[Senate Hearing 108-38]
[From the U.S. Government Publishing Office]
S. Hrg. 108-38
WORKFORCE INVESTMENT ACT: THE ADMINISTRATIONS APPROACH TO
REAUTHORIZATION
=======================================================================
HEARING
BEFORE THE
SUBCOMMITTEE ON EMPLOYMENT, SAFETY, AND TRAINING
OF THE
COMMITTEE ON HEALTH, EDUCATION,
LABOR, AND PENSIONS
UNITED STATES SENATE
ONE HUNDRED EIGHTH CONGRESS
FIRST SESSION
ON
TO EXAMINE THE ADMINISTRATIONS APPROACH TO REAUTHORIZE THE WORKFORCE
INVESTMENT ACT (WIA), FOCUSING ON STRENGTHENING THE DELIVERY OF
EMPLOYMENT AND TRAINING SERVICES NATIONWIDE
__________
MARCH 6, 2003
__________
Printed for the use of the Committee on Health, Education, Labor, and
Pensions
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WASHINGTON : 2003
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COMMITTEE ON HEALTH, EDUCATION, LABOR, AND PENSIONS
JUDD GREGG, New Hampshire, Chairman
BILL FRIST, Tennessee EDWARD M. KENNEDY, Massachusetts
MICHAEL B. ENZI, Wyoming CHRISTOPHER J. DODD, Connecticut
LAMAR ALEXANDER, Tennessee TOM HARKIN, Iowa
CHRISTOPHER S. BOND, Missouri BARBARA A. MIKULSKI, Maryland
MIKE DeWINE, Ohio JAMES M. JEFFORDS (I), Vermont
PAT ROBERTS, Kansas JEFF BINGAMAN, New Mexico
JEFF SESSIONS, Alabama PATTY MURRAY, Washington
JOHN ENSIGN, Nevada JACK REED, Rhode Island
LINDSEY O. GRAHAM, South Carolina JOHN EDWARDS, North Carolina
JOHN W. WARNER, Virginia HILLARY RODHAM CLINTON, New York
Sharon R. Soderstrom, Staff Director
J. Michael Myers, Minority Staff Director and Chief Counsel
______
Subcommittee on Employment, Safety, and Training
MICHAEL B. ENZI, Wyoming, Chairman
LAMAR ALEXANDER, Tennessee PATTY MURRAY, Washington
CHRISTOPHER S. BOND, Missouri CHRISTOPHER J. DODD, Connecticut
PAT ROBERTS, Kansas TOM HARKIN, Iowa
JEFF SESSIONS, Alabama JAMES M. JEFFORDS (I), Vermont
Ilyse W. Schuman, Staff Director
William Kamela, Minority Staff Director
(ii)
C O N T E N T S
__________
STATEMENTS
Thursday, March 6, 2003
Page
Enzi, Hon. Michael B, a U.S. Senator from the State of Wyoming... 1
Murray, Hon. Patty, a U.S. Senator from the State of Washington.. 6
Findlay, D. Cameron, Deputy Secretary of Labor, Department of
Labor.......................................................... 10
ADDITIONAL MATERIAL
Statements, articles, publications, letters, etc.:
D. Cameron Findlay........................................... 12
American Network of Community Options and Resources.......... 25
Tony Young................................................... 34
(iii)
WORKFORCE INVESTMENT ACT: THE ADMINISTRATIONS APPROACH TO
REAUTHORIZATION
----------
THURSDAY, MARCH 6, 2003
U.S. Senate,
Subcommittee on Employment, Safety, and Training,
of the Committee on Health, Education, Labor, and Pensions,
Washington, DC.
The subcommittee met, pursuant to notice, at 10:03 a.m., in
room SD-430, Dirksen Senate Office Building, Senator Michael B.
Enzi (chairman of the subcommittee) presiding.
Present: Senators Enzi, Murray, and Jeffords.
Opening Statement of Senator Enzi
Senator Enzi. Good morning. We will begin this hearing and
I will begin by welcoming the new ranking member to the
subcommittee, Senator Murray.
We were both just commenting that for a long time Senator
Wellstone has either been the chairman of this subcommittee or
the ranking member of this subcommittee and did just an
outstanding job. It is really different to hold the hearing
without him. His sincerity, his effort, his focus, his comments
will be greatly missed.
Senator Murray, I do look forward to working with you as we
reauthorize the Workforce Investment Act and all of the other
things that this subcommittee does.
I would also like to welcome our distinguished guest today,
Deputy Secretary of Labor Findlay, who will testify on the
administration's approach to the reauthorization of this
legislation.
When the Workforce Investment Act was enacted in 1998,
Congress envisioned a coherent workforce development system
that could effectively and efficiently respond to the needs of
workers and employers. The only thing that we saw more
important than this workforce training was creating the jobs in
the first place.
This publicly funded workforce system has improved the
lives of many Americans seeking new or better jobs. However,
the full promise of the Workforce Investment Act is yet to be
realized. Reauthorization of the Workforce Investment Act gives
us an opportunity to complete the transformation of fragmented
employment and training programs into a seamless workforce
investment system.
Why is our task of reauthorizing WIA so important? It is
because it plays a key role in preparing at-risk youth for the
workforce and helping people to get back to work or find a
better job in these challenging economic times. In turn, our
businesses need an appropriately trained workforce to compete
in the global marketplace.
Prior to being in Washington, my wife and I owned shoe
stores. We were not shoe salesmen, we were shoe fitters. There
is a big difference. Shoe fitters have to listen to the
customer and then fit their desire into something comfortable.
Some people may be born salesmen but they have to be trained
shoe fitters.
We had a series of courses that we put our employees
through. Few people are aware that some stores can make slight
changes in a shoe to make it especially comfortable, as well as
useful and attractive, all thrown in for free.
We taught listening, needs questioning, and technical
fitting. Any staff person could even advance through training
to filling foot doctor's prescriptions. The value of the
training was that it made our store special. But along the way
we got to see some very special people achieve.
One young man, a returning Vietnam veteran, became a store
manager. Then he bought that store. Later he bought a second
store from us. Now he owns his own buildings and is also in the
motel business. That is Bill Sheppler of Miles City, Montana.
He has been playing an important role in building three
communities. I also consider him to be one of my good friends.
He went through a workforce training program that we had
approved in conjunction with the Federal Government.
My wife has also served on several boards that dealt with
training and jobs and is currently on the Advisory Committee on
Apprenticeship of the Department of Labor. She and I know that
real opportunity in America comes from the small business
sector, where the American dream can still happen.
One-stop career centers are the focal point of Workforce
Investment Act employment and training services. I do not see
one-stop centers as different buildings. I see them as a single
system, a system through which the resources of different
programs can be used to deliver services in a complementary
manner.
As we seek to improve this system through reauthorization,
we should keep the following principles in mind. One, it should
be demand driven and responsive to the needs of employers, both
large and small.
It should provide a workforce development system that works
in rural as well as urban areas.
It should provide flexibility to meet State, local, and
individual workforce development needs.
And fourth, it should call for accurate data collection,
reporting, and performance measures that are not unduly
burdensome. I will go into those just a little bit more.
Demand driven and responsive to the needs of employers both
large and small. To be effective, the Workforce Investment Act
must provide employment and training services that meet
employers' workforce needs. We do not want to train workers for
skills that are not needed. Nor should we view human resource
activities in isolation from economic development activities.
Doing so will discourage linkage with the private sector.
Workforce development should be in coordination with, not
in competition with economic development. Also, we should
ensure that our workforce development system is responsive to
the unique challenges and opportunities of small businesses.
Second, the Act should provide a workforce development
system that works in rural as well as urban areas. What works
in Washington, DC or Washington State does not necessarily work
in Wyoming. Rural and frontier areas like Wyoming face unique
workforce development challenges. I want to focus on removing
the barriers to successful implementation of the Act in rural
and frontier areas.
Third, the Act should allow flexibility to meet State,
local, and individual workforce development needs. The Federal
Government is not and should not be best suited to determine
State, local and individual workforce development needs. We
should empower individuals to make choices that are best suited
for them. We should also empower States and localities to make
choices that are appropriate to their workforce needs.
Fourth and finally, the Act should call for accurate data
collection, reporting, and performance measures that are not
unduly burdensome. The system must have accountability.
However, the Act's performance measures need to be fixed.
The 17 current performance measures should be simplified to
more accurately and easily depict the impact the Act is having.
By reducing administrative complexity, more Workforce
Investment Act resources can be devoted to delivering services
rather than doing paperwork.
The Act made dramatic changes to the publicly funded
workforce investment system. The Department of Labor's guidance
and technical assistance is critical to the successful
implementation of the law at the State and local level. As we
reauthorize the Act this year, the role of the Department in
successful implementation becomes even more critical.
Today we will hear from Deputy Secretary Findlay about the
administration's approach to the reauthorization. While it is
focused on reauthorization, I want to address the President's
plan to create personal reemployment accounts to help
unemployed workers get back to work quickly.
These worker managed accounts would give unemployed workers
the flexibility to receive the services they need most, the
customer more in control of the product.
I am looking forward to working with the administration,
with Senator Murray, with the rest of my colleagues, and with
the stakeholders to reauthorize this act, a demand-driven,
flexible and accountable system that will work in all areas of
the country and all economic times. That is what we can achieve
through reauthorization of this landmark legislation.
[The prepared statement of Senator Enzi follows:]
Prepared Statement of Senator Enzi
When the Workforce Investment Act (WIA) was enacted in
1998, Congress envisioned a coherent workforce development
system that could effectively and efficiently respond to the
needs of workers and employers. This publicly-funded workforce
system has improved the lives of many Americans seeking new or
better jobs. However, the full promise of WIA has yet to be
realized.
Reauthorization of WIA gives us an opportunity to complete
the transformation of fragmented employment and training
programs into a seamless workforce investment system.
Reauthorization gives us an opportunity to build on the
successes and remove the barriers to implementation of this
system.
Why is our task of reauthorizing WIA so important? It is
because WIA plays a key role in preparing at-risk youth for the
workforce and helping people get back to work or find a better
job in these challenging economic times. In turn, our
businesses need an appropriately trained workforce to compete
in the global marketplace.
Prior to being in Washington, my wife and I owned shoe
stores. We were not shoe salesmen, we were shoe fitters. There
is a high difference. Shoe fitters have to listen to the
customer and then fit their desire into something comfortable.
Some people may be born salesmen, but they have to be trained
shoe fitters. We had a series of courses we put our employees
through. Few people are aware that some stores can make slight
changes in a shoe to make it especially comfortable as well as
useful and attractive--all thrown in for free. We taught
listening, needs questioning, and technical fitting. Any staff
person could even advance through training to filling foot
doctor's prescriptions. The value of the training was that it
made our stores special. But along the way we got to see some
very special people achieve. One young returning Vietnam vet
became a store manager, then bought that store, later bought a
second store from us, now owns his own building and is also in
the motel business. Bill Schepeler of Miles City, Montana has
and is playing a role in building three communities. I also
consider him to be one of my good friends. He went through a
workforce training program that we had approved in conjunction
with the federal government.
My wife has also served on several boards that dealt with
training and jobs and is currently on the Advisory Committee On
Apprenticeship of the Department of Labor. She and I know that
real opportunity in America comes from the small business
sector where the American dream can still happen.
One-Stop Career Centers are the focal point of WIA's
employment and training services. I don't see One-Stop Centers
as different buildings. I see them as a single system--a system
through which the resources of different programs can be used
to deliver services in a complementary manner.
As we seek to improve this system through reauthorization,
we should keep the following principles in mind:
1. WIA should be demand driven and responsive to the needs
of employers--both large and small.
2. WIA should provide a workforce development system that
works in rural as well as urban areas.
3. WIA should provide flexibility to meet state, local, and
individual workforce development needs.
4. WIA should call for accurate data collection, reporting,
and performance measures that are not unduly burdensome.
I'd like to briefly discuss each of these principles.
First, WIA should be demand driven and responsive to the
needs of employers--both large and small. As the General
Accounting Office (GAO) reported, engaging the private sector
in guiding the system's development has been difficult,
sometimes unsuccessful. To be effective, WIA must provide
employment and training services that meet employers' workforce
needs. We don't want to train workers for skills that aren't
needed. Nor should we view human resources activities in
isolation from economic development activities. Doing so will
discourage linkage with the private sector. Workforce
development should be in coordination with--not in competition
with--economic development. Job training and job creation
should work hand-in-hand. Also, we should ensure that our
workforce development system is responsive to the unique
challenges and opportunities of small businesses.
Second, WIA should provide a workforce development system
that works in rural as well as urban areas. What works in
Washington D.C. or Washington state, doesn't necessarily work
in Wyoming. Rural and frontier areas, like Wyoming, face unique
workforce development challenges. I want to focus on removing
the barriers to successful implementation of WIA in rural and
frontier areas.
Third, WIA should allow flexibility to meet state, local,
and individual workforce development needs. The Federal
government is not--and should not be--best suited to determine
state, local and individual workforce development needs. By
passing WIA in 1998, Congress recognized this fact and the fact
that flexibility is the key to a successful workforce
investment system. However, services available to WIA
participants have been implemented in an overly restrictive
manner. WIA reauthorization should ensure that participants
have the ability to receive services that are appropriate for
their circumstances. We should empower individuals to make
choices that are best-suited for them. We should also empower
states and localities to make choices that are appropriate for
their workforce needs.
Fourth, WIA should call for accurate data collection,
reporting, and performance measures that are not unduly
burdensome. The system must have accountability. However, as
GAO reported, WIA's performance measures need to be fixed. The
17 current performance measures should be simplified to more
accurately and easily depict the impact WIA is having. GAO also
found that some training providers don't want to participate in
WIA due to the law's excessive data collection and reporting
requirements. As a result, training options for job seekers may
be decreasing rather than increasing. GAO also found that
documenting low-income eligibility for youth is costly and
burdensome to providers and difficult for youth most at risk.
As a result, some eligible youth are being denied services. By
reducing administrative complexity, more WIA resources can be
devoted to delivering services rather than doing paperwork.
WIA made dramatic changes to the publicly-funded workforce
investment system. The law also dramatically changed the role
the Department of Labor plays in the workforce investment
system. The Department's guidance and technical assistance is
critical to the successful implementation of the law at the
state and local level. As we reauthorize WIA this year, the
role of the Department in successful implementation becomes
even more critical.
Today, we will hear from Deputy Secretary Findlay about the
Administration's approach to reauthorization of WIA. While the
today's hearing is focused on WIA reauthorization, I will want
to address the President's plan to create Personal Reemployment
Accounts to help unemployed workers get back to work quickly.
These worker-managed accounts would give unemployed workers the
flexibility to receive the services they need most--the
customer more in control of the product.
I look forward to working with the Administration, with
Senator Murray, with the rest of my Colleagues, and with
stakeholders to Reauthorize the Workforce Investment Act. A
demand-driven, flexible, and accountable system that works in
all areas of the country and all economic times--this is what
we can achieve through reauthorization of this landmark
legislation.
Senator Enzi. At this time, I would recognize the
distinguished ranking member, Senator Murray from Washington.
Opening Statement of Senator Murray
Senator Murray. Thank you very much, Mr. Chairman and it is
an honor to join you on this subcommittee. And as you said, it
is hard to envision the subcommittee without Senator Paul
Wellstone and his passion and energy, and I do not think I can
ever fill his shoes and wave my arms as much, but I do hope I
can bring the same kind of passion and energy and commitment to
this role.
And I am confident we will work well together. I think the
fact that we were both born in Washington State means that we
can work well in our efforts here.
I want to thank Deputy Secretary Findlay for coming to
discuss the administration's proposal to reauthorize the
Workforce Investment Act. We passed WIA back in 1998 and
consolidated Federal job placement and training programs to
create a flexible, comprehensive system that is driven by the
private sector.
Since most states chose to delay full implementation of WIA
until July of 2000, we have not had enough time to fully
analyze the success and failures of the current system.
However, WIA is beginning to show some real benefits in many
places, including the State of Washington.
Here in Congress, we need to build on the foundation of
empowering workers and local employers to address their
workforce needs in this reauthorization. As we work to update
this important program I will be focusing on three priorities.
First. we cannot allow funding cuts to hurt our workers and our
local economies. Unfortunately, WIA's success has been
undermined by recent cuts. The fiscal year 2003 funding bill
cuts $655 million from WIA activities from the year before and
this year the President has proposed further cuts for WIA
efforts.
This is not the time, in my opinion, to cut our investment
in worker training and employment. In just the last 18 months,
Washington State has lost nearly 80,000 jobs. During that time,
the number of people coming into one-stop centers has doubled.
Yet since 1985 the funds available to help these workers have
dropped by 25 percent.
These cuts have a big impact on young people, especially
low income and at-risk kids, who are served by the WIA Youth
Program. We should be strengthening the connection between WIA,
local businesses, and young people, not scaling it back as some
have suggested.
Second, we should empower WIA's two customers, business and
labor. We should empower them to use their first-hand knowledge
to meet local employment needs and we should encourage
incentives to bring people and businesses into one-stop
centers. We should make WIA's efforts more efficient at every
level by streamlining the performance reporting and eligibility
criteria and knocking down barriers to job training.
We should not limit a partner's ability to invest in one-
stop centers.
And finally, we should provide greater flexibility so that
local areas can negotiate performance measures that reflect the
type of work and labor market that is being served.
Before I close, I do want to say a word about the
President's proposal for personal reemployment accounts. This
could be a good idea for States like Washington but we
certainly need to know more. We need to know whether WIA will
replace the current efforts of one-stop centers or if it will
supplement them. We need to know if the President's plan would
require unemployed workers to choose between WIA and PRAs.
We have got to recognize that the President's proposal to
provide $3,000 is not enough for training. In fact, the average
training program costs nearly $5,000.
And finally we have got to make sure that a proposal that
sounds good when it is unveiled is not undermined when it comes
time to fund it. In this stagnant economy the stakes are too
high to leave our workers without a lifeline to get a good job.
Fortunately, WIA has always been a bipartisan effort and I
look forward to working with Chairman Enzi and the
administration on this effort.
Thank you very much, Mr. Chairman, and I will have several
questions.
[The prepared statement of Senator Murray follows:]
Prepared Statement of Senator Murray
Senator Murray. Thank you, Mr. Chairman. This is my first
hearing as the Ranking Member of this subcommittee, and I'm
looking forward to working with you closely on employment
issues.
I'm confident that we'll work well together, and I think
that the fact that we were both born in the State of
Washington, bodes well for our efforts here.
I want to thank Deputy Secretary Findlay for coming to
discuss the Administration's proposal to reauthorize the
Workforce Investment Act.
Passed in 1998, WIA consolidated federal job placement and
training programs to create a flexible, comprehensive system
that is driven by the private sector.
Since most states chose to delay full implementation of WIA
until July of 2000, we have not had enough time to fully
analyze the success and the failures of the current system.
However, WIA is beginning to show some real benefits in
many places, including the state of Washington.
Here in Congress, we must build on the foundation of
empowering workers and local employers to address their
workforce needs in this reauthorization.
As we work to update this important program, I'm focusing
on three priorities.
First, we can't allow funding cuts to hurt our workers and
our local economies. Unfortunately, WIA's success has been
undermined by recent cuts.
The FY03 funding bill cut $655 million from WIA activities
from the year before.
This year, the President has proposed further cuts for WIA
efforts. This is not the time to cut our investment in worker
training and employment.
In the last 18 months, Washington State has lost nearly
80,000 jobs. During that time, the number of people coming into
one-stop centers has doubled. Yet since 1985, the funds
available to help these workers have dropped by 25 percent.
These cuts have a big impact on young people especially low
income and at-risk kids who are served by WIA youth program. We
should be strengthening the connection between WIA, local
businesses, and young people--not scaling it back as some have
suggested.
Second, we should empower WIA's two customers business and
labor.
Let's empower them to use their first-hand knowledge to
meet local employment needs.
Let's encourage incentives to bring people and businesses
into one-stop centers.
Finally, let's make WIA's efforts more efficient at every
level. We should streamline the performance, reporting and
eligibility criteria.
We should knock down barriers to job training. We shouldn't
limit a partner's ability to invest in one-stop centers.
We should provide greater flexibility so that local areas
can negotiate performance measures that reflect the type of
work and labor market being served.
Before I close let me say a word about the President's
proposal for Personal Reemployment Accounts. This could be a
good idea for states like Washington, but we certainly need to
know more.
First, we need to know whether WIA will replace the current
efforts of one-stop centers or if it will supplement them.
Second, we need to know if the President's plan would
require unemployed workers to choose between WIA and PRA.
Third, we've got to recognize that the President's proposal
to provide $3,000 is not enough for training. The average
training program costs nearly $5,000.
Finally, we've got to make sure that a proposal that sounds
good when it's unveiled isn't undermined when it comes time to
fund it. In this stagnant economy, the stakes are too high to
leave our workers without a lifeline to good job. Fortunately,
WIA has always been a bipartisan effort and I look forward to
working with Chairman Enzi and the Administration in this
effort. Mr. Chairman, I will have several questions.
Senator Enzi. We do have a vote scheduled at 10:30. I plan
to recess when the halfway point comes so that we can go do the
vote.
Before we begin I have a statement from Senator Kennedy.
[The prepared statement of Senator Kennedy follows:]
Prepared Statement of Senator Kennedy
I commend my colleagues Senator Enzi and Senator Murray for
calling this important hearing today and for their leadership
on these issues over the years.
The Workforce Investment Act has reshaped federal job
training programs, moving to a one-stop service concept created
to help workers acquire the skills needed by local businesses.
It was a significant step in simplifying and strengthening
federal job training programs to meet the needs of workers and
employers.
Today's economy puts this system to a critical test. In the
past two years, over 2.3 million private sector jobs have been
lost. Nearly 8.3 million Americans are out of work, not
including another 1.7 million who are long-term unemployed.
The new job training system is helping workers and their
families. One-Stop Centers are helping workers identify
available jobs and obtain the skills to qualify for them. But
more should be done to meet the urgent need today.
We have the chance this year to reauthorize the Act to
enable the system to respond more effectively to the needs of
workers and business.
To strengthen the system, we must look at the needs of both
workers and businesses. We must look at ways to help them
survive in a down-turned economy. We must maintain targeted
funding to see that dislocated workers have the support they
need in difficult economic times.
We must target resources to teenagers and young adults to
prepare them for good jobs. We need a job creation program for
these young people--a program that will give them the incentive
they need to go to college or to move into the workforce.
We must also do more to meet the needs of low-wage
workers--hard-working Americans who lack the skills for better-
paying jobs. We should work with employers to provide skills
training for these workers long before they are unemployed.
Raising the skill levels of low-skilled workers adds to the
productivity of business and makes our country stronger.
The workforce system must also continue to be a safety net
in this unstable economy. Migrant and seasonal farmworkers
deserve specific support to meet their specific needs. Ex-
offenders deserve help in becoming productive citizens, and
making the transition back into their communities. If we don't
give them the support they need, no one else will.
For all of these reasons, the Department of Labor's budget
is a disappointment. Consolidating funding streams doesn't
change the fact that the Department's job training budget is
$650 million less than the FY02 budget. We can--we must--do
better.
Greater investments in job training and unemployed workers
will help jump-start the economy and keep workers afloat. Many
of us are concerned, however, that the Administration's recent
proposal for Personal Re-employment Accounts is the wrong
approach. The accounts would exclude too many workers, and
deprive unemployed workers of job training services. These
accounts are no replacement for investments in proven job
training and unemployment assistance. Instead, we should invest
these resources in the Workforce Investment Act and the One-
Stop services available under the Act. We should also extend
unemployment benefits for the one million hardest hit workers,
who were left out in the January legislation, and we should
cover the part-time and low-wage workers who have paid into the
unemployment system, but don't receive unemployment benefits.
All of us on both side of the aisle in Congress want to
work with the Department to provide strong support for the
nation's workers.
I thank the Deputy Secretary for his testimony today, and I
look forward to working with you on this reauthorization.
Senator Enzi. So without further ado, I will call on Mr.
Deputy Secretary.
STATEMENT OF D. CAMERON FINDLAY, DEPUTY SECRETARY OF LABOR,
DEPARTMENT OF LABOR
Mr. Findlay. Thank you, Chairman Enzi.
Thank you very much, Senator Murray. We look forward very
much to working with you in your new role as ranking member of
this subcommittee.
I want to thank you for inviting me to testify on the
administration's proposal to reauthorize the Workforce
Investment Act. We view this proposal as a critical part of the
President's strategy to get unemployed Americans back to work
and to get the economy moving again.
I have submitted detailed written testimony. I ask that
that be included in the record, but I would like to briefly
summarize some of the key points of the written testimony.
As both Chairman Enzi and ranking member Murray said, 5
years ago, in large part as a result of the leadership of this
subcommittee, Congress passed a landmark legislation, the
Workforce Investment Act, by large bipartisan majorities.
WIA was truly a groundbreaking piece of legislation and it
has sparked dramatic improvements in the delivery of employment
and training services nationwide. But our challenge now is to
build on these reforms to make the system even more effective
and even more responsive to the needs of local labor markets.
We propose to do this in several ways. First, we want to
create a more effective governance structure to ensure that
services get to workers as soon as possible. Too often in the
past State and local boards have been mired in administrative
details rather than focused on connecting skilled workers with
job opportunities.
The administration proposes to strengthen the role of the
State and local boards in various ways. State boards would
still be chaired and directed by employers but these boards
would have increased representation by one-stop partner
programs. This would, among other things, ensure that these
partner programs have a place at the table when State boards
decide the policies and priorities for the delivery of
workforce services through the one-stop delivery system.
Local boards, for their part, would be streamlined to
provide an increased voice for employers. Also, for community
groups and worker advocates in order to make the boards more
responsive to local needs. And the requirement that workforce
investment boards establish local youth councils would be
eliminated, though governors and elected officials would retain
the authority to create youth councils if they find them
useful.
Second, our proposal would strengthen the one-stop system
by creating a new way to fund and maintain the system. In the
past, the system has been hampered at times by turf battles
among service providers and the lack of a stable funding stream
for local one-stop centers. We propose to fund the one-stop
system by creating a separate funding stream for one-stop
infrastructure funding. This would alleviate a great deal of
the current local negotiation issues around operations and
would allow local areas to focus on what is most important,
meeting the needs of businesses and workers.
In addition, we want to ensure that all one-stop centers
make available a broad array of employment training and
supportive services. We particularly want to strengthen
connections between the one-stop delivery system and programs
such as adult education and Temporary Assistance for Needy
Families or TANF.
Third, we propose to eliminate obstacles to getting money
where it is needed by combining the WIA Adult Dislocated and
Wagner-Peyser funding streams into a single program. This
change would result in streamlined program administration at
the State and local level and reduce the current complexities
of management across three separate programs.
We also propose to permit more flexibility in the delivery
of services to adults in order to encourage greater
collaboration and integration of programs in the one-stop
setting.
Under current laws many State and local areas have
misinterpreted the sequence of service strategy to require
individuals to spend a specific amount of time in one tier of
service before moving on to the next tier of service. Under our
proposal, individuals would have the opportunity to receive the
services that are most appropriate for their unique needs.
We also propose to eliminate burdensome eligible trainer
provider requirements to create incentives for more training
providers to participate in the system.
Fourth, we propose to create a targeted approach to serving
youth. Currently funds for the WIA Youth Program are spread
very thinly across the country due to the statutory formula and
frankly, a lack of strategic focus. The administration
recommends reforming current WIA youth programs by focusing
resources on out-of-school youth through a targeted State
formula program and challenge grants to cities in rural areas.
Finally, we propose to address the concerns many States and
local areas have raised about the performance accountability
provisions in WIA. The 17 statutory performance indicators
under WIA Title I are simply too many and they are overly
burdensome. Through reauthorization, the number of WIA Title I
indicators would be reduced from 17 to eight, four for youth
and four for adults. As part of the administration's new common
performance measures initiative for employment and job training
programs. These indicators would cut across all Federal job
training programs and would have a common set of definitions
and datasets.
An exciting complement to our WIA reauthorization proposal
is our proposal to create personal reemployment accounts or
PRAs. These accounts would contain up to $3,000 and could be
used by unemployed workers for a purchase of variety of
training and supportive services. The personal reemployment
accounts would allow workers to custom design a reemployment
services package in accordance with their individual needs. For
example, some individuals may determine they need extensive
retraining in order to compete for jobs in a high-growth
industry. Others may need only to complete a short-term
computer course, while still others may need to purchase child
care or transportation in order to search for work.
By enabling unemployed workers to obtain the reemployment
services that they need most, PRAs would increase the
likelihood that individuals will get jobs quickly.
Under this proposal workers may also keep any unused
portions of their PRAs as reemployment bonuses to assist
workers in making the transition to employment.
The President's proposal would provide $3.6 billion in
additional resources to States to fund the PRA accounts in
fiscal year 2003 and it is anticipated these funds would permit
States to serve up to 1.2 million unemployed workers.
To conclude, this administration does believe strongly that
workforce investment is integral to economic development. And
we also believe that a better trained workforce promotes
economic growth. The administration's proposals to perform the
Workforce Investment Act and to establish innovative new
personal reemployment accounts show our commitment to enhance
economic growth and get Americans back to work.
Secretary Chao and I look forward to working with this
committee on these issues in the weeks and months ahead.
That concludes my prepared remarks and I would be happy to
take any questions you might have.
[The prepared statement of Mr. Findlay follows:]
Prepared Statement of D. Cameron Findlay
Good morning. Chairman Enzi and members of the Subcommittee, I
thank you for inviting me to testify on the Administration's Workforce
Investment Act reauthorization proposal.
wia reauthorization
In 1998, under the strong leadership of this committee, Congress
passed by a large bipartisan majority the Workforce Investment Act
(WIA). WIA was a groundbreaking piece of legislation that has sparked
important improvements in the delivery of employment and training
services nationwide. The authorization of appropriations for the Act
expires on September 30, 2003. Now our challenge is to build on these
reforms in order to make the Act even more effective and responsive to
the needs of States and local labor markets.
Over the past year, the Department of Labor has gone to
considerable effort to gather input from stakeholders on how the
workforce investment system can be strengthened to address the
challenges of globalization, technological advances, and the
demographic changes that the American workforce is currently facing.
The Department gathered public input on WIA reauthorization through a
series of public forums. The Department held twelve forums around the
country in the spring of 2002. In addition, the Department held a forum
focused on services to individuals with disabilities in June of 2002.
This latter forum was held in partnership with the Department of
Education, the Department of Health and Human Services and the Social
Security Administration. In addition, the Department held two forums on
Indian and Native American programs in the fall of 2002. In total, over
1,400 people attended the forums, and more than 240 of them presented
oral remarks. Moreover, in February of 2002 the Department sought
public comment on reauthorization issues in the Federal Register. Over
370 comments were received in response to this announcement. A summary
of the oral and written comments is available on the Employment and
Training Administration's web site.
The input from our stakeholders, our experience at the Federal
level, recent research findings, and reports issued by the General
Accounting Office have informed the Administration's proposal for WIA
reauthorization. The Administration's proposal is designed to continue
to transform the One-Stop Career Center delivery system into a cohesive
workforce investment system that can respond quickly and effectively to
the changing needs of employers and workers in the new economy and can
address the needs of special populations, including individuals with
disabilities. It builds on and improves what works, and fixes what does
not work. Finally, the proposal seeks to connect better with the
private sector and with post-secondary education and training, social
services, and economic development systems to prepare the 21st century
workforce for career opportunities and skills in high-growth sectors.
Many of these reforms are outlined in the President's Fiscal Year 2004
budget.
The Administration's WIA reauthorization proposal addresses five
key areas of reform. Those areas are: (1) creating a more effective
governance structure; (2) strengthening the One-Stop Career Center
System; (3) delivering comprehensive services for adults; (4) creating
a targeted approach to serving youth; and (5) improving performance
accountability.
CREATING A MORE EFFECTIVE GOVERNANCE STRUCTURE
The Workforce Investment Act's vision for implementing a
comprehensive workforce preparation and employment system depended on
the creation of an effective WIA governance structure. Under the Act,
State and Local Workforce Investment Boards are responsible for
overseeing WIA at the State and local levels, while youth councils
coordinate local youth programs and initiatives.
The Administration proposes to strengthen the role of the State and
local boards by, among other things, streamlining the membership
requirements. Under the Administration's proposal, One-Stop partner
programs will have a stronger role on the State Board to ensure their
investment in, and commitment to, the integrated service delivery
system.
How can a one-stop system affect economic development?--The State
Board will still be chaired and directed by business and will be
charged with setting policies and priorities for the One-Stop Career
Center system. Such policies include the development of minimum service
delivery standards, comprehensive outreach strategies, and economic
development strategies.
How would State board membership correct under usage?--Providing
State-level administrators of One-Stop partner programs with more
authority over One-Stop Career Centers will result in increased support
for and partner usage of the system. It will also create a more global
approach to addressing workforce needs in a community.
As for local boards, membership will be streamlined to provide an
increased voice for employer representatives, community groups, and
worker advocates. Too often in the past these boards have been unwieldy
and mired in administrative detail rather than focused on connecting
skilled workers with job opportunities. These changes will make the
boards more flexible and responsive to local needs. Local boards will
focus on strategic planning and policy development activities.
Numerous stakeholders at the WIA reauthorization forums across the
country indicated that Youth Councils have not always added value to
local system efforts as envisioned under WIA. Because the contribution
of Youth Councils has varied across local areas, the reauthorized
legislation will eliminate the statutory mandate for local Youth
Councils. Under our reauthorization proposal, Youth Councils will no
longer be required, but Governors and chief elected officials will be
provided the authority to create or continue Youth Councils if they are
valuable in their State or local area.
STRENGTHENING THE ONE-STOP CAREER CENTER SYSTEM
The cornerstone of WIA's workforce investment vision was the
institution of the ``One-Stop'' delivery system, designed to integrate
workforce programs and services under a single, comprehensive,
customer-focused workforce investment system. The Act stipulates that
the costs of those centers are to be shared by the One-Stop partners
programs that are overseen by various Federal agencies. In practice,
however, stakeholders overwhelmingly indicate that local One-Stop
systems are compromised by the lack of stable funding for local One-
Stop Career Centers, turf battles among service providers, and the
complexities of local cost allocation methodologies.
We believe that WIA reauthorization should create a new way to fund
the cost of the One-Stop system. One-Stop infrastructure funding would
alleviate a great deal of the current local negotiation issues around
operations and allow local areas to focus on what is most important--
meeting the service needs of businesses and workers. The Department of
Labor is analyzing current One-Stop operating costs and considering
different methods of funding the WIA infrastructure, in consultation
with other involved agencies. Our intention is not to increase
administrative overhead, but to clarify funding sources to promote
improved services to One-Stop customers. This funding would help cover
the cost of non-personnel operational items such as rent, general
operating expenses, and information technology.
In addition, we want to ensure that all One-Stop Career Centers
make a broad array of employment, training and supportive services
available to both job seekers and employers. We particularly want to
strengthen connections between the One-Stop delivery system and
programs such as Adult Education and Temporary Assistance for Needy
Families (TANF).
Proposal should clarify how these activities would be financed--
Often One-Stop Career Centers offer employment and training assistance
to a universal worker population, but do not offer a broad range of
products and services (such as work supports and other supportive
services) to low-wage workers. These services could improve with better
coordination among programs, including TANF, that target this
population. For instance, focusing on access to financial work supports
(such as Food Stamps and Medicaid) and retention and advancement
services (such as child care and training during nontraditional hours)
in a One-Stop setting will address the needs of both employers and
members of the country's low-wage workforce. These supports and
services will be funded by a variety of One-Stop partners and made
available through the One-Stop system.
DELIVERING COMPREHENSIVE SERVICES FOR ADULTS
The One-Stop delivery system created by WIA currently provides
adults and dislocated workers with an array of workforce services and
labor market information. However, the current system faces several
barriers to preparing a truly competitive labor force capable of
meeting the needs of the nation's employers. Two such barriers are,
first, separate funding resources and, second, a limited capacity to
respond effectively to individual needs.
The Administration's proposal will address the first issue by
combining the WIA Adult, WIA Dislocated Worker and Wagner-Peyser
funding streams into a single formula program. This change will
streamline program administration at the State and local level and
reduce the current complexities of management across three separate
``programs.'' Our proposal builds upon both current law and our recent
budget requests, which allow up to 20 percent and 40 percent,
respectively, to be transferred between the Adult and Dislocated Worker
funding streams by giving complete flexibility within one new
comprehensive program.
With respect to the second barrier, WIA reauthorization also should
include more flexibility in the delivery of services. This will allow
for greater collaboration and integration of programs in the One-Stop
setting. Under current law, many States and local areas have sometimes
misinterpreted WIA's ``sequence of service'' strategy (how a
participant moves from core to intensive to training services) to
require all individuals to spend a specific amount of time in one tier
of service before moving onto the next. In some extreme circumstances,
this has resulted in individuals being placed in low-paying jobs
without access to the additional services they need in order to succeed
in today's competitive economy.
WIA reauthorization should provide greater flexibility in the
delivery of core, intensive and training services. Individuals should
have the opportunity to obtain the services that are most appropriate
for their unique needs. While WIA must retain a strong emphasis on
returning unemployed individuals to work as quickly as possible, it
must also provide an individual access to a wide array of services that
he or she needs to obtain suitable employment, any of which could be
core, intensive or training, if necessary.
As you are well aware, the current eligible training provider
requirements have often had the unintended effect of reducing customer
choice due to the limited number of eligible training providers in a
particular local area. Many of them consider the system created under
WIA burdensome and have opted out. The Administration's proposal will
provide Governors with greater authority to determine what standards,
information and data are required for the eligible training providers
in their States. This change will result in an improved eligible
training provider system and ensure the continuation of such key
principles as customer choice and provider accountability, while also
making it easier for training providers to participate in the system.
We also propose to improve upon Individual Training Accounts by
making them more flexible and responsive to individual needs. In
addition, we want to incorporate the Personal Reemployment Account
concept featured in the President's growth package by authorizing the
use of such accounts as part of WIA. Later in my testimony, I will
discuss these accounts further.
CREATING A TARGETED APPROACH TO SERVING YOUTH
Currently, funds for the WIA youth program are spread too thinly
across the country due to the statutory formula and lack of strategic
focus. Over the past year, we have held numerous discussions with youth
practitioners, academics and other experts on how best to focus the
Department of Labor's youth dollars. We also worked closely with the
Department of Education to ensure our strategies and priorities do not
overlap. As a result, the Administration recommends reforming current
WIA youth programs by focusing resources on out-of-school youth through
a Targeted State Formula grant program and Challenge Grants to cities
and rural areas.
The Targeted State Formula program will be used at the local level
to serve out-of-school youth. In addition, the Department will award
``Challenge Grants'' on a competitive basis to cities and local areas,
with funds going to programs proven effective at serving out-of-school
youth as well as high-quality programs that provide activities in a
non-school setting that lead to high academic achievement.
IMPROVING PERFORMANCE ACCOUNTABILITY
Finally, we propose to address the concerns many States and local
areas have raised about the performance accountability provisions in
WIA. The seventeen statutory performance indicators under WIA title I
are perceived to be too numerous and overly burdensome. Through
reauthorization, the number of WIA title I indicators will be reduced
from 17 to 8 (4 for youth and 4 for adults). As part of the
Administration's new initiative that creates common performance
measures for employment and job training programs, these indicators
will cut across Federal job training programs and will have a common
set of definitions and data sets. This will help to integrate service
delivery through the One-Stop Career Centers at the local level. In
addition, Governors will have the authority to add measures for use
within their States as needed to manage their programs and ensure high
performance.
SUPPORTING JOB GROWTH THROUGH PERSONAL REEMPLOYMENT ACCOUNTS
In January, President Bush announced a comprehensive economic
growth and jobs package to help the economy grow and create millions of
jobs and deliver critical help to unemployed citizens.
One proposal that would immediately help unemployed men and women
get back to work is the proposal to establish Personal Reemployment
Accounts. The Administration urges quick action on this proposal. These
accounts will be worker-managed, contain up to $3,000, and will be used
for the purchase of a variety of reemployment services or as a bonus
for obtaining early reemployment. They will empower individuals by
giving them more flexibility, personal choice and control over their
job search and career. They will be administered through the One-Stop
Career Center system established under WIA.
Because experience has shown that unemployed workers have a wide
range of needs, the Personal Reemployment Accounts will allow each
worker to design a custom reemployment services package in accordance
with his or her needs. For example, some individuals may determine they
need extensive retraining in order to compete for jobs in a high-growth
industry, others may only need to complete a short-term computer course
in order to return to work quickly; still others may need to purchase
child care in order to search for work.
By enabling unemployed workers to obtain the reemployment services
they need most, they will likely return to work sooner and in a job for
which they are more prepared and better skilled.
IMPLEMENTATION OF THE ACCOUNTS--INDIVIDUAL AND STATE FLEXIBILITY
The President's budget included one-time special funding of $3.6
billion in additional resources to States to fund the Personal
Reemployment Accounts in fiscal year 2003. It is anticipated that these
funds will allow States to serve a total of at least 1.2 million
unemployed workers during fiscal years 2003 and 2004.
The receipt of account funds will not adversely affect an
individual's ability to be eligible for and receive Unemployment
Insurance benefits. The accounts are targeted at those newly unemployed
workers eligible for at least 20 weeks of Unemployment Insurance who
have been determined by the States to be likely to exhaust UI benefits
before finding a new job. In addition, States will have the option of
making accounts available to certain current UI claimants who were
previously found likely to exhaust UI or to certain workers who have
already exhausted their UI benefits.
Subject to broad State-established safeguards to prevent abuse,
account holders will be able to use the funds to purchase intensive
reemployment services (such as counseling and case management),
training, and supportive services (such as transportation and child
care) available either through the One-Stop Career Center system, from
other sources outside the One-Stop system, or in combination. This is a
flexible way for unemployed workers to obtain access to services and
benefits that they need to return to work faster.
Another important aspect of the proposed reemployment account is
the ``Reemployment Bonus.'' New UI claimants who become reemployed by
the thirteenth week for which UI benefits are paid will receive any
cash remaining unspent in their account as a Reemployment Bonus.
Similarly, the groups added at State option--certain UI claimants who
were previously identified as likely to exhaust UI and certain UI
exhaustees--that become reemployed by the thirteenth week of the
effective date of the account can also receive the Reemployment Bonus.
The bonus would be paid to the individual in two installments: 60
percent at employment and 40 percent after six months of job retention.
Individuals who do not find employment within the thirteenth week rule
would not be able to ``cash out'' their account but would continue to
be able to purchase intensive reemployment, training and supportive
services for up to one year from the effective date of the account.
LEARNING NEW LESSONS THROUGH INNOVATIVE SERVICE STRATEGIES
At various times from 1984 to 1989, four States (Illinois, New
Jersey, Pennsylvania, and Washington) conducted controlled experiments
to determine the effectiveness of providing reemployment bonuses to
unemployed workers. In these experiments, a random sample of new UI
claimants were told they would receive a cash bonus if they became
reemployed quickly.
The Department of Labor's evaluation of the reemployment bonus
experiments conducted in the States of Washington, New Jersey, and
Pennsylvania showed that a reemployment bonus of $300 to $1,000
motivated the recipients to become reemployed, reduced the duration of
UI by almost a week, and resulted in new jobs comparable in earnings to
those obtained by workers who were not eligible for the bonus and
remained unemployed longer. Similarly, a study of an experiment
conducted in Illinois found that a reemployment bonus of $500 reduced
the duration of unemployment by more than a week and did not lead to
lower earnings at the worker's next job.
CONCLUSION
Workforce investment is an integral part of economic development,
and a better-trained workforce promotes economic growth. I believe the
Administration's proposals for reforms to the Workforce Investment Act
and Personal Reemployment Accounts respond effectively to both current
economic conditions and future trends. Secretary Chao and I look
forward to working with this committee as we move ahead.
This concludes my remarks. I would be glad to respond to any
questions you have. Thank you.
Senator Enzi. Thank you for your presentation.
I also want to thank you for the opportunity that I have
had to meet with you and members of your staff to go over some
of the things in the Workforce Investment Act and some plans
that you have and the extra detail has been extremely helpful
and I would encourage members of the committee to do the same,
and would hope that you would work with them as well.
Mr. Findlay. I would be delighted to.
Senator Enzi. I always have to ask some questions about
rural and frontier areas because Wyoming is the least populated
State in the Nation, so we can kind of take it from that
prospective.
Distances and limited access to training providers have
been a barrier to successful implementation of WIA in rural and
frontier areas. And since we cannot do anything to change the
distances and do not seem to be able to do anything about
changing the size of the towns, what plans do you have to
propose improving rural access to services?
Mr. Findlay. I think the way that this proposal will
improve access for people that live in rural areas is that it
will enhance the State flexibilities that are necessary to have
a effective workforce system.
As you said or Senator Murray said, I can't remember, one
size does not fit all. You need different strategies in New
York City and in rural Wyoming. So we are trying to get
authority to State workforce boards to design strategies that
are most effective for their State and also to local workforce
investment boards to customize strategies for particular
localities.
So I think that the key to serving rural areas better than
we have is to give flexibility to States and to localities to
design their strategies to fit best the needs of the area.
Senator Enzi. Could you expand a little bit on the role of
State boards versus the local boards in your WIA proposal? If
the State boards are given more control how will you ensure
that the local workforce needs are met?
Mr. Findlay. As you know Senator, there have been a lot of
concerns over the past few years about how cumbersome the State
and local workforce investment boards have been. At the State
level some of these boards include 50 or 60 people. As anyone
who has ever served on a committee knows that is a very large
group to act effectively.
So at the State level we would propose to streamline the
boards and also to give a greater role to the one-stop partner
program so they will be able to participate in the overall
strategic planning for the State.
As for local boards, they have also become too big. Again,
some of these local boards are 40 or 50 people. And more
fundamentally, the local boards have devolved into arguing
about operational issues rather than the strategic and policy
issues that they ought to be worrying about.
The local board ought to decide what is the best strategy
for getting people training in this area. Instead what they
have ended up talking about are how do we fund our one-stop
centers and issues like that.
So at the local level we want to enhance the role of
employers who, after all, are the ones that actually have jobs
and know what training will be effective. And we want to focus
those local boards on the sort of strategic and policy issues
rather than the operational issues.
Senator Enzi. We have talked about the boards and the
employers. We also need to empower workers to choose services
that are best suited for their workforce development needs. How
does the proposal give individuals more flexibility to select
the services that are right for them?
Mr. Findlay. I think, under the WIA proposal, we are
continuing to refine the idea of individual training accounts
and we are going to convert them to be career scholarships that
will provide even more flexibility for individual workers.
But I think this is a good time to talk about our proposal
for personal reemployment accounts, which really are a very
innovative way to give workers a lot of choice and flexibility
in choosing the services that they want.
With these PRAs, a worker could decide to spend all of the
money on training. The worker could decide that he or she
wanted to spend part of the money on training and part on child
care while he or she works for work. They can spend part of the
money on transportation.
We think that people should be entrusted to make choices
about their own lives and the PRAs are a good example of a way
that we intend to do that.
Senator Enzi. Thank you. Senator Murray.
Senator Murray. Thank you, Mr. Chairman.
I want to welcome Senator Jeffords to the committee, too.
He has done a great deal of work on workforce investment and I
really appreciate his help and work with us as we go through
this reauthorization.
Mr. Secretary, the fiscal year 2003 Omnibus Appropriations
Bill that was just passed by Congress and signed into law by
the President cuts $655 million from WIA activities from the
previous year's bill. And the President's fiscal year 2004
budget does not restore that funding.
The administration has stated it can sustain these cuts and
still retain services due to a funding carryover in WIA formula
programs. But that is contrary to a recent GAO report finding
that States and localities are spending WIA funds at a faster
rate than the Act requires.
How does your administration's plan ensure that the
delivery of WIA services are not impacted despite these large
funding cuts, increased demand and the GAO's finding that any
so-called carryover is already being spent?
Mr. Findlay. That is a lot to respond to. Let me try and
take it in pieces.
We respectfully disagree with the GAO as to whether this
money is being spent. The GAO said that the money was
obligated.
We actually track expenditures and the fact that money is
obligated does not mean that it is being spent. It means that
it is committed to being spent some time in the future.
So we think the focus ought to be on training and services
getting to workers. And we are confident that our budget levels
will ensure that the level of services will be held constant
over the years.
As you say, this is because there is this $1.7 billion a
year carryover from 1 year to the next, and it has happened 2
years in a row now, where States have been unable to spend
funds that was allocated to them.
This actually points out why it is so important to
reauthorize WIA. WIA was a great law but there were some
difficulties with WIA in terms of organizing these local boards
to spend the money on the people that we want to get the money
to. As boards have tussled over operational issues sometimes
the money has carried over or even lapsed.
In the State of Washington, for example Senator Murray, the
State of Washington carried over money from program year 1999
and actually had to turn it back to the Federal Government. It
could not even carry it over because it had held it so long.
The State of Washington has also carried over money----
Senator Murray. Is that not a function though that they
were just beginning to implement some of the programs that were
being put in place, that they had gotten this great big new law
and they were trying to figure it out? I think it was not a
function of that they could not use it. It was a function of
trying to transfer to a new program.
Mr. Findlay. That may be the case but the fact is the money
was not used and so it is still available for the next year.
Senator Murray. By Washington State?
Mr. Findlay. By Washington State. It was available for
Washington State for several years in which they were unable to
get it out to the people who needed it and so it lapsed back to
the Federal Government. And that is even separate and apart
from the money that is carried over year to year. I think in
the State of Washington the carryover, in the most recent
numbers I have, were $26 million that the State was unable to
spend. Now we want that money to be spent and we would like to
see it fill up.
Senator Murray. But in 1999 Washington State was actually
using JTPA, which is why.
Mr. Findlay. But Washington has had carryovers under WIA,
as well.
Senator Murray. Because they were using JTPA funds.
Mr. Findlay. I guess the point is the money is there. The
people are not being denied services because of a lack of
funding. they are being denied services for another reasons.
Senator Murray. I am just worried that we get into this
accounting gimmick where we say we had this big change in
program, we moved from JTPA to WIA. There are carryover funds,
therefore we can cut.
I am going to tell you again, we have 80,000 jobs lost in
the State of Washington and people are scrambling to get people
into jobs. There are not necessarily jobs there today. And I am
worried that if we take a look at a time when we were in
transition as the mark as to how much money is being used, we
will not fairly and accurately look at what is actually going
to be used now that people are really getting into using these
funds after the transition.
Mr. Findlay. I think we agree on one thing, Senator Murray,
and that it is that we completely agree that we should not be
worrying about these accounting issues and that what we ought
to be focusing on is figuring out ways to get money to the
people, the training and services to the people that need them.
That is why our WIA reauthorization proposal tries to
eliminate some of these rigidities that have kept money say in
one pot where it could not be transferred to another pot when
people needed assistance.
So I think that the sort of carryovers that we have seen in
Washington and other States point out why it is so important to
reform WIA to eliminate these sorts of rigidities.
Senator Murray. Which we did and we are all working
through, so I will just tell you I am very concerned about
that.
My time is limited so let me ask you about the youth
policy. Your proposal shifts the focus of youth policy in WIA
from both out-of-school and in-school youth to primarily out-
of-school populations. Right now about 30 percent of the money
must be used for out-of-school youth. The rest is used to
partner with schools to motivate at-risk youth to stay in
school and allow kids to get the skills that they need to
compete for the jobs of tomorrow.
You propose that 75 percent of youth funds be used to serve
out-of-school kids. Reaching out-of-school youth is important.
I think we all agree on that. We are concerned about juveniles
who are on the streets. They need help in reconnecting with the
education system and getting needed skills so they can find
employment.
But with the proposed elimination of the Youth Opportunity
Grant Program and the proposed elimination of the statutory
requirement for youth councils and the shift in resources to
out-of-school youth, what is going to be left for in-school
programs?
Mr. Findlay. In developing our reauthorization proposal, we
worked very closely with the Department of Education to try and
avoid the sort of duplication and turf battles that have taken
place over the past few years. What we decided made sense was
for the Department of Labor to focus its resources on the
population that most needs assistance, and that is out-of-
school youth.
And so our proposal does target our funds to out-of-school
youth, and in particular the most at-risk youth. The target
formula grants would be focused on school dropouts, on kids who
are in the criminal justice system, and those sorts of very
high at-risk youth. We feel like we have got to get those
people into the economic mainstream before we do----
Senator Murray. So philosophically, you are looking at the
out-of-school youth and expecting the Department of Education
to do in-school. I guess I would be more comfortable with that
if you were not dramatically cutting the Department of
Education at the same time.
I am going to tell you who gets left behind in that is the
kids who do not have any motivation to go on to college, who do
not have necessarily the skills, and these kinds of programs
have to be addressed. They are not being addressed by the
Department of Education. They are trying to do No Child Left
Behind and all of these other things, ad cutting back after
school and everything.
So I think your philosophy may sound reasonable but in
actuality, the funding is not going to be there for the
Department of Education to pick up what you are handing them.
Mr. Findlay. I do not want to speak about the Department of
Education's programs but I can say that in a world of finite
resources that, given that we do not have infinite resources to
spend in this area, we think that we should target our youth
funds on the most at-risk youth, the ones that are most likely
to end up in the criminal justice system or find themselves
unemployed for many years. And if we can get these kids into
the economic mainstream, we will have accomplished something.
I should also say that we do make some allowances for
serving in-school youth but in out-of-school programs because
we just do not feel like there should be that kind of
duplication in the schools, where both the Department of Labor
and the Department of Education are there.
Senator Murray. Mr. Chairman, I know that we have a vote
and Senator Jeffords wants to get his questions in. I do have a
number of questions about the PRAs, as well as a number of
concerns about the communities, about the flexibilities. It
sounds great, but $3,000 is not enough to get actual training.
Where is that money going to come from? What account will be
robbed to pay for it? And most importantly, how are we going to
ensure that that money is actually being used to help people
get jobs that give them a better income and it does not just
force them into cleaning cars or working at McDonald's because
they get the easy cash to begin with? And then we have left a
generation of workers without the skills to get where they are
going.
So I have a number of questions about that. If I do not
have an opportunity to ask them, I will submit them for the
record. But I appreciate the opportunity, Mr. Chairman.
Mr. Findlay. Thank you, Senator. We will be happy to do our
best to answer them.
Senator Enzi. I am pleased to be joined by the Senator from
Vermont, Senator Jeffords, a very active member of the
committee. If you want to make a statement and ask questions,
the floor is yours.
Senator Jeffords. I would like to say that I sympathize
with the questions that were asked by Senator Murray. I spent a
great deal of time in setting up the programs that we presently
have, and visited China and Germany and other areas to see how
they handle these kind of situations. And those of us who wrote
WIA felt very strongly that voc-ed and adult-ed and vocational
rehabilitation must be coordinated with job training programs.
I would like to hear your assessment of that coordination
and your suggestions as to how that coordination can be
improved from the Department of Labor's perspective.
Mr. Findlay. One of the themes that runs through this
year's reauthorization proposal is to eliminate silos and
eliminate rigidities that have prevented services getting to
the people that need them. It has gone beyond our proposal to
combine several funding streams within WIA.
We also are seeking to establish linkages with other
departments that provide similar services. I mentioned TANF as
one possibility. We also are working with the Department of
Education to establish linkages between all of their programs
and our one-stop system.
So I think that is one of the themes in our reauthorization
proposal is to avoid the kind of segmenting that we do here in
Washington and provide flexibility to those people on the
ground who are actually out providing the services.
Senator Jeffords. A good portion of the testimony focuses
on the $3.6 billion personal reemployment account proposal that
the administration would like included in the comprehensive
growth package. How do you justify spending $3.6 billion on
setting up a new one, a temporary program alongside WIA, when
the administration is cutting the overall job training budget?
Mr. Findlay. Senator, I guess I would challenge your
premise that we are cutting the overall job training budget
because, as I discussed with Senator Murray, the level of
services will be held constant because of the $1.7 billion
carryover that is out in the system for the second year in a
row.
But the PRAs we view as a different delivery mechanism, an
innovative new delivery mechanism, to get services to workers
that need them. The $3.6 billion is not being taken out of the
WIA system. It is in addition to the WIA system.
Senator Jeffords, I guess I am a little confused why you
set up two job training programs? What is the necessity?
Mr. Findlay. We are not setting up another job training
program. They can use the PRA to access services through the
one-stop. We do not have a separate training system set up for
PRAs. We do not have a separate employment services system set
up. They can just use this different delivery mechanism to
access the same services.
Senator Jeffords. I am a little confused on that.
How much of the $3.6 billion would be spent on
administrative costs?
Mr. Findlay. It would depend completely on how the States
set up the system. One of the nice things about this program is
that we would allow States to be laboratories of democracy.
Each State could set up a PRA system in the way it wanted
subject to certain concerns we would put upon them. So I think
it is impossible to answer the question of much would be spent
on administrative costs.
I think the idea is that of that $3.6 billion, none of it
would be on administrative costs because that money would go
out to the people to use through the existing system.
Senator Jeffords. In regard to youth training, you mention
a proposal to create a new targeted State formula program in
addition to challenge grants. How will these programs be
funded? And will these have separate funding streams? How are
they going to work?
Mr. Findlay. I think that of the youth funding stream--what
is the percentage? 75 percent would go by formula and 25
percent through these challenge grants. As I discussed earlier,
the formula funds would be targeted at out-of-school youth but
the challenge grants could be used for innovative programs by
cities or rural localities for whatever needs they have.
Senator Jeffords. How will Job Corps be integrated into
your youth proposal?
Mr. Findlay. Job Corps would be essentially untouched by
this proposal. It would be a separate system in the way it is
now, really. But we do integrate Job Corps into the WIA by
identifying people that would be good candidates for Job Corps
through the one-stop system among other places.
Senator Jeffords. So they will be in a separate funding
stream?
Mr. Findlay. I think Job Corps is a separate funding
stream.
Senator Jeffords. They would be maintained there?
Mr. Findlay. Yes.
Senator Jeffords. I agree with you that our out-of-school
youth must be a focus. However, at the same time we must
continue to provide opportunities for school youth, those youth
in particular who are on the verge of dropping out. Have you
considered creating some type of an apprenticeship program for
in-school youth?
Mr. Findlay. As I said, money could be used for programs to
serve in-school youth and it just would not be spent through
the school system. It would be for out-of-school programs for
in-school youth. So I guess the answer is yes, that we would
consider programs for in-school youth but just not provided
through the school.
Senator Jeffords. In the Department of Labor's budget
request I noticed that the reintegration for youth offenders
program was eliminated. The fastest growing high schools in my
State are youth corrections facilities. In Vermont between the
ages of 18 and 25, one in seven males are in the youth
corrections facility. I do not think that this is unique to
Vermont.
I would ask you to re-examine the elimination of this
program. I think it is a serious mistake.
Mr. Findlay. We would be happy to take a look at that,
Senator Jeffords. Let me tell you what our thinking was.
I think it goes back to something I said earlier, that we
have a lot of different job training programs that are
segmented throughout the Department and, in fact, throughout
the United States Government. And one of the things we want to
do is to break down the silos. We do not want to have specific
little job training programs that may be accumulating funds and
cannot be spent on other things.
The best example of this proposal to consolidate the three
adult, dislocated and the Wagner-Peyser funding streams, where
in many cases there is lots of money in one funding stream and
none in another but we cannot transfer it over.
So our theme in this year's proposal is to break down these
rigidities and permit more flexibility for providers.
Senator Jeffords. I have no quarrel with that. I just want
to make sure you understand that in this Nation we are having
terrible troubles with youth ending up in trouble with the law.
And if we do not have the way to first interdict before they
get to the graduation level; and second, to take care of them
after they have had the problems, we are not going to service a
huge number.
Mr. Findlay. We could not agree more and that is reflected
in our youth proposal, because we have proposed to target the
youth funds, among other things, on youth who are involved in
the correctional system.
Senator Jeffords. Thank you.
Mr. Findlay. Thank you.
Senator Enzi. Thank you very much for your testimony and
the questions that you have answered.
We all have some questions that are unanswered and I
suspect that other members of the committee do, too. So we will
leave the record open so that written questions can be
submitted, and we will appreciate your answers on that. We will
make sure that the answers are circulated.
Thank you for your attendance, and Senator Jeffords.
And the meeting is adjourned.
[Additional material follows.]
ADDITIONAL MATERIAL
Statement of the American Network of Community Options and Resources
(ANCOR)
The American Network of Community Options and Resources (ANCOR)
appreciates this opportunity to provide comments and recommendations to
the Senate Health, Education, Labor, and Pensions Subcommittee on
Employment, Safety, and Training on the reauthorization of the
Workforce Investment Act of 1998 (WIA). ANCOR is the national
organization representing more than 750 private providers of community
living and employment supports and services to more than 360,000
individuals with mental retardation and other disabilities.
WIA holds the promise of assisting all Americans including
individuals with mental retardation and other significant disabilities
to obtain and retain employment in their communities through a
comprehensive, collaborative system of public and private partners. WIA
is an important part of our nation's fabric to address the employment
of individuals with disabilities. Indeed, many individuals with mental
retardation and other significant disabilities want to work and are
able to do so, given appropriate supports and services.
ANCOR members are committed to assisting the individuals they
support in their chosen employment. Yet, the current workforce
investment system is not working for people with disabilities as
Congress had intended. Individuals with disabilities have faced
numerous barriers when attempting to access the workforce investment
system. ANCOR members and other community employment providers who want
to participate in the system and assist individuals with disabilities
to gain and retain employment have also faced challenges, making it
extremely difficult even precluding them from assisting individuals
with disabilities under the workforce investment system.
Despite the challenges, ANCOR and its members remain committed to
WIA and believe reauthorization presents an opportunity to strengthen
WIA the nation's comprehensive employment system to meet the employment
needs of individuals with disabilities and assist private providers in
being true partners in the nation's workforce investment system. ANCOR
believes that the workforce investment system must be re-tooled, with a
direct focus on individuals with disabilities and their needs to obtain
and retain employment. ANCOR also believes that WIA must include a
focus on the direct support professional workforce crisis, as these
workers provide the necessary community living and employment supports
that enable individuals with disabilities to live and work in the
community.
As the Senate considers reauthorization of WIA, ANCOR believes that
Congress must ensure that the nation's workforce preparation and
employment system fulfills its promise to individuals with disabilities
and create the true partnership with private providers supporting
individuals with disabilities that Congress envisioned by: Putting the
employment of people with disabilities at the forefront of WIA;
Recognizing community employment provider expertise. Workforce
Investment Boards and One-Stops must make effective use of the valuable
expertise that local community providers have to offer; Increasing
collaboration of VR and other programs; Ensuring physical and
programmatic accessibility of all One-Stop Career Centers; Meeting the
individualized needs of individuals with the most significant
disabilities; Addressing the direct support workforce crisis facing
private providers; and, Providing Adequate Funding for One-Stop
Services.
ANCOR offers the following comments and recommendations in these
areas to better strengthen the workforce investment system.
I. PUTTING THE EMPLOYMENT OF PEOPLE WITH DISABILITIES AT THE FOREFRONT
OF WIA
An underlying principle of WIA is universal access any individual
who can benefit from the workforce investment system and its programs
and services may access the system. Unfortunately, all too often the
concept of universal access has been in name only and not in practice.
While there has been only a short implementation period from which to
draw conclusions, it is clear that individuals with disabilities have
not benefited from WIA to the extent Congress envisioned. Individuals
with disabilities cannot physically access One-Stops. Service delivery
and programs have not focused on the needs of individuals with
disabilities. The focus on core and intensive services over training
has left many individuals with disabilities and especially individuals
with the most significant disabilities without the necessary supports
and services to gain and maintain employment. In short, there is much
that can be improved within WIA and the workforce investment system to
better meet the needs of individuals with disabilities and will have
the ultimate effect of improving the nation's workforce system for all.
The employment of individuals with disabilities must be at the
forefront of WIA, its programs, and its services. WIA must be re-
tooled, so that the nation's workforce investment system effectively
addresses the short-term and long-term employment needs of individuals
with disabilities.
Recommendation: All WIA programs and services must emphasize
individuals with disabilities and their employment needs.
Recommendation: Section 106 of WIA should be amended as follows:
The purpose of this subtitle is to provide workforce investment
activities, through statewide and local workforce investment systems,
that increase the employment, retention, and earnings of participants,
including individuals with disabilities, and increase occupational
skill attainment by participants and, and a result, improve the quality
of the workforce, reduce welfare dependency, and enhance the
productivity and competitiveness of the Nation.
Recommendation: ANCOR recommends creating a third adult program,
``Adults with Disabilities'' under Chapter 5 of WIA, with dedicated
resources to fund new and existing supports and services specific to
individuals with disabilities. Funding must be from new budget
authority, not existing programs.
II. RECOGNIZE COMMUNITY EMPLOYMENT PROVIDER EXPERTISE
Under WIA, Congress established a public-private partnership from
which all job seekers could benefit. Critical to the success of WIA's
public-private partnership is actively involving all relevant
stakeholders in the system. Unfortunately, state Workforce Investment
Boards (SWIBs), local Workforce Investment Boards (LWIBs) have failed
to adequately and effectively involve an essential partner: community
organizations with experience in providing employment supports and
services to individuals with mental retardation and other significant
disabilities (community employment providers).
Congress understood the important role that community employment
providers play in assisting job-seekers with disabilities and included
provisions in WIA that community organizations be represented on both
SWIBs and LWIBs. To address the needs job seekers with disabilities,
Section 111 (b)(1)(C)(v) of the Act states that SWIBs shall include
representatives of organizations that have experience and expertise in
the delivery of workforce investment activities, including community
organizations within the State [emphasis added]. Section
117(b)(2)(A)(iv) of the Act states that membership of each local WIB
shall include representatives of community organizations including
organizations representing individuals with disabilities for a local
area in which such organizations are present [emphasis added].
Unfortunately, many state and local boards do not fully understand
the need to involve community employment providers. While the law's
intent was for WIBs to create new partnerships to assist local
officials in their planning, development, implementation, and resource
coordination responsibilities, the practice has fallen far short.
ANCOR's private providers report frustration in gaining access to both
state and local WIBs. Many state and local WIBs do little outreach to
involve such organizations, nor recognize community employment
providers that wish to participate. For example, many WIA grant
programs encourage state or local boards to form consortia with
community organizations to apply for available grant funding. However,
community employment providers report that their WIBs do not and will
not work with them to apply for specific WIA grants. In fact, overall
there is little interest in involving these community organizations.
Not only do many WIBs show little or no interest in involving these
community employment providers, but as new partners, these providers
are often viewed as threatening the old way of doing business.
Preserving the status quo was not a goal of WIA. In fact, a new
collaboration was envisioned one that would make effective use of
expertise to improve the delivery of services to people with
disabilities. WIA offered the hope of opening up a workforce
preparation and employment system that invited efficiencies,
challenging states and localities to improve services. However, a
highly politicized environment all too often remains one that is intent
upon preserving old collaborations and viewing community employment
providers' expertise as competition. The result does not improve
services to people with mental retardation and other disabilities.
ANCOR understands that the Department of Labor's (DOL) is proposing
to streamline membership on state and local WIBs. If this nation is
truly committed to assisting individuals with disabilities in obtaining
employment, it is imperative that all SWIBs and WIBs have
representation from community employment providers. ANCOR employment
providers have continuously demonstrated that people with mental
retardation and other severe disabilities can work and be productive
employees. They have a long history in working with employers and have
demonstrated to local businesses the benefits of hiring people with
mental retardation and have experience in tailoring jobs for those
previously unseen as potential employees. In addition, community
employment providers can serve a dual role they are employers
themselves and have a first-hand understanding of their state and local
workforce needs.
Local One-Stops must also reach out to and involve community
organizations. ANCOR private providers are excellent and appropriate
resources for One-Stops and can provide the missing training,
employment services, and needed wrap-around supports to sustain
successful employment of people with disabilities. Being on the front
lines each and every day, they have developed creative approaches to
jobs and job-training options that enable those with the most
significant disabilities to become productive employees. Unfortunately,
many One-Stops are reluctant to include ANCOR private providers as part
of One-Stops or even refer individuals to them for necessary services.
One-Stops must draw upon community employment providers as partners in
the One-Stop system.
Recommendation: Amend WIA to require community employment providers
as mandatory partners on state WIBs. Section 111(b)(1)(C)(v) should be
amended as follows:
(v) representatives of individuals and organizations that have
experience and expertise in the delivery of workforce investment
activities, including chief executive officers of community colleges,
community employment providers who offer supports and services to
individuals with disabilities, and other community-based organizations
within the State;
State associations of private provider organizations exist in most
states and, if needed, SWIBs should reach out to solicit involvement of
such organizations.
Recommendation: Amend WIA to require community employment providers
as mandatory partners on local WIBs. Section 117(b)(2)(A)(iv) should be
amended to read as follows:
(iv) Representatives of community employment providers who offer
supports and services to individuals with disabilities and other
community-based organizations representing individuals with
disabilities and veterans, for a local area in which such organizations
are present);
Recommendation: Require State Departments of Workforce Development
Authorities to enforce Section 117(b)(2)(A)(iv), as amended.
Recommendation: Require local WIBs to outreach to community
employment providers for local activities, such as applying for grants.
Again, state provider associations are excellent resources for local
WIBs to utilize to identify employment providers in their local area.
Recommendation: Require One-Stops to partner with community
employment providers serving individuals with mental retardation and
other severe disabilities.
Recommendation: The Department of Labor and states should create
incentives to encourage One-Stops to serve individuals with
disabilities and partner with community employment providers.
III. PROMOTING COLLABORATION WITH OTHER PROGRAMS
The state vocational rehabilitation (VR) program is a mandatory
partner under the One-Stop system. Including VR as a mandatory partner
was intended to ensure that individuals with disabilities including
those with the most significant disabilities have effective and
meaningful participation in the One-Stop system and have full and
complete access to all of the services provided through that system.
One-Stops can respond effectively to some people with disabilities;
however, individuals with severe disabilities cannot depend upon the
One-Stops alone. The VR program provides access to other programs and
services specific to the needs of individuals with mental retardation
and other severe disabilities, such as supported employment and
assistive technologies.
While the VR program is flawed, it is important that the program
itself continue to be a mandatory partner. However, it is still unclear
how well the VR and the workforce investment system are working. While
ANCOR understands that some state and local VR agencies are working
effectively with WIBs and One-Stops, many more are not working well
together. It is important that these two systems work collaboratively.
One-Stops often facilitate access to VR and VR facilitates access to
community employment providers who have unique expertise to assist
individuals with the most significant disabilities to become employed.
And while the VR program has its flaws, ANCOR also believes that the VR
program must remain a distinct entity parallel to, but separate from
the One-Stop system with separate and adequate Federal funding. VR's
separate system of supports, which is more specialized than the broader
array of services which One-Stops are capable of providing and provides
access to additional employment options and providers, is necessary to
support successful employment for some people with disabilities.
Without the separate VR system, people with severe disabilities have
even less of a chance to work.
At the same time, individuals with significant disabilities can
benefit from including other public partners that administer Federal
and state benefit programs specific to individuals with significant
disabilities. These partners include state and local Medicaid, mental
retardation/developmental disabilities, housing, transportation, and
Social Security, and Temporary Assistance to Needy Families (TANF)
agencies. While these programs and funding should remain separate,
including these disability-specific programs will enhance the creation
of a seamless system for people with disabilities a goal of WIA.
Furthermore, while ANCOR believes that individuals with
disabilities benefit from VR and other public disability programs
partnering with One-Stops, funds designated to serve individuals with
disabilities must continue to be dedicated for these purposes only.
Recommendation: The VR program must remain a separate program under
WIA, with separate, dedicated funding.
Recommendation: WIA should require other state disability-specific
programs (including state and local Medicaid, mental retardation/
developmental disabilities, housing, transportation, and Social
Security, and TANF agencies) to be mandatory partners in the One-Stop
system to better serve individuals with disabilities. Funding for these
programs must remain separate.
IV. ENSURING PHYSICAL AND PROGRAMMATIC ACCESSIBILITY OF ONE-STOPS
Individuals with disabilities including those with mental
retardation and other significant disabilities remain the largest
untapped pool of prospective employees in the nation. Individuals with
the most severe disabilities want to work and, as ANCOR members have
long demonstrated, they can work when provided with appropriate
services and supports. Obtaining employment supports and services
through One-Stops have been a challenge for many individuals with
disabilities and, in particular, individuals with the most significant
disabilities. Barriers to accessibility are keeping many of them
looking in from the outside.
When seeking services from One-Stops, the first step is physical
accessibility getting inside the door of the One-Stop. Once they are in
the door, individuals with disabilities must have access to needed
services and supports. WIA requires physical and programmatic access to
One-Stops and their services, as does the Americans with Disabilities
Act (ADA) and Sections 504 and 508 of the Rehabilitation Act of 1973,
as amended services. Many One-Stops remain physically inaccessible to
individuals with disabilities. Individuals with communicative,
cognitive, and sensory disabilities must have access to assistive
technologies, alternative formats, accessible communications equipment,
and other accommodations necessary to facilitate participation of
individuals with mental retardation and other disabilities in
employment services and training offered by One-Stops.
ANCOR understands from anecdotal reports that some One-Stops have
simply stated that they do not serve people with disabilities and
automatically refer them to VR, thus eliminating the need for them to
be physically and programmatically accessible. ANCOR believes that
Congress did not envision this as part of WIA and this thinking goes
directly against WIA's principle of universal access. Accessibility of
One-Stop Centers and services must be a primary goal of One-Stops and
their partners. Along with that, responsibility for expenses associated
making One-Stops accessible should be borne by the One-Stop.
Recommendation: The workforce investment system must ensure
physical and programmatic accessibility of all One-Stops and the
workforce investment system must be inclusive of all individuals with
disabilities.
Recommendation: All One-Stops must be physically accessible to
individuals with disabilities.
Recommendation: One-Stops must have and use their own dedicated
funding to achieve physical and programmatic accessibility. Funding
must not be obtained using set-asides from mandatory partners'
appropriations.
V. ENSURING ACCESS TO INDIVIDUALIZED SERVICES
Once job-seekers with disabilities can gain physical access to One-
Stops, they must be able to access necessary services and supports.
Individuals with disabilities including those with the most significant
disabilities often need a broad array of individualized services and
supports to assist them in obtaining and retaining, employment.
While there are some comprehensive One-Stops, many One-Stops do not
offer the array of services and supports necessary to assist
individuals with mental retardation and other significant disabilities.
Needed services and supports may not be available from any One-Stop or
may be provided at another One-Stop on the other side of town, or in
the next town ten miles away. As noted above, many individuals with
disabilities cannot physically access One-Stops. Obtaining services
should not be further complicated by requiring individuals with
disabilities many of whom lack access direct access to transportation
or live in areas without accessible public transportation-to go
somewhere else, some other time, on some other day for services that
should be readily available.
WIA's ``work-first approach'' has also hampered the ability of
individuals with disabilities to access needed services and supports
and, in particular, training. The ``work-first approach'' promotes
employment at any job as soon as it can be found, without consideration
of an individual's interests, capabilities, abilities, and without
consideration of multiple and complex supports need to obtain or
sustain employment. Individuals with mental retardation and other
severe disabilities may need a comprehensive array of training services
and supports before they begin working. For many people with mental
retardation, this may be their first attempt at employment. Thus, they
may need on-going or post-employment training in order to maintain
their employment or achieve future employment goals.
Inadequate levels of training funds have also been an impediment
for individuals with disabilities. Limited training dollars impact the
type and amount of training individuals can receive. Individuals with
the most significant disabilities often need training before, during,
and after they are employed and are more likely to benefit from
individualized training that community employment providers offer. Less
than adequate funding for training has resulted in many individuals
with disabilities without needed training, and some without any
training at all.
The limited number of eligible training providers has adversely
impacted individuals seeking training. While many One-Stops do not have
the expertise nor the funding to provide individualized training, ANCOR
members and other community employment providers can provide necessary,
individualized training. However WIA's burdensome reporting
requirements have discouraged many providers from participating,
leaving job-seekers with disabilities with limited or no consumer
choice of training providers.
The Administration's WIA reauthorization proposes to change the
``work-first approach'' to one that is more flexible, so individuals
would have the opportunity to receive the services that are most
appropriate for their unique needs. The Administration is also
proposing to transform Individual Training Accounts (ITAs) into
``Career Scholarships'' that can be used for training as well as to
facilitate access to post-secondary employment, and is proposing to
eliminate the burdensome reporting requirements for providers who opt
to provide training.
While ANCOR is pleased that the Administration is changing the work
first approach so that individuals can access services that are the
most appropriate for them, any changes must ensure that job-seekers
with disabilities will be able to access necessary training when they
need it, including during pre- and post-employment. Adequate levels of
funding for training must be included so that all individuals can
access the training services needed. Because little detail exists in
the public domain regarding the newly proposed ``Career Scholarships'',
ANCOR recommends that individuals with disabilities be able to access
and utilize these scholarships without restrictions.
Recommendation: WIA must ensure access to individualized supports
and services at all One-Stops.
Recommendation: Delivery of One-Stop services must be flexible so
that individuals with disabilities can access individualized training
as appropriate.
Recommendation: Adequate resources must be made available for
individualized training purposes so that private providers cover the
costs of providing training and other services and supports.
Recommendation: Community providers providing training must not be
burdened with extensive administrative and reporting requirements that
detract from providing supports and services, consume valuable time and
limited resources, and add little to the overall outcome of employing
individuals with disabilities.
VI. ADEQUATE FUNDING NECESSARY FOR ONE-STOP SERVICES
To ensure the comprehensive, seamless One-Stop system that WIA set
to create, One-Stops and their public and private partners must have
adequate funding to deliver the services and supports required by all
job-seekers, including individuals with disabilities. To date, funding
levels for One-Stops and their services have not kept pace with the
demand. As the nation's economy fails to rebound as quickly as hoped,
as state budgets deficits continue to grow, and as more individuals
find themselves struggling in today's economy, it is imperative that
the nation's workforce investment system have appropriate funding to
support the demands on the system.
At this critical time, the President's Fiscal Year (FY) 2004 budget
proposal provides only level funding for WIA programs from the
President's FY 2003 proposal. In addition, the Administration is
proposing to consolidate funding for all three of the WIA Title I adult
programs adults, dislocated workers, and the Wagner-Peyser state grants
into one single grant, creates a set-aside program from mandatory
public partners to fund One-Stop infrastructure, and allows governors
to apply for block grant authority for discretionary adult and youth
program funding.
ANCOR is very concerned, that at a time with great demands on the
nation's workforce system, the Administration has proposed no
additional funds for WIA adult programs and provides states with
greater flexibility that may ultimately hurt individuals with
disabilities seeking employment. The Administration contends that
consolidating the adult program funding streams may free up some money
because less funding will be dedicated for administrative purposes.
ANCOR is concerned that, by consolidating funding streams into one
single fund, dislocated workers will be able to access a
disproportionate amount of funding, crowding out individuals with
disabilities seeking individualized supports and services as adult
workers.
ANCOR is also concerned with the proposal to create a set-aside
program to fund One-Stop infrastructure. It must be the obligation of
One-Stops not the mandatory partners to support One-Stop
infrastructure. In addition, taking money off the top of Federal
appropriations or requiring partners to contribute a set amount or
percentage of their overall funding will further divert scarce
resources from their authorized purpose and leave more and more
individuals including individuals with disabilities without access to
services to which they are entitled.
ANCOR is also concerned with the block grant authority proposal.
Providing governors with new block grant authority for adult and youth
discretionary programs will offer an opportunity for governors many of
whom are currently struggling with state budget deficits to divert
necessary resources away from meeting the needs job-seekers under WIA
programs toward other state needs. Although ANCOR would hope that
governors applying for such authority would use the available funding
within the system as needed, there is no such guarantee.
Recommendation: Separate funding for WIA adult, dislocated worker,
and Wagner-Peyser grants programs must be maintained.
Recommendation: As stated above, a new adult program, ``Adults with
Disabilities'', should be authorized in WIA and separate funding for
this new program must be include.
Recommendation: A separate line item with new Federal funding must
be made available to support One-Stops' infrastructure.
Recommendation: Funding for all WIA adult and youth programs must
be dedicated to providing supports and services within the One-Stop
system.
VII. DIRECT SUPPORT WORKER CRISIS REQUIRES NATIONAL STRATEGIES
INCLUDING WIA TARGETED GRANT
Since the enactment of the WIA in 1998, there have been significant
developments to spur the nation toward reducing the chronically high
unemployment rate among Americans with disabilities and to spur the
nation in achieving the goals of integrating individuals with
disabilities in the mainstream of life including living and working in
the community. The 1999 landmark U.S. Supreme Court decision in
Olmstead affirming the integration mandate of the American's with
Disabilities Act; the enactment of the Ticket to Work and Work
Incentives Improvement Act of 1999 designed to transform disability
benefits' systems acknowledging the need to continue critical health
care benefits as people with disabilities enter the workforce and its
expansion of choice and access to private employment services; and
President Bush's New Freedom Initiative, present the nation with
additional tools to address not only the unemployment rate among
Americans with disabilities, but the necessary supports and services to
ensure that persons with disabilities are integrated into America's
neighborhoods and workforce.
WIA is an important part of the nation's fabric to address
employment and to complement the President's New Freedom Initiative. We
must seize the opportunity of WIA authorization to ensure that no
individual with a disability who wants to work is left behind. However,
one of the major barriers to fulfilling the U.S. Supreme Court's
Olmstead decision and the goals of the President's New Freedom
Initiative is the nation's direct support professional workforce
crisis. The Workforce Investment Act must be used as a catalyst to help
employers, local and state governments, and individuals with
disabilities and their families and employers to train, recruit, and
retain direct support professionals to provide the necessary living and
employment supports to sustain individuals with disabilities to live
and work in their communities.
ANCOR private community providers are in a unique situation in that
they are both service providers in which they can assist individuals
with disabilities who seek services from local One-Stops but they are
also employers of individuals who provide necessary community living
and employment supports.
Like other employers in their community, private providers seek to
employ well-trained, qualified individuals. However, during this time
of economic uncertainty when many local businesses are down-sizing or
even closing their doors, private providers continue to seek qualified
staff to address what has now become a crisis for many ANCOR members:
the shortage of direct support professionals.
The relationship between quality workers and quality supports and
services is well documented. What has always been a longstanding
concern to ANCOR providers the development of a stable, quality
workforce has become a national concern for federal, state and local
policymakers. Whereas the traditional labor pool for direct support
workers has included a relatively stable replacement pool of women
between the ages of 18 and 45, this is no longer the case.
What has traditionally been viewed as just a provider problem
dealing with turnover and vacancies has now reached a crisis level that
threatens to undermine the promise of Olmstead, the New Freedom
Initiative and, ultimately, the security and freedom of many
individuals with disabilities to live, work, and actively participate
in their communities.
Although there has been significant attention paid to the nation's
nurse and nursing home aide crisis, there has been little national
attention given to a similar crisis in the shortage of long term care
paraprofessionals in general with relatively little notice given to the
availability of direct care workers who provide supports and services
to people with disabilities.
While this crisis is gaining recognition in some quarters, it is
less frequently raised in connection with employment policies. Of
course, most people associate the worker crisis with elderly long-term
care need where retirement means the cessation of employment. However,
just as the direct support worker crisis is generally overlooked when
it comes to people with disabilities, it is even less frequently raised
in connection with employment policy regarding individuals with
disabilities.
The lack of an adequately paid, trained, stable workforce to
provide quality community living and employment supports and services
long recognized by providers as a real threat to community integration
is now a national crisis. No longer just a problem for providers to
figure out on their own, the current gap in long term supports and
service workers is expected to persist and increase in the near future
as more than 77 million baby boomers reach retirement and place
increased demands on the nation's long term supports and services
delivery system.
This crisis inevitably affects workforce preparation and
employments services to people with significant disabilities. Without,
a quality stable workforce to provide the array of supports needed to
assist people with mental retardation and other disabilities get
dressed, bathed, prepare and eat their meals, maintain their homes,
traverse their community, go to work, and live safely in their homes,
the goals of WIA can not be met.
In addition to recognizing that the direct care workforce crisis
will have an adverse impact on the WIB's role in providing successful
employment outcomes to people with disabilities, this shortfall in
direct care workers presents a legitimate workforce investment
opportunity for State and local WIBs.
A recent report by BDO Seidman, LLP (On The Growing Crisis in
Recruiting and Retaining the Direct Support Workforce, December 2002)
for ANCOR outlined the following key findings:
Over the past decade, both the dollar amount and percentage
increase in hourly wage rates for ``Direct Support Workers'' are far
below that of comparable job categories as well as the national minimum
wage.
The agencies serving individuals with developmental disabilities
cannot attain and retain qualified employees when wages in competitive
markets are increasing at a much faster rate.
The demand for ``Direct Support Workers'' continues to increase
faster than the civilian labor force and is compounded by an aging
population and increase in individuals with disabilities seeking
support services.
The skyrocketing cost of health insurance premiums prevents
agencies from improving their benefit offerings.
State funded systems, including those that rely on Medicaid, are
held to fixed appropriations based upon state policy choices and
economic conditions and are not as responsive as the private sector in
adjusting to labor supply and demand factors. The demand for ``Direct
Support Workers'' continues to increase while current funding levels
are being held constant or declining.
Without increased funding to improve the competitive position of
private sector providers relative to workforce recruitment and
retention, both access to and quality of services could be compromised
in the future.
In the direct support worker/paraprofessional labor market, most of
the past 30 years have witnessed increasingly larger numbers of
potential workers (high supply) who, because of low skills and other
employment barriers, had relatively few job opportunities other than
entry-level health care and health-related jobs (low demand). However,
near the end of the 1990s, these dynamics have changed. One obvious
cause was our nation's high-employment economy. Less obvious, however,
is that a significant shift had occurred within the U.s. population
that dramatically changed the relative supply of direct support worker
labor. During the decade of the 1990s, growth in the traditional source
of entry-level direct support workers women in the civilian workforce
between the ages of 25 and 44 had begun to slow dramatically.
While total employment in the U.S. workforce is projected to grow
by just 15.2 percent from 2000 to 2010, the demand for home health
aides will increase by 47 percent, and personal care aides by 62
percent. The Bureau of Labor Statistics now projects that by the end of
the decade in 2010, direct support jobs in long-term care will require
780,000 net new positions an increase in demand for paid workers of 39
percent. Using conservative estimates for those leaving
paraprofessional work during that same period, the BLS further predicts
that the total number of new job openings (growth plus replacements)
will require 1,048,000 new paraprofessional long-term direct support
workers in the coming decade. (Long-Term Care Financing and the Long-
Term Care Workforce Crisis: Causes and Solutions, prepared for Citizens
for Long Term Care by The Paraprofessional Healthcare Institute,
September 2002)
As the following chart from ANCOR's BDO Seidman report
demonstrates, labor statistics clearly indicate a growing need for
direct support workers. The severity of the crisis is compounded as the
U.S. population ages and individuals with disabilities seek support
services to live and work in their communities.
ANCOR is heartened by two steps taken by the Department of Labor.
First, we are pleased that ANCOR's voice and that of others was heard
in the Administration's 2001 listening sessions on the New Freedom
Initiative. We are glad that the Department of Labor through the Office
of Disability Employment Policy and the Employment and Training
Administration has included the increase in the availability and
quality of personal assistants and community workers in its agency
report on removing barriers to community integration. In addition, the
Centers for Medicare and Medicaid included the inadequate availability
of personal assistance and direct support workers as a barrier to the
goals of the President's New Freedom Initiative.
Secondly, the Department has officially recognized the Direct
Support Specialist occupation in its Dictionary of Occupational Titles
(195.367-900). The apprenticeship will allow the Department to formally
recognize a direct support training program under its Apprenticeship
umbrella and provide national recognition for each agency registered.
Creating the Direct Support Specialist occupation is a big step toward
recognizing it as a career opportunity.
Reauthorization of the Workforce Investment Act presents an
opportunity to address a major barrier to the community living and
employment goals in the President's New Freedom Initiative. ANCOR
offers the following recommendations in conjunction with WIA
reauthorization as a means of emphasizing the need to address the
direct support professional workforce crisis.
Recommendation: The reauthorization should include provisions that
recognize and seek to address the community direct support worker
crisis as eligible WIB collaborative activities under WIA.
Recommendation: ANCOR supports maintaining dedicated funding
streams for adult, dislocated worker, and youth activities to One-
Stops.
ANCOR recommends WIA authorized funding to assist with training,
recruitment and retention of direct support workers within adult and
dislocated worker and youth activities
Recommendation: WIA should authorize DOL to target specific WIA
grant funds to state and local WIBs to address direct support workforce
preparation and employment services for workers that provide supports
and services to individuals with disabilities.
Recommendation: WIA should authorize DOL to provide incentive
grants to local One-Stops to work with employers of direct support
workers to address training, recruitment and retention of direct
support workers.
Recommendation: WIA should authorize DOL to make available
technical assistance funding on a national competitive basis to
organizations to assist providers with promising practices in the
recruitment and retention of direct support workers.
Recommendation: WIA should authorize the DOL to provide targeted
grant funds for collaborations with community providers and educators
to develop direct support apprenticeship programs.
Recommendation: WIA should authorize the DOL to use discretionary
funds to fund the national College of Direct Support web-based training
and its use with SWIBS and LWIBS.
ANCOR appreciates this opportunity to provide the Subcommittee with
recommendations for the reauthorization of the Workforce Investment
Act. It is imperative that WIA be strengthened to ensure that all
Americans who want to work including individuals with disabilities are
given the opportunity to do so. ANCOR looks forward to working with the
Subcommittee to ensure the WIA and its programs meet the needs of
individuals with disabilities. Should there be any questions regarding
ANCOR's statement, please contact Suellen Galbraith, Director for
Public Policy or Kara Freeburg, Public Policy Analyst, at (703) 535-
7850.
Prepared Statement of Tony Young
NISH welcomes the opportunity to provide this comment the
reauthorization of the Workforce Investment Act during the 108th
Congress. We appreciate the work of this Subcommittee in addressing
this important legislation and are grateful for your attention to the
concerns we have outlined in this statement. NISH is a national
nonprofit organization, established in 1974 as part of the Javits-
Wagner-O'Day (JWOD) Act, whose mission is to create employment
opportunities for people with severe disabilities by securing federal
contracts. NISH has a network of more than 515 community rehabilitation
programs that produce quality products and provide a variety of
services to federal customers nationwide.
NISH is committed to helping its associated agencies succeed in
providing employment opportunities to individuals with severe
disabilities. For many community programs, government procurement and
the JWOD Program represent unfamiliar territory. For this reason, the
Committee for Purchase from People Who Are Blind or Severely Disabled
designated NISH to provide agencies and their federal partners with the
tools they need for successful contract management. Among many other
services, NISH offers its agencies legislative and regulatory
assistance, communications and public relations materials, information
technology support, engineering and technical assistance and an
extensive professional training program.
In FY 2001, through the JWOD Program, 518 NISH-affiliated agencies
provided products and services to the federal government. People with
disabilities are working on projects in all 50 states, the District of
Columbia, Puerto Rico and Guam. In FY 2001, more than 33,000
individuals with severe disabilities employed through JWOD contracts
collectively earned nearly $216 million in wages. With its headquarters
in Vienna, VA, NISH has regional offices in California, Washington,
Georgia, Virginia, Texas and Illinois. Nationwide, NISH is committed to
quality service and increased employment for Americans with severe
disabilities nationwide.
When Congress passed the Workforce Investment Act in 1998, it set
in motion significant changes in the workforce investment system,
including governance, accountability and increased coordination and
collaboration among federally funded partner programs. Among the
organizing principles of WIA is universal access where a set of cores
services are intended to be available to any individual who needs them.
A second principle is the concept of a One Stop service delivery system
whereby federal assistance and services can be made available through
partnership organizations which, in many cases, are located under one
roof to facilitate ease of access and enhanced customer service. The
One Stop delivery system, through statewide and local workforce
development systems, was intended to increase the employment,
retention, earnings, and skills attainment of participants, including
people with disabilities.
VOCATIONAL REHABILITATION AND COMMUNITY REHABILITATION PROGRAMS WORKING
TOGETHER
An effectively operating Vocational Rehabilitation (VR) program is
essential to long-term employment success for people with disabilities,
especially people with severe disabilities. The VR services delivered,
either by state agency personnel or in partnership with a Community
Rehabilitation Program (CRP), can prepare participants with the skills
needed for work.
The Rehabilitation Act must encourage and promote collaboration and
cooperation among the various agencies and organizations providing
employment-related services to people with disabilities. This should
include collaboration and cooperation among federal, state and local,
public and private agencies and programs, including between and within
various departments within federal and state government. All
stakeholders should be included in the design and policy making process
for providing employment services.
The Rehabilitation Act should acknowledge that individuals with
disabilities may benefit from other federal and state job training and
rehabilitation related programs, including the Javits-Wagner-O'Day
Program (JWOD). The Rehabilitation Act must require State VR Agencies
to collaborate and cooperate with these programs to ensure the full
participation of individuals with disabilities in the benefits of these
state and federal programs. State VR Agencies must only provide the
technical assistance needed to assist and facilitate the physical and
programmatic accessibility of all job training and rehabilitation
related programs for persons with physical, mental, sensory and
cognitive disabilities.
The VR program and the JWOD program must work cooperatively to
create employment opportunities for people with severe disabilities and
to prepare them to succeed in these opportunities. Policies, practices,
and events of recent times have limited the cooperation of these two
venerable programs. Common ground should be identified on which the
employment of people with severe disabilities can once again be the
focus of their cooperative efforts.
SELF-DETERMINATION THROUGH INFORMED CHOICE
People with severe disabilities should be empowered to determine
their own employment goals, including employment under the Javits-
Wagner-O'Day Program, from among a variety of options consistent with
their strengths, priorities, concerns, abilities, capabilities,
interests, and informed choice. VR agencies should respect and act upon
the informed choices made by people with severe disabilities to work to
the fullest extent of their capabilities.
The Rehabilitation Act must require the facilitation of informed
consumer decision-making for individuals with disabilities through the
exploration of options regarding choices among vocational goals and
objectives; the selection of services and supports necessary and
sufficient to achieve those goals and objectives; the identification
and selection of the providers of those services; and the involvement
of family members and authorized representatives as appropriate. The
options that are explored must be consistent with the individual's
strengths, priorities, concerns, abilities, capabilities, interests,
and informed choice.
EMPLOYMENT SUPPORTS
The Rehabilitation Act must require that a full range of employment
supports, including personal assistance services, assistive technology/
rehabilitation engineering, and other types of accommodations, be
available to individuals seeking or receiving services funded under the
Rehabilitation Act to ensure a successful employment outcome.
All services provided under the Rehabilitation Act must be
individualized based on the strengths, resources, priorities, concerns,
abilities, capabilities, and interests of the individuals seeking
assistance. Such individualized services must include the provision of
appropriate support services, accommodations, assistive technology/
rehabilitation technology services, and personal assistance services.
These services must be provided as necessary to accommodate a person's
disability, facilitate assessments and evaluations, maximize the
benefits of training programs, and provide equal access to training and
employment opportunities.
OUTCOMES
The Rehabilitation Act must mandate a measure for successful
outcomes that reflects the goals of the Rehabilitation Act to empower
individuals to maximize employment, economic self sufficiency, and
independence. The measure for successful outcomes should take into
account such things as: 1) severity of disability; 2) long-term
success; 3) informed choice; 4) wages and benefits; and 5) customer
satisfaction.
ENSURING THE ACCESSIBILITY OF JOB TRAINING PROGRAMS, EDUCATIONAL
PROGRAMS AND OTHER SERVICE PROGRAMS
The vision of the One Stop Career Centers established under the
Workforce Investment Act (WIA) of 1998 was to be the culmination of a
collaborative service delivery system that serves all Americans who
encounter barriers to employment, including individuals with
significant disabilities. Collaboration between the State Units
administering the Public Vocational Rehabilitation (VR) Program and
DOL-funded workforce investment services is intended to produce better
information, more comprehensive services, easier access to services and
improved long-term employment outcomes for individuals with
disabilities.
Under the Americans with Disabilities Act (ADA) and Sections 504
and 508 of the Rehabilitation Act, the One Stop Career Centers created
under the Workforce Investment Act are required to be both physically
and programmatically accessible. Generic service providers, including
One-Stop centers are responsible for serving individuals with
disabilities under the same terms and conditions as they serve non-
disabled individuals. Congressional intent, which is consistent with
the ADA and Section 504, was and is, that programmatic access to
individuals with disabilities at the One Stops--those related to
individuals with communicative, cognitive and sensory disabilities--
must include alternate formats (both Braille and large print),
assistive technology, auxiliary aids and services, including
interpreters and readers, and accessible software and related-
communicative equipment. These accommodations--which are necessary to
facilitate the participation of individuals with physical, mental,
sensory and cognitive disabilities in educational programs, vocational
training, and other types of employment services provided by generic
service providers--are the responsibility the generic service provider.
As a required partner, State VR Agencies may provide technical
assistance on identifying and providing needed accommodations and
information on how to make physical facilities accessible to
individuals with different types of disabilities. However, State VR
Agencies should not be covering expenses associated with making One-
Stop facilities and programs accessible to individuals with
disabilities. That responsibility must remain with the One-Stop Centers
and the public and private providers they use to provide educational,
employment and training services. In addition, State VR Agencies should
not be asked to assume the expenses associated with the provision of
core services in a One-Stop center merely because some individuals with
disabilities will be benefiting from those services. This is especially
important in that the comprehensive services provided by the State VR
and Blind Agencies are not duplicative of the services provided by the
One Stop Centers. One Stops need to assure that people with
disabilities have access to the full range of services including
Individual Training Accounts.
While some progress has been made to effect physical accessibility
to individuals with disabilities at some of the One Stops, many
challenges remain particularly with regard to programmatic
accessibility. The message is simple: If individuals with disabilities
cannot get through the door of the one-stop career centers (or are
unable to have meaningful access to information and services once
inside), they cannot and will not be served or secure employment.
FUNDING OF WIA ONE STOP SERVICE CENTERS
Current obligations of the State Vocational Rehabilitation agencies
already exceed their level of funding. During consideration of the WIA
legislation in the Senate, the then-Chairman of the Subcommittee on
Employment and Training, Senator Mike DeWine (R.OH.) stated that
``While the VR program is to be linked to the workforce investment
system, funds appropriated for the VR program are not to be compromised
or diverted to other workforce populations.''
There are ample requirements regarding accountability for VR funds
in the specifically crafted Rehabilitation Act of 1973, as amended. In
Section 16(a), the Transfer of Funds section states in part: ``No funds
appropriated under this Act for any program or activity may be used for
any purpose other than that for which the funds were specifically
authorized.'' Relatedly, Section 3(b) of the Rehab Act states: ``The
Secretary shall take whatever action is necessary to ensure that funds
appropriated pursuant to this Act are expended only for the programs,
personnel and administration of programs carried out under this Act.''
When WIA was authorized, it was believed that the intent of
Congress was for mandatory partners to contribute resources to the
statewide workforce investment system consistent with the partner's
authorizing legislation. NISH holds to this belief and fully supports
the cost-allocation methodology that is currently defined in the
Department of Labor's Employment and Training Administration's (DOL/
ETA) Final notice entitled ``Resource Sharing for Workforce Investment
Act One-Stop Centers: Methodologies for Paying or Funding Each Partner
Program's Fair Share of Allocable One-Stop Costs (published in the
Federal Register on May 31, 2001), and the DOL/ETA's ``One-Stop
Comprehensive Financial Management Technical Assistance Guide'' (dated
July 2002). Since this methodology of sharing resources permits
mandatory partners to contribute their fair share to the support of the
system, based on utilization and benefit to their target population,
NISH would oppose any alternative efforts or prescribed methods for
garnering additional resources from the Public VR Program.
NISH opposes any efforts to set aside a percentage of the Public VR
Program's Title I funds to support the infrastructure of the One Stop
Career Centers.
ACCOUNTABILITY AND PERFORMANCE MEASURES
The Administration has proposed to refine the performance measures
for the One Stops to bring them in line with the common set of measures
across federal employment and job training programs. The four measures
for adults are: entered employment, retention in employment, earnings
gains and program efficiency. For youth the measures are: placement in
employment or education, degree or certificate attainment, literacy and
numeracy gains, and program efficiency. This proposal will result in
the unintended consequence of eliminating many individuals with
disabilities from the programs being measured by these standards.
Performance measures for both the vocational rehabilitation program and
the One Stops must allow for alternative forms of evaluation.
Flexibility must guide the measurement standards, allowing the systems
to account for the ways in which they were able to meet the unique and
individualized needs of the people they serve.
ENSURING REPRESENTATION OF DISABILITY INTEREST ON THE STATE WORKFORCE
INVESTMENT BOARDS (SWIB)
Nearly five years after implementation of the Workforce Investment
Act (WIA), States are attempting to meet the requirement to include a
representative of the Public VR Program on the SWIB by having the head
of the umbrella agency housing the Designated State Unit administering
the Public VR Program serve as the VR representative on the SWIB. In
addition, States that, based on the grandfather clause in Title I of
WIA, decided to use existing boards to operate as the SWIB may not have
anyone at all representing VR. Neither of these actions meet the intent
of WIA to ensure inclusion of the needs of people with disabilities at
all levels of the WIA system.
Further, in some regions, community-based providers have reported
that their One-Stops view them as direct competition, and prohibit
their participation on local or state boards. In fact, in some of those
areas, it is now the community-based provider that serves the role of
providing individuals with disabilities the information, training, and
resources necessary to obtain or regain employment with diminishing
resources. WIA job seekers in general and individuals with disabilities
in particular, stand to benefit from the WIA envisioned public-private
partnerships between the One-Stops and community-based providers that
current practice now impedes.
Although in some areas excellent relationships have been
established between Local Boards, One-Stops, VR, people with
disabilities, and community-based providers, other regions are sorely
lacking such relationships and have expressed concerns over the
inability to found such relationships. States and the One-Stops should
take additional steps to get more representation from the disability
community in the WIA system by ensuring direct representation of
Vocational Rehabilitation (VR), community-based providers, and people
with disabilities on State Workforce Investment Boards.
Recognizing the expertise of individuals staffing State VR
Agencies, community-based providers, and consumer organizations as a
valuable resource for the WIA system, NISH believes each State
Workforce Investment Board (SWIB) must include in its membership at
least one individual with a disability, one representative of
community-based providers, and the State's VR Director, i.e., the
person who is responsible for overseeing the administration of the
State Plan for VR Services, or an individual designated by the VR
Director. In States where State law has established a separate State VR
Agency to serve individuals who are blind and visually impaired, the
Director of that specific VR program should also be a voting member of
the SWIB.
NISH recommends that Sec. 111(b)(1)(C)(v) of WIA be amended to read
as follows:
(v) representatives of individuals and organizations that have
experience and expertise in the delivery of workforce investment
activities, including chief executive officers of community colleges
and community-based organizations within the State (including
organizations representing and providing employment service to
individuals with disabilities);
NISH also recommends that Sec. 111(b)(1)(C)(vi)(I) of WIA be
amended to read as follows:
Sec. 111(b)(1)(C)(vi)
(I) the lead State agency officials with responsibility for the
programs and activities that are described in section 121(b) and
carried out by one-stop partners; and
Add a new subsection (vi)(II) to read as follows:
(vi)(II) in the case of the Public Vocational Rehabilitation
Program authorized under title I of the Rehabilitation Act of 1973 (29
U.S.C. 720 et seq.), the Vocational Rehabilitation Director employed by
the Designated State Unit or the Vocational Rehabilitation Directors in
States that have a separate State entity that is responsible for the
rehabilitation of individuals who are blind and visually impaired; and
Redesignate current subsection (vi)(II) as (vi)(III).
(vi)(III) in any case in which no lead State agency official has
responsibility for such a program, service or activity, a
representative in the State with expertise relating to such program,
service, or activity; and
ENSURING THE CONTINUED REPRESENTATION FROM VR AND INDIVIDUALS WITH
DISABILITIES ON THE LOCAL WORKFORCE INVESTMENT BOARDS
Currently, WIA requires Local Workforce Investment Boards (WIBs) to
include representatives of local community-based organizations
(including organizations representing individuals with disabilities and
veterans). As a result of this requirement, many Local WIBs include
representatives of the Public VR program and individuals with
disabilities. NISH recommends strengthening this language to ensure
that the interests of people with disabilities continue to remain a
part of local WIA implementation by making specific reference to a
representative of the Public VR Program, a representative of community-
based providers, and a least one individual with a disability.
TRANSITION PROGRAMS NEED TO INCLUDE STRONG PARTNERSHIPS WITH SCHOOLS
We are concerned that the administration has proposed a targeted
approach to serving youth that limits the programs to out of school
youth. The schools are an incredibly important partner in services for
youth who are ``at risk'' of a jobless future when they leave school.
Youth with disabilities who remain in school certainly fall within that
``at risk'' category. The youth program must include a strong component
of partnership with the school system, to ensure a seamless transition
for youth with disabilities from school to postsecondary educational,
job training, and job placement opportunities.
CONCLUSION
While NISH believes in the dignity of work and the power of
partnerships to empower individuals with disabilities to live, work,
and recreate in their community, we must insist that these partnerships
include meaningful supports and services to ensure full participation.
While we support continued partnership at the One Stop Career Centers,
we remain concerned about the present and future participation of
individuals with disabilities in a system that remains largely
inaccessible to them. We appreciate any assistance you can provide in
addressing these issues.
IN SUMMARY
NISH will continue to support the participation of the programs
administered under the Rehabilitation Act of 1973, as amended, together
with the other mandatory partners, through existing Cost Allocation
Guidelines.
NISH does not believe that State VR Agencies should be covering
expenses associated with making One Stop facilities and programs
accessible to individuals with disabilities.
NISH believes that VR participation on the State and local WIBs is
critical. We further believe that individuals with disabilities and
community-based providers should be represented on the both the SWIB
and LWIB and support any effort to make this language stronger.
NISH supports youth programs that include strong partnerships with
the school system.
Thank you for your attention to our comments. We would be happy to
discuss this further and answer any questions you may have. Please
contact Tony Young, Assistant Vice President, Governmental Affairs and
Workforce Development, NISH, via email at [email protected] or by
telephone on 571-226-4567.
[Whereupon, at 10:45 a.m., the subcommittee was adjourned.]