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.     

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.     

IMPLEMENTING PRIVATE SECTOR STRATEGIES IN EMPLOYMENT AND TRAINING PROGRAMS

This paper examines efforts to increase the role of the private sector in employment and job training programs mandated by the Private Sector Initiative Program (PSIP) and the Job Training Partnership Act (JTPA). In particular it will examine whether the emphasis on the private sector participation has led to a greater development of and reliance upon private sector strategies for training and placing the unemployed, as well as an exploration o f the relationship between public and private sector officials involved in program implementation.     

New Federalism Modified: Jobs and Highways in New York

The Job Training Partnership Act of 1982 (JTPA) and the SurfaceTransportation Assistance Act of 1983 (STAA) were intended inpart to stimulate the American economy out of recession. Eachlaw embodied a different approach to that goal and, hence, poseddifferent implementation challenges to the states. JTPA wasintended to decentralize decisionmakingand administration tothe states, and to in volve the private sector in state andlocal decisionmaking processes. Moreover,the level of federalaid was reduced below that available under its predecessor,the Comprehensive Employment and Training Act (CETA). STAA wasintended to inject increased federal funds for rebuilding roadsand highways. Its stipulation that states bring their standardsfor truck dimensions and routes into line with new nationalstandards was a centralizing feature of the legislation. Inexamining responses of the states in 1983 to these laws, particularlyNew York, decentralization appeared to be on track in the earlyimplementation of JTPA. The level of involvement of governorsand, to a lesser extent, legislatures was higher than underCETA. The implementation of STAA revealed both decentralizingand centralizing features at work. Participation of the NewYork legislature in deciding how the increased highway fundswere to be spent was much higher than before STAA, but conflictsbetween the national and state governments over the new nationalstandards were resolved in favor of the national government.     

Thirty Years of Changing Federal, State, and Local Relationships in Employment and Training Programs

There have been three major training programs in the UnitedStates in the past thirty years: the Manpower Development andTraining Act (MDTA)from 1962 to 1973, the Comprehensive Employmentand Training Act (CETA)from 1973 to 1982, and the Job TrainingPartnership Act (JTPA)from 1982 to the present. MDTA was a categoricalprogram, with service providers funded directly by the federalgovernment. CETA was a hybrid block grant program that gavelocal units of government substantial autonomy in administeringthe basic training component, but CETA also includedcategoricalprogramsfor specific target groups and for public service employment.Over time, CETA was increasingly regulated. JTPA is regulatedmore by the states and the private sector, and in 1992 amendmentstargeted the program more sharply and restricted activitiesthat could be undertaken. Federalism in employment and trainingprograms has followed a course similar to other areas, withcooperative federalism ending in 1978 being replaced by coercivefederalism. In recent years, stales have started a number ofinnovative programs.     

Congressional allocation of federal funds: The Job Training Partnership Act of 1982

This paper examines the allocation of federal funds to the fifty states through the Job Training Partnership Act of 1982. Targeted at the economically disadvantaged, its allocation formula nevertheless places heavy weights on unemployment measures unrelated to the target group. Evidence is presented that supports the premise that JTPA formula allocations across states reflect political influence. This is the first study to find evidence of a relationship between state representative legislative tenure and federal fund allocations. The importance of a state's political power in influencing federal fund allocations is also revealed.     

THE PRIVATE SECTOR IN PUBLIC EMPLOYMENT AND TRAINING PROGRAMS

Assimilating disadvantaged workers in labor markets has been the focus of national policy initiatives for at least two decades. In recent years, public policies have been formulated which will not only provide incentives for the private sector to employ the disadvantaged, but also afford the private sector a larger responsibility in formulating and implementing targeted employment programs. The Job Training Partnership Act (JTPA) and Target Jobs Tax Credit (TJTC) are two major examples. This paper initially reviews the public and private employment and training efforts between 1962 and 1982. Considerable attention is given to summarizing and evaluating the performance of these efforts, especially in light of recent program initiatives by the Reagan Administration.     

When the witch doctors agree: The family support act and social science research

In 1986 the author was recruited by Senator Daniel Patrick Moynihan to draft new federal welfare reform legislation for the 100th Congress. The result was the Family Support Act of 1988. From the beginning it was planned that the bill would reflect the best knowledge available about helping poor families make the transition from dependence on welfare to independence and work. In contrast to the experience of the 1970s, when the “Witch Doctors” of social science seemed unable to agree on appropriate policies, research made a difference for FSA. The education, training, and work requirements in the legislation were substantially influenced by the evaluations of welfare-to-work programs conducted by the Manpower Demonstration Research Corporation, and the conduct of MDRC in the dissemination of these results contributed significantly to the effort's political success. Whether this marks a new phase in the connection between social policy and research is uncertain.     

Incremental Thinking: "Congressional Debate on the Budget and Accounting Act of 1921 (Excerpts)"

Editors' Note : The Congressional Budget Act of 1974 was designed to improve the budget-making process of the national legislature. Although this new process has been in use for less than a decade, proposals for a constitutional amendment to limit the budget powers of the federal government are advancing through Congress. In assessing the potential and problems of budget reform, it would be wise to recall the expectations that animated the introduction of presidential budgeting more than 60 years ago. The following excerpts from the October 1919 debate in the House of Representatives on the legislation that ultimately became the Budget and Accounting Act of 1921 have a contemporary ring. The problems are not new, and one wonders whether the solutions are as easy as some claim.     

Implementing the Chief Financial Officers Act and the Government Performance and Results Act in the Federal Government

The Chief Financial Officers Act of 1990 and the Government Performance and Results Act of 1993, along with other legislation passed by Congress, are stimulating major financial management reform in the federal government. This article evaluates reform implementation against nine criteria developed in previous research on this topic. The criteria are accounting system adequacy, congressional intent, ability of Congress to use financial statement data, executive branch implementation incentives, capability of the Office of Management and Budget, utility of financial statements for decision making, use of performance measures in budgeting, coordination of federal organizations charged with implementation responsibility, and executive and congressional support for reform.     

The Impact of Job Training Programs on the Reemployment Probability of Dislocated Workers

The Job Training Partnership Act (JTPA) of 1982 was enacted with the purpose of helping dislocated workers become reemployed through the provision of job training programs. Using data from the 1984 CPS Displaced Worker Survey, this study analyzes the impact of job training programs on the reemployment probability of dislocated workers. The results suggest that dislocated workers who received classroom training or on-the-job training were more likely to be reemployed. Dislocated workers who received only job search assistance, however, did not benefit from the assistance in terms of higher reemployment probability. In light of the legislative intent of JTPA Title 111 for increasing dislocated workers' human capital, the results suggest that state JTPA agencies should place more emphasis on the classroom training, which provides basic and job skills to dislocated workers.     

Federal Credit Reform

The Congress has now enacted, and the president has signed, legislation requiring credit reform accounting in the 1992 budget. This article summarizes the state of federal budgeting for credit activities, covering (1) where we are now with regard to budgeting for ciedit, (2) how we got where we are, (3) the major weaknesses of the older approaches and why credit reform is important, and (4) the fundamental elements of the recently enacted credit reform legislation.     

FEDERAL EMPLOYMENT AND TRAINING POLICY: A VIEW FROM THE LOCAL LEVEL OF GOVERNMENT

To maximize the use of human capital, employment and training resources need to be redirected to meet four objectives: (1) reduce welfare dependency by helping people gain skills for self-sufficiency, (2) prepare a new workforce through better education of youth, (3) retrain dislocated workers, and (4) develop an employment system that links workers and jobs through the coordination of institutions. Suggestions for federal, state, and local initiatives to meet these objectives are spelled out. Particular emphasis is placed upon both a significant revitalization of the federal role in employment and training and a reassessment of traditional approaches.     

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.     

Does AFDC-up encourage two-parent families?

Effective October 1990, the Family Support Act (FSA) of 1988 extended the previously state-optional AFDC-Unemployed Parent (UP) program to all states. This policy was undertaken in an effort to reduce the two-parent penalty of the AFDC program, but little is actually known about UP and its influence on family structure. This study clarifies what is meant by “two-parent family” in the federal legislation and provides new evidence on AFDC's incentive effects. The empirical analysis makes use of the cross-state variation in the generosity of AFDC benefits and the presence (or absence) of AFDC-UP before the FSA of 1988. Specifically, these state-level data are appended to data from the 1987 National Survey of Families and Households (NSFH). A real advantage of the NSFH is that it allows for the identification of those truly eligible for the UP program-married and unmarried couples who have an “in-common” dependent child. The major empirical finding is that contrary to the hopes of Congress, a state's provision of a UP program is not found to encourage two-parent families.     

Repealing Federal Oversight of State Health Policy: Lessons from the Boren Amendment

The Boren Amendment is frequently cited as an example where judicial involvement markedly shaped the implementation of federal legislation. Unlike other controversial health policies, Boren was eventually rescinded by Congress. Results indicate that the Amendment was repealed because changing socioeconomic, political, and programmatic conditions combined with policy‐oriented learning to facilitate a shift in policy venue away from the judiciary toward the President and Congress. This is because during the devolutionary climate of the mid‐to‐late 1990s, both the executive and legislature proved more conducive to the policy image promulgated by state officials that the Amendment unnecessarily restricted state discretion, than the policy image promulgated by providers that without the Amendment, low reimbursement levels would compromise access and quality. Data for this analysis derive from archival documents, secondary sources, and 101 interviews with state and federal experts.     

Congress,the Supreme Court,and Judicial Review: Testing a Constitutional Separation of Powers Model

Recent scholarship suggests that the U.S. Supreme Court might be constrained by Congress in constitutional cases. We suggest two potential paths to Congressional influence on the Court's constitutional decisions: a rational‐anticipation model, in which the Court moves away from its preferences in order to avoid being overruled, and an institutional‐maintenance model, in which the Court protects itself against Congressional attacks to its institutional prerogatives by scaling back its striking of laws when the distance between the Court and Congress increases. We test these models by using Common Space scores and the original roll‐call votes to estimate support in the current Congress for the original legislation and the Court's preferences over that legislation. We find that the Court does not appear to consider the likelihood of override in constitutional cases, but it does back away from striking laws when it is ideologically distant from Congress.     

Block Grants: A Perennial, But Unstable, Tool of Government

During 1995 and 1996, the Congress and the president gave considerableattention to block granting over $200 billion in federal intergovernmentalgrant programs, ranging from large entitlement programs to smallerprograms in housing, vocational education, and law enforcement.In the end, the record of successes was modest—highlightedby welfare-reform legislation that, in some respects, resembleda block grant and in others did not. The contrast between processand outcomes in this most recent block-grant cycle reinforcesthe point that block-grant prospects depend on fundamental fiscal,political, and programmatic forces that are separate from federalismconsiderations. The states' maturation as leaders in many domesticpolicy areas strengthens the performance rationale for blockgrants. The federal fiscal crisis will continue to stimulateinterest in block grants among fedeal as well as state policymakers.The proposals offering the greatest fiscal advantage (i.e.,Medicaid and AFDC) may not be those with the strongest performancerationale. Although recent congressional developments suggeststronger support for states, nationalizing forces remain embeddedin domestic policymaking. Thus, substantial questions remain,posing obstacles to a fundamental and sustained role for blockgrants in the federal system.     

State Government Influence in the National Policy Process: Lessons from the 104th Congress

During the last several decades, state officials increasinglyconcluded that their interests are not adequately representedin national policymaking and sought to increase their influencethrough the constitutional amendment process, the federal judiciary,and the political process. This article evaluates the extentto which these institutional mechanisms were effective in advancingstate interests during the 104th Congress. United States Constitutionalamendments were improbable and ineffective devices. Litigationwas slightly more successful, though it provided an uncertainsource of long-term security for state interests. Efforts towork through the political process, either through securingthe passage of legislation that increases congressional responsivenessor by engaging in direct lobbying, were moderately effectiveunder certain conditions.     

The influence of the gramm-rudman-hollings act on federal budgetary outcomes, 1986—1989

This article analyzes the impact of the Gramm-Rudman-Hollings (GRH) Act on federal budgetary and fiscal outcomes. Rather than portraying it as a two-on federal budgetary and fiscal outcomes. Rather than portraying it as a two-party game between Congress and the president, each with monolithic policy preferences, we view GRH as a multiparty negotiation game among advocates of different programs and agencies. In this game, agencies subject to sequestration and their congressional advocates have an incentive to reach a budget accord, while those exempt from sequestration do not. Consistent with this argument, we find that GRH has restrained outlays for nonexempt programs and that exempt programs have, if anything, experienced more rapid growth. Overall, GRH is estimated to have restrained outlays by $59 billion by fiscal 1989, and to have restrained outlays more effectively after the 1987 modifications in the Act. The Gramm-Rudman-Hollings Act signals another phase in the decade-long struggle between the White House and Congress over public spending priorities. Our final counterfactual analysis suggests that GRH partially returned federal fiscal and budgetary relationships and priorities to those that prevailed before Reagan.