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THE URBAN COALITION ACTION COUNCIL August 1968 JOHN W . GARDNER CHAIRMAN 1819 H STREET. N . W. WASHINGTON.D.C.20006 FACT SHEET ON PROPOSED COMMUNITY EMPLOYMENT AND TRAINING AMENDMENT TO MANPOWER DEVELOPMENT TRAINING ACT EXTENSION (S.2938) Purpose The purpose is to provide public and private employment opportunities in com.t-nuni t y service occupations for unemployed and low-income residents of urban and rural poverty areas in order to relieve severe problems of unemployment and underemployment, to prepare such persons for jobs in the private sector of the economy, to increas e opportunities for local entreprene u rs hip through the creation of local service comp a ni es , and to meet critical national needs for com.munity services. Authorizations of Appropriations $500 million is authorized for fiscal year 1969, $1 billion for fiscal year 1970. This will create 600,000 jobs over two years. Distribution of Funds The Secretary of Labor may transfer (but not to exceed) 40% of the funds appropriated to private employers for p rograms that carry out the purpose o f this Act unde r e x isting programs such as the Manpower Development and Training Act or the Economic Opportunity Act. of the remainder, the Secretary can reserve 50 % for direct f unding of community employme nt and training progr ams. not less than 50% is reserved for state plans using criteria specified in this Act. (S ee Section on State plans). e a ch Sta t e sh a ll r e c e i ve a b as ic s um of $1 mill i on p lus s u ch a d d i t i on al f u nds as t h e Secre t a r y s h a ll d etermi n e under t he Act' s allocation guide lines. T ELEPHONE: 202 2 93-1530 . \. @ �-1 - 2 - no state may receive more th a n 15 % of the funds appropriated. in alloting the funds among the states, the Secretary of Labor shall consider: (a) (b ) (c) the State ' s population the proportion of low-income families in the State the unemployment in the State a state's allotmen t can be realloted after nine months of the fiscal year. Eligible Programs and Supportive Services for Public Service Employme nt jobs public safety, beautification proj ects which in community service, in such fields as health , education, housing, etc. Also programs for and cons ervation. - Priority shall be given to are l abor inte nsive in character. activities to assure persons employed in such jobs have further education and supportive services (counseling, medical care, transportation, etc.) lo ans for purchase of supplies and equi pment to supplement projects carried out by the participants. The Secretary of Labor may provide assistance either in the form of grants or contracts and may pay all or part o f the cost of programs. Re quire me nt for App licants Each applicant for jobs and supportive services funds must provide a community employment and training plan covering the following: analysis of priorities o f unmet community n ee d s . the education , t raining , and supportive services which will improve the abi li ty of the participants to compete in the job market. e li gib l e are as and type of work to be perfo rmed . �- 3 - training of supervisory personnel. future career o ppor tunities to insure these are not dead-end jobs . coordination with other federally ass isted manpowe r or economic d evelopment acti vities. State Role 50 % of the money must be channeled through State p l ans . Up to 25 % o f the funds received by a State may be us e d for jobs in State agencies. All local applications that go directly to the Secretary o f Labor must be submitted . to the States for comme nts. State Plans Each State must establish a St ate Manpower Coordinati ng Council to prepare the State plan. The Secretary of Labo r must approve a state plan if i t meets criteria, such as -an equitable distribution of funds on four poverty, low-income indicators. an analysis of n ee ds in the state for com_munity services . coordinates all simi l ar jobs programs . provides planning and technical assistance to localitie s. Th e Secre tary of Labor may approve only the part of the State plan which mee ts the above req ui rements , and operate the remainder of the State plan portion through direct Federa l and local grants. Program Preferences The Secretary of Labor and State Councils (wherever practicable ) shall encourage and give preference to applications that involve: �- 4 - local service companies owned in part by low-income resid__ents of the areas. public safety emp loyment programs. heads of households. The Secretary shall give preference in his other private on-the-job training programs to qualified participants in community employmen t programs. Eligible Areas and Prime Sponsors The Secretary of Labor shall designate urban and rural areas containing high concentrations of unemployed or lowincome persons. A community program area designated under the manpowe r section of the Economic Opportunity Act shall be an eligible area for this Act. For each eligible area the Secretary or State council shall design a te a single public or nonprofit organization to be a prime sponsor that receives all funds in that area. The Secretary of Labor, to the e xtent practicable, shall assure the prime sponsor receives Federal funds under other manpower training acts such as MOTA, Demonstration Cities, OEO, the Social Security Act, etc. The re is a by-pass provision for funding to organizations other than the prime sponsor if this will enhance program effectiveness. Special Conditions No program may result in the displacement of employed workers or impair existing contracts for services, nor may a program result in the substitution of Federal funds for other funds for work that would otherwis e be performed. Wages must be based on the highest of th e following criteria: (a) the Federal minimum wage, (b) the most comparable State or local minimum wage, or (c) the prevailing wage rate in the area for similar work. Programs must contribute to occupational development or upward mobility of pa rtici pants, to the e x tent feasible. Where a program involves physical improvements, preference must be given to those wh ich are used by low-income persons. Programs should seek to eliminate artificial barriers to employment and occupational advancement, and particular attention should be given to altering civil service r eq uiremen ts which restrict e mp loyment opportunities for the disadvant age d. �