in section 442 of CETA, and the anti-substitution and labor consultation provisions of section 443 of the current law

will not be changed.

Framework of the Legislation

The new legislation would consolidate the existing subparts of title IV-A and revise title IV-C of CETA.

The three existing subparts would be replaced by the following new subparts differentiated by the extent of local and

Federal responsibilities.

Allocations for Basic Programs

The first subpart would provide general purpose basic grants to prime sponsors. These grants would constitute 59 percent of the total program funds.

O

Three-fourths of this amount would be distributed
as general allocations among all prime sponsors
according to the current YETP formula.

Equal Chance Supplements, constituting one-fourth
of the basic grant funds allocated to prime sponsors,
would provide extra funds to those prime sponsors
with very large concentrations of disadvantaged
youth, for the purpose of providing intensive
programs and services in distressed areas. These

grants are an essential feature of our proposal.
It is very clear that additional resources are
needed to give an equal chance to youths who
live in areas where concentrated problems of
unemployment, poverty and social disorder pose
multiple employment barriers. A highly-targeted
formula has been developed for these supplementary

allocations.

The legislation would also continue the existing law's set-asides of funds to Governors for special Statewide

youth services (5 percent) and to programs for Native American youth (2 percent) and eligible youths in migrant and seasonal farmworker families (2 percent).

Program Design

Both the generally distributed allocations to prime sponsors and Equal Chance Supplements would be available for use as general purpose basic grants. A wide variety of services, such as those currently available under YEDPA would be authorized.

The intent is to authorize prime

sponsors to provide the array of services needed to give each participant the skills needed to get and keep a job.

Emphasis would be placed on efforts to overcome sex-stereotyping

and on career development for nontraditional occupations and on efforts to assist the handicapped.

Prime sponsors would be required to develop well-designed and well-supervised programs focused upon the achievement of basic and occupational skills needed for and leading to employment in the regular economy. The object is to support programs of the caliber of Job Corps that will serve youth in nonresidential settings.

The overall program funded with the basic grant would center on out-of-school youths, including those beyond high school age or dropouts of high school age. Services for eligible in-school youth would be worked out in cooperation with local education agencies (LEA's) and would include exposure to labor market and career information as well as work experience carefully coordinated with educational activities. Prime sponsors would support work experience

and related services but not basic education in the schools

or local educational agencies with funds under this Part. Prime sponsors' programs operated through community-based organizations, and other alternative arrangements could be used for educational programs leading toward a high school or equivalency diploma. Programs may be operated

by postsecondary institutions, but funds may not be spent for courses leading toward a postsecondary degree. Prime sponsors whose jurisdictions include target schools funded under the Youth Education and Training Act legislation will make adequate part-time work experience opportunities available for youth to support programs under that Act in those schools pursuant to an agreement with the local educational agency.

Services for eligible out-of-school youth, including dropouts, would emphasize development of basic reading, writing, and arithmetic skills for those who need them, supported with employment opportunities and work experience. Training would be developed in cooperation with local educational agencies and private industry councils to assure its usefulness to employers so that as many as possible

of the work opportunities are located in the private sector. Performance Standards

The Secretary would establish performance standards for prime sponsors. In addition, prime sponsors would be required to assure strict accountability and performance standards designed to monitor their service deliverers carefully. Individual achievement records would be kept

for each youth to continuously document the participation

and progress of youths throughout their period of enrollment. These records would be available as a job reference for

any youth wishing to use it for that purpose. Records would be released to non-program personnel only with the consent of such youth.

Benchmarks of achievement will be locally developed

by prime sponsors, in consultation with local educational agencies, private industry councils, youth opportunity councils, prime sponsor planning councils, labor organizations, and other appropriate community organizations. Consistent with basic criteria issued by the Secretary, benchmarks will be developed in the areas of basic employability skills, work maturity (such as reliable attendance on the job), basic educational skills (such as reading, writing, arithmatic and speaking), and occupational competencies. Benchmarks would be designed to utilize achievement of minimum standards, such as returning to school, completion of a GED, etc. Prime sponsor performance standards will be based

on program outcomes such as job placement, job quality,

job retention, and return to school, as well as on program management criteria.