And Mr. Chairman and members of the committee, I have to add-although this is not my budget, it actually was released before my confirmation-I am learning to love it greatly, enjoy its resources, and understand what you as members of an appropriations committee know full well. And that is, although there might be certain spots where you can and will make changes, the overall ceiling does cut the level of rhetoric down. I cannot come to you and tell you how I would put more into everything. Because the answer is-I cannot, will not, and should not. And if there are areas in which you want to see substantial differences, the resources have to come from other areas which also have needs, constituencies, and the desire to do well. So it is a difficult balancing act which will now engage you and one in which I hope our cooperation will be as full as possible.

PREPARED STATEMENT

We at the Department of Labor feel that the priorities reflected in the fiscal year 1992 budget will enable us to continue our efforts to make a positive influence in the lives and well-being of America's workers.

This concludes my statement, Mr. Chairman, and I will be happy, along with the assistant secretaries here with me, to try to answer your questions.

[The statement follows:]

STATEMENT OF LYNN MARTIN

Mr. Chairman and members of the subcommittee, I am pleased to appear before you and other members of the Subcommittee to discuss the Department of Labor's fiscal year 1992 budget request. I would like to extend my thanks to you for the courtesies extended to me since I became Secretary of Labor.

I am grateful, Mr. Chairman, as I am sure are the members of this Subcommittee, for the solid foundation left me by Elizabeth Dole at the Department of Labor. During her stewardship, she was able to build upon the actions of people who preceded her, moving the Department in many new and exciting directions. I am fortunate to take the helm of a Department which has such a rich history and has made a positive difference in the quality of life of America's working men and women. It is our working men and women in factories, farms, ships, businesses, government offices, health care facilities, schools and other areas, who have been the backbone of the great American economic machine, and have built a democracy which continues to inspire mankind. During my years in public service, I have stood squarely in the corner of America's working men and women and that is where the Labor Department will stand during my tenure as Secretary.

Before I detail the Department's budget, I would like to share with you the goals which I have for the Labor Department, goals that I mentioned during my confirmation hearing in January. These goals represent a spectrum for American workers which will touch their lives before, during, and after their years in the labor force. First, in order for working men and women to take advantage of the opportunities our nation provides. I will strive to ensure that our working men and women have the skills to form a lifetime foundation for productive work. Moreover, by working with labor, business, educators, and state and local governments, I will do all that I can to assure that Americans have the best jobs possible.

Our human resources are our most precious natural resource. This is equally true in times of peace and in times of conflict. We must commit our full attention to enhancing our human resources. Skills training may be the single most important task we undertake and in fact, the most meaningful to the future of our country and its workforce. In fiscal year 1992, the Labor Department will spend $5.3 billion for employment and training programs. In this era of fiscal restraint, one of my top priorities will be to see that our programs are directed to those who are least skilled, and are the most disadvantaged. Assuring that programs meet today's needs

is a mandate I will work hard to achieve. I will squeeze every training dollar as tight as I can to get the most out of it.

Mr. Chairman, in this day of a "global economy," America is faced with a new reality, that productivity is no longer the only standard that determines success or failure in the marketplace. In today's world, we must address the quality, customization, variety, timeliness and convenience of our goods and services. Effective preparation and utilization of our workforce to meet these new standards will determine America's ability to compete in the global economy. As Labor Secretary, workforce preparedness will be among my top priorities, and I will work actively with labor, business, educators, and colleagues in government at all levels. I want to ensure that we understand the international challenge and its complex of human resource development and trade strategies so that Americans can compete better today and in the future.

My second goal for the Department will be to fulfill our obligation to those currently on the job, which includes ensuring that our workers are as safe as possible, and that everyone has an equal opportunity to succeed. I am proud to serve a President who is committed to opening doors for all Americans. I am awaiting the results of a series of fact-finding glass ceiling reviews being conducted by the Department. As you know, the "glass ceiling" refers to the invisible barrier in the management ranks of business and industry which freeze women and minorities from advancing beyond mid-management levels. Equal opportunity in the workplace has long been a passion of mine, Mr. Chairman. As a Member of Congress, I led the fight to protect House employees from discrimination and unsafe working conditions. As a working parent, I am also committed to supporting and encouraging innovative programs which assist both mothers and fathers in balancing work and family responsibilities. Mr. Chairman, my third goal will be to ensure basic fairness and integrity of the private pension system through enforcement of ERISA. During my five terms in Congress, I heard time and time again from constituents who were concerned about the safety of their pensions. Safeguarding Americans' retirement funds is foremost on my agenda to ensure workers security at the end of our workers' employment. I will work to ensure that our private pension system is safe and meets the needs of today's workforce and the retirees of tomorrow.

The Department will continue to place strong emphasis on firm and fair enforcement. Vigorous enforcement of our statutes and regulations is critical to the mission of the Department. However, just as these provisions mandate what management and labor cannot do, I believe that the Department must be a can do agency. One of the ways in which the Department can help ensure the welfare of American workers is to provide "compliance assistance so that businesses large and sman W what the laws are and strive to actieve voluntary compliance.

We must also encourage State and local governments, as well as management, labor unions and individual workers to cooperate in developing solutions to prob lems and competitiveness issues that face America's workforce. The Federal govern ment does not have all the resources or ingenuity to provide all solutions. It A aver all, in small and large businesses across America where jobs are created. These Dubi nesses need the flexibility to continue to create jos, and to remain competitive in today's ever-changing global market.

Mr. Chairman and Members of the Subcommittee, as we search together for solu tions to competitiveness issues and other problems, my fout wat open to Cobr gress, labor, business, and State and local governments. My mind will be open W better ways of doing things

Finally, Mr. Chairman. I want to mention that we are all deeply indered to the hundreds of thousands of men and women who are serving in Opera. Dever Storm, many of whom were called away from their job w werve their nation ha qur troops return home. let me make it very clear that one of my top priorities w.. to see that those who served in the Persian Gulf are were wack with open arme to the workplace East is entitled to be restored to the peitot va he or she wo have achieved, but for military service and is the event of coality bu during service the person shout be offered another appropriak yærin

I will now proceed with an overview of the programe and resouroa vya va is this budget request one was relens my lem w abbure vid every dollar i wisely spent.

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category with very specific procedures to enste ist selbs area de un, ende ed. The Department & fiscal year 18th pudge refers te President's and my wa

mitment to limit spending in discretionary programs and thus bring the deficit under control. At the same time, this budget contains necessary resources to allow the Department to continue to meet the significant responsibilities that we have and provide for some new challenges which the Department is about to undertake. With respect to legislative initiatives, the fiscal year 1992 budget request once again assumes passage of a set of amendments to JTPA. The principal changes will be to replace the existing Block Grant and Summer Youth employment and training programs with separate year-round programs for adults and youth. I will be reviewing other aspects of the proposal before it is transmitted to the Congress. The amendments are intended to target more intensive and comprehensive services to economically disadvantaged individuals with significant barriers to employment. Also, we will again propose in the amendments authorization for a series of Youth Opportunities Unlimited (YOU) demonstrations to target comprehensive services to youth living in high poverty areas. The fiscal year 1992 request for job training grants for youth is $1.3 billion and a total of $1.1 billion is requested for adults. An estimated 503,000 youth and 417,400 adults are expected to be served in these enhanced programs in fiscal year 1992. Another $25 million is requested for the new YOU demonstrations to target comprehensive services to an estimated 16,800 youth living in approximately 25 high poverty areas.

Legislation will be proposed once again to repeal the training, job search, relocation, and benefit entitlements of the Trade Act of 1974. The Administration continues to feel that the training and benefits provided under Title III of JTPA are sufficient to meet the need. Repeal of the Trade Adjustment Assistance (TAA) provision of the Trade Act would eliminate costly duplication and inequitable treatment of displaced workers. The fiscal year 1992 request for TAA is for $226.2 million to provide $154 million for TAA benefits, $72 million for TAA training and $250,000 for benefits and allowances under the Redwood National Park Act. Assuming TAA is repealed effective October 1, 1991, the Department will no longer require $164 million of its current request and that amount will be withdrawn. The balance of about $62 million remaining in the fiscal year 1992 request will be used to pay benefits to workers receiving assistance under TAA as of September 30, 1991. Training and other support services will continue to be available under the Economic Dislocation and Worker Adjustment Assistance (EDWAA) program. In fiscal year 1992, $527 million is requested for EDWAA which will serve an estimated 294,000 participants. This will include $50 million for the recently passed Clean Air Act to provide assistance to individuals displaced from their jobs as a result of the Act's requirements. Consistent with my goal of ensuring basic fairness and integrity of the private pension and welfare benefits system through enforcement of ERISA, I expect to repropose legislation to strengthen the enforcement provisions of ERISA. I am currently reviewing the specific elements of the enforcement legislative proposal that was introduced on the Administration's behalf in the last Congress. I will be reviewing the specifics of that legislation to determine whether I wish to make any modifications in the Department's proposal. I can assure you, however, that I strongly believe in the goals behind the ERISA enforcement legislation.

We will also propose legislation to clarify and improve the status of the Pension Benefit Guaranty Corporation's (PBGC) claims in bankruptcy, including the recovery for shutdown benefits provided in some pension plans, to give PBGC the option of becoming a member of creditors' committees in bankruptcy proceedings, and to further tighten interest rates used to determine company contributions to underfunded pensions. The primary concerns in this legislative proposal are that PBGC receive priority in claiming assets when firms are terminating pension plans during bankruptcy proceedings and that plans improve their funding to reduce PBGC's risks.

Mr. Chairman, before I provide a summary of the Department's fiscal year 1992 budget, I would first like to take this opportunity to acknowledge all of the fine work that you and members of the Subcommittee you Chair on Disability Policy for the passage of the Americans With Disabilities Act. Your personal commitment as Chief sponsor and floor manager in large measure facilitated passage of this landmark legislation.

Mr. Chairman, we in the Labor Department share your concerns about the needs of the disabled. The ADA will redefine the American workforce by adding a very large new protected minority. In the Employment and Training Administration, it is estimated that 8 percent of our JTPA grant participants are disabled. Further, $3.9 million in JTPÅ Pilot and Demonstration funding is utilized for projects for people with disabilities to increase the number and quality of job opportunities. Also, the President's Committee on Employment of People with Disabilities continues to play a strong advocacy role in promoting employment opportunities for

people with disabilities. My staff in the Office of Federal Contract Compliance who have responsibility for enforcing Section 503 of the Rehabilitation Act of 1973 are already working with the Equal Employment Opportunity Commission to coordinate the provisions of the ADA with our Section 503 regulations to ensure that the standards under the two laws are consistent. We plan to issue draft coordination regulations by October 1991 and final rules in January 1992. The ADA sends forth a clear message that the employment of millions of workers, heretofore assumed unemployable, is now a moral, economic and legal imperative in this country.

For the Job Corps, the budget request is for $887.5 million in fiscal year 1992. The request includes proposed appropriations language that would allow us to utilize $20 million, previously appropriated for four new centers (two each in fiscal years 1992 and 1993), for ongoing construction, rehabilitation and acquisition needs during fiscal year 1992. These funds will be used to correct known safety and health deficiencies and other substandard conditions and allow for additional center relocations. The two new centers that are scheduled to open in fiscal year 1991 (Alabama and Kansas) will raise the number of program slots available to 41,338.

The request for Federally administered JTPA programs of assistance to specific groups such as Native Americans, migrant and seasonal farmworkers, veterans, and JTPA research activities and pilots and demonstration programs is $186.7 million in fiscal year 1992, which is a net decrease of $36.9 million below fiscal year 1991. Funding for the Stewart B. McKinney Homeless Assistance Act is not requested for fiscal year 1992 in the Department of Labor. Rather, funding will be requested in a new Supplemental Assistance for Facilities to Assist the Homeless account in the Department of Housing and Urban Development.

The request for the Community Service Employment for Older Americans is $342.8 million, the same amount requested last year, and a decrease of $47.5 million below the fiscal year 1991 appropriation. This request will support 56,600 slots in this program from July 1, 1992 through June 30, 1993.

This budget request includes $2.3 billion for unemployment insurance administrative expenses, an increase of $278.4 million (14 percent) over the appropriated fiscal year 1991 level. The fiscal year 1992 level will provide over 49,300 staff years of service to operate the unemployment insurance programs. The Administration is proposing a fiscal year 1991 supplemental appropriation for an additional $100 million for this program due to projected increases in the unemployment insurance workload. For Employment Services, the request is for $836.9 million in fiscal year 1992, a net decrease of $48 million from fiscal year 1991. Included in this level is $750 million for State grants and $86.9 million for National activities. Included in National activities is a $27.5 million program increase specifically for increased alien labor certification workload and $12.2 million for state-automation grants which was provided in the fiscal year 1991 appropriation. In addition, the Administration will propose a reauthorization of the Targeted Jobs Tax Credit program for an additional year (i.e., through December 31, 1992). The fiscal year 1992 request will be amended to provide an additional $20 million to cover the administrative costs of this program.

With respect to those accounts which provide Departmental staffing for employment and training programs, worker protection, labor and employment standards and statistics, we are requesting 18,628 FTE in fiscal year 1992, a net increase of 273 FTE over fiscal year 1991. The change is the net of additions in high priority programs, decreases due to planned reductions, and overall budgetary constraints.

The major increases proposed in specific accounts are as follows: For the Program Administration account, which funds staff in the Employment and Training Administration, our request includes an increase of $9.1 million and 31 FTE over the fiscal year 1991 level. Included in this total is an increase of $1.5 million and 31 FTE for increased responsibilities and workload under the Immigration Act of 1990.

In the Labor-Management Services appropriation, we are requesting an increase of $8.5 million over the fiscal year 1991 level. An additional $7.4 million is requested for the Pension and Welfare Benefits Administration which includes $4 million for the increased cost of processing Forms 5500 filed with the Internal Revenue Service and $1 million for enhanced automated data processing operations. The fiscal year 1992 request also includes an increase of $1.3 million and a net decrease of 10 FTE in the Office of Labor Management Standards. Included in this level is $275,000 for support services to improve compliance assistance and staff productivity. ·

For the Pension Benefit Guaranty Corporation (PBGC), the fiscal year 1992 request includes a program increase of $4.3 million and 21 FTE to support their loss prevention efforts, for information resource management improvements, and for the audit required by enactment of the Chief Financial Officers Act of 1990. Also, a fiscal year 1991 language supplemental is proposed for PBGC to provide for greater

flexibility in managing large and unpredictable expenses that arise so they can better handle the large pension plan terminations that they face.

For the Employment Standards Administration, the fiscal year 1992 request includes an increase of $18.8 million in the salaries and expenses account over the fiscal year 1991 level. This amount includes an increase of $2.9 million and 50 FTE to begin a review of the long-term roll in the Federal Employees' Compensation program.

The fiscal year 1992 request includes a proposal for an appropriation language change in the Special Benefits appropriation whereby the Department would be allowed to reimburse an employer, whether private or Federal, for a portion of the reemployed worker's salary to encourage employers to rehire disabled Federal work

ers.

For the Occupational Safety and Health Administration, we are requesting an increase of $16.9 million for enforcement of safety and health programs.

For the Mine Safety and Health Administration, we are requesting an increase of $12.6 million over the fiscal year 1991 level. The fiscal year 1992 request includes $1 million to continue the replacement and standardization of management information systems.

For the Bureau of Labor Statistics, we are requesting an increase of $53.7 million and 212 FTE over the fiscal year 1991 level. Included is an increase of $16.1 million and 96 FTE for improvement of Federal economic indicators and $15.8 million and 140 FTE for surveys to support the Federal Employees Pay Comparability Act of 1990. Also, the request reflects a program decrease of $5.9 million and 14 FTE for elimination of the Mass Layoffs program.

For the Departmental Management appropriation, a net increase of $19.1 million and 29 FTE is requested in fiscal year 1992. This includes an additional $5.1 million for an expanded program of policy-related research, $1.3 million and 24 FTE for legal staff and litigation support, and $2.2 million for other diverse program activities.

For the Veterans' Employment and Training Service, a proposed net decrease of $38.7 million below the fiscal year 1991 level is requested. For Federal administration, there is an increase of $2.9 million in fiscal year 1992, which includes $1.8 million for an expanded Transition Assistance Program. The fiscal year 1992 request does not include funding for the National Veterans' Training Institute. Our analysis shows that the need for staff training will decrease in line with planned staff reductions in fiscal year 1992. We project that by the end of fiscal year 1991 most Disabled Veterans' Outreach Program (DVOP) and Local Veterans' Employment Program (LVER) staff will have been trained in Professional Skills.

The amount requested in fiscal year 1992 for DVOP and LVER, state-level grant programs, is reduced by $39.1 million. This reduction is due to a "sunset" provision which Congress included in the authorizing legislation for the DVOP program which will eliminate Vietnam era veterans from the staffing formula. No provision has been made for extending the authorization for this legislation.

Mr. Chairman, we at the Department of Labor feel that the priorities reflected in our fiscal year 1992 budget request will enable us to continue our efforts to make a positive difference in the lives and well-being of America's workers.

This concludes my prepared statement, Mr. Chairman. I would certainly be happy to answer any questions that you or other members of the Subcommittee may have.

BIOGRAPHY OF LYNN MARTIN

On December 14, 1990, President George Bush announced his intention to nominate former congresswoman Lynn Martin as the 21st Secretary of Labor. On February 7th Mrs. Martin was confirmed by the Senate by a vote of 94 to 0.

Martin represented the 16th District of Illinois in the U.S. House of Representatives from 1981 to 1991. During her service in the House, Martin held a series of leadership positions. She served one term on the powerful House Rules Committee, two terms on the House Armed Services Committee, three terms on the House Budget Committee, and one term on both the Committee on Public Works and Transportation and the Committee on the District of Columbia.

Martin was one of the first women to achieve an elective leadership post in the House when in 1982 her colleagues chose her for the position of Vice Chair of the House Republican Conference, a position she held for four years. In this position Martin attended weekly meetings with the President, Vice President and other Congressional leaders.