    [House Hearing, 108 Congress]
    [From the U.S. Government Publishing Office]

    H.R. 444, BACK TO WORK INCENTIVE ACT OF 2003
    _________________________________________________________

                                  HEARING

                                 BEFORE THE

                            COMMITTEE ON EDUCATION AND

                                   THE WORKFORCE

                              HOUSE OF REPRESENTATIVES

                             ONE HUNDRED EIGHTH CONGRESS

                                   FIRST SESSION
                                      ________

           HEARING HELD IN LAS VEGAS, NEVADA, FEBRUARY 18, 2003

                                      ________

                                  Serial No. 108-3

                                      ________

             Printed for the use of the Committee on Education
                                and the Workforce

    86-211
    ____________________________________________________________________________
    For Sale by the Superintendent of Documents, U.S. Government Printing Office
    Internet: bookstore.gpo.gov  Phone: toll free (866) 512-1800; (202) 512-1800
    Fax: (202) 512-2250 Mail: Stop SSOP, Washington, DC 20402-0001

                    COMMITTEE ON EDUCATION AND THE WORKFORCE

                         JOHN A. BOEHNER, Ohio, Chairman

    THOMAS E. PETRI, Wisconsin		GEORGE MILLER, California
    CASS BALLENGER, North Carolina		DALE E. KILDEE, Michigan
    PETER HOEKSTRA, Michigan		MAJOR R. OWENS, New York
    HOWARD P. "BUCK" McKEON, California	DONALD M. PAYNE, New Jersey
    MICHAEL N. CASTLE, Delaware		ROBERT E. ANDREWS, New Jersey
    SAM JOHNSON, Texas			LYNN C. WOOLSEY, California
    JAMES C. GREENWOOD, Pennsylvania	RUBEN HINOJOSA, Texas
    CHARLIE NORWOOD, Georgia		CAROLYN McCARTHY, New York
    FRED UPTON, Michigan			JOHN F. TIERNEY, Massachusetts
    VERNON J. EHLERS, Michigan		RON KIND, Wisconsin
    JIM DeMINT, South Carolina		DENNIS J. KUCINICH, Ohio
    JOHNNY ISAKSON, Georgia			DAVID WU, Oregon
    JUDY BIGGERT, Illinois			RUSH D. HOLT, New Jersey
    TODD RUSSELL PLATTS, Pennsylvania	SUSAN A. DAVIS, California
    PATRICK J. TIBERI, Ohio			BETTY McCOLLUM, Minnesota
    RIC KELLER, Florida			DANNY K. DAVIS, Illinois
    TOM OSBORNE, Nebraska			ED CASE, Hawaii
    JOE WILSON, South Carolina		RAUL M. GRIJALVA, Arizona
    TOM COLE, Oklahoma			DENISE L. MAJETTE, Georgia
    JON C. PORTER, Nevada			CHRIS VAN HOLLEN, Maryland
    JOHN KLINE, Minnesota			TIMOTHY J. RYAN, Ohio
    JOHN R. CARTER, Texas
    MARILYN N. MUSGRAVE, Colorado
    MARSHA BLACKBURN, Tennessee
    PHIL GINGREY, Georgia
    MAX BURNS, Georgia

                         Paula Nowakowski, Chief of Staff
                     John Lawrence, Minority Staff Director

    Table of Contents

    OPENING STATEMENT OF CHAIRMAN JOHN BOEHNER, COMMITTEE ON
    EDUCATION AND THE WORKFORCE................................2

    STATEMENT OF CHAIRMAN BUCK MCKEON, SUBCOMMITTEE ON 21ST CENTURY
    COMPETITIVENESS, COMMITTEE ON EDUCATION AND THE WORKFORCE..3

    STATEMENT OF CONGRESSMAN JON PORTER, COMMITTEE ON EDUCATION AND
    THE WORKFORCE..............................................4

    STATEMENT OF MYLA FLORENCE, DIRECTOR, NEVADA DEPARTMENT OF
    EMPLOYMENT, TRAINING AND REHABILITATION, CARSON CITY, NV........6

    STATEMENT OF ROBERT BREWER, CHAIRMAN, SOUTHERN NEVADA WORKFORCE
    INVESTMENT BOARD, LAS VEGAS, NV................................9

    STATEMENT OF DEBI LINDEMENN, EMPLOYMENT SPECIALIST SUPERVISOR,
    NORTH LAS VEGAS JOBCONNECT, DEPARTMENT O F EMPLOYMENT, TRAINING
    AND REHABILITATION, LAS VEGAS, NV.............................12

    STATEMENT OF ARDELL GALBRETH, DEPUTY BOARD MANAGER AND DIRECTOR
    OF OPERATIONS, SOUTHERN NEVADA WORKFORCE INVESTMENT BOARD, LAS
    VEGAS, NV.....................................................14

    APPENDIX A - WRITTEN OPENING STATEMENT OF CHAIRMAN JOHN BOEHNER,
    COMMITTEE ON EDUCATION AND THE WORKFORCE......................27

    APPENDIX B - WRITTEN STATEMENT OF CONGRESSMAN JON PORTER,
    COMMITTEE ON EDUCATION AND THE WORKFORCE......................31

    APPENDIX C - WRITTEN STATEMENT OF MYLA FLORENCE, DIRECTOR, NEVADA
    DEPARTMENT OF EMPLOYMENT, TRAINING AND REHABILITATION, CARSON
    CITY, NV......................................................35

    APPENDIX D - WRITTEN STATEMENT OF ROBERT BREWER, CHAIRMAN,
    SOUTHERN NEVADA WORKFORCE INVESTMENT BOARD, LAS VEGAS, NV......43

    APPENDIX E - WRITTEN STATEMENT OF DEBI LINDEMENN, EMPLOYMENT
    SPECIALIST SUPERVISOR, NORTH LAS VEGAS JOBCONNECT, DEPARTMENT OF
    EMPLOYMENT, TRAINING AND REHABILITATION, LAS VEGAS, NV.........51

    APPENDIX F - WRITTEN STATEMENT OF ARDELL GALBRETH, DEPUTY BOARD
    MANAGER AND DIRECTOR OF OPERATIONS, SOUTHERN NEVADA WORKFORCE
    INVESTMENT BOARD, LAS VEGAS, NV................................55

    Table of Indexes...............................................61

                                   HEARING ON H.R. 444

                           "BACK TO WORK INCENTIVE ACT OF 2003"
    ________________________________________________________________

    Tuesday, February 18, 2003

    Committee on Education and the Workforce

    U. S. House of Representatives

    Washington, D.C.

    	The Committee met, pursuant to call, at 9:30 a.m., in
    Room 101, the Nevada Job Connect, 2401 Las Verdes Street, Las Vegas,
    Nevada, Hon. John A. Boehner, Chairman, presiding.

    	Present:  Representatives Boehner, Porter, and McKeon.

    Chairman Boehner  XE "Chairman Boehner"  .  Good morning.

    The Committee on Education and the Workforce will come to order.
    We are meeting here today to hear testimony on H.R. 444, the Back
    To Work Incentive Act of 2003.

    	I'd like to thank the Community College of Southern Nevada
    and the Southern Nevada Workforce Investment Board for hosting our
    hearing this morning.  I appreciate their hospitality, and I'm
     pleased to be here to hear from our witnesses.

    	But before I begin, I want to ask for unanimous consent for
    the hearing record to remain open for 14 days to allow Members'
    statements and other extraneous materials referenced during the
    hearing today to be submitted for the official hearing record.  And
    without objection, so ordered.

    OPENING STATEMENT OF CHAIRMAN JOHN BOEHNER, COMMITTEE
    ON EDUCATION AND THE WORKFORCE

    	Let me start this morning by thanking my good friend and
    our new colleague, Jon Porter, for hosting us here today.  I'd also
    like to welcome all of our witnesses.  We are looking forward to
     hearing your testimony, and I appreciate the opportunity to discuss
    the Back To Work proposal before our Committee and to hear your
    thoughts on this important legislation.

    During his State of the Union Address, President Bush laid out a
    comprehensive plan to speed our economic recovery and to promote long-
    term job growth and investment.  His plan also provides specific
    assistance in the form of personal reemployment accounts to help
    unemployed Americans who are struggling to get back to work.

    	At a time when the economy is struggling, but also improving,
    it's important that we focus on giving the unemployed more flexibility
    and choices in their employment search.  And even though the most
    recent Labor Department statistics reveal that the unemployment rate
     nationally is down to 5.7 percent, we still need to examine new ways
    to help working families across the country during the time when they
    need it the most.

    	I'm particularly attuned to the situation here in the State
    of Nevada.  I have heard directly from Congressman Porter about how
    Nevada is one of the Nation's fastest growing areas, which can leave
    it particularly vulnerable when the economy turns sluggish.  A growing
     population can also mean more unemployed when the number of available
    jobs diminishes, as I think we've seen here.  So I'm pleased to say
    that President Bush and our Committee are looking at additional
    solutions beyond basic unemployment compensation that can help
    Americans when they need it the most.

    	On January 29th, Congressman Porter, Congressman McKeon,
    myself, and others introduced the Back To Work Incentive Act, which
    reflects the President's plan to create personal reemployment accounts
    and help unemployed workers return to work quickly.

    	The Back To Work Incentive Act represents a new and innovative
     approach to helping the unemployed get back on their feet.  And as
    President Bush has said, one worker out of work is one worker too many,
    and he believes and we believe, that this plan will help working
    families in times when they most need it.

    	Workers can use their Back To Work accounts for a variety of
    different services to help them find a good job, including job training,
    child care, transportation, housing, and other expenses to help in
    finding a new job.  Recipients will be able to keep the balance of
    their $3,000 Back To Work account as a cash reemployment bonus if they
    become reemployed within 13 weeks, creating, I think, an important new
     incentive to return to work quickly.

    	States such as Iowa, Pennsylvania, and Washington have tried
    these reemployment accounts, and they have shown some very promising
    success.

    	One of the exciting aspects of this Back To Work account is
    that they empower individual recipients to make choices that are
    appropriate for their own circumstances.  Recipients will be able to
    create reemployment plans that help them navigate the options that
    are available, such as career counseling or training, maybe even
    training for a new profession in which they can become employed.
    By providing choice and flexibility, I think we can get people back
    into steady, good-paying jobs more quickly.

    	This new benefit supplements and enhances the services that
    are already available for those who are most likely to face obstacles
    in finding and keeping new employment. These new accounts will not
     only provide the unemployed with another important benefit to help
    them find a new job, but will be efficiently administered through the
    easily accessible One-Stop Career Center system, much like the center
    we will visit after our hearing this morning.

    	So I look forward to working with President Bush, Subcommittee
     Chairman McKeon, and Congressman Porter to move this proposal quickly
    and to make this innovative plan a reality for working families who
    need the help the most.

    WRITTEN OPENING STATEMENT OF CHAIRMAN JOHN BOEHNER,
    COMMITTEE ON EDUCATION AND THE WORKFORCE - SEE APPENDIX A

    Chairman Boehner.  I want to thank Mr. Porter for joining us and
    hosting us this morning.  And I also want to thank our Subcommittee
    Chairman, Buck McKeon.  We all sit on the Education and Workforce
    Committee and I welcome them today.

    	Let me yield to the Subcommittee Chairman, Mr. McKeon, for
    an opening statement.

    STATEMENT OF CHAIRMAN BUCK MCKEON, SUBCOMMITTEE ON 21ST
    CENTURY COMPETITIVENESS, COMMITTEE ON EDUCATION AND THE
    WORKFORCE

    Thank you, Mr. Chairman.  It's a pleasure to be here with you and
    Mr. Porter today.

    	I think it's very fitting that we are sitting here at the
    Community College of Southern Nevada and right next to a One-Stop
    Centers because both the community colleges and the One-Stop Centers
    are going to be so important in administering this program.

    	I also want to compliment you on choosing Jon Porter to be
    your Representative.  He's an outstanding Member of Congress.  In just
    the short time that he has been in Washington, his leadership and the
    ability that he has to move things forward is why he was chosen to
    carry this bill.  And that's a compliment to you, the people of this
     community.  I look forward to working with him and Chairman Boehner.

    	You know, we try to visit the Districts as much as we can,
    but we don't really have a lot of field hearings.  This is the first
    one we have held in this Congress. And I want to thank the Chairman
    for coming, and Congressman Porter for hosting us, and all of you for
    being here today.  Thank you very much.

    Chairman Boehner  XE "Chairman Boehner"  .  The Chair recognizes
    Mr. Porter.

    Mr. Porter  XE "Mr. Porter"  .  Thank you, Mr. Chairman.

    	The truth is that the Chairman knew that there would 18
    inches of snow in Washington today, so he planned this field hearing
    so we could be here in the Southwest.

    Chairman Boehner  XE "Chairman Boehner"  .  I wish I were that smart.

    STATEMENT OF CONGRESSMAN JON PORTER, COMMITTEE ON
    EDUCATION AND THE WORKFORCE

    It's an honor for me to be here and to be a new Representative of
    Nevada.  It's quite historical to hold this 3rd District seat.  I
    made it a priority during my campaign and when I was in the Nevada
    Legislature to try to bring as many folks to Nevada as possible to
    see and experience our state, to meet our families and look at the
    challenges that we have here, plus the great things we are proud of.

    	I was selected to be the primary sponsor of H.R. 444, and I
    believe that's because Nevada, as the Chairman mentioned, was one of
    the hardest hit states, especially after September 11th. The tourism
    industry, not only across Nevada, but also across the country
    experienced similar challenges.  I believe that this bill, with the
    guidance of our Chairman and the Committee, and the President of the
    United States is really targeting communities like Las Vegas and
    states like Nevada, and I'm very proud of that.

    	I appreciate both of my colleagues being here and I must tell
    you that they have been here many times before, and have helped me
    and helped the state.  So I applaud the Chairman and Congressman
    McKeon for sharing again with us.

    	As was mentioned, we have some serious challenges here in
    Nevada, but I'll tell you this is a great opportunity to jump-start
    our community and get folks back to work.

    	I spoke at our first hearing and our press conference in D.C.
    about a young lady that lives here.  She's a single mother with two
    kids, and she is currently receiving about $600 a month in unemployment
     benefits.  Imagine the challenge for this young woman in trying to
    find somebody to watch her kids so she can get out and find a job, or
    imagine the challenges of transportation for this young woman.  The
    $600 a month is helping, but barely meets her minimum needs.

    	This new bill is going to give her the opportunity to find
    somebody to help watch the kids so she can go out and find a job,
    and maybe take care of her transportation needs and jump-start her
    opportunity for training to get back into the workforce. I'm very
    proud of this and look forward to working with everyone and hearing
    your testimony this morning.

    	I enjoy and am honored to be a Member of Congress.  It's an
    exciting experience for me, but also a very humbling realization that
    we have some serious challenges and some pretty tough decisions to be
    made.

    	Last year in Nevada the benefits of 36,000 families ran out,
    and for another 19,000 plus the extended benefits were gone.  That's
    why it's so important that we pass this bill to help our moms and
    dads and families get back to work as soon as possible.

    	Thank you all very much. Again, to my colleagues, I appreciate
    your being here in Nevada.

    WRITTEN STATEMENT OF CONGRESSMAN JON PORTER, COMMITTEE
    ON EDUCATION AND THE WORKFORCE - SEE APPENDIX B

    Chairman Boehner  XE "Chairman Boehner"  .  Thank you, Mr. Porter.

    	As Mr. McKeon mentioned, we try to get outside of Washington
    to talk to real people that operate many of the programs that we pass
    and administer the policies that we oversee.

    Mr. McKeon  XE "Mr. McKeon"   is the author of the Workforce
    Investment Act with it's One-Stop Career Centers, and we believe that
    these Back To Work accounts can be another step in helping those who
    are unemployed to get back on their feet and find long-term sustainable employment.

    	It's now my pleasure to introduce our witnesses this morning.

    	Myla Florence is the Director of the Nevada Department of
    Employment, Training and Rehabilitation, Carson City, NV.  Director
    Florence oversees the State of Nevada's employment service and
    rehabilitation service systems.

    	Robert Brewer is Chairman of the Southern Nevada Workforce
    Investment Board, Las Vegas, NV, which serves a four-county area
    surrounding Las Vegas.  In addition, he's a senior manager of corporate
    and administrative services for Southwestern Gas.  He also serves on
    the executive committee of the National Association of Workforce Boards.

    	Debi Lindemenn is an Employment Specialist Supervisor with the
    Nevada Job Connect One-Stop Center in North Las Vegas.  As an employment
     specialist, she supervises a team that works with individuals seeking
    new or better employment.  And I think she will be able to help describe
    for us how these accounts will help those that are, in fact, unemployed.

    	And we have Ardell Galbreth, Deputy Board Manager and Director of
     Operations for the Southern Nevada Workforce Investment Board, Las Vegas,
     NV and he'll provide perspective on the local workforce development
    system.

    	We limit witness testimony to five minutes.  Since the Staff
    who runs our hearings are all in Washington, we have a timer here.  I
    think we'll just forgo the timer.  But your entire written statement
    will be made part of the record; so don't feel constrained by the five-
    minute rule.  We're going to be pretty easy today.

    Ms. Florence  XE "Ms. Florence"  , why don't you begin?

    STATEMENT OF MYLA FLORENCE, DIRECTOR, NEVADA
    DEPARTMENT OF EMPLOYMENT, TRAINING AND REHABILITATION,
    CARSON CITY, NV

    Thank you very much. Mr. Chairman and Members of the Committee on
    Education and the Workforce, for the record, I am Myla Florence,
    Director of the Nevada Department of Employment, Training and
    Rehabilitation.  Thank you for inviting me to testify today, and it's
    an honor to be here at Congressman Porter's first field hearing in
    Nevada.

    	The Department of Employment, Training and Rehabilitation
    administers programs authorized under the Workforce Investment Act,
    as well as unemployment insurance, employment services, vocational
     rehabilitation, and the Nevada Equal Rights programs.

    	Our department in conjunction with the Governor's State
    Workforce Investment Board and the two Local Workforce Investment
    Boards in Nevada has made a remarkable transformation of the
    publicly funded workforce system since the passage of WIA in 1998.
    We truly have a unified system in Nevada known as Nevada Job Connect.
    We are equal partners in combining the various workforce programs
    into a seamless system connecting businesses and a trained workforce.

    	I want to thank the Chairman for scheduling a hearing on
    President Bush's "Personal Re-employment Account" proposal and
    Congressman Porter for bringing this hearing to Nevada
    and introducing H.R. 444, the Back To Work Incentive Act. As
    Congressman Porter noted, in the state fiscal year 2002, over
    36,000 Nevadans exhausted their regular unemployment benefits.
    And of those claimants, 19,000 went on to receive temporary
    extended unemployment compensation. For the week ending January
    31st, 2003, Nevada reported 31,0092 individuals collecting regular
    UI benefits and 4,100 receiving extended benefits. For the last
    two months we have seen Nevada's unemployment rate tick slightly
    upwards to 5 percent in December of 2002.  This is the first time
    that the unemployment rate has moved upwards since December of
    2001, a concerning trend for us.

    	Currently, Nevada's average benefit amount is $232.29 per
    week, and the average duration  for an individual to receive benefits
    is about 15 and a half weeks.  Through the support and incentives
    provided in H.R. 444, if we shorten the duration by even one week,
    the state's trust fund could save approximately $8.4 million.  That
    is a large number by Nevada standards, not a large number by
    Chairman McKeon's standards in California, but when you multiply
    that across the country, you can imagine the savings this incentive
    may translate into. While the personal reemployment accounts would
    not be available to all claimants, we believe the heightened
    interest in such a program would connect more of the unemployed to
    the Nevada Job Connect system and the resources it can provide.

    	We appreciate the flexibility provided to states in H.R. 444
    and envision working with local boards on state options and program
    design.  We also greatly appreciate the Administration's recognition
    of the workforce system in general, and Nevada Job Connect in
    particular, to administer this new program. 	The investment of
    the $3.6 billion in additional resources is welcomed and builds on
    the successes contemplated when the Workforce Investment Act was
    written.  It also builds upon worker profiling systems and
    reemployment services states currently provide.

    	In April of 2002, Nevada implemented an Automated Claimant
    Call In Letter to select claimants based upon job availability and
    their form occupational codes.  The call in letter matching program
    was later enhanced to include the implementation of an interactive
    voice response unit, which enables Nevada Job Connect staff to
    increase follow-up contacts with UI
    claimants.

    	The reemployment services goal was to achieve over 1,400
    entered employments statewide.  However, with the automated
    enhancements and increased claimant contacts, Nevada substantially
    exceeded its goal with over 4,200 entered employments. The Committee
    may want to consider directing a portion of the new funding stream
    of $3.6 billion to reinvigorate or support existing programs that
    are targeted to rapid reentry of the unemployed to the workforce or
    providing governors with the ability to request program waivers where
     appropriate.

    	As this legislation wields its way through the congressional
    process, I assure you that our department and the Nevada Job Connect
    system stands ready to assist in any way we can.

    	With regards to WIA reauthorization, as you know, Congress
    will be considering several reauthorizations in addition to WIA,
    such as Carl Perkins, Vocational Rehabilitation, and Adult Education.
    TANF, we've already passed.  The timing of these three reauthorizations
     provides an unprecedented opportunity to align programs and services to
     further enhance the one-stop workforce system.

    	The system exhibited its capabilities as Nevada Job Connect
    quickly responded to the tragic events of September 11, 2001.  Nevada
    Job Connect partners rallied to assist over 5,500 individuals who
    needed in-person assistance to file for unemployment insurance and
     other related benefits.  We did those at the Culinary Union Hall in
    Las Vegas and the Community College of Southern Nevada in Henderson.
    More recently, Nevada Job Connect partners have assisted with mass
    layoffs at National Airlines, K-Mart, and American Airlines through
    the WIA funded Rapid Response program to enable those faced with job
    loss to reattach to the workforce more quickly.

    Secretary Elaine Chao's testimony to this Committee on February 12
    reinforced the notion that WIA requires some fine-tuning and not a
    major overhaul.  The flexibility provided in H.R. 444 should be
    considered in WIA reauthorization proposals and deliberations.

    Governor Kenny Guinn, a former businessman, believes workforce
    development is really economic development.  When he launched Nevada
    Job Connect in January 2002, his remarks emphasized the critical
    importance of focusing on our state's businesses' needs.  He simply
     stated, "If we take care of business, the job, skills development,
    and strong educational system will follow."

    	The Workforce Investment Act should have a section devoted
    to business services.  The section should require input from the
    business customer, authorize the provision of the services that meet
     businesses' workforce needs and emphasize the linkage between
     workforce development and the economic development.

    Governor Guinn is our state's CEO and CFO.  As such, governors need
    to be designated as the ones in charge of determining how WIA will be
     implemented in their states. And as you have previously heard, the
    size of state and local boards are unwieldy.  WIA must be amended to
    grant governors and local areas greater flexibility in determining
    board memberships that meet their needs, while still requiring a
    private sector majority.  One-Stop partners should serve as resources
    to the boards and not as required board members.

    	We must diminish the "silo" aspect of federally funded programs
    and provide governors and localities greater authority to transfer funds
     between programs or at a minimum, a set aside from each "silo" for
     infrastructure support for the One-Stop Centers. All workforce programs
    should run in consistent program years and the federal agencies must
    develop common definitions, data elements, and reporting requirements
    among the programs that provide employment and training services.

    	Nevada businesses have expressed a strong need for incumbent
    worker training.  WIA resources need to be flexible to meet this need.
      Nevada's experience with pilot programs has demonstrated that such
    training enables employers to stay in Nevada and supports employee
    retention.

    	Finally, the increased demand for local data under the
    Workforce Investment Act must be fully funded.  Businesses demand
    user-friendly localized data.  It is a valuable economic tool that
    is positioned to take advantage of existing and emerging technology.

    Mr. Chairman and Members of the Committee that concludes my remarks.
    I'd be happy to answer any questions that you may have.

    WRITTEN STATEMENT OF MYLA FLORENCE, DIRECTOR, NEVADA DEPARTMENT OF
    EMPLOYMENT, TRAINING AND REHABILITATION, CARSON CITY, NV  -  SEE
    APPENDIX C

    Chairman Boehner  XE "Chairman Boehner"  .  We'll hear from all the
    witnesses, and then we'll get into several rounds of questions.

    Mr. Brewer  XE "Mr. Brewer"  .

    STATEMENT OF ROBERT BREWER, CHAIRMAN, SOUTHERN NEVADA WORKFORCE
    INVESTMENT BOARD, LAS VEGAS, NV

    Chairman Boehner  XE "Chairman Boehner"  , Chairman McKeon, Mr. Porter,
    and distinguished Members of the Committee, as previously stated my
     name is Robert Brewer.  I'm the Chairman of the Southern Nevada
    Workforce Board.  I also serve on the State Workforce Board, and I am
    one of the board members of the National Association of Workforce
    Boards.  I am also Chairman of the Board Policy Committee at the
     national level. When I am not wearing all of my Workforce Board hats,
    I am the director, not the senior manager, but the Director of
    Corporate and Administrative Services for Southwest Gas Corporation,
     which is here in Las Vegas.

    	I'd like to thank the Members of the Committee for inviting me
    today to testify before you and about my views on H.R. 444, the Back to
     Work Incentive Act.	While I will focus my remarks on specific
    legislation, I would be remiss if I did not express my strong support
    for the locally-based, private sector led workforce investment system
     established under the Workforce Investment Act of 1998, and particularly,
    the vital role that local workforce investment boards play in the
    governance of that system.  It is my hope that the reauthorization of
    WIA and any new workforce initiatives, such as the Personal Reemployment
     Accounts envisioned in H.R. 444, will build upon the WIA system and
    continue to provide local boards with a clearly defined role in the
    design and oversight of such initiatives.

    	If I may take a moment, I would like to take this opportunity
    to thank Congressman Porter for introducing this important legislation,
    and for his support of our efforts here in Nevada in building a highly
    skilled workforce.  This proposed initiative has a great potential for
     providing our most vulnerable dislocated workers with additional
    resources that will help them secure new, gainful employment.  It is an
     important effort to assist the over 2 million workers who have lost
    their jobs over the last two years.

    	In Nevada, and in Las Vegas in particular, the unemployment
    rate increased in December to 5 percent.  That translates to over
    50,000 people out of work; over 40,000 of whom are looking for work
    in the Las Vegas metropolitan area. While this number is still nearly
    a full percentage point below the national average, it represents a
    worrisome increase in the number of unemployed workers in our state
    and region.

    	The good news is that, in spite of the rise in unemployment
    recently, employment in Nevada has grown in all sectors but mining
    over the past year.  Total employment in Nevada reached over 1 million
    last year, up 2.4 percent from the previous year.  Statewide, key
    sectors such as construction, manufacturing, trade, government and
    services have continued to grow.  The bottom line is we must focus our
     energies on connecting unemployed workers with the jobs that are in
    demand.

    	H.R. 444 has the goal of helping the most vulnerable of these
     dislocated workers get back to work by providing them with additional
     flexibility, choice, and assistance in their search for employment. The
     eligible recipients who have been profiled typically have higher levels
    of skills deficits, and they will be able to benefit greatly from the
    new education and training opportunities that the personal reemployment
     accounts can provide.  Finding replacement employment with wages that
    can support their families now and provide career paths with upward
    wage growth for the future will also benefit our communities as well.

    	In particular, I commend your efforts to make the personal
     reemployment accounts established under the bill a part of the workforce
     investment system by requiring that funds be accessed through the One-
    Stop delivery system.  I support the manner in which the funding is
     distributed for the accounts, with 5 percent of funding provided up-
    front to the local workforce areas for program startup costs and
     administration, and the remaining amounts drawn down to the indivi-
    duals who are eligible in the form of personal reemployment accounts.
    I also support the appropriate role for states in determining
    eligibility for the reemployment accounts and in conducting profiling
    that will further identify workers who are eligible for services. I
    do have several areas of concern that I think, if addressed, would
     significantly strengthen this proposal and ensure its successful
     implementation.

    	Our WIA system and local workforce boards provide a ready
     mechanism for providing quality assurance and accountability that
     cannot be achieved through the states alone.  My biggest concern
    with H.R. 444, as it is now written, is the lack of a clearly defined
    local role for local workforce investment boards, i.e., in determining
    how the reemployment accounts will be implemented, in ensuring
    accountability over the accounts, and in the planning of how these
    additional resources will augment existing resources in the broader
    workforce investment system.

    	Although the proposal requires that personal reemployment
    accounts be accessed through the One-Stop delivery system established
    under WIA, local workforce boards do not appear to have any authority
    over the implementation or oversight of this $3.6 billion in new
    funding that will be sent through the workforce system. As written,
    the bill would make local workforce areas financially liable for any
    misexpenditures or misuse of funds after the fact, and provides local
    boards and local elected officials with very little authority up front
    to ensure that resources are used properly or wisely. I would urge you
    to provide the same levels of authority, responsibility, and
    accountability provided to local boards under WIA in this new
    legislation.  There is an accountability infrastructure already
    established in WIA, why should more money be spent to set up something
     parallel?

    	There is another accountability feature that I would strongly
    urge the Committee to incorporate in H.R. 444.  Build on the current
    local planning process by requiring the workforce boards to describe
    how personal reemployment accounts would be utilized as part of the
    broader workforce investment system to meet individual worker and
    regional economic needs. The local plans would describe safeguards,
    including how the local boards would identify reputable, high quality
    service providers, and, ultimately, would ensure the wise use of these
    funds at the local level.  Local workforce boards are already doing this
    in WIA.  This is a public stewardship responsibility that we are
    prepared to take on.

    	My third suggestion regarding local boards' roles further
    strengthens program accountability once the program is initiated.
    It is aimed at simplifying and speeding up the process and ensures
    that quality assistance is available to eligible recipients as they
    exercise their flexibility and choice of return to work assistance.
    I urge you to utilize the existing WIA infrastructure and processes
    for accessing similar training and support services under the personal
     reemployment accounts.  Doing so will provide greater assurance that
     recipients will identify and receive quality assistance, especially
    if local workforce boards and states are permitted to add to the lists
    of qualified service and training providers. In any case, local boards
    must have a role in the identification and approval of such providers
    to guard against abuses and to ensure quality and accountability within
    the system, particularly if they are to be held liable for these funds.

    	I also share your goal that individuals should be given
    flexibility to use resources under H.R. 444 to meet their individual
    needs.  This is particularly important for workers profiled as eligible
    for these services because they are the most vulnerable of the
    unemployed.  There is no cookie-cutter solution for their individual
    needs.  For this reason, we believe there is an important role for
     informed guidance in this process.

    	We have spent the last five years building our public workforce
     system, and I believe that local One-Stop systems, in response to the
    policies set by local workforce investment boards, have developed a
    systematic approach to guide unemployed individuals through the WIA
    services presently available. I would urge that you underpin the
    flexibility given to the individual in the bill by requiring that
    helpful occupational guidance and assistance be available to each
    worker to help him/her make choices based on good information and
    complete understanding of the full range of resources and opportunities
    that are available to them. As such, I recommend that you modify the
    proposal to require that each individual accessing a reemployment
    account develop a personal reemployment plan as a condition of
    eligibility for that account. Quality occupational information and
    career counseling should be provided to individuals as they decide
    how to manage their accounts.  This process should not require
    adherence to a rigid plan of action by the individual, but should
    provide workers with an understanding of the wide range of occupational
    and support services available to them.  Having workers understand
    pathways to more upward mobile career paths, including those that may
    include skills training, will lead them to wise use of their
    reemployment account resources.

    	I do have one final suggestion.  Under H.R. 444, individuals
    who choose to receive a personal reemployment account are prohibited
    from receiving any further services, except for core services, through
    the WIA system for one full year after receipt of a PRA. While this
    might be appropriate for those individuals who cash out their account,
    or possibly even for those who use their personal reemployment account
    for the purchase of an automobile, this provision ends up being too
     restrictive, and potentially punitive, for those who choose to receive
     services through the reemployment accounts. Again, I remind you that
    those eligible to receive personal reemployment accounts are the most
     vulnerable of the dislocated workers, many of whom have been profiled
    as a result of inadequate education and skills levels.  They are
    likely to need longer-term education and training services in order
    to be competitive in today's job market. Due to this, I would ask
    that you allow local boards to determine packaging of personal
    reemployment accounts, ITAs and other services under WIA for individuals
    who are in need of such assistance, with the exception of those
    individuals who do cash out their reemployment accounts.

    Chairman Boehner  XE "Chairman Boehner"  , Chairman McKeon, Mr. Porter
    and other Members of the Committee, again, I commend you for your
    leadership in our nation's workforce investment efforts, and on your
     leadership in the introduction of this important legislation. Here
    in the Las Vegas area, these H.R. 444 resources, in combination with
    those provided through the Workforce Investment Act, would provide us
    with a greatly enhanced ability to help the over 40,000 workers who are
     searching for employment. Nationally, H.R. 444 has the potential for
    providing much needed additional resources for the dislocated workers
     and for our workforce investment system.

    	The country's workforce investment boards stand ready to take
    on the responsibility for this initiative as a part of our roles and
     responsibilities over the workforce investment system. I urge you to
    provide the local boards with the clear authority to package these
    resources in ways that will both benefit the workers they are intended
    to help.  In doing so, it will enable our local boards to focus training
    on the key sectors of our local economy that are in high demand and that
     provide workers with the best jobs and career growth opportunities.

    	I thank you for this opportunity to address you today.

    WRITTEN STATEMENT OF ROBERT BREWER, CHAIRMAN, SOUTHERN NEVADA WORKFORCE
     INVESTMENT BOARD, LAS VEGAS, NV  -  SEE APPENDIX D

    Chairman Boehner  XE "Chairman Boehner"  .  Mr. Brewer, thank you.

    Ms. Lindemenn  XE "Ms. Lindemenn"  .

    STATEMENT OF DEBI LINDEMENN, EMPLOYMENT SPECIALIST SUPERVISOR, NORTH
    LAS VEGAS JOBCONNECT, DEPARTMENT O F EMPLOYMENT, TRAINING AND
    REHABILITATION, LAS VEGAS, NV

    I want to thank the Committee for inviting me to testify today. It's a
     personal honor to be in Mr. Porter's presence because I live in the
     Congressman's district.  I want to state that I did not have an
    opportunity to prepare four or five pages. As a supervisor on the
    front line, I certainly have had the opportunity to see firsthand the
    kind of struggles that these families are going through.  We have a
    changing job market in Las Vegas.

    	My perspective on what is most needed for people to become
    reemployed involves major childcare issues.  In addition, we have
     transportation issues, where we are cutting back on some of the bus
    services.  This leaves a lot of these folks unable to move around to
    find better jobs or even the inability to move into an area within the
    labor market where they would be better able to become reemployed.

    	As stated before, and I agree, training is also a big issue.
    We know that an estimated 15,000 people were laid off as a result of
    September 11th, and although it's stated that visitor figures are up,
    the actual figures show that the city has not really recovered yet.
    With the continuing migration to the Las Vegas labor market we also
    see that the competition for employment remains really high.  When
    people are underemployed, our services are unable to offer a training
    program that would assist them to obtain a better paying wage.

    	The people who make up most of our population are in the
    service industry where their unemployment insurance just covers their
    food, clothing, and shelter.  They don't have the additional money for
     childcare or for the additional training needs, or transportation
    should even something as slight as their vehicle breaks down.

    	Most of these people do not have a lot of reemployment choices.
    Many have returned to work in the hotel industry but have really become
     underemployed.  So, therefore, this has really limited their finances,
    leaving them to use most of what they have personally set aside in
    their savings just so they can maintain a normal lifestyle.

    	I do want to state that the State of Nevada at the present time
    does have a whole complement of services through the One-Stop and the
    WIA partners for the unemployed and that works. 	From what I can
    see as a front-line supervisor, this plan sounds wonderful.  It's a great
     opportunity.  I'm excited to even be on the front lines, but I certainly
    see a need for additional staff in order to handle the case management
    that is going to be needed to individually take care of these people
    that we are most concerned about. And of course, the implementation of
    any new program does take time for the program for work.

    	That's all I have prepared today.  So I just want to say thank
    you so much for the opportunity to be here today and to speak on behalf
    of the public that needs your care and your interest so much.

    WRITTEN STATEMENT OF DEBI LINDEMENN, EMPLOYMENT SPECIALIST SUPERVISOR,
     NORTH LAS VEGAS JOBCONNECT, DEPARTMENT OF EMPLOYMENT, TRAINING AND
     REHABILITATION, LAS VEGAS, NV  -  SEE APPENDIX E

    Chairman Boehner  XE "Chairman Boehner"  .  Ms. Lindemenn, thank you
    for your testimony.  I'm sure we'll have an ample number of questions
    later and you can be very helpful to us.

    Ms. Lindemenn  XE "Ms. Lindemenn"  .  Okay.

    Chairman Boehner  XE "Chairman Boehner"  .  Mr. Galbreth.

    STATEMENT OF ARDELL GALBRETH, DEPUTY BOARD MANAGER AND DIRECTOR OF
     OPERATIONS, SOUTHERN NEVADA WORKFORCE INVESTMENT BOARD, LAS VEGAS, NV

    Thank you, Mr. Chairman.  Thank you all so much on behalf of the
    Southern Nevada Workforce Investment Board.  It is indeed an honor
    for me to have an opportunity to speak before you and, of course, our
     Congressman Porter.  I too live in his district and also we go back a
    little way when he was serving on the civilian military council out at
    Nellis Air Force Base.

    	I would like to give you my point of view regarding the local
    level, particularly how the services impact youth as well as dislocated
     workers. There is a workforce crisis looming in our nation's future if
    we fail to invest in our youth now.  Earmarking proper resources for
    youth employment and training services would realize our investment
    dividends for decades to come.  This is not a guess, but it's supported
     by credible labor market studies. Since 2000 there has been a 12 percent
     increase in youth who are both jobless and out of school, which translates
     into a near 600,000 increase in this particular population. In 2000
    there was an average of 4.9 million youth between the age of 16 and 24
    who were out of school and out of work. During 2001, the stakes got even
     higher.  It increased to 5.2 million. Now, due to our lazy economy, we
     anticipate a steady increase in youth jobless rates to exceed 7 million
     by the end of this year.  In plain view, children in poverty
    neighborhoods and low-income families have it difficult in the extreme.

    	Gentlemen, we need your help, and we need it now.

    	As we work to ensure that no child is left behind, we must
    remember that this challenges us, not only to improve our children's
    overall education posture, but their lifelong credit to society. One of
    the primary reasons that many minorities and children from low-income
    families do not achieve the finer goals and rewarding careers is because
    of the huge youth employment gap which extends well into adulthood. For
     example, according to Northeastern University's Center for Labor Market
     Studies, during 2002, youth joblessness surged to 5.5 million for out-of
    -school youth between the ages of 16 and 24.

    	Now we are all in agreement that education is certainly a high
     priority for our children, but we need to lean forward just a bit for a
    clear view that's beyond the days of school and playground tinkering.
    We need to better prepare our children for success in life. Congress is
    on the verge of cutting over $300 million in youth employment and
    training programs funded by the Workforce Investment Act.  Such funding
    cuts as these stab at the core of low income youth and their hope to
    some day leave the "hood" and enjoy life-quality happiness many of us
    are currently experiencing.

    	I ask you, our elected leaders, to take a look at the picture
    from a perspective that if we don't act now to equip our children with
    the proper skill set to become productive adults, our current social
    security retirement system will be crashing down around us soon by the
    year 2020. I urge you to take a strong stance against youth funding cuts
    and support youth funding services at respectable levels as to ensure
    quality delivery of sorely needed youth employment and training services.

    Please understand that the time and the need are now. Review the
    numbers.  They speak for themselves.  One out of every four African-
    American youths and one out of every five Latino youths between the
    ages of 16 and 24 are out of school, unemployed, and on the streets.
    There is a growing need to raise the visibility of these out-of-school
    youth.  Here in Las Vegas, the fastest growing metropolitan area in the
    nation for over a decade, because the present Administration has zeroed
     funding for youth opportunity grants, the youth in this area and
    throughout the State of Nevada will not be able to tap the benefits
    these grants offer. I have read and have been told that since few youth
    vote, they are not considered in the political formula for elected
    officials.  But I refuse to believe that's the case. I'm confident that
     through people like me, our youth voices will be heard loud and clear,
    that what our congressional leaders need to do is to focus more on
    funding worthwhile programs like job corps centers and youth employment
    opportunity grants that offer our youth a chance in life and not become
    our society's menace.

    	To help ensure and secure our nation's most treasured resource,
     today's youth, I recommend that Congress focus its attention on the
    following three items:

    	One, significantly investing in our youth employment resources
    by increasing formula grants to help make a realistic difference in the
     quality of life for young people.

    	new youth competitive challenge grants are good, but they should
     not be at the expense of states' formula grants to serve those most in
     need.

    	funding appropriation for youth opportunity grants for states
    like Nevada that were not in on the ground level for these funds when
    they were initially awarded.  It is essential that you continue these
    youth opportunity grants for states like Nevada.

    	Two, introduce and work hard to pass legislation to make youth
     councils mandatory with authority to act with its funding stream.

    	Three, the current 30 percent youth funds expenditure requirement
    for out-of-school youth is a good thing as it helped address youth left
    behind in the labor market, but attention must also be paid to ensuring
     adequate funding is available for in-school youth to help prevent them
    from becoming out-of-school youth. Please retain it.

    	Strong funding deposits with implementation of these
    recommendations would secure a solid investment for our nation's future,
    youth who are the leading edge of productivity and our most valued
    workforce.

    	Now, with regards to dislocated workers, of which many have
    been unemployed for over a year, the view looks just as grim.  House
     Resolution 444, introduced by our own Congressman Jon Porter, is a
    step in the right direction without question to get people quickly back
    to work, but the maximum benefit of $3,000 may not go very far for those
     living in some of our depressed areas. In addition to establishing
    personal reemployment accounts, Congress needs to focus its attention
    on increasing the funding for adults and dislocated programs under the
     Workforce Investment Act.

    	Regardless of the amount of supportive services reemployment
    accounts may offer, if jobs are not available, people will not be
    reemployed quickly. Congress is preparing to cut significant funds
    out of the Workforce Investment Act and adult and dislocated worker
    programs. Right now, with our sluggish economy, WIA programs are our
    only hope to offer people opportunity to acquire new skills by
    retraining into demand occupations.  With adequate WIA funding levels,
    along with the new personal reemployment accounts, job seekers will be
    able to effectively tailor their reemployment plans to local area
    industry demands and match their skills with employers' needs for prompt
     reemployment. For example, let's take here in Las Vegas, which was the
     corporate headquarters for the now defunct National Airlines.  Through
     Nevada's JobConnect Connect system, using our National Emergency Grant
    for dislocated workers, we were able to offer training services to
    hundreds of laid off workers to allow them to get the proper training
    and get back to work. In many cases, airline pilots only needed a new
    type rating certification to allow them to sign on with another airline
     company or a corporate aviation agency.  In some cases, pilots even
    increased their annual salary with this new training.

    	The bottom line, gentlemen, of my testimony is that if our
    intent is to return people to work quickly, we need to earmark workforce
     funding levels to allow for adequate training to upgrade the skills of
    these job seekers to match their employment demands.  Our National
    Airlines project is a fine example of how adequate training can get
    people back to work quickly.

    	I recommend that Congress view H.R. 444 as a supplement to the
     Workforce Investment Act and not a one-time reemployment stopgap.  It
    is important that Congress in both Houses work to keep WIA as our
    nation's primary vehicle to deliver effective employment and training
    services to both job seekers and employers by appropriating adequate
    funding to do the
    job right.

    	Gentlemen, once again, thank you so much for allowing me the
     opportunity to address these issues that are facing our particular
    nation.

    WRITTEN STATEMENT OF ARDELL GALBRETH, DEPUTY BOARD MANAGER AND DIRECTOR
    OF OPERATIONS, SOUTHERN NEVADA WORKFORCE INVESTMENT BOARD, LAS VEGAS,
    NV - SEE APPENDIX F

    Chairman Boehner  XE "Chairman Boehner"  .  Mr. Galbreth, thank you
    for your testimony.  I'm sure you've heard the old adage that the
    President proposes and the Congress disposes. The suggestion you
    make about the youth employment opportunity grants and the funding
    streams as well as the WIA funds, in my view, are not under any
    serious threat   XE "Chairman Boehner"  in reduction.  So I wouldn't
    spend a whole lot of time worrying about it, but if I were you, I
    would make sure that Congressman Porter gets up to speed on what
    those issues are and let him watch them for you.

    Mr. Galbreth  XE "Mr. Galbreth"  .  Thank you. That's good to hear
    Chairman Boehner  XE "Chairman Boehner"  .  Let me just thank all the
     witnesses for their testimony.  This is a real opportunity for us to
    talk to people, not only about the reemployment accounts, but also
    about WIA.  As I mentioned before, Congressman McKeon kind of
    inherited WIA, and redid it after I took a sabbatical from the
    Committee and served in the leadership for two years.

    	Back in the 1980s, I realized as a state legislator that we
    had many programs at the federal, state, and local level to assist
    workers who needed training, who were unemployed, who needed education,
    none of which were coordinated in any way, shape, or form. And I remember
     putting a bill together back in the early nineties as a new Member of
     Congress that would collapse these programs into a handful of funding
    streams in order to better coordinate the services and the funding that,
    in my view, is there in order to help these workers.

    	As I mentioned, the result of all of that and Mr. McKeon's work
    became WIA.  We are very big supporters of seeing the One-Stop system
    work effectively.  And as we get into the reauthorization this year,
    it's our intent to work with the governors and the local Workforce
    Investment Board to fine-tune the legislation to see that these
    boards work better and that they be effective. There is no better
    example of how they don't work than in my own home state of Ohio,
    and so I've paid close attention to the problems that we've had.

    	Before I get into WIA, let me talk a little bit about these
    personal reemployment accounts.  All of the states have a profiling
    system as mandated under federal law to take a good profile of who the
     unemployed are, and what their needs are. When Secretary Chao was at our
     Committee last week, one of our colleagues suggested that this profiling
     system isn't as up to speed as it should be. Do you want to tell us a
    little about your system?

    Ms. Florence  XE "Ms. Florence"  .  Thank you, Mr. Chairman.  I'd be
    happy to talk about Nevada's experience and worker profiling.

    	I don't think Nevada is unusual in that many states have
    struggled with the changing characteristics of the unemployed in
    updating their profiling system to consider those characteristics
    in terms of identifying those most likely to exhaust.

    	I believe our system is probably about 25, 30 years old, Debbie?

    Ms. Lindemenn  XE "Ms. Lindemenn"  .  Yes.

    Ms. Florence  XE "Ms. Florence"  .  When the director doesn't know
    anything, defer to staff that know everything.

    Chairman Boehner  XE "Chairman Boehner"  .  Trust me, trust me.
    Members of Congress could never survive without staff.

    Ms. Florence  XE "Ms. Florence"  .  But in talking with other states,
    I think, as I indicated, it's not uncommon.  H.R. 444 does provide up
    to 2 percent to make changes in states' profiling systems and the
    automated support behind that.  I think the difficulty is that any
    time you are dealing with technology, as the Chairman knows, I'm sure,
    there are proposals that you have to go through from any number of
    vendors who all claim they have the latest and greatest profiling
    system.  They all need to be evaluated.  Nevada is very fortunate in
    that we work very closely with local partners and we would want them
    to be part of that process.

    	That's why I suggested the Committee might want to consider
    providing governors with the ability to request waivers if they think
    they have an existing program that can accomplish the same kind of
    objective as H.R. 444. That being said, our overall mutual interest
    is getting people who are unemployed who may likely exhaust back to
    work quickly.

    Chairman Boehner  XE "Chairman Boehner"  .  The reason for the
    question was to get a feel from you of how your profiling system
    works.  Because as we envision these reemployment accounts working,
    the states are going to have to identify those people most likely
    to be helped the most by them.

    	If you take up the maximum grant, we could cover about 1.2
    million workers around the country.  We have about 4 million unemployed.
    So, obviously, there aren't enough funds for all of those who are
    unemployed.

    	And my concern or my question is really focused on do you
    think we have enough profiling information to determine which of the
     unemployed would most likely be helped or could succeed with these.

    	Debbie, you want to comment?

    Ms. Lindemenn  XE "Ms. Lindemenn"  .  There is a plan.  Of course,
    it hasn't been put into effect, and that has a lot to do with budget.
    But the statistical model of how these folks are selected does need
    to be updated.  There are factors that have changed in the last 15
    to 20 years. At present we are looking at how we could update the
    statistical model, but that has been put on the back burner.

    Chairman Boehner  XE "Chairman Boehner"  .  So if we have these new
    accounts, I think we are going to give states the flexibility to help
    develop the parameters around which people they may select, but I'm
    trying to get at how it would work here in Nevada.   XE "Chairman
    Boehner"  How would you envision it working?

    Ms. Lindemenn  XE "Ms. Lindemenn"  .  Well, you know we have changes
    in our industries.  What's needed is a statistical model of how these
    people are selected, so our research and analysis team needs an
    availability of funds to be able to update how those selections are
    made.  And right now I couldn't give you the bare bones of what is
    needed.  But I do know that the statistical model is in an outdated
    section right now.  There is a plan involved, but it's on the back
    burner.

    Chairman Boehner  XE "Chairman Boehner"  .  You made a point of wanting
    us to make it clear as we move this bill, that the local WIA boards
    will run the programs, and there will not be a separate system.  Trust
     me, there aren't three Members of Congress more determined than we are
    to make these One-Stop Centers work and to bring as many of these
    funding streams together and to run them through the local workforce
     investment boards. I appreciate your suggestions, and we will certainly
    take that into account and try to make it clear when we move the
    legislation that we expect it to be operated through the One-Stops.

    	Mr. Brewer, let me ask you about how the One-Stops are working
    here and the relationship between the boards, the private sector members,
     and the public sector.   XE "Chairman Boehner"  I won't refer to the
     bureaucrats or anything like that.  Mr. Brewer  XE "Mr. Brewer".
    I'll be happy to respond.  You threw a number of issues out there,
    and I'll try to answer them in order.

    	Starting first with the relationship of the board and the
    One-Stop operation itself, we feel we have a very strong local
    relationship with the One-Stop operation.  The board in its role
    provides the general policy and guidance, and we have what we feel
    are good administrators that are working in that system to really
    operate it according to its intent, which is to provide benefit to
    both local employers and folks that are seeking employment.

    	Now, could it be more efficient?  Yes, it could.
    Chairman Boehner  XE "Chairman Boehner"  .  How would we achieve that?

    Mr. Brewer  XE "Mr. Brewer"  .  This efficiency would come from some
    of the things that Myla has already brought up in her presentation,
    and we probably talked around this morning.  There really needs to
    be a serious look at the partners as they operate and are involved
    in the One-Stop Centers.  They come willing, but a lot of times they
    come with restricted finances in terms of the way that they can use
    the monies that are provided for their individual agencies. A room
    full of people with good intent without the proper funding leads to
    a level of efficiency and effectiveness sometimes that is less than
    desired.  And that's our current situation.

    	We have a lot of good people working very, very hard.  There
    are a lot of different people with a lot of experience, and many of
    the people are doing a good job.  But sooner or later, the funds get
    short, and you have to make some decisions that you wouldn't otherwise
     make because of the funding.  So that really needs to be looked at.

    Chairman Boehner  XE "Chairman Boehner"  .  Now, would these be agencies
     funded by the federal government out of different pots of funds?

    Mr. Brewer  XE "Mr. Brewer"  .  Yes, they're funded by the federal
    government from different pots, and they are obligated by the WIA
    Act to be part of the One-Stop. But there is no requirement or
    obligation to appropriate part of the funds to support your part of
    the partnership.

    Chairman Boehner  XE "Chairman Boehner"  .  We have seen collaboration
    work in wonderful ways in some areas.  I was in Dayton, Ohio, part of
    which is now in my district. Dayton has a model One-Stop that was really
    a creative waiver over ten years ago. It was incredible to see the
    cooperation and the collaboration all focused on the customer, not only
    the unemployed, but those who need more training and more education to
    improve their job skills not only maintain their current employment,
    but to try to advance up the economic ladder towards a better job.

    	I have been asking myself how can we encourage more collaboration?
    I have 11 brothers and sisters, and our parents would come home saying,
    "You all are going to get along."  I don't know how we write a law that
    says that.

    Mr. Brewer  XE "Mr. Brewer"  .  I don't know how you write a law to do
    that either.  We have a strong corroborative effort here that you'll see
    as you go through the One-Stop.

    	I think folks come to the table knowing that they have
    restrictions, and that gets us back to things that are even outside
    of the Committee.  But you have to revisit how you are going to fund
    these types of operations over the long haul.  I don't know how we get
    there.  We have to talk about it.

    Chairman Boehner  XE "Chairman Boehner"  .  Please send Mr. McKeon, Mr.
    Porter and I a memo in which you outline some of this in more detail.

    Ms. Florence  XE "Ms. Florence"  .  There are two issues here.  First,
    I want to compliment Chairman McKeon for the vision of WIA, and I really
     believe that in Nevada we are known as one system, or one brand. Over
    time I think people will recognize Nevada JobConnect as the place for
    business and workforce services unlike other states where there may be
     20 or 30 different names of partners within the system.

    	With regard to funding, I hate the term "mandatory partners."
    I'm sorry, Mr. Chairman.  It's just an oxymoron in my mind.  But if a
    portion of the federal agencies funding a mandatory partner were put
    into the infrastructure of the system, then you'd have stronger
    collaboration, in my mind.

    	And, secondly, with regard to the workforce boards, as I
    mentioned, they are far too large. I notice the Administration now
    has a proposal to restructure the state boards to include the partners
    of the system, meaning bureaucrats, with a business leader.  In my mind,
    that is taking five steps backwards.

    	Our state board is business driven.  A business member of that
    board leads every subcommittee.  It includes the business members of
    local boards on the various subcommittees. We are moving in the right
     direction here under business leadership.  My staff and I merely lend
    support to those activities.  We don't drive them.  We don't attempt to
    drive them.

    Chairman Boehner  XE "Chairman Boehner"  .  You're one of the few states
    where that would happen.

    Ms. Florence  XE "Ms. Florence"  .  I think that's the way it ought to
    happen.

    Mr. Brewer  XE "Mr. Brewer"  .  That's right.

    Ms. Florence  XE "Ms. Florence"  .  We have a marketing committee that
    is led by business people with a marketing strategy.  We have a committee
    on employment of persons with disabilities that, again, is led with
    business members.  A committee on finance, budgeting, the staff isn't
    making budgeting determinations, our business led members are.  And that
    has to happen at both the state and local level.

    	Thank you.

    Chairman Boehner  XE "Chairman Boehner"  .  I couldn't agree with you
    more.

    Mr. McKeon  XE "Mr. McKeon"  .

    Mr. McKeon  XE "Mr. McKeon"  .  Thank you, Mr. Chairman.

    	The reason we left the room is that "Chairman" Porter received a
     message that the Cannon House Office Building had been evacuated.  So he
    and I made a call and found out that it wasn't a terrorist.  It was a
    leak, and that set off the alarm, so they evacuated.  But it gets touchy
    when these kinds of things happen.  With instant communication, it works.
    Mr. Porter  XE "Mr. Porter"  .  Unless they forget to update their
    recording, but otherwise the message worked.

    Mr. McKeon  XE "Mr. McKeon"  .  Anyway, I missed some of the questions.
    Mr. Brewer had said he was a little nervous, he hadn't done this before,
    but I want to commend you. Your testimony was excellent.

    Mr. Brewer  XE "Mr. Brewer"  .  Thank you.

    Mr. McKeon  XE "Mr. McKeon"  .  And I don't say that just because you're
     wearing cowboy boots. Before I got involved in politics, I was in the
    western wear industry.  And when I got in Congress, I started a boot
    caucus.  I really like people who wear boots.  And I always check that
    out.

    	We will really look at your testimony.  All of you have been
    very, very helpful. I wish all my hearings could be like this.  You know,
    when we're in Washington, we are up there on a pedestal, and the
    Chairman has a big chair, and we're looking down at people.  I think
    that is really intimidating.  We have a lot more Members present and all
    want to ask many questions, and if you have cameras in the room, it
    really gets exciting, but here it's more intimate.

    Chairman Boehner  XE "Chairman Boehner"  .  That's just an invitation
    for Members to talk longer.

    Mr. McKeon  XE "Mr. McKeon"  .  This forum is really where we can learn
    what is going on.  I appreciate your testimony and the opportunity to
    be here.

    	Thank you for giving me the credit for writing this bill, which
     includes the One-Stops, but as the Chairman mentioned, he was involved
    in it, and prior to his tenure the former Chairman, Mr. Goodling was
    involved.  When we won the majority and I became Chairman of the
    Subcommittee on 21st Century Competitiveness, it was handed over to me.
    So there had been a lot of work done before, and I was able to finish
    it up and get it passed.

    	The objective was to take 160 federal job-training programs and
     combine them into four, and give the power to the local communities
    where "the rubber meets the road" and to really get things done.  We
    weren't successful in that.  We got a lot of "flack" and we had to
    regroup and go back to the next Congress.  We cut 50 federal job-training
     programs down to the three local block grants. But every five years
    it's very good that we have a chance to look at it and say, "Where are
    we going?  What can we do better"?  I'm happy we are going to be able to
    take a tour and see the programs that you have here.

    	But when we all get together in Washington, we have a vision of
    what we'd like to see, and then write a bill.  Then it goes through the
     process of amendments and so forth, and we finally get it passed in the
    House, and perhaps the Senate passes something similar.  And then we get
     together and try to work out a compromise, achieve that end, send it to
    the President, and he signs it.

    	Then the bill goes to the departments that write the regulations,
    and somewhere down the line, a bill that finally gets to the point to
    where you can do something with it.  And it takes a few years from the
    time those regulations are all written to setting up the One-Stops.  And
    as soon as that's done, we say, "Whoa, we're going to reauthorize and
    going to change everything."  We just got started!

    	So let me tell you one thing, we are not going to throw out WIA
    and start over from scratch.  We're just going to try to improve on what
    is out there, and you are not going to have to say, "Wait a minute.
    JTPA is gone, and now WIA is gone, and we're going to start over again."
     That's not going to happen.

    	You have given us some very good recommendations that we can
    look at.  I think the Personal Reemployment Act, acts as a supplement.
    This will help stimulate people that are hard to employ and give some
    of them a little extra help. The 15-and-a-half-weeks of benefits, as
    you said, total up to about $3,600, and this is an additional $3,000.
    That provides quite an impact for help, and it should be something that
    is really positive.

    	We had a hearing in Washington.  We got beat up a lot. You know,
    "How come you're not doing this and this and this?"  And I thought, "Why
    don't we concentrate on what we are doing and get it done and get it to
    where the people really need it, then we'll focus on some of these other
     things." But I couldn't believe we were getting beat up when you provide
    $3.6 billion to help people.  Why don't we just come together and focus,
    and get it done. Then if more is needed, get it, because you made good
    points about needing additional monies.

    	Does the memo that you are going to send us tell how the One-Stop
    is funded now?

    Mr. Brewer  XE "Mr. Brewer"  .  We have an understanding with the board
    and a collaborative agreement with all of the partners, and each one of
    the partners brings, "an appropriate amount of funding".

    Mr. McKeon  XE "Mr. McKeon"  .  If you have one partner bringing 20
    percent and another partner bringing 2 percent, and they say, "Well,
    we can't bring 20 percent because we're using our money somewhere
    else on some other things, and although we want to help we really
    don't have the resources."

    Mr. Brewer  XE "Mr. Brewer"  .  Right that's where the collaborative
    effort comes in.  Yes, their situations might differ, but the partners
     just work it out among themselves.

    Mr. McKeon  XE "Mr. McKeon"  .  I come from a family of five kids,
    and we were all in business together, and I understand.  We all paid
    ourselves the same amount of money.  And you'd always look over and
    think that one brother was not working as hard as the other.  So I
    understand how that works, but if you could address some specifics in
    that memo, I think that would be very helpful to us  XE "Mr. McKeon"
    as we go through this WIA reauthorization.  I made a lot of notes on
    your statements, and when we get back we'll really look into this.

    	I hope you will stay in close communication with us as we go
    through the WIA reauthorization.

    Mr. Brewer  XE "Mr. Brewer"  .  It would be my pleasure.

    Mr. McKeon  XE "Mr. McKeon"  .  That would be great.

    	As Florence mentioned, there is a difference between Nevada and
     California.  You have the real advantage here of a few million people
    versus 30 million people.  California is like a country unto itself.
    We have full-time legislators that really want to justify what they do,
     so they pass lots of laws, and everything gets complicated for
    everybody.

    	Our goal is to get as much authority down to the local area as
    we can, whether it be workforce investment or H.R. 1 or whatever; we're
     working on that.  That's our goal in this Committee, because we don't
    think that all wisdom and all abilities to handle all problems reside in
     Washington.  But the resources all come from you anyway when we take out
    a portion, in some cases a bigger portion than others, and then give it
    back that way.

    	One of the problems if you came into the system late is you're
    are not getting your fair share.  In California, the same thing.  We
    send about 12 percent of the resources and get back about 10.  That's
    billions of dollars every year.  Is there any press in the room?

    Chairman Boehner  XE "Chairman Boehner"  .  Probably.

    Mr. McKeon  XE "Mr. McKeon"  .  I'm a Westerner, so my solution was to
    take the Northeast and add it to Canada and I think that's the only time
    I said that in public.

    Chairman Boehner  XE "Chairman Boehner"  .  The Northwest would have to
    say something about California.

    Mr. McKeon  XE "Mr. McKeon"  .  They sure would.  But when you start
    talking about money, all of this is really decided in the other body.
     California has 36 million people, 53 Congressmen, and two Senators.
    Delaware has 600,000 people, one Congressman, and two Senators.  So in
     Connecticut, Massachusetts, Rhode Island, and New Hampshire, the
    funding for a lot of these programs is very hard to even out when people
    are leaving those areas and coming to Nevada, California, Arizona, and
    Texas.  I'm just moaning about that because that's a problem that we
    deal with and feel the effects of.

    Mr. Galbreth  XE "Mr. Galbreth"  .  Definitely.

    Chairman Boehner  XE "Chairman Boehner"  .  It is an institutional
    problem.

    Mr. McKeon  XE "Mr. McKeon"  , we had language in the welfare
    reauthorization bill last week that would require TANF to work
    through WIA with regard to employment, training, et cetera.  Would
    you care to discuss that?

    Mr. McKeon  XE "Mr. McKeon"  .  Every time somebody loses a job or
    wants to improve their marketability, our vision is to see everything
    go through the One-Stop.  But everybody builds his or her own little
    kingdom, and it's hard to pull everything together.

    	But that is our ultimate vision.  We don't have total
    jurisdiction.  The welfare reform bill went through five different
    Committees and we had a big part of it, and Ways and Means had a big
    part of it. But we have some limited jurisdiction in this because all
    of it doesn't go through our Committee. If we did, our goal would be
    to have everything would go through that One-Stop.

    Chairman Boehner  XE "Chairman Boehner"  .  One of the reasons we had a
     proliferation of job training and retraining programs is because each
     Committee had its own programs based on its issues. For example, the
    Ways and Means Committee deals with trade issues, and therefore you
    have the Trade Adjustment Act that we don't have jurisdiction over.

    	We'd still like to collapse all of these various programs if we
    could get some fellow Committees to cooperative a little bit more.
    Because I think One-Stops as people get more used to them are going to
    attract more partners. And what I mean by that is that most of our
    colleagues now understand the One-Stops are here, and the creation their
    own new programs is going to be met with great resistance, not only in
     Congress but by the Administration.

    	So, as we get into it this year, I don't know how much progress
    we'll be able to make in terms of more programs being collapsed into
    those funding streams, but speaking both for Buck and myself that would
     certainly be our goal.

    Mr. Porter  XE "Mr. Porter"  .

    Mr. Porter  XE "Mr. Porter"  .  I have a couple of comments.

    	First, I think Myla's cooperation in our business community with
     workforces is a real plus for Nevada.  We have a real tight group of
    folks that are working together, unlike some of the larger areas.  I
    think we should be commended here in Nevada for that, and thank you for
    your leadership.

    	We talked about terminology a little bit ago.  I'd sure like to
    see the word "profile" eliminated from our vocabulary also.  I learned
    long ago, and I sensed at our first hearing that with political
    adversaries it isn't about what's best for the communities, but what is
    best for the party.  So I anticipate they're going to be using this word
     "profiling" in a negative sense when they speak about the reemployment
    bill.  So we, as an institution, need to find a new word instead of
     "profiling".

    	Debi, thank you for your comments, and I know I missed part of
    the discussion when I was out in the hallway.  You're on the front line
    every day, and you see the folks that have challenges.  Hopefully when
    this passes and the administrative "regs" are taken care of, are there
    some areas that we can address to simplify it, to make it easy for you
    to make it easy for your customers?  What information should we send to
     our staff? Are there some areas that come to mind?  I know you mentioned
     transportation and childcare.  Can you be more specific?

    Ms. Lindemenn  XE "Ms. Lindemenn"  .  One of things we had talked about
    while you were out in the hallway was determining the statistical model
    or updating our statistical model to select folks. There are times when
     we get numerous people in the office that really have no need for our
     service, I think Myla can agree, and with some of our outdated
    statistical modeling we leave out the people that have the need.  And
    this becomes a challenge because we all know that negative comments
    about services can change people's views.

    Mr. Porter  XE "Mr. Porter"  .  I understand and well said, that from a
     logistics delivery perspective proper statistics make sure the proper
     information is disseminated. But what about making sure a person gets
    a check when they need it, and fast?  What can we do to make sure that
    there's simple, fast delivery to these families?

    Ms. Lindemenn  XE "Ms. Lindemenn"  .  In the State of Nevada, I can
    honestly tell you that with the many people that are moving into our
    state from the East to the West, we have a staffing issue.  Over the
    past twelve years I have seen that happen continually.  More and more
    folks move in, but staff doesn't increase, thus causing some delays.

    	I think rules and regulations are in place and certainly
    governed, but without the manpower to take care of those rules and
     regulations, the persons out there waiting for the check are kept
    waiting.

    Mr. Porter  XE "Mr. Porter"  .  I think it's important to mention that
    my wife did a radio program this morning and many folks who were
    listening were not very excited about the 15-and-
    a-half week extension program. I think it's important to emphasize
    that we save $8.4 million by literally one week, that's substantial.
    I didn't know the number when I decided to support and be a part of
    this, but that figure is compelling.  It also means that this single
    mom has a job sooner, she gets to work some, but saves something for
    the system.  That is a very compelling argument, especially for our
    colleagues in Washington.  I can imagine what that would mean nationwide
    if we could save one week for these families.

    Ms. Florence  XE "Ms. Florence"  .  It would be substantial.

    Mr. Porter  XE "Mr. Porter"  .  My last comment is, as we talked about
    our friends in the Northeast and on the East Coast, we are under funded
    in our education system because the East controls the spending, but as
    their population moves west, they keep their education dollars. But on a
     lighter note, today the headline in the paper said a Member wants to
    rename Nevada, East California.  If I were there, I would vote no,
    absolutely!

    	Thank you all very much for your input.

    Chairman Boehner  XE "Chairman Boehner"  .  Let me just comment on Mr.
     Porter's last comment about the education funding.
    We, as one of the authors of No Child Left Behind worked diligently
    to try to ensure that all of the new money since the passage of the
    bill would, in fact, be directed at high poverty areas.  There's no
    question that over the last 15 years we held states harmless.  In other
    words, they couldn't lose their funds regardless of what happened to
    their population, especially amongst those disadvantaged in their
    states. And so all of the new money is much more targeted toward high
    poverty areas.  And as a result, we are beginning to see a pretty
    significant shift of where those federal education dollars are going,
    which certainly pleases me.

    	With that, let me thank our witnesses for your testimony.  I'm
    sure that Mr. Porter, or his staff and my staff will likely be back in
    touch with you to flush out some of the ideas that you've presented.
    But we really do appreciate your testimony.  It's been very helpful.

    	And I want to thank those of you in the audience who took the
    time to come and participate with us today as well.

    	With that, the hearing is adjourned.

    Whereupon, at 10:55 a.m., the Committee was adjourned.

    APPENDIX A - WRITTEN OPENING STATEMENT OF CHAIRMAN JOHN BOEHNER,
    COMMITTEE ON EDUCATION AND THE WORKFORCE

    APPENDIX B - WRITTEN STATEMENT OF CONGRESSMAN JON PORTER,
    COMMITTEE ON EDUCATION AND THE WORKFORCE

    APPENDIX C - WRITTEN STATEMENT OF MYLA FLORENCE, DIRECTOR, NEVADA
    DEPARTMENT OF EMPLOYMENT, TRAINING AND REHABILITATION, CARSON CITY, NV

    APPENDIX D - WRITTEN STATEMENT OF ROBERT BREWER, CHAIRMAN, SOUTHERN
    NEVADA WORKFORCE INVESTMENT BOARD, LAS VEGAS, NV

    APPENDIX E - WRITTEN STATEMENT OF DEBI LINDEMENN, EMPLOYMENT SPECIALIST
     SUPERVISOR, NORTH LAS VEGAS JOBCONNECT, DEPARTMENT OF EMPLOYMENT,
    TRAINING AND REHABILITATION, LAS VEGAS, NV

    APPENDIX F - WRITTEN STATEMENT OF ARDELL GALBRETH, DEPUTY BOARD
    MANAGER AND DIRECTOR OF OPERATIONS, SOUTHERN NEVADA WORKFORCE
    INVESTMENT BOARD, LAS VEGAS, NV

    Table of Indexes

    Chairman Boehner, 1, 4, 5, 9, 12, 14, 17, 18, 19, 20, 21, 22, 23,
    24, 26
    Mr. Brewer, 9, 19, 20, 21, 23
    Mr. Galbreth, 17, 24
    Mr. McKeon, 5, 21, 22, 23, 24
    Mr. Porter, 4, 21, 25, 26
    Ms. Florence, 6, 17, 18, 20, 21, 26
    Ms. Lindemenn, 12, 14, 18, 19, 25