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<classification authority="sudocs">GA 1.13:GAO-03-336</classification>
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 <subject>Appropriated funds</subject>
 <subject>Employment or training programs</subject>
 <subject>Federal aid to states</subject>
 <subject>Federal funds</subject>
 <subject>Federal/state relations</subject>
 <subject>Labor costs</subject>
 <subject>Labor statistics</subject>
 <subject>Program evaluation</subject>
 <subject>State programs</subject>
 <subject>BLS Covered Employment and Wages Program</subject>
 <subject>BLS Current Employment Statistics</subject>
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<titleInfo>
 <title>Labor Market Information: Trends and Issues in Funding of State Programs</title>
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<abstract>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. 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&apos;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&apos;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&apos;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&apos; costs or budget needs	 
are because, according to BLS officials, BLS cannot readily	 
verify such information.</abstract>
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<identifier type="preferred citation">GAO-03-336</identifier>
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 <searchTitle>GAO-03-336; Labor Market Information: Trends and Issues in Funding of State Programs;
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<subject>
 <topic>Appropriated funds</topic>
 <topic>Employment or training programs</topic>
 <topic>Federal aid to states</topic>
 <topic>Federal funds</topic>
 <topic>Federal/state relations</topic>
 <topic>Labor costs</topic>
 <topic>Labor statistics</topic>
 <topic>Program evaluation</topic>
 <topic>State programs</topic>
 <topic>BLS Covered Employment and Wages Program</topic>
 <topic>BLS Current Employment Statistics</topic>
 <topic>Program</topic>
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