IAWP LEGISLATIVE INFORMATION January/February 2005 Archives Home Page ***Weekly Update*** From Legislative Committee Chair: Todd Kolden, Aberdeen Central Office January 7, 2005 WIA REAUTHORIZATION LEGISLATION ON FAST TRACK IN HOUSE • House 21st Century Competitiveness Subcommittee Chairman Howard "Buck" McKeon (R-CA) introduced legislation (H.R. 27) this week to reauthorize the Workforce Investment Act (WIA). His staff said they do not expect the Subcommittee or the House Education and the Workforce Committee to hold hearings on the legislation, rapidly moving it through the House and sending it to the Senate early in 2005. However, members of the House Education and the Workforce Committee are not expected to be determined fully until late January or early February, delaying consideration of H.R. 27 for at least a month. • Staff on the Senate Health, Education, Labor and Pensions (HELP) Committee said the Senate will not move as quickly as the House in approving legislation to reauthorize WIA, but said reauthorization is a priority. Last Congress, the Senate approved legislation (S. 1627) to reauthorize WIA, but the legislation did not reach a conference with the House because of a dispute over party representation. It is unclear if this inter-party dispute will spill over into the 109th Congress delaying final consideration. The Bush Administration has not commented on H.R. 27 and is expected to set forth its workforce program priorities in its FY 2006 Budget proposal scheduled to be released on February 7. • Titled the Job Training Improvement Act, H.R. 27 is not yet available on the federal legislative tracking system. The new legislation is nearly identical to H.R. 1261, the legislation approved by the House last Congress to reauthorize WIA, but with a few technical changes and the inclusion of language to establish Personal Reemployment Accounts (PRAs). The Job Training Improvement Act would consolidate the WIA Adult, WIA Dislocated Worker and Employment Service (ES) funding streams into a single consolidated grant, distributed by formula to states and localities. • Representative Jon Porter (R-NV) reintroduced separate legislation this week to establish the PRA program. The stand alone PRA legislation (H.R. 26) may be pursued independently. Language to establish the PRA program was originally included in H.R. 1261 last Congress but was removed after many members, mostly those in the minority party, opposed it. H.R. 27 does not include language to incorporate President Bush's proposal to expand the role of community colleges in job training efforts, but a press announcement released by the majority party said they will incorporate it into the bill at some point during the legislative process.. LEGISLATION TO REFORM WELFARE INTRODUCED IN HOUSE • Legislation to reauthorize and reform the 1996 welfare reform law (P.L. 104-193) was introduced this week in the House and referred to the House Committee on Ways and Means. The legislation (H.R. 240) is not yet available on the federal legislative tracking system. A House Committee on Ways and Means press announcement indicates H.R. 240 is an updated version of legislation approved by the House last Congress and will serve as the basis for hearings and other consideration early in the 109th Congress. Welfare programs currently operate on a continuing resolution (CR) through March 31, 2005. CHAIRMANSHIP SELECTIONS HIGHLIGHT MAJORITIES DESIRE TO TIGHTEN DOMESTIC SPENDING • In selecting their new Chairman of the House Appropriations Committee this week, leaders of the House Majority wanted assurances their pick would work to tightly control domestic spending. Selected for the powerful position is California Congressman Jerry Lewis, who previously served as Chairman of the House Appropriations Subcommittee on Defense. Representative C.W. Bill Young (R-FL) was required to relinquish the chairman's gavel at the end of the last year because of term limits imposed on committee leaders. Representative Ralph Regula (R-OH) was also in the running for the open chairmanship, but will continue to serve as Chair of the House Appropriations Subcommittee on Labor, Health and Human Services (HHS) and Education. • Also this week, House Veterans' Affairs Committee Chairman Christopher Smith (R-NJ) was removed from his position in favor of Representative Steve Buyer (R-IN). Representative Smith's removal marks the first time since taking power ten years ago the majority party has removed a sitting chairman. Some House members said Smith's removal was due to his efforts to increase funding for veterans, which at times ran counter to requests by the Administration and House Majority leadership. February 1, 2005 SENATE INTRODUCES WIA REAUTHORIZATION BILL • On January 24, 2005, Senator Michael Enzi (R-WY) introduced the Lifelong Education Opportunities Act of 2005. This bill provides for amendments to the Workforce Investment Act (WIA) of 1998, which are included under Title IV - Higher Education and Lifelong Learning Opportunities; Subtitle B - Workforce Investment Act Amendments of 2005. • The original cosponsors of the bill are Senator and Majority Leader Bill Frist (R-TN) and Senator Mitch McConnell (R-KY). On January 24, 2005, the Senate Majority Leader at a press conference introduced the Majority's top ten legislative agenda items, which included the passage of S. 9. The full title of the bill states, "A bill to improve American competitiveness in the global economy by improving and strengthening Federal education and training programs, and for other purposes." S. 1627 from the 108th Congress was drafted in a bi-partisan process at the committee level. According to Senate staff, S. 9 was introduced by the Majority leadership and is almost identical to the S. 1627. The primary change is extending the dates beyond those stated in S. 1627. • Part of Senator Enzi's introduction of S. 9 states, "In this bill, we have also included language to reauthorize the Workforce Investment Act. That will help an estimated 900,000 unemployed workers each year get back to work and provide American workers with the skills they will need to be competitive in the global marketplace. That will help them land the good jobs that will be created in the years to come. Our legislation will also support the needs of businesses, including small businesses looking for skilled workers. In addition, the bill will strengthen the role of public education institutions in the Federal workforce preparation effort, including our community colleges." • The House has scheduled Subcommittee mark-up of their version of WIA reauthorization for Wednesday, February 9, 2005, at 10:30 a.m. IMMINENT CHANGES TO PLANNING GUIDANCE AND INSTRUCTIONS FOR SUBMISSION OF FIVE-YEAR STRATEGIC PLAN • On January 21, 2005, the Employment and Training Administration (ETA) released Training and Employment Guidance Letter (TEGL) No. 14-04, announcing the upcoming publication of proposed revisions to the Planning Guidance and Instructions for the submission of the five-year strategic plan for WIA Title I, Wagner-Peyser, as well as the WIA Unified Planning Guidance. ETA is currently seeking Office of Management and Budget (OMB) clearance under the Paperwork Reduction Act. The impending Federal Register Notice will include a thirty day opportunity for public comment. • To be eligible for FY 2005 WIA and Wagner-Peyser Act funding, states must have an approved WIA plan in place. ETA intends on publishing the planning guidance in final between March 15 and March 30, 2005. All new state plans will be due to USDOL on or before May 31, 2005. This TEGL is therefore of utmost importance as it informs the states of expected new themes to be included in the guidance, in order that states can begin their planning processes, and offers information on additional administrative requirements. The accompanying TEGL attachment includes a table of state plan contents that will be required once the planning guidance is published. Due to the fact that WIA reauthorization is likely in the near future, states are being asked to submit only the first two years of the five-year plan under the new guidance. • The TEGL indicates the revised planning guidance will include two major priorities: (1) to achieve reforms envisioned by WIA, and (2) to achieve the national strategic priorities and direction. The document then provides a list of objectives under each of those two priorities. Among other things, reforms envisioned by WIA include an integrated, seamless service delivery through comprehensive One-Stop Centers and a demand-driven workforce system governed by business-led workforce investment boards. In terms of national strategic priorities and directions, the TEGL lists items such as elimination of duplicative administrative costs, refocusing WIA youth investments on youth most in need, improved development and delivery of workforce information to support workforce investment boards, and discussion of the implementation of common performance measures across federal employment and training programs. February 7, 2005 HOUSE PANEL SCHEDULES MARK-UP OF WIA BILL THIS WEEK • The House Subcommittee on 21st Century Competitiveness is scheduled to mark-up legislation (H.R. 27) to reauthorize the Workforce Investment Act (WIA) on Wednesday, February 9 beginning at 10:30 a.m. eastern time. If approved by the Subcommittee next week, the legislation heads to the House Education and the Workforce Committee followed by the full House for consideration. Titled the Job Training Improvement Act, H.R. 27 was introduced the first week of the new Congressional session on January 4. House Majority party leadership decided not to hold hearings on the bill and have said their goal is to move it to the Senate before the Congressional Easter recess begins on Sunday, March 20. • The Job Training Improvement Act is nearly identical to H.R. 1261, the legislation approved by the House last Congress to reauthorize WIA, but with a few technical changes and the inclusion of language to establish Personal Reemployment Accounts (PRAs). The bill would consolidate the WIA Adult, WIA Dislocated Worker and Employment Service (ES) funding streams into a single consolidated grant, distributed by formula to states and localities. H.R. 27 includes language to change the distribution of consolidated WIA Adult, WIA Dislocated Worker and Wagner-Peyser block grants from the proposal submitted by the Administration last session. The bill would allocate 50 percent of the total distribution to states and 50 percent to localities. However, 50 percent of the state allocation is required to go to the local areas for the delivery of core services and to support state staff that provides core services in agreement with local boards. • H.R. 27 does not include parts of the Administration's proposal to give Governor local area designation authority, state block grant consolidation, or full waiver authority for USDOL. The legislation does not specify one-stop partners' contributions in support of the one-stop infrastructure. The legislation specifies that a portion of the funds by each one-stop partner is to be determined by the Governor, after consultation with the State Board. ETA CITES FISCAL IMPACT AS REAL OBSTACLE TO FUTURE REED ACT DISTRIBUTION • ETA Assistant Secretary Emily DeRocco in a letter this week to NASWA President Butch Lecuona wrote that while she agrees with keeping state and federal unemployment taxes as low as possible for employers, workers and the economy, a Reed Act distribution as advocated by NASWA would have "a real and negative impact on the Federal budget deficit." Assistant Secretary DeRocco's letter is in response to a November 23, 2004, letter from NASWA President Butch Lecuona that indicates budget scoring should not deter the federal government from eliminating excessive balances of the federal accounts of the federal unemployment trust fund. • In addition to a $9 billion Reed Act distribution, NASWA President Lecuona's letter supports the National Governor's Association (NGA) Employment Security System Policy which advocates repeal of the 0.2 percentage point Federal Unemployment Tax Act (FUTA) surtax. Assistant Secretary DeRocco responded that while she "understand(s) the logic of these policy proposals in the context of the Federal Unemployment Trust Fund, federal policy makers must consider them in the context of the entire federal budget." President Bush has stated as a policy goal, a desire to cut the federal budget deficit in half over the next four years. PRESIDENT BUSH PUSHES JOB TRAINING REFORM DURING HIS STATE OF THE UNION ADDRESS • Just over five minutes into his State of the Union Address on Wednesday night, President Bush again renewed his desire to train more workers and reform the nation's job training system. President Bush said, "we will help an additional 200,000 workers to get training for a better career, by reforming our job training system and strengthening America's community colleges." The Administration convinced Congress to appropriate $250 million for its Community College initiative in FY 2005 and H.R. 27, the House introduced WIA reauthorization bill includes placeholder language to formalize the program in law later in the reauthorization process. • Last year, President Bush released a fact sheet and focused a series of stops around the country on his agenda for improving the nation's workforce system. He stated a goal of training an additional 200,000 people for high-growth jobs through programs run by community colleges, unions, and businesses. The President expressed concern that not enough workers were being trained quickly enough to take advantage of new jobs being created and indicated that of the over $4 billion spent annually on WIA programs, only 206,000 adults were trained in 2003. • The President released his FY 2006 Budget request on Monday, February 7. The Budget documents will clarify the Administration's workforce policies. It was reported this week that the President's Budget will propose the consolidation of 18 community and economic development programs into a single program. Included in the consolidation is the Community Development Block Grant Program administered by the Department of Housing and Urban Development and used by cities and localities for low-income housing and business development projects. The Administration's consolidation would transfer program administration to the Commerce Department and reduce combined program appropriations by approximately $1.5 billion. HOUSE AND SENATE COMMITTEE MEMBERSHIP ESTABLISHED FOR 109TH CONGRESS • The House and Senate Committees with responsibility over NASWA member programs selected their members this week. These Committees include the: House Education and the Workforce Committee and Senate Health Education Labor and Pensions Committees, with jurisdiction of the Workforce Investment Act and a part of the Temporary Assistance for Needy Families programs; House Ways and Means and Senate Finance Committees, with jurisdiction of the Unemployment Insurance and part of the Temporary Assistance for Needy Families programs; House and Senate Appropriations Committees, with responsibility for making all federal spending decisions; and, the House and Senate Committee's on Veterans Affairs, with jurisdiction of Veterans' Employment and Training Service programs. ETA RELEASES GUIDANCE ON TICKET TO WORK ELIGIBILITY UNDER WOTC • The ETA released Training and Employment Guidance Letter 15-04 this week to provide state workforce agencies guidance regarding the Ticket to Work Program and its relationship to the Work Opportunity Tax Credit (WOTC). On March 2, 2004, President Bush signed into law the Social Security Protection Act of 2004. (P.L. 108-203). Section 405 of this Act makes the WOTC available to employers who hire certain participants in the Ticket to Work Program. Eligible Social Security Disability Insurance beneficiaries and disabled or blind Supplemental Security Income recipients who chose to participate in the Ticket to Work Program, may select an Employment Network (EN), which provides the individual with employment and vocational rehabilitation services and other supportive services. This provision does not apply prior to March 2004, the enactment date of P.L 108-203. February 21, 2005 BILL TO REAUTHORIZE WIA READY FOR FULL HOUSE CONSIDERATION • The House Committee on Education and the Workforce this week approved legislation (H.R. 27) on a party-line vote to reauthorize and reform the Workforce Investment Act of 1998 (WIA) (P.L. 105-220). The marathon mark-up session, largely a replay of the Subcommittee on 21st Century Competitiveness mark-up the week before, extended over two days. Ultimately, the Committee sent to the full House legislation closely resembling the bill approved by the Subcommittee the week before, but for four newly adopted amendments described below. House Majority Leader Tom DeLay (R-TX) said he will bring the bill to the House floor before recessing on March 20 for a two-week Easter break. • Subcommittee Chairman Howard "Buck" McKeon (R-CA) gained a unanimous consent vote approval of the most sweeping amendment to H.R. 27. The amendment came in the form of an amendment in the nature of a substitute, which replaces existing language in the bill with substitute language. The other three amendments approved by the Committee later in the mark-up amend McKeon's substitute amendment. • Chairman McKeon's substitute: o Authorizes $211 million for the Workforce Investment Act's (WIA) pilot and demonstration authority (of which $125 million could be used for the President's community-based job training grants) and also authorizes the Secretary of Labor to use up to $125 million more from WIA national reserve funds to fund the community-based job training grants. During the FY 2005 appropriations process, the President's community college proposal was funded in a similar fashion; o Clarifies that community colleges are the only training providers eligible to participate in the Community-Based Job Training grants; o Authorizes the Secretary of Labor, through pilot and demonstration authority, to fund projects carried out by states and local areas to assist adults or out-of-school youth in starting a small business; o Allows the Secretary of Labor to provide technical assistance to states that have failed to meet their state-developed performance indicators; o Allows Governors to consider whether training providers allow participants to attain a certification, credential, or mastery as they develop their criteria for determining eligible providers of training; o Allows state library systems to participate as optional partners in the one-stop delivery system; o Authorizes the American Indian Consortium to receive funds under the Client Assistance Program to provide protection and advocacy services to Native Americans, consistent with Assistive Technology Act enacted last year; o Allows programs under the Protection and Advocacy of Individual Rights program to retain program income generated by the system for up to one additional year after it was generated; o Requires the state vocational rehabilitation agency to coordinate with the lead agencies established under the Assistive Technology Act of 1998, as amended, to ensure that individuals with disabilities receive access to assistive technology devices and services; and, o Allows state vocational rehabilitation agencies to spend funds to support activities authorized under the Assistive Technology Act of 1998, as amended, to ensure that individuals with disabilities receive access to assistive technology devices and services. • Congresswoman Thelma Drake (R-VA) successfully added language to H.R. 27 to include service to veterans with disabilities as an indicator of one-stop performance. While offering the amendment, Congresswoman Drake said she understands the Jobs for Veterans Act (P.L. 107-288) already ensures veterans will be given priority of service at one-stops, but disabled veterans must also receive the highest level of workforce services. • Congressman Robert Andrews (D-NJ) successfully shepherded two amendments into H.R. 27 including one to promote microcredit loans and the other to establish business partnership grant demonstration projects. Congressman Andrews said communication about available microcredit loans could be improved if one-stops are encouraged to provide workers the contact information for microcredit lenders. According to Congressman Andrews, microcredit loans are made available to workers who wish to go beyond training. They help workers achieve self-sufficiency by encouraging the creation of their own business. The microcredit loan amendment developed with the help of Chairman John Boehner (R-OH), was agreed to by unanimous consent. • Congressman Andrew's second amendment ratified by the Committee would add to the US Secretary of Labor's demonstration projects by authorizing up to 10 competitive grants per year to expand "sector-focused training and workforce development in high growth, high wage industry sectors." Eligible grant recipients would be businesses or business consortia. The grants would be used to provide workforce-directed business services to: help employers in targeted industries advance the skill of their workers; provide capacity building by facilitating links to service providers targeted for their industry; conduct analysis of skills needed in the workforce to provide new market opportunities; develop training programs; develop skills standards; train adult and dislocated workers in skills needed to obtain or upgrade employment; disseminate information on high-growth, high-wage occupations, place trained individuals into high-growth employment; and, increase integration of program into the one-stop delivery system. HOUSE APPROPRIATIONS STAFF DISCUSS OUTLOOK ON SPENDING BILLS WITH WORKFORCE GROUPS • Minority party staff to the House Committee on Appropriations met last week with advocates from a variety of workforce system stakeholder groups to reestablish relationships and share information regarding the outlook on this year's appropriations schedule. The House Appropriations Subcommittee on Labor, HHS and Education is scheduled to hold a hearing with Secretary of Labor Elaine Chao on March 17. Public witnesses appearing before the Subcommittee will be called to testify throughout the first half of April. • Staff to the House Appropriations Committee disclosed the House Budget Committee's goal of finishing its budget resolution before the two-week Easter recess begins on March 20. If approved by the House and Senate, the concurrent budget resolution establishes spending ceilings for Congressional appropriators and general expectations on domestic and non-domestic spending. House Appropriations Committee Chairman Jerry Lewis (R-CA) is expected to expedite consideration of appropriations this year in an attempt to approve all thirteen spending bills before the beginning of 2006 Federal Fiscal year on October 1, 2005, something that has not been accomplished the last few years. • Priorities from FY 2005 including adequate funding for UI State Administration, Re-Employment Services and Employment Services. Week of February 28, 2005 House Committee Approves Legislation to Reauthorize WIA Sending to the Full House for Consideration The House Education and the Workforce Committee marked-up and approved legislation last week to reauthorize WIA (H.R. 27). The bill now goes to the House floor for consideration, likely before the Easter recess beginning March 20. DEBATE OVER INCREASING MINIMUM WAGE EXPECTED NEXT WEEK • The Senate is expected to take up bankruptcy overhaul legislation next week creating an opportunity for members inclined to raise the minimum wage. Senator Rick Santorum (R-PA) said earlier this week he will offer an amendment to increase the minimum wage by $1.10 over two years. According to a spokesperson for Senator Santorum, the amendment will likely be offered to counter a Democratic proposal. A spokesperson for Senator Edward Kennedy (D-MA) said the Senate Minority will propose an amendment to increase the minimum wage to $7.25 an hour phased in over 26 months. Senator Kennedy attempted to add a similar amendment to legislation last session, but it was blocked by the Senate Majority. The House and Senate Majorities had considered a minimum wage increase last Congress, but never formally introduced legislation. PROSPECTS FOR TANF REAUTHORIZATION APPEAR GOOD WITH SENATE TAKING EARLY LEAD • A number of sources in Washington reported this week that the Senate Finance Committee could move legislation to reauthorize the 1996 welfare reform law (P.L. 104-193) on March 9 or at least before the beginning of the Congressional Easter recess beginning on March 20. Senators Charles Grassley (R-IA) and Max Baucus (D-MT) the Chairman and Ranking Member of the Senate Finance Committee respectively, have been working since the beginning of the 109th Congress to gain bipartisan support for the legislation and could take an early lead on the House in moving a bill. Welfare programs currently operate on a continuing resolution (CR) through the end of March. The Congress is likely to approve another CR extending welfare programs for another three to six months before recessing March 20. • The Senate language to reauthorize the 1996 welfare reform law is included in S. 6, a broader legislative proposal introduced by the Senate Majority leadership a number of weeks ago. It is likely the language in S. 6 to reauthorize welfare would be reintroduced as a separate bill and pursued independently. The House introduced its welfare reform legislation (H.R. 240) the first week of 2005. ETA PUBLISHES WIA AND WAGNER-PEYSER STATE UNIFIED PLANNING GUIDANCE • The February 24 Federal Register includes the request from ETA for an extension and revision of the currently approved information collection for state Planning Guidance for state Unified Plans submitted under section 501 of WIA. The Federal Register notice reports all current WIA state plans will expire on June 30, 2005, and Congressional reauthorization of WIA is unlikely before this date. Therefore, the WIA state Unified Planning Guidance is designed to advise states on how to continue their WIA programs under Public Law 105-220. • OMB approval has been requested by March 15, 2005. Clearance is needed in order for ETA to obtain information from states choosing to submit a state Unified Plan that includes the WIA Strategic Five Year State Plan for Title I and Wagner-Peyser programs. The Federal Register notice published on February 7, 2005 differs from this new notice in that it applies to the "Stand-Alone" Planning Guidance. Training and Employment Guidance Letter 14-04, issued on January 21, 2005, informed the states of ETA's intent to publish in the Federal Register both the stand alone planning guidance and the unified planning guidance. The TEGL sets forth the anticipated timetable for plan development and submission, provides a summary of planning guidance policy highlights, discusses the national strategic priorities and direction, and addresses both waiver extensions and negotiated levels of performance.