IAWP LEGISLATIVE INFORMATION March 2006 Archives Home Page ***Weekly Update*** From Legislative Committee Chair: Todd Kolden, Aberdeen Central Office SD Legislative Session 2006 Pertaining to Labor Signed by the Governor (as of 3/3/06) For complete description of all bills, log onto: 2006 Legislative Session • HB 1165: An Act to establish a workers compensation small claims procedure. • HB 1113: An Act to exempt claims related to wild land fire operations outside the state from certain workers' compensation provisions and to declare an emergency. • HB 1177: An Act to limit the amount in the Employer's Investment in South Dakota's Future Fund. • SB 0005: An Act to adjust certain participation standards for the South Dakota special pay retirement program. • SB 0006: An Act to define certain terms related to the South Dakota Retirement System. • SB 0007: An Act to clarify certain provisions regarding the level income payment option within the South Dakota Retirement System. • SB 0008: An Act to establish to whom the South Dakota Retirement System may make benefit payments on behalf of minors. • SB 0009: An Act to revise certain beneficiary provisions of the South Dakota Retirement System. • SB 0010: An Act to establish and revise certain provisions relating to South Dakota Retirement System disability benefits. • SB 0108: An Act to revise certain provisions defining employer contributions that are not deemed to be wages. 3/13/06 SENATE HEARING ON USDOL APPROPRIATIONS POSTPONED The Senate Appropriations Subcommittee on Labor, Health and Human Services, Education and Related Agencies hearing scheduled for March 8, 2006, has been postponed. Secretary of Labor Elaine L. Chao was to testify on the Department of Labor's Fiscal Year 2007 Budget request. The hearing is tentatively rescheduled for Wednesday, April 5. SENATORS WRITE A "DEAR COLLEAGUE" LETTER TO RESTORE FUNDING TO FY 2005 LEVELS FOR WIA AND ES Senators Maria Cantwell (D-WA) and Susan Collins (R-ME) have signed a "Dear Colleague" letter to ask others to send a letter to Appropriations Subcommittee Chairman Arlen Specter (R-PA) and Ranking Member Tom Harkin (D-IA), expressing support for restoring funding to Fiscal Year 2005 levels for WIA and Employment Service programs in the Fiscal Year 2007 appropriations. The Senators say the Fiscal Year 2007 budget proposal does not reflect America's economic reality. It calls for funding cuts to the core WIA formula funds by nearly $570 million, and the overall budget request for employment and training programs is $1 billion below funding levels enacted five years ago. The Senators go on to say if enacted, these cuts will force One-Stop Career Centers around the nation to close their doors and our ability to train our most valuable economic resource, our workers, will be greatly diminished, threatening our nation's economic security. LEGISLATION APPROVED TO EXTEND UNEMPLOYMENT ASSISTANCE FOR VICTIMS OF HURRICANES KATRINA AND RITA On Monday, March 6, the President signed legislation to extend unemployment assistance for victims of Hurricanes Katrina and Rita for 13 additional weeks. Most of the Katrina-related regular unemployment insurance claimants are scheduled to complete their benefits on Saturday, March 11. Most Rita-related benefits will end March 25. The current Disaster Unemployment Insurance (DUA) assistance was scheduled to expire on Saturday, March 4. The Katrina Emergency Assistance Act of 2005, S. 1777 (Public Law 109-176) extends the DUA program from 26 weeks to 39 weeks. The additional assistance is available to those covered individuals who are not eligible for regular unemployment assistance. About 90,000 persons in Louisiana will be affected by this extension of DUA, from $98 to $258 per week, and the DUA extension will be paid by the Federal government. The Louisiana Department of Labor call center, which handles unemployment insurance-related issues, will be open Saturday, March 11, from 9:00 a.m. to 3:00 p.m. (CST). Individuals needing assistance with their unemployment insurance claims can call toll-free (866) 783-5567. EMPLOYMENT STATUS OF HURRICANE KATRINA EVACUEES The Bureau of Labor Statistics reported today its Household Survey showed about 1.0 million persons age 16 and over had evacuated from their homes in August 2005 because of Hurricane Katrina. In February, about half had returned to where they were living in August 2005. About 58 percent were in the labor force. Their overall unemployment rate was 12.6 percent. For the evacuees who have returned home, their unemployment rate was the same as the national average at 4.8 percent. However, for those who were not living in their former homes, their unemployment rate was 22.6 percent. FEBRUARY NATIONAL UNEMPLOYMENT RATE 4.8 PERCENT Nonfarm payroll employment grew by 243,000 in February, and the unemployment rate was little changed over the month at 4.8 percent. A year earlier, the jobless rate was 5.4 percent. February's employment increase reflected gains in construction, mining and several service-providing industries. Employment in the construction industry was up by 41,000 in February, following a gain of 55,000 in January. The rise of employment in mining continued in support activities for oil and gas operations. Employment in health services continued to grow, it was up 18,000 and over the month, financial services added 22,000 jobs. Manufacturing employment was unchanged in February; it has decreased by 8,000 over the year. The job losses in motor vehicles and parts were offset by gains in petroleum products and computer and electronic products. HOUSE COMMITTEE PROVIDES $1 BILLION FOR VETERANS BENEFITS AND HEAT SUBSIDIES The House Appropriations Committee approved diverting more than $1 billion for veterans' medical care and subsidies for the poor. The provisions were added to a $91 billion measure funding overseas operations. The veterans' amendment would clear the way for the Veterans Administration (VA) to provide $275 million in emergency funds away from construction of a new VA hospital in New Orleans and toward financing health care for an influx of Iraq war veterans. The amendment also provides $750 million in heating subsidies for poor persons to use to help defray the high costs of fuel this winter. SENATE COMMITTEE ADDRESSES IMMIGRATION LEGISLATION The Senate Judiciary Committee reached an agreement on Thursday, March 9, on several aspects of how to enforce immigration law during markup on comprehensive immigration legislation. Committee members adopted more than a dozen amendments by voice vote. They included language committing more agents along the U.S.-Mexico border, extending and repairing a fence on the Arizona line, and requiring more oversight of contracts issued to foreign countries. The Committee also added a proposal by Senator Jeff Sessions (R-AL) which would prohibit state and local governments from requiring business to build shelters for day laborers. Senator Sessions said those rules essentially require businesses to aid in breaking the law. The Committee also added another amendment made by Senator Sessions, which would increase the number of authorized border patrol agents from 2,000 to 2,400 a year. Debate centered on the Department of Homeland Security's (DHS) inability to recruit and train new agents quickly enough to meet current demands. Senator Lindsey Graham (R-SC) pointed out that the Navy and Air Force are expected to downsize troops by 20,000 and 40,000, respectively, and the DHS might benefit from a liaison who could ensure those affected would be made aware of law enforcement job opportunities available at the agency. The Graham proposal was offered as a second-degree amendment and adopted. Next week, the Committee will address more substantive sections of a draft bill to overhaul immigration laws. The panel's two biggest challenges will be determining what to do about the estimated 12 million illegal immigrants living in the United States and how, or whether, to create a guest worker program. Especially controversial is language regarding penalties for those residing in the U.S. illegally. No vote was taken on an amendment by Richard J. Durbin (D-IL) to strip language in the legislation which would classify unlawful presence as a misdemeanor punishable by up to six months in prison. Under current law, illegal presence leads to a civil penalty. A bill the House passed in December would make it a felony. SD Legislative Session 2006 Pertaining to Labor Signed by the Governor (as of 3/10/06) For complete description of all bills, log onto: 2006 Legislative Session • HB 1165: An Act to establish a workers compensation small claims procedure. • HB 1113: An Act to exempt claims related to wild land fire operations outside the state from certain workers' compensation provisions and to declare an emergency. • HB 1177: An Act to limit the amount in the Employer's Investment in South Dakota's Future Fund. • HB 1197: An Act to revise certain provisions regarding the reduction of unemployment benefits. • SB 0005: An Act to adjust certain participation standards for the South Dakota special pay retirement program. • SB 0006: An Act to define certain terms related to the South Dakota Retirement System. • SB 0007: An Act to clarify certain provisions regarding the level income payment option within the South Dakota Retirement System. • SB 0008: An Act to establish to whom the South Dakota Retirement System may make benefit payments on behalf of minors. • SB 0009: An Act to revise certain beneficiary provisions of the South Dakota Retirement System. • SB 0010: An Act to establish and revise certain provisions relating to South Dakota Retirement System disability benefits. • SB 0108: An Act to revise certain provisions defining employer contributions that are not deemed to be wages. Week of 3/20/2006 SENATE BUDGET RESOLUTION PASSES; AMENDMENTS IMPACT WIA • This week, two Senate amendments were of great interest to the workforce development system. First, Senator Kennedy (D-MA) offered a Kennedy/Collins/Menendez Higher Education amendment to the Senate Budget Resolution (S. Con. Res 83) that would have included $750 million for the Workforce Investment Act (WIA) programs. The Kennedy amendment was debated on Tuesday, March 14, 2006, and was defeated by a 50-50 vote. • Second, Senators Specter (R-PA) and Harkin (D-IA) offered an amendment that would add $7 billion to Budget Functions 500, 550, and 600 (encompassing all programs within the purview of the Labor- HHS Appropriations Subcommittee). The intent of the amendment is to restore funding for education, health, social services, and Workforce Investment Act (WIA) programs to Fiscal Year (FY) 2005 levels. The Senate voted on this amendment on Thursday afternoon and the amendment to the budget resolution passed by a vote of 73 to 27. • The Specter/Harkin amendment would increase the amount allowed for Budget Functions 500, 550, and 600 in the budget resolution to what appears to be about $23 billion to over $30 billion. This is a major amendment in the budget debate that would make a dramatic difference in Senate funding prospects for key domestic programs, including WIA. Besides having his amendment approved, Senator Specter also received commitments from Majority Leader Bill Frist (R-TN) and Appropriations Chairman Thad Cochran (R-MS) that his committee, the Senate Labor, Health and Education Appropriations Subcommittee, would receive an extra $10 billion - $3 billion added by the Budget Committee and $7 billion by the Specter amendment. • On Thursday, March 16, the Senate adopted Budget Resolution (S.Con. Res 83) by a 51-49 vote. The resolution provides $2.8 trillion for FY 2007, adding more than $16 billion in spending to the President's request. As reported, the resolution includes the Specter amendment, which would restore WIA funding to the FY 2005 level. • The resolution included a provision that would pave the way for drilling in Alaska's Arctic National Wildlife Refuge (ANWR). House Budget Chairman Jim Nussle (R-IA) said the budget resolution in the House would not include an ANWR provision. It is reported the House budget resolution is unlikely to be as generous with conservatives hinting they might vote to restrain entitlement spending and resist exceeding the President's proposed budget caps. SENATE RAISES DEBT CEILING TO NEARLY $9 TRILLION; HOUSE PROVIDES MORE MONEY FOR WAR AND HURRICANE RELIEF • Also on Thursday, March 16, the Senate passed legislation allowing the government to borrow an additional $781 billion, preventing a default on Treasury securities. The legislation increases the $8.184 trillion federal debt limit to $8.965 trillion. The move allows Congress and the President to borrow to pay for the war in Iraq without raising taxes or cutting domestic programs. The Senate passed the measure (H.J. Res. 47) on a 52-48 vote and sent the bill to President Bush, who is expected to sign it. • Shortly after the debt ceiling was raised, the House passed a bill authorizing $92 billion in new money for war in Iraq and Afghanistan and for hurricane relief along the Gulf Coast. NEW AREAS OF SUBSTANTIAL UNEMPLOYMENT (ASUs) AND INTERIM PARTIAL FUNDING ALLOTMENTS • Because of an anomaly in the data collection and process of 2000 Census labor force data for some places where colleges are located, the number in the labor force, the number unemployed, and the percent unemployed were overstated in these places. States use these data to identify Areas of Substantial Unemployment (ASU). ASU data is a factor in the funding allotments to states for Workforce Investment Act (WIA) Youth and Adult Programs. The method of computing ASUs this year had to be revised to avoid use of erroneous census data. The revised method affected states and localities disproportionately. • In a Training and Employment Guidance Letter (TEGL) No. 20-05 issued by ETA this week, states are requested to recalculate their ASUs using 1990 Census data by April 14, 2006. The Bureau of Labor Statistics (BLS) issues the instructions to states on the development of the ASUs. NASWA staff has been advised by BLS that the April date will not be feasible and a June date is more realistic. • While that process is underway, ETA will provide interim partial allotments based on the minimum amount of funding states are guaranteed under the WIA formula. These provisions will ensure states receive a minimum amount equivalent to the higher of: o Ninety percent of the their prior year allotment percentage applied to the PY2006 total funds available for all states, or; o If higher, 0.25 percent of the PY 2006 total funds available for states. For the Adult program, with appropriated funds issued in two portions, July 1 and October 1, the interim partial allotment for each will be based proportionately on the state's full year minimum amount. • According to the TEGL, the interim partial amounts will be announced in early April. After revised ASU data are submitted by states, full formula allotments will be calculated and eligible states will receive their remaining formula funds. ETA will be working with the Census Bureau to produce special tabulations of 2000 Census unemployment data for use by states to develop ASUs for future years. ETA PROVIDES INFORMATION REGARDING PLANS FOR AJB • The USDOL Employment and Training Administration (ETA) sponsored a telephone conference on Friday, March 17, regarding the Administration's plans to discontinue support for America's Job Bank (AJB) as of July 1, 2007. • According to ETA, the environment has changed since AJB was started over a decade ago as most states have developed or purchased their own Internet-based job banks and the private sector has caught up and produced numerous nationwide job bank sites. The two major factors ETA weighed when making their decision to discontinue support for AJB were: (1) changes in the job bank market and (2) the costs associated with running AJB. • ETA is proceeding with plans to phase out AJB by June 30, 2007. ETA officials indicate they will work with states to assess thoroughly their individual situations and address any issues. ETA also will provide technical assistance to states. According to ETA, the impact on the rest of the CareerOneStop suite of electronic tools will be minimal. • One of the major concerns of states pertains to employers who want to post a job order in multiple states. ETA has said it will be working to create a system that allows employers to post a job order once and have it broadcasted to selected state job banks. States using the America's One-Stop Operating System (AOSOS) have a stronger reliance on AJB than most other states. ETA will meet with the AOSOS states and provide counsel on alternative solutions. SENATE COMMITTEE MAKING PROGRESS ON IMMIGRATION REFORM • The Senate Judiciary Committee members have been discussing immigration reform and report they are close to agreement on the two most difficult elements of comprehensive immigration legislation: how to design a system to regulate the flow of future workers into the country and what to do about the estimated twelve million illegal immigrants now living in the United States. • Chairman Arlen Specter (R-PA) says at least nine of the eighteen committee members support an agreement on how to handle potential immigrants who are currently in the United States. The temporary worker plan would create a path to permanent residency while requiring most temporary workers to leave the United States once, for one year, before returning. According to Senator Specter, the committee is near agreement on a plan to allow the twelve million illegal immigrants now in the United States to apply for permanent residency, though they would be considered after the approximately three million who have already applied for a green card. After final language is written, it is likely to be added to Senator Specter's draft legislation when the committee reconvenes on March 27. • Majority Leader Bill Frist (R-TN) plans to begin floor consideration of immigration legislation on March 27, which creates a timing issue since Senator Specter's committee will not be addressing their legislation until the same day. On Thursday, March 16, Senator Frist introduced his own legislation (S. 2454) and later filed a motion to invoke closure on a motion to proceed to his measure. Senator Frist's bill does not include a guest worker provision. • Senators John McCain (R-AZ) and Edward Kennedy (D-MA) have proposed legislation which would allow illegal immigrants who already are in the country to apply for a green card after six years. To qualify, the immigrant would have to pay a $1,000 fine, application costs and back taxes; learn English; and pass a background check. There would be fewer demands placed on those outside the country who want to come here to work; they could apply for a two-year temporary work visa. In most cases, they would be required to return to their home country before applying for a three-year temporary work visa which could be renewed once. An employer could petition for permanent resident status on behalf of an employee holding a three-year visa. The employee would be eligible to petition for permanent residency on his own behalf after the first year of a renewed three-year visa. A potential agreement would probably cap the number of guest worker visas at 400,000 in the first year. • Senator Frist said he plans to spend two weeks on immigration. If the Senate passes legislation at the end of the debate, it will go to conference with the measure the House passed three months ago. The House bill focuses on border security and internal enforcement. It would authorize extensive fencing along the southern border and criminalize illegal presence in the country. The bill does not contain any guest worker provisions. • On a related note to proposed legislation, the Congress of the United States Congressional Budget Office (CBO) has published several documents relating to immigration policies and statistics. The CBO documents are: o Immigration Policy in the United States (February 2006); o Global Population Aging in the 21st Century and Its Economic Implications (December 2005); o The Long-Term Budget Outlook (December 2005); o The Role of Immigrants in the U.S. Labor Market (November 2005); o Remittances: International Payments by Migrants (May 2005); and o A Description of the Immigrant Population (November 2004). ETA RELEASES GUIDANCE ON ALIEN LABOR CERTIFICATION • On Tuesday, March 14, 2006, ETA released a Training and Employment Guidance Letter (TEGL) No. 21-05, which offered guidance for the funding and management of FY 2006 annual grant allocations for the Alien Labor Certification program. The TEGL, which is accompanied by eight attachments, defines the roles of State Workforce Agencies, the amount of funding that will be allocated to support these activities, the necessary actions to request funds, and the required steps to comply with the grant. States will have to respond within thirty days of receipt to ensure allocation of remaining grant funds. States also will have to establish program priorities by identifying how program funds would be best used and by splitting the grant allocation between agricultural and nonagricultural activities informing the national office of their decisions in writing. WAYS AND MEANS SUBCOMMITTEE ON HUMAN RESOURCES HEARS NEW INFORMATION ON UI BENEFIT RECIPIENTS • Congressman Wally Herger (R-CA), Chairman, Subcommittee on Human Resources of the Committee on Ways and Means, held a hearing regarding new research on unemployment benefit recipients on Wednesday, March 15, 2006. Oral testimony was provided by the Sigurd Nilsen of the U.S. Government Accountability Office (GAO) who testified on "who collects unemployment insurance (UI) and for how long." • Unemployment Insurance (UI) is a State-Federal program under which benefits are paid to eligible laid-off workers who have a history of attachment to the workforce and have become unemployed through no fault of their own. Unemployment benefits are meant to provide partial, temporary wage replacement while the laid-off worker looks for a new job or awaits recall to his or her former position. United States Department of Labor (USDOL) information indicates over $33 billion in unemployment benefits was paid to nearly 8 million eligible workers in 2005. Employment-related information collected by the USDOL and the Bureau of Labor Statistics (BLS) include data on national and State unemployment rates, initial claims for unemployment benefits, average weekly benefit amounts, and unemployment trust fund balances, among other program data. Despite collecting substantial data on employment and earnings of about 97 percent of all wage and salary workers, the system collects little information on the characteristics of individuals who receive UI benefits. • A March 2005 GAO report, Unemployment Insurance: Information on Benefit Receipt, provided some information about individuals who receive unemployment benefits. Subsequently, the GAO completed additional analysis of data from the BLS National Longitudinal Survey of Youth, concentrating on factors associated with unemployment benefit receipt. The Subcommittee will review the GAO's latest findings about unemployment benefit recipients, which was released at the hearing. • The report discusses (1) the extent to which individual workers ever receive UI benefits, including the extent to which they receive benefits multiple times, (2) the types of workers who are more likely to receive UI benefits, and (3) what is known about the extent to which UI beneficiaries receive reemployment services and their reemployment outcomes. • The GAO analyzed a sample of workers born between 1957 and 1964, and found eighty-five percent of the sample experienced at least one period of unemployment during their working lives between 1979 and 2002. Of those who became unemployed, 76 percent were eligible for benefits however, 38 percent received benefits. House members asked why eligible workers are not applying for and collecting benefits. • Unemployed workers in general tend to have longer periods of unemployment if they receive UI benefits, have completed fewer years of education, and have lower earnings before they became unemployed. Other characteristics associated with longer unemployment duration include being African-American and not belonging to unions. • The GAO reported those who received benefits are more likely to be younger, female, and married, and have higher earnings before becoming unemployed, more years of education, and longer job tenures. UI-eligible workers from certain industries-such as mining and manufacturing-are more likely than other workers to receive UI benefits. • The findings also indicated UI claimants tend to have longer periods of unemployment -- twenty-one (21) weeks on the average. The length of unemployment for those not receiving UI benefits is on the average 8 weeks. In the area of helping UI claimants return to work, UI claimants have access to a variety of reemployment services, and although most states accept UI claims remotely by telephone or Internet, most states make use of UI program requirements to connect claimants with available services at various points in their claim. • Questions were raised during the hearing on the outcomes in terms of reemployment of workers receiving UI. One Member questioned: "Do states not want to know what the outcomes are?" Another asked: "Do unemployed workers return to better jobs if they are on UI longer?" Others asked: Should employment outcomes be included in the program as are included in Welfare programs? Suggestion on legislative changes that would include reemployment linkages for UI recipients was called for by Members. • Additional questions related to the model on which the UI system is based. With employment shifts away from manufacturing, more job changing and different employers during work lives, and more part-time employment, does the current system meet the needs of the current workforce? Is there too much flexibility allowed to the states? • The report also indicates federal reporting requirements for states' UI programs and for federally funded employment and training programs do not provide a full picture of the services received or the outcomes obtained by all UI claimants, and few states monitor the extent to which claimants are receiving these services or outcomes, in part because states' information systems have limited capabilities. GAO recommended that USDOL, working with the states, consider collecting more comprehensive information on UI claimants' services and outcomes. NGA ANNOUNCES TASK FORCE ON TANF -- GOVERNORS JOIN TOGETHER TO DEVELOP RECOMMENDATIONS FOR HHS • On Monday, March 13, the National Governors Association (NGA) announced an eight-member Task Force on TANF (Temporary Assistance for Needy Families). The Task Force, led by NGA Chairman Arkansas Gov. Mike Huckabee and NGA Vice-Chair Arizona Governor Janet Napolitano, was created to assist the Department of Health and Human Services (HHS) as it develops the regulations necessary to implement the newly reauthorized program. Governors hope to ensure that any regulations by HHS enable states to maximize state flexibility and build upon their past successes. • Other members of the Task Force include: California Governor Arnold Schwarzenegger; Minnesota Governor Tim Pawlenty; Nevada Governor Kenny Guinn; New Jersey Governor Jon Corzine; Pennsylvania Governor Ed Rendell; and Washington Governor Christine Gregoire. • "Ten years ago, governors worked with Congress to reform the nation's welfare system," said Huckabee. "A cornerstone of that partnership was the ability of states to implement innovative approaches and initiatives to assist families in need through greater state flexibility. Governors want to ensure the state-federal TANF partnership continues." Napolitano stated "The work of this task force will be critical to ensuring state flexibility, a basic tenet of welfare reform, is continued in the TANF program. Governors are committed to assisting needy families in reaching self-sufficiency through work, and the recommendations we develop will ensure we are successful in that endeavor." • TANF was recently reauthorized for 5 years in the Deficit Reduction Act (DRA) of 2005. FY 2007 APPROPRIATIONS: OUTLOOK AND PERSPECTIVE ON THE LOOMING DEBATE After taking its recess for the St. Patrick's Day holiday, Congress is scheduled to reconvene next week for a two-week work period. The Congress is then scheduled to break for two-weeks beginning on April 10 for the Easter holiday and to return for a month-long work period through Memorial Day. High on its list of priorities over the next two months and into the summer are the dual annual challenges of establishing a budgetary framework and determining appropriation levels for individual programs within this framework. The workforce system has not fared well in the recent battle for spending and was cut by 7 percent or nearly $200 million in FY 2006. Moreover, the Administration's budget request proposes additional cuts of 21 percent or more than $500 million in FY 2007. The narrow (51-49) approval by the Senate of its budget resolution (S. Con. Res. 83), including an amendment that would increase by $7 billion the total amount appropriators could spend on labor, health and human services and education budget functions. Although approval by the Senate of its budget resolution is a positive event for the workforce system because it could lead to an increase in spending, it hardly guarantees it. The budget process simply establishes the overall ceiling on total spending appropriators must stay below when determining spending for individual programs. In recent years, the Congress has failed to reach agreement on a budget resolution leaving appropriators without the overall ceiling. Some observers of the budget process are convinced already the House and Senate will not be able to reach agreement on a concurrent budget resolution this year. One reason for this opinion is the Senate's use of a budget maneuver to increase the labor, health and human services and education ceiling by $7 billion. The House opposed the Senate's budget maneuver in previous years because it would effectively increase available funding in FY 2007 by advancing funding from the next fiscal year (FY 2008). Similar increases were approved in previous annual budgets by the Senate using the same budget maneuver, but the House would not support them. Nonetheless, even if a budget resolution is not approved by both the House and Senate with the $7 billion ceiling increase, the Senate voted (73-27) in favor of the increase, highlighting the broad support for these domestic programs heading into the appropriations process. The appropriations process trumps the budget process because it is appropriators who decide specific amounts the workforce system receives for its operations. Some expect the House Labor, HHS and Education Appropriations Subcommittee to mark-up its FY 2007 spending bill in early June. Communicating with the members of this Subcommittee before the mark-up is important because the Subcommittee's decisions on spending will establish the starting point on future deliberations. NASWA will use the testimony it is developing to produce template letters states may send to their Congressional delegation. NASWA will provide states template letters and a talking point document outlining issues of significance next week. In particular, it will be important to communicate with members of the House Labor, HHS and Education Appropriations Subcommittee including Representatives: Regula (R-OH), Istook (R-OK), Wicker (R-MS), Northup (R-KY), Granger (R-TX), Peterson (R-PA), Sherwood (R-PA), Weldon (R-FL), Walsh (R-NY), Simpson (R-ID), Obey (D-WI), Hoyer (D-MD), Lowey (D-NY), DeLauro (D-CT), Jackson (D-IL) and Kennedy (D-RI). States should also begin to communicate with members of the Senate, particularly members of the Senate Labor, HHS and Education Appropriations Subcommittee including Senators: Specter (R-PA), Cochran (R-MS), Gregg (R-NH), Craig (R-ID), Hutchison (R-TX), Stevens (R-AK), DeWine (R-OH), Shelby (R-AL), Harkin (D-IA), Inouye (D-HI), Reid (D-NV), Kohl (D-WI), Murray (D-WA), Landrieu (D-LA) and Durbin (D-IL). GOVERNORS' TASK FORCE ON TANF SENDS RECOMMENDATIONS TO HHS The National Governors' Association (NGA) formed a task force of eight governors to work with the U.S. Department of Health and Human Services (HHS) as it develops regulations for the newly reauthorized Temporary Assistance to Needy Families (TANF) legislation. The task force worked with the American Public Human Services Association (APHSA) to produce specific recommendations. The goal of the task force is to work with HHS to ensure regulations promulgated by HHS allow states the flexibility needed to build upon past successes. In general, the recommendations call on HHS to define activities broadly that count towards the TANF participation rate, allow states to establish workable verification systems, and provide realistic timeframes to allow states to make legislative and programmatic changes in a thoughtful and careful manner. Task force recommendations include: HHS should develop regulations that define work activities broadly so states can engage participants in a manner that best supports entry into the workforce and promotes strong families. In preparing regulations, HHS should continue to recognize circumstances for which child-only cases should be excluded from the work rate calculation. Verification requirements developed by HHS should not be administratively burdensome on states, employers, or organizations working with TANF recipients. Timeframes for implementation should allow for a transition period before states must meet the requirements of the new regulations. In developing regulations, HHS should address other areas related to DRA [Deficit Reduction Act of 2005] implementation that are of key concern to states.