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GAO RELEASES PRELIMINARY INFORMATION ON VETS PROGRAMS

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On May 12, the Government Accountability Office (GAO) published a preliminary report on its findings for the Disabled Veteran Outreach Program (DVOP) and the Local Veterans Employment Representative (LVER) programs. The preliminary report, titled Preliminary Observation on Changes to Veterans' Employment Programs, was released as GAO testimony at the House Committee on Veterans Affairs Subcommittee on Economic Opportunity held on May 12.




Mr. Chairman and Members of the Subcommittee:

I am pleased to be here today to talk about our preliminary observations on the status of implementation of some key provisions of the Jobs for Veterans Act (JVA).1 This legislation was passed in 2002 to improve various aspects of employment, training, and placement services provided to veterans. The need for such services is growing, given that roughly 700,000 veterans are unemployed in any given month and the number of service members leaving active duty—estimated by the Department of Labor (Labor) at 200,000 yearly—is anticipated to rise with more troops returning to civilian life. Viewing employment services for veterans as a national responsibility, Congress established the Veterans’ Employment and Training Service (VETS) within Labor to carry out national policy that veterans receive priority in employment and training opportunities.

Among the programs that VETS administers as part of its responsibilities to help veterans find employment are the Disabled Veterans’ Outreach Program (DVOP) and the Local Veterans’ Employment Representative (LVER) program. Nationwide, there are more than 2,000 DVOP and LVER staff. The DVOP staff are responsible for providing outreach to veterans needing VETS employment services and in offering them a variety of intensive services, such as career guidance and provision of job development contacts. The DVOP staff are to give priority of service to veterans who are disabled. The LVER staff are focused on establishing relationships with area employers and on facilitating employment, training, and placement services for veterans. The DVOP and LVER staff are also mandatory partners in the one-stop center system created in 1998 by the Workforce Investment Act (WIA) where services provided by numerous employment and training programs are made available through a single network.

My testimony today addresses the current implementation status of three aspects of the DVOP and LVER programs that have changed as a result of JVA: (1) The separation of DVOP’s and LVER’s roles and responsibilities; (2) VETS performance accountability system for DVOP and LVER staff; and (3) VETS system for monitoring DVOP and LVER performance. My testimony is based on our past reports and ongoing work for this subcommittee and other congressional committees. We will report on our ongoing work at the end of the year, as mandated.

We recently held discussions with national and regional VETS officials and visited two judgmentally selected states, Washington and Colorado. In Colorado, we interviewed state VETS officials, and visited the National Veterans’ Training Institute (NVTI) where we interviewed NVTI officials as well as DVOP and LVER staff from 24 states who were attending training classes. We also met with officials from various veterans’ service organizations and the National Association of State Workforce Agencies. We started this work in January 2005, and it is ongoing. Our work is being conducted in accordance with generally accepted government auditing standards.

In summary, VETS has established newly defined roles for DVOP and LVER staff and has provided this information by issuing policy guidance letters and conducting ongoing training at NVTI. States have been using the flexibility that these programs now provide, such as being able to determine how many DVOP and LVER staff are sufficient to meet their needs, where to place them within the local workforce area, and how to more effectively use them to serve local veteran job seekers. Almost half of the states plan to use JVA’s authority to assign DVOP staff on a parttime basis. However, integrating DVOP and LVER staff into one-stop centers remains a long-standing challenge. While VETS has issued guidance on the new incentive program to recognize exemplary service delivery by DVOPs and LVER staff, 11 states do not plan to participate due to reasons such as state laws or other policies that prevent individuals from receiving awards.

VETS has implemented employment measures for DVOP and LVER staff. However, VETS estimated that it will be at least until 2007 before it has the trend data needed to establish the minimum standard that all states must meet for the rate at which veterans enter employment. Using goals negotiated with the states in the interim, VETS reported that DVOP and LVER programs, as a whole, met Labor’s goal of achieving a 58-percent employment rate for all veteran job seekers during program year 2003, although the programs fell somewhat short in reaching a 60-percent employment goal for disabled veterans. However, assessing how well DVOP and LVER programs are serving veterans may continue to be difficult due to VETS’ ongoing concerns about the reliability of servicerelated data.

VETS has implemented changes to its system for monitoring state compliance with the DVOP and LVER programs, and work continues to determine how best to use the monitoring information to improve program performance. VETS staff completed their first round of reviewing state plans and self-assessments of performance in program year 2004. In addition, VETS staff performed their first round of on-site reviews. It is unclear, however, how VETS staff at the state, regional, and national levels will use this information to consistently guide or improve the DVOP and LVER programs. VETS and the Employment and Training Administration (ETA) are working together to coordinate monitoring and enforcement efforts.

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