
Major Changes Included in the May Revision
Post-Employment Benefits Commission
- The May Revision proposes increasing the Department of Finance's budget by $654,000 General Fund for additional support to the Post-Employment Benefits Commission, including contracts with an economist, health care experts, actuaries, and other staff and operating resources.
- The Commission will draw on these experts as it finalizes its report, due January 1, 2008 to the Governor and Legislature. The report will delineate the state’s full responsibility in regards to unfunded post-employment benefits and outline strategies for meeting these obligations.
Items Largely Unchanged from the Governor’s 2007 January Budget
Industrial Welfare Commission
The IWC is mandated by Labor Code to ascertain wages paid and hours and conditions of labor and employment and to investigate the health, safety and welfare of those employees in 17 industries and occupational groups in California. The IWC is also charged with conducting a full review of the adequacy of the minimum wage at least once every two years.
- The Governor’s Budget proposes to provide $449,000 in funds and three positions redirected from the Department of Industrial Relations to re-establish IWC staffing.
Department of Industrial Relations
The DIR seeks to foster, promote, and develop the welfare of the wage earners of California, to improve their working conditions, and to advance opportunities for profitable employment.
- The Governor's Budget includes $384.5 million in funding for DIR, an increase of $21.8 million above the revised 2006-07 budget.
- This includes a $19.1 million appropriation to improve systems for the Workers' Compensation Administration Revolving Fund, reducing delays and costs.
Employment Training Panel
The Employment Training Panel is a joint business-labor training program benefiting the California economy by supporting the creation and retention of high-wage, high-skilled jobs in California industries having the greatest economic impact and return-on-investment.
- The Budget includes $56.3 million for the Employment Training Panel, representing an $18.2 million (48 percent) increase in funding since fiscal year 2005-06 for the program.
Other Labor Budget Items
- The Budget includes $408,000 and five positions to increase licensing and registration staff for industries regulated by the Labor Commissioner’s Office in the Department of Industrial Relations. This funding will speed up the registration process for employers and help address deregistration of unlawful employers.
- The Budget includes $1.852 million and 16 positions to create the Elevator Plan Checking Unit in the Division of Occupational Safety and Health (DOSH) at the Department of Industrial Relations.
- The Budget includes $323,000 to staff the Electrician Certification Program in the Division of Apprenticeship Standards in the Department of Industrial Relations to ensure that certified electricians meet minimum state standards for competency and training.
- The Budget includes $339,000 and three new positions for the Division of Apprenticeship Standards to perform audits of approved apprenticeship programs once every five years in compliance with Labor Code Section 3073.1 and to ensure apprenticeship programs are producing qualified journey persons upon graduation.
California Rehabilitation Oversight Board
- The proposed Budget includes an increase of $810,000 General Fund to support the California Rehabilitation Oversight Board (C-ROB) established by AB 900 (Chapter 7, Statutes of 2007). The C-ROB, chaired by the Inspector General, is tasked with examining the various mental health, substance abuse, educational and employment programs for inmates and parolees operated by the Department of Corrections and Rehabilitation.

