12:31 PM 18 Mar 1999
| from: |
Melinda D. Haskins |
| to: |
.Andrea, Anil, Anne E., Barbara, Barry, Barry T., Bruce N. Reed, Carole, Cynthia A. Rice, David E., David J., Elena Kagan, Gail S., Harry E. Moran, Jack A. Smalligan, James J. Jukes, janet e. irwin, Janet R. Forsgren, Jeffrey A. Farkas, Larry R. Matlack, Mark E., Maureen H., Melissa N., Michele, Natasha F., Peter, Richard B., Robert G., Rosalyn J. Rettman |
Attached below are the Department of Labor's draft legislative language
for and summary of the welfare-to-work grant extension proposal. Please
provide me with comments no later than 10 a.m., Monday, March 22nd.
EXOP: You will not receive a faxed copy of this LRM.
---------------------- Forwarded by Melinda D. Haskins/OMB/EOP on 03/18/99
11:55 AM ---------------------------
LRM ID: MDHll
ATTACHMENTS (total 14 printed pages) :
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
Washington, D.C. 20503-0001
Thursday, March 18, 1999
LEGISLATIVE REFERRAL MEMORANDUM
TO: Legislative Liaison Officer - See Distribution below
FROM: Janet R. Forsgren (for) Assistant Director for Legislative
Reference
OMB CONTACT: Melinda D. Haskins
PHONE: (202)395-3923 FAX: (202)395-6148
SUBJECT: LABOR Draft Bill on Welfare-To-Work Grant Extension
DEADLINE: 10 a.m. Monday, March 22, 1999
In accordance with OMB Circular A-19, OMB requests the views of your
agency on the above subject before advising on its relationship to the
program of the President. Please advise us if this item will affect
direct spending or receipts for purposes of the "Pay-As-You-Go" provisions
of Title XIII of the Omnibus Budget Reconciliation Act of 1990.
COMMENTS: Please review the attached Department of Labor draft legislative
language and descriptors.
THIS DEADLINE IS FIRM. IF WE DO NOT HEAR FROM. YOU BY THE COMMENT
DEADLINE, WE WILL ASSUME THAT YOU HAVE NO OBJECTION.
DISTRIBUTION LIST
AGENCIES:
7-AGRICULTURE - Marvin Shapiro (LRMs & EBs) - (202) 720-1516
54-HOUSING & URBAN DEVELOPMENT - Allen I. Polsby - (202) 708-1793
71-National Council on Disability - Andrew Imparato - (202) 272-2112
110-Social Security Administration - Judy Chesser - (202) 358-6030
52-HHS - Sondra S. Wallace - (202) 690-7760
59-INTERIOR - Jane Lyder - (202) 208-4371
61-JUSTICE - Dennis Burke - (202) 514-2141
118-TREASURY - Richard S. Carro - (202) 622-0650
117 & 340-TRANSPORTATION - Tom Herlihy - (202) 366-4687
EOP:
Bruce N. Reed
Elena Kagan
Barbara Chow
Barry White
Jack A. Smalligan
Anil Kakani
Michele Ahern
Larry R. Matlack
. Maureen H. Walsh
Carole Kitti
Richard B. Bavier
Gail S. zimmerman
Harry E. Moran
Natasha F. Bilimoria
Cynthia A. Rice
Andrea Kane
Robert G. Damus
Rosalyn J. Rettman
Peter Rundlet
James J. Jukes
Janet R. Forsgren
Melissa N. Benton
David J. Haun
David E. Tornquist
Janet E. Irwin
Barry T. Clendenin
Mark E. Miller
Jeffrey A. Farkas
Anne E. Tumlinson
LRM ID: MDHll SUBJECT: LABOR Draft Bill on Welfare-To-Work Grant
Extension
RESPONSE TO
LEGISLATIVE REFERRAL
MEMORANDUM
If your response to this request for views is short (e.g., concur/no
comment), we prefer that you respond bye-mail or by faxing us this
response sheet. If the response is short and you prefer to call, please
call the branch-wide line shown below (NOT the analyst's line) to leave a
message with a legislative assistant.
You may also respond by:
(1) calling the analyst/attorney's direct line (you will be
connected to voice mail if the analyst does not answer); or
(2) sending us a memo or letter
Please include the LRM number shown above, and the subject shown below.
TO: Melinda D. Haskins Phone: 395-3923 Fax: 395-6148
Office of Management and Budget
Branch-Wide Line (to reach legislative assistant): 395-7362
FROM: (Date)
(Name)
(Agency)
(Telephone)
The following is the response of our agency to your request for views on
the above-captioned subject:
Concur
______ No Objection
______ No Comment
See proposed edits on pages
______ Other:
FAX RETURN of pages, attached to this response sheet===========
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!7Xdd7000' OOOOOOhOOOOOOpOOOO ODRAFT3/17/99000' OOOSTATEMENTINEXPLANATIONOFS
ITLEEOOO' 000THEWELFARETOWORKAMENDMENTSOF1999SubtitleEcontainstheWelfaretoWork
mendmentsof1999.TheseamendmentswouldextendtheWelfaretoWork(WtW)grantprogramthro
ughfiscalyear2000,andincludeseveralchangestoenhancetheprogram. TheWtWprogramwase
nactedaspartoftheBalancedBudgetActof1997toprovideemploymentrelatedservicestoass
istthehardesttoemploywelfarerecipients,andnoncustodialparentsofchildrenonwelfar
e,toobtainandretainunsubsidizedemployment.TheprogramisadministeredbytheDepartme
ntofLaborandtheemploymentrelatedservicesareprovidedthroughtheStateandlocalworkf
orceinvestmentsystemestablishedundertheWorkforceInvestmentActthatprovidesaccess
toemploymentandtrainingservicesforallAmericans, including lowincomeworkers,disloc
atedworkers,andotheradultsandyouth.ThelinkagesbetweentheWtWprogramandthebroader
workforceinvestmentsystem,withthatsystemsattendantinformation,services,andconne
ctionstoemployers,isintendedtomaximizetheopportunitiesforhardtoemployrecipients
andnoncustodialparentstofindandkeepjobs.TheWtWprogramisakeycomponentoftheoveral
lwelfarereformeffort.Whiletherehasbeenadeclineinwelfarecaseloadsoverthelasttwoy
ears,manyoftheindividualsremainingonwelfarearelongtermrecipientswhofacesignific
antbarrierstoemployment.AstimelimitsonTANFassistancebegintotakeeffect,theseindi
vidualsareinparticularneedofthetargetedassistancelinkingthemtothelabormarkettha
ttheWtWprogramprovides. Inaddition, theWtWprogramuniquel yprovidesemploymentrelate
dassistancetononcustodialparentstoenablethemtoincreasetheircontributionstothewe
Ilbeingoftheirchildren.Theseamendmentsappropriate$lbillioninFY2000tocarryoutthe
WtWprogram.Thekeyprinciplesandfeaturesoftheprogramaremaintained,includingthefoc
usonwork,servicetothehardtoemploy,andadministrationthroughtheworkforceinvestmen
tsystem.Theamendmentsalsoincludeanumberofprogrammaticenhancements.First,theamen
dmentssimplifytheeligibilitycriteriaandprovidegreaterflexibilitytoStatesandloca
litiestoprovideassistancetoadditionalcategoriesofhardtoemploywelfarerecipientsa
ndnoncustodialparents.ConcernshavebeenraisedbyStateandlocalofficialsandprogramo
peratorsthatthecurrenteligibilitycriteriaaretoocomptexandnarrow,withtheresultth
atasignificantproportionoftheleastjobreadywelfarerecipientsandnoncustodialparen
tsareexcludedfromparticipation. Specifically, thecurrent lawrequiresthatatleast70p
ercentoffundsmustbeexpendedtoassistparticipantshaveatleasttwoofthreespecifiedba
rrierstoemploymentandthattherecipientorminorchildbealongtermrecipient.Thepropos
edamendmentsprovideforseparateeligibilityrequirementsforrecipientsand ,"* nonc
ustodialparents.Withrespecttorecipients,whileretainingtherequirementforlongterm
recipiency,theamendmentsprovidethattheymustmeetatleastoneratherthantwospecified
barrierstoemployment.Thiswouldprovidegreaterflexibilitytotheprogramwhileassurin
gthat,bycombininglongtermrecipiencywithanadditionalbarriertoemployment,theprogr
amcontinuestofocusonthehardtoemploy. Inaddition, theamen dmentssimplifythefirstspe
cifiedbarriertoemployment,whichcurrentlyrequiresthattherecipienthasfailedtocomp
letesecondaryschoolorobtainaGEDandhaslowskillsinreadingormath.Therehave P
beenmanyreportsthatduetopastpractices,suchassocialpromotion,asignificantnumber
of recipients who have diplomas still havel owbasics kill sandt hoselowskillsareamajorbar
riertoemployment.Therefore,theamendmentsdividethisbarrierintotwoseparatebarrier
sthatallowassistancetorecipientswholackahighschooldiploma (oraGED) orhavereading,
computingormathskillsatorbelowtheBthgradelevel.Theamendmentsalsoaddrecipientsw
ithdisabilitiesandrecipientswhoarehomelesstothecategoriesthatmaybeservedunderth
eWtWprogram.Withrespecttononcustodialparents,thenewcriteriaprovidethattheybeune
mployed,underemployed,orhavingdifficultypayingchildsupportobligations,andthatth
eminorchild,indescendingorderofpreferencefordeterminingwhichnoncustodialparents
toserve,meetthecurrentrequirementsforlongtermrecipiency,areeligiblefororreceivi
ngTANFassistance,havereceivedTANFassistancewithintheprecedingyearbutarenolonger
receivingassistance,orareeligiblefororreceivingFoodStampsorMedicaid.Whileprovid
inggreaterflexibilitytoStatesandlocalities,thesecriteriaeffectivelylinkeligibil
ityforassistancetoboththeneedsofthenoncustodialparentandthechild.Second,theamen
dmentsprovideagreaterfocusonassistancetononcustodialparentstobetterenablesuchpa
rentstocontributechildsupportpaymentsandotherassistancetotheirchildren.Themajor
ityofthechildrenonwelfarelivewithasinglecustodialparentandonlyabout20percentrec
eivechildsupportfromthenoncustodialparent.Thevastmajorityofsuchnoncustodialpare
ntsareeitherunemployedoronlyabletoobtainintermittent, 1 owwageemployment.Assistin
gthesenoncustodialparentsinfindingandkeepingemploymentandincreasingtheirearning
sisthereforecriticaltoenhancingchildsupportpayments.Moreover,increasingthefinan
cial(andemotional)supportfromthenoncustodialparentisessentialtoimprovingthewell
beingofthesechildrenandstrengtheningtheirfamilies.Topromotetheseobjectives,thea
mendmentsprovidethatatleast20percentoftheformulafundsa11ottedtoaStatearetobeuse
dforassistancetononcustodialparents.Thisthresholdmaybemetthroughanycombinationo
nexpendituresunderboththelSpercentStatereserveandthe8Spercentoffundsallocatedto
localareasunderthesubstateformula.TheStateplanistodescribehowtheseprojectswillb
ecoordinated.lfaStatesubmitsawaiverrequestandprovidessufficientjustificationtot
heSecretary,theSecretarymayreduceoreliminatethethreshold.lnaddition,theamendmen
tsadda~importantfeaturetostrengthenthecommitmentofthenoncustodialparentandtheWt
Wprogramtoincreasedchildsupport.Eachnoncustodialparent ,-'* 7XXdXd7
participatingintheprogramistoenterintoanindividualresponsibilityagreementwithth
elocal WtWprogramandtheStatechildsupportagencyunderwhichthenoncustodialparentc
ommitstocooperateintheestablishmentofpaternityandintheestablishmentorappropriat
emodificationofachildsupportorder,tomakeregularpaymentsof childs up port, and top art
icipateinservicesthattheprogramreciprocallycommitstoprovidetoassistthenoncustod
ialparentinfindingandkeepingemployment.Thisagreementmakescleartheexpectationsan
dresponsibilitiesofthepartiesinvolvedandprovidesaframeworkforattainingtheprogra
msobjectives.Third,theamendmentsincreasetheresourcesavailabletolndiantribes.lnd
iancommunitiescontinuetofacespecialchallengestoreducingpoverty.Theamendmentsinc
reasethereserveforgrantstolndiantribesundertheWtWprogramfromthecurrentlpercento
fthetotalto3percent. Inaddition, theamendmentsauthorizeI ndiantribestoapplydirectl
ytotheSecretaryforthecompetitivegrantsawardedbytheSecretarytocarryoutinnovative
WtWprojects.Fourth,theamendmentsfurtherintegratetheWtwprogramwiththeworkforcein
vestmentsystembyprovidingthattheWtWStateplanistobeincludedaspartoftheSyearstrat
egicStateworkforceinvestmentplanthatistobesubmittedundertheWIA.Fifth,theamendme
ntsenhancetheaccessoflocalareastocompetitivegrantfundsbyprovidingthatanyformula
fundsthatarenotallottedtoaStateduetofailuretosubmitaStateplanaretobeusedforcomp
etitivegrants.Undercurrentlaw,aftersubtractingthenationalreserves,7Spercentofap
propriatedfundsareallottedbyformulaand2Spercentareawardedascompetitivegrants.La
styear,primarilyduetotherequirementthatStatesprovidefromStateresourcesaonethird
matchoftheformulagrant,sixStatesdidnotrequestanallotment.However,inthetworounds
ofcompetitivegrants,over1400applicationsweresubmittedseeking$Sbillion,morethanl
Otimestheamountthatwasavailableforthesegrants.lnlightofthesignificantneedforthe
seresources, .theamendmentsprovidethat,ratherthanreturningthesefundstotheTreasur
yasiscurrentlyrequired,unallottedformulafundsaretobeusedtoawardcompetitivegrant
sinthesubsequentyear.Apreferenceinawardingthesefundsistobeprovidedtothoselocala
pplicantsfromStatesthatdidnotreceiveformulagrants.DpD Sixth,theamendmentsass
istinbuildingthecapacityofStatesandlocalareastoeffectivelydesignandimplementWtW
programs.TheamendmentswouldestablishaonepercentreserveofFY2000fundsfortechnical
assistance,whichwouldincludethesharingofinnovativeandpromisingpracticesforaccom
plishingtheprogramsobjectives,suchasstrategiesforeffectivelyservingnoncustodial
parents. Seventh,theamendmentssimplifythefinancialandpa rticipantreportingrequire
mentsfortheWtWprogram.Statesandlocalitieshaveraisedconcernsthatthecurrentstatut
oryreportingrequirementsaretoodetailedandburdensome, and thatthereportsmustbesubm
ittedtoboththeDepartmentofLaborandtheDepartmentofHealthandHumanServices.Theamen
dmentswouldeliminatethecurrentrequirementsprescribedfortheprogramandrequiretheS
ecretaryof ,"* Labortoestablishrequirementsthatareconsistentwiththefinancialan
dparticipantreportingsystemundertheWIA.Thiswouldsimplifytherequirements,further
integratetheWtWprogramwiththeworkforceinvestmentsystem,andunifyprogrammaticrepo
rtingthroughtheSecretaryofLabor.Eighth,theamendmentswouldprovideadditionalperfo
rmancebonusgrantstoWtWStates.Currently,$lOOmillionistobedistributedamongtheStat
esinFY2000basedontheachievementofperformanceoutcomes,includingplacementinemploy
ment,retentioninemployment, andearningsofparticipants, du ringFYs1998and1999.Theam
endmentswouldreserve$70milliontoawardperformancegrantsinFY2001basedontheperform
anceofStatesinFY2000.TheseadditionalgrantsprovideatangibleincentiveforStatestoa
chievepositiveemploymentrelatedoutcomesforWtWparticipants.Finally,theamendments
clarifythatthelocalworkforceinvestmentboardsadministeringtheprogrammayenterinto
contractsorsubgrantswithchildsupportagencies, communitybasedorganizations,faithb
asedorganizations,andotherprivateandpublicentitiesfortheprovisionofservices.Ins
um,theseamendmentswouldreauthorizeandenhancetheWtWprogram.Whileourwelfarereform
effortshaveresultedinsomeimportantearlysuccesses,muchremainstobedone.Enactmento
ftheWelfaretoWorkAmendmentsof1999wouldprovidesignificantopportunitiestothehardt
oemploywelfarerecipientstomakethetransitiontostableemploymentandassistnoncustod
ialparentsinmakingmeaningfulcontributionstotheirchildrenswellbeing.
Hex-Dump Conversion
DRAFT 3/17/99
SUBTITLE E -- WELFARE-TO-WORK AMENDMENTS OF 1999
SECTION 1. SHORT TITLE.
This subtitle may be cited as the "Welfare-to-Work Amendments of 1999".
SEC. 2. APPROPRIATIONS FOR FISCAL YEAR 2000.
(a) IN GENERAL.--Clause (i) of section 403(a)(5)(I) of the Social Security Act (42
U.S.c. 603(a)(5)(I)(i)) is amended by inserting ", and $1,000,000,000 for fiscal year 2000," after
"1999".
(b) COMPETITIVE GRANTS.-- Clause (i) of section 403(a)(5)(B) of the Social Security
Act (42 U.S.C. 603(a)(5)(B)(i)) is amended by striking "and 1999" and inserting ", 1999 and
2000".
SEC. 3. ELIGIBILITY FOR SERVICES.
(a) HARD-TO-EMPLOY RECIPIENTS.-- Clause (ii) of section 403(a)(5)(C) of the
Social Security Act (42 U.S.C. 603(a)(5)(C)(ii)) is amended:
(1) by amending the heading to read "HARD-TO-EMPLOY RECIPIENTS";
(2) in the matter preceding subclause (1), by--
(A) striking "shall expend at least 70 percent of all" and inserting "may
expend",and
(B) striking ", or for the benefit of noncustodial parents of minors whose
custodial parent is such a recipient,";
Hex-Dump Conversion
(3) in the matter preceding sub-subclause (aa) of subclause (I), by--
(A) striking "2" and inserting" 1",
(B) striking "apply" and inserting "applies", and
(C) striking "or the noncustodial parent";
(4) in sub-subclause (aa) of subclause (I), by striking ", and has low skills in
reading or mathematics";
(5) in subclause (I), by adding at the end the following:
"(dd) The individual has English reading, writing, or computing skills at
or below the 8th grade level.
"(ee) The individual is homeless.
"(ff) The individual has a disability."; and
(6) in the matter preceding sub-subclause (aa) of subclause (II) by striking "or
minor child of a noncustodial parent".
(b) NONCUSTODIAL PARENTS.-- Subparagraph (C) of section 403(a)(5) of such Act
(42 U.S.C. 603(a)(5)(C)) is amended--
(1) by redesignating clauses (iii) - (viii) as clauses (iv) - (ix), respectively, and
(2) by adding a new clause (iii) as follows:
"(iii) NONCUSTODIAL PARENTS.-- An entity that operates a project
with funds provided under this paragraph may use the funds to provide assistance
in a form described in clause (i) to noncustodial parents who meet the
requirements of each of the following subclauses:
"(I) At least 1 of the following applies:
2
Hcx-Dump Conversion
"(aa) The noncustodial parent is unemployed.
"(bb) The noncustodial parent is underemployed.
"(cc) The noncustodial parent is having difficulty in paying
child support obligations.
"(II) At least 1 of the following applies to the minor child of the
noncustodial parent (with the following sub-subclauses to be considered
by the entity in descending order of preference with respect to the
determination of the noncustodial parents to be provided assistance under
this paragraph):
"(aa) The minor child meets the requirements of sub-
subclauses (aa) or (bb) of clause (ii) (II), or the custodial parent of .
the minor child meets the requirements of sub-subclause (bb) of
clause (ii)(II).
"(bb) The minor child is eligible for, or is receiving,
assistance under the program funded under this part.
"(cc) The minor child has received assistance under the
program funded under this part within the 12-month period
preceding the date on which the determination under this sub-
subclause is made but no longer receives such assistance.
"(dd) The minor child is eligible for, or is receiving,
assistance under the Food Stamp Act of 1977 or under title
XIX of the Social Security Act.
3
) lex-Dump Conversion
"(III) The noncustodial parent enters into a personal responsibility
agreement with the entity that operates a project with funds provided
under this paragraph and the agency responsible for administering the
State plan under part D not later than 30 days after the noncustodial
parent has been enrolled in the program under this paragraph,or, at the
option of the State, not later than 90 days after such enrollment, and
complies with the terms of such agreement, which at a minimum includes
the following:
"(aa) a commitment by the noncustodial parent to
cooperate, at the earliest practicable opportunity, in the
establishment of the paternity of the minor child, through voluntary
acknowledgement or other establishment procedures, and in the
establishment of a child support order;
"(bb) a commitment by the noncustodial parent to
cooperate in the payment of child support for the minor child,
which may include a modification of an existing support order to
take into account the ability of the noncustodial parent to pay such
support and the participation of such parent in the program under
this paragraph;
"(cc) a commitment by the noncustodial parent to
participate in employment that will allow the noncustodial parent
to make regular child support payments, which may include
4
Jlex-Dump Conversion
temporary employment in community service or work experience
provided under this paragraph to assist in preparation for
unsubsidized employment, and for such parents under the age of
20, may also include completion of high school, a general
equivalency degree, or other education directly related to
employment; and
"(dd) a description of the services to be provided under this
paragraph, and a commitment by the noncustodial parent to
participate in such services, that are designed to assist the
noncustodial parent obtain and retain employment, increase
earnings, and enhance the financial and emotional contributions to
the well-being of the minor child.".
(c) RECIPIENTS WITH CHARACTERISTICS OF LONG-TERM DEPENDENCY-
Clause (iv) of section 403(a)(5)(C) of such Act (42 U.S.c. 603(a)(5)(C)(iv), as redesignated by
subsection (b)(I), is amended by-
(1) striking the dash after "clause (i)",
(2) striking the subclause
