CONFERENCE REPORT (H.

Report 107-148) MAKING SUPPLEMENTAL APPROPRIATIONS FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2001, AND FOR OTHER PURPOSES (P.L. 107-120, H.R. 2216) Excerpts relating to the ADMINISTRATION DEPARTMENT OF LABOR EMPLOYMENT AND TRAINING

The committee of conference on the disagreeing votes of the two Houses on the amendment of the Senate to the bill (H.R. 2216) ``making supplemental appropriations for the fiscal year ending September 30, 2001, and for other purposes'' having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows: That the House recede from its disagreement to the amendment of the Senate, and agree to the same with an amendment, as follows: In lieu of the matter stricken and inserted by said amendment, insert: That the following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 2001, and for other purposes, namely: TITLE II�OTHER SUPPLEMENTAL APPROPRIATIONS CHAPTER 7 DEPARTMENT OF LABOR EMPLOYMENT AND TRAINING ADMINISTRATION TRAINING AND EMPLOYMENT SERVICES (INCLUDING RESCISSIONS) The conference agreement includes $25,000,000 for the Youth Activities program authorized under the Workforce Investment Act as opposed to $45,000,000 proposed by the Senate. The House bill contained no similar provision. The Secretary of Labor had proposed a reprogramming of fiscal year 2001 funds to increase funding for the Youth Activities program by $45,000,000. The conference agreement rescinds $65,000,000 from funds appropriated under sections 169 and 171 of the Workforce Investment Act, of which $25,000,000 is rescinded from funds available for Youth Opportunity Grants; $20,000,000 from funds available for Safe Schools/Healthy Students; and $20,000,000 from funds available for the Incumbent Workers program. The Senate bill included a rescission totaling $45,000,000; $25,000,000 from Youth Opportunity Grants and $20,000,000 from Safe Schools/Healthy Students. The House bill contained no similar provision. The Secretary of Labor had proposed reprogramming these funds for other purposes. The conference agreement rescinds $177,500,000 from funds for Dislocated Worker training activities authorized under the Workforce Investment Act, of which, $110,000,000 is from amounts allotted for formula grants to States and $67,500,000 is from the National Reserve. The Senate bill rescinded $217,500,000 from the Dislocated Worker program. The House bill contained no similar provision. The conference agreement includes provisions directing the Secretary to allocate the rescission in the Dislocated Worker formula

grant funds based upon each State's share of the unexpended balances in the program as of June 30, 2001. The Senate bill contained provisions directing the Secretary to increase State program year 2001 allotments to States with acceptable program expenditures by re-allotting unexpended balances from States determined by the Secretary to have excess unexpended program balances as of June 30, 2001. The House bill contained no similar provisions. In addition, the conference agreement modifies language included in the Senate bill to make the rescission effective at the time the Secretary determines, based upon the best information available, the unexpended balances in each of the States. The conferees expect the Secretary of Labor to render her determination by no later than September 30, 2001. The House bill contained no similar provision. The conferees note that the Governors of each State under the Workforce Investment Act have the authority to re-allocate unobligated funds among local areas. The conferees encourage the Governors to exercise this authority for local areas where there is need. The conferees are aware of concerns about rescinding Workforce Investment Act training funds during a period of economic slowdown. However, based on the information available to the conferees, it appears that there is excess funding available in the program and the rescission is necessary to meet other needs in fiscal year 2001. The conferees understand that the Secretary of Labor requires the Governors to submit State financial data for the three Workforce Investment Act block grants on a quarterly basis. The data for June 30, 2001, the end of the program year, is due on August 15, 2001. The conferees believe that timely and accurate data are critical in order for the Congress to meet its oversight responsibilities for this important program. Therefore the conferees direct the Secretary to submit to the House and Senate Committees on Appropriations an expenditure data report on each of the three Workforce Investment Act block grants at the State level and for the National Reserve funds within not more than 60 days of the end of the quarter beginning with the data from the end of program year 2000 and continuing through program year 2001.