[BUREAU OF EMPLOYMENT SECURITY] [LIMITATION ON SALARIES AND EXPENSES] (Trust fund) [For expenses necessary for the general administration of the employment service and unemployment compensation programs, not more than $13,325,000 may be expended from the employment security administration account in the Unemployment trust fund, of which $1,605,000 shall be for carrying into effect the provisions of title IV (except section 602) of the Servicemen's Readjustment Act of 1944.] (29 U.S.C. 49-49n; 38 U.S.C. 2001-2014; 42 U.S.C. 501-503, 1101-1105, 1361-1371; 78 Stat. 960 Department of Labor Appropriation Act, 1965.) Note. Estimate for activities previously carried under this title has been transferred in the estimates to Manpower Administration, Salaries and Expenses." This account is established to make advances from the general fund of the Treasury to the Unemployment Trust Fund for Grants to States for Unemployment Compensation and Employment Service Administration account to provide for expanded youth and statistical services. LIMITATION ON GRANTS TO STATES FOR UNEMPLOYMENT COMPENSATION AND EMPLOYMENT SERVICE ADMINISTRATION (Trust fund) For grants in accordance with the provisions of the Act of June 6, 1933, as amended (29 U.S.C. 49-49n), for carrying into effect section 602 of the Servicemen's Readjustment Act of 1944, for grants to the States as authorized in title III of the Social Security Act, as amended (42 U.S.C. 501-503), including, upon the request of any State, the purchase of equipment, and the payment of rental for space made available to such State in lieu of grants for such purpose, and for expenses not otherwise provided for, necessary for carrying out title XV of the Social Security Act, as amended (68 Stat. 1130), [$455,076,000] $492,100,000 may be expended from the employment security administration account in the Unemployment trust fund, and of which [$25,000,000 $20,000,000 shall be available only to the extent necessary to meet increased costs of administration resulting [from increases in the base salary rate in excess of the rate in the fiscal year 1965 appropriation request, and] from changes in a State law or increases in the number of claims filed and claims paid or increased salary costs resulting from changes in State salary compensation plans embracing employees of the State generally over those upon which the State's basic grant (or the allocation for the District of Columbia) was based, which increased costs of administration cannot be provided for by normal budgetary adjustments: Provided, That any portion of the funds granted to a State in the current fiscal year and not obligated by the State in that year shall be returned to the Treasury and credited to the account from which derived: Provided further, That such amounts as may be agreed upon by the Department of Labor and the Post Office Department shall be used for the payment, in such manner as said parties may jointly determine, of postage for the transmission of official mail matter in connection with the administration of unemployment compensation systems and employment services by States receiving grants herefrom. Grants to States, next succeeding fiscal year: For making, after May 31 of the current fiscal year, payments to States under title III of the Social Security Act, as amended, and under the Act of June 6, 1933, as amended, for the first quarter of the next succeeding fiscal year, such sums as may be necessary, the obligations incurred and the expenditures made thereunder for payments under such title and under such Act of June 6, 1933, to be charged to the appropriation therefor for that fiscal year: Provided, That the payments made pursuant to this paragraph shall not exceed [the amount paid to the States for the first the amount obligated by the United States for such purposes for the fourth quarter of the current fiscal year. (29 U.S.C. 49-49n; 38 U.S.C. 2001-2014; 42 U.S.C. 501-503, 1101-1105, 13611871; 78 Stat. 960, Department of Labor Appropriation Act, 1965.) Grants are made to the States for administration of the programs for the Unemployment Insurance Service and the Employment Service. Requirements for 1966 are estimated at $492,100 thousand, an increase of $36,464 thousand over the 1965 limitation primarily for increased tax workloads, State law changes, contested claims and appeals in Unemployment Insurance, Employment Service improvements and for increases in personal services costs related to increments and statewide compensation plan changes for State employees. 1. Unemployment insurance service.-State employment security agencies pay unemployment compensation to unemployed workers eligible under State unemployment insurance laws and collect unemployment taxes from employers who are subject to State unemployment insurance laws. Unemployment benefits are also paid to unemployed Federal workers and ex-servicemen from funds provided under Federal appropriation. Federal grants in 1964 provided State administrative costs to collect $3 billion in taxes, and to pay $2.6 billion in State benefits to unemployed workers. Insured unemployment is expected to decline from its 1964 level to 1.6 million average per week in 1965 and to 1.5 million in 1966. 2. Employment service. Under the Federal-State employment service system, Federal grants finance a nationwide network of 1,900 local employment offices administered by State employment security agencies. The local offices provide a community manpower service by providing workers for employers having jobs to offer, by develop MANPOWER ADMINISTRATION-Continued General and special funds-Continued LIMITATION ON GRANTS TO STATES FOR UNEMPLOYMENT COMPENSATION AND EMPLOYMENT SERVICE ADMINISTRATION-continued (Trust fund)—Continued ing and carrying out programs designed to alleviate the employment, unemployment, and manpower utilization problems of the area, and by providing special services to employers, individuals, and community agencies or groups requiring and seeking them. These basic employment service functions are supplemented by counseling and testing services to assist applicants in obtaining suitable jobs or upgrading their skills through further training, and by assisting employers in analyzing their skill requirements and in solving problems of recruitment and turnover. In 1965 a new program was initiated to improve and expand youth employment services. This high priority effort was in response to (a) the fact that the unemployment rate for youth between 16 and 21 was about 15%; about three times the national average, and (b) the need to give special emphasis to alleviating the effects of poverty on young people. Funds in 1965 and 1966 will provide for a major expansion of youth employment services in all metropolitan areas with a population of over 200,000. The program will be tied in closely, both locally and nationally, with antipoverty plans and programs. Specific procedures are in effect to insure that these expanded services are designed and administered, in each community, to contribute most effectively to that community's action plans to combat poverty. The expanded youth employment assistance to be rendered is divided into three major categories: preparation for employment, development of job opportunities, and placement in a suitable job. The activities include counseling and testing, referral to training facilities, referral to other community agencies for diagnostic or remedial services, or referral to and placement in part-time, stop-gap, or regular jobs. Specialized attention is given to those youth who are educationally and environmentally disadvantaged, particularly, school dropouts, members of minority groups, and others coming from culturally deprived and poverty-stricken surroundings. In 1965 the grants funds are being augmented by MDTA funds in order to get the program underway. In 1966 the available grants funds are insufficient to continue and expand the program and therefore the budget proposes a $39 million advance from general funds. These 1965 and 1966 funds will provide for a threefold expansion over the 1964 level in specialized youth employment personnel. These funds will also enable the Department to carry forward a program of collecting job vacancy information initiated on a pilot basis in 1965. About $2 million is identified for this purpose. 1 Includes estimated workload resulting from expanded program for services to youth. 3. Administration and management.-State agency administrative staff provides leadership and direction for the program activities in the State and local offices; plan and guide the establishment and maintenance of a balanced, comprehensive program for the effective development and training of all State agency staff on both inservice and outservice bases; control the financial management and statistical reporting programs of the employment security system to assure their effectiveness, efficiency and economy; and provide all administrative support services. 4. Contingencies.-An allowance is provided to meet increases in administration costs due to unforeseen increases in the number of claims filed for unemployment compensation, changes in State unemployment compensation laws, and for additional costs due to changes in State employee salary rates brought about by changes in State compensation plans embracing employees of the States generally. A supplemental estimate for 1965 is proposed for separate transmittal. Special services are offered to displaced older workers, 99.0 the handicapped, minority group job seekers, and veterans, in accordance with their needs. These services include job training and retraining, assistance in obtaining diagnostic or remedial services, and referral to and placement in temporary or permanent jobs. Programs are carried on to aid communities to develop employment opportunities and to provide necessary 428,967 455,374 531,701 -428,678-455,076-531,380 289 298 321 Total number of permanent positions. Average number of all employees. Average GS salary 2222 1 Under existing legislation, 1965. Funds will be requested to strengthen State agency farm placement staffs and facilities to recruit domestic farm workers made necessary by the expiration of the Public Law 78 program. UNEMPLOYMENT COMPENSATION FOR FEDERAL EMPLOYEES AND EX-SERVICEMEN For payments to unemployed Federal employees and ex-servicemen, as authorized by title XV of the Social Security Act, as amended, [$126,000,000 $141,000,000, together with such amount as may be necessary to be charged to the subsequent year appropriation for the payment of benefits for any period subsequent to March 31 of the current year. Unemployment compensation for Federal employees and exservicemen, next succeeding fiscal year: For making, after May 31 of the current fiscal year, payments to States, as authorized by title XV of the Social Security Act, as amended, such amounts as may be required for payment to unemployed Federal employees and exservicemen for the first quarter of the next succeeding fiscal year, and the obligations and expenditures thereunder shall be charged to the appropriation therefor for that fiscal year: Provided, That the payments made pursuant to this paragraph shall not exceed the amount paid to the States for the first quarter of the current fiscal year. (38 U.S.C. 2001-2009; 42 U.S.Ĉ. 1361-1371; 78 Stat. 961; Department of Labor Appropriation Act, 1965.) Program and Financing (in thousands of dollars) Funds are allocated to the States for payment of unemployment compensation to eligible Federal employees and ex-servicemen. The schedule above does not include $20 million for Federal employees and ex-servicemen to be requested in a supplemental appropriation for 1965. 1. Payments to Federal employees are made in accordance with the State unemployment compensation laws. The cost of the program will decrease by $2 million in 1966. An estimated increase of $2.1 million resulting from a higher average weekly benefit amount related to changes in State laws and the pay raise of Federal civilian personnel, Public Law 88-426, approved August 14, 1964, will be offset by a decrease of $3.3 million due to an anticipated decrease in weeks compensated, and a decrease of $0.8 million for a reduction in the adjustment factor for supplemental and point claims. Weeks compensated... WORKLOAD STATISTICS Weekly average insured unemployment... Average weekly benefits.. 1964 actual 1965 estimate 1966 estimate 1963 actual 1,474,028 1,581,027 1,450,000 1,365,000 29,810 31,976 29,330 27,600 $36.75 $36.77 $38.00 $39.50 2. Payments to ex-servicemen are made in accordance with the State unemployment compensation laws. The cost of the program will decrease by $3 million in 1966. An estimated increase of $2.8 million resulting from a higher average weekly benefit amount related to changes in State laws and the pay raise for military personnel under Public Law 88-422, approved August 12, 1964, will be offset by a decrease of $5.1 million due to an anticipated decrease in weeks compensated and a decrease of $0.7 million for a reduction in the adjustment factor for supplemental and joint claims. WORKLOAD STATISTICS Total program costs, funded-ob ligations (object class 13.0).. Weeks compensated.. Weekly average insured unemployment. 40 Average weekly benefits.. 57,881 53,492 48,480 45,690 $32.67 $33.54 $36.54 $37.75 A supplemental appropriation for 1965 is proposed for separate transmittal. Under existing legislation, 1965.-Funds will be requested to provide benefit payments to more unemployed Federal employees and ex-servicemen than can be financed from the 1965 appropriation. [COMPLIANCE ACTIVITIES, MEXICAN FARM LABOR PROGRAM] [For expenses necessary to enable the Department to determine compliance with the provisions of contracts entered into pursuant to the Act of July 12, 1951, as amended, $800,000.] (7 U.S.C. 1461-1468; International Executive Agreement, August 11, 1951, as amended, Department of Labor Appropriation Act, 1965.) Program and Financing (in thousands of dollars) Identification code [SALARIES AND EXPENSES, MEXICAN FARM LABOR PROGRAM] [For expenses, not otherwise provided for, necessary to carry out the functions of the Department of Labor under the Act of July 12, 1951, as amended (7 U.S.C. 1461-1468), including temporary employment of persons without regard to the civil-service laws, $800,000, or so much thereof as may be available, shall be derived by transfer from the Farm labor supply revolving fund.] (Department of Labor Appropriation Act, 1965.) Program and Financing (in thousands of dollars) Total number of permanent positions.... 164 164 0 Average number of all employees.. 132 77 0 Average GS grade.. 8.0 8.0 0 Average GS salary. 0 12-15-0322-0-1-652 12-15-0321-0-1-652 1. Determining Mexican labor requirements. 2. Supplying Mexican labor.... gram costs, funded). 3. Administration and management. Change in selected resources 1,300 1 -1 |