5:41 PM 23 Apr 1999
| from: |
James J. Jukes |
| to: |
HUD LRM, aimparato, .Andrea, Barbara, Barry, Brian S., Bruce N. Reed, Cynthia A. Rice, Daniel I., Daniel J., dot.legislation, Elena Kagan, Elizabeth, Jack A. Smalligan, James J. Jukes, Janet R. Forsgren, Jeffrey A. Farkas, justice.lrm, Kakani, Larry R. Matlack, Lisa, llr, Lori, lrm, Mark E., Maureen H., Melinda D. Haskins, Michele, ocl, Peter, Richard B., Robert G., Rosalyn J. Rettman, Sandra, ssa.lrm, vince.ancell |
Please direct any comments on the attached testimony (roughly 16 pages) to
Melinda Haskins by 1:00 Monday. Thank you.
EOP addressees will not receive a paper copy of this document.
- fathersf.2
---------------------- Forwarded by James J. Jukes/OMB/EOP on 04/23/99
05:33 PM ---------------------------
LRM ID: MDH60
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
Washington, D.C. 20503-0001
Friday, April 23, 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 Testimony on LABOR Draft Bill on Welfare-To-Work
Grant Extension
DEADLINE: 1 P.M. Monday, April 26, 1999
In accordance with OMB Circular A-19, OMB requests the views of your
agency on the above subject befqre ad~ising 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: Attached is the DOL (Uhalde) testimony for the Tuesday, April
27th, HWM hearing on "fatherhood intiatives."
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
Richard B. Bavier
Cynthia A. Rice
Andrea Kane
Robert G. Damus
Rosalyn J. Rettman
Peter Rundlet
James J. Jukes
Janet R. Forsgren
Mark E. Miller
Jeffrey A. Farkas
Daniel I. Werfel
Daniel J. Chenok
Lori Schack
Brian S. Mason
Lisa Zweig
Sandra Yamin
Elizabeth Gore
LRM ID: MDH60 SUBJECT: LABOR Testimony on 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===========
ATT CREATION TIME/DATE: 0 00:00:00.00
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DRAFT 4/23/99
TESTIMONY OF RAYMOND 1. UHALDE
DEPUTY ASSIST ANT SECRETARY OF LABOR
FOR EMPLOYMENT AND TRAINING
BEFORE THE
SUBCOMMITTEE ON HUMAN RESOURCES
THE COMMITTEE ON WAYS AND MEANS
UNITED STATES HOUSE OF REPRESENTATIVES
April 27, 1999
Madam Chainnan and Members of the Subcommittee:
Thank you for the opportunity to appear before you today to discuss fatherhood and the
Administration's Welfare-to-Work reauthorization proposal. Fatherhood is an issue that has
been important to me for a long time, both in a personal and professional sense. For welfare
refonn to succeed, Secretary Hennan recognized early on that only a part of the job is to promote
work among welfare recipients. We must also strengthen families. The well-being and life
success of children on welfare requires that we find ways to bring fathers back into their
children's lives. This means, at least, financial support of their children. But it also means the
emotional, nurturing and coaching support that fathers should provide to their children.
Single parents need help to achieve long-tenn self-sufficiency. Fathers who are absent
from the home are an untapped resource for helping to provide this help, and here I am referring
to far more than their financial contributions.
Welfare to Work Program
The Welfare to Work program is a current initiative that serves non-custodial parents.
The Welfare to Work program was enacted as part of the Balanced Budget Act of 1997 to
provide employment-related services to assist the hardest-to-employ welfare recipients, and
noncustodial parents of children on welfare, to obtain and retain unsubsidized employment. The
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program is administered by the Department of Labor and the employment-related services are
provided through the State and local workforce investment system established under the
Workforce Investment Act, which provides access to employment and training services for all
Americans, including low-income workers, dislocated workers, and other adults and youth. The
linkages between the Welfare to Work program and the broader workforce investment system,
with that system's information, services, and connections to employers, is intended to maximize
the opportunities for hard-to-employ recipients and noncustodial parents to find and keep jobs.
The Welfare to Work program is a key component of the overall welfare reform effort.
While there has been a significant decline in welfare caseloads, many of the individuals
remaining on welfare are long-term recipients who face significant barriers to employment. As
time limits on TANF assistance begin to take effect, these individuals are in particular need of
targeted services linking them to the labor market that the Welfare to Work program provides.
In addition, the Welfare to Work program provides employment-related services to noncustodial
parents to enable them to increase their contributions to the well-being of their children.
Demographic and Economic Characteristics
As background, I would like to share with you a demographic profile oflow-income
non-custodial fathers. In 1990 the Survey of Income and Program Participation indicated that
there were 3.4 million noncustodial fathers with incomes below 200 percent of poverty. These
are men who are in the prime of their working lives with little or no work history and who are
lacking the skills and education to succeed in a technologically advanced and competitive labor
market which demands skilled workers. Even in today's vigorous economy, with the lowest
unemployment rate and the fewest people on welfare in decades, these men face severe barriers
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to stable jobs with rising wages.
While 43% of these men ranged in age from 25 to 34, only 16% are under 25. Most of
the men either worked less than full-time (39%), or were absent from the labor force or
unemployed (29%). Less than a third of the men worked full time year round. Statistics paint a
portrait of men with sporadic and part-time work, living on the margins of society, unable to
support families. When they do work their.wages are low, averaging slightly better than the
current minimum wage. These fathers have scarce financial resources to support themselves and
their children.
The labor market problems of poor noncustodial fathers are compounded by a lack of
education credentials; approximately 43% of them are high school dropouts. The labor market
in the United States has gone through rapid technological changes in the last 25 years. Most
jobs now require more social, cognitive and technical skills than in the past. This is an era of
deteriorating labor market prospects for individuals with limited skills and education. The past
two decades have brought real declines in the wages for such individuals.
The poor labor market prospects of these men affect families and neighborhoods. At
least three fourths of these fathers have been arrested or have on going legal problems. And 46%
of them have been convicted of a crime. Research indicates that once a young man has been
incarcerated, his employment and earnings are substantially reduced for many years to come and
if you are in jail you are not likely to be supporting your family.
Many low income noncustodial fathers live in central cities that are distant both
physically and psychologically from the jobs in the suburbs. Discrimination in employment may
also complicate the employment prospects for minority noncustodial fathers. Noncustodial
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fathers are disproportionately minority; 38% are African-American and 19% are Hispanic. Over
half of these fathers have never married the mothers of their children. The numbers are daunting,
almost two million minority men live apart from their children and are not working full time,
year round.
Noncustodial parents also lack access to social networks that can be critical in locating
employment. A large fraction of jobs is filled by informal recruitment among employers who
seek referrals from their current employees and other acquaintances. Many noncustodial fathers
are not a part of these social networks, which can greatly enhance employment prospects.
Department of Labor Demonstration Projects
The Department of Labor has had a long-standing interest in improving the employment
and earnings of low income fathers. We have participated in two demonstration projects focused
on young unwed fathers or non-custodial parents: the Public Private Ventures Young Unwed
Fathers Demonstration and the Parent's Fair Share Demonstration. We are now participating in
the Partners for Fragile Families Demonstration through our Welfare to Work competitive grants
program.
Improving the employment prospects oflow income noncustodial fathers is difficult, as
we learned from the Parents' Fair Share Demonstration. The evaluation of the Parents' Fair
Share Demonstration found that child support payments were increased through programmatic
intervention. These payments came mostly from men who were already working but not paying
child support before participating in the program. This was encouraging news. The
discouraging finding was that the fathers participating in the Parents' Fair Share Demonstration
did not improve their employment and eamings. Unfortunately, the original program design for
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the Parents' Fair Share Demonstration, which included an intensive high support on-the-job
training model, was never implemented. This was, in part, due to operational difficulties
between the child support and employment and training systems, and, in part, due to reluctance
of employers to participate. Recent changes in the workforce and child support systems, and the
improved economy, would likely enhance the prospects for successfully implementing the high
support on-the-job-training model.
There is evidence from evaluations of employment and training programs that job training
can be effective in serving highly at-risk youth likely to be unwed fathers. The JOBSTART
demonstration attempted to replicate the successes of Job Corps in serving severely
disadvantaged high school dropouts in less intensive nonresidential settings. The Center for
Employment Training (CET) site in the JOBSTART evaluation was 50 percent male, and this
site raised the earnings of participants by $3,000 a year over the control group, during the last
two years ofa four year follow-up. The JOBSTART demonstration overall raised the earnings
of males with prior arrest records by $1,500 during the last year offollow up. In addition, the
National lTP A Study also found positive results for adult males receiving services under lTP A.
On-the-job training seemed particularly effective in assisting men, resulting in earnings gains of
over $2,500 over the follow-up period.
The Welfare to Work Grants Program is making a sizeable investment in the future
economic well being of non-custodial individuals and their families. Expected dividends
include reduced child support arrearage and welfare dependency, and an increase in tax paying
individuals capable of supporting their families.
We are trying to use the Welfare to Work grants to fund a range of activities that are
6 Hex-Dump Conversion
designed to move low income fathers into jobs, with an emphasis on jobs that have the potential
for increased earnings. The Welfare to Work funds can be used broadly for employment-related
activities including: wage subsidies in the public or private sector; on-the-job training; job
readiness; job placement services; post-employment services; job vouchers for job readiness;
placement or post placement services; community service or work experience; job retention
services and supportive services.
The Department of Labor announced round 1 Welfare to Work competitive grant awards
on May 27, 1998; 8 of 51 grants had a substantial focus on serving noncustodial parents. Most
of these grants planned for at least 25% of program participants to be noncustodial parents, and
two planned to serve exclusively noncustodial parents. Of these, five projects had specific
services and strategies targeted to the needs and barriers facing noncustodial parents. These
services included legal services to help participants be more attractive to employers, peer support
groups, emphasis on life skills, integrity and family responsibility, and outreach and recruitment
through the courts system. Two of these grants planned to build on past experience in serving
hard-to-employ groups such as the homeless and disabled individuals in providing supported
work environments for noncustodial parents.
Round 2 Welfare to Work competitive grants were awarded in November 1998; 12 of 75
competitive grants proposed to serve at least 30% noncustodial parents. Two of these proposed
to serve exclusively noncustodial parents. These grants total just over $39 million awarded by
the Department to meet the needs of noncustodial parents. In reviewing Round Two grants
oriented towards serving noncustodial parents, 'certain themes in service strategies became
apparent. These grant proposals tended to emphasize:
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1) commitment to family and fatherhood, combined with parenting skills training;
2) job readiness, stressing positive attitudinal change (workplace behavior,
employer expectations, dress, interpersonal skills, interviewing skills, job search
techniques, coping with stress, anger management, etc);
3) service to address barriers associated with substance abuse and criminal record;
4) intensive job retention and supportive services including case management,
coaching, and peer support activities; and
5) strategies to recruit noncustodial parents, especially working with the court system
and child support enforcement agencies.
The Department plans to announce Round 3 Competitive Grants in late summer 1999.
This round identified noncustodial parents as one of five targeted populations. Proposals
serving this population are eligible for 10 bonus points in round 3.
Some examples of what Welfare to Work grants are funding for fathers include:
Institute for Responsible Fathers
The Institute for Responsible Fatherhood and Family Revitalization, located in
Washington, D.C., provides direct services to low income, non-custodial fathers. The
program's goal is to "recapture" the responsible father figure and bring him back into the family
structure to provide leadership, economic and social support, love and nurturing. Services
provided include: technology management and communication, employer connection, a "people
to jobs" transportation network, car donations and repairs and automotive training.
Los Angeles County Private Industry Council
Los Angeles County's Noncustodial Parent to Work (NCPtW) Project will assist
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long-tenn TANF recipients end their welfare dependency by increasing child support payments
from 1,625 noncustodial parents ofTANF supported children. To do so, the project plans to
help unemployed noncustodial parents find unsubsidized employment, and help underemployed
noncustodial parents increase their earnings -- enabling them to pay more child support.
Innovative features of this project include developing both parents' capacity to financially
support their children; bringing together a wide range of public and private agencies; addressing
noncustodial parents' legal issues; providing noncustodial parents with access to infonnation
concerning child support; and providing peer support groups to work to change noncustodial
parents' attitudes about child support and child rearing.
DeKalb Economic Opportunity Authority
This project will be conducted as an integral part of the DeKalb Workforce Center, which
is the county's state-of-the-art One-Stop center. The program will be tied into the County's
network of five Family Resource Centers, three public housing sites and two Head Start/Family
Development Centers. These centers will be important for recruiting and are 'located in
DeKalb's most impoverished communities.
A range of services will be provided to assist non-custodial parents in retaining
employment and supporting their children. This project is an example of how One-Stop centers
can be utilized to provide services. The specific services include: assessment (including
commitment to responsible fatherhood); substance abuse treatment; legal assistance; job
readiness and work maturity (including attitude and behavioral issues, workp lace behavior,
employer expectations, dress, interpersonal skills, anger management, interviewing skills, job
search techniques, and coping with stress); parenting skills; case management and job coaching;
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9
post-placement training (including literacy and GED preparation, occupational skills training);
ongoing transitional support (peer support, job clubs, and case management).
City of Minneapolis
The Fostering Actions To Help Earning and Responsibility (FATHER) Program focuses
on achieving self-sufficiency for noncustodial fathers in Northside, Camden, Phillips, Central
and Powderhorn, Minnesota. The program is an innovative attempt to integrate both family and
employment services for noncustodial fathers. Participants will have access to job counselors, a
database of job openings and transportation that will help individuals from the city reach jobs in
the suburbs. Additionally, child support enforcement officials will work to create a flexible
child support payment plan and encourage fathers to develop and maintain strong emotional
bonds with their children.
Private Industry Council of Milwaukee County
Welfare to Work Milwaukee is a collaborative project of the Private Industry Council of
Milwaukee County and the five local agencies responsible for the implementation of Wisconsin
Works in the county's six regions. The project addresses the long-term needs of participants,
including noncustodial parents whose legal problems combined with poor academic and work
skills bar them from sustained employment. The project uses community-based vendors and
performance based contracts. Legal services are provided in addition to job placement and post
employment services.
Houston Works
Houston Works is the workforce development entity for the City of Houston and is a
collaborating with the Houston Community College System, Texas Southern University,
10 Hex-Dump Conversion
Southwest Memorial Hospital, Continental Airlines, SEARCH Homeless project, HUD, Baylor
College of Medicine and the Houston Housing Authority. Participants receive job readiness
counseling; temporary and permanent job placement services, post-employment and academic
enrichment services. Participants also receive life skills, case management and family based
assistance and counseling, including medical services and transportation services.
Eastern Workforce Development Board Inc, Muskogee, Oklahoma
This project will expand and supplement the Welfare to Work formula program, targeting
non-custodial parents. It will develop an intensive job retention and employer incentive
program. The project uses a case management approach and leverages resources from other
training programs to serve children and other family members of participants. The program
plans to establish an independent Employee Assistance Program for employers to help retain new
workers.
Lessons Learned
Based on our experience to date with the Welfare to Work program, and previous
demonstrations, research and programs, I believe there are certain principles that should govern
our approach to serving noncustodial fathers. We have attempted to incorporate these principles
into our Welfare to Work reauthorization proposal, which I will discuss in a moment.
Improving the employment and earnings of noncustodial fathers is a precondition for
substantially raising the resources they provide to their families. This requires
interventions that address the many labor market problems and barriers these fathers face,
as well as turnover and upward mobility problems. Thus, a wide range of services and
approaches are important.
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11
Early intervention and a fonnal commitment of the noncustodial parent are important.
Fathers who feel that they do not have anything to contribute to the family often do not
stay connected to their family. We know that early intervention is crucial to establishing
paternity, to helping men assume responsibility for their children and to increasing access
and visitation. The most promising strategy to assist low income noncustodial fathers in
becoming better parents and productive workers is to intervene early with a broad array of
employment services and interventions that are designed to promote family and job
stability. Such interventions must help these fathers accept the responsibility and
obligation of supporting their children.
We have a window of opportunity right now, since labor markets are very tight and
employers are seeking new sources of workers. The poor skills and criminal records that
many poor fathers bring to the labor market are major disincentives to employers hiring
them under the usual circumstances. However, many employers are experiencing high
job vacancy rates and report difficulties finding workers. Many employers seem more
open to hiring those with disadvantages. This is clearly true for welfare recipients and is
likely true for low-income fathers.
Appropriate work-focused employment services are essential. It is important to develop
a range of services that combine work and skill building. Experience indicates that
non-custodial fathers want income producing employment quickly. On-the-job training
is a particularly effective strategy for this group of workers. Further attention needs to be
given to developing an enhanced on-the-job training strategy for non-custodial fathers.
Post-employment services that are sustained over a period of time are important. Most
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noncustodial fathers work sporadically or part-time and few have full-time employment
on a year round basis. Post employment services are critical to help the fathers keep
their jobs and increase their wages.
Programs need to stress improvements in parenting skills, support for partnering, peer
support, and the like. It appears that fathers benefit from services focused on conflict
resolution, parent-child relationships, and information about the child support system.
Partnerships between the workforce investment system and the child support system are
beneficial. It is important to build local partnerships to support fathers. If programs are
to increase employment and increase child support, close collaboration between the
workforce development agency, the community based providers, and the child support
system is necessary.
Providing increased employment services to non-custodial fathers is essential to
reducing poverty among children. Chronically unemployed, under employed and uneducated
fathers with criminal records, substance abuse or other such problems, living apart from their
children and the mothers of those children, are unlikely to be able to assume the responsibility of
a nurturing and supportive parent. To assume such responsibility requires stable employment,
which in tum requires skill development, accompanied by the supportive and family services
necessary to succeed in the labor market and society.
The Welfare to Work Amendments of 1999
These lessons and others we have learned from the first two years of the WeI fare to Work
experience are the basis for the bill introduced by Representative Cardin last week as H.R. 1482,
the Welfare to Work Amendments of 1999. These amendments reflect the Administration's
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proposal and are intended to maintain the focus of the Welfare to Work program on the
hardest-to-serve welfare recipients, while expanding employment opportunities to help
low-income fathers better support their children.
The primary features ofthe program are retained -- including the focus on work, targeting
resources to individuals and communities with the greatest need, and administration through the
locally administered, business-led workforce investment system. There are several important
enhancements to the current law.
First, the amendments simplify the eligibility criteria and provide greater flexibility to
States and localities to provide services to additional categories of hard-to-employ welfare
recipients and noncustodial parents. Concerns have been raised by State and local officials and
program operators that the current eligibility criteria are too complex and narrow, with the result
that a significant proportion of the least job ready welfare recipients and noncustodial parents are
excluded from participation. Specifically, the current law requires that at least 70 percent of
funds must be expended to assist participants who have at least two of three specified barriers to
employment and that the recipient or minor child be a long-tenn recipient.
The proposed amendments provide for separate eligibility requirements for recipients and
noncustodial parents. With respect to recipients, while retaining the requirement for long-tenn
recipiency, the amendments provide that they must meet at least one rather than two speci fied
barriers to employment. In addition, the amendments simplify the first specified barrier to
employment, which currently requires that the recipient has failed to complete secondary school
or obtain aGED and has low skills in reading or math. There have been many reports that due to
past practices, such as social promotion, a significant number of recipients who have diplomas
Automated Records Management System
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still have low basic skills and those low skills are a major barrier to employment. Therefore, the
amendments divide these criteria into two separate barriers that allow assistance to recipients
who lack a high school diploma (or aGED) or have reading, computing or math skills at or
below the 8th grade level. The amendments also add recipients with disabilities, recipients who
are homeless, and recipients who are victims of domestic violence to the categories of recipients
with employment barriers who may be served under the Welfare to Work program.
With respect to noncustodial parents, the new criteria provide that they be unemployed,
underemployed, or having difficulty paying child support obligations, and that the minor child of
the noncustodial parent meets the current requirements for long-term recipiency, is eligible for or
receiving T ANF benefits, has received TANF benefits within the preceding year but is no longer
receiving benefits, or is eligible for or receiving Food Stamps, Supplemental Security Income or
Medicaid. In determining the eligible noncustodial parents to be served, a preference is to be
provided for those parents with minor children who are long-term recipients. While providing
greater flexibility to States and localities, these criteria effectively link eligibility for services to
both the needs of the noncustodial parent and the child.
Second, the amendments provide a greater focus on services to noncustodial parentsto
better enable such parents to contribute child support payments and other assistance to their
children. To promote these objectives, the amendments provide that at least 20 percent of the
formula funds allotted to a State are to be used to serve noncustodial parents. This threshold may
be met through any combination of expenditures under both the 15 percent State reserve and the
85 percent offunds allocated to local areas under the substate formula. The State plan is to
describe how these projects will be coordinated to accomplish this result. If a State submits a
AuffimolQd Records Management System
Wex,Dump Conversion
15
waiver request and provides sufficient justification to the Secretary, the Secretary may reduce or
eliminate the threshold. However, it is expected that waivers would only be granted under
unusual circumstances, with the elimination of any threshold unlikely to be approved.
In addition, the amendments add an important feature to strengthen the commitment of
the noncustodial parent and the Welfare to Work program to increased child support. Each
noncustodial parent participating in the program is to enter into an individual responsibility
contract with the local Welfare to Work program and the State child support agency under which
the noncustodial parent commits to cooperate in the establishment of paternity and in the
establishment or appropriate modification of a child support order, to make regular payments of
child support, and to participate in services that the program reciprocally commits to provide to
assist the noncustodial parent in finding and keeping employment. While the custodial parent
would be encouraged to cooperate in these efforts, in order to protect such parents and their
children who may be at risk of domestic violence, the amendments would provide that the
Welfare to Work program may not require their cooperation. This contract makes clear the
expectations and responsibilities of the parties involved and provides a framework for attaining
the program's objectives.
By expanding eligibility, providing a 20 percent spending floor, and incorporating
personal responsibility contracts, these amendments would build on the existing program to
ensure the establishment of an infrastructure in each local area for providing effective services to
noncustodial parents. The amended program incorporates the previously described lessons
learned in serving this population.
In addition, the Welfare to Work Amendments of 1999 would enhance current law by:
Automated Records Management System
16 Hex-Dump Conversion
Increasing resources to Indian tribes from the current 1 percent of the total to 3 percent,
and authorizing Indian tribes to apply directly to the Department of Labor for Welfare to
Work Competitive Grants.
Improving resource allocation by recapturing unallotted formula funds for competitive
grants in the subsequent year, and providing a preference in awarding these funds to those
local applicants and Indian tribes from States that did not receive formula grants.
Streamlining reporting requirements through the Department of Labor.
Promoting best practices by reserving funds for technical assistance, including
disseminating innovative strategies for serving noncustodial parents.
In sum, these amendments would reauthorize and enhance the WtW program. While our
welfare reform efforts have resulted in some important early successes, much remains to be done.
Enactment of the W elfare-to-Work Amendments of 1999 would provide significant opportunities
to the hard-to-employ welfare recipients to make the transition to stable employment and assist
noncustodial parents in making meaningful contributions to their children's well-being.
Madam Chairman, this concludes my formal testimony. We need to work together in a
bipartisan manner to help the hardest-to-serve welfare recipients, noncustodial fathers, and their
children. I look forward to working with you and other members of the Subcommittee on this
important subject.
s :Iaprldp Idltesti man Ifathers f.2
5:41 PM 23 Apr 1999
| from: |
James J. Jukes |
| to: |
HUD LRM, aimparato, .Andrea, Anil, Barbara, Barry, Brian S., Bruce N. Reed, Cynthia A. Rice, Daniel I., Daniel J., dot.legislation, Elena Kagan, Elizabeth, Jack A. Smalligan, James J. Jukes, Janet R. Forsgren, Jeffrey A. Farkas, justice.lrm, Larry R. Matlack, Lisa, llr, Lori, lrm, Mark E., Maureen H., Melinda D. Haskins, Michele, ocl, Peter, Richard B., Robert G., Rosalyn J. Rettman, Sandra, ssa.lrm, vince.ancell |
Please direct any comments on the attached testimony (roughly 16 pages) to
Melinda Haskins by 1:00 Monday. Thank you.
EOP addressees will not receive a paper copy of this document.
"
- fathersf.2
---------------------- Forwarded by James J. Jukes/OMB/EOP on 04/23/99
05:33 PM ---------------------------
LRM ID: MDH60
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT. AND BUDGET
Washington, D.C. 20503-0001
Friday, April 23, 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 Testimony on LABOR Draft Bill on Welfare-To-Work
Grant Extension
DEADLINE: 1 P.M. Monday, April 26, 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: Attached is the DOL (Uhalde) testimony for the Tuesday, April
27th, HWM hearing on "fatherhood intiatives."
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
Richard B. Bavier
Cynthia A. Rice
Andrea Kane
I
Robert G. Damus
Rosalyn J. Rettman
Peter Rundlet
James J. Jukes
Janet R. Forsgren
Mark E.. Miller
Jeffrey A. Farkas
Daniel I. Werfel
Daniel J. Chenok
Lori Schack
Brian S. Mason
Lisa Zweig
Sandra yamin
Elizabeth Gore
LRM ID: MDH60 SUBJECT: LABOR Testimony on 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:
0'
Page 5 of 5
FAX RETURN of ______ pages, attached to this response sheet===========
ATT CREATION TIME/DATE: 0 00:00:00.00
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The following is a HEX DUMP:
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985E06B448166COF2D50D312E8A9845CC574856F71512EA7A358A48C89E22904898B4D7B681C7D
Hex-Duilip Conversion
DRAFT 4/23/99
TESTIMONY OF RAYMOND 1. UHALDE
DEPUTY ASSISTANT SECRETARY OF LABOR
FOR EMPLOYMENT AND TRAINING
BEFORE THE
SUBCOMMITTEE ON HUMAN RESOURCES
THE COMMITTEE ON WAYS AND MEANS
UNITED STATES HOUSE OF REPRESENTATIVES
April 27, 1999
Madam Chainnan and Members of the Subcommittee:
Thank you for the opportunity to appear before you today to discuss fatherhood and the
Administration's Welfare-to-Work reauthorization proposaL Fatherhood is an issue that has
been important to me for a long time, both in a personal and professional sense. For welfare
refonn to succeed, Secretary Hennan recognized early on that only a part of the job is to promote
work among welfare recipients. We must also strengthen families. The well-being and life
success of children on welfare requires that we find ways to bring fathers back into their
children's lives. This means, at least, financial support of their children. But it also means the
emotional, nurturing and coaching support that fathers should provide to their children.
Single parents need help to achieve long-tenn self-sufficiency. Fathers who are absent
from the home are an untapped resource for helping to provide this help, and here I am referring
to far more than their financial contributions.
Welfare to Work Program
The Welfare to Work program is a current initiative that serves non-custodial parents.
The Welfare to Work program was enacted as part of the Balanced Budget Act of 1997 to
provide employment-related services to assist the hardest-to-employ welfare recipients, and
noncustodial parents of children on welfare, to obtain and retain unsubsidized employment. The
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program is administered by the Department of Labor and the employment-related services are
provided through the State and local workforce investment system established under the
Workforce Investment Act, which provides access to employment and training services for all
Americans, including low-income workers, dislocated workers, and other adults and youth. The
linkages between the Welfare to Work program and the broader workforce investment system,
with that system's information, services, and connections to employers, is intended to maximize
the opportunities for hard-to-employ recipients and noncustodial parents to find and keep jobs.
The Welfare to Work program is a key component of the overall welfare reform effort.
While there has been a significant decline in welfare caseloads, many of the individuals
remaining on welfare are long-term recipients who face significant barriers to employment. As
time limits on T ANF assistance begin to take effect, these individuals are in particular need of
targeted services linking them to the labor market that the Welfare to Work program provides.
In addition, the Welfare to Work program provides employment-related services to noncustodial
parents to enable them to increase their contributions to the well-being of their children.
Demographic and Economic Characteristics
As background, I would like to share with you a demographic profile oflow-income
non-custodial fathers. In 1990 the Survey of Income and Program Participation indicated that
there were 3.4 million noncustodial fathers with incomes below 200 percent of poverty. These
are men who are in the prime of their working lives with little or no work history and who are
lacking the skills and education to succeed in a technologically advanced and competitive labor
market which demands skilled workers. Even in today's vigorous economy, with the lowest
unemployment rate and the fewest people on welfare in decades, these men face severe barriers
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to stable jobs with rising wages.
While 43% of these men ranged in age from 25 to 34, only 16% are under 25. Most of
the men either worked less than full-time (39%), or were absent from the labor force or
unemployed (29%). Less than a third of the men worked full time year round. Statistics paint a
portrait of men with sporadic and part-time work, living on the margins of society, unable to
support families. When they do work their wages are low, averaging slightly better than the
current minimum wage. These fathers have scarce financial resources to support themselves and
their children.
The labor market problems of poor noncustodial fathers are compounded by a lack of
education credentials; approximately 43% of them are high school dropouts. The labor market
in the United States has gone through rapid technological changes in the last 25 years. Most
jobs now require more social, cognitive and technical skills than in the past. This is an era of
deteriorating labor market prospects for individuals with limited skills and education. The past
two decades have brought real declines in the wages for such individuals.
The poor labor market prospects of these men affect families and neighborhoods. At
least three fourths of these fathers have been arrested or have on going legal problems. And 46%
of them have been convicted of a crime. Research indicates that once a young man has been
incarcerated, his employment and earnings are substantially reduced for many years to come and
if you are in jail you are not likely to be supporting your family.
Many low income noncustodial fathers live in central cities that are distant both
physically and psychologically from the jobs in the suburbs. Discrimination in employment may
also complicate the employment prospects for minority noncustodial fathers. Noncustodial
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fathers are disproportionately minority; 38% are African-American and 19% are Hispanic_ Over
half of these fathers have never married the mothers of their children. The numbers are daunting,
almost two million minority men live apart from their children and are not working full time,
year round.
Noncustodial parents also lack access to social networks that can be critical in locating
employment. A large fraction of jobs is filled by informal recruitment among employers who
seek referrals from their current employees and other acquaintances. Many noncustodial fathers
are not a part of these social networks, which can greatly enhance employment prospects.
Department of Labor Demonstration Projects
The Department of Labor has had a long-standing interest in improving the employment
and earnings of low income fathers. We have participated in two demonstration projects focused
on young unwed fathers or non-custodial parents:' the Public Private Ventures Young Unwed
Fathers Demonstration and the Parent's Fair Share Demonstration. We are now participating in
the Partners for Fragile Families Demonstration through our Welfare to Work competitive grants
program.
Improving the employment prospects oflow income noncustodial fathers is difficult, as
we learned from the Parents' Fair Share Demonstration. The evaluation of the Parents' Fair
Share Demonstration found that child support payments were increased through programmatic
intervention. These payments came mostly from men who were already working but not paying
child support before participating in the program. This was encouraging news. The
discouraging finding was that the fathers participating in the Parents' Fair Share Demonstration
did not improve their employment and earnings. Unfortunately, the original program design for
Hex-DuiTIp Conva:-~ion
5
the Parents' Fair Share Demonstration, which included an intensive high support on-the-job
training model, was never implemented_ This was, in part, due to operational difficulties
between the child support and employment and training systems, and, in part, due to reluctance
of employers to participate. Recent changes in the workforce and child support systems, and the
improved economy, would likely enhance the prospects for successfully implementing the high
support on-the-job-training model.
There is evidence from evaluations of employment and training programs that job training
can be effective in serving highly at-risk youth likely to be unwed fathers. The JOBSTART
demonstration attempted to replicate the successes of Job Corps in serving severely
disadvantaged high school dropouts in less intensive nonresidential settings. The Center for
Employment Training (CET) site in the JOBSTART evaluation was 50 percent male, and this
site raised the earnings of participants by $3,000 a year over the control group, during the last
two years of a four year follow-up. The JOBSTART demonstration overall raised the earnings
of males with prior arrest records by $1,500 during the last year of follow up. In addition, the
National JTP A Study also found positive results for adult males receiving services under JTP A.
On-the-job training seemed particularly effective in assisting men, resulting in earnings gains of
over $2,500 over the follow-up period.
The Welfare to Work Grants Program is making a sizeable investment in the future
economic well being of non-custodial individuals and their families. Expected dividends
include reduced child support arrearage and welfare dependency, and an increase in tax paying
individuals capable of supporting their families.
We are trying to use the Welfare to Work grants to fund a range of activities that are
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6
designed to move low income fathers into jobs, with an emphasis onjobs that have the potential
for increased earnings. The Welfare to Work funds can be used broadly for employment-related
activities including: wage subsidies in the public or private sector; on-the-job training; job
readiness; job placement services; post-employment services; job vouchers for job readiness;
placement or post placement services; community service or work experience; job retention
services and supportive services.
The Department of Labor announced round 1 Welfare to Work competitive grant awards
on May 27, 1998; 8 of 51 grants had a substantial focus on serving noncustodial parents. Most
of these grants planned for at least 25% of program participants to be noncustodial parents, and
two planned to serve exclusively noncustodial parents. Of these, five projects had specific
services and strategies targeted to the needs and barriers facing noncustodial parents. These
services included legal services to help participants be more attractive to employers, peer support
groups, emphasis on life skills, integrity and family responsibility, and outreach and recruitment
through the courts system. Two of these grants planned to build on past experience in serving
hard-to-employ groups such as the homeless and disabled individuals in providing supported
work environmerits for noncustodial parents.
Round 2 Welfare to Work competitive grants were awarded in November 1998; 12 of75
competitive grants proposed to serve at least 30% noncustodial parents. Two of these proposed
to serve exclusively noncustodial parents. These grants total just over $39 million awarded by
the Department to meet the needs of noncustodial parents. In reviewing Round Two grants
oriented towards serving noncustodial parents, certain themes in service strategies became
apparent. These grant proposals tended to emphasize:
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7
1) commitment to family and fatherhood, combined with parenting skills training;
2) job readiness, stressing positive attitudinal change (workplace behavior,
employer expectations, dress, interpersonal skills, interviewing skills, job search
techniques, coping with stress, anger management, etc);
3) service to address barriers associated with substance abuse and criminal record;
4) intensive job retention and supportive services including case management,
coaching, and peer support activities; and
5) strategies to recruit noncustodial parents, especially working with the court system
and child support enforcement agencies.
The Department plans to announce Round 3 Competitive Grants in late summer 1999.
This round identified noncustodial parents as one of five targeted popUlations. Proposals
serving this population are eligible for 10 bonus points in round 3.
Some examples of what Welfare to Work grants are funding for fathers include:
Institute for Responsible Fathers
The Institute for Responsible Fatherhood and Family Revitalization, located in
Washington, D.C., provides direct services to low income, non-custodial fathers. The
program's goal is to "recapture" the responsible father figure and bring him back into the family
structure to provide leadership, economic and social support, love and nurturing. Services
provided include: technology management and communication, employer connection, a "people
to jobs" transportation network, car donations and repairs and automotive training.
Los Angeles County Private Industry Council
Los Angeles County's Noncustodial Parent to Work (NCPtW) Project will assist
n"'x- O'ump vonVer:;iOil em
w
A vs
8
long-term T ANF recipients end their welfare dependency by increasing child support payments
from 1,625 noncustodial parents ofTANF supported children. To do so, the project plans to
help unemployed noncustodial parents find unsubsidized employment, and help underemployed
noncustodial parents increase their earnings -- enabling them to pay more child support.
Innovative features of this project include developing both parents' capacity to financially
support their children; bringing together a wide range of public and private agencies; addressing
noncustodial parents' legal issues; providing noncustodial parents with access to information
concerning child support; and providing peer support groups to work to change noncustodial
parents' attitudes about child support and child rearing.
DeKalb Economic Opportunity Authority
This project will be conducted as an integral part of the DeKalb Workforce Center, which
is the county's state-of-the-art One-Stop center. The program will be tied into the County's
network of five Family Resource Centers, three public housing sites and two Head StartlFamily
Development Centers. These centers will be important for recruiting and are located in
DeKalb's most impoverished communities.
A range of services will be provided to assist non-custodial parents in retaining
employment and supporting their children. This project is an example of how One-Stop centers
can be utilized to provide services. The specific services include: assessment (including
commitment to responsible fatherhood); substance abuse treatment; legal assistance; job
readiness and work maturity (including attitude and behavioral issues, workplace behavior,
employer expectations, dress, interpersonal skills, anger management, interviewing skills, job
search techniques, and coping with stress); parenting skills; case management and job coaching;
Hex-Dump Conver~ion
9
post-placement training (including literacy and GED preparation, occupational skills training);
ongoing transitional support (peer support, job clubs, and case management).
City of Minneapolis
The Fostering Actions To Help Earning and Responsibility (FATHER) Program focuses
on achieving self-sufficiency for noncustodial fathers in Northside, Camden, Phillips, Central
and Powderhorn, Minnesota. The program is an innovative attempt to integrate both family and
employment services for noncustodial fathers. Participants will have access to job counselors, a
database of job openings and transportation that will help individuals from the city reach jobs in
the suburbs. Additionally, child support enforcement officials will work to create a flexible
child support payment plan and encourage fathers to develop and maintain strong emotional
bonds with their children.
Private Industry Council of Milwaukee County
Welfare to Work Milwaukee is a collaborative project of the Private Industry Council of
Milwaukee County and the five local agencies responsible for the implementation of Wisconsin
Works in the county's six regions. The project addresses the long-term needs of participants,
including noncustodial parents whose legal problems combined with poor academic and work
skills bar them from sustained employment. The project uses community-based vendors and
performance based contracts. Legal services are provided in addition to job placement and post
employment services.
Houston Works
Houston Works is the workforce development entity for the City of Houston and is a
collaborating with the Houston Community College System, Texas Southern University,
Hex-Dump Convemion
lO
Southwest Memorial Hospital, Continental Airlines, SEARCH Homeless project, HUD, Baylor
College of Medicine and the Houston Housing Authority. Participants receive job readiness
counseling; temporary and permanent job placement services, post-employment and academic
enrichment services. Participants also receive life skills, case management and family based
assistance and counseling, including medical services and transportation services.
Eastern Workforce Development Board Inc, Muskogee, Oklahoma
This project will expand and supplement the Welfare to Work formula program, targeting
non-custodial parents. It will develop an intensive job retention and employer incentive
program. The project uses a case management approach and leverages resources from other
training programs to serve children and other family members of participants. The program
plans to establish an independent Employee Assistance Program for employers to help retain new
workers.
Lessons Learned
Based on our experience to date with the Welfare to Work program, and previous
demonstrations, research and programs, I believe there are certain principles that should govern
our approach to serving noncustodial fathers. We have attempted to incorporate these principles
into our Welfare to Work reauthorization proposal, which I will discuss in a moment.
Improving the employment and earnings of noncustodial fathers is a precondition for
substantially raising the resources they provide to their families. This requires
interventions that address the many labor market problems and barriers these fathers face,
as well as turnover and upward mobility problems. Thus, a wide range of services and
approaches are important.
Automated Records Management System
Hex-DiJmp Conver~iOi1
11
Early intervention and a fonnal commitment of the noncustodial parent are important.
Fathers who feel that they do not have anything to contribute to the family often do not
stay connected to their family. We know that early intervention is crucial to establishing
paternity, to helping men assume responsibility for their children and to increasing access
and visitation. The most promising strategy to assist low income noncustodial fathers in
becoming better parents and productive workers is to intervene early with a broad array of
employment services and interventions that are designed to promote family and job
stability. Such interventions must help these fathers accept the responsibility and
obligation of supporting their children.
We have a window of opportunity right now, since labor markets are very tight and
employers are seeking new sources of workers. The poor skills and criminal records that
many poor fathers bring to the labor market are major disincentives to employers hiring
them under the usual circumstances. However, many employers are experiencing high
job vacancy rates and report difficulties finding workers. Many employers seem more
open to hiring those with disadvantages. This is clearly true for welfare recipients and is
likely true for low-income fathers.
Appropriate work-focused employment services are essential. It is important to develop
a range of services that combine work and skill building. Experience indicates that
non-custodial fathers want income producing employment quickly. On-the-job training
is a particularly effective strategy for this group of workers. Further attention needs to be
given to developing an enhanced on-the-job training strategy for non-custodial fathers.
Post-employment services that are sustained over a period of time are important. Most
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12
noncustodial fathers work sporadically or part-time and few have full-time employment
on a year round basis. Post employment services are critical to help the fathers keep
their jobs and increase their wages.
Programs need to stress improvements in parenting skills, support for partnering, peer
support, and the like. It appears that fathers benefit from services focused on conflict
resolution, parent-child relationships, and information about the child support system.
Partnerships between the workforce investment system and the child support system are
beneficial. It is important to build local partnerships to support fathers. If programs are
to increase employment and increase child support, close collaboration between the
workforce development agency, the community based providers, and the child support
system is necessary.
Providing increased employment services to non-custodial fathers is essential to
reducing poverty among children. Chronically unemployed, under employed and uneducated
fathers with criminal records, substance abuse or other su~h problems, living apart from their
children and the mothers of those children, are unlikely to be able to assume the responsibility of
a nurturing and supportive parent. To assume such responsibility requires stable employment,
which in tum requires skill development, accompanied by the supportive and family services
necessary to succeed in the labor market and society.
The Welfare to Work Amendments of 1999
These lessons and others we have learned from the first two years of the Welfare to Work
experience are the basis for the bill introduced by Representative Cardin last week as H.R. 1482,
the We1fare to Work Amendments of 1999. These amendments reflect the Administration's
Hex-Dump Conv(;:-~ion
13
proposal and are intended to maintain the focus of the Welfare to Work program on the
hardest-to-serve welfare recipients, while expanding employment opportunities to help
low-income fathers better support their children.
The primary features of the program are retained -- including the focus on work, targeting
resources to individuals and communities with the greatest need, and administration through the
locally administered, business-led workforce investment system. There are several important
enhancements to the current law.
First, the amendments simplify the eligibility criteria and provide greater flexibility to
States and localities to provide services to additional categories of hard-to-employ welfare
recipients and noncustodial parents. Concerns have been raised by State and local officials and
program operators that the current eligibility criteria are too complex and narrow, with the result
that a significant proportion of the least job ready welfare recipients and noncustodial parents are
excluded from participation. Specifically, the current law requires that at least 70 percent of
funds must be expended to assist participants who have at least two of three specified barriers to
employment and that the recipient or minor child be a long-term recipient.
The proposed amendments provide for separate eligibility requirements for recipients and
noncustodial parents. With respect to recipients, while retaining the requirement for long-term
recipiency, the amendments provide that they must meet at least one rather than two specified
barriers to employment. In addition, the amendments simplify the first specified barrier to
employment, which currently requires that the recipient has failed to complete secondary school
or obtain aGED and has low skills in reading or math. There have been many reports that due to
past practices, such as social promotion, a significant number of recipients who have diplomas
Automated Records Management System
Hex-Dump Cunver~iofl
14
still have low basic skills and those low skills are a major barrier to employment. Therefore, the
amendments divide these criteria into two separate barriers that allow assistance to recipients
who lack a high school diploma (or a OED) or have reading, computing or math skills at or
below the 8th grade level. The amendments also add recipients with disabilities, recipients who
are homeless, and recipients who are victims of domestic violence to the categories of recipients
with employment barriers who may be served under the Welfare to Work program.
With respect to noncustodial parents, the new criteria provide that they be unemployed,
underemployed, or having difficulty paying child support obligations, and that the minor child of
the noncustodial parent meets the current requirements for long-term recipiency, is eligible for or
receiving T ANF benefits, has received T ANF benefits within the preceding year but is no longer
receiving benefits, or is eligible for or receiving Food Stamps, Supplemental Security Income or
Medicaid. In determining the eligible noncustodial parents to be served, a preference is to be
provided for those parents with minor children who are long-term recipients. While providing
greater flexibility to States and localities, these criteria effectively link eligibility for services to
both the needs of the noncustodial parent and the child.
Second, the amendments provide a greater focus on services to noncustodial parents to
better enable such parents to contribute child support payments and other assistance to their
children. To promote these objectives, the amendments provide that at least 20 percent of the
formula funds allotted to a State are to be used to serve noncustodial parents. This threshold may
be met through any combination of expenditures under both the 15 percent State reserve and the
85 percent of funds allocated to local areas under the substate formula. The State plan is to
describe how these projects will be coordinated to accomplish this result. If a State submits a
Hax-Oump COflVi::;~lOn
15
waiver request and provides sufficient justification to the Secretary, the Secretary may reduce or
eliminate the threshold. However, it is expected that waivers would only be granted under
unusual circumstances, with the elimination of any threshold unlikely to be approved.
In addition, the amendments add an important feature to strengthen the commitment of
the noncustodial parent and the Welfare to Work program to increased child support. Each
noncustodial parent participating in the program is to enter into an individual responsibility
contract with the local Welfare to Work program and the State child support agency under which
the noncustodial parent commits to cooperate in the establishment of paternity and in the
establishment or appropriate modification of a child support order, to make regular payments of
child support, and to participate in services that the program reciprocally commits to provide to
assist the noncustodial parent in finding and keeping employment. While the custodial parent
would be encouraged to cooperate in these efforts, in order to protect such parents and their
children who may be at risk of domestic violence, the amendments would provide that the
Welfare to Work program may not require their cooperation. This contract makes clear the
expectations and responsibilities of the parties involved and provides a framework for attaining
the program's objectives.
By expanding eligibility, providing a 20 percent spending floor, and incorporating
personal responsibility contracts, these amendments would build on the existing program to
ensure the establishment of an infrastructure in each local area for providing effective services to
noncustodial parents. The amended program incorporates the previously described lessons
learned in serving this population.
In addition, the Welfare to Work Amendments of 1999 would enhance current law by:
Automated Records Management SYstem
Hex-Dump Conve:~ion .
16
Increasing resources to Indian tribes from the current 1 percent of the total to 3 percent,
and authorizing Indian tribes to apply directly to the Department of Labor for Welfare to
Work Competitive Grants.
Improving resource allocation by recapturing unallotted formula funds for competitive
grants in the subsequent year, and providing a preference in awarding these funds to those
local applicants and Indian tribes from States that did not receive formula grants.
Streamlining reporting requirements through the Department of Labor.
Promoting best practices by reserving funds for technical assistance, including
disseminating innovative strategies for serving noncustodial parents.
In sum, these amendments would reauthorize and enhance the WtW program. While our
welfare reform efforts have resulted in some important early successes, much remains to be done.
Enactment of the Welfare-to-Work Amendments of 1999 would provide significant opportunities
to the hard-to-employ welfare recipients to make the transition to stable employment and assist
noncustodial parents in making meaningful contributions to their children's well-being.
Madam Chairman, this concludes my formal testimony. We need to work together in a
bipartisan manner to help the hardest-to-serve welfare recipients, noncustodial fathers, and their
children. I look forward to working with you and other members of the Subcommittee on this
important subject.
s:\opr\dpld\testimon\fathersf.2
