STAFF REPORT
State expects $1 billion in federal CETA grants
President Jimmy Carter, acting on his campaign promise to stimulate the economy by reducing unemployment, has initiated several CETA appropriation measures with Congress. What this means in bread-and-butter terms for Illinois for the period of June 1977 to September 1978 is an increase of the total CETA budget to nearly three-quarters of a billion dollars. That amount is expected to reach one billion dollars by next spring, according to Bill Murray, director of the Governor's Office of Manpower and Human Development.
Most of the grants go directly to prime sponsors. The U.S. Department of Labor, which administers CETA, defines prime sponsors as general local governmental units with a population of at least 100,000, although there are some units classified as prime sponsors by the U.S. secretary of labor even though they do not meet these requirements. The state serves as prime sponsor to those units that do not qualify, and they are collectively categorized as "balance of state." In Illinois, the "balance of state" is administered by the Governor's Office of Manpower and Human Development.
The most recent appropriations — $287 million — have been made under Titles II and VI, both of which provide public service employment. Title II offers transitional employment, a stop gap measure, to persons who have been unemployed for at least 30 days, some of whom are waiting to be admitted to a program under another title. Title VI provides less transitional public service jobs. For Title VI programs, persons qualify if (1) they have been unemployed for at least 30 days, (2) they have depleted their unemployment benefits, (3) they are not entitled to unemployment benefits, (4) they are part of a family which is on the Aid to Families with Dependent Children program. All of Title II and over half of Title VI funding are for sustaining programs, those which are already in existence. The rest of Title VI money can only be used for temporary projects which last up to one year. While this absolves the federal government from all obligation to refund a sizable portion of Title VI programs after September 1978, there is a consolation: the new projects create jobs that would not otherwise be available. Project based public service jobs are a one-time-only shot in the arm to stimulate the economy.
The Office of Manpower and Human Development, as prime sponsor for the "balance of state," has received $47.4 million of the Title II and VI grants to be allocated to not-for-profit organizations in 70 downstate counties and to state agencies. While much of the allocation process is simply a matter of adhering to the Labor Department's regulations, the state office does have some discretionary power. For example, if a county does not generate enough public service projects to use up the funds it is entitled to, the governor's office can transfer the unused portion of the grant to a county that has a greater need. Not-for-profit organizations submit their public service project proposals to the county board chairman for approval. But the final responsibility is with the governor's office. Murray said that some projects do get turned down. He cited an example of a public service employment project in a small city, which, lacking the funds to build a band shell, hoped to get CETA money. The proposal was rejected for two reasons: first, CETA would have taken on the role of a contractor competing with the private sector for a bid; and second, CETA money can only be used to pay for wages, not for materials.
What is good about the grants under Titles II and VI is that, according to one regulation, at least 85 per cent of the money must be spent directly in wages. What is not so good is that the jobs, even those under the sustaining programs, are not guaranteed to last beyond September 1978. These public service jobs are not intended to offer long-range employment, Murray stressed. But, he added, the projects tend to incorporate skill building and training which enhances the chance for employment elsewhere. And, as a staff member for the "balance of state" CETA administration pointed out, hopefully the tab for some public service jobs will be picked up by the private sector or other community sponsors after CETA grants have initiated a project.
CETA, with its original charter and five-year growth of amendments and additions is both inspiring and intimidating. There is the responsibility to make the programs under the various titles work for those intended, as the statement of purpose in the 1973 charter reads: to "provide job training and employment opportunities for economically disadvantaged, unemployed and underemployed persons." The pressure to have as many "successful" CETA participants as possile (persons who complete the programs and then transfer to unsubsidized employment) can lead to "creaming" which means that persons are not hired for CETA jobs on the basis of their needs so much as on their potential to make the sponsor's program look good. The rapid increase in funding this year has been a problem for some sponsors who must come up with meaningful projects and offer quality service on short notice, And although programs are evaluated and must pass the test of CETA's regulations, some critics would like to see research done that would evaluate the long-range effectiveness of the programs. This is being attempted on a small scale with the newly enacted Youth Employment Demonstration Programs, added under Title III. As the description implies it is a program that offers not only youth employment but promises answers to questions of what works and what doesn't. There is a need for those follow-up answers to all the programs to make them effective, the critics maintain.
The scope of CETA is expressed through eight titles, each focusing on a different category of service. Since CETA's enactment, new titles have been added and existing titles have been amended. Here is a list of the titles and a brief identification for each:
Title I: Comprehensive Manpower Services provides training and education programs for youth and dropouts, work experiences for adults who need to establish a work history and support services such as child care, health care, counseling and transportation.
Title II: Public Service Employment offers transitional employment for persons who will move into other employment or training later. It also has provisions for American Indians.
Title III: Special Federal Responsibilities is for special target groups, among them offenders, older workers, youth and persons with limited English speaking skills.
Title IV: Job Corps is a program for youth from low-income families. The program offers intensive education, training and counseling at residential or nonresidential centers to prepare the participants for jobs in recreational facilities, parks or conservation projects.
Title V: The National Commission for Manpower Policy was created to identify needs, evaluate programs and recommend to Congress changes on amendments or titles.
Title VI: Emergency Job Programs offers public service employment.
Title VII: General Provisions gives definitions of terms and clarifies regulations.
Title VIII: Young Adult Conservation Corps offers employment to youth in projects such as wildlife preservation, planting, erosion control and recreation development.
24/ December 1977 / Illinois Issues