The Budget: Fiscal Year 1997-1998

DEPARMENT OF LABOR AND INDUSTRY

     The large increase in General Government expenditures for the Department includes $5 million to convert agency computer system applications to accommodate the year 2000. The budget also funds two smaller initiatives.

     The initiatives include $851,000 to establish a program to provide temporary income support, training and counseling to unemployed individuals attempting to become self employed and $938,000 to establish and implement expedited data collection from newly hired employees to detect Workers' Compensation and Unemployment Compensation fraud and facilitate child support collections.

     The budget agreement increases the Job Center appropriation to $6.5 million. This increase is nearly $3 million above the amount requested by the Governor.

     Last year's final federal budget agreement between the Clinton Administration and congressional Republicans did not reduce federal Job Training appropriations nearly as much as expected. During the coming fiscal year, state and federal training programs will be funded at current-year levels, with total Job Training Partnership Act support remaining above $215 million.

     It is unclear if legislation will again be pursued to consolidate federal funding for job training programs into block grants. If a block grant program did become law, the state would be given much greater flexibility to direct program expenditures and determine the delivery system to provide this training assistance.

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