Hon. RALPH YARBOROUGH, DEPARTMENT OF AGRICULTURE, OFFICE OF THE SECRETARY, Washington, D.C., November 8, 1969. Chairman, Committee on Labor and Public Welfare, DEAR MR. CHAIRMAN: This is in reply to your request of September 2 for our views on S. 2838, a bill "To establish a comprehensive manpower development program to assist persons in overcoming obstacles to suitable employment, and for other purposes." This Department favors enactment of this bill which would carry out the President's recommendations to establish a more comprehensive, unified, and flexible manpower program. The bill seeks to improve the Nation's manpower development programs and services by consolidation and by integration of efforts of Federal, State, local authorities, employers, employees, and other public and private groups. It would delegate responsibilities to and require comprehensive plans from States, provide for training allowances, establish a national computerized job bank, and provide for related labor market and research information. It would transfer the Job Corps to the Department of Labor, establish an advisory committee composed of individuals from private life, establish an inter-governmental advisory council selected from elected State or local public officials, and enable use of the manpower program as an economic stabilizer. In view of the increasing technical nature of our society, we believe these changes are conducive to enabling many workers to qualify for meaningful employment and enhancing the Nation's productive capacity and prosperity. The proposed active manpower policy will contribute significantly as an economic stabilizer. For these reasons, we recommend that this bill be enacted. The Bureau of the Budget advises that there is no objection to the presentation of this report and that enactment of S. 2838 would be in accord with the President's program. Sincerely, CLIFFORD M. HARDIN, Secretary of Agriculture. GENERAL ACCOUNTING OFFICE, Washington, D.C., November 17, 1969. B-163922. Hon. RALPH YARBorough, Chairman, Committee on Labor and Public Welfare, U.S. Senate. DEAR MR. CHAIRMAN: This is in reference to your letter of September 2, 1969, requesting our views on S. 2838. The purpose of the bill is stated in section 2(8) thereof as being to establish a comprehensive and coordinated national manpower program, involving the efforts of all sectors of the economy and all levels of government. If enacted, it would be cited as the "Manpower Training Act of 1969." The bill provides for the repeal of all programs and activities, such as the on-thejob training, institutional training, and labor mobility demonstration projects authorized under the Manpower Development and Training Act of 1962 (MDTA), as amended (42 U.S.C. 2571 et. seq.). The bill also provides for the repeal of title part A of the Economic Opportunity Act of 1964 (EOA), as amended (42 CS.C. 2701 et seq.); for the transfer to the proposed act of title I, part A of the EOA; and the amendment of title I, part B of the 1964 act. These provisions of the EOA currently provide the authority for programs such as the Neighborhood Youth Corps (NYC), Job Corps, Work Experience, New Careers, Operation Mainstream, and Job Opportunities in the Business Sector. The programs and activities that would be repealed would, in effect, be authorized under section 101 of title I of S. 2838. In order to carry out its purpose the bill provides, among other things, for a State grant systems; a National Computerized Job Bank; a means of facilitating the use of the manpower program as an economic stabilizer by automatically increasing appropriations 10 percent if the national unemployment rate reaches 4% percent for three consecutive months; and establishes an Intergovernmental Advisory Council on Manpower, composed of Governors, Mayors, and other local officials. Since the proposed legislation involves matters of policy primarily for determination of the Congress, we make no specific recommendations with respect to its enactment. However we offer the following comments concerning certain provisions of the bill. Section 101(7) authorizes a program which would include part-time work for students in the ninth through twelfth grades (and youths of equivalent agess to assist them in remaining in or returning to school; and to enhance, to the extent feasible, their educational growth. Similar provisions are contained in section) 123(a) (1) and (2) of the EOA of 1964, as amended, which has been the authority for the NYC program. The NYC program provides part-time employment, on-the-job training, and useful work experience for students from low-income families who are in the ninth through twelfth grades of school (or are of an age equivalent to that of students in such grades) and who are in need of the earnings to permit them to resume or maintain attendance in school. Pursuant to the direction set forth in title II of the Economic Opportunity Amendments of 1967 (81 Stat. 727), the General Accounting Office made a review of economic opportunity programs including the NYC program authorized by the EOA and the results of this review are contained in our summary report to the Congress on the "Review of Economic Opportunity Programs" (B-130515, March 18, 1969). In the summary report, we discussed a number of conclusions and recommendations regarding the NYC program which we believe are applicable to the program to be authorized under section 101(7) and other sections of S. 2838. In the summary report we concluded, concerning the in-school and summer components, that "The great majority of youths who have been enrolled in the NYC program in-school and summer components would probably have remained in or dropped out of school irrespective of their enrollment in the NYC program. The benefits of the program to this majority, therefore, appears to have consisted of (1) additional income; (2) some useful work experience; and (3) some intangible benefits, such as improved attitude toward the community, improved dress, and greater self-esteem. We made no attempt to compare these benefits with the costs of the program. Such analysis would require highly speculative assumptions as to the value to be placed on these various benefits. "If, in the Congress' view, the in-school and summer components can be construed as primarily a program to supplement the income of the poor, provide some work experience to youths along with certain related side benefits, and inject funds into the locality, continued operation of these components under the present basic procedures seems appropriate, although it must be recognized that present funding levels providing for the enrollment of only a small percentage of all youths that are eligible for the program on the basis of poverty level family income. However, if it is intended that the NYC program be used as a force to mitigate the dropout problem in any significant way, greater flexibility should be provided in the use of funds. In these circumstances it appears that available funds might be more effectively used for such things as the enlargement of existing school curriculums to provide for vocational education and for more intensive and professional counseling and tutoring for potential dropouts." Concerning the out-of-school component, we stated: "Consideration should be given to whether there is a need for retaining the NYC out-of-school component, since the objectives of this component appear to be encompassed in the objectives of other more firmly established programs, such as the Manpower Development and Training Act program. If the out-of-school component of the NYC program is to be continued, there is a need for much more intensive effort by NYC sponsors to improve and upgrade the work training provided to enrollees in conformity with clearly expressed legislative intent.' In accordance with the foregoing conclusions, we recommended that the Congress: "(1) consider redefining and clarifying the purposes and intended objectives of the in-school and summer work and training programs authorized for students in section 123(a)(1) of the EOA, as amended, and establishing specific and realistic goals for programs authorized and relative priorities for the attainment of such established goals; "(2) consider merging the out-of-school' program, currently authorized in section 123(a) (2) of the EOA for persons aged 16 and over with the MDTA program." Section 101(8) of S. 2838 provides that funds may be expended for relocation assistance, including grants, loans, and the furnishing of such services as will aid an involuntarily unemployed individual to relocate in an area where he may obtain suitable employment. Since all other financial assistance under S. 2838 is in the form of grants, we believe that the bill should indicate the conditions under which loans rather than grants are to be made. Subsection 104(a) (1) states that rules, regulations, standards of performance, or guidelines established by the Secretary of Labor relating to program components in subsection 104(b) shall have the concurrence of the Secretary of Health, Education, and Welfare. Subsection 104(b) provides that the Secretary of Labor shall determine whether a State plan meets the requirements of the proposed MTA except that with regard to programs which are of a health, education, or welfare character or which are under the usual and traditional authority of the Secretary of Health, Education, and Welfare, the plan may not be approved without the concurrence of the Secretary of Health, Education, and Welfare. However, section 104(c) provides that the Secretary of Labor may approve all or any portion of a plan submitted by a State. [Italic supplied.] We suggest that subsection 104(c) may not be consistent with subsections 104(a)(1) and 104(b) and that the Committee may therefore wish to revise section 104 to clarify the extent of participation of the Secretary of Health, Education, and Welfare and the Secretary of Labor in the approval process. Title III of S. 2838 would provide for the establishment of a comprehensive program of manpower information, research, and development, utilizing the methods, techniques, and knowledge of the behavioral and social sciences and such other methods, techniques, and knowledge as will aid in the solution of the Nation's manpower problems. Section 302 of title III provides that the Secretary of Labor shall develop a comprehensive system of labor market information on a national, State, local, or other appropriate basis; and that information collected under this section shall be developed and made available in a timely fashion to meet in a comprehensive manner the needs of public and private users, including the need for such information in recruitment, counseling, education, training, placement, job development, and other appropriate activities under this proposed act and other relevant Federal statutes. We believe that the contents of section 302 would be more appropriately located under title IV of S. 2838 since section 302 is concerned with the development of a comprehensive system of labor market information which is consistent with the findings and purpose statement in section 401 under title IV. We therefore suggest that consideration be given to relocating section 302 from its present position and incorporating it under title IV as a new section 402. This change would necessitate changing the present sections 402, 403, 404, and 405 to read sections "403", “404”, '405", and "406", respectively. Section 403 of S. 2838 would authorize the Secretary of Labor to make grants to State or local agencies for the planning and administration of the program, including the purchase or other acquisition of necessary equipment. Section 612(d) authorizes the Secretary to vest in public or private nonprofit agencies title to equipment purchased to carry out the provisions of the proposed MTA. We suggest that S. 2838 provide that, the Secretary of Labor be required to establish appropriate procedures and requirements for the return, utilization, or other disposition of equipment purchased with funds authorized by the proposed MTA, in the event the public or private nonprofit agencies acquiring title to equipment cease to operate the authorized programs or projects. Such procedures would permit the Government to utilize the equipment in other programs or projects having a need for it. Section 405 of S. 2838 provides that the Secretary of Labor shall prescribe such rules and regulations and standards as may be necessary to carry out the purposes of title IV, including standards to assure the compatibility on a nationwide basis of data systems used in carrying out the program established by the title, and including rules and regulations to assure the confidentiality of information submitted in confidence. We suggest substituting a semicolon for the period at the end of section 405 and adding the following: but not so as to impair any audit or examination by the Comptroller General, or any of his authorized representatives." There are numerous provisions in the bill calling for evaluation of manpower training programs. Some such provisions are critical to the operation of the law should it be passed. Section 102 calls on the Secretary of Labor to promulgate standards relating to planning for allocation of resources, program effectiveness, and efficiency and economy, including unit costs, in carrying out the programs. Section 104 (a) (2) calls for State plans to provide for development of standards for evaluating the effectiveness of programs. Section 104(a) (5) provides that appropriate State manpower planning organizations and area comprehensive manpower planning advisory bodies shall have an opportunity to fully assess the operation of State and area programs. The next section, 105, provides planning grants. Section 106 provides that the Secretary of Labor may withhold further grants from States determined to be no longer in compliance with exemplary standards. Section 304 calls for continuing evaluation of all programs and activities conducted pursuant to the hill. A number of other provisions call for a variety of research and demonstration efforts. In general, the thrust of these provisions requires-on the part of the Secretary of Labor-the ability to prescribe meaningful and realistic standards; and it requires on the part of the States-the ability to respond with appropriate data, including costs, applicable to these standards. It is questionable whether either the Secretary or the States can perform fully in this regard without considerable forethought and preparation. If agreement on appropriate standards is reached, there will be serious problems in developing reliable and consistent data. The need for compatibility of data on a nationwide basis is recognized in section 405. Funding needs for these purposes of section 404 are likely to be large in early years of the program when the most serious problems of data development and compatibility will have to be overcome. In this regard, your Committee might wish to consider relating the exemplary standards provided under section 106(a) (4) to the Statement of Findings and Purpose (section 2) and to the objectives of some of the studies described in section 301. To this end, it may wish to specify in the bill that the Congress receive periodic reports from the Secretary of Labor as to progress in the development of these standards supported by the studies referred to above. While the bill provides generally that the programs authorized therein would be financed by grants made to State agencies, it is noted that under certain circumstances the Secretary may conduct such programs directly or through grants, contracts, or agreements with public or private agencies, individuals or organizations as he finds appropriate. Under section 202 of the Intergovernmental Cooperation Act of 1968 the Secretary and the Comptroller General would have asccess for the purpose of audit and examination to any books, records, etc., that are pertinent to the grant-in-aid received by the States. However, nothing in the bill authorizes the Secretary or the Comptroller General to have access to pertinent records of local public or private agencies, individuals, organizations, etc., nor does section 202 of the Intergovernmental Cooperation Act of 1968 authorize access to records of such agencies, individuals or organizations. We recommend, therefore, that the bill be amended to include language which would provide for the Secretary and the Comptroller General or their representatives to have access for the purpose of audit and examination to the books and records of these recipients. To carry out such recommendation, we suggest that a section containing language as set forth below be added to title VI as a new section 609 with appropriate renumbering of subsequent sections. "SEC. 609. (a) Each recipient of assistance under this Act pursuant to grants, agreements or contracts entered into under other than competitive bidding procedures, and other arrangements shall keep such records as the Secretary shall prescribe, including records which fully disclose the amount and disposition by such recipient of the proceeds of such assistance, the total cost of the project or undertaking in connection with which such assist ance is given or used, and the amount of that portion of the cost of the project or undertaking supplied by other sources, and such other records as will facilitate an effective audit. "(b) The Secretary and the Comptroller General of the United States, or any of their duly authorized representatives, shall have access for the purpose of audit and examination to any books, documents, papers, and records of the recipients that are pertinent to the grants, agreements, or contracts entered into under this Act under other than competitive bidding procedures, and other arrangements." The word "asistance" appearing on page 20, line 4, should be "assistance." Also, line 5, page 58, should be changed to read "notice of funding available under this Act, appropriations for." Sincerely yours, ELMER B. STAATS, Comptroller General of the United States. Department of HOUSING AND URBAN DEVELOPMENT, Subject: S. 2838, 91st Congress (Javits). Hon. RALPH YARBorough, Washington, D.C., November 7, 1969. Chairman, Committee on Labor and Public Welfare, U.S. Senate, Washington, D.C. DEAR MR. CHAIRMAN: This is in further reply to your request for the views of this Department on S. 2838, a bill "To establish a comprehensive manpower development program to assist persons in overcoming obstacles to suitable employment, and for other purposes.' S. 2838 would combine in one statute the program authority now found in the Manpower Development and Training Act and Title I of the Economic Opportunity Act. An "Umbrella" manpower development agency would be established in each State along with local manpower agencies and Administrative leadership for these programs would be placed in the States and municipalities. Other provisions of the bill would establish a national computerized job bank, transfer all job corps functions to the Secretary of Labor, and authorize automatic expansion of appropriations (10 percent of the amount appropriated under the Act during the fiscal year) whenever the U.S. unemployment rate reaches 4.5 percent for 3 consecutive months. The consolidation and decentralization of existing major manpower development programs proposed in this bill is especially desirable. It will encourage State and local governments to develop job training programs commensurate with regional and metropolitan needs. Decentralization should also promote State and local coordination of job development programs with related planning efforts directed towards creating a desirable urban environment. This Department fully supports the general approach taken in S. 2838 and recommends its enactment. We would defer to the Department of Labor as to the relative merits of the many detailed provisions in the bill. The Bureau of the Budget has informed us that it has no objection to the submission of this report and that enactment of this legislation would be in accord with the program of the President. Sincerely, GEORGE ROMNEY, Secretary of the Department of Housing and Urban Development. Hon. RALPH YARBOrough, OFFICE OF ECONOMIC OPPORTUNITY, Chairman, Committee on Labor and Public Welfare, DEAR MR. CHAIRMAN: We appreciate being asked to comment on S. 2838, the "Manpower Training Act of 1969." The proposed legislation is designed to carry out the recommendations of the President in his Message to the Congress of August 12 on Manpower Training. This proposal would utilize a constructive partnership of Federal, State, and local governments, and we believe it will be effective in providing manpower services to the unemployed, underemployed, and low-income groups. Under the provisions of S. 2838, the Office of Economic Opportunity would retain broad authority to conduct research, experimental, and developmental activities focused on providing more effective means for solving the manpower problems of the economically disadvantaged. These activities will involve not only the development and testing of new approaches but also experimentation with refinements and variations of traditional approaches in dealing with manpower problems. In summary, it is our view that S. 2838 will carry out the recommendations of the President in his August 12 Message, and we urge that it be enacted. We are advised by the Bureau of the Budget that the enactment of this proposed legislation would be in accord with the President's program. Sincerely, DONALD RUMSFELD, Director. |