October 8, 2007

Mayors’ workforce directors from across the country gathered in Washington (DC) September 23-25, for The U.S. Conference of Mayors Workforce Development Council (WDC) 19th Annual Congressional Forum, held in collaboration this year with the National Center on Education and the Economy’s (NCEE) High Skills Consortia.

WDC President Workforce Development Council of Seattle-King County CEO Kris Stadelman, and Ray Uhalde of NCEE, presided over the session, which focused primarily on the $335 million rescission of WIA carryover funding and reauthorization of the Workforce Investment Act of 1998, as well as the impact of Green Jobs, reauthorization of the Trade Adjustment Assistance Act and Unemployment Insurance reform on the workforce development system.

“One of our most important objectives is to implement strategies that provide essential skills training for more and more Americans,” said Mason Bishop, Deputy Assistant Secretary of the Employment and Training Administration in his keynote address.

Bishop explained that the best way to provide more training is through the Department of Labor’s Workforce Innovation Regional Economic Development (WIRED) initiative that seeds talent development in regions through successful economic and workforce development collaborations.

Bishop warned that the current workforce development system in our country is “spread so thin financially” that they are unable to prepare the 21st century worker. He suggested that the best use of the scarce funding is through this new regional approach and a sustainable federal infrastructure, including consolidation of the Workforce Investment Act, the Trade Adjustment Act and the Unemployment Insurance systems.

Bishop concluded that the system cannot continue to rely on federally appropriated dollars for success. “In order to be sustainable it must be a ‘three-legged stool’ with equal contributions of private, philanthropic, and public sector funding,” he said.

“The ‘American Dream’ is firmly rooted in the workplace and it is tied to a job,” explained Celinda Lake, President of Lake Research Partners in her presentation to forum participants.

Lake presented the findings of the Lake Research Partners’ recent public opinion survey entitled “Economic Anxiety and the American Dream,” that found middle class Americans look at their economic future with a combination of optimism and anxiety.

According to Lake, the cornerstones of the ‘American Dream’ are wages that support a family, affordable quality healthcare, opportunities for children, respect for work, and retirement security.

“Three out of four Americans believe the ‘American Dream’ is becoming harder to reach,” explained Lake. “Workers are calling for a more active role for workers, consumers, and for the government to help protect the basics of economic security.”

House and Senate Appropriations staff met with participants to discuss the status of the $335 million rescission of WIA carry-over funding in conference and the outlook for workforce funding in 2008.

Appropriations staff confirmed that this is going to be a difficult funding year for domestic programs, and ultimately the fate of WIA funding is still unknown. The Senate has yet to pass its version of the Labor-HHS Appropriations bill; however, leadership has now indicated that it will be brought to the floor in early October.

In addition, they explained that it is unclear whether the Labor-HHS bill will ultimately be sent to the President as a stand-alone bill or as part of either an Omnibus or “minibus” package of several appropriations bills.

“President Bush has vowed to veto any spending bill that exceeds his request and therefore we are looking at the possibility of a series of continuing resolutions, ultimately into next year,” staff explained.

Senate Finance Committee Staff then joined the group to discuss the status of Trade Adjustment Assistance (TAA) reauthorization and Unemployment Insurance reform and the implications for the workforce investment system.

“TAA needs to be more flexible and receptive to the economy,” explained Hun Quach, International Trade Analyst for the Senate Finance Committee. “The admin burden, such as the eight-week deadline, makes it very difficult for workers to receive assistance.”

Quach added that, “TAA shouldn’t steal from the limited WIA dollars but rather work with one'stops to successful integrate the two systems.”

Senate Health, Education, Labor and Pensions Committee (HELP) Majority Staff met with participants to discuss the outlook of workforce policy for remainder of the 110th Congress, including WIA, Higher Education and Green Jobs. According to HELP Staff, “Legislative counsel finished a WIA draft and now are waiting for Senator Kennedy to move it.”

HELP Staff confirmed that House and Senate action has come to a halt and there is the expectation that WIA reauthorization will be brought up early next year, after some of the chairman’s other key priorities are addressed.

“While, movement on WIA has stalled, some other opportunities for workforce development growth are currently on the legislative agenda including Green Jobs and Higher Education,” explained HELP Staff.

“We must make ‘work’ work in 21st Century America,” said Stephanie Powers, Project Director for the new National Fund for Workforce Solutions initiative at the Council on Foundations.

Powers said that the goal of this new initiative is to improve employment, training, and labor market outcomes for low-income individuals. “It will promote change at three levels - individual, institution and system - leading to better jobs, better workers, and a better workforce development system,” she continued.

The National Fund will serve as a new national funding intermediary. Its investors will capitalize this effort with $30 million to $50 million in grant funds. The Fund will use this money to increase the number of successful local and regional workforce partnerships, and expand the scale of existing partnerships.

Conny Doty, Director of the Boston Office of Jobs and Community Services and Larry Fitch, President and CEO of the San Diego Workforce Partnerships, then offered their experiences as part of the pilot stage of the new initiative.

“Coordination and governance of funding collaborations require a lot of time and attention,” explained Doty. “However, with careful implementation a successful program was created.”

Dr. Andrew Sum, Director of Northeastern University’s Center for Labor Market Studies, closed the session with an overview of his report, The Collapse of the Nation’s Teen Labor Market and the Case for a Revitalized National Summer Youth Employment Program. According to Sum, the 2007 summer employment rate for the nation’s teenagers was the lowest in post-World War II history. “Despite increases in the number of jobs for adults over the past year, teenagers have fewer opportunities to gain work experience and develop their professional skills during the summer months,” he explained.

Sum’s recent research found that this summer’s employment rate for teens was only 34.5 percent, making it the worst year in recent history for teens looking for summer work, surpassing the previous historic low, 36.1 percent, which was reached in the summer of 2004.

“In the summer of 1978, one out of every two U.S. teens was employed,” he explained. “This past summer, just one out of three teens was employed, with just one out of five African-American teens working during the summer months.”

In response to these findings, Sum invited Robert Taggart, former Director of the Department of Labor Youth Programs during the Carter Administration, to discuss their proposed summer jobs legislation. The Summer Jobs and Learning Opportunities Act of 2008 would provide up to $2.5 billion in funding for teen employment and includes several learning components designed to raise competency levels in reading, writing, math and science.

“There is more bang-for-your-buck with youth employment initiatives than any other age group’s job program,” Taggart concluded.