Department of Employment ServicesBudget Oversight Pre-Hearing QuestionsFY 2012
Overall Budget and Policy1.
Please describe the impact of the proposed FY 12 Budget on the overall operationsand effectiveness of your agency/department. Will there be any significant variations in funding expenditures between FY 11 and FY 12? If so, please identifyand explain. What budget cuts are proposed within agency for FY 2012, what potential impact will these cuts have on you agency?
DOES will experience a slight decrease to its federal workforce development budget now and in FY12. A 0.2% across the board reduction outlined in the federal Continuing Resolution will affect the agency’s WIA budget for the remainder of PY11 (July, August, andSeptember 2011). It has also been recently announced that for PY 2012 (July 2012 to June2013), WIA funds will be reduced by 10% nationally, impacting service for the agency’sfederal adult, dislocated, and youth funds. The PY12 state agency set aside will also bereduced from 15% to 5%. Specific amounts of the impact of these changes are forthcoming from the U.S. Department of Labor. The agency is currently addressing the potential impact.Despite reductions to federal funding and special purpose revenue, the Mayor’s proposedbudget maintains full funding for adult job training in his proposed Fiscal Year 2012 budgetby increasing local funds. The Mayor’s proposed budget for DOES also reflects acommitment to maintain the same levels from last year to the Transitional EmploymentProgram, despite significant local budget pressures.In FY12, the agency’s Transitional Employment Program will be locally funded at $11.3million. Additionally, DOES’s local adult training funds are increased in FY12 by $2.6million.
Currently and through FY12, the agency will also benefit from a major agency policy decision to modify the cost the agency pays to training providers for adult training from up to $8,000 per year to up to $4,000 per year. This change aligns DOES with theneighboring jurisdictions of Maryland and Virginia while maximizing the number of adultsreceiving training through Workforce Investment Act (WIA) funds. Essentially, this changeallows DOES to do more with less.DOES’s FY12 budget represents a $4.4 million total increase from FY11, mainly due to animportant increase in federal stimulus funds to modernize the District’s unemploymentcompensation program.