NEW DIRECTIONS IN EMPLOYMENT AND TRAINING POLICY: A FEDERAL PERSPECTIVE

The U.S. Department of Labor's "Work Force 2000" project has identified long-term trends that will affect future employment and training policy. These include demographic trends such as a decline in the pool of young labor market entrants and an increase in women, minority, and immigrant workers; the continued shift from goods-producing industries to the service sector; and continued technological innovation in response to increased international competition. These projected changes in the labor market and workplace present a national challenge and an opportunity to tackle the longstanding problems of disadvantaged workers. Cooperative public and private programs to eliminate illiteracy and increase job skills and competencies, ease labor mobility and provide retraining, and attack underlying social problems that support the cycle of welfare dependency and unemployment are needed to provide the workforce America needs for the future.     

ECONOMIC MOTIVES FOR "SOCIAL" PROGRAMS: THE NEW FEDERAL DIRECTION

The Job Training Partnership Act (JTPA), passed by Congress in 1982, is significant federal employment and training legislation for a number of reasons. Most noticeably, it substantially enhanced private sector and state government roles in the administration of such programs. In order to understand both the programmatic impact of JTPA and its likely consequences on subsequent federal employment and training initiatives, it is necessary to look at the politics of the legislation-especially those interests that are strongly represented through its implementation and those that are not. By doing this, one obtains a better sense of the dimensions of conflict around future employment and training legislation. General guidelines within which Congress should act in subsequent legislative activity are laid out.     

Local labor markets and local area effects on welfare duration

The Survey of Income and Program Participation (SIPP) has become an important tool for studying how long people stay on welfare programs because it has monthly data on a variety of welfare programs. This article presents estimates of duration models for unmarried women with children who are on the Aid to Families with Dependent Children program (AFDC) using the 1984 and 1985 panels of SIPP. A weakness in previous welfare duration studies is that they do not include local labor market conditions or other local area effects; this omission may bias the estimated effects of policy variables (such as benefit levels) and labor market variables. This article incorporates relevant local area information from the City County Data Book and links this to SIPP welfare recipients based on county of residence. I find that local variables such as unemployment rates or per capita sales affect welfare exit rates, especially for blacks. Living in an urban area lengthens welfare spells for both whites and blacks.     

Employer-centered training for international competitiveness: Lessons from state programs

There has been a surge of new interest in federal training policy. This momentum has been fueled by concerns with productivity and competitiveness, whereas past federal policy has been more focused upon distributional issues. A wide range of new proposals have been put forth, and high on the list are initiatives to work directly with firms. As making employers the clients of training programs is a relatively new idea, there is very little past federal experience to draw upon. However, in recent years states have experimented with similar efforts, and these experiments provide an underused data source for assessing the traps and opportunities inherent in any national program. This paper reports the results of case studies in four states, two of which based employer-centered training in new state agencies and two of which housed the programs in community colleges. We identify issues of concern that arise in employer-based training programs and also suggest some possible solutions.     

Do intergovernmental grants create ratchets in state and local taxes?

A large literature on the ‘flypaper effect’ examines how federal grants to states at time period t affect state spending (or taxes) at time period t. We explore the fundamentally different question of how federal grants at time period t affect state tax policy in the future. Federal grants often result in states creating new programs and hiring new employees, and when the federal funding is discontinued, these new state programs must either be discontinued or financed through increases in state own source taxes. Government programs tend to be difficult to cut, as goes Milton Friedman’s famous quote about nothing being as permanent as a temporary government program, suggesting that it is likely that temporary federal grants create permanent (future) ratchets in state taxes. Far from being purely an academic question, this argument is why South Carolina’s Governor Mark Sanford attempted to turn down federal stimulus monies for his state. We examine both the impact of federal grants on future state budgets and how federal and state grants affect future local government budgets. Our findings confirm that grants indeed result in future state and local tax increases of roughly 40 cents for every dollar in grant money received in prior years.     

The Obama Administration and PBB: Building on the Legacy of Federal Performance‐Informed Budgeting?

The administration of President Barack Obama, like those of his immediate predecessors, is focused on trying to improve the quality of, and use of, performance data. The federal government has been pursuing performance‐informed budget reforms for more than 50 years. Most recently, the Bush administration reforms included the President’s Management Agenda and the Program Assessment Rating Tool (PART). The Obama administration reforms include: measuring the effects of the American Recovery and Reinvestment Act; reducing or eliminating poorly‐performing programs; setting a limited number of short‐term, high‐priority performance goals; and funding detailed program evaluations. The administration is taking a more agency‐driven approach than the Bush administration, but continues to find it challenging to move beyond production of performance data to its use. There should be opportunities to show how performance information can be used for decision making, given the change in the political climate and the needs to reduce spending and the deficit. Historically, there has been little appetite in the Congress for evidence‐based decision making. The administration, however, can continue to demonstrate how federal agencies can use performance information to more effectively manage programs.     

Work Sharing Policy: Power Sharing and Stalemate in American Federalism

Work sharing benefits are partial unemployment benefits, andfederal policy related to them is in an administrative muddle.A lack of leadership by the federal government has stalled stateimplementation. During economic downturns when political voltageis high, policy makers look to work sharing as one way to managejob loss. Conversely, work sharing is often forgotten duringprosperous times. This article describes how federalism sometimesfacilitates state initiation of work sharing policy and at othertimes impedes it. The authors discuss work sharing through sixpolicy phases during a thirty-year era of devolving federalauthority to states for employment services and job training,and they make observations about the stalemate in federal policy.     

THE NEXT DECADE: THE ECONOMIC, POLITICAL, AND SOCIAL CONTEXT OF EMPLOYMENT AND TRAINING POLICIES

The conservative challenge of the Reagan administration has not produced a full-scale reversal of the liberal policies and social programs developed by earlier administrations and seems unlikely to do so now. Nevertheless, the continuities in American social and political history, the changed economic and fiscal circumstances of the current era, and growing public appreciation of the limits of federal action and of institutional capabilities are likely to effect a reduction in the level of federal spending for social programs in the foreseeable future and force the states to assume larger fiscal and programmatic roles. Implications for future employment and training policies include continued decentralization, a shift in focus away from training new entrants to retraining mid-career workers, and greater emphasis on meeting cost-effectiveness tests as program goals seek to promote economic efficiency rather than social objectives.     

New Matching Requirements for Housing Programs: Intergovernmental Conflict and the National Affordable Housing Act of 1990

This article describes the surprisingly diverse matching requirements for new federal housing programs that were introduced by the National Affordable Housing Act of 1990 and analyzes their development through the political compromise of the federal legislative process. It explains how the matching requirements reflect the divergent interests of the federal government and state and local governments in the policy outcomes of the new programs.     

Challenges confronting nonprofit housing organizations’ self‐sufficiency programs

Abstract

In recent years, interest has grown at the federal level in strategies to combine subsidized housing with programs promoting household self‐sufficiency. This article explores how nonprofit housing organizations conceptualize their self‐sufficiency programs for their residents. A broad definition of self‐sufficiency is presented—one that is not exclusively focused on the individual and, instead, also includes program strategies that are focused on changing the context in which individuals live and work.

The paper then analyzes the relationship between the self‐sufficiency strategies being implemented in the nonprofit housing world and how these organizations will be affected by welfare reform, the shrinking and restructuring of federally subsidized housing, the emergence of block grant job training and workforce development programs, and the general devolution of government programs into ever more fungible pots at state and local levels. These transformations in the domestic policy agenda will present challenges to nonprofit housing organizations and to the goal of promoting self‐sufficiency.     

Budgetary Consequences of Selling Federal Power Assets

This article reports on an analysis of the long-term budgetary effects of selling federal power programs at market value. The analysis looks at changes in future budgetary receipts and costs for power operations and at changes in future federal taxes as a result of new ownership. Under current rate-setting policy, federal agencies must generate a future operating surplus (and hence, budgetary income) worth about $46 billion in today's dollars to repay past capital investments. With optimistic assumptions about rising power rates, market values for all federal power assets (including the power-generation assets of the Bureau of Reclamation and the Corps of Engineers) could be as high as $62 billion. In that case, their sale would produce long-term budgetary savings of about $16 billion, in today's dollars. The analysis also notes that budgetary savings are not a measure of the gains in economic efficiency from privatization. Such considerations as efficiency or fairness to particular groups will be important in any debate about the future of federal power programs.     

The Family Support Act of 1988: Federalism, Developmental Policy, and Welfare Reform

Revising the usual distinction between developmental and redistributivepolicies, I suggest that state and federal governments eachseek programs they believe will help them gain their developmentalgoals. But there is little consensus on the types of welfareprograms that actually do create economic development. Stateand federal participants in welfare reform consequently promotethe kind of federal arrangements that are likely to producethe policies they favor. The developmental politics of the FamilySupport Act of 1988 are shown through five main reform issues:child support; national minimum benefits; transitional benefits;welfare for families having both parents present; and education,training, and employment programs.     

Guest workers or unauthorized immigrants? The case of forest workers in the United States

This study examines regional differences in the legal status of forest workers in the Pacific Northwest and Southeastern United States, using United States Department of Labor data and qualitative fieldwork in Alabama and Oregon. The authors find that there are significantly fewer H-2B guest workers on federal lands in Oregon than on privately owned forest plantations in Alabama, and the Southeast more generally. By contrast, numerous workers on federal lands in Oregon are undocumented. This difference may largely be explained by variations in the economies of scale in forest work in the Pacific Northwest (federal lands) and the Southeast (mainly private lands). The study also finds that there is no real difference in the working conditions of undocumented immigrants and guest workers—both groups face labor exploitation. Guest workers in the forest industry, many of whom have no previous work experience or access to social networks in the United States, face extreme isolation at worksites, are beholden to contractors, fear losing their jobs if they complain, and are generally unaware of their basic rights. By contrast, many undocumented forest workers in Oregon belong to established social networks through which they are recruited onto forest labor crews. However, unauthorized workers are also vulnerable to labor exploitation because they fear deportation and are obliged to their kin-employers. Policy recommendations to improve labor conditions and enforce existing labor laws for all forest workers include: better tracking of workers across states to monitor labor abuses, allocating more resources to state labor departments to facilitate worker outreach and worksite inspections, and better communication among land management officials and the Department of Labor.

Adult Education Policy in Sweden, 1967–1991

To choose 1967 as the point of departure may seem strange, as Sweden has had a long and important tradition of adult education dating back to the breakthrough of the popular movements at the end of the 19th century. However, it was not until the 1960s that adult education became central to Swedish educational and labor market policies. This article analyzes the directions government policy took on adult education during these five periods with regard to context, reform ideology and strategies, and, where possible, outcomes. However, to provide a comprehensive account of Swedish adult education strategy, one has to include labor market training policy, which affects an important part of the adult education populace, although the former under the jurisdiction of the ministry of labor, not the ministry of education. The analyses starts with a general overview of labor market training that, in contrast to adult education, has remained rather unchanged during the period between 1967 and 1991.     

Market forces and private sector processes in government policy: The job training partnership act

This article examines those provisions of the Job Training Partnership Act designed to introduce the presumed efficiency of marketlike forces and incentives into federal employment and training programs. First, the JTPA replaced the administrative system used in earlier training programs (which emphasized detailed federal control and monitoring of the programs at the local level) with a system that, in effect, set a price for a prescribed level of performance and reduced oversight of the training process. Second, the Act gave people in private business some control over programs at the local level. According to available data, JTPA program performance is no different in local areas with a strong private-sector involvement than in areas where that involvement is weak and passive. The performance standards have had an effect, although the relationship between the standards and the goals of the JTPA is ambiguous at best. The article outlines the limitations of a market-oriented system for the administration of public policy.     

The Pending Revolution in Federal Accounting Standards

Accounting standards constitute the body of guidance needed to provide coherence and direction to accountants on how to keep the books. They inform the accountant about the logic of the way that accounting data should be organized and displayed in order to maximize its value to the prospective user. (The prospective users, in the case of federal accounting, range from the president and Congress through agency managers to the general public.) Federal accounting standards are the equivalent, for accounting, of budget concepts for the federal budget. After a long genesis, federal accounting standards are in the midst of a revolution which, if it succeeds, will transform the way accounting reports on federal fiscal activities and how it relates to the federal budget. This article, written from the perspective of a budget concepts technician who has participated in this effort, reviews these developments and where they seem to be heading.     

EMPLOYMENT AND TRAINING POLICY AND AMERICAN IDEAS: OLD PROBLEMS AND EMERGING PROGRAMS

The federal government has, relative to other areas of social welfare program activity, been especially slow in the development of employment and training policy. The reasons for this can be found in terms of an understanding of the most basic American political and economic ideas. The history of federal initiatives in employment and training policy is traced briefly and the impact of certain American political ideas on this pattern of development is analyzed. Particular attention is given to the issues of coordinating of employment and training programs and the increased role of the state and private sector in designing and managing such programs. It is suggested that in light of certain historic American political patterns, there might be costs to moving in commonly sought after ways that are not readily evident.     

Toward more valid evaluations of training programs serving the disadvantaged

The author challenges the widespread assumption that the wage effects of federal training programs are reliable and unbiased estimates of productivity effects and social benefits. Evidence is presented that the reputations of government training programs are unreliable and that employers stigmatize those eligible for Targeted Jobs Tax Credit and Comprehensive Employment and Training Act on-the-job training contracts. Graduates of classroom training programs which are known to be funded by the Job Training Partnership Act are likely to be similarly stigmatized. TJTC eligibles are seriously underpaid by employers and job training partnership act graduates may experience a similar fate. Consequently, the true effect of JTPA on the productivity of disadvantaged workers may be considerably larger than its effect on wages. The author describes alternative methods of obtaining estimates of productivity effects of training programs.     

Is ABCM Destined for Success or Failure in the Federal Government?

The days of ballooning federal budgets are over. Today, both the president and Congress continue to strive for a balanced budget, while encouraging federal agencies to improve service delivery of the various programs and entitlement benefits provided to their customers. Stakeholder involvement and public opinion about how agencies run their "businesses" are increasingly scrutinized. Trends such as competition for service delivery through franchizing, privatization, and outsourcing are causing an entirely new way of looking at how support and program services are managed. This article explains how the success or failure of activity-based costing management (ABCM) is dependent upon its ability to link the resolution of these external factors with internal business needs, while providing government managers with a better understanding of how to use ABCM to steer their organizations into the future. We also describe the current and future status of ABCM installations at various federal entities where ABCM was recently introduced and where interviews, conducted a year ago, were updated to describe how ABCM is helping these entities align external factors to internal needs. These federal entities are the Immigration and Naturalization Service, the Financial Management Service, and the Veterans Benefits Administration.     

Trends in training public managers: A report on a commonwealth seminar

This article reports on a conference on issues and trends in training practicing public managers. Some trends identified include: greater competition between civil service colleges and outside providers of training; university programs that compete in this market being based in business schools or autonomous units, rather than in traditional political science departments; a convergence among training providers on the use of adult education methodology; elite training programs now playing a larger role in training the entire public service; and some civil service training institutes simultaneously identifying more closely with strategic government priorities and developing a research role comparable to the university.