Homeless Veterans: Job Retention Goal Under Development for DOL's
Homeless Veterans' Reintegration Program (04-MAY-05,
GAO-05-654T).
The Department of Veterans Affairs (VA) has estimated that as
many as 250,000 veterans may be homeless on any given day. Many
other veterans are also considered at risk for homelessness
because of poverty, lack of support from family and friends, and
precarious living conditions in overcrowded or substandard
housing. One federal program designed to help these veterans is
the Department of Labor's (DOL) Homeless Veterans' Reintegration
Program (HVRP)--a grant program that provides funding for
employment and training services for homeless veterans. GAO was
asked to assist Congress with its consideration of HVRP
reauthorization by providing information on DOL's (1)
expenditures on HVRP grants and (2) measures and goals for
assessing the effectiveness of HVRP. GAO reviewed VA and DOL
documentation that included the amounts DOL expended for HVRP as
well as information on HVRP grantees and performance goals. GAO
also interviewed DOL program officials.
-------------------------Indexing Terms-------------------------
REPORTNUM: GAO-05-654T
ACCNO: A23362
TITLE: Homeless Veterans: Job Retention Goal Under Development
for DOL's Homeless Veterans' Reintegration Program
DATE: 05/04/2005
SUBJECT: Employment assistance programs
Federal funds
Federal grants
Funds management
Grant administration
Grant monitoring
Homelessness
Occupational retraining
Program evaluation
Training utilization
Veterans
Veterans employment programs
DOL Homeless Veterans Reintegration
Projects Program
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GAO-05-654T
Testimony
Before the Subcommittee on Economic Opportunity, Committee on Veterans'
Affairs, House of Representatives
United States Government Accountability Office
GAO
For Release on Delivery Expected at 2:00 p.m. EDT
Wednesday, May 4, 2005
HOMELESS VETERANS
Job Retention Goal Under Development for DOL's Homeless Veterans'
Reintegration Program
Statement of Cynthia A. Bascetta
Director, Health Care
GAO-05-654T
Mr. Chairman and Members of the Subcommittee:
We are pleased to be here today to discuss employment and job-training
services for homeless veterans through the Department of Labor's (DOL)
Homeless Veterans' Reintegration Program (HVRP). HVRP is a grant program
that funds employment and training services for homeless veterans, as part
of DOL's overall efforts under the Veterans' Employment and Training
Service (VETS). The Department of Veterans Affairs (VA) has estimated that
as many as 250,000 veterans may be homeless on any given day. Many other
veterans are also considered at risk for homelessness because of health
problems such as substance abuse and mental illness, poverty, lack of
support from family and friends, and precarious living conditions in
overcrowded or substandard housing. Multiple federal agencies such as VA,
DOL, and the Department of Housing and Urban Development (HUD) administer
programs that serve homeless veterans.
To assist the subcommittee with its consideration of HVRP reauthorization,
my testimony today provides information on DOL's (1) expenditures on HVRP
grants and (2) measures and goals for assessing the effectiveness of HVRP.
During the course of our work, we examined DOL's HVRP grant expenditures
for fiscal years 2000 through 2004 and its projected budgets for 2005 and
2006. We reviewed our past work on federal efforts to address the needs of
homeless veterans, including related veteran employment and training
services. (See Related GAO Products at the end of this statement.) We also
reviewed VA and DOL agency documentation that describes the services
provided to homeless veterans, interviewed DOL program officials, and made
a site visit to an HVRP grantee that provides training, education, and
housing services in Baltimore, Maryland. DOL provided us with information
on HVRP grantees, participants, and performance measures. However, we did
not perform independent verification of its data. We discussed the
information contained in this statement with DOL officials, who agreed
with its contents. We performed our work in April 2005 in accordance with
generally accepted government auditing standards.
In summary, DOL's expenditures for HVRP grants have increased from $9.5
million in fiscal year 2000 to over $18 million in fiscal year 2004. For
fiscal years 2005 and 2006, DOL estimates that it will expend over $20
million on HVRP grants each year. Currently, DOL oversees 79 HVRP grants
that help provide employment and job training services for homeless
veterans. In program year 2003 (July 1, 2003, through June 30, 2004), 63
percent of homeless veterans enrolled in HVRP funded programs entered
employment, which exceeds the 61 percent entered-employment goal in DOL's
fiscal year 2006 budget. DOL recently reported that for program year 2003,
35 percent of employed veterans served through the program retained their
jobs for 180 days. However, DOL has not developed a performance goal for
this job retention measure, but plans to do so for 2007. Moreover, DOL has
not provided the Congress with statutorily required reports on program
effectiveness.
Background
VA has estimated that one-third of homeless adults have served in the
armed forces and as many as 250,000 veterans may be homeless on any given
day.1 Further, according to VA, about 45 percent of homeless veterans have
mental illnesses, and slightly more than 70 percent have alcohol and drug
abuse problems.
Under VETS, DOL administers specific programs and activities designed to
help veterans obtain employment and training assistance. DOL carries out
its responsibilities through a nationwide network that includes staff in
each of its 10 regions and staff in state offices. VETS funds three types
of grant programs to support veterans-HVRP, the Jobs for Veterans' State
Grants Program, and the Veterans Workforce Investment Program. HVRP is the
only VETS program specifically targeted to homeless veterans.
HVRP was initially authorized in 1987, as part of the Stewart B. McKinney
Homeless Assistance Act (McKinney Act).2 Congress passed the McKinney Act
in part because of concerns that the needs of homeless people were not
being met beyond their immediate needs for food and shelter.3 The McKinney
Act was the first comprehensive law designed to address other needs of
homeless people such as physical and mental health care, education, and
job training. Currently, HVRP is authorized under the Homeless Veterans
Comprehensive Assistance Act of 2001 (HVCAA), which provides that the
Secretary of Labor shall conduct programs to provide job training,
counseling, and placement services to expedite the reintegration of
homeless veterans into the labor force.4
1VA bases its homeless veteran population estimate on the Urban
Institute's analysis of a 1996 survey of homeless clients and providers
conducted by the Census Bureau: Homelessness: Programs and the People They
Serve, Technical Report prepared by the Urban Institute for the
Interagency Council for Homelessness, Sept. 1999.
2See Pub. L. No. 100-77, S: 738, 101 Stat. 482, 530-31 (1987).
3The act's definition of homeless includes individuals who lack a fixed,
nighttime residence and whose primary nighttime residence is either a
supervised temporary shelter, institution, or a place not ordinarily used
for sleeping.
HVRP grants are intended to address two objectives: (1) to provide
services to assist in reintegrating homeless veterans into meaningful
employment within the labor force and (2) to stimulate the development of
effective service delivery systems that will address the complex problems
facing homeless veterans. There are four types of grants that are
administered under HVRP-urban, non-urban, intermediary, and grants to
serve previously incarcerated veterans. DOL awards urban grants to
applicants that provide services in the 75 most populated cities and
non-urban grants to applicants that provide services in smaller cities and
rural areas. Additionally, DOL awards grants to intermediaries that award
a substantial portion of their grants to eligible local grass roots
organizations to provide employment and training services. Finally, DOL
awards Incarcerated Veterans' Transition Program grants for serving only
previously incarcerated veterans at risk of homelessness.
Various organizations, for example state and local agencies, private
industry, and nonprofit organizations are eligible to receive grants under
HVRP. DOL assesses each application and awards grants based on a number of
factors including applicants' strategies for employment and retention of
employment, and program design as it relates to job training, counseling,
mentoring and other assistance to expedite the reintegration of homeless
veterans into the labor force. Currently, there are 79 active grants.
Grantees are required to provide an array of services utilizing a case
management approach that directly assists homeless veterans and provides
critical linkages for a variety of supportive services available in their
local communities.5 Job placement, training, career counseling, and resume
preparation are among the services that are provided by grantees.
Supportive services such as referral to medical and substance abuse
treatment; provision of or referral to temporary, transitional, and
permanent housing; and transportation assistance are also provided to help
meet the needs of homeless veterans.6
4See Pub. L. No. 107-95, S: 5, 115 Stat. 903, 909-10 (2001).
5Case management is a client-centered approach for the delivery of
intensive services. Case management is designed to prepare and coordinate
comprehensive employment plans for participants, to help ensure access to
the necessary training and supportive services, and to provide support
during program participation and after job placement.
Prior to fiscal year 2003, HVRP grants included 1 additional year of
optional funding after the year of award. Beginning in fiscal year 2003,
DOL awards grants for one year, with the option of additional funding in
each of the next two years based on grantee performance and the
availability of funds.7 DOL does not guarantee additional funding for
option years when it awards HVRP grants.
DOL Expenditures on HVRP Grants Have Increased Since Fiscal Year 2000
DOL expenditures for HVRP grants increased from $9.5 million in fiscal
year 2000 to over $18 million in fiscal year 2004. During fiscal year
2000, DOL awarded $9.5 million for 54 HVRP grants to provide employment
and training services for 7,800 homeless veterans. During fiscal years
2001 through 2003, DOL spent about $17.5 million annually to fund 81, 62,
and 77 grants, respectively, to serve about 14,000 homeless veterans each
year.
In fiscal year 2004, DOL spent about $18.6 million for HVRP grants-most of
it for urban and non-urban grantees. It was also the first year that HVRP
provided grants to intermediaries and, during that year, DOL expanded
grants specifically to serve previously incarcerated veterans-$900,000 for
intermediaries and $1.5 million for the Incarcerated Veterans' Transition
Program.8 HVRP is projected to grow modestly in fiscal years 2005 and 2006
from fiscal year 2004 funding levels. DOL estimates that it will spend
about $20 million annually on HVRP grants for fiscal years 2005 and 2006.
(Figure 1 shows DOL actual and estimated expenditures on HVRP Grants for
fiscal years 2000-2006.)
6Transitional housing is generally housing in which homeless persons live
for up to 24 months and receive supportive services that enable them to
live more independently. Permanent housing is long-term community-based
housing and supportive services for homeless persons with disabilities.
The intent of this type of supportive housing is to enable this special
needs population to live as independently as possible in a permanent
setting.
7HVRP grants are made for a program year that runs from July 1 to June 30.
8DOL reports that a demonstration grant was provided to serve previously
incarcerated veterans in fiscal year 2003.
Figure 1: DOL Actual and Estimated Expenditures on HVRP Grants for Fiscal
Years 2000-2006
DOL Has Established an Entered-Employment Goal; an Employment-Retention Goal Is
Under Development
For program years 2004 and 2005, DOL set an entered-employment goal of 58
percent for HVRP-defined as the percent of enrolled eligible participants
who were placed in jobs or otherwise obtained employment as a result of
grantee services. The Advisory Committee on Homeless Veterans and the
National Coalition for Homeless Veterans also use entered-employment rates
as a measure of the effectiveness of HVRP.9 DOL's 2006 budget indicates
that it plans to increase this goal to 61 percent. DOL reported to us that
for program year 2003, the most current year for which data are available,
HVRP grantees enrolled 13,060 homeless veterans and placed 8,191, or 63
percent, in employment-a rate that exceeds both DOL's current
entered-employment performance goal and its goal for next year.
9The Advisory Committee on Homeless Veterans is comprised of experts in
the treatment of mental illness, substance use, housing alternatives, and
vocational rehabilitation; representatives from community service
providers with qualifications to deal effectively with care and treatment
services for homeless veterans; veterans service organizations; advocates
of homeless veterans and other homeless individuals; previously homeless
veterans; and state veterans affairs officials. The National Coalition for
Homeless Veterans is a nonprofit organization that serves as a resource
for a network of nearly 250 community-based service providers and local,
state and federal agencies that provide emergency and supportive housing,
food, health services, job training and placement assistance, legal aid
and case management support for hundreds of thousands of homeless veterans
each year.
Sustained employment is another measure of program effectiveness. DOL
recognizes that it is necessary to evaluate and measure this long-term
result.10 HVRP grantees must follow-up 90 and 180 days after placement to
determine whether a veteran is in the same or similar job and must
obligate sufficient funds prior to the end of the grant performance period
to ensure that follow-up activities are completed and reported to DOL.
These 90 and 180 day follow-ups are fundamental to assessing the success
of the program, according to DOL.
However, while DOL requires grantees to measure and report on the
effectiveness at 90 and 180 days after placement, it has not established a
performance goal for employment retention for the program-the percent of
veterans placed in employment who retain their jobs. DOL's data for
program year 2003 show that while grantees achieved a 59 percent retention
rate at 90 days, the rate dropped to 35 percent at 180 days. An
employment-retention goal would provide DOL a better basis for assessing
whether grantees are providing or referring homeless veterans to the
services necessary for them to retain employment. Understanding why job
retention drops could help develop effective interventions and provide
information for establishing future performance goals. According to DOL,
it plans to establish a performance goal for employment retention for
fiscal year 2007.
The Congress has specifically recognized the importance of assessing the
outcomes of services provided to homeless veterans by requiring DOL to
report every two years on the effectiveness of HVRP. While DOL has taken
some steps, it has not provided the required reports. DOL officials told
us that the department plans to issue its first report to the Congress by
the end of fiscal year 2005. Providing this information to the Congress
will help with its oversight of the program and with its deliberations
regarding program reauthorization.
10See 70 Fed. Reg. 15899, 15901 (Mar. 29, 2005): Department of Labor,
Veterans' Employment and Training Service, Urban Homeless Veterans'
Reintegration Program Grants for Program Year 2005: Initial Solicitation
for Grant Applications.
Concluding Observations
Because employment retention is crucial to the overall success of
transitioning veterans from homelessness, it is important that DOL
continue to develop a realistic performance goal for employment retention
to help assess the success of HVRP. Establishing such a longer-term goal
for the program may help ensure that grantees provide veterans with
longer-term follow up services necessary to retain employment. This goal
along with the entered-employment goal will help DOL, Congress, and others
evaluate the impact that HVRP has on homeless veterans.
Mr. Chairman, this concludes my prepared remarks. I will be pleased to
answer any questions that you or other members of the subcommittee may
have.
Contacts and Acknowledgments
For further information regarding this testimony, please contact Cynthia
A. Bascetta at (202) 512-7101 or Michael T. Blair, Jr., at (404) 679-1944.
Michael Tropauer also contributed to this statement.
Related GAO Products
Veterans' Employment and Training Service: Flexibility and Accountability
Needed to Improve Service to Veterans. GAO-01-928. Washington, D.C.:
September 12, 2001.
Homeless Veterans: VA Expands Partnerships, but Homeless Program
Effectiveness Is Unclear. GAO/HEHS-99-53. Washington, D.C.: April 1, 1999.
Homelessness: Coordination and Evaluation of Programs Are Essential.
GAO/RCED-99-49. Washington, D.C.: February 26, 1999.
(290457)
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To view the full product, including the scope
and methodology, click on the link above.
For more information, contact Cynthia A. Bascetta at (202) 512-7101.
Highlights of GAO-05-654T, a testimony before the Subcommittee on Economic
Opportunity, Committee on Veterans' Affairs, House of Representatives
May 4, 2005
HOMELESS VETERANS
Job Retention Goal Under Development for DOL's Homeless Veterans'
Reintegration Program
The Department of Veterans Affairs (VA) has estimated that as many as
250,000 veterans may be homeless on any given day. Many other veterans are
also considered at risk for homelessness because of poverty, lack of
support from family and friends, and precarious living conditions in
overcrowded or substandard housing. One federal program designed to help
these veterans is the Department of Labor's (DOL) Homeless Veterans'
Reintegration Program (HVRP)-a grant program that provides funding for
employment and training services for homeless veterans. GAO was asked to
assist the subcommittee with its consideration of HVRP reauthorization by
providing information on DOL's (1) expenditures on HVRP grants and (2)
measures and goals for assessing the effectiveness of HVRP. GAO reviewed
VA and DOL documentation that included the amounts DOL expended for HVRP
as well as information on HVRP grantees and performance goals. GAO also
interviewed DOL program officials.
DOL'sexpenditures for HVRP grants have increased from $9.5 million in
fiscal year 2000 to over $18 million in fiscal year 2004. For fiscal years
2005 and 2006, DOL estimates that it will expend over $20 million on HVRP
grants each year. Currently, DOL oversees 79 HVRP grants that help provide
employment and job training services for homeless veterans.
DOL Actual and Estimated Expenditures on HVRP Grants for Fiscal Years
2000-2006
In program year 2003 (July 1, 2003 through June 30, 2004), 63 percent of
homeless veterans enrolled in HVRP funded programs entered employment,
which exceeds the 61 percent entered-employment goal in DOL's fiscal year
2006 budget. DOL recently reported that for program year 2003, 35 percent
of employed veterans served through the program retained their jobs for
180 days. However, DOL is in the process of developing a performance goal
for this job retention measure. This goal along with the
entered-employment goal will help DOL, Congress, and others evaluate the
impact that HVRP has on homeless veterans.
*** End of document. ***