Congressional Commission on Servicemembers and Veterans Transition Assistance. By statute, the Secretary of Labor has until about April 19, 1999, to comment to the House and Senate Committees on Veterans' Affairs on the Commission's findings and recommendations.

Such Commission findings include: (1) fewer than two percent of veterans go to the Employment Service (ES) when looking for a job and ES data show that only 12 percent of the veterans who do go to the ES get permanent jobs following their visit, and (2) according to DOL's 1997 Annual Report, nine states met DOL performance standards while placing fewer than 10 percent of veteran registrants in jobs. Conversely, the Department of Labor states that during program year 1997 that it helped into jobs 26.5 percent of veterans registering for services.

Commission recommendations include: (1) Congress should reengineer veterans' employment services to meet the new reality of a highly automated, integrated, and customer-focused environment; (2) Čongress should replace the DVOP and LVER programs with (a) a new Veterans Case Manager program to provide job-seeking skills, job development, and referral services to disabled veterans, veterans facing employment barriers, and recently separated veterans, and (b) a new Veterans Employment Facilitator program to facilitate Transition Assistance Program (TAP) workshops and market veterans' employment to local employers; and (3) DOL should award grants for veterans employment and training services competitively on a state-by-state basis so that the most cost-effective organizations can provide the services.

The Committee wishes to note it has consistently supported the LVER program since Congress established it in 1944 as part of the original G. I. Bill of Rights. The Committee has also supported the DVOP program, including codifying it in 1980. In addition, with the 1988 enactment of Public Law 100-323, the Committee supported a statutory funding formula for both LVERS and DVOPS. Moreover, in its annual budget views and estimates, the Committee has consistently recommended full funding for DVOPS and LVERS, although such full funding has not occurred since 1989. However, in light of recent findings and recommendations of the Congressional Commission on Servicemembers and Veterans Transition Assistance, the Committee believes it should focus its efforts on reengineering the delivery of Veterans' Employment and Training Services rather than recommending additional resources for the current program.

DISABLED VETERANS' OUTREACH PROGRAM

Under section 4103A, title 38, United States Code, the Secretary of Labor is required annually to make available sufficient funds for use in each state to support the appointment of one DVOP specialist per 6,900 veterans of the Vietnam era, veterans who entered active duty as a member of the armed forces after May 7, 1975, or service-disabled veterans. For fiscal year 1999, this formula results in 2,119 DVOPS. The Administration's budget provides funds to support 1,431 DVOP positions, 688 below the Congressionally-mandated level. The Committee supports this request.

Congress established the Disabled Veterans Outreach Program (DVOP) to provide intensive employment and training services to service-connected disabled veterans and other veterans in need of job search and placement assistance. DVOPS serve as workshop facilitators for the Transition Assistance Program (TAP), a 3-day program that provides transition counseling, job-search training and information, placement assistance and other information and services to servicemembers who are within 180 days of separation from active duty. DVOPS also develop job and job-training opportunities for veterans through contacts with employers. Additionally, DVOPS provide assistance to community-based organizations and grantees who provide services to veterans under other federal and federally-funded employment and training programs, such as the Job Training Partnership Act and the Stewart McKinney Act.

LOCAL VETERANS' EMPLOYMENT REPRESENTATIVES

Section 4104(a)(1), title 38, United States Code, mandates that the Secretary of Labor make available funding to support the appointment of at least 1,600 full-time LVERS and the states' administrative expenses associated with the appointment of that number of LVERS. The Administration's budget provides funds to support 1,306 LVER positions. The Committee supports this request.

Congress established the LVER program to functionally supervise the provision of job counseling, testing, job development, referral and placement to veterans in local employment services offices. LVERS participate in TAP workshops and maintain regular contact with community leaders, employers, labor unions, training programs and veterans service organizations in order to keep them advised of eligible veterans available for employment and training. LVERS also provide labor exchange information to veterans, and promote and monitor participation of veterans in federally funded employment and training programs. Finally, LVERS monitor the listing of jobs by federal contractors and subsequent referrals of qualified veterans to these employment openings, refer eligible veterans to training, supportive services, and educational opportunities, and assist, through automated data processing, in securing and maintaining current information regarding available employment and training opportunities.

DOL also manages the Homeless Veterans Reintegration Program (HVRP). The program is designed to provide support services to local agencies targeting homeless veterans with employment assistance. For the past three years, the President and the Appropriations Committee have failed to support funding for the program, while the law creating this program authorizes $10 million per year. This year the President has proposed $5 million for HVRP. The Committee notes that the funding for HVRP veterans' employment and training initiatives has failed to keep pace with the funding for other agencies that provide transitional housing and supportive services. For example, Congress has increased funding for HUD (homeless) programs from $72 million in FY 1988 to $823 million in FY 1998, and also increased health care and substance abuse programs administered by the Department of Veterans Affairs from $13 million to $76 million during the same time period. The Committee recommends funding for HVRP at the au

thorized level of $10 million to increase employment services to homeless veterans.

The Committee notes that 458 DVOPS and 431 LVERS do not have personal computers or access to the Internet or America's Job Bank Talent Bank. The employment search needs of many jobready veterans can be met primarily through their personal access to the Internet. Nevertheless, many veterans do not have personal access to such electronic job listings and must visit a local Employment Service office for help. The Committee recommends the addition of $1.75 million to outfit DVOPS ($911,000) and LVERS ($840,000) with Internet/AJP access at their workstation or their outstation location.

NATIONAL VETERANS' EMPLOYMENT AND TRAINING SERVICES

INSTITUTE

The National Veterans' Employment and Training Services Institute (NVETSI) is operated under contract by the University of Colorado at Denver and provides basic and advanced instruction in veterans employment programs and services. Because this is the only source of formal training for federal and state employees for veterans employment programs, NVETSI is vital to the success of those programs. The President has recommended $2 million for fiscal year 2000 to train 1,500 veteran service providers. Of the current 2,700 DVOP and LVER staff, 2,400 have not attended the new Labor Employment Specialist training to provide core competencies to veteran service provider staff. An additional $1 million would train 2,800 veteran service providers. The Committee recommends funding NVETSI at $3 million for FY 2000.

PROPOSED LEGISLATION

Cost of Living Adjustment (COLA).-The Committee supports a cost-of-living adjustment (COLA) for compensation and dependency and indemnity compensation equal to the COLA calculation for Social Security recipients.

The Committee will not take action on the Department's proposed legislation to pay Filipino veterans and survivors full disability compensation. Prior to the Committee's July 22, 1998, oversight hearing on existing veterans' benefits for Filipinos, the Committee sent a series of questions to the Department. Because the Department will be affected by any change to existing law, the Committee requested that, among other things, VA address how it would prevent Filipino veterans not actually residing in the U.S. from using post office boxes or fictitious residences in order to qualify for compensation. History has shown a very real potential for fraud. To date, the Department has not provided the Committee with a plan for implementing the Administration's proposed legislation.

Additional Legislative Items Which the VA Committee May Report with Direct Spending Implications

Montgomery GI Bill.-The Committee recommends a $200 million addition to the President's request for improvements to veterans' education benefits. This will provide improvements in the basic education benefit.

The cost of education has increased over 7 percent per year since the inception of the Montgomery GI Bill in 1985. Today, a veteran with two years of honorable military service receives a maximum of $4,752 for a nine-month school year from the Montgomery GI Bill (MGIB). But the average annual cost in 1996 for tuition, room and board, fees, books and transportation at a public institution was $10,759, a total increase of 109 percent since 1987. For private schools, the annual cost is now $20,003, an increase of 84 percent since 1987. As a result, the Montgomery GI Bill falls short by $6,007 annually for a public school and $15,251 for a private school. The Committee notes that participation in the MGÍB lags behind the Vietnam-era GI Bill. Through FY 1997, some 13 years after the 1984 enactment of the MGIB, 48.7 percent of eligible beneficiaries used the MGIB. Vietnam-era GI Bill usage for the first ten years (June 1966 to June 1976) was 63.6 percent.

The Committee notes the recent Congressional Commission on Servicemembers and Veterans Transition Assistance found that most college-bound youth and their families see a tour of military service as a detour from their college plans, not as a way to achieve that goal. Not surprisingly, each of the military services except the Marine Corps is experiencing recruiting problems in various ways. Each of the Joint Chiefs of Staff believes a rejuvenated Montgomery GI Bill would help recruitment, as evidenced by their testimony before the Senate Armed Services Committee on September 29, 1998.

Minor Revisions Requiring Direct Spending Authority.-The Committee recommends $10 million for minor changes to the dependency and indemnity program and other limited revisions in the compensation program.

National Shrine Initiatives

The Committee recommends $1 million for a one-time assessment, by an independent contractor, of the basic maintenance repairs needed at individual VA national cemeteries to ensure a proper and respectful setting. Such a step would serve as the first component of an on-going assessment of (1) how to make a reasonable number of VA national cemeteries more of the design/quality/ stature of the American Battle Monuments Commission, and (2) the number of VA national cemeteries needed beyond 2010.

Homeless Veterans Reintegration Program

The Committee recommends a five year authorization for this program at $10 million per year, beginning in fiscal year 2000.