Mr. MARTINEZ. Well, once Larry told me he used to work for me when I was in Sacramento-that all Guichards were related. Patricia Luce, executive director, National Office of Samoan Affairs, Inc., San Francisco, CA. Welcome, and we'll start with George Ortiz. STATEMENT OF GEORGE ORTIZ, PRESIDENT, CALIFORNIA HUMAN DEVELOPMENT CORPORATION, SANTA ROSA, CA Mr. ORTIZ. Thank you, Mr. Chairman, Congressman Hayes, Senator Greene, ladies and gentlemen of the panel. I'm George Ortiz, and I'm here representing three groups today, the California Human Development Corp. It's a large community-based organization implementing CETA, job training, employment and other human services for eligible residents of four Western States-not only here in California. We operate in 32 northern California counties, but also in the States of Oregon, Washington, and Hawaii, and basically we deal with the title IV, section 402 JTPA work there. That's working with migrant and seasonal farm workers. Mr. MARTINEZ. George, let me interrupt you just 1 minute to announce that during this panel, Congressman Hayes has to leave to catch an airplane. So at that particular time with the least disruption we'll excuse him, and thank Mr. Hayes for joining us today. Go ahead, George. Mr. ORTIZ. I'm also representing the task force of the National Commission for Employment Policy, which is basically tracking what is happening presently between the transitions of CETA as an act and the JTPA programs. And also I'm the chairman presently of la Corporativa Campesina de California, which is a statewide federation of nonprofit public entities which implement job training employment service to eligible migrant and seasonal farm workers in California. And I serve, as I mentioned, as chairman of that board of directors. We testified concerning the Job Training Partnership Act's impact and especially its effects in rural areas of our country. If my testimony could be summarized in four words, it would be "Quick fixes don't work." What I mean is that addressing long-term, long-evolving problems of structural unemployment-JTPA short-term narrow-job training programs simply cannot and will not do the kind of skill levels, educational foundations, an attitude required to make possible long-term employment at livable wages for members of America's underclass. To reject that short-term approach to job training as akin to withholding plant food while raising roses-will die and never approach their potential. Most of these estimates in the crop will be effectively lost. You've saved a bit of money, sure-gained is the question. In JTPA, we have a program that in my experience generally does not very well meet the spirit or the letter of its avowed purpose, to prepare youth and unskilled adults for entry into the labor force, because its approach is far, far too narrow and leaves unad dressed a whole range of problems in bureaucratese of barriers to employment that alone or in combination work very well to keep people unemployed. And there's a need to improve JTPA's long-term effectiveness. I offer the following four suggestions, each a response to a specific JTPA problem that I will also delineate. Suggestion No. 1, from job training at a level adequate to address the documented needs. According to the information I have, Mr. Chairman, we are only satisfying about 4 percent of the need. In other words, there's 96 percent of the people out there that are eligible for services that are not receiving them under the present levels of funding from the Federal Government. No. 2, alter the orientation and increase the expertise of JTPAestablished private industry councils to produce a broader vision of what serving the community really needs. What I mean by that is the private sector has 51 percent of the action, that's great. But when they make mistakes on those that are the consumers, or supposedly 49 percent of the action, they're not, the consumers, close enough to holler and scream to tell them about it, so I'd like to see a little more action from the community-based organization. Another ghetto body of groups in our country. More involvement if you will. Suggestion No. 3: Offer training that addresses the many factors beyond skill acquisition that work to keep a person unemployed. As we know, many of the women that are entering the labor force have problems with child care. But in rural communities especially we have tremendous problems w8th transportation. We have a need to focus in on these problems. So, Mr. Chairman, the skill acquisition is but one of the needs that I think are required under my suggestion. And suggestion No. 4, alter JTPA's fiscal and program requirements to better serve those most in need of vocational training and employment. The word has popped up this morning several times about "creaming." The performance standards that are being placed on SDA's, PIC's, et cetera, are actually causing those groups to look for those that are easier to train. Therefore, those that I try to work with, that are much more difficult to train, the monolingual, the less educated, the people that have records, criminal records, etc., and have special problems are the ones that are being left to one side. And those I submit to you are the ones that we should be working with and for, and that's the end of my testimony. [Prepared statement of George Ortiz follows:] PREPARED STATEMENT OF GEORGE L. ORTIZ, PRESIDENT, CALIFORNIA HUMAN DEVELOPMENT Corp., Santa Rosa, CA Representative Martinez, ladies and gentlemen, I am George Ortiz and am here representing three groups: California Human Development Corporation (a large community-based organization implementing JTPA job training/employment_and other human services for eligible residents of four western states), of which I am President; the Practitioners' Task Force of the National Commission for Employment Policy, of which I am a member; and La Cooperativa (a statewide federation of nonprofit and public entities which implement job training/employment services to eligible migrant and seasonal farmworkers in California), for which I serve as Chairperson, Board of Directors. I wish to testify concerning the Job Training Partnership Act's impact, and especially its effect in rural areas of our country. If my testimony could be summarized in four words, they would be: "Quick Fixes Don't Work." What I mean is in addressing long-term, long-evolving problems of structural unemployment, JTPA's short-term, narrow, 12-or-so week job training programs simply cannot and will not produce the kind of skill levels, educational foundations, or attitudes required to make possible long-term employment at liveable wages for members of America's Underclass. To me, JTPA's short-term approach to job training is akin to withholding plant food when raising roses: a few will grow to maturity, but most will die or never approach their potential. Most of the investment in the crop will be effectively lost. You've saved a bit of money, sure, but what has really been gained? In JTPA we have a program that, in my experience, generally does not very well meet either the spirit or the letter of its avowed purpose to "prepare youth and unskilled adults for entry into the labor force . . because its approach is far, far too narrow and leaves unaddressed a whole range of problems ("barriers to employment" in bureaucratese) that, alone or in combination, work very well to keep people unemployed. As a means to improve JTPA's long-term effectiveness, I offer the following four suggestions, each a response to a specific JTPA problem that I will also delineate. Suggestion 1. Fund job training at a level adequate to address the documented need. Suggestion 2. Alter the orientation and increase the expertise of JTPA-established Private Industry Councils to produce a broader vision of what serving the community really means. Suggestion 3. Offer training that addresses the many factors beyond skill acquisition that work to keep a person unemployed. Suggestion 4. Alter JTPA's fiscal and program requirements to better serve those most in need of vocational training and employment. Suggestion 1.-Funding level: It seems evident that one of President Reagan's goals in 1980 was to dramatically reduce funding for federal job training efforts, and he has been eminently successful. Funding is much lower than for the comparable training component of CETA, despite the intervening years having seen the highest unemployment rate since the Great Depression. Even now, with national unemployment hovering around 7%, the job training resources available do not begin to address the need. One study of 57 "service delivery areas" found that JTPA is reaching about 4 percent of the individuals eligible. The problem is especially acute in rural areas, because JTPA provides no pay nor, in most cases, any stipends for trainees. Enrolling in JTPA can saddle a rural trainee with backbreaking costs for such things as transportation, child daycare, and basic subsistence. Even though "needs-based payments" are made available by many service delivery areas, they tend to fall in the range of $20-$30 per week, making it nearly impossible for a poor person to remain in training and improve her/his employment status. Suggestion 2.-Alter PIC orientation and increase its expertise: Besides serving eligible farmworkers under JTPA Section 402, California Human Development Corporation and other members of La Cooperativa also work with local service delivery areas to develop and implement employment training programs for the general rural disadvantaged population. This experience leads us to several related concerns about the impact of local PICs on the training/employment needs of rural people. The tone and focus of federal job training efforts have been changed-and not, I submit, to the benefit of either those most in need of training or of the community as a whole. This orientation differs markedly from my reading of the purpose of the Act to "establish programs to prepare youth and unskilled adults for entry into the labor force and to afford job training to those economically disadvantaged individuals and other individuals facing serious barriers to employment, who are in special need of such training to obtain productive employment.' Why can't the PICS establish programs which further this purpose and meet the participant's needs? My experience is that PICs generally lack sufficient knowledge of JTPA and of the entire social spectrum of their communities. Few business people, for example, have an in-depth understanding about high school dropouts who lack the basic education skills required to compete in a tight labor market. Successful business leaders are, I submit, sometimes distanced from poor people and cannot be expected to know how such folks live or what they need, so PIC resources too frequently serve people who are easiest to train and place in jobs for which they might have already been competitive without PIC training. In the training/employ with child care. especially we have tremendo have a need to focus in Fill acquisition is but one of th Stunk are required under my suggestion. And sugges SATPA'S Teal and program requirements to bette in need of vocational training and employment. To word has popped up this morning several times BUA, PICs, et cetera, are actually causing those groups wenting The performance standards that are being pl Jan Stunt are easier to train. Therefore, those that I with WILL, luat are much more difficult to train, the monol educated, the people that have records, criminal and have special problems are the ones that are being mg with and for, and that's the end of my testimony. PREPARED STATEMENT OF GEORGE L. ORTIZ, PRESIDENT, CALIFORNIA HUM community-based organization implementing JTPA job training/employme representing three groups: California Human Development Corporation a Representative Martinez, ladies and gentlemen, I am George Ortiz and a other human services for eligible residents of four western states), of whic ment Policy, of which I am a member, SA operativa (a statewide feder President; the Practitioners' Task Force of the National Commission for A and an equremena iz beter serve those sed of vocating an empty mem ion 1-Fring lever s evident that me of President Reagan gas in 1981 was a dramatically ading for federal jo zannę are and he has been eminently successing is much lower than for the sumparate rating components of CETA he intervening peane neving seen the inghes menployment rate since the pression. Even 10 V1 ma memptynent tovering around 1%. the ing resources available at no begin to address the need. One study of 5T delivery arear" found that MPA is reaching acou 4 percent of the individ bie. The procien a empenally are in rural area because JUPA provides 10r, in most cases any spends for treness Broũng in JTPA can saddle a ainee with backreacing usa ir sung a transportation, child dayd basic subsistence Even though need-based payments" are made availmany service delivery areas they tend to fall in the range of $20-$30 per naking it nearly impossible for a poor person to remain in training and imter/his employment status estion 2-Alter PC trectation and increase its expertise: Les serving edge armeries under JTPA Section 412 California Human oment Corporation and other members of La Cooperativa also work with ervice delivery areas to develop and implement employment training profor the general rural disadvantaged population. This experience leads us to 4 related concerne about the impact of local PICs on the training employment of rural people tone and focus of federal job training efforts have been changed-and not. I t, to the benefit of either those most in need of training or of the community hole. This orientation differs markedly from my reading of the purpose of the "establish programs to prepare youth and unskilled adults for entry into the force and to afford job training to those economically disadvantaged individ and other individuals facing serious barriers to employment, who are in special of such training to obtain productive employment. y can't the PICs establish programs which further this purpose and meet the cipant's needs? My experience is that PICs generally lack sufficient knowledge TPA and of the entire social spectrum of their communities. 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