2012 Labor-HHS Appropriations update

9/21/2011 - Audio of Full Committee Markup of FY12 T-HUD, State/Foreign Operations, & Labor-HHS Appropriations Bills

9/20/2011 - Subcommittee Markup of FY12 Labor-HHS Appropriations Bill (AUDIO)

The House Republican proposal would reduce funding from $3.9 billion to $1.7 billion because of a change in the funding structure. While appropriators have said that the shift in funding from a program year to a fiscal year would only change the way in which the funding occurs, a careful analysis of the funding levels underscores the impact of this size reduction. By January 1, 2013, the WIA system would be without any funding, and by as early as July 1, 2012, available funding for the program would be reduced by as much nearly 60 percent. By December 31, 2012, all funding would run out, and the WIA system would be forced to shut down.

These cuts are proposed at a time when more than 14 million Americans remain unemployed and when more than 9 million individuals were served by the WIA system just last year — a 248 percent increase in demand for services over the previous year. These cuts are also coming at a time when more than 50 percent of those who participate in WIA programs are placed in employment, as compared with 20 percent for those who receive no assistance. In addition, hundreds of thousands more are being placed in job training programs so that they can develop skills and become more employable.

Programs that serve disadvantaged adults, disadvantaged youth, high school dropouts, migrant and seasonal farmworkers and Native Americans would also face serious cuts and elimination. One Stop Workforce Development Centers — the cornerstone of the program — would begin shutting down around July 1, 2012, with most, if not all, closing by December 31, 2012.