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Federal Welfare & Workforce Investment Systems

Fact Sheet #108-2-03
March 3, 2004

Federal Social Programs

Federal workforce investment systems (WIA) under Title I of the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations and welfare (TANF) under Title IV of the Social Security Act constitute two major federal social programs that serve as primary safety nets for America's children and working adults. Welfare is about the well being of all of America's children. Federal workforce investment systems provide the fundamental financial and work related tools needed by workers to re-integrate back into the workplace. Under conservative Congressional reauthorization plans, the House and Senate have unwisely restructured and inextricably linked these two important programs.

Relative to the distribution of services to qualified Americans, participating state, county, and local governments are required to implement federal policies. However, restructuring of these programs by conservative leadership in both the House and Senate has placed states in the untenable position of having to accept and finance new un-funded federal mandates. The new mandates created in both reauthorization packages strain state budgets and place millions of Americans under considerable pressure to successfully maneuver new program policy objectives while attempting to successfully acquire new skills necessary to obtain new jobs in a static job market.

For adult welfare clients who are required to successfully prepare for work and for islocated workers retraining and in job search, one thing is clear. Jobs that provide living wages with benefits necessary to keep workers healthy and productive are, contrary to Bush Administration claims, simply in thin supply. During the debate on tax cuts, the Administration projected that 306 thousand new jobs would be created per month. Of course, this plan has proven to be false. This, while congressional conservatives work to weaken workforce system programs requiring states to force potential new workers into a jobless abyss. Unemployment remains high and few living wage jobs are available as American corporations continue on a more aggressive track, moving American jobs offshore.

Safeguarding America's Human Resources

As Congress contemplated TANF and workforce investment reauthorizations, it envisioned a single universal system that would provide linkages between the two programs. The perception was that the integration of TANF and workforce programs would "best" be accomplished in One Stop Centers already in use. These centers, many operated by private firms, service local TANF programs and some facets of federal and state workforce programs.

Many questions arose, particularly around integration or commingling of low income, disadvantaged, and dislocated clients into such a universal system. Many welfare participants had special needs or barrier issues. Common knowledge is that these matters are best addressed by specialists. Many state administrators have found it difficult to effectively manage these needs in a One Stop environment. One Stop Centers. These Centers, located in strategic parts of the state were designed to provide a "universal system of employment services for workers and employers" while at the same time in most states serving as a location that provides welfare/TANF services to eligible participants. At this point, states began to assess the relationships between welfare and workforce development with an eye toward bringing the two separate systems together.

Many states already engaged in what they perceive as duplication and cross-referencing of services. However, there remained technical limitations between the WIA and TANF programs that needed to be corrected. Federal workforce investment legislation is now changing eligibility requirements and for state legislators, these federal changes have become the catalyst for change. Such changes are making it more difficult for clients to spend time with their children. The increased workforce requirements are also making it difficult for clients to fit overall criteria for eligibility and to successfully complete the program. Once states began the integration process, the Center for Law and Social Policy published a policy brief on Workforce Development identifying the following problems, while outlining the need to correct them. A few of these problems include:

  • Improvement of management services for people with barriers to employment
  • Improvement of integration of management information systems (MIS)
  • The need to improve communications and outreach to clients eligible for food stamp and Medicaid benefits
  • The need for common performance measures between the two programs that would improve operations
  • The need for reconciliation of DOL and HHS missions
  • The need to clarify competing federal definitions, rules and reporting requirements
  • Key to all of these factors is whether integration provides for better access.

Failed Policies Continue:
Reductions in Funding and Service Only Yield Inadequate Resources

The President's 2005 budget proposal would further weaken employment services for the 8.3 million unemployed by cutting the Employment Service budget by $103 million. The long term unemployed see no relieve in sight with the Bush budget while they watch congressional Republicans block the extension of the emergency unemployment extension program. With unemployment so high, Congress should work to strengthen our national workforce system and more welfare reauthorization bill that truly support the needs of participating clients.

Congress has yet to complete its work on TANF or on WIA reauthorization bills. As TANF operates on it's sixth continuing resolution, concerns about the negative effects of House superwaivers, benefits for legal immigrants, adequate childcare funding, possible siphoning of program money to cover infrastructure costs, along with difficult to attain new work requirements make pending welfare proposals difficult for states to manage. Additionally, conservative proposals to block grant Employment Services, dislocated worker and adult programs would severely undercut services for unemployed and underemployed workers.

For more information, please contact:
Alfonso M. Pollard Legislative Representative
(T) 202-434-1315 (O) 202-434-1318 (F)
apollard@cwa-union.org

www.cwa-governmentaffairs.org

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