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Norlh Carolina Departm dt Natural Resources &Community Development .~ames El. Hunl, Jr., Gavern~r ~ward ~. Lee, Sacrelar~ ,June 23, I~78 TO: Balance of State Program Operators Chief Elected Officials - Title II and VI Counties LRO Manpower Planners and Executive Directors DCE Staff, Balance of State Council and Committee Members / FROM: Harvey Lincoln, Director ~ SUBJECT: Message from Atlanta - CETA Program Issues Some policy positions and program directions that directly affect North Carolina were discussed at an Atlanta regional meeting for CETh prime sponsor directors and elected officials on June 20 and 21. Assistant Secretary of Labor Ernest Green, National CETA Director Bob Anderson, Regional Adminis- trator Dave Duncan, National Youth Program Assistant Direoto~ Harriet Michele and regional staf~ participated in the meeting. Some of the major points that emerged from the meeting were: 1) DOL is taking a bard line on mainceaai~ce of effort and substitution of federal for state or local funds Up to 50~000 CETA PSE employees - of a total of 75,000 - are subject to layoff in California cities, counties and school districts because regular employees in similar titles have to be dismissed due to tax cuts. Reaction to proposition 13 appears to be having a major impact on both the administration and Congress. Tougher program managemeet standards and sharply in- creased emphasis on fiscal and program information systems will be one result. 2) CETA funding is uncertain for next year. Current legislation expires at the end of the fiscal year - September 30. The aew CETA bill must be passed, authorizing funding, before an appropriation can be made. The House will take up the bill in July, the Senate in August. Even if a final bill gets passed prior to the September recess, the ap- propriation may get tied up in the debate anticipated on the abortion issue in the DeL/HEW appropriation bill. If operation u~der a con- tinuing resolution is necessary, no new progra~-such as Title VII- .... ' will be able to*start up. For North Carolina, balance of state, plan~ed Title I programs should continue on schedule at 90% of full ifunding; Title III programs should continue as planned; Title II and V~ funds ~p~ably be reduced, to a level which we s~ able to determine sometime in August. We should be prepared to get along with reduced~blic service emplo~new regulation~----------~ af---f-~ctin- q lengtl~ o~ an~qualification~ fo~ PS--~ partici~pation.