Governors Workforce Policy Advisors 2005 Handbook

Transcription

1 Governors Workforce Policy Advisors 2005 Handbook National Governors Association Center for Best Practices Social, Economic, and Workforce Programs Division

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3 Table of Contents Section I: How Can NGA Help You? 1 NGA s Center for Best Practices 1 The Social, Economic and Workforce Programs Division 1 Specialized Technical Assistance 2 Conference Calls and Webcasts 2 Workshops ` ` 3 Policy Academies 3 Staff Contacts 4 Section II: Workforce Development Advisors Contact List 7 Section III: Information on Federal Workforce Development 13 Programs and Policies 13 Workforce Investment Act 14 Employment Services 17 Senior Community Service Employment Program 19 Employment Services for Veterans 21 Temporary Assistance for Needy Families 23 The Carl D. Perkins Vocational-Technical Education Act 26 Adult Education and Family Literacy Programs 29 Vocational Rehabilitation 30 U.S. Department of Housing and Urban Development 32 Community Services Block Grant 35 The Food Stamp Employment and Training Program 37 P AGE ii

4 Manufacturing Extension Partnership 39 Trade Adjustment Assistance Program 40 Section VI: Where Can I Find Research and Other Information on Important Workforce Development Issues? 43 Government Resources 43 Trade Association 48 Private Research and Advocacy Organizations 50 Section V: NGA Policy Positions 59 ECW 01. Governors Principles to Ensure Workforce Excellence Policy 60 ECW 6. Targeted Employment Tax Credits: The Work Opportunity Tax Credit and the Welfare-to-Work Tax Credit Policy 65 ECW 11. Employment Security System Policy 67 ECW 15. Principles fo Federal Preschool-College Alignment 70 HHS 21 Welfare Reform Policy 73 EDC 04. National Research, Development, and Technology Policy 80 EDC 15. The Rural Economy Policy 83 P AGE iii

5 Section I: How Can NGA Help You? The National Governors Association (NGA) is a uniquely bipartisan organization for the Governors of the fifty states, the commonwealth of Puerto Rico and the Northern Mariana Islands, and the territories of Guam, American Samoa, and the Virgin Islands. NGA s ongoing mission is to support the work of the Governors by providing a forum to help shape and implement national policy and to solve state problems. NGA provides Governors and their senior staff members with a range of services, including representing states on Capitol Hill and before the Administration on key federal issues, developing policy reports on innovative state programs, and hosting seminars for state government executive branch officials. NGA s Center for Best Practices The NGA Center for Best Practices helps Governors and their key policy staff develop and implement solutions to governance and policy challenges in their states. The Center tracks, evaluates and disseminates information on state innovations and best practices in all major policy arenas. The Center helps Governors and their policy advisors learn about emerging issues and develop cutting-edge strategies for addressing problems and achieving policy goals through on-site analysis, customized technical assistance, and by bringing together expertise across state boundaries. The Social, Economic and Workforce Programs Division The NGA staff is a resource for you. The Social, Economic and Workforce Programs Division staff work closely with other organizations and policymakers in every state to keep abreast of the latest research and to identify emerging issues in workforce development policies. The Division assists states with implementing new federal programs and changing existing programs, reorganizing agencies and streamlining service delivery, P AGE 1

6 measuring performance, and working across multiple systems and programs to achieve shared goals. Through publications, conferences, and specialized technical assistance, NGA assists Governors and their policy advisors to design and implement effective policies and initiatives. Specialized Technical Assistance The Social, Economic and Workforce Programs Division is available to answer any question you may have, no matter how broad or narrow. Our staff has experience helping workforce policy advisors develop Governors agendas; prioritize goals and identify measurable outcomes for achieving them; recommend new policies that build off of existing efforts; and replicate successful policies from other states. We offer a range of services, including: Telephone or consultation Customized memos On-site technical assistance Convening experts on conference calls or in person Identifying resources and best practices Conference Calls and Webcasts Conference calls can be an effective way for advisors to learn about best practices, discuss timely and emerging policy issues, and network with each other. We organize periodic conference calls around topics of interest to states. In addition to scheduled calls, NGA staff can organize conference calls for advisors who wish to learn about a particular issue or state practice. You should feel free to contact us with any pressing issue or technical assistance question and we can convene a group of advisors and other experts to discuss the issue. P AGE 2

7 Due to demanding schedules and tight state fiscal climates, policy advisors cannot always travel to meetings. In response, NGA is increasingly using webcast technology as an alternative to in-person meetings. In 2004, the Division held a series of webcasts focusing on family formation issues and welfare reauthorization. Future webcasts are likely to focus on low-income working families and young adults with disabilities. Workshops Workshops are usually one or two day programs designed for individuals to gain an in-depth understanding of particular issues, policies, and programs. States are typically able to send small teams of people (3 to 5) to attend workshops. In fall 2005, NGA will be hosting workshops pertaining to low-income working families and youth transitioning out of foster care. Policy Academies NGA often conducts Policy Academies to help states develop strategies to address complex policy issues. In 2005 and 2006, your state will have the opportunity to participate in a number of different Policy Academies: Young adults with disabilities Low-income working families Prisoner re-entry Youth transitioning out of foster care Policy Academies are intensive workshops designed to help state policymakers design and implement large-scale policy initiatives in the form of action plans. The Policy Academy model which has been successfully used in many policy arenas at NGA typically involves: P AGE 3

8 Preliminary on-site work with state teams to facilitate discussion and help lay the groundwork for the state-specific initiative; Convening all the state teams for one or two formal Academy meetings. Teams work on their plans and receive feedback from nationally-recognized experts and lessons learned from their peers in other states; On-site, state-specific technical assistance provided after each Academy meeting by NGA staff and other experts to help teams complete their action plans and implement and measure the impact of their plan. Policy Academies are a catalyst for change. They require a substantial commitment of time, resources, and energy from both Academy participants and project staff. Lessons learned from the experience of states participating in Academies are shared with other states through reports, websites and meetings. Staff Contacts Below is a list of staff contacts that cover workforce development, economic development, human services, and related issues. For a complete list of NGA staff, please visit our website at Stephen Crawford Director, Social, Economic and Workforce Programs Division 202/ scrawford@nga.org Martin Simon Program Director Workforce development, economic development, training and employment 202/ msimon@nga.org P AGE 4 Sam Leiken Senior Policy Analyst Economic development, workforce development, access to postsecondary education, low-income working families 202/ sleiken@nga.org

9 Lindsey Woolsey Policy Analyst Workforce development, economic development, low-income working families, disabled young adults 202/ Joan Wodiska Director Education, Early Childhood & Workforce Committee 202/ Debbie Woods Administrative Coordinator, Social, Economic, and Workforce Programs Division 202/ Susan Golonka Program Director Welfare reform, human services delivery, low-income working families, service integration, youth development, child welfare, foster care youth 202/ Courtney Smith Senior Policy Analyst Welfare reform, affordable housing, low-income working families, family formation, service integration 202/ Thomas MacLellan Senior Policy Analyst Criminal/juvenile justice, prisoner re-entry, criminal justice information sharing 202/ Karen Krause Administrative Coordinator, Social, Economic, and Workforce Programs Division 202/ P AGE 5

10 P AGE 6 G OVERNORS WORKFORCE POLICY ADVISORS 2005 HANDBOOK

11 Section II: Workforce Development Advisors Contact List Perhaps one of the most useful functions that NGA performs is promoting peer-learning and networking among governors workforce development policy advisors. Through conference calls, webcast events, roundtables and other meetings, NGA facilitates communication, ideasharing, and networking among workforce development policy advisors nationwide. To support relationship building, attached is a list of workforce development advisors in each of the 50 states and US territories. The list is updated annually and can be made available to you upon request. Governors Workforce Development Policy Advisors Tim Alford Director, Office of Workforce Development 401 Adams Avenue, Suite 590 Montgomery, AL Phone: 334/ tim.alford@adeca.state.al.us Lucretia Norris Transportation Liaison, Office of the Governor State Capitol, Suite 011 Little Rock, AR Phone: 501/ Fax: 501/ lucretia.norris@gov.state.ar.us Darcy Renfro Governor's Office 1700 W. Washington Phoenix, AZ Phone: 602/ drenfro@az.gov David Crane Special Advisor/Jobs & Economic Growth Office of the Governor State Capitol Sacramento, CA Phone: 916/ david.crane@gov.ca.gov Mary Woodard Sr. Policy Advisor Office of the Governor State Capitol Denver, CO Phone: 303/ mary.woodard@state.co.us Mary Ann Hanley Director Office for Workforce Competitiveness 805 Brook Street, Bldg 4 Rocky Hill, CT Phone: 860/ Fax: 860/ mary.ann.hanley@po.state.ct.us P AGE 7

12 Janice Lipsen Washington Representative for Governor of American Samoa 1101 Vermont Avenue, N.W., Suite 403 Washington, DC Phone: 202/ Fax: 202/ T. Nina Oviedo Deputy Chief of Staff to the Governor Washington Office, State of Florida Hall of the States, Suite North Capitol Street, NW Washington, DC Phone: 202/ Fax: 202/ Mark Brainard Chief of Staff Office of the Governor Tatnall Building, William Penn Street Dover, DE Phone: 302/ Fax: 302/ Judy Bryson Chief of Staff GA Department of Labor 148 Andrew Young International Blvd. NE, Suite 600 Atlanta, GA Phone: 404/ Fax: 404/ Jeanie Thomas Office of the Governor Room 245, State Capitol Atlanta, GA Phone: 404/ J. George Bamba Senior Advisor Office of the Governor P.O. Box 2950 Hagatna, GU Phone: 671/ Fax: 671/ Linda Smith Senior Policy Advisor Office of the Governor State Capitol, Executive Chamber 415 South Beretania Street Honolulu, HI Phone: 808/ Fax: 808/ John Pederson Legislative Liaison, Office of the Governor State Capitol Des Moines, IA Phone: 515/ Megan Ronk Office of the Governor P.O. Box W. Jefferson Boise, ID Phone: 208/ Fax: 208/ Ronald L. Stiver Commissioner Dept. of Workforce Development 10 North Senate Avenue, Suite 302 Indianapolis, IN Phone: 317/ Fax: 317/ P AGE 8

13 Laura E. Owens Commissioner Dept. for Workforce Investment 3rd Floor Capitol Plaza Tower Frankfort, KY Phone: 502/ Karen Zoeller Executive Director Louisiana Workforce Commission P.O. Box Baton Rouge, LA Phone: 225/ Fax: 225/ Jane Edmonds Director MA Dept. of Workforce Development 1 Ashburton Place, Room 2112 Boston, MA Phone: 617/ Fax: 617/ jane.c.edmonds@state.ma.us Joseph Getty Policy Director Office of the Governor State House 100 State Circle Annapolis, MD Phone: 410/ Fax: 410/ jgetty@gov.state.md.us Alan Stearns Senior Policy Advisor Governor's Office State House Station # 1 Augusta, ME Phone: 207/ alan.stearns@maine.gov Emily Fleury Assistant Policy Advisor Office of the Governor P.O. Box Lansing, MI Phone: 517/ Fax: 517/ fleurye@michigan.gov Ward Einess Policy Manager Office of the Governor 130 State Capitol 75 Rev. Dr. Martin Luther King, Jr. Blvd St. Paul, MN Phone: 651/ ward.einess@state.mn.us John Cardetti Policy Advisor, Community & Economic Development Office of the Governor Missouri Capitol Building, Room 216 Jefferson City, MO Phone: 573/ Fax: 573/ cardej@mail.gov.state.mo.us Rob Monsees Deputy Chief of Staff Office of the Governor Capitol Building, Room 216 Jefferson City, MO Phone: 573/ Fax: 573/ rob.monsees@mo.gov Mary Alice Browning Office of the Governor P.O. Box N. West Street, 15th Floor Jackson, MS Phone: 601/ mbrowning@governor.state.ms.us P AGE 9

14 Hawley Truax Senior Policy Analyst Office of the Governor Mail Service Center Raleigh, NC Phone: 919/ Fax: 919/ James J. Hirsch Director Workforce Development Council ND Department of Commerce P.O. Box 2057 Bismarck, ND Phone: 701/ Fax: 701/ Lauren Hill Policy Director & General Counsel Office of the Governor 1319 State Capitol Lincoln, NE Phone: 402/ Fax: 402/ Fernando Lecuona Commissioner of Labor Nebraska Department of Labor P.O. Box South 16th Street Lincoln, NE Phone: 402/ Fax: 402/ Doug Porter Policy Advisor, Economic Development Office of the Governor State House, Room N. Main Street Concord, NH Phone: 603/ Fax: 603/ Susan Ochs Office of the Governor State House P.O. Box 001, 125 W. State Street Trenton, NJ Phone: 609/ Reese Fullerton Executive Director Office of Workforce Training & Development 1596 Pacheco Street, Suite 201 Santa Fe, NM Phone: 505/ Fax: 505/ Keith Munro General Counsel Office of the Governor State Capitol, 101 North Carson Street Carson City, NV Phone: 775/ Fax: 775/ William Howard Deputy Director State Operations New York State Capitol, Room 209 Albany, NY Phone: 518/ Fax: 518/ Susan Bodary Executive Assistant for Education Office of the Governor 77 South High Street, 30th Floor Columbus, OH Phone: 614/ Fax: 614/ P AGE 10

15 Oscar Jackson Secretary of Human Resources Office of Personnel Management 2101 N. Lincoln Boulevard, G-80 Oklahoma City, OK Phone: 405/ Fax: 405/ James Sager Education Policy Advisor Office of the Governor 900 Court Street, NE, Suite 126 Salem, OR Phone: 503/ Fax: 503/ Sandi Vito Deputy Secretary Workforce Development Dept. of Labor & Industry 1700 Labor & Industry Bldg., 7th & Forster Streets Harrisburg, PA Phone: 717/ Fax: 717/ Carlos Nieves Workforce Policy Advisor Office of the Governor La Fortaleza P.O. Box San Juan, PR Phone: 787/ Janet Durfee-Hidalgo Office of the Governor State House Providence, RI Phone: 401/ Scott English Policy Advisor to the Governor Office of the Governor P.O. Box Columbia, SC Phone: 803/ Fax: 803/ Marshall Evans Policy Advisor Office of the Governor P.O. Box Columbia, SC Phone: 803/ Pamela Roberts Secretary SD Department of Labor 700 Governors Drive Pierre, SD Phone: 605/ James G. Neeley Commissioner Dept. of Labor & Workforce Development Andrew Johnson Tower, 8th Floor 710 James Robertson Parkway Nashville, TN Phone: 615/ Fax: 615/ Andres Alcantar Asst. Director, Budget, Planning Office of the Governor P.O. Box 12428, Capitol Station Austin, TX Phone: 512/ P AGE 11

16 Raylene Ireland Executive Director Dept. of Workforce Services 140 East 300 South Salt Lake City, UT Phone: 801/ Fax: 801/ Steven Gould Special Assist to the Governor Office of the Governor, State Capitol Richmond, VA Phone: 804/ Fax: 804/ Sedonie Halbert Commissioner Department of Human Services Knudhanson Complex, Bldg A 1303 Hospital Ground St. Thomas, VI Phone: 340/ Fax: 340/ sedhalbert@yahoo.com Patricia McDonald Commissioner VT Dept. of Labor P.O. Box 488 Montpelier, VT Phone: 802/ Fax: 802/ pmcdonald@det.state.vt.us Laurie Dolan Director Executive Policy Office P.O. Box Olympia, WA Phone: 360/ Fax: 360/ laurie.dolan@ofm.wa.gov Tim Casper Director of Agency Affairs Office of the Governor, State Capitol 115 East Street Madison, WI Phone: 608/ Fax: 608/ tim.casper@gov.state.wi.us Tom Bulla Secretary Department of Commerce State Capitol, Building 6, Room 525 Charleston, WV Phone: 304/ Fax: 304/ tbulla@wvdo.org Brian Kastick Director of Public Policy and Federal Affairs Office of the Governor, State Capitol 1900 Kanawha Blvd. East Charleston, WV Phone: 304/ Fax: 304/ bkastick@wvgov.org Kathy Emmons Director Dept. of Workforce Services 1001 Herschler Bldg., 2 East 122 W. 25th Street, Room 2118 Cheyenne, WY Phone: 307/ Fax: 307/ kemmon@state.wy.us Sam Western Senior Policy Advisor Office of the Governor 200 W. 24th Street, 124 State Capitol Cheyenne, WY Phone: 307/ sweste@state.wy.us P AGE 12

17 Section III: Information on Federal Workforce Development Programs and Policies There are a number of federal programs that seek to help workers and job-seekers increase their skill levels, businesses become more competitive, and low-income families become more selfsufficient. Funding sources include federal programs that states administer as well as block grants for states to implement a range of workforce development and human services programs. The programs differ in the amount of flexibility states are given to use funds, set policies and structure programs. Following are fact sheets that provide brief overviews of major federal workforce development programs: Workforce Investment Act Employment Services Senior Community Service Employment Program Employment Services for Veterans TANF (Temporary Assistance for Needy Families) The Carl D. Perkins Vocational-Technical Education Act Adult Education and Family Literacy Programs Vocational Rehabilitation HUD Employment, Training, and Support Services Community Service Block Grant The Food Stamp Employment and Training (E&T) Program Manufacturing Extension Partnership Trade Adjustment Assistance Program P AGE 13

18 FACT SHEET WORKFORCE INVESTMENT ACT Background Technological change and the global economy have radically changed workers' lives from the lifelong employment they knew just one generation ago. Today's workers whether new or experienced must engage in a continuing process of developing their skills and abilities to perform effectively in changing work environments. All must be ready, willing and able to make multiple job changes either with one employer or with several employers just as successful businesses often have to make changes in markets or market focus. The dynamic nature of the global economy requires forward thinking and quick action to take advantage of the opportunities being created. Workers and employers must be increasingly informed about available and emerging employment and training options in order to make decisions that will ensure both their short- and long-term success. Passage of the Workforce Investment Act (WIA) in August 1998 culminated a fouryear bipartisan effort of the Administration and the Congress to design a revitalized workforce investment system that would be responsive to these pressures and these opportunities. WIA represents a national consensus on the need to restructure scores of workforce development programs into an integrated workforce investment system that can better respond to the employment needs of its customers current workers, unemployed workers, workers laid-off due to restructuring or downsizing, and new entrants to the labor force and the employer community. This legislation has provided opportunities for major reforms and the achievement of several key objectives improving the quality of the workforce, reducing welfare dependency, and enhancing the productivity and competitiveness of the nation. States and local communities, together with business, labor, community-based organizations, educational institutions, and other partners, have been working together to design a customerfocused, comprehensive delivery system. The Principles of the Workforce Investment Act The successful implementation of WIA rests on seven key principles: Streamlining services through better integration at the street level in the OneStop delivery system. Programs and providers co-locate, coordinate and integrate activities and information, so that the system as a whole is coherent and accessible for individuals and businesses alike. Empowering individuals in several ways. First, eligible adults are given financial power to use Individual Training Accounts (ITAs) at qualified institutions. These ITAs supplement financial aid already available through other sources, or, if no other financial aid is available, they may pay for all the costs of training. Second, individuals are empowered with greater levels of information and guidance, through a system of consumer reports that provides key information on the performance outcomes of training and education providers. Third, individuals are empowered by the advice, guidance, and support P AGE 14

19 available via the One-Stop system, and the activities of One-Stop partners. Universal access. Any individual has access to the One-Stop system and to core employmentrelated services. Information about job vacancies, career options, student financial aid, relevant employment trends, and instruction on how to conduct a job search, write a resume, or interview with an employer is available to any job seeker in the U.S. or anyone who wants to advance his or her career. Increased accountability. The goal of the Act is to increase employment, retention, and earnings of participants, and in doing so, improve the quality of the workforce to sustain economic growth, enhance productivity and competitiveness, and reduce welfare dependency. Consistent with this goal, the Act identifies core indicators of performance that State and local entities managing the workforce investment system must meet or suffer sanctions. However, State and local entities exceeding the performance levels can receive incentive funds. Training providers and their programs also are required to demonstrate successful performance to remain eligible to receive funds under the Act. In addition, participants, with their ITAs, have the opportunity to make training choices based on program outcomes. Training providers must make accountability for performance and customer satisfaction a top priority in order to survive in the market. Strong role for local workforce investment boards and the private sector, with local, businessled boards acting as ``boards of directors,'' focusing on strategic planning, policy development and oversight of the local workforce investment system. Business and labor have an immediate and direct stake in the quality of the workforce investment system. Their active involvement is critical to the provision of essential data on what skills are in demand, what jobs are available, what career fields are expanding, and the identification and development of programs that best meet local employer needs. State and local flexibility. States and localities have increased flexibility, with significant authority reserved for the Governor and chief elected officials, to build on existing reforms in order to implement innovative and comprehensive workforce investment systems tailored to meet the particular needs of local and regional labor markets. Improved youth programs linked more closely to local labor market needs and community youth programs and services with strong connections between academic and occupational learning. Youth programs include activities that promote youth development and citizenship, such as leadership development through voluntary community service opportunities, adult mentoring and follow-up, and targeted opportunities for youth living in high poverty areas. Promising Approaches Used by One-Stop Centers Since the beginning of the Department s One-Stop initiative in 1994, some valuable perspectives have been gained from the examination of State and local partner implementation activities. These factors have facilitated the development of effective One-Stops (under the initiative and now under WIA). They include: A strong history of collaboration among local workforce development programs; The involvement of direct service staff from participating agencies in the planning of shared facilities and consolidated services; Formal planning linkages between the One-Stop system and the education and welfare systems at both the state and local levels; P AGE 15

20 Careful attention to the capacity building needs of One-Stop managers and local staff to help prepare them to deliver integrated customer services. The Department of Labor disseminates promising practices being utilized by states and local communities in establishing and operating their One-Stop systems under WIA. This information is collected through a variety of approaches including research projects designed to identify, document and widely disseminate success stories and best practices of One-Stop systems that are operating under WIA. The Department maintains a frequently updated Web page ( where state and local grantees and partners can access information on promising practices, the law, regulations, public policy, questions and answers, and technical assistance materials on One-Stop service delivery and the other important components of WIA. Titles Enacted Under The Workforce Investment Act of 1998 The following provides a brief description of the various titles enacted as part of the Workforce Investment Act of This information is provided by the Department of Labor and can be accessed at Title I authorizes the Workforce Investment System. Title I authorizes the establishment of State workforce investment boards and the development of state five-year strategic plans. Governors designate local "workforce investment areas" and oversee local workforce investment boards. It further authorizes Youth councils to be set up as a subgroup of the local board to guide the development and operation of programs for youth. A "One-Stop" delivery system benefits customers via career centers in their neighborhoods where they can access core employment services and be referred directly to job training, education, or other services. Title I requires that standards for success be established for organizations that provide training services and outlines a system for determining their initial eligibility to receive funds. It establishes the funding mechanism for States and local areas, specifies participant eligibility criteria, and authorizes a broad array of services for youth, adults, and dislocated workers. It also authorizes certain statewide activities and a system of accountability to ensure that customer needs are met. Also authorized are a number of national programs including the Job Corps; Native American programs; Migrant and Seasonal Farmworker programs; Veterans Workforce Investment programs; Youth Opportunity grants for high-poverty areas; technical assistance efforts to States and local areas; demonstration, pilot, and other special national projects; program evaluations; and National Emergency grants. Title II reauthorizes Adult Education and Literacy programs for Fiscal Years Title III amends the Wagner-Peyser Act to require that Employment Service/Job Service activities become part of the "One-Stop" system and establishes a national employment statistics initiative. It requires linkages between the Act s programs and Trade Adjustment Assistance and North American Free Trade Agreement Transitional Adjustment Assistance programs. It establishes a temporary "Twenty-First Century Workforce Commission" to study issues relating to the information technology workforce in the United States. Title IV reauthorizes Rehabilitation Act programs through Fiscal Year 2003 and links these programs to State and local workforce development systems. Title V contains general provisions that include authority for State unified plans relating to several workforce development programs, incentive grants for States exceeding negotiated performance levels under the Workforce Investment Act, Adult Education Act, and Perkins Vocational Education Act, and transition provisions. P AGE 16

21 FACT SHEET EMPLOYMENT SERVICES U.S. DEPARTMENT OF LABOR, EMPLOYMENT AND TRAINING ADMINISTRATION The Wagner-Peyser Act, which authorizes public employment offices nationwide, has been the source of job matching services for both job seekers and employers for over sixty years. Today, Wagner- Peyser funded employment services are delivered through state and locally designed One-Stop systems and are a critical element in ensuring universal access to core services in One-Stops. There are currently three identifiable program components to Wagner-Peyser: the broad requirement for the public labor exchange; line item budget authority for targeted re-employment services to claimants of unemployment insurance; and a requirement that states maintain and continuously improve a statewide employment statistics (labor market information) system for the benefit of the workforce system s customers. Funding for all three of these functions is provided to states on a formula basis (the formula varies based on the program component) with significant flexibility for states to use the funds to support labor exchange and information service delivery. All Wagner-Peyser employment services are provided without charge to job seekers and employers. Currently, 97% of the employment service s annual appropriations are derived from a Federal payroll tax on employers. The remaining three percent of the funding is derived from general revenues. To assist employers and job seekers, employment services are made available in self-service, facilitated self-help, and staff-assisted formats. Broadly, funding is used to provide job seekers with job search assistance, career information, counseling, assessment, testing, and referrals to other employment and training services. It is also one of the few funding sources targeted directly to serving employers with services that may include labor market information, job matching, applicant screening, assistance with mass recruitments, job fairs, as well as assistance with downsizing or plant closings. Wagner-Peyser employment services are available to all persons legally authorized to work in the United States. A key feature of the Wagner-Peyser Act is the requirement to provide priority of service to veterans. Other required uses for Wagner-Peyser authorized funds include providing re-employment services to Unemployment Insurance (UI) claimants; the Monitor Advocate Program which is designed to facilitate the matching of agricultural employers and migrant and seasonal farm workers as well as the prevention of discrimination against migrant workers; and making job counseling available to any person with a disability. In the past decade, technology has dramatically changed the methods of service delivery for Wagner- Peyser employment services. Almost every state now offers services directly over the Internet as well as in a staff assisted mode. In addition, the Employment and Training Administration (ETA) is now funding the development of a suite of national electronic tools, America s Career Kit. The kit includes an array ofemployment and training products including America s Job Bank, America s Career P AGE 17

22 Information Network, America s Learning Exchange, and America s Service Locator. These tools are developed in concert with the states, service delivery partners, and they are overseen by a federal/state governance body called the National Electronic Tools Board. The federal government, through the U.S. Department of Labor s Employment and Training Administration, provides general direction, funding, and oversight for Wagner-Peyser employment and information activities. P AGE 18

23 FACT SHEET SENIOR COMMUNITY SERVICE EMPLOYMENT PROGRAM (SCSEP) U.S. DEPARTMENT OF LABOR, EMPLOYMENT AND TRAINING ADMINISTRATION Legislative Authority Public Law , Older Americans Act of 1965, as Amended: Title V-Community Service Employment for Older Americans (SCSEP). The legislation was reauthorized in November 2000 and there were important changes. Program Description The program provides subsidized, part-time employment to low-income persons age 55 and older. Program participants work an average of 20 hours a week, are paid at least the federal minimum wage, and are employed in a wide variety of community service activities and facilities, including daycare centers, schools and hospitals. A typical enrollee is said to be a 65-year-old female with some high school education. The SCSEP also furnishes participants with personal and job related counseling, annual physical examinations, job training and job referral. There are currently 69 grantees operating the program. Most grant awards are made to units of state governments. In 2005 awards also went to thirteen national nonprofit organizations, including the AARP, the U.S. Forest Service, Easter Seals, and the National Council on the Aging. In most states, the Governor has selected the State Office on Aging to administer the program. A few states utilize the state workforce agency. States often sub-grant with Area Agencies on Aging or with community-based organizations to operate local projects that place participants in jobs at "host" agencies where they provide community services. Program performance measures are currently under revision (as of July 2005). Current performance measures include the number of people served, the community services provided, retention in employment, and customer satisfaction. If adopted, new measures may include six-month earnings increases and indicators of service to most in need, such as individuals age 60 or older with disabilities, at or below the poverty level, geographically or socially isolated, or with poor employment histories. Failure to meet the performance standards may result in the loss of funds. Participant Eligibility Program participants must be age 55 or more and have a family income, which is no more than 125 percent of the federal poverty level. Enrollment preference is given to low-income people, who are over the age of 60. P AGE 19

24 Coordination/Linkages As a way of maximizing resources to serve older workers, SCSEP sponsors are directed to coordinate with other providers of services to older workers. SCSEP grantees have established working agreements with One-Stop centers, Job Corps Centers, the private sector, child care providers and adult education and literacy agencies. SCSEP project operators are mandatory OneStop partners. SCSEP sponsors are establishing cooperative relationships at the local level under WIA. Local SCSEP project operators provide staff and access to the SCSEP at many OneStop offices. Budget Data For FY 2005, approximately $440,200,000 was appropriated for the SCSEP program. Historically, this money has been allocated to every state on a formula basis and then divided, so that 22 percent is provided to the Governors. The Governors portion of the program funds may be included in the State Unified Plans under the Workforce Investment Act. However, under the amended Act of 2000, funding levels for national sponsors and state agencies can vary each year depending on the total amount of funds. Program Activities Some of the community service jobs that enrollees perform under the SCSEP include: Bookkeepers Child Care Workers Clerks Counselors Drivers Fire Prevention Aides Health Aides Library Assistants Nutrition Workers Physical Rehabilitation Aides Planners Teacher Aides Telephone Hotline Counselors Participant Benefits In addition to the wages and benefits provided to enrollees, other services include classroom training, counseling, GED training, and skills training. P AGE 20

25 FACT SHEET EMPLOYMENT SERVICES FOR VETERANS U.S. DEPARTMENT OF LABOR, VETERANS EMPLOYMENT AND TRAINING SERVICES The U.S. Department of Labor's Veterans' Employment and Training Service (VETS) offers employment and training services to eligible veterans through two principal programs: Disabled Veterans' Outreach Program (DVOP) Local Veterans' Employment Representatives Program (LVER) Funds are allocated to State Workforce Agencies in direct proportion to the number of veterans seeking employment within their state. The grants support staff positions in the DVOP and LVER programs. The U.S. Department of Labor's Veterans' Employment and Training Service is codified under Title 38 United States Code, Chapters 41, 42, and 43. Disabled Veterans' Outreach Program The U.S. Department of Labor provides grant funds to each State's employment service to maintain DVOP specialist positions in the State. The staffing formula and current appropriations level support about 1,400 DVOP specialists nationally. DVOP specialists are employees of the State and are generally located in State employment service offices and One-Stop Centers. About one-quarter are out-stationed, full or part-time, in locations other than employment service offices to provide services to veterans who might otherwise not utilize public labor exchange services. DVOP specialists provide direct client services, and they develop job and training opportunities for veterans, with special emphasis on veterans with service-connected disabilities. DVOP specialists perform outreach activities to provide services to disabled veterans and to develop employment and training opportunities for disabled and other veterans. DVOP specialists work with employers, veterans' organizations, the Departments of Veterans Affairs and Defense, and community-based organizations to link veterans with appropriate jobs and training opportunities. DVOP specialists serve as case managers for veterans enrolled in federally-funded job training programs such as the Department of Veterans Affairs' Vocational Rehabilitation program. They also provide similar case management services for other veterans with serious disadvantages in the job market. DVOP specialists are available to those veterans and their employers to help ensure that necessary follow up services are provided to promote job retention. Out-stationed DVOP specialists may be stationed at medical or veterans' outreach centers of the Department of Veterans Affairs, state or county veterans' service offices, community-based organizations, and military installations. P AGE 21

26 DVOP specialists can be contacted via State Employment Service (sometimes known as Job Service) agencies. Local Veterans' Employment Representatives Usually, one full-time LVER is allocated to local employment service offices for each 1,100 or more veterans who registered for assistance in the preceding year. One half-time LVER is allocated to offices at which at least 350 veterans registered for help. This formula and the current appropriation level for the program support about 1,300 LVERs nationwide. State Employment Service Agency management may deviate from the allocation formula in the actual assignment of positions to specific locations. LVERs are state employees located in state employment service offices and One-Stop centers to provide assistance to veterans by: Providing functional supervision of all services provided to veterans by employment service employees, including counseling, testing, and identifying training and employment opportunities; Monitoring job listings from federal contractors to see that eligible veterans get priority in referrals to these jobs; Monitoring federal department and agency vacancies listed at local state employment service offices, and by forwarding to VETS, complaints from veterans regarding the observance of veterans' preference by federal employers; Promoting and monitoring the participation of veterans in federally-funded employment and training programs; Cooperating with the Department of Veterans Affairs to identify and aid veterans who need work-specific prosthetic devices, sensory aids or other special equipment to improve their employability; Performing outreach to community leaders, employers, unions, training programs and veterans' service organizations to promote employment and training opportunities for veterans and to ensure eligible veterans receive all benefits to which they are entitled. The information presented above is based on one of a series of fact sheets highlighting U.S. Department of Labor programs. It is intended as a general description only and does not carry the force of legal opinion. P AGE 22

27 FACT SHEET TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF) On August 22, 1996, "The Personal Responsibility and Work Opportunity Reconciliation Act of 1996," a comprehensive bipartisan welfare reform plan that dramatically changed the nation's welfare system into one that requires work in exchange for time-limited assistance was signed into law. The Temporary Assistance for Needy Families (TANF) program replaces the former Aid to Families with Dependent Children (AFDC) and Job Opportunities and Basic Skills Training (JOBS) programs, ending the federal entitlement to assistance. In TANF, states and territories operate programs, and tribes have the option to run their own programs. States, territories, and tribes each receive a block grant allocation with a requirement on states to maintain a historical level of state spending known as maintenance of effort. The total federal block grant is $16.5 billion each year until fiscal year (FY) 2002 or re-authorization. The block grant covers benefits, administrative expenses, and services. States, territories, and tribes determine eligibility and benefit levels and services provided to needy families. The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) gives states enormous flexibility to design their TANF programs in ways that promote work, responsibility, and selfsufficiency, and strengthen families. Except as expressly provided under the statute, the federal government may not regulate the conduct of states. Congress was to reauthorize the welfare reform law by October 1, Currently, the TANF program has not been re-authorized, but has been extended through September 30, States may use TANF funding in any manner "reasonably calculated to accomplish the purposes of TANF" (see "A Guide on Funding Services for Children and Families through the TANF Program"). These purposes are: to provide assistance to needy families so that children can be cared for in their own homes; to reduce dependency by promoting job preparation, work and marriage; to prevent out-ofwedlock pregnancies; and to encourage the formation and maintenance of two-parent families. Highlights of TANF Work requirements. With few exceptions, recipients must work after two years on assistance. Fifty percent of all single-parent families on the rolls in each state must be engaged in work activities. Single parents must participate for at least 30 hours per week. Ninety percent of two-parent families must work at least a combined 35 hours per week. Unless a state opts out, non-exempt adult recipients who are not working must participate in community service two months after they start receiving benefits. Single parents with a child under 6 who cannot find child care cannot be penalized for failure to meet the work requirements. States can exempt from the work requirement single parents with children under age one and disregard these individuals in the calculation of participation rates for up to 12 months. Failure to participate in work requirements can result in either a reduction or termination of benefits to the family. Work Activities. To count toward state work requirements, recipients are required to participate in unsubsidized or subsidized employment, on-the-job training, work experience, community service, 12 months of vocational training, or they must provide child care services to individuals who are participating in community service. Up to 6 weeks of job search (no more than 4 consecutive weeks) P AGE 23

28 will count toward the work requirement. However, no more than 25 percent of those meeting the participation rates of each state's caseload may count toward the work requirement solely by participating in vocational training or by being a teen parent in secondary school. The teen parent limitation is phased in over several years. A five-year (60 total months) time limit. Families who have received assistance for five cumulative years (or less at state option) are ineligible for cash aid. States are permitted to exempt up to 20 percent of their caseload from the time limit, and states have the option to provide non-cash assistance and vouchers to families that reach the time limit using Social Services Block Grant or state funds. State maintenance of effort requirements. States must maintain their own spending on welfare at 80 percent or more of FY 1994 levels. States must also maintain spending at 100 percent of FY 1994 levels to access a $2 billion contingency fund designed to assist states affected by high population growth or economic downturn. In addition, states must maintain 100 percent of FY 1994 or FY 1995 spending on child care (whichever is greater) to access additional child care funds beyond their initial allotment. To receive their full allocation, states must demonstrate they are spending on activities related to TANF 80 percent of the amount of non-federal funds they spent in FY 1994 on AFDC and related programs. If they meet minimum work requirements, their mandatory state effort is reduced to 75 percent. Additional Funding Performance bonus to reward work and reductions in out-of-wedlock births. Through FY 2003, $1 billion was available for performance bonuses to reward states for moving welfare recipients into jobs. There was also a $100 million annual appropriation for bonuses to states that reduced the number of out-of-wedlock births and abortions. Although the TANF program has not been reauthorized, the Office of Family Assistance recommends that states collect and report data in order to compete for high performance bonuses that may be offered. Current operation of the TANF program is based on a continuing funding resolution (scheduled to expire September 30, 2005) passed by the Congress. Please see the Office of Family Assistance website at for more detailed information. Contingency fund and loans. A $2 billion contingency fund is available for states as a capped matching grant. States experiencing high or increased unemployment or food stamp enrollment are eligible so long as the state s MOE level is 100 percent. Penalties. States can incur reductions in their block grant allocations for failure to: Satisfy work requirements, a penalty of 5 percent in the first year, increasing by 2 percent per year for each consecutive failure with a cap of 21 percent Comply with five-year limit on assistance, a 5 percent penalty Meet state maintenance of effort requirements under either TANF or the contingency fund, based on amount of state underspending Reduce recipient grants for refusing without good cause to participate in work activities, a penalty of between 1 percent and 5 percent, based on the degree of noncompliance and imposed in the succeeding fiscal year Maintain assistance when parents cannot find child care for child under age 6, a penalty of 5 percent Submit required reports, a penalty of 4 percent Comply with paternity establishment and child support enforcement requirements, up to a 5 percent penalty P AGE 24

29 Participate in the Income and Eligibility Verification System, up to a 2 percent penalty Repay a federal loan on time, based on amount unpaid In addition, for the misuse of funds states can be penalized for the amount misused and, if found intentionally misused, an additional penalty of 5 percent. States must expend additional state funds to replace federal penalty reductions. States can seek exceptions under limited conditions and develop a corrective compliance plan before they are penalized. The total penalty assessed in a given year may not exceed 25 percent of a state's block grant allotment. Personal employability plans. States are required to make an initial assessment of recipients' skills. States can also develop personal responsibility plans for recipients that identify the education, training, and job placement services needed to move into the workforce. Teen parent live at home and stay in school requirements. Unmarried minor parents will be required to live with a responsible adult or in an adult-supervised setting and participate in educational and training activities in order to receive assistance. States will be responsible for locating or assisting in locating adult-supervised settings for teens. State Plans. The Department of Health and Human Services (HHS) reviews the plans only for completeness. States must allow for a 45-day comment period on the state plan by local governments and private organizations and consult with them. The state plan must have "objective criteria" which are "fair" and "equitable" for eligibility and benefits and must explain appeal rights. Job subsidies. The law also allows states to create jobs by taking money now used for welfare checks and using it to create community service jobs or to provide income subsidies or hiring incentives for potential employers. State flexibility. States that received approval for welfare reform waivers before July 1, 1997 have the option to operate their cash assistance program under some or all of these waivers until their expiration. Effective dates. States had until July 1, 1997 to submit their state plans and begin implementing TANF, although they could opt to implement earlier. Regulation Final regulations of the welfare reform bill, published by HHS on April 12, 1999, are intended to help all welfare recipients who can work go to work, and to encourage states to work with all families. They provide states with a basic framework for implementing the TANF program, reinforce the importance of work requirements, promote positive outcomes for needy children and families, and fulfill the new federal role of supporting state flexibility, innovation, and success. The regulations incorporate the core TANF accountability provisions, including work requirements, time limits, state penalties, and data collection and reporting requirements. In general, they reflect a limited and restrained federal role. Since Congress specifically limited the authority of the federal government to regulate the TANF program, the regulations cover only areas where Congress specifically directed the Secretary to regulate or where the Secretary is regulating her own actions. P AGE 25

30 FACT SHEET THE CARL D. PERKINS VOCATIONAL-TECHNICAL EDUCATION ACT Background The Office of Vocational and Adult Education (OVAE) in the U.S. Department of Education is responsible for administering The Carl D. Perkins Vocational and Technical Education Act of 1998 (Perkins III). Through this endeavor, OVAE hopes to enhance and support vocational education while promoting overall education reform. Vocational education programs develop the academic, vocational and technical skills of students in high schools and community colleges. Perkins III helps states achieve this goal by focusing on the integration of academic and vocational instruction, student attainment of challenging academic, vocational and technical standards, and development of stronger linkages between education and employers. Purpose Perkins III set out a new vision of vocational and technical education for the 21 st century. The central goals of this new vision are improving student achievement and preparing students for postsecondary education, further learning, and careers. Perkins III supports the alignment of vocational and technical education with state and local efforts to reform secondary schools and improve postsecondary education. The implementation of Perkins III is making vocational and technical education an integral part of these efforts. Together with the Workforce Investment Act of 1998, the Perkins Act of 1998 promotes the development of integrated education and workforce development systems at the state and local level. To promote continuous program improvement, Perkins III created a state performance accountability system. The Secretary of Education and the states reached agreement on annual levels of performance for a number of core indicators specified in the law (see Section 113 of the Carl D. Perkins Act of 1998, P.L ). Incentive grants will be awarded to States that exceed agreed-upon performance levels. Grants may be reduced to states that do not meet agreed-upon performance levels. Federal Funding Available The total Perkins appropriation for FY 2005 was approximately $1.3 billion. The monies cover state grants, Tech-Prep grants, National Programs projects, Occupational and Employment Information (Section 118), the Tech-Prep Demonstration Program, and Tribally Controlled Postsecondary Vocational and Technical Institutions. P AGE 26

31 Program Descriptions State Basic Grant Of the total Perkins appropriation, $1.1 billion was allocated in FY 2005 for State Basic Grants. Under the Perkins Act, federal funds are made available to help provide vocational-technical education programs and services to youth and adults. The vast majority of funds under the Perkins Act are awarded as grants to state education agencies. The State Basic Grants are allotted to states according to a formula based on states populations in certain age groups and their per capita income. Of the $1.1 billion, 85% must go to secondary and postsecondary schools, no more than 10% should carry the State leadership activities, and no more than 5%, or $250,000, which ever is greater should go to administration of the state plan. Only State Boards for Vocational Education are eligible to apply for State Basic Grants. The distribution of grant funds within the state is directed to priority items established by the state in accordance with an approved 5-year state plan for vocational-technical education. Local education agencies and postsecondary institutions are eligible recipients for sub-grants. There are several required state leadership activities. They include the following: assessment of vocational and technical education programs, including an assessment of how the needs of special populations are being met, improvement of the use of technology in vocational and technical education, professional development programs for academic, guidance, and administrative personnel, integration of academics with vocational and technical education, and providing preparation for nontraditional training and employment. Tech-Prep Grant In FY 2005, $106 million of the total Perkins appropriation was allotted to states for Tech Prep grants. Tech Prep programs contain an articulation agreement. Tech Prep programs must involve a minimum of two years of secondary education and at least two years of postsecondary education or an apprenticeship program of, at least, two years following secondary instruction. Each program should have a common core of required proficiency in math, science, reading, writing, communications, and technologies. Tech-Prep should meet academic standards developed by the state and link secondary and two-year postsecondary institutions, and if possible, 4-year postsecondary institutions. In addition, each program, where possible and appropriate, uses work-based learning, educational technology, and distance learning. Tech- Prep should include in-service training for teachers and counselors and provide equal access to special populations. The funds can also be used to purchase equipment, acquire technical assistance from state and local entities with experience in tech-prep, and establish articulation agreements with other postsecondary institutions and employers. National Activities $11.7 million of the Perkins FY 2005 appropriation allows for the Office of Vocational and Adult Education to administer discretionary projects such as the following: assisting states in improving their accountability systems, completing the implementation of the 16 Career Clusters, and supporting the National Research and Dissemination Centers. Other efforts such as high school reform and educator professional development are supported with these monies. Tech-Prep Demonstration Program Authorized by Section 207 of the Carl D. Perkins Vocational and Technical Education Act of 1998 (P.L Perkins III ), approximately $5 million was appropriated for FY 2005 to enable eligible consortia to carry out Tech-Prep Education projects that involve facilitating the P AGE 27

32 location of a secondary school on the site of a community college, making a business a member of the consortium, and stimulating the voluntary participation of secondary school students. All TPDP projects must fully implement the core requirements of Tech-Prep Education under Title II of Perkins III. America s Career Resource Network: Section 118 Perkins III, Section 118, has received an appropriation of $9 million for FY America s Career Resource Network (ACRN) aims to help states provide support for career guidance and academic counseling. It promotes easier accessibility of occupational and employment information. P AGE 28

33 FACT SHEET ADULT EDUCATION AND FAMILY LITERACY PROGRAMS The Division of Adult Education and Literacy (DAEL) of the U. S. Department of Education, Office of Vocational and Adult Education funds programs authorized under Title II of the Workforce Investment Act of DAEL has overall responsibility for enabling adults to acquire the basic skills needed to function in today s workplace and society. The program of Basic Grants to States is the major source of federal support for programs that assist adults in obtaining a high school diploma, attaining citizenship, participating in job training, acquiring parenting skills and functioning effectively in the workplace. Grants to states are allocated by a formula based upon the number of adults, over age 16, who have not completed high school in each state. Eligible local providers include local educational agencies, community colleges, correctional institutions, and community-based organizations. Local programs emphasize reading, writing, math, basic computer skills, English language acquisition, as well as communication and interpersonal skills. The Workforce Investment Act also requires participation of local adult education programs in One-Stop Center programs. National and State Leadership Funds are available for projects such as professional development, workplace education, family literacy, accountability and measurement, and program evaluation. Information on the basic grants is available from State Directors of Adult Education. P AGE 29

34 FACT SHEET VOCATIONAL REHABILITATION Title I of the Rehabilitation Act of 1973 (the Act), as amended, authorizes the State Vocational Rehabilitation (VR) Services Program. The purpose of Title I of the Act is to assist states in operating statewide comprehensive, coordinated, effective, efficient, and accountable VR programs, each of which is an integral part of a statewide workforce investment system. VR programs must also be designed to assess, develop, and provide services for individuals with disabilities to assist them in achieving high quality employment outcomes consistent with their strengths, priorities, abilities, and informed choice. At the federal level, the Rehabilitation Services Administration (RSA) within the Department of Education is the agency responsible for the VR program. At the state level, the program is usually administered by a state agency that either is primarily concerned with VR or VR and other rehabilitation of individuals with disabilities. Alternatively, the VR program may be administered by a state agency that is not primarily concerned with VR or other rehabilitation services for individuals with disabilities. If the VR program is managed by a stage agency not primarily involved with VR or other rehabilitation services, this state agency must include a unit, bureau, or division that is concerned with VR or with VR and other rehabilitation services for individuals with disabilities. In some states, there are two state VR agencies - one that serves only individuals with visual impairments and the other serving individuals with all other types of disabilities. Nationally, there are 82 state VR agencies. The VR program is funded jointly by the states and the federal government. In FY 2005, approximately $2.6 billion in federal support was provided to the States for the VR program. In order to access the federal VR funds, states must match the federal funds. The state required match is 21.3 percent of federal funds. To be eligible for VR services, an individual must have a physical or mental impairment that constitutes or results in a substantial impediment to employment. In addition, the individual must be able to obtain an employment outcome from VR services and has to require VR services to prepare for, secure, retain, or regain employment. Individuals are presumed to be able to obtain an employment outcome from the provision of VR services, unless the State VR agency can demonstrate by clear and convincing evidence that the individual, due to the severity of the disability, is incapable of benefiting. Social Security Disability Insurance beneficiaries and Supplemental Security Income recipients are presumed to be eligible for VR services, unless the presumption of benefit can be rebutted by clear and convincing evidence. Services provided under the VR program are any services described in an Individualized Plan for Employment (IPE) necessary to assist an individual in preparing for, securing, retaining, or regaining a high quality employment outcome that is consistent with the individual's strengths, priorities, abilities, and informed choice. The IPE can be developed by the individual (or the individual's representative), or if the individual chooses, the plan can be developed with the assistance of others, including a counselor from the State VR agency. Services identified in the IPE must be designed to address the unique employment needs of the individual so as to enable the person to achieve the desired employment outcome. While the individual has a broad scope of choice in terms of identifying the IPE's employment outcome, the services to be provided, the provider of the services, and the settings in which the services are provided, the approval of the IPE ultimately rests with the VR agency counselor. P AGE 30

35 On a yearly basis, the VR program serves approximately 1.2 million individuals with about 80 percent of the individuals being classified as persons with significant disabilities. The Rehabilitation Services Administration (RSA) estimates that approximately a quarter of a million individuals with disabilities enter work, return to work, or become self-employed with the assistance of State VR agencies every year. The Act places emphasis on serving individuals with significant disabilities, particularly individuals with the most significant disabilities. This emphasis is most clearly seen when a State VR agency cannot provide the full range of VR services to all individuals eligible for VR services. In such an instance, the State VR agency must implement an order of selection in the provision of services with first priority given to individuals with the most significant disabilities. P AGE 31

36 FACT SHEET U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT EMPLOYMENT, TRAINING, AND SUPPORTIVE SERVICES Unlike other Federal agencies, most of the programs of the U.S. Department of Housing and Urban Development (HUD) operate through a direct relationship between the Department and local public housing agencies, local governments, and non-profits or other organizations. The programs described below include some that are formula driven and others that are competitively awarded. Since it is the exception, rather than the rule, that a HUD program would have a state plan, and because HUD s funding cycles vary by program, an inclusion of HUD programs in a state plan will not drive HUD s funding decisions. Resident Opportunities and Self-Sufficiency Program (ROSS) This program provides grants on a competitive basis to Public Housing Authorities (PHAs), Indian Housing Authorities, resident organizations, and cooperating non-profit organizations for services designed to enhance the self-sufficiency of residents of public housing. There is a wide range of eligible activities, including employer linkage and job placement, education, employment training, counseling, computer training, as well as many others. Approximately $55 million was awarded for FY 2005 under the ROSS program. Family Self-SufficienCY (FSS) The National Affordable Housing Act of 1990 authorized this program which promotes the development of local strategies to coordinate use of rental subsidies to help residents of public housing and participants in the Section 8 rental voucher programs become self-sufficient through education, training, case management, and other supportive services. FSS participants also build assets. As a resident s rent increases due to increased earnings, an amount equal to all or part of that increased rent is deposited into an interest-bearing escrow account that participants receive upon successful program completion. Many PHAs partner with local Temporary Assistance for Needy Families (TANF) agencies to hire FSS service coordinators. Welfare to Work Rental Voucher Program This voucher program subsidized rents of low-income families to enable them to rent apartments near available jobs, transportation, or childcare. These Section 8 vouchers targeted families who received, were eligible for, or left welfare within 2 years and for whom housing assistance was essential to obtaining or retaining employment. This program was initiated in late 1999 with $280 million in rental assistance vouchers to help 50,000 families in 35 states move successfully from welfare to work, and phase-out of the program began March 11, Flexible Voucher Program In FY 2005 the Flexible Voucher Program was introduced, featuring performance based bonuses to PHAs that P AGE 32

37 successfully move families into independent living and self-sufficiency. This is measured by changes in the number of families receiving assistance and the number of households whose predominant source of income is work. Bonuses may be used for, among other activities, job training, vocational and educational activities, and counseling. Youthbuild Youthbuild is a competitively awarded program that provides opportunities to economically disadvantaged young adults (ages 16-24) to achieve self-sufficiency. Participants learn construction skills through hands-on experience as well as education, social services, counseling, and leadership training. For FY 2005, HUD will award up to approximately $65 million on a competitive basis. Public Housing Capital Fund The Capital Fund provides funding on a formula basis to all PHAs taking into account size, location, age, occupancy and other factors reflecting the cost of running a well-managed public housing development. Up to 20 percent of the annual grant may be used for management improvements including support for activities to assist residents in becoming employed. Funding for FY 2005 is $2.7 billion. Community Development Block grant (CDBG) Program CDBG funds can be used to provide permanent jobs through economic development projects. CDBG funds are also used to provide job training and supportive services that help low--income persons seek and retain employment. Up to 15 percent of each community's CDBG allocation may be used for services, and much of that can be spent on job training and related areas. CDBG funding is allocated primarily through entitlement communities (metropolitan cities and urban counties) and through state and small city programs. The CDBG entitlement appropriation for FY 2005 is $4.3 billion. HOPE VI This program awards competitive grants to PHAs for the comprehensive revitalization of severely distressed public housing developments. Unlike traditional modernization programs, HOPE VI requires PHAs to focus on the economic and social needs of residents as well as the physical conditions of the development. Up to 15 percent of a project s funds may be used for supportive services such as education, job training, employment, and child care assistance. Funding for FY 2005 is approximately $143 million and will be allocated to PHAs by September 27, Hope VI funds are subject to rescission prior to HUD making its awards, as the Bush Administration s FY 2006 budget has proposed recapturing the $143 million in Hope VI budget authority that was included in the FY 2005 budget. Neighborhood Networks Neighborhood Networks is a community-based approach to establishing computer-learning centers in public and assisted housing developments. Neighborhood Networks computer-learning centers give residents access to the job skills training, formal education, and community services needed for employment. While no specific funds are provided for Neighborhood Networks, assisted housing P AGE 33

38 owners may use certain project funds and public housing agencies may use Public Housing Capital funds, HOPE VI funds and operating subsidy or they may apply for ROSS funds. Over 650 Neighborhood Network Centers are currently in operation nationwide. Step-Up Step-Up provides an apprenticeship-based framework for preparing public housing residents and other lowincome persons for employment in the construction trades and building maintenance. There is no specific funding for Step-Up, but agencies may use funds from existing programs such as HOPE VI, Community Development Block Grant, and ROSS as well as funds from other sources, including Workforce Investment Act (WIA) and Welfare-to-Work grants. Public and Indian Housing Drug Elimination Program This program provides funding for counseling, education, training, physical improvement, local law enforcement, and other activities relating to the prevention and elimination of drug abuse and crime in public and tribal housing. Employment and training activities are funded as part of prevention efforts. P AGE 34

39 FACT SHEET What Is CSBG? COMMUNITY SERVICES BLOCK GRANT The Community Services Block Grant (CSBG) Program provides funds to states, the District of Columbia, the Commonwealth of Puerto Rico, U.S. Territories, Indian tribes, tribal organizations, Community Action Agencies, and several hundred other local-based organizations to address the conditions and causes of poverty in communities. Grantees use CSBG funds to provide a range of services and activities to assist low-income individuals, including the homeless, migrants, and the elderly. Funds are used to address problems of employment, education, better use of available income, housing, nutrition, emergency services, health, coordination of resources, and community participation. Annual applications are required for the CSBG award. A notice reminding states and Indian tribes/tribal organizations to submit annual applications is sent in July each year. States and tribes are required to submit annual applications with specified assurances, which are mandated by the CSBG Act. Notice of the availability of funds is made once the Congress appropriates and the Office of Management and Budget apportions the funds. Authorizing Legislation The Community Services Block Grant Act, Title VI, Subtitle B, of the Omnibus Budget Reconciliation Act of 1981, P.L , as amended; and the Coats Human Services Reauthorization Act of 1998, P.L Special Initiative Of the CSBG funds appropriated, a portion is used for training, technical assistance, planning, evaluation, and data collection. This is part of a CSBG-wide program initiative to develop the capacity of states and local community services agencies to provide outcome data. These funds support training at national, state and regional association conferences; development and use of special implementation tools such as manuals; scales for incremental measurement at the individual, family and community levels; surveys and survey methodology; electronically-provided economic and demographic mapping data at the neighborhood level; revision of reporting tools; and specific on-site consultative technical assistance efforts. Activities In FY 2005, $626.7 million was made available to states, territories, the District of Columbia, the Commonwealth of Puerto Rico, and federally and state-recognized tribes. A total of approximately $500,000 will be available in FY 2005 for training, technical assistance, and capacity building through the discretionary grant program. P AGE 35

40 The Community Services Block Grant Act requires states to pass through 90% of the federal funds allocated to eligible entities, which in most cases are community action agencies. The Community Services Network is comprised of 1,086 local, private, non-profit and public agencies that work to deliver community services and empower low-income families in communities throughout the United States. Most of these agencies were created through the Economic Opportunity Act. Such agencies serve more than 13 million low-income people yearly in 96 percent of the nation s counties. Together, they leverage more than $9 billion a year from all sectors to provide support, services, facilities, and improvements in low-income communities. The network local agencies of the Community Service Block Grant both represent and are accountable to their local community for the manner in which they pursue their poverty-fighting mission, as well as in the way they use the resources of the CSBG. P AGE 36

41 FACT SHEET THE FOOD STAMP EMPLOYMENT AND TRAINING (E&T) PROGRAM Work has been an integral part of the Food Stamp Program since its nationwide inception in Efforts to encourage and assist participants to reduce food stamp dependency and rejoin the labor force ranged from work registration and job search to requiring them to work in unpaid jobs in exchange for their benefits workfare. The Food Security Act of 1985 (Pub. L ) established, effective April 1, 1987, the Food Stamp Employment and Training (E&T) Program to help job ready food stamp recipients find work and to assist others to gain skills, training, or experience that lead to employment. Each state, as well as the District of Columbia, the Virgin Islands, and Guam, operates an E&T program. The Food Stamp Act of 1977 (Pub. L ) governs the E&T program. As a condition of eligibility for food stamps, individuals who are not specifically exempted by the Food Stamp Act must register for work and participate in the E&T Program if assigned. Over 25 percent of food stamp recipients are registered for work. Approximately two thirds of work registrants are subject to E&T. The remaining recipients are exempted by the states. The agency in each state that operates the Food Stamp Program is also responsible for administering the E&T program. State agencies choose the components that make up their programs, and they identify who is exempt from E&T participation. Program components include job search training and support, independent job search, workfare, basic and advanced educational programs as well as vocational and technical training, work experience or training, and self employment training. States must deliver their E&T components through their statewide workforce investment systems. This promotes state agency access to the One Stop system, where a variety of job training, education, and employment services are available to customers including food stamp recipients at a single convenient location. The Department of Agriculture s Food and Nutrition Service (FNS) administers the E&T program nationwide, provides technical support to State agencies, and funds E&T operations through allocation of a federal E&T grant each fiscal year. If a state agency uses state money over and above its E&T grant to administer the Program, the federal government reimburses 50 percent of the additional state agency costs. The federal government also reimburses 50 percent of state agency costs to authorized limits for dependent care and other participant expenses. The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 PRWORA (Pub. L ) instituted a work requirement for able bodied adults without dependents (ABAWDs). Unless they are exempted by state agencies under authority of the Food Stamp Act, or unless they live in areas in which the participation limit is waived because of high unemployment or a lack of jobs, ABAWDs must meet the following work requirements. They must work at least 20 hours a week, participate for at least 20 hours a week in qualifying education or training activities, or participate in workfare to receive food stamps for more than 3 months in a 36 month period. In response to concerns about the adverse effect of the 3 month participation limit on ABAWDs who want to work but are unable to find jobs, the Balanced Budget Act of 1997 (Pub. L ) allowed P AGE 37

42 state agencies to exempt up to 15 percent of their ABAWDs who would otherwise lose eligibility under the participation limit. The Balanced Budget Act also authorized substantial additional federal funding for E&T programs and targeted the increased funding to ABAWDs. State agencies must maintain or exceed their fiscal year 1996 State expenditures on E&T before they can spend the additional E&T funding amounts made available under the Balanced Budget Act. This Maintenance of Effort requirement affects 37 of the 53 state agencies operating the E&T program. State agencies must earmark at least 80 percent of all federal E&T funds to create opportunities for ABAWDs to participate in qualifying education, training, and workfare activities that allow them to remain eligible for food stamps. State agencies are encouraged to offer every ABAWD facing the education, training, or workfare participation limit an opportunity to take advantage of these above respective activities. State agencies may use the remaining percentages of their grants to fund activities for non ABAWD work registrants or to offer ABAWDs non qualifying activities that advance their employment prospects. P AGE 38

43 FACT SHEET MANUFACTURING EXTENSION PARTNERSHIP Manufacturing Extension Partnership (MEP) is a nationwide network of more than 400 affiliated manufacturing extension Centers and field offices located throughout the country. Each Center works directly with area manufacturers to provide expertise and services tailored to their most critical needs. These needs range from process improvements and worker training to business practices and applications of information technology. The Centers, located in all 50 states and Puerto Rico, are linked together through the Department of Commerce s National Institute of Standards and Technology. Even the smallest firms have access to more than 2,000 knowledgeable manufacturing and business specialists located throughout the network. These are people who have had experience on manufacturing floors and in plant operations. Centers assess a company s current status and provide them with the appropriate technical and business solutions. It is the special combination of each Center s local expertise and their access to national resources that really makes a difference in the work they can do for manufacturing. Today s network has served over 150,000 manufacturers since its inception in MEP s core services include: CAD/CAM/CAE electronic commerce/edi/lan/communications process improvement quality management systems business management systems human resource development market development materials engineering plant layout product development environmental studies financial planning P AGE 39

44 FACT SHEET TRADE ADJUSTMENT ASSISTANCE PROGRAM Background On August 6, 2002 the Trade Adjustment Assistance Reform Act of 2002 was signed into law. Both the Trade Adjustment Assistance (TAA) and the Alternative Trade Adjustment Assistance (ATAA) programs were reauthorized through FY 2007 to provide benefits to workers who are negatively impacted by foreign trade. Eligible citizens may be able to receive several benefits depending on what services are required to help them return to the workforce. In order to receive TAA or ATAA benefits, a group of workers must file a petition with the U.S. Department of Labor, Division of Trade Adjustment Assistance (DTAA), indicating that they have been negatively affected by increased imports or shifts in production out of the U.S. If eligible, the Department of Labor will certify the group of workers, who can then apply individually for benefits and services at local One-Stop Career Centers. TAA Program Services and Benefits There are several benefits and services that are offered to eligible workers under the TAA program: Rapid Response Assistance Each group of employees who file for TAA is eligible to receive Rapid Response assistance. Rapid Response team members will assist workers in how to apply for TAA program benefits at the announcement of a layoff. If a formal petition has already been submitted for TAA benefits, Rapid Response staff will assist workers in understanding all available services. Reemployment Services Usually provided through local One-Stop Career Centers, Reemployment Services offer a wide variety of programs to help workers find new employment opportunities. Reemployment Services provide help through employment counseling, job search programs, resume writing and interview skills workshops, career assessment, job referrals, and job development activities. Job Search Allowances Eligible participants can receive funds to cover costs associated with seeking a job outside of the worker s normal commuting area. Job search allowances are only permissible if suitable jobs are not available in the local area. Workers can be reimbursed up to a total of $1,250 or 90% of the total allowable costs of travel and subsistence. Relocation Allowances Funds are available to reimburse eligible participants for moving to a new area outside of the person s normal commuting region in order to begin new employment. Relocation allowances may include: 1) a lump-sum payment equal to three times the worker s average weekly wage (up to $1,250) to help cover moving expenses, and 2) payment for 90% of the reasonable and necessary costs of moving the worker, family members, and household goods. Training Workers who do not have the necessary skills to obtain employment are eligible to receive training. Activities are targeted to a specific occupation and are intended to provide the worker with the necessary skills needed to obtain a job with comparable wages prior to his or her layoff. Training services have a maximum P AGE 40

45 length of 104 weeks and are conducted in the shortest time frame possible in order to assist the individual in obtaining employment. Workers who require remedial education are allowed an additional 26 weeks of training. Allowable activities include on-the-job training, classroom training, customized training, and basic or remedial education such as in literacy or English as a Second Language. In order to receive training services, workers must meet several eligibility criteria established by the Department of Labor. Trade Readjustment Allowances (TRA) Income support, through Trade Readjustment Allowances, is available to workers as they receive training. Under certain circumstances, individuals who are not able to participate in training activities can also receive TRA. There are two types of income support services including basic TRA and additional TRA, each with their own requirements. TRA is generally available to eligible individuals for up to 104 weeks, with state unemployment insurance (UI) compensation provided for the first 26 weeks, followed by 26 weeks of basic TRA, and then up to 52 weeks of additional TRA if allowable. More specific requirements and regulations can be found at the Department of Labor s website at Training Waivers Under special circumstances, workers can still be eligible to receive TRA assistance without participating in training activities. One or more of the following factors must be present in order for a worker to receive TRA and not participate in training activities: a training program is not available or the worker can not immediately enroll in a training program; poor health of the worker prevents the person from participating in a training activity; the worker is within two years of eligibility for social security or a pension; the worker expects to be employed within the foreseeable future; or the worker will be called back to work reasonably soon. Health Coverage Tax Credit (HCTC) Workers who are able to obtain income support under the TAA program are also eligible to receive a tax credit which can offset up to 65% of their monthly health insurance premium. Tax credits can be applied to health insurance programs under COBRA, state COBRA, a continuing individual plan, or other state-qualified plans. ATAA Program Services and Benefits The ATAA program provides alternative assistance to older workers (50 years of age or older) who possess skills that are not easily transferable and who might not benefit from retraining efforts. ATAA participants agree to accept a lower-paying job in conjunction with a wage subsidy. Eligible workers who accept new, full-time positions of less than $50,000 are able to receive a subsidy equal to 50% of the difference between their old and new salaries. Subsidies are limited to $10,000 over a two year period. Similar to the TAA program, workers under the ATAA program are also eligible to access Rapid Response Assistance, Reemployment Services, Relocation Allowances, and Health Coverage Tax Credits. P AGE 41

46 P AGE 42 G OVERNORS WORKFORCE POLICY ADVISORS 2005 HANDBOOK

47 Section IV: Where Can I Find Research and Other Information on Important Workforce Development Issues? There are a number of good web sites that provide timely information on workforce development research, legislation, and promising practices. The following agencies and organizations provide information on a range of workforce development issues. Government Resources The Census Bureau The Census Bureau collects and provides data about the people and economy of the United States. On the Bureau s site, the American FactFinder provides basic facts, tables, and data sets and allows users to search by keyword or geography, or find Census 2000 data by entering an address ( U.S. Department of Commerce, Economic Development Administration (EDA) EDA was established to work with states and localities to generate new jobs, retain existing jobs, and stimulate industrial and commercial growth in economically distressed areas and regions. The purpose of its program investments is to provide economically distressed communities with a source of funding for planning, infrastructure development, and business financing that will induce private investment in the types of business activities that contribute to long-term economic stability and growth. P AGE 43

48 U.S. Department of Education, Office of Postsecondary Education (OPE) OPE coordinates, directs and recommends policies for programs that are designed to provide financial assistance to eligible students; improve postsecondary educational facilities and programs; recruit and prepare disadvantaged students for postsecondary programs; and promote the domestic study of foreign languages and international affairs, research, and exchange activities. U.S. Department of Education, Office of Vocational and Adult Education (OVAE) OVAE supports national research, demonstration, evaluation, technical assistance and capacity building activities within adult and vocational education. Specific priorities of OVAE lay in the areas of secondary and technical education, community colleges and postsecondary education, adult basic and literacy education, and mathematics and science initiatives. U.S. Department of Labor, Bureau of Labor Statistics (BLS) BLS is the principal fact-finding agency for the Federal Government in the broad field of labor economics and statistics. The BLS is an independent national statistical agency that collects, processes, analyzes, and disseminates essential statistical data to the American public, the U.S. Congress, other Federal agencies, State and local governments, business, and labor. The BLS also serves as a statistical resource to the Department of Labor. U.S. Department of Labor, Employment and Training Administration (ETA) There are a number of offices within ETA: P AGE 44 The Office of Outreach provides workforce information and materials to media, education communities, businesses, industries, and individual

49 citizens regarding the Employment and Training Administration (ETA) and on all outreach-related activities, programs, services, and functions within ETA. The office also coordinates, supports, and promotes local and national outreach activities related to the Assistant Secretary of Labor for Employment and Training. outreach.cfm The Business Relations Group (BRG) serves to create partnerships between the workforce system and business. It applies innovative approaches to help business and industry better access the services of the state and local workforce investment system and to educate the public and the workforce system about the jobs in demand with career paths. The Office of Policy Development, Evaluation and Research (OPDER) supports the continuous improvement of the public workforce system by analyzing, formulating, and recommending legislative changes and options for policy initiatives. OPDER provides ETA with strategic approaches to improve performance and outcomes through its research and demonstration projects as well as its evaluation activities of major ETA programs. opder/ The Workforce Investment System Area is divided into four major offices, with several divisions located within each: The Office of Workforce Investment is responsible for providing national leadership, oversight, policy guidance, and technical assistance to the one-stop public employment service system and the youth and adult employment and training programs funded under the Workforce Investment Act. The Office of Workforce Security is responsible for implementing a national workforce system that provides workers with the information, advice, job search assistance, income maintenance, and training to get and keep good jobs and providing employers with skilled workers. The P AGE 45

50 office also manages strategically in order to ensure high performance, greater public accountability, service quality, and customer satisfaction. Other responsibilities include working collaboratively with partners and stakeholders in business, labor, and local governments and to provide oversight, policy guidance, and technical assistance for the federal-state unemployment compensation system. wrksys/worksec.cfm The Office of National Response is responsible for national leadership, oversight, policy guidance, funding allocations, and technical assistance for Trade Adjustment Assistance and National Emergency Grant programs. NtlResponse.cfm The Office of National Programs is responsible for providing leadership in the design, development, and administration of employment and training services for Native Americans, migrant and seasonal farmworkers, older workers and programs for persons with disabilities. The Performance and Administration Area is divided into five major offices, with several divisions located within each: Job Corps provides education, training and support services to students at Job Corps center campuses located throughout the U.S. and Puerto Rico. Job Corps centers are operated for the Department of Labor by private companies through competitive contracting processes, and by other federal agencies through inter-agency agreements. The Office of Apprenticeship Training, Employer, and Labor Services (OATELS) is responsible for developing materials and conducting a program of public awareness to secure the adoption of training in skilled occupations and related training policies and practices used by employers, unions, and other organizations; developing policies and plans to enhance opportunities for minority and P AGE 46

51 female participation in skilled training; and coordinating the effective use of Federal, labor, and resources to create a clear training-toemployment corridor for customers of the workforce development system. The Office of Financial and Administrative Management (OFAM) is responsible for all ETA resources for programs and activities for which funds are appropriated, and retains its previous functions of accounting, budget and financial system oversight. It also includes functions associated with administrative services and the management and coordination of the Agency's five year strategic plan and annual performance plans and progress reports through the GPRA. The Office of Performance and Technology is responsible for the construction, maintenance and continuous improvement of the technology infrastructure for ETA's national and regional offices. The office develops model systems for state, local and grantee partners so that they can better serve the Agency's direct customers. Other key functions include overseeing the performance information system for workforce investment programs, managing program evaluations, and collaborating with other federal agencies, the Office of Management and Budget, program offices, and stakeholders on cross-cutting measures. The Office of Field Operations facilitates two-way communications between the National Office and the Regional Offices. U.S. House of Representatives Committee on Education and the Workforce The U.S. House Committee on Education and the Workforce has primary jurisdiction over workforce development issues in such areas as higher education, the Workforce Investment Act, K-12 education P AGE 47

52 reform, unemployment, and other areas. U.S. Senate Health, Education, Labor and Pensions Committee The Senate HELP Committee has primary jurisdiction over workforce development issues in the Senate. Trade Associations National Association of Counties (NACo) NACo is a national organization that represents county governments in the U.S. The organization provides an extensive line of services including legislative, research, technical, and public affairs assistance, as well as enterprise services to its members. NACo acts as a liaison with other levels of government, works to improve public understanding of counties, serves as a national advocate for counties, and provides counties with resources. National Association of State Workforce Agencies (NAWSA) NASWA is the national organization of state administrators of unemployment insurance, employment and training services, and labor market information programs in the 50 states, the District of Columbia, and Puerto Rico. The mission of NASWA is to strengthen the National Workforce Development System through advocacy, liaison and information exchange. National Association of Workforce Boards (NAWB) NAWB represents business-led Workforce Boards that plan and oversee state and local workforce development and job training programs. The national organization supports and promotes the work of its members through a comprehensive program of advocacy, technical assistance, and communications activities. P AGE 48

53 National Conference of State Legislatures (NCSL) NCSL is a bipartisan organization that serves the legislators and staffs of the nation's 50 states, its commonwealths and territories. NCSL provides research, technical assistance and opportunities for policymakers to exchange ideas on the most pressing state issues. National Governors Association (NGA) NGA is the collective voice of the nation's governors. NGA provides governors and their senior staff members with a range of services, including representing states on Capitol Hill and before the Administration on key federal issues, developing policy reports on innovative state programs, and hosting networking seminars for state government executive branch officials. NGA s Center for Best Practices helps governors and their key policy staff develop and implement innovative solutions to governance and policy challenges facing them in their states. National Workforce Association (NWA) NWA is a membership organization providing expertise and input to federal, state and local elected officials to enable them to make sound policy decisions about the workforce system. The organization also promotes innovation and excellent performance in locally based workforce programs through conferences, training sessions, publications and peer-to-peer exchanges. U.S. Conference of Mayors The U.S. Conference of Mayors is the official nonpartisan organization of the nation's 1183 U.S. cities with populations of 30,000 or more. The primary roles of the Conference of Mayors are to promote the P AGE 49

54 development of effective national urban/suburban policy; strengthen federal-city relationships; ensure that federal policy meets urban needs; provide mayors with leadership and management tools; and create a forum in which mayors can share ideas and information. Private Research and Advocacy Organizations Policy Research and Analysis Brookings Institution The Brookings Institution is an independent, nonpartisan organization devoted to research, analysis, education, and publication focused on public policy issues in the areas of economics, foreign policy, and governance. Center for Budget and Policy Priorities (CBPP) CBPP specializes in research and analysis for both federal and state policymakers. The Center focuses on tax policy, budget issues, welfare, social services, health, food assistance, poverty, low-income housing and immigrant issues. In the early 1990s, the Center expanded its statelevel work, with the establishment of the Center's State and Local Programs Division. Heritage Foundation The Heritage Foundation is a research and educational institute whose mission is to formulate and promote conservative public policies based on the principles of free enterprise, limited government, individual freedom, traditional American values, and a strong national defense. Mathematica Policy Research, Inc. P AGE 50 Mathematica Policy Research, Inc. is an independent, social policy research company. The firm conducts studies of health care, welfare, education, employment, nutrition, and early childhood policies and programs in the United States.

55 The Nelson A. Rockefeller Institute of Government The Rockefeller Institute of Government is the public policy research arm of the State University of New York. The Institute conducts studies and special projects to assist government and enhance the capacity of states and localities to meet critical challenges. Through its conferences, research, and publications, the Institute works with experts and top officials at all levels of government to forge creative solutions to public problems. Stateline Each day, the stateline.org website is updated to include links to welfare and social policy stories from newspapers in every state. Urban Institute The Urban Institute conducts research on topics from taxes and criminal justice to welfare and health care policy. Crosscutting projects involve the collaboration of researchers from throughout the Urban Institute s nine policy centers. Employment and Workforce Issues Center for Workforce Preparation (CWP) CWP is a non-profit affiliate of the U.S. Chamber of Commerce focused on workforce development and quality education issues. CWP develops workforce strategies for businesses, chambers of commerce, and communities to hire, train, retain, and advance skilled workers in the 21 st century. Center for Workforce Success, National Association of Manufacturers The mission of the Center for Workforce Success is to find and promote workforce solutions for manufacturers in a global economy, in order to P AGE 51

56 build the workforce skills and creative contributions that American industry needs today to strengthen its competitive advantage tomorrow. Corporation for a Skilled Workforce (CSW) CSW is a national non-profit policy, research, and consulting organization whose mission is to help communities thrive in a knowledge and skill-based economy. The work of CSW focuses on helping communities, workers, and firms improve their competitive positioning and increasing the commitment to lifelong learning by workers and firms. The Council on Competitiveness The Council on Competitiveness seeks to set an action agenda that drives economic growth and raises the standard of living for all Americans. It is the only national organization whose membership is comprised exclusively of CEOs, university presidents and labor leaders. The Council shapes economic agendas on regional, national, and world stages that anticipate and respond to the demands of a competitive environment for global trade and commerce. Hudson Institute Hudson Institute is a non-partisan policy research organization focused on innovative research and analysis that promotes global security, prosperity, and freedom. The organization seeks to guide global leaders in government and business through publications, conferences and policy recommendations. Jobs for the Future (JFF) JFF is a non-profit research, consulting, and advocacy organization that focuses on creating educational and economic opportunity for youth and adults. P AGE 52

57 National Center on Education and the Economy (NCEE) NCEE's Workforce Development Program provides strategic assistance to local communities, states and federal policymakers interested in building effective workforce and youth development systems. The organization assesses and interprets workforce trends, develops and analyzes workforce training policies, provides technical assistance to governments implementing workforce development policies and programs, and evaluates promising training practices. The W.E. Upjohn Institute The W.E. Upjohn Institute is an independent, nonprofit research organization with a mission of finding, evaluating, and promoting solutions to employment-related problems. The Workforce Alliance (TWA) TWA is a national coalition of local leaders advocating for federal policies that invest in the skills of America's workers--including those who are low-income, unemployed, or seeking advancement--so they can better support their families and help American businesses better compete within today's economy University-Based Research Business and Industry Services (NIU-BIS), Northern Illinois University The mission of NIU-BIS is to help organization remain globally competitive by providing the highest quality training and consulting services. NIU-BIS specializes in company-wide strategic improvement and bottom-line profitability projects such as six sigma, lean operations, quality system implementation, strategic planning, executive leadership, supervisory skills, IT Training, continuous improvement systems, technical and basic skills training. P AGE 53

58 John J. Heldrich Center for Workforce Development The Heldrich Center is a part of Rutgers University, with a primary focus on improving the American workplace by strengthening workforce education, training programs and placements, and policies. The Center conducts research and evaluation projects to identify best practices in workforce and employment policies and also engages in partnerships with the private sector to design effective training and education programs. The Johns Hopkins Institute for Policy Studies (IPS) IPS seeks to improve the response of government, businesses, and nonprofit institutions locally, nationally, and internationally to such challenges as poverty, urban decline, and regional changes. To accomplish these goals, IPS is engaged in an active program of policy research, dissemination, implementation and technical assistance, and graduate education. Community outreach in the form of seminars, internships, and volunteer service also plays an important role at IPS. The Malcom Wiener Center for Social Policy, John F. Kennedy School of Government The Malcolm Wiener Center for Social Policy is an intellectual community of faculty, students, researchers, and administrative staff striving to improve public policy and practice in the areas of health care, human services, criminal justice, inequality, education, and labor. The Wiener Center has been an influential voice in domestic policy through faculty work on community policing, welfare reform, youth violence, inner city poverty, youth and the low-wage labor market, American Indian economic and social development, and medical error rates. P AGE 54

59 The Ray Marshall Center, University of Texas at Austin As a part of the University of Texas at Austin, the Ray Marshall Center s research and evaluation efforts encompass a broad array of human resource development issues including employment training, education, child care and welfare reform. Research activities include program evaluation, survey research, labor market analysis, program design, policy and legislative analysis, and training and technical assistance Low-Income Working Families Annie E. Casey Foundation, Family Economic Success Program The Family Economic Success Program seeks to help low-income working families improve their financial future by integrating resources and policies in the areas of workforce development, family economic support, and community investment. Using a comprehensive approach, the program enhances family economic success through investments, partnerships, and community-based strategies. Center for Law and Social Policy (CLASP) CLASP is a national, nonprofit organization that conducts research, policy analysis, technical assistance, and advocacy on issues related to economic security for low-income families with children. CFED (formerly The Corporation for Enterprise Development) CFED is a nonpartisan, nonprofit organization working to expand economic opportunity by identifying promising practices, testing, and refining these ideas in communities. CFED also works to create policies and products that will help ideas reach scale and develops new markets to attain greater impact. A number of resources are available through CFED related to asset development issues. P AGE 55

60 MDRC MDRC is a nonprofit, nonpartisan social policy research organization dedicated to learning what works to improve the well-being of low-income people. Through research and communication of findings, MDRC seeks to enhance the effectiveness of policies and programs. Research Forum The Research Forum on Children, Families, and the New Federalism was created in January 1997 to facilitate the development of rigorous, policy relevant research about the effects of the new federalism on poor and vulnerable populations. Welfare to Work Partnership The Welfare to Work Partnership is a nonpartisan, nonprofit organization created by the American business community to provide innovative workforce solutions for companies through hiring, retaining and promoting welfare recipients and other unemployed and low-income workers. Youth-Related Information The Forum for Youth Investment The Forum is a nonprofit, nonpartisan organization created to help ensure that all young people are ready for college, work and life. To achieve its mission, the Forum conducts research and analysis, disseminates ideas and information, fosters leadership and public engagement, offers technical assistance and training, and provides long-term support in managing or facilitating projects aimed at improving the lives of youth. The Jim Casey Youth Opportunities Initiative P AGE 56 The Jim Casey Youth Opportunities Initiative is a national foundation to help youth in foster care successfully transition to adulthood. The Initiative works to help young adults develop the knowledge and resources necessary to live successful lives by creating connections in the areas of education, healthcare,

61 housing, employment, and community resources. The Initiative supports community-based efforts that assist youth leaving the foster care system through grants, technical assistance, and coalition building with multiple stakeholders. The National Center on Secondary Education and Transition (NCSET) NCSET coordinates national resources, offers technical assistance, and disseminates information related to secondary education and transitions for youth with disabilities in order to create opportunities for youth to achieve successful futures. The National Collaborative on Workforce and Disabilities for Youth (NCWD/Youth) NCWD/Youth is a source of information for states and local workforce boards regarding employment issues for youth with disabilities, including research publications, best practices, youth stories, recommendations, and links to other organizations. NCWD/Youth is comprised of partners with expertise in the areas of workforce development, disability, education, and employment and is funded by the U.S. Department of Labor s Office of Disability Employment Policy. National Youth Employment Coalition (NYEC) NYEC is a non-partisan network improving the effectiveness of organizations that seek to help youth become productive citizens. Toward this end, the NYEC tracks and influences policy, sets and promotes quality standards, provides and supports professional development, and increases the capacity of organizations and programs. P AGE 57

62 Private/Public Ventures Public/Private Ventures is a national nonprofit organization whose mission is to improve the effectiveness of social policies, programs and community initiatives, especially as they affect youth and young adults. P/PV works to develop or identify social policies that promote individual economic success, assess the effectiveness of promising approaches, mine evaluation results and implementation experiences, and communicate findings to the public. The Sar Levitan Center The Sar Levitan Center is dedicated to improving the educational and labor market prospects for disconnected youth. The main activities of the Center include research and dissemination of studies and policy briefs; advocacy to expand the resources available to atrisk youth; and training, technical assistance, and capacity-building for youth policy makers and practitioners. P AGE 58

63 Section V: NGA Policy Positions NGA policies are the formal positions taken by the governors to influence action by the federal government and to inform the national debate on critical issues. NGA priorities are determined and policies are developed by the governors primarily through NGA committees, which meet at NGA s Winter and Annual Meetings. Each governor serves on one of the four standing committees Economic Development and Commerce; Education, Early Childhood and Workforce; Health and Human Services; and Natural Resources which seek to develop a collective message on major policy issues. There is a nine-member Executive Committee that oversees the association s operations on behalf of the membership. NGA s legislative staff are responsible for representing the governors positions when meeting with Congress and the President s Administration, tracking national legislation, and providing governors with updates on federal policy. The Education, Early Childhood and Workforce Committee is chaired by Governor Tim Pawlenty of Minnesota; Governor Kathleen Sebelius of Kansas is Vice Chair. A total of 15 Governors serve on this committee. Following are some of the key policy positions on workforce development programs as adopted by the governors. A complete list of policy positions is available on our website at P AGE 59

64 Policy Position ECW-01. Governors' Principles to Ensure Workforce Excellence Policy 1.1 Preamble In the 21st century, the economic strength of the United States will depend on the ability of each state to compete successfully in the global economy. Today's jobs require workers to have more advanced training and higher levels of education. In order to compete most effectively, state economic development strategies must build a skilled workforce through lifelong learning and worker training. Governors recognize that a strong workforce development system must encompass education, human service, and economic development programs and ensure the attention and investment of all levels of government and the private sector. In this era of global competitiveness, an effective workforce development system should address the needs of all workers, regardless of the worker's skill level. Through a comprehensive, integrated, and flexible workforce system, the nation will be equipped to quickly respond to the changing needs of its workers and businesses to compete successfully in the global economy. The Workforce Investment Act (WIA) authorized Governors to initiate broad structural reforms in their workforce development systems. With this authority, the nation's Governors have made significant progress in restructuring their workforce development systems and strengthening partnerships among federal, state, and local governments and the private sector. These reforms are producing highly skilled workforces that strengthen businesses and the economy. Yet experiences from states reveal that many challenges remain, such as providing a comprehensive, seamless system of education and training and employment services for workers; meeting reporting requirements; coping with resource constraints; and fully engaging the business community as partners. To address those challenges, Governors support additional efforts to strengthen the system and provide the following core principles and recommendations to guide actions by the Administration and Congress. 1.2 Principles for Workforce Excellence The Governors recommend the following principles to help ensure workforce excellence A Comprehensive, Flexible, State-Based Workforce System. The workforce system should be a comprehensive and flexible state-based system that is centered on the needs of local regions and communities and accountable for results. The workforce system should be readily understood, accessible, and responsive to local and regional workers, job seekers, students, and businesses. These customers should receive information about the full array of services available from public and private sources and should be able to easily enter and reenter the system at any point and access services as needed, not in a prescribed sequence. Governors should have the flexibility to build on the current strengths in the system, including the authority to design and redesignate the local workforce areas without federal interference. P AGE 60

65 1.2.2 Lifelong Learning Opportunities. Job training and education programs should be available to the entire workforce and the business community as part of a continuum of lifelong learning. Current and future workers should have the opportunity to equip and reequip themselves for productive work through training, education, and professional development. Education and workforce partners should pursue new educational methodologies such as modularization of curriculum, portable credentials for students and workers, e-learning, and other distance learning opportunities. In addition, student financial aid guidelines should be revised to better serve working adults. Due to the vital role that job training and education programs play during an individual's lifetime, it is critical that federal education and workforce programs be aligned to function most effectively to support the lifelong learning opportunities for individuals in state-determined high demand occupations Education and Career Linkages for Students. In a knowledge- and skill-based economy, education is increasingly linked to economic success, with postsecondary education and training often leading to higher earnings and employment stability. WIA should reinforce with students the importance of acquiring basic skills, such as reading or math, that lead to a high school degree or equivalent, thus ensuring students have the necessary foundation of skills and knowledge to enter any career and to support continued lifelong learning. For these reasons, the workforce development system should effectively support career exploration opportunities and should link education and work through work-based learning, internships, career guidance, youth apprenticeship, and other options that enable students to obtain the academic, occupational, and work-readiness skills needed for employment. Businesses, unions, schools, colleges and universities, community-based organizations, teachers, students, and all levels of government must share the responsibility to ensure that alignment of these programs produces economic success for students Barriers to Innovation. Governors continue to develop innovative workforce systems that respond to customer needs, reduce fragmentation, promote accountability, deliver services efficiently, and engage the business community. To ensure a higher quality federal-state workforce system for America's workers, Congress should remove barriers to innovation including, but not limited to, overly burdensome reporting requirements, inconsistent terms and definitions, and limitations to transfer funds Governors' Leadership in Workforce Programs Innovation. WIA reauthorization should recognize the important partnerships among federal, state, public, and private workforce programs and Governors' authority to develop an innovative workforce development system. Congress should encourage the U.S. Department of Labor (DOL) to coordinate with the Governor when working with a state's business community Integral Role of the Private Sector. Workforce development has two major groups of customers--workers (both current and future) and businesses. Although WIA made strides in recognizing the needs of businesses, work remains to ensure that businesses are fully engaged in the law. Federal policy should not undermine the vast investment that private sector businesses have made to train workers. Also, federal initiatives should be designed to support state-based programs, particularly state efforts to build partnerships with business. Federal WIA policy should support strong public/private partnerships and provide Governors the authority to build these partnerships to ensure an adequate supply of high-growth industries and occupations. Federal efforts should be designed to support state-based programs, including state efforts to partner with businesses. P AGE 61

66 1.2.7 Efficient Assistance for Business Firms and Dislocated Workers. Federal dislocated worker initiatives and funding should be responsive and flexible to address the impact of economic changes on workers in states across the nation. In addition, workers and businesses negatively affected by federal policy decisions should receive adjustment assistance in a timely and efficient manner. Federal assistance should be provided through state-based networks and initiatives, and final authority to implement the provision of assistance should be determined by the Governor. 1.3 Recommendations for Strengthening the Workforce Development System The nation's Governors strongly support the following recommendations to strengthen the workforce development system Funding. Governors support an increase in the federal investment in WIA programs to support lifelong learning and economic development. WIA funding helps support critical workforce services to ensure that America's workers will remain competitive in the 21st century global economy. To adequately respond to the global economy, WIA funding should be flexible and responsive to worker shortages, high demand occupations as determined by each state, major shifts in the national economy, and state economic development goals Flexibility to Coordinate or Transfer Funds. Congress should provide Governors with the option to coordinate WIA funding to meet the unique needs of their states and should include a hold harmless provision to ensure that the federal investment in workforce and related programs is not diminished. At their discretion, Governors should be given the option to pool WIA, higher education, Temporary Assistance for Needy Families (TANF), and other sources of federal training money at the state level to respond to the needs of workers and businesses Performance Measures. Governors urge the development of a new streamlined--yet strong-- performance measurement based on state and local input. The framework should include a core set of measures that are meaningful across workforce development programs. These measures should readily illustrate the value the workforce development system adds to meeting economic development goals. Governors should be closely consulted if any federal measures are adopted. Performance measures should be flexible and easy to collect to allow the evaluation of short-term results on and long-term efforts by workers and businesses. The current multiplicity of measures and data collection impedes service delivery in states. Congress and DOL should also support the voluntarily development of state integrated performance measures and information systems that include common definitions and measures Reporting Requirements. The current workforce system is fragmented and consists of inconsistent terms and definitions, as well as overly burdensome reporting requirements. This system impedes efficient service delivery in states and localities; deters participation of eligible job training providers, including educational institutions such as community colleges and apprenticeship programs; and discourages partnerships within one-stop centers. Governors urge Congress to streamline and improve federal reporting requirements. Until federal law is revised to provide such flexibility, Governors expect DOL to approve appropriate waivers of federal regulations to reduce the financial burden of unnecessary paperwork and remove barriers to innovation Regulations. Governors urge DOL to develop regulations in close consultation with states. Moreover, DOL should only develop regulations when the law is unclear and needs clarification, and these regulations must be consistent with the intent of Congress. P AGE 62

67 1.3.6 Federal Partner Programs. Partnerships within one-stop centers have been difficult to foster given the myriad of agencies, organizations, financing, and responsibilities involved in delivering the array of services in one location. Governors recommend that the federal partner agencies develop a joint initiative to align federal regulations to consistently encourage support for and participation in one-stop centers. Alignment efforts should encompass WIA, higher education, TANF, vocational rehabilitation, vocational and technical education, trade adjustment, veterans' employment, and other distinct programs. In particular, Governors support efforts to coordinate WIA and TANF systems to help welfare recipients and other low-income workers better access education and training. The initiative should address common management and performance information, including cost sharing, resource allocation, and joint case management, as well as the sharing, processing, and providing of services to participants. Flexibility to establish cross-system measures could support consistent information systems across state and federal workforce programs Greater Access to WIA Training. Training is important in providing a continuum of skill development, ranging from initial preparation to ongoing career advancement. A basic tenet of WIA is to facilitate an efficient transition for qualified individuals through core, intensive, and training services. Governors recommend that DOL work with states to issue clarifying guidance to ensure that enrollment in training is not blocked or delayed by a rigid application of WIA eligibility criteria for intensive services and training, particularly when a one-stop partner has already properly determined the need for training Readjustment and Training for Dislocated Workers. Under current law, to be eligible for job training services, dislocated workers must first participate in the required sequence of services. Governors recommend that states and localities be given flexibility to apply eligibility criteria to permit rapid passage through the initial services when there is a ready presumption that other work is not available. To ensure training opportunities for unemployed workers, participation in WIA intensive and training services should be allowed to satisfy unemployment insurance work search requirements. Additionally, Governors recommend that the wagereplacement performance standard be eliminated because it inadvertently discourages enrollment of high-wage workers when replacement jobs are not available at similar pay levels Flexibility for Youth Programs. Under current law, local WIA program administrators are required to contract-out training and development services for youth, regardless of a lack of qualified service providers. At the same time, Governors may grant waivers to local boards allowing them to consolidate service delivery for adults and dislocated workers in rural areas. Similar rules should apply to the WIA youth funding stream so that local boards may streamline program services in areas with insufficient numbers of qualified service providers. WIA should not mandate the amount of youth funding that must be spent on out-of-school or inschool youth. Governors should have the discretion to direct youth funds according to the needs of each state Incentives for Comprehensive System Building. Incentives, including access to waiver authority and additional federal funds, should be provided to all states to establish comprehensive workforce development systems in partnership with local governments and private sector leaders. P AGE 63

68 Section 191. Section 191(A) has led to problems within some states by requiring that all WIA funds are subject to appropriation by the state legislature. This unnecessary provision should be eliminated to ensure that Governors retrain unfettered authority to allocate federal funds. Related Policies: ECW-11, Employment Security System Policy ECW-15, Principles of Federal Preschool-College (P-16) Alignment HHS-21, Welfare Reform Time limited (effective Winter Meeting 2005-Winter Meeting 2007). Adopted Winter Meeting 1993; reaffirmed Winter Meeting 1995; revised and reaffirmed Winter Meeting 1997; revised Winter Meeting 1998, Winter Meeting 2000, Winter Meeting 2002, Annual Meeting 2003, and Winter Meeting 2005 (formerly Policy HR-1). P AGE 64

69 Policy Position ECW-06. Targeted Employment Tax Credits: The Work Opportunity Tax Credit And The Welfare-To-Work Tax Credit Policy 6.1 Preamble The Work Opportunity Tax Credit (WOTC) and the Welfare-to-Work (WtW) Tax Credit are federal tax credits that provide incentives to employers to hire, train, and retain disadvantaged populations. The WOTC encourages the hiring of individuals in eight disadvantaged population groups--temporary Assistance for Needy Families (TANF) recipients, food stamp recipients, Supplemental Security Income recipients, vocational rehabilitation participants, veterans, exfelons, high-risk youth, and summer youth--while the WtW Tax Credit encourages employers to hire long-term welfare recipients. Since its creation in 1996, more than 1.5 million individuals have been hired under the WOTC program, 86 percent of whom have received public assistance. An additional 300,000 individuals have been hired since 1998 under the WtW Tax Credit. The nation's Governors believe that the WOTC and the WtW Tax Credit are an integral component of states' efforts to move families from welfare to work and are consistent with the policies of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA). PRWORA reallocates responsibilities between the federal government and the states, providing states with the opportunity to restructure welfare to enable recipients to become productive, self-sufficient, working members of society through the TANF program. The Governors are committed to a "work first" approach to welfare reform that will quickly move recipients into employment while providing them with opportunities to develop the skills that will lead to better-paying jobs. The work requirements, time limits on benefits, and other requirements imposed on welfare recipients through PRWORA make it critical that these individuals receive the basic job skills training necessary to obtain and retain employment. The WOTC and the WtW Tax Credit can assist in these efforts by encouraging employers to hire welfare recipients and other low-income or disadvantaged individuals. 6.2 Recommendations WOTC and WtW Multiyear Renewal. The nation's Governors recommend that Congress approve a multiyear renewal of the WOTC and the WtW tax credits. Annual renewal creates uncertainty among employers and prevents full utilization of the program. A multiyear renewal of the tax credits will afford both small and large employers the long-term assurances of the program's benefits, foster increased participation by employers, encourage employers to develop community outreach programs to identify and hire welfare recipients, and result in more effective administration by state employment agencies WOTC Elimination of Eligibility Barrier for Ex-Felons. Ex-felons are the only one of the eight disadvantaged groups qualified under the WOTC who must undergo an additional verification process to determine if they meet economically disadvantaged criteria. States are required to verify and establish the economic disadvantage of each ex-felon whose employer P AGE 65

70 wishes to file for the WOTC. This additional requirement is difficult for states to verify, discourages potential employers, and creates an unnecessary employment barrier for ex-felons. Of all the WOTC-qualifying groups, ex-felons are likely to have the most difficulty obtaining employment. Regardless of their income, the ex-felon population faces significant social and economic barriers to employment. Therefore, the nation's Governors recommend that the economically disadvantaged criteria be eliminated for this population Food Stamp Qualification. The maximum age for individuals receiving food stamps to qualify for the WOTC should be increased to match the maximum age of recipients subject to the Food Stamp Program's able-bodied adults without dependents (ABAWD) work requirements. Increasing the maximum age will ensure the credit provides employment opportunities to all Food Stamp Program recipients subject to ABAWD work requirements. Therefore, the Governors recommend that a potential recipient, based on food stamp qualification, should be defined as any person certified by the state as one who, as of the hiring date, is at least 18 years of age but not yet 41 years of age and is a member of a qualifying family. A qualifying family is one that is receiving assistance under the Food Stamp Program for the six-month period ending on the hiring date. In the case of an ABAWD who ceases to be eligible for food stamps under the work requirements of Section 6 (o) of the Food Stamp Act of 1977, the adult should qualify if the individual has received such assistance for at least three months of the five-month period ending on the hiring date Welfare-to-Work Tax Credit Eligibility. The WtW Tax Credit was intended to provide special assistance for long-term welfare recipients. As currently written, the credit applies to those individuals who have received TANF for any 18 months since August As of December 2001, an individual who has not received welfare for more than three years could still be eligible for the tax credit. Therefore, the Governors recommend that this eligibility criteria be revised to focus eligibility on long-term TANF recipients who have received benefits for any 18 months during the 36 months prior to the date of hire Consolidation of the WOTC and WtW Tax Credit. The implementation of two separate but similar tax credits creates unnecessary administrative burdens. Therefore, the Governors recommend consolidating the WOTC and the WtW tax credit into a single tax credit. Consolidation, along with passage of a multiyear renewal, would create new efficiencies for administrators and enhance the effectiveness of the tax credits. Employers could spend fewer resources on administration and could concentrate on recruitment, training, and outreach. Any consolidation should guarantee that all prospective beneficiaries have access to the service and that one group will not receive preferential treatment or be ignored following consolidation. Time limited (effective Annual Meeting 2005-Winter Meeting 2006). Adopted Annual Meeting 1999; revised Annual Meeting 2001 and Annual Meeting 2003; reaffirmed Annual Meeting 2005 (formerly Policy HR-18). P AGE 66

71 Policy Position ECW-11. Employment Security System Policy* 11.1 Preamble The Governors support a national system administered by states of unemployment insurance (UI) benefits, employment service (ES), and labor market information (LMI). Such a system serves an important public function for unemployed workers, job seekers, and the nation's business community. The system is funded by federal grants to states for administration. These funds are appropriated from federal unemployment taxes paid by employers and deposited in the federal accounts of the unemployment trust fund Excessive Federal Unemployment Taxes The Governors are concerned about the historical trend of the federal government collecting excessive federal unemployment taxes to help reduce the federal unified budget deficit. Governors encourage Congress and the Administration to work with states on proposals that would reduce the current tax burden. The Federal Unemployment Tax Act (FUTA) imposes a net tax on employer payrolls equal to 0.8 percent of the first $7,000 paid annually to each covered worker. Nearly all wage and salary workers are covered. Federal unemployment tax revenue should be used only for federal grants to states for administration of state unemployment insurance and employment service, labor market information programs, the Veterans' Employment and Training Service (VETS), federal administration of state employment programs, the federal share of the federal-state extended benefits program, loans to states that have exhausted reserves to cover benefits, and the benefits and administration for third tier programs such as the recently expired Temporary Extended Unemployment Compensation program. FUTA funds should be used only for their dedicated purposes and should not be used to artificially offset the federal deficit. The President's fiscal 2005 budget projected the three federal accounts of the unemployment trust fund supported by FUTA revenue would have balances totaling $19.9 billion on October 1, These projected balances break down into $3.1 billion for administration of UI, ES, VETS, and LMI, $5.8 billion for extended benefits, and $11 billion for loans to states Return of Administrative Funding Governors are concerned with inadequate return of funds to support administrative operations in each state. During the past several years, the return has declined from approximately 63 percent during the early 1990s to a return of approximately 52.5 percent in 2002, with some states receiving as little as 31.4 percent. A number of states have been forced to impose additional state taxes to make up for the lack of adequate federal administrative funding. P AGE 67