This webinar will feature national policy experts who will:

• Provide the latest information on funding levels for FY2013 and the politics surrounding final decisions
• Discuss the potential impact that sequestration may have on workforce development and job training programs across the nation
• Recommend specific actions that workforce professionals can take to ensure that workforce programs remain strong, vital and effective
• Highlight resources that are available to the profession to assist in outreach and educational efforts

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The Senate Appropriations Committee approved its FY2013 Labor-HHS spending bill on June 14, but has not advanced any of the FY2013 appropriations bills to the floor.

The following are a few highlights of the House draft FY2013 Labor-HHS appropriations bill:

U.S. Department of Labor Programs

• Employment and Training Administration: The House draft provides $3.01 billion for the Training and Employment Services account, which funds most activities under WIA.
• Grants to States: The draft includes $2.60 billion for grants to states, level with the Senate bill and FY2012 funding. The House draft also includes language that would allow local workforce boards to transfer up to 30 percent between the adult and dislocated worker assistance State grant programs, if such transfer is approved by the Governor.
• Governor’s Reserve Fund: The House draft includes language that would allow Governors to reserve up to 15 percent of WIA State grant program funding if half of the total set-aside is used to support on-the-job and incumbent training to improve the skills of workers, avert layoffs, or lead to employment, and is delivered on a local or regional basis for in-demand occupations or industries.                       
• Adult Employment and Training: For adult employment and training activities, the House draft includes $769.46 million for FY2013, level with current funding and just below the Senate bill.
• Youth Employment and Training: For youth training programs, the draft includes $824.35 million, level with the Senate bill and just slightly below the current level of $825.91 million.
• Dislocated Worker Employment and Training: For dislocated worker assistance, the House draft includes $1.006 billion, slightly below the current level and the Senate bill (both at $1.008 billion).
• YouthBuild: The House draft includes $80 million, slightly above the Senate bill and the current funding.
• Workforce Innovation Fund: Although the Administration requested $100 million for FY2013 and the Senate bill includes $50 million, the House draft eliminates funding for the Workforce Innovation Fund.
• Job Corps: The House draft includes $1.68 billion for Job Corps, slightly below current funding and just above the Senate level.
• Community Service Employment for Older Americans: The House draft includes $448.25 million, level with current funding and the Senate bill.

U.S. Department of Health and Human Services Programs

• Head Start: The House draft includes $8.04 billion, just above the Senate level and current funding.
• Low Income Home Energy Assistance Program: The House draft includes $3.472 billion, level with the Senate bill and just below current funding.  The Administration had proposed a $452 million cut for FY2013.
• Community Services Block Grant: The House draft includes $677 million, level with the Senate bill and just below current funding.  The Administration had proposed a cut of $327 million in FY2013.
• Community Economic Development: The draft includes $29.94 million, level with FY2012 funding level and the Administration’s request.
• Rural Community Facilities: The draft includes $4.98 million for the rural community facilities program, level with current funding and $1 million below the Senate bill. The Administration had proposed to eliminate funding in FY2013.
• Social Services Block Grant: The House draft includes $1.7 billion, level with the Senate bill and current funding.

To view the Labor-HHS funding comparison chart, click here.

The House Labor-HHS Appropriations Subcommittee, which has not yet introduced a draft bill, is expected to mark up its version next week, with full Appropriations Committee consideration possible the following week. The House Republican leadership has allocated nearly $9 billion less than the Senate for programs funded under FY2013 Labor-HHS-Education appropriations.

The following are a few highlights of the Senate FY2013 appropriations bill:

U.S. Department of Labor Programs

• Employment and Training Administration (ETA): The bill provides $3.176 billion for the Training and Employment Services account, which funds most activities under WIA.  ETA programs are currently funded at $3.192 billion.
• Grants to States: The bill includes $2.60 billion for grants to states, level with FY2012 funding. As proposed in the Administration’s budget request, the Committee retains bill language that allows local workforce boards to transfer up to 30 percent between the adult and dislocated worker assistance State grant programs, if such transfer is approved by the Governor. In addition, a local board may award a contract to an institution of higher education or other eligible training provider if the board determines that it would facilitate the training of multiple individuals in high-demand occupations, if such contract does not limit customer choice.
• Adult Employment and Training: For adult employment and training activities, the bill includes $770.81 million, level with current funding.
• Youth Training: For youth training programs, the bill includes $824.35 million, just slightly below the current funding level of $825.91 million.
• Dislocated Worker Assistance: For dislocated worker assistance, the bill includes $1.008 billion, level with current funding.
• Governor’s Reserve Fund:  The bill would modify current law regarding the amount of WIA State grant funding that may be set aside by Governors.  As requested by the Administration, the Committee continues bill language authorizing the Governor of a State to reserve not more than 5 percent of the funds allotted to a State through the WIA State grant programs for statewide workforce investment activities.  The percentage was lowered from 15 percent to 5 percent in FY2011, and then maintained at that level in FY2012. The Committee adds new bill language allowing Governors to reserve up to 10 percent of WIA State grant program funding if half of the total set-aside is used to support on-the-job and incumbent training to improve the skills of workers, avert layoffs, or lead to employment, and is delivered on a local or regional basis for in-demand occupations or industries.
• YouthBuild:  The bill includes $79.68 million, level with current funding and the Administration’s request.
• Workforce Innovation Fund: The bill includes $49.90 million, level with current funding for competitive awards for workforce innovation activities.
• Job Corps:  The bill includes $1.673 billion for Job Corps, instead of $1.706 billion level in FY2012.
• Community Service Employment for Older Americans (COESA):  The bill includes $488 million for CSEOA, basically level with current funding.

U.S. Department of Health and Human Services Programs

• Head Start:  The bill includes $8.039 billion for Head start, $70 million above the current level.  In FY2012, HHS began implementing new regulations that will require Head Start grantees that do not meet certain performance standards to re-compete for funding.  This year, over $1.2 billion in grants will be re-competed.  The bill supports the implementation of the re-competitions as well as an increase for each grantee to help defray rising operational costs.
• Low Income Home Energy Assistance Program (LIHEAP):  The bill includes $3.472 billion for LIHEAP, level with FY2012 funding.  The administration had proposed a decrease of $452 million.
• Community Services Block Grant (CSBG):  The bill includes $677 million for CSBG, level with FY2012 funding.  The administration had proposed a cut of $327 million.
• Community Economic Development:  The bill includes $29.94 million, level with FY2012 funding level and the administration’s request.
• Rural Community Facilities:  The bill includes $5.98 million for the rural community facilities program, an increase of $1 million over current levels.  The administration had proposed to eliminate funding.
• Social Services Block Grant:  The bill includes $1.7 billion, level with FY2012 funding and the slightly lower than the Administration’s request.

The Senate Committee on Health, Education, Labor, and Pensions (HELP) has not yet formally introduced a reauthorization measure and it is unclear whether they will do so before the November elections.  If the Congress fails to pass a similar version in the House and Senate this year, the process will need to start over next year in the new Congress.

Resources for the Workforce Investment Improvement Act (H.R. 4297):

• To read H.R. 4297, click here.
• To read the House Education and Workforce Committee’s summary of the bill, click here.
• To watch a recorded webcast of the markup, click here.
• To view the amendments offered at the markup, click here. 

Highlights of the Workforce Investment Improvement Act (H.R. 4297) as reported by the National Skills Coalition:

• Consolidates more than 25 federally funded workforce development programs into a single $6 billion Workforce Investment Fund, which would be allocated to states and localities by formula.
• Eliminates all current membership requirements for state and local workforce boards, except for certain requirements relating to business and economic development representation, and locally elected officials
• Eliminates provisions relating to automatic designation of local workforce areas, allowing state boards to designate local areas in consultation with the governor
• Eliminates the requirement that local WIBs give priority for services to low-income individuals
• Authorizes states to develop unified state plans, and consolidate funding for other federal training and social services programs—including funding for TANF, Trade Adjustment Assistance, Community Services Block Grants, and programs under state unemployment compensation laws—into the state plans
• Sets common performance measures for the Workforce Investment Fund, adult education programs under Title II, and Vocational Rehabilitation programs under Title IV
• Reduces the governor’s set-aside for statewide activities from 15 percent to 5 percent of a state’s Workforce Investment Fund allotment
• Requires states to reserve no more than 18 percent of Workforce Investment Fund allotments for new State Youth Challenge Grants
• Requires states to reserve 2 percent of Workforce Investment Fund allotments for grants to serve adults with barriers to employment
• Mandates a minimum percentage of local area allocations that must be used for training services

During the mark-up, Higher Education and Workforce Training Subcommittee Chair Foxx (R-NC) offered a substitute amendment that made several changes to the bill, including:

• Removes Job Corps from the list of consolidated programs and instead authorizes the Secretary of Labor to hold 28 percent of funding under the Workforce Investment Fund to maintain Job Corps as a national program
• Eliminates Youth Challenge Grants
• Adds new definitions for:
• “out-of-school” and “at-risk” youth
•  “industry or sector partnership,” an “industry-recognized credential,” and a “recognized postsecondary credential”
• Adding examples of the types of individuals or organizations that may serve on state or local WIBs (including members elected officials, organizations that have experience working with youth, education and training providers such as community colleges and community-based organizations, and agency officials)
• Eliminates National Emergency Grants (NEGs) and reduces the funding that the Secretary of Labor shall hold at the national level from 2 percent of the total funds under the Workforce Investment fund to ½ of 1 percent, 50 percent of which shall be used for technical assistance and 50 percent of which shall be used for evaluation
• Creates a new “hold-harmless” provision for state and local allocations in FY2013

On April 17, the Committee, chaired by Rep. John Kline (R-MN), held a hearing on the Workforce Investment Improvement Act of 2012 (H.R. 4297), a reauthorization measure introduced by Reps. Virginia Foxx (R-NC), Howard “Buck” McKeon (R-CA), and Joe Heck (R-NV).

H.R. 4297 would consolidate more than 25 existing workforce programs into a single $6 billion Workforce Investment Fund, which would be allocated to states and localities by formula.  It would also require the Department of Labor to conduct an independent evaluation of its programs every five years.

The measure also proposes to:

• Eliminate all current membership requirements for state and local workforce boards, except for certain requirements relating to business and economic development representation, and locally elected officials;
• Eliminate provisions relating to automatic designation of local workforce areas, allowing state boards to designate local areas in consultation with the governor;
• Reduce the governor’s set-aside for statewide activities from 15 percent to 5 percent of a state’s Workforce Investment Fund allotment;
• Require states to reserve no more than 18 percent of Workforce Investment Fund allotments for new State Youth Challenge Grants;
• Require states to reserve 2 percent of Workforce Investment Fund allotments for grants to serve adults with barriers to employment;
• Eliminate the requirement that local Workforce Investment Boards (WIBs) give priority for services to low-income individuals;
• Set common performance measures for the Workforce Investment Fund, adult education programs under Title II, and Vocational Rehabilitation programs under Title IV.

The House Workforce Committee plans to hold additional hearings on the measure and may consider H.R. 4297 as early as May.  To learn more about this hearing and to read witness testimony, visit www.edworkforce.house.gov/hearings. To learn more about the Workforce Investment Improvement Act of 2012, click here.

View the NADO power point presentation.

• H.R. 2295, the “Workforce Investment Improvement Act of 2011,” introduced by Rep. Buck McKeon (R-CA):  This measure would increase flexibility in the services offered to job seekers and aims to eliminate barriers that prevent workers from immediately accessing training.  Text of the legislation can be found here.
• H.R. 3610, the “Streamlining Workforce Development Programs Act,” introduced by the Chair of the Education and Workforce Subcommittee on Higher Education and Workforce Training, Virginia Foxx (R-NC):  This measure would consolidate 33 of the 47 job training programs identified in a 2011 report by the Government Accountability Office on duplicative government programs.  A summary of the “Streamlining Workforce Development Programs Act” can be found here and the text of the legislation can be found here.
• H.R. 3611, the “Local Job Opportunities and Business Success (Local JOBS) Act,” introduced by Rep. Joe Heck (R-NV):  This measure would require two-thirds of Workforce Investment Board (WIB) members come from the business community, remove the mandatory partners from the boards, and require local WIBs to designate a specific amount of their funding for training.  A summary of the “Local JOBS Act” can be found here and the text of the legislation can be found here.

To view the special edition of NADO News click here.

Released October 2008, 8 pages

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