IAWP LEGISLATIVE INFORMATION March 2005 Archives Home Page ***Weekly Update*** From Legislative Committee Chair: Todd Kolden, Aberdeen Central Office Week of March 7, 2005 HOUSE APPROVES BILL TO REAUTHORIZE AND REFORM WIA • The House this past week approved its bill (H.R. 27) on a party-line vote (224-200) to reauthorize and reform the Workforce Investment Act (WIA). Debate on the bill lasted about two hours with all amendments considered on the floor raised by members of the Minority party. As in the panel mark-up sessions held the month before, debate over allowing religious organizations that receive federal funds for the administration of WIA programs to hire individuals on the basis of religion took most of the allotted floor time. Each amendment offered by the Minority party was voted down on a largely party-line vote. The bill approved by the House and sent to the Senate is identical to the bill approved on February 16 by the House Education and the Workforce Committee. • The following paragraphs summarize information appearing in the February 8, 11 and 18, 2005 Bulletins to highlight notable provisions in H.R. 27. H.R. 27 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 members who provide core services in agreement with local boards. • H.R. 27 does not include parts of the Administration's proposal to give governors 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 a portion of the funds by each one-stop partner is to be determined by the Governor, after consultation with the State Board. The House bill would remove the calculation of program efficiency as a core indicator of performance for both adult and youth programs and would require states report on the cost per participant. Eligibility for WIA Youth services is further clarified - - out-of-school youth who have finished high school and have low basic skills can be eligible for participation as long as they are not attending school. The bill would eliminate the requirement of governors to designate a single state agency for management of the Labor Market Information System. • The bill would create authority in the demonstration section of WIA to authorize the USDOL to award community-based job training grants with available funding. The Congress appropriated $250 million for this initiative in its FY 2005 spending bill, available beginning July 1, 2005. Through the demonstration, the Secretary of Labor will award competitive grants to community colleges or a consortium of community colleges that will work in conjunction with the local workforce investment system and a business or businesses in a qualified industry. Grants awarded under the demonstration would be available for: the developing of rigorous training and education programs; training workers in the skills and competencies needed to obtain or upgrade employment in high-growth, high-demand occupations; disseminating information on high-growth, high-demand occupations; placing trained individuals in new jobs; and increasing the integration of qualified training providers with the activities of businesses and the one-stop delivery system to meet training needs. • The bill would require state plans to describe how individuals with limited English proficiency will be served and ensuring English as a second language courses are offered to individuals otherwise limited by English-based training. The bill would require the Secretary of Labor submit to the House Committee on Education and the Workforce and Senate Committee on Health, Education, Labor and Pensions the summary of each states quarterly financial reports submitted to governors. The bill gives priority for the awarding of competitive grants to train "realtime writers." A "realtime writer" is someone who assists the hearing impaired by providing the script for closed captioning of video programming. • The bill adds service to veterans with disabilities as an indicator of one-stop performance. Finally, the legislation includes language to require the promotion of microcredit loans and to establish business partnership grant demonstration projects. The business partnership grant demonstration projects 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. ADMINISTRATION RELEASES STATEMENT OF ADMINISTRATION POLICY ON HOUSE PASSED WIA BILL • Shortly after approval of H.R. 27, the White House released a Statement of Administration Policy generally praising the work of the House while expressing a desire to incorporate additional reforms in a final bill. The Administration's statement specifies that "WIA Plus" reforms would provide flexibility by consolidating four major USDOL state grant programs and allowing governors to supplement the federally consolidated grant with resources from a menu of several other federal training and employment programs. The Administration is negotiating inclusion of its WIA Plus proposal in a Senate bill to be introduced over the next two months (see article below). • The Statement of Administration expresses concern that H.R. 27 would not hold states accountable for meeting adult education performance levels. Additionally, the Administration says it supports the bill's provision to eliminate Senate confirmation of the Rehabilitation Services Administration (RSA) Commissioner and assist students with disabilities in transitioning from school to work, but the bill does not go far enough in strengthening accountability for improved results. • SENATE CONSIDERATION OF WIA BILL COULD BEGIN IN APRIL • A spokesman for Senator Michael Enzi (R-WY), Chairman of the Senate Health, Education, Labor and Pensions Committee said this week the Senate panel responsible for reauthorizing WIA will hold its mark-up in the next two-months. Given there are only two Congressional session weeks remaining in March, and Senator Enzi has yet to formally introduce his WIA reauthorization legislation, consideration of a Senate WIA bill in April is more likely. The Senate Majority Party leadership introduced S. 9 the last week of January containing language to reauthorize WIA and a myriad of other programs, but the Senate is more likely to move a separate bill containing only WIA provisions that has yet to be introduced. Senators Enzi and Kennedy (D-MA) are reportedly working on a bi-partisan bill with the hope the balance reached last session may be again repeated. SENATE DEBATE OVER MINIMUM WAGE INCREASE PUT OFF UNTIL NEXT WEEK • The Senate is expected to consider amendments early next week to bankruptcy overhaul legislation (S. 256) that would raise the nation's minimum wage. According to reports, Senators Kennedy (D-MA) and Santorum (R-PA) will choreograph consideration of their competing amendments on March 7. Senator Santorum's amendment would increase the minimum wage by $1.10 over two years and include language to provide tax cuts to small businesses. Senator Kennedy's amendment would increase the minimum wage to $7.25 an hour an increase of $2.10 phased in over 26 months. GOVERNORS APPROVE NEW WORKFORCE POLICY • The National Governors' Association (NGA) approved a new workforce policy this week establishing the influential group's commitment to strengthen the nation's workforce development system. The new NGA policy is effective through the winter meeting held in 2007. The policy supports an increase in the federal investment in WIA programs and supports increased state level flexibility to pool WIA, higher education, Temporary Assistance for Needy Families (TANF), and other sources of federal training money. With regards to mandatory partner contributions to the one-stop system, the policy recommends federal partner agencies develop a joint initiative to align federal regulations to consistently encourage support for and participation in the one-stop centers. • The NGA policy addresses the recent concern raised by the Administration over the number of individuals receiving training by requesting the USDOL work with governors to issue clarifying guidance to ensure enrollment in training is not blocked by a rigid application of WIA eligibility criteria for intensive services and training. The NGA policy indicates WIA should not mandate the amount of youth funding that must be spent on out-of-state or in-school youth. Further, the NGA policy asks the Congress to encourage the USDOL to coordinate with governors when working with a state's business community. COMMON MEASURES TO BE IMPLEMENTED JULY 1, 2005 • On February 28, the USDOL Employment and Training Administration released Training and Employment Guidance Letter (TEGL) No. 18-04 announcing ETA's intent to implement the common measures effective July 1, 2005, for WIA, ES, and VETS programs; and October 1, 2005, for TAA programs. • The TEGL informs states of ETA's intent to publish in the Federal Register proposed revisions to the performance reports for WIA, ES, VETS and TAA programs to encompass data necessary to report outcomes against the common measures. • Information is provided in the TEGL regarding the opportunity for public comments once the Federal Register is published. ETA PROVIDES UPDATE ON THE STATUS OF "EMILE" • TEGL 18-04 also describes ETA's plans for the implementation of the ETA Management Information and Longitudinal Evaluation (EMILE) reporting system proposal, announced in the Federal Register on July 16, 2004. The TEGL says ETA will continue taking steps toward the implementation of a comprehensive, streamlined reporting system across programs. • During the initial 60-day public comment period, ETA received many comments on the TEGL, has conducted a review of these comments and is working to reconcile them with the proposal. ETA has also initiated an assessment of the startup and ongoing costs to implement EMILE as proposed. o According to ETA, the workforce investment system should expect to see more information regarding EMILE throughout the next year. UNEMPLOYMENT RATE EDGES UP TO 5.4 PERCENT • Non-farm payroll employment rose by 262,000 in February, and the unemployment rate increased by two-tenths of one percentage point to 5.4 percent from January according to the Bureau of Labor Statistics (BLS) employment report released today. The BLS also revised downward its previous estimate of job growth for January to 132,000 from 146,000. Week of March 21 TANF PROGRAM EXTENDED UNTIL JUNE 30, 2005 AND WELFARE REAUTHORIZATION LEGISLATION PROGRESSES • The House Committee on Ways and Means, Subcommittee on Human Resources approved legislation Tuesday, March 15, that would rewrite the 1996 welfare reform law by requiring adult recipients to work more hours and providing $200 million annually for programs to promote marriage. The vote by the Subcommittee was 7-4. • The full Ways and Means Committee and the Education and the Workforce Committee are expected to mark up the bill in April. It is expected to go to the House floor shortly after those mark ups. • The legislation would reauthorize the 1996 law (Public Law 104-193) that was set to expire in October 2002. Congress has passed eight short-term extensions, and the House passed legislation (H.R. 1160) on March 14 that would extend the law a ninth time, through June 30. The Senate cleared the measure by voice vote Tuesday evening, March 15. • The House reauthorization bill, sponsored by Deborah Pryce (R-OH), would require adult recipients to work 40 hours per week, an increase of 10 hours over current law. It would mandate that at least 24 hours per week be devoted to "direct" work activities, such as private or public employment, on-the-job training or supervised community service. The remaining 16 hours could be education or other training activities. • The legislation would provide an increase of $1 billion in mandatory child care subsidies over the next five years. States currently receive $4.8 billion annually. It also would reduce the number of months - from twelve to three, in most cases - that recipients could count vocational education and training as a direct work activity. • The Minority criticized the bill for not providing states sufficient flexibility and funding to ensure that the remaining 2 million families on welfare could escape poverty. • Representative Jim McDermott (D-WA), the Ranking Minority Member on the panel, offered an amendment he said would provide states more flexibility to reduce their caseloads. The amendment, which was defeated 5-8, would have maintained the current work requirements of 30 hours per week and allowed recipients to count vocational training and education as a direct work activity for up to 24 months, or 18 months for rehabilitative services. Representative Pete Stark (D-CA) offered an amendment that would have increased child care subsidies by $11 billion over the next five years. It was rejected 4-8. • On March 9, the Senate Finance Committee approved its draft bill to rewrite the 1996 law. That measure, sponsored by Finance Committee Chairman Charles E. Grassley (R-OH), would increase child care subsidies by $6 billion over the next five years and require adult recipients to work 34 hours per week. HOUSE HEARING ON WELFARE PROGRAM FOCUSES ON WORK AND CHILD CARE • Witnesses before the House 21st Century Competitiveness Subcommittee called on Congress to build on the successes of the 1996 welfare reform law to further reduce welfare dependence, strengthen work requirements, and assist families with child care. • The March 15 hearing on "Welfare Reform: Reauthorization Work and Child Care," was scheduled to hear testimony on the effects of welfare reform and the Temporary Assistance for Needy Families (TANF) block grant. According to the Committee Chairman, Howard P. "Buck" McKeon (R-CA), the Committee also wanted to examine one of the most important work supports available to low income families - federal child care assistance. • Chairman McKeon's opening statement listed successes of the welfare reform legislation passed in 1996. He said the poverty rate has dropped nine percent, moving 1.4 million children from poverty. Welfare cases have dropped over 60 percent from their all-time high of 5.1 million families in March 1994 to approximately 2 million today. • Mr. McKeon said although the 1996 welfare reform has been extremely successful in reducing welfare caseloads, a majority of TANF recipients today are still not working for their benefits. According to the Health & Human Services Department's Sixth Annual Report to Congress, 58 percent of TANF adult recipients are not participating in work activities as defined in Federal law, which includes work and various other job training and education activities. • "While we move families into work, one of the key supports available is child care assistance. We know that affordable, reliable, quality child care is critical to allow mothers to obtain and retain employment," stated Mr. McKeon. • Wade F. Horn, Ph.D., Assistant Secretary, Administration for Children and Families, testified, "Although national caseloads are now less than half of what they were when TANF block grant was first established, we propose to maintain the current level of support for TANF of $16.5 billion each year for block grants to States and Tribes and an additional $319 million for Supplemental Grants to States that have experienced high growth and have historically low funding levels." • Dr. Horn said other policy changes that will increase State flexibility include: eliminating limitations on services for the unemployed by defining "assistance" so rules tied to such spending will not apply to child care, transportation, and other support services; allowing states to designate and obligate "rainy day funds;" and revising current restrictions on funds carried-over from one year to the next by allowing such funds to be spent on any service or benefit that achieves a TANF purpose. • Testimony also was provided by Curtis C. Austin, President of Workforce Florida, the State Workforce Investment Board. Mr. Austin explained how Florida used the flexibility authorized in the 1996 TANF legislation and the 1998 Workforce Investment Act (WIA) to restructure their organization, systems, and programs, and to create their one-stop delivery system. • Mr. Austin provided the Committee with several recommendations, "TANF Reauthorization should build on the existing flexibility in the current TANF legislation. Currently states have flexibility to design welfare service delivery models and discretion to use TANF funds for non-cash services such as child care, transportation and employment services... The focus of the TANF program services must be on helping all needy families move along the continuum to self sufficiency." • Other recommendations made by Mr. Austin were to fully fund the TANF block grant and supplemental grants to states; increase state flexibility in the use of funds, allow states to designate a contingency reserve with unobligated funds; unlock surplus funds that currently can be used only to pay benefits (not for child care, job search, transportation, training, etc.); allow spending on all families, reduce out-of-wedlock births and family formation allowed to count toward the MOE requirement; and provide a framework for state program integration demonstrations. Mr. Austin recommended TANF Reauthorization should first focus on outcomes and provided recommendations on how to measure performance accordingly. CHAO HIGHLIGHTS UI AND "WIA PLUS" AT HOUSE COMMITTEE ON WAYS AND MEANS HEARING ON THE FY2006 USDOL BUDGET • On March 16, Secretary of Labor Elaine L. Chao testified at a hearing before the House Committee on Ways and Means. Secretary Chao's testimony highlighted the Administration's WIA Plus proposal and several unemployment insurance proposals targeted at identity theft and income tax issues. • Secretary Chao said the USDOL Fiscal Year 2006 budget includes a request for an increase of $30 million to target identity theft. The $30 million is included in the $2.6 billion in discretionary funding for states to administer the unemployment programs. The proposal is designed to respond to several incidents in recent years in which false unemployment claims were filed using workers' stolen identities. • The USDOL budget also includes a request for $10 million for states to "ensure that UI beneficiaries are meeting re-employment goals." The money would be directed at local one-stop job training centers to interview recipients of unemployment benefits and ensure they are looking for work. • The USDOL proposes to allow the Internal Revenue Service to deduct from individuals' income tax returns any overpayment of unemployment insurance benefits. This proposal will probably be the most controversial item on the USDOL's unemployment agenda. • Other proposals on USDOL's unemployment agenda include allowing states to keep up to 5 percent of recovered unemployment payments to detect and deter further UI fraud, give private collection agencies up to 25 percent of recovered overpayments, and impose a fine of "at least 15 percent" on employers who pay their unemployment taxes late. USDOL also has proposed allowing states to borrow from the unemployment trust fund to update their information technology systems that help dispense unemployment benefits. • Chao also promoted the Administration's proposal that would allow states to consolidate into a single block grant up to nine separate funding streams for job training, including funds covering veterans and workers with disabilities. The proposal is called "WIA Plus." During her testimony, Secretary Chao repeatedly said consolidating funding "silos" for job training would make more resources available for job seekers. SENATE PANEL HEARS TESTIMONY FROM USDOL SECRETARY CHAO ON FY 2006 BUDGET • On March 15, U.S. Secretary of Labor Elaine L. Chao testified before the Senate Appropriations Subcommittee on Labor, Health and Human Services, and Education. The Secretary told the Committee that the President's new budget request includes additional resources for protecting workers' health, safety, pay benefits and union dues, as well as providing for new job training reforms to make federal-state training programs more flexible and effective. • The Secretary testified that the "President's budget will enable the department to build on its record-setting enforcement of our worker protection laws." Chao said "the department will continue to enhance worker safety and health and protect workers' pay, retirement and health benefits. We will take further steps to strengthen the reemployment rights of veterans and will seek to increase access to quality health benefits for workers and their families." • "This Nation's commitment to our veterans must be honored. No veteran should return home without the support that is needed to make the transition back to private life a smooth and successful one" was the Secretary's opening statement regarding services to veterans. The USDOL budget request for the Veterans' Employment and Training Service (VETS) is $224.3 million and 250 FTE. • The budget for the USDOL Employment and Training Administration is $9.2 billion in discretionary funds and 1,216 FTE. Secretary Chao said, "In 2006, we want to double the number of individuals in training under the Workforce Investment Act's major grant programs - including State formula grants and the new Community College Initiative - from 200,000 to 400,000." • Secretary Chao also stated USDOL is seeking legislation to reform the Workforce Investment Act (WIA) that would consolidate four compartmentalized programs into a single funding stream so that governors and local officials will be able to utilize resources in a way that best meets their communities' specific needs." Chao also described the WIA Plus proposal which would allow governors the option of adding resources from up to five additional federally-funded employment and training programs to this consolidated state grant. • Among the list of USDOL's accomplishments during FY 2004, Secretary Chao listed the introduction of a job training program for members of armed services wounded in the War on Terror; implementing the President's Community College initiative, which will help workers enhance their skills, connect with employers and find jobs; and launching the High Growth Job Training Initiative focused on helping workers train for and find jobs in sectors of the economy that are fast growing and experiencing a shortage of workers. VETERANS OVERSIGHT HEARING POSTPONED • The House Veterans' Affairs Subcommittee on Economic Opportunity "postponed until further notice" a March 17 scheduled oversight hearing on USDOL Veterans Employment and Training Services (VETS). • The intent of this hearing was to review the programs administered by VETS, including the Disabled Veteran Outreach Program (DVOP) and the Local Veterans Employment Representative (LVER) program. The implementation status of the Jobs for Veterans Act would have been the focus of the hearing. SENATE ACTIVITY MAY COME TO A STANDSTILL IF JUDICIAL FILIBUSTERS ARE PROHIBITED; ISSUE CALLED "NUCLEAR OPTION" • On March 15 the Senate Minority formally threatened to slow or stop Senate business if the Majority carries out their plan to change Senate rules and bar filibusters of judicial nominations. The Minority exempted military and national security legislation from the threat. The Minority has made similar remarks in recent interviews and speeches, but stepped up their actions by sending a letter to the Majority leaders and gathering on the Capitol's east steps to show solidarity on this issue. This issue is so contentious it is often referred to as the "nuclear option." • The Majority has proposed to change the rules that currently allow a filibuster, meaning supporters of a judicial nominee must have 60 votes to gain a final vote. A change in Senate rules requires 67 votes, but in this case, the Majority has a strategy planned which would only require a simple majority to make the change. • Many of the programs of interest to workforce agencies are being considered for reauthorization (WIA, TANF, Perkins, etc.); any reauthorization efforts, as well as the appropriation processes, would probably be stopped for an indefinite period of time if the Majority implements its plan and the Minority follows through with its threat. • Senate Majority Leader Bill Frist (R- TN) is preparing a compromise proposal to resolve the partisan impasse and to avoid a parliamentary showdown that would end Minority filibusters of contested candidates. The Majority Leader sent a letter this Thursday to Minority Leader Harry Reid (D-NV) asking for Reid's assistance in striking a deal. • The Majority Leader's letter did not include any details for a plan, but requested the Minority Leader entertain a deal that "takes account of complaints both parties have had with the confirmation process. It will protect the Constitution, validate our duties as Senators, and restore fairness to a process gone awry." • There is speculation that the compromise could resemble one being prepared by Senator Ben Nelson (D-NE) and Trent Lott (R-MS). This proposal would have all judicial nominees move through the Senate Judiciary Committee within a fixed timetable. All nominees sent to the floor eventually would receive up-or-down votes there, regardless of the level of opposition to them. News articles NASWA staff reviewed did not explain if an "up-or-down" vote would change the 60 votes needed to end a filibuster or a simple majority to pass. • Minority Leader Reid responded to Frist's letter by reiterating his willingness to negotiate a bipartisan solution. Reid said, "I welcome Senator Frist's pledge to me that he will not pursue the nuclear option if there are 'reasonable alternatives.'" SENATE REJECTS CUTS TO MEDICAID; HOUSE CUTS REMAIN • Late evening on Thursday, March 17, the Senate adopted its budget resolution (S Con Res 18), 51-49. The day was filled with long and unpredictable voting. In a surprise victory for the Minority, Edward M. Kennedy (D-MA), won an amendment that would raise the discretionary spending limit by $5.4 billion. • Seven Senate Majority members joined all 44 Minority members and one independent to adopt an amendment, 52-48, that would prevent the Medicaid program for the poor from facing major cuts. • On Thursday, the House adopted its own budget plan (H Con Res 95), 218-214, which calls for $69 billion in entitlement cuts. The different versions of entitlement spending between the House and Senate, especially for Medicaid, will be the primary issue for a House-Senate conference committee. HOUSE EDUCATION, WORKFORCE PANEL APPROVES ASSOCIATION HEALTH CARE PLAN BILL • On March 16, the House Education and the Workforce Committee passed legislation (H.R. 525) to allow small businesses to provide health insurance to their workers via association health plans (AHP). The Committee vote was 25-22. The Minority introduced several amendments to H.R. 525, all were defeated. • H.R. 525, the Small Business Health Fairness Act of 2005, was introduced in February by Representative Sam Johnson (R-TX). APHs are group health plans whose sponsors are trade, industry, professional chambers of commerce, or similar business associations. • Through preemption of state laws under the Employee Retirement Income Security Act of 1974 (ERISA), APHs would be exempt, with certain exceptions, from state regulation of health care insurance laws, including state consumer protection laws. • Proponents of the bill say allowing these associations to be federally regulated under ERISA would result in a uniform oversight system and lower health insurance costs for small firms, thereby lowering the number of uninsured. The Majority claims the legislation would cut the number of uninsured Americans by 8 million and would reduce premiums for health insurance offered to small firms by an average of 13 percent. • Opponents, however, say the bill would undermine state insurance laws and segment insurance markets leaving older and sicker small groups with higher priced health insurance as healthier groups leave state-regulated insurance markets to buy cheaper coverage through APHs. • APH legislation has been approved by the House five times since 1997, but it has never moved far in the Senate, which has held two hearings, but no markups on this issue during the same time period. WOTC PRAISED BY SENATE FINANCE • The benefits of the Work Opportunity Tax Credit (WOTC) and the Welfare-to-Work Tax Credit (WtWTC) were praised, but potential inefficiencies in the research and experimentation (R&D) credit were cited by some at a March 16 Senate Finance Committee hearing on the merits of extending tax provisions that are set to expire. • Senate tax and budget leaders have said they had at least the R&D credit in mind in carving out a $70 billion tax reconciliation figure in the budget resolution currently pending in the Senate. The WOTC and WTWTC are also ripe for extension, and combining and extending the two is the subject of an Administration proposal and bipartisan legislation that was introduced recently. • Finance Committee Ranking Minority member, Max Baucus (D-MT) and Committee member Senator Orrin Hatch (R-UT) introduced a bill on March 15 that would permanently extend and expand the credits for WOTC. The bill, S. 627, Encouraging Work Act of 2005, would combine the WOTC and WTWTC into one program to reduce administrative burden and complexity. The tax credits are currently authorized through December 31, 2005. • Dale Giovengo, Director of Human Resources at Giant Eagle Markets, Pittsburgh, told the Committee that the WOTC and WTWTC have both been effective in supporting the company's programs for employing individual with disabilities, welfare recipients, and other target group members. A representative of the New York Department of Labor made similar comments. Mr. Giovengo said making the credits permanent would avert the disruptions that occur when the programs expire, while merging the two tax credits would eliminate administrative burden allowing employers to track one program instead of two. CONGRESSIONAL CALENDAR • Te House or Senate might reconvene on Monday, March 21, to deal with legislation intended to stop the removal of a feeding tube from Terri Schiavo, an incapacitated Florida woman. Otherwise, both chambers are scheduled to take their two week "Spring District Work Period" recess until April 4. The House does have several hearings scheduled for Friday, March 18; none for workforce programs. March 11, 2005 SENATE PANEL APPROVES BILL TO REFORM AND REAUTHORIZE WELFARE PROGRAMS • The Senate Finance Committee this week approved on a non-partisan voice vote legislation to reform and reauthorize the 1996 welfare law (P.L. 104 -193), readying it for consideration by the full Senate. The legislation has yet to be given a bill number, but its content resembles to a large extent the language introduced by Senator Rick Santorum (R-PA) the first week of January (S. 6). In a press statement released after approval of the bill, Senate Finance Committee Chairman Chuck Grassley (R-IA) said, "states have been operating their welfare programs under a cloud of uncertainty for too long." Welfare programs currently operate on their ninth short-term extension through the end of March. Although the Senate's progress this week is a positive step forward in gaining approval of a reauthorization bill this year, Congress is expected to approve another three to six month extension before taking its two-week recess the end of next week. • The Senate Finance Committee approved legislation makes a number of changes to current law. With regards to work requirements, it would: increase the work participation rates for states five percentage points each year, from 50 percent in 2006 to 70 percent in 2010; eliminate the caseload reduction credit and replace it with an employment credit emphasizing "good" jobs; adopt a tiered approach, assigning credit for work along a range of hours, with standard hours set at 34; and, establish a separate lower standard for mothers with children under age six with standard hours at 24. With regards to state flexibility, the legislation would: allow states to claim partial credit for hours worked below standard hours; allow states to engage individuals in a broader range of activities, including job search, substance abuse treatment, post-secondary education and training and other activities; allow states to determine on a case-by-case basis whether to count families toward their participation rate in the first month of assistance. • A sticking point throughout deliberation of welfare reform last Congress was the amount spent on child care funding. The Senate Finance Committee this week agreed to an amendment offered by Senator Olympia Snowe (R-ME) to increase the amount spent on child care by $6 billion over the next five years. The federal government now provides $4.8 billion annually to states to subsidize child care. The House Majority and Administration have said they prefer a $1 billion increase. Senator Trent Lott (MS) said he could not support the Senate Finance Committee's new reauthorization bill because of its cost. The House has yet to act this year on its bill (H.R. 240) to reauthorize welfare, but was successful in quickly moving welfare reform legislation last Congress. The House Subcommittee on 21st Century Competitiveness is scheduled to hold a hearing next week titled, Work and Child Care Provisions of Welfare Programs, to renew the House effort in moving a welfare reform bill. HOUSE AND SENATE PANELS APPROVE BILLS TO REAUTHORIZE CARL PERKINS ACT • House and Senate panels this week approved separate bills to reauthorize the Carl D. Perkins Vocational Education Act of 1998 (P.L. 105-332). The $1.3 billion dollar program funds supplemental programs in emerging technologies and increased access for special-needs students. President Bush proposes eliminating the program saying it has "produced little or no evidence of improved outcomes for students despite decades of federal investment." The Administration's FY 2006 Budget calls for spending Perkins dollars on expanding testing and standards required under the No Child Left Behind Act (P.L. 107-110). • The House bill (H.R. 366) would merge Perkins funding with Tech-Prep, a program that provides specialized math and science courses to ease student's transition to the vocational school or community college. The Senate bill (S. 250) would not merge the programs but would give states more funds for state administrative costs. The House set a 2 percent cap. House Committee on Education and the Workforce Chairman John Boehner (R-OH) said the Senate Committee on Health, Education, Labor and Pensions has "too many former governors over there." SENATE DEFEATS AMENDMENTS TO INCREASE MINIMUM WAGE • The Senate this week defeated competing amendments to increase the minimum wage. Senators Kennedy (D-MA) and Santorum (R-PA) choreographed consideration of their amendments to increase the minimum wage by separate amounts. Senator Santorum's amendment would have increased the minimum wage by $1.10 over two years and include language to provide tax cuts to small businesses. Senator Kennedy's amendment would have increased the minimum wage to $7.25 an hour an increase of $2.10 phased in over 26 months. Congress last raised the minimum wage in 1997. LABOR SECRETARY ELAINE CHAO TO TESTIFY NEXT WEEK ON FY 2006 BUDGET • Labor Secretary Elaine Chao is scheduled to appear before both the House Appropriations Subcommittee on Labor, HHS and Education and the House Committee on Ways and Means. The hearings will focus on the FY 2006 Budget request for the Department of Labor. The House Subcommittee on Appropriations announced its hearing schedule this week and will schedule public witnesses on April 14, 19 and 21. NASWA submitted its request to testify before the Subcommittee three weeks ago and is developing its statement for the record in support of adequate appropriations for the nation's workforce system. LEGISLATION TO PERMANENTLY EXTEND WOTC AND WTW TAX CREDITS INTRODUCED IN SENATE • Senators Max Baucus (D-MT) and Rick Santorum (R-PA) introduced legislation this week to make the Work Opportunity Tax Credit (WoTC) and Welfare to Work (WtW) tax credit permanent in a move to encourage more employers to participate. The legislation, yet to be assigned a bill number, but titled the Encouraging Work Act of 2005, would combine the two tax credit programs to reduce administrative burden and complexity. According to a joint press release issued by the Senators, the two tax credits have assisted over 2.2 million individuals dependent on public assistance enter the workforce. The tax credits are currently authorized through December 31, 2005. USDOL ANNOUNCES REEMPLOYMENT SERVICE GRANT AWARDS • Labor Secretary Elaine Chao announced this week the awarding of nearly $18 million in funding to provide reemployment and eligibility assessment (REA) services to unemployment insurance (UI) recipients. As part of the REA project, one-stop career centers will require in-person interviews of certain UI recipients to assess their continuing eligibility for benefits and need for reemployment services. The assessments include a review of UI eligibility, the provision of labor market information, development of a work-search plan, and referral to reemployment services and/or training when needed.