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THE WHITE HOUSE

Office of the Press Secretary

For Immediate Release March 16,1994

Fact Sheet

Reemployment Act of 1994

The President yesterday transmitted to the Congress the "Reemployment Act of 1994," which will:

Create a comprehensive system of reemployment services, training and income support for permanently laid-off workers; build a new network of one-stop career centers to serve as a common point of universal access to education and training, and employment services; and develop a comprehensive national labor market information system.
Establish a retraining income support program for permanently laid-off workers; provide flexibility to States relating to the unemployment compensation program; and establish a transitional certification process for trade-impacted workers.

This legislative package will build the comprehensive, high-quality reemployment system that American workers need. It is based on what works for getting workers into new and better jobs. Programs that work are customer-driven, offering customized service, quality information, and meaningful choices. They feature job search assistance to help shorten jobless spells, skill training connected to job opportunities, and support services to make long-term training practical for those who need it. They consolidate and streamline the current maze of programs.

The President challenges the Congress to pass the legislation this calendar year.

This Act embodies six fundamental principles:

Universal access and program consolidation
High-quality reemployment services
High-quality labor market information
One-stop service
Effective retraining
Accountability

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Reemployment Act of 1994

Title I: Comprehensive Program for Worker Reemployment

Establishes a comprehensive program for reemployment of dislocated workers -- those who are permanently laid-off or are long-term unemployed, regardless of the cause of dislocation. It consolidates six current Labor Department dislocated worker programs: Economic Dislocation and Worker Adjustment Assistance Act; Defense Conversion Adjustment; Clean Air Employment Transition Assistance; Defense Diversification Program; Trade Adjustment Assistance; and NAFTA Transitional Adjustment Assistance.

Outreach -- Significant investments in outreach through rapid response (prompt services delivered to large-scale dislocations) and links to worker profiling (early identification of Unemployment Insurance (UI) claimants likely to exhaust UI benefits before getting new jobs and referring them for services).
Individualized Services -- Services tailored to meet the needs of workers, including the development of individual reemployment plans.
Comprehensive Reemployment Services -- All dislocated workers have access to a broad menu of basic services including career, labor market, and training program information; program eligibility reviews; testing and assessment to help determine general skills, interests and aptitudes; and job search assistance. Dislocated workers who receive basic services and are unable to get new jobs through such services will have access to more intensive services, including individualized counseling and career planning, diagnostic testing, and development of customized reemployment plans. Relocation assistance, out-of-area job search allowances, and other supportive services such as dependent care and transportation also will be available.
Program Integration and Career Centers -- Career Centers, competitively selected, will provide access to comprehensive services for all dislocated workers. They may be operated by the Employment Service (ES), Job Training Partnership Act (JTPA) administrative entities, Title I substate grantees, community colleges, area vocational schools, community-based organizations, or other non-profit or for-profit organizations.
Job Retention -- Governors may use a portion of State reserve funds for skills upgrading for currently employed workers at serious risk of permanent lay-off.
Quality Training -- Dislocated workers who need new or higher level skills to get good jobs will be able to select education and training providers based on performance information. Education and training funds will be available to each worker for up to 2 years and may be supplemented by other forms of student financial aid.
Retraining Income Support -- Dislocated workers who need long-term training will have access to income support, beyond regular UI benefits.

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       o    Performance Accountability and Outcomes -- Performance 
            standards for service areas, career centers, and 
            service providers will improve accountability in all 
            States.
  
       o    National Grant Program -- The Secretary of Labor 
            will manage a national discretionary grant program 
            to address large scale economic dislocations, provide 
            disaster relief employment assistance, conduct 
            evaluations and research, carry out demonstrations, 
            and provide training and technical assistance to 
            organizations involved in the management and delivery 
            of services.
  
       o    Funding Flow -- The Secretary uses a statutory formula 
            to allocate 75 percent of the appropriated funds to 
            States, and States use a similar formula to allocate 
            at least 70 percent to substate areas.

Title II: Retraining Income Support

Part A establishes a program of retraining income support for permanently laid-off workers in long-term training. Beginning July 1, 1995, eligible workers who have exhausted UI benefits, who have a minimum level of tenure with their previous employer, and who are enrolled in long-term retraining will be eligible to receive extended income support.

Part B establishes a Retraining Income Support Account in the Unemployment Trust Fund and sets dollar caps for funding for each fiscal year from FY 1996 through FY 2000. After FY 2000, funding is capped at 20 percent of Federal Unemployment Tax receipts.

Part C finances Retraining Income Support using proceeds of the permanent extension of the current 0.2 percent Federal surtax collected under the Federal Unemployment Tax Act. It also provides for voluntary withholding on UI.

Part D phases out the TAA and NAFTA-TAA programs. Any worker receiving assistance before July 1, 1995, will continue to receive the remaining services and benefits to which they are entitled. From July 1, 1995, through June 30, 1999, workers and their representatives will be able to apply for trade-impacted certification that will make them eligible for services under title I of this Act and income support under title II.

Part E amends the Federal Unemployment Tax Act to give more flexibility to the UI system by permitting States to amend their laws to: pay unemployment compensation under a short-time compensation program to an individual who is working reduced hours for an employer in lieu of lay-off; and pay reemployment bonuses to certain individuals as an incentive to rapid reemployment. This part also permanently extends the selfemployment assistance program.

Title III: One-Stop Career Center System

Establishes a national program of grants and waivers to assist States in developing and implementing Statewide networks of One-Stop Career Centers. These networks would provide a common point of access to employment, education and training information and services for anyone who needs help getting a first job, a new job, or a better one, and to employers.

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       o    Workforce Investment Boards -- Local Workforce 
            Investment Boards, selected by local elected 
            officials, will oversee the One-Stop Centers and serve 
            as the "board of directors" for all local workforce 
            programs.  (Private Industry Councils under JTPA may 
            become Boards if they meet established composition 
            requirements.)
  
       o    One-Stop Career Centers -- Centers may be run by a 
            consortium of organizations, including the ES, the 
            State UI agency, and agencies administering JTPA 
            Title II, and the Title I dislocated worker program 
            under this Act.  Alternatively, Governors and local 
            elected officials can opt for a competitive, multiple-
            operator approach.  Under this option, the ES, and 
            other organizations, including dislocated worker 
            career center operators, JTPA programs, community 
            colleges, and private for-profits and non-profits can 
            be chartered to run One-Stop Centers.  Under either 
            option, One-Stop Centers will be required to meet 
            customer-oriented performance measures and will be 
            evaluated against those measures each year.
  
       o    Common Services -- Centers will provide basic services 
            to anyone who needs help getting a first, new, or 
            better job, and intensive services to dislocated 
            workers.  Centers may also provide intensive services 
            to other individuals.  They will coordinate the 
            delivery of a wide range of job training and employ-
            ment programs.  Specialized employer services such as 
            customized screening and referral of job seekers also 
            may be provided.
  
       o    Participating Federal Employment and Training 
            Programs -- Programs that will make basic services 
            available through One-Stop Centers are:  Title I 
            of the Reemployment Act, Wagner-Peyser, Title II of 
            JTPA, Chapter 41 of title 38 (veterans' employment 
            and training programs), programs authorized under 
            Federal and State UI laws,  and the Senior Community 
            Service Employment program under Title V of the Older 
            Americans Act.  Other human resource programs, such as 
            JOBS, Job Corps, and adult and vocational education, 
            also may provide services through Centers.
  
       o    Operating Agreements -- These agreements among the 
            local Workforce Investment Board, the Governor, local 
            elected official(s), participating programs, and 
            Center operators will govern the administration of 
            local One-Stop Career Center systems.
  
       o    Grants -- States may apply for competitive planning 
            grants to help them design and develop a comprehensive 
            network, or they can apply for implementation grants 
            with the agreement of local elected officials.
  
       o    Waivers -- States also may request waivers of 
            statutory and regulatory requirements for specific 
            Department of Labor-funded programs.
  
       o    Quality Assurance -- State-level "customer service 
            compacts" and performance standards for service areas, 
            career centers, and service providers will improve 
            accountability in all States.
  
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       o    State Human Resource Investment Councils -- Single 
            Councils will be established to advise Governors 
            on ways to consolidate or coordinate programs and 
            resources and on all aspects of the development and 
            implementation of the One-Stop system.

Title IV: National Labor Market Information System

Establishes a National Labor Market Information (LMI) System to provide universal access to timely, accurate, up-to-date, easily accessible, and comprehensive information about where jobs are, necessary skills and experience, location and quality of training programs, and job search assistance. The LMI system also will provide information on available job candidates and on job, occupational, and skill demand trends. The Secretary will develop a strategy to establish the national LMI system which will be developed in cooperation with other public and private partners.

Title V: JTPA Reinvention Labs

Amends title II of the Job Training Partnership Act to establish a new part D, "Reinvention Labs", permitting the Secretary to waive Federal statutory or regulatory requirements relating to programs for economically disadvantaged youth and adults to promote implementation of innovative program designs.

Budget Overview

The Administration's FY 1995 budget includes $1.465 billion for reemployment services for dislocated workers. When fully implemented in FY 2000, the system will serve 1.3 million dislocated workers. This represents a total investment of $13 billion over the five-year period -- FY 1995-FY 1999: $9.9 billion in discretionary spending, $2.0 billion in capped mandatory funds, and $1.25 billion on One-Stop Career Centers. The mandatory spending under the bill is fully offset over the five-year period.

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