By Josie Hathway
March 31, 2003

The House Education and the Workforce Committee March 27 approved on a party line vote the Workforce Reinvestment and Adult Education Act of 2003 (HR 1261). The bill reauthorizes the Workforce Investment Act of 1998 (WIA). Through the leadership of Representative Howard "Buck" McKeon (CA), Chair of the Subcommittee on 21st Century Competitiveness many changes, favoring local governance and local operations have been made since the bill was introduced on March 20. These changes were supported by the Conference of Mayors. The bill still favors the Administration's proposal, giving enormous power to governors in many areas. Still, the House bill made positive progress in favor of local areas, including the following:

• Serving In-School Youth: Under current law, at least 30 percent of WIA youth formula funds must be spent on out-of-school youth. Though resources are limited, mayors have been able to provide vital employment and training services for both in-school and out-of-school youth. Summer jobs have proved to be a critical service for in-school youth. The Administration proposes to eliminate services to in-school youth, eliminate summer jobs and target 100 percent of the funds to out-of-school youth. The House bill allows 30 percent of youth formula funds to be spent on in-school youth and allows summer jobs.
• Funding Formula: Under current law, local areas receive 85 percent of Adult formula funds and at least 60 percent of Dislocated Worker funds. The Administration has proposed combining the funding for Adult, Dislocated Worker and Wagner Peyser funds into a consolidated block grant and would give 50 percent of the combined funds to the governor. (Wagner Peyser currently funds the Employment Service. A portion of the funds are reserved for state-wide services and a portion goes to the local level to support the regional Employment Service offices. Portions vary state to state, but on average 70-80 percent of the funds go to the local employment service.) Though the House bill gives 50 percent of the block grant to governors, it requires half of the governors' share to go to local areas to support the one-stop system, which includes the local employment service. Of the other 50 percent of the block grant allocated to local areas, 80 percent is allocated according to a federal formula and 20 percent is allocated according to a formula developed by the governors in consultation with the state and local boards.

HR 1261 is expected to go to the House floor for a vote prior to the congressional spring recess beginning April 14. Republican and Democratic Senate staff are preparing WIA reauthorization bills, which will be introduced this spring. Conference staff has been told that the Administration's bill will be introduced by Senate Republicans. The Administration's bill makes significant changes in current law, which are very troubling for mayors in several areas, including the ability for governors to redesignate local workforce areas, except for cities that exceed one million in population. Only nine U.S. cities fall into this category.

For more details on H.R. 1261, see usmayors.org or contact Joan Crigger of the Conference staff at (202) 861-6726 with any questions.