Box 7, Folder 11, Document 17

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JOHN W. GARDNER August 1968

1819 H STREET,N. W.



The purpose is to provide public and private employment
opportunities in community service occupations for unemployed
and low-income residents of urban and rural poverty areas in
order to relieve severe problems of unemployment and under-
employment, to prepare such persons for jobs in the private
sector of the economy, to increase opportunities for local
entrepreneurship through the creation of local service com-
panies, and to meet critical national needs for community

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 programs
that carry out the purpose of this Act under existing programs
such as the Manpower Development and Training Act or the Economic
Opportunity Act.

= of the remainder, the Secretary can reserve
50% for direct funding of community employ-
ment and training programs.

== not less than 50% is reserved for state plans
using criteria specified in this Act. (See
Section on State plans).

== each State shall receive a basic sum of $1
million plus such additional funds as the
Secretary shall determine under the Act's
allocation guidelines.

TELEPHONE: 202 293-1530

no state may receive more than 15% of
the funds appropriated.

in alloting the funds among the states,
the Secretary of Labor shall consider:

(a) the State's population

(b) the proportion of low-income
families in the State

(c) the unemployment in the State

a state's allotment can be realloted
after nine months of the fiscal year.

Eligible Programs and Supportive Services for Public
Service Employment

-- jobs in community service, in such fields as health,
public safety, education, housing, etc. Also programs for
beautification and conservation. -Priority shall be given to
projects which are labor intensive in character.

= activities to assure persons employed in such jobs
have further education and supportive services (counseling,
medical care, transportation, etc.)

=< loans for purchase of supplies and equipment 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 of the
cost of programs.

Requirement for Applicants

Each applicant for jobs and supportive services funds
must provide a community employment and training plan covering
the following:

== analysis of priorities of unmet community

the education, training, and supportive
services which will improve the ability
of the participants to compete in the job

eligible areas and type of work to be

training of supervisory personnel.

future career opportunities to insure
these are not dead-end jobs.

coordination with other federally assisted
manpower or economic development activities.

State Role

50% of the money must be channeled through
State plans.

Up to 25% of the funds received by a State
may be used for jobs in State agencies.

All local applications that go directly to
the Secretary of Labor must be submitted
to the States for comments.

State Plans

Each State must establish a State Manpower Coordinating
Council to prepare the State plan. The Secretary of Labor must
approve a state plan if it meets criteria, such as --

= an equitable distribution of funds on
four poverty, low-income indicators.

an analysis of needs in the state for
community services.

coordinates all similar jobs programs.

provides planning and technical assistance
to localities.

The Secretary of Labor may approve only the part of the
State plan which meets the above requirements, and operate the
remainder of the State plan portion through direct Federal and
local grants.

Program Preferences

The Secretary of Labor and State Councils (wherever practicable)
shall encourage and give preference to applications that involve:

a local service companies owned in part by
low-income residents of the areas.

== public safety employment programs.
-- heads of households.

The Secretary shall give preference in his other private
on-the-job training programs to qualified participants in.
community employment programs.

Eligible Areas and Prime Sponsors

The Secretary of Labor shall designate urban and rural
areas containing high concentrations of unemployed or low-
income persons. A community program area designated under
the manpower section of the Economic Opportunity Bee shall
be an eligible area for this Act.

For each eligible area the Secretary or State council
shall designate a single public or nonprofit organization
to be a prime sponsor that receives all funds in that area.
The Secretary of Labor, to the extent practicable, shall
assure the prime sponsor receives Federal funds under other
manpower training acts such as MDTA, Demonstration Cities,
OEO, the Social Security Act, etc. There is a by-pass pro-
vision 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 otherwise be performed.
Wages must be based on the highest of the 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 participants,
to the extent feasible. Where a program involves physical
improvements, preference must be given to those which are
used by low-income persons. Programs should seek to eliminate
artificial barriers to employment and occupational advance-
ment, and particular attention should be given to altering
civil service requirements which restrict employment oppor-
tunities for the disadvantaged.

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