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Cooper, Maudine, acting vice president for Washington operations, National
Urban League, Washington, D.C.; Rev. Leon Sullivan, chairman of the
board, Opportunities Industrialization Centers of America, Philadelphia,
Pa.; Pedro Garza, executive director, SER-Jobs for Progress, Dallas, Tex.;
Ruth Kobell, legislative assistant, National Farmers Union, Washington,.
D.C.; and Rabbi Menachem Lubinsky, director, government and public af-
fairs, Agudath Israel of America, New York, N.Y
Humphrey, Gregory, director of legislation, American Federation of Teachers;
Gene Bottoms, executive director, American Vocational Association; and
Dale Lestina, legislative specialist, National Education Association...........

STATEMENTS

Page

490

553

American Federation of State, County and Municipal Employees, prepared statement (with attachment)....

703

American Personnel and Guidance Association, Nancy M. Pinson, trustee, prepared statement (with attachments)....

809

American Vocational Association, Dr. Gene Bottoms, executive director, prepared statement....

569

Bellamy, Hon. Carol, city council president, New York, N.Y., appearing on behalf of the National League of Ĉities.

244

Prepared statement

252

786

735

724

Brown, Lawrence C. Jr., president, 70001 Limited, prepared statement....
CETA Coalition, Larry L. Glantz, national employment law project, prepared
statement..

Chamber of Commerce of the United States, prepared statement....
Cooper, Maudine, acting vice president for Washington operations, National
Urban League, Washington, D.C.; Rev. Leon Sullivan, chairman of the
board, Opportunities Industrialization Centers of America, Philadelphia,
Pa.; Pedro Garza, executive director, SER-Jobs for Progress, Dallas, Tex.;
Ruth Kobell, legislative assistant, National Farmers Union, Washington,
D.C.; and Rabbi Menachem Lubinsky, director, government and public af-
fairs, Agudath Israel of America, New York, N.Y

Prepared statement

Cozart, Powell, employment service director, Michigan Employment Security
Commission, prepared statement.

David, Robert (Jack), executive director of the South Carolina Employment
Security Commission, prepared statement........

Detroit Greater Opportunities Industrialization Center/Career Intern Program (GOIC/CIP), Audrea H. Blanding, director, prepared statement.... Dumas, Hon. Woodrow W., mayor of Baton Rouge, La.; Neil Hurley, director, Lowell, Mass., CETA consortium; and Marcia Eaton, manager, employment opportunities pilot program, Washington balance of State CETA program..... Prepared statement

Eaton, Marcia Congdon, manager, Washington employment opportunities
pilot program, Washington State Employment Security Department, pre-
pared statement....

Garrahy, Hon. J. Joseph, Governor, State of Rhode Island, chairman, Nation-
al Governor's Association, prepared statement (with attachments).
Ginzberg, Eli, chairman, National Commission for Employment Policy, and
director, Conservation of Human Resources, Columbia University; Sar Levi-
tan, director, Center for Social Policy Studies, the George Washington
University; and Willard Wirtz, chairman, National Manpower Institute.
Prepared statement

Heartwell, William L., Jr., executive vice president of the Interstate Confer-
ence of Employment Security Agencies; Robert E. David, executive director,
South Carolina Employment Security Commission; Powell Cozart, employ-
ment service director, Michigan Employment Security Commission; and
Stuart Verchereau, director, employment security division, Vermont De-
partment of Employment Security, a panel.......
Henderson, Hugh, Jr., board chairman, Opportunities Industrialization
Center of Greater Milwaukee, prepared statement....

Humphrey, Gregory, director of legislation, American Federation of Teachers;
Gene Bottoms, executive director, American Vocational Association; and
Dale Lestina, legislative specialist, National Education Association..
Prepared statement

Hurley, Neil J., director, CETA program, Lowell, Massachusetts consortium,
prepared statement......

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Page

Indian and Native American CETA Coalition, Elizabeth Bennett, facilitator, prepared statement (with attachments)......

741

Javits, Hon. Jacob K., a U.S. Senator from the State of New York, prepared statement.

5

Jefferson, Dr. Arthur, general superintendent, Detroit Public Schools, prepared statement.....

799

Kaiser Aluminum and Chemical Corp., prepared statement.

770

Kobell, Ruth E., legislative assistant, National Farmers Union, prepared statement (with attachments)...

531

Kolberg, William H., president, National Alliance of Business, prepared statement....

468

La Cooperativa, State of California Migrant and Seasonal Farmworkers Coun-
cil, George Ortiz, chairman, prepared statement (with attachments) .....
Levitan, Sar A., Center for Social Policy Studies, the George Washington
University, summary statement

Lockhart, Larry J., CETA Administrator, Union County, N.J.

760

111

422

Prepared statement (with attachments)..

426

Lubinsky, Rabbi Menachem, director, government and public affairs, Agudath
Israel of America, prepared statement.

548

230

Prepared statement

234

MacIlwaine, Hon. Paula, commissioner, Montgomery County, Ohio, represent-
ing the National Association of Counties.

Marshall, Hon. Ray, Secretary of Labor, accompanied by Jodie Allen, Deputy
Assistant Secretary, Policy Evaluation and Research; Charles Knapp,
Deputy Assistant Secretary, Employment Training Administration; Richard
Johnson, Acting Administrator, Office of Policy Evaluation and Research;
and Robert Schwartz, Assistant Director, National Institute of Education .....
Prepared statement

Massachusetts State Employment and Training Council, prepared statement...
McGlotten, Robert, associate director, legislative department, AFL-CIO..

Prepared statement

National Association of Civilian Conservation Corps Alumni (NACCCA),
Robert Griffiths, executive director, prepared statement

7

23

780

288

291

802

National Education Association, Dale Lestina, legislative specialist, prepared statement.

609

National League of Cities, Carol Bellamy, city council president, on behalf of, prepared statement....

260

Comments on proposed legislation (with attachment).

273

Schiff, Fran W., vice president and chief economist, Committee for Economic Development; William Kolberg, president, National Alliance of Business; and Lloyd Hand, senior vice president, TRW, Inc...

451

Prepared statement

455

Stansbury, Hon. William, mayor, city of Louisville, Ky., accompanied by
Michael McPherson and Carol Nickerson, U.S. Conference of Mayors..........................
Prepared statement

187

191

Sullivan, Rev. Leon Howard, founder/chairman, Opportunities Industrialization Centers (OIC of America), prepared statement..

510

Tryon, Rosalie L., executive director, ADVOCAP, Inc., prepared statement (with attachments).

364

Walker, Gary C.,_ vice president, Manpower Demonstration Research Corp., and Rosalie L. Tryon, director, ADVOCAP, a community action agency and supported worksite in Wisconsin, a panel.

341

Prepared statement.

345

Whitehurst, Hon. Daniel K., mayor of Fresno, Calif., accompanied by Michael
McPherson, U.S. Conference of Mayors.....

170

Prepared statement.

174

Williams, Hon. Charlotte, county commissioner, Genesee County, Mich., accompanied by Jon Weintraub, associate director of the National Association of Counties........

201

Prepared statement

206

Wirtz, Willard, chairman, National Manpower Institute, prepared statement...
Youthwork Inc., Benjamin Lattimore, director, prepared statement.....

141

753

ADDITIONAL INFORMATION

Articles, publications, etc.:

An Employment and Education Agenda for Youth in the 1980's, a policy statement by the National Council on Employment Policy......

157

Articles, publications, etc.—Continued

Employment Service Youth Initiatives for 1980, from the Interstate Con-
ference of Employment Security Agencies, Inc., March 12, 1980..
Expanding Employment Opportunities for Disadvantaged Youth, recom-
mendations of the National Commission for Employment Policy to be
included in the Commission's Fifth Annual Report to the President and
the Congress

Final Report of the National Commission on Employment and Unemploy-
ment Statistics, comments on youth labor and force statistics.
Formative evaluation of the private sector, initiative program, a, from
the Ohio State University, January 1980.
Information on:

Youth Employment and Demonstration Projects Act (YEDPA) pro-
grams.......

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Administration's Proposed Youth Training and Employment Act......... Making the Connections: Private Industry Councils, a New Direction for CETA-A Study of the Early Experience of Twelve Private Industry Councils

65

885

Migrant Education, the Idaho Story.

623

Migrant Teenagers-Help Keep Them in School!, from the Idaho State
Department of Education.....

636

Rationale and justification for vocational education's role in youth employment programs, from the American Vocational Association, March 13, 1980

583

What Shall We Do for (Or To) Our Youth in the 1980's?, by Sar A.
Levitan, Center for Social Policy Studies, the George Washington Uni-
versity
Communications to:

113

Nelson, Hon. Gaylord, a U.S. Senator from the State of Wisconsin, from: Bailin, Michael, vice president, Corporation for Public/Private Ventures, Philadelphia, Pa., March 10, 1980........

884

Church, Hon. Frank, a U.S. Senator from the State of Idaho, March
24, 1980 (with attachment)...

619

Weintraub, Jon, associate director, National Association of Counties,
Washington, D.C., March 13, 1980 (with attachments)....
Williams, Hon. Harrison A. Jr., chairman, Committee on Labor and
Human Resources, from Hon. Ray Marshall, Secretary, Department of
Labor, June 10, 1980 (with attachments)....
Questions and answers:

220

835

.................

Marshall, Hon. Ray, Secretary of Labor responses to questions asked by
Senator Nelson....

84

Marshall, Hon. Ray, Secretary of Labor responses to questions asked by
Senator Williams.

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YOUTH EMPLOYMENT AND WELFARE REFORM

JOBS, 1980

WEDNESDAY, MARCH 5, 1980

U.S. SENATE,

SUBCOMMITTEE ON EMPLOYMENT, POVERTY,

AND MIGRATORY LABOR,

COMMITTEE ON LABOR AND HUMAN RESOURCES,

Washington, D.C.

The subcommittee met, pursuant to notice, in room 4232, Dirksen Senate Office Building, commencing at 9:34 a.m., Senator Gaylord Nelson (chairman of the subcommittee) presiding.

Present: Senators Williams, Nelson, Javits, and Metzenbaum.

OPENING STATEMENT OF SENATOR NELSON

Senator NELSON. The Senate Subcommittee on Employment, Poverty, and Migratory Labor today begins 4 days of hearings on legislative proposals relating to youth employment and the administration's welfare reform jobs bill.

The subcommittee is pleased to have Secretary of Labor Ray Marshall as the leadoff witness at this set of hearings. A number of witnesses representing State, county and local governments, community-based organizations, vocational and educational agencies, employment and training institutions, and business and labor groups will also present testimony to the subcommittee.

However, before Secretary Marshall begins, I would like to make a brief opening statement.

During the past 3 years, the Congress has worked cooperatively and diligently with the Carter administration, and particularly with the Department of Labor, to develop a wide variety of employment and training programs to serve economically disadvantaged youth. In 1977, Congress enacted the Youth Employment and Demonstration Projects Act as a 3-year experimental program aimed at testing out various approaches to transitioning young people from school to work.

At the end of this fiscal year, that legislation expires. Therefore, Congress must decide what program or series of youth employment programs to reauthorize for future years, the length of the reauthorization, and the levels of spending for the programs.

On January 10, President Carter announced a major new education, training and employment program for youth. At that time the President stated that the youth program was his administration's "major domestic initiative for 1981." When fully implemented in 1982, the President's youth initiative, together with current youth programs, will provide almost $6 billion for basic education, work

(1)

experience, and training for over 2.3 million young people. The total $6 billion program represents a $2 billion increase over the $4 billion that will be spent on education, training and employment programs for youth by the Department of Labor during this fiscal

year.

The current $4 billion of youth employment programs breaks down as follows: $826 million will be spent on the YEDPA demonstration programs; $1.3 billion will be spent on the Job Corps ($416 million), summer employment ($609 million), and the Young Adult Conservation Corps ($250 million) and an additional $2 billion will be spent on young people who participate in the public service. employment program funded under title II-D and title VI of CETA and under the title II-A, B and C programs that provide for on-thejob training, work experience, institutional training, and other services needed to enable persons to obtain unsubsidized employment.

All of these programs and all of this spending are directed at one of the most serious and pervasive problems confronting our society; namely, excessive youth unemployment. Over the years I have been fully supportive of the efforts to develop programs to serve disadvantaged youth, and this year I certainly intend to work with the administration to shape and develop an effective youth employment program. And, of course, I continue to support this objective. However, in view of the events of the past few weeks, it is my judgment that any new youth employment initiative will have to be launched without new and additional commitments of Federal funds next year and for the forseeable future.

Right now, every key economic indicator-the inflation rate, the prime interest rate, the balance of trade, productivity growth and unemployment-shows our economy to be in great peril. Yesterday, leading banks raised the prime interest rate to an astounding 17 percent, an all-time record level. It is predicted to go even higher in the next few days, and there have been numerous reports that President Carter will propose credit controls to get inflation under control.

The newspapers also have reported that the administration is looking for ways to further reduce the fiscal 1981 budget. In the employment area, Monday's Wall Street Journal reported that Labor Department programs could provide at least 15 percent, or $1.5 billion, of an overall $10 billion reduction. Last night's Washington Star reported that among the options being considered by the administration for reductions in 1981 were reducing the number of public service jobs for unemployed workers from 450,000 to 380,000, cutting the summer jobs program by half to 500,000 jobs, and eliminating the Young Adult Conservation Corps which is projected to provide over 20,000 jobs for youth next year.

There is no more worthy or important objective than helping economically-disadvantaged youth with education, employment and training. But unless we can get inflation under control, there will be no jobs available for young people.

Federal spending, in my judgment, must be reduced. We have no choice. The reduction of spending will be an important part of the solution to our economic problems. Therefore, it would be inappropriate, especially in view of the reductions that will likely occur in

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