Labor and Job Training
WorkNotes
WorkNotes provides state legislators and legislative staff with information about employment, training and human resource development.
January/February, 1998
Deptartment of Labor's 1999 Budget
Secretary Alexis Herman unveiled the president's 1999 proposed budget for the U.S. Department of Labor (DOL) earlier this month. DOL's main goals are a stronger emphasis on serving out-of-school youth, expanding the Family Medical Leave Act for 10 million more workers, tackling unemployment insurance reform, increasing training for dislocated workers and veterans, fighting child labor, and continuing the Welfare-to-Work Jobs initiative. In all, the FY 1999 budget totals $38.1 billion, a net increase of $425 million.
The proposal calls for an extension of the Trade Adjustment Assistance (TAA) and NAFTA Transtitional Adjustment Assistance (NAFTA-TAA) programs for an additional five years. This is part of the president's response to criticism of fast track legislation for his trade policy and is an attempt to strengthen the support workers receive when they lose their jobs due to trade. DOL also wants to broaden eligibility for TAA and increase funding to meet the anticipated increase in demand for training. In addition to these efforts, DOL wishes to increase funding for title III of Job Training Partnership Act (JTPA), the Dislocated Worker Program. An increase of $100 million would go in part to serve 47,000 more laid off workers, bringing the total to 685,800. The remainder would be set aside for the next five years to build a $250 million fund for job training and income support for laid off workers from secondary firms doing business with primary firms that have been affected by trade.
Another initiative targets out-of-school youth in high-poverty areas. The budget includes $250 million for the Opportunities for the Out-of-School Youth Program to help young people find jobs. The Summer Jobs Program will continue to support 530,000 job opportunities for urban and rural disadvantaged youth. With a proposed addition of $61.4 million, Job Corps will build five new centers and improve others. Funding for these youth programs is tied to the work force legislation currently being considered in Congress. Community-based organizations interested in youth programs are urging passage of the Senate's legislation because DOL has no contingency plan for funding these youth programs.
Other DOL initiatives include $37.1 million for reducing illegal child labor both in the U.S. and abroad; a $10 million increase for an initiative testing new learning technologies entitled "Learning Anytime, Anywhere;" and $5 million to expand the registered apprenticeship system to include child care development specialists as an occupation in 10 states. Some of the funds for these new initiatives will come from scheduled reductions in School-to-Work and One-Stop Career Centers.
Update on Federal Waivers for States
Arizona, Illinois, Massachusetts and Vermont won approval from the U.S. Department of Labor on February 24 to operate their multimillion dollar employment and job training programs with less oversight and fewer restrictions from the federal government. These four states joined 30 others that have received federal job training waivers. The waivers enable states to bypass certain federal regulations in the JTPA and the Wagner-Peyser Act that funds employment services. Examples of regulations waived include no stand alone work experience, as well as separate procedures and tracking for needs-based payments for different populations. This waiver flexibility allows states to tailor assistance and job training to the needs of individual clients, which include displaced workers, welfare recipients and disadvantaged youth and adults. In exchange for this flexibility, states must meet higher levels of accountability and performance measures.
Other states that have general waiver authority are: Alabama, Alaska, Arkansas, California, Florida, Georgia, Indiana, Iowa, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Dakota, Tennessee, Utah, Virginia, Washington and Wyoming. Guam also received waiver approval.
Taking the idea of general waivers to the local level, DOL recently announced that six states, Florida, Iowa, Ohio, Oregon, South Dakota and Texas, won approval for the "Workforce Flexibility (Work-Flex) Demonstration Program." Being designated a Work-Flex state allows governors to grant waiver authority to local public training programs, eliminating the need to get prior permission from the federal level. DOL hopes this will allow local programs to seek greater innovation and customize their job training programs for all eligible workers under JTPA and Wagner-Peyser. As with the general waiver authority, greater flexibility is tempered with greater accountability. Work-Flex status extends until June 30, 2002. For more information about these federal waivers, check out the Employment and Training Administration's Web site at http://www.doleta.gov .
Unemployment Insurance Reform
A proposal to send more Federal Unemployment Tax Act dollars back to the states will soon see its way onto the House agenda. Representative Clay Shaw of Florida, a member of the Ways and Means Committee and chair of the Human Resources Subcommittee, will introduce legislation addressing the issue. Currently, 46 of the 53 states and territories send more money into the unemployment insurance trust fund ($5.9 billion) than they see returned to them to for administration ($3.5 billion). Like many other federal trust funds, the "excess assets" are kept in the federal treasury and used as a paper offset to the federal debt. The new proposal would retain federal oversight and control of the trust fund accounts, but would give state legislatures administrative funding decisions. The current proposal was developed by a coalition of state employment security offices and business interests and is similar to one endorsed by NCSL nearly 10 years ago. This issue will be a topic at the next AFI meeting in Washington, D.C., April 16-18. Call (202) 624-5400 for more information or check out NCSL's Web site.
Hot off the Press: 1997 State Labor Laws
A new "Monthly Labor Review" from the Department of Labor summarizes 1997 legislation from 45 states, Guam and Puerto Rico. The review covers all major state legislation in the labor arena--everything from minimum wage requirements to worker privacy to genetic testing. NCSL has extra copies of the review. To receive a copy, e-mail Tracy Schmidt with your name and address.
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NCSL WorkNotes is published by the Employment and Training Project of the National Conference of State Legislatures, 444 N. Capitol St., NW, Suite 515, Washington, DC 20001; (202) 624-5400, (202) 737-1069 (fax). |
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This newsletter is funded by the U.S. Department of Labor. Opinions or conclusions expressed herein do not necessarily reflect the views and policies of the U.S. Department of Labor. |
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If you have news you would like to share with WorkNotes readers or comments on this issue, please contact Tracy Schmidt at the above address or by e-mail at tracy.schmidt@ncsl.org. |
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