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Archived News Release--Caution: information may be out of date.

U.S. DEPARTMENT OF LABOR

Employment and Training Administration

ETA Press Release: Job Training and Employment Programs Facing Deep Cuts [09/10/1996]

For more information call: 202 219-6871

 
	 

The Senate will take up a bill this week that could deny 250,000 people the services they need to compete in today's demanding labor market. The 1997 budget, which already passed the House of Representatives, would cut nearly $1 billion from programs that provide job training and employment services to those most in need of federal assistance.

The budget bill is nearly $1 billion short of the funds requested by President Clinton and could seriously curtail services for adults and youth seeking basic job skills, training, job search and relocation assistance, unemployment insurance services and other support provided through the Labor Department's Employment and Training Administration.

"At a time when the labor market is demanding a more skilled workforce, it is irresponsible for Congress to consider cutting the very programs that could prepare more workers for the new economy," said Labor Secretary Robert B. Reich. "Congress should expand not cut programs and services that people need to make successful transition from school, underemployment and layoffs to productive meaningful work."

In comparison to the President's budget, the appropriations bill passed by the U.S. House of Representatives for the fiscal year which begins on Oct. 1, 1996, would:

  • Cut $246 million from summer jobs programs for disadvantaged youth who need the chance to gain work experience and earn much-needed paychecks;
  • Cut $193 million in support for dislocated workers who lose their jobs due to corporate and military downsizing, plant closings, trade policies and technological changes;
  • Cut $150 million from the Unemployment Insurance Service, reducing customer services available in state and local offices, including aid in filing for unemployment benefits;
  • Cut $102 million in basic job services for low-income adults who needed training and support to become self-sufficient in the workplace;
  • Cut $82 million from the Employment Service which matches job seekers and employers nationwide, including use of America's Job Bank on the Internet;
  • Cut $40 million in support of One-Stop career centers which consolidate employment, training and support services for job seekers and employers; and
  • Cut $25 million in School-to-Work programs for states seeking to provide a smooth transition from education to employment for all young people.
NATIONAL TOTALS

Estimated Cuts in Selected Job Training and Employment Programs
From President Clinton's Fiscal Year 1997 Budget
(Dollars in 000's)



Program 1997
President's
Budget
1997
House Bill
--- Difference ---
Dollars --------- Percent
TOTAL $6,805,000 $5,967,000 -$838,000 -12.3
Dislocated Worker Assistance 1,293,000 1,100,000 -193,000 -14.9
Training for Low Income Adults 947,000 845,000 -102,000 -10.8
Summer Youth Jobs 871,000 625,000 -246,000 -28.2
Employment Service 848,000 766,000 -82,000 -9.7
Unemployment Insurance 2,496,000 2,346,000 -150,000 -6.0
One Stop Career Centers 150,000 110,000 -40,000 -26.7
School-to-Work Opportunities 200,000 175,000 -25,000 -12.5


Archived News Release--Caution: information may be out of date.




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