Workers’ Compensation Board

The enacted budget makes the following changes to the Executive Budget (analysis as of March 27, 2012):

·         The enacted budget makes no changes to the Executive Budget All Funds, state operations, appropriation proposal of $213.8 million.

·         Rejects the broad Executive Budget proposal to allow the Executive to have unlimited transfer and interchange authority over all State Operations appropriations. Instead it creates specific transfer and interchange authorization for State Operation appropriations, for this agency they include: OGS/Back Office, Call Center, and Information Technology.  In general this authorization allows the Executive to move appropriations between state agencies for these purposes. For additional detail please see page 5 of the Summary of the SFY 2012-13 Enacted Budget memo.

·         Adds Article VII language, which will extend the date (to 2015) by which the Chair of the Workers’ Compensation Board shall assess that enough funds are available in the fund for uninsured employers (PPGG, Part R).

The Assembly Budget recommends the following changes to the Executive Budget (analysis as of March 13, 2012):

·         Modifies the Executive proposal to extend the repayment of the Uninsured Employers Fund until 2016.  The Assembly would extend such authority until 2014.

The 21-day amendments propose the following changes (analysis as of February 9, 2012):

·         Adds Article VII language to extend the provisions of Chapter 56 of the Laws of 2010, amending the workers’ compensation law in relation to the collection of assessments for annual expenses.

According to the Assembly analysis of the Executive Budget (January 26, 2012):

·         The Executive proposes an increase of $6.2 million for data warehouse and case management redesign (includes an additional 11 FTEs for this purpose).  This proposed increase is offset by several proposed decreases, which include: a reduction of $10.49 million attributed to the elimination of non-recurring costs related to the Board’s management of failed group self-insured trusts; a reduction of $3 million attributed to the alignment of cash and appropriation levels; and a reduction of $660,000 attributed to attrition.

The Executive Budget recommends (analysis as of January 20, 2012):

A SFY 2012-13 workforce of 1,371 FTEs.  However the adjusted FTE level for 2011-12 is a decrease of 86 FTEs from the level projected in last year’s budget.  The estimated workforce level for SFY 2012-13 is the result of the attrition of 80 FTEs, being offset by 71 new fills. 

The following chart identifies adjustments in the current fiscal year FTEs along with the recommended differences in FY 2012-13 FTEs by program:

·   An All Funds appropriation of $213.8 million, a decrease of $7.1 million (-3.2%) from SFY 2011-12.  This figure, unlike the agency presentation, includes the $17 million appropriation for the Workers’ Compensation Reserve Account.  The account increased by $890,000 and is located in the “contingent and other appropriations” section of the budget appropriation bill.

·   The State Operations reduction reflects the elimination of non-recurring costs related to the Board’s management of failed trusts.

·   The total appropriation for Personal Service is $90.4 million, a decrease of $4.1 million, or (-4.3%) from SFY 2011-12.

·   The Board employed an estimated 67 employees (or 67 FTEs) under consultant contracts in SFY 2011-12 at a cost of $8.9 million.  It is estimated that 61 employees (or 61 FTEs) will be employed in SFY 2012-13 at the same cost.  The expenditures may include more than personal service costs and is inconsistent with Office of State Comptroller data on consultant spending so it is difficult to draw conclusions as to the cost per consultant employee.

·   No major Article VII proposals.