STATEMENT OF
RAYMOND L. BRAMUCCI
ASSISTANT SECRETARY OF LABOR FOR EMPLOYMENT AND TRAINING
ON
THE IMPLEMENTATION OF THE WORKFORCE INVESTMENT ACT OF 1998
BEFORE THE
SENATE HEALTH, EDUCATION, LABOR AND PENSIONS COMMITTEE
SUBCOMMITTEE ON EMPLOYMENT, SAFETY AND TRAINING
JULY 1, 1999
Mr. Chairman and Members of the Subcommittee:
Thank you for the opportunity to appear before you today to discuss the implementation
of the Workforce Investment Act of 1998. Today, I would like to provide an overview of the
steps we have taken to date, all of which were designed to provide States and local communities
the tools and information they need to design and implement new workforce investment systems
that meet their unique needs. I will also identify the next steps in the implementation process as
well as identify some of the key issues we have encountered as part of this process to date.
GUIDING PRINCIPLES OF REFORM
The Workforce Investment Act (WIA), the first major reform of the nation's job training
system in over 15 years, was signed into law by President Clinton approximately eleven months
ago. In the past, the employment and training system was often duplicative and fragmented, and
lacked a sufficient focus on the needs of its customers, both workers and employers, to
accomplish a realignment of skill demands and worker supply. The WIA was a response to this
reality. The enactment of this legislation is the culmination of a successful bi-partisan effort on
the part of the Administration and Congress to design a revitalized system that provides workers
with the information, advice, job search assistance, education, training, and support they need to
get and keep good jobs, and that provides employers with skilled workers. This delivery system
is being designed with the participation of employers, labor organizations, and education and
community groups, which have a large stake in its success. The implementation of the WIA has
been my priority and that of the Employment and Training Administration since the date of
enactment. We are working with and encouraging States and local communities to seize this
momentous opportunity for reform by thinking expansively and designing a customer-focused,
comprehensive delivery system.
Today, the Department has approved, in whole or in part, plans received from 9 States to
begin implementing the reforms contained in the Act, and I know your Chairman, Senator
Jeffords, is proud that Vermont is among them. All States must fully implement by July 1, 2000.
However, it is important to note that every State, including States that have not yet submitted
plans, are taking important steps towards reform. Later this morning, we will hear from one of
those States, Minnesota, which is in the process of building a strong foundation for its new
workforce investment system.
The seven key reform principles that we identified during the legislative process remain
our guiding points in this implementation phase, as we emphasize to our State and local partners
that the implementation of WIA should bring about dramatic reforms, not simply business as
usual. These principles are:
1. Streamlined Services through a One-Stop delivery system, which integrates a variety of
programs at the street level to make their services more accessible for individuals and
businesses alike.
2. Empowering Individuals, which is done in several ways. First, eligible individuals will
have financial power through the use of Individual Training Accounts (ITAs) to obtain
training at qualified institutions. Second, individuals will be empowered with
information on the performance of training providers, through a system of consumer
reports. This information is essential to ensuring informed training choices, and will be
available to all One-Stop customers. Third, individuals will be empowered through a
nationwide labor market information system, the expert advice, guidance, and support
available through the One-Stop system, and the activities of the participating partners.
3. Universal access to services that allows any individual to access certain core
employment-related services such as information about job vacancies, career options, or
how to conduct a job search, write a resume, or interview with an employer.
4. Increased accountability for results by States, local, and training providers. This is
achieved by working with the States to establish challenging performance measures and
holding States and local communities accountable for meeting those measures. High
levels of performance will be rewarded with incentive awards while continuous failure to
perform may result in financial sanctions. Individual training providers will also face
increased accountability as customers, empowered by ITAs, select training based on
performance information available through the consumer reports system. In addition,
training providers are required to meet State-established performance levels to be eligible
to receive funds.
5. A strategic role for Local Boards and the private sector, through the creation of business-led Local Workforce Investment Boards (Local Boards) that are focused on strategic
planning, policy development and oversight, rather than program administration.
6. State and local flexibility, which is provided by allowing States and local communities to
build on existing reforms and to implement innovative, comprehensive workforce
investment systems tailored to meet local needs.
7. Improved youth programs that tie activities and services more closely to labor market
needs, create a strong connection between academic and occupational learning, and
provide activities geared specifically toward youth development and provide the follow-up services that are central to the development of an effective youth program. An
emphasis will be placed on the coordination of youth activities and the creation of a
comprehensive network of youth programs that includes programs administered by a
variety of agencies including the Departments of Labor, Education, and Housing and
Urban Development. A youth council will be established under the Local Board in each
local area to improve coordination among programs and youth-serving organizations,
conduct strategic planning for youth programs, identify eligible providers for youth
services, and conduct oversight of youth programs.
One of the important efforts in support of these key principles has been the development,
in cooperation with the States, of America's Career kit, a group of Internet tools that help
American workers and employers navigate the labor market, exercise informed choice in their
workforce decisions and make training decisions linked to occupations that are experiencing skill
shortages. Five elements make up America's Career Kit:
- America's Job Bank, which is the largest and most frequently visited electronic job
bank in the country, listing almost 1 million job vacancies that are updated on a daily
basis, including significant numbers of vacancies in high tech occupations from major
corporations and small businesses nationwide.
- America's Talent Bank, which allows American job seekers to post their resumes, and
registered employers to electronically search resumes to find suitable candidates for job
openings. America's Talent Bank now lists about 350,000 resumes, and that number is
increasing daily.
- America's Career InfoNet, which provides career-related information, such as employer
trends, for any job seeker, employer, school or career counselor.
- America's Learning eXchange, which provides information about available education
and training opportunities, places where individuals and companies can readily find
appropriate, already developed education and training courses; and
- O*NET, which is currently in the testing stage, and which will provide comprehensive
information on job requirements and worker competencies for workers, employers,
instructors, students and career counselors.
This effort illustrates how partnerships between agencies and different levels of government can
assist in developing more accessible, customer-friendly products and services for use in the
workforce investment system that will enhance employment and training opportunities for
American workers.
IMPLEMENTATION EFFORTS
A Consultative Process
The common thread throughout all of our implementation efforts is the emphasis on
including our Federal, State and local partners, as well as other key stakeholder groups -- such as
the employer community and organized labor -- in the discussions and deliberations in every
phase of the implementation process. Shortly after enactment, the Department published and
widely circulated a "plain English" summary of the Act in order to quickly raise awareness of the
new reforms. The consultation process began in September 1998, with the publication of a
Federal Register notice soliciting public comments on all aspects of implementation. That same
month we established an interactive website (http:\\www.usworkforce.org) designed to provide
up-to-date information on our efforts, as well as to collect feedback and comments from the
public. In October 1998, we published in the Federal Register, a White Paper entitled
"Implementing the Workforce Investment Act of 1998," which outlined our vision for the new
workforce investment system and provided a basis for the development of the Interim Final
Regulations.
Throughout the fall of 1998, we held a series of "Implementation Panels" with State and
local practitioners. The purpose of these panels was to solicit input on whether we should issue
regulations on various legislative provisions, and if regulations were needed, what language the
regulations should contain. These panels were held at both the regional level and the national
level.
In addition, a total of 12 town hall meetings were held in 11 cities across the country
(Boston, New York, Philadelphia, Atlanta, Chicago, Dallas, Kansas City, Denver, San Francisco,
Seattle, and the District of Columbia). These meetings provided all interested individuals an
opportunity to learn about the Act and the implementation process, as well as an opportunity to
offer comments on specific issues of concern. Well over 1,200 individuals attended these town
hall meetings, representing a variety of organizations ranging from veterans' organizations to
regional planning organizations.
Over the past eleven months, we have also held regular briefings for the staff of various
intergovernmental organizations, such as the National Governor's Association, the National
League of Cities, the U.S. Conference of Mayors, the National Association of Counties, and the
Interstate Conference of Employment Security Agencies. The briefings have proven to be an
effective way of both receiving input from, and providing information to, State and local
partners. Similar meetings also have been held with representatives of the business and
organized labor communities. We have also held regular briefings with the staff of the House
and Senate authorizing committees to keep them apprised of our efforts and of specific issues as
they arise.
Since enactment, the Department has also been working closely with a variety of Federal
agencies, including the Department of Education. Examples of this coordination include: (1) the
issuance of joint guidance on implementation from the Employment and Training
Administration, the Office of Vocational and Adult Education, and the Office of Special
Education and Rehabilitative Services; (2) the participation of officials representing the
Department of Education, Health and Human Services, and Housing and Urban Development in
Department of Labor-sponsored training sessions; and (3) the convening of a number of
interagency meetings to discuss a variety of issues related to implementation.
Development of Regulations
The Interim Final Regulations, covering most aspects of titles I, III and V of the
Workforce Investment Act were published in the Federal Register on April 15, 1999. We believe
that the participatory manner in which these regulations were developed reflects the spirit of
partnership and flexibility that is inherent in the Act. Through the mechanisms of public
participation mentioned above, we were able to seek input from key stakeholders on proposed
regulatory strategies. This process proved to be highly effective. In addition, each of the Federal
agencies responsible for administering mandatory or additional One-Stop partner programs
provided input into the development of the regulations.
In order to train State and local staff on the new requirements, the Department held six
two-day training sessions on the regulatory issues in five different cities around the country
(Atlanta, Philadelphia, Chicago, Los Angeles and Dallas). Attendees could select from a variety
of subject-specific workshops on topics such as administration, transition, governance and
adult/dislocated worker services. Over 2,000 individuals attended these sessions, and the
feedback from the sessions was very favorable.
The format, and the substance, of the Interim Final Rule reflects the Administration's
commitment to regulatory reform, and to writing regulations that are user friendly, in plain
English, and in a question and answer format to make them easier to use. Further, in order to
provide greater flexibility for State and local partners, the regulations do not include all of the
procedures mandated under the Job Training Partnership Act (JTPA). As a result, they are only
half as long as the regulations they will replace.
The Interim Final Regulations are open for public comment for a total of 90 days. The
comment period officially closes on July 14, 1999. We expect to receive a large number of
comments. We will be reviewing the comments received and will brief all of the key
stakeholders on our analysis prior to developing Final Regulations.
State Planning Process
One of the innovative provisions contained in the WIA is the requirement that each
Governor submit a five-year strategic State Workforce Investment Plan (State Plan) to the
Secretary of Labor which includes title I of WIA as well as the Wagner-Peyser Act. The plan is
to describe statewide workforce investment activities, explain how the requirements of the Act
will be implemented, and outline how special population groups will be served.
On February 25, 1999, the Department published State Planning Guidance in the Federal
Register which provided instructions on how to develop State Plans. The guidance emphasizes
the importance of having working partnerships in place between the Governor, local elected
officials, Local Boards and other partners in the workforce investment system. In addition, the
guidance stresses that the State Plan -- with a statewide vision, goals, policies, criteria and
measures -- should become a living document, a management tool that Federal, State and local
partners will use to guide the evolution of the workforce investment system and to assess
progress toward State goals.
In order to allow for maximum flexibility, we are allowing States to implement WIA at
any time between July 1, 1999 and July 1, 2000. As a result, we will be accepting State Plans for
review on a "rolling" basis up to April 1, 2000. In addition, States that are not ready to fully
implement WIA, but wish to begin implementing parts of WIA prior to July 1, 2000, are
authorized to submit a transition plan to the Department. An approved transition plan allows a
State to implement specific portions of WIA during the transition period leading up to full
implementation. To date, a total of 13 States have submitted State Plans to the Department.
States also have the option of submitting a unified plan under section 501 of WIA. This
provision allows a State to submit a single plan for up to 14 Federal education and training
programs. Six of the 13 plans received were unified plans. A workgroup comprised of staff
from the Departments of Labor, Education, Health and Human Services, Housing and Urban
Development, and the Social Security Administration have developed and implemented a
coordinated review process for unified plans. In addition, at the encouragement of the Executive
Office of the President and the National Partnership for Reinvention of Government, these
Federal agencies are beginning the process of developing clearer guidance and perhaps even a
sample plan to facilitate the development of unified plans. We expect to issue this guidance
before the end of the calendar year.
The development of unified plans poses particular challenges, especially since the unique
planning requirements of each affected statute must be met in addition to carrying out the
coordinated planning. We are encouraging States to utilize the unified State planning process,
and we will use our experience to determine whether any legislative changes should be recommended.
Performance Accountability
The WIA calls for a comprehensive accountability system to assess the effectiveness of
State and local areas in providing employment and training services. The Act requires:
- A focus on results defined by core indicators of performance;
- Measures of customer satisfaction with programs and services;
- A strong emphasis on continuous improvement;
- Annual performance levels developed as a result of negotiations among Federal, State
and local partners;
- Incentive awards and financial sanctions based on State performance; and
- Reporting and dissemination of performance results.
The Department is approaching the development of this new performance accountability
system on two tracks. First, we are developing definitions of the core measures of performance
and plan to issue temporary reporting instructions for those States who are implementing WIA in
Program Year (PY) 1999. Second, we are working with States and local governments to develop
definitions and reporting requirements for use in PY 2000 and beyond. Part of this process will
include using the lessons learned from the early implementing States and working with the
Department of Education and other Federal agencies to develop common definitions for
performance measures across programs. In general, the Department is considering PY 1999 to
be a transition year. As a result, we may make substantial changes prior to PY 2000. Therefore,
early implementing States will have the opportunity to renegotiate levels of performance before
the second year of their approved plan.
The Department has published, in the Federal Register, a series of consultation papers in
order to obtain public comments on various aspects of the performance accountability system.
The papers have focused on: (1) the definition of the core measures; (2) the negotiation of levels
of performance; and (3) the implementation of the incentive and sanction systems. Three more
papers are scheduled to be published within the next two weeks, focusing on: (1) customer
satisfaction; (2) continuous improvement; and (3) additional reporting items.
Youth Opportunity Area Grants
Secretary Herman has placed a special emphasis on America's youth, particularly those
who are out-of-school. As the nation enters the 21st century, almost 15 million young people
between the ages of 16 and 24 are not enrolled in school. About 90 percent of these youth don't
have a college degree, and in our country's largest urban school districts, less than 50 percent of
each year's entering 9th grade class graduates four years later. Despite the strong economy, a
majority of out-of-school youth in high poverty areas do not have a job. On June 2, 1999,
President Clinton and Secretary Herman announced a grant competition to select new sites for
the Department's Youth Opportunity Grant initiative, a quarter-billion dollar investment
authorized as part of the WIA that is the foundation of the Secretary's focus on these youth.
The grants will support projects that will substantially increase the employment rate of
youth living in selected high-poverty neighborhoods. The grants will emphasize placing youth in
private-sector jobs, and include complementary efforts to keep youth in school, increase their
enrollment in college, and provide work experience in community-service projects.
This competition will award grants of up to $12 million to each new recipient. The grant
announcement was published in the Federal Register on June 2, 1999, and the competition closes
on September 30, 1999. In order to assist potential Youth Opportunity Grant applicants in
developing quality grant proposals, the Department hosted a series of five Technical Assistance
Conferences. These one-day sessions, held in five cities across the country (Chicago, Denver,
Los Angeles, Atlanta, and the District of Columbia), provided information that clearly explained
the Youth Opportunity Grant application process and requirements, including the purpose of the
grants and the grant review process.
Technical Assistance
In order to meet the requirements of section 170 of WIA, which requires the Secretary to
provide technical assistance, training, staff development and related activities, the Department
has been working with representatives of States and local communities to jointly develop and
implement a Technical Assistance and Training initiative. This initiative will be designed to:
- Assess the workforce system's technical assistance and training needs on an ongoing
basis;
- Create an electronic library of training and resource materials that are directly available to
the user;
- Continuously build staff capacity at the Federal, State and local levels; and
- Establish a mechanism and process to coordinate the ongoing development and delivery
of technical assistance and training resources.
We will be meeting with representatives of the intergovernmental organizations on July 23rd to
discuss our proposed strategy as well as their specific technical assistance roles under the Act.
As part of this strategy, and in addition to the previously mentioned consultation efforts,
we are in the midst of several projects designed to provide technical assistance to States and
localities as they begin implementing WIA. For example, a "readiness checklist" has been
distributed to States and local agencies to assist them in planning for implementation. In
addition, a meeting of the early implementing States is going to be held in Washington, DC on
July 12 and 13, 1999. Another key conference, at which WIA implementation will be a major
focus, is JETT*CON -- the Joint Employment and Training Technology Conference -- which
will be held in Washington beginning July 14, 1999. I invite all of the members of the
Subcommittee to attend this innovative conference as my guests so you can see, first hand, how
emerging technologies can enhance the development of the new workforce investment system.
A Common Identity
Customer awareness of the workforce investment system, rather than of individual
programs, must be established in order for WIA to be a success. In order to promote this
customer awareness, the Department has developed a plan to educate employers, the general
public and the workforce investment delivery system through a well-defined public information
strategy. The focus of this strategy will be to reinforce that WIA is the framework for improving
the quality of all distinct components of the system, such as the dislocated workers and welfare-to-work programs. This customer focus will be achieved by delivering information, expertise
and resources that have real value, including:
- Aggressively promoting ideas that work;
- Constantly providing services of value to our customers;
- Promoting the successful outcomes of our customers; and
- Advocating excellence in employment and training.
The cornerstone of this plan is the development of a "brand" -- America's Jobs Network
-- for the workforce investment system, which will be attached to all Federally funded activities
nationwide. Components of this branding effort will include the establishment of a toll-free
number through which all individuals will be able to access information relating to services
available through the workforce investment system, as well as newsletters, videos and seminars.
The Department will offer branded publication templates for State and local use and will pursue
logo and tagline placement on all WIA-funded locations and materials. This process will allow
States and localities to develop their own customized identity while maintaining connection and
identification with America's Jobs Network.
KEY IMPLEMENTATION ISSUES
Today I would like to mention four key issues we have encountered as part of the
implementation process.
1. How do we ensure reform?
A critical challenge we, as one of the Federal partners, face in the implementation of WIA
is promoting reform in an effort to ensure that WIA does not end up simply being JTPA with a
new name. The emphasis on State and local flexibility amplifies this challenge. In this new
environment, the Department is utilizing a variety of approaches, such as policy guidance,
technical assistance including the use of our interactive website, and training, to encourage
reform.
For example, the Department of Labor believes that State Workforce Investment Boards
must reflect the membership, and include active participation, of all the entities provided in the
statute to ensure the successful implementation of the reforms embodied in the WIA. However,
States are authorized to maintain, or grandfather, their existing boards under certain conditions.
In an effort to stress the importance of new boards, the Secretary sent a letter to every Governor
encouraging them to identify and establish their State Workforce Investment Boards as early as
possible, and stating that the Department is committed to providing assistance to States
throughout the process. In addition, the Department often calls upon business and labor groups
to stress the importance of various reform principles through their membership channels.
2. How do we ensure maximum participation?
WIA provides us with a framework for reform, but realization of its full potential requires
cooperation at the Federal, State and local levels to initiate and sustain the momentum for
change. The Department has been engaged in several efforts designed to increase participation at
the Federal level.
The central effort at the Federal level is increasing the participation of other Federal
programs in the workforce investment system. Conversations have been taking place with staff
from numerous Federal agencies, including the Departments of Education, Health and Human
Services, Transportation, Agriculture, and Housing and Urban Development, as well as the
Social Security Administration. To underscore the Administration's commitment to interagency
coordination, the President has tasked the National Economic Council with convening a series of
Deputy Secretary-level meetings to discuss WIA implementation issues which impact all of these
various agencies. In general, the meetings are addressing three key issues: (1) unified planning;
(2) performance accountability; and (3) participation in the One-Stop delivery system. In
addition to these Deputy Secretary-level meetings, a number of staff level workgroups have been
established to deal with the specifics of these key issues.
In another effort to enhance interagency cooperation and effective innovative
implementation of WIA, Gene Sperling, Director of the National Economic Council, sent a letter,
dated May 31, 1999, to a wide variety of stakeholder organizations, asking them to identify non-legislative barriers to integrated service delivery, circumstances that restrict or prohibit
collaboration, or Federal requirements that represent impediments to One-Stop delivery. The
organizations have been asked to send their comments to the National Economic Council, which
will then host a meeting of the groups to discuss possible solutions for overcoming the barriers
identified and to outline next steps.
3. Size of State and Local Boards.
One of the key issues of concern to State and local communities is the size of State and
Local Boards. The Department has heard many concerns that statutory membership
requirements relating to the Boards will lead to large, unwieldy, and unmanageable boards. This
is especially an issue for Local Boards, due to the requirement that all One-Stop partners must be
represented on the board. This requirement, in addition to the requirement for having a business
majority, may result in very large boards in many areas. While the Department understands the
importance of broad representation on the boards, we are concerned that the large size of the new
boards will result in many States and Local areas choosing to grandfather their existing boards,
which runs counter to WIA reform principles.
While the Department was unable to fully resolve this issue in the regulations due to
statutory constraints, we did not add any additional requirements regarding the number of
members required. In the preamble to the Interim Final Regulations we stated that problems
associated with large board size can be addressed in a number of ways, such as through the use of
committees. In addition, we will be providing technical assistance on creative approaches State
and Local Boards may wish to consider in addressing this issue.
4. Lack of Hold-Harmless Provision.
Another issue that States and local areas are most concerned about is the lack of a local
hold-harmless provision in the first two years a State implements WIA. JTPA contains a hold-harmless provision that ensures that, in a given fiscal year, no service delivery area will be
allocated less than 90 percent of its allocation percentage for the preceding fiscal year. The
purpose of this provision is to ensure that local areas do not experience dramatic shifts in
funding. The Senate bill (S. 1186) as passed, contained a hold-harmless provision similar to the
one contained in JTPA. The House bill (H.R. 1385) did not contain any hold-harmless provision
for local areas.
During the House/Senate Conference, the Senate provision was altered so that the hold-harmless would not take effect until the third fiscal year a State is operating under WIA. We
understand this change was made because the existence of a hold-harmless in the first two years
of WIA could deter the establishment of new local areas. While the lack of hold-harmless
would, in theory, distribute funds to areas in greatest need, we are aware that many local areas
may experience a dramatic reduction in funding that may result in reduced services and the need
to lay off staff.
We have received many requests to impose a hold-harmless provision through the
regulatory process. However, the only way to address this problem would be through an
amendment to WIA. Until a legislative resolution of this issue is possible, the Department, under
the Secretary's transition authority, is allowing Governors in early implementing States to utilize
the JTPA hold-harmless provision in PY 99. This policy decision was addressed in the preamble
to the Interim Final Regulations.
NEXT STEPS
The next twelve months will be a crucial period for the implementation of WIA. Over
the next year we will be working with other Federal agencies to address any obstacles to
effective implementation and seamless service that exist at the Federal level. In addition, we will
be working with the early implementing States to ensure they have the information and support
they need to successfully implement their new workforce investment systems. At the same time,
we will be working closely with the remaining States to provide them with the assistance they
need to develop their comprehensive State Plans. We will be using the lessons learned from all
of these States in determining how best to modify our regulations and guidance documents prior
to issuing final documents later this year. In general, we expect that the regulations, the State
Planning Guidance, and the Performance Accountability specifications will all change based on
public comment and the experience of the early implementing States.
We look forward to working with the members of this Subcommittee and your
counterparts in the House as we continue our implementation efforts. I believe that we have
established an open and effective working relationship with your staff which has served us well
in our efforts to date. Please feel free to call on us whenever issues arise or you need additional
clarification on any aspect of our process.
Mr. Chairman, this concludes my prepared testimony. My colleagues and I will be happy
to respond to any questions you and other members of the Subcommittee may have.
