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2007 OSHSPA Special Report: Impact and Funding of State OSH Plans

Purpose

The purpose of this document is to provide information to Congress on the impact and funding of state-operated programs for occupational safety and health. State Plan Programs are highly successful, but have experienced significant funding deficiencies for the past seven years.

 
CHART 1
Federal OSHA Budget
(in millions of dollars)
CHART 1 - Federal OSHA Budget (in millions of dollars)
CHART 2
OSHA Budget for State Plans 23(g)
(as percent of total OSHA budget)
CHART 2 - OSHA Budget for State Plans 23(g) (as percent of total OSHA budget)

Text Version of Chart:

Chart Title: CHART 1 - Federal OSHA Budget (in millions of dollars)
Chart Type: Vertical Bar Graph
Chart Elements: 8 - One bar for each year showing the Federal OSHA Budget in millions of dollars
Values:
  • 2001 = 425
  • 2002 = 444
  • 2003 = 450
  • 2004 = 458
  • 2005 = 464
  • 2006 = 472
  • 2007a = 472
  • 2008a = 490
a = proposed budgets

Text Version of Chart:

Chart Title: CHART 2 - OSHA Budget for State Plans 23(g) (as percent of total OSHA budget)
Chart Type: Vertical Bar Graph
Chart Elements: 8 - One bar for each year showing the OSHA State Plans budget as a percent of the total OSHA budget
Values:
  • 2001 = 20.8
  • 2002 = 20.2
  • 2003 = 20.1
  • 2004 = 20.1
  • 2005 = 19.6
  • 2006 = 19.3
  • 2007a = 19.3
  • 2008a = 18.6
a = proposed budgets

Occupational Safety and Health Administration (OSHA)

In establishing OSHA, Congress specifically encouraged states to develop their own safety and health plans, which would provide enforcement and compliance assistance activities. Section 18 of the Occupational Safety and Health Act, signed into law on December 29, 1970, authorized states to administer a state-operated program for occupational safety and health, provided the programs are "at least as effective" as federal OSHA.

Congress envisioned a comprehensive national program that would provide safety and health protection in all U.S. states and territories. Prior to the creation of OSHA, many states were already operating programs to protect their workers. Today there are 26 states and territories that operate a State Plan Program for workplace safety and health, and work together through the Occupational Safety and Health State Plan Association (OSHSPA).

 
CHART 3
Contribution by State Plans
(in millions of dollars)
CHART 3 - Contribution by State Plans (in millions of dollars)
CHART 4
OSHA Funding for State Plans 23(g)
and Impact of Inflation

(in millions of dollars)
CHART 4 - OSHA Funding for State Plans 23(g) and Impact of Inflation (in millions of dollars)

Text Version of Chart:

Chart Title: CHART 3 - Contribution by State Plans (in millions of dollars)
Chart Type: Vertical Bar Graph
Chart Elements: 7 - One bar for each year showing the Contribution by State Plans in millions of dollars
Values:
  • 2001 = 41.6
  • 2002 = 40.7
  • 2003 = 40.4
  • 2004 = 37.7
  • 2005 = 39.9
  • 2006 = 46.7
  • 2007a = 58.4
a = proposed budgets

Text Version of Chart:

Chart Title: CHART 4 - OSHA Funding for State Plans 23(g) and Impact of Inflation (in millions of dollars)
Chart Type: Vertical Bar Graph
Chart Elements: 16 - Two bars for each year showing the State Plan funding when adjusted for inflation
Values:
  • 2001
    • State Plan 23(g) Federal Dollars = 88
    • Adjusted for Inflation = 86
  • 2002
    • State Plan 23(g) Federal Dollars = 90
    • Adjusted for Inflation = 86
  • 2003
    • State Plan 23(g) Federal Dollars = 90
    • Adjusted for Inflation = 84
  • 2004
    • State Plan 23(g) Federal Dollars = 92
    • Adjusted for Inflation = 83
  • 2005
    • State Plan 23(g) Federal Dollars = 91
    • Adjusted for Inflation = 79
  • 2006
    • State Plan 23(g) Federal Dollars = 91
    • Adjusted for Inflation = 76
  • 2007a
    • State Plan 23(g) Federal Dollars = 91
    • Adjusted for Inflation = 74
  • 2008a
    • State Plan 23(g) Federal Dollars = 91
    • Adjusted for Inflation = 71
a = estimated for 2006-2008

State Plan OSHA Funding

States choosing to operate a State Plan Program contribute a significant amount toward funding the program. Congress established a 50 percent funding level to encourage states to operate their own programs and to develop innovative approaches to workplace safety and health issues. Because states must provide at least a 50 percent match, every federal dollar is doubled - which multiplies OSHSPA state plan efforts.

While Congress envisioned that the partnership between federal OSHA and the state plans would include federal funding of 50 percent of the costs - the federal portion for State Plan Programs has diminished significantly over the years. Some key issues:
  • During the past seven years, federal funding has increased more than 15 percent − while state plan funding has increased only about three percent. (Charts 1 & 2)

  • States received 19.3 percent of the overall federal OSHA budget in FY 2006, compared to 20.8 percent in FY 2001. (Chart 2)

  • States are required to match federal funds. In addition, states contributed "overmatch" funds of more than $46.7 million in FY 2006 and will contribute an estimated $58.4 million in FY 2007. (Chart 3)

  • The "real dollars" available to states have significantly decreased when considering inflation. The $91 million in federal funds equates to $71 million when adjusted for inflation since 2001. (Chart 4)

  • Initially, federal OSHA was able to fund states at a level up to 50 percent of the program costs. As program demands have increased, the states have not been provided the necessary federal OSHA financial resources to "keep up."
Federal OSHA and the state plans jointly developed a formula to more effectively distribute to states additional funding that becomes available. However, this formula is not a mechanism for addressing the fundamental problem of inadequate funding of State Plan Programs.

Proposed Funding Solution

A process must be established to accurately and fairly address the budgetary requirements of State Plan Programs. Funding for state plans is a separate line in the OSHA budget and must be specifically addressed. An increase in the OSHA budget does not increase the portion provided to state-operated programs.

Federal OSHA does not involve the state plans in its budgetary process, or address declining state plan funding as a budget priority. Therefore, OSHSPA must educate Congress on the importance of this issue. OSHSPA states are a Congressional success story, and are effective and efficient users of state and federal tax dollars. The strong partnership with OSHA has placed State Plan Programs in a perfect position to develop successful grassroots solutions with representatives of labor, industry, professional and academic organizations, and the public.

At a minimum, State Plan Programs should be currently funded at an amount that would be in place had state plan funding kept pace with federal OSHA funding over the last several years. Based on the original intent of Congress and the output of the state plans, the long-term goal should be to reach full 50 percent funding.

Impact of State Plan Programs

State Plan Programs cover approximately 40 percent of private-sector workers nationally. In addition, they extend coverage to more than 10 million workers in the public sector, which includes state and local governments, municipalities, colleges and universities. In all, its estimated the OSHSPA states cover more than 2.9 million workplaces and 58 million workers. In FY 2006, state plans conducted nearly 60,000 inspections, identified over 120,000 hazards and assessed over $70 million in penalties. (Charts 5 and 6)

 
CHART 5
Program Funding & Penalties Assessed
(in millions of dollars for FY 2006)
CHART 5 - Program Funding & Penalties Assessed (in millions of dollars for FY 2006)
CHART 6
Program Inspections and Violations
(for FY 2006)
CHART 6 - Program Inspections and Violations (for FY 2006)

Text Version of Chart:

Chart Title: CHART 5 - Program Funding & Penalties Assessed (in millions of dollars for FY 2006)
Chart Type: Vertical Bar Graph
Chart Elements: 4 - Two bars showing program funding and two bars showing the penalties assessed for both Federal OSHA and Stat Plan States
Values:
  • Funding for Programs
    • Federal OSHA = $472
    • State Plan States = $228*
  • Penalties Assessed
    • Federal OSHA = $84
    • State Plan States = $71
*Includes $91M from OSHA and $137M in match from States

Text Version of Chart:

Chart Title: CHART 6 - Program Inspections and Violations (for FY 2006)
Chart Type: Vertical Bar Graph
Chart Elements: 4 - Two bars showing the number of inspections and two bars showing the total violations for both Federal OSHA and State Plan States
Values:
  • Number of Inspection
    • Federal OSHA = 38,600
    • State Plan States = 58,100
  • Total Violations
    • Federal OSHA = 83,900
    • State Plan States = 127,500

State Plan Programs bring unique strengths and flexibility to the administration of occupational safety and health programs in this nation. The OSHSPA states serve as "laboratories of innovation." Because the programs are locally based, it is easier to develop and implement new programs and innovations, pilot alternative approaches, and experiment with new methods for achieving a safe and healthy work environment.

Since federal OSHA was enacted in 1970, workplace fatalities have decreased by 60 percent and injury/illness rates are down 40 percent. Working together with federal OSHA, State Plan Programs continually identify new ways to encourage employer investment in workplace safety and health. Federal OSHA estimates employers realize a $4 − $6 return on every $1 invested in worker safety and health. This investment is significant because workplace injuries, illnesses and fatalities are estimated to cost the country more than $170 billion per year.

Although the number of employers and employees continue to increase in many states, the net resources to address workplace hazards in state plans have declined due to inflation and unfunded mandates from OSHA. The potential impacts if this trend continues are reduced enforcement and outreach capabilities and smaller reductions in injuries, illnesses and fatalities. Without more resources, it may become very difficult for some states to maintain a program that is at least as effective as federal OSHA, which is a mandatory requirement for state plan programs.

Federal OSHA has long recognized State Plan Programs for their innovative approaches to protect working men and women across America. Together, OSHSPA State Plan Programs and federal OSHA will continue to share the message that it pays to invest in safety and health − with the primary goal that workers across the country return home from work safe and healthy at the end of the day.

 
U.S. Map - State Plan Programs
   
State Plan Programs Covering
Private and Public Sectors
States Covered by Federal OSHA
Private Sector Only
       
      Alaska
      Arizona
      California
      Hawaii
      Indiana
      Iowa
      Kentucky
      Maryland
      Michigan
      Minnesota
      Nevada
    New Mexico
    North Carolina
    Oregon
    Puerto Rico
    South Carolina
    Tennessee
    Utah
    Vermont
    Virginia
    Washington
    Wyoming
      Alabama
      Arkansas
      Colorado
      Connecticut
      Delaware
      Dist. of Columbia
      Florida
      Georgia
      Idaho
      Illinois
      Kansas
      Louisiana
      Maine
      Massachusetts
      Mississippi
      Missouri
    Montana
    Nebraska
    New Hampshire
    New Jersey
    New York
    North Dakota
    Ohio
    Oklahoma
    Pennsylvania
    Rhode Island
    South Dakota
    Texas
    Virgin Islands
    West Virginia
    Wisconsin
State Plan Programs
Covering Public Sector Only
   
      Connecticut
      New Jersey
    New York
    Virgin Islands

State Plan Programs

Currently, there are 26 states and territories with state-operated programs for worker safety and health. Twenty-one states and one territory have plans covering the private and public sectors. Three states and one territory have programs covering the public sector only. OSHSPA links the 26 state-plan jurisdictions, federal OSHA jurisdictions and Congress.

State Plan Programs have historically led efforts to create multidisciplinary approaches for workplace safety and health. In addition to compliance activity, most states devote significant resources for outreach, including consultative services and training resources to employers and workers.

The OSHSPA states have established a strategic planning process that measures program outcomes based on each states unique knowledge of local work activity and hazards. This approach is consistent with the requirements of the Government Performance and Results Act (GPRA). Each states strategic plan provides objective information for determining budget levels, and enhances public confidence by showing program activities and results.

 
Occupational Safety and Health State Plan Association
2007 Board of Directors

Chairperson

Steve Cant
Assistant Director
Division of Occupational Safety and Health
Washington State Department of Labor and Industries
P.O. Box 44600
Olympia, WA 98504-4600
Phone: 360.902.5495
E-mail


Vice Chairperson

Vicky Heza
Deputy Chief
Division of Occupational Safety and Health
California Department of Industrial Relations
2100 East McFadden Avenue, Ste. 214
Santa Ana, CA 92705
Phone: 714.558.4411
E-mail


Past Chairperson

Douglas Kalinowski
Michigan Occupational Safety and Health Administration
Michigan Department of Labor & Economic
Growth
P.O. Box 30643
Lansing, MI 48909-8143
Phone: 517.322.1814
E-mail

Directors

Kevin Beauregard
Assistant Deputy Commissioner
Division of Occupational Safety and Health
North Carolina Department of Labor
1101 Mail Service Center
Phone: 919.807.2863
Raleigh, NC 27699-1101
E-mail

Grey Mitchell
Director
Division of Labor Standards and Safety
Alaska Department of Labor
P.O. Box 21149
Juneau, AK 99802
Phone: 907.465.4855
E-mail

John Winkler
Administrator
Development
Tennessee Department of Labor and
Workforce
710 James Robertson Parkway, Third Floor
Nashville, TN 37243
Phone: 615.741.2793
E-mail

Jay Withrow
Director
Office of Legal Support
Virginia Department of Labor and Industry
Powers-Taylor Building
13 S. 13th Street
Richmond, VA 23219
Phone: 804.786.9873
State Plan Programs
E-mail