Mr. President, today I introduce a straight-forward bill that is a first step toward helping American workers and businesses. This bill is part of my E-4 Initiative, which focuses on issues affecting…
Mr. President, today I introduce a straight-forward bill that is a first step toward helping American workers and businesses. This bill is part of my E-4 Initiative, which focuses on issues affecting the economy, energy, education and employment. The Skills Standards Certification Evaluation Act will require the Secretaries of Labor, Education and Commerce to evaluate skills standards certification programs that have been developed with federal funding.
Skills Standards Certifications have emerged over the past two decades in response to job growth in high-technology and varied industries. The training or classes usually take weeks or months, rather than years. Often, they are developed in response to the needs of one industry or even one company, though the skills are often applicable more widely.
As the President-elect and Congress work to save and create jobs through additional funding for infrastructure, green jobs, and similar programs, among other things, it is even more critical that employers be able to find qualified workers for a variety of positions. Workers who can easily demonstrate their skills quickly and easily will be able to benefit from such investments early on.
Over the past two decades, the Federal Government has taken conflicting approaches to skills standards certifications. That is why, as part of the Skills Standards Certification Evaluation Act, I require a recommendation from the Secretaries of Labor and Commerce on how Congress ought to move forward with funding for these certification programs. Both the national, top-down, and a local, bottom-up approach have been tried, and a thorough evaluation will make clear how we can move forward to get the most out of the funding the Federal Government provides.
These certifications have a tremendous benefit for workers. First, because the training is often condensed into a few weeks with a flexible schedule, it allows people to complete certifications without leaving a current job and without the financial cost of attending a full-time program that lasts a year or more. In addition, these programs allow workers to clearly demonstrate a certain set of skills, and may open more doors for higher-paying employment. Because these programs can be completed without leaving work, they also allow workers to advance within a career or company to more skilled positions and better wages and benefits.
For employers, Skills Standards Certifications can simplify the search for employees. I have heard from numerous Wisconsin employers, especially small businesses with limited resources, that it is hard to find employees with the skills they need, or who will be dedicated and loyal. Skills Standards Certifications clearly show the qualification of an individual, of course, but also tell the employer that he or she is dedicated enough to invest in the course to earn the certificate. Very few people will spend the time and money to enroll in such a program if they don't intend to use the certificate.
Lastly, these programs can help state and local governments quantify their skilled workforce, which can be invaluable when marketing the area to businesses and investment.
This bill is a small first step in what I hope can be a continuing effort to help hard-working Americans obtain and use high-demand work skills.
Mr. President, today I reintroduce a piece of my E4 initiative, so named because it is a collection of proposals that address issues important to the economy, education, employment and energy. This piece of the E4 legislation focuses on the important supporting role that transportation can play in economic development by creating an environment where employers and those seeking employment or better employment are connected together. Having such a system to overcome transportation hurdles can benefit both employers and employees, as well as the local economy and is all the more important in these difficult economic times.
In more general terms, investing in our infrastructure like roads, bridges and transit systems can have direct job creation impacts. This is one reason I have fought hard with the rest of the delegation for a fair rate of return for Wisconsin from the highway bill. It is also why in a letter I sent to President-elect Obama and Senate leaders I included highway and transit projects as part of a variety of ready-to- go infrastructure projects that should be included in the forthcoming economic recovery program.
In addition to supporting transportation-related jobs, linking workers and businesses that need them can also be an important part of a more comprehensive job creation strategy. This can mean supporting a robust public transportation system or more specific programs designed to link low-income individuals with jobs. I have consistently done the former by supporting
public transportation during consideration of the highway bill and Amtrak reauthorizations. But my specific proposal today focuses on the latter and improving the Job Access and Reverse Commute, JARC, program that links low-income workers with employers.
I have heard good things about the JARC program and was glad that it was shifted away from earmarks and was made available as a combination formula and competitively awarded program in the last highway bill. The primary program goal is to locally assess the transportation needs of low-income workers and then plan and fund programs to help alleviate transportation-related barriers to employment or better employment. While initially this may have been viewed as a way to support reverse commute projects whereby transit routes were established to allow city center residents to access jobs in the suburbs, the program actually does much more than just this and provides reliable transportation to low-income urban, rural and suburban workers.
In Wisconsin, the Federal JARC program is jointly administered by the State departments of transportation and workforce development as the Wisconsin Employment Transportation Assistance Program, WETAP. According to the Wisconsin Department of Transportation, transportation barriers can include a lack of a dependable vehicle or bus service in the area, an absence of local jobs, or childcare transportation problems. The State agencies in Wisconsin have found several different types of projects to be effective depending on the local circumstances. These projects have included the traditional public transit projects such as extending bus lines or supporting van-pooling, along with other programs such as providing cars or car repairs to low-income individuals. Wisconsin has even found that assisting with indirect barriers such as transportation of children to and from childcare facilities is critical in allowing some individuals to improve their job prospects.
A recent University of Illinois Chicago, UIC, study found that the societal benefits from this program are $1.65 per dollar spent and estimates lifetime benefits to low income participants of $15 per dollar spent due to their ability to find and retain better paying jobs. While the goals of the Job Access and Reverse Commute program are important and the program has been found to be fairly effective, there are some details that have prevented the program from reaching its full potential. Working closely with transportation officials in Wisconsin and partially based on recommendations from the UIC study, I've come up with some specific ideas to improve the program.
With a proven effective program and continuing unmet needs by employers and low-income individuals seeking employment, JARC could use a boost in funding. So that is why my proposal ramps up funding by $100 million over 5 years from the current funding of $165 million to $265 million in fiscal year 2014.
My proposal would also allow the Federal share of projects to increase to 80 percent from the current 50 percent level for operating expenses. The 50 percent local and State match wasn't feasible for far too many local governments in Wisconsin and as a result Wisconsin has not been able to spend all its Federal funds. The higher Federal cost share will better balance the need to leverage Federal funds, while ensuring that these critical funds are fully utilized--millions of dollars in an account does nothing to link people to jobs.
Besides the challenge in coming up with a 50 percent local cost share, the other main issue that has kept JARC from being as effective as it could be is the paperwork and reporting burden required by the program, especially for the small nonprofit groups that often have never dealt with Federal grant requirements before. My proposal directs the Federal Transit Agency, FTA, to examine the current reporting requirements to see if there are ways to streamline the amount of paperwork required while still ensuring that the program goals are met.
My bill also includes a pilot program funded at $10 million a year for 5 years in order to test a few areas that seem very promising, but should be evaluated more fully before broader implementation. The first portion of the pilot program builds off the regulatory streamlining evaluation and allows the FTA to test streamlined reporting requirements to help get the balance between oversight and administrative burden right.
The second part of the pilot program focuses on improving education- and employment-related transportation for teens and young adults. Enabling students and young people to reliably get between their high schools or neighborhoods and technical colleges, job training centers or apprenticeships can have a lifelong positive impact.
The third section of the pilot program would allow experimentation with combining different transit programs and integrating JARC projects across local political boundaries to provide a more comprehensive local transportation system. Instead of having one transit program to assist the disabled, one targeted toward the elderly and another focused on jobs, this pilot program would encourage funding combined applications to meet these needs together with one comprehensive project. There is even the potential for the Department of Transportation to further coordinate with other departments such as Health and Human Services for healthcare-related transportation. Similarly, the needs of employers for employees do not recognize local political boundaries, so encouraging greater collaboration between local entities to make a more robust interconnected system should ultimately provide more efficient and effective service.
While the FTA already provides some technical assistance for the JARC program, my proposal provides a small boost in funding and some additional areas of emphasis. For example, after hearing about the struggles that some small nonprofits have with the reporting requirements, in addition to looking for ways to streamline the requirements, my proposal would direct the FTA to also provide some technical assistance especially targeted to this need.
The final element of my proposal is the offset. The new spending authorized in the proposal is fully offset by rescinding highway and bridge earmarks that have not had funds spent from them despite being authorized over a decade ago as part of the TEA-21 highway bill. Helping connect workers and employers is a much better use of these funds than letting them sit unused in some obscure DOT account.
Providing reliable transportation to low-income individuals only goes so far--it is the companies and innovators creating the jobs and the individuals seeking to better their lot through education or more challenging employment, that are doing the heavy lifting. That being said, transportation can clearly be a challenge for companies and workers and in the case of the JARC program can play an important supporting role.
Mr. President, we are all aware of the serious challenges our economy faces in the short term and the urgency of our need to promote job creation and economic development. I am committed to engaging in this broad effort with my colleagues on both sides of the aisle. But it is essential that our efforts not just be short term fixes--they must not only aim to create jobs and investment opportunities in the short term, they must be part of strategic efforts to strengthen our Nation's innovation capabilities and sustain long term economic development in a changing and competitive global environment. There is no better way to do this than by stimulating and supporting small business innovation, especially in areas of national priority. As part of this effort, today I am introducing the Strengthening Our Economy Through Small Business Innovation Act of 2009.
Job growth, innovation and economic development are driven by our small
businesses. Small businesses also tend to be based in our cities and communities and so they are major contributors to our local economies. Half of our county's payroll jobs and most of our new job opportunities are provided by small businesses. Small businesses are proven innovators and drive commercialization of cutting edge technologies. Not only are small businesses our major source of employment, they employ about one third of our country's scientists and engineers and generate more patents on a per capita basis than large businesses and universities. They also are effective partners with universities to enhance product creation, develop university income and attract university graduates and faculty through increased innovative job opportunities.
Over the last 25 years, through the Small Business Innovation and Research program, SBIR, and, more recently, the Small Business Technology Transfer program, STTR, up to 2.5 percent and 0.3 percent, respectively, of Federal R&D funds from 11 Federal agencies have been specifically allocated to our Nation's small businesses to fund innovation. These small business allocations are not sufficient. We must diversify and strengthen innovation capabilities and our economic base, and to accomplish this we must extend and increase R&D allocations to our Nation's innovative small businesses.
My bill does 3 things. First, it extends the SBIR and STTR programs for a further 14 years so that small businesses, as well as universities and non-profit research organizations that collaborate with small businesses, can continue to leverage Federal research and development funding.
Second, it significantly increases the allocation of funds and the awards from large Federal research and development budgets to small businesses through the SBIR and STTR programs. It would increase the SBIR allocation from its current 2.5 percent to 10 percent and the STTR allocation from 0.3 percent to 1.0 percent over a 3-year period. It would increase SBIR phase I awards from $100,000 to $300,000 and phase II awards from $750,000 to $2.2 million. Third, it identifies specific funding priorities for energy innovation; safe and secure water; domestic security; and transportation.
The SBIR program is tested, successful and worthy of extension. In its comprehensive study of the SBIR program, the National Research Council found that the program ``is sound in concept and effective in practice''; was ``stimulating technological innovation''; ``linking universities to the public and private markets''; ``increasing private sector commercialization of innovations'' at an ``impressive'' rate; and ``providing widely distributed support for innovation activity.'' The study concluded that:
[T]he program is proving effective in meeting Congressional
objectives. It is increasing innovation, encouraging
participation by small companies in R&D, providing support
for small firms owned by minorities and women, and resolving
research questions for mission agencies in a cost effective
manner. Should the Congress wish to provide additional funds
for the program in support of these objectives, those funds
could be employed effectively by the nation's SBIR.
The NRC's study also found that universities and other non-profit research institutions would benefit significantly from the increase in both the SBIR and the STTR programs. In particular, the STTR allocation increase will directly benefit universities and efforts to bring university-based research into the commercial marketplace, as a partnership with a non-profit research institution, such as a university, is a requirement of all STTR award recipients. Many of the small businesses that receive SBIR funding are rooted in the university infrastructure so investigators and graduates from universities will have opportunities to be part of commercial developments. More than two-thirds of SBIR companies report that at least one founder was previously an academic. About one-third of SBIR company founders were most recently employed as academics before founding the company. Over a third of SBIR projects cite direct university involvement with 27 percent of projects having university faculty as contractors on the project, 17 percent using universities themselves as subcontractors, and 15 percent employing graduate students.
In its report accompanying reauthorization legislation, the Senate Small Business and Entrepreneurship Committee recently concluded that:
increases in the SBIR allocation will invest money in
research, contracting, internships, and other collaborative
activities done with universities, with the contracting and
patenting activities with SBIR companies being a sizable
source of revenue for universities as well. The university-
industry partnerships that SBIR creates are crucial in that
they provide an applied research and commercialization focus
that otherwise likely would not be present in university
research. More specifically, the partnerships are important
in exposing faculty and the next generation of scientists and
engineers to commercial research and development. SBIR
businesses provide graduate and undergraduate students with
hands-on experience and job opportunities that universities
would be unable to provide alone.
Our country not only faces immediate economic and employment challenges, it faces major challenges in transportation, energy, domestic security and water quality and safety. Targeted research and development will be critical. Congress, with non-partisan expert guidance, has a role to play in guiding our national research and development priorities and, in this case, stimulating small business innovation and job creation in specific areas of critical national need. The National Academies of Science and other independent government research organizations provide us with carefully researched and considered recommendations on how we can address these priorities, so my bill draws on their recommendations to develop innovative energy technologies; enhance water quality and security; strengthen domestic security; and address transportation priorities. This is not only a good investment in short term job creation; it is an imperative investment in our Nation's long term innovation prospects and economic development.
The costs of my bill would be fully offset by cancellation of the airborne laser program. CBO estimates that cancelling that program will produce savings of over $2.6 billion.
Mr. President, as the 111th Congress begins, I am reintroducing a number of different bills designed to fuel job creation and spur economic development. My initiative, dubbed E4 because of its focus on economy, employment, education, and energy, seeks to respond to economic and job development needs both in my State of Wisconsin and around the country. These challenging economic times call for a comprehensive set of solutions including providing new job training opportunities for workers, fostering innovation among small businesses, protecting the existing family-supporting jobs in our nation, and boosting educational opportunities for young Americans. Today I am introducing the Connecting Education and Emerging Professions Act of 2009, which provides competitive grants to States and local school districts to promote better collaboration between high schools and local businesses and workforce development groups. This E4 education initiative is designed to help prepare America's students for future success in the workforce and post-secondary education as well as enhance America's competitiveness in the global economy as we prepare to enter the second decade of the twenty-first century.
Helping to ensure that all American students have access to a high- quality education is critical to boosting America's competitiveness and helping to ensure that our country is better equipped to respond to the economic challenges currently before us. Investment in our young people now will pay off in the future when these individuals are better prepared to compete for the highly skilled jobs of tomorrow. If the United States is to remain competitive on an international stage and continue to lead the world in innovation and development, we need to make certain that our young people are well prepared to meet current and future economic challenges.
Improving educational opportunities in the United States is going to require
a comprehensive set of policy strategies and I look forward to working with my colleagues in Congress this year as we get to work on a variety of education issues including expanding access to education from pre-K through college. We also face the monumental task of reauthorizing and reforming the Elementary and Secondary Education Act, ESEA, better known as No Child Left Behind, NCLB. As we consider the ESEA reauthorization, we should make substantial changes to the testing mandates that were imposed through NCLB and provide support to states that develop smarter accountability systems with enhanced assessments that measure higher-order thinking skills among students. We also need to look at ways to strengthen and reform our Nation's public secondary schools as part of the ESEA reauthorization. The legislation I am introducing today is designed to help support innovative changes that are taking place in some of our Nation's high schools and help even more States and local communities make improvements to their local high schools.
My CEEP bill seeks to address a couple of interrelated issues related to secondary education. The first issue is the alarmingly high dropout rate in our nation's high schools. While numbers vary slightly, a growing body of research indicates that the United States has a graduation rate of approximately 70 percent and that about one-third of our country's high school students will not graduate on time. Graduation rates for minority and low-income students are even lower, in many cases, alarmingly lower. In addition, many of our nation's urban school districts report very high dropout rates, including the Milwaukee Public School District. According to the Cities in Crisis report released in 2008 by the Editorial Projects in Education Research Center, the Milwaukee Public Schools has a graduation rate of 46.1 percent. Unfortunately, there are at least a dozen large urban districts that have even lower graduation rates than Milwaukee.
One of our top education priorities as a Nation must be to address the low graduation rates nationwide in urban, suburban, and rural school districts. We must also work to close the huge opportunity gap that is created by the large disparity in graduation rates between our minority and non-minority students as well as between low-income and more affluent students. Solving this problem will require a broad, comprehensive solution involving the federal, state and local governments. It is my hope that when Congress finally reauthorizes the Elementary and Secondary Education Act, we pay particular attention to the needs of our nation's high schools and our students.
While many factors contribute to high dropout rates, disengagement from classroom instruction can contribute to a student's decision to drop out. Some students feel that high school is not relevant to their lives and do not see how completing high school will translate into future career and academic success. In this increasingly competitive twenty-first century where postsecondary education is now required for many entry-level jobs, it is up to us to show our nation's students why it is so important that they graduate from high school.
Another issue that this bill seeks to address is the growing sense among employers and postsecondary institutions that our nation's high school students who do graduate are unprepared for success either in the workforce or in college. Employers in various economic sectors, including technology, manufacturing, health care, construction, and others, report difficulty in identifying qualified candidates for skilled positions. Recent surveys also indicate that many employers are dissatisfied with the overall preparation of secondary school graduates. In order for companies in the United States to be competitive in a global economy, we must have a highly skilled workforce. Adequate preparation at the high school level can help prepare students for entry into our rapidly changing global economy where new emerging industries are cropping up in Wisconsin and around the country.
To address these two interrelated issues, my bill would provide 5- year competitive education grants to states and school districts to foster collaboration and discussions between schools, businesses, and others about the emerging industry workforce needs and how to prepare our high school students to meet those needs, both academically and practically. States and local school districts must use this money to form partnerships with local or regional businesses, postsecondary institutions, workforce development boards, labor organizations, nonprofit organizations and others.
These partnerships will have the responsibility of surveying local, regional, and statewide emerging industries and deciding what are the academic and work-based skills that our high school students need in order to be successful in these emerging industries. The partnerships will then work together to develop new and engaging curriculums and programs designed to teach the academic and work-based skills that are necessary to succeed in these new emerging industries. Once the partnership has designed a curriculum or program and received approval from the Federal Department of Education, the partnership will work to implement the program in qualifying schools.
During the implementation phase, the partnership will come together to implement hands-on learning and work opportunities for students including internships, apprenticeships, job shadowing, and other career and technical education programs. These hands-on learning and work opportunities will be based on the emerging industry pathways curriculum or program that the eligible partnership has designed and will offer students practical academic experiences and skill-building lessons that they can use in the workplace or in postsecondary education.
This legislation seeks to help schools, businesses, colleges, and the students who would be served by this legislation talk with each other to build new programs that would help boost student engagement in learning and student attendance and graduation rates while also preparing students for success in the workforce or in college after they graduate. There are a number of successful local and state programs around Wisconsin that this legislation would help support and that served as valuable examples as I developed this legislation.
Wisconsin's Department of Public Instruction, Department of Workforce Development, and various local school districts have all been working to boost Wisconsin's career and technical education offerings and gear these offerings towards emerging industries. My bill seeks to help Wisconsin and other states build on these efforts and engage in additional conversations with interested stakeholders to design new curriculums and programs to prepare students for emerging industries.
I look forward to moving this legislation forward this year as the new Congress begins to debate how best to boost educational opportunities for all of our Nation's children. We have a significant achievement gap and graduation gap in urban, rural, and suburban schools throughout the country and it is imperative that we work together to promote innovative ideas that will close these gaps. Some of our Nation's schools are experiencing high dropout rates in part because students aren't connecting with what they are being taught. At the same time, we're seeing an emergence of new industries, like those aiming to capitalize on alternative energies and energy efficiency, that need employers with skills and training in their field. If we help schools connect their students with businesses, workforce development boards, and colleges that offer career and academic opportunities in these new and exciting fields, we can help to lower the alarming dropout rates while helping these emerging industries thrive.
Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.