Executive Office for Administration and Finance State House Rooms 373 & 272 Boston, MA FY2012 Budget Hearings Slide Presentation For The Executive Office of Labor and Workforce Development

Administration and Finance 2 FY2012 There are 3 main drivers that impact the state budget next year: 1. Total Revenue Collections Tax revenue estimate based on collections to-date in FY11 FY12 consensus revenue estimate, based on economic picture ahead for Massachusetts 2. Unavoidable Spending Pressures From year-to-year the state faces increased cost pressure, for liabilities such as pensions and debt service This will require further efforts to control costs and reduce government spending 3. Loss of One-Time/Short-Term Resources FY11 relies on about $2 billion of one-time resources, including $1.5 billion in ARRA-related federal stimulus funding to the Commonwealth that will not exist next fiscal year These resources, while essential in mitigating pressure on safety net programs during the downturn, will not be available to states beginning in FY2012

Administration and Finance 3 Tax Revenues Recovering: But still remain below FY2008 levels Source: Massachusetts Official StatementsMassachusetts Official Statements millions Fiscal Year

Administration and Finance 4 Since the start of the crisis, the Administration has already solved for deficits totaling nearly $13 billion. We have used a balanced approach of cuts, revenues and rainy day and stimulus funds to close several budget gaps. Over the last several years spending growth has been constrained to reflect available resources. Even though revenues started to grow in fiscal year 2011, revenue collections historically lag the national economic growth and will remain moderate over the next two fiscal years. Because rainy day and federal stimulus funds are running out, our challenge is even greater for fiscal year Sound Fiscal Management:

Administration and Finance 5 BUDGET OVERVIEW What do we spend state dollars on? FY11 Estimated Spending: $ billion "Other" Includes: Environmental Housing and Economic Development Labor and Workforce Administration and Finance Transportation Constitutionals and Independents

Administration and Finance 6 National Picture Shared Experience Virtually every state is struggling to balance their budgets as federal stimulus aid ends and pensions and other liabilities add spending pressure to their annual budgets. States are managing through their fiscal challenges through reforms and efficiencies across a number of areas, including: corrections, education, employee costs, shared services, privatization and sales of assets, and tax expenditures. Massachusetts will, similarly, need to continue efforts to reform and innovate as well as control costs and spending in FY2012 and beyond in order to live at projected revenues.

Administration and Finance 7 Executive Office of Labor and Workforce Development Overview Mission The Executive Office of Labor and Workforce Development's (EOLWD) mission is to enhance the quality, diversity, and stability of the Commonwealth's workforce by supporting workers and businesses. We accomplish this by making available new opportunities and training, protecting the rights of workers, preventing workplace injuries and illnesses, ensuring that businesses are informed of all employment laws impacting them and their employees, providing temporary assistance when employment is interrupted, promoting labor-management partnerships, and ensuring equal access to economic self sufficiency and opportunity for all residents of the Commonwealth.

Administration and Finance 8 EOLWD Budget Overview

Administration and Finance 9 EOLWD FY11 State Budget Overview Agency FY11 EOLWD State Budget EOLWD 990,834 DWD 36,038,993 DOS 2,203,502 DIA 19,906,544 DLR 1,905,890 TOTAL 61,045,763

Administration and Finance 10 EOLWD State Budget Detail Of the $ 61 million in state funding: –$31.5 million (52% of EOLWD’s state funding) is used for program/grants. –The other $29.5 million (48% of EOLWDs state funding) is used for the operations of EOLWD and its agencies.

Administration and Finance 11 EOLWD Accomplishments Provided nearly $5,000,000,000 in unemployment insurance benefits to claimants across the Commonwealth. Provided over 1 million job search services to 211,761 clients and 12,737 employers. Administered 577,027 Unemployment Insurance claimant visits from July 1, 2009 to June 30, 2010 in the Career Centers. Made over $800,000 in grants providing worker training and support services to over 6,000 workers. Conducted over 1,700 worksite safety & health visits in public and private sector locations, and identified over 4,000 hazards to be addressed by employers.