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A scarcity of funds to support the Employment Service and these specialized veterans employment programs is difficult for employers, workers, and the states to understand, because the Federal Unemployment Tax paid by employers produces revenues dedicated to these services. These funds are held in the Employment Secu. rity Administration Account in the Federal Unemployment Trust Fund, which had a balance at the end of fiscal year 1990 of $2.24 billion, over $1.16 billion above its statutory ceiling.

LABOR MARKET INFORMATION A unique feature of the Employment Security System is the important array of programs-providing labor market information-data, management information, and economic analyses to support federal, state and local policy makers in their evaluation of labor market conditions. This “abor markei intelligence network," upon which so many critical employment and training decisions are made, needs to be strengthened.

Funds for gathering key information have been curtailed over the last several years-resulting in reduced occupational details, local current employment data cutbacks, and other related data reduction. Compounding this data disappearance is the lack of technical assistance, training in analytical techniques, and coordination-from the Department of Labor for the maintenance of a comprehensive statel local labor market information system required under the Job Training Partnership and Carl D. Perkins Vocational and Applied Technology Education Acts. ICESA supports funding levels of $70.8 million for Bureau of Labor Statistics programs, $9.4 million for the National Occupational Information Coordinating Committee, and $4.3 million for the Job Training Partnership Act Title IV-E program.

For fiscal year 1992, we urge you to establish an automation grant similar to the ones supporting the unemployment insurance and Employment Service programs, to provide capabilities for all states to produce local occupational information needed in planning employment and training programs. An initial investment of $6.3 million is needed for states that have little or no automation in their research departments across the nation.

In closing, we believe expansion of automated capabilities is the indispensable component for insuring the continued success of the Employment Security System programs and for making them more responsive and effective in meeting the needs of the people we serve. Although we have seen significant improvements in the state of automation among employment security agencies in recent years, we believe the necessary automation infrastructure requires a greater commitment of resources. As outlined in this statement, such a commitment would include raising the level of appropriations for Employment Service and unemployment insurance automation grants and initiating an appropriation for labor market information automation.


History of UI Workload (AWIU) vs.

Base Funding Level: FY 1975-92

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75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92

Fiscal Year

Prol Total Workload

Base Request
Actual Total Wkload

UIS: April 17, 1991
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FY 1991 and FY 1992 roquests issume
1 1.8/1.7 Million Bus. AWIU.

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74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91


VIS: April 17, 1991
Chart: bar18 Up

Employment Service – Allotments To States

Relative To
Total Grants
1984 Dollars

Grants at the
To States

Buying Power Rate of Inflation
FY 1984 $740.4


$740.4 FY 1985 $777.4


$772.2 FY 1986 $758.1


$800.0 FY 1987 $755.2 $689.1

$815.2 FY 1988 $738.0


$844.5 FY 1989 $763.8


$879.1 FY 1990 $779.0


$921.3 FY 1991 $805.1


$971.1 FY 1992* $750.0



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Senator HARKIN. Cynthia, thank you for your testimony. I do not understand how with the projected unemployment picture that the administration could request $750 million. If we were to appropriate that amount of money, what would that do nationwide in terms of your services?

Ms. EISENHAUER. It is a dramatic cut in the current level of funding for employment service operations. It would severely damage our ability to match jobseekers with the jobs. It would continue our low rate of filling job orders in our local offices.

Senator HARKIN. Well, I appreciate the testimony. So 838 was the figure you had?

Ms. EISENHAUER. 838 for employment service functions, yes.
Senator HARKIN. Senator Gorton.

Senator GORTON. All I can comment on, Mr. Chairman, is that I hear exactly the same message from my Washington Unemployment Department.

Senator HARKIN. Thank you very much.



CATION, ET AL. Senator HARKIN. I see Father William Byron, president of Catholic University, on behalf of the American Council of Education.

Father Byron.

Father BYRON. I speak for all 15 associations listed on the cover page of our testimony, Mr. Chairman, and say that our top priority is student aid, and so we focus on title IV. We seek especially increases in the campus-based programs, but first we want to emphasize the priority for the needy, the Pell grants. We are recommending that they be put at a $2,700 maximum award level. That would mean an $876 million increase.

On the campus-based programs for supplemental educational opportunity grants, we recommend a $250 million increase.

On the College Work Study Program, we are recommending an increase of $55 million.

I would just say anecdotally, Mr. Chairman, just yesterday the chairman of our biology department sent me a letter he received from a prospective student. Trying to recruit that student, she was asking could she get college work study in the biology program to not only enhance her education but to make that education financially available. It is a great program.

For Perkins loans, we recommend new Federal capital contributions of $200 million.

Now we specify in our testimony the number of students who will benefit by these recommendations, and we also acknowledge the differences between our recommendations and those of the administration. We are interested, of course, in title IX funding because that would produce the next generation of faculty and, we would hope that beneficiaries of increases in title IX funding would be women and minorities because we expect greater representation in the faculties of the future. We are asking only for $15 million.

Just let me take the occasion to say we like the homefront initiative in the budget resolution being considered this week, and the

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