Summary of Senate HELP Committee RS and JWOD hearing - October 20, 2005

On Thursday, October 20, the Senate Health, Education, Labor and Pensions Committee held a hearing on alleged abuses in disability programs, particularly the Randolph-Sheppard and Javits-Wagner-O'Day (JWOD) programs.  The hearing was based on an investigation carried out by the Committee that found that "although the (Randolph-Sheppard) program is specifically directed at a population with very high unemployment numbers, only a relative handful are reaping the benefits and receiving the support this program provides," and "very few workers have moved out of employment covered by the Javits-Wagner-O'Day Act and into competitive employment.  While competitive employment may not be an option for all those with disabilities, the (JWOD) Act was not designed to help them make informed choices or to help them build the skills they might need to make such a transition."

 

The Committee investigation concluded that "based upon the Committee's findings, it is clear that too few persons with disabilities obtain employment opportunities under these two federal programs that will enable them to move into competitive employment."  The report recommended the following possible alternatives to improve the Randolph-Sheppard and JWOD programs:

1) Combine Randolph-Sheppard and JWOD into a single program.

2) Include all persons living with disabilities in the combined program.

3) Create incentives and opportunities for integrated, competitive employment.

4) Provide training and job placement consistent with a person's capabilities and goals.

5) Require accountability based on outcomes.

 

Bipartisan concerns were expressed regarding the operations and outcomes of the two programs.  In his opening statement, Committee Chairman Michael Enzi (R-WY) stated that "a six-month investigation has found two long-standing federal programs designed to promote jobs for individuals who are blind or disabled...are failing to produce many jobs and instead are helping promote an exclusive class of high-paid CEOs."  He compared the "profiteering" of some non-profit organizations to the "rampant executive abuses" in publicly traded companies that were targeted by the Sarbanes-Oxley Act.  "These (Randolph-Sheppard and JWOD) programs are performing dismally and Congress must improve them," he said. 

 

Ranking Member Edward Kennedy (D-MA) said in his opening statement that "It's a sad day when our Committee staff produces clear findings that indicate shameful and serious failures in many aspects of employment programs for the disabled, and flagrant abuses by certain contractors for personal gain...The disabled beneficiaries of these two programs faced enormous hardship even in the best of circumstances, and the last thing they needed was to become victims of major incompetence and outright fraud, abuse and corruption, with the Department of Education AWOL on what was happening...The evidence Senator Enzi laid out today makes a clear case for reform."

 

While it is unclear what legislative initiatives will emerge from the hearing, there appeared to be a willingness on both sides of the aisle to make potentially significant changes to the Randolph-Sheppard and JWOD programs. 

 

 

 

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