Department of Labor

Congress is considering budget reductions and rescissions affecting the Labor Department. Although about two-thirds of Labor's 1995 budget of $34.3 billion is earmarked for mandatory spending on income maintenance programs, GAO testified that several employment training programs--the Job Training Partnership Act Title IIC Program for Disadvantaged Youth, Job Corps program, and Title III (Economic Dislocation and Worker Adjustment Assistance Act)--might be candidates for budget review. These programs have either received increases in fiscal year 1995 funding, have had some concerns raised about their effectiveness, or have demonstrated difficulty in spending prior year allocations. They represent sizable investments in socially laudable objectives and the total funding for these programs is only a fraction of resources needed to serve the entire eligible population. Nevertheless, they may warrant review during these difficult budgetary times. In addition, other reductions may be considered through congressional deliberation on proposals to consolidate federal job training programs, repealing the Davis-Bacon and Service Contract Acts, not renewing the Targeted Jobs Tax Credit program, and implementing administrative changes for enforcing the Employment Retirement and Income Security Act.