CONFERENCE REPORT (H. Report 107-148)

 MAKING SUPPLEMENTAL APPROPRIATIONS FOR THE FISCAL YEAR ENDING SEPTEMBER 
  30, 2001, AND FOR OTHER PURPOSES (P.L. 107-120, H.R. 2216)


Excerpts relating to the  DEPARTMENT OF LABOR EMPLOYMENT AND TRAINING ADMINISTRATION

                           
       The committee of conference on the disagreeing votes of the two     
   Houses on the amendment of the Senate to the bill (H.R. 2216) ``making  
   supplemental appropriations for the fiscal year ending September 30,    
   2001, and for other purposes'' having met, after full and free          
   conference, have agreed to recommend and do recommend to their          
   respective Houses as follows:                                           
       That the House recede from its disagreement to the amendment of the 
   Senate, and agree to the same with an amendment, as follows:            
    In lieu of the matter stricken and inserted by said amendment, insert: 

     That the following sums are appropriated, out of any money in the    
  Treasury not otherwise appropriated, for the fiscal year ending         
  September 30, 2001, and for other purposes, namely:  

                   TITLE II—OTHER SUPPLEMENTAL APPROPRIATIONS

                                   CHAPTER 7
                              DEPARTMENT OF LABOR
                     EMPLOYMENT AND TRAINING ADMINISTRATION

                       TRAINING AND EMPLOYMENT SERVICES
                            (INCLUDING RESCISSIONS)

The conference agreement includes $25,000,000 for the Youth
Activities program authorized under the Workforce Investment Act
as opposed to $45,000,000 proposed by the Senate. The House bill
contained no similar provision. The Secretary of Labor had proposed
a reprogramming of fiscal year 2001 funds to increase funding
for the Youth Activities program by $45,000,000.
The conference agreement rescinds $65,000,000 from funds appropriated
under sections 169 and 171 of the Workforce Investment
Act, of which $25,000,000 is rescinded from funds available for
Youth Opportunity Grants; $20,000,000 from funds available for
Safe Schools/Healthy Students; and $20,000,000 from funds available
for the Incumbent Workers program. The Senate bill included
a rescission totaling $45,000,000; $25,000,000 from Youth Opportunity
Grants and $20,000,000 from Safe Schools/Healthy Students.
The House bill contained no similar provision. The Secretary
of Labor had proposed reprogramming these funds for other purposes.
The conference agreement rescinds $177,500,000 from funds
for Dislocated Worker training activities authorized under the
Workforce Investment Act, of which, $110,000,000 is from amounts
allotted for formula grants to States and $67,500,000 is from the
National Reserve. The Senate bill rescinded $217,500,000 from the
Dislocated Worker program. The House bill contained no similar
provision.
The conference agreement includes provisions directing the
Secretary to allocate the rescission in the Dislocated Worker formula
grant funds based upon each State's share of the unexpended
balances in the program as of June 30, 2001. The Senate bill contained
provisions directing the Secretary to increase State program
year 2001 allotments to States with acceptable program expenditures
by re-allotting unexpended balances from States determined
by the Secretary to have excess unexpended program balances as
of June 30, 2001. The House bill contained no similar provisions.
In addition, the conference agreement modifies language included
in the Senate bill to make the rescission effective at the
time the Secretary determines, based upon the best information
available, the unexpended balances in each of the States. The conferees
expect the Secretary of Labor to render her determination by
no later than September 30, 2001. The House bill contained no
similar provision.
The conferees note that the Governors of each State under the
Workforce Investment Act have the authority to re-allocate unobligated
funds among local areas. The conferees encourage the Governors
to exercise this authority for local areas where there is need.
The conferees are aware of concerns about rescinding Workforce
Investment Act training funds during a period of economic
slowdown. However, based on the information available to the conferees,
it appears that there is excess funding available in the program
and the rescission is necessary to meet other needs in fiscal
year 2001.
The conferees understand that the Secretary of Labor requires
the Governors to submit State financial data for the three Workforce
Investment Act block grants on a quarterly basis. The data
for June 30, 2001, the end of the program year, is due on August
15, 2001. The conferees believe that timely and accurate data are
critical in order for the Congress to meet its oversight responsibilities
for this important program. Therefore the conferees direct the
Secretary to submit to the House and Senate Committees on Appropriations
an expenditure data report on each of the three Workforce
Investment Act block grants at the State level and for the National
Reserve funds within not more than 60 days of the end of
the quarter beginning with the data from the end of program year
2000 and continuing through program year 2001.