a major failure of democratic industrial societies all over the world, one that most of those countries consider to be one of their gravest internal domestic problems. That is one of the reasons that, from the start of this administration, President Carter, Vice President Mondale, and I have been personally committed to correcting that failure. We have already come a substantial way. Our 1980 expenditures for youth training and employment programs are $1.6 billion over the 1977, level. This investment has played a major role in stopping the trend which had existed toward increasing unemployment and underemployment among our disadvantaged youth. But there is still much to be done if we are to consolidate our gains and continue to work on this important problem. This new bill is designed for the dual purposes of continuing the most promising elements of youth programs expiring in 1980, and of applying the knowledge we have developed about what works best for whom in youth employment and employability development. The goal of the Youth Training and Employment Act, in coordination with the Department of Education's Youth Education and Training Act, is to increase the future employability of disadvantaged youth through a carefully-structured combination of education, training, work experience, and related services. This new bill is designed to address the needs of youths at different ages and stages of development, with a variety of strategies and services that aim to move youths into long-term productivity; to establish locally developed achievement benchmarks for both program providers and program participants; to consolidate local programs and increase local decisionmaking on the mix and design of programs; to redirect present youth unemployment programs toward intensive services for out-of-school youth, and provide through the Department of Education for the basic educational needs of in-school youth; to improve accountability for program performance and simplify reporting; to provide extra resources to distressed areas; to provide incentives for promoting special national purposes; to promote linkages between CETA prime sponsors and educational agencies and institutions; to improve access by youth to private sector employment; and to improve staff and program capability. When fully implemented in 1982, we estimate that the Labor portion of the program would provide services to over 1.1 million young people an increase of more than 450,000 over current program service levels. Senator NELSON. What are those figures again? Secretary MARSHALL. The Labor portion will provide services to over 1.1 million young people. Senator NELSON. This is the new initiative, the new program you're talking about? Secretary MARSHALL. Yes; it is. Senator NELSON. That is 1.1 million young people? Secretary MARSHALL. It is. Senator NELSON. That is in addition to all current programs in- Secretary MARSHALL. No; the addition is 450,000. Right now in Labor Department programs we have approximately 2 million young people involved in all of our youth participation programs including about 650,000 in the title IV youth programs. This would add another 450,000 to the title IV programs to bring them to a level of about 1.1 million. Senator NELSON. Net? Secretary MARSHALL. Net, yes, sir. Senator NELSON. So what you're saying is that the total number of young people in all of the department's youth employment programs, including job training, Job Corps, the summer youth program and this new initiative will be 2.4 million? Secretary MARSHALL. It will be about 2.5 million. Senator NELSON. Of which there will be a net increase over current programs of—— Secretary MARSHALL. Of about half, the 450,000. Senator NELSON. Current programs are costing about $4 billion, is that correct? Secretary MARSHALL. Yes. Senator NELSON. And what will be the total cost then if this program were added? Secretary MARSHALL. The total cost when fully implemented in 1982? I might enlarge on that. We're asking for 300,000 in 1981. For the Labor Department's part, it would be about $1 billion when fully implemented in 1982, so that we're not asking for very much in either the Department of Education or the Department of Labor budgets during fiscal 1981. Senator NELSON. But you're asking for a net increase in youth programs of $1 billion? Secretary MARSHALL. For the Labor Department, and about $1 billion, when fully implemented in 1982, for the Department of Education. Senator NELSON. So it's a total $2 billion increase? Secretary MARSHALL. Yes. Senator NELSON. And that will bring all youth programs to $6 billion in round numbers? Secretary MARSHALL. In round numbers; yes. Senator NELSON. And the $450,000 figure applies to all—— Secretary MARSHALL. No; that applies to the Labor Department's part and not to the Department of Education's part. Senator NELSON. The Education Department figure will be how much? Secretary MARSHALL. $1 million. Senator NELSON. So you're talking about a new increase of $1.4 million? Secretary MARSHALL. $1,450 million. Senator NELSON. And a total cost in both Education and Labor of an additional $2 billion? Secretary MARSHALL. An additional $2 billion, that's right. Senator METZENBAUM. Mr. Chairman, may I interject for a minute? Senator NELSON. Yes. Senator METZENBAUM. Mr. Secretary, isn't it a $2 billion increase in authorization, with only an actual $250 million increase in outlays? Secretary MARSHALL. Let me have Ms. Allen give you the exact figures for outlays and authorization. Ms. ALLEN. For 1981, we are requesting an additional $300 million in budget authority for the Department of Labor. We estimate we would only outlay $100 million of that amount. Senator METZENBAUM. That's for 1981? Ms. ALLEN. Yes. In 1981, for the Department of Education, we are requesting an additional $900 million in budget authority, but estimating that only $50 million of that would be expended because of forward funding. Senator METZENBAUM. So what you're really saying is in 1981 there will only be an additional $150 million, although on paper it will appear to be $1.2 billion? Ms. ALLEN. That's correct, Senator. Senator METZENBAUM. Isn't that less than that total commitment that we have been talking about, or the President has been talking about, to youth unemployment? Because certainly $150 million in outlays, which is really the critical figure, not what's authorizedthat's the rhetoric-but the reality is only an increase of $150 million. Isn't that but a drop in the bucket? Ms. ALLEN. In the following year, fiscal 1982, that would be the first full year of implementation for both components. The Department of Education will receive forward funding, so they will receive $900 million in budget authority in 1981, most of which will not be outlayed until 1982. In 1982 we would seek the full $2 billion increment, $1 billion for the Department of Education and $1 billion for the Department of Labor. 1981 is a transition year, in which both programs would be building up. Senator NELSON. Are you seeking the full appropriation for 1981? MS. ALLEN. On the Education side we are seeking the full appropriation of $900 million because of the traditional forward funding of education programs. Because it will be forward funded, we will request $900 million in budget authority, but estimate that the actual outlays would only be $50 million for planning purposes, because the program will not actually become operational until 1982. On the Labor Department side, we don't receive forward funding. We would be requesting $300 million in budget authority, but we estimate we would only outlay $100 million of the $300 million in fiscal 1981 and would carry over the remaining $200 million to continue the program build up in 1982. We would then be requesting additional budget authority in 1982. Senator METZENBAUM. And how much of that would be cut back under the proposed budget cuts that we've been reading newspaper accounts of? Secretary MARSHALL. None. We don't plan to cut back any of the new youth initiative-We don't know how much is going to be cut because no decisions have been made. Whether there will be cuts, or which programs, or what the magnitudes will be, the only thing that is happening so far is the exploration of options. But in that exploration, the new youth program will not be cut. Secretary MARSHALL. The youth proposal. Secretary MARSHALL. None of our proposed new youth programs. Senator METZENBAUM. But how about some that are presently existing? For example, newspaper accounts have reported that there's a possibility the summer program will be reduced by 50 percent, and that the Young Adult Conservation Corps will be completely eliminated. Secretary MARSHALL. They're not a part of the youth initiative. Senator METZENBAUM. Wait a minute. They may not be a part of the youth initiative, but they affect young people. Secretary MARSHALL. That's right. And there is some possibility that if the budget does get cut, that those programs could be cut. But no decision has been made on that. Senator METZENBAUM. And that would be for 1981? Secretary MARSHALL. For 1981; yes. Senator METZENBAUM. Then is it true, Mr. Secretary, that if the summer program and/or the Young Adult Conservation Corps programs are substantially cut, that although we have been talking about a strong commitment to our unemployed young people, the fact is that in fiscal year 1981 it is entirely likely that there may be less funding available than there presently is at this moment? Secretary MARSHALL. That's likely, but I think if programs are cut, what we will try to do is cut those that are least targeted, like the Young Adult Conservation Corps, which has only about half disadvantaged young people involved in it, and is a very expensive program. We can do a lot more for young people through the Job Corps, which will not be cut and through our other youth programs, than we can through the Young Adult Conservation Corps, for example. But as I say, no decision has been made about that, and I think it would be premature for me to say what the outcome is likely to be. Senator METZENBAUM. The summer program very much is a youth program. Secretary MARSHALL. Yes, and we have been working to strengthen that program. But what we have also tried to do is to have a much larger year-round program. The summer program has been very difficult to administer, and we are trying to go increasingly to year-round programs for young people, rather than having simply a summer youth program. It is very hard to start those programs up and to give much training in just the summertime. So the initiatives that we propose here, and the initiatives that we started in the Youth Employment and Demonstration Project Act have greatly increased the participation of young people in the programs, and I think can do a lot more to make it possible for them to get permanently into the work force than the summer youth programs. Senator METZENBAUM. Mr. Secretary, as I understand the answers to the last group of questions, it would appear that until July 1981, or until September 1981, which is better than a year and a half from now, there will actually, in all probability, be a cutback 68-724 0-80-2 in funding for youth employment as far as outlays are concerned, rather than any full commitment to taking 40 percent of the young black people, young minorities, off the streets, and 15 to 20 percent of young people generally off the streets. Is that correct, that we've got at least a year and a half lag before we see any movement forward, that during this period there will actually be some retrogressive steps taken? Secretary MARSHALL. Well, as I say, I don't know what the outcome of this is likely to be. Obviously, if you did cut these current programs and did not go forward with the $300 million that we're asking for the new youth program, there would be some cuts. But that has not been determined. Senator METZENBAUM. Let me ask another question. You're also talking about doing more for young people, and how many more people are going to be involved, in response to the chairman's inquiry. Explain to me how you're doing more for youth with this proposal, while the total number of service years will actually decline in 1981. It appears to me that you're going to serve more youth but provide less service, or to spread out the money to more people, but actually the bottom line is not going to be that meaningful. You have already said that some of these programs don't work and you really want to make it a meaningful experience so that it really has some impact on long-term unemployment of these young people. Now, am I correct, that the total number of service years will decline in 1981? Secretary MARSHALL. Well, if we do not cut the existing programs, there will be no decline in service years. Let me let Ms. Allen give you the exact numbers on that. Ms. ALLEN. Senator, if we assume there are no reductions in existing programs, such as summer youth or Senator METZENBAUM. Which is quite an assumption to make. Ms. ALLEN. Well, at least with respect to the programs covered by the new initiative, which essentially replaces the current YETP, YIEEP, and the YCCIP program. Those programs are projected to have a modest increase in service year levels in fiscal year 1981 associated with the additional $100 million in outlays that we project. Since the amount is not large, the increase will be modest. But we do project that there would be an increase of about 6,800 service years, which would translate into an additional 156,000 persons served. Senator METZENBAUM. You're saying there would be 166,000 more people served? MS. ALLEN. That 156,000 more people would be served. Senator METZENBAUM. And what about the service year comparison? MS. ALLEN. About 6,800 additional service years. That is full-time equivalent service years. Since many of the slots we would create are parttime, and since there is turnover in the slots during the year among participants, you can serve almost two times as many people as you have full-time equivalent service years. Senator METZENBAUM. It's 6,800 more service years? |