2003 Annual Performance Plan

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.