Homeless Veterans
Job Retention Goal Under Development for DOL's Homeless Veterans' Reintegration Program Gao ID: GAO-05-654T May 4, 2005The Department of Veterans Affairs (VA) has estimated that as many as 250,000 veterans may be homeless on any given day. Many other veterans are also considered at risk for homelessness because of poverty, lack of support from family and friends, and precarious living conditions in overcrowded or substandard housing. One federal program designed to help these veterans is the Department of Labor's (DOL) Homeless Veterans' Reintegration Program (HVRP)--a grant program that provides funding for employment and training services for homeless veterans. GAO was asked to assist Congress with its consideration of HVRP reauthorization by providing information on DOL's (1) expenditures on HVRP grants and (2) measures and goals for assessing the effectiveness of HVRP. GAO reviewed VA and DOL documentation that included the amounts DOL expended for HVRP as well as information on HVRP grantees and performance goals. GAO also interviewed DOL program officials.
DOL's expenditures for HVRP grants have increased from $9.5 million in fiscal year 2000 to over $18 million in fiscal year 2004. For fiscal years 2005 and 2006, DOL estimates that it will expend over $20 million on HVRP grants each year. Currently, DOL oversees 79 HVRP grants that help provide employment and job training services for homeless veterans. In program year 2003 (July 1, 2003 through June 30, 2004), 63 percent of homeless veterans enrolled in HVRP funded programs entered employment, which exceeds the 61 percent entered-employment goal in DOL's fiscal year 2006 budget. DOL recently reported that for program year 2003, 35 percent of employed veterans served through the program retained their jobs for 180 days. However, DOL is in the process of developing a performance goal for this job retention measure. This goal along with the entered-employment goal will help DOL, Congress, and others evaluate the impact that HVRP has on homeless veterans.
GAO-05-654T, Homeless Veterans: Job Retention Goal Under Development for DOL's Homeless Veterans' Reintegration Program
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Testimony:
Before the Subcommittee on Economic Opportunity, Committee on Veterans'
Affairs, House of Representatives:
United States Government Accountability Office:
GAO:
For Release on Delivery Expected at 2:00 p.m. EDT:
Wednesday, May 4, 2005:
Homeless Veterans:
Job Retention Goal Under Development for DOL's Homeless Veterans'
Reintegration Program:
Statement of Cynthia A. Bascetta:
Director, Health Care:
GAO-05-654T:
GAO Highlights:
Highlights of GAO-05-654T, a testimony before the Subcommittee on
Economic Opportunity, Committee on Veterans‘ Affairs, House of
Representatives:
Why GAO Did This Study:
The Department of Veterans Affairs (VA) has estimated that as many as
250,000 veterans may be homeless on any given day. Many other veterans
are also considered at risk for homelessness because of poverty, lack
of support from family and friends, and precarious living conditions in
overcrowded or substandard housing. One federal program designed to
help these veterans is the Department of Labor‘s (DOL) Homeless
Veterans‘ Reintegration Program (HVRP)”a grant program that provides
funding for employment and training services for homeless veterans. GAO
was asked to assist the subcommittee with its consideration of HVRP
reauthorization by providing information on DOL‘s (1) expenditures on
HVRP grants and (2) measures and goals for assessing the effectiveness
of HVRP. GAO reviewed VA and DOL documentation that included the
amounts DOL expended for HVRP as well as information on HVRP grantees
and performance goals. GAO also interviewed DOL program officials.
What GAO Found:
DOL‘s expenditures for HVRP grants have increased from $9.5 million in
fiscal year 2000 to over $18 million in fiscal year 2004. For fiscal
years 2005 and 2006, DOL estimates that it will expend over $20 million
on HVRP grants each year. Currently, DOL oversees 79 HVRP grants that
help provide employment and job training services for homeless
veterans.
DOL Actual and Estimated Expenditures on HVRP Grants for Fiscal Years
2000-2006:
[See PDF for image]
[End of figure]
In program year 2003 (July 1, 2003 through June 30, 2004), 63 percent
of homeless veterans enrolled in HVRP funded programs entered
employment, which exceeds the 61 percent entered-employment goal in
DOL‘s fiscal year 2006 budget. DOL recently reported that for program
year 2003, 35 percent of employed veterans served through the program
retained their jobs for 180 days. However, DOL is in the process of
developing a performance goal for this job retention measure. This goal
along with the entered-employment goal will help DOL, Congress, and
others evaluate the impact that HVRP has on homeless veterans.
www.gao.gov/cgi-bin/getrpt?GAO-05-654T.
To view the full product, including the scope and methodology, click on
the link above. For more information, contact Cynthia A. Bascetta at
(202) 512-7101.
[End of section]
Mr. Chairman and Members of the Subcommittee:
We are pleased to be here today to discuss employment and job-training
services for homeless veterans through the Department of Labor's (DOL)
Homeless Veterans' Reintegration Program (HVRP). HVRP is a grant
program that funds employment and training services for homeless
veterans, as part of DOL's overall efforts under the Veterans'
Employment and Training Service (VETS). The Department of Veterans
Affairs (VA) has estimated that as many as 250,000 veterans may be
homeless on any given day. Many other veterans are also considered at
risk for homelessness because of health problems such as substance
abuse and mental illness, poverty, lack of support from family and
friends, and precarious living conditions in overcrowded or substandard
housing. Multiple federal agencies such as VA, DOL, and the Department
of Housing and Urban Development (HUD) administer programs that serve
homeless veterans.
To assist the subcommittee with its consideration of HVRP
reauthorization, my testimony today provides information on DOL's (1)
expenditures on HVRP grants and (2) measures and goals for assessing
the effectiveness of HVRP.
During the course of our work, we examined DOL's HVRP grant
expenditures for fiscal years 2000 through 2004 and its projected
budgets for 2005 and 2006. We reviewed our past work on federal efforts
to address the needs of homeless veterans, including related veteran
employment and training services. (See Related GAO Products at the end
of this statement.) We also reviewed VA and DOL agency documentation
that describes the services provided to homeless veterans, interviewed
DOL program officials, and made a site visit to an HVRP grantee that
provides training, education, and housing services in Baltimore,
Maryland. DOL provided us with information on HVRP grantees,
participants, and performance measures. However, we did not perform
independent verification of its data. We discussed the information
contained in this statement with DOL officials, who agreed with its
contents. We performed our work in April 2005 in accordance with
generally accepted government auditing standards.
In summary, DOL's expenditures for HVRP grants have increased from $9.5
million in fiscal year 2000 to over $18 million in fiscal year 2004.
For fiscal years 2005 and 2006, DOL estimates that it will expend over
$20 million on HVRP grants each year. Currently, DOL oversees 79 HVRP
grants that help provide employment and job training services for
homeless veterans. In program year 2003 (July 1, 2003, through June 30,
2004), 63 percent of homeless veterans enrolled in HVRP funded programs
entered employment, which exceeds the 61 percent entered-employment
goal in DOL's fiscal year 2006 budget. DOL recently reported that for
program year 2003, 35 percent of employed veterans served through the
program retained their jobs for 180 days. However, DOL has not
developed a performance goal for this job retention measure, but plans
to do so for 2007. Moreover, DOL has not provided the Congress with
statutorily required reports on program effectiveness.
Background:
VA has estimated that one-third of homeless adults have served in the
armed forces and as many as 250,000 veterans may be homeless on any
given day.[Footnote 1] Further, according to VA, about 45 percent of
homeless veterans have mental illnesses, and slightly more than 70
percent have alcohol and drug abuse problems.
Under VETS, DOL administers specific programs and activities designed
to help veterans obtain employment and training assistance. DOL carries
out its responsibilities through a nationwide network that includes
staff in each of its 10 regions and staff in state offices. VETS funds
three types of grant programs to support veterans--HVRP, the Jobs for
Veterans' State Grants Program, and the Veterans Workforce Investment
Program. HVRP is the only VETS program specifically targeted to
homeless veterans.
HVRP was initially authorized in 1987, as part of the Stewart B.
McKinney Homeless Assistance Act (McKinney Act).[Footnote 2] Congress
passed the McKinney Act in part because of concerns that the needs of
homeless people were not being met beyond their immediate needs for
food and shelter.[Footnote 3] The McKinney Act was the first
comprehensive law designed to address other needs of homeless people
such as physical and mental health care, education, and job training.
Currently, HVRP is authorized under the Homeless Veterans Comprehensive
Assistance Act of 2001 (HVCAA), which provides that the Secretary of
Labor shall conduct programs to provide job training, counseling, and
placement services to expedite the reintegration of homeless veterans
into the labor force.[Footnote 4]
HVRP grants are intended to address two objectives: (1) to provide
services to assist in reintegrating homeless veterans into meaningful
employment within the labor force and (2) to stimulate the development
of effective service delivery systems that will address the complex
problems facing homeless veterans. There are four types of grants that
are administered under HVRP--urban, non-urban, intermediary, and grants
to serve previously incarcerated veterans. DOL awards urban grants to
applicants that provide services in the 75 most populated cities and
non-urban grants to applicants that provide services in smaller cities
and rural areas. Additionally, DOL awards grants to intermediaries that
award a substantial portion of their grants to eligible local grass
roots organizations to provide employment and training services.
Finally, DOL awards Incarcerated Veterans' Transition Program grants
for serving only previously incarcerated veterans at risk of
homelessness.
Various organizations, for example state and local agencies, private
industry, and nonprofit organizations are eligible to receive grants
under HVRP. DOL assesses each application and awards grants based on a
number of factors including applicants' strategies for employment and
retention of employment, and program design as it relates to job
training, counseling, mentoring and other assistance to expedite the
reintegration of homeless veterans into the labor force. Currently,
there are 79 active grants.
Grantees are required to provide an array of services utilizing a case
management approach that directly assists homeless veterans and
provides critical linkages for a variety of supportive services
available in their local communities.[Footnote 5] Job placement,
training, career counseling, and resume preparation are among the
services that are provided by grantees. Supportive services such as
referral to medical and substance abuse treatment; provision of or
referral to temporary, transitional, and permanent housing; and
transportation assistance are also provided to help meet the needs of
homeless veterans.[Footnote 6]
Prior to fiscal year 2003, HVRP grants included 1 additional year of
optional funding after the year of award. Beginning in fiscal year
2003, DOL awards grants for one year, with the option of additional
funding in each of the next two years based on grantee performance and
the availability of funds.[Footnote 7] DOL does not guarantee
additional funding for option years when it awards HVRP grants.
DOL Expenditures on HVRP Grants Have Increased Since Fiscal Year 2000:
DOL expenditures for HVRP grants increased from $9.5 million in fiscal
year 2000 to over $18 million in fiscal year 2004. During fiscal year
2000, DOL awarded $9.5 million for 54 HVRP grants to provide employment
and training services for 7,800 homeless veterans. During fiscal years
2001 through 2003, DOL spent about $17.5 million annually to fund 81,
62, and 77 grants, respectively, to serve about 14,000 homeless
veterans each year.
In fiscal year 2004, DOL spent about $18.6 million for HVRP grants--
most of it for urban and non-urban grantees. It was also the first year
that HVRP provided grants to intermediaries and, during that year, DOL
expanded grants specifically to serve previously incarcerated veterans-
-$900,000 for intermediaries and $1.5 million for the Incarcerated
Veterans' Transition Program.[Footnote 8] HVRP is projected to grow
modestly in fiscal years 2005 and 2006 from fiscal year 2004 funding
levels. DOL estimates that it will spend about $20 million annually on
HVRP grants for fiscal years 2005 and 2006. (Figure 1 shows DOL actual
and estimated expenditures on HVRP Grants for fiscal years 2000-2006.)
Figure 1: DOL Actual and Estimated Expenditures on HVRP Grants for
Fiscal Years 2000-2006:
[See PDF for image]
[End of figure]
DOL Has Established an Entered-Employment Goal; an Employment-Retention
Goal Is Under Development:
For program years 2004 and 2005, DOL set an entered-employment goal of
58 percent for HVRP--defined as the percent of enrolled eligible
participants who were placed in jobs or otherwise obtained employment
as a result of grantee services. The Advisory Committee on Homeless
Veterans and the National Coalition for Homeless Veterans also use
entered-employment rates as a measure of the effectiveness of
HVRP.[Footnote 9] DOL's 2006 budget indicates that it plans to increase
this goal to 61 percent. DOL reported to us that for program year 2003,
the most current year for which data are available, HVRP grantees
enrolled 13,060 homeless veterans and placed 8,191, or 63 percent, in
employment--a rate that exceeds both DOL's current entered-employment
performance goal and its goal for next year.
Sustained employment is another measure of program effectiveness. DOL
recognizes that it is necessary to evaluate and measure this long-term
result.[Footnote 10] HVRP grantees must follow-up 90 and 180 days after
placement to determine whether a veteran is in the same or similar job
and must obligate sufficient funds prior to the end of the grant
performance period to ensure that follow-up activities are completed
and reported to DOL. These 90 and 180 day follow-ups are fundamental to
assessing the success of the program, according to DOL.
However, while DOL requires grantees to measure and report on the
effectiveness at 90 and 180 days after placement, it has not
established a performance goal for employment retention for the
program--the percent of veterans placed in employment who retain their
jobs. DOL's data for program year 2003 show that while grantees
achieved a 59 percent retention rate at 90 days, the rate dropped to 35
percent at 180 days. An employment-retention goal would provide DOL a
better basis for assessing whether grantees are providing or referring
homeless veterans to the services necessary for them to retain
employment. Understanding why job retention drops could help develop
effective interventions and provide information for establishing future
performance goals. According to DOL, it plans to establish a
performance goal for employment retention for fiscal year 2007.
The Congress has specifically recognized the importance of assessing
the outcomes of services provided to homeless veterans by requiring DOL
to report every two years on the effectiveness of HVRP. While DOL has
taken some steps, it has not provided the required reports. DOL
officials told us that the department plans to issue its first report
to the Congress by the end of fiscal year 2005. Providing this
information to the Congress will help with its oversight of the program
and with its deliberations regarding program reauthorization.
Concluding Observations:
Because employment retention is crucial to the overall success of
transitioning veterans from homelessness, it is important that DOL
continue to develop a realistic performance goal for employment
retention to help assess the success of HVRP. Establishing such a
longer-term goal for the program may help ensure that grantees provide
veterans with longer-term follow up services necessary to retain
employment. This goal along with the entered-employment goal will help
DOL, Congress, and others evaluate the impact that HVRP has on homeless
veterans.
Mr. Chairman, this concludes my prepared remarks. I will be pleased to
answer any questions that you or other members of the subcommittee may
have.
Contacts and Acknowledgments:
For further information regarding this testimony, please contact
Cynthia A. Bascetta at (202) 512-7101 or Michael T. Blair, Jr., at
(404) 679-1944. Michael Tropauer also contributed to this statement.
[End of section]
Related GAO Products:
Veterans' Employment and Training Service: Flexibility and
Accountability Needed to Improve Service to Veterans. GAO-01-928.
Washington, D.C.: September 12, 2001.
Homeless Veterans: VA Expands Partnerships, but Homeless Program
Effectiveness Is Unclear. GAO/HEHS-99-53. Washington, D.C.: April 1,
1999.
Homelessness: Coordination and Evaluation of Programs Are Essential.
GAO/RCED-99-49. Washington, D.C.: February 26, 1999.
FOOTNOTES
[1] VA bases its homeless veteran population estimate on the Urban
Institute's analysis of a 1996 survey of homeless clients and providers
conducted by the Census Bureau: Homelessness: Programs and the People
They Serve, Technical Report prepared by the Urban Institute for the
Interagency Council for Homelessness, Sept. 1999.
[2] See Pub. L. No. 100-77, § 738, 101 Stat. 482, 530-31 (1987).
[3] The act's definition of homeless includes individuals who lack a
fixed, nighttime residence and whose primary nighttime residence is
either a supervised temporary shelter, institution, or a place not
ordinarily used for sleeping.
[4] See Pub. L. No. 107-95, § 5, 115 Stat. 903, 909-10 (2001).
[5] Case management is a client-centered approach for the delivery of
intensive services. Case management is designed to prepare and
coordinate comprehensive employment plans for participants, to help
ensure access to the necessary training and supportive services, and to
provide support during program participation and after job placement.
[6] Transitional housing is generally housing in which homeless persons
live for up to 24 months and receive supportive services that enable
them to live more independently. Permanent housing is long-term
community-based housing and supportive services for homeless persons
with disabilities. The intent of this type of supportive housing is to
enable this special needs population to live as independently as
possible in a permanent setting.
[7] HVRP grants are made for a program year that runs from July 1 to
June 30.
[8] DOL reports that a demonstration grant was provided to serve
previously incarcerated veterans in fiscal year 2003.
[9] The Advisory Committee on Homeless Veterans is comprised of experts
in the treatment of mental illness, substance use, housing
alternatives, and vocational rehabilitation; representatives from
community service providers with qualifications to deal effectively
with care and treatment services for homeless veterans; veterans
service organizations; advocates of homeless veterans and other
homeless individuals; previously homeless veterans; and state veterans
affairs officials. The National Coalition for Homeless Veterans is a
nonprofit organization that serves as a resource for a network of
nearly 250 community-based service providers and local, state and
federal agencies that provide emergency and supportive housing, food,
health services, job training and placement assistance, legal aid and
case management support for hundreds of thousands of homeless veterans
each year.
[10] See 70 Fed. Reg. 15899, 15901 (Mar. 29, 2005): Department of
Labor, Veterans' Employment and Training Service, Urban Homeless
Veterans' Reintegration Program Grants for Program Year 2005: Initial
Solicitation for Grant Applications.
