State apportionment of funds for training and allowances under title II of the Manpower Development and Training Act, for fiscal year 1965

1

1 Research, experimental and demonstration projects,

NEW EVIDENCE OF RECENTLY ENACTED LEGISLATION

Senator PASTORE. Mr. Ruttenberg, we shall be glad to hear from you respecting the House reduction on the ground that the additional $28 million is not requisite to the assurance that "no person will be deprived of training because of lack of funds during 1965." You may proceed.

Mr. RUTTENBERG. I am accompanied here this morning by Mr. Robert Goodwin, Director of the Bureau of Employment Security, Dr. Walsh, Acting Director of the Office of Manpower, Automation and Training; Miss Margaret Thomas, Assistant Director, Office of Financial and Management Services; Mr. Jim Clarke, assistant to the Under Secretary of HEW, and Dr. Roy Dugger, Office of Education, Director of Manpower Development and Training.

Mr. Chairman, I appreciate the opportunity to acquaint you with the information to justify $103 million additional funds for this fiscal year, rather than the $75 million allowed by the House. The House did not have in its possession certain facts in time for consideration in acting on our estimate of $103 million.

ELIMINATION OF REQUIREMENT FOR STATE MATCHING FUNDS

Important amendments to the Manpower Development and Training Act which the Congress has been considering since February passed the Senate (S. 974) on March 16, 1965, with a 76-to-8 vote and passed the House (H.R. 4257) on April 1, 1965, with a 392-to-0 vote. The bill did go to conference on April 7 and will become law very shortly. This is most important in considering our 1965 supplemental request since both bills contain identical provisions, not in dispute, eliminating the requirement for State matching of funds for fiscal 1966 and also hereafter authorizing the obligation of funds for the full cost of allowance payments at the time of project approval out of current year appropriations. The supplemental appropriation would be first used to carry into effect this provision in order not to encumber the 1966 program with commitments made prior to June 30, 1965. The provision of the amended legislation authorizing this procedure is attached to my prepared statement.

CURRENT FIGURES DEVELOPED SINCE HOUSE HEARING

When we testified in the House, the most current information available on progress of the 1965 program was through January. We now have information through the end of March, and the present appropriation is virtually exhausted. A balance of $2.1 million or less than 1 percent remains, while we have approved projects on hand waiting the availability of funds amounting to $13.1 million. In addition, a State-by-State inventory of projects currently under development expected to be submitted for approval prior to June 30 totals $148.4 million.

Table 1 in detail spells that out State by State.

The table on page 2 of my statement summarizes the status of the Manpower Development and Training Act program for fiscal year 1965 as of March 31.

(The table referred to follows:)

Status of Manpower Development and Training Act program as of Mar. 31, 1965

Item

1964 program, remaining allowance expenses. 1965 projects approved through March 31, 1965.

Total costs through March 31, 1965..

1965 projects approved, pending availability of funds.

Program development reported by States to be submitted prior to June 30,

ESTIMATED PROGRAM IN EXCESS OF AVAILABLE FUNDS

Mr. RUTTENBERG. The above table shows in substance that through March 31, 1965, we have an estimated fiscal year 1965 program of $444.7 million, for which we have a current appropriation of $245 million, or an estimated excess of program over available funds amounting to $199.7 by June 30.

The House allowance would reduce this excess to $129.7 million while, if the Senate allows the full request, the program excess which would have to wait for the 1966 appropriation for fund approval would be $104.2 million. The Manpower Development and Training Act program has clearly developed more rapidly throughout the country this year than the Congress visualized in establishing its legislative authorization and in the appropriation of funds.

In the 1963 amendments, the Congress specifically urged all concerned with the administration of the act to proceed even more vigorously with development of programs so that as many unemployed persons as possible might be trained and thus find useful employment as early as possible. Approval of the full supplemental request rather than the House allowance will mean that training programs for an estimated 36,000 persons or an additional 16,000 trainees can be approved this spring, even though present estimates indicate that over $100 million worth of training programs will have to await next year's appropriations to get underway.

PROGRAM STATUS

Several attached tables show the status of the program. Table 1 shows by State the projects under development, to be approved prior to June 30 pending funding ability. This table totals $148.4 million. Table 2 shows the distribution by State of the supplemental request as allowed by the House and as requested at the full amount. Table 3 shows by State the fiscal 1965 programs which have been approved through March 31, 1965.

From this evidence, I hope it is clear that (a) with expected approval of the amendments to the act momentarily, (b) with the volume of training projects reported pending in the States, and (c) evidence of our ability to provide fast approval action when funds are available,