APRIL 15, 2011 FISCAL 2011 FUNDING BILL PASSES HOUSE AND SENATE: WIA PROGRAMS CUT BY TEN PERCENT/STATE SET ASIDE CUT FROM 15 PERCENT TO 5 PERCENT This week, the U.S. House of Representatives and the U.S. Senate both passed legislation, H.R. 1473, to fund the federal government for the remainder of Fiscal Year (FY) 2011. Although the 2011 fiscal year began on October 1, 2010, none of the 12 regular appropriations bills for FY 2011 were enacted last year and government agencies have been funded through a series of seven stopgap measures referred to as "continuing resolutions," or CRs. The most recent continuing resolution was passed on April 8, just minutes before the government was scheduled to shutdown and only after an agreement was reached late that night on a long-term budget for the remainder of FY 2011 that would cut roughly $39 billion in FY 2011 spending. The legislative details of the legislation were released on Tuesday and, overall, the Workforce Investment Act (WIA) programs will be cut by roughly 10 percent. In addition, the Governors Reserve, known as the state set aside was reduced from 15 percent to 5 percent. However, as Congress examines further cuts and consolidation of workforce programs, NASWA is concerned the 10 percent cut and reduction to the state set aside represents just the first installment of cuts affecting state workforce agencies. The chart below and explanation of the following pages provides funding levels for Workforce Investment Act programs and other USDOL programs. TABLE 1: FISCAL YEAR 2011 CONTINUING RESOLUTION (HR 1473) FUNDING ANALYSIS OF SELECT PROGRAMS UNDER U.S. DEPARTMENT OF LABOR APRIL 14, 2011 FY 2010 ENACTED CHANGES TO FY 2010 IN H.R. 1473 BUDGET AGREEMENT Column 2 Column 3 ACROSS THE TOTAL BOARD 0.2% REDUCTIONS REDUCTION Column 1 REDUCTION TO FIRST QUARTER FUNDING* Column 4 PERCENT REDUCTIONS FY 2011 TOTAL UNDER H.R. 1473 WIA Adult Formula $861.5 ($90.5) ($1.5) ($92.0) (11%) $769.5 WIA Dislocated Worker Formula $1,183.8 ($120.0) ($2.1) ($122.1) (10%) $1,061.7 WIA Youth Formula $924.1 ($96.5) ($1.7) ($98.2) (11%) $825.9 Dislocated Worker National $229.2 ($5.0) ($0.5) ($5.5) (2.4%) $223.7 Reserve TOTAL CHANGE -- ($312.0) ($5.8) ($317.8) (10%) -- TOTAL ENACTED $3,198.6 -- -- -- -- $2,880.8 Workforce $0 -- -- -- -- $124.8 Innovation Fund *The WIA formula grant programs operate on a Program Year from July 1 through June 30. Program Year 2011 begins July 1, 2011 and ends June 30, 2012. NASWA BULLETIN APRIL 15, 2011 Page 1
CONTINUED: SUMMARY OF WORKFORCE PROGRAM REDUCTIONS TOTAL REDUCTIONS: $317.8 MILLION (COLUMN 3 IN TABLE ONE ON FIRST PAGE) The Workforce Investment Act (WIA) formula grants were reduced by approximately $318 million in 2011 (see column 3 in Table One on the first page) compared to 2010. The bulk of the cuts were made in the first quarter, July through September 2011 as reflected in column 1 of Table One. In addition, an across-the-board (ATB) cut of 0.2 percent was applied to all fiscal year 2011 programs as reflected in column 2 of Table One. (Table 2 below provides a comparison of 1st quarter funding for Program Year 2011 compared to 1st quarter funding for Program Year 2010. The advance appropriation from October through June for Program Year 2011 is reflected in the last column in Table 2.) WIA ADULT: $92 MILLION REDUCTION (COLUMN 3 IN TABLE ONE ON FIRST PAGE) For the WIA Adult program, the bulk of the funding cuts apply to the first quarter (July, August, and September) of Program Year 2011. WIA Adult received a PY 2011 1 st quarter appropriation of $59,040,000 under H.R. 1473, available July 1, 2011, compared to the PY 2010 first quarter appropriation of $149,540,000 (see Table Two to right). The advance appropriation (October through June) was kept at the current 2010 levels minus the.2 across the-board cut. The advance appropriation for WIA Adult in 2010 was $712 million. In addition, the state set-aside was reduced from 15 percent to 5 percent for PY 2011. WIA DISLOCATED WORKERS: $122.1 MILLION REDUCTION (COLUMN 3 IN TABLE ONE ON FIRST PAGE) TABLE 2 THE TABLE SHOWS FUNDS FOR THE FIRST QUARTER OF 2011, BEGINNING JULY, 2011 COMPARED TO THE PRIOR YEAR S FIRST QUARTER. THE ADVANCE FUNDING (OCTOBER THROUGH JUNE) IS LISTED IN THE LAST COLUMN. PROGRAM WIA ADULT WIA DISLOCATED WIA YOUTH NATIONAL RESERVE 2011: 1ST QUARTER APPROPRIATION 2010: 1ST QUARTER APPROPRIATION 2011: ADVANCE APPROPRIATION $59,040,000 $149,540,000 $712,000,000 $203,840,000 $323,840,000 $860,000,000 $827,569,000 $924,069,000 STATES ARE ADVANCED YOUTH FUNDS IN APRIL FOR THE YEAR $24,160,000 $29,160,000 $200,000,000 As with WIA Adult, the bulk of the funding cuts for Dislocated Workers apply to the first quarter (July, August, and September) of Program Year 2011. WIA Dislocated Worker received an appropriation for the first quarter of PY 2011 of $203,840,000 under H.R. 1473, available July 1, 2011 compared to the 2010 first quarter appropriation of $323,840,000 (see Table Two above). The advance appropriation (October thorough June) was kept at the current levels minus the.2 across-the-board cut. The advance appropriation for WIA Dislocated Worker in 2010 was $860 million. In addition, the state set-aside was reduced from 15 percent to 5 percent for PY 2011. WIA YOUTH: $98.2 MILLION REDUCTION (COLUMN 3 IN TABLE ONE ON FIRST PAGE) The WIA Youth program received an appropriation of $827,569,000 under H.R. 1473 available April 1, 2011 through June 30, 2012 minus the.2 across-the-board cut. In 2010, WIA Youth received $924,069,000. In addition, the state set-aside was reduced from 15 percent to 5 percent for PY 2011. WIA NATIONAL RESERVE: $5.5 MILLION REDUCTION (COLUMN 3 IN TABLE ONE ON FIRST PAGE) Like the other programs, the bulk of the funding reduction applies to the first quarter (July, August, and September) of Program Year 2011. The National Reserve received an appropriation for the first quarter of PY 2011 of $24,160,000 under H.R. 1473 available July 1, 2011 compared to the 2010 first quarter appropriation of $29,160,000 (see Table Two above). The advance appropriation for the National Reserve (October through June) was kept at the FY 2010 level of $200 million. ACROSS-THE BOARD REDUCTION (COLUMN 2 IN TABLE ONE ON FIRST PAGE) All of the WIA programs (Adult, Dislocated Worker, Youth and National Reserve) were subject to a 0.2 percent reduction. (see column 2 in Table One on the first page) NASWA BULLETIN APRIL 15, 2011 Page 2
STATE SET-ASIDE FUNDS The legislation (H.R. 1473) reduces the state set-aside from 15 percent to 5 percent. The Appropriations staff in the House and Senate as well as USDOL has confirmed their intent was to apply this reduction not only to the first quarter of PY 2011, but also the advance appropriations as well (i.e. all money allocated between October 1, 2011 and June 30, 2012). However, there appears to be a drafting error and it is possible this reduction will only apply to funds that will be allocated in the first quarter of PY 2011 (i.e. July 1, 2011 - September 30, 2011) and the statewide set aside will revert back to 15 percent for the remainder of PY 11 (October 1, 2011 - June 30, 2012). At this point, it is not clear, but NASWA has been told Congress will seek to clarify the set-aside provision through subsequent appropriations legislation. NASWA is very concerned this action will adversely impact the vast majority of states and will be collecting information through a survey to be sent to all Administrators on Monday, April 18 th. WORKFORCE INNOVATION FUND The legislation implements a new program - the Workforce Innovation Fund (WIF) - at a level of $125 million. The WIF is a grant program available to states and/or state agencies to conduct demonstration programs. GREEN JOBS INNOVATION FUND This program is not funded for FY2011, but the current competition is not affected. AWIU -- AVERAGE WEEKLY INSURED UNEMPLOYED The legislation disabled the AWIU trigger in UI Administration to decrease the overall cost of the legislation. USDOL advises there is ample funding to meet workload and Reemployment Eligibility Assessments at the FY 2010 level. However, NASWA is very concerned this is a risky strategy especially if unemployment increases unexpectedly. The bill rescinds the following: $125 million from the Career Pathways Innovation Fund; $65 million from Dislocated Worker Assistance State Grants; and $75 million from the Office of Job Corps. Please Note: If you do not see a program in H.R. 1473, it means funding will be provided at FY 2010 level. For example Veterans Employment and Training Service (VETS) and Wagner-Peyser Grants are not listed in H.R. 1473; therefore they will receive the same level appropriated in FY 2010, minus the.2 ATB cuts. Click here for NASWA s all-purpose budget table. NASWA RELEASES IMPACT TO WORKFORCE SYSTEM UNDER FUNDING CUTS Below are the highlights of a NASWA survey examining the impact of H.R. 1, legislation that passed the House in February and would have eliminated all funding for the Workforce Investment Act (WIA) Adult, Youth and Dislocated Worker programs from July 1, 2011 to June 30, 2012. More than 40 states participated in the survey. The final report will be made available next week. As noted in the previous article, NASWA is concerned the 10 percent reduction in workforce programs and the reduction in the state set aside as contained in the final fiscal year 2011 spending plan. H.R. 1573 represents just the first installment of additional reductions affecting state workforce agencies. Congress is looking at further cuts and consolidation of workforce programs. The data obtained through this survey will help NASWA inform Congress about the consequences of these cuts with sound research and analysis. NASWA BULLETIN APRIL 15, 2011 Page 3
HIGHLIGHTS: WIA FUNDING SURVEY EXAMINING THE IMPACT OF H.R. 1 Dislocated Workers About 77 percent of Dislocated Workers who received WIA services in Program Year (PY) 2009 received core and intensive employment services, not training. Adult Workers Some eight percent of WIA Adult participants received training in PY 2009. The remaining 92 percent received core and intensive services. Youth Program The survey suggests approximately 40 percent of Youth participants received training. Average Cost of Training States spent slightly more than half of their WIA funds on training, despite far fewer than half of the participants served received training. Training requires a much greater investment per worker than core and intensive services. Impact of funding cuts on Training If H.R.1 had been enacted, or additional cuts were made to WIA programs, it would severely limit the ability of states to continue serving and training workers. States predict only about a quarter of workers currently enrolled in training would have been able to continue in their program after June 30, 2011. As of July 1, the start of Program Year 2011, the survey indicates almost all new training enrollments would cease. Some 90 percent of states said no new training participants would have been enrolled. Impact of funding cuts on One-Stops Under H.R. 1, some 31 states would have closed approximately 950 One-Stop Career Centers nationwide, resulting in approximately 12,000 employees losing their jobs. The closure of one-stops would also have disrupted other services provided through the one-stops, such as TANF, Career and Technical Education (CTE), Wagner-Peyser Services, and assistance to Veterans through the Disabled Veterans Outreach Program and Local Veterans Employment Representatives Program. Carry-Over Funds The survey shows states do not have sufficient funds from prior years known as carry-over funds, to keep the WIA system operating. NASWA found nearly all WIA funds have already been spent by the 37 states responding to this question: No state had unspent funds from 2007. States spent 98 percent of their PY 2008 funds. States spent 89 percent of their PY 2009 funds. PRESIDENT OUTLINES PLAN TO REDUCE THE DEFICIT BY $4 TRILLION On Wednesday, President Obama outlined a debt-reduction framework during a speech at George Washington University. The President s sought to contrast his plan with one presented by Representative Paul Ryan (R-WI), Chairman of the House Budget Committee, on April 5. The two proposals address deficit reduction in very different ways and should set up the debate over deficit reduction and an increase in the debt limit for the next several months. Representative Ryan s plan would cut $4.4 trillion from the deficit over ten years. The plan includes several controversial changes, including: For people under age 55, Medicare would be turned into a voucher program, in which the government would contribute a certain amount of money towards a premium for private health insurance; Medicaid would become a block grant, with federal money given to states to serve low-income people; Domestic discretionary spending would be cut by $1.6 trillion over 10 years; and NASWA BULLETIN APRIL 15, 2011 Page 4
The top tax rate for corporations and individuals would be lower, but this change would be offset by eliminating certain tax breaks. The President s proposal would cut the deficit by $4 trillion over 12 years. The President has also asked Vice President Joseph Biden to lead a team of lawmakers in negotiating the framework for a deficit-reduction deal by the end of June. Several of the President s provisions include: Leave Medicare as it is, but would lower prescription drug spending by leveraging Medicare s purchasing power; Medicaid spending would be cut by $100 billion by following recommendations from governors to make the program more efficient; Over the next 10 years, spending on defense would be cut by $400 billion; Domestic discretionary spending would be cut by $600 billion over ten years, including the $400 billion included in the President s FY 2012 budget; and Tax breaks would be eliminated, tax rates would be lowered, and the Bush tax cuts would be allowed to expire for the wealthiest. NASWA HOSTS FRENCH DELEGATION IN WASHINGTON D.C. On Tuesday April 12, 2011 NASWA Executive Director Rich Hobbie, Deputy Executive Director Bob Simoneau and Assistant Executive Director Pam Gerassimides met with Christian Charpy the Director General of the French Employment Service (Pole Emploi). Staff from Pole Emploi included Lysiane Soubeyrand, Director of Communications and Cyril Cosme, Counselor for Labor & Social Affairs at the French Embassy in Washington D.C. Pole Emploi is the public agency in charge of aids, support and training for job seekers as well as unemployment insurance. Topics discussed with NASWA staff included the national partnership between the State agencies and the federal government; local partnerships between one-stops, the business community, education providers (community colleges), local public authorities and the role of Foundations; services given to the jobseekers: the methods of job seekers profiling (assessment of the skills and the training needs), and the participation of specialized private providers; Workforce planning: assessment of the skill gaps on the labor market and the risk of mismatches, impact on training and job search supports; and the National Labor Exchange partnership with DirectEmployers Association. Pictured left to right: Lysiane Soubeyrand, Director of Communications, Pole Emploi. NASWA Executive Director Rich Hobbie, Christian Charpy the Director General of the French Employment Service (Pole Emploi), Deputy Executive Director Bob Simoneau and Assistant Executive Director Pam Gerassimides. JOB OPENINGS RATE INCREASED DURING FEBRUARY; HIRES AND SEPARATIONS REMAIN STABLE The number of job openings rose from 2.7 million in January to 3.1 million (seasonally adjusted) in February, according to the Bureau of Labor Statistics Job Openings and Labor Turnover report, which can be read here. The job openings rate (the number of job openings divided by employment added to job openings) also rose, up to 2.3 percent from 2.1 percent in January. While both the job openings and the job openings rate trended upward since the official end of the recession, both remain below their pre-recession levels. NASWA BULLETIN APRIL 15, 2011 Page 5
Over the 12 months ending in February, the number of job openings (seasonally adjusted) rose for total nonfarm; for the Midwest, Northeast, and South regions; and several industries including manufacturing, trade, professional services, education and health services, and leisure and hospitality. While the number of hires rose slightly in February (3.9 million compared to 3.8 million in January), the hires rate remained essentially unchanged overall and for most industries and regions. Similarly, the hires rate remained largely stable for the 12 months ending in February both overall and for most industries and all regions. The number of hires and the hires rate still remains below its pre-recession levels. The total separations rate (including quits, layoffs, and discharges) was essentially unchanged over the month of February and over the 12 months ending in February for total nonfarm, total private, and government. The quits rate increased in February in every region, and particularly in retail. Quits indicate a willingness to change jobs. Although the number of quits (not seasonally adjusted) increased over the year, the number of monthly quits still remains below its pre-recession levels. The number of monthly involuntary separations peaked at 2.5 million in February 2009, but has been gradually falling since, reaching a series low of 1.5 million during January 2011. WEEKLY INITIAL UNEMPLOYMENT CLAIMS INCREASE 4-WEEK AVERAGE ABOVE 390,000 According to the U.S. Department of Labor (USDOL) Unemployment Insurance Weekly Claims Report (click here), the number of initial claim (seasonally adjusted) increased by 27,000 to 412,000 during the week of April 9. The number of weekly initial unemployment claims has been slowly declining for several months, but jumped this week to their highest weekly level in two months, bringing the four-week moving average up 5,500 to 390,250. Continuing unemployment claims (seasonally adjusted) have also been gradually falling. During the week of April 2 the number of weekly continuing unemployment claims fell by 58,000 to 3,680,000. This brings the four-week moving average down 20,750 to 3,728,750. Overall, the number of workers (not seasonally adjusted) receiving unemployment insurance benefits under all federal and state programs fell slightly by 6,910 to 8,517,545 during the week of March 26. In addition to regular state programs, changes were seen in other programs as well during the week of March 26: NASWA BULLETIN APRIL 15, 2011 Page 6
The number of persons (not seasonally adjusted) receiving UI benefits under EUC 2008 fell by 12,245 to 3,550,786. There were 52,323 more persons (not seasonally adjusted) receiving UI benefits under the Extended Benefits program, bringing the total number up to 760,402. The number of persons (not seasonally adjusted) participating in a short-time compensation/workshare program fell by 4,599 to 47,288. NASWA MEMBERS MOURN THE LOSS OF WYOMING S BOB SANFORD Regrettably and unexpectedly, Mr. Bob Sanford passed away on April 9, 2011, after a heroic battle with mesothelioma (cancer). He leaves behind a wife, a son in his early 20 s, a 13-year-old son, and a 10-year-old daughter. Mr. Sanford will be deeply missed by family members, friends, and especially by NASWA s Unemployment Insurance and Interstate Benefits Community. Bob Sanford was an active member on NASWA s Unemployment Insurance (UI) Subcommittee on Interstate Benefits (IB) and had over 27 years with the Wyoming Department of Employment. Mr. Sanford was well respected on UI state and IB issues and was a valuable resource to the NASWA IB Subcommittee. Upon learning of his passing, NASWA Interstate Benefits Subcommittee (IB) Chair, Andy Baldwin (AZ) said, I met Bob at my first IB Subcommittee meeting and it was obvious he had a great knowledge of and passion for Unemployment Insurance and the people he served. I came to learn that Bob was a member of our AWIN team and at those meetings I learned that we both had a love of the outdoors and especially the mountains. He told us of his experiences hunting and guiding other hunters in Wyoming. Sadly though, I learned from him about mesothelioma and all he'd gone through fighting that terrible disease. People tend to remember the good times. I will always remember Bob for his love of his family, passion for the outdoors, and intense enthusiasm for Unemployment Insurance. Mr. Sanford's obituary is viewable on Bustard's Funeral Home website at the following link: http://www.bustardsfuneralhome.com/obits/obituary.php?id=76646. Memorials may also be made to the International Mesothelioma Program at Brigham & Women's Hospital, Development Office, 116 Huntington Avenue, 5th Floor, Boston, MA, 02116. NASWA BULLETIN APRIL 15, 2011 Page 7
SENATE COMMITTEE ON VETERANS AFFAIRS HOLDS HEARING ON VETERANS EMPLOYMENT The Senate Committee on Veterans Affairs held a hearing this week on Veterans Employment entitled Improving the Transition from the Battlefield to the Workforce. The Committee heard from eight panelists, including representatives from veterans groups, the Assistant Secretary for the Veterans Employment and Training Service, Ray Jefferson, the Department of Defense, and the Office of Personnel Management. Committee Members and the witnesses discussed the barriers veterans face in seeking civilian employment, as well as possible improvements. Although slightly more of the new hires by the federal government in the last year have been veterans, overall the unemployment rate remains high among veterans, at nine percent. Young veterans in particular suffer from high levels of unemployment. Recently released data show that veterans in their early 20s have an unemployment rate of 27 percent. Assistant Secretary Jefferson spoke about a number of improvements to the Transition Assistance Program and the critical role provided through the Disabled Veteran Outreach Program (DVOP) and the Local Veterans Employment Representatives (LVER) program. The Assistant Secretary also spoke about USDOL s employer outreach pilot program and partnership with the U.S. Chamber Of Commerce. IDENTITY THEFT IS TOP PROBLEM FOR E-VERIFY ACCORDING TO CONGRESSIONAL HEARING The top challenge facing E-Verify, the federal government's electronic employment verification program, is preventing undocumented workers from stealing and using the identity of an authorized worker, witnesses agreed at an April 14 hearing before the House Ways and Means Social Security Subcommittee. Click here for witness testimony. Background To watch the webcast, click Here E-Verify is an internet-based system administered by the U.S. Citizenship and Immigration Services within the Department of Homeland Security (DHS) in partnership with the Social Security Administration (SSA). The employer enters information into the E-Verify system from the Form I-9. While E-Verify is free, and participation is mostly voluntary, some companies may be required to use E-Verify by State law (including Arizona and Mississippi) or Federal regulation. All Federal agencies are required to use E- Verify for their new hires and certain Federal contractors and subcontractors are required to use E-Verify for new hires and existing employees working directly under the contract. In a recent report to the Subcommittee (Federal Agencies Have Taken Steps to Improve E-Verify, but Challenges Remain, GAO-11-146), the Government Accountability Office found the E-Verify system had made progress in improving accuracy with immediate confirmations rising to 97.4 percent. However, the study also noted the system was still vulnerable to unauthorized workers and unscrupulous employers presenting stolen or borrowed documents for the purpose of identity fraud. Richard M. Stana, Director of Homeland Security and Justice at the Government Accountability Office, outlined improvements that have been made to E-Verify, including a sharp decline in the number of tentative nonconfirmations (TNCs) issued through the system. Several years ago about 8 percent of workers screened through E-Verify received a TNC, compared with 2.6 percent in fiscal year 2009 and 1.7 percent in fiscal year 2010, he said. Mr. Stana outlined steps the Department of Homeland Security has taken to improve the E-Verify system, particularly those to address identity theft. He pointed to the December 2010 GAO report on E-Verify finding that identity theft remains a concern.. NASWA BULLETIN APRIL 15, 2011 Page 8
The Social Security Administration, which operates the primary databases used by E-Verify, has worked with the Department of Homeland Security to make the E-Verify system more accurate and robust, said Marianna LaCanfora, Assistant Deputy Commissioner at the SSA's Office of Retirement and Disability Policy. So far in fiscal year 2011, 7.5 million queries have been run through E-Verify, and 16.5 million queries were run in fiscal year 2010, she said. At the request of DHS, SSA designed a system that can accommodate 60 million queries a year, which is the approximate number of new hires in the United States each year. Assistant Deputy Commissioner LaCanfora noted if E-Verify is made mandatory in time, we may need additional capacity, but we expect our systems will be able to handle potential expansions provided we receive necessary resources and lead times, she added. CONGRESSIONAL PANEL DISCUSSES E-VERIFY MANDATE AND H-2A PROGRAM CHANGES Without changes to the H-2A agricultural guest-worker program the U.S. agricultural industry faces potential disaster due to a shortage of authorized workers, according to testimony at an April 13 hearing before the House Judiciary Committee's Subcommittee on Immigration Policy and Enforcement. Click HERE for witness testimony and the webcast. Jane Oates, Assistant Secretary for the USDOL s Employment and Training Administration, provided Subcommittee Members with an overview of the H-2A program. From 1987 through 2008 the H-2A program was administered under a final rule that required employers to certify and provide USDOL with documentation they were complying with the requirements of the H-2A program. In the final days of the Bush administration, both USDOL and the Department of Homeland Security issued final rules in December 2008 to amend the H-2A visa program, which USDOL said would modernize the program and strengthen worker protections. Under the 2008 rule, USDOL changed the program for the first time to an attestation-based system and wages were calculated using the Bureau of Labor Statistics' occupational employment survey data. She also noted the 2010 final rule created an online registry of H-2A jobs to make it easier for U.S. workers to access information about applying for temporary agricultural work. Since the job registry became available in July 2010, over 4,100 job orders offering one or more jobs with U.S. farms have been posted, offering substantially greater access for U.S. workers to these available jobs, she said. Ms. Oates also said that in fiscal year 2011, 2,890 H-2A applications have been certified, and more than 70 percent of all H-2A applications are traditionally filed during a peak period from December through April. In addition, DOL has successfully processed 70 percent of applications within the required 15 calendar days, she said. In a an exchange with Ms. Oates, Rep. Dan Lungren (R-CA) said that he was disappointed that her testimony did not call attention to ongoing problems with the H-2A visa program. The H-2A program is a failure, and if Congress passes a law mandating the use of E-Verify, the federal government's electronic employment verification program, there will be a crisis in the agricultural sector, said Rep. Lungren. Assistant Secretary Oates noted that an E-Verify mandate would have an impact on the agricultural sector, but said USDOL will work with agricultural employers if an E-Verify mandate is passed to increase labor supply and educate the public about open jobs. NASWA BULLETIN APRIL 15, 2011 Page 9
GAO RELEASES REPORT AND TESTIMONY ON USDOL PROGRAMS The Government Accountability Office (GAO) released a report and testimony this week focusing on programs under the purview of the U.S. Department of Labor (USDOL). The first report examines the Employment and Training Administration s (ETA) Research Program and recommends further actions are needed to improve transparency and accountability of the program. Specifically, GAO recommends ETA formally include the Chief Evaluation Officer in its research process as well as develop a plan to ensure that research reports are accessible through its Web-based search page. ETA recently improved the timeliness with which it disseminates its research reports, decreasing the average number of days to release its reports to the public from 804 days in 2008 to 76 days in 2009. Experts suggested that ETA consider other effective dissemination methods, such as publishing a one-page summary of research findings They also reported that future research should address additional areas, including a focus on employment and training approaches that work and for whom. Labor and ETA have taken steps to improve the way research is conducted, but additional actions are needed. In acknowledging the need for more rigorous evaluations to inform its policies, USDOL recently established the Chief Evaluation Office to oversee department wide research and evaluation efforts. The second item was testimony provided by GAO on USDOL s procedures for determining prevailing wage rates under the Davis-Bacon Act before the Subcommittee on Workforce Protections, House Committee on Education and the Workforce. GAO found that recent efforts by the Department to improve the Davis-Bacon wage survey have not yet addressed key issues with survey quality, such as the representativeness and sufficiency of survey data collected. GAO indicates that USDOL has made some data collection and processing changes; however, they found some surveys initiated under these changes were behind Labor's processing schedule. Contributions to this edition of Bulletin were made by NASWA staff Gina Turrini, Bob Simoneau, and Charlie Terrell For questions or comments on Bulletin articles; please contact Bulletin Editor, Marc Katz at mkatz@naswa.org. NASWA BULLETIN APRIL 15, 2011 Page 10