for the Concentrated Employment Program. These are both relatively new programs funded at a low level at the beginning of fiscal year 1969, but expanded considerably during the year under the appropriations made for this purpose. The amounts requested by the Department for 1970 would have done little more than maintain the level of activities reached by the end of fiscal year 1969. The Committee strongly supports efforts of the department to evaluate the effectiveness of manpower programs, and feels that a continuing review is vital if we are to make the most effective use of our resources. The Committee would welcome evidence that we should give emphasis to those programs that are best contributing to our objectives of improving the work skills and quality of life for all Americans, and the reduction or elimination of less productive programs. The Committee supports departmental efforts to coordinate programs and avoid duplications, among and within programs, but feels that a great deal more effort needs to be expended in this regard, both in the Department of Labor by the Secretary and by the Secretary with other departments and agencies in the Executive Branch. LANGUAGE The Committee also recommends that a change in the appropriation language requested by the Department but denied by the House be restored. The change would exempt funds appropriated for the JOBS and Concentrated Employment programs from the apportionment formula required under Section 301 of the Manpower Development and Training Act of 1962, as amended, which provides for distribution of funds among the States. The JOBS and CEP programs are intended to serve specific concentrations of disadvantaged unemployed or underemployed persons located principally in large urban areas. The 1970 programs are proposed for fewer than 150 such areas in total. The apportionment required under Section 301 is based on a comparison among all States of a variety of socio-economic characteristics, thereby establishing a rational distribution of available funds. This basis for apportionment is inconsistent with the objective of directing funds for the programs in question to areas of greatest need. The effect of the House deletion of the language change is to inhibit direction of these funds to the areas of concentrated poverty and unemployment for which they are intended by virtue of legislative authorization. The Committee feels that this limited flexibility of funds is essential to effective operation of these programs and is in line with the anticipated provisions of the Manpower Training Act proposed for enactment in 1971. ECONOMIC OPPORTUNITY ACT FUNDS The Committe recommends that funds heretofore appropriated to the Office of Economic Opportunity and allocated to the Department of Labor for program administration be appropriated directly to the Department of Labor as soon as authorizing legislation and budget procedures can be changed. The existing appropriation system excessively complicates manpower planning and programming. Resource levels for manpower programs cannot be considered independently of program decisions relating to the Economic Opportunity Act. This is most clear in the cases of CEP, JOBS and the Public Service Careers programs. The fact of two agencies being responsible for basic budget planning for these programs seems incongruous with the concept that the Department of Labor is responsible for administering them. The increasing interdependence of manpower programs exacerbates the problem. OFFICE OF MANPOWER ADMINISTRATOR The Committee recommends $36,907,000, the full amount of the budget request and an increase of $1,582,000 over the House allowance and $9,272,000 over the funds appropriated for 1969. The $1,582,000 over the House allowance will provide $800,000 for a labor mobility demonstration program, $100,000 for a placement assistance (bonding) program to assist in placement after release of persons trained while in correctional institutions, and $800,000 for a study and report aimed toward achieving stabilization and diminishing the seasonality of employment in the construction industry, partially offset by $118,000 availability of funds from prior years. The labor mobility and bonding programs under Sections 104 and 105 of the Manpower Development and Training Act were extended by the Congress in its 1968 amendments to the Act for an additional two years. In the years in which these programs have operated they have provided an important element in the Department of Labor's strategy for dealing with the problems of rural-urban migration and have made possible the placement in useful jobs of people who could not obtain bonding through commercial channels. Elimination of the bonding program renders virtually meaningless Section 251, Correctional Institutions, of the Manpower Development and Training Act, and proscribes an important experimental contribution to the war on crime. The study of seasonality of employment in the construction industry, newly authorized by Title IV of the 1968 Manpower Development and Training Act, is recommended to permit the Department of Labor to comply with the mandate of that legislation that the Secretary of Labor and the Secretary of Commerce, jointly, shall study, investigate, conduct research and prepare a report containing their findings and recommendations for submission to the President and the Congress. LANGUAGE The Committee recommends that langauge authorizing two-year obligation authority for this appropriation deleted by the House be restored. The House action restricts the use of the appropriation to only one year of availability rather than for two years as authorized by the enabling legislation (Section 305 (d) of 42 U.S.C. 2571 et seq.) which provides that the "Funds appropriated under this Act shall remain available for one fiscal year beyond that in which appropriated." This appropriation requests funds to provide for experimental, demonstration and research activities authorized under Title I of the Manpower Development and Training Act of 1962, as amended. The experimental, demonstration and research efforts are by nature "experimental" and as a result the two-year obligation authority was used to insure that obligational authority once appropriated is fully utilized. Experimental and demonstration projects have historically averaged approximately 15 months in duration and experience indicates that during fiscal year 1970 approximately $1,000,000 will be available for use from prior year funds, under the existing appropriation authority. This would be sufficient to provide services to an additional 2,500 persons. No part of the funds under this two-year obligational authority is used for payment of Federal salaries and related costs. Funds are used only for purposes of a direct program nature. Without the two-year availability of obligational authority it will require that projects be completed in the fiscal year in which the funds are appropriated and will severely limit the capability of the experimental program. BUREAU OF APPRENTICESHIP AND TRAINING SALARIES AND EXPENSES 1969 funds available (NOA). 1970 budget estimate____ House allowance Committee recommendation $9,418, 000 6,532, 000 6, 532, 000 6,532, 000 The Committee approves the House allowance of $6,532,000, the full amount of the budget request and a reduction of $2,886,000 from the funds appropriated for 1969. The amount includes $91,700 to cover mandatory increases. The major part of the reduction below 1969 is accounted for by transfer of activities to the Office of the Manpower Administrator for on-the-job training activities. The remainder includes a reduction of 30 positions from 520 to 490, due to a reduction in the number of new apprenticeship programs from 2,400 to 2,300. The Department has assured the Committee that the 490 positions in 1971 will permit an expected increase in the total number of apprentice participants, accessions and completions due to increased openings in already established programs. UNEMPLOYMENT COMPENSATION FOR FEDERAL 1969 funds available (NOA). 1970 budget estimate_ House allowance Committee recommendation $148, 200, 000 135, 000, 000 135, 000, 000 135, 000, 000 The Committee approves the House allowance of the full budget estimate. $135,000,000, a reduction of $13,200,000 below the appropriation for 1969. The reduction from 1969 is due to part of the 1969 appropriation, $16,946,000, being used in the latter part of 1968 for payment of 1968 benefits, as authorized in the appropriation language. The allowance will provide funds for an increase of $3,746,000 in higher average weekly benefits in 1970 than in 1969. The Committee concurs with the House allowance of the full budget estimate, $600,000, a decrease of $700,000 from the funds available for 1969. This appropriation provides work adjustment assistance to workers in the form of weekly adjustment allowances to employees partially or totally separated from firms which make products affected by the operation of the U.S.-Canada Automotive Agreement. Trade adjustment assistance is payable under certain conditions to workers who lose their jobs as a result of an increase in imports. Such payments are made in accordance with the provisions of Title III of the Trade Expansion Act of 1962. The reduction results from limitation of the funds to a payout operation for claimants who became eligible for benefits prior to June 30, 1968, after which date no new petitions have been accepted in accordance with existing legislation. It consists of $665,000 due to the fewer number of claimants still entitled to benefits and $55,000 in costs of administration. The reduction is partially offset by an increase of $20,000 due to a slight increase in the average weekly allowance payments. BUREAU OF EMPLOYMENT SECURITY SALARIES AND EXPENSES 1969 funds available_ House allowance_. $23, 696, 000 18,766, 000 18, 766, 000 18,766, 000 The Committee recommends $18,766,000, the full amount of the request approved by the House and $2,172,000 below the funds authorized for 1969, to be derived from the Unemployment Trust Fund. There are no funds requested or approved in 1970 for appropriation from general funds of the Treasury. In 1969, $2,758,000 was appropriated from general funds. Thus, the total reduction below the 1969 funding level is $4,930,000. $3,710,000 of the reduction reflects a transfer of activities to the appropriation "Office of Manpower Administration, salaries and expenses". The remainder of the reduction consists primarily of increased productivity, $361,500, and employment reductions, $874,000, to absorb mandatory increases. GRANTS TO STATES FOR UNEMPLOYMENT COMPENSATION AND EMPLOYMENT SERVICE ADMINISTRATION 1969 funds available... 1970 budget estimate House allowance__-. Committee recommendation_. $604, 073, 000 657, 700, 000 630, 772, 000 657, 700,000 The Committee recommends $657,700,000, the full amount of the amended request and an increase of $26,928,000 over the House allowance and $53,627,000 over the funds available for 1969, to be derived from the Unemployment Trust Fund. The increase of $26,928,000 over the House allowance is due to an amendment submitted to the Congress by the President on November 14, 1969, subsequent to House action on the original request. The need for the amount of the amended request was reported to the House but could not be submitted under the legislative authorization then existing which changed the collection of Federal Unemployment Tax Act taxes from an annual to a quarterly basis effective with the first quarter of calendar year 1970. The legislative authorization has now been. amended. As a result, sufficient funds will be available in the account. to provide financing of the full amount required to operate an adequate program. The mandatory increase over funds available for 1969 includes $25,862,000 to provide for the increase in salary costs resulting in Statewide compensation plan changes, $6,077,000 to provide funds for increased cost of Old Age and Survivors Insurance taxes provided by the Social Security Act and increases in State retirement and health benefit plans, $5,228,000 for growth in program coverage and changes in State unemployment compensation laws and higher claims workloads, $4,486,000 for increased postage and local office rents, and $1,235,000 for increased travel expenses due to changes in State laws governing rates of per diem and other travel expenses. The allowance provides $14,665,000 for funding additional resources for computer support required to implement a new cost accounting system, for continuing automation efforts for development of a comprehensive management reporting system, and an increase in the contingency fund for meeting increased costs of administration resulting from unforeseen changes in State laws, increases in number of claims filed and paid, and changes in Statewide compensation plans for all State employees. These increases are partially offset by savings of $6,000,000 due to increased automation of routine clerical tasks and other reductions in operating costs. LABOR-MANAGEMENT RELATIONS LABOR-MANAGEMENT SERVICES ADMINISTRATION SALARIES AND EXPENSES 1969 funds available (NOA). 1970 budget estimate____ House allowance__. Committee recommendation___ $9,011,000 12, 426,000 9,585,000 10, 426, 000 The Committee recommends $10,426,000, an increase of $841,000 over the House allowance and $1,415,000 over the funds available for 1969. Of the recommended increase over the House allowance, $750,000 represents an amendment to the budget, transmitted to the Congress by the President on November 14, 1969, subsequent to House action on the original request. This amendment will provide funds required for the Department of Labor to carry out the provisions of Executive Order 11491, dated October 29, 1969, which strengthens and improves labor-management relations procedures for Federal employees. The Assistant Secretary for Labor-Management Relations will be respon |