produce data to support wage determinations by the dates specified in the FEPCA, progress on the locality pay surveys cannot be delayed.

Since the Federal Economic Initiative increase is a piece of a government-wide initiative, delay in the BLS portion would have a detrimental impact on other statistic gathering agencies as well as perpetuate the inadequacies of the data that are being used by policymakers in the executive and legislative branches of government and by the private sector. Particularly at this point in time when there is serious question about the direction of the economy, improvements in the employment and price data need to proceed.

Question. What would be the impact of Congress denying each and every requested program increase?

Answer. If the funds to support the survey work under the FEPCA are not appropriated, there will be no data on which to make pay comparability determinations. Since the salary differentials will involve, in the aggregate, huge amounts of money and will be carefully scrutinized by the public as well as those with a special interest in Federal employees, they must be based on sound survey results and statistical techniques.

If the funds to improve the statistical system are not appropriated, the employment and price data will continue to become more out of date, less efficient and of lesser quality. Given the widespread use of Federal indicators for private investment decisions and in the allocation of public resources, it is necessary that its relevance and quality be improved. This is the basic concern underlying the initiative to improve these important

measures.

MSHA STAFF CUTS

Question. The fiscal 1991 across-the-board cut of 2.41 percent in the Labor-HHS Appropriations bill resulted in 27 fewer Mine Safety enforcement staff. What impact is being felt from this cut?

Answer. In the FY 91 Coal Enforcement program, MSHA will reduce on-site education and training activities designed to assist the operator through the evaluation of their training programs. Other discretionary programs with reductions are special inspections and technical investigations. These are non-mandatory enforcement activities directed toward special problem areas and engineering evaluations and assistance. Some of the special inspections and technical investigations will be restored in FY 92.

In the FY 91 Metal/Nonmetal program, MSHA will eliminate most of the compliance assistance activities designed to assist mine operators in solving compliance problems. Some of these activities will be restored in FY 92.

Question. Why are you proposing to extend this cutback in fiscal 1992?

Answer. The President's FY 1992 budget request for MSHA was developed to ensure that all mandatory requirements of the Federal Mine Safety and Health Act of 1977 would be satisfied. Because the

FY 1991 enforcement staffing level provided sufficient resources to complete all mandated inspections, this same level is proposed for continuation in FY 1992.

Question. How much would be required to restore these 27 FTE

in fiscal 1992?

FTE.

Answer. A total of $1,391,000 is required to restore the 27

INCREASE IN INSPECTIONS

Question. Your OSHA budget indicates Federal inspections will increase by 3,000 to 47,000 in Fiscal Year 1992. How can you accomplish more inspections when you are requesting 5 fewer Federal enforcement staff in Fiscal Year 1992?

Answer. OSHA's reduction of five FTE from the Enforcement activity represents a reduction in support staff, not compliance officers. The increase in projected inspections is attributable to the increasing experience and productivity of compliance officers hired during the last several years, and the agency's greater experience in enforcing new penalty procedures implemented in 1991.

BILL LANGUAGE RESTRICTIONS

Question. Explain what enforcement changes would result from your request to drop several bill language restrictions, such as the exemptions for small farms, and small firms in industries with better than average safety records.

Answer. The exemption for small farming operations excludes a large segment of workers from OSHA's coverage, by exempting more than 98 percent of the nation's farms and at least 53 percent of all farm workers from the Act's protection. Currently, agriculture has the highest lost work day injury rate of any major industry group other than construction. Elimination of the rider would allow OSHA to investigate farm workers fatalities, respond to reports of serious hazards or imminent danger and to include farm workers under new OSHA standards.

OSHA is proposing to eliminate the exemption for small businesses in SIC's with rates lower than the national average because the bill language is unnecessary. OSHA'S current enforcement practices preclude inspections of small firms with better than average safety records. The restriction, however, limits the agency's flexibility to focus inspection resources on individual workplaces with the poorest safety records if they are included within the exempted industry classifications.

Question:

FECA PERIODIC ROLL REVIEW INITIATIVE

Explain exactly what you expect to accomplish through your proposal to hire 50 staff to review long-term workers' compensation disability rolls.

Answer: As injury claims have grown, and various court rulings and changes in regulations have added procedural steps to claims processing, Federal Employees' Compensation (FECA) staff has concentrated on basic claims actions. While this function has been improved, there has still been a growth in the number of Federal workers receiving long-term benefits. This has risen by 24% since FY 1982, to about 50,000 workers. During the same time medical benefits costs have risen 145%.

The 50 term FTE represent the first half-year staffing of a proposed 200-person four-year project. Under the project, teams of claims and rehabilitation personnel would conduct an intensive review of long-term cases; improve medical care; identify workers who could benefit from training or placement to become reemployed; and identify claimants whose work-related disability has resolved.

Meanwhile, regular staff will be trained to employ effective techniques and procedures, some tested in FECA over the last two years, in a "Model Compensation Management Program" to manage new claims, and be prepared at the end of 4 years to resume the management of the entire periodic roll.

Question: What cost savings do you anticipate from this

program?

Answer: Since an average totally disabled worker receives about $20,000 annually in wage loss benefits, we believe that significant savings can be achieved, particularly in the third and fourth years of the project. We expect termination of eligibility of some 3,000 long-term disability cases. The terminations will either occur because medical evidence shows that disability has ceased, or, following second opinion examinations or vocational rehabilitation, claimants are returned to work.

Net savings in the project's first four years are expected to be approximately $40 million. Additional savings will continue beyond the project's completion as a result of permanent terminations and downward adjustments in eligibility. Still other savings will result from shorter disability periods for new disability cases and from lower costs of medical care.

Question: Why are you requesting only 4-year limited term staff, instead of permanent positions? Won't this make it difficult to recruit quality personnel?

Answer: We believe that these positions will be very attractive despite their 4-year status. We are targeting recent retirees, and other more experienced people who would not view the 4-year appointment as a barrier. In addition, because of recent slowdowns in the private and governmental sectors, we should find a larger pool of qualified personnel seeking such appointments. Except for the 4-year limit, those hired will have the same

ソ

benefits as permanent staff, including accruing retirement benefits. Finally, the training and experience received will improve the ability to compete for permanent Federal appointments. Wherever possible, we will recruit term employees for vacancies within our organization.

Question: What staff resources are currently utilized for disability management?

Answer: Claims examiners, who make up approximately 45 percent of FECA staff, conduct both early case management and management of the long-term disability rolls, adjudicate claims, answer priority correspondence, authorize medical payments, and perform other duties. With increasing incoming workloads and additional procedural requirements in recent years, these resources have focused on front-end claims work. In addition, we have sixteen Rehabilitation Specialists and contract and State Vocational Rehabilitation support. In total, however, we have only been able to return 1,450 persons to work in recent years through rehabilitation and employment. This should be contrasted with a periodic roll of 50,000 (without death cases).

OFCCP REDUCTION OF STAFF

Question: You are proposing to cut 15 staff in the Office of Federal Contract Compliance Programs, resulting in 100 fewer compliance reviews in fiscal 1992.

Why are you de-emphasizing enforcement of affirmative action compliance?

Answer: To the contrary, the FTE reductions will not deemphasize enforcement of affirmative action compliance. A number of initiatives implemented over the past few years will maximize the impact of our enforcement efforts.

OFCCP has implemented an enforcement strategy based on these initiatives which will maximize the impact of its enforcement activities in spite of the reduced staffing. The strategy includes:

1.

increasing litigation against recalcitrant
contractors;

2.

using the media to publicize significant results;

3.

4.

5.

coordinating enforcement efforts with other
Departmental Agencies such as the Bureau of
Apprenticeship and Training;

coordinating enforcement efforts with other Federal agencies, principally the Equal Employment Opportunity Commission;

improving guidance to our compliance officers through revision of our compliance manual;

6.

improving training for compliance officers;

7.

increasing use of microcomputer technology;

8.

9.

encouraging voluntary compliance by recognizing
exemplary voluntary affirmative action efforts of
contractors;

focusing enforcement efforts on work force 2000 issues such as eliminating attitudinal and organizational barriers to the advancement of women and minorities into high level corporate management occupations.

We are already beginning to see the results of these in the increased level of financial awards obtained from contractors over the last few years and the high violation rates resulting from compliance reviews. In fiscal year 1989, we obtained $36.8 million in financial awards. In fiscal year 1990, financial awards totaled $34.7 million. For fiscal year 1991, we have already obtained over $6 million in the first quarter alone.

ENFORCEMENT OF EEO REQUIREMENTS

Question: How many staff will have to be diverted to carry out your newly acquired responsibility to enforce EEO requirements in apprenticeship and training programs?

Answer: It will not be necessary to divert any staff to carry out the newly acquired responsibility for apprenticeship and training programs. OFCCP plans to incorporate these enforcement

actions into its "normal" workload.

The Memorandum of Understanding with the Bureau of Apprenticeship and Training (BAT) provides for a shared and coordinated effort.

In addition to OFCCP and BAT, the Department will use the resources of the Women's Bureau to take advantage of their standing with major community-based groups and expertise in outreach programs for women. With these three highly visible DOL agencies, we expect notable results within a short period of time and without over-taxing the limited resources of any one entity.