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DEPARTMENTS OF LABOR, HEALTH AND HUMANSERVICES, EDUCATION, AND RELATED AGENCIESAPPROPRIATIONS FOR 2011HEARINGSBEFORE ASUBCOMMITTEE OF THECOMMITTEE ON APPROPRIATIONSHOUSE OF REPRESENTATIVESONE HUNDRED ELEVENTH CONGRESSSECOND SESSIONSUBCOMMITTEE ON THE DEPARTMENTS OF LABOR, HEALTH ANDHUMAN SERVICES, EDUCATION, AND RELATED AGENCIESDAVID R. OBEY, Wisconsin, ChairmanNITA M. LOWEY, New YorkROSA L. DELAURO, ConnecticutJESSE L. JACKSON, JR., IllinoisPATRICK J. KENNEDY, Rhode IslandLUCILLE ROYBAL-ALLARD, CaliforniaBARBARA LEE, CaliforniaMICHAEL HONDA, CaliforniaBETTY MCCOLLUM, MinnesotaTIM RYAN, OhioJOSÉ E. SERRANO, New YorkTODD TIAHRT, KansasDENNIS R. REHBERG, MontanaRODNEY ALEXANDER, LouisianaJO BONNER, AlabamaTOM COLE, OklahomaNOTE: Under Committee Rules, Mr. Obey, as Chairman of the Full Committee, and Mr. Lewis, as RankingMinority Member of the Full Committee, are authorized to sit as Members of all Subcommittees.DAVID REICH, NICOLE KUNKO, STEPHEN STEIGLEDER, DONNA SHAHBAZ,JOHN BARTRUM, LISA MOLYNEUX, and MIKE FRIEDBERG,Subcommittee StaffPART 5PageDepartment of Labor FY 2011 Budget Overview .Department of Education FY 2011 Budget Overview .Department of Health and Human Services FY 2011Budget Overview .National Institutes of Health FY 2011 BudgetOverview .159145279sroberts on DSK3CLS3C1PROD with HEARINGPrinted for the use of the Committee on AppropriationsVerDate Mar 15 201005:16 Nov 16, 2010Jkt 058233PO 00000Frm 00001Fmt 7513Sfmt 7513E:\HR\OC\58233P1.XXX58233P1

sroberts on DSK3CLS3C1PROD with HEARINGPart 5VerDate Mar 15 201005:16 Nov 16, 2010Jkt 058233PO 00000Frm 00002Fmt 6019Sfmt 6019E:\HR\OC\58233P1.XXX58233P1

sroberts on DSK3CLS3C1PROD with HEARINGDEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, EDUCATION,AND RELATED AGENCIES APPROPRIATIONS FOR 2011VerDate Mar 15 201005:16 Nov 16, 2010Jkt 058233PO 00000Frm 00003Fmt 6019Sfmt 6019E:\HR\OC\58233P1.XXX58233P1

sroberts on DSK3CLS3C1PROD with HEARINGVerDate Mar 15 201005:16 Nov 16, 2010Jkt 058233PO 00000Frm 00004Fmt 6019Sfmt 6019E:\HR\OC\58233P1.XXX58233P1

DEPARTMENTS OF LABOR, HEALTH AND HUMANSERVICES, EDUCATION, AND RELATED AGENCIESAPPROPRIATIONS FOR 2011HEARINGSBEFORE ASUBCOMMITTEE OF THECOMMITTEE ON APPROPRIATIONSHOUSE OF REPRESENTATIVESONE HUNDRED ELEVENTH CONGRESSSECOND SESSIONSUBCOMMITTEE ON THE DEPARTMENTS OF LABOR, HEALTH ANDHUMAN SERVICES, EDUCATION, AND RELATED AGENCIESDAVID R. OBEY, Wisconsin, ChairmanNITA M. LOWEY, New YorkROSA L. DELAURO, ConnecticutJESSE L. JACKSON, JR., IllinoisPATRICK J. KENNEDY, Rhode IslandLUCILLE ROYBAL-ALLARD, CaliforniaBARBARA LEE, CaliforniaMICHAEL HONDA, CaliforniaBETTY MCCOLLUM, MinnesotaTIM RYAN, OhioJOSÉ E. SERRANO, New YorkTODD TIAHRT, KansasDENNIS R. REHBERG, MontanaRODNEY ALEXANDER, LouisianaJO BONNER, AlabamaTOM COLE, OklahomaNOTE: Under Committee Rules, Mr. Obey, as Chairman of the Full Committee, and Mr. Lewis, as RankingMinority Member of the Full Committee, are authorized to sit as Members of all Subcommittees.DAVID REICH, NICOLE KUNKO, STEPHEN STEIGLEDER, DONNA SHAHBAZ,JOHN BARTRUM, LISA MOLYNEUX, and MIKE FRIEDBERG,Subcommittee StaffPART 5PageDepartment of Labor FY 2011 Budget Overview .Department of Education FY 2011 Budget Overview .Department of Health and Human Services FY 2011Budget Overview .National Institutes of Health FY 2011 BudgetOverview .159145279Printed for the use of the Committee on Appropriationssroberts on DSK3CLS3C1PROD with HEARINGU.S. GOVERNMENT PRINTING OFFICE58–233VerDate Mar 15 201005:16 Nov 16, 2010Jkt 058233WASHINGTON : 2010PO 00000Frm 00005Fmt 7513Sfmt 7513E:\HR\OC\58233P1.XXX58233P1

COMMITTEE ON APPROPRIATIONSDAVID R. OBEY, Wisconsin, ChairmanNORMAN D. DICKS, WashingtonALAN B. MOLLOHAN, West VirginiaMARCY KAPTUR, OhioPETER J. VISCLOSKY, IndianaNITA M. LOWEY, New YorkJOSÉ E. SERRANO, New YorkROSA L. DELAURO, ConnecticutJAMES P. MORAN, VirginiaJOHN W. OLVER, MassachusettsED PASTOR, ArizonaDAVID E. PRICE, North CarolinaCHET EDWARDS, TexasPATRICK J. KENNEDY, Rhode IslandMAURICE D. HINCHEY, New YorkLUCILLE ROYBAL-ALLARD, CaliforniaSAM FARR, CaliforniaJESSE L. JACKSON, JR., IllinoisCAROLYN C. KILPATRICK, MichiganALLEN BOYD, FloridaCHAKA FATTAH, PennsylvaniaSTEVEN R. ROTHMAN, New JerseySANFORD D. BISHOP, JR., GeorgiaMARION BERRY, ArkansasBARBARA LEE, CaliforniaADAM SCHIFF, CaliforniaMICHAEL HONDA, CaliforniaBETTY MCCOLLUM, MinnesotaSTEVE ISRAEL, New YorkTIM RYAN, OhioC.A. ‘‘DUTCH’’ RUPPERSBERGER, MarylandBEN CHANDLER, KentuckyDEBBIE WASSERMAN SCHULTZ, FloridaCIRO RODRIGUEZ, TexasLINCOLN DAVIS, TennesseeJOHN T. SALAZAR, ColoradoPATRICK J. MURPHY, PennsylvaniaJERRY LEWIS, CaliforniaC. W. BILL YOUNG, FloridaHAROLD ROGERS, KentuckyFRANK R. WOLF, VirginiaJACK KINGSTON, GeorgiaRODNEY P. FRELINGHUYSEN, NewJerseyTODD TIAHRT, KansasZACH WAMP, TennesseeTOM LATHAM, IowaROBERT B. ADERHOLT, AlabamaJO ANN EMERSON, MissouriKAY GRANGER, TexasMICHAEL K. SIMPSON, IdahoJOHN ABNEY CULBERSON, TexasMARK STEVEN KIRK, IllinoisANDER CRENSHAW, FloridaDENNIS R. REHBERG, MontanaJOHN R. CARTER, TexasRODNEY ALEXANDER, LouisianaKEN CALVERT, CaliforniaJO BONNER, AlabamaSTEVEN C. LATOURETTE, OhioTOM COLE, OklahomaBEVERLY PHETO, Clerk and Staff Directorsroberts on DSK3CLS3C1PROD with HEARING(II)VerDate Mar 15 201005:19 Nov 16, 2010Jkt 058233PO 00000Frm 00006Fmt 7513Sfmt 7513E:\HR\OC\58233P1.XXX58233P1

DEPARTMENTS OF LABOR, HEALTH ANDHUMAN SERVICES, EDUCATION, AND RELATED AGENCIES APPROPRIATIONS FOR2011WEDNESDAY, MARCH 10, 2010.DEPARTMENT OF LABOR, FY2011 BUDGET OVERVIEWWITNESSHON. HILDA SOLIS, SECRETARY OF LABORjdjones on DSK8KYBLC1PROD with HEARINGINTRODUCTIONMr. OBEY. Welcome, Madam Secretary. I am sorry we had todelay this hearing for an hour because of the special meeting I wascalled to today. So, to try to put us somewhat back on schedule, Iam going to forego an opening statement and simply welcome youhere. I know you probably have the toughest job that any Secretaryof Labor has had since the Great Depression. I wish you luck andanything else that you need to get the job done.Mr. Tiahrt.Mr. TIAHRT. Thank you, Mr. Chairman.Secretary Solis, welcome back to the Committee. It is always aprivilege to receive testimony from a former colleague.During these tough times, it is an extremely important Cabinetposition to hold. Madam Secretary, when I look back over this pastyear, I become quite anxious about where we are today, and evenmore concerned about where we are headed. Unemployment continues to hover around 10 percent, twice the level of structural unemployment. We are seeing record budget deficits and historic levels of debt, many State budgets are also deep in red, and households continue to tighten their belts. They are making very difficultdecisions, but necessary, decisions on spending cuts, which is whatthey expect their Government to do.We have to work our way through this together and do so responsibly, and that does not mean that we spend our way out ofthis recession, as the distinguished Majority Whip said last month.I fundamentally disagree with that approach. In order to work towards a vibrant American economy in the 21st century, Congressneeds to take a comprehensive look at policies and incentives whichbuild solid economic foundation. This will not be accomplished byFederal funds, but by private capital which spurs innovation andleads to job growth. Lasting economic growth comes from the bottom up, and not the top down.(1)VerDate Mar 15 201008:35 Nov 16, 2010Jkt 058233PO 00000Frm 00001Fmt 6633Sfmt 6602E:\HR\OC\A233P2.XXXA233P2

2Government does not create wealth. I think that is a misnomerin Washington today, that Government does create wealth. It doesnot. Government does not create wealth; the private sector does.And jobs are a byproduct of creating wealth. Our fellow Americanshave been the victims of a top-down approach this past year. TheRecovery Act was supposed to create 3.5 million jobs; yet 3.3 million jobs have been lost since its passage, including over 25,000manufacturing jobs in Kansas. Kansas wants to get back to work.Kansas employers want to hire them. It is our duty to give themthe tools and the opportunity to do so, not enacting policies thatwill only lead to a jobless recovery.FISCAL RESTRAINTYet, these are macro issues, Madam Secretary, and it will takeso much more than the Department of Labor alone to positively affect them. But it can start here, with this Committee, and it hasto because it has not started with the Administration. PresidentObama promised a three-year freeze on non-defense, non-securitydomestic spending; yet, his request for programs under the jurisdiction of this Subcommittee have increased by 27,000,000,000.We need to do exactly what the President promised, but has sofar failed to do: apply the scalpel to this budget request and makethe tough, perhaps politically unpopular, decisions.There was an excellent article in the Wall Street Journal todayabout Ireland and how they are going to survive their red ink. Thetitle of it is Irish Take Bitter Medicine to Survive the Age of RedInk.ETA CARRYOVERI strongly support many of the programs funded through thisbill; they are important for sustainable economic growth. But inthese difficult times they call for fiscal restraint responsibility.Case in point—and I know the mere mention of this term, carryover, will cause many to sit upright, but consider the Employmentand Training Administration. The entity was responsible for providing employment and training assistance programs and the administration of unemployment benefits; 2,500,000,000 of unspentfunds was carried into fiscal year 2010, 700,000,000 more thanyou had estimated; 2,500,000,000 appropriated in fiscal year 2009that was simply not needed.We all know the trillion is the new billion, but these are huge,huge numbers. Just because the practice is permissible by statutedoes not make it an appropriate use of taxpayer dollars. Again,tough but responsible decisions must be made this year, and wehave to own up to them.jdjones on DSK8KYBLC1PROD with HEARINGCREATION OF GREEN JOBSLastly, your budget request is premised on the notion of creatinggood jobs, a simple enough concept that we all support. And asthese good jobs are created, I certainly hope that we do not fall intothe same nebulous void as green jobs. Not only does the definitionof a green job seem to be ever-evolving, but even the process bywhich we now calculate green jobs growth is flawed.VerDate Mar 15 201008:35 Nov 16, 2010Jkt 058233PO 00000Frm 00002Fmt 6633Sfmt 6602E:\HR\OC\A233P2.XXXA233P2

3Take Vice President Biden’s December memo to the President entitled The Transformation of Clean Energy Economy. In it he citesthat renewable energy investments would create 253,000 jobs andwould ‘‘support’’—I presume he means save—up to 469,000 morejobs. But he footnotes these numbers saying, ‘‘A project that employs one person for two years would count as creating two jobs.’’One person working for two years is two jobs.I do not buy this. We could say that one job per month for twoyears would be 104 jobs. I think it is just one job and we need tokeep our calculations correct and have an accurate representationof job growth, because the American people deserve and need toknow the real facts.So, Madam Secretary, I welcome you back once again, and I lookforward to your testimony today.Mr. Chairman, thank you for your time.jdjones on DSK8KYBLC1PROD with HEARINGOPENING STATEMENTMr. OBEY. Madam Secretary, why do you not proceed? Summarize your statement and proceed to the questions.Secretary SOLIS. Thank you, Mr. Chairman, Chairman Obey andRanking Member Tiahrt and members of the Subcommittee. It isa pleasure to be here again this year. Thank you for inviting meto discuss our fiscal year 2011 budget request, and I ask that myprepared testimony be entered into the record, as I will review thehighlights with you.First, it is not possible to discuss next year’s budget without acknowledging the immediate need to put Americans back to work.I am proud of the work we have done with the Recovery Act resources, which include providing nearly 50,000,000,000 in UI benefits to unemployed workers and assisting over 190,000 of them tomaintain their health care coverage under COBRA; creating summer job opportunities for nearly 318,000 low-income youth and over18,000 wage-paying community service jobs for low-income seniors;and providing training opportunities for demand health care jobsand emerging jobs in the new green economy, renewable energy.While these efforts are helping, they are clearly not enough, andat 9.7 percent, unemployment remains persistently and unacceptably high, and especially for those particular groups most affected.African Americans are suffering at 15.8 percent, Latinos at 12.4percent. The situation is dire. And in the Native American communities it is even higher.I remain hopeful, however, that Congress will reach agreementon measures that will allow us to continue to assist Americansuntil the labor market fully recovers.Mr. Chairman, you recognized this need when you added fundslast year for the Senior Community Service Employment Program.We moved quickly as a result and many low-income seniors did notneed to wait for a jobs package to secure employment. But thereis so much more that needs to be done, and some examples are:To further extend the safety net for those displaced and dislocated workers by extension of the UI and COBRA assistance,which I believe the House and the Senate are working on; to commit to 1,200,000,000 to ensure that a robust summer jobs programVerDate Mar 15 201008:35 Nov 16, 2010Jkt 058233PO 00000Frm 00003Fmt 6633Sfmt 6602E:\HR\OC\A233P2.XXXA233P2

jdjones on DSK8KYBLC1PROD with HEARING4can be implemented to put the high number of unemployed youthto work to receive job training and education exposure;To jump-start our employment through a 500,000,000 investment through on-the-job training programs that can help smallbusinesses and hopefully be incentivized to hire and add on moreworkers; andTo add 300,000,000 to further support the oversubscribed Pathways out of Poverty and Energy Training Partnership programsthat include employers in all of those partnerships.Our budget request will sustain those investments through programs that give workers the tools they needed to succeed in thisnew economy. I want to highlight some of the measures that willallow us to increase the skills of all segments of our workforce.For the first time in over a decade, the budget proposes a significant increase in funding for the Workforce Investment Act programs. However, the additional resources are also closely linked toreform. In keeping with the Administration’s WIA reauthorizationgoals, a percentage of the funds appropriated for adults, dislocatedworkers, and youth will be reserved for two new WIA InnovationFunds to provide competitive grants to encourage the workforcesystem to test or replicate models that we know work to expandand improve services and results for their customers, namely, employment in the private sector.The budget also requests an increase of 45,000,000 for theGreen Jobs Innovation Fund. And I can tell you from my experience with the Recovery Act competitions that the demand for greenjob training has been enormous, and it has come from the privatesector. We have simply not been able to keep pace with the recordnumber of applications, submissions that came into my office; andI believe this unprecedented level of interest calls for further investment, more resources.We are committed to linking this training with job creation efforts in green industries and expect our grantees to work with employers and other participants to gain those valuable skills and industry-recognized credentials that will help them move into betterand higher paying jobs.In addition to the Youth Innovation Fund, the budget request includes an increase in other services for youth, such as 17,500,000in the YouthBuild program that will allow us to extend this program and serve an estimated 230 competitive grants to local organizations to serve disadvantaged youth.We also expect to see benefits from fully integrating the JobCorps program with other youth programs and returning it into theETA program. We are also undertaking a rigorous and comprehensive review of the Job Corps operations to identify any needed reforms that we might need to take.Good jobs for everyone means that other vulnerable populationsmust not also be left behind. That is why we are doing more to target resources to areas of greatest poverty, and that is why thebudget request includes increases in the Indian and Native American and Migrant and Seasonal Farm Worker Programs. Two DOLagencies, ETA and the Office of Disability Employment and Policy,known as ODEP, will also receive 12,000,000 each to continuetheir job disability initiative to increase the capacity at our one-VerDate Mar 15 201008:35 Nov 16, 2010Jkt 058233PO 00000Frm 00004Fmt 6633Sfmt 6602E:\HR\OC\A233P2.XXXA233P2

jdjones on DSK8KYBLC1PROD with HEARING5stop system to provide accessible services to individuals with disability.We know returning veterans, including those who are disabled,can contribute greatly to the expansion of our economy. They arethe most under-utilized population. For the Veterans Employmentand Training Service, the budget requests 262,000,000 and includes increases for homeless veterans grants and transition assistance programs which are vitally important for those individualsthat are coming back and want to be reintegrated into our society.Our Assistant Secretary, Ray Jefferson, will be with you tomorrow to fill in any items or activities that you require more information regarding our Vets program. The ETA Assistant Secretary,Jane Oates, will also be here tomorrow to discuss any further plansand details you might have regarding partnerships that include thenursing shortage and also efforts to help provide assistance toStates to pay for a paid leave program that we are now initiating.I know you understand that it can be too easy to exploit workerswhen jobs are scarce. We need to remain vigilant in protecting therights and safety of all of our workers. In fiscal year 2011 the budget continues that vigilance by hiring additional enforcement personnel and strengthening our regulatory efforts. We build upon theresources that you provided last year to return our worker protection programs to the 2001 staffing levels or greater, after years ofdecline.To do so, the request includes 1,700,000,000 in discretionaryfunds for 10,957 FTE for our worker protection activities. Thisfunding level is 67,000,000, 4 percent, and 177 FTE above lastyear’s level, and the agency-by-agency details are in my preparedtestimony.In discussing worker protection, I want to point out that the request also includes increases to support the development of regulations in areas such as pensions, worker health and safety. Theseresources will help reinvigorate the Department’s regulatory program and are critical to the success of our worker protection agenda.The budget also includes an important interagency effort to address the issue of employee misclassification. Workers wronglyclassified as independent contractors are denied access to criticalbenefits and protections in the workplace to which they are entitled, for example, overtime, health care coverage, worker’s compensation, family and medical leave, and unemployment insurance.In addition to denying workers these protections and benefits,misclassification results in billions, billions of dollars of losses toGovernment through unpaid taxes. Our budget includes 25,000,000 to hire additional enforcemen

departments of labor, health and human services, education, and related agencies appropriations for 2011 sroberts on dsk3cls3c1prod with hearing verdate mar 15 2010 05:16 nov 16, 2010 jkt 058233 po 00000 frm 00003 fmt 6019 sfmt 6019 e:\hr\oc\58233p1.xxx 58233p1

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