cit, the U.S. economy loses 25,000 jobs. Between 1980 and 1984, the U.S. lost in excess of two million jobs due to this trade imbalance.

The purpose of training as defined in the Job Training Partnership Act incorporates not only the earlier goal of Equity, but also recognizes the need to upgrade the skills of the existing work force, as the private sector increases its investment in technological change in its pursuit to regain its lost competitive edge. From my point of view, manpower policy today, as expressed in Job Training Partnership Act, challenges us not only to train people irrespective of their social and economic origin, but also to provide the appropriate skill training for existing jobs openings, now and in the immediate future.

Section 106 of the act relating to performance standards mandates that employment training be an investment in the economy; therefore it is essential that the basic returns on investment be measured by the increased employment and earnings of the participants and the reduction in their dependency on welfare.

No longer may human capital investments be made irrespective of that investment's impact on the economy.

The California Family Economic Security Act of 1982 provided a state legislative vehicle for implementing the federal Job Training Partnership Act. The purpose of this act was not to duplicate the federal legislation at the state level, but rather, to the extent possible permitted by federal law, to establish a state policy, and the administrative structure for operating the JTPA program within California. The composition of the California State Job Training Coordinating Council as defined in the Family Employment Security Act consists of 32 members-eleven members representing the private sector, seven state representatives, seven local officials, and seven others representing public/private organizations such as veterans, labor, older Americans, local vocational educational organizations serving youth, community based organizations, proprietary schools, and training participants.

It is my feeling that in order to achieve a desired basic shift in training policy as expressed in the Job Training Partnership Act from one of equity to one that provides equal opportunity while at the same time servicing the needs of the economy, it is absolutely critical that the private sector representatives on the council-the largest single block on the council-be able to assume a leadership position. Ross Alloway, acting chairman of the council and Dean Smith the council's executive director recently testified before the California state Senate Finance Subcommittee #3, which I chair, that the most difficult and continuing task which the council has faced since its inception has been the problem of coordination.

Is it any wonder then that if the council is not dominated by the private sector, the goal of relating in an equitable fashion job training to the needs of the economy will revert back to the previous policy of viewing employment training simply as an equity problem.

One of the weaknesses of the JTPA legislation as I see it is that it assumes that significant private sector representation on the council will automatically result in private sector leadership of the council. This leadership to my way of thinking can only be achieved if the private sector members are able to pursue their responsibilities as a full-time commitment, and this can occur only if the private sector in the aggregate fully supports both ideologically and financially the private sector members on the council.

Mr. MARTINEZ. Well, I have to tell you that that was outstanding testimony, excellent. Í had prepared some questions, but you answered them in your testimony.

Senator GREENE. Thanks for coaching me in the back. [Laughter.] Mr. MARTINEZ. A lot of the things that you say are things that we have to make more people aware of, especially those who are in a position to write the legislation, to write the regulations, to implement those things on the local level.

And I

Senator GREENE. We're in good shape here. We're in good shape here, and, you know, I'm not saying that there aren't some things that need to be tidyed up. Of course, I think people need to know that there's no law that's put on the books that doesn't need to be changed, altered, at some point in time, because-by virtue of the fact that circumstances change.

Obviously you have to make changes on them. But we have a foundation. We have a foundation which is intelligent, and we have a foundation which can meet the challenge of the future.

Mr. MARTINEZ. As enthused as I was about this legislation when it came before us, and this was one of the very first things that I was involved in when I went to Washington, I knew there would be changes, and I knew we would have to implement something to be able to get to that point where we could make those changes.

Let me

Senator GREENE. Let me mention one other thing. You know, it's a funny thing when you say that. You know, I would have voted for the Reagan Welfare Refund Act. I should have actually started talking about that, because, you know, I am in close association with the President, you know. He's an OK guy, but he's, you know-and I feel that's mutual.

as

But, you know, I really, you know, people need to go back and look at that. We wrote it in. I wrote it in, and you know, this direct line and what have you, and it's been deleted, and, you know, you know, as the story goes, when Reagan ran for President the Democrats came out here, the Democratic National Committee came out and what have you.

They looked at the bill, they said, "Shoot, this is like a bill or something. We can't take it on." They said. "Why, you know, the guy that wrote it is still in the legislature," so they talked to me and they said "Well, what happened, Senator?"

I said "Well, you know, we made a good bill." Additionally, it's very strange that Reagan was involved with the Job Training Partnership Act. We've got-you know, it's really when you get balance, where maybe, you know, you really strike the true note, the true C, the true A.

And I don't know. I don't know whether it makes sense, but if you look through history you see those coincidences.

Mr. MARTINEZ. Yes. You're absolutely right.

Let me take an opportunity now, because I was negligent in not doing so in the beginning, to introduce Beth Buehlmann, who is the education and labor staff director for Congressman Jeffords.

I did not introduce him, but also present is Congressman Charlie Hayes, from Chicago, IL. He made a great effort to be here today to give this hearing credence.

And normally we ask for a statement from those Members who are here, and I did not. Charlie, do you have a statement at this time?

Mr. HAYES. I really don't have a statement. I do have a comment of Hon. Senator Greene. I must admit your testimony was quite comprehensive, and I'm learning something this morning that I didn't know.

Senator GREENE. I'm a student of Gus Hawkins. [Laughter.]

Mr. HAYES. Hawkins and I were just commenting the other day. We served together, as you know, on the Education and Labor Committee, and one or two subcommittees, that we probably represented, if not the poorest, two of the poorest districts in the whole United States in terms of income.

The things I've learned from your testimony, though, that at least California as a whole, you've sort of shaken off hard times. I can't say the same for Illinois, you know-

Senator GREENE. No, I can't say that.

Mr. HAYES. All right. Well, straighten me out.

Senator GREENE. Well, what we've done, Congressman, is we've laid the foundation in our public policy. Now we have the job of implementation. For example, many people just woke up several years ago to realize we had finally fully integrated education.

As you know, education has resisted this in the past. We finally succeeded in doing it here in California, as you finally did in the Job Training Partnership Act. What we have to do now, Congressman, is we have to make it work. We have to get the message over, we have to show the people that "Hey, you are part of this. We expect you to make a contribution. We aren't trying to tell you how to do your thing, but you have a great deal to contribute, and we've got to deliver for the people."

So we've done it on paper, Congressman, but we are not doing it in fact, and I don't want to give you that impression. For example, we're working now on the welfare reform. Welfare reform, the direction it's taking. I probably am going to end up preparing the packets.

I'll just say, we're going to throw it right into JTPA, and I fully expect that we will have people that will come to Sacramento and will not want to do that, but I'll tell you one thing, they're going to have to respond to why is it that you will refuse when you are functioning under a bill which has the first single primary purpose to train the disadvantaged? Why would you even have the audacity to think of not wishing to-welfare recipients are disadvantaged.

Mr. HAYES. You are conscious of the fact that as we proceed to try to reduce this huge Federal deficit, social programs that are suffering from the shorts in the beginning stand to get less from the Federal Government than they got before, and I'm sure this includes the JTPA program.

There are some instances that we run into in some testimony and places where the people are quite disappointed from the switchover from CETA to the Job Training Partnership Act, and we find instances-I don't know whether it's prevalent here in California-where particularly young people, where the employment ratio runs so high, have been denied admittance to enter the Job Training Partnership Program because of their, what is categorized as, "academic deficiencies," you know.

And this is particularly hurting to some minority people, so I don't know whether you have regulations or restrictions here in California that deny people the right to even enter into the training programs, and then the other side of that coin is even after they enter into the program, the placement on jobs is the real problem.

Of course you indicated that certain counties-a couple counties here in California-actually like it and are being filled because you don't have the people trained. This may be true in other places, but the opposite of that has been true too, where they've been trained and we haven't known where to put them in a lot of places because they were the jobs didn't exist.

That's all.

Senator GREENE. We have some of that here also, Congressman. I don't for 1 minute take that broad explanation of our policy structure. However, we do have some localities that are doing a pretty good job. That's why I say we have a mixed bag.

That's why I say we really haven't come to bat yet because I don't know, I cannot say definitively enough at the local level, we have looked at that. We're researchers, my group. We hire and contract with people, I guess, or in fact we're preparing now a 3-year contract with the Stanford Research International, Security Pacific Bank, UCLA econometric model, and what have you.

We have always been very heavily based in research, and I might take this opportunity to introduce my consultant, who is my economist, Dr. Vincent Munger, who is seated back there and who is the gentleman who is my economic teacher, has a Ph.D. in economics, has a labor background, has an education background, is world traveled, has studied abroad, and what have you.

And I'm fortunate enough to have an economist on the other side of the wall, so close enough that if I talk too loud in my office, he can overhear what I'm saying.

Mr. HAYES. Thank you, Mr. Chairman.

Mr. MARTINEZ. Thank you, Mr. Hayes.

While Senator Bill Greene is coming up here to join us on the panel, I'm going to do something which I hope the minority has no objection to, and that's invite Bill Greene to question witnesses as they come forth. As a State senator who is responsible for these programs in the State, and as a member of the coordinating council, Bill is very concerned with some of the testimony being given here today.

We talked earlier about there being too many people for jobs that don't exist. One of the things that is unique about JTPA is that the training that takes place here is for jobs that do exist. I think that Senator Greene's testimony touched on the need to do a projection on job opportunities, which we can do.

We do have the capability of doing that, to determine the training needs for the future. I think that's one of the things that we have to really work hard on.

The last thing I'd like to mention before I introduce the first panel is that the President, in his State of the Union Message, said that we must provide job opportunities for our youth, and I think that he was referring to our adults as well as our youth, in order that they could know the pride of work and have confidence in their future.

That's a statement I think that every one of us can agree with, however immediately after making that statement, the administration asked for a $100 million rescission of the funds appropriated for the JPTA Title II program. This request isn't consistent at all with the statement made in the President's State of Union Address.

But regardless, Congress did not act on those rescissions, and Congress has to act on a rescission or it doesn't take place. So as a result, the $100 million has to be made available for the training process.

California's share for this coming year is $74,607,971, so hopefully we'll make a dent in some of that unemployment and those people that need that training.

At this time I would like to call the first panel, and as I call your name if you're here would you please come forward and take seats? Robert Bloom, executive director of Alameda County Private Industry Council. Robert Clark, chairman of the Los Angeles City Private Industry Council. Wesley Slade, Fresno County Private Industry Council.

Edward-and this one I'm going to have a little trouble withZoolalian?

Mr. ZOOLALIAN. Zoolalian.

Mr. MARTINEZ. Zoolalian. Former Monrovia city councilman, chairman of the Foothill Private Industry Council, and Bill Bruce, director of training and job development for the city of Los Angeles.

Gentlemen, your written testimony, will be entered into the record in their entirety. We would like to ask you to summarize your testimony, and to try to limit it to 5 minutes. With that, Mr. Bloom, would you liko to proceed?

STATEMENT OF ROBERT BLOOM, EXECUTIVE DIRECTOR,
ALAMEDA COUNTY PRIVATE INDUSTRY COUNCIL

Mr. BLOOM. Good morning, Mr. Chairman and members of the subcommittee.

This morning I'm here representing the Alameda County Private Industry Council in my capacity as executive director of this agency. This morning I have been asked to give an introductory overview to you of the JTPA implementation from the perspective of the local administrator, and in so doing I have chosen in my testimony to take a look back at the five original goals that were established for the Federal Jobs Training Act and to give my perspective from the local administrative view as to how those five have been implemented within the State of California.

So I'll quickly run through what my comments include in the written testimony. I have chosen to take what I call the high road today by stressing kind of an evenhanded presentation of what have been the successes as well as what have been some of the problems that we've encountered along the lines of these five initial intentions of the Federal Jobs Training Partnership Act.

First of all, we all know this was a major attempt at block granting programs to the States to increase the role of Governors, and to decrease the role of the Federal Administration in overseeing these programs.

In my estimation, this transition has taken longer than I think many have anticipated, at least in the State of California, and in that regard the State jobs training council has, I think, taken a longer period of time in developing its role to oversee the program. The State legislature has become actively involved, as Senator Greene indicated earlier this morning, in certain legislation that accompanies the Federal Jobs Training Program, and to many's surprise the Federal withdrawal from the system came quickly,