Hearing of the Labor, Health and Human Services, and Education and Related Agencies Subcommittee of the Senate Appropriations Committee - Fiscal Year 2009 Budget Request for the Department of Labor
Statement
Hearing of the Labor, Health and Human Services, and Education and Related Agencies Subcommittee of the Senate Appropriations Committee - Fiscal Year 2009 Budget Request for the Department of Labor
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SEN. PATTY MURRAY (D-WA): Well, thank you. Thank you very much, Mr. Chairman, and welcome, Secretary Chao. I'm sorry I'm late here today. I've got several committee hearings going on, but I wanted to come and chat with you because in your testimony today and previously before this subcommittee I've heard you speak about the Department's five critical priorities in budget and policy planning, and one of those is -- and I quote -- "increasing the competitiveness of America's workforce," unquote.
And I've also heard you and many other Administration officials talk about your agency's efforts to support the President's, quote, "results-driven agenda," unquote. Now, to me results implies being able to measure the impact and effectiveness of programs that are supported by your department. And so today I was pretty disappointed that we saw the GAO report which was released today, which finds that for almost $900 million spent under the President's demand-driven workforce agenda your agency has failed to establish any kind of benchmark that would allow you to adequately monitor whether all of these grants met the statutory requirements that they were awarded under or allow you to measure the performance of the programs that received this funding.
Now, I initiated this report along with Senator Harkin and Senator Kennedy after we learned that the employment and training administration awarded ninety percent of its high growth dollars non- competitively over the last six years. Now, I find the GAO's findings particularly troubling given that the agency intended to use these grants to shift the focus of our nation's workforce developments system but because there's been very little planning by our agency on the front end its impossible now to compare these initiatives to the other programs under the workforce investment act. And it means that providing that your initiatives are more successful in quote "increasing the competitiveness of America's workforce" is really out of the question.
In fact, GAO found that the department failed to even integrate these initiatives fully under its strategic plan. Now, in my opinion, that fails to live up to a results driven agenda, so given the findings of this GAO investigation and the inspector general's audit, that I believe that Senator Harkin's talked about, (and of the?) high growth grants, I think everyone on this subcommittee is eager to hear how you plan to demonstrate the effectiveness of the president's demand driven job training program today.
So can you tell us why we should continue to fund what seems like an effort to derail the nation's workforce investment development system under WIA?
MS. CHAO: I'd be more than glad to.
First of all the GAO report was conveniently released this morning. We have not had a chance to review it. Number two, --
SEN. MURRAY: Conveniently released?
MS. CHAO: We've not -- I don't have it.
The high growth job training initiative was designed to become -- as you -- to respond to, as you well know, a demand driven system. Every year there are in excess of $1 billion in unspent funds. There are duplicative structures within this system. That's an issue that the authorization committee has to take care of. But there's something called employment services and there's something called Workforce Investment Act. Much of the funding that goes on goes to employment services, which is a duplicative, side by side structure next to workforce investment.
If we are really concerned about increasing the competitiveness of our workforce, there is a crying need to reform this system, and that's what we're trying to do. Of the high growth job training program, that is an effort to respond to the skills that are needed in our economy. As I've mentioned before, if we are to have the trust and confidence of workers who come into our system seeking training, we need to give them relevant training, number one. And number two, we need to ensure them when they get the training, they actually can get a job when they leave. They demand no less, we can do no less.
SEN. MURRAY: Well, will you give us your commitment that you will look at this GAO report as soon as possible? Will you implement its recommendations?
MS. CHAO: I need to see what it is but, sure.
SEN. MURRAY: Okay. Well, we expect you to do that and I'm certain the committee would like to hear back about that. I am concerned about the consolidation of the WIA funding streams that -- (inaudible) -- dislocated workers and you've -- obviously that's something you continue to push even though your proposals to do that have been rebutted by Congress on a bi-partisan basis here.
We've seen continual decline in dollars in training and employment. This is a time when the economy is really hurting. Our constituents are asking, "How can we get the employment and training we need?" We've seen proposals to eliminate employment services by zeroing out the $703 million that we have available for state grants.
Line item after item, we're seeing continued decline in dollars here yet people are very worried about holding their jobs and doesn't that concern you?
MS. CHAO: Of course it concerns me. It concerns me that there are such duplication and excess funds in this system that's not helping people get the training that they need.
SEN. MURRAY: Give me a specific.
MS. CHAO: We have $863 -- something like that -- million dollars in unspent funds in this system. We have --
SEN. MURRAY: Why is that? Is it being held back?
MS. CHAO: We have duplicative systems. If we visit the workforce investment system, one the one hand -- on the one side of the building is employment services. On the other side is workforce investment. They should be combined, so that workers can get the training that they need. Currently that's not happening. And we're training people for jobs that don't exist. That's terrible.
SEN. MURRAY: And that's exactly why under WIA we think the workforce development councils at the local level who know their own local communities better than any of us here in Washington, D.C. --
MS. CHAO: But they're separate from -- (inaudible) --
SEN. MURRAY: Well, we have a difference of philosophy that's not going to be solved in the next several months, but -- I came in when the chairman was asking you about the workplace injuries and illnesses, and this is something that we've had a number of oversight hearings on OSHA which I -- in my employment in workforce safety subcommittee, Dr. David Michaels was before my committee recently and he told us that the true incidents -- and I'm quoting him -- "is far higher than reported by the bureau of labor statistics since these data do not include approximately two-thirds of occupational injuries and illnesses."
So, in all of our oversight it became very clear that underreporting was a serious issue today, of workplace injuries and illnesses. Is something you're hearing about or your concerned about? Underreporting?
MS. CHAO: I do not believe there is underreporting, but if you're concerned about it, I will take a look at it.
SEN. MURRAY: This is something that our committee looked extensively at. It is very clear that there is underreporting throughout the process of -- we'll give you some of our hearing backgrounds because I think it may change your view on whether or not there is a decreased number of injuries.
Mr. Chairman, I have several other questions I will submit for the record, but I appreciate the opportunity this morning and thank you, Madame Secretary.
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