Labor Market Information
Trends and Issues in Funding of State Programs Gao ID: GAO-03-336 December 20, 2002Labor market information is used to help make and assess social and monetary policies, tax and budget projections, and private investment decisions. Produced under cooperative agreements between states and the Bureau of Labor Statistics (BLS), labor market information helps provide an up-to-date picture of the U.S. economy and generate closely watched economic indicators, such as unemployment rates and the Gross Domestic Product. In addition, decisions about the distribution of billions of federal dollars to states and local governments depends, in part, on labor market information. In summary, GAO found that (1) funding for the Covered Employment and Wages (ES-202) and Current Employment Statistics (CES) programs declined in real terms over the past 7 years; (2) BLS estimates the funding needs of states by adjusting prior year funding and uses formulas to allocate funds to states; and (3) workload and cost increases outpaced funding increases in the ES-202 program, which could result in data quality problems, according to state Labor Market Information (LMI) officials. BLS estimates LMI budget needs for states by making adjustments to the past year's funding and allocates appropriated funds to states by using allocation formulas. Specifically, in estimating the amount of funding needed for state LMI offices, BLS starts with the past year's funding, and adds an adjustment for cost inflation. In addition, for the ES-202 program that has a continuously growing workload, BLS adds an amount for expected workload increases. However, BLS's requests for funding increases to cover growing costs and workloads are not always approved. In developing its budget estimates, BLS does not collect information from state LMI offices to determine what those offices' costs or budget needs are because, according to BLS officials, BLS cannot readily verify such information.
GAO-03-336, Labor Market Information: Trends and Issues in Funding of State Programs
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Report to Congressional Requesters:
United States General Accounting Office:
GAO:
December 2002:
Labor Market Information:
Trends and Issues in Funding of State Programs:
GAO-03-336:
Contents:
Letter:
Appendix I: Briefing Slides:
Appendix II: Programs That Use LMI Data in Decisions about the
Distribution of Federal Funds or Other Benefits:
Appendix III: Change in States‘ Allocations:
Appendix IV: States Ranked by Size:
Abbreviations:
BLS: Bureau of Labor Statistics:
CES: Current Employment Statistics:
LAUS: Local Area Unemployment Statistics:
LMI: Labor Market Information:
December 20, 2002:
The Honorable Edward M. Kennedy
Chairman
The Honorable Judd Gregg
Ranking Minority Member
Committee on Health, Education, Labor and Pensions
United States Senate:
The Honorable Michael B. Enzi
Ranking Minority Member
Subcommittee on Employment, Safety and Training
Committee on Health, Education, Labor and Pensions
United States Senate:
The Honorable Daniel K. Inouye
United States Senate:
Labor market information is used to help make and assess social and
monetary policies, tax and budget projections, and private investment
decisions. Produced under cooperative agreements between states and the
Bureau of Labor Statistics (BLS), labor market information helps
provide an up-to-date picture of the U.S. economy and generate closely
watched economic indicators, such as unemployment rates and the Gross
Domestic Product. In addition, decisions about the distribution of
billions of federal dollars to states and local governments depends, in
part, on labor market information.
BLS defines the work that state Labor Market Information (LMI) programs
must perform and the amount of money they will receive for that work--
about $80 million in fiscal year 2002.[Footnote 1] You asked us to look
at issues regarding BLS‘s funding of state LMI programs because of your
interest in the quality of data used to distribute federal funds under
the Workforce Investment Act of 1998. Our objectives were to (1)
describe changes over time in federal funding to states for LMI
programs, (2) describe how BLS estimates LMI budget needs for states
and allocates appropriated funds to the states, and (3) identify issues
regarding federal funding of state LMI programs.
Of the five LMI programs, we focused our work on the two that receive
the most funds from BLS--the Covered Employment and Wages (referred to
as the ES-202 program) and the Current Employment Statistics (CES)
programs. Both the ES-202 and CES programs produce data on employment,
such as numbers of employees and average wages by industry, but with
key differences. The ES-202 program produces data quarterly based on
its file on about 8 million business establishments, covering most
employment in the United States.[Footnote 2] The CES program produces
more timely data (monthly) based on a survey of about
350,000 business establishments. The ES-202 and CES programs are linked
because the CES survey sample is selected from the ES-202 file and the
CES estimates are adjusted (’benchmarked“) by the ES-202 data. Data
from these programs greatly affect the distribution of billions of
federal dollars to states and local entities. For example, data from
both the ES-202 and CES programs are used by another LMI program--the
Local Area Unemployment Statistics (LAUS) program--to generate
estimates used by various federal programs, including some under the
Workforce Investment Act of 1998, to make decisions about the
distribution of federal funds.[Footnote 3] Also, ES-202 data, such as
those on average wages, are used directly by other federal programs to
make decisions about the distribution of federal funds. (See appendix
II for a list of federal programs that use LMI data directly in
decisions about the distribution of federal funds.) Further, ES-202
data are a significant factor in the calculation of state per capita
personal income, which is used in the distribution of federal funds
under programs such as Medicaid and Foster Care.[Footnote 4]
To describe changes over time in federal funding to states for LMI
programs, we obtained and analyzed data from BLS‘s budget office on
base program funding provided to states for the ES-202 and CES programs
from fiscal year 1996 through fiscal year 2002. To describe how BLS
estimates LMI budget needs for states and allocates appropriated funds
to states, we interviewed BLS budget officials and reviewed documents
on the allocation formulas. To identify issues regarding federal
funding of state LMI programs, we interviewed officials from the LMI
offices in six states--California, Florida, Minnesota, Montana, New
York, and Wyoming. We selected these states because they represent a
range in the number of business establishments in each state and a
range of outcomes from a recent change in state allocations. We also
met with BLS officials to obtain their views on the funding of state
LMI programs.
We did not independently assess the validity of states‘ or BLS‘s views
about the adequacy of BLS funding of state LMI programs because of a
lack of clear and objective criteria for determining whether current
funding levels are adequate to produce quality data and for determining
the extent of any over-or under-funding. Instead, we developed
descriptions of conditions relevant to states‘ and BLS‘s views by using
data from BLS on funding and workload and data from the six surveyed
states on cost increases. We conducted our work from June through
November 2002 in accordance with generally accepted government auditing
standards. We provided briefings on the results of our work to staff of
the Subcommittee on Employment, Safety and Training of the Senate
Committee on Health, Education, Labor and Pensions on October 24,
2002, and to staff of Senator Inouye on November 22, 2002. This report
formally conveys the information provided during those briefings plus
additional information you requested.
In summary, we found that (1) funding for the ES-202 and CES programs
declined in real terms over the past seven years; (2) BLS estimates the
funding needs of states by adjusting prior year funding and uses
formulas to allocate funds to states; and (3) workload and cost
increases outpaced funding increases in the ES-202 program, which could
result in data quality problems, according to state LMI officials.
Our review of changes over time in federal funding to states for LMI
programs found that from fiscal year 1996 through fiscal year 2002, the
ES-202 program‘s base funding for states, when adjusted for cost-
inflation, declined 5 percent. In addition, the CES program‘s base
funding for the same period declined 17 percent.
BLS estimates LMI budget needs for states by making adjustments to the
past year‘s funding and allocates appropriated funds to states by using
allocation formulas. Specifically, in estimating the amount of funding
needed for state LMI offices, BLS starts with the past year‘s funding
and adds an adjustment for cost inflation. In addition, for the ES-202
program that has a continuously growing workload, BLS adds an amount
for expected workload increases. However, BLS‘s requests for funding
increases to cover growing costs and workloads are not always approved.
In developing its budget estimates, BLS does not collect information
from state LMI offices to determine what those offices‘ costs or budget
needs are because BLS cannot readily verify such information, according
to BLS officials. After BLS‘s budget is approved and BLS receives its
appropriation from Congress, BLS distributes funds among the states
using a different allocation formula for each of the five LMI programs.
BLS recently changed the source of salary data it factors into these
formulas because the previously used data were not readily verifiable
and BLS wanted to make the allocation process more objective and
open.[Footnote 5] This change will result in funding increases over
time for some, mostly larger states.[Footnote 6] Funding for other
states, mostly smaller, that would have decreased, will remain flat
under a hold-harmless approach.[Footnote 7]
Although the change in the allocation formulas has raised concerns
among some small states, the broader issue regarding BLS‘s funding of
state LMI programs is whether the overall amount of funds available for
allocation to states is sufficient to produce high quality data. All
six states we spoke with and BLS agreed that funding provided to states
has not kept pace with the continuously growing workload in the labor-
intensive
ES-202 program. In addition, states said that funding has not kept up
with increases in costs in the ES-202 program, such as increases
resulting from pay raises for state LMI office staff.[Footnote 8] A
comparison of changes in the nationwide base funding for the ES-202
program with changes in indicators for workload and costs, for the
period from fiscal year 1996 to fiscal year 2002, reveals that funding
increases have been outpaced by the combined increase in workload and
costs. Specifically, while funding (not inflation adjusted) increased
13 percent, the total number of business establishments with ES-202
program records--a key indicator of workload--increased about 11
percent and average state salaries and benefits--an indicator of a key
cost component--increased about 19 percent. Five of the six states we
spoke with believe that the quality of their ES-202 data will suffer in
the future under current funding trends.[Footnote 9] In contrast to the
ES-202 program, there is no simple indicator of workload trends for the
CES program, and states differed in their views about the adequacy of
CES funding.[Footnote 10] Three of the six states believe that CES
funding is generally adequate given their current workloads under the
CES program, while the other three believe their funding is inadequate.
BLS program officials say that states are delivering their CES products
on time and in compliance with the requirements of the cooperative
agreement and, thus, are adequately funded for the work they must
perform under the CES program.
We provided a draft of this report to the Department of Labor and BLS
for review and made changes based on their technical comments as
appropriate.
We are sending copies of the report to relevant congressional
committees; the Secretary, Department of Labor; the Commissioner,
Bureau of Labor Statistics; the Director, Office of Management and
Budget; and other interested parties. We will make copies available to
others upon request. The report is also available at no charge on GAO‘s
Web site at www.gao.gov. If you and your staff have any questions about
this report, please contact Sigurd Nilsen or Andrew Sherrill at (202)
512-7215. Kathy Peyman, Cathy Pardee, and Pat Elston also made key
contributions to this report.
[End of section]
Signed by Sigurd R. Nilsen:
Sigurd R. Nilsen, Director
Education, Workforce, and
Income Security Issues:
[End of section]
Appendix I: Briefing Slides:
[See PDF for image]
[End of Figure]
[End of section]
Appendix II: Programs That Use LMI Data in Decisions about the
Distribution of Federal Funds or Other Benefits:
Table 1: Programs That Use Data from the Local Area Unemployment
Statistics (LAUS) Program:
[See PDF for image]
Source: BLS‘s LAUS program, the federal agencies listed, and the
Catalog of Federal Domestic Assistance.
[A] Programs listed are those identified by BLS that use LAUS data to
allocate shares of federal funds or achieve other purposes, such as
qualifying applicants, establishing eligibility of individuals or
geographic areas, or setting thresholds or federal match rates.
[B] Unless otherwise noted, dollars shown are amounts available for the
program from fiscal year 2002 appropriations. The full amount shown is
not necessarily subject to distribution based on LAUS data.
[C] Dollars shown are an estimate provided by a Food and Nutrition
Service official of the portion of the $21.9 billion in appropriations
for the Food Stamp program that could be affected by the LAUS data.
[D] Dollars shown are estimated obligations.
[E] Dollars shown were available for the period fiscal year 1997
through fiscal year 2002.
[F] LAUS data do not directly affect the amount of funds that states
receive from the $16.7 billion in appropriations for the Temporary
Assistance for Needy Families (TANF) program. However, unemployment
data affect how long states can count job search as a work activity for
TANF recipients when determining whether the states meet federal work
participation rate requirements.
[G] Program distributes visas to eligible immigrant entrepreneurs who
establish or sustain an investment of $1 million in a commercial
enterprise within the U.S. For those who invest in targeted employment
areas with high rates of unemployment, the investment threshold is $0.5
million.
[End of Figure]
[End of table]
Table 2: Examples of Programs That Use Data from the Covered Employment
and Wages (ES-202) Program:
[See PDF for image]
Source: BLS‘s ES-202 program, the federal agencies listed, and the
Catalog of Federal Domestic Assistance.
[A] Table includes significant examples of the numerous programs that
use ES-202 data directly to allocate shares of federal funds or for
other purposes, such as establishing eligibility for federal funds. The
table does not include programs that use ES-202 data indirectly, such
as Medicaid and Foster Care, that have funding formulas that include
state per capita personal income, which is based in part on ES-202
data.
[B] Unless otherwise noted, dollars shown are amounts available for the
program from fiscal year 2002 appropriations. The full amount shown is
not necessarily subject to distribution based on ES-202 data.
[C] Dollars shown are estimated obligations.
[End of table]
[End of section]
Appendix III: Change in States‘ Allocations:
Table 3: Change in States‘ ES202 and CES Base Program Allocations from
Fiscal Year 2001 to Fiscal Year 2002 if Formula Change Were Implemented
Without Hold-Harmless.
State: Alabama; Actual fiscal year 2001 allocation dollars: $651,442;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: $805,652; If hold-harmless not applied: Change in
allocation: $154,210; If hold-harmless not applied: Change in
allocation: 24.
State: Alaska; Actual fiscal year 2001 allocation dollars: 445,721;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 339,296; If hold-harmless not applied: Change in
allocation: -106,425; If hold-harmless not applied: Change in
allocation: -24.
State: Arizona; Actual fiscal year 2001 allocation dollars: 682,469;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 620,753; If hold-harmless not applied: Change in
allocation: -61,716; If hold-harmless not applied: Change in
allocation: -9.
State: Arkansas; Actual fiscal year 2001 allocation dollars: 533,447;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 542,147; If hold-harmless not applied: Change in
allocation: 8,700; If hold-harmless not applied: Change in
allocation: 2.
State: California; Actual fiscal year 2001 allocation dollars:
5,104,176; [Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 5,696,468; If hold-harmless not applied: Change in
allocation: 592,292; If hold-harmless not applied: Change in
allocation: 12.
State: Colorado; Actual fiscal year 2001 allocation dollars: 996,109;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 886,112; If hold-harmless not applied: Change in
allocation: -109,997; If hold-harmless not applied: Change in
allocation: -11.
State: Connecticut; Actual fiscal year 2001 allocation dollars:
1,007,596; [Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 1,007,722; If hold-harmless not applied: Change in
allocation: 126; If hold-harmless not applied: Change in
allocation: 0.
State: Delaware; Actual fiscal year 2001 allocation dollars: 413,981;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 371,495; If hold-harmless not applied: Change in
allocation: -42,486; If hold-harmless not applied: Change in
allocation: -10.
State: District of Columbia; Actual fiscal year 2001 allocation
dollars: 458,445; [Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 430,069; If hold-harmless not applied: Change in
allocation: -28,376; If hold-harmless not applied: Change in
allocation: -6.
State: Florida; Actual fiscal year 2001 allocation dollars: 2,023,622;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 1,851,538; If hold-harmless not applied: Change in
allocation: -172,084; If hold-harmless not applied: Change in
allocation: -9.
State: Georgia; Actual fiscal year 2001 allocation dollars: 1,125,664;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 1,167,146; If hold-harmless not applied: Change in
allocation: 41,482; If hold-harmless not applied: Change in
allocation: 4.
State: Hawaii; Actual fiscal year 2001 allocation dollars: 387,485;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 357,628; If hold-harmless not applied: Change in
allocation: -29,857; If hold-harmless not applied: Change in
allocation: -8.
State: Idaho; Actual fiscal year 2001 allocation dollars: 440,896;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 368,827; If hold-harmless not applied: Change in
allocation: -72,069; If hold-harmless not applied: Change in
allocation: -16.
State: Illinois; Actual fiscal year 2001 allocation dollars: 1,955,505;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 1,964,536; If hold-harmless not applied: Change in
allocation: 9,031; If hold-harmless not applied: Change in
allocation: 0.
State: Indiana; Actual fiscal year 2001 allocation dollars: 936,385;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 1,057,557; If hold-harmless not applied: Change in
allocation: 121,172; If hold-harmless not applied: Change in
allocation: 13.
State: Iowa; Actual fiscal year 2001 allocation dollars: 605,320;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 858,101; If hold-harmless not applied: Change in
allocation: 252,781; If hold-harmless not applied: Change in
allocation: 42.
State: Kansas; Actual fiscal year 2001 allocation dollars: 600,500;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 579,899; If hold-harmless not applied: Change in
allocation: -20,601; If hold-harmless not applied: Change in
allocation: -3.
State: Kentucky; Actual fiscal year 2001 allocation dollars: 526,316;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 687,175; If hold-harmless not applied: Change in
allocation: 160,859; If hold-harmless not applied: Change in
allocation: 31.
State: Louisiana; Actual fiscal year 2001 allocation dollars: 936,220;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 749,823; If hold-harmless not applied: Change in
allocation: -186,397; If hold-harmless not applied: Change in
allocation: -20.
State: Maine; Actual fiscal year 2001 allocation dollars: 465,699;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 383,300; If hold-harmless not applied: Change in
allocation: -82,399; If hold-harmless not applied: Change in
allocation: -18.
State: Maryland; Actual fiscal year 2001 allocation dollars: 702,998;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 880,340; If hold-harmless not applied: Change in
allocation: 177,342; If hold-harmless not applied: Change in
allocation: 25.
State: Massachusetts; Actual fiscal year 2001 allocation dollars:
1,407,056; [Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 1,608,121; If hold-harmless not applied: Change in
allocation: 201,065; If hold-harmless not applied: Change in
allocation: 14.
State: Michigan; Actual fiscal year 2001 allocation dollars: 1,849,127;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 1,722,081; If hold-harmless not applied: Change in
allocation: -127,046; If hold-harmless not applied: Change in
allocation: -7.
State: Minnesota; Actual fiscal year 2001 allocation dollars:
1,067,680; [Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 1,106,007; If hold-harmless not applied: Change in
allocation: 38,327; If hold-harmless not applied: Change in
allocation: 4.
State: Mississippi; Actual fiscal year 2001 allocation dollars:
468,317; [Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 412,343; If hold-harmless not applied: Change in
allocation: -55,974; If hold-harmless not applied: Change in
allocation: -12.
State: Missouri; Actual fiscal year 2001 allocation dollars: 765,600;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 899,487; If hold-harmless not applied: Change in
allocation: 133,887; If hold-harmless not applied: Change in
allocation: 17.
State: Montana; Actual fiscal year 2001 allocation dollars: 429,537;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 302,580; If hold-harmless not applied: Change in
allocation: -126,957; If hold-harmless not applied: Change in
allocation: -30.
State: Nebraska; Actual fiscal year 2001 allocation dollars: 512,838;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 455,117; If hold-harmless not applied: Change in
allocation: -57,721; If hold-harmless not applied: Change in
allocation: -11.
State: Nevada; Actual fiscal year 2001 allocation dollars: 480,369;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 471,458; If hold-harmless not applied: Change in
allocation: -8,911; If hold-harmless not applied: Change in
allocation: -2.
State: New Hampshire; Actual fiscal year 2001 allocation dollars:
430,394; [Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 403,759; If hold-harmless not applied: Change in
allocation: -26,635; If hold-harmless not applied: Change in
allocation: -6.
State: New Jersey; Actual fiscal year 2001 allocation dollars:
1,414,929; [Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 1,938,089; If hold-harmless not applied: Change in
allocation: 523,160; If hold-harmless not applied: Change in
allocation: 37.
State: New Mexico; Actual fiscal year 2001 allocation dollars: 654,155;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 419,001; If hold-harmless not applied: Change in
allocation: -235,154; If hold-harmless not applied: Change in
allocation: -36.
State: New York; Actual fiscal year 2001 allocation dollars: 3,086,205;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 3,374,734; If hold-harmless not applied: Change in
allocation: 288,529; If hold-harmless not applied: Change in
allocation: 9.
State: North Carolina; Actual fiscal year 2001 allocation dollars:
1,173,253; [Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 1,195,728; If hold-harmless not applied: Change in
allocation: 22,475; If hold-harmless not applied: Change in
allocation: 2.
State: North Dakota; Actual fiscal year 2001 allocation dollars:
385,447; [Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 293,770; If hold-harmless not applied: Change in
allocation: -91,677; If hold-harmless not applied: Change in
allocation: -24.
State: Ohio; Actual fiscal year 2001 allocation dollars: 1,676,778;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 2,035,305; If hold-harmless not applied: Change in
allocation: 358,527; If hold-harmless not applied: Change in
allocation: 21.
State: Oklahoma; Actual fiscal year 2001 allocation dollars: 752,529;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 504,815; If hold-harmless not applied: Change in
allocation: -247,714; If hold-harmless not applied: Change in
allocation: -33.
State: Oregon; Actual fiscal year 2001 allocation dollars: 792,278;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 760,165; If hold-harmless not applied: Change in
allocation: -32,113; If hold-harmless not applied: Change in
allocation: -4.
State: Pennsylvania; Actual fiscal year 2001 allocation dollars:
1,894,611; [Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 2,334,158; If hold-harmless not applied: Change in
allocation: 439,547; If hold-harmless not applied: Change in
allocation: 23.
State: Rhode Island; Actual fiscal year 2001 allocation dollars:
409,078; [Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 400,585; If hold-harmless not applied: Change in
allocation: -8,493; If hold-harmless not applied: Change in
allocation: -2.
State: South Carolina; Actual fiscal year 2001 allocation dollars:
610,665; [Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 609,430; If hold-harmless not applied: Change in
allocation: -1,235; If hold-harmless not applied: Change in
allocation: 0.
State: South Dakota; Actual fiscal year 2001 allocation dollars:
323,127; [Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 307,735; If hold-harmless not applied: Change in
allocation: -15,392; If hold-harmless not applied: Change in
allocation: -5.
State: Tennessee; Actual fiscal year 2001 allocation dollars: 702,615;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 762,572; If hold-harmless not applied: Change in
allocation: 59,957; If hold-harmless not applied: Change in
allocation: 9.
State: Texas; Actual fiscal year 2001 allocation dollars: 2,641,843;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 2,553,351; If hold-harmless not applied: Change in
allocation: -88,492; If hold-harmless not applied: Change in
allocation: -3.
State: Utah; Actual fiscal year 2001 allocation dollars: 435,415;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 476,680; If hold-harmless not applied: Change in
allocation: 41,265; If hold-harmless not applied: Change in
allocation: 9.
State: Vermont; Actual fiscal year 2001 allocation dollars: 338,113;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 342,604; If hold-harmless not applied: Change in
allocation: 4,491; If hold-harmless not applied: Change in
allocation: 1.
State: Virginia; Actual fiscal year 2001 allocation dollars: 1,264,184;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 1,155,528; If hold-harmless not applied: Change in
allocation: -108,656; If hold-harmless not applied: Change in
allocation: -9.
State: Washington; Actual fiscal year 2001 allocation dollars:
1,017,738; [Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 1,032,268; If hold-harmless not applied: Change in
allocation: 14,530; If hold-harmless not applied: Change in
allocation: 1.
State: West Virginia; Actual fiscal year 2001 allocation dollars:
531,741; [Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 452,190; If hold-harmless not applied: Change in
allocation: -79,551; If hold-harmless not applied: Change in
allocation: -15.
State: Wisconsin; Actual fiscal year 2001 allocation dollars:
1,120,267; [Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 1,110,028; If hold-harmless not applied: Change in
allocation: -10,239; If hold-harmless not applied: Change in
allocation: -1.
State: Wyoming; Actual fiscal year 2001 allocation dollars: 433,169;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: 259,130; If hold-harmless not applied: Change in
allocation: -174,039; If hold-harmless not applied: Change in
allocation: -40.
State: Totals; Actual fiscal year 2001 allocation dollars: $50,069,054;
[Empty]; If hold-harmless not applied: Fiscal year
2002 allocation: $51,304,403; If hold-harmless not applied: Change in
allocation: $1,235,349; If hold-harmless not applied: Change in
allocation: [Empty].
Source: GAO analysis of BLS funding data.
[End of table]
[End of section]
Appendix IV: States Ranked by Size:
Table 4: States Ranked by Size (from Largest to Smallest) Based on
Number of Business Establishments in ES-202 Data:
State: California; Average number
of establishments
for 2001: 1,084,308; Percentage of total establishments: 13.4.
State: New York; Average number
of establishments
for 2001: 539,709; Percentage of total establishments: 6.7.
State: Texas; Average number
of establishments
for 2001: 491,907; Percentage of total establishments: 6.1.
State: Florida; Average number
of establishments
for 2001: 460,048; Percentage of total establishments: 5.7.
State: Pennsylvania; Average number
of establishments
for 2001: 334,747; Percentage of total establishments: 4.1.
State: Illinois; Average number
of establishments
for 2001: 319,595; Percentage of total establishments: 4.0.
State: Ohio; Average number
of establishments
for 2001: 287,264; Percentage of total establishments: 3.6.
State: Michigan; Average number
of establishments
for 2001: 258,750; Percentage of total establishments: 3.2.
State: New Jersey; Average number
of establishments
for 2001: 256,594; Percentage of total establishments: 3.2.
State: Georgia; Average number
of establishments
for 2001: 239,426; Percentage of total establishments: 3.0.
State: North Carolina; Average number
of establishments
for 2001: 225,387; Percentage of total establishments: 2.8.
State: Washington; Average number
of establishments
for 2001: 220,225; Percentage of total establishments: 2.7.
State: Virginia; Average number
of establishments
for 2001: 197,936; Percentage of total establishments: 2.4.
State: Massachusetts; Average number
of establishments
for 2001: 191,685; Percentage of total establishments: 2.4.
State: Missouri; Average number
of establishments
for 2001: 163,670; Percentage of total establishments: 2.0.
State: Minnesota; Average number
of establishments
for 2001: 156,025; Percentage of total establishments: 1.9.
State: Colorado; Average number
of establishments
for 2001: 154,196; Percentage of total establishments: 1.9.
State: Indiana; Average number
of establishments
for 2001: 150,921; Percentage of total establishments: 1.9.
State: Wisconsin; Average number
of establishments
for 2001: 147,743; Percentage of total establishments: 1.8.
State: Maryland; Average number
of establishments
for 2001: 145,861; Percentage of total establishments: 1.8.
State: Tennessee; Average number
of establishments
for 2001: 125,593; Percentage of total establishments: 1.6.
State: Arizona; Average number
of establishments
for 2001: 119,279; Percentage of total establishments: 1.5.
State: South Carolina; Average number
of establishments
for 2001: 115,432; Percentage of total establishments: 1.4.
State: Louisiana; Average number
of establishments
for 2001: 115,223; Percentage of total establishments: 1.4.
State: Oregon; Average number
of establishments
for 2001: 113,487; Percentage of total establishments: 1.4.
State: Alabama; Average number
of establishments
for 2001: 111,007; Percentage of total establishments: 1.4.
State: Connecticut; Average number
of establishments
for 2001: 108,725; Percentage of total establishments: 1.3.
State: Kentucky; Average number
of establishments
for 2001: 108,375; Percentage of total establishments: 1.3.
State: Iowa; Average number
of establishments
for 2001: 92,817; Percentage of total establishments: 1.1.
State: Oklahoma; Average number
of establishments
for 2001: 90,328; Percentage of total establishments: 1.1.
State: Kansas; Average number
of establishments
for 2001: 81,325; Percentage of total establishments: 1.0.
State: Arkansas; Average number
of establishments
for 2001: 73,031; Percentage of total establishments: 0.9.
State: Utah; Average number
of establishments
for 2001: 68,668; Percentage of total establishments: 0.8.
State: Mississippi; Average number
of establishments
for 2001: 63,749; Percentage of total establishments: 0.8.
State: Nebraska; Average number
of establishments
for 2001: 52,649; Percentage of total establishments: 0.7.
State: Nevada; Average number
of establishments
for 2001: 51,515; Percentage of total establishments: 0.6.
State: New Mexico; Average number
of establishments
for 2001: 48,833; Percentage of total establishments: 0.6.
State: Idaho; Average number
of establishments
for 2001: 46,657; Percentage of total establishments: 0.6.
State: West Virginia; Average number
of establishments
for 2001: 46,566; Percentage of total establishments: 0.6.
State: Maine; Average number
of establishments
for 2001: 46,546; Percentage of total establishments: 0.6.
State: New Hampshire; Average number
of establishments
for 2001: 46,406; Percentage of total establishments: 0.6.
State: Montana; Average number
of establishments
for 2001: 40,553; Percentage of total establishments: 0.5.
State: Hawaii; Average number
of establishments
for 2001: 35,428; Percentage of total establishments: 0.4.
State: Rhode Island; Average number
of establishments
for 2001: 33,624; Percentage of total establishments: 0.4.
State: District of Columbia; Average number
of establishments
for 2001: 28,561; Percentage of total establishments: 0.4.
State: South Dakota; Average number
of establishments
for 2001: 27,342; Percentage of total establishments: 0.3.
State: Delaware; Average number
of establishments
for 2001: 25,190; Percentage of total establishments: 0.3.
State: Vermont; Average number
of establishments
for 2001: 24,060; Percentage of total establishments: 0.3.
State: North Dakota; Average number
of establishments
for 2001: 23,258; Percentage of total establishments: 0.3.
State: Wyoming; Average number
of establishments
for 2001: 21,429; Percentage of total establishments: 0.3.
State: Alaska; Average number
of establishments
for 2001: 19,410; Percentage of total establishments: 0.2.
Source: BLS ES-202 data.
[End of table]
FOOTNOTES
[1] This $80 million was allocated for the operation of base programs;
BLS provided additional funding to states for special projects.
[2] The ES-202 program covers approximately 97 percent of employment in
the United States. Groups that are not covered include members of the
armed forces and the self-employed.
[3] In addition to ES-202 and CES data, the LAUS program uses data from
other sources, most notably the Current Population Survey conducted by
the Bureau of the Census for BLS.
[4] See pages 33, 40, 57, 77, 82, and 102 of U.S. General Accounting
Office, Formula Grants: Effects of Adjusted Population Counts on
Federal Funding to States, GAO/HEHS-99-69 (Washington, D.C.: Feb. 26,
1999) for more information on programs using state per capita personal
income in their funding formulas.
[5] In fiscal year 2002, BLS began using average state government
salaries from a BLS publication instead of data submitted by states on
the salaries of LMI office staff.
[6] We determined a state‘s size based on the number of business
establishments in the state, as shown in appendix IV.
[7] The hold-harmless approach will result in a gradual phase-in of
changes to states‘ allocations. Under this approach, states whose
funding would have declined under the allocation change will have their
base program funding held at or about the fiscal year 2001 level. Also,
states whose funding would have increased under the allocation change
will get all increases available under future appropriations. The
potential future impact of the allocation change on individual state‘s
funding levels can be seen by looking at the funding changes that would
have occurred if the hold harmless approach were not used. See appendix
III.
[8] According to BLS officials, salaries account for 70 to 80 percent
of the expenses for state LMI programs.
[9] The five states include two states--Minnesota and New York--that
expect to receive funding increases because of the allocation change
and three states--Florida, Montana, and Wyoming--that expect to have
their funding held at past levels without increases because of the
allocation change.
[10] According to BLS officials, BLS has taken various actions, such as
centralizing some of the monthly data collection and taking over the
systems development and support work, that have reduced state workloads
in the CES program.
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