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 Assuming TAA is repealed effective October 1, 1991, the Department will no longer require $164 million of its current request and that amount will be withdrawn.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 PBGČ 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 JTPA 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.

In the 100th Congress, she led a successful bipartisan battle to extend to Congressional employees the same civil rights protection available to most other American workers. In the 101st Congress, she co-chaired the Bipartisan Ethics Task Force set up to review standards of official conduct for Members of Congress.

Martin's career in politics began in 1972 when she was elected to the Winnebago County board, where she served for four years. She then served in the Illinois House from 1977-79 and in the Illinois Senate from 1979-81.

Lynn Morley Martin was born in Chicago, Illinois on December 26, 1939. She graduated Phi Beta Kappa from the University of Illinois in 1960 and taught high school economics, government and English. She has two daughters, Julia and Caroline, and is married to the Honorable Hardy Leinenweber, U.S. District Judge for the Northern District of Illinois.

UNEMPLOYMENT FUNDING NEEDS

Senator HARKIN. Madam Secretary, thank you very much for that statement and for pointing out the goals of the Labor Department. We concur in those goals. We will do everything we can to help you achieve them.

I just have a few questions to start off with. The first one-the one I mentioned in my opening statement-has to do with the difference between the request and the stated need for unemployment services, the supplemental funding for unemployment offices to speed up the processing. You asked for $100 million-I made a mistake earlier. Iowa had a 25-percent increase in new claims. I guess the national average has been about 22 percent. And they tell me the worst is yet to come. I guess there is a lag in the recession. Unemployment lags are supposed to come up later as demonstrated by this chart here.

Where is the chart? I have charts.

The chart people have been busy. There are the charts.

First of all, you have to tell me. Where did this data come from— oh, the Department of Labor. [Laughter.]

Í did not know if it came from us or not. But evidently, you can see the January-to-March, April-to-June figures are going to go up-projected to go up considerably.

And I guess I have two questions. One, why did you not request the $201 million, which is what the Department indicates is the amount needed to make up the entire shortfall; and second, why did you not request it as an emergency, which then avoids any possibility we might have to pay for it by cutting other domestic programs. Because this is an emergency, you know, under the rules that we now have to work under. If it is listed as an emergency, we are exempted from taking it out of other domestic programs, which you indicated are already pretty tight right now, job training and other things like that.

So those are basically my first two questions.

Secretary MARTIN. Well, first of all, those are Department of Labor statistics, and the good news is that April-to-June is the high. If you had continued the chart, you would have seen it begin to go back the other way. I am sure that is not why the chart was stopped there, but the later data not shown is a good thing to know. And we will be happy to give you those figures if you would like them, Mr. Chairman.

And now to your question, which I think is really a three-part question. Part one is, do you think the money is enough?

With the carryover, and with the $100 million supplemental, we believe it is enough, with the assumption that the unemployment numbers stay the same. Virtually all of the private forecasters and almost all the public forecasters are suggesting that this is a relatively mild recession and indeed may have or is shortly to bottomout.

For a moment, let us not use OMB, since that sometimes raises a red flag in legislative halls. Even using the CBO estimate of $200 million, which includes the carry-over, the $100 million supplemental should be enough.

Now again, if something happens and unemployment goes up, which none of us want to happen nor believe will happen, then those numbers would change.

I have to add a caveat here, Mr. Chairman. There are some States-few, but some-whose systems are not as up-to-date as they should be. Just giving them more money will not change the fact that their systems have flaws.

LACK OF MODERNIZATION IN STATES

Senator HARKIN. That there is waiting lines and things like that, is what you are saying.

Secretary Martin. Well, some States just are not as modern as they should be. I am sure Iowa is not one of them, but there are some States where even if we gave them more money, we would continue to see some of the same problems until the States themselves make corrections. I might add, some of the Governors are determined to make those changes.

Senator HARKIN. But you are talking about processing time.

Secretary MARTIN. Yes; that is what the money is for. Remember, this is money for administration only. We are not talking about money for benefits for the unemployed. This is money that goes for the administration of the programs in the States to make sure that the unemployed get their money: The clerks, the counselors, and the other workers there. And if the system is flawed within that State, you can give it more money, but the system is still flawed.

The third part of your question is, why is it not now an emergency. The Congress, in its wisdom, passed the Budget Act of 1990 and made the definition for emergencies very strict indeed. I believe that in this particular case, it is not yet time to make it an emergency.

I would like to sit here and say we can do everything. But if we are able to get the $100 million and put that with the carryover of about $100 million, we think that will be enough. And, if the Senate or the House chooses to make this an emergency, that would be a big decision. It is not one that the Department would recommend at this time. If, however, you want to increase the $100 million supplemental, since we propose and you dispose, we will accept the dollars.

UNEMPLOYMENT INSURANCE ADMINISTRATIVE NEEDS

Senator HATFIELD. Yes, certainly. Senator, I would like to associate myself with these concerns. Madam Secretary, as you indicate,