PA: MID-YEAR CUTS AND A BUDGET SHORTFALL ON TAP FOR 2012

[from Third and State] by Sharon Wardon December 20, 2011 
Governor Tom Corbett will announce a new budgetary freeze before the end of the year to help resolve what the administration expects to be a $500 million revenue shortfall, according to Budget Secretary Charles Zogby, who gave the annual mid-year budget briefing on Tuesday. 

Secretary Zogby painted a grim picture, as expected. The current revenue shortfall of $345 million could grow even beyond the $500 million current estimate, according to Zogby, and growth in mandatory spending for pensions, debt service and the Department of Public Welfare (DPW) will contribute to a budget for 2012-13 that is short about $750 million.

The Commonwealth plans to resolve the revenue gap with additional cuts. The secretary did not anticipate having "any revenue options" on the table and said he would look for further cuts in "waste, fraud and abuse" in DPW, controlling growth in corrections spending, and scaling back capital spending to make up the difference.

Read more here.

PA Senate releases new re-districting draft map

ACCT Legislative update, new workforce funding developments

[from ACCT] December 8, 2011 - Today, the Republicans on the House Education and Workforce Committee introduced two workforce training reform bills.  Congresswoman Virginia Foxx (R-NC) introduced the first bill, H.R. 3610, the Streamlining Workforce Development Programs Act, which consolidates 33 workforce training programs into 4 funding streams.  The second bill, H.R. 3611, the Local Job Opportunities and Business Success (JOBS) Act, introduced by Congressman Joe Heck (R-NV), addresses workforce investment boards.  The bill removes many federal directives regarding board makeup and requires that at least two-thirds of each board is comprised of business representatives.  It also strikes provisions that require board representation from community colleges and other educational entities.

The House and Senate are currently conferencing the nine remaining FY 2012 appropriations bills into a larger omnibus.  With many hurdles facing remaining for the Labor-HHS-Education bill, a year-long continuing resolution for that bill remains probable.  With a $1.3 billion shortfall in the Pell Grant program, indications are that negotiators will seek to make Pell eligibility changes within a continuing resolution to address the shortfall.  Thus far, FY 2012 continuing resolutions have addressed the shortfall through an across-the-board cut of all Labor-HHS-Education programs.  Negotiators appear less likely to accept an across-the-board-cut scenario to protect Pell in a year-long continuing resolution. 

Today, the White House hosted the first board meeting of the Startup America Partnership, where board members announced $1 billion in private sector investment to assist startups over the next three years.  This meeting came as part of a larger announcement focused on job creation and entrepreneurship. The White House announced its continued commitment to entrepreneurial education and transformation through the new National Education Startup Challenge and the Presidents for Entrepreneurship Forum.  The National Education Startup Challenge, invites middle school, high school, and college students to develop an innovative solution to an education problem and prepare a business plan for a new company or non-profit organization to deliver that solution.  The National Association for Community College Entrepreneurship (NACCE) is launching the Presidents for Entrepreneurship Forum, through which community college presidents make specific commitments to advance entrepreneurship and the impact these colleges have on the economic well-being of their communities. Over 100 community college presidents have signed on at launch.

Job Creation Act of 2011

[edited from content on CLASP] The Middle Class Tax Relief and Job Creation Act of 2011 (introduced Dec. 12, 2011) reduces the period of time jobless workers can receive federal unemployment benefits by as many as 40 weeks in 2012. Current law provides federal benefits for up to 99 weeks, depending on the pervasiveness of unemployment in the state. This bill would reduce this to a maximum of 59 weeks in hardest hit states.  Unemployment has been above 8 percent since April 2009, and the percent (43 percent in November 2011) of unemployed workers who have been without a job for six months or more has remained at record levels for 31 months.

The bill also includes provisions that would reduce access to those who receive unemployment insurance. It denies unemployment insurance benefits to those without a high school diploma or GED if they can't demonstrate they are enrolled in a program leading to a credential. Workers with less than a high school diploma are unemployed at significantly higher rates than workers with a bachelor's degree (13.2 percent v. 4.4 percent).

House Committee Examines Tuition Costs

November 30, 2011 - Today, the House Subcommittee on Higher Education and Workforce Training held a hearing entitled "Keeping College within Reach: Discussing Ways Institutions Can Streamline Costs and Reduce Tuition." Experts and Members of Congress discussed the reasons why college costs have been increasing, and offered ideas on what could be done to help curb the rising cost of tuition while effectively delivering a quality education. Included in the discussion was the importance of cost effective remediation for students, and ensuring course equivalency among community colleges and four-year institutions. To read witness testimony, please follow this link:http://edworkforce.house.gov/Calendar/EventSingle.aspx?EventID=270118

Erie split in half

[from Third & State] Erie. Nobody wants the poor Lake City. Reps. Mike Kelly and GT Thompson are lobbying their friends in Harrisburg to avoid having the small bastion of Democratic voters included in their districts. No matter what the outcome, Erie County will likely be split in two, meaning odds are against a home town congressman for the next decade.

State-by-State Impact Analysis of House-Proposed FY 2012 Cuts to WIA

From the National Skills Coalition In October, Republicans on the House Appropriations Committee released a draft Labor-Health and Human Services-Education bill proposing more than $2.2 billion in cuts to federal workforce programs under the Department of Labor, including more than $1.9 billion in cuts to Workforce Investment Act (WIA) programs. In response, National Skills Coalition has developed a state-by-state impact analysis of proposed cuts to the WIA Adult, Dislocated Worker, and Youth programs in FY 2012, finding that as many as 6.5 million U.S. jobseekers would lose access to critical employment and training services if the House funding levels are enacted. Download this resource today and educate policymakers about the impact that drastic cuts to WIA and other workforce programs would have on their communities.

Washington Update: Super Committee Fails, Complicates FY 2012 Appropriations Process

From the National Skills Coalition Read this month’s Washington Update for the latest on how the Super Committee’s failure and the automatic spending triggers may impact workforce funding moving forward, including year-end legislative efforts to finalize the FY 2012 appropriations process. Also read about the new Pathways Back to Work Act introduced by Rep. George Miller (D-CA) and Sen. Richard Blumenthal (D-CT) that would provide new investments in employment and job training activities for unemployed and low-income adults and youth, the extension of the Trade Adjustment Assistance program, new grant opportunities, and more.

Workforce Federal Policy Update

Register for NSC’s Annual End of Session Federal Policy Audio Update
The workforce field has weathered significant challenges throughout 2011—from the devastating cuts to job training and education proposed by the House in FY 2011, to the creation and ultimate collapse of the Super Committee, to the devastating cuts to job training and education proposed (again) by the House in FY 2012. Join NSC’s federal policy team on Thursday, December 15 at 1:00 pm EST as they recap the trials and triumphs for workforce advocates in one of the most difficult political environments in recent memory, and learn what lies ahead for workforce development policy in 2012. Register.