Press Release: Interim-Final Rule: The Workforce Investment Act

Office of Public Affairs

CONTACT: Peter Hamm
OFFICE : 202-219-6871 ext. 178
FOR RELEASE: Immediate April 15, 1999

PRESIDENT CLINTON AND LABOR SECRETARY ALEXIS M. HERMAN APPLAUD BIPARTISAN EFFORT TO LAUNCH NEW JOB DELIVERY SYSTEM

The most exhaustive reform ever of the nation's employment and training delivery system took a major step forward today with the release of interim-final regulations that will guide state and local governments, employers and labor organizations, educators and community-based organizations in implementing the Workforce Investment Act signed by President Clinton last August. This initiative will overhaul and modernize the job training system, consolidating many separate federal programs into three block grants. It allows the states greater flexibility to serve the needs of their workers.
The Interim-Final Rule, in today's Federal Register, is the product of outreach to thousands of stakeholders through meetings and training seminars across the country. Already, 10 states have responded with draft plans for approval.
"Through the Workforce Investment Act, the American people are going to have a system that provides the opportunities for lifetime learning," said President Clinton. "Skills development has got to be an ongoing process, available to every worker who wants it, if we are to remain competitive in the new global economy. This system will help us do that. And I applaud those members of Congress, Governors and local leaders who have made this possible."
"With the Workforce Investment Act, the Labor Department can help update the nation's job training system to meet the challenges of the new millennium," said Secretary Herman. "As a result of the new more efficient One Stop career centers, workers can find out what skills and training they need for the jobs that can improve their livelihoods."
"The job marketplace will never be the same," said Assistant Secretary of Labor Ray Bramucci, who oversaw development of the rules. "This day is dedicated to the leaders, employers, teachers and service providers who will make this new system work. At the federal level, we're coaches. It was the input of local people that enabled us to produce this document."
The Workforce Investment Act will be implemented by states between July 1 of this year and July 1 of 2000. The Interim-Final Rule is based on seven key principles:

Streamlined services through the establishment of "One-Stop" career centers in every community across the country. These "One-Stops" will provide easy access to services and information for every American and every employer seeking workers:

Empowering individuals with knowledge and information for their own career decisions, and by establishing "individual training accounts" that will allow eligible people to personally select the training that meets their individual needs:

Universal access to the One-Stop system services by offering information about workforce services, jobs and assistance in applying for them to all Americans, in at least one central location in every area:

Increased accountability with public information about performance and by offering incentives to states and local communities for exceeding goals:

A strong role for local Workforce Investment Boards and the private sector by requiring the establishment of business-led boards that will focus on strategic planning, policy development and oversight of the local workforce investment system:

State and local flexibilityfor the Governor and chief elected officials to build on existing reforms and to implement innovative systems tailored to meet the needs of local and regional labor markets:

Improved youth programs by requiring the establishment of local youth councils to link local labor market needs and community youth services, and ensure a strong connection between academic and occupational learning.

A NEW WAY OF DOING BUSINESS
The format, and the substance, of the Interim-Final Rule reflects the Administration's commitment to regulatory reform and to writing regulations that are user friendly and in plain English, and in a question and answer format to make them easier to use. Further, to provide greater flexibility for state and local partners, these regulations don't include all the procedures mandated under the Job Training Partnership Act and other programs. As a result, they are only half as long as the regulations they replace.
"These are not your grandfather's regulations -- they're ten times the power at half the size," Assistant Secretary Bramucci said. "We insisted from the start in producing something that was a little different from the norm. I think we succeeded."
The Department has provided for a 90-day comment period, during which officials will meet with stakeholders to describe the process for implementing the Workforce Investment Act and solicit comments on how to make the regulations more effective. Final Regulations, incorporating the comments received and the experience of the early implementing States, will be published by the end of 1999.
Governors were authorized to submit plans beginning April 1. And already, 10 have: Vermont, Florida, Indiana, Kentucky, Louisiana, Nevada, New Jersey, Pennsylvania, Texas and Utah. The plans are now under review by the Department of Labor and other federal agencies at the Departments of Housing and Urban Development, Health and Human Services, Education and Agriculture.
UNPRECEDENTED TEAMWORK
The Workforce Investment Act was the product of extraordinary close cooperation between Democrats and Republicans in Congress, led by Senators James Jeffords (R-VT); Mike DeWine (R-OH) Edward Kennedy (D-MA) and Paul Wellstone (D-MN); and Congressmen William Goodling (R-PA); Howard McKeon (R-CA); William Clay (D-MO) and Dale Kildee (D-MI). It was the culmination of more than five years of efforts by former Secretary of Labor Robert Reich and Secretary Herman.
"There are a lot of people who deserve credit for getting us this far," Secretary Herman said. "Members of Congress put aside their difference, rolled up their sleeves and went to work. The Governors and their National Governors Association were extremely supportive. And my predecessor, Secretary Reich, never lost hope that this could be accomplished."
During the eight months leading up to the publication of the Interim-Final rule, thDepartment established an Internet website (http://usworkforce.org) to encourage comments; published a White Paper to describe goals and principles; hosted Town Hall meetings across the country attended by more than 2,000 people to solicit comments on the key reforms; distributed planning guidance to the partners and stakeholders for States to use in developing their own 5-year strategic workforce investment plan; and conducted Workforce Investment Act training for more than 2,000 professionals.
The Workforce Investment Act, upon implementation by states, will replace the Job Training Partnership Act, and establish a network of local systems delivering services to youths, adults including veterans and dislocated workers, and employers - to increase the employment, earnings and skills of the nation's workforce.
It continues programs such as the Job Corps; Native American programs; Migrant and Seasonal Farmworker programs and Veterans' Workforce Investment programs. The Act rules also provides for Youth Opportunity grants; technical assistance to states and local areas; demonstration, pilot and other special national projects; program evaluations and National Emergency grants.
It also reauthorizes Adult Education and Literacy programs; amends the Wagner-Peyser Act, links programs like the Trade Adjustment Act, North American Free Trade Agreement Transitional Assistance program and the Welfare-to-Work program with the rest of the system and reauthorizes Rehabilitation Act programs.

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