By Shannon Holmes
May 12, 2003

On Thursday, May 8, the House of Representatives passed The Workforce Reinvestment and Adult Education Act of 2003, HR 1262, on a vote of 220 — 204. This legislation reauthorizes the Workforce Investment Act of 1998 (WIA).

The Senate has not taken action on the reauthorization of WIA. It is expected that a bill will be introduced some time in the early summer.

In addition to the House Education and the Workforce Committee Chairman, Howard "Buck" McKeon's (CA) manager's amendment, four Democratic and three Republican amendments were passed. Some of these amendments include: increasing adult formula funding to local areas from 80 percent to 85 percent and decreasing from 20 to 15 percent the amount of adult formula dollars distributed at the discretion of the governor (sponsored by Representative Alcee L. Hastings (FL); making the Temporary Assistance for Needy Families (TANF) a mandatory partner in the One'stop Center system and increasing the authorized level for the youth challenge grants to $1.25 billion (both sponsored by Mr. McKeon); expanding the age of out-of school youth to 24 years old (sponsored by Representative John Lewis (GA); and the clarification for determining the contribution of one'stop partner into the One'stop infrastructure (sponsored by Representative John Kline (MN).

Though HR 1261 does not fully address the needs of mayors, particularly in the youth provisions, it is a step in the right direction from the bill as introduced. The Conference of Mayors will continue to work with both the House and the Senate to ensure that all of mayors- concerns are addressed in the final bill. Key provisions of HR 1261 include the following:

• Governance: HR. 1261 reinforces the essential balance already established between federal, state, and local governments and the private sector. The bill maintains the strong local delivery system established under WIA, including strong authority for local elected officials and their private sector-led workforce investment boards (WIBs) and allowing for local innovation based upon local worker, employer, and economic development needs. The Conference of Mayors was very concerned about a last minute campaign by certain governors to dismantle this balance and acquire increased authority and resources as proposed by the Administration.
• Serving In-School Youth: HR 1261 allows up to 30 percent of youth formula funds to be spent on in'school youth and allows summer jobs. The original bill eliminated services to in-school youth and summer jobs.
• Funding Formula: Though the House bill gives 50 percent of a new combined Adult, Dislocated Worker and Employment Service formula 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, 85 percent is allocated according to a federal formula and 15 percent is allocated according to a formula developed by the governors in consultation with the state and local boards.

Mayors have had strong policy supporting the streamlining of the nation's workforce development system and funding for the workforce system to be a major national investment priority. Key policies are as follows:

Strong Local Authority and Flexibility for Mayors and their WIBs

The Conference believes that strong local authority and flexibility for mayors and their local WIBs must remain at the core of WIA. This ensures that needs of local and regional employers are met. State and federal-inspired barriers to local implementation of WIA's vision must be addressed. Reauthorization should empower local WIBs by expanding their authority to cover the current responsibilities for system-wide coordination of resources and services.

Investing in the Nation's Youth

Improve job and educational prospects for all youth, including youth at-risk and out-of'school. Maintain current law relating to youth, which mandates strong in'school youth program including summer jobs and which mandates 30 percent of youth dollars be spent on out-of-school youth.

Increase Investment in Training

Reauthorization should include adequate resources for training - both basic and occupational- to meet employers- needs, and thus to attain and sustain economic recovery.

Flexibility to Meet the Needs of Business

More flexibility and resources to address industry sector training initiatives and incumbent worker training are needed at the local level where both are essential to the local economy. As Mayors and WIBs broker solutions for the business community, WIA must have a simplified, straightforward, business-oriented report card to measure the systems- success, not more performance standards. No other federal program reporting is as complicated and focused on each individual served as our reporting system.

Improve One-Stop System

In reauthorization, Congress must fully fund the One'stop career center system by providing sufficient funds for all partner programs and ensuring that all partners contribute financially to the operation of the One'stop centers.

For more information on WIA Reauthorization, contact Joan Crigger of the Conference staff at (202) 861-6726.