A Roadmap for America's Future | The Budget Committee Republicans

JOB TRAINING

Why is a jobs training section included in this version of the Roadmap?

The days when a college graduate could expect to join a company and climb its ladder for an entire career are a relic of the past century. Also increasingly rare are the production-line jobs that could instantly lift a high school graduate securely into the middle class. Regardless of how well or poorly the economy is doing, most Americans already know they will likely have to switch jobs, and even careers, more than once during the course of their lifetimes.

One reason is globalization. The world’s economies have become irrevocably interconnected from forces such as advances in transportation, technological gains, the explosion of the Internet, and lowered trade barriers. All these changes have served to level the global economic playing field. Now that new markets have opened up in other countries, and money and work assignments can move around the world in a matter of seconds, Americans no longer compete only with their fellow citizens for jobs; they also are challenged by workers in India, China, Europe, and the rest of the world.

Further, as the U.S. economy becomes more complex and innovative, workers will have to be more knowledgeable and flexible to succeed – which means they will need additional education and/or job training throughout their careers. Life-long learning will be a necessary part of career development. Government cannot insulate workers from the forces of globalization, but it can help facilitate training needed to avoid, or push through, any period of uncertainty or unemployment. While the Nation’s existing job training system has been improved over failed strategies of the past, the government can better leverage and target existing resources to more effectively meet the impacts of globalization.

More: http://www.roadmap.republicans.budget.house.gov/Issues/Issue/?IssueID=9770

How will this legislation improve outcomes?

This legislation concentrates on performance.  Currently, there is no comprehensive way to judge how our job training programs are working.  By establishing requirements to improve job training outcomes across the board, we can concentrate on performance, and make sure these programs are fulfilling their mission of preparing our workers to compete in a globalized economy.  First, it improves accountability for success in existing programs by creating a common set of metrics for all federal job training programs so that Congress, the Government Accounting Office (GAO), and the public can finally see if, and how well, individuals are benefitting from the training. It bolsters accountability by requiring that both the training outcomes and the spending data for the programs are placed on a centralized website for access by the public and policy makers.

Next, the bill maximizes the effectiveness of federal dollars by requiring competitive bidding for all Federal job training grants to private contractors, giving preference to proposals that leverage private investment, and prohibiting renewal of grant contracts that fail to produce results. 

The bill also raises public awareness of the training opportunities available in local communities and the need for workers to continually invest in their education and skill sets so that they prosper in the global economy. 

Most importantly, this legislation encourages States to become incubators of innovation in job training.  If a State asserts that it can do a better job than what the various 40-plus federal programs have dictated to them, it may elect to receive a block grant from the Department of Labor in lieu of participating in the Federal programs and have three years to prove it. 

More: http://www.roadmap.republicans.budget.house.gov/Issues/Issue/?IssueID=9770

What are the new performance metrics and how do they differ from current law?

The challenge with current law is that each of the 49 existing Federal job training programs has its own unique set of performance measures.  Several programs allow grantees to define their own outcome measures.  Some allow the measures to be “negotiated” every year.  The Food Stamp (SNAP) Employment and Training Program does not even bother to consistently track outcomes.  This makes it impossible to consistently evaluate performance at a national level. 

This legislation addresses the problem by requiring every Federal job training program to track the following:

1.     The type of training provided and the cost per student.

2.     The trainee’s employment status immediately after training, and then 1 year, 3 years, and 5 years after training.

3.     Whether or not participants are working in the field for which they were trained in order to determine whether the training led directly to employment.

4.     The participant’s income level two years before and up to 5 years after training to determine if the training led to increased income.

5.     The participation level in federal support programs (i.e. TANF, SNAP, EITC, etc.) before and up to 5 years after training to determine if it led to self sufficiency.

The legislation clarifies that these performance measures do not prohibit States or individual programs from creating or continuing their own additional outcome measures.

Further, in cases where training is obtained with a voucher, the legislation limits tracking to voucher-holders. This will prevent them from being denied access to private-sector training programs where the program administrator does not want to bear the burden of reporting on the rest of the unsubsidized trainees.

More: http://www.roadmap.republicans.budget.house.gov/Issues/Issue/?IssueID=9770

 How will Congress and the public be able to tell if the performance metrics are working?

To publicize program progress, expose inefficiency, and deter unjust enrichment this legislation requires the Department of Labor (DOL) to post the annual training outcomes as well as the program expenditure data on a centralized website. 

Also required is regular completion of nationally representative experimental impact evaluations that use “control groups” to compare the outcomes of those who have been trained to those who have not received training. 

Further, the Government Accountability Office (GAO) must submit periodic reports to Congress on how well the job training programs are working, and how much duplication still exists.

How does a state obtain a block grant?

To obtain a Job Training block grant, a State must submit a plan to the Department of Labor (DOL).  The agency then has 90 days to act on the application or it is deemed granted.  To allow for some flexibility, the legislation provides for two, 30-day good faith extensions if additional negotiations are needed.  However, if the DOL ultimately denies a State’s block grant application, it must publicly issue a reasoned explanation along with the denial. 

Once a State’s plan is approved, the DOL enters into a memorandum of understanding with the other relevant agencies to consolidate the streams of funding that the State is entitled to under the various programs.

If a State fails to produce improved outcomes within 3 years, its block grant contract with the DOL automatically dissolves and the State’s job training funding reverts back to its original streams.  How will a State’s outcomes under a block grant be compared to those of existing programs for purposes of performance measurement?

Block grants would not be available to states until one year after the legislation’s enactment.  This would give the federal job training programs a head start to really perform under the new common metrics. The results would be used as the initial performance baseline, and updated annually.  Thereafter, States that obtain block grants would have their performance compared to the federal baseline. In addition to establishing consistent performance reporting for all Federal job training programs, this approach will create competition for who can best serve trainees. A State must significantly improve upon the federal government’s performance in order to continue its block grant. Meanwhile, the federal programs will have the incentive to surpass each State’s performance.  This will create a race to the top that will benefit trainees.  

How many job training programs are there in the federal government and how many agencies administer them?

There are 49 Federal programs that fund employment and training services administered by 8 different agencies. 

List of Federal Job Training Programs: