TESTIMONY OF ESPIRIDION "AL" BORREGO ASSISTANT SECRETARY OF LABOR FOR THE VETERANS' EMPLOYMENT AND TRAINING SERVICE BEFORE THE SUBCOMMITTEE ON BENEFITS AND SUBCOMMITTEE ON HEALTH OF THE HOUSE VETERANS' AFFAIRS COMMITTEE U.S. HOUSE OF REPRESENTATIVES MARCH 9, 2000
Chairman Quinn and Chairman Stearns, Members of the Subcommittees: Thank you for the opportunity to appear before you today to talk about issues facing America's homeless veterans, and the Department of Labor's efforts to serve these veterans. As you know, America's economy is strong. Over the past seven years, more than 20 million new jobs have been created and the unemployment rate is at its lowest level in 30 years. Most of our citizens, including many of whom prosperity had previously left behind, are doing better than ever. Unfortunately, despite many Federal, State, and local -- public and private -- efforts to reduce homelessness among our Nation's veterans, an estimated 322,000 to 491,000 veterans experienced homelessness during 1996, for example. Our challenge is to reduce these numbers and to restore dignity -- through gainful and lasting employment -- to our Nation's homeless veterans, who all too often must first overcome multiple barriers to employment, including mental health problems and alcohol and drug abuse. One of Secretary Herman's highest priorities is to ensure that the promise of America's prosperity is shared by our Nation's veterans. Today, I want to talk about the nature of this challenge, by first focusing specifically on the efforts of the Veterans' Employment and Training Service (VETS), and, secondly, speaking of the Department's efforts to serve homeless veterans in general. Homeless Veterans Reintegration Program (HVRP) On behalf of the Secretary, let me begin by thanking you for your support of VETS' Homeless Veterans Reintegration Program (HVRP), and particularly for supporting its reauthorization. The Secretary has often said that "Veterans' issues are America's issues." Perhaps no other veterans' issue touches our hearts as the plight of homeless veterans. We at the Department are very proud of the services we provide to veterans under the HVRP and other programs. HVRP was the first Federal program to focus on placing homeless veterans into jobs. It is intended to augment our overall veteran employment program by focusing coordinated services from multiple providers, thus expediting the reintegration of homeless veterans into the labor force so that they may achieve financial independence. Once these homeless veterans are job ready, our veterans' employment representatives are available to assist with job placement. The goal of this program is to place a veteran in a job -- and not just any job, but a job that he or she can keep. In addition to VETS' three month follow-up, HVRP grantees will now be required, under the reauthorization of this program passed last fall, to determine the job status of their clients six months after the initial placement. This will allow us to better track our success in reintegrating homeless veterans into the mainstream economy. HVRP is a successful program which has been broadly supported by local community groups and Veterans Service Organizations. Since its inception, this program has been a partnership with local agencies and other State and Federal programs. Indeed, partnerships are a fundamental requirement for applicants for these grants. As part of the competitive process, applicants are required to identify the entities with whom they will partner, such as the Departments of Housing and Urban Development (HUD) and Veterans' Affairs (VA), Workforce Investment Act (WIA) grantees, the State Employment Security Agencies (SESAs), State and local governments, and local groups. Grant applicants also must identify the services to be provided by their partners, such as housing assistance, sustenance and medical support, job training, mental health services and substance abuse treatment. Applicants are required to address these issues in their application, and their responses are evaluated as part of the grant award process. The quality of these supplemental services is assessed and evaluated at the same time that the performance of the grantee is reviewed. HVRP grantees also utilize former homeless veterans as outreach coordinators. This has proven to be a successful method for encouraging veterans to accept assistance. From Fiscal Years 1989 through 1994, the $19 million spent on HVRP provided a variety of services to 19,516 homeless veterans; 9,808 of whom were placed in jobs. During this six-year period, homeless veterans entered employment at a cost of $1,937 per veteran. As you know, the program was not funded for Fiscal Years 1995, 1996, and 1997. Funding for this program was resumed in Fiscal Year 1998. VETS' Fiscal Year 1998 Solicitation for Grant Application to operate the HVRP program drew many applications, mostly from urban areas. Applications were submitted from State and local public agencies, Private Industry Councils, and nonprofit organizations. On April 1, 1999, VETS awarded $3 million in Fiscal Year 1998 funding to 20 different grantees to administer 23 grants in urban and rural areas. The grants varied in size between $100,000 and $125,000. As is customary, the urban grants included an option for VETS to re-fund for a second year if the grantee performed in accordance with the grant agreement's performance measures. Rural grants were awarded for one year only. At the end of Fiscal Year 1999, these grantees enrolled and served 3,783 homeless veterans and placed 1,843 veterans in jobs. Fiscal Year 1999 funding also provided $3 million for second-year funding to those urban Fiscal Year 1998 grantees whose performance was satisfactory, and for another competition for those rural areas which did not have the option of extending an additional year. Preliminary results indicate that so far 1,703 homeless veterans have been provided a variety of services. Moreover, 928 veterans were placed in jobs. We expect to receive final reports for this program year after June 30, 2000. Due to support from Congress and the homeless veteran community, this year's Fiscal Year 2000 grant program -- funded at $9.6 million -- is the most ambitious since the inception of the program. Essentially the program is funded at its full authorized level. We believe that this investment reflects Congress's confidence in the quality of services and our track record. For Fiscal Year 2000, VETS is announcing two separate competitions. The first Solicitation for Grant Application (SGA) to operate an HVRP program is targeted to the Nation's 75 largest cities, where the need is the greatest. This SGA was published in the Federal Register on February 7, 2000. The second SGA competition will solicit applications from entities serving rural areas. At a conservative estimate, we expect that about 6000 homeless veterans will receive a variety of services. In addition, we expect that 4000 will be placed in jobs. For Fiscal Year 2001, President Clinton's budget requests the full authorized level -- $15 million -- for HVRP funding. This increased funding would enable VETS to compete funds with fewer limitations, such as the maximum size of the grant or the number of grants funded, while simultaneously increasing the efficiency and effectiveness of the HVRP. At this funding level, we estimate that 17,400 homeless veterans would be enrolled in HVRP programs. We also estimate that 8,700 would be placed in jobs. Homeless Veterans and the Labor Department's Employment & Training Administration In addition to HVRP, homeless veterans are eligible to participate in Employment and Training Administration (ETA) programs. For example, veterans currently participate in Job Training Partnership Act (JTPA) programs. Based on preliminary data for the last full program year of JTPA, seven percent of those completing the Adult program and 11 percent of those completing the Dislocated Worker program were veterans. Eight percent of the veterans in the Adult program were homeless. JTPA will be replaced by the Workforce Investment Act (WIA) on July 1, 2000. WIA will be administered at the local level by Workforce Investment Boards that include representatives of veterans' organizations and veterans' employment programs as members. A cornerstone of WIA is the One-Stop service delivery system, which includes veterans employment programs as required partners. This means that veterans, including homeless veterans, will literally have "One-Stop" access to employment and training and related services, including job placement services specifically tailored to veterans. These services include assessment, job training, employability training, job search assistance, support services for low income, unskilled or low skilled adults and youth. Homeless veterans are also eligible for services provided by the public Employment Service, which is funded and administered by the Department, and operates through the States. The Employment Service provides labor exchange and labor market information services at no charge to the public. Local Veterans Employment Representatives (LVERs) and Disabled Veterans' Outreach Program specialists (DVOPs) are available at local Employment Service offices. LVERs provide some direct service to veterans and ensure that they receive appropriate employment services and DVOPs provide staff-assisted job search and placement services for qualified veterans. A total of 1.7 million -- or 10 percent of job seekers registering with the Employment Service in program year 1998 (July 1, 1998 through June 30, 1999) -- were veterans. The Employment Service does not collect data on homeless job seekers. Other Departmental Efforts to Serve Homeless Veterans In addition to our efforts through programs authorized by this Committee, the Secretary and I have met with Veterans Service Organization (VSO) leaders to discuss the problem of homelessness among our veterans. We have attended national VSO conferences to describe DOL's role in responding to their concerns about this important issue. VETS participates in VSO national service officer and other homeless advocate training activities to develop strategies to respond to homeless issues. We also work with the Veterans Organization Homeless Council (VOHC) and the Homeless Veterans Foundation, as well as the National Coalition for Homeless Veterans. Recently, the Secretary convened a meeting with representatives of faith-based organizations in order to make them aware of DOL programs, including HVRP, and to seek stronger partnerships with these organizations. VETS' staff also work with the Department of Housing and Urban Development (HUD), the President's Committee on Employment of People with Disabilities, the Department of Veterans Affairs (VA), and other Federal agencies to pool informational resources and educate providers about the full range of DOL community based services available to veterans and their families. In addition, DOL participates on the Veterans Task Force of the Interagency Council on the Homeless and on VA's Town Hall Meetings on Homeless Veterans. This interagency effort and cooperation has resulted in the establishment of the HUD Veteran Resource Center (HUDVET) and the recruitment of a combat disabled veteran to be its director. VETS works closely with HUDVET. Essentially, the Department of Labor acts as a catalyst to leverage the support of other Departments toward support of homeless veterans. I appreciate this opportunity to testify before the Subcommittee and look forward to working closely with you and the veterans' community to further reduce homelessness among our Nation's veterans. I would be happy to take any questions you may have at this time. Back to Witness List |