The Senate Health, Education, Labor and Pensions (HELP) Committee is moving forward with the reauthorization of the Workforce Investment Act (WIA). The House passed their WIA bill in early May, but the Senate has not acted on the legislation until now. Current law is set to expire this August.

Senate Hearing
On June 18, the HELP committee held its only hearing on WIA. Senators Enzi (R-WY), Murray (D-WA), Kennedy (D-MA) and Dodd (D-CT) were present for the hearing. The Government Accounting Office (GAO), state workforce directors and industry representatives testified on the implementation of the WIA system. On the whole, speakers stressed the need for greater flexibility and infrastructure funding for enhancing the One-Stop system.

GAO reported on their review of the nation's workforce system, which was released as a report that day. Their investigation found that many One-Stops had implemented innovative ways to leverage funding and serve job seekers. GAO contended that the WIA system was working, but it was only getting started. More time and funding were critical to improving the system. They also stressed the need for improved performance measures and data reporting. (To view GAO's report, Workforce Investment Act: One-Stop Centers Implemented Strategies to Strengthen Services and Partnerships, but More Research and Information Sharing is Needed, visit the GAO website at www.gao.gov. Search for the PDF file using the report code, GAO-03-725.)

State workforce from Florida and Wyoming advocated for consolidating WIA funding streams and block granting dollars to increase flexibility and to better serve different populations of job seekers. Virginia and Washington workforce directors argued for retaining the separate streams of funding to ensure that the needs of all populations are met and increasing infrastructure funding to improve the One-Stop system.

Current Activity
After the June 18th hearing, members of the Senate HELP Committee began internal discussions on WIA. Members are debating a number of key issues, including funding for infrastructure, block grants, and access to training and services. Late last week, work on a bipartisan bill came to a standstill after members could not agree on the issue of block granting WIA funding. Members had been aggressively working to develop and pass a bill before the August recess.

The block granting of WIA funding is a contentious issue. Many workforce leaders are in favor of block grants because they will provide greater control and flexibility to serve the needs of state workforce systems. With many state budgets in dire straits, states see block grants as a way to address their most pressing workforce needs. However, block grants often result in a decreased focus on groups of job seekers with specific needs, such as displaced homemakers and women in transition. The recently passed House bill consolidated funding streams for adults, dislocated workers and employment services (from the Wagner Peyser Act) into one block grant. Many Democrats and Senators from small states are fighting to maintain these separate streams. WIA discussions are expected to resume when the issue of block granting is resolved.

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PRIDE Proposal is Detrimental to Women & Families

After months of delay, the Senate Finance Committee is working on a new TANF reauthorization proposal titled Personal Responsibility and Individual Development for Everyone (PRIDE). The bill has not been formally introduced, nor is it publicly available. However, sources indicate that the proposal resembles the House bill (HR 4) passed in February 2003 and will greatly impact families with barriers to employment.

Similar to HR 4, PRIDE increases the number of work hours for participants; eliminates special participant requirements for parents with children under six; and increases state work participation rates. Participants must work 34 hours a week, spending 24 hours in "core" activities (as defined under current law) and an additional 10 hours in other activities defined by the state. Parents with children under six must also work the full 34 hours per week. Work participation rates increase 5% each year until they reach 70% in 2007.

Additionally, PRIDE does not expand education and training provisions or extend the 12-month time limit. Barrier-removal activities, such as treatment for substance abuse, count toward fulfilling a participant's work requirements for three months. PRIDE also does not address childcare funding. Currently, only one out of seven children who are eligible for federal childcare assistance actually receives assistance due to inadequate funding. The Congressional Budget Office has estimated that it would cost states around $10 billion over five years to fund federal childcare programs at the current level of services, adjusting for increased work requirements and inflation. The House TANF bill included $1 billion over five years for childcare funding.

The Committee is expected to introduce and mark up the PRIDE bill by July 23. If passed, the bill will then move to the full Senate for debate. Now is the time to contact your Senators to express the need for increased education and training provisions, as well as increased funding for childcare services. More information about the Senate TANF proposal and contacting legislators is available on the Women Work! website at www.womenwork.org

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House and Senate Committee pass
FY 2004 Spending Bill

The House and Senate are rushing to complete all 13 appropriations bills for FY 2004 before the August recess. The full House passed the Labor, Health and Humans Services and Education (Labor H) sending bill on July 10th. The Senate Appropriations Committee approved its version of the FY 2004 Labor H bill. As of yet, the full Senate has not considered the bill.

Department of Labor
Early assessments of the FY 2004 spending totals indicate a decrease discretionary funding for the Department of Labor. Both House and Senate committee bills reduce spending, but provide more money than suggested by the president's budgetary request. The House bill appropriates $11.7 billion in discretionary funds, which is $60 million more than the president's budget request. The Senate committee bill offers $11.8 billion.

Departments of Education & HHS
The Departments of Education and Health and Humans Services fare much better in both appropriations bills, gaining increases in spending from FY 2003 levels. Full details on the spending bills will be available after the full Senate passes their bill and final amounts are worked out in conference committee. A Senate floor vote is expected in September.

WANTO
During the appropriations battle, the Women in Apprenticeship and Nontraditional Occupations (WANTO) Act suffered a loss. Acting on the Administration's recommendation, House legislators eliminated the separate funding for the program. The Senate Appropriations Committee also eliminated separate funding, but made it an allowable activity under WIA national programs. Advocates are working to strengthen the language in support of WANTO and maintain its funding when the full Senate votes on a final appropriations bill.

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DOL Proposes Changes to Overtime Regulations

June 4, 2003 marked a victory for America's working families when House Republican leaders canceled a vote on the Family Time Flexibility Act (HR 1119). This bill would have revoked provisions under the Fair Labor Standards Act (FLSA) and allowed employers to provide compensatory time in lieu of overtime pay to private-sector employees. The vote was canceled due to protests from members of labor groups and organizations such as Women Work!. (See May Insider for more information on this bill.)

Unfortunately, the Administration is again looking at changing FLSA regulations. The Department of Labor (DOL) recently proposed regulations to alter eligibility and exemption criteria for receipt of overtime pay. A study from the Economic Policy Institute reports that under this proposal eight million low-income workers would lose their eligibility for the overtime pay that helps many Americans buy food and pay the rent.

Under current law, private-sector workers who make above $170 a week, are paid a set salary, and have a position composed primarily of administrative, professional, or executive duties are not eligible for overtime pay. The DOL proposal raises the salary bar to $425 per week, which would make nearly 1.3 million additional workers eligible for overtime pay. While this seems like a beneficial proposal, it also allows employers to reclassify workers as executive, professional, or administrative employees based on minimal criteria, which then makes workers ineligible for overtime pay. This group could include editors, reporters, health technicians, paralegals, licensed practical nurses (LPN), and many others who currently are entitled to overtime pay.

Recent activity in the House stalled efforts to prevent the DOL from redefining eligibility. However, these efforts failed on July 10 when the House narrowly voted 213-210 to approve the changes. Similar efforts are expected in the Senate within the upcoming weeks. If Congress does not block the proposal, it could go into effect as early as September of this year.

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WANTO Grant Competition 2003

The US Department of Labor is requesting applications for the 2003 WANTO grant competition. Proposals are due August 11, 2003 and can be downloaded from the DOL website at www.dol.gov/wb/nontra.htm

The WANTO program was established by the Women in Apprenticeship and Nontraditional Occupations Act of 1992 and is jointly administered by the Women's Bureau and the Office of Apprenticeship Training, Employer and Labor Services. WANTO is designed to provide employers and labor unions assistance that leads to the increased participation of women in apprenticeships and nontraditional occupations.

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The Economic Equity Insider is published monthly while Congress is in session and is a benefit of membership with Women Work! Editor: Karen Swift - Contributors: Katherine Reilly and Nina Schwartz