At the Hearing of the Appropriations Subcommittee on Labor, HHS, and Education, and Related Agencies to Review the Administration's Fiscal Year 2012 Budget Request for the Department of Labor
*As Prepared for Delivery*
"The Subcommittee on Labor, Health and Human Services, Education and Related Agencies will now come to order.
"Welcome back to the Subcommittee, Madam Secretary. Your appearance today comes at a critical point for your Department and for our Nation's workforce.
"After a long and difficult recession, our economy is slowly recovering. But too many workers are unemployed -- or underemployed -- and more needs to be done to ensure that all Americans benefit from economic growth, not just the wealthy.
"At the same time, Congress and the Administration must also work together to reduce our budget deficits and restore fiscal discipline. A first step was taken last month when we completed action on the fiscal year 2011 appropriations bill.
"This bill made significant cuts to the Department of Labor -- more than $800 million, or six percent, below the fiscal year 2010 level. And yet we maintained important investments in employment and training programs, worker protections and the fight against the worst forms of child labor.
"The cuts could have been much more damaging. The House Republican alternative -- H.R. 1 -- targeted programs that serve the most vulnerable Americans, including drastically cutting job training for people who have lost their jobs as a result of mass layoffs. It's hard to see the wisdom of a cut like that when the official unemployment rate remains nearly nine percent and the real unemployment rate is closer to 16 percent. Thankfully, the final FY11 bill rejected that approach.
"Now we turn to fiscal year 2012. Regrettably, we already know that programs that benefit American workers are once again being targeted for draconian cuts.
"The tea party budget passed by the House last month takes the approach that the deficit should be addressed by enacting yet another tax cut bonanza for those at the top, while ripping the social safety net for the seniors, people with disabilities, and the poor; and slashing funding for education and training. In fact, that budget would cut education and training programs by 15 percent in fiscal year 2012.
"I believe there is a better way, and history offers a guide. When President Clinton took office in 1993, he faced a similar situation in terms of the budget. He proposed a balanced approach that included spending cuts and necessary revenue increases, while continuing to make crucial investments in education, infrastructure, and research -- areas that are absolutely essential if we are going to create jobs and stay competitive in the global economy. The plan worked brilliantly. It created large budget surpluses, 22 million new jobs, and 116 consecutive months of economic expansion, the longest in American history.
"We need this same balanced approach today. Madam Secretary, there's no question that the fiscal year 2012 budget for the Department of Labor will remain tight. But the President rightly puts a high priority on programs that are critical to our long-term fiscal health -- especially in the areas of employment and training, as well as a new Workforce Innovation Fund that Congress created in the fiscal year 2011 bill.
"I'm also pleased to see that the budget request continues the disability employment initiative that Congress started in fiscal year 2010. Almost 80 percent of Americans with disabilities are not currently in the labor force. We need to do much better, and I believe this initiative will help.
"Your budget also proposes important investments that will help address mine safety and health, worker misclassification, and workplace safety and health activities. I was particularly pleased to see a proposed increase for ILAB, which leads our fight against the worst forms of child labor around the world.
"On a related note, I would like to thank you for your efforts on the Framework of Action to Support the Implementation of the Harkin-Engel Protocol targeted at child labor in the cocoa sectors of Ghana and the Ivory Coast.
"Madam Secretary, I know you are well aware of the many important priorities competing for resources in the Labor-HHS appropriations bill. Your testimony and this hearing will help inform us as we do that work.
"Before we hear from the Secretary, I would yield to Senator Shelby for his opening statement."