DEPARTMENTS OF LABOR AND HEALTH, EDUCATION, HEARINGS BEFORE A U.S. CONGLOSS. S. SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS, UNITED STATES SENATE NINETY-SECOND CONGRESS FIRST SESSION ON H.R. 10061 AN ACT MAKING APPROPRIATIONS FOR THE DEPARTMENTS 63-792 O Printed for the use of the Committee on Appropriations U.S. GOVERNMENT PRINTING OFFICE WASHINGTON: 1971 EPARTMENT OF LABOR AND HEALTH, EDUCATION, AND WELFARE AND RELATED AGENCIES APPROPRIATIONS FOR FISCAL YEAR 1972 TUESDAY, JULY 6, 1971 SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS, U.S. SENATE, Washington, D.C. The subcommittee met at 10 a.m., in room 1114, New Senate Office Building, Hon. Clifford P. Case presiding. Present: Senators Case and Percy. DEPARTMENT OF HEALTH, EDUCATION, AND NONDEPARTMENTAL WITNESSES SUBCOMMITTEE PROCEDURES Senator CASE. The subcommittee will be in order. This morning we begin a series of hearings on the Labor-HEW appropriation bill for fiscal year 1972. We will hear testimony from nondepartmental or as we call them, public-witnesses on this important money bill. Chairman Magnuson can't be here this morning. He has asked that I preside in his absence. This is one of the few chances for Republicans to shine just before vacation. In keeping with the subcommittee's procedure, I am hopeful that the witnesses will address themselves to the budget we have under consideration and keep their testimony brief and to the point so we will clearly understand the agreements and disagreements that witnesses have with the pending administration request. Since the House has not reported or passed the appropriation bill, we are really ahead of ourselves and that is something I think ought to be the rule rather than the exception. I do believe that the House plans to act within the next 2 weeks. We will receive all the witness' statements for the record and you all may summarize them in such fashion as you wish orally. I would suggest, too, we consider ourselves limited to 15 minutes in each case. (1485) pt.3 STATEMENT OF TERRELL M. WERTZ, ASSISTANT DIRECTOR, NATIONAL LEGISLATIVE COMMISSION, THE AMERICAN LEGION ACCOMPANIED BY AUSTIN E. KERBY, DIRECTOR, NATIONAL ECONOMIC COMMISSION CONCERN FOR ADEQUATE FUNDING Senator CASE. We will begin the hearing today by calling our first witness, Mr. Terrell Wertz, a representative of the American Legion, to testify on labor items. Mr. Wertz. Mr. WERTZ. I am Terrell M. Wertz, assistant legislative director of the American Legion. We are here to testify this morning on the funds for the Veterans Employment Service and related program. We are very happy to have this opportunity, Mr. Chairman, to appear before you and to express the views of the American Legion and particularly our concern for the funds to provide for an adequate Veterans Employment Service for the returning Vietnam veterans. PREPARED STATEMENT We have a formal statement which we have submitted for the record. I would like to, with your permission, introduce Mr. Austin E. Kerby, director of our National Economic Commission. He is the one who is directly involved in our program for economic aid to veterans. He is going to summarize our statement. (The statement follows:) STATEMENT OF AUSTIN E. KERBY, DIRECTOR, NATIONAL ECONOMIC COMMISSION, THE AMERICAN LEGION Mr. Chairman and members of the subcommittee, the American Legion has traditionally supported adequate funds for the Department of Labor to operate and carry on an effective job placement and job training program for veterans, as well as other programs designed to improve their economic capabilities. Current resolutions asking adequate support and funds for these programs and activities were adopted at our 1970 National Convention and subsequent meetings of our National Executive Committee. My comments today are directed primarily to the Veterans Employment Service of the Department of Labor and its affiliated State Employment Agencies. Resolutions Nos. 173 and 247 of our 1970 National Convention specifically request adequate earmarked funds for these programs. Copies of these resolutions, together with others (1970 National Convention Nos. 424, 494, 516 and No. 8 of the May 1971 National Executive Committee) pertaining to the Department of Labor programs in which the American Legion is interested, are attached to this statement which we would appreciate being made part of the record of this hearing. At the outset, Mr. Chairman, I would like to bring to your attention the deep concern of the American Legion over an omission in the budget of the Manpower Administration of the Department of Labor. I note in that part of the President's budget relating to Federal salaries and expenses of the Manpower Administration that the portion setting aside specific funds for the proper operation of the Veterans Employment Service was eliminated. I refer specifically to the section which provides monies "for carrying into effect the provisions of Title IV (except Sec. 602) of the Servicemen's Readjustment Act of 1944." We note that in last year's appropriation language $2,184,00 was specifically allocated for this purpose. Responding to my inquiry, the Department of Labor informed me that its appropriations estimate for fiscal year 1972 provides $2,470,000 for this purpose, the difference over the 1971 amount reflecting only mandatory salary increases. We assume that this amount as stated by our informant is factual and "hidden" in other Manpower Administration budget items. If such is the case the amount of $2,470,000 is considered reasonable and the minimum requirement for operating the Veterans Employment Service. However, Mr. Chairman, we believe your Subcommittee should restore this section in the appropriation language so that no part of these funds can be used for any other purpose. The Congress has traditionally identified funds for the Veterans Employment Service. We respectfully urge the reinstatement of this customary budget item in the Department of Labor budget for fiscal year 1972. While only a relatively small unit, the 144 professional and clerical employees of the Veterans Employment Service (16 in the Washington, D.C. administra. tive headquarters) are charged with the nationwide responsibility of assuring veterans preference and the "maximum of job opportunity" throughout the public employment service system. Their job is particularly difficult now in these times when jobs are scarce and the rate of unemployment of veterans is higher than the rate for non-veterans. Through the close contact which the National Economic Commission of the American Legion maintains with the Veterans Employment Service, we are provided with statistical data concerning veterans. The latest figures show that much needs to be done to help veterans find work or training. For example, from July 1970 through January 1971, only 10.2 percent of the veterans who registered in 43 State Employment Services were placed in jobs. In the same period jobs were found for 15 percent of those classified as disadvantaged. The American Legion is distressed by the figures which show that the Vietnam era veteran in the 20-29 age bracket experienced a 9.3 percent unemployment rate in the March through May 1971 period while the non-veteran in the age bracket had only 6.9 percent unemployment rate. According to the current population survey of the Bureau of the Census, the March-May 1971 average number of unemployed veterans in the 20-29 age group was 332,000. The American Legion has taken the position that most of the Department of Labor's services to veterans, including job training under the Manpower Development and Training Act (MDTA), do not actually give veterans preferential treatment. Some of this, of course, is due to the fact that the great majority of veterans who do visit the public employment offices are not considered disadvantaged and are therefore, not eligible for some of the program. The most recent computation showed that in December 1970 only 9.5 percent of all veteran applicants were disadvantaged. In addition, veterans are registering at employment service offices in far greater numbers than last year. From July 1970 through March 1971 about 1,682,500 new veteran applications had been filed compared with 1,451,000 a year ago. That is 23 percent of all new applications compared with only 20 percent last year. On the other hand, placement of veterans remained at about 21 percent of all placements, the same as last year. The American Legion is hopeful that employment services to veterans will be improved in the not too distant future. The Secretary of Labor recently was instructed by the President to find more jobs or training for unemployed veterans with this undertaking to be given the highest priority. The President also called on the Federal agencies to use all of their resources and authority to assist in this effort. While the American Legion relies heavily on the employment services provided to veterans by the Federal Government, we also have our own employment program. For many years our efforts have been designed to encourage employers to hire veterans, the handicapped and the older worker. This program is publicized throughout the country by our state organizations. On the basis of nominations received, awards are presented annually to employers whose employment practices in these areas are outstanding. The American Legion, recognizing the problems and the difficulty encountered by the returning Vietnam veteran in obtaining meaningful employment, launched a "Job for Veterans" program in June of 1970. This program was formulated even before the national program carrying the same name. Our "Jobs for Veterans" program, part of the American Legion's continued service contact program for returning veterans, has the full support of the Veterans Employment Service. The program was started on a pilot basis in 17 states and was expanded nationwide on Veterans Day 1970. Our goal is for each veteran requiring job assistance to be placed in contact with a potential employer, particularly in the private sector, on a personal basis with continued contact until a job opportunity is found. The Legion's "Jobs for Veterans" program is now operating state-wide in 44 departments. Twenty-six departments have held one or more successful job |