training, and away from lower skill jobs such as custodians and food service workers?

Answer. Our policy approach in our legislative proposal emphasizes the need to serve those with significant barriers to employment and skills deficiencies, and to provide participants with the services and training which will give them the opportunity for long term labor market advancement. This suggests that we will need to do both more remedial training in basic skills and more occupational training with advancement opportunity.

Question. Is a greater emphasis on higher-skill training consistent with targeting resources on the most disadvantaged clientele?

Answer. As noted in the previous question, we will need to undertake more basic skills and remedial training, but our objective is to provide more access to higher skills occupational training when possible.

FISCAL YEAR 1992 SHORTFALL IN UNEMPLOYMENT OFFICES

Question.

According to the State Unemployment

administrators, your fiscal 1992 budget is $357 million below what is needed to process mandatory benefit claims. Do you have a revised estimate of the unemployment insurance claims load?

Answer. The Department has not revised its estimated total UI claims workload for FY 1992. I believe that the figure quoted by the State UI administrators refers to an enhanced funding level for the same projected workload. We are not familiar with how they arrived at the $357 million estimate.

Question. What additional dollars do the States need to address this increased workload?

Answer. The President's FY 1992 budget request for UI administration is $178.4 million above the proposed FY 1991 level. Based on the Administration's current economic assumptions for FY 1992, we believe it includes sufficient funds to meet all the projected workloads and increased costs due to general inflation. However, if the unemployment forecasts for FY 1992 change, this could impact on the level of funds needed.

UNEMPLOYMENT LINES

Question. How are the States coping with longer lines and inadequate staffing?

Answer. Several of the States are able to handle the increased workloads only through the staff working overtime, including Saturdays, and by extending office hours. States have curtailed "up front" integrity-related activities in order to meet workload demands and issue prompt payment of benefits. On-site mass claimstaking is being performed at union halls and job sites.

Question. Are there any innovative approaches to dealing

with diminishing resources, or are States processing claims the same old way?

States

Answer. States continue to automate manual systems. have increased utilization of optical character recognition in order to speed up processing time. Voice response technology is being adapted to respond to inquiries from the claimants and employers. Lap-top computers are being utilized for itinerant claimstaking. On-line terminal usage has increased at the initial claimstaking stage.

PLAN TO CANCEL NEW JOB CORPS CENTERS

Question. Madam Secretary, I realize this decision was probably made before you came to the Labor Department, but let me ask you about the Administration's decision to seek cancellation of four new Job Corps centers. Congress appropriated money for six new centers back in fiscal 1989 more than two years ago. While you still plan to open two new centers in 1991, you have asked Congress to take $20 million set aside for the remaining centers and use it for repairs of existing facilities.

Now I'm all for rehabilitation and repair, but why should we finance maintenance work by killing an expansion plan that we've committed ourselves to?

In

Answer. Reflecting the declining federal deficit envisioned in the recent budget agreement, our proposal addresses the need to limit the growth of federal expenditures in future years. The Administration believes that available resources should be used to improve the quality of training at existing Job Corps centers. Upon activation in 1993, the four centers in question would add nearly $20 million per year to Job Corps operating expenses. addition to deleting these expenditures from future federal budgets, our proposal also includes a recoupment of $20 million in capital funds that can be redirected to existing facilities. Our proposed redirection of capital funds will further result in a direct dollar for dollar reduction in the budget authority that we would otherwise have requested for 1992.

Question. Don't you think our country can effectively use an expansion of Job Corps centers?

Answer. We do not agree that the Job Corps should be expanded beyond the opening of the two new centers reflected in our 1992 budget request. Current budget constraints imposed by the deficit reduction agreements preclude major spending increases.

Question. As military facilities are deactivated, why couldn't they be turned into Job Corps centers?

Answer. For the reasons I just mentioned, we do not agree that additional new Job Corps centers should be opened on deactivated military sites or anywhere else. I would also like to mention that moving a Job Corps center onto a deactivated military facility is not a turnkey operation. We have had experience with these situations, and the needed renovations and facility

modifications are usually very involved and very costly.

EXCESS SUMMER YOUTH FUNDS

Question. The President's budget indicates $100 million of FY 1990 Summer Youth funds were never utilized, and could be rescinded. Why were these funds never used?

The

Answer. The unspent balance at the end of the 1990 summer program is not unusual. Comparable amounts have been carried over from previous years and spent during the succeeding summers. proposed rescission was offered as an offset for the $100 million supplemental requested for the Unemployment Insurance program, if one were required. If one were not, the rescission would not be recommended.

The Department examined a number of alternatives which could provide outlay savings of $100 million. A reduction in the summer program was considered the least disruptive of the choices available. Rather than proportionately reduce summer program funding for all States and service delivery areas, the decision was made to propose that allocations be reduced by whatever amount remained unspent last year. This would protect those areas which traditionally had high expenditure rates while penalizing those areas where balances were carried over from one year to another.

The rescission would have minimal impact on planning and start-up activities. However, because total resource availability would be reduced, fewer participants could be enrolled.

Question. Would rescinding these funds in any way adversely affect planning and start-up activities for this year's summer youth program?

Answer. Possibly. The funds may be used for planning and start-up activities before the summer begins. Each year, funds for the summer program are released in April. In response to requests that the funds be made available earlier for planning and start-up purposes, the Department has indicated that unexpended funds from the previous summer may be used for such purposes. The Department has no firm data as to the amount of funds needed for such activities during non-summer months, as contrasted to administrative activities during operation of the program during the summer. There is an overall 15 percent cost limitation on administrative activities, so that, overall, no more than approximately $120 million could be expended for administrative purposes during both summer and non-summer months for the 1991 summer youth program.

Question. If these funds are not rescinded couldn't they be used to augment this summer's youth jobs program?

Answer. Yes, and in prior years unexpended funds from one program period have been carried forward and used to augment the program in subsequent program periods.

NEW DISLOCATED WORKER PROGRAMS

Question. You are not requesting any additional staff to review dislocated worker proposals and provide technical assistance to fund recipients under either the Clean Air Act or Defense Conversion Adjustment programs.

What amount of staff resources do you expect to utilize to administer these programs, and from which activities will they be diverted?

Answer. Both the Clean Air Act and the Defense Conversion Adjustment programs provide for up to 5 percent of the funds to be used for administration of the programs. It is not clear at this time, however, just what additional staff resources will be needed to effectively administer the Clean Air Act the Defense

Conversion Adjustment programs.

or

The staff currently working with the Title III program will be augmented as necessary with Regional Office staff who are in the best position to provide oversight and technical assistance, as well as staff from other ETA Offices to provide appropriate support in the areas of financial management and reporting, and assistance in coordination with activities under the employment service or unemployment insurance systems.

PBGC APPROPRIATIONS LANGUAGE CHANGE

Question. You are requesting flexibility to spend in excess of appropriated amount for administrative costs in connection with terminations of pensions. Why can't you simply request a supplemental if you need extra administrative funds?

Answer. The present language does not provide PBGC the resource flexibility to handle large uncontrollable and unpredictable increases in its workload. In addition, the pace of the supplemental process can seriously hamper the Corporation's ability to act quickly to take over pension plans and limit losses.

Over the last few years the size, complexity and predictability of pension plan termination activity has changed dramatically. These cases have required immediate and large additional expenditures to protect the financial interest of the Corporation and the plans and participants it insures. The language supplemental will give PBGC the timely resource flexibility it needs to cover these increased costs that Occur from unplanned terminations activity.

The language change would not affect Federal outlays because these expenses would be reimbursed by PBGC's trust funds which are not a part of the Federal budget. It should be noted, as with the current flexible administrative expenses limitation, increases above those amounts presented in the President's budget will be subject to Office of Management and Budget approval through the apportionment process.

Question. What additional amount do you expect to need for the balance of FY 1991?

Answer. PBGC's FY 1991 budget does not include resources to handle new large pan terminations. However, PBGC has identified four companies that have terminated or are expected to terminate large plans during FY 1991. This includes the recently terminated Eastern airline plans. The PBGC is currently in the process of assessing the resource requirements to handle these large terminations. PBGC estimates that the administrative costs for just the Eastern airline plans will be about $10.5 million for the remainder of FY 1991. The timing of the termination of the other large plans expected during FY 1991 will dictate any additional amounts that will be needed.

NATIONAL OCCUPATIONAL INFORMATION COORDINATING COMMITTEE

Question. The National Occupational Information Coordinating Committee provides basic support of State Committees in meeting their mandates to provide occupational information to support JTPA and vocational education planning and career information delivery. It is my understanding that, if approved, the proposed reduction in this area would only permit about 80 percent of the Coordinating Committees to maintain their existing occupational and career information delivery systems. How will the other 20 percent of these State Committees be impacted?

State

Answer. The Administration's 1992 request of $2.5 million for the National Occupational Information Coordinating Committee (NOICC) will enable basic support of State Committees in meeting their mandates to provide occupational information to support JTPA and vocational education planning and career information delivery. In addition, the Department of Education is requesting $4.88 million for NOICC, the same as in 1991. Funding in 1992 would enable about 80 percent of the State Occupational Information Coordinating Committees (SOICCs) to maintain their existing occupational and career information delivery systems. We estimate that operations will be reduced in 10 to 12 States.

YOUTH DEMONSTRATION PROJECTS

Question. You support a new $25 million program for a new demonstration program called "Youth Opportunity Unlimited" which is similar to last year's legislative proposal that was not enacted into law.

Don't you have authority to conduct such youth demonstration projects under existing law?

Answer. The Department believes that the crisis situation affecting youth growing up in high-poverty areas warrants a separately authorized program directly targeted towards such youth. The Youth Opportunities Unlimited (YOU) initiative targets money directly into high-poverty inner-city and rural areas where the need is most great. Further, the initiative emphasizes comprehensive services of demonstrated effectiveness and integrating as many social services as possible to assist highly at-risk youth. Making YOU an ongoing program in its own right will provide it with its own stable, dependable source of funds from year to year, which will enable sites to provide a strong foundation for their programs over time.

Question. Why don't you simply propose a $25 million increase