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November 6, 2008 DOL Home > No Crumb Trail |
EMPLOYMENT AND TRAINING
ADMINISTRATION OVERVIEW
1/ For comparability purposes, TES
includes advance appropriations of $2.463 billion in FY 2000 for obligation in
FY 2001, and $2.463 billion in FY 2001 for obligation in FY 2002. The Budget
reflects the FY 2000 advance in FY 2001. The total FY 2001 budget request for the Employment and Training Administration is designed to provide a prepared workforce to help Americans get the education and training and employment services that will enable them to obtain good jobs at decent wages, and to provide temporary support for those having difficulty in achieving this. In total, funds for the Employment and Training Administration (ETA) in FY 2001 will increase by a net of $3.9 billion compared with FY 2000. In Income Maintenance, there is an increase of approximately $3.0 billion due primarily to increases in unemployment benefit payments resulting from higher benefit levels and an increased number of claimants related to population growth. In the Employment and Training Programs area, there is an increase of $899.6 million, largely due to increases for programs authorized by the Workforce Investment Act (WIA). EMPLOYMENT AND TRAINING PROGRAMS
1/ For comparability purposes,
TES includes an advance appropriation of $2.463 billion in FY 2001 for
obligation in FY 2002. EMPLOYMENT AND TRAINING PROGRAMS Budget
Authority
1/ Requested budget authority of
$105.1 million for skill shortage grants in FY 2001 will be replaced with
funding generated by fees on employers requesting foreign labor certification
under the Administration's legislative proposal. The Fiscal Year (FY) 2001 budget request for Employment and Training Programs proposes a net increase of $899.6 million to $7.6 billion. This net change includes increases of $241.7 million for the Youth Opportunity Movement, $265.5 million for Universal Reemployment, and $392.4 million for Other Employment and Training Programs. Advance appropriations totaling $2.463 billion as referenced above are reflected for Adult Employment and Training Activities ($712 million), Dislocated Worker Employment and Training Activities ($1.06 billion), and Job Corps ($691 million). Youth Opportunity Movement For Youth Activities under Section 126 of WIA, a total of $1.022 billion is requested, an increase of $21.5 million above FY 2000. This program supports a wide range of activities and services to prepare low-income youth for academic and employment success, including summer jobs. It also provides increased flexibility to local Youth Councils, enabling them to develop pathways for career opportunities. In so doing, Youth Councils will link businesses and schools to ensure that work preparation activities are more relevant. The level requested will support an estimated 612,000 participants. Of the 19-21 year old youth registered under this program, 70 percent will be employed in the third quarter after program exit. The FY 2001 budget includes $375 million for Youth Opportunity Grants, an increase of $125 million above FY 2000. This program is intended to provide comprehensive, longer term intervention in the lives of primarily out-of-school youth living in inner cities and high poverty areas to help them graduate from high school, gets jobs, and progress in the workforce. The requested amount will fund the third year of five-year Federal to local competitive grants to 25-30 high poverty areas and the first year of competitive grants to an additional 12-15 similar communities. Included in the request is $20 million for the Rewarding Youth Achievement Program which will provide economically disadvantaged youth in high poverty areas with extended summer employment opportunities and the opportunity to earn an end of summer bonus as a reward for academic achievement. Also included is $15 million for Migrant Youth activities, an increase of $5 million or 50 percent above the amount provided in 1999, to provide employment and training assistance to youth in families engaged in migrant and seasonal farm work. In total, the requested amount for Youth Opportunity Grants will serve an estimated 85,000 youth. By 2001, 70 percent of participants in this program placed in employment, the military, advanced training, post-secondary education, or apprenticeships will be retained at six months. The Job Corps will provide intensive skill training, academic and social education, and support to an estimated 73,000 participants at 122 centers in FY 2001. The budget request is $1.393 billion, a net increase of $35.3 million above FY 2000. The increase includes $29.3 million for increased costs, $13.4 million for the operations costs of new centers, and $12.9 million for teacher and other staff salary increases. Decreases in the program include $13.5 million reflecting decreased new center construction needs, and $7.1 million to slow previously-planned modernization efforts. For FY 2001, 85 percent of the program's graduates will get jobs or be enrolled in education with entry average hourly wages of $7.25, and 70 percent will continue to be employed or enrolled in education six months after their initial placement date. Also included in the FY 2001 budget is an initiative for Responsible Reintegration for Young Offenders, funded at $75 million, to address youth offender issues. This is a new initiative and will build on work begun earlier including $13.9 million in FY 2000 demonstration funds. Building on lessons learned through smaller pilot projects in 1998 and 2000, this large scale WIA Pilot and Demonstration initiative will link youthful offenders under age 35 with essential services that can help make the difference in their choices in the future, such as education, training, job placement, drug counseling, and mentoring, in order to reintegrating them into the mainstream economy. Through local competitive grants, this program would establish partnerships between the criminal justice system and local workforce investment systems, complementing a similar program in the Department of Justice (DOJ). To maximize the impact of these initiatives, the DOL and DOJ funds will be targeted to the same communities and populations. An estimated 19,000 youth will be served. For FY 2001, 65 percent of program graduates will get jobs, reenroll in high school, or be enrolled in post-secondary education or training. Also included in the FY 2001 budget is $40 million for the Department of Labor to participate in the next competitive round of Safe Schools/Healthy Students grants. This is an effort begun in FY 1999 as a collaboration among the Departments of Education, Health and Human Services, and Justice to promote healthy childhood development and to prevent school violence and alcohol and other drug abuse through a comprehensive, community-wide approach. With DOL's participation, the activities for the next round of grants can be expanded to serve out-of-school youth as well as provide connections among high schools, post-secondary schools, alternative schools, and work-based learning programs, in order to reduce violent behaviors. They will also help build local partnerships among Youth Councils, businesses, and community organizations, and schools to improve opportunities for at-risk youth. An estimated 20,000 youth will be served, and 25 communities' Youth Councils will build local Safe Schools/Healthy Students partnerships with business, community organizations, and schools to improve opportunities for at-risk youth. The School-to-Work program, administered jointly with the Department of Education, linking education and employment through competitive grants to States and communities, completed all funding commitments in FY 2000, and no funding is requested in FY 2001, creating a program decrease of $55 million in that year. Universal Reemployment Because our changing economy often requires new skills of our Nation's workers, as jobs change, the budget continues the President's Universal Reemployment initiative which aims to serve all dislocated workers in need of assistance. The initiative will provide all dislocated workers, who want and need assistance, the resources to train for or find new jobs; expand and increase quality of employment services now available to all jobs seekers; enhance them for individuals receiving unemployment compensation; and ensure availability of the One Stop System, either personally or electronically, to help find jobs and training. An increase of $265.5 million in FY 2001 is requested to continue this effort. Dislocated Worker Employment and Training Activities under authority of WIA, provides State formula grants, as well as a national emergency grant account, for retraining and adjustment services to laid off workers with a labor market attachment to help them quickly return to work. The FY 2001 request includes $1.771 billion for this program, an increase of $181.5 million above FY 2000 to support 984,000 participants. Among the workers assisted by the program and the proposed increase are those displaced by trade, technology, defense downsizing, and other causes. This increase is part of a build up which would assist all dislocated workers in need of these services by 2004. For FY 2001, 76 percent of those registered under this program will be employed in the first quarter after program exit, and 81 percent will be employed in the third quarter after program exit with total post-program earnings in the second and third quarter after exit of 100 percent of pre-dislocation earnings. Also funded with dislocated workers are competitive grants to consortia of local workforce boards and regional skill alliances to identify skill shortages and target resources to industries struggling to fill jobs, identify dislocated workers needing retraining, and provide training and job placement services. A total of $105.1 million in dislocated worker discretionary funding is requested for these purposes. Legislation will be proposed to finance Skill Shortage Grants with fees paid by employers applying for certification by DOL of certain foreign workers eligible to work in the United States. Upon enactment, the budget authority being requested will be reduced and fees will finance the program. The FY 2001 budget includes $154 million for new methods of providing employment and related information through One Stop Career Centers and its America's Labor Market Information System (ALMIS), a net increase of $34 million above FY 2000. Services include America's Job Bank that lists about 1.5 million jobs, and America's Talent Bank that lists over 500,000 resumes. Information on occupational and career-related items can be obtained from America's Career InfoNet, and America's Learning Exchange provides access to lifelong learning opportunities. Efforts to improve access to One Stop information and services include mobile service centers for rural or remote areas, a toll-free number for easier access to information on services and locations, and enhanced technology for serving individuals with disabilities. The request also includes $10 million to implement AgNet nationally, a system that will match agricultural workers with employers. Also included in the Universal Reemployment initiative for FY 2001 is an additional $50 million for Reemployment Services Grants. These grants, made through the Employment Service, will provide targeted, staff-assisted services to unemployment insurance claimants identified as having a high probability of exhausting their benefits. This will speed their reentry into employment and reduce benefit duration. Other Employment and Training Adult Employment and Training Activities provide formula grants to States under authority of WIA for employment and training assistance to low-income adults. The FY 2001 request includes $950 million for this program, the same as in FY 2000, to support an estimated 380,000 disadvantaged and low income participants, including welfare recipients. The WIA adult program no longer has a means test, and job seekers and adults seeking to advance their careers can receive core services, with more intensive services and training being targeted to those most in need, including welfare recipients. For FY 2001, of those registered under this program, 76 percent will be employed in the third quarter after program exit, with increased average earnings of $3,600. Building on the investments and partnerships begun under Welfare-to-Work, the FY 2001 President's Budget includes $255 million for a new initiative entitled Fathers Work/Families Win, operated under WIA pilot and demonstration authority. Of the total request, $125 million would support competitive grants for the Fathers Work component to help about 40,000 non-custodial parents, mainly fathers, obtain or retain employment and progress up career ladders, including upgrading their skills so they can support their children. The remaining $120 million of the request is for Families Win, providing competitive grants to finance case management and skill training for low income families to help about 40,000 parents stay in jobs, move up career ladders, and stay off cash assistance. Included in the $120 million is $5 million to finance improved information and access for families through the One Stop system to a range of existing work supports and services such as Food Stamps, Medicaid, and the Earned Income Tax Credit. Also included is $10 million which will be set aside for Indian and Native American workforce agencies. In addition, the budget will allow current grantees five additional years to spend existing Welfare-to-Work funds. The competitive grants provided by the initiative will be awarded to State and local Workforce Investment Boards enabling States and local communities to complement welfare reform efforts by focusing on work connections, work support activities, and skills training. The initiative addresses families with incomes up to 200 percent of the poverty level, including both custodial or non-custodial parents and their children. The Welfare-to-Work program, authorized by the Balanced Budget Act of 1997, is designed to help States and cities move the hardest to employ welfare recipients into lasting, unsubsidized jobs. States and cities can use these funds to provide subsidies and other incentives to private business. The Act appropriated $1.5 billion in mandatory funding for job placement and job creation in each of the fiscal years 1998 and 1999. The program provides formula grants to the States, and Federally administered competitive grants to Private Industry Councils, political subdivisions of States, and private entities. Working closely with the Congress, the Administration secured critically needed changes to the program's eligibility and reporting requirements which will allow the effort, within existing resources, to better serve the eligible population. In light of this, while the budget proposes no new funding for FY 2001, it does propose to extend authority for the allowable expenditure period for the funds from 3 to 5 years to permit optimal resource usage over the next several years, together with the rescission of remaining performance grants funding. For FY 2001, of those Welfare to Work participants placed in unsubsidized employment, 66 percent will remain in the workforce for six month (2 consecutive quarters following placement) with 6 percent average earnings increase by the second consecutive quarter following placement. The budget includes a new program of employment and training assistance to Incumbent Workers funded at $30 million in FY 2001 under WIA pilot and demonstration authority. The effort is intended to address the major job losses in the manufacturing industry where half a million jobs have been lost since March, 1998. The initiative will boost skills and wages of non-management U.S. workers through competitive grants to States to train and upgrade the skills of incumbent workers and, through local partnerships, help firms with training, thereby preventing displacements before they occur. Applicants would be required to provide non-Federal matching resources, and employers that receive grant assistance for skill upgrading would be expected to demonstrate that training increased participants' earnings, while those receiving such assistance for layoff prevention would be expected to show evidence of worker retention. During the initial year of funding of this program, an estimated 30 grants serving an estimated 20,000 participants will be awarded. The One Stop Career Center/Employment Service provides a vast array of information and services to American workers and employers. The Employment Service (ES) is the essential labor market infrastructure for the One Stop System. In FY 2001, a total of $805.9 million is requested, a decrease of $22.2 million below FY 2000. Included in this total in FY 2001 is a level of $761.7 million for Allotments to States under the ES, the same level as in FY 2000, and $44.2 million for ES National Programs, a decrease of $20.3 million below FY 2000 reflecting decreased funding for State foreign labor certification programs due to streamlining. ES provides no-fee services to individuals seeking employment and to employers seeking workers. The request is expected to result in 3.7 million "entering employment" placements. As the systems-building portion of the One Stop Career Centers is completed, the ES resources provide ongoing core services in this system. The request includes $20.6 million for administering foreign labor certification programs in FY 2001 of which $16.6 million will be replaced with funding generated by fees on employers requesting foreign labor certification under the Administration's legislative proposal. In FY 2001, the budget includes $20 million for Work Incentive Grants, the same level provided in FY 2000, to enhance the prospects of employment for individuals with disabilities. This effort is undertaken in conjunction with the Department's proposed establishment of the Office of Disability Policy Evaluation and Technical Assistance (ODPET) to increase the participation of individuals with disabilities in DOL programs and services -- particularly those serving youth. This program will provide competitive grants to partnerships or consortia in States to provide incentives for broader systems - building efforts involving coordinated service delivery through, and linkages across, the One Stop Career Center system established under Title I of WIA of 1998. In addition, these grants would augment the capacity of the One Stop Career Centers system for the delivery of a full array of effective employment and training services to people with disabilities. Likewise, this effort will promote coordination among members of such partnerships or consortia, in order to ensure that people with disabilities are better prepared to enter, reenter, and remain in the workforce. For FY 2001, the program will increase by 5 percent the number of people with disabilities served and increase by 2 percentage points the rate of unsubsidized employment in the local Workforce Investment Area. WIA National Programs is funded at $242.8 million in FY 2001, a net decrease of $57.6 million below FY 2000. These programs include the provision of employment and training assistance to Native Americans, and migrant and seasonal farm workers, as well as pilots, demonstrations, research and evaluation, and technical assistance and incentive grants in support of the employment and training system. Also included is existing funding for a demonstration program of grants to regional and local entities to provide technical skills training for unemployed and incumbent workers supported by fees paid by employers applying for foreign workers under the H-1B temporary foreign labor certification program. This program is authorized by the American Competitiveness and Workforce Improvement Act of 1998. Increases in FY 2001 include $10 million for WIA Incentive Grants, and $3 million for evaluation. Decreases include $44 million for one time pilot and demonstration projects funded in 2000 but not in 2001, $16.9 million for veterans programs transferred to Veterans Employment and Training, $4.6 million reflecting completion of a one-time project for Native Americans, and $3.5 million to phase down the National Skills Standards Board. In FY 2001 $440.2 million is requested for the Community Service Employment for Older Americans program, the same level provided in FY 2000. The request will continue support of the participant level of 92,000.
INCOME MAINTENANCE
1/ FY 2001 includes proposed
legislation ($47.0 million) The FY 2001 request for Income Maintenance includes $27.1 billion for the Unemployment Trust Fund. Of the FY 2001 Income Maintenance total, $2.4 billion is the discretionary amount requested for State administration of the Unemployment Insurance (UI) Program. In addition, $453.6 million is being requested for the Federal Unemployment Benefits and Allowances (FUBA) account, of which $47.0 million is to fund proposed legislation that would consolidate and reform the Trade Adjustment Assistance (TAA) and the NAFTA-Transitional Adjustment Assistance (NAFTA-TAA) programs and extend the combined program for five years to 2005. The FY 2001 request for Advances to the UTF and Other Funds (Advances) account is $1,903.3 million. This includes $435.0 million for repayable loans for the Black Lung Disability Trust Fund and, $1,468.3 million for proposed legislation to provide for Black Lung Trust Fund refinancing. The Advances account for FY 2000 will provide loans, currently estimated at $414.6 million, to the Black Lung Disability Trust Fund, consisting of $356.0 million appropriated, and $58.6 million available for mandatory requirements, under current appropriation language. In addition, if necessary, funds may also be advanced to the FUBA account. The balance of Income Maintenance includes Payments to the Unemployment Trust Fund, which provides for administrative costs related to extended benefits, State unemployment benefit payments to claimants, and Federal agency reimbursements for benefits paid to former Federal employees and ex-service members. Employment Security - Expand coverage and eligibility for benefits; Unemployment Insurance Program The request includes two major changes that are intended to meet the evolving needs of the States' administration of the UI program: (1) The Department is requesting the combining of the two budget activities that fund State administration of the UI program - State Administration and Contingency; and (2) the base workload level used to determine the States' base allocation will be raised from an AWIU claims workload of 2 million to a level of 2.396 million. Appropriation bill language is also proposed that would eliminate the separate appropriation for contingency funds. Together, these proposals address the States' fixed costs associated with maintaining a modern information technology infrastructure. The combining of the Contingency and State Administration budget activities into just one budget activity, State Administration, is a step forward in providing flexibility to the States in administering their UI programs. Both activities have been used in the past to do essentially the same thing, finance the administrative costs of processing unemployment claims. Under the new approach, a higher level of the total projected workload will be financed at the beginning of the year, allowing States to meet infrastructure costs, have more certainty about funding for the year, and plan efficient utilization of resources. A workload reserve will be maintained at the national level to finance individual States when their workloads turn out to be higher than projected. The FY 2001 funding level requested for the UI program will provide for approximately 44,000 staff years of service. State staff will handle 6.6 million employer tax accounts, 18.6 million initial unemployment claims, and a total of 124.6 million weeks claimed and 1.0 million appeals. In addition, to pay for any workload increase over an AWIU rate of 2.396 million, $28.6 million shall be available for every 100,000 increase over the AWIU, with a pro rata amount for any increase less than 100,000. This unemployment insurance request also includes $10 million for National Activities, which are interstate or multi-state in nature. Federal Unemployment Benefits and Allowances
(FUBA) For FY 2001, $406.6 million is requested for FUBA, under existing legislation. Under proposed legislation, $47.0 million is requested to consolidate, reform and extend programs funded under FUBA (TAA and NAFTA-TAA) through September 30, 2005. The consolidated proposed legislation would extend eligibility for TAA to those who lose employment due to shifts in production abroad, similar to the current NAFTA-TAA. The new program would link training and income support and provide needed supportive services. In addition the proposed legislation would increase the cap in training expenditure and create a funding provision to assure that resources are available to pay for any unexpected increase in benefit costs for eligible workers. Payments to the Unemployment Trust Fund Advances to the Unemployment Trust Fund and Other
Funds Unemployment Trust Fund
ETA PROGRAM ADMINISTRATION
1/ In FY 2000 and FY 2001 includes 21 staff funded through H1B fees and 3 reimbursable staff. The Program Administration account provides for Federal administration of all employment and training programs. These programs include those authorized by the following legislation: Workforce Investment Act (WIA) of 1998; the Older Americans Act of 1965, as amended; the School to Work Opportunities Act, expiring October 1, 2001; the Trade Act of 1974, as amended; the National Apprenticeship Act of 1937; the Social Security Act of 1935, as amended; the Wagner-Peyser Act of 1933, as amended; and Title 4 of the Social Security Act, as amended (Welfare to Work). Staff increases requested in this account will provide support for increased oversight, including oversight of the new Job Corps centers scheduled to open in 2000 and 2001, increased trade program caseloads, increased support for Youth activities and Youth Opportunity Grants, and support for women in apprenticeship and nontraditional occupations (WANTO). These staff will also support unemployment insurance oversight and integrity activities, as well as oversight of the Employment Service programs, including new Reemployment Services Grants. In addition, the staff will support Adult Service activities workload increases for the Dislocated Workers Program, including the Skills Shortage initiative and the Incumbent Worker initiative, Work Incentive Grants, Responsible Reintegration for Young Offenders initiative, and staff support for financial management activities. The request also includes increases for Information Technology to upgrade systems, and an increase for employee training. Adult Services Youth Services Workforce Security Apprenticeship Training, Employer and Labor
Services Executive Direction Welfare-to-Work Other Fees |
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