The manpower bills before us, along with the proposed welfare reforms, are among the most important pieces of domestic legislation before this Congress.

Therefore, I pledge, as chairman of this subcommittee, that we will move forward and try to pass a national manpower bill this year and that in our efforts to streamline and rationalize the myriad of manpower services, we will not overlook the unique individual capabilities and needs of each American.

Neither training nor employment is an end in itself. Our goal is to make it possible for all who wish to be employed to work at an occupation of their choice with complete dignity.

This morning, before we call our first witness, I would like to introduce to the witnesses as well as the guests, in the audience my colleagues who have traveled from Washington to conduct this hearing with me.

To my immediate right is the Honorable James O'Hara, a Representative in Congress from your own State, who serves with me on this subcommittee.

To my left, Mr. William Ford, also of Michigan. Immediately in front of me to the right is Mr. Steiger, a Representative in Congress from the State of Wisconsin. Alongside him is Mr. Augustus Hawkins, a Representative in Congress from the State of California.

Our first witness this morning, whom I am pleased to welcome as the leading citizen of this great city of Detroit, the Honorable Roman Gribbs.

STATEMENT OF HON. ROMAN GRIBBS, MAYOR, THE CITY OF DETROIT, MICH.; ACCOMPANIED BY LEON SHEARER, DIRECTOR, BUREAU OF MANPOWER AND CAREER DEVELOPMENT; MILTON ROWHER, ASSISTANT DIRECTOR; AND JOSEPH TUMA, COMMUNITY RENEWAL FROGRAM, WAYNE STATE UNIVERSITY

Mayor GRIBBS. Thank you, Mr. Chairman.

Distinguished colleagues and Congressmen and guests: I welcome the opportunity to appear this morning and to present a few remarks. I would like, Mr. Chairman, to thank you for this opportunity and to also introduce briefly if I may the persons to my left and to my right.

I have with me Mr. Leon Shearer on my left, director of the Bureau of Manpower and Career Development in the Mayor's Committee for Human Resources Development, who is serving as my adviser and to my right, Mr. Milton Rowher, assistant director of our community renewal program, and Mr. Joseph Tuma, from Wayne State University, both of them serving as consultants for me on this major problem and are here to assist me if there are some questions that require some technical answers.

I would like to express my sincere apreciation for the opportunity to appear before the Select Subcommittee on Labor. Your presence here in Detroit is very timely.

Although I am one of the newer mayors, having taken office on January 6 of this year, I have had a chance to observe and experience the strengths and weakenesses of various manpower programs in the Detroit area.

On the strength of these initial observations I would urge this committee and the Congress to consider and create a manpower system including these points:

1. Consolidation of specific accountability and responsibility at the national level,

2. Centralization of control for planning and implementation of manpower efforts at the local labor market area,

3. Provision for the mayors of the large central cities to play the key role with respect to manpower programs in their labor market areas, and

4. Provision for federally financed public service employment to utilize our unused human resources to meet community needs.

Turning specifically to the matter of employment let me say that the picture in Detroit is bleak.

Even in good times, residents of the central city suffer, and in 1968 the average unemployment rate in portions of Detroit's inner city was 12.2 percent for the city as a whole, 6.7 percent-in contrast to 3.9 percent for the counties of Wayne, Oakland, and Macomb.

At the same time industry continued its exodus to outlying areas. In human terms these statistics indicate wasted lives and potential for the individuals, their families and the Nation.

More recently the situation has become much worse. Unemployment in the Detroit area has shown an erratic but serious increase. This has affected blue collar workers, and white collar workers.

It has affected youth, and persons with as much as 15 to 20 years seniority. Official figures reveal that unemployment has more than doubled within the last 5 months to a rate of 6.2 percent, over 100,000 people, in the counties of Wayne, Oakland, and Macomb.

I am informed that for the United States the figure in February was 4.2 percent. And my staff estimates that in the city of Detroit in the month of February, the rate is 10 percent.

That is an estimate that is passed upon past history and ratios. These statistics are only part of the picture. We have new entrants coming into the labor markets from schools as graduates and dropouts, in-migrants, and those who are employed but who are no longer actively seeking work.

In the face of all this, I am gravely concerned by the implication contained in the administration's manpower bill, which would trigger in certain funds for training at 4.5 percent levels of national unemployment.

This would mean, in an economy such as Detroit's an unemployment level of 6.5 percent or higher before additional funds would become available.

This is intolerable and unfair.

In a country as affluent as ours, with as many unfilled needs as ours, anyone who can work and wants to work should have an opportunity to do so.

As I have indicated, we find repeatedly that local efforts are hampered by multiagency administration, funding, and regulatory patterns and by the absence of consolidation of programs at the Federal level. This failure is borne out by the findings of the Committee on Administration of Training Programs, established under Public Law

89-787, which found that "some waste, duplication, and inefficiency existed in the nearly 30 separate federally supported training programs

By the same token, specific accountability and responsibility are required at the labor area level. As mayor of the city of Detroit, I welcome the opportunity to provide a leadership for this significant economic unit in the United States in order to make some order of proliferation and fragmentation.

As I have indicated, our major central cities must be given the key role with respect to manpower programs. These cities currently have little say as to what money is spent within their jurisdictions, or how that Federal money is to be spent.

Yet, the citizens look to the mayor to do something about unemployment. The mayor is caught in the middle. He has no control over guidelines and decisions, yet he is forced to accept the responsibility for the effectiveness of these programs.

National and State considerations are important, but in the final analysis we at the local level must decide: Training for what jobs?

Who needs the training?

What will the quality of that training be?

I have serious doubts regarding the role of the State as described in the proposed administration bill. Our most recent experience under the Safe Streets Act reveals that allocations through the State are all too frequently made without reference to need.

For this reason, a direct relationship between a responsible and accountable agency at the Federal level which contracts with a prime sponsor in an identifiable economic unit at the local level is both desirable and sufficient.

I wish to make two final observations: The first deals with the adequacy of manpower and occupational training at the present time. Regrettably and primarily for financial reasons, not every educational institution is now responding adequately to the needs of the unemployed and underemployed.

Because of the action of Congress, some schools are beginning to respond through the use of relatively modest Federal financial aid that is directed toward employability skills.

We cannot afford to allow the public and legitimate private educational institutions in this country to abandon or escape this responsibility. I have faith, that with the proper language in manpower legislation, we can create a broader base of responsibility for education in both the remedial and the preventive processes.

Secondly, I am very encouraged by the feature of Congressman James O'Hara's bill providing for public service employment.

I think I can speak for the mayors and city officials throughout this land when I say we will vigorously support legislation which provides for a federally financed public service employment program. The U.S. Conference of Mayors has urged enactment of such a public service employment program directed toward health, sanitation, transportation, public safety, fire protection, and other basic community services. We need more jobs in our city, and we desperately need more public services. A Federal program providing jobs in the local public sector begins to solve both these problems.

Thank you once again for giving me the opportunity to share my thoughts with you today.

Mr. DANIELS. Mayor Gribbs, thank you for a very fine statement. Your statement made reference to one of the bills that are under consideration by this committee. That is H.R. 11620, sponsored by Congressman O'Hara.

I think we are fortunate to have here today with the committee the author of one of the bills, Congressman Steiger, who sponsored H.R. 10908. Of course, there is a third bill which is sponsored by the administration through Congressman Ayres, the ranking minority member of the Education and Labor Committee, and that is bill

H.R. 13472.

I deduct from your remarks that you favor the sponsorship of manpower programs being lodged in the Secretary of Labor who would have the authority to approve plans by local prime sponsors Is that right?

Mayor GRIBBS. Yes.

Mr. DANIELS. In other words, it would be the endorsement of the O'Hara bill?

Mr. GRIBBS. Yes. Again I hope there are some guidelines that this should be the thrust of the authority into local areas. That is the thrust of my thought and my thinking in principle.

Mr. DANIELS. I will recognize at this time the gentleman from Michigan, Mr. O'Hara.

Mr. O'HARA. Mr. Mayor, I too want to compliment you for an excellent statement. It is an example of the kind of analysis and perception that is winning you such favorable attention from all over the country in your new capacity as mayor of this great city. I think you have indeed put your finger on the crucial point involved in our consideration of new manpower legislation.

Of course, I am very pleased that you share my view that a public service employment feature must be a part of any manpower legislation. Mr. Mayor, what we are talking about setting up as you know, but all in this room might not understand this is a public service employment system under the terms of which the Federal Government would contract with the States or with the cities, counties, units of local government and with private nonprofit agencies and these agencies would then with Federal funds hire the people it needs to perform needed public services, whether it be in the field of fire protection or public safety or recreation or whatever.

There are public services that need doing and persons who are unemployed can be put to work doing those things. That is what we want to do.

It has been suggested that we would end up doing a lot of work that was not really necessary, so-called makework projects.

That is how the critics of this legislation have described it.

Are you so well funded in the city of Detroit, Mr. Mayor and do you have so few things to do that if this bill were enacted you would have to really scrub around to find some things to put people to work doing?

Mr. GRIBBS. Mr. Congressman, I appreciate the opportunity to talk about Detroit's fiscal problems. But the fact of the matter is that we

face a gigantic deficit in the next fiscal year of the city unless we find some revenues.

Mr. Chairman, I am sure the local Congressmen are reading the papers and are more aware of it. But the city of Detroit faces a revenue gap that is a difference between our proposed expenditures and income of somewhere from $40 to $60 million.

I am right in the process of closing my budget. Unless we find new revenues sources we will again face a deficit in the next fiscal year.

Just a brief history if I may. Three years ago the city of Detroit had a $10 million deficit. Two years ago it was a $14 million deficit. This year we are going to have just under a $22 million deficit and next year depending upon the new revenue sources that we are looking for it can go up to $40 million or hopefully we will have some revenue sources and won't have it.

What I am saying is, and this budget and the figures I am talking about are geared toward maintaining existing services. The core cities like Detroit are in a bind really to provide the services that the citizens need and have a right to expect.

We have to raise new revenues and we are in trouble raising new revenues. I am not even talking about expanding services. But if there was a combined program, and if for example under the Federal legislation we received employees, I could put them into my parks and recreation department to clean up and to refurbish and rebuild and maintain existing parks.

We have been trying in our city to build to the lots, small parks and to maintain them and to put basic swings and whatever other things the children should have so they can enjoy themselves to build parks within their inner city and throughout our city and to maintain them.

We have a beautiful island called Belle Isle that is under disrepair. The answer is we don't have the money to maintain it in the manner it should be maintained. If you provided manpower to cut the grass, to allow us to re-asphalt and to build a playground, to trim the trees, to maintain it, you would provide a service that the city would not have to pay for.

You would give employment and in this fashion you would help us in that particular sector. That is just one example of many areas where there is work and there are things that should be done to make the city better. I could go on and cite chapter and verse of other needs where persons could be hired to serve public needs and yet the city at the same time would not have to expend the dollars and you would have dual aid.

Mr. O'HARA. Mr. Mayor, I am not expecting you to answer this question off the top of your head. But I would appreciate it if you could make some sort of rough estimate and supply the committee with this at a later date.

Perhaps the people with you could work on this. It would be very helpful if we could get some sort of rough estimate of just how many jobs the city of Detroit might be able to work into its operation in a relatively short period of time.

Mr. GRIBBS. I would be very happy to provide that. We could give you several figures, some accurate figures and even rougher estimates.