employees in the Division of Workers' Compensation have salaries which are a based on the salary of an associate circuit judge. In the event that the Commission's recommendation is accepted by the Legislature, $49,800 has been recommended for these salary increases. Decision Item Ranked: 3 We welcome the opportunity to discuss these budget issues with you in further detail. Please feel free to contact me at (573) 751-9691 should you have questions or need additional information. Sincerely, wrence G. Rebman Department Director \rv Enclosure DEPARTMENT OF LABOR AND INDUSTRIAL RELATIONS FY 2010 BUDGET JANUARY 30, 2009 PAGE 1 OF 5 DECISION DECISION PAGE DEPT. NO. DIVISION NAME ITEM RANK ITEM NO. NO. DESCRIPTION Supplemental (FY 2009) 62804 State Board of Mediation 1 Decision Item Summary Board Chair - 30/0 Raise 2625001 2 Supplemental Decision Item 5 Decision Item Detail 62713 Division of Labor Standards 6 Decision Item Summary Workers' Safety Unit E&E 2625002 7 Supplemental Decision Item 10 Decision Item Detail 62925 Second Injury Fund 11 Decision Item Summary SIF Core Increase 2625003 12 Supplemental Decision Item 15 Decision Item Detail Operating (FY 2010) 62605 IT Consolidation 16 Decision Item Summary Core Request 17 Core Decision Item 19 Core Reconciliation Detail 20 Decision Item Detail General Structure Adjustment 3 0000012 21 New Decision Item 24 Decision Item Detail Citizens' Commission Rec 3 0000016 37 New Decision Item 40 Decision Item Detail 62601 Director and Staff 1 41 Decision Item Summary Core Request 42 Core Decision Item 44 Core Reconciliation Detail 47 Flexibility Request Form 48 Decision Item Detail DEPARTMENT OF LABOR AND INDUSTRIAL RELATIONS FY 2010 BUDGET JANUARY 30, 2009 PAGE 2 OF 5 DECISION DECISION PAGE DEPT. NO. DIVISION NAME ITEM RANK ITEM NO. NO. DESCRIPTION Federal Stimulus Funding 7 1625004 51 New Decision Item 54 Decision Item Detail 55 Program Description - Administration 62602 Administrative Fund Transfers 1 58 Decision Item Summary Core Request 59 Core Decision Item 61 Core Reconciliation Detail 63 Decision Item Detail Pay Plan Transfer with Fringes 3 1625005 64 New Decision Item 67 Decision Item Detail 62603 Admin Services OA - Transfer 1 68 Decision Item Summary Core Request 69 Core Decision Item 71 Core Reconciliation Detail 73 Decision Item Detail OA Services Transfer Increase 5 1625002 74 New Decision Item 77 Decision Item Detail OA Pay Play Transf with Fringe 3 1625002 78 New Decision Item 81 Decision Item Detail 63701 Labor and I ndustrial Relations 1 82 Decision Item Summary Commission 83 Core Decision Item Core Request 85 Core Reconciliation Detail 87 Flexibility Request Form 88 Decision Item Detail 89 Program Description - Higher Authority Review 62713 Division of Labor Standards 1 93 Decision Item Summary Administration 94 Core Decision Item Core Request 96 Core Reconciliation Detail 98 Flexibility Request Form - DLS Admin 99 Flexibility Request Form - Workers Safety Unit DEPARTMENT OF LABOR AND INDUSTRIAL RELATIONS FY 2010 BUDGET JANUARY 30, 2009 PAGE30F 5 DECISION DECISION PAGE DEPT. NO. DIVISION NAME ITEM RANK ITEM NO. NO. DESCRIPTION 100 Decision Item Detail 102 Program Description - Wage and Hour I Min. Wage 105 Program Description - Prevailing Wage 108 Program Description - Child Labor 111 Program Description - Mine and Cave Inspection 114 Program Description - Workers Safety 62724 DLS - On-Site Consultation 1 117 Decision Item Summary Core Request 118 Core Decision Item 120 Core Reconciliation Detail 121 Flexibility Request Form 122 Decision Item Detail 123 Program Description - On-Site Safety and Health Consultation 62735 DLS - Mine Safety and 1 128 Decision Item Summary Health Training 129 Core Decision Item Core Request 131 Core Reconciliation Detail 133 Flexibility Request Form 134 Decision Item Detail 135 Program Description - Mine Safety and Health Training 62804 State Board of Mediation 1 138 Decision Item Summary Core Request 139 Core Decision Item Summary 141 Core Reconciliation Detail 142 Flexibility Request Form 143 Decision Item Detail 144 Program Description - Public Sector Bargaining -62915 Division of Workers' 1 146 Decision Item Summary Compensation - Administration 149 Core Decision Item 62920 Kids Chance Scholar. Trans 151 Core Reconciliation Detail DEPARTMENT OF LABOR AND INDUSTRIAL RELATIONS FY 2010 BUDGET JANUARY 30, 2009 PAGE40F 5 DECISION DECISION PAGE DEPT. NO. DIVISION NAME ITEM RANK ITEM NO. NO. DESCRIPTION 62918 Workers' Comp Refunds 152 Flexibility Request Form 156 Decision Item Detail 160 Program Description - Workers' Compensation 62937 Tort Victims' Comp Payments 1 164 Decision Item Summary 62939 Basic Civil Legal Srvs Transfer 167 Core Decision Item 169 Core Reconciliation Detail 172 Decision Item Detail 62925 OWC - Second Injury 1 175 Decision Item Summary 62927 SI F Benefits and Refunds 177 Core Decision Item Core Request 179 Core Reconciliation Detail 181 Decision Item Detail SIF Core Increase 6 1625003 183 New Decision Item 186 Decision Item Detail 63016 Division of Employment 1 187 Decision Item Summary Security - Administration 188 Core Decision Item Core Request 190 Core Reconciliation Detail 192 Decision Item Detail 194 Program Description - Unemployment Ins Benefits 197 Program Description - Operations 201 Program Description - Unemployment Ins Appeals 63037 War on Terror Unemployment 1 204 Decision Item Summary Compensation 205 Core Decision Item Core Request 207 Core Reconciliation Detail 208 Decision Item Detail 63046 DES - Employment and 1 209 Decision Item Summary Training Programs 210 Core Decision Item Core Request 212 Core Reconciliation Detail 213 Decision Item Detail DEPARTMENT OF LABOR AND INDUSTRIAL RELATIONS FY 2010 BUDGET JANUARY 30, 2009 PAGE 5 OF 5 DECISION DECISION PAGE DEPT. NO. DIVISION NAME ITEM RANK ITEM NO. NO. DESCRIPTION 63036 DES - Special Employment 1 214 Decision Item Summary 63038 Security Fund 216 Core Decision Item Core Request 218 Core Reconciliation Detail 220 Decision Item Detail 63020 Division of Employment Security 1 223 Decision Item Summary Debt Offset Escrow 224 Core Decision Item Core Request 226 Core Reconciliation Detail 227 Decision Item Detail 63409 Commission on Human 1 228 Decision Item Summary Rights 229 Core Decision Item Core Request 231 Core Reconciliation Detail 233 Flexibility Request Form 234 Decision Item Detail 236 Program Description - Prevention/Elimination of Illegal Discrim ination