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TITLE. The New.CETA; A Sensible Approach -.=toFrogram7WOrk.. . : ,_-

INSTITMTIO .E,Mploymntand Training Administration (DOW,Washington, D.C.

1111,TE- "- P191-J'---NOTE 25p.; For related dOcumbnts, ..see. DD 0 9 551 and liD.

019 55E-560 Photographs may net re --'- AU69clearly

D9c0mENT RESUNIr

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Making'the Jobs ,

EDRS'PRICXDESCRIPTORS

IDENTIFIERS

ABSTRACTThis booklet describe. pecific ___-osed and/

implemented strategies for daling'with some` of the problems-tountered inthe,CETA prOgram.4These :tetrat 4ies are directed toward

helping, those_ who ne,A help Most;'(2). .creating a lobsprogram that Cues where the jobs are:- the privat sector; (3) letter.-.Management, delivering mores ,lob, training, and jobs. for eriery7dollar'invested-in CETA by taxpayers; and (4) cracking down on fraud anda-bUse. TheY include special -youth .programs tougher el gib.ilityrequirements, an increase in.on7the,lob-training,-chanqingtop levelmanagement,thesetting up of special monitoring units, and'a'-

-strengthening of law enforcement efforts (n)

MF01/PC01.Plus _Postage.*Change Strategies--; *Employment'programs; JobTraining pli,tR6 J,ob 'mining; ProgramAddinitratioW*PrOgram CoOrdination;..*ProgramDevelopmentrogram Improysthent;- Staff lnprovement;.*Work Experience Frograis; Youth EmOloymnt*Comptehensiye,EmploYten and- Training Act

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******** *** *,*.Reproductions supplied by Fxrf3

from tne original iocumpt.***- ****************************,

.can made

U S DEPARTMENT OF HEALTH,EDUCATION &WELFARENATIONAL INSTITUTE OF

EDUCATION

THIS DOCUMENT HAS BEEN REPRO-DUCED EXACTLY AS RECEIVED FROMTHE PERSON OR ORGANIZATION ORIGIN-ATING IT POINTS OF VIEW OR OPINIONSSTATED DO NOT NECESSARILY REPRE-SENT OFFICIAL NATIONAL INSTITUTE OFEDUCATION POSITION OR POLICY

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The Secretary of L.bor speaks

e-n jc bs-program hat-does'more than make work.. Weneed a jobs program that makessense, We need a jobs programthatniakes workers ounof the job-less by training them,in new skills,and then by giving their new skillsa chance. That is the only sensibfedray to lay a new foundation for fullemployment in a stable economy."

'Pi"When Congreas passed, and thePresident signed, the Humphrey-Hawkins bill, our nation made acommitment to achieve full em-pleyment in a stable economy.

"The only way to cut unemployMentand cut Inflation at the same time iSto increase productivity and fightwidespread waste in the icEvery penny of waste is a penfinflation. And one of the most-costly sorts ot waste isthe WAsteof human resourcespeople whowant to work but can't find jobs.orpeople who cannot produce at theirfull potentialbecause they simplyhaven't been taught the skills thatour economy need. For America,-every dollar of good training andjob experience i§ a noun invest-ment.

-H_In_the4asttwojyears_lhiS.,1___.klMinittration- haS- reducedunemployment ratO%-;. A

,...sizablOieee'Ofthat gain.WasMade' by. CETA, which has, created

300;000 iobS.:.arid training slots',-Since. May eflb77.It's a beginning,''b'ut .ifs,not:eneUgh.

"When this Administratientook .over ETA, the. jobs.prograrn hadnot been working up to its: potent_The'CE.TA we inherited failed to putenough emphasis:on helpingthe-people"'whe. need- it mot.CETA--yfailed td,WOrk efficiently with private.,...businesses. CETA needed better-management, tougher mariae#-worst.

"The NEW CETA is an importantweapon in the fight fer full emplOyment in a stable economy. TheCongreSsional Bud §61 Office hassaid that CETA is the, most efficienttool the Federal gov6rnment hasfor reducing unemployrnent That's

. why CETA'i one of themost irn7! portant econetc tools to keep in,shape. A carpe ter with a brokenhammer cannot repair much dam-age or build many new homes

ay Enerstones 0CETA:

r

"First,directing help anditrining tothose who need it mot,' so that We

in substantially increase the skillslevI and "productivity of our work-,force.Li

Second,: dir ctiny the jobs Oros--grantO.Where.the jobs are ,the-private sector : r

`What this means for oETA is that -we must eliver the most usefultraining d jobs, to the rightpeople, for the least Money. Thedemand for these programs hpsexploded in the past threeyearssuch.programs were an in- I,significant item in the U.S. budgetteR years ago and now total almost$12 billion. Growth has been sofast th t:planning in the past has

----Ornetimes been poor, and devel-opmerg uneven. For the last-two'years, we have been identifyingproblems in CETA and trying tofind solutions.

"Third, cracking doWn on wasteand fnismanagement, so we cankeep our,corhmitrient to theunemployedwho ber*fit fromCETA service, bt4t no from CETAwasteand our commitTent to thetaxpayer who supports CETA.

"Fourth, protecting tax dollars fromfraud and abuse. We are simply'not willing to close our eyes to im-,proprieties that drain dollars awayfrom the real work of CETA.

We believe this represents a sen-sible new approach to making`ourjobs program work.

"That' what the NEW CETA is allabout"

ETA speaks

-"ThitbWkl-et--d-es-c-ri Otte-mak* cornerstones of our new jobspeogrars: it points &it hOw each ofthe chatiges respdhcls to failures orinefficiencies in the CETAThis Ad-*ministrafitin inhetited--,defects thatw haveldentified over the pasttwo year§. We have not yet foundthe solutions for every administra-tive prbblem, nor can we now

uarantee,that each problem has:ermanent solution. But the NEWETA represents a sensible new

approach to solving the foul cbiggest problems.

"The first goal will be. GETTINGHELP TO THOSE WHO NEED ITMOST the past, CETA jobs andtrainin have not always gone tothose who needed them most. TheOLD CETA allowed help not only forthose without jobs and Withoutskills, but sometimes allowed theuse of CETA funds to supplementthe salaries of well-trainecy, middle-income professionals. The NEWCETA will end that kind of waste.

"the eband goal will be to directthe jobs program to where the jobsarein the private sector In the

Assistant

long run a balance sensible pro-gram must make to s in businessand industry the first priority TheNEW CETA does that

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"The third goal 0611 be making taxdollars do more That means lesswaste in Washington.and lesswaste in CETA programs aroundthehountry In the,Past, tETA hasnot maintained careful enough cdn-trol. More information must go backand forth between the programsand th Me managers, tETA must id .program successes and duplicatethem; and,find program failures -,and .core ct them. The NEW CTAwill do that;

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"The fourb,g will be to curtfraud arid ata Even /hough thefraud ha0,-.i been on a largescale, every, dollar lost throughfraud is important. It is not only a'dollar loSt to the important work we

e doing. It also hurts CETAm rale and breaks CETA' contractwit the American t pay r. TheNEW CETA will vig rously and sys=teMatically attack fr ud and abuse,to put an end to that kind of waste."

ItErhest Green

ary of Labor for ErnplOyrnept and Train' i g

people specent poliblidFresear61-1rcns that the American opJe

only sup t The gas nde f the NUVICETA. 4ofiduct it une 19?8, for the

Departm nt of Labo he Public.Resdarc sarn ed 2,009adfi s, 18 or older, .nationwide'.

The poll fclun hat:-Americans lieve that, ur

ri me has a responsi-o help the jobless up-,

Wherf

4ade-their skills-through jobsttraining pr ramp.

American An, a widemargiffthink of govern-ment-created jobs as "doingsomething useful" ratherthan "make-wQrkt"Amecidans think that the in-come cutoff is a fair way totighten eligibility for CETAhelp, so that help can go tothose who need help most.

(

Apr can't find jobs because they lack basicskills, s ui the governmentprow r isn't Tia federal governmentresponsibility?"

54% Yes, our gove nme9should take' action!

'F 36% No9 it's notfederal responsibility!

A

Do AMericansbelievethai government- created jobsare useful Work or just ma ce-work?

6%sle world In governmgovernment

ed jobs are doing somethinguseful."

"People working ingov4rnment- Created

Jobs are doingma_ e-work."

55%Fair

Is an inc one cutoff a fair waswing t thosemost in n

r.get the jobs?"

Acr"';',;',77:m.,-.J1hottski\n,11\kNkht\W'6 1%

Don't.know

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%

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GETTING CETA 0 V TARGET:HELPING THOSE WHO.NEED HELP 'wpm-

A JOBS PROGRAM THATGOES WHERE THE JOBS ARE: THE PRIVATE SECTOR

BETTER MANAGEMENT;DELIVERING MORE JOB TRAINING-AND JOBS-FOREVERY DOLLAR INVESTED IN CETA BY TAIPAYERS

THE NEW .SETAMore peOlia..hel for eifery tax do rexperidet

People~ trained for every$100,000 expended on training

2.25 1980

50.76 FY1979

tale new approach ° making the lobs prograi-n work,

The NEW CETA triusidirect helpand training to those who need itmost, ndt just because it'stheionlyfair way to _run CE-TA, but also be-cause' it's the best way, to substan-tially increase the skills level andthe.productiVity of the AmericanworkforGe.",' .Ray MarshallThe NEW CETA has taken-actionto make sure that help goes where.help is needed. The NEW CETA isbetter designed to provide trainingand experience for the hardest toemploy.

Tough eligibility requirements.Many CETA jobs in the past wentto those who needed them least.NEW -CETA jobs will go to those .:Who need them most. The onlypeople eligible are those with seri-ouS job and training

Under new regulation CETAcan fulfill its basid:mission: fighting.chronic unemployment by increas-ing the skills and job experience ofpeople who want to work, but. areunable to compete or find jobs inour economy. : :4-

Halting the use of -C-ETA moneyfo supplement the pay of middle-:income workers. The NEW CETAdo this.by setting a ceiling on the-wa e rates that-can- be paid to - . ,CETA worker. For example, a$7,000 CETA payment'for a job' ortraining position may rib longer be ..added to a $10,000 salary to makea $17,000 job. And still further, theNEW CETA requires than al11513screated be at the entry level..4 Stopping public. employerS fromusing CETA workers as substitutes:,for regular employees. The NEW

ETA stops this practice byautomatically ending CETA jobs, inmot .cases, after 18 months. Noonemaystay in a public servicejob after that time. Thus, traineeswill.continUe- to come through thesystem. ..-0 Matching training with-real jobneeds. The NEW CETA will -pUt astrong emphasis on supportingtraining fOr the: kind of jobs that areactually available_

0. Getting jobs for the newly-trained. Instead- of just trainingWorkers and leaving them to findjobs by themselves, the NEW

ETA makes. job placement part ofthe job and. training paCkage.

A permanent and comprehen-sive program of employment as-sistance to the most disadvan-taged.

0: Helping workers get off welfare.Under the new welfare reform pro- 0 Gelposals CETA will offer welfare re- who rcipients who are the heads of inclucfamilies training and a chance for advarjobs in private businessor, if chantnecessary, in public service em- from !ployment. Together with supple-4 ThesEmentary income assistance, the creatEjobs training program will assurewilling workers incomes above the ppoverty line.. . -y

Getting the jobs to areas hit tilhardest when unemployment rises. 0The NEW CETArcreates .a jobs yprogram that can respond auto: inmatically tolrice6a8es in the na- -ytional unemployment rate. C

i "-mAMAIIP

For young peopleThe NEW CETA

ograms to give dis-mg people a better .,nsfully making it) the labor market.prams-expected to10,000 jobs are:

itive Entitlementt (YIEPP)m.unity Conserva-provement Projects

loyment and Train-Is (YETP)It ConservationC)

Mar

A sensible new approach to making the jobs program work

A JOBSTHAT

THE JOBSTHE PRI

SECTOR

1111' 'EREE:

"In the long run, a balanced, sensi-ble jobs program must make jobsin business and industry the firstpriority."

Erne stiGreenIn Ame iTica, our economic healthdepe--_ s on private. enterprise.That's where the jobs are. It is criti-cal that, in training the disadvan-e

=taged and the unskilled to take partfully in American-life, that we trainthose.workers for real opportunities'in the private sector. The OLDCETA failed to work closely withthe private sector. The NEW CETAwill work in close partnership with ,business.

The AdMinistration is laying afoundation for private sector initia-tives, to strengthen the private sec-torof the American economyandachieve full employmentin a stableeconomy:

Giving buSineSses tax credit in-centives to hire and train the disad-vantaged. TwO new provisions ofthe 1978 tax law allow employerscredit on their tax hills for half ofthe first $6,000 in wages paid inthe first year of an eligible worker'semployment, and a quarter of thefirst $6,000 in the second year.More disadvantaged job seekerswill now be covered under thesetax breaks, since the new TargetedJobs' Tax Credit expands the WINtax credits to include disadvan-

taged young people, Vietnam-eraveterans, young .people in coopera-tive edudation programs, thehandicapped, and others.

Giving business a voice in jobtraining. The NEW CETA includesa $400 million "private sector initia-tive." The OLD CETA failed to bringin leaders from the private sector tohelp make programs work. But theNEW CETA establishes private in-dustry councils that local businessleaders can help design training_programs, help encourage suc-cessful placement of trainees., andhelp direct programs into the kindsof occupations whei they aremost sorely needed.

Giving training where it counts:on the job. The NEW CETA in-cludes a major expansion in on-the-job training. The Department ofLabor is working With the CETAprime sponsors and business or-ganizations to make the new on-the-job training programs workwithout the red tape the OLD CETA.required, and with faster paymentto cooperating employers.

Matching the workers with thejobs. The NEW CETA will con-tinue-- and will strengthentheJob Service. The Secretary ofLabor will soon submit to Congressa report suggesting amendmentsto the Wagner-Peyser Act thatwould improve the Job Service inseveral ways.

THE NEW CETA'Al increase ire 'ON-THENJOB-TRAINI

tiLCETA participants inon-the-job-training

291,600

6

f

1977 1980

THE NEW CETAMore emphogi$ gn i training

WORKEXPERIENCE

23%

TRAINING 39%

PUBLIC SERVICEEMPLOYMENT

38%

WORKEXPERIENCE

19%

TRAINING 50%

PUBLIC SERVICEEMPLOYMENT

30%

FY 1977 FY 1980

'The percentage of CETA participiani&intraining programs will-increase dramatically. tr.

A sensible new approach to main the jobh program work

'"Wasteln thelement in

',Whether iti

ono .y is a-crucialinginflatiot7usines$ or goy-

.

beernment it can bp crippling. Goodmarnagementip the .hest way to gut.out inflationarywasWAnd godmanagement means rtio.e4than-simpl cost and accounting cian,'trois..4 means Idiov:vin9 what prol

- grams are working, finding out -hwand duplicating those suc,cessmeans finding failures and eliminat'ing them: Ernest Gruenn

The OLD G4ETA- inherited b' thisAdministration often allowed thegood programs and the bad pro-grams to co- exist, with little effortto learn.from the good or eliminate-

, the bad. In the vEyv CETA wehave taken action to, assure godmanager-vont at all levels, from the'national tip the Joe* Some of theactibns4e have taken include:

Changing management at thetop. The NEW CETA is strengthen-ing the top level management andwill demand better-communicatign'of policy to the regional offices.The NEW CETA will have anombudsm4n to make sure thatproblems not solved by establishedmethods will be given high -level at-tention.. Putting civil service reformto work, the.NEW CETA i laundh-ing. new pay and performance

(evalUation systems to insure thatexecutiyeS and managers are ac-countable.

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CETNwill rebulfly simplify its regu-

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latio-s. It 011 alsb,regularly reVieweac part of the ordaniz-_-- ion to testits of ectivaness and wh ther its

:Structure still Meets curr nt nee.--4 , A

Helping localmanagers to be--successful: The NEW CETA legis-lationestablishesfi flew office formanagement assistance. Onemajor functronlotit will-be to he_ptrain and give technical' assistanceto local prdtram,managers. Thebest way td do,that is to help thelocal managers learn from eachother by choosing, successful pro-grams'and offerinig then, as-morielS". '

Getting inform$tion to those whoneed it when they need. it. In thepast, critical management infOrma-fion was-inadequate bottrfor themanager and the re4uirements ofthe program. The NEW CETA issetting up an automated Mapage-ment Information System. It4illgive managers a detailed profile ofthe program participants,- track

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their p ogress, and measure the ef-fect of he program on later income-and j experience. This informa-tion will be available on actircely__ .and routine basis. The NEW CETAmanagers will new be able to plan,.control and evaluate CETA pro-grams from timely data. For exarri.--'pie, we` shall now be. able to seehow CETA prime sponsors are cop-ihOwith the needs of variousgroups of workers, and which partsof a CETA program are the mostCutting red tape.. The NEW

successful in getting workers jobs.

Helping prime sponisors improve,raanageraent. The NEW10ETApasa system to help assuregood ,pmanagement by CETA primesponsors. One Part of the systemhas prime sponsors set up:inde-pendent monitoring units tomake sure-the-sponsors comply

'With regulations and recommendaction when it is necessary. Theunits will polic-g_the programs and

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determi hOw effective tale pro-grams at_ . Another key part of thesystem to make good managers isaccountability: requiring that the-prime sponsors be responsible for

.determining that only the eligibileget into their programs. A third part

, of the system is the requirementthat prime sponsors set up tangi-ble goals for.each activity. ThesewillAoe'checked\against the recordof how manyworkers'gotljobs.

Y*

A:senSible new approach :to making:the jobs .-brogra_ work

FRAUABUSE

"Every dollar lost through fraud .breaks CETA's contract with theAmerican' taxpayer. The NEWCETA will vigdrously and syste-matically attack fraud and abuse."

Ernest GreenThe Labor Department has inaugu-rated a program,to eliminate fraudand abuSe, not by waiting until thefraud occurs but by strong preven-tive _action. The actions taken toclean out fraud and abuse include:A, Putting one person in charge.The NEW CETA pOts the InspectorGeneral of the Labor Departmentin charge of all investigation offraud and abuse. The office has

been greatly expanded and reportsdirectly to the Secretary of.LaborIn ,1978 the office started off with67 indictments and 24 convictionsresulting from Labor Departmentinvestigations ottETA and wdrk-ers compensat6g0 programs.

Stopping fraud and abuse beforethey happen...The DOL InspectorGeneral will use a new system, theFraud and AbUse Prevention Sur-vey, to find and correct weaknes-ses in the CETA programs beforethey lead to waste or fraud. In thepast, CETA usually waited untilcomplaints, had been filed to inves-tigate any specific cases. Under.the new system, three-perscin in-

ve-stigatihg teams an investigator,an auditor, ancta program-analy t).Will make random spot.checks oLabor Department programs andgrantees. They will ,look for weak-nesses, and iortiK- swift changes inprocedures where needed.

Improving our Audit Program.The,Department's audit program is

'"undtrgoing a -Complete review toasst. that resources, devoted, toaudit operations are effectivelyutilized and managed. Amanaged audit program providesan important tool to prOgram, man-agers to help them assess the ef-fectiveness of prograrh operationsand assure the prop Or expendittfre

, of funds by CETpYime sPonsbrsApd,contraciors. .

Enforcing the laW. New laws and-regulations are being put into placeto eliminate the abuse of programs

-, at the local level and the ,Ment haS strengthened its en-forcement effortS. $Orne of theTaws and regulations that can stopabuse are:

Conflict of Interest. No memberof :any prime sponsor councilmay vote on any matter whichhas a direct benefkto thickprime sponsor or prirne SPon-sor's business or organizalon.Kickbacks. Noofficer, em-pidOe or agent associatedwith the prime sponsor may so-licit.or accept gratuities,or anything. of monetary value-from any subgrantee, contrac-tor or supplier.

Charging of Fees. No CETAfunds may be used for thepayment of a fee charged toan individual for placement intoa CETA activity.Nepotism. No prime sponsor,subgrantee or employingagency may hire a person in a '.CETA fUnded position if an-

, other member of the samefamily is in an administrativeposition -for that agency.

Political Patronage. No primpsponsor or subgrantee mayselect, reject or promote a ptar-ticipant, subgrantee or contrac-tor based on political affiliation.

Political Activities. No pro-grams may involve politiCal ac-tivities. .

Lobbying Activities. NO 'CETAfunds may be used to attemptto influence members of Con-gres, State or local legis-lators.

Theft or Embezzlement; Im-proper Inducement; Obstruc-tion of Investigation. The crimi-nal'provisions of 18 U8C 665shall apply for any individualwho embezzles, steals,obstructs an investigation orinduces any person to give upany money or anything ofvalue.

Ineligible CETA workers. Know-ingly hiring an ineligibledividual for a .CETA Public Ser-vice Employment job is now acriminal offense.

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U.S. Departmen of Labor