Hearing Of The Subcommittee On Labor, Health And Human Services, Education, And Related Agencies Of The House Committee On Appropriations - FY2011 Budget Overview; Jobs, Training And Education

Statement

Today this subcommittee will focus on the challenge of training and educating our workforce for
the high-skill careers of the new economy. According to the Bureau of Labor Statistics, the most
substantial job growth over the next decade will be in careers that require an associate's degree
or a vocational certification--including health care, high tech manufacturing, and clean energy.
In my home state of Wisconsin, half of all job growth in the next decade is expected to involve
jobs that require more than a high school education but less than a bachelor's degree.
The Labor Department's job training programs have an important role to play in helping workers
get the training and skills they need to get those jobs as they become available. We should be
making sure that any business looking to expand has no trouble locating highly qualified workers
right here in the U.S. to meet its needs. That's why we included approximately $4 billion in the
Recovery Act for job training--effectively doubling the resources available to local workforce
agencies. This investment has enabled a record number of unemployed and disadvantaged
workers to enter job training programs--so that, as our economy continues to recover, more
American workers have the necessary skills to drive sustainable economic growth while sharing
equally in the benefits.
That means job training is also a key strategy for addressing the longer-term stagnation of wages
and living standards that has plagued the middle class. As I've said before--and it bears
repeating--the earnings disparity between the wealthiest workers and the middle class has been
growing for three decades. Since 1979, real median income has grown by less than one-half of
one percent. More recently, between the late 1990s and mid-2000s:
* Incomes for the top fifth of families grew by 9.1 percent;
* Incomes for the middle fifth of families grew by a mere 1.3 percent; and
* Incomes for the bottom fifth declined by 2.5 percent
One tool for addressing these disparities is better job training. It's not the entire solution, but it's
part of the solution. Study after study has shown a direct link between job training and increased
long-term earnings--boosting living standards for middle-class American families. Better
education is also a key to reducing these disparities.
One of the most important links between job training and education is our network of community
colleges. More than a third of individuals receiving job training through the Workforce
Investment Act are served by community colleges. And studies have repeatedly shown that
those individuals with a year or two of postsecondary education earn higher wages than their
counterparts with only a high school education.
Which leads me to Pell Grants. As college tuition continues to rise, Pell Grants are a necessary
life line for modest-income students to continue their education. Nearly 80 percent of high-
income students attend college immediately after high school, compared with only 55 percent of
low-income students. That is not a level playing field. Pell Grants are pivotal to closing the
college opportunity gap for low- and middle-income students.
In fact, when Democrats took control of Congress, the maximum Pell Grant award had been
frozen since 2003. Since then we've raised the maximum award by $1,500 and included $17
billion in the Recovery Act for Pell Grants -- making college affordable for an additional 3.2
million low-income students.
But we continue to face serious challenges. For instance, unemployment levels for minorities
and young workers are even higher than the national average. More than 90 million adults in
America lack the basic academic skills needed to enroll in postsecondary education or job
training programs. And workers with disabilities still encounter additional difficulties in their
attempts to join the workforce.
I know that today's witnesses are actively engaged in addressing these issues and I look forward
to hearing their testimony this morning.
This morning's panel includes senior officials of the Labor and Education Departments who
have responsibility for job-related training and education.
* From the Labor Department, we have Jane Oates, who is Assistant Secretary for the
Employment and Training Administration (ETA), and Ray Jefferson, Assistant Secretary
for Veterans Employment and Training Services (VETS).
* From the Education Department, our first witness will be Martha Kanter, who is the
Under Secretary and who has responsibility for career and adult education and higher
education. Also, we have Alexa Posny, who is the Assistant Secretary for Special
Education and Rehabilitative.
I will ask our witnesses to summarize their remarks in 5 to 10 minutes. We will place the entire
written statement of each witness into the hearing record.
Before we proceed, I'll turn to Mr. Tiahrt, our Ranking Member, for any opening remarks that he
would like to make.

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