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TRAINING FUNCTIONS OF EMPLOYER

Mr. Duncan. In the neighborhood youth program what you are really doing is putting the training functions on the employer rather than on the vocational training school, aren't you?

Mr. LUDINGTON. In part.
Mr. DUNCAN. What do you mean, "in part”!

Mr. LUDINGTON. There are some classroom and guidance counseling discussions and formal education provisions.

Mr. Duncan. In the Neighborhood Youth Corps, the youngster will be getting his training right in a shop with the work experience in the type of work he would plan to be placed in, whereas he to would learn it in the other program in a school.

Mr. LUDINGTON. Or in terms of whatever employment opportunities are available.

Mr. Arnold. Mr. Duncan, may I point out that in the Neighbor. hood Youth Corps about two-thirds—perhaps a little less of that enrollment were in-school youth? They might be vocational students or they might not, but their work training then might be associated with an employer while the youth is in school.

Mr. DUNCAN. Of course, that is what I was trying to get at as to whether they were a different group of youngsters or whether it would be the same group.

Mr. ARNOLD. The Neighborhood Youth Corps starts 1 year later. It starts at 15 and goes through 21 instead of through 20, as in the work study program.

SHIFT TO NATIONAL YOUTH CORPS

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Mr. DUNCAN. I think what we are trying to decide is whether this is a replacement. If so, it it a better program than the one we have been funding? If it isn't a replacement, if it is an option and describing a different type or group of people, do we need both of them rather than one to the exclusion of the other, and I don't think we have gotten any testimony on that that has been very helpful yet.

Mr. CARDWELL. I think if you could characterize the Office of Education budget, and the Office of Economic Opportunity budget in these two areas, you would find that the budget policy that they attempt to enunciate is to move forward with the Youth Corps program at a greater rate.

But, to preserve and maintain the basic concept of the work study program that is directed more toward the traditional vocational education with emphasis given to both, but with greater emphasis given at this time to the Youth Corps program which seems to have been successful in its initial ventures. In a tight budget where there had to be some hard choices the choice was made to move faster in the direction of this new innovation than in the direction of the older program.

Mr. Duncan. That is an adequate explanation except it isn't accurate. You used the word "maintained" and you are not maintaining it. You are down $10 million. Mr. CARDWELL. That is not reflected all against this program.

Mr. DUNCAN. There is a $15 million cut in the whole program, is that right?

Mr. CARDWELL. In this one area.
Mr. DUNCAN. That is all.

Mr. FOGARTY. Is there anything else you would like to say, Mr. Ludington ?

Mr. LUDINGTON. We appreciate your interest.
Mr. FOGARTY. Thank you very much.

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1966 estimate 1967 estimate

Increase or decrease

41 Grants, subsidies, and contributions (total obligations by

object).

$261, 451, 000 $250, 791, 000-$10, 660, 000

$252, 491,000

1,000,000 8,000,000

Summary of changes
1966 enacted appropriation.
Proposed supplemental: Program increase
Unobligated balance brought forward.

1966 total estimated obligations 1967 estimated obligations...

Total change.---

261, 491, 000 250, 791, 000

-10, 700,000

INCREASES Program: 1. To increase grants to States in the Appalachian region for construction of vocational

schools to the full authorization of $16,000,000
2. To initiate the program of residential vocational schools.
3. To provide for additional vocational student loans:

(a) Advances for insurance reserve funds.
(6) Interest payments on insured loans..

Subtotal, program increases.

8,000,000 3,500,000

175,000 675,000

12, 350,000

DECREASES
Appalachian regional development programs.
To decrease the funds available for work-study programs.
To relocate the vocational student loan insurance program.

Subtotal, decreases..
Total net change requested.........

-8,000,000 -15,000,000

-50, 000

-23,050,000

-10,700,000

EXPLANATION OF CHANGES 1. The Appalachian Regional Development Act of 1965 authorized $16 million for construction of vocational schools in areas of the region where such education was not available. The $8 million requested represents the balance of the total funds authorized which are needed to carry out the intent of the act. The decrease of $8 million represents the unobligated balance which was brought forward in fiscal year 1966.

2. The decrease of $15 million for the work-study program is attributed to the phasing out of the program as the Neighborhood Youth Corps program gradually assumes responsibility.

3. The requested $3,500,000 will be used to begin a program of residential vocational schools on a demonstration basis authorized by the Vocational Education Act of 1963.

4. In order to provide for additional vocational student loans to meet the expected increase in new borrowers in 1967 will require increases of $175,000 for the insurance reserve fund and $675,000 for interest payments on the loans. The $50,000 decrease reflects a transfer of this amount to the student loan insurance fund.

Expansion and improvement of vocational education, Office of Education

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An amount of $209,741,000 is requested for fiscal year 1967 for grants to States to extend and broaden vocational education as contemplated by the Vocational Education Act of 1963.

The maximum authorization of $49,991,000 is requested for fiscal year 1967 for grants to States under the George-Barden Act. This represents the same amount appropriated in fiscal year 1966. This authorization includes $15 million for area vocational programs, now a permanent authorization under the George Barden Act; $29,311,000 for allotment to States for vocational education in agriculture, the distributive occupations, home economics, and trades and industry; $5 million for practical nurse training; $375,000 for the fishery trades; $80,000

for Guam; $80,000 for American Samoa; and $145,000 for Puerto Rico and the Virgin Islands.

It is anticipated that the States will continue to use their allotments for the purposes stated above. However, the Vocational Education Act of 1963 provides that amounts not needed for these purposes may be reallotted for other purposes or to other States. Greatly increased flexibility will thus permit maximum utilization of available funds.

The Vocational Education Act of 1963 authorizes $202,500,000 for fiscal year 1967 for grants to States for persons who are attending high school, who have left high school, who need training or retraining for employment stability, and who are academically or socioeconomically handicapped; and for construction of area school facilities and certain ancillary services such as teacher training and supervision and State administration and leadership. This estimate proposes maintenance of the program at the 1966 level of $159,750,000.

Based upon the actual number of students served under vocational educational programs in the past, the projection of enrollments from 1964 to 1970 is as follows:

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The availability of funds for construction under the Vocational Education Act of 1963 will materially speed up the Nation's efforts to meet the needs for greatly enlarged vocational and technical education offerings. State projections indicate approximately 1,400 area vocational-technical schools will be built by 1975, costing more than $1.2 billion.

The demands for vocational training and retraining at the high school level, the post-high school level and for adults, will continue in proportion to the availability of new facilities and program funds for all occupational training.

The major impact on the program during the next 10 years will be the initiation of needed construction and the provision of initial equipment. State projections indicate that about 40 percent of the allotments to the States will be used for constructing and equipping schools in fiscal year 1966.

During fiscal year 1965 the States invested $242 for every Federal dollar appropriated under provisions of the Vocational Education Act of 1963. State projections indicate that funds provided by local bond issues, State appropriations and other sources will increase the States investment to an estimated $312 for every Federal dollar appropriated in fiscal year 1967.

Local communities in many parts of the country are showing intense interest in area school facilities and have approved bond issues for construction of area schools. Fifteen State legislatures have appropriated funds both for construction and operation, and in other States the boards of vocational education have approved plans for expansion of vocational education facilities. In many areas existing facilities in high schools and junior colleges are being used to establish area programs. In some instances, vocational-technical facilities have been filled to capacity after 1 year's operation.

Research and special project activities-Grants, subsidies, and contributions 1966 estimate.

$17, 750,000 1967 estimate.

17, 750, 000 Increase--

0 An amount of $17,750,000 is requested for 1967. This is the same amount which is available in 1966 for research, demonstration, and training grants to examine and improve vocational education activities.

The problems of a rapidly changing technology and the resultant industrial reorganization and changing job composition, intensified social and economic developments, and an expanding and changing work force have resulted in the

need for increased Federal support of research in vocational education. In order to provide this support the vocational education research program has been organized into seven areas of concern: curriculum development, pattern for State and local organization and administration, personnel recruitment and development, personal and social significance of work, occupational information and career choice processes, adult vocational education, and program evaluation.

The requested $17,750,000 for fiscal year 1967 will be used to strengthen the vocational education capabilities in each of the seven areas with emphasis on the needs of young people from economically depressed communities who have academic, socioeconomic or other handicaps which prevent them for qualifying for or succeeding as full-time workers. Approximately $6,300,000 will be used for continuation costs of projects begun in fiscal years 1965 and 1966, and about $11,450,000 will support the initiation of new research. A summary of the numbers of grants received and funded in 1965 and estimates for 1966 and 1967 follows:

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Grants to States under Appalachian Regional Development Act of 1965Grants,

subsidies, and contributions 1966 estimate.. 1967 estimate

$8, 000, 000 Increase---

8,000,000 The request for $8 million in fiscal year 1967 represents the second half of the full authorization of $16 million for area vocational school construction under the provisions of the Appalachian Regional Redevelopment Act of 1965. The full authorization, with matching State funds, will provide facilities for 6,000 trainees at any one time. One project in the State of Georgia has been approved by the Appalachian Regional Commission with an allocation of $544.000 of Federal funds. It is anticipated that the initial appropriation of $8 million will be allocated during fiscal year 1966, and that architectural planning, site acquisition, and construction for most projects will be underway by July 1, 1966, The $8 million requested in fiscal year 1967 will permit the completion of vocational facilities projected by the States and approved by the Appalachian Regional Commission under the total authorization of $16 million included in the act.

Work-study programs (object class 41.0) 1966 estimate.

$25, 000, 000 1967 estimate..

10, 000, 000 Decrease--

-15, 000, 000 The purpose of the work-study program is to provide part-time employment to students attending vocational education courses. Allotments to States are based upon populations in the 15- to 20-year age group. The law requires State matching funds during fiscal year 1967, equal to 25 percent of the total State's expenditure.

Although broad-scale efforts are being made to improve the economic position of minority groups, those living in depressed areas, and those whose skills hare been displaced by economic progress, much needs to be done to help schoolchildren who are unable to continue their studies without financial help.

A total of 15,000 needy students participated in the work-study program during fiscal year 1965, approximately 27 percent of this number participated in the special summer work-study program designed to help these students earn funds to return to school and continue their vocational training.

During fiscal year 1966, with $25 million available for the work-study program, it is expected that approximately 85.100 needy students will be provided employment to assist them in continuing their studies and complete their aca. demic and vocational training. Reports from States indicate that the workstudy program has had a very beneficial effect toward reducing the large number of school dropouts.

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