Summary of changes 1966 enacted appropriation__. Proposed transfer from "Unemployment compensation for Federal employees and exservicemen," for pay increases (P.L. 89-301 effective Oct. 10, 1965). Appropriation available from prior year___ 1966 appropriation, revised__ 1967 estimate__. Total change_ $399, 570, 000 25,000 1, 383, 727 400,978, 727 400, 044, 000 -934. 727 MANDATORY ITEMS Incerase: Net additional cost to place financing of pay increases on Decrease: Nonrecurring transfer to "Operating expenses, Public To provide for more intensified outreach, counseling, testing and job development activities by State employment security agencies to reach and place into training disadvantaged workers____ To provide for the expansion of the on-the-job training programs through an increase in Bureau of Apprenticeship and Training contracts with employers, labor organizations, associations, other organizations and State apprenticeship agencies for the promotion and development of training projects____ To provide for the full-year costs for 2 positions financed for only a portion of the year in 1966 (personal services, $1,500; nonlabor $200) –– To provide additional staff in the Office of the Secretary of Health, Education, and Welfare to improve overall policy direction, coordination of departmental activities under the act, and liaison at the policy level with other agencies (2 positions, $23,100; nonlabor, $1,900). Subtotal, increases_. Decreases: Reduction in training costs and allowance payments from a level of 275,000 in 1966 to a level of 250,000 in 1967 and from increased training and allowance costs per trainee resulting from greater emphasis on basic education training to meet the needs of the disadvantaged: Reduction of 25,000 trainees. Increase in average Federal costs of $64 per trainee Subtotal____ Nonrecurring appropriation made available in 1966 from 1965-To reduce staff in the Office of Education of Department of Health, Education, and Welfare due to reappraisal of staff assignments in relation to workload factors (2 positions, $23,100; nonlabor, $1,900). Subtotal, decreases__ Total change.. 17,900 -27, 700 -9,800 15, 919, 100 1,538, 000 1,700 25,000 17,483, 800 -33, 000, 000 16, 000, 000 -17, 000, 000 -1, 383, 727 -25, 000 -18. 408, 727 -934, 727 The major goal of the Manpower Development and Training Act is to insure that unemployed and underemployed persons who cannot obtain full-time jobs with their present skills, or who are working below their occupational potential, are afforded an opportunity, through provision of occupational training and maintenance allowances, to equip themselves with new and improved skills that will provide them reasonable assurance of employment. The principal functions of the Secretary of Labor under title II of the act are to identify local occupational training needs, to counsel and select persons for training, to pay training and other allowances, to provide counseling and placement services after training, and to encourage and assist in the adoption of a broad and diverse range of on-the-job training programs. The Secretary of Labor refers persons selected for institutional-type training to the Secretary of Health, Education, and Welfare, who is responsible for seeing that curriculums, instructors and facilities are provided to equip the trainees for employment in the occupations for which they receive training. When training is completed, the Secretary of Labor is responsible for assisting the trainees to find jobs and for the conduct of followup studies to determine whether or not the programs have met the occupational needs of the trainees. The following table gives highlights of the MDTA program from its inception through December 31, 1965. Status of MDTA training and characteristics of trainees, fiscal years 1963, 1964, 1965 and 1966 as of Dec. 31, 1965 1 For the persons who were unemployed prior to enrollment in MDTA training: Institutional-2 percent were low-income family farmworkers, and 1 percent for reentrant labor force. On the job-1 percent were low-income family farmworkers, and 1 percent for reentrant labor force. Mandatory changes.-None. CHANGES FOR 1967 Financing changes.-None. Program changes The 1966 appropriation provides $364 million for training costs and allowance payments. In addition there was a nonrecurring carryover of the 1965 appropriation of $1,383,727 which represented the unobligated program services and Federal salaries and expenses, which were transferred to training costs and allowance payments. The 1966 program is estimated to provide training opportunities to 275,000 trainees-175,000 in institutional projects and 100,000 in OJT projects. Of these trainees 15,000 are estimated to be approved for projects in redevelopment areas as provided by section 241 of the act. For fiscal year 1967 a program for 250,000 trainees is estimated at a Federal cost of $347 million. This program is estimated to provide 125,000 trainees in instiutional projects and 125,000 in OJT projects. Of these trainees 15,000 are estimated to be in projects in redevelopment areas. The Federal cost of $347 million excludes $11.8 million of State matching funds required in 1967, when the act provides that the States shall begin to match in cash or kind 10 percent of costs of institutional training except for training in projects under section 241, training in redevelopment areas. Program emphasis The continuing downward trend in the rate of unemployment and analysis of the characteristics of trainees indicate the necessity for a change in emphasis of the training program in 1967. Manpower training must be brought to focus on two problems: The emergence of some selected skill shortages that accompany declining unemployment, and the residual pockets of hard-core unemployment among fairly well-defined disadvantaged groups even at low gross unemployment levels. The 1967 training program will be shaped to meet these two problems. Approximately 65 percent of the training (165,000 trainees) will be directed to the hardcore, disadvantaged unemployed, including the 25 percent (60,000 trainees) devoted to training disadvantaged youth. The remaining 35 percent of training effort (85,000 trainees) will be directed to less disadvantaged or regular adults to meet emerging skill shortages in those occupations susceptible to MDTA training. The latter portion of the program is "job market" oriented, focusing on the need for more and better trained personnel in vital occupational categories. The increased emphasis to be placed on reaching the hard-core, disadvantaged unemployed calls for a person-to-person or trainee-oriented approach aimed at areas of concentrated unemployment rather than a project-oriented program. Emphasis will be shifted to the needs of the individual unemployed worker. Adoption of a trainee-oriented approach to training is a virtual necessity if the hard-core unemployed are to be reached. This approach starts with the individual, assesses his needs and aspirations, and tailormakes MDTA training to maximize his potential. The objective of this program is to develop and retrieve human resources of the Nation through training and related services. Among those groups on which greater emphasis will be placed are: older workers, nonwhite, impoverished youth, persons disadvantaged by lack of education, prison inmates, mental retardates, and the emotionally handicapped. To date, MDTA training has been largely job oriented. Occupations in which there are reasonable prospects for employment are identified; training projects are set up for those occupations, and those workers most likely to meet employer specifications are selected for training. This approach has met with marked success represented by a relatively high placement rate. The probability of successful placement was undoubtedly increased by tending to select as trainees the best qualified of the unemployed. Only 10 percent of trainees are 45 years old or more. While a fairly high percentage-something more than one-fourthare nonwhites, more than half of all trainees are high school graduates or better. Only about 1 in 20 has less than an eighth-grade education. The increased empahsis on providing training for the hard-core unemployed will require more intensive outreach and employment security services to locate, counsel, test and determine the type of preparations needed. The average unit cost of training will also be higher because of increased emphasis on basic education in the training programs as well as more emphasis on related institutional training in conjunction with OJT projects. The overall estimated 1966 cost per trainee is $1,324 while the projected 1967 average Federal costs, excluding State matching, is $1,388. Because of the higher costs per individual the 1967 program will provide for an estimated 250,000 trainees compared to 275,000 projected for 1966. A summary of the 1967 program is presented on the following pages. 59-316-66-pt. 1-21 |