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Jobs for the 21st Century

ETA FY 2006
Budget Request
February 7, 2005

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EMPLOYMENT AND TRAINING ADMINISTRATION UNITED STATES DEPARTMENT OF LABOR

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ETA FY 2006 Budget Request $10.63 Billion Total 1,201 FTEs Enhanced Flexibility in exchange for Greater Accountability

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$2.7 Billion

ETA FY 2006 Budget Request
Total Request: $10.6 Billion
$465 $207 Million Million $259 $5.84 Million Billion

$250 Million Community-Based

Trade Adjustment Assistance Training and Employment State Unemployment Insurance Advances Program Administration

Job Training Grants

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Jobs for the 21st Century

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Prepare Workers for New Opportunities

Job Training Reform
Flexibility for states & localities States can consolidate up to 9 federally funded training programs Greater individual choice More accountability for getting results

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A Demand Driven System…

Responds to and anticipates the needs of businesses and workers competing in a global economy Builds on the success of the President’s High Growth Job Training Initiative Strengthens community colleges as workforce investment partners

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Cost of State Workforce Services Program Year 2002

$1.556B (36% of total)
Total Expenditures (in $ Billions)

$1.11B (26% of total) $0.90B (21% of total)

$0.75B (17% of total)

Employment Services
Labor Exchange

Infrastructure

Core/Intensive Services
Counseling Assessment Support Services

Training
Classroom On-the-Job Customized

Statewide Projects ($543M) Rapid Response ($254M) Local Administration ($232M) Partnrships/ Universal Services ($527M)

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Elements of the President’s Job Training Reform Consolidated Grants WIA Plus Consolidated Grants Innovation Training Accounts

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Consolidated Grants

• Combines Four Funding Streams WIA Adult Dislocated Worker Youth Employment Services • To restructure for results

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WIA Plus Consolidated Grants

Governors may choose to consolidate other employment and training programs from the . . . Department of Labor Department of Education Department of Agriculture

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Consolidation Options for States
2005 Enacted $190 $243 $2,636 $570 $261 2006 Budget $192 $259 $2,720 $200 $254

Dollars in millions

Program Veterans Employment TAA Training Voc Rehab Adult Education Food Stamps E&T

No drop in participants from targeted populations allowed

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Enhanced Flexibility for Greater Accountability

A single State Integration Plan for higher yearly performance standards Freedom to operate for maximized overall results A 10-year goal with a 100% placement rate of workers trained with public resources

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Innovation Training Accounts

Build on the Success of WIA’s Individual Training Accounts Allow Individuals Access to Public and Private Training Resources Allow long-term training in recognition of demand for 21st Century Skills

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Community-Based Job Training Grants

To strengthen community colleges’ role in promoting the full potential of American workers Builds on HGJTI’s success through employer-focused, competitive grants to community colleges $250 Million requested

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YouthBuild Transfer

Teaches youth ages 16 – 24 marketable skills in the construction trades More closely aligned with ETA’s employment mission $58.9 Million from HUD to DOL No net budgetary effect

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Prisoner Reentry Initiative

Combines the resources of faith-based and community organizations and a commitment by the federal government to reduce the costs of reincarceration An employment-centered approach offering short-term housing, mentoring and other services $35 million requested for DOL’s role

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Strengthening UI Integrity

$30 Million for ID theft prevention $10 Million increase for In-person Reemployment and Eligibility Assessments Give states new tools and resources to improve benefit payment control and tax collection Save $2.2 Billion over five years by preventing/recovering overpayments and collecting delinquent employer taxes

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Dollars in 000’s

ETA FY 2006 Budget Overview
FY 2005 Enacted FY 2006 Request $11,136,652 5,318,864 0 890,922 1,343,584 986,288 317,440 96,856 1,546,333 137,441 436,678 3,636,709 2,673,456 845,568 97,974 19,711 1,574,300 170,101 $10,634,718 5,842,949 3,912,856 0 0 0 285,000 39,936 1,517,019 88,138 436,678 2,716,830 2,632,915 15,910 48,294 19,711 1,431,400 206,861

EMPLOYMENT AND TRAINING ADMINISTRATION TRAINING AND EMPLOYMENT SERVICES
WIA Consolidated Grant Program—Formula Grant Adult Employment and Training Activities Dislocated Workers Employment and Training Activities Youth Activities WIA Consolidated Grant Program—Competitive Grants WIA Consolidated Grant Program—National Activities Job Corps National Programs

COMMUNITY SERVICE EMPLOYMENT FOR OLDER AMERICANS STATE UI AND ES OPERATIONS (Discretionary)
Unemployment Insurance Employment Service Workforce Information/National Electronic Tools/System Building Work Incentive Grants

TOTAL MANDATORY PROGRAM ADMINISTRATION