[Congressional Record Volume 141, Number 39 (Thursday, March 2, 1995)]
[Extensions of Remarks]
[Pages E501-E502]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


         INTRODUCTION OF THE EMPLOYMENT ENHANCEMENT REFORM ACT

                                 ______


                      HON. WILLIAM H. ZELIFF, JR.

                            of new hampshire

                    in the house of representatives

                        Thursday, March 2, 1995
  Mr. ZELIFF. Mr. Speaker, I rise today with my colleague John Kasich 
and 25 of our colleagues to introduce legislation to improve Federal 
job training.
  The present job training situation is a boondoggle of Federal 
bureaucracy. Hundreds of programs with different rules and 
administrative structures confuse the people they are intended to help 
and waste taxpayer money. Currently, States bear the brunt of the 
conflicting rules, regulations, and definitions from this senseless 
bureaucracy, and it is there that we must address the reform.
  The Employment Enhancement Reform Act will simplify and streamline 
the flow of Federal job-training dollars to the States to better serve 
unemployed Americans and hasten their reentry into the work force. The 
act consolidates over 90 Federal job training programs into one 
flexible block grant program.
  This discretionary block grant will be distributed to the States by 
formula at the direction of the Secretary of Labor using the formula 
from the Joint Training Partnership Act. States will have one set of 
job training definitions and regulations to implement, and one funding 
stream to monitor. The result: more resources
 devoted to job training services and fewer dollars being wasted on 
administrative costs.

  My bill will make the broken Federal job training program cheaper, 
more effective, more efficient, and more flexible. Today each of these 
90 programs have different rules, regulations, and definitions. A youth 
can be any age from 14 to 30. On-the-job training participants have 
different eligibility rules and reimbursement rates depending on 
individual programs. This causes chaos for participants, 
administrators, and auditors.
  Instead of hundreds of program regulations, States will have one set 
of job training definitions and regulations to implement, and one 
funding stream to monitor. They will have one State-established set of 
standards and definitions for program success rather than the multitude 
we have today. The responsibility for financial and programmatic audits 
will lie with State Governors. Federal philosophies and biases will no 
longer be mandated over State management of these programs. States will 
be responsible for demonstrating that funds are being spent effectively 
and efficiently to implement the goals.
  Consolidating the programs will create a pool of funds totaling 
approximately $11 billion. From this pool: $7.6 billion--70 percent--
would go to the States through formula grants; $539 million--5 
percent--would be distributed 
[[Page E502]] by the Secretary to States containing populations of a 
national, rather than a State concern; $2.7 billion--25 percent--would 
go to deficit reduction.
  Our legislation assures that States have the flexibility to target 
job-training funds where they are most needed. States will work in 
partnership with private industry to provide training that supports the 
labor markets that exist in that State--rather than be subject to 
nationwide labor markets and fund distributions that have nothing to do 
with their State.
  This act also repeals the 0.2 percent FUTA [Federal Unemployment Tax] 
surtax, adopted in 1976 and intended to be temporary. This repeal 
demonstrates to businesses that some Members of Congress are conscious 
of the mandates imposed by the Federal Government. This provision also 
takes another small step toward reducing the cost of regulation to 
business and encourages job growth.
  The benefit to the Federal Government of a single, more efficient job 
training effort is a reduction in the deficit by approximately $7 
billion over 5 years.
  The end result, Mr. Speaker, will be a program driven by results. 
More resources can be devoted directly to effective job-training 
services that put people back to work, and fewer dollars will be wasted 
on administrative costs
  These reforms are necessary to give Americans the skills our economy 
needs to grow and to get our welfare recipients back to work and back 
into the economy. State Governors are eager to develop partnerships 
with private industry and build successful programs. This legislation 
will make our job-training dollars work better and put people back to 
work. I urge my colleagues to join us in this effort.
  I enclose a summary of my legislation.
                   Employment Enhancement Reform Act

       The States shall use the money appropriated to the State's 
     discretion with the following requirements:


                              populations

       The states will continue to serve the populations that were 
     previously served by the consolidated programs and those that 
     will benefit from the services. Those populations are: 
     Disadvantaged Adults, Dislocated Workers, Veterans, Displaced 
     Homemakers, Disadvantaged Youths, Persons with Disabilities 
     and those requiring vocational education.


                             state council

       The Federal Government recognizes the benefits of 
     coordination between government and business in the areas of 
     job creation and worker retraining. States are encouraged to 
     establish one coordinating council to facilitate worker 
     transition from job to job or from unemployment to 
     employment.
       The council should advise the Governor and state 
     legislatures as to emerging economic and employment trends, 
     job creation opportunities, and other employment and job 
     training needs.


                           applicant process

       States shall centralize the intake of service applicants 
     (those in need of job training/placement assistance) to 
     facilitate the coordination of social services, of which job 
     placement and employment skills are a part.
       States are encouraged to utilize the concept of ``one-stop-
     shop'' as a means of facilitating centralization.


                               profiling

       The state shall be required to profile/evaluate all 
     participants in programs funded under this law, to determine 
     participation eligibility. The profiling should include an 
     evaluation of the candidate's employment readiness. Since 
     profiling is already done for unemployment benefits, this 
     should not be an added burden on states.
       States, as part of the profiling process, shall determine, 
     broadly, the readiness of each candidate to enter the job 
     market. These candidates shall be defined as:
       (a) Job-ready and in need of placement services; (b) job-
     ready but in need of minor skills enhancement; (c) non-job-
     ready and in need of remedial education and/or major skill 
     enhancement. Job skills should be addressed after the 
     candidate has demonstrated an education equivalent to a high 
     school degree.


                            program success

       Success for those participants needing job placement 
     services shall be determined by continuous employment for a 
     period of time of no less than six months, of at least 35 
     hours per week, with wages of no less than 65% of the 
     immediate previous wage level.
       Success for those participants needing minor skill 
     enhancement shall be:
       (a) Demonstration of proficiency of skill areas assessed as 
     deficient followed by full time employment; or (b) full time 
     employment for a period of time of no less than 6 months, of 
     at least 35 hours per week, with wages of no less than 65% of 
     the immediate previous wage level.
       Success for those participants in need of remedial 
     education shall be:
       (a) Demonstration of proficiency in education and skills 
     commensurate with a high school degree followed by full time 
     employment; or (b) full time employment for a period of time 
     of no less than 6 months, of at least 25 hours per week, with 
     wages of no less than 65% of the immediate previous wage 
     level.


             State Responsibilities/Reporting Requirements

       The States shall report to the Secretary of Labor at the 
     end of the first full fiscal year after date of enactment and 
     annually, by fiscal year, thereafter:
       (a) Total number of applicants for employment services, 
     total number of applicants provided some form of service, and 
     the post evaluation determination of each served applicant 
     (i.e. was applicant job-ready, in need of minor skill 
     enhancement, or in need of remedial education/major skill 
     enhancement).
       (b) Total number of successes for each post evaluation 
     determined group.
       (c) Length of time, from time of profiling to time of job 
     placement, for all applicants during fiscal year.
       (d) An accounting of disbursement of appropriated funds.
       (e) Report findings of audits performed during reporting 
     period.
       Given sufficient notice of request, States shall provide 
     any and all additional information requested by the Federal 
     Government.


                 secretary of labor's responsibilities

       If after consecutive reporting cycles, a state has failed 
     to demonstrate continued aggregate progress to the success of 
     the program, the Secretary of Labor shall abrogate funding in 
     part or in whole to that state. States will have an 
     opportunity to appeal this decision and such factors as 
     natural disaster or severe economic downturn could be 
     considered as justification for renewed funding.
       The Secretary of Labor shall annually report to Congress 
     the results of the Secretary's program oversight.


                   further restrictions/requirements

       None of the funds from this program shall be used for 
     stipends or direct payments to participants for participation 
     in the program except for needs-based transportation costs. 
     However, participants are not excluded from collecting funds 
     from other programs.
       The Secretaries of Labor will jointly administer 5% of the 
     funds of this Act for Indian tribes and migrant worker 
     populations. The funds should be distributed according to the 
     specific populations.
       States are encouraged to disregard gender in aiding the 
     applicant, and allow applicants to participate in education 
     and job search for non-traditional occupations.


                           deficit reduction

       This proposal generates approximately $7 billion in deficit 
     reduction over five years.


                                tax cut

       The ``temporary'' 0.2 percent FUTA surtax is repealed, 
     demonstrating to businesses that some members of Congress are 
     conscious of the mandates the Federal Government imposes and 
     are willing to reduce the cost of labor to business to 
     encourage job growth.


                   earned income tax credit awareness

       During the profiling and evaluation process of each 
     participant, the participant will be informed if they are 
     eligible for the Earned Income Tax Credit and will be 
     encouraged to receive the Earned Income Tax Credit on a 
     monthly, rather than yearly, basis. This is to help increase 
     the monthly income of eligible participants.
Vol. 141


WASHINGTON, THURSDAY, MARCH 2, 1995

No. 39


House of Representatives

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