House calls for elimination of training programs.

The House Committee on Education and the Workforce today released two bills that would eliminate as many as 33 federal workforce development programs, while dramatically restructuring the composition of local workforce investment boards to limit the voice of community-based organizations, community colleges, and other key workforce system stakeholders.

The Streamlining Workforce Development Programs Act (HR 3610), introduced by Rep. Virginia Foxx (R-NC), calls for the consolidation of 33 of the 47 training programs identified in a January 2011 Government Accountability Office (GAO) report into four “Workforce Investment Funds”:

• A Workforce Investment Fund, which would provide formula funding to states for job training services to adults, unemployed workers, and youth seeking employment. The bill authorizes $4.3 billion annually for Fiscal Year (FY) 2013-2018;
• A State Youth Workforce Investment Fund, which would provide formula funds to states to serve the nation’s disadvantaged youth, with a focus on school completion. The bill authorizes $1.9 billion annually for FYs 2013-2018;
• A Veterans Workforce Investment Fund, which would provide formula funds to states for employment and training services to U.S. veterans. The bill authorizes $218 million annually for FYs 2013-2018; and
• A Targeted Populations Workforce Investment Fund, which would provide formula funds to states for assistance to special populations, including Native Americans and migrant and seasonal farmworkers. The bill authorizes $581 million annually for FYs 2013-2018.

The bill would repeal authorization for a range of existing training and employment programs, including Job Corps, Supplemental Nutrition Assistance Program Employment & Training (SNAP E&T), the Senior Community Service Employment Program, and virtually all activities currently authorized under the Wagner-Peyser Act.
 
The bill would require state and local leaders to set “common performance measures” for all employment and training programs. The bill would also give governors greater power over the designation of workforce areas, and would permit states to submit single workforce development plans for all job training and related programs, including activities funded under TANF and Perkins Career and Technical Education grants.

The Local Job Opportunities and Business Success Act (HR 3611), introduced by Rep. Joe Heck (R-NV), would mandate that two-thirds of all workforce investment board members be employers, and would eliminate representation requirements for WIA partner programs, local educational entities, and labor organizations.  The bill would mandate that local boards reserve a minimum percentage of funds for training activities, according to criteria determined by such boards.

National Skills Coalition will review these bills and provide in-depth analysis of potential impacts to the workforce field in the coming days. We are deeply concerned that the proposed changes may significantly reduce access to postsecondary education and training services that U.S. workers, jobseekers, and businesses rely on to compete in the 21st century economy. We look forward to working with the House Education and the Workforce Committee to evaluate the potential impacts of these bills and make any changes necessary to reform and improve the nation’s workforce investment system while ensuring that economic recovery and growth are not unduly disrupted.