Testimony of

Espiridion ‘Al’ Borrego

Assistant Secretary for Veterans’ 

Employment and Training

U.S. Department of Labor

before the

Oversight and Investigations Subcommittee of

the Veterans’ Affairs Committee

U.S. House of Representatives 

September 27, 2000 

                     

Mr. Chairman, Ranking Member Brown and Members of the Subcommittee: 

I am pleased to be here today to discuss our Strategic Plan and its influence on Veterans’ Employment and Training Service’s (VETS) program effectiveness. 

This morning I would like to begin by talking about the innovative solutions VETS has put forward to meet the challenges of the New Economy.  As you know, VETS is an agency of 250 dedicated Federal employees. We have the responsibility to award and monitor employment and training grants under Title 38, U.S.C., Chapters 41 and 42 (primarily staffing grants to the States) to employ 2,600 Disabled Veterans Outreach Program specialists (DVOPs) and Local Veterans Employment Representatives (LVERs), the majority of whom are service connected disabled veterans.  The DVOP specialists provide intensive employability and job development services to help veterans secure permanent employment, particularly veterans with service connected disabilities and other disadvantaged veterans.  LVER staff provide supervision to the other local office staff to ensure that high quality service is provided to veterans and that performance standards for services to veterans are achieved, as well as provide direct employment services to veterans. 

VETS also provides direct investigative and enforcement services to protect employment rights and benefits for veterans, reservists, National Guard members, and other eligible persons.  These rights and benefits are established primarily under the Uniformed Services Employment and Reemployment Rights Act (USERRA) at Title 38, U.S.C., Chapter 43, and the Veterans Employment Opportunities Act of 1998 (VEOA). 

In the last year, VETS has crystalized its vision for the future -- to prepare those veterans most in need of assistance for meaningful, long-term careers with continuing opportunities for advancement.  Our basic strategy is to use the “One-Stop” philosophy of the new Workforce Investment Act (WIA) to ensure that veterans have access to a wide range of services, including self-service through automated tools such as America’s Job Bank. VETS-funded staff will focus on those most in need of individual assistance.

This change of focus addresses the General Accounting Office’s (GAO) primary concerns about the clarity of VETS’ vision and the impact of WIA. 

The veterans’ population represents more than 14 million working Americans; and according to the most recent statistics, in Program Year (PY) 1998, 1.8 million or 12% of those veterans registered with the public labor exchange.  These 1.8 million registrations occurred during a period when the unemployment rate for veterans was below 4%, i.e. 560,000.  As an indicator of effectiveness, this shows that veterans know where to go when looking for a job.   

Of course, many veterans who register are looking for better jobs or are simply testing the market.  The attached study shows that, in PY 1997, of the 13,541 veterans who registered with the public labor exchange in Maryland only 5,291 made a claim for Unemployment Insurance.  Therefore, the majority were most likely employed and looking for better jobs.  

In addition, other veterans access the electronic labor exchange services of the Department without registering with the public labor exchange and are able to conduct their own job search using the tools made available by the Department through the electronic medium.  

The employment assistance VETS provides through the public labor exchange represents our Nation’s commitment to ensure that the employment and training system of the 21^st Century serves all segments of our veteran population effectively.  With the Secretary’s support for veterans’ issues, we continue to be a full partner in the implementation of the WIA and are committed to ensuring full access to employment opportunities for our Nation’s veterans in the new One-Stop system.  VETS is also working with the Department of Labor’s Employment and Training Administration (ETA) to enhance how veterans priority of service is delivered through America’s Job Bank and Talent Bank and making Federal contractor information easily accessible to DVOPs and LVERs for job development and placement opportunities.  As the Secretary of Labor has repeatedly said, “veterans’ issues are America’s issues”.  

The Secretary has put the Department of Labor in the forefront of the Federal government’s effort to prepare 21^st Century workers for 21^st Century careers.  This Department has a leadership role in meeting the needs of the high technology industry while that same technology changes how we live, work and learn.  The VETS’ certification and licensing initiative includes a pilot program with a technology consortium, the Computer Technology Industries Association, to assist veterans to obtain employment in the information technology field.  VETS also has developed a website, Using (your) Military Experience and Training (UMET), that is tailored to transitioning military personnel and veterans who may need a credential for civilian employment.  In addition, we have several demonstration programs (ProVet and the Ohio Licensing and Certification Initiative) that are examples of VETS’ commitment to finding new ways to ensure America’s veterans are provided the assistance required to obtain meaningful jobs.  The Ohio project has helped over 300 individuals obtain licenses or certifications in occupations ranging from information technology and commercial driving to pipe fitting and heating and air conditioning, aircraft and automobile mechanics.  Of those served through the Ohio project, over 70 % of those recently separated from the military (defined as within 48 months after discharge) and had previous civilian jobs, increased their earnings by approximately $3.00/ hour.  In addition, for those veterans within one year of discharge the average length of unemployment was reduced by 5 weeks compared to the average 14-week period for initial UCX claims. 

These are just a few examples of how VETS is on the cutting edge of innovation.  Such initiatives provide the tools and mechanisms that create access to employment opportunities necessary to ensure that our Nation’s veterans are not left behind, but rather are at the front of the line with the skills and credentials necessary to take full advantage of the opportunities offered by the New Economy. 

VETS’ goals and results 

I will next present a brief overview of the framework for VETS’ approach to strategic management, and then highlight some of the accomplishments in the performance of VETS’ programs.  

Our Strategic Plan clearly sets out VETS’ mission and vision.  Serving the employment and training needs of the Nation’s veterans is our basic mission.  Specifically, VETS’ mission is to promote the economic security of America’s veterans by minimizing unemployment and underemployment among veterans with service-connected disabilities and among other targeted veterans groups, and by maximizing of employment and training opportunities for all veterans.   Our vision is customer-focused.  We will provide veterans and other eligible individuals the high quality and timely services they need to succeed in the changing labor exchange environment of the New Economy. 

The Department of Labor takes the Government Performance and Results Act (GPRA) very seriously.  Our objective of measurable performance goals provides a clear picture of intended performance across the agency.  The framework and principles of GPRA, which guide the Departmental management team, are integral to our management of VETS’ programs, beginning with a Strategic Plan and action oriented strategies for improving core program outcomes.  To execute this plan, we set ambitious but realistic goals, requiring our partners and staff to reach beyond the previous year’s successes. 

Last spring, we reported the results of our 1999 Performance Goals.  In summary, the goals  and results were: 

1.  TRANSITION ASSISTANCE PROGRAM-- As a measure of Transition Assistance Program (TAP) effectiveness, the unemployment period of recently separated personnel was reduced from 17.2 weeks to 16.2 and met VETS’ goal.

2.  DVOP/LVER EMPLOYMENT ASSISTANCE -- 288,604 veterans registered with the Employment Service entered employment, slightly short of the goal of 300,000.  We believe this shortfall is the consequence of VETS emphasis on the hard to serve as discussed below and the related issue of underreporting that I will discuss later. 

3.  USERRA -- Our performance in reducing the number of pension cases under USERRA is mixed – cases increased by 15%.  We believe that the growth is related to the aging of Vietnam-era veterans.  However, I am pleased to report that the percent of pension cases resolved, which demonstrates VETS’ effectiveness in resolving cases within one year, increased from 90% to 97%. 

Recognizing the advantages that the strong economy and new technologies offer veterans, VETS has focused staff efforts on increasing assistance to helping veterans with significant barriers to employment and using a case management approach.   As a result, it is particularly noteworthy that the goals exceeded were goals focusing on those veterans  historically most difficult to employ: 

4.  SPECIAL DISABLED VETERANS -- VETS’ goal was to assist 10,000 special disabled veterans enter employment.  This goal was exceeded by over 38% when 13,825 secured employment. 

5.  SERVICE CONNECTED DISABLED VETERANS -- VETS aimed to have 4,368  Department of Veteran Affairs Vocational Rehabilitation and Employment graduates enter employment; 4,567 individuals returned to the labor market in meaningful jobs. 

6.  HOMELESS VETERANS -- VETS expected 1,850 homeless veterans would enter employment; 1,993 formerly homeless veterans did so. 

Strategic Planning and Performance Evaluation -- An Ongoing Effort 

Strategic planning and performance evaluation are not one-time endeavors, but are an integral part of our ongoing efforts.  We have made considerable refinements in our plans and strategies based on recommendations from the GAO and others. 

First, three years ago VETS developed a management control process to ensure outcome strategies are communicated to our staff and stakeholders.  The VETS Operations and Program Activity Report (VOPAR) requires Regional Administrators and State Directors report monthly on progress toward outcomes and strategies and identify issues or problems related to the Strategic Plan’s (the Plan’s) implementation.  Managers’ performance standards and appraisals take into consideration their contribution to the outcomes and strategies in the VETS Strategic and Annual Performance Plans.  Regional budgets are developed and submitted based on the workloads necessary to reach the Plan’s desired outcomes, and they are approved taking contribution to overall plan achievement into consideration.   

Second, quality assurance reviews of Uniformed Services Employment and Reemployment Rights Act (USERRA) claims ensure that investigations are both timely and comprehensive.  We have a “Red Flag” system to identify problems while they are still small.  The VOPAR gives VETS management staff the data to continuously refine our goals, measures and strategies for achieving favorable results. 

This early warning system enables us to become aware of the existence of a problem and to establish a corrective action plan.  The results of the corrective action plan can be identified from monthly VOPAR reports and quarterly data submissions.  We continually stress the importance of complying with this process to our VETS managers. 

Third, we conduct Management Control Reviews of the Regions and assess the processes and overall management of the staff and activities they have in place to ensure performance data are validated and reach the desired outcomes.  This review process also provides an opportunity to share “best practices” to further enhance the outcomes of our service to veterans throughout the nation. 

Fourth, based on statements made at this Subcommittee’s July 1999 hearing, including those made by GAO, we determined that, while VETS’ Strategic Plan addressed GPRA’s statutory requirements, it could better convey our mission and goals. 

We saw this as an opportunity to begin a ‘ground-up’ revision of our Strategic and Annual Performance Plans using primarily our top field staff.  We sought guidance from the GAO which worked with our group to develop a new Strategic Plan.  

DOL senior management has provided continuing and active oversight of the process that VETS and other Departmental agencies engage in to continuously raise our achievement levels through our implementation of GPRA.  A comprehensive process to standardize strategic and performance planning and monitor progress toward our goals has been established within the Department. 

The Department contracted with several private companies to provide technical assistance on strategic planning and associated data capacity assessment to Departmental agencies. The contractor facilitated several discussions by the VETS’ management team about our direction, goals and strategies for the future and provided technical assistance to VETS in formatting its new Strategic and Annual Performance Plans.

The VETS 2000-2005 Strategic Plan and the 2001 Annual Performance Plan were developed around VETS’ governing legislation and the new employment and training operating environment.  Many discussions and briefings were held and were often attended by representatives of the GAO, congressional staff, the Department of Labor’s Office of the Inspector General (OIG), veterans service organizations (VSOs) and the Interstate Conference of Employment Security Agencies (ICESA). 

VETS is seizing this opportunity to develop and implement new performance outcome measures and collect reliable data on services provided to our Nation’s veterans.  

For example, our Strategic Goal 2 is to promote maximum employment opportunities for all veterans, with special attention given to meeting the needs of targeted groups, including veterans who have significant barriers to employment, veterans who served on active duty in the armed forces during a war or in a campaign or expedition for which a campaign badge has been authorized, and recently separated veterans.  (This supports DOL Outcome Goal 1.1: Increase employment, earnings, and assistance.) 

This Strategic Goal is to be measured by our success in meeting a series of Outcome Goals:

·                      Outcome Goal 2.1. Veterans seeking employment will have the benefit of an effective range of streamlined service-delivery mechanisms, public information activities, and self-service opportunities. 

·                      Outcome Goal 2.2. A significant number of all eligible veterans, as well as of targeted group veterans, requesting public labor exchange core services will receive successful and satisfactory job placement assistance. 

·                      Outcome Goal 2.3.  A significant number of veterans entering employment as a result of receiving public labor exchange core services will retain unsubsidized jobs for a meaningful period of time. 

·                      Outcome Goal 2.4.  A significant number of the veterans who served in a military occupation with a civilian counterpart occupation that requires a credential will receive certification or licensing for civilian employment, or will receive information about requirements for such certification and licensing and an assessment of the gaps in their required training and experience. 

·                      Outcome Goal 2.5.  A significant number of non-job ready veterans provided assistance (including members of the military services) will receive employability development services (including case management) and other specific assistance that enhances their civilian employment prospects significantly.

·                      Outcome Goal 2.6.  Assist veterans, reservists and National Guard members to understand and apply their rights under the Uniformed Services Employment and Reemployment Rights Act (USERRA) and Veterans’ Preference (VP), resolving complaint cases expeditiously while maintaining quality case handling procedures. (Supports DOL Outcome Goal 2.1: Increase compliance with worker protection laws.) 

These particular outcome goals are measurable and have specific goals associated with them in the performance plan to assure that VETS effectively meets its mission. 

Beyond the Strategic Plan 

The actual development of the revised Plan entailed a much broader review.  We used that the contractor’s expertise to assess VETS’ data collection and data management practices and the internal controls associated with our ability to accurately report on strategic and annual plan performance goals. The contractor’s report, which we have already shared with Subcommittee staff and the GAO, provides independent recommendations on areas that require our attention.  

For example, the contractor’s report identified a number of shortcomings in VETS’ data management and associated internal controls.  These include, among others, a lack of individual level data; excessive reliance on the ETA 9002 reporting system; and inefficient manual systems.  The report confirmed that the current reporting system underreports the work of the VETS-funded staff.  

Many of the employment and training activities/outcomes in the VETS Strategic and Annual Performance Plans are based on state-generated ETA data collection.  The reporting system is subject to error and under-counting because it requires that a local office staff person make contact with a registrant to confirm that the person got a job before their employment may be reported on the ETA 9002.  Also, some reportable service is required to maintain the veteran in active status in the State database beyond 90 days.  Disabled veterans are maintained for 180 days of a reportable service.  After this period of time the veteran becomes inactive.  Therefore if a veteran registrant secures employment after 90 days of receiving a reportable service, he/she would not be reported as an entered employment.  At the end of the Program Year all inactive registrants are purged from the system. 

Moreover, the  data collection system does not report all individuals who get jobs through assistance of VETS’ State funded staff.  Examples of veterans whose job placements are not consistently captured in the States’ data collection system and are, therefore, underreported include:  individuals who get jobs directly through their participation in TAP workshops; all veterans hired by Federal contractors; and those who find employment with Federal or State agencies; and who get a job outside the State of registration.