VETS Congressional Testimony

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Mr. Chairman and Members of the Committee:

I appreciate the opportunity to discuss the Fiscal Year 2004 Department of Labor budget request for veterans’ employment and training programs.

Our mission is to provide veterans with the resources and services to succeed in the 21st century workforce by maximizing their employment opportunities, protecting their employment rights and meeting labor market demands with qualified veterans. VETS’ charter is a direct reflection of the nation’s acknowledgement of its responsibility to meet the employment, training and job security needs of those who serve in uniform. Our mission supports the Department of Labor’s strategic goals of a prepared workforce, by enhancing employment opportunities for America’s veterans, and of quality workplaces, by assuring fair treatment in the employment and reemployment of veterans, Guards and Reservists in the civilian sector and assuring that Veteran’s Preference rules are followed in federal employment.

The Veterans’ Employment and Training Service delivers employment services to veterans in partnership with State Workforce Agencies. Our key responsibilities are to provide services for veterans within the State Workforce system through grant programs and technical assistance to service providers. We are currently working with our workforce partners to ensure priority of service is implemented in DOL programs, with the highest priority given to disabled veterans, and to familiarize employers with the abundant skills and value that veterans bring to the workforce.

VETS is requesting $220 million and 250 FTE to support these two performance goals: (1) Improve the employment outcomes for veterans who receive employment assistance services; and (2) Reduce problems identified by service members due to the demands of military service on their civilian employment.

Our FY 2004 request of $220 million, an increase of $7.1 million over funding provided in FY 2003, is designed to promote the maximum employment and training opportunities for veterans, to continue implementation of the provisions of the Jobs for Veterans Act (JVA) of 2002 and to support the Departmental and VETS’ Strategic goals and objectives. Performance for these goals will be measured using the following indicators:

• An Entered Employment Rate for veterans of 58% and 61% for Disabled Veterans. This would be followed by a retention rate, after six months of being employed, of 72% for veterans, and 65% for disabled veterans. (VETS will adjust the baseline for the above indicators as we implement common measures for employment and training programs starting July 1, 2004).
• Working with the Department of Veterans Affairs, ensure that 78% of disabled veterans receiving intensive training and rehabilitative services will enter employment.
• An entered employment rate of 54% for Homeless Veterans enrolled in the Homeless Veterans Reintegration Program, followed by a 70% retention rate after six months.
• VETS will improve, through better case handling and outreach efforts, the quality and effectiveness of services to veterans and reservists in securing their rights under the Uniformed Services Employment and Reemployment Rights Act (USERRA) and Veteran’s Preference.

We provide grants to States to staff Disabled Veterans Outreach Program (DVOP) and Local Veterans Employment Representative (LVER) positions. These veteran employment specialists help veterans enter suitable and meaningful employment and facilitate Transition Assistance Program (TAP) workshops. In the program year that ended June 30, 2002, almost 500,000 veterans were helped into jobs. Of these, 51,305 were disabled veterans.

DVOPs provide outreach services and intensive employment services to meet the employment needs of eligible veterans. In providing these services, the maximum emphasis is on meeting the employment needs of disabled and economically or educationally disadvantaged veterans. LVERs conduct outreach to area employers to develop employment opportunities for veterans. They also facilitate employment, training, and placement services to veterans and will have an increasing role in facilitating TAP workshops for separating service members and their spouses.

During fiscal years 2003 and 2004 the Department is implementing a new process to measure its performance. Instead of relying on post assistance follow-ups by staff to determine whether a registrant was helped into a job, the entered employment rate will be measured by matching individuals reported by employers in their unemployment tax reports against those for whom recent services were provided. Using the Unemployment Insurance (UI) wage record data is a more accurate and effective way of identifying registrants entering employment and will free the considerable time spent by staff trying to locate registrants to ascertain whether they entered employment, enabling staff to provide more help to veterans seeking assistance.

For FY 2004 we are requesting a total of $162.4 million for the DVOP/LVER grant, an increase of $1.5 million over this fiscal year’s appropriation. The increase will enable VETS to meet its performance goals and continue implementation of the Jobs for Veterans Act of 2002. The increase will also enable VETS to provide funding to extend TAP to service members separating overseas, to enable States to provide incentive awards to staff for their efforts on behalf of veterans, to ameliorate the impact of a change in the process and formula by which funding is distributed among the States, and to meet the Department of Labor and VETS’ performance goals. Because of the flexibility the JVA gave to States to identify needed DVOP and LVER resources, we cannot identify the breakout of funds requested to support the DVOP and LVER programs. Our request, therefore, is for State Grants. States will also be able, for the first time, to submit a State plan that identifies needed resources, describes how they will accomplish integration of services and identifies the veteran population to be served.

This new flexibility, permitting the assignment of part-time DVOP specialists and LVERs, should result in better coverage and service delivery. This change will allow DVOP and LVER staff to spend more time and effort to help veterans with employability barriers or those who cannot otherwise successfully compete in the civilian labor market. They will also continue to assist veterans who are better prepared to compete successfully for jobs by helping them understand, access and use the electronic tools available, such as America’s Job Bank and the VETS’ Electronic One-Stop that is currently being developed. Our performance based budget request was developed estimating that a total of 930,000 veterans would enter employment with assistance from Department of Labor VETS and Wagner-Peyser programs.

In terms of Federal Administration, our Federal staff identifies policies and programs to serve and meet employment and training needs of veterans. We monitor the States provision of priority of service to veterans. Our field staff evaluates job training and employment assistance services to veterans and provides technical assistance to States to ensure they meet negotiated performance goals. Our staff also administer programs designed to help homeless veterans become gainfully employed, and help service connected disabled veterans and others with significant employment barriers obtain training and employment assistance. VETS promotes the concept of hiring veterans with all employers but particularly with Federal contractors. We also provide information and investigate complaints by reservists and members of the National Guard regarding employment and reemployment rights, including helping eligible veterans obtain preference in Federal employment.

A total of $29 million is requested for this activity, an increase of $2.9 million over funding available for this activity in FY 2003. The Jobs for Veterans Act of 2002 requires the establishment of the President’s National Hire Veterans Committee to carry out a national program to furnish information to employers and facilitate employment of veterans and disabled veterans; to develop an electronic One-Stop Employment Services site for veterans; and for other program enhancements. The request enables VETS to meet its performance goals and comply with the Jobs for Veterans Act requirements.

The request is also designed to support a total of 129,000 service members and their spouses participating in TAP workshops, maintaining a workshop no larger than 35 participants. VETS will also begin assuming responsibility for the facilitated TAP workshops for separating service members overseas. We also expect to process 1,325 USERRA and 250 Veteran’s Preference complaints. With the funds provided in FY 2002, 104,000 participants attended our TAP workshops. VETS processed 1,135 USERRA and 288 Veteran’s Preference complaints to closure during this period.

The NVTI develops competency-based training courses, and trains Federal and State government veteran service providers, through contract. The NVTI effort ensures consistency and quality of training services for DVOPs, LVERs, managers, and other direct client service providers. NVTI training also increases their productivity and knowledge of veteran services available. An increase of $1 million is requested for this activity, for a total request of $2 million. The request addresses our requirement to train 1,600 veteran service providers.

HVRP grants are awarded States or other public entities and non-profits, including faith-based organizations, to operate employment programs that reach out to homeless veterans and help them become employed. Grants are provided for both urban and non-urban areas.

VETS is requesting a total of $19 million, an increase of $750 thousand over the FY 2003 appropriation. The additional funding will enable VETS to increase grantee capacity, focus on job retention, and support Incarcerated Veterans Pilot Projects, which are mandated under the Homeless Veterans Comprehensive Assistance Act. At this level of funding the number of homeless veterans served is estimated at more than 16,800, of which slightly over 9,200 will be employed. Of those entering employment it is anticipated that the number retaining jobs for six months or more will be 6,480.

VWIP grants are awarded to public entities for training, retraining and employment opportunities for the most-at-risk veterans, including those with service-connected disabilities, those with significant barriers to employment and recently separated veterans. VWIP also enables us to award smaller grants to non-profit organizations, including faith-based organizations, to conduct pilot or demonstration employment programs for hard to serve veterans. The funds appropriated in FY 2001 resulted in 4,362 veterans served and 2,891 entering employment at an average $12.39 per hour wage rate during program year 2001. FY 2002 funding is expected to result in 2,241 veterans entering employment. The decrease in entered-employment numbers is due mostly to increased efforts by grantees on improving job retention.

Under VWIP, VETS will develop a new initiative to address health care occupations. This initiative has a two-fold benefit. By collaborating and leveraging resources with the VA, DoD, and State Workforce Agencies, the cost per placement will be reduced. It will also help alleviate the health care occupation shortages expected this decade. VETS requests an increase of $173 thousand above the FY 2003 level, for a total request of $7.5 million to carry out the health care occupations initiative in several pilot states. We estimate that the amount requested will result in 2,500 veterans entering employment.

In summary, the FY 2004 request will enable VETS to reach its planned outcomes and outputs, specifically, helping 930,000 veterans find jobs through the One-Stop Career Centers. The request will help more than 9,200 homeless, and 2,500 veterans with significant employment barriers into jobs. The request will enable VETS to support sufficient TAP workshops to serve 129,000 participants while keeping the class size at about 35 and begin TAP workshops for service members separating from overseas locations. It will support processing of 1,325 USERRA and 250 veterans preference complaints, and will enable NVTI to train 1,600 veteran service providers.

Thank you for the opportunity to present the DOL/VETS FY 2004 budget request. I would be pleased to respond to your questions.