Super-sized block grant offers no more money 
PEF finds federal jobs-funding plan full of flaws

By SHERRY HALBROOK
Federal budget legislation the Bush administration is portraying as the best way to make the U.S. workforce more competitive in the global marketplace, looks more like a wolf in sheep’s clothing to PEF.

The legislation, H. R. 27 — Workforce Investment Act (WIA) Plus Consolidated Grant program — would consolidate four major WIA and Wagner Peyser funding streams (WIA Adult, WIA Dislocated Worker, WIA Youth and Employment Services) into a single “super-sized” job-training grant, with a total of $7.5 billion available nationwide. It would allow governors to merge an additional five related programs that are federally funded into that grant.

PEF, however, sees it creating a wasteful hodgepodge of disconnected elements that will likely make matters worse for the public. It also could create a major disruption for the state workforce and open the door to greater privatization.

“This legislation fails to make meaningful improvements to the Workforce Investment Act that would enhance the training and career opportunities of unemployed workers,” said PEF President Roger Benson. 

The legislation does not provide more money for services and would shift scarce job training resources away from areas with individuals having the most serious unemployment problems. 
Additionally, changes proposed in the legislation would destroy the federal-state labor-exchange system by replacing it with a plethora of localized programs with no incentive or ability to cooperate and function as a comprehensive system.

Race to the bottom
PEF is worried the block grant would pit different types of workers against each other for assistance and lead to future funding reductions. 

Unless it’s amended, the PEF leader warned, “This legislation is the first step toward turning the entire unemployment insurance system back to the states, which could lead to a patchwork unemployment system and a race to the bottom in terms of unemployment benefits.”

Wasting resources
H. R. 27 would give governors broader discretion to transfer additional resources from the WIA partner programs — Veterans’ Employment, Trade Adjustment Assistance Training, Vocational Rehabilitation, Adult Education and Food Stamp Employment and Training — to pay for WIA infrastructure and core services costs — without any assurance that more training would result. 

“Block granting funding for these programs,” Benson said, “would disrupt and weaken them. They also will face substantial pressures for funding reductions in the next few years.”
“The bottom line is H. R. 27 strays far from the appropriate mission for federal job training programs of enhancing training opportunities for workers and providing skilled workers for employers.”