Minnesota Workforce Council Association

In this issue:

Federal Appropriations Update

Call to Action!

 

 

Federal Appropriations Update

Earlier today, the House Appropriations Committee marked up the 2007 Labor-HHS-Education budget bill that contains $141,930 billion of discretionary spending, up just slightly less than one percent over last year's appropriation of $141,088. The bill also contains $460 billion in mandatory spending (includes Social Security and Medicare and Medicaid payments.) To view the entire Labor-HHS-Education details http://appropriations.house.gov/_files/LH_Detail_SCWEB.pdf.

The full Committee accepted the Sub-committee's June 7 mark-up recommendations that include the following amounts ( in thousands) for the Employment and Training Administration programs:

Program

FY 2006

FY 2007
Requested

Committee
Recommended

Difference

Employment Service

$715,883

$688,769

$688,769

$-26,247

WIA Adult Training

$864,199

$712,000

$854,000

$-10,199

Youth

$940,500

$840,000

$935,500

$-5,000

Job Corps

$1,592,758

$1,501,602

$1,523,000

$-69,758

CSEP

$432,311

$432,311

$420,000

$-12,311

Dislocated Workers (Grants to States)

$1,189,811

$875,266

$1,193,264

$+3,453

Dislocated Workers National Reserve

$282,092

$239,316

$157,800

$-124,292

Community College Initiative

$125,000

$150,000

$125,000

$+25,000

Total Training & Employment Services

$5,242,466

$4,412,405

$4,967,209

$-275,257

The legislation will next go to the House Floor.

Call to Action!!!

A rescission of $325 million of FY'06 funding was recommended by the Sub-Committee and was adopted by the full Committee in today’s mark-up.   

Even though the Chairman’s FY 07 mark leaves WIA funding relatively intact, a more in detailed analysis of the mark reveals a recommendation for rescission (take-back) of $325 million in funding from the PY 06 formula accounts. This rescission reflects Secretary Chao’s assertion that there is over $1 billion in carryover funding in the WorkForce system, which can be cut without impacting service delivery.

 

According to the National Workforce Association, Secretary Chao’s carryover argument is making an impact this year with some Appropriators, despite efforts from senior Members, including Education and Workforce Chairman McKeon, who refute the Administration’s carryover argument and have argued for additional funding.

At this point, it appears that the rescission is targeted to be taken from carry-over funds but details are still being sought regarding the impact to States and local workforce areas.

Please take the time to contact the Minnesota Delegation to inform your Representative why a rescission is both unwarranted and unwise. 

Talking Points:

  • I am deeply concerned about the action taken by the Appropriations Committee in moving forward with a $325 million rescission of WIA formula funding.  According to the 1998 law, local areas are allowed to carry over a set 20 percentage of un-obligated funding from a particular fiscal year for two consecutive years. Local areas are carrying over less than the 20 percent allowed due to the continued decline in funding over the past 5 years.

 

  • If approved, the rescission will have a drastic impact on the ability of the local workforce system to train our most valuable economic resource, our workers. 

 

  • (Outline a specific initiative in your area, and how a reduction in WIA funding could jeopardize its success.)

 

  • I urge you to reject the rescission of critical dollars to WIA programs in the upcoming Labor-HHS appropriations bill and make full funding of the existing workforce system a top priority.

Contact information for the Minnesota Delegation can be found on the MWCA website: http://www.mncounties3.org/mwca/Legislative/Legislative.htm

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Minnesota Workforce Council Association

Anne Olson, Director

125 Charles Avenue, St. Paul, MN 55103-2108

Phone: (651) 224-3344       Fax: (651) 224-6540       www.mncounties.org3/mwca