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Due to the Thanksgiving holiday, there will be no weekly mailing next Friday, November 25. Enjoy your holiday!
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Washington Update
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Deficit Committee
The Joint Deficit Committee has still not been able to reach a compromise, and the likelihood is increasing that an agreement will not being reached by the November 23 deadline. Democrats want to use the special authority of the joint committee to renew both the tax cut and the jobless assistance enacted as part of a December 2010 tax deal that also extended the Bush-era tax cuts through 2012. The members of the Joint Committee, however, remain divided over the broader issue of taxes and entitlements – much less the need to extend the payroll tax break and jobless benefits, which both expire at the end of the year.
The payroll tax cut and jobless benefits constitute large elements of the $447 billion job plan President Obama proposed earlier this fall. Obama wants to continue the unemployment benefits at a cost of $49 billion, and cut the 6.2 percent payroll tax levy in half for 2012, at a cost of $175 billion. The Administration also wants to cut in half the employer share of the payroll tax for 2012, for each employer’s first $5 million in wage costs.
If the committee is not able to come up with a compromise, $1.2 trillion in automatic, across-the-board spending cuts would take effect in January 2013. The committee might approve a package of budgetary savings smaller than that amount, which would reduce the size of the automatic spending cuts. Republicans have indicated that they will not agree to any revenue increases unless Democrats agree to serious reductions in entitlement programs.
Appropriations
On Thursday, November 17, on a 70-30 vote, the Senate passed a conference report on a FY12 spending package, sending it to President Obama for signature. The “minibus” (HR 112 – H Rept 112-284) contains three of the usual 12 annual appropriations bills: Agriculture, Commerce-Justice-Science and Transportation-HUD.
The legislation also contains a continuing resolution (CR) that would keep all programs not funded by the legislation operating at current levels through December 16.
The current CR was set to expire tonight at midnight.
The spending package would provide $128.1 billion in discretionary funding subject to the $1.043 trillion cap established by the Budget Control Act (PL 112-25) and an additional $2.3 billion for emergency relief activities not subject to the cap. It provides regular discretionary funding of $55.6 billion for Transportation-HUD, an increase of $183 million; while funding for Agriculture and Commerce-Justice saw reductions of $391 million and $387 million respectively.
Click here to read the full text of the bill.
House WIA Cuts Analysis
The National Skills Coalition has prepared a state-be-state analysis of the projected funding cuts and participation rates for the Workforce Investment Act (WIA) Adult, Dislocated Worker, and Youth programs under the FY12 House Labor-HHS bill (HR 3070). The legislation, released by the House Appropriations Committee Republicans on October 3, proposes more than $2.2 billion in cuts to federal workforce programs under the Department of Labor, including more than $1.9 billion in cuts to the Adult, Dislocated Worker and Youth programs. The legislation would also shorten the usual funding period for WIA programs, only funding programs through December 31, 2012. This should serve as a useful tool in your advocacy efforts on behalf of the local workforce system.
Click here to read the full analysis.
Pathways Back to Work
On Monday, November 14, Senator Richard Blumenthal (CT) introduced The Pathways Back to Work Act, legislation aimed at providing immediate relief to unemployed individuals, and workforce training programs to those seeking to learn new skills. Congressman George Miller (D-CA) introduced companion legislation in the House of Representatives on Tuesday, November 15.
The Act embraces several key elements of President Obama’s American Jobs Act and uses workforce development programs to break the cycle of unemployment. The Pathways Back to Work Act contains three key elements:
- Job Creation for Struggling Working Families: The bill allocates $5 billion for a fund to create jobs for unemployed adults, providing an immediate economic boost and immediate relief to families who have been struggling with unemployment.
- Summer and Year Round Jobs for Youth: The program includes $1.5 billion in funding for programs to provide summer and year-round employment opportunities for youth. The program would flow through the Workforce Investment Act system, and give priority to low-income youth.
- Competitive Grants for Work-Based Training for Unemployed Adults and Youth: This program provides a $1.5 billion competitive grant program to local entities offering work-based training or education programs for unemployed, low-income adults and youth.
To sign on as an official supporter of the Senate bill, please contact Meg Benner on Senator Blumenthal’s staff at meg_benner@blumenthal.senate.gov or by phone at 202/224-2823. To support the House bill, please contact Representative Miller's office by phone at 202/225-2095.
Please have your mayors and WIB chairs contact your members of Congress to ask that they cosponsor The Pathways Back to Work Act.
Click here to read the full text of the legislation.
Veteran’s Bill
On Wednesday, November 16, the House voted to establish programs aimed at decreasing unemployment among veterans and to repeal a withholding requirement for government payments to contractors, clearing the measure for the President’s signature. The legislation had been overwhelmingly approved by the Senate, 95-0, on Thursday, November 10.
The bill (HR 674) provides tax credits of up to $9,600 to firms that hire veterans with service-connected disabilities who have been unemployed for at least six months out of the past year. It would provide smaller tax credits to firms that hire veterans who are not disabled or have been unemployed for a shorter period of time. The legislation also extends existing tax credits for hiring veterans through 2012 and equires the Department of Veterans Affairs to establish a veteran’s retraining program by July 1, 2012. The House vote marks a rare victory for President Obama’s jobs program, which has seen other elements stall in the Senate.
Click here to read full text of the bill.
Initial Jobless Claims Decrease
On Thursday, November 17, the Department of Labor (DOL) issued its weekly report on new filings for
unemployment insurance. In the week ending November 12, the initial jobless claims were 388,000, a decrease of 5,000 from the previous week’s revised figure of 393,000. The 4-week moving average was 396,750, a decrease of 4,000 from the previous week's revised average of 400,750. The advance seasonally adjusted insured unemployment rate was 2.9 percent for the week ending November 5, unchanged from the prior week's revised rate.
Click here to read full report.
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UPCOMING MEETINGS
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Workforce Development Council (WDC)
Board and Annual Winter Meeting
The U.S. Conference of Mayors 80th Annual Winter Meeting
The Capital Hilton Hotel
Washington, DC
January 17-18, 2011
The U.S. Conference of Mayors Workforce Development Council (WDC) Annual Winter Meeting will be held on
January 17-18, 2012 as part of The U.S. Conference of Mayors 80th Annual Winter Meeting. The meeting will be held at the
Capital Hilton Hotel, 16th & K Streets, NW in Washington, D.C.
Please note that as part of our meeting this year, we will be participating with the mayors in a Pre-Conference Session on Job Creation and the Employability Crisis (see description below).
Please invite your mayors and workforce board chairs to join you for this important discussion on the importance of workforce development as a critical component of a competitive city. This is an important time for us to come together with our civic leaders to share best practices and strategies on developing the future workforce, and provides an excellent opportunity to schedule meetings with lawmakers to discuss the need to support workforce funding.
You may now register for the Pre-Conference Session online by going to http://usmayors.org/registration/jobs12.
TUESDAY, JANUARY 17
12:00 p.m. - 5:00 p.m.
PRE-CONFERENCE SESSION
(All Mayors Welcome)
Job Creation and the Employability Crisis:
Preparing the Future Workforce as a Competitive City Strategy
America stands on the brink of an employability crisis – with an over-supply of available workers and an under-supply of qualified talent. During this working session, Mayors, CEOs, Small Business Leaders and Workforce Development Professionals will share best practices and strategies on developing the workforce of tomorrow.
Mayors will meet on January 18-20, 2012 at The Capital Hilton Hotel. Click here to access the
mayors’ preliminary draft agenda.
Click here to access an updated draft agenda (as of 11/10/11) for the WDC meeting.
You may now register for the WDC Annual Winter Meeting online by going to usmayors.org/registration, and selecting the Workforce Development Council link to access the registration form.
Due to the increase demand for hotel rooms in Washington, D.C. over these dates, it is extremely important that your registration be done by December 30, 2011.
If you prefer, you may complete the registration form manually. To access the registration and hotel reservation forms click here. Please fax the forms to our meetings department at
(202) 467-4276.
If you have any questions, please contact Ida Mukendi at (202) 861-6724 or imukendi@usmayors.org.
I hope to see you in January!
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New from DOL/ETA
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Oates Focused on Business
This week, Jane Oates, Assistant Secretary of the Labor for the Employment and Training Administration, led candid discussions focused on the American Jobs Act with more than 300 southeastern business and civic leaders while in Atlanta. She challenged conference participants to break through barriers and develop strategies that meet the needs of the business community. In addition to a series of workshops and plenary sessions that identified tools for success, Oates hosted a White House Business Council roundtable co-sponsored by Georgia Tech Enterprise Innovation Institute and the Atlanta Urban League where she outlined the President's economic vision. "In these times of scarce federal dollars, our measure of success must be nothing less than our ability to match qualified workers with the needs of business. Putting Americans back to work is our most urgent activity," said Oates.
Talking Partnerships In Philly
Philadelphia Mayor Michael Nutter and the White House Office of Faith-based and Neighborhood Partnerships hosted an economic recovery symposium for local community leaders earlier this week titled ">Faith & Neighborhoods in Action: the Business of Community." The event featured Employment and Training Administration Regional Administrator Lenita Jacobs-Simmons who served on the plenary panel and shared valuable information on discretionary competitive grant programs. Additionally, the department's Center for Faith-based and Neighborhood Partnerships organized and moderated two panels on workforce development partnership opportunities, featuring leaders from the local workforce investment board and workforce agency and two of the department's nonprofit grantees, Connection Training Services and District 1199C Training & Upgrading Fund.
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WIA in the News
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KentuckianaWorks Executive Director Lists Challenges to Improving Workforce Readiness
As the economy continues to struggle, the ability to sustain and create jobs remains challenging for many businesses. Business First recently spoke to KentuckianaWorks Executive Director Michael Gritton to find out where Louisville rates among area competitors in work-force readiness. Gritton said the education level in Louisville still is low compared to regional competitors. “We’ve focused on it for 10 years with a goal to raise educational levels on all fronts from GEDs to PhDs,” he said.
http://www.bizjournals.com/louisville/print-edition/2011/11/11/kentuckianaworks-executive-director.html">Click here to read full article.
Partnerships Benefit Economic Development
Economic development works best as a team effort. I'm often asked why we have so many different economic development groups. That's because economic development covers a broad spectrum of activities, ranging from community development, workforce development, entrepreneurial and small business assistance to economic development marketing, economic gardening and business climate advocacy, just to name a few.
Each group has its role to play in advancing the economic prosperity of its community or region. Together our joint activities generate a synergy that promotes job creation and capital investment. While roles might overlap, different economic development groups perform different functions and focus on different target audiences.
Click here to read full article.
Job Outlook for Paralegals is Bright
If you’ve ever considered a legal career, now is a good time to get paralegal training. Also known as legal assistants, paralegals are one of Georgia’s hottest occupations through 2018. “Jobs are beginning to bounce back and we’re seeing good graduates get positions, especially inside the beltway of Atlanta,” said Virgil Costley, program director for paralegal studies at Georgia Piedmont Technical College (formerly DeKalb Technical College).
Because they perform many of the same tasks as lawyers at a lower hourly cost, paralegals are in demand at law firms, insurance companies and government agencies. The Bureau of Labor Statistics projects employment for paralegals to grow by 22 percent from 2008 to 2018. Most people enter the field with an associate or bachelor’s degree in paralegal studies. Career changers with a bachelor’s degree in another field often take a six-month certificate program, which is offered at many Georgia colleges.
Click here to read full article.
Hawthorne Agency Gets Federal Grant to Offer Services to Laid-Off Workers
Laid-off workers in the South Bay and elsewhere will receive job training and employment services under a Department of Labor grant to a Hawthorne-based agency. The South Bay Workforce Investment Board will administer a roughly $18 million grant to help workers across the state, with potentially more money on the way.
Though the grant covers the entire state, a sizable chunk of the funds - about $6 million - will stay in Los Angeles County because of the high unemployment rate in the local area. The money will be used to retrain and provide support services to as many as 6,000 workers from specific companies or employers that have undergone layoffs in the past few years. In the South Bay, the grant funds will be used to help workers displaced from companies such as Raytheon in El Segundo, which announced it was laying off 130 workers last month; Northrop Grumman Corp., which laid off 500 workers in August; and MySpace, which laid off 59 workers in El Segundo and 220 workers in Beverly Hills last January.
Click here to read full article.
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Reports, Announcements and Articles
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New from the Center on Law and Social Policy
Big Ideas for Job Creation
In November 2011, the Center on Law and Social Policy (CLASP) released a paper as part of the Big Ideas for Job Creation in a Jobless Recovery project funded by the Annie E. Casey Foundation and the W.E. Kellogg Foundation and organized by the UC-Berkeley Institute for Research on Labor & Employment. The project includes proposals from more than a dozen leading experts who have come up with practical, scalable proposals that will create more jobs for the U.S. economy.
Ideas had to meet the following criteria: The proposed programs should be designed for implementation by cities and/or states (with or without federal support) and should lead to net new job creation in a short-term framework (one to three years). They should be practical (implementation not requiring major political or institutional changes); sustainable (not requiring significant new investment and feasible at a relatively low cost per job); scalable (at least at the state level); and already tested. The jobs created should be accessible for low-skilled workers and offer some career opportunity.
Click here to read full paper.
New from Brookings
Time to Compete: An American Jobs Plan
On November 14, the Brookings Institution hosted Jon Huntsman, Jr., the former governor of Utah and U.S. ambassador to China, for a conversation on the economy, jobs, tax reform and the budget. Governor Huntsman outlined his comprehensive plan to create jobs and revive the economy.
Huntsman served as the 16th governor of Utah, where he built a strong record of cutting taxes, reducing waste and growing Utah's economy. He was later named U.S. ambassador to Singapore, becoming the youngest head of an American diplomatic mission in a century and U.S. trade ambassador under President George W. Bush. He then served as U.S. ambassador to China under President Barack Obama. John L. Thornton, chairman of the Board of Trustees of the Brookings Institution, provided introductory remarks. Senior Fellow Ted Gayer, co-director of Economic Studies at Brookings, moderated the discussion. After the program, Governor Huntsman took questions from the audience.
Click here to watch a webcast.
What Happens if the Super Committee Fails?
Almost everyone is agreed that the government needs to get the fiscal house in order and that the super committee needs to find the political will to get this done. As their deadline for acting draws nearer, a favorable outcome looks doubtful, and the prospect of an automatic sequester looms large. However, if action continues to be focused on a small slice of the budget, too much of any fiscal discipline will fall on a very limited number of programs without making a real dent in our long-term deficit problems.
To stabilize the ratio of debt-to-GDP we need deficit reduction in the neighborhood of $4 trillion over the coming decade. So far virtually all of the action has focused on discretionary spending. The Budget Control Act of 2011 (BCA), passed in the wake of the debt ceiling crisis, put new caps on discretionary spending that will, according to CBO, reduce such spending by about $900 billion between 2012 and 2021, including debt service. The law also called for a Joint Committee (aka the Super Committee) to come up with at least $1.5 trillion in additional spending cuts. At the present time, many observers are skeptical about the ability of the committee to come up with much in the way of savings, given partisan disagreements.
Click here to read full article.
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ETA Releases
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