Chairwoman Herseth Sandlin, Ranking Member Boozman, Members of the Committee:

I am pleased to appear before you today to discuss certain programs that have expired that involve our agency. Your invitation letter lists several programs you would like to review. Of the eight programs listed, we will restrict our comments to the Incarcerated Veterans Transition Program (IVTP) and the “Department of Labor (DOL) Veterans’ Employment and Training Program (VETS) Claim Referral Program to Office of Special Counsel” and defer to the Department of Veterans Affairs (VA) on the other programs listed.

Incarcerated Veterans Transition Program

IVTP was originally mandated as a demonstration project using funds appropriated for the Homeless Veterans Reintegration Program (HVRP). The Homeless Veterans Comprehensive Assistance Act (P.L. 107-95) amended Title 38 to revise, improve and consolidate provisions of law providing benefits and services to homeless veterans. Section 2023 of Title 38 mandated a demonstration program of referral and counseling for veterans who are transitioning from certain institutions and at risk of becoming homeless. Authority for IVTP expired September 30, 2007.

IVTP targeted veterans who were preparing to transition out of incarceration into employment in their communities. DOL competitively awarded seven (7) ITVP demonstration grants to provide employment and training services at the federal, state, and local levels. During the demonstration project, 4,094 incarcerated veterans were assessed by grantees, Disabled Veterans’ Outreach Program (DVOP) specialists, and Local Veterans’ Employment Representatives (LVERs). Of those assessed, 2,191 veterans were enrolled into IVTP and received customized employment and training services as well as VA benefits. Over half (54%) of IVTP participants successfully entered employment earning an average of $10.00 an hour, at an average cost per placement of $4,500. This compares very favorably to the annual cost of incarceration of approximately $22,000 per person.

The IVTP demonstration project has shown positive results in assisting veterans to successfully transition from incarceration back into their communities. The program has been successful in reconnecting veterans to available health care benefits, reuniting them with family members, and better preparing them to avoid recidivism. The VA’s Incarcerated Veterans Outreach Specialists have coordinated with IVTP grantees to assist veterans in obtaining other financial benefits and in securing transitional and permanent housing after their release. Many of the lessons learned from the demonstration project will continue to benefit incarcerated veterans. For example, a number of our DVOPs and LVERs received specialized training in dealing with the incarcerated veteran population and they continue to develop working relationships with prison personnel that aid incarcerated veterans in transitioning to the civilian workforce.

VETS worked closely with VA, the Department of Justice (DOJ), and DOJ’s Federal Bureau of Prisons on this effort. VETS is working with VA on VA’s final report on the demonstration project, which is expected to be forwarded to Congress in April 2008.

Demonstration Project with the Office of Special Counsel (OSC)

In 2004, Congress passed the Veterans Benefits Improvement Act (VBIA). Section 214 of that Act required the Secretary of Labor and the OSC to carry out a multi-year demonstration project under which about half of all Uniformed Services Employment and Reemployment Rights Act (USERRA) claims made by federal government employees are referred to OSC for investigation, resolution and enforcement. The demonstration project was to conclude at the end of September 2007, but was extended by Continuing Resolutions through December 31, 2007, when it expired.

Since the inception of the demonstration program on February 8, 2005, through its conclusion on December 31, 2007, VETS received 4,198 USERRA complaints. Of those, 693 (16.5%) were federal claims that were subject to the demonstration project. VETS transferred 312 of those federal claims to OSC under the demonstration project, including 14 which were transferred because VETS concluded that they might involve a prohibited personnel practice.

VETS worked closely with OSC throughout the project to improve our investigators’ ability to identify potential “mixed cases,” which are USERRA cases that may also include related prohibited personnel practices under the federal civil service laws. VETS also spurred closer ties by convening monthly meetings in which DOL and OSC officials discuss and resolve USERRA issues.

All USERRA Claims Received by VETS 2/8/05 to 12/31/07

The Government Accountability Office’s (GAO) Report (GAO-07-907, July 2007) evaluating the demonstration project recommended that VETS institute improved procedures to ensure claimants are notified of their right to have their case referred to OSC, if a federal case, or to DOJ, if a nonfederal case, and to implement an internal review mechanism for all unresolved claims. VETS has fully implemented those recommendations and made other programmatic improvements through the updated USERRA Operations Manual that went into effect on February 1, 2008. In addition, GAO identified areas in our data reporting procedures that have now been addressed.

Currently, DOL has 115 trained USERRA investigators and six USERRA Senior Investigators who are directly involved in investigating USERRA complaints. Almost all are veterans themselves. They are located where veterans need them most – in all 50 states, the District of Columbia, and Puerto Rico. In addition to investigating complaints, these specialists conduct outreach and provide technical assistance to employers, service members, veterans, and veterans' organizations on employment and reemployment issues at the national, state and local levels, including to service members as they are mobilized and demobilized. In addition, VETS investigators can call upon a nationwide network of DOL attorneys who are experienced USERRA practitioners, to quickly resolve any legal issues that may arise during an investigation.

VETS is proud of its record with USERRA since its enactment. For example, over the past eleven fiscal years, 91 percent of federal USERRA cases were resolved by VETS without need for referral to the OSC. Furthermore, 84 percent of “meritorious” federal USERRA cases and 85% of “meritorious” non-federal USERRA cases were resolved by VETS (claims granted or settled) reached resolution within 90 days. We also have an aggressive outreach program to educate service members and employers on their rights and responsibilities under the law. Since September 11, 2001, VETS has provided USERRA assistance to over 512,000 service members, employers and others.

VETS remains committed to continuous improvement of our USERRA program. As a result of that commitment, we have made a number of investments to our USERRA program, and more are planned. An investment in VETS’ USERRA program is an investment in protecting the employment rights of all service members and veterans covered under USERRA, regardless of whether their employer is the federal government, a state or local government, or a private entity.

In sum, the Department of Labor is better positioned than ever to promptly and effectively respond to service members’ USERRA issues nationwide. We continue to work closely with the Department of Defense’s Employer Support for the Guard and Reserve (ESGR), DOJ, and OSC to assist service members in resolving their USERRA issues. Although OSC no longer receives USERRA complaints for initial investigation, the Department of Labor and OSC will continue to collaborate on USERRA cases we refer to OSC that contain related prohibited personnel practices, as well as on unresolved cases we refer for possible representation before the MSPB.

We believe that the demonstration project was useful and both agencies benefited from it. However, the demonstration program has served its purpose, and we do not believe it should be reauthorized.