On September 12, during the first of a hearing series on workforce development issues, the House Education and the Workforce Subcommittee on 21st Century Competitiveness focused its attention on the implementation of the Workforce Investment Act (WIA), which is up for reauthorization next year.
Approved by Congress in 1998, the WIA consolidated employment and training programs, requiring states and localities to establish a centralized delivery system that would provide federally funded employment and training services.
“Clearly, the WIA system contains the federal government’s primary programs for investment in our nation’s workforce preparation,” stated Subcommittee Chair Howard McKeon (R-CA). “Even though the system is still maturing since its full implementation in July 2000, states and local areas have created comprehensive services and effective one-stop delivery systems,” he added.
The panel of witnesses included representatives from the business community and from state and local workforce development programs who testified on the effectiveness of the WIA and offered recommendations on the reauthorization of the Act.
Bruce Stenslie of the Ventura, Calif. Workforce Investment Board highlighted the progress his agency has made in linking workforce investment and welfare reform under the WIA. “We have done this not by emphasizing service to welfare clients, but rather by elevating welfare services to become an essential element of our comprehensive workforce system,” he said.
He told the subcommittee that more than half of the welfare recipients who have come through Ventura’s One-Stop Centers are working, though many of them make low salaries and still need some aid. “Our work doesn’t stop when a welfare recipient or any worker is employed, but rather continues to help clients attain self-sufficiency and to become full participating members of the workforce,” he explained.
Mr. Stenslie urged the subcommittee to “look into improving TANF and One-Stop services by resolving conflicting program requirements.” He stressed that the “WIA and TANF have very different rules for program participation and reporting.” He recommended that welfare clients enrolled in WIA-sponsored programs “should be exempted for the duration of the training from the TANF mandates for minimum hourly employment requirements.”
Diane Rath of the Texas Workforce Commission testified that the WIA is an essential part of the consolidated system in her state, and “it has been a tremendous success.” She called the WIA “landmark legislation that brings together employers and workers in a system that meets the needs of both groups.”
According to Ms. Rath, child care is an essential part of the Texas workforce system. “Employers tell us that the availability of child care benefits them by decreasing turnover and improving the productivity of workers,” she said. “It allows parents to retain jobs and become self-sufficient, thus setting a good example for children, our future workforce,” she added.
Texas has child care services that are accessible at centers throughout the state “and through toll-free numbers,” she explained. On an average day, the state serves more than 100,000 children.
Danny Wegman of Wegmans Food Markets in Rochester, N.Y. described a work-scholarship program sponsored by his company. “Wegmans relies heavily on youths to staff our stores,” he stated. “Because we recognize that there is a cost in failing to retain talented people, and because of our dedication to youth and education, we decided to do something to positively impact our retention of youths in our community,” he said.
Consequently, Wegmans implemented the Work Scholarship Connection (WSC) Model in 1987. “Since implementing the WSC Model, nearly 14,000 employees have received over $43.6 million in college tuition assistance,” he explained. The program uses an early intervention strategy that provides a support system for young people beginning as early as sixth grade. Mentors or youth advocates are assigned to each student and provide the student with guidance in school, at home, and in the workplace. “We estimate that of the 1,000 students currently participating in the WSC program, 500 would fail without the one-on-one intervention of an adult advocate,” he stressed.
Mr. Wegman told the subcommittee that, although his company has invested more than $40 million in the program, the WSC relies on funds from a number of sources, including WIA funds and TANF funds. “The State of New York TANF funding is a multiyear funding stream and an example of how proper funding can make this program grow and should be used as a model for WIA,” he recommended.
All of the witnesses urged the subcommittee to increase funding for the WIA. “Although it is not technically part of the reauthorization, your continuing support for adequate funding is essential,” said Mr. Stenslie.
Ms. Rath agreed, adding that more funding also is needed for child care. She called child care “the most important single factor in the economic development program.” She said that in her program, the business community has provided financial assistance to child care services. “Once employers realize the link between child care and employment, they are very supportive,” she added.
