1.Introduction
The Fiscal Year (FY) 2003 Annual Performance Plan (APP) for the
Employment and Training Administration (ETA) is based on goals and
strategies developed as part of the agency's strategic plan for
the period FY 1999 - 2004. Fiscal Year 2003 is the final year of
authorization of the landmark job training legislation, the Workforce
Investment Act of 1998 (WIA). The Act requires that levels of performance
for each Program Year are set as a result of negotiations between
each State and the Secretary of Labor, and were originally set prior
to Program Year 2000, the first full year of WIA implementation.
2. Overview of ETA Strategic
Plan and ETA Strategic Issues
The draft Strategic Plan for the Employment
and Training Administration covers the period 1999-2004, and was
developed through a consultation process with ETA partners culminating
in August 1999. This strategic plan was formulated prior to the
recession in the U.S. economy that began in 2001 and the catastrophic
events of September 11, 2001 with their subsequent further impact
upon the economy. Therefore, the issues that must be addressed have
changed, as has the response required by the workforce programs
administered by the Employment and Training Administration.
ETA's mission is to contribute to the
more efficient and effective functioning of the U.S. labor market
by providing high quality job training, employment, labor market
information, and income maintenance primarily through State and
local workforce development systems.
ETA's vision is to promote pathways to
economic liberty for individuals and families working to achieve
the American Dream. On behalf of American taxpayers, the Employment
and Training Administration will administer effective programs that
have at their core the goals of enhanced employment opportunities
and business prosperity.
ETA has also adopted a set of principles to
guide its actions. These principles are:
1.We will be faithful to the American taxpayer
and support programs that are outcome-focused and results-oriented.
2. We will encourage business growth through
the creation of an agile workforce-one that can respond quickly
and effectively to the changing needs of business and the new economy.
3. We will strive to turn individuals into
career entrepreneurs by equipping them with the information they
need to develop the knowledge, skills and abilities sought after
in the new economy.
4. We will bolster opportunities for those
less fortunate so they can gain the freedom to make sound economic
decisions for themselves and their families.
5. We will uphold the principles of federalism
and understand that states and local communities are the most competent
administrators of our domestic concerns.
6. We will administer a workforce system that
partners and connects with public and higher education systems to
prepare the workforce of the 21st Century with career opportunities
and skills in high job growth sectors.
7. We will ensure that our youth workforce
training programs have a strong educational component, since it
is clear that income and opportunities increase exponentially with
education credentials.
8. We will support strong families and vibrant
communities by working with community and faith-based organizations.
2.1 The Changing Workforce
and Workplace
In January 24, 2002 testimony to the Senate
Budget Committee, Chairman of the Federal Reserve Board, Alan Greenspan
said "Perhaps most central to the outlook for consumer spending
will be developments in the labor market. The pace of layoffs quickened
last fall, especially after September 11, and the unemployment rate
rose sharply." In order to address the issues brought about by the
current state of the U.S. economy and to improve the workforce system,
the President has proposed an economic security package and reform
of the Unemployment Insurance/Employment Security system.
In January 24, 2002 testimony to the Senate
Budget Committee, Chairman of the Federal Reserve Board, Alan Greenspan
said "Perhaps most central to the outlook for consumer spending
will be developments in the labor market. The pace of layoffs quickened
last fall, especially after September 11, and the unemployment rate
rose sharply." In order to address the issues brought about by the
current state of the U.S. economy and to improve the workforce system,
the President has proposed an economic security package and reform
of the Unemployment Insurance/Employment Security system.
- Extending unemployment benefits by 13 weeks
in all states, and
- Providing $4 billion in special National
Emergency Grants to help displaced workers maintain health coverage,
supplement their income and receive employment and job training
assistance.
The Labor Department has already provided
a number of National Emergency Grants, in response to immediate
economic shocks in New York, the Washington, D.C. area, and other
states hard hit by the downturn.
The new resources the President has proposed
build on existing programs designed to assist Americans financially
during times of unemployment, help them improve their skills, and
get them back to work. These programs, delivered by states through
local One-stop Career Centers, provide unemployment insurance, job
training, counseling, labor market information, and, if needed,
special assistance for some workers, to pay for transportation or
for relocation.
In combination with the existing programs
and delivery system, the President's plan is the best way to get
Americans back to work because it emphasizes quick targeted and
temporary assistance and job creation.
Reform of the UI/ES program will benefit all
major stakeholders of the UI/ES program. Specifically, it will benefit:
Workers by making the extended
benefit program more responsive to economic swings. That program
is not responding to the current downturn.
Employers by reducing federal
payroll taxes and spurring job expansion.
States by allowing them to
control their own administrative funding. This will allow them to
improve the timeliness and accuracy of benefit payments and to target
more resources on preventing and detecting overpayments.
Secretary Chao is committed to America's 21st
century workforce, a "strong and productive workforce in which everyone
can participate. . . where jobs and opportunities are available
for those leaving welfare, job training is accessible for those
left behind, disability never bars a qualified person from the workplace,
and where parents have an easier time balancing the responsibilities
of work and home."
She is further committed to ensuring effective, results-oriented
job training through DOL and other programs.
Beginning in FY 2002 and continuing in FY
2003, the Employment and Training Administration will direct its
efforts toward business as a principal customer of the workforce
system. To this end, ETA will seek to gather business views on how
the workforce system can meet its needs and to incorporate these
views into policy and program formulation including the reauthorization
of the Workforce Investment Act. The ETA will seek to expand national
partnerships between business and the workforce system to help business
meet crucial hiring needs. Finally, ETA will work to identify and
promote throughout the workforce system best practice in meeting
business needs.
The Employment and Training Administration's
2003 Annual Performance Plan attempts to maximize available resources
to address the needs of the economy. In fact, ETA's programs offer
universal services at One-Stop Centers and other locations in all
fifty States, the District of Columbia, Puerto Rico, The Virgin
Islands, Guam, and beyond through the Internet.
2.2 The Workforce Investment
Act of 1998
The Workforce Investment Act, WIA, is the
cornerstone of ETA's 1999-2004 strategic plan. The Act envisions
a workforce system that is customer-focused, business-led, and
community-centered. The key principles underlying the legislation
are: streamlining services, empowering individuals, universal access,
increased accountability, new roles for local boards, State and
local flexibility, and improved youth programs.
Over 600 Local Workforce Investment Boards
(WIBs), appointed by Chief Local Elected Officials, oversee operation
of the One-Stop Center Systems. The WIB is chaired by an individual
from the business community, and business representatives must comprise
the majority. The WIB also includes local education, labor organizations,
economic development agencies, and all One-Stop partners, e.g.,
dislocated worker programs, youth programs, adult education, vocational
education, welfare-to-work, unemployment insurance, etc. Local One-Stop
Centers provide individuals with access to career support and businesses
with assistance in finding skilled workers.
Performance Accountability for results
is a hallmark of the new legislation. States are required to negotiate
expected levels of performance with the Secretary of Labor and submit
annual reports on State and local performance, including customer
satisfaction indicators for both participants and employers. The
Act envisions a high-performance workforce system that is continuously
improving and delivering high quality services to its customers
-- employers, workers and job seekers.
Program Year 2003, beginning July 1, 2003,
is the final year of authorization for the WIA. In the period leading
up to PY 2003 ETA will be working with States and local workforce
investment areas to refine and improve the delivery of services
under WIA. At the same time, ETA will actively participate in the
process to reauthorize WIA incorporating lessons learned from the
initial period of program authorization.
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