Lawmakers introduce workforce system reform measures

The Workforce Development Council of the U.S. Conference of Mayors reported Friday on significant legislative action pertaining to the public workforce system.   The report came through WDC’s weekly update.  The inclusion of this information on MissouriWorkforce.net does not imply an endorsement in favor or against the legislation reported from WDC.  This information is provided merely as a convenience.

Streamlining Workforce Development Programs Act 

On Thursday, December 8, members of the House Committee on Education and the Workforce introduced two proposals to reform the nation’s workforce investment system. Chairwoman of the Subcommittee on Higher Education and Workforce Training Virginia Foxx (NC) introduced the Streamlining Workforce Development Programs Act of 2011 (HR 3610), which aims to consolidate and streamline “redundant and ineffective Federal workforce development programs to increase accountability, reduce administrative bureaucracies and put Americans back to work.” Chairwoman Foxx’s legislation consolidates 33 programs into 4 funding streams or “Workforce Investment Funds”:

The bill authorizes $4.3 billion in formula funding annually to states for FY 2013-2018 for a Workforce Investment Fund to provide job training services to adults, unemployed workers and youth;

The bill authorizes $1.9 billion in formula funding annually to states for FY 2013-2018 for a State Youth Workforce Investment Fund to provide services to disadvantaged youth, with an emphasis on completing school;

$218 million in formula funding is provided annually to states for FY 2013-2018 to support a Veterans Workforce Investment Fund to serve veterans’ employment and training services; and

The bill authorizes $581 million annually in formula funding to states for FY 2013-2018 for a Targeted Populations Workforce Investment Fund to assist special populations including Native Americans and migrant and seasonal farmworkers.

The bill gives governors greater power to designate workforce areas, and requires state and local officials to establish common performance measures for all employment and training programs. It also permits states to submit single workforce development plans for all job training and related programs, including TANF and Perkins.

The bill repeals authorization for a number of current job training programs including Jobs Corp, Senior Community Service Employment Program (SCSEP), Wagner-Peyser programs and others.

Local Job Opportunities and Business Success Act 

Congressman Joe Heck (NV) also introduced the Local Job Opportunities and Business Success Act (HR 3611), to “strengthen the role of America’s job creators in workforce investment decisions and help workers receive training for jobs that are in demand.” The bill focuses on board composition and requires that 2/3 of the Board be employers.

The bill eliminates board mandates for WIA partner programs, including labor and local education representation, and requires local boards to reserve a minimum percentage of funding for training according to criteria set by the board.

According to Committee Chairman John Kline (MN) theses two bills, in combination with Congressman Buck McKeon’s (CA) Workforce Investment Improvement Act of 2011 (HR 2295) introduced in June 2011, will serve as the foundation for the committee’s work to reauthorize the Workforce Investment Act.

Bi-Partisan Jobs Creation Act

On Tuesday, December 6, Senators Susan Collins (ME) and Claire McCaskill (MO) announced agreement on a common-sense jobs bill, the Bi-Partisan Jobs Creation Act. The legislation aims to create jobs by cutting taxes on business and investing in the nation’s critical transportation infrastructure; and it is paid-for with a surtax on taxpayers earning more than $1 million annually and an end to tax giveaways to big oil companies. The proposal includes an extension of the payroll tax cut.

The plan, which the Senators’ said can earn broad bi-partisan support, aims to put Americans back to work by extending the tax cuts for small businesses and American workers; providing an infusion of tens of billions of dollars to rebuild and repair roads and bridges and help ensure a sage water supply; cutting federal red tape for manufactures and employers; and consolidating and strengthening federal job training programs.

The bill requires OMB to reduce the number of job training programs and administrative costs at the federal, state, and local level. All remaining programs would be consolidated under one federal agency, with half the resulting savings going to ITAs and the other half going to deficit reduction.  According to Senator McCaskill’s staff, this bill is not an endorsement of the Foxx WIA bill.