August 10, 1976
Page 26615
Mr. MUSKIE. I rise today to speak to the budgetary implications of the Emergency Jobs Program Extension Act of 1976 (H.R. 12987).
This bill authorizes "such sums as may be necessary" to carry out emergency jobs programs under title VI of the Comprehensive Employment and Training Act in fiscal year 1976, the transition quarter, and fiscal year 1977. The report accompanying the bill further states that the Labor and Public Welfare Committee authorized such sums as may be necessary "taking into account the targets established in the first concurrent resolution on the budget for fiscal 1977."
Thus it is clear that the committee intends this bill to be in conformance with the first budget resolution that has been adopted by Congress. I congratulate the committee on this approach.
Public service jobs programs fall within the "education, training, employment, and social services" function of the budget — function 500. Within the totals for this function, the first budget resolution assumes approximately $4.4 billion in budget authority and $4 billion in outlays for public service jobs programs. Of these amounts, some $2.2 billion in budget authority and outlays will be needed to continue the level of 260,000 public service jobs prevailing during fiscal year 1976. The remaining $2.2 billion in budget authority and $1.8 billion in outlays would be available for additional public service jobs over the present levels. All told, the amounts assumed in function 500 for public service jobs would support a level of about 480,000 jobs in fiscal year 1977.
I would also point out that the "allowances" section of the budget contains $2.050 billion in budget authority and $350 million in outlays for temporary job creating programs.
While the budget resolution assumptions would not preclude using a portion of these funds for additional CETA title VI jobs, I want to point out that in fact these funds in the allowances category are likely to be needed for job stimulus programs such as public works and the job opportunities program, particularly if the Public Works Employment Act is fully funded. While the final mix among job stimulus programs remains to be decided in the appropriations process, I would caution that it is unlikely that any of these additional amounts will be available for CETA title VI jobs.
Apart from maintaining the number of jobs currently funded under CETA title VI, this bill provides that any additional funds remaining within the resolution target for public service jobs be used to fund temporary project-oriented jobs for the long term unemployed. These project-type jobs are targeted for individuals with low family incomes who have been unemployed for a minimum of15 weeks or are receiving benefits under Federal income transfer programs.
There are substantial offsets to the gross cost of this bill in the form of reduced income security payments and increased tax receipts as a result of moving people off the dole and into the Nation's economic mainstream. Offsets for the new project-type jobs are particularly substantial because project-type jobs are specifically targeted toward current recipients of Federal transfers.
All told, the Congressional Budget Office estimates that some 44 percent of the $4.4 billion available in function 500 for these jobs is likely to be returned to the Treasury in the form of increased tax receipts and lower welfare payments.
I commend the Labor and Public Welfare Committee for its consideration and approval of a targeted public service jobs concept. A similar notion was the subject of considerable attention during our Budget Committee markup on the first budget resolution. Jobs targeted toward current recipients of other Federal programs are particularly attractive because of the savings they make possible in other areas of the Federal budget.
Yet savings are not the Budget Committee's sole concern. We do not subscribe to the view that less spending is always better and more spending is always worse. To the contrary, we believe it is essential to address the needs of the American people with the most direct, effective, and inexpensive means available to us. In my view, these targeted jobs do exactly that.
These targeted jobs are also effective in several other respects. For those workers who are the temporary victims of the current economic situation, these jobs will provide a voluntary alternative to a public dependency that can seriously erode the independence, self-confidence and work habits that are necessary to the proper functioning of our economic system. For the long term unemployed, those whose marketable skills and location in declining areas leaves them without work in periods of both boom and bust, this approach provides a voluntary rite of passage into the world of work.
Under the CETA program in Maine, there are approximately 1,300 public service jobs throughout the 16 counties. They range in scope from sewer plant operators in Houlton to hospital aides at Mercy Hospital in Portland and employees serving the State's senior citizens through the Bureau of Maine's Elderly.
Title VI of the Comprehensive Employment Training Act has provided Maine and other States with an opportunity to meet public needs while giving individuals a source of employment and job experience.
This valuable resource must be continued. That is why I support the bill and encourage my colleagues to do the same.