51 EMPLOYMENT AND TRAINING ADMINISTRATION PROGRAM ADMINISTRATION Program Purpose and Accomplishments - Social Activity: Unemployment Insurance Service (Authorizing Legislation Purpose: This activity provides for leadership and technical assistance to all States in development and administration of their unemployment insurance laws and for program and operations research data; establishes policies for determining the amounts to be granted to each State for administration of its unemployment insurance laws; supervises performance of State agencies as agents for payment to individuals; and determines the basic operating procedures and standards for States in controling claims for benefits and for extending benefits as provided under Title II of Public Law 91-373, under the Special Unemployment Assistance Program and under Federal Supplemental Benefits program. Explanation: Unemployment trust funds provide salaries and expenses for the national office and regional office staff in the Unemployment Insurance Service. Accomplishments in 1976: Cost model restudies began in 14 States during the first half of the year. Plans provide for each State to conduct a restudy at least once every 3 years in order to maintain the cost model data base on a current basis. Seminars and workshops will be scheduled at selected sites throughout the Nation for the benefit of State cost model coordinators and related support personnel. Four States began testing the prototype automated tax system using on-line operations. This system will help to maximize each agency's computer capability to accelerate the processing of tax reports and flow of funds. The Unemployment Insurance Service's staff has accelerated the development of performance measures and standards for all other major program areas. A performance standards steering committee was set up to define the areas in which measurement techniques should be developed, and how, when, and by whom they should be done. This committee developed a work measurement package for the various benefit payment and appeals activities, and tested it in two States. Performance measures for the tax function will also be developed in 1976. Objectives for 1977: The Unemployment Insurance Service national and regional office staffs will focus primarily on improving operations and performances in the State agencies. This will involve the final refinement and implementation of performance measurement techniques and performance standards for all important areas of operation. The fraud prevention and detection programs will be expanded and strengthened. The claims adjudication process at the agency and appeals levels will be improved both in terms of promptness and quality of adjudication. In 1977 Federal staff will work closely with the Congress to enact legislation for improving the program and it will continue the UI research program which is designed to resolve existing program issues and to support appropriate legislation. 52 EMPLOYMENT AND TRAINING ADMINISTRATION PROGRAM ADMINISTRATION Program Purpose and Accomplishments Activity: Investigation and Compliance (Authorizing Legislation Comprehensive 1977 Estimate Purpose: This activity provides for special inquiries and reviews for the Assistant Secretary for Employment and Training; provides leadership and coordination to all activities relating to audits of Employment and Training Administration programs; provides policy, procedural guidelines and technical assistance to national office and field staffs to insure that the Employment and Training Administration carries out a broad range of Departmental responsibilities under Federal laws, regulations and orders promoting equal employment opportunities; and monitors and promotes the implementation of a unified program of affirmative action to foster increased use of minority owned enterprise. Explanation: Federal and unemployment trust funds provide salaries and expenses for the Employment and Training Administration's Office of Equal Employment Opportunity and regional Equal Employment components and special review staffs. Accomplishments in 1976: On-site reviews of three offices in 11 States were conducted to determine compliance with the provision of services to migrant and seasonal farmworkers stipulated under Judge Richey's Court Order of 1973. Twentyeight investigations were completed on questionable activities within the Comprehensive Employment and Training Act program, with particular emphasis on Migrant and Indian program allegations. Each investigation involved 80 to 160 staff-hours. Progress was made by the Equal Employment Opportunity staff in establishing an acceptable EEO compliance reporting system. Compliance monitoring reviews were made to all regional offices, selected States and CETA jurisdictions. A Mission and Function statement for State EEO offices will be prepared and sent to States for adoption. Objectives for 1977: The staff will primarily respond to critical problems in the operation of the Employment and Training Programs. A predicted workload of 30 investigations for 1977 will require maximum utilization of the Special Review Staff. Emphasis will be placed on the serious allegations involved in the Migrant and Indian programs. The Division of Equal Employment Opportunity will concentrate on compliance monitoring of regional office, State agency and CETA prime sponsor EEO operations; streamlining of EEO technical assistance guides and tools; improvements in the Minority Business program; perfection of EEO reporting system; training national, regional, State and prime sponsor staffs on EEO and affirmative action; and maintenance of contracts with community-based national organizations. EMPLOYMENT AND TRAINING ADMINISTRATION PROGRAM ADMINISTRATION Program Purpose and Accomplishments Activity: Executive Direction and Management (Authorizing Legislation 53 Furpose: This activity provides for the preparation and dissemination of information on employment and training programs; the development, maintenance and operation of financial and management information systems for all employment and training programs; budgetary, fiscal management, audit, personnel and administrative services for the Employment and Training Administration; and the overall executive direction, supervision and coordination of the operation of employment and training programs. Explanation: Federal and unemployment trust funds provide salaries and expenses for the Administrator, the Deputy Administrator, regional administrators and their staff, and the Offices of Information, Management and Administrative Systems and Financial and Management Information Systems. Accomplishments in 1976: The Employment and Training Administration's officials participated in a two-day review and planning session on employment and training activities. A "bottoms up" work plan was prepared from the smallest organizational unit up to the office level. The proposed Regional Disbursing Offices' letter-of-credit method with all qualifying grantees, contractors, and sponsors was implemented. This improved financing technique will improve cash management practices at all levels. Group training and individual technical assistance to prime sponsor organizations have resulted in significant reduction in the amounts of cash held outside the U.S. Treasury. A nationwide coordinated effort for providing technical assistance and training has been established. Working groups have been formed in 12 key areas. The groups include national, regional, State and local prime sponsor staff. Standard input The Federal reporting requirement is being further refined to eliminate structural report formats and reduce computer processing time. documents will be implemented in fiscal years 1976 and 1977. This will eliminate a number of documents now used in local offices. Objectives for 1977: Technical assistance will continue, but on a reduced basis, as more and more formalized materials become available for prime sponsor use. This transition will enable Federal staff to assume more of an oversight role. The Operational Planning and Control System (OPCS), a basic management system used to evaluate regional office performance under categorical programs, will be modified to include the annual work plans as a basis for evaluating regional office performance. Cash management practices will be continually reviewed with emphasis on continuing the reduction in the amount of cash on hand by prime sponsors. Fiscal training and technical assistance will continue to both Indian and Migrant sponsors using the model recordkeeping system and training program developed in 1976. GPO 200-589 Mr. FLOOD. Thank you very much, gentlemen. TUESDAY, FEBRUARY 3, 1976. EMPLOYMENT AND TRAINING ADMINISTRATION GRANTS TO STATES FOR UNEMPLOYMENT INSURANCE AND WITNESSES BEN BURDETSKY, DEPUTY ASSISTANT SECRETARY FOR EMPLOYMENT AND TRAINING WILLIAM B. LEWIS, ADMINISTRATOR, U.S. EMPLOYMENT SERVICE LAWRENCE E. WEATHERFORD, JR., ADMINISTRATOR, UNEMPLOYMENT INSURANCE SERVICES ALBERT J. ANGEBRANNDT, ADMINISTRATOR, OFFICE OF ADMINISTRATION AND MANAGEMENT DAVID O. WILLIAMS, DEPUTY ADMINISTRATOR, U.S. EMPLOYMENT SERVICE T. JAMES WALKER, DEPUTY ADMINISTRATOR, OFFICE OF ADMINISTRATION AND MANAGEMENT LOUIS A. HOUFF, DIRECTOR, PROGRAM SUPPORT STAFF, UNEMPLOYMENT INSURANCE SERVICES JOHN F. SHINE, BUDGET OFFICER, OFFICE OF ADMINISTRATION ALFRED M. ZUCK, COMPTROLLER FOR THE DEPARTMENT RALPH HALL, DIRECTOR, VETERANS EMPLOYMENT SERVICE Mr. FLOOD. We have now the "Grants to States for unemployment insurance and employment services." The presentation will be made by Ben Burdetsky again. I see you have a prepared statement, Mr. Burdetsky. How do you want to handle that? Mr. BURDETSKY. Sir, with your permission I would like to read this. I think it is important. It is not too long. Mr. FLOOD. Suppose you do. INTRODUCTION OF WITNESSES Mr. BURDETSKY. Before I do, I would like to introduce a couple of new members of the staff here who were not here yesterday. You have met Mr. Al Zuck and Jim Walker. Right next to them is Mr. William B. Lewis, who is the Administrator of the U.S. Employment Service. Mr. Hewitt was here with me yesterday, and to my immediate right is another new participant, Mr. Larry Weatherford, who is the Administrator of the Unemployment Insurance program. Mr. FLOOD. All right. OPENING STATEMENT Mr. BURDETSKY. Mr. Chairman and members of the committee, the budget request for Grants to States for unemployment insurance and employment services for fiscal year 1977 provides an availability of $1,485,800,000, which is a decrease of $26,247,000 over the 1976 availability of $1,512,047,000. These funds finance the administrative costs of Unemployment Insurance and Employment Service activities in the State employment security agencies, and are comprised of $1,404,300,000 in trust funds and $81,500,000 in general funds. The availability of $1,485,800,000 for fiscal year 1977 consists of an appropriation request of $1,435,800,000, and an estimated carryover balance from the transitional quarter of $50 million. The State Employment Service activities in fiscal year 1977 will require $499 million: $81,500,000 from general revenue funds and $417,500,000 from trust funds. General revenue financing is required to comply with title IX of the Social Security Act, as amended, which limits the use of Federal Unemployment Tax Act revenues to services for those individuals covered by State unemployment insurance laws. In accordance with this provision, 15 percent of the estimated costs of the Employment Service are requested from general revenue funds since approximately 15 percent of Employment Service activities are related to persons not covered under State unemployment insurance laws. Mandatory changes for Employment Service activities total $37,100,000 and consist of increases of $31,700,000 for annualization of State salary and personnel benefit costs, and $5,400,000 for increased costs of rents, communications, and supplies. Program changes reflect a reduction of $63,600,000 and consist of decreases of $15 million in the amount to be available for expansion of computerized job matching and $48,600,000 resulting from a reduction in the number of Employment Service staff years to be available in 1977 from the level available in 1976. Current efforts aimed at the eventual computerization of job matching activities will be continued. However, planned economies should make it possible to reduce the amount of funds required in 1977 through the shared use of computer facilities in the State agencies by both Unemployment Insurance and Employment Service staff. Therefore, a reduction of $15 million has been proposed from the amount available in 1976. The proposed reduction in Employment Service staff-years reflects the improved economic climate and staff productivity increases anticipated in 1977 over 1976. The number of placement transactions per staff-year worked is expected to increase from 208 per staff-year in 1976, to 224 in 1977. This increased productivity will result (1) from the continued expansion of job openings which will facilitate the placement of unemployed applicants and (2) from recent efforts made and efforts planned which have or will enhance the placement efficiency of Employment Service staff. Such efforts include assigning a higher proportion of staff in direct placement activities while reducing un |