a long time to put in place. To imply that in one year an To redirect 170,000 of the Title 11-D jobs and consolidate them is 32%. Mr. Chairman, in conclusion, there is no mistake that the Administration's intentions were sincere and attempted to create a 'realistic approach to accomplish a welfare reform package within the present budgetary restraints. Please be assured these additional 375,000 new public service jobs proposed under this bill are desperately needed in our cities. But, again, USCM has serious reservations with the redirecting and targeting of 170,000 CETA Title II-D slots for the new II-E eligible participants. asked, do we want to reduce services to the non-AFDC individ I guess the question uals who are economically disadvantaged? should also be The Conference of Mayors commends the Administration and this subcommittee for expediting this much needed and important piece of legislation. In closing, there are a few additional points I would like to make. We must eradicate the stigma we place on welfare workers as they should never be expected to accept something less because of their economic situation. Also, due to our present economic condition, as shown in the past when our economy is in a decline, the private sector has seldom expanded and usually has to be prompted by the federal government to identify and create new jobs. S1312 offers no incentives to the private sector or more importantly, to the welfare recipient to obtain unsubsidized employment. Thank you. Senator NELSON. Thank you, Mayor Stansbury. Do the representatives of the conference have any statements? Mr. WHITEHURST. We have nothing to add unless you have questions, Senator? Senator NELSON. Well, I'd like to thank you very much for your very thoughtful comments. We may submit some questions to you in writing after I've gone through the record for further clarification. Otherwise, I have no further questions at this time. Thank you very much. Senator, I believe you have a witness from Ohio? Senator GLENN. Yes, I do. Thank you, Mr. Chairman. Senator NELSON. The two witnesses will be the Honorable Charlotte Williams, commissioner of Genessee County, Mich.; and the Honorable Paula MacIlwaine, commissioner, Montgomery County, Ohio. Senator GLENN. Thank you very much, Mr. Chairman. It is my pleasure today to have the opportunity to introduce to the committee, Paula MacIlwaine, who is testifying on S. 1312 the Work Training and Opportunities Act, which is the jobs portion of the administration's welfare reform program. A provision of S. 1312 requires all Governors to develop annual plans for a job search assistance program for AFDC-eligible adults. After an 8-week job search, AFDC adults who have not secured private-sector employment would be eligible for a CETA job or training. Mrs. MacIlwaine is a county commissioner for Montgomery County, Ohio. She was in my office this week to tell me about the county's welfare reform demonstration project, a CETA-funded program to help employable, general relief welfare recipients find and obtain jobs with private employers, or enter employment and training programs leading to permanent employment. Without detracting from Commissioner MacIlwaine's testimony, I just want to say that I was delighted to learn of the success to date of the job assistance program. It only began in January and is already showing decided results in Montgomery County, Ohio. I might add that when I first came to Washington some 51⁄2 years ago, someone pointed out to me the help wanted ads in the Washington Post on Sunday; and it became a matter of interest, and every Sunday I check the Washington Post. A week ago last Sunday, there were 42 pages of help wanted ads in the Washington Post. If the figure that only 20 percent of the jobs available are advertised is accurate, it means that anybody that really is out looking and wants a job in Washington, D.C. can probably find one. There were 42 pages of help wanted ads Sunday before last that covered every possible kind of job, from the most menial labor to nuclear scientist. It's that kind of matching up the people with the jobs that they have tried to in Montgomery County, Ohio, which is mainly Dayton, Ohio; and that Mrs. MacIlwaine has taken a vital part in over the last couple of months and which appears to be bearing a great deal of fruit. It helps welfare recipients secure the private sector jobs, and it seems to me to be so fundamental that I find it hard to believe that we haven't stressed this type of approach before. In times such as this, when we must make intelligent and difficult decisions about the best use of our Federal dollars, high priority should be given to programs such as the job search assistance program, which has a twofold benefit. It reduces Government spending, and makes it possible for people to get off the welfare rolls and provide for themselves and their families. Mr. Chairman, Mrs. MacIlwaine is here to speak on behalf of the National Association of Counties, and so she stresses some of the national implications. However, I hope that in your questioning, you will be able to question her in more detail on the experience they have had in the last couple of months in Montgomery County, Ohio. I think it bears directly on your deliberations here. I am glad to take part in introducing Commissioner MacIlwaine to the committee. Senator NELSON. Thank you very much, Senator Glenn I appreciate you taking your time to come over to make a statement and introduce Paula MacIlwaine who is commissioner of Montgomery County. Now, I notice you both have statements. First, would you identify yourselves for the reporter. Mr. WEINTRAUB. Jon Weintraub, associate director of NACO. Ms. WILLIAMS. Charlotte Williams, county chairman, Genessee County, Mich., immediate past president of the National Association of Counties. Ms. MACILWAINE. I'm Paula MacIlwaine, county commissioner from Montgomery County, Ohio. Senator NELSON. You may proceed however you may desire. Your statements will be printed in full in the record. If you can summarize, it will be helpful. Who wishes to start? Ms. WILLIAMS. I will, Mr. Chairman. STATEMENT OF HON. CHARLOTTE WILLIAMS, COUNTY COMMISSIONER, GENESSEE COUNTY, MICH., ACCOMPANIED BY JON WEINTRAUB, ASSOCIATE DIRECTOR OF THE NATIONAL ASSOCIATION OF COUNTIES Ms. WILLIAMS. Thank you, Mr. Chairman, and members of the subcommittee. My name is Charlotte Williams, county commissioner, Genessee County, Mich., and the past president of the National Association of Counties. I'm accompanied today by Jon Weintraub, associate director, and legislative coordinator of the National Association of Counties, the only organization representing county government in the United States; and I must indicate at this point that our primary objective-and even though this is not in your committee's purview-is the renewal of revenue sharing, and we are saying this each time we get a chance. We are here today to discuss issues associated with the CETA amendment of 1978, Public Law 95-524; and the February 21, 1980 draft of the President's youth bill. We would appreciate if the subcommittee would keep the record open so that we can submit additional comments once the bill has been introduced and reviewed. The average wage has been shown to be a major national problem. Surveys verified by NACO, USCM, the State of Massachusetts, and DOL regional offices, have demonstrated the magnitude of the problem. Many prime sponsors are forced to pay wages below the poverty level because of the average wage restrictions. Studies have clearly shown that PSE jobs in local government have a 2 to 3 to 1 better transition rate than those in CBO's, yet PSE jobs in most local governments are a thing of the past, thanks to the average wage. If transition is still important, we urge to alleviate the average wage problem. We would be happy to work on an amendment with committee staff and urge its adoption of this legislation. The maximum wage must also be increased. One solution might be to set the maximum wage as a percentage of the average wage. The 1980 consortiums bonuses have been released and provide a 2.2-percent bonus this year. NACO feels this is disastrous to the future of consortiums. We urge members of this subcommittee to amend section 202(f) of CETA to prioritize funding for consortiums bonuses. We urge that an amendment be added to insure that such sums as necessary be set aside to provide a 10-percent consortium bonus, or a specific percent of the funds be available for consortiums, in II (b) and (c), as it was in section 103(b) of Public Law 93-203. NACO supports forward funding for titles II (b) and (c), IV and VII of the Comprehensive Employment and Training Act, CETA. We propose that this subcommittee amend section 127 of Public Law 95-524, and require the Secretary of Labor to report to the Congress by February 1, 1981, on the advantages for forward funding of title II (b) and (c), title IV and title VII. With regard to title VII, we propose that not more than 25 percent of the funds available for title VII be available for title II(c) activities for clients without regard to income as long as those clients are then replaced by CETA eligible clients. Finally, Mr. Chairman, I hope that we can work together with appropriate Labor Department officials to find an effective amendment to section 106. As you know, there has been some criticism of the Department for not being rigorous enough in requiring repayment and collecting misspent funds. With the 1978 amendment, CETA has been tightened up. The Inspector General's operations are well underway, and as so often happens, the pendulum has swung completely in the other direction. Prime sponsors are being driven from the program by new rigid insistence on dollar-for-dollar payback of local tax dollars for petty mistakes in the administering an enormously complex CETA program. Just last month, Berrien County in my State voted 9 to 2 to give up their prime sponsorship. With unemployment so high in Michigan right now, you may well wonder why a county, especially one with a particularly effective CETA program, would choose to give it up. First, the commissioners checked to make sure that their needy citizens would not lose out. The law requires that somebody operate a program in Berrien County. Once that fact was established, |