[Joint House and Senate Hearing, 113 Congress]
[From the U.S. Government Publishing Office]
S. Hrg. 113-86
BUILDING JOB OPPORTUNITIES FOR VETERANS
=======================================================================
HEARING
before the
JOINT ECONOMIC COMMITTEE
CONGRESS OF THE UNITED STATES
ONE HUNDRED THIRTEENTH CONGRESS
FIRST SESSION
__________
JULY 10, 2013
__________
Printed for the use of the Joint Economic Committee
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JOINT ECONOMIC COMMITTEE
[Created pursuant to Sec. 5(a) of Public Law 304, 79th Congress]
HOUSE OF REPRESENTATIVES SENATE
Kevin Brady, Texas, Chairman Amy Klobuchar, Minnesota, Vice
John Campbell, California Chair
Sean P. Duffy, Wisconsin Robert P. Casey, Jr., Pennsylvania
Justin Amash, Michigan Mark R. Warner, Virginia
Erik Paulsen, Minnesota Bernard Sanders, Vermont
Richard L. Hanna, New York Christopher Murphy, Connecticut
Carolyn B. Maloney, New York Martin Heinrich, New Mexico
Loretta Sanchez, California Dan Coats, Indiana
Elijah E. Cummings, Maryland Mike Lee, Utah
John Delaney, Maryland Roger F. Wicker, Mississippi
Pat Toomey, Pennsylvania
Robert P. O'Quinn, Executive Director
Niles Godes, Democratic Staff Director
C O N T E N T S
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Opening Statements of Members
Hon. Amy Klobuchar, Vice Chair, a U.S. Senator from Minnesota.... 1
Hon. Erik Paulsen, a U.S. Representative from Minnesota.......... 3
Witnesses
Mr. Ryan M. Gallucci, Deputy Director of National Legislative
Service, Veterans of Foreign Wars, Washington, DC.............. 5
Mr. Kyle Mitchell, Deputy Executive Director, Texas Veterans
Commission, Austin, TX......................................... 7
Mr. Shawn Deabay, Director of Veterans Employment Services, Texas
Veterans Commission, Austin, TX................................ 9
Mr. Benjamin G.S. Fowke III, Chairman of the Board, President and
CEO, Xcel Energy, Minneapolis, MN.............................. 11
Submissions for the Record
Prepared statement of Chairman Brady............................. 26
Prepared statement of Mr. Ryan M. Gallucci....................... 26
Prepared statement of Mr. Kyle Mitchell.......................... 29
Prepared statement of Mr. Shawn Deabay........................... 33
Prepared statement of Mr. Mr. Benjamin G.S. Fowke III............ 37
Question for the Record from Senator Pat Toomey to Mr. Deabay,
Mr. Mitchell, and Mr. Gallucci................................. 39
Response to Question for the Record from Mr. Ryan Gallucci,
Veterans of Foreign Wars....................................... 39
Response to Question for the Record from Texas Veterans
Commission..................................................... 40
Report titled ``Building Job Opportunities for Returning
Veterans'' submitted by Vice Chair Klobuchar................... 42
BUILDING JOB OPPORTUNITIES FOR VETERANS
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WEDNESDAY, JULY 10, 2013
Congress of the United States,
Joint Economic Committee,
Washington, DC.
The committee met, pursuant to call, at 10:02 a.m. in Room
216 of the Hart Senate Office Building, the Honorable Amy
Klobuchar, Vice Chair, presiding.
Representatives present: Paulsen, Amash, Maloney, and
Delaney.
Senators present: Klobuchar, Murphy, and Wicker.
Staff present: Doug Branch, Gail Cohen, Connie Foster,
Colleen Healy, Patrick Miller, and Robert O'Quinn.
OPENING STATEMENT OF HON. AMY KLOBUCHAR, VICE CHAIR, A U.S.
SENATOR FROM MINNESOTA
Vice Chair Klobuchar. Okay, the hearing is called to order.
I want to thank everyone for being here this morning for this
important conversation on the employment situation for
Veterans.
We are going to be looking at the contributions that
veterans make to the economy. We did a report on this with the
Joint Economic Committee showing the challenges that recent
veterans are facing when they come home. There is some good
news. There have been some improvements, but as our witnesses
know, there are still challenges and work that needs to be
done.
I would like to introduce today's distinguished witnesses:
Mr. Ryan Gallucci is the Deputy Director of the National
Legislative Service for the Veterans of Foreign Wars. At the
VFW his focus is on helping transitioning service members and
veterans pursue higher education and viable career paths
following their military service. He served eight years in the
U.S. Army Reserve, and was awarded the Meritorious Bronze Star
Medal and the Combat Action Badge for his actions while
deployed in Iraq.
Mr. Kyle Mitchell is the Deputy Executive Director for the
Texas Veterans Commission, the state-appointed advocate of
Texas veterans. He has held this position since 2010. Prior to
that, he served as an advisor to Governor Rick Perry.
Mr. Shawn Deabay is the Director of Veterans Employment
Services at the Texas Veterans Commission. He has worked in the
Veterans Employment Services Program for 13 years, and directed
it since 2011.
You may wonder why we have two Texans, with two Minnesotans
chairing the hearing.
[Laughter.]
It is just a coincidence, but actually Congressman Brady I
know would love to be here but is chairing another hearing as
Congressman Paulsen will explain. But we welcome you.
And then finally, Mr. Benjamin Fowke is the Chairman of the
Board, President, and CEO of Xcel Energy, a major electricity
and natural gas company with operations in eight Western and
Midwestern States. Headquartered in Minneapolis, Xcel has more
than 5 million electric and natural gas customers. He serves on
the board of directors of several organizations, including the
Minnesota Business Partnership. They have an excellent record
with veterans that we will hear about today, and I think it is
an example of the kind of work we are seeing from employers all
across the country.
As I mentioned, we did a report in preparation for today's
hearing. The encouraging news. First, the employment situation
for veterans has improved, and the overall veterans'
unemployment rate of 7 percent was below the national rate of
8.1 percent in 2012. In my home state, the veterans'
unemployment rate is at 6.8 percent, just below the national
average.
In addition, the unemployment rate for veterans who served
in the post-9/11 era declined by more than 2 percentage points,
which is a major decline in 2012; but as we all know, it was
way too high to begin with. So it went from 12.1 percent to 9.9
percent, a larger drop than for both the non-veteran and total
veteran population.
But there is still more work to be done. Post-9/11 veterans
still face an unemployment rate that is nearly 3 percentage
points higher than the total veteran population, and 2
percentage points higher than non-veterans.
When we look at employment industry by industry, it is
clear that the recession had a larger impact on many industries
that employ a high share of veterans. And as we also know, a
number of them were serving overseas when the downturn hit;
their jobs disappeared, and it was much harder for them when
they came back in terms of getting the job that was no longer
there, or looking for a new one.
Industries in which veterans often find work, such as
manufacturing and construction, were among the hardest hit
during the recession. At the same time, recent veterans are
under-represented in the faster growing sectors of the economy,
including leisure and hospitality, and education and health
services.
For these recent veterans, unemployment may be due to
challenges in translating their military experience into
civilian work, or not having the correct skills for the
available civilian jobs. Or, as I mentioned, the fact that they
were serving when we saw the downturn.
Now what do we do?
In response we have taken a number of steps to help improve
employment prospects for returning veterans. The Post-9/11 GI
Bill offers tuition benefits for veterans who served in the
Post-9/11 era. Over 900,000 veterans and their family members
have benefitted from this landmark legislation, and we hope
that it had something to do with the fact that we are now
seeing these improving numbers. We knew that that would take a
few years to be able to show through.
In 2011, we passed the VOW to Hire Heroes Act, a bill that
I co-sponsored. That legislation amended the Work Opportunity
Tax Credit and increased the tax credit for employers that hire
unemployed veterans. Now employers can get up to a $9,600 tax
credit for hiring veterans. It also expanded the Transition
Assistance Program to help prepare service members to enter the
civilian workforce.
Many skills learned in the military are useful in meeting
civilian job requirements, but oftentimes, as I've heard from
employers, when veterans talk about their work they might use
acronyms or letters or numbers and really are not able to
explain the high level of responsibility and the work ethic
that they actually brought with them from the military. And so
I know that a lot of companies and groups in the veterans area
have been working with our veterans on that issue.
Another thing that we can do, that we continue to work on,
is the skills that they get there. I use the example of
paramedic skills where we have a shortage of paramedics in
rural areas. Our veterans get those skills over there, but they
come back and they have to start all over again in a program to
learn to be a paramedic.
Now they obviously need to get some kind of degree, if they
don't have it yet, but we would like to see them get more
credit for the actual work that they did in the Service so that
they are able to apply that to the education that they will
need to get when they come back. That shortens the time period,
and also shortens the time period that they may be away from
their families.
Manufacturing. Just to give a sense, in the State that
Representative Paulsen and I represent, in 2010 40 percent of
our manufacturers said they had job openings for which they
couldn't find skilled workers. Now in 2012, it was up to 60
percent. Clearly there are openings there. Oftentimes they may
require a one- or two-year degree, or even more, given the
complexity of some of our manufacturing now, but that is
another area.
I am so proud of our employers in Minnesota. They
actually--we have a high percentage of Guard and Reserve
members. Our employers got together and actually went to Kuwait
when our troops were returning home from Iraq, and this group
of Minnesotan National Guard were actually helping in that
transition, and actually went and interviewed and worked with
them when they were in Kuwait. Major companies went over there
to work with our veterans.
That is the kind of pitching in that we need to see as we
transition out of these wars and we bring our troops home, and
we see some cuts to the military budget. We know we're going to
have a number of former Service members that are home and need
jobs.
With that, I am happy to turn it over to my colleague from
Minnesota, Representative Paulsen.
OPENING STATEMENT OF HON. ERIK PAULSEN, A U.S. REPRESENTATIVE
FROM MINNESOTA
Representative Paulsen. Well I would like to thank Vice
Chair Klobuchar for choosing the topic of today's hearing,
``Building Opportunities for Veterans.''
Chairman Brady is occupied with another subcommittee
hearing over in the House on the Ways and Means Committee.
Every single member of this Committee honors the men and
women who have served in our Nation's Armed Forces. Since the
enactment of the Servicemen's Readjustment Act of 1944, which
was popularly known as the ``GI Bill,'' Congress has pledged to
help veterans pursue their ideal of the American Dream.
Congress remains committed to helping veterans make a
successful transition to civilian life, caring for the wounded,
and assisting the disabled and their families.
Today's hearing focuses on a key portion of that
commitment: Helping veterans find jobs. There are numerous
federal and state programs that are designed to help veterans
secure a college education and training, take advantage of what
skills they learned in the Armed Forces, and then find gainful
employment in the private sector.
Broadly speaking, employment trends among recent veterans
follow employment trends among the entire working-age
population. Indeed, the 12-month moving average for
unemployment rate for all veterans of 6.7 percent is slightly
lower than the overall unemployment rate of 7.6 percent in
June. Therefore, the general condition of our economy affects
the level of employment among veterans as much, if not more,
than specific programs designed to help veterans find jobs.
The Growth Gap--which is the difference between the
economic performance in the current recovery and an average
recovery since World War II--is hurting employment prospects of
both veterans and non-veterans.
This recovery, which is four years old this month, is the
weakest in seven decades. Consequently, the United States has
$1.2 trillion less today in real GDP and 3.9 million fewer
private sector jobs than the United States would have had in an
average post-war recovery.
In terms of real disposable income per capita, this anemic
recovery has generated about $2,800 less in income after
inflation and taxes for every American than an average post-
1960 recovery would have generated.
And why are we suffering from a Growth Gap? Business
investment in new buildings, and equipment, and software drives
private-sector job creation. Compared with previous recoveries,
real business investment has been weak. After five-and-one-
quarter years, it still remains at 3.9 percent below its pre-
recession peak.
A lack of liquidity and high interest rates are not
restraining business investment. Commercial banks have over $2
trillion in excess reserves sitting at the Fed that could be
lent to America's entrepreneurs.
America's non-financial corporations have another $1.5
trillion in cash sitting on the sidelines. And interest rates
do remain at historic lows. The Federal Reserve has done all
that it can through monetary policy to help this recovery--
which we've had some discussion in this Committee about.
Local businesses continue to tell us over and over again
that Washington's tax, and regulation, and deficit policies
which the President continues to pursue have also generated
uncertainty that is deterring America's entrepreneurs from
making the investments that would create millions of good jobs
for veterans and non-veterans alike.
It was Nobel Laureate Albert Einstein who defined insanity
as ``doing the same thing over and over again and expecting
different results.'' Four years after an anemic recovery has
begun, it is clear that the current mix of economic policies is
not working and we can do better.
And what can be done to reduce and close the Growth Gap and
ensure that the 21st Century is another American Century? The
bottom line is you must get our act together in Congress
bipartisanly in three major areas of economic policy:
One, we need to reduce federal spending and federal debt as
a percentage of our Gross Domestic Product. We need to continue
to pursue growth, pro-growth tax and fiscal policies for a
healthier economy to give businesses the incentive and
confidence to invest in companies, equipment, and people.
We need to overhaul the federal regulatory process to
ensure necessary regulations are balanced and cost-effective.
And then we need to return to a more predictable rules-
based monetary policy that will maintain purchasing power of
the United States dollar over time.
Those basic changes will spur the U.S. economy and help our
veterans find gainful employment. And to that end, earlier this
year I partnered with the Army to host a job fair in Minnesota.
And as Senator Klobuchar well knows, and mentioned, the
Minnesota National Guard has been implementing new programs
with a great rate of success, putting a focus on getting our
veterans back to work.
I am also proud of our Minnesota employers like Xcel, who
is testifying here today. They do represent why Minnesota is a
leader when it comes to taking care of our veterans, including
hiring initiatives.
I also want to thank all the witnesses for being here
today, and I look forward to hearing your testimony.
[The prepared statement of Representative Brady appears in
the Submissions for the Record on page 26.]
Vice Chair Klobuchar. Very good. Thank you, very much.
Mr. Gallucci, why don't you begin?
STATEMENT OF MR. RYAN M. GALLUCCI, DEPUTY DIRECTOR OF NATIONAL
LEGISLATIVE SERVICE, VETERANS OF FOREIGN WARS, WASHINGTON, DC
Mr. Gallucci. Thank you, Vice Chair Klobuchar.
On behalf of the VFW, the Nation's largest and oldest
organization of combat veterans, I want to thank you for the
opportunity to present our perspective on the current
employment situation for veterans.
As the current conflicts draw down and the military plans
to shrink the Active Duty Force, the Department of Labor
anticipates that more than 1 million veterans will enter the
workforce in the next few years.
The most recent data from the Bureau of Labor Statistics
indicates that veteran unemployment is trending downward, and
that total veteran unemployment remains lower than the national
average. Unfortunately, this glimpse into the employment
situation of veterans only tells part of the story.
While the VFW applauds the last Congress for addressing
persistent veterans' unemployment through policies like the VOW
to Hire Heroes Act, unemployment among young veterans and women
veterans still far outpaces civilian unemployment.
For the VFW's full concerns and recommendations, I refer
the Committee to my prepared remarks. For the balance of my
time, I would like to focus on three specific issues:
Military Transition Assistance;
Professional Licensing and Credentialing; and
Educational Opportunities.
First with regard to military transition assistance, or
TAP, the VFW has long held that TAP [Transition Assistance
Program] is critical to ensuring service members have a quality
baseline of information from which to make informed decisions
about future career opportunities when leaving the service.
For years the VFW called on VA, DoD, and Labor to revise
the TAP curriculum, and we are proud to see that the recently
mandated redesign is nearly complete.
While testifying on this issue, we have acknowledged that
the TAP redesign is a drastic improvement, but we believe that
more can be done to ensure that service members are adequately
prepared for the difficult transition into the civilian
marketplace.
The VFW is concerned that service members will not be
required to participate in individualized TAP tracks, but
rather satisfy career-readiness standards on their own time.
The VFW believes that the track's curricula were covered by the
recent TAP participation mandate, and we encourage DoD to
deliver this training appropriately.
The VFW has long said that service members on Active Duty
cannot reasonably anticipate all of the challenges that they
may face once they've transitioned into civilian life, which is
why we encourage each agency to make its curriculum readily
available to veterans once they leave Active Duty.
We also encourage community organizations to step up and
help fill the gaps where necessary. For example, VFW Post 661
in Salem, Oregon, recently joined forces with Easter Seals to
host Battle Buddy Luncheons where veterans in the community can
come into the Post each week to learn about local resources.
The brainchild of VFW member and Easter Seals employee Jarod
Dyer, the program has already helped veterans get back on their
feet and on the path to quality careers.
Second, with regard to post-service licensure and
credentialling, the VFW believes that when a service member
leaves Active Duty he or she should be able to continue in a
similar civilian career. Unfortunately, this is not usually
possible because military training does not directly align with
civilian licenses or credentials.
The VFW applauds DoD's effort in its current pilot program
on civilian credentialling, and we encourage further expansion
of this program beyond the current handful of covered military
jobs.
However, the military can only do so much to resolve this
issue. It will also take a concerted effort from states that
issue licenses and private industry which must invest in the
human capital our newest veterans offer.
Yesterday I had the opportunity to meet with one such
private company, Sharp Decisions, which is dedicated to helping
veterans receive quality IT credentials. Karen Ross, CEO of
Sharp Decisions, recently commissioned a Vet's Program which
trains veterans in IT testing and data mining capabilities.
The program is free to veterans who are on the Sharp
payroll throughout their training. Once trained, Ross deploys
her teams of credentialed IT professionals to clients. Ross
said that the program was not simply born out of patriotism but
out of the recognition that highly trained military
professionals offer the traits she and her clients needed. It
made business sense.
Finally, with regard to educational opportunities, the VFW
has worked diligently over the last few years to improve
transparency in education access for veterans, but also to
improve benefits available to unemployed veterans.
In my prepared remarks I discuss the VRAP program, which
has offered many unemployed older veterans significant
opportunities to enhance their job skills. Unfortunately,
statutory limitations on two-year schools and full-time
enrollment make it difficult for many to participate.
The VFW is also concerned that, despite improvements to
information flow for college-bound veterans, we lack quality
data on outcomes threatening the long-term viability of
benefits like the Post-9/11 GI Bill.
Through the help of Student Veterans of America and the
National Student Clearinghouse, the VA will soon be able to
better track education beneficiaries, but we must do more to
demonstrate our return on investment.
For veterans attending public schools, the current
reimbursement model for the Post-9/11 GI Bill also creates
unforeseen financial hurdles, since many veterans are
disqualified from in-state tuition because of their military
service.
We encourage Congress to allow all Post-9/11 GI Bill
eligible veterans to attend at the in-state rate, offering
reasonable protections for those affected, much like the
protections we already offer our troops on Active Duty.
The employment outlook for our veterans has drastically
improved since the recession hit in 2008. However, as we have
outlined here today, we certainly can do more.
Vice Chair Klobuchar and Members of the Committee, this
concludes my testimony. I am happy to answer any questions you
may have.
[The prepared statement of Mr. Ryan M. Gallucci appears in
the Submissions for the Record on page 26.]
Vice Chair Klobuchar. Thank you, very much.
Mr. Mitchell.
STATEMENT OF MR. KYLE MITCHELL, DEPUTY EXECUTIVE DIRECTOR,
TEXAS VETERANS COMMISSION, AUSTIN, TX
Mr. Mitchell. Madam Chair, Members, thank you very much for
having me here.
Again, my name is Kyle Mitchell. I am the Deputy Executive
Director of the Texas Veterans Commission. On behalf of our
Executive Director Thomas Palladino, our Chairman Al Cantu, and
our Commissioners, I appreciate you having us here to talk
about what we are doing to help the 1.7 million veterans in
Texas.
We do that through our four program areas:
Our Claims Representation and Counseling Program, which
includes our state strikeforce teams which have helped over
19,000 backlogged claims move through the system.
We have our Veterans Employment Program which we will be
talking about today.
We have a Veterans Education Program, which as the Vice
Chair noted plays a key role in helping veterans use their
state and federal education benefits.
And we also have a Fund for Veterans Assistance, which
provides grants to local governments and nonprofit
organizations that help veterans and their families.
We are the advocacy agency for veterans in the State of
Texas. And these four program areas are important because they
are all centralized in one agency. Veterans come here and the
structure is the key to our success.
I would like to highlight two aspects of my submitted
testimony which are hard to convey in writing. First is
appreciation.
The Texas Veterans Commission and the State of Texas
appreciates the investment that Congress and the Federal
Government have made in our veterans, not only during their
Service but after their Service in helping them find
employment, particularly through the Jobs for Veterans State
Grant.
Through the Jobs for Veterans State Grant the Federal
Government provides over approximately $168 million to the
states to support veterans' employment; $168 million is not a
lot of money in comparison to the overall federal budget, or
even that of the Department of Labor, but it makes a huge
impact in the State of Texas and across the Nation.
In many cases, these were the only specific resources that
are available to help veterans find employment. And that is why
it is critical that these resource be used wisely, and that's
what we do in Texas.
Last year the Texas Veterans Commission received $12.2
million through the Jobs for Veterans State Grant which allowed
us to provide 170 veteran employment representatives throughout
the State of Texas located in 92 workforce centers, working
with our partner, the Texas Workforce Commission, and our local
Workforce Boards.
In the most recent reporting period, we were able to help
over 69,000 veterans, and many of those obtained employment.
Approximately 221 veterans obtained employment for every one of
our Veteran Employment Representatives. Although we only
receive about 7 percent of the Jobs for Veterans State Grant
funding nationwide, we account for over 18 percent of the
veterans entering employment after receiving services.
And because we appreciate this funding, and because we are
successful with it, this brings me to my second point:
Opportunity, the opportunity to improve the Jobs for Veterans
State Grant Program. And one way to do that is to emphasize
performance.
One, we think that performance should be part of the
funding formula that is included as part of the Jobs for
Veterans State Grants. We also think that funding for--the
funding that is provided right now for performance--should
actually reward performance. Right now, part of the grant goes
to--is required to be spent on performance regardless of how
well a state is performing, and we think that that should
change.
Mr. Deabay, who is here with me today and, as the Vice
Chair noted, has 13 years of experience with the Jobs for
Veterans State Grant, will provide a little bit more detail on
that and on the detail of other ways we think we can improve
the Jobs for Veterans State Grant.
I would like to spend the rest of my time talking a little
bit about veteran entrepreneurship, which is a topic that we
have been working on in Texas.
Last year we identified the need to do that. We launched a
pilot veteran entrepreneurial program in Texas. Our one staff
member was able to assist over 1,000 veterans towards veteran
entrepreneurship. We think that this is valuable work that we
can do.
Right now the Small Business Administration, who has been a
very valuable partner in this effort, but they also serve a
population of over 23 million veterans nationwide through a
network of only 15 Veteran Business Outreach Centers, so we
think that there is an opportunity to provide expanded
resources there.
We also think that, to the Chair's point about the Post-9/
11 GI Bill, the work that we do as the state approving agency
for that. There have been some changes to the work that we do
as the state approving agency. We think that there are some
opportunities to improve that work there. And also to better
utilize the on-the-job training program that is available
through the Post-9/11 as a way to better integrate veterans
with employers.
In closing, I would like to thank the Committee again for
having the Texas Veterans Commission here. Again, through our
four program areas we are able to do great things for veterans.
But part of the great work that we are able to do on behalf of
employment is in no small part due to the support that we get
from the Federal Government. And we also believe that there are
opportunities to improve that work.
[The prepared statement of Mr. Kyle Mitchell appears in the
Submissions for the Record on page 29.]
Vice Chair Klobuchar. Very good. Thank you very much, Mr.
Mitchell.
Mr. Deabay.
STATEMENT OF MR. SHAWN DEABAY, DIRECTOR OF VETERANS EMPLOYMENT
SERVICES, TEXAS VETERANS COMMISSION, AUSTIN, TX
Mr. Deabay. Good morning. As Mr. Mitchell says, I really
appreciate this opportunity to share with you the reasons why
in Texas we've been so successful.
It starts with our Veteran Employment Representatives, the
LVSs and DVOPs that Kyle had mentioned. I refer to them as job
caches, because what they do is help veterans with, veterans of
all wars, with every aspect of finding employment, whether
they're under-employed, or unemployed. They help them with
every aspect. That could be translating military skills. It
could be resume writing. It could be overcoming barriers to
employment. There's lots of things that my job coaches do that
are very, very important.
What is key is that initial assessment. During the initial
assessment, veterans will come in and we will try to see every
veteran the very first time they enter the American Job Center.
What we do is we do an assessment to determine what the
next step is. Do they need an employment plan? Do they need
resume help? Do they need a referral to the appropriate
employer who is willing to hire veterans?
That is very, very key and something we are very aggressive
with. We don't wait for veterans to come into the Job Center
and then help them; we are very aggressive and try to get the
word out that we are here to help every veteran if you're
under-employed.
We also receive input. Before we make decisions at the
state level, I receive input from all of my job coaches and
take the pulse of veterans employment at the ground level.
There's lots of numbers, lots of great statistics, and the
unemployment rate is declining, but if you ask a veteran who is
currently looking for work, I don't think they care if the
numbers are declining or not.
So we need to take the pulse of employment at the ground
level, not just simply the numbers. And I rely on my job
coaches who see veterans each and every day to help me make
decisions at the state level.
We do that through work groups. They give me innovative
ideas. One of the ideas that we have done is we have developed
veteran business representatives, and they are strictly to
outreach employers and educate them.
There are two parts to the employment equation. There are
the employers, and then there's the veterans. So we have
dedicated personnel to help educate employers on a regional
level--Texas is a very big state. So we have done four of them
to help get that word out, as well as helping veterans on the
ground.
Our structure is another main reason for our success. When
we make decisions at the state level, our job coaches in the
field take minutes for them to be able to get that and be able
to respond and have input. There's not multi-level supervision
that they need to go through. It is a very seamless
communication style and structure that we have where I can
direct my job coaches at any given time and they give me
feedback in any given time. And that is also very important.
Real quick about our challenge of getting the word out that
we're here. A lot of veterans still do not know that we have--
in Texas we have, like Kyle said, 170 job coaches. And getting
the word out that we are here is a definite challenge. We do
our best in doing that, but we can always do a lot better.
Also, communication within all of the stakeholders in
veterans employment. That includes the Department of Labor
VETS, the states, all the stakeholders. We need to do a better
job of coming together and talking about the pulse of veterans
employment, and share ideas--share ideas with large states,
medium states, and small states.
There are some great things going on, as you mentioned in
Minnesota. There are some great things going on in Texas in
entrepreneur with our business representatives that make a real
difference in veterans' lives. And there are some great ideas.
We need to come together and share those ideas. Get
together with large, medium, and small states and have that
forum to discuss, and maybe other states can implement what we
are doing and what other states are doing.
In closing, I would like to--just a quick story. I know
it's in my testimony, in my written testimony, but what we do
really helps veterans' lives on just a real basic level. I was
doing this for over 13 years. I started as a DVOP job coach in
Texas. Very few resources were available. There was a homeless
veteran who lived out of his car in the parking lot.
I saw him every morning at seven o'clock. I got to know
this veteran. I got to help this veteran get housing, helped
him with food--and I didn't do it by just a referral: here, see
this website; here, go--it was a real personal one-on-one. I
developed a relationship within the community, and that is what
our job coaches do.
Through the VWIP program, Veteran Workforce Investment
Program, we were able to help him go and get a truck driving
license. He became an over-the-road longhaul truck driver, and
would come back on his way to Houston and just tell me what a
great job, and thank me so much. And that is what it is really
about. It's not about the numbers. It's really about helping
the veteran, each and every one of them, and I am very proud.
The last thing I would like to say is, the reason why we
are successful is because I have an amazing staff: 170 job
coaches that really care, and really make a difference in
veterans' lives. One-on-one personal service is the key.
So with that, I end.
[The prepared statement of Mr. Shawn Deabay appears in the
Submissions for the Record on page 33.]
Vice Chair Klobuchar. Thank you, very much.
Mr. Fowke.
STATEMENT OF BENJAMIN G.S. FOWKE III, CHAIRMAN OF THE BOARD,
PRESIDENT AND CEO, XCEL ENERGY, MINNEAPOLIS, MN
Mr. Fowke. Thank you, Vice Chair Klobuchar. It is a
pleasure to be here this morning before this distinguished
panel. Minneapolis is our company headquarters, and I am
delighted, as always, to be here with you. Xcel Energy also
operates in Texas, and we appreciate Chairman Brady's
activities on veteran issues as well. And we are pleased to see
that Representative Paulsen is here, another Minnesotan with
whom we work closely, who has also worked to ease the
transition of veterans to civilian life.
Roughly 12 percent of Xcel Energy's 11,000 employees are
vets, and veterans are even better represented on our
management team. And while we are proud of that performance, we
want to do more.
For example, we know that our veteran employees generally
are not Post-9/11 vets, so absent our intervention we could
lose ground.
Our experience is similar to that noted in the Committee's
report on ``Building Job Opportunities for Returning Vets''--
that is, veterans we hire tend to be in the older, mid-career
cohort as opposed to the younger, fresh-out veterans.
Yet over half of our hires each year are filled with people
in the 25 to 35 age group. So we have got a great opportunity
to change that.
I will briefly highlight what we are doing within our
company and within our industry, and then offer some
suggestions on how we can improve veteran hiring practices.
Internally we have made veteran hiring a priority
throughout the company, and have worked to address obstacles to
doing so. One key gap has been the ability to translate
military skills to civilian job requirements, with the veteran
unable to articulate his or her experience and skills to fit
our positions, and our hiring leaders unable to recognize the
military experience that they have and how it is comparable to
our work.
To address this gap, we have developed a translator at our
career website to help both applicants and and our hiring
leaders better understand the types of military experiences and
how they apply to our various job openings.
We are focusing on line men and women, plant operation and
maintenance workers and engineers, all jobs where we expect to
see significant turnover in the coming years. We believe we
should be able to find good matches with the skills of
returning veterans, but we need to be sure we build a better
understanding of military skills to take full advantage.
Next we need to provide a supportive environment to retain
that talent. Research shows that veterans stay in their first
job after Service for 2 years, but then stay in their next
position for over 10.
That first shift from military to civilian life can be
complicated for various reasons, and we want to make sure that
we provide an environment that lengthens these tenures. We all
need to have our employees engaged in making that happen.
To that end, we have developed a series of orientation,
training, and leadership development programs that use that
transition. Working within our industry to greatly open
channels to recruit qualified vets, we participate in
partnerships such as Troop to Energy Jobs, a collaborative
effort between the Edison Electric Institute and the Center for
Energy Workforce Development to help us link to available
talent.
Other channels and partners such as military.com, Corporate
Gray, and Hire A Veteran, also help us reach potential
veterans.
Finally, we hold ourselves accountable by creating a
dashboard to measure our progress. We know that we focus on
what we measure. So we need to keep our eye on the ball,
monitor our performance statistics, and use those to further
close the hiring gap.
I am very pleased to report that our efforts are paying
off. We have been honored to receive awards for our veteran
hiring practices, including the 2013 Most Valuable Employer for
the Military by CivilianJobs.com.
GI Jobs also listed Xcel Energy as the top military--one of
the top military-friendly employers in 2012 and 2013. And it is
always nice to be recognized, but we know that there is more
that we can do and we must do. And to that end, just let me
make a couple of suggestions.
First, anything that can be done to better identify the
linkage between a veteran's military experience and civilian
jobs would be helpful.
Partnerships between civilian companies and veteran
agencies can improve the vet's ability to communicate with
companies more effectively, and further support of these
efforts would be welcome.
Such efforts are similar to those efforts we have
undertaken for college students. An example is with St. Cloud
University in Minnesota where we help students relate their
experience through our job openings. I believe these are models
that we can also apply to veterans.
Second, it would be helpful if military training could lead
directly to civilian certificates. In our industry, valuable
certificates include Certified Security Professionals, Plant
Operator Licensing, Professional Engineers, Certified
Information System Security Professional, CPAs, or Certified
Internal Auditors.
In many ways, such military and civilian jobs have
similarities and providing avenues for veterans to achieve
these kinds of certificates would greatly help the transition.
Our industry employs a number of highly technical skilled
positions that are extremely competitive right now. We have a
retirement bubble. We're going to have half of our workforce
turn over in the next 10 years. So this is a real opportunity
for us.
So let me just conclude by saying we're committed. I am
committed. Our entire business is committed to this. We know
how important it is, and we welcome your questions and, more
importantly, your partnership going forward.
Thank you.
[The prepared statement of Mr. Benjamin G.S. Fowke III
appears in the Submissions for the Record on page 37.]
Vice Chair Klobuchar. Thank you very much. Thank you, to
all of you.
I was just listening to that ``retirement bubble.'' It
sounds a little like the U.S. Senate. We had our own retirement
bubble in the last few years with a lot of people retiring, and
new Members coming in. And I think new energy is always good.
When you think about these new veterans coming in, we know
that their unemployment rate, having gone from 12.1 percent in
2011 to 9.9 percent as we pointed out at the beginning, a
bigger drop than with the civilian population, that's great.
But it is still higher than our national unemployment rate. It
is certainly higher than our Minnesota unemployment rate of 5.3
percent.
So could you talk about some of the greatest challenges
facing these post-9/11 veterans in finding work? Do you see it
as a skills gap? Lack of the right certification, something you
just pointed out? Or that ability to translate their military
skills into civilian jobs?
Mr. Fowke. I would say it is all of the above, with the
exceptions of the skills. I think that gets to the translation
of the skills that they did attain through their military
service.
And what I would suggest, in addition to the translator
type things and getting them the opportunity to get those
certifications, we need to reach them sooner as they transition
out of their military careers into civilian life. I would
encourage us to work together to do basically some simple
things like pre-qualifications.
Our industry has a number of basically SAT-type tests for
aptitude-type tests. And if we could have those vets tested
earlier, I believe they would rise higher up in the queue when
that hiring process starts.
Vice Chair Klobuchar. What do you mean by ``earlier''? Take
the test earlier?
Mr. Fowke. Yes. I mean, typically they are taking that test
after they leave the military. And if we could have them take
that test prior to leaving the military, then they are pre-
qualified and then we do not have any kind of lag in timing
gap. And I think what typically happens is they get lost in the
queue then and they have to re-emerge.
I think that is the theme we have been talking about with,
you know, getting the certifications and other things. Let's
make sure that they get credit for what they did.
Vice Chair Klobuchar. Thank you.
Mr. Mitchell, Mr. Deabay, do you want to talk a little bit
about that certification issue, what you have seen with the
people you work with?
Mr. Deabay. I mean I couldn't agree more. The more credit
that a veteran can get while they serve--I mean, being in the
military is a corporation, and there's a lot of advanced
technologies that people aren't aware of that they have a lot
of skills. They go through a lot of in-depth training, and to
get credit for that is obviously very important.
Also, another great point was the earlier the better. The
earlier that you can get to an exiting service member, the
better in the employment. Once they're out, there is going to
be a lag. If you can get to them as soon as possible and get
them as job-ready as possible when they exit, I think that that
is absolutely key.
Vice Chair Klobuchar. Well I mean that is certainly what we
have seen on this Committee with the long-term unemployment.
Once they are out and don't have a job for six months, a year,
it gets harder and harder for them to get employment.
So I think all of that is true across the populations, but
certainly we have seen evidence of that. And it is even harder
for them when they come back to suddenly get all these
certifications. So a lot of this is getting them ready while
they are serving, I would think.
Mr. Deabay. Absolutely.
Vice Chair Klobuchar. Did you want to add anything, Mr.
Mitchell?
Mr. Mitchell [Nodding in the negative].
Vice Chair Klobuchar. Mr. Gallucci, the Chamber of Commerce
has created the Hiring our Heroes Program, and the goal of that
is to get commitments from businesses to hire 500,000 veterans
or military spouses by the end of next year.
Have you noticed an increased effort because of this work?
Mr. Gallucci. As a matter of fact, we think the Hire our
Heroes campaign has been fairly successful to this point. They
have put together some fairly innovative techniques to
encourage companies to hire veterans.
One of the best examples that they have put together is the
Heat Map on where companies are hiring veterans. If you go onto
the U.S. Chamber's website, a veteran who is looking for where
they are hosting their career fairs can also see where there
are jobs in in-demand industries.
So we think it is a very helpful resource. And what the
Chamber has also done is leveraged local resources. They have
reached out into communities. My colleagues from the American
Legion, and also our Posts within the VFW, have worked with the
U.S. Chamber and local Chambers of Commerce to host hiring
fairs around the country where employers will come in,
employers who have made commitments to the U.S. Chamber's Hire
our Heroes Campaign, with jobs for veterans. So it is not your
typical job fair where you go in, you gladhand a couple of HR
representatives, and then you never hear from them again.
These are veterans who are going in looking for jobs in
companies who have jobs that they want to fill with qualified
veterans.
Vice Chair Klobuchar. The other thing that I think you are
all aware of--and then I'll turn it over to Representative
Paulsen--here is just with the Guard and Reserve, sometimes
they have different situations. They come back. They are not
going to an Active Duty base for them to have that time where
they start reintegrating and thinking about it. And they go to
small towns all over the country. Many of them are from rural
areas.
And our state started something called the ``Beyond the
Yellow Ribbon Program'' that has now gone national, where they
have to check in every 30 days. Their commanders then see them
every few months. And then every year. And the commanders see
how they are doing. Are they using their benefits correctly?
Are they getting a job?
And part of this is also to get at mental illness issues. I
assume you would think this is helpful, as well?
Mr. Gallucci. Absolutely. One of the issues that I talked
about in our written testimony was the dilemma with Guard and
Reserve unemployment. And I draw on some experiences of the
soldiers that I served with in the Army Reserve, where I have
one soldier who is just leaving on his third deployment in five
years.
Technically he is still a college sophomore. So skills'
attainment is very difficult. With the number of semesters he
has been able to attend while serving in the Army Reserve, it
makes it difficult.
Also, what you also touched on there has to do with the
availability of these resources once you leave Active Duty. We
are doing a much better job of transitioning Active Duty
service members through the transition assistance program
mandate, but when a service member goes back into the National
Guard or Reserve they may not have access to the same kind of
resources. So closing those through programs like the Army's
Yellow Ribbon Program are critical to making sure that they can
get in and talk to potential employers, learn about what is
available to them from federal and state agencies, and then
hopefully find a job.
Vice Chair Klobuchar. Thank you, very much. Representative
Paulsen, we have a full plate of people here, so it's great.
Representative Paulsen. Thank you. Well you all have kind
of touched on it, but one of the key areas in helping the
service members not waiting for providing that assistance and
guidance until after they come home is trying to get in front
of the opportunity, knowing that they will be coming home.
The Minnesota National Guard has been working with service
members while they have actually been deployed. They launched a
pilot program to work with about 2,700 members of the First
Brigade Combat Team that was deployed in Kuwait.
It was a unit that faced an estimated unemployment rate of
about 20 percent upon their return. But by working ahead of
time on resume, and interview skills, as well as how to
translate that military experience into marketable civilian
skills, they were actually able to get ahead of the curve and
get those folks ready to work as soon as possible. So when they
came back home, the First Brigade, actually their team
unemployment rate dropped to below 2 percent.
And the Minnesota National Guard has also worked with
employers designated as Yellow Ribbon companies, and those
Minnesota employers are not only dedicated to hiring veterans,
but they work together then to share best practices for more
effective outcomes for others across the board.
And Minnesota has got other role models, actually. U.S.
Bank recently was given a prestigious award from the Secretary
of Defense, Employer Support Freedom Award, from the employer
in support of the Guard/Reserve Organization, which is
outstanding. And companies like Xcel, of course, have a special
place on their website to focus special attention on hiring
veterans and know that they are an asset.
Using those examples certainly provides lessons, giving a
comprehensive approach which you all have kind of touched upon.
And one of the things I know that I have supported in the
House, and we've passed legislation as well along with the
Senate, is making sure that veterans that do return with skills
that our communities need those skills back home, we want to
make sure we translate to allow that training and certification
to directly do jobs back home.
So, Mr. Fowke, you touched on it a little bit in terms of
you've got translators where you're getting ahead of the curve
as a company, and looking at pre-qualifications, giving tests.
What else can the military do, or what can we help assist the
military to do directly to help prospective civilian employers
identify those exact skills that are learned, and that are
possessed by veterans, making sure that those skills are going
to be translated into applicable use in the private sector?
Mr. Fowke. I think we touched upon some of that in the
various testimony. And it is translating those skills. That is
the first thing. Getting credit for some of those skills.
That's the certification, pre-qualification program that we
talked about.
And I guess the third thing where I think we could work
together on is getting access to those veterans earlier--
ideally, prior to leaving the service, so we don't have that
issue where the Vice Chair said, that after six months it
starts to get harder and harder.
So we want to hit the ground running. And I think we can do
that if we reach out to them sooner. That is similar to the
experience I related to with the St. Cloud, that if we talk to
students--in this case it would be vets--sooner, help them
understand what we are going to need and how to translate that,
encourage them to take various industry-type standard tests, I
think we could achieve amazing results.
Representative Paulsen. Now, Mr. Deabay, you talked about
coaches and that one-on-one relationship being so critical, and
that relationship really being helpful to veterans in specific
situations.
Do you think that upon discharge the military could certify
that a veteran possesses a certain skill set? Or what can we do
to make sure the military is sort of having this coaching
process earlier on in preparation?
Mr. Deabay. Yes. The transition assistance program, to work
with us on our job coaches, and have that communication that I
talked about before. I think there needs to be better
communication with that TAP program, and our job coaches, or
LVRs and DVOPs, as they're known nationally, to talk to them
earlier.
I mean, the sooner we can talk to them, the better, and
identify. But getting those skills. They have the skills, and
being able to translate them, getting certifications for all of
the training that they have been through. Everything I really
think, the sooner the better. But right now, that is part of
our challenge, is we are not able to talk to them sooner than
later. A lot of times when we get them, they mention us at the
TAP program, and then they come see us maybe after, instead of
before. That is key.
Representative Paulsen. Mr. Mitchell or Mr. Gallucci.
Mr. Mitchell. I think that the Transition Assistance
Program, Congress has made a lot of changes to that program.
They have made it mandatory. But I think as Mr. Gallucci spoke
to, and can speak to a little more, that I think is one of the
key areas where we can continue to--that at the point at which
they are leaving the service, the military is providing those
briefings to them, I think there is an opportunity to improve
that process and to have it not just focused just on briefings
but to focus on that licensure, the skills and how to do that.
Mr. Gallucci. I just want to build on this by talking about
a word that is thrown around in our community a lot, and that
is ``seamless transition'': So when you go from being a service
member to a veteran and connecting you to the resources that
are readily available to you.
When I was leaving the military--or when I was actually
still in the Reserve, it blew my mind when I learned that VA
and Department of Defense never communicated with each other.
They are completely siloed industries.
Working in veterans advocacy, I have also learned that the
Department of Labor, Veterans Employment and Training Service,
is also siloed from Department of Defense.
Now Veterans Employment Training Service is working to
remedy this. They are in the process of negotiating an
information sharing agreement to get access to the information
about service members who will be transitioning off of Active
Duty.
What VETS wants to do is actually reach out to these
transitioning service members at four specific points: When
they make the decision to leave the military; when they are
going through the Transition Assistance Program; at the
capstone event for the Transition Assistance Program; and then
75 days after they have separated from Active Duty.
I believe my colleagues from the Texas Veterans Commission
would agree that knowing when the veterans are going to be
returning home is critical to connecting them with local
resources.
This is, from what we've heard from the Department of
Labor, they are in negotiations with Department of Defense, but
anything that Congress can do to put some pressure on them to
codify this and finalize this agreement is critical to
connecting veterans to those resources.
Vice Chair Klobuchar. Okay. Very good idea.
Representative Delaney.
Representative Delaney. Thank you, Vice Chair Klobuchar,
for organizing this important hearing. And I also want to add
my thanks to all of our witnesses for joining us here today
with their very interesting and insightful testimony.
My first question is for Mr. Fowke. But before I do that, I
want to also add my congratulations and appreciation for
obviously a terrific job that Xcel has done in achieving, I
think you said in your testimony, a 10 percent veterans
employment rate, which is probably almost one-and-a-half times
the average. And you're a large company, so that is
statistically significant.
That didn't happen by accident, so there is a lot to be
learned from what you have done. And it brings to mind a larger
question about thinking about a company like yours, and
thinking about the skills that our veterans learn in the
military.
It seems to me they leave the military with above-average
technical skills. They leave the military with above-average
leadership skills. And they leave the military with experience
working in a large organization and enterprise that is process-
driven, and where structure is important. Not that creativity
is not important, but structure and process is important. And
that seems to line up quite well with your business.
It's large. It's technical. And while creativity is
obviously important, there are safety issues, et cetera. So you
must have very good processes to be successful.
And so do you think that, as we think about policy around
improving employment for veterans, we should acknowledge more
directly that certain industries align better with the skills
that our veterans have? And perhaps disproportionately allocate
resources around training and education, to developing bridges
with those industries?
Not that we want to discourage veterans from pursuing any
career profession that they choose, but perhaps on the margin
some of these resources would be better spent aligning with
industries like energy services, and I'm sure there are others
that match with these skills? And not, again, that
entrepreneurship and things like that are not important and
veterans should be able to do that, but it is not a skill that
they gain through training while in the military. They probably
either have that passion, or they don't, inherently, so that is
the nature of my question.
Do you think there is any merit to going down this path,
which is to align more with specific industries?
Mr. Fowke. Well I think that is a great question. I think
if you look at what industries hire, it is almost to your
point. And the energy, utility, the transport industries are
big hirers of returning vets. And it is probably not a
coincidence for some of the things you stated.
And I will speak selfishly: We want the vets.
Representative Delaney. Right.
Mr. Fowke. And you touched on the points. Because they have
the leadership skills. They know how to work in a team
situation. And while our industry has made an incredible
improvement in safety, you are working with electrical lines.
You are working with gas lines. Safety and process come first.
And you can't be too creative when it comes to safety.
So for all those reasons, we think it is an ideal situation
for industries like ourselves, one. Two, as I mentioned, our
industry is aging and we do need to replace our workforce. And
we think that it is not only the skills, it is the values that
the vets have. And I personally am committed to hiring on
values just as much as skills.
So it is a great mix, a great fit, and I would encourage
that we--as a start in my industry, I think the
prequalification testing would go a long way.
Representative Delaney. And maybe Mr. Gallucci, do you
think that the programs we have, educational et cetera, are
linked along some of these industry verticals as deeply as they
should be? Or do you think it is more broad-based?
Mr. Gallucci. I think we can do better. And one of the
points that I touched on in my testimony was the Department of
Defense pilot program on Professional Licensure and
Credentialing, where the Department of Defense is looking to
expose military-trained professionals to civilian credentialing
opportunities while they are still in uniform.
Right now the pilot program is focused on transportation
industries, health care; we're hoping to expand it to IT and
more technical fields where service members receive that
training while they are on Active Duty, and where it would
translate to a career for a company like Xcel Energy or
somebody who--or an industry that's in demand or hiring.
Representative Delaney. Last question, very quickly.
Do we look at data to say that we are more successful in
some industries than others, and then realign resources around,
the way Mr. Fowke would run his business, do you think?
Mr. Gallucci. I believe we are looking at data, at least
from the military perspective. We're looking at those in-demand
industries, and also where the skills overlap. So if you have a
military occupational specialty where it easily aligns with a
civilian career that's in demand, then that's where we're
looking to expand the pilot program.
Representative Delaney. Great. Thank you.
Vice Chair Klobuchar. Thank you, very much. Congresswoman--
oh, she's going to be coming back in a few minutes? Okay. I
also wanted to acknowledge Congressman Amash and Senators
Wicker and Murphy that joined us. And I will ask a few
questions until Congresswoman Maloney returns.
Mr. Gallucci--oh, here you are. Excellent.
Representative Maloney. I thought there were----
Vice Chair Klobuchar. Well, you know, I was going to ask a
bunch of really hard questions of Mr. Gallucci.
[Laughter.]
I was going to really grill him, but here we go.
Congresswoman Maloney.
Representative Maloney. Thank you. First, Madam Vice Chair,
I want to compliment you on a very excellent report and all the
panelists for what you've done to help our veterans.
I was really struck by your idea, which I think is a great
one, Mr. Fowke, about translating the military training into
certificates so that industry knows they are certified. And
particularly in security professionals, there is such a need
for that, and plant operator licensings that you mentioned.
How would you do that? Now is there a licensing structure
now for Certified Security Professionals? How could we make
that idea of yours happen?
Mr. Fowke. Well I mean those certificates exist in the
civilian world. So I think the point is that a lot of those
skills have been acquired in military service. And rather than,
as the Vice Chair had stated, you know, starting from scratch,
let's get them credit for what they've done. And, ideally, help
them get certified even while they are in the military. So then
they're going right to the top of the queue, and these are jobs
that are in demand.
These are jobs that are basically hard to fill. So I think
we do have that opportunity.
Representative Maloney. Well I think that is an absolutely
great idea, and I would love to join the Chairlady in working
on it.
In your report today, you talked about nearly 20 percent of
the post-9/11 vets were women. But female post-9/11 vets face a
higher unemployment rate than their male peers: 12.5 percent in
2013 versus 9.5 percent for men.
Are there additional obstacles for women? Are there any
programs that focus on women? Any ideas from anyone on why is
there such a disparity between the employment of the women than
the men? The women I have met in the military are just as
dedicated and competent. Why is there such a huge gap?
Any comments? Any insights? Anyone?
Mr. Deabay. Well in Texas with the Veterans Commission,
what we are doing is we are establishing a Women Veterans
Employment Coordinator to tackle those issues you just
mentioned. Actually, the job is going to be posted within the
next couple of weeks.
They do have unique skills. And I think in talking to
employers and getting them to understand all of the things that
they have gone through, they have gone through everything a man
has gone through in the military. They have the same skills.
They have got the same leadership, same soft skills, have to
experience the same things, and I am not really sure employers
understand that.
There's also obstacles women face in general with under-
employment, not being paid the same as men. If they're a single
parent, there are child care issues. There's a lot of issues
just, or obstacles for them, just women in general. And then
you add the women veteran issue on top of that.
So I know in the Veterans Commission we recognized that.
The numbers do say that the unemployment rate is higher. So we
are going to have somebody help us identify what we can do as
an agency. What can we do as a state? And go ahead and move
forward from there.
Representative Maloney. I would like also a comment from
any panelist about business engagement, which seems to me to be
absolutely critical in helping our veterans find jobs. And
coalitions like the 100,000 Jobs Mission, which is sponsored by
a diverse group of companies to hire our vets are sharing best
business practices in helping vets translate their military
skills.
Are there benefits from these sharing programs? Do big
companies also work with smaller companies? Could you sort of
comment and give some insight on this type of engagement to
help our veterans?
Mr. Fowke. I don't know if I'm answering your question, so
maybe the other panelists can help me out, but I can tell you
that as I said in my testimony it really starts at the top. It
starts with me.
It starts with the commitment we have not only to hire
vets, but also women in nontraditional roles. You really
perform to what you measure on. So I would encourage businesses
to have measures that they review with their senior leadership,
and work it right down through the organization. It's just like
politics. Hiring is local in our organization.
And it's amazing how you move the needle just by that. And
the other organizations we can work with, I guess I would defer
to my colleagues.
Mr. Mitchell. Well in terms of business engagement, I think
that one of the things that we are doing that Mr. Deabay
mentioned is our Veterans Business Representatives that are out
there to engage those businesses.
And as Mr. Gallucci mentioned, that when we bring veterans
into events, and we recently participated in an event that CHEA
sponsored, they really are hiring fairs. They are there to get
jobs--they are there to hire veterans on the spot, and we prep
them to do that.
Representative Maloney. Very briefly, the tax incentive
that we passed expires at the end of 2013. Has that tax credit
that businesses get for hiring vets, what impact has it had? Is
it worth fighting to extend it? Comments from the panelists?
Mr. Gallucci. I would say that it's worth fighting to
expand. But what the VFW is--we do have a concern that it is
under-utilized by businesses because of the difficulty to
access the benefit.
One of the problems--the persistent problems that we see
is, not only the paperwork hurdle, but then whether or not a
business would actually be able to take advantage of the tax
credit because they would not have the requisite taxable
income.
What we would prefer to see is not only an extension of the
tax credit, but then to make the tax credit a payroll tax
credit that the employer can take right away.
And clearing up the paperwork issue would be almost a self-
certification where a veteran would have to provide a certain
type--a DD214 would be a great example--to demonstrate that
they are an eligible veteran. And then it would be audited on
the back end similar to the way your taxes are audited.
Representative Maloney. Okay. And how much of a tax credit
is it? Is it meaningful? How much is it? I just know there's a
tax credit. How deep is the tax credit?
Mr. Gallucci. For small businesses, it would be very
meaningful, depending--it varies based on what level of
eligibility you are. So if you're a recently discharged
disabled veteran, that would be the maximum benefit. And it's
less as you go through the different----
Representative Maloney. What is the maximum benefit?
Mr. Gallucci. I believe--and correct me if I'm wrong--I
believe it's $9,600, $9,600. So for small business owners, it
would be a significant benefit.
Representative Maloney. My time has expired. Thank you.
Vice Chair Klobuchar. Mr. Deabay, did you want to say
something else?
Mr. Deabay. I also wanted to say that all of my job coaches
issue conditional certifications for the work opportunity tax
credit. And then my business reps also contact employers about
utilizing that, and helping them through the paperwork, which
may not be as cumbersome as people may think, but the
perception on the employer's side is that it is cumbersome.
But we do issue that conditional certification, and it is
way under-utilized.
Vice Chair Klobuchar. Okay. Very good.
Representative Maloney. Why do you think it is so way
under-utilized when businesses could use it? Why is it under-
utilized?
Vice Chair Klobuchar. Mr. Fowke.
Mr. Fowke. I can just speak for Xcel Energy, and we might
be a bit of an anomaly, although perhaps we are not based upon
the other comments, and we do not really have the tax appetite.
We will have one in the future, but for a number of reasons we
don't have it today.
In my opinion, specific to my company, I would much rather
see the pre-qualification and the work put in the
certifications. Because if they're qualified, we're going to
hire them.
Vice Chair Klobuchar. Okay. Very good.
Representative Paulsen, you had some additional questions?
Representative Paulsen. Yes, I just have an additional
question.
Mr. Deabay, in your testimony you kind of highlighted the
potential problem almost of success in your job. I think you
mentioned--essentially it's this: If you do your job well, and
veterans find employment, agencies like yours are likely to
receive less funding. And some of this is natural, right,
because fewer unemployed veterans should require fewer
services. Yet, this is a good outcome that would seem to result
in punishment through less funding potentially.
So have you given a little bit of thought to how you would
balance that type of difficulty? And are there reward
structures that should be put in place, for instance, that
might be worth considering as resources are scaled back? Maybe
you'd want to touch on that, or Mr. Mitchell, or Mr. Deabay?
Mr. Deabay. Yeah, I mean you are exactly right. The way the
funding formula works--I mean, it is a long, complicated,
drawn-out paragraph that basically if you succeed and you help
a lot of veterans, exactly like you said, find employment, the
funding is based on those veterans looking for work that are
compared to other states. So, yes, the better you do the less
funding potentially you could receive, and the worse you do
potentially you could receive more funding.
There is also one percent of our grant that is geared
towards performance. And regardless of if a state is successful
or not, they receive that one percent. So I just think
discussions need to be talked about to how do we leverage that
one percent? How do we do this funding formula where it also
has the performance element? The fact that you're doing a good
job should mean that you should not be penalized by receiving
less funding.
But I think it can get very long and can get very
complicated. But I think discussions need to be made on that
formula and what should it look like.
Representative Paulsen. Good. Thank you.
Vice Chair Klobuchar. Very good. I want to thank everyone
so much. This was helpful. For our report, I want to thank our
staff for the work that they did on the report and putting
together this hearing. And also all of you for being willing to
come out.
I think that there has been progress. A lot of it is
because of the good work of the people before us that realized
we were seeing an inordinately high unemployment rate with our
vets.
I think we know, as Congressman Paulsen has pointed out,
some of this is tied obviously to the overall economy, and the
solutions are tied to that in terms of getting a focus on, from
my perspective, more exports, more job training, bringing down
our debt in a long-term way to encourage investment and review
of our rules and regulations.
I think we agree on a lot of those things. But beyond that,
while we have this immediate problem of our vets unemployment,
we have seen that progress, that great dramatic drop from 12.1
to 9.9 percent, but 9.9 percent is still too high for our post-
9/11 vet.
We appreciate the work of Mr. Fowke and other companies,
and the Chamber in making a huge effort in putting the word out
there that they want to hire vets. And I think we also know the
other piece of this are some things that are doable: Getting
credentialed for work that has been done in the military;
getting those job skills' training going on not when they land
and they are suddenly in Thief River Falls, Minnesota, but
while they are still in the Guard, or Reserve, or in Active
Duty.
And then finally, in making sure that we embrace our vets
not just while they are serving overseas, but we put our arms
around them when they return.
So I want to thank you for everything you have done, and we
are looking forward to refining the programs that we have and
building on the success we have seen, knowing that there is
still a lot of work to do.
I wanted to just put one last word in to thank Mr. Fowke
and Xcel. As Representative Paulsen knows, we had a series of
sort of Armageddon storms in Minnesota with one rainstorm after
another, with the biggest outages we had seen. And usually that
is not something to be positive about, but in fact Xcel came to
the plate and brought people in from all over the country. And
while some people were still out of service for a number of
days, for some reason Minnesotans decided to be patient and we
were able to get through it better than other areas have had,
including the one we're in, when we have seen similar storms.
So I want to thank you for that.
Mr. Fowke. Thanks for that acknowledgement. I appreciate
it.
Vice Chair Klobuchar. All right. Thank you.
Thank you, everyone. The record will remain open for two
weeks, and the hearing is adjourned. Thank you.
(Whereupon, at 11:06 a.m., Wednesday, July 10, 2013, the
hearing was adjourned.)
SUBMISSIONS FOR THE RECORD
Prepared Statement of Hon. Kevin Brady, Chairman, Joint Economic
Committee
I would like to thank Vice Chair Klobuchar for choosing the topic
of today's hearing, ``Building Job Opportunities for Veterans.''
Every Member of this Committee honors the men and women who have
served in our nation's armed forces. Since the enactment of the
Servicemen's Readjustment Act of 1944, popularly known as the ``G.I.
Bill,'' Congress has pledged to help veterans pursue their ideal of the
American dream. Congress remains committed to helping veterans make a
successful transition to civilian life, caring for the wounded, and
assisting the disabled and their families.
Today's hearing focuses on a key portion of that commitment--
helping veterans find jobs. There are numerous federal and state
programs designed to help veterans secure a college education and
training; take advantage of what skills they learned in the armed
forces and find gainful employment in the private sector.
Broadly speaking, employment trends among recent veterans follow
employment trends among the entire working-age population. Indeed, the
twelve-month moving average unemployment rate for all veterans of 6.7
percent is slightly lower than the overall unemployment rate of 7.6
percent in June. Therefore, the general condition of our economy
affects the level of employment among veterans as much if not more than
specific programs designed to help veterans find jobs.
The Growth Gap--which is the difference between economic
performance in the current recovery and an average recovery since World
War II--hurts the employment prospects of both veterans and non-
veterans. This recovery, which is four years old this month, is the
weakest in seven decades. Consequently, the United States has $1.2
trillion less in real GDP and 3.9 million fewer private sector jobs
than the U.S. would have had in an average post-war recovery. In terms
of real disposable income per capita, this anemic recovery has
generated about $2,800 less in income after inflation and taxes for
every American than an average post-1960 recovery would have generated.
Why are we suffering from a Growth Gap? Business investment in new
buildings, equipment, and software drives private sector job creation.
Compared with previous recoveries, real business investment has been
weak--after five and one-quarter years, it still remains 3.9 percent
below its pre-recession peak.
A lack of liquidity and high interest rates are not restraining
business investment. Commercial banks have over $2 trillion in excess
reserves sitting at the Fed that could be lent to America's
entrepreneurs. America's non-financial corporations have another $1.5
trillion in cash sitting on the sidelines. And interest rates remain at
near historic lows. The Federal Reserve has done all that it can
through monetary policy to help this recovery.
Local businesses tell us--over and over again--that Washington's
tax, regulation and deficit policies which President Obama continues to
pursue are generating uncertainty that is deterring America's
entrepreneurs from making the investments that would create millions of
good jobs for veterans and non-veterans alike.
Nobel laureate Albert Einstein defined insanity as ``doing the same
thing over and over again and expecting different results.'' Four years
after this feeble recovery began, it is clear that the current mix of
economic policies is not working.
What must be done to close the Growth Gap and ensure that the 21st
century is another American Century? The bottom line is that we must
get our act together in three major areas of economic policy:
We must reduce federal spending and federal debt as a
percent of GDP, and we must pursue pro-growth tax and fiscal policies
that give businesses the incentive and confidence to invest in
buildings, equipment and people.
We must overhaul the federal regulatory process to ensure
necessary regulations are balanced and cost-effective.
We need to return to a predictable, rules-based monetary
policy that maintains the purchasing power of the U.S. dollar over
time.
Those basic changes will spur the U.S. economy and help our
veterans find gainful employment which, for all the sacrifice they've
made for our country, they deserve. With that, I look forward to
hearing the testimony of the witnesses.
__________
Statement of Ryan M. Gallucci, Deputy Director, National Legislative
Service, Veterans of Foreign Wars of the United States
Madame Vice Chair and Members of the Committee:
On behalf of the men and women of the Veterans of Foreign Wars of
the United States (VFW) and our Auxiliaries, I would like to thank you
for the opportunity to offer the VFW's perspective on the current
employment climate and potential solutions for today's veterans.
As the current conflicts draw down and the military plans to shrink
the active duty force, Department of Labor Veterans Employment and
Training Service (VETS) anticipates that more than one million veterans
will enter the workforce in the next few years. The VFW applauds the
work of the 112th Congress in addressing persistent veterans'
employment issue by implementing policies like the VOW to Hire Heroes
Act. However, unemployment among young veterans remains unacceptably
high. As the Joint Economic Committee deliberates on ways to improve
the employment situation for America's veterans, the VFW looks forward
to contributing to this important discussion.
The most recent data from the U.S. Bureau of Labor Statistics
indicates that veteran unemployment is trending downward, mirroring
unemployment among civilians. Also, total veteran unemployment remains
lower that the national average. Unfortunately, this glimpse into the
employment situation of veterans only tells part of the story, since
unemployment among young veterans still far outpaces unemployment among
their civilian counterparts.
The VFW believes this indicates a larger dilemma among the
veterans' population. Over the last few years Congress, the Obama
Administration and private industry leaders have spearheaded dozens of
initiatives designed to help veterans find meaningful employment after
military service. Many of these new initiatives appear to be yielding
significant results for veterans with no further military obligations.
Unfortunately, this means one group is left behind--Members of the
Reserve Component with further service obligations to either the
National Guard or Reserve.
According to the veteran-hiring website VetJobs, unemployment among
the National Guard, specifically, is around 25 percent. When VetJobs
controls veteran unemployment statistics for those with further Guard
and Reserve obligations, veteran unemployment is only at about 5
percent--nearly two full percentage points lower than the civilian
unemployment rate. To the VFW, this indicates persistent gaps for
members of the Guard and Reserve in military skill transferability and
civilian skill attainment.
While the VOW to Hire Heroes Act significantly improved the
economic landscape for veterans, certain programs remain
underutilized--specifically the Veterans Retraining Assistance Program
(VRAP) and the veteran hiring tax credits. The VFW believes that VRAP
is a tremendous benefit that offers older veterans an opportunity to
attain critical marketable skills when they are no longer eligible for
other VA education benefit programs. VRAP offers 12 months of
Montgomery GI Bill-style benefits to veterans ages 35-60 to attend
education programs at two-year and technical institutions with a focus
on high demand industries as outlined by VETS.
The VOW to Hire Heroes Act offered 99,000 veterans the opportunity
to take advantage of this program. While the VFW has heard from many
veterans who have tapped into the program, we remain concerned about
woefully low usage rates. As of Monday, June 3, 121,000 veterans have
applied for the program and VA has approved the applications of more
than 104,000 veterans, but only 50,000 veterans are enrolled in
training. Benefits expire in March 2014, which means many veterans who
are eligible for the program, but have yet to enroll, will not be able
to use all of their entitlement.
The VFW recently testified before the House Veterans' Affairs
Committee about the issues facing VRAP, and called for a responsible
extension of eligibility for those yet to enroll and for a report to
Congress on usage, course completion and employment for VRAP
participants. The VFW believes this is a solid program, but that
several unforeseen bureaucratic problems have contributed to low
enrollment. First, the restriction on two-year institutions means that
veterans cannot enroll in certificate or Associate's Degree programs
offered by four-year schools. For example, the Penn State Erie campus
in Erie, Pa., serves as a de facto community college, offering two-year
and certificate programs for the northwest region of Pennsylvania. An
eligible veteran cannot find a community college nearby because they do
not exist. This means VRAP-eligible veterans have very limited options
for enrollment.
Next, VRAP only pays students enrolled full time. This becomes a
problem for veterans who require significant remediation to complete
VRAP-eligible programs. At schools like the Community College of Rhode
Island, remedial courses do not directly coincide with the academic
calendar for other VRAP-eligible programs, meaning veterans cannot work
them into their schedule without risking part-time enrollment, at which
time VRAP benefits are suspended. The VFW believes that VA must make it
easier for VRAP-eligible veterans to complete remediation by allowing
for part-time enrollment in approved programs.
The VFW also is concerned that the veteran-hiring tax credits are
too difficult for businesses to use, which is why the program has also
been underutilized. The VFW believes that Congress should streamline
the paperwork required of a business to take advantage of the credit,
allowing veterans to self-certify by providing certain paperwork.
Businesses should also be able to apply the tax credit as a payroll tax
credit, since some businesses who could use the benefit will not have
the requisite taxable income to make the credit worthwhile.
On a positive note, the VFW believes that private industry has
taken significant steps in the last few years to recognize the value of
employing veterans. Thanks to efforts from First Lady Michelle Obama's
Joining Forces initiative and the U.S. Chamber of Commerce Hire Our
Heroes initiative, businesses have actively come forward pledging to
hire veterans into meaningful career paths. The VFW is particularly
happy to see how the U.S. Chamber has leveraged resources from coast to
coast, including American Legion and VFW posts, to host hiring fairs
that result in jobs.
Joining Forces has also contributed to this dialogue by fostering
public-private partnerships, like the recently announced initiative to
help 81,000 receive information technology professional certifications.
In April, the VFW was honored to take part in the Joining Forces
roundtables to address professional credentialing for veterans in
transportation careers and the transferability of academic credit for
military training and experience. Though gaps persist in both of these
areas, the VFW has seen significant progress in the last few years
thanks in large part to the Department of Defense pilot program on
military credentialing for certain military occupational specialties.
The VFW believes that when a service member leaves active duty,
they should be able to continue in similar civilian careers.
Unfortunately, this is not usually possible because military training
does not directly align with either civilian professional licenses
issued by states or civilian professional credentials designed by trade
associations. The DoD pilot seeks to address both of these issues to
ensure that service members can receive relevant credentials while on
active duty, or at least easily sit for a professional license once
they separate from the military. The VFW is proud to see the work that
DoD has done on this pilot in concert with veterans' advocates from
groups like our partners at the American Legion, ensuring certain
professionals in careers related to transportation and health care can
leave active duty with many civilian credentialing gaps filled in.
Another critical component in preparing our veterans for civilian
careers is the military's transition assistance program (TAP). For
years the VFW called on the military to overhaul its out-of-date
curriculum. Thanks to a recent Presidential Executive Order and the TAP
mandate included in the VOW to Hire Heroes Act, the VFW is proud to
report that the initial overhaul of TAP is nearly complete.
While the VFW has acknowledged in testimony that redesigned TAP is
far from perfect, we acknowledge that the latest iteration of TAP is a
vast improvement that stands to offer veterans a quality baseline of
information with which they can easily transition from military to
civilian life. In particular, the VFW is happy to see TAP allow service
members to select curricula relevant to their individual goals of
higher education, small business ownership or vocational/technical
careers. The VFW is in the process of evaluating each of these
curriculum tracks, and we believe they will each offer veterans
significantly improved resources to make sound transitional choices.
We continue to work closely with each agency of jurisdiction for
TAP, including VA, VETS, DoD, and the Small Business Administration
(SBA) to ensure that curriculum for each track will be readily
available to transitioning service members. We have concerns that the
tracked curricula are not mandatory, but rather service members must
satisfy career readiness standards on their own time. DoD officials
have said that the TAP mandate included in the VOW to Hire Heroes Act
only specified service-specific training, the VA benefits briefing and
the VETS employment workshop. The VFW disagrees, since the TAP mandate
covered ``assistance in identifying employment and training
opportunities, help in obtaining such employment and training . . . ''
in accordance with title 10, U.S.C., Sec. 1144 (a). To the VFW, this
means higher education and any other training track that a veteran may
choose.
The VFW has also long said that transitioning service members have
no way to reasonably anticipate all of the issues they will face after
military service, which is why we will continue to push DoD to ensure
that TAP resources are readily available to veterans after they leave
the military. A critical component to the successful transition of a
military professional into the civilian job market is information-
sharing among relevant federal, state and non-government organizations.
Today, the chief complaint from VA, VETS, state departments of
veterans' affairs and state workforce development agencies is the lack
of information available from DoD when a service member leaves the
military.
The VFW believes that many quality programs are in place that could
offer veterans remarkable employment resources, such as VETS' Disabled
Veterans Outreach Program Specialists (DVOPS) and Local Veterans
Employment Representatives (LVERs). Unfortunately, VETS has no way to
reliably determine where veterans go once they leave the military or if
they need help finding work. VETS is in the process of codifying an
information-sharing agreement with DoD that will allow VETS access to
contact information for transitioning service members. The VFW
encourages DoD to finalize this agreement as soon as possible to ensure
that VETS can reach out directly to recently separated veterans and
offer any needed employment resources.
Finally, the VFW has worked diligently over the last few years to
ensure veterans have the tools necessary to choose a program of
education that will help achieve their career goals. Two years ago,
reports started to surface in Congress that some schools failed to
deliver the kind of education they promised in an effort to collect
lucrative GI Bill payments. The VFW decided that instead of seeking to
gut and overhaul higher education, we would focus on creating informed
consumers. Through our advocacy efforts, we secured a Presidential
Executive Order and the Improving Transparency of Education
Opportunities for Veterans Act, both of which seek to improve consumer
resources for potential student-veterans and create methods through
which veterans can take action against a school should they become
victims of fraud, waste or abuse.
The VFW believes that the Post-9/11 GI Bill will prove to be a
transformative benefit, allowing our newest generation of veterans to
acquire the skills necessary to compete in a 21st century workforce.
However, the benefit is not perfect. Today veterans attending public
schools are often precluded from attending as in-state students as a
result of their military service. This forces veterans to drop out,
find full time employment, or take on exorbitant student loan debt just
to make it through college. To the VFW, extending in-state tuition to
veterans is a simple extension of protections already afforded to
active duty service members. Unfortunately, once the uniform comes off,
the protection goes away and schools know it. According to Student
Veterans of America, four out of every five student-veterans enrolled
in a public school must attend as out-of-state students because of
circumstances beyond their control. The VFW will continue to work
diligently to change this flawed policy.
Finally, despite these policy changes and improved consumer
resources, some critics still point to flawed data as indicators that
student-veterans are not succeeding in college. The VFW strongly
refutes this allegation. Unfortunately, the truth remains that we do
not know enough about our student-veterans. The VFW supports
initiatives to better track student-veteran outcomes in higher
education in order to demonstrate student-veteran success. VA and its
partners with Student Veterans of America and the National Student
Clearinghouse have already started work compiling this kind of valuable
information, which the VFW is confident will show exactly how well
prepared our newest veterans will be to lead our nation moving forward.
The employment outlook for our nation's newest generation of heroes
has drastically improved since the recession hit in 2008. However, as
the VFW outlined in our testimony, we believe that we can certainly do
more. Vice Chair Klobuchar and distinguished members of the committee,
this concludes my statement and I am happy to answer any questions you
may have.
__________
Statement of Kyle Mitchell, Deputy Executive Director, Texas Veterans
Commission
greeting
Good Morning, Chair Brady, Vice Chair Klobuchar, and Members of the
Committee. For the record, my name is Kyle Mitchell, Deputy Executive
of the Texas Veterans Commission. On behalf of our Executive Director,
Thomas Palladino, our Chairman, Eliseo ``Al'' Cantu, and the
Commissioners of the Texas Veterans Commission, I would like to thank
the Committee for this opportunity to testify before you today and for
your interest in the efforts the state of Texas has undertaken in order
to serve the 1.7 million Veterans in our state.
I am accompanied today by Mr. Shawn Deabay, Director of the Texas
Veterans Commission's Veterans Employment Services (VES) program. Mr.
Deabay has worked in the VES program for nearly 13 years, working his
way up from entry-level field staff as a Disabled Veterans Outreach
Program (DVOP) Specialist and then as a Local Veterans Employment
Representative (LVER). In 2007, he was named the Texas LVER of the year
by the Texas Department of the American Legion and recognized as the
National LVER of the Year by the Disabled American Veterans (DAV).
After being promoted to Regional Manager for the East Texas Region, his
region won the Veteran of Foreign Wars (VFW) Employment Distinguished
Services Award. He went on to become the program's Operations Director,
and in 2011, was named Program Director. As a result, he can speak to
specifics of this program from a perspective few possess.
My testimony will provide: (1) an overview of our agency programs,
(2) background on the Veteran employment trends that make Veteran
employment programs critical, (3) information on our Veteran Employment
Services program with recommendations for improving the federal funding
that supports that program, and (4) two successes of the Texas Model
that impact Veterans employment: Veteran Entrepreneurship and Veteran
Education.
Mr. Deabay's testimony will provide you with recommendations for
improving the federal investment in Veterans employment as well as the
``secrets'' to Texas' successful implementation of its Veterans
Employment Services program.
texas veterans commission
The Texas Veterans Commission is the advocacy agency for Veterans
in the State of Texas. Our mission is to advocate for and provide
superior service to Veterans in the areas of claims assistance,
employment services, education, and grant funding that will
significantly improve the quality of life for all Texas Veterans, their
families and survivors. The Texas Veterans Commission provides these
services through four program areas: Claims Representation and
Counseling, Veterans Employment Services, Veterans Education Program,
and the Fund for Veterans' Assistance.
No other state has centralized all of these program areas within
their state's Veterans agency. This consolidation is a key to our
success, allowing us to concentrate all of our efforts and resources on
Veterans with a focus not possible when these programs exist as
components of larger agencies.
Texas is becoming recognized for aggressively leading on Veteran
issues. National leaders have referred to the ``Texas-model'' when
advocating for the integration of Veterans services.
veteran employment trends
Veteran employment trends underscore the reason that Veteran
employment programs are so important.
In Texas, businesses understand that Veterans make great employees.
The military has already made a significant investment in individual
job training and Veterans have demonstrated the ability to learn new
skills. Veterans have also demonstrated proficiency in these skills in
stressful and rigorous conditions (i.e. combat, remote locations).
Despite this reality, as you know, Veterans tend to face
significant challenges to employment when transitioning from the
military to the civilian workforce. The end of combat operations in
Iraq, a decreased military presence in Afghanistan, and force shaping
measures announced by the Department of Defense in January 2012 have
swollen demand for Veteran employment services. We have seen this
narrative played out on the ground in Texas. As recently as June 25th,
the Department of the Army announced plans to reduce the number of
active-component Brigade Combat Teams from 45 to 33 by 2017, a
reduction of 80,000 soldiers. Approximately 17% of this total reduction
impacts Texas directly, with reduction of a Brigade Combat Team each
from Fort Hood in Killeen and Fort Bliss in El Paso.
Gulf War II Era Veterans, especially, those recently separated
veterans from the Iraq and Afghanistan conflicts, are facing challenges
to employment at a greater rate than the general Veteran population.
While at 7.2% for the month of June (2013), the national unemployment
rate for Gulf War II Era Veterans has remained at or above 10% for 26
of the past 36 months, peaking at 15.2% in January 2011.
Female Veterans are another segment of the Veteran population that
has experienced recent employment challenges. While we have seen some
gains among male Gulf War-era II Veterans, their unemployment rate fell
by 2.5 percentage points to 9.5 percent from 2011 to 2012, the rate for
female veterans, at 12.5 percent in 2012, was little different from the
prior year. Some contributing factors to this trend among female
Veterans may include that employers have an outdated understanding of
women's role in the military, women Veterans may not be aware of and
obtaining the services and benefits that are available to them, and
women Veteran's status as a care giver for children can conflict with
employer needs.
veteran employment services
These Veteran employment trends demonstrate the importance of the
active and critical role that Congress has taken in providing
employment resources for Veterans to the states through multiple
workforce programs including the Jobs for Veterans State Grant (JVSG)
through the Department of Labor, Veterans' Employment and Training
Service (DOL-VETS). Through the JVSG, the federal government provides
approximately $168 million to the states to support Veterans
employment.
The Texas Veterans Commission's Veterans Employment Services
Program executes the JVSG, for the State of Texas. This program assists
Veterans with obtaining long-term meaningful employment.
Last year, the Texas Veterans Commission received $12.2 million
from DOL-VETS through the JVSG which funded 170 Veteran Employment
Representatives located in 92 workforce centers throughout Texas.
In the most recent reporting period, the program assisted 69,080
Veterans with 38,714 of those Veterans obtaining employment. As a
result of these efforts, 221 Veterans obtained employment for every one
Veteran Employment Representative. While Texas receives 7% of JVSG
total funding nationwide, the state accounts for 18% of the nation's
Veterans receiving services entering into employment.
Based on our success with the JVSG, Mr. Deabay and I will be
sharing four recommendations for improving the JVSG:
1. Improve communications
2. Seek input from successful states
3. Reward performance through funding formula adjustments
4. Promote innovative programs
Let me focus on the issue of funding as there are two issues that
would ensure that the $168 million investment that Congress makes in
our Veterans is best utilized:
1. Include Performance in the Funding Formula
Currently, the funding formula utilized by DOL-VETS for the JVSG
program allocates funding through a ratio, comparing the total number
of Veterans residing in the state that are seeking employment to the
total number of Veterans seeking employment in all states. A state's
performance is not taken into account at any point in the funding
formula. Thus, states are essentially penalized for high performance.
When a state performs well by assisting a high number of Veterans
locate and retain employment, the number of unemployed Veterans in that
state falls, lowering the ratio by which that state is funded, equating
to less funding. When a state performs poorly with fewer Veterans
entering into employment, the number of unemployed Veterans rises or
continues to be high, thus increasing the ratio and equating to
additional funding. Performance should be taken into consideration when
allocating funds to incentivize states to elevate their performance.
Ignoring states' performance overlooks an opportunity for DOL-VETS to
reward success and fuel innovation in states whose programs are
producing effective employment outcomes for Veterans.
2. Funding for Performance Should Reward Performance
In addition, one percent of the current funding must be used for
performance. Some states provide boards with the money received for
performance while others provide that money to JVSG-funded staff or
partners doing great things for Veterans employment. All states receive
this one percent regardless of the state's performance. If a state is
performing well below the national average or well below their
negotiated goals, the state will continue to receive one percent as
outlined by the attachment. States not performing at a high level
should not receive performance funding. This money should be given to
states performing well to encourage innovation and enhance their
ability to provide long-term meaningful employment to Veterans.
As Mr. Deabay will speak to the other issues to improve the JVSG, I
would like to address two additional areas of the Texas Model that
impact Veterans employment: Veteran Entrepreneurship and Veteran
Education.
tvc veteran entrepreneur program
There is another innovative component to meeting the Veteran
employment need in Texas. In April 2012, the Texas Veterans Commission
launched a pilot Veteran Entrepreneurship program which has hosted a
series of seven seminars throughout the state and assisted over 1,000
Veterans towards entrepreneurship.
Based on the success of this pilot program, and because of the
overwhelming interest from Veterans in starting and expanding their own
businesses, the Texas Legislature recently passed legislation to
permanently establish and fund the Veteran Entrepreneur Program at the
Texas Veterans Commission to foster and promote Veteran
entrepreneurship and business ownership.
The U.S. Small Business Administration has been a valuable partner
in this effort, but serves a population of over 23 million Veterans
nationwide through a network of only fifteen (15) Veteran Business
Outreach Centers. Again, when Veteran services are just components of
larger efforts, those programs are normally not given the focus and
priority needed to be as effective as possible. Considering the amount
of effort required to identify, locate and communicate to Veterans, it
is understandable that Veterans would fall through the federal
``entrepreneurial cracks.''
Leveraging the ``Texas Model,'' the Texas Veterans Commission's
Veteran Entrepreneur Program is able to engage Veterans at the ``point
of contact'' as Veterans use our employment and VA claims services.
This approach has led to the significant, rapid success of our
entrepreneur program and will serve to expand the number of Veteran-
Owned Businesses in the state.
veterans education impact on employment
Veterans education benefits directly impact the Veteran employment
picture as well. Veterans separating from the military often choose to
utilize educational benefits afforded them as the result of their
service in order to acquire new skills or enhance and formalize skills
they already possess, thus making them more competitive in the
employment market.
The Texas Veterans Commission is the State Approving Agency (SAA)
for federal education benefits in Texas. Because of the historic state
role in the education of its citizens, State Approving Agencies were
the primary source for the U.S. Department of Veterans Affairs in
assuring accountability for institutions of higher education while
maintaining the state's authority to approve, disapprove, and monitor
education and training programs for Veterans. Public Law 111-377,
enacted in January 2011, shifted authority for approval of programs for
which eligible Veterans and their families could use the GI Bill
educational benefits from the states to the U.S. Department of Veterans
Affairs. As a result, states are more limited in their ability to
ensure the quality of these programs, which may ultimately impact the
employability of the Veterans.
Another valuable federal educational benefit is On-the-Job Training
(OJT) Program, which is an alternative way for Veterans or eligible
family members to use VA (GI Bill) education benefits. OJT is training
which Veterans receive while actually performing a job and earning
wages. If the program is approved by the Texas Veterans Commission,
Veterans may utilize their GI Bill education benefits while in
training. TVC currently has 276 employers with approved OJT programs
including the Texas Department of Public Safety/Texas Highway Patrol,
U.S. Customs & Border Patrol, Austin Police Department, Dallas Fire
Rescue, Schlumberger Technology Corporation, and Southwest Airlines.
In Texas, eligible Veterans and family members receive an exemption
from the cost of tuition and fees for up to 150 credit hours at a state
institution of higher education through the Hazlewood Exemption.
Moreover, the Texas Legislature has allowed the unused portion of this
benefit to be transferred to an eligible dependent and just designated
funding in order to make this benefit to Texas Veterans and their
families sustainable for years to come. Congress should consider
similar changes to the transferability of Post 9/11 GI Bill benefits as
a tool to assist in the employment of the family members of Veterans,
which is intricately related to the issue we are discussing today.
closing
The state of Texas is leading on Veteran issues. The Governor,
Lieutenant Governor, and the Texas Legislature demonstrated their
commitment to the Veterans of Texas this past legislative session by
passing a number of key legislative initiatives for Veterans and by
obligating significant funding for programs to assist Veterans in our
state. State leaders deserve recognition for taking bold actions to
serve the Veterans of our state.
Veterans in Texas are also served by an active Congressional
delegation that continually seeks to improve the services and benefits
provided to them.
Our goal at the Texas Veterans Commission is to assist as many
Veterans as we can while continuing to provide high-quality services.
There will be thousands of military service men and women coming home
over the next few years, which will increase the need for our services.
We owe it to our nation's heroes to assist them with their employment
needs when they come home. Employment stabilizes Veterans and their
family's lives allowing them to make the difficult transition from
military to civilian life.
Recently, some have voiced concerns regarding the effectiveness of
the JVSG concept, leading some in the Veterans community to advocate
for the consolidation of multiple workforce programs.
The Texas Veterans Commission has demonstrated the capability to
have a positive impact on Veterans employment issues. With the support
of this Committee, we believe that the JVSG program and the VES program
in Texas can continue to develop innovative and effective ways to
improve the employment services provided to Veterans in our state.
Again, I want to thank you for the opportunity to testify before
you today. Thank you for the work you are doing, and will do, on behalf
of Texas Veterans, and all Veterans, of this nation's Armed Forces.
__________
Statement of Shawn Deabay, Director, Veterans Employment Services,
Texas Veterans Commission
introduction
Good Morning, Chair Brady, Vice Chair Klobuchar and Members of the
Committee. My name is Shawn Deabay and I have the privilege of serving
as the Director of Veterans Employment Services at the Texas Veterans
Commission. As such, I am responsible for the management and execution
of the Jobs for Veterans State Grant (JVSG) from the U.S. Department of
Labor Veteran Employment and Training Services (DOL-VETS) for the state
of Texas. This is an equivalent position to a Veterans State
Coordinator in other states.
Some have become disillusioned with the JVSG concept, contemplating
a complete overhaul of the program or its consolidation with other
employment initiatives. I voice caution with this view, primarily
because, over my 13 years with the program, I have seen the program in
Texas evolve from just another marginally performing state to, since
2006, successfully implementing the JVSG programs with unparalleled
performance outcomes. As the result of my experiences at every level
within the organization, I believe the JVSG concept is sound, and,
properly implemented, can yield highly successful results. However,
there are things that both DOL-VETS and other states can do to
drastically improve the JVSG program.
My testimony provides some recommendations for improving JVSG,
which include:
1. Improve communications
2. Seek input from successful states
3. Reward performance through funding formula adjustments
4. Promote innovative programs
My testimony also provides some factors to Texas' successful
implementation of the JVSG program, including:
1. Supportive structure
2. No competing priorities
3. Veterans serving Veterans
4. Focused outreach to employers
5. Building strong partnerships
recommendations for improving the jobs for veterans state grant (jvsg)
1. Improve Communications
There needs to be healthier communication between the leadership at
DOL-VETS and the appropriate state agency that administers JVSG for the
state. Currently, the communication does not flow with either
efficiency or consistency. The main way in which DOL-VETS communicates
with states is through rules in the form of Veteran Policy Letters
(VPLs) to the states. The focus of these policy letters have included
roles and responsibilities of the Local Veteran Employment
Representatives and the Disabled Veterans Outreach Program specialists,
state plan modifications, negotiated performance goals, and others.
There has not been a single Veteran Policy Letter distributed to
states since June of 2012. July 1st was the start of the JVSG's second
program year with no negotiated performance goals for any state. In
August 2012, DOL-VETS announced an imminent Veteran Policy Letter
completely overhauling the roles and responsibilities of the Local
Veteran Employment Representatives and the Disabled Veterans Outreach
Program specialists. Despite advising states to alter their state plans
based on the contents, no further written guidance has been provided
this year.
An example of this communication: REALiflines was an initiative
funded by DOL-VETS to assist severely injured soldiers. The Texas
Veterans Commission had three staff dedicated to this cause. Our
REALiflines coordinator for El Paso, Texas, was e-mailed directly by
leadership within DOL-VETS at the beginning of December 2012 that the
program would be discontinued. Two weeks passed before DOL-VETS
officially notified the Texas Veterans Commission of their decision to
end the program on December 31, 2012, leaving three Disabled Veteran
Outreach Program specialists without employment following the Christmas
holidays. Fortunately they were able to continue employment with the
Texas Veterans Commission as the result of other vacancies. Otherwise,
we would have had to let them go.
2. Seek Input From Successful States
States consistently performing at a high level should be called
upon to provide input to DOL-VETS. Best practices should be shared and
discussions held to continue to explore innovative ways to improve
employment services to veterans. There are states with incredible
processes to ensure veterans have every resource available to locate
and retain long-term employment.
A formalized group of successful small, medium, and large states
should gather to provide DOL-VETS with input about what is working
well, what is not working well, and what the future of the program
should look like. Gathering information from successful states, those
actually implementing the programs, can only improve how veterans are
being served across the nation.
3. Reward Performance Through Funding Formula Adjustments
DOL-VETS provides funding to each state based on the number of
unemployed veterans as compared to the number of unemployed veterans in
other states. Attached you will find the latest funding estimates for
fiscal year 2013. Essentially, one could argue that states are
penalized for high performance. When a state performs well by assisting
a high number of veterans to locate and retain employment, the number
of unemployed veterans in that state falls, lowering the ratio by which
that state is funded, equating to less funding. When a state performs
poorly with fewer veterans entering into employment, the number of
unemployed veterans rises or continues to be high, thus increasing the
ratio and equating to additional funding. Performance should be taken
into consideration when allocating funds to incentivize states to
elevate their performance.
Furthermore, one percent of the current funding must be used for
performance. Some states provide boards with the money received for
performance while others provide that money to JVSG-funded staff or
partners doing great things for veterans employment. All states receive
this one percent regardless of the state's performance. If a state is
performing well below the national average or well below their
negotiated goals, the state will continue to receive one percent as
outlined by the attachment. States not performing at a high level
should not receive performance funding. This money should be given to
states performing well to encourage innovation and enhance their
ability to provide long-term meaningful employment to veterans.
4. Promote Innovative Programs
DOL-VETS seems to be on the verge of many new helpful initiatives
for veterans. One example is recent efforts to help female veterans
with their unique employment struggles. Labor Department officials have
launched a new website devoted to issues and challenges affecting women
veterans. Since announcing this as a priority a new website was
launched that addresses potential barriers to employment that can
prevent women veterans from reaching their full economic potential. The
site also contains links with information on employment opportunities,
education and health care options and data from the Bureau of Labor
Statistics and other government agencies. Also, the Department of Labor
announced a position created solely to focus on female Veteran
employment issues. Since the Bureau of Labor Statistics 2012 Annual
Report on the employment situation of veterans noted that women veteran
unemployment rate continues to be higher than both their female non-
veteran counterparts and male veteran counterparts this increased focus
by Department of Labor
factors to texas' successful implementation of jvsg
1. Supportive Structure
Within the Texas Veterans Commission, the Veterans Employment
Services program has a clear and efficient organizational structure.
There is a direct reporting structure that gives the Texas Veterans
Commission the ability to be very responsive to either concerns or
policy changes. Changes or implementation of policies and procedures
are addressed in a timely and effective manner. There are not multiple
levels of supervision hindering the decision making process. Within the
program, the entire supervising structure is comprised of veterans,
basically veterans supervising veterans, which has proven to be
extremely effective. Many states have too many levels of supervision to
be able to be proactive or respond in enough time to make a difference.
Many other states also have non-veterans supervising veterans, which we
believe to be not as effective.
Such a supervising structure also allows for training to be
implemented in a timely manner. Our training is organized state-wide
ensuring identical training is provided to all Veterans Employment
Representatives regardless of their location. Training is one of the
most important aspects of performing at a high level. Consistent and
unified training objectives are communicated with optimal results due
to our supervising and reporting structure.
Response time is also improved with a streamlined supervisory
structure. When Veterans Employment Representatives have questions/
concerns or best practices, they can communicate to me as the Director
of Veterans Employment Services within moments. Quickly responding to
staff is extremely important and should not be understated. Staff wants
to be heard and wants to make a difference in the lives of Veterans and
their families.
Another item which falls into our structure is the ability to
assign challenging, but attainable performance standards to all
Veterans Employment Representatives. The current Veterans Employment
Staff performance standards were actually designed by a working group
comprised of Veteran Employment Representatives working to translate
DOL-VETS performance measures into individual standards. Employment
staff input is a vital part of any decision making process. Veterans
Employment Representatives have a clear understanding as to their role
within the Texas Veterans Commission and America's Job Centers. This
ensures that what is best for the veteran always stays at the forefront
of any decision.
2. No Competing Priorities
My singular purpose is ensuring veterans in Texas receive the
employment services they have earned by defending our country. There is
no more deserving of a group than veterans to receive our very best
services. Many Veteran State Coordinators oversee multiple programs
dividing the attention to Veterans Employment Services. Veteran
employment should be the complete focus of the Veterans State
Coordinator. Dividing focus with other programs is not providing
veterans with the attention and commitment they have earned and
deserve. The majority of the State Coordinators I have met and worked
with are extremely passionate about veterans employment issues.
However, many are not allowed to commit 100% of their time to this
effort.
The majority of the states have America's Job Center Managers in
control over Veterans Employment Representatives staff. While some of
these managers do a good job, many do not. This may not be the fault of
the center manager, but due to competing priorities. Veterans are a
small share of the population needing employment services. There are a
number of programs within America's Job Center which require much
attention. This takes away from 100% commitment and dedication to
Veterans Employment Services. The structure and mission of the Texas
Veterans Commission allows veterans needs to be the most important.
3. Veterans Serving Veterans
Assessing veteran's needs is an important first step in a Veterans
Employment Representative's job duties. This extremely important
function includes a one-on-one, in-depth evaluation to identify
significant barriers to employment. Veterans Employment Services staff
is specifically trained to identify these barriers and a plan to
address the needs. In Texas, all Veteran Employment Services staff
members are veterans themselves and there is immense value in veterans
being served and assisted by fellow Veterans. This makes every Veterans
Employment Representative a walking success story!
Veterans have proved by their very service their willingness to
work hard. In an economy with stiff competition for every job opening,
and reluctance on the part of many employers to even consider the
unemployed, the challenge is getting informed guidance from an honest
broker about how to get a foot in the door of an employer at a time
when the rules of looking for a job have changed dramatically.
Due to shrinking resources the trend in employment services is to
discontinue one-on-one job coaching in favor of group workshops and
internet tools. Sites like My Next Move (www.mynextmove.org) and the
Veterans Job Bank (www.nrd.gov) encourage Veterans to research
occupations, required skills, and open jobs using the Internet.
However, many Veterans are at a disadvantage relying solely on these
tools. Veterans find it difficult to have their valuable military
experience recognized in the private sector. Also, frequent moves often
leave Veterans without a network of professional contacts in the areas
they locate to separating from the military. Simple guidance about how
to get a foot in the door of an employer is usually what most veterans
need to get employed. Veterans have earned the right for one-on-one job
coaching and simply referring a veteran to internet sites is not
enough.
4. Focused Outreach to Employers
Not only is one-on-one service with veterans important, but one-on-
one service with employers can be just as important. Employer outreach
is another vital part of the Texas employment equation. Employers want
to know how to locate and find qualified veterans to fill job
vacancies. Many employers do not know each state has a Veterans
Employment Services program. More needs to be done to market our
services to the public with an emphasis on employers. Each state
receives funding from DOL-VETS to operate the JVSG program, but monies
cannot be used for marketing purposes. This leaves states to create
other methods of getting the word to veterans and business hiring
managers. Bottom line is that more employers and veterans need to know
who we are and what we do. According to a study performed by the
Society for Human Resource Management, 68% of Human Resource
Professionals polled were not at all familiar with Veterans Employment
Services. Only 4% were very familiar and utilize Veterans Employment
Services.
The Texas Veterans Commission enhanced the role of four Veteran
Employment Representatives designating them as Veterans Business
Representatives. The Veterans Business Representatives are
strategically located in Houston, Dallas/Fort Worth, San Antonio and
Austin and are vested in building relationships with large companies
and influential Texas employers in an effort to promote the hiring of
highly qualified Veterans. This initiative's strategic approach has
three phases. The first phase was to make initial contacts with Texas
Workforce Commission business service units, and managers. Outreach to
employers and employer organizations such as Society for Human Resource
Management and local Chambers of Commerce was essential in marketing
Texas Veterans Commission employment services. Through media coverage
and active marketing, the Texas Veterans Commission has been inundated
with employer phone calls and email correspondence from across Texas
and the nation, eager to hire skilled Veterans.
It is impossible to underestimate the value to a business of
efficiently finding the right fit for job vacancies, therefore phase
two includes increasing the hiring rate for Veteran job referrals.
Helping employers fill job vacancies provides the greatest potential to
positively affect employer relations and improve the well-being of all
Veterans. In coordination with the Texas Workforce Commission, our
staff will work to increase fill rates for Individualized Job
Developments and WorkInTexas.com job postings. From start to placement,
staff communicates that our goal is obtaining meaningful employment for
our Veterans. The message to Veterans, qualified spouses, community and
partners is ``we are here to help you find, get, and keep a job.'' Two
tools used to meet this objective are improved applicant tracking and
increased employer follow up.
A critical component of the placement process is increasing rapport
and confidence between the Veteran Employment Representative and the
employer. In order to be successful, employers must understand that the
Veteran Employment Representative is invested in successful
placements--placements where both the employer and Veteran employee are
satisfied. Providing quality hires is key to developing that confidence
with employers or potential employers throughout the state.
5. Building Strong Partnerships
The Texas Veterans Commission does not accomplish such high success
alone. Working relationships with DOL-VETS and the Texas Workforce
Commission are an essential part of Texas' achievements. Partnership
and collaboration are two of the most valuable tools any employment
service organization has. The non-Veteran Employment Services workforce
staff of our partners at the Texas Workforce Commission faces budget
challenges of their own. Each year funding is stagnant, while costs to
deliver services continue to rise. Each year boards must reduce the
number of staff to keep up with costs. Maintaining a positive working
relationship with Local Workforce Boards and working as an integral
partner in the Workforce Centers is crucial to overcoming this
challenge.
We also challenge our Veterans Employment Representatives to know
all of the resources available for Veterans within their local
community, including but not limited to the Veteran Service
Organizations. Some cities have many services available for Veterans to
help them overcome barriers to employment, while others do not. Our
staff is responsible for not only knowing the resources available, but
to have a point of contact. We do not simply refer a veteran to a
partner. Instead, we may make that connection for the veteran to ensure
they are taken care of properly.
challenges
There has been national concern with federal employment programs,
including the Veterans Employment Services program. These concerns have
led some in the Veterans community to support legislation which would
consolidate multiple job training programs into one, essentially
deemphasizing the Veteran Employment program and not giving Veterans
Employment the attention it deserves and needs to succeed. Veterans
services will always fall behind in a priority list towards providing
basic services to the general population. The successes the Texas
Veterans Commission has achieved in veterans locating and retaining
employment through our decision making process and guiding principles
should be considered as changes to veterans employment programs and
considered by other states Congress.
closing
We have been tremendously successful placing well over 38,000
Veterans into employment as reported by Department of Labor, Veterans
Employment & Training. However, the real success is the impact the Jobs
for Veterans State Grant has on Veterans and their families. I have a
quick story I would like to share with you regarding a personal
experience of mine when I was a Disabled Veterans Outreach Program
Specialist in an America's Job Center.
There was a homeless Veteran living in his car in the parking lot
of the center I was working at. I learned of this gentleman when I got
to work one day and he was looking for assistance. I learned of his
barriers to employment, which included homelessness, lack of food, no
place to clean-up, and a perceived lack of skills. We decided to work
on an employment plan together with strategies to overcome these
barriers. The key to this is that we worked on this plan together, a
partnership between the two of us.
We addressed housing by getting him a room at a faith-
based organization. This was a challenge as he didn't like some of the
restrictions that were in place by that organization.
We were able to get him some food.
Then we started an analysis of his skills and interests.
After much deliberation, truck driving came to the forefront.
We worked through available truck driving schools and
training facilities.
He was not used to being on a plan or having set goals to
achieve, but I believe made obtaining employment realistic.
At the end of the process, this Veteran was employed at an over-
the-road truck driving company and was able to live in his truck, which
seemed to be his biggest joy of the job. He would send me e-mails from
his truck whenever he was passing through East Texas thanking me and
how happy he was. This is what it's all about and makes me appreciate
my job even more. One-on-one service to Veterans . . . they have earned
this right!
__________
Prepared Statement of Ben Fowke
Thank you, Vice Chair Klobuchar. It is a pleasure to be here this
morning before this distinguished panel. I am especially delighted to
be with you and Chairman Brady, given our operations in both Minnesota
and Texas.
My name is Ben Fowke, and I am chairman, president and chief
executive officer of Xcel Energy, a public utility holding company
headquartered in Minneapolis, Minnesota. We serve 3.4 million
electricity customers and 1.9 million natural gas customers through in
eight Western and Midwestern states.
I appreciate this opportunity to talk about Xcel Energy's
commitment to hiring our nation's veterans. This is an important and
timely conversation for us to have, and I appreciate the Committee's
focus on this issue.
Roughly 12% of Xcel Energy's 11,000 employees are vets and veterans
are even better represented on our management team. While we are proud
of that performance, we want to do better. For example, we know that
our veteran employees generally are not post-9/11 vets, so absent our
intervention, we could lose ground. Our experience is similar to that
noted in this Committee's report on ``Building Job Opportunities for
Returning Veterans''--that is, the veterans we hire tend to be in the
older, mid-career cohort, as opposed to the younger, fresh-out
veterans. Yet over half of our hires each year are filled with people
in the 25-35 age group, so there is great opportunity to change that
result.
I am committed to driving that change and will be working within
our company, within our industry, and with policymakers like you so
that we become a model of a veteran-friendly company.
I will share with you my thoughts on those points, but let me start
with why we set that goal for ourselves: Simply put, hiring vets makes
good business sense.
Veterans have skills and leadership qualities that help us succeed
in our mission of delivering safe, reliable, and clean energy at an
affordable price. Our industry faces significant need for new,
qualified employees, as over half of our workforce is eligible to
retire over the next 10 years. We offer challenging, rewarding jobs at
competitive pay, and enhancing our ability to tap a pool of qualified,
skilled candidates will better position us when filling those
positions. It only makes sense that we find the best ways to identify,
attract, hire, and retain the talent that vets offer.
I will briefly highlight what we are doing both within our company
and within our industry, and then offer suggestions for how we can
improve veteran hiring practices.
Internally, we have made veteran hiring a priority throughout the
company and have worked to address various obstacles for doing so. One
key gap has been the ability to translate military skills to job
requirements, with the veteran unable to articulate his or her
experience and skills that fit our positions and the hiring leader
unable to recognize the military experience that is comparable to the
work we do.
To address this gap, we have developed a ``translator'' on our
career website to help both applicants and our hiring leaders better
understand the types of military experience and how they apply to our
various job openings. We are focusing on linesmen, plant operation and
maintenance workers, and engineers--all jobs where we expect to see
significant turnover in the coming years. We believe we should be able
to find good matches with the skills of returning veterans--but we need
to be sure we build a better understanding of military skill sets to
take full advantage.
Next, we need to provide a supportive environment to retain that
talent. Research shows that veterans stay in their first job after
service for two years, but they stay at their next position for over 10
years. That first shift from military to civilian life can be
complicated, as expectations regarding civilian work can be somewhat
unrealistic, as it is less focused on rank and title than the military.
We want to provide an environment that lengthens these tenures, and we
need all of our employees engaged in making that happen. To that end,
we have developed a series of orientation, training, and leadership
development programs to ease the transition.
Within our industry, we have worked to greatly open channels to
identify and recruit qualified veterans. We participate in partnerships
such as Troops to Energy Jobs, a collaborative effort between the
Edison Electric Institute and the Center for Energy Workforce
Development, to help us link to available talent. We have also found
that using our own veteran employees to recruit at career fairs has
proven very helpful in attracting candidates. Other channels and
partners, such as Military.com, Corporate Gray, and Hire Veteran, also
help us reach potential candidates to fill our available positions.
Finally, we are holding ourselves accountable by creating a
dashboard to measure our progress. We know that we focus on what we
measure, so we need to keep our eye on our ball and use our performance
statistics to identify other actions we can take to further close the
gap.
I am very pleased to report that our efforts are paying off. We
have been honored to receive awards for our veterans hiring practices,
including the 2013 ``Most Valuable Employer for Military'' by
CivilianJobs.com. G.I. Jobs listed Xcel Energy as a ``Top Military
Friendly Employer'' in 2012 and 2013. It is always nice to be
recognized, but we also know that there is much more that we can and
must do.
To that end, let me offer two suggestions for how we can better
work with you--the policymakers--to further strengthen the partnerships
to be even more successful.
First, anything that can be done to better identify the linkage
between a veteran's military experience and civilian jobs would be
helpful. Partnerships between civilian companies and veteran agencies
such as the Military Transition Assistance Program can improve the
vet's ability to communicate with companies more effectively, and
further support of those efforts would be welcome. Such efforts are
similar to those we have undertaken for college students in
collaboration with St. Cloud State University in Minnesota, helping the
students relate their experience to our job openings. I believe there
are models available for helping bridge the communication gap, and we
should work to put them in place.
Second, it would be helpful if military training could lead
directly to civilian certifications. In our industry, valuable
certifications include Certified Security Professionals, Plant Operator
Licensing, Professional Engineers, Certified Information Systems
Security Professional, CPAs or Certified Internal Auditors. In many
ways, such military and civilian jobs have similarities, and providing
avenues for veterans to achieve these kinds of certifications would
greatly help the transition. Our industry employs a number of highly
technical, skilled positions that are extremely competitive right now.
Having a larger pool of qualified applicants would be very helpful,
particularly as we address the retirement bubble we face.
Let me conclude by making clear that we are committed to this issue
at all levels of the business. I believe we have a tremendous
opportunity to have veterans continue their honorable service by
helping us keep the lights on every day, bringing their leadership and
technical skills to add value for our customers and shareholders. We
want to work with you and others to make this happen.
Thank you, and I'd be happy to take your questions.
__________
Question for the Record from Senator Pat Toomey to Mr. Deabay, Mr.
Mitchell, and Mr. Gallucci
I offered a bill in the last Congress that would require
the Department of Labor (DOL) to provide enhanced online resources to
veterans searching for jobs. In your opinion, what enhancements, if
any, could we make to websites available to veterans at DOL's One-Stop
Career Centers to aid their job searches?
__________
Response to Senator Pat Toomey's Question from Mr. Ryan Gallucci,
Veterans of Foreign Wars
I offered a bill in the last Congress that would require
the Department of Labor (DOL) to provide enhanced online resources to
veterans searching for jobs. In your opinion, what enhancements, if
any, could we make to websites available to veterans at DOL's One-Stop
Career Centers to aid their job searches?
Over the last two years, the VFW believes that the online resources
DOL Veterans Employment and Training Service (VETS) makes available to
veterans have significantly improved. DOL recently revamped its
American Jobs Centers websites, making them more easily navigable for
both potential employees and employers. Plus, veteran-specific
resources like the Veterans Jobs Bank through the National Resource
Directory (www.nrd.gov) and My Next Move for Veterans
(www.mynextmove.org/vets) have improved significantly, allowing a
veteran to find career opportunities, but also explore the job climate,
potential salaries and career outlooks.
However, the VFW agrees that VETS' online resources still have room
for improvement. One critical gap is the availability of military
Transition Assistance Program (TAP) resources for separated service
members. As we outlined in our prepared remarks, service members who
are still on active duty cannot reasonably anticipate all of the
challenges they may face once the uniform comes off. This means that
even if TAP offers all of the information a service member may need to
succeed after service, some of it will be ignored until a veteran
encounters a specific challenge after service.
The Department of Defense (DoD) has acknowledged this shortcoming
and is looking to make TAP resources available via its Joint Knowledge
Online (JKO) portal, allowing service members to access them on their
own time, should further questions arise. Unfortunately, JKO is not
available to veterans since JKO accounts are shut down at the end of
time in service. The VFW recommends housing TAP curriculum modules
either on the publicly facing VETS and VA websites, where anyone could
access them, or on VA's password-protected eBenefits portal, where only
enrolled veterans could access them.
The VFW has monitored the DoD/VA/VETS overhaul of TAP and we are
generally satisfied with curriculum improvements and plans to
periodically update it. However, the VFW also believes that veterans
who struggle to find career opportunities must have access to these
resources through either VA or VETS channels after service.
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