By Josie Hathway
February 17, 2003

Mayors' workforce directors from cities across the country gathered in Washington, D.C on January 22 and 23 for The U.S. Conference of Mayors Workforce Development Council (WDC) Annual Winter meeting held in conjunction with the Conference's 71st Annual Winter meeting. Cities attending included Albany, Baltimore, Boston, Bridgeport, Caguas, PR, Carson (CA), Chattanooga, Chicago, Columbus (GA), Columbus (IN), Detroit, Fort Wayne, Gary, Hawthorne (CA), Houston, Kansas City (MO), Las Vegas, Long Beach, Los Angeles, Nashville, New Orleans, New York City, Norfolk (VA), Philadelphia, Phoenix, Pittsburgh, Portland, Providence, San Diego, San Francisco, Seattle and Waldorf (MD).

The WDC elected Larry Fitch, President and CEO of the San Diego Workforce Partnership, Inc. as its new President. Fitch took over from Conny Doty, Director for Jobs and Community Services in Boston.

Reauthorization of the Workforce Investment Act Mayors Authority Shared?

Mason Bishop, Deputy Assistant Secretary of the Employment and Training Administration, at the U.S. Department of Labor (DOL), who could not give definite answers in order to not preempt the President's February 3 budget release, which included a broad sketch of their WIA proposal, said that the Administration "does not seek to take power away from locals, so to speak." "We will not eliminate mayors' appointment authority. We have explored how to expand appointment authority. We will continue to have a great portion of the board members appointed by the local elected official." Bishop indicated that board appointment authority may be shared by local Chambers of Commerce. He indicated that DOL wants to give Governors more power in order to have more consistency in One'stops.

USCM is calling for strong local governance authority for mayors and their local WIBS, not shared authority. The Administration's WIA proposal in the President's 04 Budget only included general approaches to WIA reauthorization. It did not discuss local elected official appointment authority or changes in the allocation of local funding, though Bishop discussed these issues with the WDC.

Significant Reduction of Local Funds

Bishop said, "Local workforce areas will maintain at least the funding they are getting now." Without specifics, the conjecture is that the Administration plans to give governors more discretion in allocating local workforce funds. Leaks have indicated that there will be significant reduction of local resources by moving 50 percent of WIA funding to states. Current law gives states 15 percent of WIA funding and 85 percent to locals. The Conference of Mayors calls for retaining at least 85 percent of federal fund at the local level as in the current law, and an increase in resources for laid-off workers to address their job training and placement needs.

Both Bishop and Linda Pagelsen, Minority Staff Assistant, House Appropriations Subcommittee on Labor, Health and Human Services, Education and Related Agencies, said that the President's FY 04 Budget will mirror the FY 03 funding proposal, which is a cut of over $600 million, a 20 percent reduction from FY 02 levels.

Youth Programs At Risk — No Summer Jobs

The Conference of Mayors calls for retaining and expanding youth employment programs, both year-round and summer. Bishop said there will be a very strong focus on out-of'school youth and in'school services will be moved to the Department of Education. The Administration is eliminating Youth Opportunity Grants (YO). "We don-t want YO revisited, but there will be an opportunity for current YO sites to compete for state dollars and continue", said Bishop. The Administration is not proposing a summer jobs program. "Emily (ETA Assistant Secretary DeRocco) is not averse to summer employment," said Bishop. He indicated that there will be room in the program for it. However, analysts say that without an in'school youth program, summer youth employment for in'school youth would not happen.

Bishop said the Administration hopes to end local turf wars over funding of the infrastructure of the one'stops; change both the local and state boards to be smaller, more manageable; bridge the gap between WIA and the Employment Service; provide more services to incumbent workers; more creativity on business matching levels, and dramatic change in the H-1B program in the FY 04 budget.

Personal Reemployment Accounts (PRA)

Bishop said that the proposed Personal Re-employment Accounts (PRAs) may be attached as an amendment to WIA legislation if WIA moves before the stimulus package. This $3.6 billion two-year initiative was mentioned by the President a few weeks ago as a part of his economic stimulus plan. Certain unemployed workers could elect to forgo 13 weeks of extended unemployment benefits for a $3,000 PRA. The worker could use it for training or other assistance to find a job. If he/she found a job and had funds still in his PRA, that worker could keep the difference. Bishop said that what works well in the PRA will be incorporated into WIA down the road. Individual choice is central to the PRA concept. Bishop said that PRAs are an "experiment to find out how people use their money." WDC members were concerned about individuals who may want training that is not needed for jobs in the local labor market and the accountability measures for the program.

Wendell Primus, Director of Income Security at the Center on Budget and Policy Priorities said that 7- 8 million workers will exhaust their UI benefits over the next two years, while the Administration's proposal will only help 1.2 million people.

Hill Response

Annie White, Labor Counsel, Senate Committee on Health, Education, Labor and Pensions (HELP) for Senator Judd Gregg (NH), Chair of the HELP Committee, does not see major changes in WIA reauthorization. Senator Gregg would like to see an increase in the involvement with the private sector and some one'stop infrastructure funding.

Jane Oates, Senior Education Advisor, Senate Committee on Health, Education, Labor and Pensions for Senator Edward M. Kennedy (MA), Ranking Member of the HELP Committee, said that the good news on PRAs is that it is the first time this Administration has recognized the need for more dollars for workers, though she is concerned about sustaining the system. Oates and White said there will be a strong bi-partisan approach to reauthorization in the Senate. Oates urged, "We need facts from local areas about what is going on. It has never been more critical." Oates expressed concern over the shared authority for mayors. "Good WIA implementation happens when the lead elected official is behind it," said Oates.

Stephanie Milburn, Majority Professional Staff, House Committee on Education and the Workforce for Representatives John A. Boehner (OH) and Howard "Buck" McKeon (CA) said both members are very excited about President's PRAs proposal which they introduced on January 29. They want PRA to work through the workforce and one'stop system. Milburn urged, "Educate your members. Bring them to your One'stops to visit. We need to develop champions in Congress for workforce issues."

Michelle Varnhagen, Minority Labor Coordinator, House Committee on Education and the Workforce for George Miller (CA), raised questions about where the $3.6 billion for PRAs is coming from. "Either the money is out of existing WIA dollars or a portion of WIA, where the states can do what they want with it," said Varnhagen.

High Unemployment and Its Impact on Low-Income and TANF Workers

Don Winstead, Deputy Assistant Secretary, of Human Services Policy at the U.S. Department of Health and Human Services (HHS) said that TANF caseloads have not had a corresponding hike to the rising unemployment rate. Though there are some states showing an increase in caseload, HHS research indicates a continued gradual decline in TANF caseload. Primus countered saying that the Administration's TANF reauthorization proposal does not build on the success and proven factors for gains in employment: a strong economy, work supports and funding and flexibility for services under TANF. Instead this proposal has funding cuts and less flexibility. Primus said TANF has not performed well as a safety net in this recession.

Business and Industry Panel

Jim Bentley's, Senior Vice President for Strategic Policy Planning, American Hospital Association, major priority is the worker and skill shortage in the hospital industry. Bentley made specific suggestions to WDC, some as follows:

• Get more health care professional on school boards
• Help them break down stereotypes that health care careers are for white females
• Reach out to hospitals, find out their needs and welcome them in your one'stops

Marjorie Bynum, Vice President, Workforce Development, Information Technology Association of America (ITAA), represents over 400 information technology companies across the globe. Bynum has been working on the "huge gap" between companies knowledge of WIBs, bringing entities together. She asked for our assistance in making this connection.

Phyllis Eisen, Vice President, Manufacturing Institute, and Executive Director for the Center for Workforce Success at the National Association of Manufacturers said we are facing a crisis in the manufacturing sector with two million lay-offs in the manufacturing industry last year. "The country's economy won-t get stronger until the manufacturing sector gets better." She Called for more business centered, not "do-gooder" mentality. She thinks WIBs to be the catalyst between economic development and workforce development.

Patrick L. Gootee, Chair of the New Orleans Workforce Investment Board, President Gootee Construction, Inc. and Liza Sherman from the New Orleans Chamber of Commerce Metro Vision talked about their partnership to address workforce needs. Thirty-nine percent of the population in New Orleans Parish is illiterate. The New Orleans WIB and Metro Vision are trying to solve the problem by setting policy to remove illiteracy. They are convening employers to educate them on illiteracy as well as meet their labor supply needs. Sherman said that through MetroVision, 460 workers were hired with assistant from WIB in New Orleans

Partner America™ Co-Chair Addresses Small Business Workforce Development Needs

George Cloutier, Co-Chair of Partner America™ and Chairman and CEO of American Management Services Inc. provided a background of Partner America™, the unique public/private partnership between the U.S. Conference of Mayors and American Management Services Inc. Over the past three years, Partner America™ has sponsored more than 70 small business events throughout the country and Cloutier stated that the issue of workforce development is raised in every community.

Cloutier then noted that very few small business owners have heard of the public workforce system and challenged the WDC members to provide reasons for the information gap. Several reasons were listed, including:

• Very little money for marketing, many cities have to rely on newspaper articles and local cable channels to get the word out about their programs.
• Many people view the workforce system as only available to help the poor and indigent workers. There needs to be better education about services to business.
• The need to develop stronger relationships with local Chamber of Commerce offices, who can help pass the word along and make sure its small business members get the message.

Cloutier suggested to stop communicating with small business owners through printed materials. Small business owners do not have time to read and end up simply throwing the brochures away. Instead, Cloutier suggested direct contact with small business owners, through telemarketing.

Cloutier also suggested that separate Workforce Boards be created for small business owners, or that current boards be populated significantly with small business people. This would involve them in what the WDC is doing and they can help spread the word to their peers in the small business community.

"George brought to the Workforce Development Council a fresh perspective and innovative ideas on how to connect with U.S. small businesses," said Conny Doty, former WDC President.