HOPES
RAISED FOR WIA REAUTHORIZATION
SENATE
APPROPRIATORS RESTORES WIA FUNDING CUTS
WIA
Reauthorization
The voice vote
passage of WIA reauthorization on the Senate floor in the waning
moments before the July 4th recess gave hope to the prospects of
many locals that WIA can be reauthorized this year, after months of
stagnation. Senate floor passage was incremental progress forward,
as the hold that blocked the bill was removed only under the
condition that a resolution regarding faith based language be found
before convening a formal Conference Committee.
NWA met with
key Committee Members and their staff in both the House and Senate
last week. Substantive negotiations have not begun on WIA, in large
part because the House and Senate Committees are finalizing
Conference negotiations reauthorizing vocational education and the
Older Americans Act. Passage of these bills and possibly a long
stalled pensions bill may help create more momentum to finish WIA
this year as well. House Education and Workforce Committee Chairman
Buck McKeon told NWA that he hopes to complete all of these bills,
as well as the Higher Education Act, before the end of the
year.
While no ready
solution to the faith based issue is apparent, there is still reason
for optimism as key Conference negotiators, at the Member level,
share a desire to complete WIA reauthorization. Senate HELP
Committee Chairman Enzi, Ranking Member Kennedy, and House Chairman
McKeon have all publicly declared their desire to complete the bill.
Senior HELP Committee staff for Senator Enzi told NWA that the
Chairman believes that there is an 85% chance that they will
complete the bill this year, while other Committee officials
privately put the odds of passage closer to 50%.
The legislative
calendar and the post election political environment may pose
significant challenges for reauthorization efforts. Less than twenty
legislative days remain before Congress adjourns on September 29
until its returns for a lame duck session after the election and
House and Senate Committee agreed, in separate discussions, there
was little chance that a Conference Committee could complete its
negotiations before the election. The lame duck session is expected
to last until well into December, providing staff with additional
time to complete their negotiations. However, we cannot predict at
this point what the post election political environment will look
like and whether it will allow for the completion of unfinished
bills outside of the appropriations process.
While most
workforce groups would welcome the opportunity to reauthorize the
bill this year, rather than allow the Department to continue to use
regulatory means to enact their unsuccessful reauthorization agenda,
Committee staff also indicate that they expect resistance from some
quarters. Eleventh hour actions to derail Senate passage were waged
by some in the labor movement, who oppose moving WIA reauthorization
this year, hoping that a more favorable legislative landscape will
allow for the creation of a better bill in the next Congress. While
these efforts failed, they are expected to continue in
Conference.
We are also are
aware that some groups representing states are considering an effort
to revive in Conference their failed proposal to allow states
optional authority to broadly consolidate WIA funding streams. This
proposal was rejected in both the House and Senate, making it
unlikely that it would be accepted in Conference, but highlights for
the local system the need to complete reauthorization this year –
and not refight battles over state vs. local control in the next
Congress.
Senate
restores WIA funding
The Senate
Labor-HHS Appropriations bill was passed by the full Appropriations
Committee on Thursday. Labor-HHS Subcommittee Chairman Arlen Specter
indicated that in inflation adjusted dollars, the funding allocation
for the bill was $10 billion below FY 05 levels. There is still
considerable pressure from Members to have additional funding for
the Labor- HHS bill added as the bill moves forward. NWA is one of
the select number of groups (and only workforce related
constituency) convened by Labor-HHS Subcommittee Ranking Member Tom
Harkin to assist in his effort to increase overall funding for the
bill by $2 billion when the bill goes to the Senate
floor.
Despite the
funding shortfall, Senate Labor-HHS Appropriators restored nearly
all of the $680 million in cuts proposed by the Administration to
WIA. The Senate Labor-HHS bill funds WIA programs at $55 million
below last year’s level and $95 million above the House funding
level. Click
here for WIA Funding chart.
The Senate bill
also chose not to include the House Labor-HHS bill’s rescission of
$325 million in prior year funding. NWA worked with Committee staff
extensively on this issue to educate them about the impact of such a
rescission, but the rescission will be a major focus in Conference
negotiations when the House and Senate attempt to resolve major
funding differences in their bills.
The Senate bill
once again chose to protect the local workforce system from DOL’s
efforts to eliminate it. The bill preserved language inserted at
NWA’s request in previous years to protect the local workforce
system from efforts by DOL to encourage states to redesignate local
workforce areas and continues to block any effort by DOL to change
the definition of Administrative Costs until WIA is
reauthorized.
Appropriators
in both the House and Senate informed NWA that the Senate
Appropriations Committee mark up is likely to be the last action on
Labor-HHS in either the House or Senate until after the election, as
neither bill currently has the votes necessary for floor passage.
The House bill is particularly contentious this year due to passage
during Committee markup of an increase in the minimum wage. House
leadership officials are working with moderates to separate floor
vote on the minimum wage with a small business tax package attached
to it. If the minimum wage provision is removed, there is a chance
of a House floor vote in late September.
A more likely
result is that the Committee passed bills will be rolled into a
giant Omnibus Appropriations bill after the election. A lame duck
session is scheduled to begin on November 13th and will last well
into December. Attached below are the funding levels for major WIA
funding streams.