Goodwill Industries International, Inc. » Advocate

Proposed Legislation Could Hurt Programs That Help Job Seekers

Twelve-and-a-half million people in the United States are currently unemployed, and 5.1 million have been out of a job for over six months. For individuals struggling to find work, federally funded employment and social services programs are crucial resources on the road to employment. This week, the U.S. House of Representatives Budget Committee worked to advance legislation that aims to avoid an automatic, across-the-board spending cut scheduled for January. Today, the House passed legislation (H.R. 5652) that would reduce the deficit through targeted reductions to entitlement programs for the poor. Another bill, the Sequester Replacement Act of 2012 (H.R. 4966), proposes to make key changes to provisions agreed to by Congress last year in the Budget Control Act (BCA). In order to prevent programs — like those that support Goodwill’s efforts to help people find jobs and advance in careers — from absorbing the bulk of the automatic cuts, Democrats and Republicans instituted a firewall in the BCA to ensure any budget reductions come proportionally from both defense and non-defense programs. This firewall also encourages the two parties to develop bipartisan legislation to reduce the deficit. The new Sequester Replacement Act bill would reduce FY 2013 spending agreed to in the Budget Control Act. While the BCA provides $1.047 trillion in discretionary spending, the new act would reduce that amount by $19 billion. Without the above firewall, any additional cuts would likely be absorbed by the type of programs that support Goodwill’s mission. If H. R. 4966 is passed, however, the bill is likely to stall in the Democrat-controlled Senate. Throughout the remainder of this Congressional session, we can expect additional partisan deficit-reduction battles with similar results. With both Republicans and Democrats alike hoping that they’ll have a good night on November 6, earnest deficit-reduction efforts will likely take place after the November elections. In the meantime, Goodwill continues to urge Congress to take steps to advance bipartisan legislation that would strengthen local Goodwill agencies’ efforts to help our nation’s 12.5 million unemployed workers find jobs and advance their careers.

Job Creation and Skills Training Should Be a Priority this Election

Goodwill® knows all too well the various employment challenges that many Americans face. As the election season heats up, voters want candidates to focus on getting people back to work. A recent poll conducted by Glassdoor, an online jobs and career firm found two-thirds of respondents believe this should be a top priority of the presidential candidates. Unfortunately, the results showed a disparity between the desire to reducing unemployment and the need for providing new skills training for the unemployed. Only 38 percent of those responding indicated job training should be a priority, making it one of the least popular options. One may also assume from these findings that Americans need to be further educated on the unemployment rate and the reasons why people are unemployed. More than 4 million people benefited from Goodwill job-training and community based services last year. Some of those individuals have a disability or disadvantage while others may have been in a position of being laid off after 30 years on a job or have to learn a new skill set after years of working in the same career. Other priorities for those polled and the percentage of respondents showing support include:

Creating jobs in the private sector (45 percent)
Incentives for small business and entrepreneurs (45 percent)
Increase income tax for those making more than $250,000 per year (42 percent)
Help getting military veterans back to work (40 percent)
Supporting American innovations (40 percent)
Creating jobs in the public sector (38 percent)

As an human services provider providing over 200,000 supports and services, a nonprofit earning the trust of 79 million donors, and an employer of over 105,000 individuals – Goodwill’s public policy and legislative agenda reflects each of these priorities.

Goodwill® Remains Hopeful about Bipartisan Job Training Bill

Enacted in 1998, the Workforce Investment Act (WIA) is long overdue to be reauthorized. Once Congress reconvenes on May 4, the House Committee on Education and the Workforce is expected to consider two bills, a Republican version – H.R. 4297; and the Democrats’ alternative – H.R. 4227, that propose to reauthorize the 14-year-old law.

Especially in an election year, the partisan differences are likely to take center stage, with the elephant in the room being that the Republican version proposes to consolidate 27 job training programs into a single one-size-fits-all block grant, while the Democrats’ version would maintain, yet improve, most existing programs. Despite that, the two bills are aligned in a number of ways. For example, they seek to simplify performance measures, dedicate funding for training, and require mandatory partners to contribute resources to support one-stop career centers.

During a committee hearing last week, Republicans and Democrats alike agreed that there are many areas of agreement in their respective bills. This is a sliver of hope that members of the committee may set election-year politics aside in order to develop a bipartisan bill that reflects these important areas of agreement and builds upon the strengths of the workforce system.

When Congress reconvenes on May 4, the Committee is expected to mark up a WIA reauthorization bill. With unemployment rates still stubbornly high, Goodwill is urging Congress to develop a bipartisan bill that has true potential to move quickly through the Senate and be signed by the president.

House Workforce Legislation Would Consolidate Training Programs

On Tuesday, April 14, the House Education and the Workforce Committee held a hearing to explore the merits of recently-released bills that would reauthorize the Workforce Investment Act. The hearing occurred on the very day that approximately 200 representatives from local Goodwill® agencies across the country met with more than 320 congressional offices to urge Congress to provide adequate funding for job training programs while improving existing job training programs by reauthorizing the Workforce Investment Act. In opening remarks, Rep. George Miller, the committee’s ranking Democrat recognized Goodwill leaders in the audience representing local Goodwill agencies from Oakland, Los Angeles, Boston, Michigan and San Francisco. “Those agencies are an example of how federal investments can leverage additional resources and expertise to help to get people back to work and onto career paths,” he said. At the center of the discussion is whether to consolidate a number of job training programs, and if so, how many. The Republican proposal would consolidate 27 job training programs into a single block grant to states. Rep. Virginia Foxx, (R-NC), a cosponsor, emphasized that President Obama called for a consolidation of workforce training programs in his State of the Union address; that seven of targeted programs would also be consolidated under a Democratic version of the bill (HR 4227); and five others have either never been funded or haven’t been funded for years. Rep. Miller retorted that he had “serious concerns” about the Republican version, specifically its proposal to consolidate 27 programs into one fund. “It allows limited resources to be funneled away from where they are needed the most,” he said. Despite their differences, committee members recognized that there is potential for a bipartisan path forward. “I can see some of the larger issues are difficult to deal with, but I don’t think they are insurmountable,” said Rep. John Tierney (D-MA); while Rep. Foxx noted that “there are places where we can agree on what needs to be in the bill that we pass.” The committee also discussed moving forward with the legislative process soon by marking up a bill very soon; however a markup has yet to be scheduled. If the Committee does mark up a bill, the core partisan differences are likely to be vigorously debated. Goodwill will continue to urge for bi-partisan efforts to pass a bill that builds upon the strengths of the workforce system while making long-needed improvements.

Join the Goodwill® on the Hill – Virtual Advocacy Day!

Goodwill Industries International (GII) is looking forward to conducting its sixth annual advocacy day on Tuesday, April 17, as part of the GII Spring Conference. Nearly 200 Goodwill advocates from around the country will visit Capitol Hill to advocate for federal funding for programs that leverage Goodwill and benefit the people we serve, and for the reauthorization of the Workforce Investment Act (WIA). Advance the impact of these in-person meetings by showing your Goodwill support even if you can't attend! As Congress considers what can be accomplished before the elections, Goodwill is working to ensure that our elected leaders recognize the resources, (including YOU, our supporters), that Goodwill brings to the table as we advocate for people in need in communities across the United States. Take part in the Goodwill on the Hill Virtual Advocacy Day to make your voice heard! Join the event on Facebook and we’ll send you quick and easy action items you can take to demonstrate your support for Goodwill. The GoodwilI Legislative Action Center allows you to have a voice, and with one click of a button you can contact your member of Congress.

Tight Government Budgets Make Nonprofit Sector a Tempting Revenue Source

As the economy slowly recovers, governments at both the state and federal levels are hard pressed to stretch limited resources to cover an increasing number of priorities. Squeezed between the proverbial rock and a hard place, government officials are not only looking for programs that they can eliminate or scale back, but new sources of revenue. On the revenue side of the discussion, the bulk of the attention has focused on proposals to change the tax code as it affects individuals or corporations. Yet many states have considered proposals that could make the nonprofit sector a tempting source of revenue during these difficult times. According to the Urban Institute’s estimates, there are nearly 1.6 million tax-exempt organizations in the U.S. More than 1 million (nearly 67 percent) are religious, charitable or similar organizations. On Tuesday, April 3, the Urban Institute hosted a “Are There Too Many Nonprofits,” a provocative forum that explored the costs (in terms of tax exemptions) of the nonprofit sector, and the return our society and communities receive in exchange for this public investment. As government support for human services has declined, more than 1 million charitable organizations are becoming even more dependent on private revenue sources to keep their doors open. In our free-market society, we like to think that the most beneficial organizations will survive while the less beneficial and less agile organizations will be absorbed or go out of business. Yet Pennsylvania’s Chief Deputy Attorney General Mark Pacella believes a lack of transparent information makes it hard for many donors to distinguish the good charities from the bad. No matter what information exists, comparing one tax-exempt organization to another is often an apples-to-oranges exercise. To add to the complexity, some for-profit enterprises are blurring the for-profit/nonprofit distinction for individual donors. For example, some for-profit thrift stores ask for donated goods by implying that proceeds will benefit charity. In reality, little to none of these proceeds benefit charities. In contrast , Goodwill raised more than $4 billion in its retail stores and other entrepreneurial enterprises in 2010; investing approximately 84 percent to provide job training, employment services, and other supports to help nearly 2.5 million people find a job or advance in careers. As it has for the past 110 years, Goodwill is aggressively expanding its entrepreneurial enterprises to increase its capacity to do more, especially during these difficult times. Meanwhile many agile nonprofit organizations – “good and bad” alike – are shifting fundraising efforts away from government sources, which are expected to continue to decline toward private sources. At a time when governments are asking charities to do more with less and nonprofits like Goodwill are seeing a drastic increase in the number of people needing services, policymakers should look for ways to protect – if not increase – charitable giving incentives to organizations that have the capacity to help people in their communities in profound and positive ways.

Employment-Boosting Legislation Introduced in House of Representatives

Today, Reps. Virginia Foxx (R-NC), Howard “Buck” McKeon (R-CA), and Joe Heck (R-NV), all members of the House Committee on Education and the Workforce introduced The Workforce Investment Improvement Act of 2012 (PDF) . While Goodwill® is still analyzing the bill’s details, it proposes to consolidate 27 programs into one Workforce Investment Fund. The new proposal is based upon on previous bills introduced last year by the three representatives. The bill introduced today is contrasted by a bill introduced last week (PDF) by Democrats on the committee. The Democratic alternative would: • Preserve existing programs for youth, adults, dislocated workers, older workers and veterans • Expand priority-of-service requirement to include individuals with barriers to employment • Clarify that participants are not required to receive core or intensive services before receiving training • Require training to be linked to high-growth sector of the economy • Authorize additional funding (three percent of amount for three core funding streams) for infrastructure With the Republican bill now introduced, the committee is expected to mark up the Workforce Investment Improvement Act of 2012 very soon. If reported favorably by the committee, it would be cleared for consideration on the House floor. While election-year politics are likely to slow the bill’s progress and may prevent WIA from being reauthorized before Congress adjourns, Goodwill will continue to inform the reauthorization process going forward.

House Bills Unveiled This Week Have Implications for Job Training

This week, House Republicans unveiled a $3.5 trillion spending plan that proposes to reduce the national debt. The proposal, which aims to balance the budget by 2040, relies heavily on significant spending reductions for a number of popular social programs including Medicare, Medicaid and food stamps. Education and job training programs would also be consolidated. The proposal asserts that spending on Pell Grants could be reduced by targeting Pell’s student aid at the neediest students. The plan was unveiled on Tuesday, March 20, and passed by the House Budget Committee on Wednesday by a 19-18 vote. Two Republicans crossed party-lines to vote against the proposal. Next, the plan will be considered on the House floor, where it is expected to gain strong support from most Republicans and fierce opposition from Democrats. The proposal has little chance of passing in the Senate where Democrats hold the majority. Meanwhile, the Senate is developing FY 2013 spending bills that will provide a total of $1.047 billion in discretionary spending as agreed to in the Budget Control Act, which passed Congress last year. However the new House plan proposes to spend $19 billion less than the Senate version, setting up an end-of-the-year budget showdown that will most likely be resolved after the November election. Developments on the Workforce Front As noted earlier, the House-proposed budget proposes to consolidate education and job training programs, most likely as proposed in legislation (H.R. 3610) introduced by Rep. Virginia Foxx last year. Combined with two other bills, H.R. 2295 and H.R. 3611, the Foxx bill is expected to be part of the framework for a Republican bill to reauthorize the Workforce Investment Act. This week, House Democrats countered the Foxx bill by introducing a Democratic alternative, HR 4227. Bill sponsors assert that the Democratic alternative reflects three core principles:

Streamlining and improving workforce investment system programs
Strengthening workforce investment system accountability
Promoting innovation and best practices within the workforce investment system

The workforce system, which has often been a recent target for spending cuts, will need to make a delicate line to preserve funding for employment services, job training and education programs the help people to find jobs and advance in careers, while advocating for needed systemic improvements that could be achieved through WIA reauthorization. Should funding be lost for the workforce system of today, it will be very difficult to find new funding for the workforce system of tomorrow.

Goodwill® Is Going to the Hill!

Goodwill Industries International, Inc. (GII) is looking forward to conducting its sixth annual Advocacy Day on Capitol Hill on Tuesday, April 17. As Congress considers what can be accomplished before the elections, GII is working to ensure that our elected leaders recognize the resources that Goodwill’s enterprise, comprised of 158 community-based organizations, brings to the table. Among the issues likely to be covered during Hill visits include:

• Funding programs of importance to the Goodwill enterprise and the people we serve; • Reauthorizing the Workforce Investment Act (WIA), including the Rehabilitation Act; • Reauthorizing Temporary Assistance to Needy Families (TANF); and • Reauthorizing the Older Americans Act (OAA), including the Senior Community Service Employment Program (SCSEP)

While stakeholders such as Goodwill executives, board members, staff and program participants will be conducting in-person meetings with Members of Congress and staff, we hope that supporters like you will take part in our Virtual Advocacy Day. The GII Legislative Action Center allows you to have a voice, and with one click of a button you can contact your Member of Congress. Stay tuned for further details and information about how you can be a part of our Virtual Advocacy Day!

Action Needed to Demonstrate Support for Job Training

Federal spending is under an intense microscope this year. Unless Members of Congress hear clear support for the workforce system from stakeholders and others that support job training, it will likely be a tempting target for federal budget cuts. Spending and deficit reduction will likely be fiercely debated during this Congressional session, dominated by election-year politics. March 20 and 27 are the respective deadlines for legislators to communicate their FY 2013 funding priorities to the House and Senate Appropriations Committees. Workforce funding for adults, youth, and dislocated workers has steadily eroded over the past decade. In 2002, when the unemployment rate was 5.8 percent, funding for the Workforce Investment Act’s youth, adult, dislocated worker programs totaled more than $3.67 billion. FY 2012 funding for these programs and a new Workforce Innovation fund total $2.65 billion – a reduction of more than $1 billion – or 25 percent less than in 2002, at a time when unemployment remains stubbornly high at more than 8 percent. Under last year’s Budget Control Act, Congress may appropriate up to $1.047 trillion in discretionary spending for FY 2013. While House Republicans may insist on capping spending even further, Senate leaders are moving forward with the cap outlined in the Budget Control Act. What’s more – unless Congress agrees to a deal to reduce the deficit over 10 years by $1.2 trillion, non-defense discretionary spending will be reduced on January 1, 2013 by roughly 9 percent. Budget appropriators are hard pressed to find savings wherever they can. As the cliché goes, “the squeaky wheel gets the grease,” and proponents of a range of discretionary programs are working to demonstrate support for the programs they most care about in order to convince appropriators to look for savings elsewhere. In other words, silence is deadly. Please voice your support for job training today.

New TANF Provision to Address EBT Card Abuse Draws Praise, Raises Concerns

In 2010, Goodwills provided services to nearly 160,000 people who received Temporary Assistance for Needy Families (TANF), and received over 112,000 referrals from TANF agencies. With the number of families living in poverty at an all-time high, Goodwill actively seeks opportunities to educate Congress and the public about our programs that assist this vulnerable population. To extend the TANF program through September 30, 2012, Congress passed the Middle Class Tax Relief and Job Creation Act on February 17; it was signed into law by President Obama on February 22. The TANF extension does not make broad changes, but two new provisions were added. Following the lead set by several state legislators, the law now prohibits Electronic Benefit Transfer (EBT) cards from being used in liquor stores, casinos and adult entertainment venues. States will have to adopt and implement policies meeting the requirements to be spelled out by HHS, or risk losing federal funds. States face a five percent cut in their annual TANF funding for failure to create policies within two years. Reports of TANF EBT Fund Misuse Supporters of the new provision cite several news accounts and investigations highlighting abuses of EBT funds. For example, an investigation conducted by the Los Angeles Times last year found that $1.8 million in TANF funds were withdrawn in casinos. Governor Arnold Schwarzenegger than issued an executive order urging officials to crack down on fraud and requiring TANF beneficiaries to promise to use funds only to “meet the basic subsistence needs” of their families. Probes in Atlanta discovered $150,000 in TANF benefits was accessed in liquor stores and nightclubs, while a report in Michigan found more than $87,000 had been withdrawn from a Detroit casino over a 12-month period. Representative Dave Camp (R-MI), Chairman of the House Ways and Means Committee cited these examples among others when proposing the change to the law. Opposition to TANF EBT Provision Advocacy groups on behalf of low-income individuals state that the new restrictions further stigmatize TANF recipients and are unnecessary for struggling families. Funds that may be used to pay rent may be withdrawn at a local liquor store because it is the closest or lowest-cost ATM available to some TANF recipients. The Federal Funds Information for States has reported that few states have studied the use of EBT cards at the venues in question and those that have studied this have found less than 0.1 percent of TANF transactions had occurred at these locations. Some states have also expressed concern with the costs of keeping up with new requirements including identifying the ATMs and keeping updated records. Congress has tasked the Government Accountability Office with examining the TANF program and whether it is vulnerable to fraud, waste and abuse. The report is expected to be released in May or June and will look at 10 states, where TANF benefits are accesses and type of retailers. The report will likely assist with Congressional efforts to reauthorize the program when it expires at the end of September. Additionally, the bill now requires the Department of Health and Human Services (HHS) to set data exchanges, likely a useful improvement in the quality and usability of TANF information. The creation of the data exchanges will occur through the regulatory process.

Deficit Reduction Has Implications for Goodwill®

As a result of the deficit reduction deal made by Congress last year, the FY 2013 budgets for defense and non-defense defense discretionary spending are scheduled to be automatically reduced by approximately $813 billion on January 2, 2013 ($492 billion from the defense discretionary budget and $322 billion from the non-defense discretionary budget). While neither party wants to see these reductions, Democrats and Republicans disagree sharply about how to prevent them, and are hoping that the outcome of this year’s elections will provide the additional leverage they need to implement their particular approaches. As a result, the work to solve these important issues is unlikely to begin in earnest until after the November election (yet before the next Congress convenes after the January 2 deadline), in a “lame duck” session. The administration’s budget request, released last week, outlines a plan that proposes to avoid the automatic spending cuts required by the Budget Control Act that Congress passed last year. Under the proposal, the automatic cuts – some of which would affect federal investments that support local Goodwill agencies’ efforts to help people find jobs and advance in careers – would be avoided by cutting mandatory spending, and increasing tax revenue. Tax revenue would be increased by allowing certain tax breaks for high earners to expire, and limiting the value of the itemized deduction to 28 percent for couples with incomes of more than $250,000 and individuals with incomes of more than $200,000 – a proposal that would be likely to affect giving to charitable organizations, including Goodwill. As expected, the proposal is receiving a partisan reception on Capitol Hill; however, the administration is betting that such steep automatic spending cuts to discretionary spending programs will force Republicans to cut a deal at the 11th hour.

Goodwill® Programs Fare Well under Federal Spending Plan

This week, the Obama administration unveiled its budget request for FY 2013. Goodwill® is pleased to report that proposed federal funding remains steady for programs that support our mission. Read more about our priority issues below and click here (PDF) to view ourside-by-side comparison of FY 2012 appropriations to FY 2013 proposals.

American Jobs Act (AJA)

Obama’s plan proposes funding for American Jobs Act (first proposed last year) initiatives that address long-term unemployment and provide opportunities to put people back to work. Such initiatives include: 1) A $12.5 billion “Pathways Back to Work” program which would invest in subsidized employment and work-based training programs for long-term unemployed and low-income people 2) An $8 billion community college initiative to support state and community college partnerships with businesses to build the skills of American workers.

Older Workers

The budget plan also proposes to provide nearly $450 million for the Senior Community Service Employment Program (SCSEP), level funding compared to FY 2012. As it did last year, the administration proposes to transfer SCSEP from the U.S. Department of Labor to the U.S. Department of Health and Human Services’ Administration on Aging. The budget asserts that the transfer would improve coordination between SCSEP and other senior-serving programs and to help the program better fulfill its dual goals of fostering individual economic self-sufficiency and promoting useful opportunities in community service. Since the transfer was first proposed last year, Goodwill has encouraged members of Congress to consider the transfer as part of efforts to reauthorize SCSEP (Title V of the Older American’s Act) rather than as part of the appropriations process.

Temporary Assistance for Needy Families (TANF)

The TANF program is due for reauthorization this year. While the president’s budget does not include specific provisions related to reauthorization, it does propose to provide $319 million in permanent funding for TANF supplemental grants. This funding will be granted to 17 states for population increases. However, the cost for this proposal would be paid for by reducing funding for the TANF Contingency Fund, which is used to assist states with needs stemming from a downturn in the economy. The administration notes they will work with Congress to revise the Contingency Fund to make it more effective during economic downturns, which could result in increased opportunities for collaboration with Goodwill agencies. Agencies that have received funding through the Healthy Marriage and Responsible Fatherhood grants will be pleased to know that the budget continues level funding for this program.

Deficit Reduction

The president’s budget also calls upon Congress to replace $1.2 trillion in automatic spending cuts, as required under the Budget Control Act, with alternative deficit-reduction measures. Without such an alternative, final FY 2013 defense and non-defense discretionary spending will be reduced across the board by roughly $813 billion ($492 billion from the defense discretionary budget and $322 billion from the non-defense discretionary budget) starting on January 2, 2013.

Itemized Tax Deductions

Lastly, the president’s budget proposes to raise an estimated $584 billion over 10 years by capping itemized deductions at 28 percent for taxpayers who earn more than $200,000 per year ($250,000 for families). Many nonprofit leaders are concerned that such a proposal would stifle charitable donations that community-based organizations use to support their mission. We look forward to working with policymakers this year to promote investments that help people find jobs and advance in careers despite a difficult job market.

Goodwill® a Founding Member of Campaign to Invest in America’s Workforce

Numerous times over the past several years, policymakers have considered proposals to drastically reduce or eliminate investments that help educate and train people to improve their skills, find jobs, and advance in careers. In anticipation that this trend will continue, a new effort was launched last week by 35 national organizations including Goodwill Industries®. Called the Campaign to Invest in America’s Workforce, the initiative engages a diverse coalition of community-based, faith-based and civil rights organizations; workforce development and job training providers; community colleges and universities; providers of career and technical education and adult basic education; workforce investment boards and staff; and state and local public officials. Policymakers face difficult choices as they work to get our nation’s fiscal house back in order while ensuring that the U.S. remains competitive. Should we reduce spending by eliminating, consolidating and streamlining many training and education programs? Or would investments aimed at increasing and strengthening the middle class result in increased tax revenues and reduced spending on social programs? As policymakers search for the right strategies that aim to improve our nation’s economic prospects, Campaign for Invest in America’s Workforce challenges policymakers to win the global skills race by investing in programs that strengthen our nation’s ability to compete in the global economy; help U.S. businesses grow and create jobs; support and leverage community resources; and help everyone to contribute to and share in our national prosperity. Click here to learn more about the Campaign to Invest in America’s Workforce.

Senior Job Seekers Stand to Benefit from New Senate Bill

Senior job seekers stand to benefit from a new bill recently introduced in the Senate to reauthorize the Older Americans Act (OAA). First funded in 1965, the act was the first federal level initiative aimed at providing services for older adults. Sen. Bernie Sanders (I-VT) introduced the bill (S. 2037) (PDF) on January 26 and highlighted several provisions in the legislation, including those intended to strengthen and expand the Senior Community Service Employment Program (SCSEP). Since 2006, Goodwill Industries International has been a national SCSEP grantee, helping seniors grow skills, land a job and earn an income. In addition, several local Goodwill® agencies are involved in SCSEP through state grants. The bill calls for significant investments in four key areas - including at least $660 million for FY 2013 to support SCSEP. While SCSEP’s FY 2012 appropriation is $450 million, the larger proposed amount could improve prospects for increased funding levels in the future. However, such an increase is unlikely in the near future considering current concerns over debt and the deficit. The proposal also addresses some of GII’s key priorities for reauthorization, including expanding pilot and demonstration authority to test sector strategies, and maintaining the 48-month durational limit of the program, and continuing with the structure of grant competition and data collection. The bill would also require the Assistant Secretaries on Aging from the U.S. Departments of Labor (DOL) and Health and Human Services (HHS) to conduct a study on the feasibility of transferring the program from DOL to HHS’s Administration on Aging. To date, Senators Casey (D-Penn.), Kohl (D-Wis.), Franken (D-Minn.), and Klobuchar (D-Minn.) have also introduced OAA reauthorization bills, and are expected to work together to craft a bill reflecting their priorities in the coming months. While GII is currently evaluating how these proposals might affect its SCSEP programs, we look forward to working with Congress to reauthorize the OAA so that older workers can continue to receive the job-training skills they need to return to work.

State of the Union Address Includes Programs for Job Seekers

On Tuesday evening, U.S. President Barack Obama delivered his State of the Union address to Congress, outlining messages that are likely to form the foundation for his reelection campaign. The president’s speech acknowledged that, at a time when unemployment is stubbornly declining from the highest rates experienced in a generation, growing industries in science and technology can’t find workers with the right skills to perform the jobs they need to fill, resulting in twice as many openings as workers who can do the job. The remark provides context for the administration’s Blueprint for an America Built to Last (PDF) also unveiled on Tuesday evening. The blueprint includes several proposals that aim to help workers to attain the skills they need to fill millions of mid- and high-level skilled positions in industries ranging from healthcare to advanced manufacturing, and clean energy to information technology. While short on details, such proposals include:

Building partnerships between community colleges and business to train and place two million skilled workers
Reforming job training and Unemployment Insurance to help put Americans back to work
Keeping students in high school
Putting veterans to work protecting our communities and preserving our natural resources

“With or without this Congress, I will keep taking actions that help the economy grow,” he noted, hinting that these proposals may result in legislation as when he unveiled the American Jobs Act last year. He also suggested he would implement many of his plans through executive orders, as done recently through the White House’s We Can’t Wait campaign. Goodwill® has a long history in helping people find jobs and advance in careers, Last year, Goodwill raised more than $4 billion in its retail operations and other self-sustaining social enterprises, investing more than 84 percent of these revenues to support efforts similar to several proposals outlined in the Blueprint for an America Built to Last. Goodwill’s efforts include enhanced partnerships with community colleges, mentoring programs, and a renewed commitment to hiring and serving more veterans. As the leading private partner with the workforce system, we look forward to more details about the administration’s new proposals and how these plans will leverage community-based stakeholders like Goodwill.

Congressional Action Can Prevent Worsening Poverty Situation

A new study released by Indiana University finds that poverty is likely to get worse despite a recovering economy due to long periods of unemployment, continued impact on budget cuts to social programs and the quality of new jobs. The authors credit the 2009 federal stimulus package for improving the employment situation, noting conditions would otherwise be much worse. However, the study also shows that although unemployment is falling, the data may be skewed as an increasing number of people give up their job search and are no longer counted in the unemployment rate. The United States has faced a 27 percent increase in poverty between 2006 and 2010. In 2010, there were over 45 million people living in poverty, about 15 percent of the U.S. population. Furthermore, more than four million Americans report being unemployed for more than 12 months. Many different subgroups have seen increases in poverty, especially Hispanics and African Americans. Poverty is greater among children than seniors, and greater among female-headed households. There has also been surprising growth in poverty among working-age adults, especially those between the ages of 18 and 34. The report takes into account the official federal measure of poverty and a new supplemental measure (which accounts for geographical differences in the cost of living), when highlighting the 10 states with the highest poverty growth in percentage points: Florida, Nevada, Arizona, Michigan, Indiana, Ohio, California, Connecticut, South Carolina, and Minnesota/North Carolina/Wyoming (tied for 10^th). The study warns that if Congress does not protect benefits for the long-term unemployed, and continues to make cuts to social safety net programs while reducing state fiscal relief, the poverty situation will worsen. The U.S. Congressional Budget Office assumes the economy will not be at full employment until 2017, thus the next five years is already forecasted to be a period of continued economic hardship. With agencies on the front-lines providing training and employment opportunities to the long-term unemployed and families in poverty, Goodwill looks forward to working with Congress and the Administration to help Americans during these hard times, specifically through reauthorization of the Temporary Assistance to Needy Families Act, the Workforce Investment Act, and the Older Americans Act.

Goodwill® Sets Agenda to Support Job Seekers in the Recovery

While jobless claims and the unemployment rate are showing some improvement in the overall employment picture, it’s interesting to look behind these numbers and examine just who is suffering – and benefiting — the most during this modest recovery.

How Workers Are Faring in the Recovery

A recent report, Employment Patterns During the Recovery: Who Are Getting the Jobs and Why? (PDF) examines the distribution of employment gains among certain populations since the beginning of the current recession. This report, authored by two Federal Reserve Bank assistant vice-presidents, provides good insight into current labor market trends that local Goodwill® agencies can leverage to better support the needs of their local communities. The report finds that workers with higher levels of education have experienced the strongest employment gains during the recovery, while workers with less than a high school education and workers ages 25 to 54 have remained stuck in recession and continue to experience employment declines. These findings reflect current industry hiring trends. Lower education industries, such as manufacturing, construction and transportation, have been suffering the worst employments gains since the recession began, while employment growth in the education, health and business services industries has been strongest during the recovery.

Goodwill’s Commitment to Supporting Job Seekers

In consonance with these findings, GII’s 2012 Public Policy Agenda was drafted in close consultation with Goodwill members and leaders of GII’s mission advancement team. The agenda includes community college and community-based organization partnerships as a top level funding priority. Issues such as improving educational attainment outcomes, training in high-growth sectors and improving private-public partnerships are all areas in which local Goodwill agencies can concentrate their efforts to assist unemployed individuals in gaining valuable new skills they need to re-enter the workforce. To further support Goodwill’s efforts in local communities, GII will continue to urge Congress to reauthorize important pieces of legislation, including the Workforce Investment Act (WIA), the Older American’s Act (OAA), and the Temporary Assistance for Needy Families (TANF) in 2012.

Congress to Resume Spending Bill Discussions on Heels of 2011 Logjams

When the 112^th Congress wrapped up its first session in December, it left behind a legacy of partisanship that caused public approval ratings to reach historic lows. As of mid-December, Congress had passed the fewest number of bills since 1995. Legislators’ inability to reach an agreement on how to manage the budget and reduce debt triggered across-the-board spending cuts for 2012, and a lack of consensus on fiscal policy also contributed to the failure of President Obama’s $447 billion job creation package. In the face of these logjams, Congress managed to clear a three-year minibus bill for 2012 appropriations in November, and included the remaining nine spending bills in an omnibus passed in December. It also declared a two-month extension of the expiring payroll tax and jobless aid provisions to assist the long-term unemployed.

Priorities for Early 2012

As the second session kicks into gear this month, lawmakers will have to work quickly on payroll tax relief, emergency unemployment benefits, and reauthorization of Temporary Assistance to Needy Families (TANF), all of which were only extended through February. Goodwill^® looks forward to Congress addressing several other issues of importance to the enterprise and the people we serve including:

Farm Bill Reauthorization: House and Senate committee leaders have noted they will seek $23 billion in reductions. The bill will set policy in a variety of areas including food stamps.
Elementary and Secondary Education Act Reauthorization: The Senate committee approved a bill during the last session. House Republicans plan to move forward with their own package after negotiations with Democrats halted.
Workforce Investment Act (WIA) Reauthorization: House Republican committee leaders will use three bills recently introduced for the foundation for a Workforce Investment Act (WIA) bill while Senate committee leaders continue negotiating.
Older Americans Act (OAA) Reauthorization: The OAA contains provisions pertaining to the Senior Community Service Employment Program (SCSEP) and is important to Goodwill as a national grantee. A bill was introduced in the Senate shortly before the first session adjourned.

State Legislation in the New Year

Thirty-eight state legislatures will also reconvene this month after passing nearly 40,000 new laws last year. Last year, most states focused primarily on budget cuts and generating new revenues leading to an increase in state and local initiatives to tax and charge fees to nonprofits. In addition, four states passed job creation packages that included a tax incentive. Inaction from Congress will impact state policy agendas for 2012 as states will continue to have to make difficult spending choices. Other priority areas include immigration, transportation funding, taxes, K-12 education reform, health care exchanges and job creation.

Congress’ Year-End Spending Agreement Includes Support for Programs Significant to Goodwill®

On December 17, the Senate voted 67-32 to approve a $915 billion “megabus” spending package, clearing the measure for President Obama’s signature and closing the fiscal 2012 appropriations season. The bill provides $10.7 billion to the Department of Labor’s Employment Training Administration (ETA), which administers several programs that support local Goodwill® agencies’ efforts to help people find jobs and advance in careers. Highlights include:

$2.6 billion in combined funding for the Workforce Investment Act’s (WIA) youth, adult, and dislocated worker funding streams.
Nearly $450 million for the Department of Labor’s Senior Community Service Employment Program (SCSEP). Under the bill, SCSEP would continue to be administered by the Department of Labor and would not be transferred to the Department of Health and Human Services’ Administration on Aging as proposed in the Obama Administration’s FY 2012 budget.
A combination of discretionary and mandatory spending, the maximum Pell grant will be maintained at $5,550 per student. Unfortunately, the bill includes changes to Pell grant eligibility, including reducing the number of years a student can use Pell grants from nine to six; requiring recipients to have a high school diploma, GED, or been home schooled; and lowering the adjusted gross income level to $23,000 before the expected family contribution will be zero.

While the bulk of Goodwill’s employment and supportive services are supported by the revenues generated in Goodwill’s self-sustaining business enterprises, funds for these and other federal programs support many local Goodwill agencies’ efforts to do in their communities to help people who face employment challenges. Although several priority programs will receive slight funding reductions, GII is pleased that Congress rejected the drastic cuts to WIA as proposed in the House. However, we are disappointed by the eligibility changes for Pell grants, which are an important component of Goodwill’s effort to enhance local agencies’ collaboration with community colleges. While many of Goodwill’s funding priorities fared well at the end of the FY 2012 appropriations cycle, economic concerns couple with election-year politics are likely to bring new threats to programs that support Goodwill’s efforts to help people to find jobs and advance in careers. Goodwill will continue to urge policymakers to invest in programs that help people to experience the power of work.

Proposed Legislation Aims to Consolidate Federal Job Training Programs

In response to a January 2011 Government Accountability Office (GAO) report, Rep. Virginia Foxx (R-NC), introduced the Streamlining Workforce Development Programs Act last week, which proposes to eliminate 33 existing training programs and consolidate them under four new workforce investment funds. Programs on the chopping block include programs that aim to help older workers (including the Senior Community Service Employment Program or SCSEP), youth, veterans, people with disabilities, Native Americans, migrant and seasonal workers, and others access job training and employment services. These programs support the efforts of many local Goodwill agencies that work in communities nationwide to help people find jobs amid a bleak job market. The bill would consolidate many these programs in order to authorize spending nearly $7 billion to establish four new workforce investment funds:

A Workforce Investment Fund bill of $4.3 million would allocate funds through a formula to states to provide job training to adults, unemployed workers, and youth seeking employment.
A new $1.9 million State Youth Workforce Investment Fund would direct resources to support efforts that aim to help disadvantaged youth to complete school.
A Veterans Workforce Investment Fund, authorized at $218 million per year, would be established to provide funds for states to provide employment and training services to U.S. veterans.
A Targeted Populations Workforce Investment Fund of $581 million per year would help states assist special populations, including Native Americans and migrant and seasonal farmworkers.

The bill would also require state and local leaders to set common performance measures for all employment and training programs. Local JOBS Act In addition to the act introduced by Rep. Foxx, Rep. Joe Heck (R-NV) proposed the Local Job Opportunities and Business Success (Local JOBS) Act last week. The bill proposes to change the composition of local Workforce Investment Boards by requiring two-thirds employer representation on local boards. This bill, in combination with a bill introduced by Rep. Howard “Buck” McKeon’s (R-CA) will serve as the foundation for work aimed at reauthorizing the Workforce Investment Act (WIA). While Goodwill has concerns – for example training resources for older workers would be eliminated, yet the bill does not direct new resources to address the unique needs of older workers – Goodwill looks forward to working with the House Education and the Workforce Committee to develop and advance bi-partisan legislation that would improve the delivery and effectiveness of job training services to people in communities who face employment challenges.

Goodwill® Announces 2012 Public Policy Priorities

While election-year politics are expected to dominate the 2012 congressional session, a number of issues that Goodwill® cares about are likely to be up for discussion by Congress next year. In anticipation of these conversations, Goodwill has released its official public policy agenda for 2012 (PDF). Goodwill supports a broad range of issues due to our self-sustaining model, which consists of operating business enterprises to generate a private source of revenue to fund our mission; providing job training and employment services that help people to overcome employment challenges; and hiring many people who come to Goodwill for help within Goodwill-operated businesses. The 2012 public policy agenda was developed with this model in mind and after consultation with our leadership and membership to ensure that it reflects the direction and needs of the Goodwill enterprise. While the agenda lists numerous issues, it identifies the following four as top priorities:

Funding
Workforce Investment Act (WIA) reauthorization
Older Americans Act reauthorization
Temporary Assistance for Needy Families (TANF) program reauthorization

In addition to identifying issues to proactively pursue, prioritizing GII’s public policy agenda also helps Goodwill to identify issues on which to develop new positions and relationships. For example, in anticipation of a U.S. withdrawal from Iraq and Afghanistan, Goodwill released a white paper this year called “From Deployment to Employment” (read the executive summary and full paper) about the needs of military service members, veterans, and their families. In 2012, Goodwill will more proactively seek opportunities to develop partnerships and engage policymakers to improve needed supports for these populations. Read Goodwill’s 2012 public policy agenda.

Goodwill® Educates Donors, Congress on Charitable Giving This Holiday Season

During the economic downturn of the past few years, charitable donations have decreased dramatically across the nonprofit sector, with some leaders predicting it will it take charities six years to return to where they were financially in 2007. Further reductions in these donations will reduce nonprofits’ ability to serve the individuals and families who rely on them for job training and other critical community-based services. With one month remaining in the 2011 tax year, Goodwill® is empowering donors like you to make informed decisions about where you donate, and urging Congress to protect charitable giving incentives that ensure you continue to receive a deduction for your contributions. Know Your Donation Bin A proliferation of donation bins in convenient locations can make it difficult for donors like you to discern which charities are legitimate and which are actually for-profit entities or fraudulent charities trying to dupe them. There are currently 21 states and a handful of counties and municipalities with ordinances pertaining to unattended donation bins – those drop boxes that you often see in parking lots. The most common component of those laws is a disclosure label which is required to be placed on the bin noting the mission of the organization, contact information for the organization, and whether the organization is for-profit, a nonprofit, or a for-profit company collecting donations on behalf of another agency. It is up to you the donor to be educated about the organizations to which you give. You can check to see if the organization is a registered charity in the state by confirming with the state attorney general or secretary of state’s office. Additional information such as how much of their revenue goes to overhead and administrative costs can be found with a charity-rating agency such as Charity Navigator or GuideStar, or online resources such as GreatNonprofits or Philanthropedia. Charitable Deductions Drive Mission Services at Goodwill Receiving a tax deduction in return for donating is a powerful incentive for Goodwill’s 74 million donors. The majority of Goodwill’s revenue is generated by selling these donors’ contributions of clothes and household items at Goodwill retail stores and online. Eighty-four percent of collective revenues raised go directly toward supporting and growing critical community-based job-training programs and services. Ensuring donors continue to receive deductions for their charitable contributions of clothing and other goods is vital to the work of Goodwill, as the ability to create jobs and provide services depends on those contributions. Congress and the Obama administration are considering making changes to the tax code which could affect charitable giving to the detriment of our nation’s nonprofits. Goodwill has urged Congress to support the charitable deduction and federal supports in order to strengthen the lives of people we serve.

Spending Cuts Uncertain Following Supercommittee Failure

On Monday, November 21, 2011, leaders of the Joint Select Committee on Deficit Reduction confirmed that the supercommittee was unable to craft a bi-partisan agreement for cutting the deficit by $1.2 trillion before Wednesday’s deadline. As a result of the panel’s failure, a range of federal programs face automatic spending cut unless Congress can reach an agreement before January 2013. Unless Congress takes action in 2012 to reduce spending by $1.2 trillion over 10 years, the first round of automatic cuts will be shared equally by defense and non-defense spending accounts. Implications for Goodwill® Goodwill Industries understands the difficult challenge decision makers face as they struggle to reduce the deficit and limit the national debt, while stretching limited resources to support an ever-increasing list of national priorities. Reducing debt and the deficit is a serious issue that will require all to make sacrifices to address the nation’s spending problem. Tackling this serious issue also calls for wise investments in integrated strategies that will address our nation’s revenue problem by making our workforce and businesses more competitive. In the weeks leading up to the supercommittee's deadline, Goodwill urged its members help develop a plan that would reduce the deficit while protecting federal investments that support Goodwill’s efforts to help people find jobs and advance in careers. As Congress continues to focus efforts to solve our nation’s economic problems, Goodwill will continue to remind policymakers to support investments that leverage community-based organizations, like Goodwill, that help people who are struggling to make ends meet despite a bleak job market.

Goodwill® Urges Congress to Support Employment for Veterans and Military Families

On November 16, Goodwill^® took to Capitol Hill to brief Congress on our work with military families and present our latest white paper, From Deployment to Employment: Goodwill’s Call to Action on Supporting Military Service Members, Veterans and Their Families (PDF). Given the stubbornly bleak job market and constrained federal budgets, Goodwill calls for a continuum of coordinated services that address the unique needs and complex employment challenges facing veterans and military families. We also urge greater collaboration among the community-based providers, federal agencies and veteran service organizations. Rep. McKeon Reaffirms Commitment to Veterans Services Rep. Howard “Buck” McKeon (R-CA), author of the Workforce Investment Act (WIA) legislation and current chairman of the House Armed Services Committee, kicked off the session by reaffirming his commitment to helping veterans find employment and commending Goodwill for the great work it does in putting people back to work. “With unemployment rates for all veterans topping 12 percent and soldiers returning from Iraq and Afghanistan facing 22 percent unemployment rates, it is important to me to see that our veterans are given employment opportunities,” Rep. McKeon said. “I’m inspired when I see what you’re doing to help people put back to work, and I want to thank you for your efforts.” One Veteran Shares Her Story Attendees also heard from Lance Cpl. Karen Lee a U.S. Marine Corps veteran who found herself unemployed, homeless, and caring for two minor children when news that her son, an Iraqi War veteran struggling to reintegrate, was dead. She discussed the scope of services she needed to get back on her feet and the role Goodwill played in helping her navigate her way, secure her grandchildren’s benefits, stabilize her housing and find a job. “When I walked into the office the day following my son’s funeral, I was greeted with a hug. I was literally homeless with nowhere to go. Goodwill worked to secure housing for me, and at the end of ten days I had an apartment. They also helped me connect with emergency food, clothing and transportation,” Lee said. Goodwill’s Call to Action Goodwill believes that our heroes deserve the best and that we must all stand up and make a difference for veterans and military families. We encourage agencies to work together to move beyond providing a loosely woven safety net for this population and tighten up that weave into a trampoline that will bounce people to their next careers. We invite you to read our white paper to learn more about our commitment to serving veterans and military families.

Goodwill®, Policymakers Make Veterans Employment a Priority

In 2010, Goodwill® provided job training and supportive services to more than 25,000 veterans and has committed to hiring more than 15,000 military spouses, veterans, and their families this year. Goodwill is seeking to increase its collaboration with existing stakeholders and by investing resources to help military service members, veterans and families find jobs and advance in careers. On November 16, 2011, Goodwill will publicly release its new white paper From Deployment to Employment: Goodwill’s Call to Action on Supporting Military Service Members, Veterans, and Their Families at a briefing on Capitol Hill. If you live in the Greater Washington, DC, area, Goodwill invites you to attend the briefing in person.

Veterans Developments in Washington

As Veterans Day approaches, policymakers have been unveiling proposals that aim to support veterans who are struggling to find civilian jobs. On Tuesday, November 8, President Obama announced three executive actions that aim to “help make it easier for veterans to find jobs when they return home.” Flanked by representatives from prominent veterans organizations, the president also called for a Returning Heroes and Wounded Warrior Tax Credit. On Capitol Hill, Sen. Patty Murray (D-WA), who chairs the Senate Veterans Affairs Committee, recently unveiled the VOW to Hire Heroes Act of 2011, which aims to boost employment opportunities for veterans. The Senate is scheduled to consider the bill today, November 10, as part of a House-passed tax-related bill (H.R. 674) and is expected to pass with bi-partisan support. Sen. Murray’s bill combines elements of President Obama’s jobs plan with bipartisan bills (S. 951 and H.R. 2433) sponsored by Murray and Rep. Jeff Miller (R-FL) who chairs the House Veterans Affairs Committee. If passed by the Senate, the differences between the Senate- and the House-passed measures would have to be reconciled and approved by both the House and Senate before it could be cleared for the president’s expected signature.

Stand with Goodwill® in Supporting Funding for Job Training Programs

While a joint select House-Senate committee struggled to develop a plan to reduce the deficit by $1.5 trillion over the next 10 years this week, Congress is seeking to move must-pass bills that will fund government operations for the remainder of FY 2012. Congress is currently working on the spending bill that will provide FY 2012 funding for many programs of interest to Goodwill®, including the U.S. Department of Labor’s job training programs for adults, youth, and dislocated workers. Combined, current funding for these programs is approximately $3 billion. While the Senate version proposes to reduce funding to $2.6 billion, the House version proposes to drastically cut funding to less than $725 million under the rationale that it is merely changing the annual funding cycle for these programs. Especially at a time when unemployment remains stubbornly high, Goodwill believes that such a drastic cut would cripple the system, with little opportunity to restore current funding levels for these programs in future years due to the tight overall discretionary caps. Action is needed to prevent Congress from drastically cutting funding for job training programs that support Goodwill’s efforts to help people with employment challenges in your community to find jobs and advance in careers. Send a letter to your members of Congress and ask them to support the Senate version of the FY 2012 spending bill that funds the Departments of Labor, Health and Human Services, and Education. Take Action Now

Finding Jobs for Veterans Is a High Priority for White House, Goodwill®

On Tuesday, October 25, President Obama announced two executive actions that aim to help veterans find jobs. The first initiative challenges Community Health Centers to employ 8,000 veterans over the next three years, while the second initiative aims to expand opportunities that would allow more veterans to become physician assistants. Goodwill® commends efforts to create more jobs for service members, veterans and their families in light of the continuing challenges this population faces in transitioning to the civilian workforce. The Current State of Veterans Employment Services As the United States works to withdraw from Operation Enduring Freedom (OEF) and Operation Iraqi Freedom (OIF), returning service members are coming home to a bleak job market. Despite a myriad of protections and supports that aim to help veterans, the unemployment rate in September 2011 was 11.7 percent for veterans who have served since September 11, 2001. While most people leave the military prepared to enter and succeed in the civilian workforce, others face challenges – physical disabilities such as traumatic brain injury (TBI), psychological disabilities such as post-traumatic stress disorder (PTSD), substance abuse, and homelessness – that make it difficult for them to find jobs and advance in careers. Existing supports and infrastructure are ill-equipped to provide all the resources that many returning service members may need and have earned. Concern over the national debt and deficit will likely deter policymakers from allocating additional federal dollars for veteran support. Although additional investments are needed, they are not a panacea nor can they be expected when federal spending is being scrutinized. The implications are too significant to expect the federal government and stakeholders to address without more deliberate collaboration and integration among all stakeholders. Goodwill’s Call to Support Service Members, Veterans and Their Families Next month, Goodwill will unveil a white paper, “From Deployment to Employment: Goodwill’s Call to Action on Supporting Military Service Members, Veterans, and Their Families.” This new resource aims to help stakeholders understand the current support system for veterans, the employment challenges they face, and how current protections and supports could help existing and new stakeholders to come together to improve the support system for these individuals. If you would like to receive more information about the white paper, email publicpolicy@goodwill.org.

Congress Continues Jobs Legislation, Funding Limbo

One week after President Obama’s American Jobs Act (S 1660) was blocked in the Senate, Democratic leaders have been working to dissect and move segments of the comprehensive mix of tax cuts and spending proposals. Democratic leaders have signaled a desire to break the bill into four separate bills, the first of which proposes to spend $35 billion on grants that would support hiring and prevent layoffs of teachers and emergency first-responders. These grants would be paid for through a 0.5 percent surtax on household income above $1 million per year. The cost of the bill and the offset have drawn criticism from Republicans and Democrats alike, a likely indicator of the jobs bill’s eventual demise. A vote on this measure has been scheduled by Senate Majority Leader Reid to take place on Friday, October 21st. While the prospects for passing a jobs bill are bleak, Congress must also take up measures that could cause problems for existing job training programs. First, a joint select committee on deficit reduction is working to produce a plan by a November 23 deadline that would reduce the deficit by $1.5 billion over 10 years. If Congress fails to enact a plan, government programs, including job training programs, would be cut across the board starting in FY 2013. Of more immediate concern is funding for FY 2012. Since the fiscal year started on October 1, government programs have been operating on life support under a temporary spending measure that lasts through November 18. While congressional leaders are working to move some spending bills, the future is unclear for the bill that funds the U.S. Departments of Labor, Health and Human Services, and Education. The House version proposes to spend $4 billion less than the Senate version and includes deep cuts to the Workforce Investment Act’s funding streams for adults, youth and dislocated workers. At a time when unemployment remains stubbornly high, Goodwill® continues to urge Congress to protect job training programs that help put people back to work during these difficult economic times.

Helping People Return to Work Remains a Priority for Goodwill®

On Tuesday, October 11, 2011, the American Jobs Act was defeated in the U.S. Senate after it failed to attract the 60 votes needed to conclude debate. Senate Democrats now intend to move forward by breaking up the $447 billion plan in order to push for votes on smaller components that Republicans may agree to. However, given the current partisan gridlock on Capitol Hill, it's unclear if and when Congress will act. At Goodwill®, we stand ready to work with the administration and Congress to put Americans back to work and is hopeful that some of the promising aspects of the act will move forward, including increasing employment opportunities for veterans, people who are long-term unemployed, low-income adults, individuals with disabilities and youth. One of the proposals included in the President Obama’s plan was a spending offset that would have been achieved through certain tax increases. This included a proposal to cap the deduction for charitable donations for certain individuals and families; however, Senate Democrat leaders rejected this proposal, and replaced it with a proposed 5.6 percent surtax on individuals making more than $1 million per year. Goodwill worked with other nonprofit organizations to inform members of Congress about how tax incentives for charitable giving are critical to the nonprofit community’s ability to sustain their delivery of mission services. As our lawmakers continue working to reduce deficits and improve the jobs crises, Goodwill will continue to monitor legislation that could impede our efforts to do more to help people find jobs and advance in careers during these difficult economic times.