In Focus

Apr 12, 2013 | Permalink »

President’s Budget Calls for Pathways Back to Work Fund

The President’s budget blueprint released on Wednesday calls for Congress to support employment and job training opportunities for the long-term unemployed and low-income adults and youth through the Pathways Back to Work Fund. Even as the economy recovers, too many unemployed workers and individuals with low education and skill levels face a difficult job market. This legislative proposal, which was introduced as part of the American Jobs Act, builds on the successful, two-year program funded by the American Recovery and Reinvestment Act that provided jobs for about 260,000 people in 39 states and the District of Columbia.

The proposed Pathways Back to Work Fund in the budget includes three components:

$8 billion for employment opportunities and support services for unemployed, low-income adults;
$2.5 billion for summer and year-round employment opportunities for low-income youth, ages 16-24; and
$2 billion for work-based employment strategies with demonstrated effectiveness, such as on-the-job training, sector-based training and programs that integrate basic skills instruction and occupational skills training.

This key employment strategy is still needed to reach those who are left behind as the economy recovers from the Great Recession. Nearly two out of five unemployed workers have been jobless for six months or more. Individuals with low education and skill levels continue to experience unemployment rates that are significantly higher than those of more educated workers. The Congressional Budget Office projects that the sequestration’s automatic budget cuts that have gone into effect are expected to further dampen economic growth and reduce employment by 750,000 jobs by the end of the year.

Subsidized and transitional jobs are a proven way to give unemployed workers the opportunity to earn wages, build skills, and connect to the labor market, while also giving businesses an incentive to hire new employees when they might not have been able to do so otherwise. Researchers who have examined the implementation of American Recovery and Reinvestment Act workforce programs have found that paid work opportunities have been effectively used even for experienced unemployed workers who need to rebuild their confidence and prepare for reemployment.

A mix of non-profit, workforce agencies, and city and state public entities have operated transitional jobs and subsidized employment programs for almost 30 years as discussed in a new paper by the National Transitional Jobs Network and CLASP. If Congress authorizes the Pathways Back to Work Fund, this short-term federal investment would expand those strategies that prepare adults and youth for employment in a very difficult job environment. It’s the right investment at the right time for those who need it most.

Mar 12, 2013 | Permalink »

New York’s Move to Abandon the GED® is a Game Changer

By Marcie Foster

New York State made headlines last week after it announced it would be dropping the GED® as its high school equivalency exam—a move that can only be defined as a “game changer” in adult education. Instead, the state will be working with CTB/McGraw Hill to develop an alternative exam, the Test Assessing Secondary Completion (TASC), which New York believes will keep costs low and allow its Education Department to continue to serve adults and youth seeking to earn a high school equivalency diploma and gain greater economic mobility. New York’s shift to the TASC is one of the most significant developments in adult education in decades. Since 1942, the GED® has been synonymous with high school equivalency in the U.S. and widely recognized by potential candidates, employers, and postsecondary institutions.

New York State’s Education Department viewed this change as necessary after new sweeping national changes to the current GED® test were announced in 2011. In that year, the GED®Testing Service entered into a partnership with Pearson, the world's largest for-profit testing company, to create a new GED® delivered electronically and aligned with college and career readiness standards. Many in the adult education field viewed the substantive “refresh” as a step in the right direction and recognition of the fact that today’s workers need higher level skills to compete for jobs in a quickly changing economy. However, a number of states and advocates expressed significant concerns that the new cost of the test ($120 plus additional fees for retaking any sections) would pose a barrier to access for the millions of individuals in the U.S. without a high school diploma who are predominately low-income.

But New York had a special problem: state law prohibits charging fees for high school equivalency exams. Currently the state covers GED® testing fees for students, but if the state couldn’t afford to pick up the additional cost of the new test, students would be left un-served. The state’s Education Department estimated that, if it continued to offer the GED® as the primary test, the choice would be either to serve far fewer students or appropriate nearly double the funds that they currently spend on the GED®. Nearly 30,000 New York youth and adults passed the GED® in 2011 (about 450,000 students in the U.S complete annually). According to a statement by the New York State Board of Regents Chancellor, “we can’t let price deny anyone the opportunity for success.” In fact, most states strive to keep the test affordable for students to boost educational attainment and economic growth. In a 2012 survey, fourteen states said they used state funding to keep the GED® affordable to students, and most states that charged a flat fee reported charging less than $75.

The role of the GED® may be changing—rapidly—as states strain to provide the same level of adult education services with smaller and smaller budgets each year. The combination of flat federal funding and across-the-board sequestration, which is estimated to cut nearly $30 million from federal adult education funds, accelerates these state budget troubles. While New York is the first to formally switch to a new test, many states (including New York) are also exploring adopting new high school equivalency options altogether, some of which base diplomas in part on skills attained through work and life experiences as well as through college courses. Wisconsin, Washington, and Minnesota stand out as leaders in this policy space; these efforts are explored in detail in a recent brief from the Working Poor Families Project.

New York’s announcement last week was the first, but it’s unlikely to be the last. However, as states, programs, and policymakers prepare for the new GED® in 2014 and explore alternatives, the primary consideration should be to maintain access for the nearly 30 million Americans without a high school diploma or its equivalent and ensure that these alternatives support a continued focus on preparation for college and career success, now essential ingredients to economic advancement in the U.S.

Mar 11, 2013 | Permalink »

House Workforce Bill Moves Forward Amid Rising Tensions

By Neil Ridley, Kisha Bird, and Marcie W.M. Foster

Last week the House Education and Workforce Committee voted to advance a bill that restructures a range of federal workforce programs, including the Workforce Investment Act (WIA). Tensions ran high during the legislative mark-up session and the preceding hearing, signaling a decline in the bipartisan spirit that has animated most reauthorization efforts in the past.

The House majority bill (H.R. 803) consolidates nearly three dozen federal programs into a block grant called the Workforce Investment Fund. Like H.R. 4297, which cleared the committee in 2012, H.R. 803 eliminates a separate youth funding stream, strikes WIA youth provisions including the 10 youth program elements and establishes a new set of common performance metrics without any youth-specific indicators. It also creates an option for states to consolidate additional education and training programs, such as adult education, into the block grant. Although the bill strengthens planning requirements and shared performance accountability provisions, it removes the priority of service for low-income adults and other safeguards for individuals with barriers to employment.

By contrast, the House minority bill (H.R. 798) introduced by Rep. John Tierney, Rep. Ruben Hinojosa and Rep. George Miller requires states to streamline and coordinate the use of workforce and education programs through unified planning. It expands the range of training options available for participants, modernizes the adult education system to meet the postsecondary and employment needs of students, and expands priority of service for individuals with barriers to employment and out-of-school youth. In addition, H.R. 4227 authorizes Innovation Funds to support the development and expansion of promising workforce strategies, such as career pathways, industry partnerships, and dropout recovery and re-engagement.

To help advocates and stakeholders, CLASP in 2012 issued A Litmus for Legislation with a set of criteria for evaluating reauthorization proposals. In applying those criteria to H.R. 803, CLASP concludes that the committee-reported bill is expected to shift funding and services away from youth and adults who are most in need of workforce services to more job-ready individuals with fewer barriers. Nothing in the new planning requirements or performance accountability system would prevent such a shift. By eliminating the youth funding stream and other programs, the bill would weaken the capacity to customize services to meet the needs of an increasingly diverse workforce.

The committee-reported bill is likely to move to the House floor within a week for a vote on final passage. As the legislative process moves forward, CLASP recommends that any reauthorization bill should promote multiple pathways to employment and education for adults and youth who are most in need of workforce services. The career pathways approach, which is building momentum at the state and local levels, is a framework for weaving together adult education, training and postsecondary programs and connecting those services to the workforce needs of employers. To increase alignment of services, CLASP also supports adoption of shared performance metrics, use of consistent definitions and reporting requirements, and greater efforts to minimize the burden associated with eligibility determination and verification across various programs.